Says military cloud contract win. And Restoration Hardware surging at the open, Buffetts Berkshire hathaway revealing a new stake in the furniture retailer stocks are looking to make more history a day after the s p posted its 21st record close of the year futures up on comments from larry kudlow about progress of trade talks in china, upbeat news about the consumer adding to positive sentiment. Retail sale s rebounded in october. 3 but strip out gas, it is a miss. Strip out autos and gas, it is a miss as the threemonth average continues to slow. Jim . Look, i there is just the mixed picture keeps making it so it is bullish. It is amazing. If it were too strong, we would have to say that jay powell has they still play by jay powell there is just enough tease with trade talk i have my view on what is happening now and it is not as sanguine as what people are saying this is about farm, about ag, and it is about this is my understanding, not necessarily about soy. A lot of pork involved because they actually dont have pork so, in other words, this is not one of those buys where theyre making it so that the president has a win. They need pork. Swine. I do not think that theyre going to buy one more slice of bacon than they need and that the president is not happy with it so Chinese State media, South China Morning Post saying getting to 50 to 60 billion would be really difficult for the exact reasons youre getting to. Yes so larry has a very positive narrative. Other people in the white house are saying, are you kidding me they need they need pork so badly, and theyre negotiating are you kidding . Heres the price you must pay. And so thats the kind of thing, because the chinese dont seem to want to pay the price it is a defeat for the president if larry is out there saying, hey, listen, there is a deal, the president doesnt want to be trapped into making a deal he wants a deal that is great for farmers and pays a lot for pork otherwise you couldnt get i think the chinese are being very adept at saying, hey, we have a great deal for you. It is a great deal for them. And the president i think is sensitive to losing here so you dont after a year of watching larry say there is a breakthrough, positive progress, fantastic surprises, youre not buying it . Larry is a very optimistic fellow hes optimistic. Very much so. Optimistic about, i dont know, hes optimistic a better close on monday. Always optimistic. It is an aside. Friday, it is higher, okay . Look, do i have to be facetious . Hes very pro a deal there are i call him a technocrat paulson, kissinger, mnuchin, kudlow all want this to be about trade. There are other people in the white house, lighthizer, we know where Peter Navarro is, who say it is in the about trade it is about the seven deadly sins, giving up on everything from the stop sending us deadly fentanyl to stop these statesponsored subsidies. And a pork deal does not answer that part of the question. It is not ideological. Market doesnt agree with theyre optimistic too. I think the market likes the market is a little delusional but if the chinese say, well pay the posted price of pork, then the president has something to crow about. So they dont think that theyre saying, listen, the 10 billion extra you want us to pay, the 15, were not going to do it if they come up, well have a deal instantly instantly. And then everybody is happy. And the market is right. So it is really up to the chinese to make it so this market is going to be meantime, the pork inflation is double digit, right how long can they sustain that they need our pork. It is it is kind of thats what it is about and the hardliners are saying it is not about pork at all. It is about giving in and they pick this long issue, the chinese. Negotiating is something they have to buy anything this is not soy. I remember when dupont was telling me, they switched to brazil you can switch to brazil all you want they dont have the hogs they dont not having the horses. They dont have the hogs they dont, david. David . They dont have the hogs. Got it. Really i never thought we would be spending this much time talking about pigs it is bacon it is in what country is general cho outranked by a colonel ever been to chickfila on sunday no, theyre not open on sundays. Finally he knows something. Then when does reality sink in to stocks i think this is up honestly, a deal if the chinese come up 10 billion 10 billion . 10 billion in pork purchases. And a deal. Well get a phase one signing. Well get jpmorgan will be in there, credit card december 15th never happens no. December 15th is fine. Restoration hardware, by the way, made their theyre making all theyre moving out of china dramatically. Everyone is doing it the hardliners are saying lets keep stringing them out. The president wants a deal on his terms and the chinese have to come up come up right now, and the market goes to a gazillion and larry is on saying we have a big victory. You dont think a signing is a sell the news event . No. Really . It is the beginning well, there are other hardliners who say, were going to give them that one thing if the market goes up big, the president loves the market going higher and loves larry the president loves larry. Laurie has been pretty great for the stock market the chinese have to stop playing hard ball over something they need they need it they dont need the just well end this discussion in a moment, they found other sources of soy, why cant they find other sources of pork the amount of because were the only real certified. Were good our pork is not tainted it is look, you know what, at one point we could have been talking about the soviet union and bread. They ran out of bread. This is one of those cases like the soviet union where they needed our bread, okay they need our pork the last thing i say about it is that they can make one phone call this weekend and we could have a talk, we could have a deal and you think thats market positive. Yes all right i dont they act rationally will they feed their people and give the president a win thats the question. All right were going to were going to watch it as we do every day. Other big story, amazon is planning to challenge pentagons decision to award that 10 billion Cloud Computing contract to microsoft amazon contends politics may have played a part in that award. The president , a long time critic of amazon and its founder jeff bezos in an email to cnbc, amazon says numerous aspects of the jedi evaluation process contained clear deficiencies, errors and unmistakable bias and it is important that these matters be examined and rectified this is a big deal, even for a company the size of this is a hard fought contract it went on for years amazon always seemed to be in the pole position, but they had a lot of people after them people trying to spread information about bias, frankly the other way, or about Different Things that went on at dod, even under mattis all i can say is it is not a surprise that they would that they would do this, because it was something of a surprise that it didnt go to amazon they seemed to be the favorite along the way. And you have to take into account the president s comments and his contempt for the Washington Post and its owner, mr. Bezos. It is a big 10 billion is not an insignificant sum of money. Two years ago wouldnt be a question amazon, web services would be vastly superior. I now think that satya nadella, microsoft, they have a compelling product six or half a dozen, honestly. I dont think anyone who is choosing right now to use azure is choosing to use an inferior product. I think azure can be equal now, Amazon Web Services to their own credit keeps cutting cut prices like 40 times but i could argue that they could cut pricing and get the government a better deal i dont understand how they negotiated this. Why didnt the government go back and say, listen, well pay half why didnt the government do that did the government we dont know very opaque policy. Somewhat opaque oracle was in there. Microsoft, amazon, maybe even some ibm i think at some point theyre not competitive. It was it was a very toughly fought battle, dont forget amazon already had the cia Cloud Computing, in some fashion. The cia may be going out yet again for a bigger cloud presence a new contract but this paves thats this is also linked to that and future contracts the Revenue Sources you might imagine, revenue is going to be enormous coming from the government as it moves various highest level of sensitivity outside of the premis premises. Do you think the president put his finger on the scale here i have no idea. Would you be surprised is there anything given his behavior that would surprise you . Ive never seen that before. It is a podcast. You didnt speak. I dont need to we got that legendary ukraine funny man making the calls supposed to be really funny. I dont know if youve seen his stuff. Never i dont speak the language were going to keep our eye on house intel, the impeachment inquiry hearings and now a new memo from the white house. To that, we get to ilan mui. The white house released a memo between President Trump and president zelensky that occurred on april 21st. It was about 16 minutes long and in this call President Trump extends an invitation to president zelensky, according to the memo, he said that when youre settled in and ready, i would like to invite you to the white house. Well have a lot of things to talk about, but were with you all the way. President zelensky then accepts the invitation and says he looks forward to the visit zelensky also extended an invitation to the president to visit the ukraine for his inauguration now, this is important because, of course, the president has been saying that there has been no quid pro quo in his dealings with ukraine in this exchange he was extending an invitation to zelensky without any conditions on it. And, of course, theyre releasing this memo of the phone call just as the house intel hearing gets under way so we will continue to read through this text and also monitor the hearing. I believe chairman schiff is still in his Opening Statement and well bring you the latest as we have it, guys. Thanks for that. Well get cramers mad dash and countdown to the opening bell tons of news to get to, including nvidia and amad and under armour and berkshire as we mentioned, restoration, jcp. Lets get the promaemarket here squawk on the street back in a minute retail sales lets get production with rick. This is not a good number Industrial Production down. 8 thats a steep drop. Double the expectations. Were looking for down. 4. We did garner. 1 in a revision still negative from minus. 4 to minus. 3 lets look at capacity utilization. 76. 7 76. 7 that is the weakest number going back to, boy, we have to go back quite a ways there weakest number since september of 2017. Now, lets look at what is going on with regard to the market place. Keep in mind, Interest Rates are up a little bit on the day, up a basis point in 10s as you open the chart up to tuesday, bond market closed on monday, you can see we deteriorated, down 11 basis points and from a key level, right in the low to mid190s. If you look at what is going on in europe, bunds, which in many ways sparked some of the selling a little over a month ago that started to push rates up and create some optimism paired with some better data at the time and maybe more optimism in the announcement of phase one, boy, it certainly gave up ground. Down 8 basis points on the week. The dollar index, it is now just hovering above 98. Last friday, it closed at 9835 on this twoday chart, gave up a lot of ground yesterday. Were not gaining it back today. Carl, jim, david, back to you. Have a great weekend. Thank you very much lets get to mad dash here as we count down to the opening bell 17 minutes sorry. 14 minutes 13 minutes 13 minutes i like to count down here. Last mad dash of the week. Nvidia reports on earnings. My head is chilly cold in new york i put on my nvidia cap why . Because the quarter was excellent. The guide may not be enough. The quarter was so great, why did they guide up . There is some issues about whether gaming is strong thats ridiculous. It is seasonal this is a story about Artificial Intelligence and Machine Learning this is a story about, say, alexa, how does alexa know they dont reveal clients. They can think around the corner theyre so many years ahead of everybody else it is about gaming in the sense that they have they have gpus, make it so it is so lifelike. Nintendo is a big customer. We know that. Big quarter. They sold a lot of exactly right. Thats good but jensen huang delivered again and again. There are people right now who are skeptical saying, this stock just did this. Sorry. Something else. Anyway, the here, try this. Okay. This move was entirely because of this quarter and now it is what have you done for me lately i think it regains the high. By the way, one of the things, david, people dont talk about anymore, they do simulations they do simulators for airplanes. Isnt that interesting the pilots need another 20 hours . Thats a lot. You think it regains the high . Yes. Really . Yes because theyre so far ahead of everybody else i went to nvidia, they have robots, they say, get me a cup of coffee, the robot gets you a cup of coffee. What about lisa sue at amd. Theyre cousins theyre related. That has nothing to do with whether or not theyre competers. Gaming, yes, they are competitive. There is no doubt if you speak to their executives, theyll say lisa sue has done an amazing jo at amd but shes not in ai at their level. No one is. No one is at their level you can basically heres one. You like a song . Would you like violins in the song you can use that Artificial Intelligence and decide, listen, ill put violins in the song it learns the song the machine learns the darn song listen, billy joel, and decide you want to put there is only ten instruments they can put it. I met billy joel the other day, he said, can i have a selfie billy joel, me, selfie, me he said separated at birth he asked me for a selfie. Im aware. Do you know how many times i wanted his picture does he know im the spokesman for the American Migraine association. Knows that too. Opening bell coming your way each day our planet awakens with signs of opportunity. But with opportunity comes risk. And to manage this risk, the world turns to cme group. We help farmers lock in future prices, banks manage Interest Rate changes and airlines hedge fuel costs. All so they can manage their risks and move forward. Its simply a matter of following the signs. They all lead here. Cme group how the world advances. Whether your beauty routine is 3or 57,. Make natures bounty hair skin and nails step one. Its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. Nice rock. Its time to drop gold. Go digital. Go grayscale. A lot of familiar dynamics in play this morning as Industrial Production comes in worst in 17 months, largely due to gm. Were looking at record highs as the markets hoping for a trade deal still opening bell in about seven minutes. My parents never taught me anything about managing money. The amount of Student Loan Debt i have, im embarrassed to even say. We just decided we didnt want debt any longer. I didnt realize how easy investing could be. Im Picking Companies that i believe in. I think sofi money is amazing. Thank you sofi. Sofi thank you, we love you. High protein. Low sugar. Tastes great high protein. Low sugar. So good high protein. Low sugar. Mmmm, birthday cake pure protein. The best combination for every fitness routine. Youre watching cnbcs squawk on the street live from the Financial Capital of the world. Opening bell in over four minutes as we put this week to bed here on this friday. Ton of news, jim, as we just got this pouring through this Industrial Production number, as we said, largely gm related. Right look, it is really hard to try to figure out. I keep going back to that walmart quarter yesterday. 275 Million People we go there and stock reversed i didnt understand the reversal stock should be higher the consumer is strong, the consumer is strong if you sell into the consumer, youre doing very well you sell into manufacturing, youre not and yesterday when we had i thought it was kind of seminole. When we had chuck robins on, he sells into big companies, big companies, theyre tapausing. He said something interesting, it takes more people more people have to sign off. And thats the kiss of death it is like lets delay, lets delay. The consumer, no it is like whatever they need, give it to them. And im going out next week to dream force. The thing i dont know is how about software i know marc benioff thinks business is strong we know that that ryan said that adobe is very strong. So i think that that area is strong, but that is i was talk doing work on service now. Their business is very strong. So i think that youre okay if youre in that software is a service. Youre really good if youre selling the consumer and just awful if youre selling to worldwide industrial. A dream force and will also get a ton of retail earnings walmart being the first of many. I see yesterday cowan upped pvh target, dicks target, the cold weather is helping, markdowns are controlled. Also, look at kohls. My travel trust owns it. A disaster suddenly it is back. Jcpenney, people like jcpenney, you would say not much of a factor but they have sephora is in there. David has some on this journal under armour piece about aggressive accounting and dumping it off price retailers they came back to the story that they did last week. Under armour itself just responding saying theyre aware of the recent Media Coverage and firmly believe their disclosures and Accounting Practices have been entirely appropriate. And the management and board have reviewed the matter extensively. They go on to say over the last two and a half years stand by the companys Financial Reporting because the investigation is on going, theyre co