6 00 here are the results just reporting. 2. 53 a share. A penny above estimates. Just short of 27. 52 billion here are the keys for Guidance Company now expects sales to grow by 1. 8 the previous guidance was 2. 3 1. 8 versus 2. 3 comps are 3. 5 previous guidance was around 4 . Lets bring in senior analyst. So the Forward Guidance is below where it was previous . Yes quickly looking at these numbers, there was a sales miss in the quarter also lowering guidance for the rest of the fiscal year. Sales guidance Sales Guidance. Im not sure whether that is a total company or domestic. The street was around five that is a point and a half the street is a full point above where the company had guided the company had guided four. For the quarter ill look at the quarter first the street was around five for the year, the company had previously guided for four they missed roughly a point, point and a half in q 3. They are taking guidance down about 50 basis points. The real message here. It is a clear sales miss here is what they say sales are below our expectations driven by the timing of certain benefits associated with our strategic investments. We are largely on track and seen positive results some of the benefits anticipated in 2019. As a result, we are updating fiscal guidance. We vest to extend our competitive advantage. In terms of sales, that is coming down a bit. Is there anything that can explain the Third Quarter sales like a weather event this is the second Third Quarter in a row of lower pricing. We have seen lumber pricing go up so that issue should have abated for them good question what is interesting here and what joe is saying, we have to look closely at the home depot comments it sounds and this is very rare, that home depot is saying this is an internal issue the back drop was quite good the lumber price issue is not a big deal weather has been favorable we have this improving overall housing environment. It sounds like this is a miss step on home depots part. One question i would have again, we get lowes tomorrow lowes has been getting its act together you like lowes better i do. Up now to the averages that just came off the dow we watched that happen im glad we were able to report that and plan it had in the show and im glad you were here right planned. Schedule normally you see 120 down to 150 and say, who said something about china. Today, this is totally due to home depot it was 104 when the show started . Is. 120 i was in here early. You know i get in pretty early i know you do now we are up 38. Just do the math home d is down around 17 this is a stock that was up 15 going into earnings. And up 38 on the year. Right eamon sister for the year. Atwhat point. I assume theyll be well prepared for that to happen. This is a stock. I talk to our clients that own home depot where we are seeing Quick Reaction today i agree and most people say this is one of the best retailers in the world. Rarely any type of internal issues something will happen in the Third Quarter that will shock people do you have any question what the internal issue might be. They dont. Home depot has been aggressive that has been working smoothly you thought they had a moat that it is hard to be sup planted by an amazon i would imagine when you are going in to buy a big piece of wood you dont get it shipped to your house how do you feel about lowes well hear from lowes and then you are going to say, is this an operational problem at home depot or something larger going on the way that press release is written, it seems like more of a home depot issue that makes me wonder if lows performing better is an issue. They are spending money and the return either didnt work or in their words is taking longer is what they said . It is odd for Something Like that to happen in one quarter. Every comment has been they are working well ahead of plan. One quarter they did something granted, there are different aspects. It seems odd to me lowes is down 2. 59 well be here for tomorrows report a lot of dow components wont have an impact on the future thats why you are here to bring us timely insight like that thank you for that im got some grim reaper news on wework new York Attorney general is investigating. A report that the company is confirming it has been contacted by the ag office and says it is cooperating. Partly focused on the founder and ceo adam neumann and if he engaged in selfdealing. He bought properties and leased them back and borrowed against his own stake in the company last year, it rolled back the policy of requiring employees to sign noncompete agreements as part of a settlement youll look at those transactions where he bought the real estate and used them or effectively leased them back to wework does that represent selfdealing who was harmed what happened . Ive done some reporting around that one, it wasnt clear he actually made money doing it. He may have lost money unclear whether that matters number two, at the time for the transactions were that effectively, they were trying to build out wework as quickly as possible they were trying to get certain buildings to get wework into certain buildings as part of the show case. That was part of the rational for it at the time whether you think that passes the smell test, i dont know then there is also the issue of the trademark he didnt end up selling the rights to the trademark. I did more reporting on that issue as well as to is there any basis for charging the company it wasnt a licensing fee. It was a 6 million fee you were going to pay to acquire the trademark. Again, depends which lawyers you want to listen to. Im told there was an argument being made at the time that there was a value to the we trademark and you couldnt just bequeath it to the company because that would be its own form i dont know if i believe any of these things i just put them out there. Thats what i know around some of these conversations that dont pass the smell test. Neumann is out so it is not that much of an issue but the Corporate Governance and what the board allowed to happen because the board is still there. You have to wonder what steps did the board take along the way to enable this to happen and is that a Corporate Governance issue . I hate to use the f word and i mean fraud are people worried about accounting issues. The numbers came down very quickly. These are the kind of things that if you are an ag somewhere and you wan to make a name for yourself or you are just after justice and you start looking into stuff you think maybe there is something in there maybe we look back at wework as one of those moments. It is really interesting that it has got this much publicity and it is really just the big fat cats eating it isnt it we may end up talking about this years from now dont you think . Im going to get my billionaire tears mug out. Thats a good one 47 billion to where are we now . You are all about Market Capital gains. If you marked it to market, somewhere around 7 million is where softbank has marked it i think it is closer to 9 or 10. It brings down the average you havent done any valuation work on it you just think they are low balling it you are looking at some of the monthly metrics for individual properties coming up with 9 instead of 7 seriously . He just actually said hes done some work i did some work a little number crunching and a lot of phone calls we have more trouble for juul to tell you about. The state of california suing the e cigarettemaker that they engaged in a campaign to attract teenagers. Saying the companys on line age verification process was flawed. Sending thousands of devices to fictitious name including beer can, Patricia Jewel and no signature needed as examples disney plus subscribers may want to consider changing their pass words thousands were stolen by hackers and put up for sale on the dark web, which i thought was the next star wars sequel. That happened a mere hours after the Service Launched a report found that hackers were accessing the accounts logging in and changing the email and pass word associated with the account many of the accounts were prepaid for a year or month disney spokesperson said disney takes the privacy and security of user data very seriously adding there is no indication of a security breach. How are you doingyour pass word ars 111 really dont want to get into it why would i want to share thats right we are on tv you have to change it all the time i have a hard time coming up you know how it measures how good it is there are studies that show all this changing is a bad idea. Youve done some work i have. There are studies that show changing the pass words constantly is worse rather than better because more get out. You know why, when i change it, i write it down everywhere thats what that yellow post it note is im giving out too much info but i forget what it is too. Why dont you use a pass word generator . What happens if that gets hacked you have a bigger problem remember, news you can use. Double authentification. Two fact for authentation for everything you have to. Do you know what that is a text and a message ive seen it. I forget and i have to set the pass word again. Just want to make sure you are double authenticated it is not a bad thing everything i have has a different pass word. No. Thats okay. You should just use the key chain thing on your apple phone or one of these services or they have these pills that improve your memory too. You can try that you know how many instagram followers kylie jenner has 150 million i do know. Kris jenner is going to be on with us in the 8 00 hour this is what i told you this is where you find the real news you find it here water cooler news. This is a great story we are going to be talking to kris jenner in the 8 00 hour by the way, orange man bad. Still bad. Coming up, the dow posting the 12th record post of the year despite a decline of 6 for shares of home depot well talk strategy right after this break only one things more exciting than than getting a lexus. Giving one. This is unbelievable it really is. The lexus december to rembember sales event lease the 2020 rx 350 all wheel drive for 419 a month for 27 months. Experience amazing at your lexus dealer. So servicenow put your workflows immhm. Cloud, huh . Your employees must love you. Thank you. Ah, you could say that. So how are things with you guys . Great. Thank you. Thank you, sir. Lunch next week . Terrific. Say hi to the team. Will do. Call my office, i will. Sounds good. Alrighty. Servicenow. Works for you. As markets continue to push to new record highs. Offering insights about where hes seeing opportunities. Joining us now the Portfolio Manager from jp morgan bank. We have tremendous liquidity. Youve had been 7. 2 billion shares changing hands on a daily basis. Youve seen that drop to about 6. 2 billion you would normally think when earnings were being reported, traders are acting on that news. Why are we only seeing 80 to 85 of the volume. If youve had good news. You offer higher and down 5. 7 which seems like a more aggressive move. It feels as though people are reacting more than they are responding going back to last year at this time and really going into december, it felt like if you wanted the bid, it felt like you were reaching out to a lot more to reach those transactions. Going into the holidays, it dries up a bit despite the fact this perception of Central Banks out there why is this happening is it a combination of fewer shares and the buy backs is it a complacence at this point . Part of it is the rise of the etf. That might give some false sense of security or liquidity i can change my portfolio by moving up or down a factor i would say the reduction in share counts actually makes equities more valuable actually arguing that buy backs are a bid. Is that why we are sticking with the record highs . We have the idea that the way youve created wealth creates perspective. That has been very helpful it is coming that is something markets will hold on for. So you like cyclicals if you start with the data got better or stopped getting worse, youd see positive surprises it is financials and industrials that suggests that seasonal you want to be morris being on and you are positioning to make money in the stock market running the three to fouryear horizon. The idea now that markets are bracing for risk why do your accounts have a three or four year time horizon allowing them to compound and looking to the business that is available and stay with it i didnt know if it was an age issue going back 10 years or 20 years i think you can have a reasonable idea about what could happen over two to four years or ten years, ten years ago is a very different narrative ten years ago, we thought the world was over and why would anybody ever trade again today, its like okay, i want a conversation where i can trade over the next five or ten days people are looking more to what can we know . What can we have some confidence in in terms of outlook. It is hard to know the next data out look and predicting the next out look is a skill i dont have in terms of Bigger Picture friends, people supporting families are going to move out of basements you should always be happy. I try. Dont let data points determine your happiness you are living in the greatest period of history and here you are on squawk box. What better than anything else and an interview by andrew ross skorkin for a tuesday, which is not the greatest day of the week too close to monday, too far from friday. Tell you what is going on, what chinas stop legislator said overnight that could threaten hong kongs status as a Financial Hub. You do not want to miss this im a regular in my neighborhood. Im a regular at my local coffee shop and my local barber shop. When you shop small you help support your community from after School Programs to the arts so become a regular, more regularly. Because for every dollar you spend at a Small Business, an average of 67 cents stays in the community. Join me and American Express on Small Business saturday, november 30th, and see how shopping small adds up. New this morning, violent protests continue in hong kong and a key reason that hong kong has remained a Financial Hub well head over to eunice for more part of the uks deal to hand over hong kong to main land china, china agreed it would maintain the citys legal system for 50 years then today, the Chinese Legislature said they had an ultimate say over citys law they had declared the face mask ban that they had been using to control the protesters as unconstitutional this move is being seen as a big step potentially losing the separate status. There are other Companies Growing more concerned about hong kongs position i spoke to one lawyer who consults he said some of his clients had been reducing the hong kong foot print. Other companies are more caution now about moving in. More foreigners are talking about a plan b exit strategy i spoke to one Business Association who said the members there are reassessing their Business Plans exactly how big an operation they should have in hong kong and whether or not they should move out another date they are watching for is november 24, the day theyll hold local elections that is a big question mark whether local authorities and beijing will allow elections to go ahead that is another sign if those elections were blocked of a sign that beijing is interfering even further. Guys so far, so good today right . No interrupting today. I dont know about that i dont know about. That well try to keep it down in the center lane today. What was that yesterday . Oh, rick scott i cant even believe they know who he is over there hes a florida senator they do. It was the content of what he was saying i know. 1. 5 billion people would stay on over there coming up, American Express is playing catch up with visa and master card saying the company is paying merchants handsomely to use their cards thats coming up announcer coming up, do you feel lucky this isnt the real ceasars palace did ceasar live here no. I didnt think so. The company ceo joins us straight ahead we Keep Companies ready for whats next. man we weave security into their business. Virtualize their operations. woman and build ai customer experiences. We also keep them ready for the next big opportunity. Like 5g. Almost all the fortune 500 partner with us. woman when it comes to digital transformation. Verizon keeps business ready. For farmers here, this is our lifes work. But when a recall happens, perfectly good food goes to waste. Now, weve got away around that. Looks good. Were on target. Blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. Its used by some of the biggest retailers everywhere. A nice wedge. So more food ends up on your table, is that daddys lettuce . Yeah. And less food goes to waste. Rowithout the Commission Fees and and account minimums. Te. So, you can start investing wherever you are even on the bus. Download now and get your first stock on us. Robinhood. Good morning. Welcome back take a look at u. S. Equity futures at this hour being weighed upon by home depot earnings as we mentioned earlier, it looked like it would open close to 120 points higher the nasdaq looking higher as well the home depot decline is good for about 70 points off the dow and the company lowering Sales Guidance for the full year the big question, is this specific to home depot it sounds like it is or is there something larger taking place. Is it retail or the economy or the consumer . A lot of we may get a better sense tomorrow when we hear from lowes. But lowes is a little different. A little. Im overwhelmed in home depot. You are talking Consumer Experience now yes because im not handy. You want me to say it. You feel better i still try to say that i am but i think i just have to say it im looking for light bulbs most of the time. I was just dealing with that. I have to find someone just to get a light bulb. To make sure i get the right one. We got to go. Ill send you my guy my guy will pi