Later, chipotle, one of the best stocks the ceo will join us power lunch starts right now welcome to power lunch check out the markets and the performance here today the record rally hitting a roadblo roadblock. Hanging onto gains ever so slightly here. Take a look at microsoft that stock hitting a fresh record high today. Its now up 50 so far this year well have more on that later. Tech stock really on tear having the best year since 2009 up about 41 bill, over to you. Thank you we start with two of the big movers today kohls and home depot. Accounting for nearly all the declines today both stocks sinking after slowing in sales are these retail reality check lets head over to bob for more on todays retail wreck. Hello good to see you. This is a difficult question right now because there was a lot of questions on the Conference Call about this home depot sales missed to what they call timing of certain Investment Initiatives whats that all about . Its up almost 40 for the year. Now its up about 30 for the year its had a terrific run. You see its down about 5 whats this certain Investment Initiative that was the first question on the Conference Call. This is about slowing on the consumer here is what management said they saw strength across all of their departments. They saw growth in online traffic, conversion and average tech retail is downright across the board. Kohls missed on earnings and lowered their full year guidance this has been a problem for all the Department Stores and Apparel Companies in general its what i call the brick and mortar nightmare we have been talking about it for many years here. The bottom line is what you have is little or negative sales growth for Companies Overall youve got an inability of companies to open many more stores because many dont have the money they needed to invest in the product and theres no real path to growth for a lot of the retailers particularly the Department Stores and the Apparel Companies. Courtney, this is your beat. You know all about the problems that weve had here and kohls reiterated those issues today. Back to you. Thats right. The cfo said were not seeing softness thank you. For more on todays retail wreck we have two analysts to discuss kohls and home depot. This was a really interesting one for home depot and this is the Second Quarter in a row we have seen them lower their Sales Guidance but for two different reasons. For a long time every one said home depot is a great operator but seems like the problems are internal is that narrative changing i think the three things to take away from this quarter is this is the Fourth Quarter in a row they had sales that missed expectations but the eps still came in line even though sales growth has been a bit disappointing, they are still able to deliver that bottom line growth this is the second time in a row they have cut their comp guidance they talked about same growth. They said 4 now they have taken it down to 3. 5 last quarter it was lumber which seemed like a reasonable thing to point to. This quarter they are talk about some of those initiatives they had started at the beginning of the year that are now slower to deliver some sales growth. They said that will be happening next year. They expect to get more of of that growth. Its really a delay in timing on that sales growth and not necessarily a slow down. Thats ri reinvesting in the company right now. They are upgrading their stores and digital platform, supply chain. They are reinvesting at the moment should we all have to be patient. Even the ceo admitted on the Conference Call its taking longer to see results than they expected here. We just have to be patient with them one of the initiatives that they cited, they mentioned they are really redoing their i. T. Platform that would take a long time. They rae want eally want to gett right. I think thats a reasonable thing to point to. Then the longer term over arching theme here is growth and renovation spending is starting slow its positive but its slowing we talked about in retailhavin limited growth its starting so slow a little bit. Were seeing that in our data. Wlooerking at all the i understand cay indicators the last two quarters lowes out comped home depot for the first time in a long time. Where are you going lowes or home depot i think most will choose the place thats close to them or has the best price if you think about what a profr professional contractor is going to do, they are usually pretty loyal until theres a reason to change that pattern. Either its because they find they are able to get Product Availability at one retailer versus the other or its because the pricing starts to get more competitive. They are investing a lot in inventory. They report tomorrow morning. We hear the same store from them, do you think i think when we hear from lowes tomorrow, were likely to hear i wouldnt expect them to cut the guidance. The reason home depot cut wads from internal initiatives p i think their growth will look pretty robust. I think investors will be very focussed on whether they beat home depot in terms of u. S. Same store sales growth again i think what will come under more scrutiny is the operating margin because last year the company was changing over a lot. They changed over their entire management team. They were destocking on inventory that was unproductive. They were getting rid of stores unproductive a lot has changed in the last year we should start to see some of the benefits of that change now. Well see they are making investments too. Thank you very much for being here with us today lets turn our attention to the biggest loser of the day in the stock market, kohls on track for its worst day since january of 17 as we mentioned is the senior managing director and retail analyst. You maintain the buy rating but you have lowered your price target from 50 to 68. It was almost 60 yesterday and results were disappointing from our perspective, from the companys per speckperspective. Nobody likes Department Stores anymore, right . I think they have the mall positioning. From the leadership perspective, michelle gost is an outstanding executive. I think this team, they are willing to take risks. They are willing to try new things they have a lot of good initiatives and in the stores theres a lot of new merchandising initiatives that they started launching in the fall as they gain traction, the customers should respond favorably. When i spoke with michelle she did point to the 20 new brands she said we have to lean in. Kohls is place for value but there has to be good products. How big of a difference can that make if you have exclusive brands but they are new to the customer the kohls customer focuses on value too you have to have good brands and great value. When you think through this last quarter, august was fine but september was warm there was a lot of of disruption with the new launches. I think that added up the a better october but it wasnt good enough. I think from the merchandising standpoint they do have some new, good launches coming. I think the scott living piece, the nine west piece is different merchandise. It will take some time they are spending more money on marketing and trying to get the customers in we havent talked about the amazon returns now we are. My wife has been to kohls three times in the past week it was every time to return something to amazon. She went to kohls did she walk out with anything anything well find out here in about an hour. The foot traffic is there but are the sales following . I think they there was a 360 point basis improvement from the first half of the year they returned to growth. Theres the positive piece they are clearly going for market share and they will be promotional. I think the environment is always promotional we think they have enough new initiatives to really move the ball forward michelle said when i spoke to her that they are seeing some new customers come in at a higher rate than they normally see a new customer coming in when making that amazon return and they need to try to tlifr on that value piece which is why they lowered their earning to give themselves some room. The environment is set up to be pretty promotional they were one of the first to cut the guidance earlier and they seeds the need to do it again. Its disappointing but i think they are doing the right things longer term. I think these guys are winners long term. Very good thanks thank you coming up, President Trump threatening to raise tariffs on china even higher. Are we over the trade turmoil . Chipotle started the year off piping hot but the stock has been flat. What can get it sizzling again the ceo autisbo to join us. Stick around 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. [spokesman] if youve tried colleg group cheering shed, snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu President Trump threatening even more tariffs on china we have the context of those comments reporter President Trump making those comments to the press at the beginning of a Cabinet Meeting today with his Economic Team looking on saying that china is going to have to do a deal he likes i have a Good Relationship with china well see what happens im very happy right now we dont make a deal with china, ill just raise the tariffs even higher thank you very much. Reporter another trade issue in focus is the new nafta. The white house has not reached an agreement with House Democrats yet. President trump says he believes that Speaker Pelosi is stalling in order to use the deal to secure support from moderates on impeachment. Ive been told and who knows if this is so, but i think its so i have pretty Good Authority on it that shes using usmca because she doesnt have the Impeachment Votes so shes using usmca to get the Impeachment Vote reporter as for the impeachment hearing today, President Trump said he watched a little of it and hes never known or seen Alexander Vindman who remains the top expert here. To the markets now with the dow pulling back after hitting a record high. The s p and nasdaq are trying to hold into gains that would keep them in records but the markets are shrug off the trade uncertainty. Its not a positive sign of what is to come good to see you both thank you for joining us we saw a report out that said a lot of hedge funds are investing in companies that would benefit from a trade deal. They are anticipating that one is on the way. What do you think and what would that do for the markets. I think thats probably consistent with the markets recent behavior. I think even a limited deal of do no more further damage and maybe agree on some small points would proenl be a win at this point. I think they will not get anywhere more than that. I think thats what the markets expecting. Thats why stocks have bled up thats why Interest Rates have begun to creep up and the curve is sloped begin and youve seen a resurgence of growth oriented stocks, material, industrial, transimportan transports, financials, et cetera if that story doesnt happen, youll see sell off but i dont think trump really said anything different today than hes already said before. What do you think some of the other pieces of the wall of worry in the past that had the market slow down internationally, economically speaking now were at all time highs. What happened to all those worries . I think you have the probability of a very bifebiferd outcome. Theres so much riding on china right now and trade negotiations i think odds favor some kind of deal and the market is pricing that in. If theres not a deal to your other guests, the market could go down. I remain optimistic. I think china is in a quasi recession. I think the u. S. Administration wants a deal well get something. We spoke at the top of the show about the strength of tech and talking about investing in tech if we get some kanind of a deal where are you when youre looking at that big sector would you go slimmer or at semis. How are you playing a name like tech huge. Were definitely involved in that space as well as some of the Industry Sectors i mentioned. We look at different sub sectors and with tech you have some good valuations, some very over priced valuations. Some companies that are so over priced that they will take a period of time to grow into their valuations i think its a company by Company Specific issue we get into semis early y tin te year were in facebook as an example of a big cap name. Its still profitable despite the negative news around them all year then theres other areas auto desk is another Software Company that we own. Were in the software space. Were in the semi space and always looking for new opportunities. I see you like financials thats a big of a play now i think the yield curve is steep. Theres a lot of crowding in Technology Financials are at 12. 5 pe versus 17, 18 for the broad market. You see a rotation higher and yesterday you had things like rngs utilities and Something Like caterpillar youve seen these defensive utility dividend stocks that are rotating higher. All right thank you both for joining us today. Thanks. Lets head over to the bond market looking at stock, two out of three indices doing well and even the dow is not far under 28,000 but treasury yield, especially long maturities are slipping if you look at a two day of twos, note yesterdays low were at 159 only down one basis point. Lets go to the farthest maturity look at the difference how much lower the right side is. They are now down six basis points on the day. If they closed here, it would be the Second Lowest close for the month of november. That means flattening curve we have gone from 28 to 18 mr. Bill, back to you. As we have been talking tech has been the hottest sector in the market this year up more than 40 as a group. Well tell you what you can buy to catch that rally. We have traders weighing in on that one of the hottest stocks has been chipotle. The ceo will join us much more power lunch coming your way their medicare options. Ere people go to learn about before theyre on medicare. Come on in. Youre turning 65 soon . 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We have been contained through 2019 we just recently broke resistance i think we have a bit of a momentum trade two names that i like, first crm. We just broke from a consolidation over the last year and a half i just added half of position based on this segment to my portfolio through 163. No reason we shouldnt test the upper end. Im not concerned about the multiple in this momentum market another name is amd. This has been the most storied stock. Love this chart. Trading 35 times the earning, double the snp were trading in the 40s i see no reason we shouldnt get s into the 50s i own this stock well see if it can put some distance between the 25year trend you have there you can find value even in high multiple stocks. Where would you go were not a big fan of chasing the momentum