Well see. I think people were talking about that at the time. Yes. Well do aldi versus walmart. And trade secretary mnuchin in italy to find a way of trillions of dollars in foreign earnings to be brought back to the United States. We have it live from the g7 summit. We begin with macys crushed on weaker than expected earnings. Courtney reagan with more. Once again, courtney, retail in a reluctant spotlight today. I know, isnt that the truth. Theres no signs of a turnaround for Department Stores today. Almost across the board, macys shares down 115 . The disappointing results were in line with the expectations. On the call, the cfo said she only expected the First Quarter to be the weakest. Despite its ninth straight quarter of misses, she is reiterating the full year forecast. She acknowledges the challenges, but financials will improve the rest of the year because the benefits of store closures. The full roll yacht of new shoe and fine jewelry category, and new marketing coming targeting their most loyal customers, and also some further digital improvements, like buy online, pick up in store. The profit beat the street handedly, but revenue short, and samestore sales slid more than expected, down for the fifth straight quarter. Kohls marketedly improved, athy are going after sales and markets where competitors are closing stores. Nordstrom after the bell, investors price in disappointment with shares down 6 today. Matt boss saying on power lunch, 91 of what they sell, you can buy elsewhere. He doesnt think things go well after the bell for them either. Thats the point, courtney, not so much Department Stores versus others. Its the fact they dont carry and sell exclusively their own brands, so at this point, anything you get somewhere else online like amazon, thats the issue, right . Exactly. Not to mention convenience from online or whatever. And pricing is another issue for them. Two of the most important things for shoppers are value and convenience. Right now, amazon is hard to beat with convenience, even macys, a strong onli online offering, and when you talk about value, its hard to price those away from t. J. Maxx or outlet malls. Macys tries to grab them with their price concept and stage concepts, but it takes time. They are expanding. They think its working so far, but not enough to move the needle. But heres the question i have, were going to talk more about this later this hour. Where does this go . Whats the end game . We showed four of the five Department Stores, stocked crushed overall for several months. Do they go away . Whats the final end result . Courtney, heres my theory. Heritage, thats the Sears Real Estate spinoff that now was highlighted the other day, but taking real estate, redeveloped, leasing out to stores and other things. Whats macys following suit. Key points there. Reali real estate in retail needs to be reexamined. Its being reexamined. Estimates said somewhere between 25 to 50 of the stores in the United States need to close. Theres too many stores, and you just cannot keep up with online with that amount of product. It doesnt make sense. Theres value in the real estate if you own it like sears did, and in some cases, macys, trying to redevelop properties, thats not the case with everyone. So then you have leases for stores that are just under performing, and it makes more sense to close them. So i think were not everybody owns it. Exactly. Not everyone owns it. Thats the difference. Thats a problem for them. Thats the dilemma faced. Thank you. Thank you. See you later p. Closing bell exchange, what a day. The dow down 144 points. Am i allowed i woke up with a cold. Im aware. Im trying to keep my back to you so we oh, go this way. Cant afford to have that. Oh, stop. The market has come back today like kelly from the lows of the session, down 31 points. Joining us at post nine today, oliver porsche, and cnbc market analyst steve grasso, and Rick Santelli who is comfortably ensconced in chicago away from kellys germs. Away from the spray. At the cme. Oliver, what about retail . How are you playing right now . So, we like the Consumer Discretionary space as a whole, but we dont like apparel. So amazon . Well, amazon, but home depot. Theres a number of different theres a number of companies in segments in there. To your conversation before, retail the whole landscape and Business Model changed, and so the old World Leaders such as macys, we just dislike that Business Model, and we dont see how they are going to win in the new landscape. Back to the question i asked then. Yeah. Meaning every Single Department store goes out of business . Somethings got to survive. You youd think. Im sure. Youre not going to try to pick it. I dont know which one. Well stay away. Theres better values in other areas within the Consumer Discretionary space where we know theres winners and where the momentum and Business Model fundamentally is more sound. Home depot, by the way, steve, another under the radar story, oil up 5 in six days. Yesterday, we had our inventory numbers, most bullish draw we got in the inventory since january, but its not out of its own way. This, to me, as i said, a contrived bet on oil with the saudi deal. What do you mean . The opec meetings, production cuts, supporting it, then a bunch of selfdie banks, they want a piece of the 5 deal, and they dont know they are doing it, but maybe they give out rose colored glasses with the direction of oil. For me, i think you have to look at supplydemand. We know theres going to be an overproduction in the United States of oil. We know that is coming down. Theres a glut of oil. It tells us something about global demand, about global growth, and i think the path of least resistance is much lower on oil. The head fakes, blitz up, selling opportunities. Okay. Eventually, drags the market down, but right now, the overall market is hanging on the face of that. Meanwhile, rick, 30 year treasury option like the three and ten earlier this week, is soft. Clearly, investors reluctant to step in at these levels expecting the fed to raise next month again, right . Yeah, no. When you really think about it, its pretty amazing, weve had a real snapback in the not viewed as an opportunity that the yields would ease back a bit. Seems as though investors shunned it as you pointed out completely. This, at a time, when the equity markets have plenty of room, go to lower, they do, but dont stay low. I think the data today was exceptionally important, and mild cti at all with the todays ppi, i think that maybe the markets maybe taking more notice. Lets not lose sight of the fact today and the last couple days, tenyear at 240, yields not closed at since the very end of march, and, you know, theres plenty of reasons, you know, just think of the drama seen now this washington, the hunt for red november, and it still cant get the markets higher up. I continue to think that the market looking past this is not anything small, and it needs to be considered. Im not sure exactly how anyone would like to read it, but i know one thing of four decades watching markets, markets dont watch bad news as a result go sideways. Rick, are you talking about the ppi number still in that regard . You mean the fact its interesting. The political land scape, but oh, got it. I was talking about whats going on in politics more, but i think that if we turn our, you know, gauge away from that for a minute, the data is starting to heat up. And, steve, what do you think of that . So, you have the Producer Price ind index, import prices coming in strong, consumer prices, you know, thats there too. The wage number was not great in the jobs report, but, again, its not really reflected in the bond market right now. I think to ricks appointment, the market is trading off macro. Yesterday, there was the comey news break, and then the market dipped a little bit, and then they ran off those invenn story numbers where they just grabbed ahold, oh, oil is rallying. That means that theres an allclear, and the market just rejected the lows and just ran higher, but if you look at to ricks point, if you look at the market, its been digesting everything, waiting on these pro growth policies. Whether they pass, just the event of having a Friendly Administration after the last eight years, is deemed as a welcoming mat. All right. Have to go, guys, thank you, all. Appreciate your thoughts on todays market, and another interesting day here on wall street. In 50 minutes to go until the close, dow down 27 points, steadily moving from the lows. Thats the pattern as of late. Start weak, make it up as we go here. The s p down six points today as well as the nasdaq, down a quarter of 1 and russell down half percent. Buy the dippers other than a company like snap, tumbling to the lowest bubble since going public in march. When we come back, whether millennials who piled into the stock in the early days regret that decision now, and what that may do to the thoughts about investing in the future. Also ahead, attention shoppers and investors, a European Grocery giant is ramping up plans to beat walmart at its own game on u. S. Turf no less. Youre watching cnbc, first in business worldwide. Have a tissue. When this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. Its not just a car, its your daily treat. Go ahead, spoil yourself. The es and es hybrid. Experience amazing. Welcome to holiday inn whether for big meetings or little getaways, there are always smiles ahead at holiday inn. Twitter upping its game in Live Football now. The social networking giant and National Football league inked a deal for twitter to broadcast official nfl content year round. Now, for the last couple seasons, twitter broadcast select thursday night games. This new deal includes live 30minute shows that air on twitter five days a week during the season. It also, then, includes live pregame coverage and officially licensed video content. I get it during the season, but year round . What . Yeah. Have to be a real fan. Also, golf . Then i would pay attention. Because youre a real fan. Zb exa exactly. Maybe thats next. I suggest that with you at the hel helm. I have a day job. Speaking of which, lets do more of it. Snapchat down following disappointing numbers. The investing app, core demographic is mill len yenials 1824. Retail investors took the opportunity to buy into the dip that we saw. That the buy to sell ratio is six times more buying than selling it on the dip. Crazy. Wow. Well, continued stock drop, joining us now is edge wealth management, along with michael santolli. Welcome to both of you. People buy this dip in snap . Anybodimey menwant to believe t break the ipo price or stay down . Its early for snap, first ipo, visibility not as frequent, reporter, now, the markets getting, you know, bit more from management, so i think as we seen structure shift from sourcing for the social media space, just not uniquely positioned, user face, looking at, you know, a third of the user face not on facebook, 45 is nonoctober instagram, i think you add overflow to snap chat. Often times, see how the manager scales up the business, and marketers follow suit. The data team put this together, i dont know if we have a graphic on this, but the first full day of trading after the first Earnings Report after they became public, theres facebook, which fell 11. 7 the next day. Twitter fell 24 the next day. Gopro fell 14. 5 the next day. The performances right there, folks, are the day after they reported first Earnings Report after going public, and now we see snap down 21 . Consistency across the companies is not so much unproven Business Models, but metrics nobody was quite sure how they would be judged. How the companies would be judged. How they report. What metrics to emphasize, and whether, in fact, they transition to a Public Company was going to come along with a willingness and ability to please investors on a threemonth basis. I think that maybe you can take comfort from that. Im not particularly surprised that those robin hood numbers in terms of the ratio, heres why. If you are presumably relatively new to stock investing, theres loss aversion. Theres some resistance to booking a loss. Youre more likely to say i hope it coming back if i already own it, and, therefore, not sell, and maybe you think its a discount you didnt already own, do some buying. I know you like the stock. I quote james here, who also likes it, but said, what we didnt want to see was the material drop in backtobackdrop in aggregate revenue. Thats what happened. Do you expect it to reaccelerate from here . Yeah, the key to the story is revenue per user. By the way, down 14 . Down quarter on quarter, but also seems better, so that the key is how much it monetizes the business over time, and with the revenue, its between 6, 70 year and year, through 18, and over time, reaches 20 over time. I think thats key how the ad dollar employees the business, and this is an active light business. Its not just using google platforms, i think that key to the story. Theres another energy and tea company. I know after facebook came out initially, they had everybody saying, you got to go mobile, guys, missing the boat there. Twitter, find a way to monetize and raise revenue. Snap, they are facing this onslaught from facebook where facebook uses some of the strategies that snap has on instagram. Sure. And they are beating them at their own game here. That is the challenge. I think over time what happens is snap has to be able to turn to advertisers and stay, theres something fundamentally different about how our product is used, and the distinction might be that its actually built for this kind of distracted fleeting way that people absorb information with social media. I still think facebook is built on the premise of, hey, we people absorb themselves in this stream, in this content, spend a lot of time there in one sitting. Go to advertisers, say, look, you can haved video contenter, other messages built for this kind of quick back and forth,ic thats something you make something out of. Thing is but also over time. What if that is not the strategy they follow . They are looking more and more like a traditional media platform instead of the site that they that was a phenomena. It doesnt have to be the content at its root, but it basically has to be something thats built for people who are just kind of, like, checking in all the time. Zr rig right. How much time to turn it around . Is evan the guy to do it . I think he is. He has the patience to take the company forward. Give the company time. I would give it four, five years, and then well four to five years, we have well know in that much time . How much time do they have, mike . They probably have another two, three quarters before people sort of write look, look at gopro, you can see, thats a bad product, thats the worst case scenario, which shot up to 90 and collapsed. Yeah. Basically people said, it doesnt work. Im not saying thats where its going, but you have quarters before people give up. Thank you. Good to see you. Thank you. Mike, next hour. Closing with 40 minutes left in the trading session, dow down, 44 points. S p, nasdaq, russell, all lower as well. And nasdaq after a record close yesterday. Right. Up next, european giant chasing walmart down the aisle, but who gets crushed . Later, modern medicine, mit Computer Scientist uses her skills in big data to battle cancer. Thats still to come. Aldi takes on u. S. Giant, walmart, they want to beat wall mat at its own game of low prices, right . The company specializes in private label brands that account for about 90 of the 1300 items inventory carried. There are currently 1600 aldi stores throughout the United States. Companys looking to expand that number by 400 stores, mostly in florida, texas, and on both coasts, and it wants to add more private label goods to appeal to price conscious consumers, which is pretty much everybody right now. Walmart has over 5,000 stores by comparison. By the way, not many may know this, but aldi is the Parent Company of trader joes as well. I was just looking at that. Aldi brand stores or i think they are. I think they are. I did not realize they had that many u. S. Locations. Aldi has 1. 5 of the u. S. Grocery market, growing by 15 a year, whereas walmart controls 22 s of the grocery market, and its growing 2 a year. The law of numbers caught up with them there. Aldi is a fast growing company. One in connecticut people go to, and inventory turns over quickly. Its not just grocery but other stuff. They want to expand products. The ceo says they want to be the only place people go for the groceries. Now they just have private labels. They did that in europe. In u. K. , same debate happened with the established supermarkets and low cost guys. Listen to us, were talking about another growth in groceries, in retail, this happens to be groceries, but at a time when Department Stores are imploding and other retail outlets go out of business, grocery is growing now. Well, then theres whole foods. The question is, whats the future of their business . Is it for prepared foods . Can the grocery chains look back in ten years, why do we have so many chains when theres meal kits at home . I just received an email from our colleague, yes, im reading your emails, will, he say, the company has killed in the u. K. Since the financial crisis because they are insanely cheap. They bring low prices, something they want to go after walmart on as well. Remember, heard it first here. Aldi. And, thank you, will, for the contribution. 34 minutes left in the trading session. Here, the dow is down 36 points. When we return, youll hear what the president told nbc newss lester holt about firing james comey as fbi di