Nyse. Thank you very much for having me. Lets start with the nervous side of that trade. Those retail sales figures which will disappoint so many people. Lets bring in steve liesman, our senior economics reporter. Steve, this is a huge disappointman after weve tried to get this economy going for so long. I think thats right, and i think when you put it in context, simon, what were talking about is two of the last three quarters look like they are on track to have been below 1 . Guys, we just calculated some of the incoming. This eats data right there. Can you see there 177 and the one below at 1 2013, the First Quarter there and it looks like if we draw the jennings one it would be below 1 . Guys, we just calculated using about eight estimates that have been changed today. The current gdp forecast for the Second Quarter, its now below 1. 0. 9 . It should actually be a bit lower in there because one guy in there, ubs, up there 1. 12 , thats the prior, and that is now down below 1, with the low being 0. 3 so nothing really negative at the moment but were getting there. Retail sales disappointing, half the expectation. Auto disease their part, exautos it the problem. It looks like to us that the consumer gave it up in the Second Quarter. The expectations, guys, are that the Third Quarter is going to be better, a little bit better income, still strong employment growth should help the consumer in the Third Quarter, but wed have to brace ourselves to report later this month. That could be below 1 at this point, sue. All right. Forearmed is the way we have to put t. Retail sales, steve, stay with us. They were not good. Sales rising. 04 . Take out autos and gasoline they actually fell a tenth of a percent, the weakest showing since june of 2012. Goldman sachs just cut their estimates to 1. 3 from 1. 6 and then, of course, theres ben bernanke and the federal reserve. So we have sinking sales, shrinking gdp and the fed. Could all of this in some combination or another derail the rally . J our guests join us now. Jim, weigh in on this. Retail sales were not good, especially if you factor out the two other elements. How do you view us Going Forward in terms of Economic Growth or the lack thereof . I think sales are critical. In fact, i look at sales as a key ingredient for stock valuations in terms of our work, and, you know, we would like to see, you know, retail sales and top line growth growing at 1 to 2 , maybe 3 a year, and that will help support higher equity prices, but i will also i did notice, and we have noticed, that Consumer Confidence and retail sales, there has been a gap, that retail sales year over year has been trading above where Consumer Confidence would suggest, and while Consumer Confidence has been rising and that gap has been narrowing we did expect that year over year retail sales would have to come down a little bit to close some of the gap thats formed. Jim, what do you think . Do you agree . Obviously retail sales could not keep pace to what they were doing previous to that, a lot of discounting factors going into that as well. How do you view the economy . I think the economy is clearly slowing down, but im looking tat in how does it affect the markets . I like to procrastinate, if i have a meeting i dont want to go to, i push it back a couple of weeks and the markets do the same thing, push back the taper a couple months and thats why it feels good. Thats why were going higher. Bad is good when it comes to stocks because people think thats old and trite. Thats still the way it is, this number was more than mildly bad, as an aggregate numbers mildly bad, that to mean we can say that the taper will be off the table and the market feels good about that so as of today thats fine. When what then does ben bernanke say when hes on capitol hill two days late they are how does he communicate to the market . Where is he now given that hed raise tapering on may the 22nd, and could you argue the economy might not justify that at the moment . You remember, simon, that he did try to buy himself an out by saying data dependant, the fed has come back and reiterated that, this data dependant, so i do think this is a data item that would suggest that tapering, you know, need to be put off. In fact, you know, i would argue that the only thing that i think is standing out there that would cause tapering to occur before year end has nothing to do with the economic background and has everything to do with the fact that chairman bernanke is likely stepping down in january and wants to sort of complete the cycle on this program. What do you think, steve . Well, i think theres an interesting question thats on the table here, and it has to do with the feds perspective on substantial improvement. The more i listen to the fed talk, the more i hear, and even bernanke, pardon me, i hear the improvement being measured against when the program was first launched in september, and no matter what happens with this data, and i think, you know, barring a pretty big spike in the unemployment rate, the fed can argue theres been improvement since the program was launched in september a year ago or what will be a year ago, so i think the fed could still be on track to taper in september. Remember, just bringing down the amount, not necessarily curtailing it. And risk the fallouts on the market and further undermining confidence. And risk that if it feels two things have happened, simon, and this has been a process thats been going on for almost a month now, longer than a month, is convincing the market that tapering is not tightening. Exactly. That bringing it down from 85 to 65 is still stimulative and that theres a disconnect, which there is, between the amount and the timing of a taper and the timing of a fed fund hike. Steve, i think that thats interesting, if they are not fixing long end rates. Definitely interesting, if nothing else. All of a sudden they hit the long end the destabilization in the markets is something they dont like. As the fed and the market have tried to do this very tricky Communications Job of tapering and not tightening. Not tightening. Tapering or not tyking rates. And im feeling that the market is kind of getting that. I hope youre right. We have to leave it there. To taper is not to tighten. Nicely said, sue. Thanks, guys, very much. Simon . Lets talk about boeing. Shares of boeing up 42 . The last week obviously wasnt such easy going, however. The stock fell sharp friday when reports came out that a boeing plane owned by Ethiopian Airways had caught fire at hondons Heathrow Airport. Today, however, you have the bounceback. It is the top gainer in the dow. Phil lebeau is live in chicago with brand new information on what might have gone wrong. Phil, over to you. And its still being investigated, simon, but the area that the investigators are looking at, as you take a look at this dreamliner here, right back here, right above this dore right here just above the final rows of seat, and back in that area theres a lot of wiring and theres a component back there called the emergency locator transmitter. Essentially this is all plugged in, in every single airplane and it goes off if theres a crash, and they are looking at that as a potential source for location where the fire started. Doesnt mean it was a bad transmitter or that that was the cause but thats slightly encouraging news for boeing for two reasons. One, they have ruled out that it was batteryrelated in terms of the lithium ion battery, and taking a look at production, keep in mind, theres so many miles of wiring within the dreamliners if they can isolate it down to one component or a component installed directly or a short within that component that happened in the manufacturing process, that certainly would be good news for boeing. As you take a look at how many dreamliners have entered into service. Keep in mind there are 68 that have been delivered. 13 airlines around the world are currently flying the dreamliner, and those carriers are not reducing flights. Why not . Primarily because theres no indication that this is a systemic issue. This could be a component that just went bad in this particular plane, if its in fact that component. They dont know what exactly went wrong, but can i tell you buys this. Talked to one guy familiar with the investigation, and they said something very interesting today. They said, listen, theres no sense of panic here, no sense of immediate concern that there was back in january when you had the lithium ion battery fire in boston. At that time everybody said weve got a major problem and thats knows whats going on and all of that is starting to trickle into why were seeing boeing shares move a little bit higher. Though the volume was he have on the downdraft on friday. Absolutely. While weve got you here. Let me just change the subject. What do you think about Asiana Airlines suing the fox affiliate in San Francisco of getting the names of the flight crew terribly wrong . Not entirely surprising. Anz yeah, you know, when we were working this story, they were pretty responsive, and they wanted to make sure that their side of the story was told as completely as possible, and frankly they are probably looking at what happened on friday and saying are you serious . How is it that this could happen . They gave us a statement saying this legal action is being taken because of the ktvu report, the San Francisco station that not only disparaged asians in general through the use of air bally charged epithets but also severely damaged the reputation of Asiana Airlines. It will be interesting, simon and sue, to see whether or not this actually goes to court, if the suit goes that far, and what a court would say in terms of whether or not the one report, which the tv station apologized for, actually did damage to the airlines. Phil, thank you very much. Phil lebeau live in chicago. Lets get a market flash with josh back at hq. Hey there, simon. Have a look at some of these casino names, mgm, lvs, wynn. Analyst expectations were made. Lvs gets about 85 of revenue from china and singapore. Wynn gets 70 from china and mgm gets about 40 from china. Sue, back to you. Josh, thank you very much. Take a look at this chart. Its our bob gasoline, up more than 8 in a week. What does that mean on wall street . You can see the chart for that, but what does it mean at the gasoline station and more importantly for the economy and retail sales . Jane wells is live in northridge, california, with the impact for us. Hi, jane. Hey, sue. As you mentioned earlier, gasoline, one of the few things that saw an increase in retail spending over the month. Aaa says the price of an average gallon of gas in the u. S. Rose 14 cents in a week to 3. 61. 14 cents in a week. Here in california we found one of the few stations where can you get in just under 4. 3. 999, of course, if youre paying cash. Prices go up like a rocket and down like a feather but commuters like jasmin figures shes now spending 60 bucks a week. Does it change your buying habits . It does, somewhat to answer tent but in my mindset i know what it takes up to fill up my car so i prep myself for it. I mean, it sucks but it is what it is. If i had the old load, the old price, ill keep it down, but as soon as i guess my new load in with the new price then i have to go up. Im a businessman. Fairly bleak for the next few weeks, gas prices will be going higher nationally, anywhere to the tune of 10 to 20 cents a gallon. Reporter a couple of reasons for that. Turmoil in egypt, higher than expected u. S. Demand, a few refinery glitches, but this isnt a refinery problem, im told, but were still not neither peaks we saw in gas prices. In fact, let me show you a couple of photos. This photo i took last year in calabasas where all the cool kids lived 4,. 99, this station this morning 1 less but it doesnt feel like 1 a less. Next up on street signs, gas prices, gas taxes and behavior modification, also an important report coming out wednesday. Back to you. Thats the nature of working for the west coast, jane. Have you to get up earlier than the rest of us. Jane wells there in california. Okay, its a very busy week for corporate reports. Were kicking high into earnings city. Citi coming out with figures, profits at the financial giant surging. You can see where the stock is 51. 88. Adjusted rises to 1. 25 a share. Comfortably beat analyst estimates and stronger home prices helping to lower costs on mortgages and trading revenue also rebounding. Revenue rose 8 from a year ago to 20 billion. Topping expectations. Breaking it down revenue from fixed income rose 18 while equity market revenue rose 68 . Citigroups net credit losses declined to 6. 61 billion as house prices lifted the value of Home Mortgage assets that the company has held since the financial crisis. Checking out citi shares this year, the stock is up a whopping 31 . And the last few years, as you probably know, Goldman Sachs has had more than one or two bruises. One of the first names to bring on the public beatings was fabrice taure. Fabulous fab as hes known is in court today and Mary Thompson is live in new york with the story for us. Mar . Reporter hey there, sue, a jury of five men and four men including a retired stock broker, episcopal priest and retired School Principal will decide the fate of fabrice tourre. The judge is keeping things moving at a fast clip promising jurors the trial will not last more than three weeks. 59 foot 5 frenchman speaking with lawyers during jury selection but deshrink to answer questions from the press that surround him as he entered the courtroom this morning. Hes denying the s. E. C. Allegations in a case where the judge is admonishing both sides to keep it simple telling them have a heart with this jury. Dont use jargon. Doesnt want to hear words like swaps and securitization and long and shorts thrown around. Also wants to limit sidebars, again, because she wants to keep this case moving. Its, of course, a case that wall street will be watching closely. Among the witnesses expected to be called to take the stand, Hedge Fund Titan john paulson. His firm the short side of the fund abacus at the center of this case. Tourre kept information from investors who were long. Paulson made 1 billion on that cdo. The long investors, of course, lost 1 billion. Opening arguments from both sides will begin at 1 30 eastern in just about 15 minutes. They both expect to take about 50 to 55 minutes and then the first witness will be called to the stand. Ill be back in closing bell with all the details. Sue, back to you. Look forward to it. Over to josh lipton for a quick market flash. Have a look at qualcomm today. Analysts in lizard Capital Markets shift. Qualcomm down today and also down for the year. Simon, back to you. Thank you very much, josh. Are you hungry for profits . Well, wait until you see what food stocks are doing this monday. Plus, while youre shopping, they are watching and they are not looking for shoplifters. They are watching your behavior. See who and what in two minutes. [ cows moo ] [ sizzling ] more rain. [ thunder rumbles ] [ male announcer ] when the world moves. Futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. And trade with papermoney to testdrive the market. All on thinkorswim. From td ameritrade. Some of the food stocks trading at new multiyear highs. General mills a new high and whole foods a new high. Conagra at its highest level since december of 1997 and tyson foods up as well as a new record high. Simon . Brick and mortar retailers are taking a page from online rivals and now were relying on high tech and software to spy on you as you physically shop through their stores. For instance, nordstrom is testing a smartphone tracking system that basically identifies it through your wifi and keeps tabs on you and your behavior us a move about the store. Here to talk about the different ways that retailers are now tracking you as a shopper, were joined by cnbc contributor and merchant forecaster mary fprogram and mary, people know stacy well. You go out around the hedge funds in the world to see whats happening and report back . Yes, u. S. Malls and outlets. We do Digital Media and we do parts of asia now. As anig cogniuld go ne an as anig cognito shopper. They are using Different Things from satellite to evaluate the mall traffic and how many cars are going into the parking lots and are they shopping at nordstroms, macys or jc penney. That can give that information as well as a number of things like we read about in the nordstrom article, basically everything that they can use to evalua evaluate the shopper. What are they looking for . Nordstroms is being called out today because they told their customers, they are saying if you opt into our wayify network were tracking you and check out what you doing, hanging out in the Shoe Department so they are using this to schedule labor and using this to figure out whats working in the stores and whats not, and one of the technologies that i find a bit creepy, they have the new isee mannequin which has video with eyes that track where youre going. Next time look at the eyes of the mannequin because they are watching everything youre doing. I should point out that nordstroms tested this and is not now employing the technology, just for the record, there. True, true. Seems to be more about when youre not buying. They want to see from what point you walk away from an area and how they can change their practice. For 25 years weve been able to get a lot of data on who is buying and then get more information through the Sales Associates and their profiling. However, we dont know who is not shopping there and why, so trust me, i dont believe nordstrom would do anything to compromise any customer standards. They are all about doing whats right i think the issue, stacy, while people might be okay with being tracked online and for the internet to recognize them on a site and customize the experience, people may not be as ready to be tracked in this way through the stores. Is there an issue there . Thats true, and i think theres a lot of concerns around privacy. Again, everybody is picking on nordstrom. Nordstrom disclosed this so that, you know, a lot of retailers have been testing this and not bee