At the top of the list is tiffanys. At the bottom, though, pet smart, as we have a sale on retail experience. The former ceos of toys r us, sears canada, saks and bluming dale are all on power lunch to talk about it. My partner is at the Investment Company institutes big meeting of the year. What you got for me, ty . Its not 17 trillion. One out of two american households have money in mutual funds, about 60 of your 401 k assets are probably in mutual funds with thousands of funds represented here today. Well talk Investment Trends around the globe later on this hour. Meantime, a new round of recalls for General Motors today. The stocks starting to feel the heat. It is up a few ticks today, but down 9 over the past three months. Phil lebeau is across town today in the nations capital. Phil . Tyler, lets talk about those recalls. New ones announced from General Motors today. More than 200 thousands chevy aveo models, part of the latest recall from General Motors now more than 13. 8 million vehicles recalled. When you look at the industry as a whole, this year there have been more than 22 million have you beens recalled in the United States that is the most since 2004 for any one year. Earlier today here it is Brookings Institute, we heard for the first time from the head of president obamas Auto Task Force about whether or not the auto team for the president had any inkling at all there was a problem with gms ignition switches when they were restructuring the company back in 2009. Heres what he had to say. No, absolutely not. Look, were not forensic accountants, were not fbi investigators, were private equity guys. We with only know what the management knows and what the management chooses to tell us. As far as i know none of the management people we were dealing with knew about it, so of course did we know about it nor could we have. Here at the Brookings Institute we had a chance to catch up with sergio marshone. He said he says there is the potential if this continues for the industry as a whole it could hurt consumer demand. Were getting giving the business the wrong reputation. Its not as if we cant make cars. Its not that we woke up and Sergio Marchionne says the issue is they will think there are recalls all over the rod and he believes that many of the are not safety related and shouldnt be announced as recalls. He think that has the potential to ultimately hurt consumer demand. Sue, back to you. Obviously theres headline risk there. Thank you, phil. Stock is down 9 over three years. What do the analysts thing . Think . Welcome back what is the headline risk in so many recalls, specifically from gm that were talking about almost every day . Its very frustrating, you know, i wouldnt even venture to figure out when theyre going to stop announcing the recalls. Even a small recall will get big media attention, but, you know, there is an increasing risk to the brand, and as sergio said perhaps to the industry. I dont think were anywhere near there yet, but we dont want to see this news keep on going in the headline. What is the future for gm . How long do you think it will take the company ultimately to recover from being mired in this mess . We still have a lot more to go in terms of hearings, investigations, so this will be a long road for them. I think that we can continue on the theme ive had with General Motors being a 2015 story. This year youre going to have the hits from restructuring in europe, in the introduction of new products and costs related to that, and of course the recall costs, which is now up to about 1. 7 billion. Once we clear the deck of that for 2015, then we benefit from the new vehicle introductions, i see sizable profit increases. Do you have a price target on the stock . A 48 price target thats about ten times our next years earnings. Thank you so much for joining us. My pleasure. Im sure well see you again soon. All right. Lets get more on the market. We are in rally mode. Bob pisani joins me. Discretionary, energy, financials, just having an across the board rally today. Retail earnings fairly lackluster, but i have to highlight the one big winner. My eyes bulged out when i say tiffanys. The Sales Numbers were eye popping. Worldwide sales up 11 s we were expecting 4 . Australia and china were strong. Look at 30 for japan, a lot of that was due to the new consumption tax. A lot of people tried to get in before that. We were expecting europe to be up 2 or 3 , down. Thats the only disappointment in an otherwise outstanding report. Lowes said basically the same thing as home depot. Sales are improving. Ill show you why. The problem on the street is lowes is falling behind home depot. Look at the numbers. Lowes samestore sales. And this has been happening quarter after quarter. Thats the problem right now. Home depot just Getting Better sales than lowes. Finally time is not part of time warner anymore. Its finally happened. Time inc. Is trading on a when issued basis down here. This is the spinoff from time. Were talking Time Magazine, travel leisure Sports IllustratedEntertainment Weekly it would be trading on a regular basis. So one share of this stock for every eight shares of the old time warner, but Time Magazine no longer part. Time marching on. But at least you know what youre getting. You missed the whole time marches on . Im there. I know you are. Thanks, bob. The earnings are in focus today, as he mentioned. Target out with the latest results. Earnings dropping 16 . Traffic at its stores felt for the sixth straight quarter, losses from the canada expansion kept going. Target cut its forecast for the year, and the struggling retail giant now says it also is unable to estimate future costs related to the data breach. Lets look at the shares of target in todays trading session, the stock is down 10 this year. It is down a bit less than a tenth of a percent at 56. 56. So a big week for lee tail earnings. S p 500 sector this year, its up a bit today. Not all stocks are the same, though. Dom . Sue, as you talk about this idea of a stock pickers market, we do know that even no the sector is the worst one in 2014 and the s p 500, there are a lot of winners and there are a lot of losers, so we want to do highlight just a few to illustrate our point here. First of all, among the three worst performing specific Industry Groups within the s p 500 are retail oar yenned. Check tout whats happening with internet catalog and retail. Thats like amazon. Com, special retail, textiles and apparel, theyre all down much more than the overall market so far this year. As you look at where some of the big losers are, you go towards urban outfitters. By the way, thats a record high for tiffany stoic. Meanwhile, theyre down toward a 52week low, so again a very bad move in terms of the overall move in urban outfitters. Then petsmart, its down 19 so far this year. Amazoncom, a quarter of the value shaved off, and coach down about 26 as well. If you look at some of the big winners, theyre not necessarily thematic. Theres some interesting ones developing. Nordstrom is up about 10 . I want to call your attention to the other side. Michael kors, coach is down bill, but michael kors is up 15 . Autozone and oreilly auto parts, these are the places you go to buy the air filters, motor oil, theyre up between 11 and 14 just so far this year. When it comes to retail and Consumer Discretionary, sue, the idea is this is very much a really the definition of a stock pickers market. Back over to you. Excellent, dom. Thank you so much. Retails remodeling invest for success is on aural agenda. Clearly a lot is happening. Courtney reagan has four former ceos. And mark cohen of sears canada. Its an allstart panel. Thats right. Its really special. Says he theys that retail is clear, but the consumer is not. Do you believe that . You look at the numbers, and you see the health there you had a you had a discretionary income. Whats your overview. Youve seen it already. What do you think about weather . Weve been hearing it a lot about an excuse. I think the weather was really that bad since the period of january. I think well see, but i agree with if u to look at the apparel if you talk about urban outfill irs one thats really speaks to. Mark, you know, sear canada, of course had some success. Billing, big stumble. Is it worth it. Theyre made a i think the challenge they and how to rethemselves. You talk about it a lot. Haves and havenots, i think its the omniplayers i think mike goulds own company is one of the best in terms of having embraced and done a good job. But theres no question in my mind the consumer and those that are investing to have the capabilities, and move the inventory around, do the analytics to understand the consumer behavior, theyre the ones that are winning. Id like to go back to mark, but any of you gentlemen can certainly address this. On the issue of target, how long is it going to take that company, mark, to get its footing again . I think its going to take a very long time. That means it could take years. Gravitate to likely. They breached an element of just to cover off the logistics cost. And of course they suffer from which frankly is the kiss of death in a business channel like theirs. Michael, go ahead. The issues go beyond canada. Exactly. Targets needs to go faster, faster on the internet. Faster on fixes the core execution, and theres huge merchandising opportunity. So when i talk to people, the question is what happened . And its almost a visceral reaction, like its not possible that such a Great Company could have come to this . The reality is scrape off the tarnish. Theyre a great brand. Its going to be one of the most straightforward ones to fix and its going to take energy and time. There are a number of retailers looking for a new ceo. It seems like were sort of missing out on this pool of really strong retail executives. Where are they . What do they think are the good guys out there . Or gals. I think there are good people out there. The leadership tends to be the singlemost important thing. And to have a strategic plan, and whats a succession plan. So someone asked me, well, no one is going to leave. The team is there. I think its ingrained about leadership, its ingrained about education, about this is our model, this is our dna. There are people out there. The challenge in retail today in my mind is where is the risk taking . These Young Students that present these incredible design, you look at the creativity each year as you go and support the fashion industry in new york city, you go, where do you go . Go to those the problem in the big i think its an opportunity, retail offers job creation, first of all its one and four jobs, but the kinds of jobs that are available, theres a perception its the salesclerk. You have engineering, you have technology f. Analytics, so many different kinds of opportunities, and part of the opportunity for the industry is to attract that top talent and then do what you did. You had one of the best Training Programs in the industry. You talk about leadership and retail, teaching it at columbia. Thats what you need more of. I think you have a whole industry that needs to develop that talent. What is the culture, that unless youre a private risk is not on the forefront. If i could follow up. Its like a hightech business. Its numbers its a whole different caliber. Is one of the reasons why ceos are not willing to go out further on the risk curve because they feel beholding to wall street, to their shareholders . You can say certainly about retail, you can say that about a lot of industries, youre a prisoner of the quarterly report. The fact of the matter is risk taking is a heck of a thing to say, but the buyer walks into the manufacturers showroom and the first question out of their mouth is, whats the deal . How will you protect me on the back end . How do i return the merchandise . Versus saying how am i going to differentiate my if you walk into bloomingdales today and theres not more than 3 , 5 of the merchandise thats different that you cant buy in ten city blocks, okay . But the fact of the matter is, how do you make that difference, though, steve . And were talking about there are other people in the country, yes, the real inventory at all levels of an organization, but i really do believe, how do we encourage people to take prudent risk taking, and i think thats the difference, because the stores, you know, when people talk about internet, i laugh sometimes, because 95 of retail is done in brick and mortar. The Online Business is 5 , 6 , so the stores are going to be exciting, the stores that create an environment, and shopping areas have been in existence since the time of the greeks. They come to a place where they want a social interaction. I really believe that. To wrap it up, some quick picks, you goo is have to be honest, who do you think is doing great or not . It may not be popular, but the fact is amazon continues to build enormous share. The question is whether they will at some point decide to reward shareholders with profitability, but at the moment, i think they continue to be the giant killer. How about you, michael . They asked me, i just left bloomingdales after 23 years, if i dont say mayys, someone would say whats wrong . Think senator stroms , before other people they have come out and said pretax will be less on a basis, and i think that on the longterm basis, i think that they on their total business, i like very much. And you have to add tjx and also dollar general. Steve . I think, i think mikes is the and you cant ignore tjx. What a rare opportunity. Thank you guys all so much for joining us. Sue, back on over to you. Thank you, gentlemen. Be sure to stay tuned into street signs, with an exclusive interview with john mill gan, as you know, the company lowered guidance today. You dont want to miss that interview. Lets go to dom for a market flash. Lets continue that tjx theme. The owner of tjmaxx and marshalls, the stock is rebounding as mkm partners and ubs both said the selling was overdone. Currently trading, up about 3. 5 , now back to tyler. In washington, d. C. , back over to you, tyler. This is the big meeting of the year for the Mutual Fund Industry in washington. These are the men and women who control 17 trillion of your money in mutual funds and the etfs. Well ask a couple of the Top Investment pros what they see and say about this market when power lunch comes right back. Were moving our company to new york state. The numbers are impressive. Over 400,000 new private sector jobs. Making new york state number two in the nation in new private sector job creation. With 10 Regional Development strategies to fit your business needs. And now its even better because theyve introduced startup new york. With the state creating dozens of taxfree zones where businesses pay no taxes for ten years. Become the next business to discover the new new york. [ male announcer ] see if your business qualifies. Become the next business what if its too soon . Ew york. Its not too soon. Look at the tub. Yeah, were gonna buy a house based on a tub . You had crazy eyes when we saw the garage. Trulia says the mortgage is the same as our rent and its in a great school district. Ya know, cause were going to start making babies. Lets do it. What . Yeah. Now . Yeah. Barbs right there. Not that part. Oh. Yeah. That moment you decide to buy. Thats your moment of trulia. You could win 50 thousand dollars for your next home. Visit trulia. Com slash win today. Welcome back to power lunch. The dow jones is rebounding. Now leading the way higher, youve got goldman sachs, the investment bank, also nike, United Technologies and verizon, a good day overall for the blue chip stocks, again rebounding. Now back off to washington, d. C. And tyler mathisen. Dominic, thank you very much. Stocks rebounding, but you know, many investors are concerned about the Global Market outlook. Whats the best strategy now . Joining me to talk about that. They call it the gmm in this city of acronyms. And martin gilbert, ceo of Aberdeen Asset management. Good to have you here. Were going to have some very, very impressive accents in this segment. Martin, i know a lot of american investors might not be familiar with your company, aberdeen, the largest independent fund manager in europe. Youre a big expoundant of going global and going into emerging markets. Thats been a tough play to be over the past year. Why do you say so . Implts youre right. Its been a tough place. Weve seen a lot of yow flows, but its a microcall, on the back of currency and the Economic Growth, whereas what we have seen at the company levels, theyve been fine, in fact doing better, so now weve seen a rebound and a bit of money coming back in, but it was brutal, november, december, january, february. My sense is for most american investors, the way to play the emerges markets is through a diversified fund, where you leave the stock picking and the country concentration to an investment pro, right . Definitely. Thats kind of a softball to you. Youre a fund guy, what are you going to say . No, but definitely not. Youre absolutely right, especially in emerging markets, because the first question you asked is, do i trust this company to look after my investment as a minority shareholder . That is the fundamental question in emerging markets, and the most difficult part of investing. Colin, waltz me through the American Market right now and how you deis stagging up. Im talking specifically about the equity markets here. Its been a very interesting First Quarter and change of 2014. Thats a nice way of phrasing it. Very interesting. Record highs, but big drops as well. So we divide the market into quinn tiles, those quintiles, the ones with the longest possible growth profile, so outperformed Everything Else that its really stretched anything that we have measured before. So its interesting, the market is at a high, and then people talk abo