Gain of 44 cents. 44. 67 ber peril. Brent at 48 this morning. And out of brazil, the senate has decided to proceed with a impeachment of dilma rousseff. Vice president will replace her during the trial and permanently if shes guilty. 180 days guaranteed that shes out . Yes. While they undergo trial. Trial. And then they have a vote and the senate has to vote by twothirds to push her out permanently. We think based on the trial. But nobody thinks the trial is relevant. They think they already know the count in advance. And interesting the way the stock market has reacted. It was at one point maybe it still is the best performing market in the world year to date. Trading on her eventual departure with the idea that the Vice President is more market friendly. Almost anybody could be more market presently than dilma rousseff. Whats up . Closen on fifty in oil. The market was down 200 and supposed to be corelated. Doesnt work anymore. And then. Where did they get that . Squawk box. The diamond banker. The diamond calls someone a jerk. Put toint front page of the money section. But calls Community Banker a jerk. The perspective is he wrote, jamie diamond wrote an op ed i think on april 5th or around there if my memory is right. Sort of as an olive branch. It was at least portrayed as between big banks and Smaller Banks and a time when big banks are sort of, you know, continuously under fire. So jamie right this op ed and the head of the Community Bankers association responded with, i dont know, an interesting comment. It said just because jamie diamond says, you know, lets sing kumbaya right. It was take your olive branch and shove it yes. That was his response yesterday. Said that guys a jerk. You know him right . I dont think ive ever interviewed him. Hes been on a million times. Long time. Over the last ten years camden fine, probably been on 40 times on this show. Long time friend of squawk. You cant use jerk but maybe shes got a name for jamie we can elicit and then we can really get this thing going. Reality show for i will see your jerk and raise you a can i say putts . Yank i dont think you are because it means something. Is it so offensive were not supposed to say it on television is this. Yeah. Lets just really . Lets just move on. A stupid or worthless person engaged in inconsequential or unproductive activity. Keep going. I was gonna say is this the third or fourth. Only gives me those two. Oh the yiddish. I see. Okay. Glad youre with us. [ laughter ] okay back in the u. S. A pair of economic reports top the agenda. Weekly jobless and april imports both out u out at 8 30 a. M. Import prices expected to picked up last month after the relative will flat showing in march. Cleveland fed president , Loretta Mester and eric rose again and Kansas City Fed pretester george all fomc voters this year. Before the opening bell were going to hear from nordstrom and shake shack then after the close. Remember yesterday we were down 40 in the futures because of disney. And then macys hit. And he we closed down 40. I couldnt believe the market was that shows spread right . Well that shows you early on it does not necessarily immediately reflect what is going to happen in the regular session. There is not enough volume really early on. Since the recession. Right. Thats how bad it was. Right. And remember we keep i dont know we keep whistling past the graveyard. First quarter gdp then slowly came down 5 . No no no First Quarter is always week. No no no. Jobs are real weak. Makes you worry a little bit doesnt it . East with your does wrong time of the year. Gonna to talk to some fellas that coming up here that things arent that things are pretty tough out there. Hes our retail guest. He has a name well tell you later. Make up. Is there any powder left for me at all . Its all gone. They sent out for like emergency, over to duane reed to no. To try to. I was gonna wear your wig but. Pull on it. Go ahead. Touche. I have seen the leaf blower test. I did. The leaf blower challenge. I did. Yeah. The only people that call me folicly challenges are ones that just wish i was. And if that doesnt work they say get a new colorist. Corporate news, which is more important than this other stuff. Aetna says it plans to continue its Obama Care HealthInsurance Business next year. That is a headline. Here is an Insurance Company that actually is going to continue to be in obamacare. And it may expand beyond the 15 states where it currently participates. Earlier this year aetna reported obamacare business has operating losses about 4 in 2015. Rival United Health one of the largest said it will exit most of Obamacare Exchanges next year. Linn energy, the oil and gas producer has about 10 billion in debt. Founded in 2003, went public in 2006. So it is a it is leaving. It is gone. 13 years and the epitaph. And nissan is reportedly gearing up to take a stake in mitsubishi buying out about a third of the company in a deal worth nearly 2 billion. After of course mitsubishi admitted to overstating the fuel economy of a number of its models and the purchase would make nissan mitsubishis largest shareholders. They say it gets like 45 miles to the gallon and its only like 18. Yeah. Unless you are going downhill. Much better. You know when i went to school. You walked. It was uphill. Both ways. Exactly. In the snow. There are golf courses, ive seen them. Spy glass. It is all uphill. Weird. Mails sis. Mines Investor Confidence on the street. And wreaking havoc. Well hear from kohls and ralph lauren. And the some more stuff. Did you know what was going to happen yesterday. I thought macys might i was expecting 4. 5. Did i know it was going to happen directionally . Yes. How did you even know directionally . Because i spend my life in Retail Stores and talking to retailers. People are buying apeapareap what are they buying. We know millennials are buying experiences. Are they naked during the experiment os just wearing the same dirty old clothes. Millennial have as many pieces of apparel in their closet as we did as baby boomers at the same anyone. It is not they are not buying clothes. They are buying them for a heck of a lot less than we are bought them for. What they pay for their clothes is dramatically less but they have just as many units in their closet. So lower average ticket . Tfrs not. It was traffic. But that traffic went to h m, forever 21, you name it. Places that sell the product one heck of a lot cheaper. Fashion these days. Not just fashion. Tjx. Ross stores. Burlington stores. All the prices off price also are taking share. Are they going to have great reports . No because all know there is too many retail right now. And we all know the biggest gain ner apparel is amazon. So online is really taking share. So between all of the factors and the worst crummy weather for the last year weve had for retailing, none of it worked. So not bad weather but bad for retail. A warm winter and cold spring thats awful. Rained for for like ten days in a row. The market cant go up till it stops raining. There is a data point. 48 square feet of retail space per capita. Depends how you calculate it. But the point is on an apples to apples basis we have twice as much per capita retail space as any other place in the world. Uk is second. They are half of what we are. So yes, we are the most overstored place in the world. What should that go down to . Its going to have to go pretty fast because that doesnt even include whats going on online. If you did that you would be up another 10 or so. So over 50 square feet. Its gonna have to go down by at least half at some point in time. I believe over the next 1. 5 yea 13. 5 years. How much in trouble, literally, are macys and anchor stores in the mall . Department stores . Well they are all in trouble i dont sales not going to go broke. Macys is very healthy. Great cash flow. It is going to monetize the real estate. As of right now they are probably a biesmt however if you look into the future, not that far we have 1100 enclosed malls in erk many. We probably need 700. The top 250 will do find. The rest are going to struggle. Macys had 800 stores. They probably need 500. Kohls and pennies between them have a lot of stores. Doesnt mean were going out of the mall business but we are going to need a lot less of them. Simon Property Group for example, that stock was at an alltime high two kay days ago. And they own a lot of malls. Todman mall gp mall, they are winners. Those malls are gaining market share. The bottom end of the spectrum, the c plus, b plus malls they are struggling. Could go out of business . They are going to go out of business. It is just a question of how was and what rate that happens. Purely location . No. Its volume, its anchors and location. Depends how good the mall is. Garden state, roosevelt field, king of prussiprussia. Why would you go anywhere else but the short hills mall. Yeah but the last time ive been in that mall i cant remember the last time. But we dont go to the mall. If i haed to goth to mall that would be the mall i go if thats why i gould. Now i go to the virtual mall called amazon. Those malls are gaining they are running positive comps. Ive been there you know why. Apple store to buy charger. They have every store. To jans point. They have every store that you would. What did you call it . Fast fashion . Why did they say sign him to me . You said that and it immediately impressed me and i havent said another word. I impressed you . Stla youre not a macro guy. Of course i am im a rae re tailer. You have to be. There is a consensus that were going to do 2 this year. No way no how we wont it is what we do every year and therefore we dont need to worry that the fed is at zero and we are going to go below two where they have no bullets left. Will we do two . Or can the consumer dictate that weve got a slowdown. The consumer is fine. They have money and more wages and there is nothing wrong with the consumer. Were selling cars like crazy. So macys does that and it is not a recessionary. That is not the real problem. The problem is price transparence to other modes see it spread to the rest of the market. If you dont think macys is reflective of overall gop. I think walmart is going to be fine by the way with their numbers and. They are the economy. Okay. So was it a one day reaction in the market yesterday . Pointing out that when macys numbers came out the futures numbers didnt go down even more and why not . To januarys pois point it is reflecting over overall. The wapner top. Discussion of the diamond bottom. The wapner bottom is better than the kernen bottom. Yeah dont try to pick a bottom. Its disgusting. [ drum roll ] thanks jan. It is a hard act to follow, you know. And he even had a rim shot. [ laughter ] no heed wi ed withad a drum. Isnt that what its called. [ drum roll. In our next guest is o ophthalmoptimis optimist optimistic. Accented snare drum back beat. That is what a rim shot is. Tell our viewers what you thought it was. I thought it was something to do in a basketball game. That is a ring. It is a ring shot. Hi ed. On that note. Do you want to weigh in in on this . No please dont. Just finishing this retail conversation. The market seemed to react through the day directly to that. How concerned should we be . I just heard i think it is really a micro problem rather than a macro problem. A shift in the share of spending not necessarily the consumer is in trouble. I think the consumer will continue to drive us higher. Not a tremendously fast pace. I think twoish. Not that things are great but were continuing to move positively. How does the market feel to you. 1810 to 20080. Come off a little bit there. Does it feel a little precarious position . Have we come too far for no apparent reason. Were basically at the same level as in november 2014. So weve been flat for a year half. And the main reason is simple is that earnings have been flat for year and a half. So the key this year is better growth in the second half of the year which i think likely to happen. Do you think the bottom is that bottom in . 1810 . Right. Just mathematically, the market volatility is about 20 a year so there is a chance it will go lower than that at some point. But i continue to think if im right that earnings are better in the second half, well work our way higher between now at end of the year. What do you think got the market from the diamond bottom to where we are today. We started the year off and a whole bunch of scares came out. Another china scare. And well probably get another one. But things got better. So you have a bunch of things early that dropped prices down and then people loorked around and said the market is a good buy. So fundamentally the dividend yield on the s p is well higher than the 10 year bond yield. You think it is fundamentals. Yeah. The flat earnings we had down earnings in the First Quarter but sequentially if you look second versus first were going to see probably about 8 to 10 jump in earnings. The head winds for s p earnings from Energy Prices being low and dollar strong are dissipating. Both of those things reverse, the weak oil and is it strong dollar. But we ran out of steam trying to get back to the old highs. The reversal of those two negatives didnt get us back. Seems like weve run out of steam on those two things reversing. I think it takes a little while for that to work its way through earnings. Again, year over year, Second Quarter would still be lower but on a sequential basis would be up and in the second half maybe 5 or 10 of earnings. Well still have a lot of volatility because the concerns about china and other things have not gone away. Just the fundamentals have been weak for a year and a half. The market can withstand a fed hike whether it comes in the summer or fall . I think the fed will probably hike at some point this year although i think it is going to be tough to get over 1 because the National Rate i this i is quite low. There is a lot of capital trying to find safe returns but i this i we can get buy thy that. If im right valuations are a little high but not high november to stop us in a world where other things are also expensive, capital has to go someplace and you get a better buy in stocks than other assets. Coming up only in texas. 63 million for a football stadium. That would be a High School Football stadium. Thats next. Plus Vladimir Putins performance dropping sharply from last year on the ice hockey rink. You know it is always good video with vlad. Squawk box will be right back. In new york state, we believe tomorrow starts today. All across the state, the economy is growing, with creative new business incentives, and the lowest taxes in decades, attracting the talent and companies of tomorrow. Like in buffalo, where the largest solar gigafactory in the western hemisphere will soon energize the world. And in syracuse, where imagination is in production. Let us help grow your companys tomorrow today at business. Ny. Gov welcome back to squawk box. Weve moved chairs because the subject matter over here is m e more. Decorum. And over there we try not to engage. Very serious over there. Dicey over there. So were going delve into this whole rim shot business. Actually were not. Its a snare. Thats all it is. Agreement on a 62. 8 Million Dollar football stadium for high schoolers. But what is the name of the show . Friday night lights. Football in high school in texas. They got a lot of oil money and everything else. Look at that. That is nice. Beautiful. Looks 62 Million Dollars though. What if they have a crappy team . Something tells me they dont. Right. Bunch of stiffs out with a stadium like that, right is this. High schoolers some of the best years of their life. Are you allowed to play for eight years in high school . No 23yearolds on the no. Voters approved a bond program that included more than 50 million for the stadium and event center. It will seat 12,000 people. That is amazing. The districts current stadium seats about 7,000. But the School District has nearly 25,000 students. It is expected to be completed by next year. That is pretty amazing. Infrastructure at the local level if they vote for it and approve it. It is wrapped in a 220 million bond is there may be things you liked in the bond and other things you didnt. You are stuck with the stadium. I love this story. Its within called the future of transportation. Hyper loop one unveiled the prototype of its high speed pod. Tested outside of las vegas on a track about a third of a mile long. The goal is to transport people and cargo in pods at speeds up to 700 miles an hour. Trying to prove it will work. Wants to go one under the United States going east coast to west coast really fast. I who you would love that. Its a fast train. But you travel the speed of sound. Its a fast train. Yeah. Really fast. But a really fast one. I know. But you just want the Structural Integrity of the track to remain like that the entire way or else that is what squares me about trains, versus planes. You can hit turbulence in planes. But if you hit one break in a track. As weve seen. As weve seen. And that momentum there are 30 cars behind and it it is an ugly you better have that track spotless. Yeah you better know about these structural integrities. And california . The slightest tremor out there . You know. Scary. That could be interesting. Like a roller coaster. Just got me worried. I was so excited. Well you just buy into this stuff without thinking about you know. Arent you skeptical about stuff at all . I dont know. Im hopeful. I want to i do not. He wants the sing you later to happen. I do not. Sing later. Singularity. Ive already reserved your avatar. I want to be you. I want to walk around you as you. In this case i really do mean it. Russian president Vladimir Putin took to the ice this week. Faced off with former russian nhl players in an exhibition match in the amateur night hockey lead in sochi. Notched one goal and two assists in his teams 95 victory. His team won . Shocker. Shocked. The guy was a bit of a slouch this year. He had 8 goals last year. Only, what, one goal a coupling of assists. The guys a good athlete though. Right . As he tells everyone, yes. Weve seen it. Look at him. Come on. Vlad can, look hes pumping it there. Hes a trainer there. Guys g