Out, you can see that japan, the nikkei was flat, too. The hang seng and shanghai deposit down, too. Japan, the flat market there, japan avoiding a recession in the First Quarter gdp expanding by an annualized 1. 7 . Much more than a 0. 2 increase forecasters had predicted. Take a look at whats happening in european equities, the modest dines for the dax, cac, ftse. Down by 0. 25 . Take a look at crude oil price this morning, kruld is unchanged got all the way up to 48. 31. Brent crude is down six cents to 41. 42. Finally check out currency, across the board after comments from fed officials making it sound like june is actually a live meeting. Well debate this. The euro is at 1. 1266. The yen at 109. 41. Weve got top stories including political news, Bernie Sanders winning the oregon prime but nbc news is reporting that Hillary Clinton is the winner in kentucky. 99 tallied. Shes now within 100 of the delegates needed to clinch the democratic nomination. Goldman sachs downgraded its equities in europe and japan. Overall, goldman saying it prefers credit to equities, as valuation is not a stretch. The note citing that the feds less aggressive tone is one of the reasons for upside in the u. S. And calls to offer a more upbeat view on commodities. Saying that the fed southwest chinese data should support oil prices in the next three months. Joseph. No, negative Interest Rates in a third. World, a flat yield curve here but credit is not stretched. What would constitute stretched valuations at that point . If youre actually negative ive been reading a lot of stuff on the effects of negative Interest Rates. It is say bizarre upside down situation. And its hard for us to do the right things in this country when parts of the world are like that. Because its much more painful. Which is why we have this fiveyear yield curve now. Its distorted people are still buying over here what happened with yields yesterday. 1. 75 or Something Like that. But thats attractive 1. 786 . Yeah, luyou look at germany or y other places. A much bigger return. So, the market, we made some ground up on monday. But then just the notion that, again, some day we might raise rates. Some day in the future. Now, maybe its june. Immediately traders negotiation, oh, yeah. Its like, are we in this permanent place where the only thing we like, rates coming down, i understand. Weve talking about a oneday reaction. But somehow, weve got to go back up some day. Do the markets selloff every time. Goldman put out something saying for the next 12 months, you might as well not put in any money. Its knee jerk. Its japan. But people told us if it goes up for the right reason, then well be able they were wrong. If we continue to get good numbers, thats the difference. The question is because the rest of the world is doing so well, do they drag us down . Is this sexy . I mean, its hard to make Business News sexy. Yeah. Youre off the table. Right . I mean for anybody who missed it right, yeah. Although, you know, pregnant women are sexy. You got to say it or else you get in trouble. You got to say they glow. Thank you for the compliment. I think if people are endearing of pregnant women, theyve got a problem, right . I mean, its like some kind of now, youre starting to sound a little they have places like destination this sparkling moment has been brought to you by joe kernin. I think theyre beautiful and motherly. Thank you. And Everything Else. You just dont think were hot . We i dont think anyones supposed to think that. Be careful. I watched you come in this morning, that guy was holding the door for you. You were going to hold it for me im like, no, let it shut. Go sit down. Anyway. And when you get close you know when you do get were switching seats. Last time i was pregnant, joe would show me video during the show of aliens with the alien popping out of the stomach. Its something alive. You. You see the elbows and feet. I was threatening him that i was going to have my water break on set. By the way, i was on the air until the day before i went to the hospital. Now, its uncomfortable. We brought sexy back. Home improvement retailer lowes anyway, actually talking to analysts, 98 cents a share, 13 cents above estimates. Revenue beat estimates. Beating forecasts of 4. 4 . And the reaction from as i said i dont get the i want to talk to brian about what happened yesterday. Its like the home depot worst day in a long time. Interest rates going up is never good. I think there were some questions about sales growth, and keeping up with it. Were going to talk to brian in a little bit. Lets talk apple this morning. A day cant go by without apple news. Apple announcing a 1 billion investment in the chinese Ride Sharing Company didi. Eunice is there. Good morning. Reporter good morning, andrew, im outside of the Head Quarters of didi chuxing, where i spoke with the president jean liu. She was talking about the past cub days have been very busy playing host in part to tim cook. She said that the two do see the opportunity for a possible future collaboration. This is what she said. I was joking with my team, it feels like a speed date. Weve got to know the apple team. They got to know us not too long ago, but we clicked very quickly. Because the two companies have similar philosophy. We both care about community. We both want to have a collaborative and Inclusive Culture as a Company Culture so that gives a lot of common ground. In the same time, in china, we actually share a huge overlap in customer base. Our driver base, our passengers, they use apple and iphone a lot. Ipads. So i think its very intuitive. Reporter and as we many chinese companies, didi has scale. 300 million users. They say 14 million independent drivers and 11 million trips a day. And jean told me its very important for the company to invest heavily in technology. They say data analysis, as well as Artificial Intelligence are pointing to help them match passengers with drivers. This is what she said. Thats one Technology Advantage that we have right now, is being in this market for almost four years, we have a huge database. Every day, we have seven we process seven billion continuous position data. Thats bigger than any map company in the world. And we have constant data in our sta database everyday. So this is something that we have been working on and we will continue to push forward. Reporter there have been a lot of rumors this week about a possible ipo, maybe in new york. She said at this point, there are no plans for an ipo, but, guys, i think that were probably going to be hearing this name, much, much more. I thought id give you a tutorial of what it means, didi is the equivalent of beepbeep. Like a roadrunner. The company used to be called didixite because it means taxi. So didi chuxing. Eunice, before we let you go, help us with one thing, do you expect them to move outside of china, do you think they would want to come to the United States to help them compete with other parts of europe or asia . Reporter she didnt say right now whether or not didi was going to move itself into other markets but she did say theyre working with lyft and theyre impressed with lyfts reach. She said theyll be able to help chinese traveling more and more being able to using the didi app and see things in chinese but being able to travel around the world using lyfts app as well. So she has her eyes on other markets but right now she said the potential for this market is very big but she also spoke confidently about the pential here and her position compared to competitors like uber. Eunice yoon, we appreciate that a lot. Didi and lyft could merge. Lyft has a relationship with ford. Its like everybody versus uber. The apple store down the street, were one block that way uhhuh. Remember the fao schwarz store, they may take that over, too. Remember we said, who can afford to take over that store . Apple. Right next literally right next to it. The New York Post which happens to get it right. They have a great little picture of tim cook on the big on the thats a cool space. From the movie with tom hanks. Lets get back to the markets, bond markets, and traders are going to bech whatting this afternoon and the fed probably listening. We have the economistic at ubs and chris vesler, fund manager and coportfolio manager. You dont think necessarily june is the liftoff for the next rate, you think september is more likely. I know that. But this certainly is a little bit unexpected, since we saw june across the table. Let me ask you, ive seen the point made that central banks, with countries that have large debt, that negative Interest Rates, that theyre actually for holding money, they actually get paid. And we know how much government loves taxes. That makes negative interests rates even more sort of distasteful. Problematic part, they can act as a tax on people, right. Depending on how the public perceives them if you have a Large Population moving towards retirement and you have rates going negative, lfall of a sudd, all the money you saved for retirement isnt enough. Even worse for savings. Your money is actually going down from saving it and you actually have less. So the natural response, as a tax, to do less of it in actuality in these levels because time is finite, right, you and i are only going to last for a certain amount of time then we hit our expiration date. You have to save the money when you need to save it so you dont have a choice. Negative Interest Rates actually serve as people saving money. Can create a downward spiral. Suddenly, weve gone from that terrible 0. 5 read that we saw. Have there been a series of coincident Economic Indicators that indicate a better economy, i guess thats why theyre talking about june, right . I spend a lot less time looking at gdp because i dont trust the data. I look at claims, bank earning and surveys. All of them suggesting that growth in the first half of this year kind of look like growth in the second half of last year. Were not gaining momentum but were actually holding up reasonably well. Okay, this Goldman Sachs, the cost thing from the other day, who is the person now saying stay of the equity information general. Theyre all on the same page, i guess. Do you think you can find individuals you have to do you pay any attention to this kind of stuff . We certainly Pay Attention to the macro and the bigger items at the fed. Were out there doing fundamental analysis, meeting with teams. Knowing your management they can operate through bad and good markets. So im beginning to think and were seeing the market is functioning a little better. Its not all correlated. Youre seeing improvement in defense contractors now that there are wars around the world. Energy markets that are pretty broad. As long as oil is fines something comfort in the 40 range. We as like semi conductors longer term. There are a lot of economic improvements coming. Theres a big conference this summer called semicon west. We think theres a pretty good chance that those dollars flow through on the back here. Irrespective of macrmacros. If Goldman Sachs says in the comie ing months theres no rea to own equities. Im certainly more defensive this spring. Were getting paid to find it. We like to find that good value opportunity. So, were probably coming into that point here in the summer. The volumes will probably dry up. That tends to be a Good Opportunity to be out there when everybody is fearful. Theres a lot of uncertainties. Theres a lot of headline risk which is were facing which are real but again, the markets like certainty. And i dont think we have that. We saw that yesterday. You know, i dont think the fed can probably move in june. But the market doesnt like that uncertainty. Because of the brexit potential . Do you think thats the only Thing Holding them back at this point . I think its also, as youre talking about, the european rates. Youve got the spread trade that makes it difficult for them to move. Youve also got to be looking at the dollar strength. Weve had a little bit of a tailwind earlier in the year. When they made those estimates the dollar was stronger. Its hard to predict where any currency go s. It looks to me that central bankers are on the globe. The only way they can win is if other conducts lose. Everybody is trying to devalue their currency. We have lower rates than the rest of the world, excluding japan. Now the ecb is thinking look, weve got to put pressure on our currency. Is that a way of looking at things. Its not, i think what you have to realize, its hard for any person to kind of do the right thing at this point. Everyone is afraid of the currency impact. At the same point, if you want to think about it at this rate, everyone is trying to move relative to the u. S. If the u. S. Is moving up, it doesnt work against everyone elses desires. Or even stand where they are and hope that we raise rates . Yes. So if theyre not going to wait, though, theyre going to cut. So if theyre willing to cut, theres no point in the fed waiting. Theyre not able to manage the dollar anyway. The fed has to do whats better for the u. S. Everyone else will follow at a relative rate. If the fed sat two, everyone else can be at fed minus two or zero. Wouldnt that be great. All of a sudden, the world may look more normal. Chris, you said youre a little defensive, what does that mean . Not defensive stocks . I do like the defensive. The bombs being dropped out are there are going to be smart bombs. But we want to continue on to have short positions on and hold cash. Now, im looking at something, a transportation index. Cast transportation index down 4. 9 in april versus 2015. So the simple fact is that there was less stuff bought, sold and shipped from around the country. So, yeah, less stuff being bought which absolutely points to part of that is gol if things go right, theyre all going to be unemployed, thank you. Lowes posting. The stock up by 2. 5 . A programming note, 8 00 a. M. Eastern time were talking the company with u. S. Chamber of commerce president Thomas Donahue. Squawk will be back. singing you wouldnt haul a load without checking your clearance. So why would you invest without checking brokercheck . Check your broker with brokercheck. No, youre not yogonna watch it tch it we cant let you download on the goooooo youll just have to miss it yeah, youll just have to miss it we cant let you download. Uh, no thanks. I have x1 from xfinity so. Dont fall for directv. Xfinity lets you download your shows from anywhere. I used to like that song. Welcome back, everybody. Lowes posting Quarterly Results jut moments ago, beating systems on the top and bottom line. Lets get to the numbers getting a sense on how retail savings is shaping. You many. Brian neagle joins us from oppenheimer. Thank you for joining us. Numbers a very similar story from home depot yesterday, sales up better than 7 . Whats going on . Its interesting, becky, by the lowes report by the initial take away, this is a good report but not as good as the headline figures would suggest. Because . Theres a couple things we need to take into consideration. One, there was a onetime gain with currency acquisition theyre making. Its still upbeat. Its not as good as the headline number. The other important factor when i was talking to you yesterday about home depot, we all look at the spread between home depot and lowes, lowes performed. Reporter well. They closed that gap in several years. But the sales were weaker. Its hard to say at this point, they may have used Gross Margins to drive sales better. Meaning they may have offered sales to get people in the door to make sure they were winning just in terms of that . Its possible. Its not typically what they do in home sales. With the home depot yesterday, initially when that news came out because it was such a big beat because they raised the forecast for the year, the stock was up as much as 3 by the end of the day, we had seen the biggest decline in quite a while. What was the theory . Just the Broader Market was under pressure or more specific to the home depot numbers . Really two questions. I was getting that question from our clients all day. Two things, home depot hosted the Conference Call at 9 00. In the commentary, they did indicate that sales growth decelerated through the period. I dont think that that is that big of a deal. Home depot had to do the same as lowes as the quarter progressed and became less favorable. Nonetheless, you do have a deceleration of home depot. But the second thing is the market. Weve got an edgy market. With focus of retail. To a certain extent, investors are looking at, even the Companies Performing well, theyre kind of wondering whats next. So what would you tell people in terms of the stock. Do you still have both of them . I do. Its been the case for a while, i think Home Improvement retail is very much a right spot in an otherwise weakish environment. Clearly, shoppers are choosing to shop the Home Improvement channel versus other retail. I know you mentioned a couple of caveats that you want to know more about margins and why the says are stronger at home depot, if you had to pick one of them it would be. What the market is going to focus on is comp growth. In the United States, 7. 5 7. 3 for the whole company. Thats as close for home depot for 2010, for a sales perspective, lowes did quite well. Theres some question how they got there. You actually came in the studio for home depot. This is a picture of him for lowes. This is demonstrative of the report. That speaks volumes. Let me ask you this, where are you right now, at home, in the office . At jfk, im preparing to fly across the country. Are you wearing a tie . Im actually wearing a tie. So youre wearing a tie today and you were in studio. I dont know he couldnt be here but he is wear a tie for lowes . A tie and a jacket, too. Or is this a tradeoff . Actually, my jacket is off. I