Barrel, 47. 53 home depot is just out with Earnings Results are good 2. 25 a share see how the stock reacts 3 cents above revenue. Comparablestore sales, an important metric to watch, up 6. 3 the consensus was for under 5, 4. 9 so thats a significant outperformance home depot raised sales and Earnings Guidance for the fullyear. As you can see, its been a grade p great performer. If we went back any period, two, five, ten years. Very close today well see if it will trade at a new high its last earnings report, it jumped about 11 on the stronger than expected earnings, and has been flat after amazon and sears announced that deal to sell ken mother applian kenmore appliances on amazon. North koreas leader has delayed a decision on firing missiles towards guam. The country state media said kim jongun will wait to see what the United States does next. The leader made his first public appearance in about two weeks inspecting military assets and reviewing plans to fire missil s s near guam. Benchmark capital is blocking the selling of shares it also wants to eliminate three board seats. This after reports that the board was approached by three investment proposals benchmark controls 20 of the voting shares. They published an open letter to uber employees explaining the lawsuit against kalanick in the letter they warn that kalanick appears to have undermined the search for a new ceo adding that it fears hes plotting his return to power at the Ride Hailing Company turning to the wall street agenda, july retail sales and import prices are out at 8 30 a. M. 10 00 a. M. , june business inventories, and the National Association of Home Builders home depot, coach, tjx before the bell after the close, we will hear from urban outfitters. President trump will sign an executive order designed to speed up the federal review of the Environmental Impact of infrastructure projects. The white house says the goal is to pare down the process on whether the project can proceed to one decision. He will take part in a discussion on infrastructure this afternoon hes proposedleveraging 200 billion of spending into 1 trillion are we safe if were in terms of traffic, if we say west of 5th . You have to stay on either side for a good buffer zone. Was he here last night . When did he arrive is he here i dont know. Last night. He was here last night . Where was he having dinner i think he went right to trump tower. All of the blockades were up all the way around trump tower ladies and gentlemen, eamon javers i didnt mean to Start Talking like that. He was here last night they have a huge security perimet perimeter. It was nothing like during the transition, when he was president elect. Its not white house north, its grander this is not the northern white house of bedminster, this is the northern white house of manhattan. Eamon is here because the president is in town, he also is here to talk to us about latebreaking news that took lace la place last night the ceo joining his counterpart of merck leaving the president s council. Welcome, eamon thanks officially for welcoming me here. Fun to be on set with you guys last night the president got in town we saw a lot of protests greeting the president as he got into town. This is not his political hometown the president also firing off a tweet last night, an additional tweet on merck after ken frazier, the ceo, left his Manufacturing Advisory Council to protest the way the president handled the racist violence in charlottesville, virginia over the weekend. The president saying merck pharma is a leader in higher and higher drug prices at the same time taking jobs out of the u. S. Bring jobs back and lower prices so the president taking a hostile stance towards merck after that decision. Two other ceos departing that Council Related to the political situation. The ceo of under armour saying im appreciative of the opportunity to have served but decided to step down from the council. I love our country and our company. And i will continue to focus my efforts on inspiring every person that they can do anything through the power of sport which includes university, diversity and inclusion. And the ceo of intel saying i resigned because i wanted to make progress. Many in washington want to attack those who disagree with them we should honor not attack those who stood for equality and other american values. I hope this will change. I remain willing to zeserve when it does. The ceos of other companies saying they will stay on that council. Some are saying they will stay on some are saying they have to depart you can imagine the level of scrutiny this decision is receiving in a lot of board rooms. We were talking about it earlier on worldwide exchange, the idea on whether this is a personal decision or commercial decision or a combination of both in the instance of kevin plank, his particular company, i made the argument that potentially theres a commercial element to it. If you remember what he said about steph curry and the response from curry earlier. How much is that weighing on it. Is the decision of intel, is that a fundamentally personal decision i dont think you can separate those things. Theyre all intertwined, all the ceos are wrestling with their personal conscious, political views what it means for a corporate leader to represent an enormous company all of that is wrapped up into it when you look at ken fraziers decision, one thing that he passes up is the opportunity he had in july when he was at the white house, they did a big event talking about new pharmaceutical technology. It was a big platform for the company. The president called him one of americas great business geniuses thats the kind of thing that you are get when you are in good stead with this white house. You can borrow the bully pulpit. Now he wont have that so now hes getting angry tweets on twitter its always a commercial decision, to some extent which you point out in your piece. Its a commercial decision to stay on also and to your point, some of these guys, they dont want their company singled out by the president , and theyre afraid of the wrath of the president i made the argument needling you a little that i would be afraid of being called out by you in the high moral ground New York Times and being proselytized for not being morally correct. I would be afraid of what the president said i might be more afraid of being called out by the paper of record for not being morally let me say this whatever the commercial decision is i can tell you that there were lots of tweets and social media in relation to what i was writing about yesterday, which is raising the question on who ceos you were sort of saying they need to leave. While there were lots of people who supported that position, there were others who, you know, wrote in and thought i was the anti christ personified. I saw some of those i retweeted them thank you they got a lot of likes ten of those likes were mine for every person who may look at what kevin plank did and said i will run out and buy an under armour shirt, there are other people who will protest and boycott on the other side. We talked about the situation in the fall, statements that were misconstrued comments not that critical of the president , and there was a boycott. Heres the question thats part of the commercial thought. Is there middle ground in American Life anymore . Companies always occupied the middle ground. The country is so divided right now. That middle ground is slipping away people are being forced to make decisions one way or another maybe the middle ground is the likes of someone like tim cook, condemning what happened over the weekend, but staying on the councilment. Jeff immelt also condemning the violence but saying he will stay on the council. Thats a position, too, but it feels like a vanishing position where companies that wanted to occupy the middle ground and president ial candidates who wanted to campaign for the middle ground, middle ground is smaller. A lot smaller than it used to be i dont know how many you have left. Climate pushing elon musk over the edge and bob iger. The next thing, lets pick these three. Youre there for manufacturing its nice to make a statement, protest, be known, are we finally going to just one by one theyll leave for whatever reason that is specific to their own business or interests . I think yes i think were going into an era in america sfrnlgt that t is that the way it should be . Its not the way it has been in recent decades, but were entering a recent phase where a lot of people will not use the word president before saying trump. Im wondering if it was a different overall if the office of the presidency, if it was a different person, whether it would be as easy to quickly i think the president s personality and tactics play a role in this before it would have been look, the president of the United States asked me to serve and do this. He tonight care right some of our president s have had some interesting qualities and things that were not perhaps, you know, that admirable. People would still serve at the request of the president i talked to people at the white house, on the north lawn driveway, i said what wiare you doing snhere he said the president asked me to come, and im a Good American this president is operating a base First Political strategy. Typically people have campaigned for the presidency and go for that political center, thats where the votes have been. In a more polarized america, the votes are on the wings, thats where the energy is. This president is playing to his base thats polarizing and forces people to make decisions the antibase, a day doesnt go by where i dont see someone saying the president is a fraud or an impostor yesterday he wasnt deserved to be a human you have people cheering for impeachment right now. Yes the legitimacy of the president has never been has such a level if you tried it the last eight years, you can imagine what would happen people did try it over the last eight years, thats what the Birther Movement was about the argument youre making about both ends, no middle most commercial entities are all about the middle what we thought about the middle pepsi, cocacola, mcdonalds, whether youre a democrat whether youre a democrat, altright or progressive the question is progressively, do these companies sit around and say, okay i dont know. There are so many progressives on this end, maybe we dont need to worry about them. Because we think theyre a tiny group. Or the altright commercially is a loud base on twitter or online, but maybe not how do you think that decision will be made i think you will see an era where companies will hire political pollsters, look at the numbers, politics look at where the votes r Companies Look at where the customers and dollars are, and theyll have to make decisions. This country is pulling itself apart right now in a way we have not seen its disorienting for people in the boardrooms they dont like making these decisions. If you look at the way the statements have been written, theyve been scrubbed with a toothbrush hundreds of people have had a hand in these statements the president doesnt scrub anything with anybody. For merck, he doesnt mention President Trump whatsoever in the initial statement. Doesnt mention the president or say why hes resigning. Doesnt say what hes protesting against at all in the statement. Yet his resignation in itself is a protest. Because hes trying to avoid the tweet. Didnt work eamon javers, thanks for being with us in person. You bet the market has got to be down on all this. Its up ggot to be down, what joining us is sam so val and steve zidal. Sam, after yesterday, its almost as if last week never happened thats right. Whats interesting is that it seems to be following in the footsteps of history we actually saw about a 14day peak to trough decline on this north korea missile crisis which is actually twice as long as the average peak to trough in terms of calendar days looking at military and terrorist actions going back to pearl harbor so the market makes the assessment is there going to morph into a u. S. Or global recession, if not, we buy right back in. Youre out there and waiting to buy a dip, youre waiting for the prognosticator s, prediction of a 5 pullback to come true, you dont get that chance. It doesnt stick around long what is the message to investors . You just buy you just buy. At record highs at full evaluations . Its based on the underlying fundamentals here we are at end of the Second Quarter, earnings season, it looks like s p 500 earnings will be up around 20 on a year over year basis that follows a string over the last five, six quarters where earnings have been accelerating thats not just contained to the u. S. Were seeing it around the world. Emerging markets, you had yesterday china and Industrial Production and retail sales up double digits. Hong kong and singapore showing accelerating growth. So the message is the underlying fundamentals are strong. We think that bodes well for corporate profits for the next quarter or two we think equity also k tquities higher for financials, we have not seen the bounce back the recovery of last weeks losses last week financials lost 2. 7 the biggest weekly decline since march. We are up 1 or so plus. What is going on are we concerned that financials have not snapped back and theres something wrong with the picture for this group no, its more sector specific than it is macro specific. I think what it implies is that even though earnings are doing well for the financials, they were the other than energy, it was tech and then financials in terms of the strongest Second Quarter growth, the real problem is that were seeing a ratcheting down of rate increase expectati expectations its usually a steepening of the yield curve that benefits the financials, especially as Interest Rates are rising. It will be less profitable for the financials to make these loans if theyre not making the profits on the loans you know, the low rates is the second leg to this story the first argument being profits are good, theyre accelerating the second being, you know, low rates. People will argue, macro folks will argue that low rates are bad for a lot of reasons but as a stock investor, as you see companies with accelerating growth and low rates, it is like nirvana. It may not be the best for financials, but for tech, materials for energy. You want to buy the beaten down Energy Stocks . Energy prices are down about 1 10 year to date Earnings Growth is terrific. Its shaping up to be a good opportunity. You dont agree the reason i think that earnings are doing so well for energy, theyre at such a low base to begin with we did a study looking at oil prices related to earnings for the energy sector, theres a 93 correlation between oil price direction. So if were finding a lot of swing producers are saying im not able to make money on this, i want to reduce my capex expend expenditures, we will support less and then a down trend andrew, whats the tie . The tie says muhlenberg okay. Step and repeat you are working for muhlenberg now board of trustees of the college. We just had rodmuhlenberg on money manager. I thought you got another new job. Another new job its not my mother who is hiring me thank you coming up, home depot just posting an earnings beat well dig through the report with brian neagle right after the break. Squawk box will be right back. Finally. Hey ron theyre finally taking down that schwab billboard. Oh, not so fast, carl. Oh no. Schwab, again . Index investing for that low . Thats three times less than fidelity. And four times less than vanguard. Whats next, no minimums . No minimums. Schwab has lowered the cost of investing again. Introducing the lowest cost index funds in the industry with no minimums. I bet theyre calling about the schwab news. Schwab. A modern approach to wealth management. Home depot out with quarterly results, beating the top and bottom line and raising guidance for the full year joining us is brian neagle, Senior Analyst covering hard lines and broad lines. Is the samestore sales number and the outperformance, is that telling the story . The bottom line, you can do things with a lot of times revenue, margins but samestore sales, its hard to its hard to have that not be real. Not ab pbe a positive. Thats fair home depot in the United States did a 6. 6 comp. In this retail environment, given what were hearing from other retailers, thats amazing. Just like we were talking in the break, whats incredible with home depot is the quarter in and quarter out they put up these numbers, despite choppiness in the overall business to answer your question, it starts with sales. If you look as we dissect home depots results, they have a clean p l. Sales flows through. So the average ticket rose 3. 6 customer transactions were up 2. 8 what do you think is spurring is it just the seasonally strong period for home depot . What is getting the customers not only in the door but spending more . I think this quarter we probably for the first time in a while benefited from weather well see what they say in the conference call. Its been an elongated spring. Beyond that, this is one of the few areas where the consumer is spending i think that goes back to home prices have been steadily increasing it gives that homeowner and Consumer Confidence in the home. The hoother factor, we talk abo this a lot with ecommerce home depot is much more protected from the threat of ecommerce what do they sell again and again to the same customers . For me, i would have to watch a lot of diy network or something, theres a place where you can learn how to do things go do it i cant imagine, people put in bathrooms. They refurbish a sink. I cant do that. Does it help to watch the tv to do that . Is it possible for me to be a big im looking at andrew, too. Im to the capable. I think you guys are. You just have not done no, were Bed Bath Beyond guys were Bed Bath Beyond guys we pick out duvets together. Yeah. Vaporizers. What is the question to brian on this . My question is if you dont have a contractor what do you do . This is key is that where its going . Mostly people who are con