And a quick look at crude now, wti 47. 64. Ecb president mario draghi just wrapping up a speech in germany. He says all kinds point to a strengthening and broadening recovery in the euro area. You can see 1. 178 euro dollar. Not quite the havent high weve seen lately but getting there. Well hear more from mario draghi on friday when he speaks at jackson hole. Fed chair janet yellen will also speak on friday. Steve liesman will be there with full coverage and interviews walmart is teaming up with google to take on amazon the retailer is getting into the voice shopping market. Google is offering hundreds of thousands of walmart items on its Google Assistant platform starting next month. Court court wi lowes is reporting. Weve been waiting for it for a little while its still early looks like 1. 68 versus estimates of 1. 61 that would be up above where the street was by 6 cents, 7 cents 19 billion in sales, right in line total sales for the fiscal year are seen up 5 up 3. 5 samestore sales are seeing for the year. Operating margin up 80 basis points on face value that looks good. I dont know what estimates are. Fiscal year number, 420 to 430 and im looking at 462 oh. Thats guiding down thats what it looks like yeah. So they earned 1. 68, seven cents ahead for the fiscal Second Quarter left with fiscal third and fourth youre looking for 1. 07 in the Third Quarter and 1. 89 in the fourth so on an adjust the basis, its not 1. 68, its 1. 57. Its a miss its a miss, that would help take away four cents from that 462 for this quarter the third and Fourth Quarter are still indicated below what wall street is looking for now. 420 to 430 versus 462, youre talking about a 30 cent miss well get details. Well talk to an analyst about where the shortfall is the company adding 25 more stores in the fiscal year. Four major mutual funds have now reportedly marked down their uber investments the wall street journal says van guard principle funds and Hartford Funds slashed the price of uber shares by 15 . T. Rowe price brought down its estimate by 12 . This follows a federal probe into the use of technology to evade regulators and claims of sexism at the company. One of the question marks about all of these Public Mutual funds getting involved with private Companies Like uber was going to be this very issue, how do you mark these things . How are investors being treated. If t. Rowe is taking it down 12 , others this is through private equity firms, so it becomes complicate the quickly when you go down 12, dont you think theyre kind of like hoping its only 12 . Isnt that thats the issue. What can it really be in some cases you have been able to find stock lower than 15 . Like what . Probably off by 20 or mo at certain moments. What was the high what was the number on the high. Theres very little liquidity. What was the number when it at the highest round from a valuation perspective about 70 billion. You also have to remember a number of those high valuation came with ratchets different type of convertible pieces to them the capital structure had lots of variations frlts lots lots of components to how long you will hold the share lots of things going on thatdep round you got in theres additional news benchmark capital is not giving up on meg whitman taking over the helm benchmark has had conversations with whitman and now shes the preferred candidate. Benchmark is denying rumors it will reintroduce her name forever consideration. Last month she took her name out of the running for the uber ceo. She tweeted we have a lot of work to do at hpe and im not going anywhere ubers ceo will not be meg whitman. Earlier this week, re code reported that jeff immelt was the frontrunner in ubers ceo race hes a very young man with a lot of great years left. Born a month after i was born. Hence the positive commentary on his age hes a pup basically. Has so many decades of woushgrk ahead of him. One point that jim cramer made is if youre jeff immelt and willing not just willing but seemingly want to take the uber job d y, did you really wao retire from ge at that point in life it might be fun, right, to try uber as a second encore performance . What if you felt like your legacy after being at ge wasnt that great you wanted a shot at reputational redemption. Right maybe you see a lot of lowhanging fruit in a company that has not been run traditionally. Talking about reputation, if you poll investors, the Investment Community and ask them about what they think of jeff immelt, he polls highly despite some score cards if, will of ge stock price, he is well thought of by many. Everybody knows the stock was trading at 50 times earnings, when it was at 60 following jack welch is not something you would wish on anyone theres been Strategic Issues overtime the benefit of those in hindsight look obvious, but at time, investing in oil seemed like a good idea who knew it was going back to 30 and 40. We want to talk about not what happened in washington last night but what happened in phoenix. President trump making some interesting comments at a rally last night in phoenix about nafta and a Government Shutdown. Some of this may weigh on the markets today. Eamon javers joins us from washington, d. C. With more reporter the president spoke in front of a large and adoering crowd in phoenix last year he was dvefensive on the way th media reported charlottesville he said he and everyone in the arena last night stood against bigotry, and he said the media are davm d are damn dishonest he admitted the part that attracted the most criticism, the idea that there were fine people on both sides, or perpetrators of violence on both sides. That sort of moral equivalency suggestion from the president that attracted so much criticism he omitted that entirely last night. He als threatened a Government Shutdown in terms of wall funding. Build that wall the obstructionist democrats would like us not do it. Believe me, if we have to close down the government were building that wall. He also said hes revisiting the issue of naftnafta he said those renegotiations are underway but wasnt hopeful for the outlook. You know one of the worst deals that anybody in history has entered into, we have begun formal renegotiation with mexico and canada on nafta. Personally i dont think we can make a deal. Because we have been so badly taken advantage of they have made such great deals. Both of the countries, but in particular mexico. That i dont think we can make a deal so i think well end up probably terminating nafta at some point. The New York Times out with new reporting last night on the rift between Mitch Mcconnell, the Senate Republican leader and the president of the United States heres what the times reported yesterday. They said that mcconnell says privately he is uncertain that trump will be able to salvage his presidency they also report on an august 9th phone call that they say devolved into a profane shouting match between the two men and that trump was angry about healthcare and mcconnell in trumps view not protecting him from the russia investigation wide reaction tot president s comments last night on cnn fo James Clapper says he questions the president s fitness for office and is concerned about the president s access to Nuclear Codes given his peaks and bursts of anger that weve seen on the campaign trail and in private a lot going on here. Well see how the president does sewed. Hell be in reno, coming back to washington tonight thanks. All right. Markets driven by washington yesterday. Big rally, b on the consensus of tax reform we are joined by jason traf trad and chris retz eshgretzler. The president last night talking about a potential Government Shutdown and the talk of tax reform i think youre trying to separate signal from noise in my opinion, the signals of the president s economic agenda for the most part are starting to happen. The noise theres no question this is a high wire act with this guy every Day Financial deregulation is happening. Energy deregulation is happening. September will be tough as far as debt ceiling is concerned ill admit that. I think tax reform is very much, believe it or not, we felt strongly all along that tax reform or at least tax cuts are very much on the table i think, you know, our own intelligence, our own sources have told us that for months, theres a lot of work behind the scenes on tax relief do you reduce risk in the face of a potential Government Shutdown for a longterm investor i wouldnt i would were kind of saying this is the spinach part of the meal we have to kind of swallow hard and just deal with it. You dont like spinach. I dont like spinach. Then we would buy it all right chris . No. I agree. If youre a trader, probably pear ba pare back the trading round. Volumes have been low. But as a longterm investor, this is the time you get out talk to companies, visit with them do your due diligence. Not get out of the market, get out and visit companies. Get out and talk to the job creators in the economy and see what theyre doing what were hearing is theyre investing theyre moving ahead with longterm plans. We see a lot of opportunity in small caps they underperformed this year. Large caps have seen inflows in active et fshgs. Either one of you think ekties are rie equities being rich at this point. Theyre not rich when you look at them in the context of Interest Rates you are capitalizing future cash flows by current Interest Rates. You still have negative real Interest Rates on the short end. Its hard to get really exercised about valuation. I dont think theyre stretched, but we have to watch the global Central Banks and how theyll react and what volatility will do we think thats been supporting multiples out there. So we could have more reaction as we hear more rhetoric and discussion about the policies that got us where we are f. A. N. G i dont think President Trump said anything about amazon last night. To what degree i see youre worried they could be regulated. Yeah. We put out a piece late june on this its interesting to me that in the last administration energy and financials were largely seen as the bad guys. And tech was largely left alone, seen as virtuous in this administration those roles are reversed energy and financials are seen as the solution. And theres questions about privacy, market power. So dont buy them i wouldnt buy them at these valuations f. A. N. G. . More a small cap i investor, so im looking for the technology between guys selling storage is continuing to be needed they continued to generate more and more product out there photos, videos thats driving a lot of the undercurrent for technology, which we think there is a great upcycle intel launched new chips this fall a big upcycle is coming. All right good to see you. Coming up, lowes, well dig through the numbers after the break. A programming note, one week from total, Warren Buffett will join becky quick live in new york at 11 00 a. M. On squawk alley. Set your dvr can you set it now that far in advance i bet you can. If you set it for wednesday at 11 00, it would be todays wednesday at 11 00, which would not be a mistake squawk box will be right back. These days families want to be connected 24 7. Thats why at comcast were continuing to make our services more reliable than ever. Like technology that can update itself. An advanced fibernetwork infrustructure. New, more Reliable Equipment for your home. And a new culture built around customer service. It all adds up to our most Reliable Network ever. One that keeps you connected to what matters most. Stocks to watch, salesforce. Com reporting Second Quarter revenue that beat forecasts, its maintaining its outlook in cash flow which disappointed some investors. Last night marc benioff was bullish on the prospects in the cloud. We just pounded oracle in the quarter. You can see it in the market share numbers. You can see it in that chart that youve gone to many times that sales force is considerably larger than oracle, and the spread continues to go and you can see it in the top line growth numbers. Look at that growth. We are forecasting now 24 growth for the year. We raised our revenue guidance by 100 million for the Second Quarter in a row thats incredible. And ive got dreams of 25 still shares of salesforce in the premarket are lower by more than 1 , a decline of 1. 21 per share. Godaddy saying blake irving will retire at end of the year he oversaw the ipo in 2015 he will be replaced by coo blake wagner blue apron has imposed a partial hiring freeze for its salaried employees the Meal Kit Delivery company is still hiring for corporate roles and hourly jobs at its Fulfillment Center but blue apron is cutting several members of the recruiting team. That stock off 0. 75 lowes out with quarterly results. The Home Improvement retail had a gain in it that gave it a beat you fact their gain out, they missed 4 cent i dont know what that means. We got some new writers, i think. Not a 4 cent loss. 4 cents below expectations joining us is brian neagle Senior Research analyst from oppenheimer. Let me ask you, my friend, they want me to thank i will thank myself when we get out of here, brian. Any way, samestore sales look good what is the what is the outlook, its below expectations, why . Good morning. Its mixed so what we saw in the quarter, like you said, samestore sales are good 4. 5. The street was looking for 4. 3 4. 5 topped that another note in the press release, they talked about in the month of july samestore sales 7. 9 so they ended the quarter strong but pro forma earnings missed. If we look at guidance for 2017, theyre taking earnings expe expectations down about a dime or so. Its hard to say what it is now. Well have to wait for the conference call. I looked at results. Maybe Gross Margins were weaker here im guessing a bit here. Maybe they had to pay for some of that sales again. So youre calling the adjusted net pro forma i thought that was the 1. 68. Are you mixing up your terms pro forma the gaap number is 1. 68 if you factor out the investment gains or whatever it was, then youre below expectations. Is 1. 57 pro forma or 1. 68 pro forma. I would say 1. 57. Street estimate of 1. 62. Its below. But i think the actual net number that they reported is 1. 68, if you adjusted it, its 1. 57 what was the short fall . You think its margins this quarter and you have no dwidea y theyre guiding lower . Theres not much in the press release. It does say that theyre going to put pressure on operating margin it sounds like theyre going to increase the number of employee hours. They want to amplify the consumer messaging and incremental customer facing hours in our stores. I assume that means more employees facing off with consumers . And so it sounds like thats where a big part of the pressure for operating margins is coming from. She will give you for giving the analysts for a reason for this happening so that means theyre bolstering or attempting to bolster service in the stores. Thats probably a good thing but its going to cost them something in the nearterm why do they need to do that at this point . Does home depot do it better somebody walks in the door, okay, you have the customer there, having an employee actually help them find stuff, i can imagine how that drives sales more why havent they been doing that before well, look. Let me answer it this way. What we talked about on the show is that this is one of the categories of retail where Service Really matters people come to the store and they need the employees to help them its also one of the key differentiators as we think about the retail shift of sales online Instore Service is one reason why this service defended itself against online competition so well lowes is a wellrun company but not as wellrun as home depot. We see evidence of this a lot, almost quarter in and quarter out. To a certain extent the comments lows are making is we need to get better with service to compete with home depot. Service costs money theyre going up against Companies Like amazon that dont have to worry about the level of profitability that they do it seems the Business Model that would help them gets more and more expensive against a customer that does nothing but drive costs lower. It sounds incredibly difficult i think theres some truth to that i would say more here in the case of lows is that they need to work harder to get the store level labor correct. If you look at home depot, to make this point, we go back to home depots results a week ago, youre not seeing that home depot with a high Service Model has been good with leveraging expenses as sales have improved. This is more of a lowes issue than something bad in the environment. Now its down 5 almost well, down 4 and change home depot looked good that day it reported. Then down that day what did people finally decide was wrong with home depot . Do you remember . I think that was a tough day for retail stocks. You had home depots results which were great then a couple other reports came out, like advanced auto parts, Dicks Sporting Goods were weak. So i think you had a weak retail tape and home depot was taken down with that. Brian, thank you. Thank you coming up, its back to School Season for kids all over the country. Some children returning to the most technologically advanced classrooms in history. Mcgrawhill will tell us about the new trends in teaching. As we head to break, a look at the s p 500 winners and losers your brain is an amazing thing. But as you