Reporting a 57 drop in Second Quarter profit as production slide. Change of feelings in j. C. P. Bouncing back after falling yesterday. The retailer refuting published reports about cuts in its financing. And whole foods beats on earnings but the sales growth misses expectation. Well talk to the coceo walter robb later this hour. First up, coming off an upbeat july, futures show a strong august adding to the positive sentiment, claims lowest level since early 2008. Not participating, though, is exxon. The dow component with an earnings miss. Profits falling 57 in the Second Quarter. The Conference Calls not until 11 00, jim, but there were no big onetime items. A little confusing . Exxons become a very plodding company. I always like to rate the Oil Companies by the Production Growth because in the end the companies can be growth stocks. Eog, how can you compare the two . Were a Global Company but you get lots of cash generation from exxon. You got 4 billion in buybacks. They spend fortunes to find oil and theyre just not finding enough oil. Theyve spent more money on finding oil, how would the stock do . I dont know. The buyback really does prop it up. A big story in the journal about how the production boom in this country has eluded exxon and chevron and to what degree that will depend. Hard to turn them around on a dime. Spending 38 billion at exxon and even more at chevron to find oil. Right. These are companies if you look chevron has a much better record of finding. Chevron has great gulf properties. Bp has a pretty good record of finding, obviously the Safety Record was of concern and therefore the gulf claims but exxon is the one if you look at the chart it will shock you. It has not been doing well for a long time and yet it doesnt really come down, but if you look at some of the great independents, you just see unbelievable numbers. If you go look at Continental Resources which is the bachen, if you look at eog, if you look at companies that are just related to u. S. Oil, those are the best. Yeah. Those are the ones that perform. One oak, is one oak theyre doing restructuring. Best performer in july. They are creating value, they are splitting off and doing mlps. Royal dutch, i dont want to complain too much about exxon, you see that stock going down hideously. Not as good an operator as exxon. You do have a pecking order here which i would put chevron at the top even though the article did indicate chevron not as good. Pg final cents beats by couple pennies. 2014 earnings 5 to 7 estimates about 7. I guess you could expect him to come in and try to calm everyone down . Mr. Mcdonald who is no longer with the company you know, no longer the ceo, set this company up to do what was right. I felt that he did get the bums rush in the end because its not like a. J. , mr. Laughly, is a fabulous executive but its not like he turned it around in a couple months. These things were all in place. 4 organic growth i would like to see. Kimberlyclark blinked in diapers in europe and Procter Gamble trying to do more of an emerging market strategy, but line by line there are a lot of divisions not performing up to par but you do have a terrific Great American, dividendboosting company. You cant expect a ceo even one who was the ceo of the company for quite some time to come back in and effect change in a rapidorder fashion in a company as large as pg. The time line is not going to be that long. Hes not in there for ten years clearly. There is going to be a successor. And who disproves that . Who is the greatest turnaround executive in this country right now . Alex gorski, he didnt turn around Johnson Johnson by making aggressive moves. But i will say that Procter Gamble is now up from 6364 where mcdonald said, do you know what, we got to start taking costs out. These companies we told clorox took a lot of costs. I know clorox isnt going up the way proctor is, but you got to harry how much procter was in the pipe. When people get sacked you want to see what they put in place. I feel bad for mcdonald. Hes an army ranger and strangle me with his hand and kill me like that. Ranger choke hold . The trachea just collapses. Usually you just faint. They dont kill you. Put you out. The cfo was on squawk earlier today and talked about having laffley back in the country. It felt good, it feels good. Im very optimistic about the future as we look forward. Obviously a. G. Has worked with this team for many years. Its great to work with this him again and were committed to serve consumers and create value for consumers and shareholders. Well, you know, the problem here is you are still paying 18 times earnings for a 4 growth. Health care looked good. Volume up 5 . And people point out its a ten handle its ten at unilever. Theyre doing better but still lagging their peers. Unilever was odd, because the guy when he did his hes a terrific executive. He did his Conference Call and said emerging markets are slowing. But Procter Gamble was so lackluster in emerging markets they had a lot of room to grow. In the end the companies are just where the money is being made day after day in this market. 3m, day after day, Johnson Johnson, united technology. Big cap, international companies. By the way, if we change the Corporate Tax code, i can see the Companies Earnings exploding. Really could. Lets see if that actually happens. 4x an issue here as well as the other countries. It takes off 2 on the health care segment. Foreign exchange on the grooming segment where its been a real weakness continually you get a minus 3 foreign exchange, very good point. Speaking of repatiation and job growth, what did you make of the claim numbers . Fabulous. People are saying auto shutdowns havent been as bad, maybe its an outlier set of data or maybe tomorrow will be really good. The sequester the sequester, industry by industry, didnt hurt the defense industry. It didnt hurt the airline industry. A lot of Airlines Complained about travel. Hertz down a little bit. But i do think the claims are good, they had not added up to what happens tomorrow so far, but this was the kind of number where the fed message is on hold but the tape can go higher. Look, the two most important numbers this morning, well, no, the one most important number was 50. 3. The chinese pmi was 50. 3 and the european pmi 50. 3 and the european turned around. The hsbc measurement was different. I believe the good numbers and not the bad. How about that . Thats perfect. Thats per feskt. Thats the way the market is operating. The claims today, the jobs number tomorrow, one day left to nail the number and win a pretty good prize this month, id say. Tweet us the numbers, squawk, and the prize is a duffle bag, you name it, simon, squawk on the street gang, one minute until the friday release at 8 30 to submit your predictions. Best of lusk. Its a big number. Definitely. Speaking of big numbers, by the way, i know we got to get to this yelp huge. The fourth. It will open at 47 and change. It will go higher, 50, 53, maybe 55. Facebook, schlumberger, starbucks and now yelp. Yelp. Im glad we got yelp. Is would worried there. Dont underrate yelp. Why . Because they have a model that works better on mobile than desktops. I was going over that quarter i got to tell you, its an outstanding number, it was a tw twoperson company ten years ago. They have more cities. If you want people at home to know what this is, this is the portable yellow pages. Remember, in the way it used to be, can you imagine carrying yellow pages around, look at this, this is my plumber. They do it on the web. It is social. It is mobile. It is cloud. Its the holy grail, the trinity of cloud, got it. Social mobile cloud. Ncaa was the nasdaq 100s biggest gainer for the month. Trip is one of the best s peres for july. Starbucks is coming up. Yelp up six. I mean, please, its an outstanding quarter and its a 2. 6 billion company and it wont it wont be it will never be profitable, because apple will buy them for 75 because theyre a good partner. Okay. Then we dont need to talk about it again, do you . Youve laid it all out for me. Mr. Cook, here it is, you have social and mobile, and you already have cloud and it will be a direct competitor against facebook and google and its a blocking action, apple is already a good partner. I just want a small thing, ill take 100 gs, i put this deal together right here. Perfect. I say it every single day it was a great quarter. Shares of jcp rebounding after falling 10 late yesterday. Retailer refuting these published reports that commercial lender cit abruptly stopped funding some future shipments to pen ney. They expect to close the quarter with about 1. 5 billion in cash on its Balance Sheet. Meanwhile citi does take it to a sell regardless saying they see no progress. Their price target 211. They say a turnaround 2014 or after. I think you can have delayed turnaround without thinking that cit, which is often that story didnt make sense. Did it make sense to you that it it was just strange that it didnt make sense. The retailer wouldnt seem in the state where you would start to hear stories like that also in theres something going on were not aware of, maybe citis right. Maybe its going terrible. You have to put the china orders in september, thats when macys put their orders in. If you want a stock to go down, you spread it. Some people would say its a story from my old print days thats too good to check out, but had they, i think they would have found out it was wrong. These kind of cases as a retailer you have to come out and refute it immediately if, in fact, its not true as was the case, but a lot of people ganging up on old bill ackman. You got to talk about that when you look at herbal life yesterday, jcp yesterday. Every storys an ackman story. Whether or not theyre trying to sort of pressure him. Ill come ill see you jcpenney and raise you Procter Gamble. Im done with the unremitting that ackman doesnt know what hes doing given that Procter Gamble is in very good shape. Praise where praise is due, my friend. Well talk about ackman and p g later in the hour. In the meantime what is Warren Buffetts favorite tv show . Find out next. Weve got the pictures to prove it. Also ahead a parade of top executives including the coceo of whole foods and ceos of Tanger Outlet stores, cigna, marriott and the executive chairman of the cme. Better than expected. Better than expected. Some people say not better than expe expected, but a good lineup. Futures are up triple digits as we kick off the month of august. A lot more squawk on the street. In todays markets, a lot can happen in a second. With fidelitys guaranteed onesecond trade execution, we route your order to up to 75 Market Centers to look for the best possible price maybe even better than you expected. Its all part of our goal to execute your trade in one second. Im derrick chan of fidelity investments. Our onesecond trade execution is one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. And guess who turned up at the new York Premiere party for breaking bads final season last night . Warren buffett, a selfdescribed super fan of the show. He posed for pictures with the cast before viewing the first of the final episodes. There he is with twotime emmy winner aaron paul, of course, buffett thinks the story is compelling and acting is superb, our understanding hes been on set before taping stuff, if not for the series, but the stuff theyve shown internally in omaha. The creator of it did talk about how netflix made it so that this company that his production successful because you got to watch all season before the august 11th opening and he credited netflix as one of the reasons its been so successful. When i have Bryan Cranston on, he did say that he patterned his crystal meth operation off of apple. He always said, listen, it was never distribution, if you had the finest product, they would come, hes a product driven guy. He talked about how the whole thing is an allegory for the ideaological nu ologicaological jobseian character. Kranston is basically a company that said we build it, we build the best, cranston did have the 99 pure crystal meth and the 94 cartel meth could not rival it, right . Right. Apparently that is not the case. We are not talking about the pantene numbers, the pantene numbers are just okay. His crystal meth, highest quality there. Lets talk more about whole foods down in the premarket, the natural and organic Supermarket Chain beating the street. Fiscal Third Quarter profits 38 cents but sales lowerthanexpected and well have a conversation with james robb later this hour. They say the first few weeks of the Current Quarter 58. Is there a reason to be worried . Buffalo wild wings, sally smith on mad money the same situation, stock traded down four in afterhours trading and ended up being up five, there was a ninepoint swing. Ive gone over the whole foods quarter which at one point was down 10 with a fine tooth comb. Its a consistent quarter. Two quarters ago they did not deliver what they wanted this quarter they did. Theres a lot of what i regarded as turbulence on the Conference Call, guys trying to poke holes at whole foods. I say good luck to them, they got it wrong, they delivered. Robb on the call said bring it on on when he was asked about sprouts. Pricing at 18. A competition from fairway. Cantor earlier in the week taking it to the neutral saying its no time to be greedy. As mr. Robb said theres always been a lot of competition, bringet on. He feels really confident right now. Two quarters ago he didnt feel confident. They were critical of themselves and disappointed. One of the things i want to talk to him about, the detroit store, everyone is running from detroit, whole foods runs to detroit. What a Great American company. You do forget, i think, seven, what is it, we say 75, some of these stores are more than a decade old, jim. The new stores are doing exactly what they want and thats still remarkable growth. Chicago po chipotle and starbucks, a pantheon of people behind the scenes and they all talk to each other and whole foods needs to do a credible Infinity Program not unlike what starbucks has, theyll do it. But this quarter there was a guy that said, listen, i was at your really kind of funny. A new guy, identify was at your des moines store and that was not a good store. They come right back, have you been to our, mentioned the oxnard store. There was such an timothy, its not like they are idiots. Theyre the best operators there is and the people were, like, you know, slamming them, will you give me a break give me a break okay, i will. Im happy to give you a break when you want one. Thank you. I felt there was a lack of respect on this call, frankly, respect of what this company has accomplished and do you know what, some of these analysts, let them get behind the deli counter, see how they do. Slicing ham. Right . Yes. The fresh ham. Well talk to robb this hour and well thank you to the ceo of sprout at 11 00 a. M. After it opens. Sprout probably going to win as fairway did win, but do you know what, in the end, the best man wins and its going to be whole foods. Its just a remarkable company. You know, and look, i mean, look what they did in boston. They put a lot of stores in boston. You think there is cannibalization, we havent seen it. Mr. Mackey and mr. Robb, you deserve better than what the people gave you on the Conference Call. On that note, jims mad dash is up after a break. [ male announcer ] here at optionsxpress, our clients really seem to appreciate our powerful, easytouse platform. No, thank you. We know youre always looking for the best fill price. And walk limit automatically tries to find it for you. Just set your start and end price. And let it do its thing. Wow, more fan mail. Hey ray, my uncle wanted to say thanks for idea hub. O well tell him i said youre welcome. 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July auto sales ford reporting an increase of 11 last month a smedge below the estimate which was for an increase of 11. 8 . The big driver last month, it continues to be trucks. Fseries pickup sales up 23 in the month of july. We are going to get gm numbers in about a half hour. All of the automakers, david, are going to be reporting today and look for a lot of numbers being the best july since 2006. David faber, over to you. Wow, since 2006, well see you a bit later in the show and get more of the numbers. Mad dash time before the open, of course, lets talk cbs. One of the things that happened this quarter whether it be comcast who we work for with despicable me or cbs, were seeing programming having an impact, okay . And they did this series under the dome. Im reading the book. Its A Steven King and its done by simon and schuster, frightening book, really, what you are seeing is hits move the needle. You wouldnt think that but its pretty amazing. Its, of course, advertising drives cbs as opposed to so many of the Cable Networks where i