Will talk more about that in a moment. Another tough overnight session for global losses in tokyo and india. The road map begins with the retailers rallying best buy, home depot, urban, and they all beat handily expectations, but slightly different than penny. Missing expectations, but trading up as the investors conclude that it could have been worse and appears to be better for eli musk and tesla. After the retailer posts better than stronger earnings and mobile phones and appliances were the strong components of the quarter while gaming is weak. This stock is at a 2 1 2year high today, jim. It is up 2x for the year and a lot of discussion about huber joe l jolie, and if they have found the answer to amazon. Well, that is very good and the gaming is the going to be good in the Fourth Quarter and we have new iterations, and i like gme. This is a remarkable turn, and sometimes you have to say remarkable. Some people have gotten it right. Joey has gotten it right, and shows you how poorly might have been run beforehand and the companies can turn around like a Football Team. You have a new coach from the niners and bad to good. This is a company like the nfl. He puts in a new coach, and they are suddenly from being a sec d secondtier division to being in the division playoffs. And so you are almost down to the flat comps, and they say they will make a bigger investment in price competitiveness and saying amazon, bring it on. Well, li can go to best buy online as e wewell as amazon. And now you have to pay taxes on best buy. It is room for two. It is not one of the zero sum gains between best buy and amazon and that is what we are discovering. Also, the consumer is addicted to hard goods. Yes. We thought that every dollar that used to go into the jimmy chew sh choo shoes with the toe cleavage and now it is best buy. And there is some rationalization. Well, i love the guys who come out to say, listen this is what we did wrong and we will do better. The best buy release is about selfflajlation and i love it. And not to mention cost cuts. They have cut 390 million and halfway to the target. Yes. There is some room to go on sg a. Yes, i want to congratulate the jpmorgan analysts who said long and strong and the focal points on earnings, and i was doubtful and too critical, because when you see the stocks move, carl, you think that, well, it starred the year at 11 and at 30, what is going on . Well, the sans that the first 15 points, a la Hewlett Packard were not going out of business, but the next, we are going to fix our problems and no longer system issic risks and the Strategic Plan is over and now it is about tactics and the tactics are working, best buy. And what about the next ten or 15 points . Well, the new products in the Fourth Quarter and you will want to shop there. New gaming products. And gaming is a gigantic industry and it is one of the generati generational things, and we saw monster beverage a topten stock. Im a uban guy, and some people will be shopping at best buy, and back to school will be strong for them. Interesting story. And another key story to watch today, depodepot, they di beat the revenue better than forecasts and raising the earnings and estimates for the year and reflecting the improvement in the housing market. And some well, get to the metrics. Customer transactions up almost five. Average ticket up better than four, and the u. S. Comps 11 and the first doubledigit in 14 years. Frank blake, and again, joly, and frank blake, the ceo of home depot is executing better than i have ever seen. And remember, he was always another guy who was saying, l listen the consumer dollar has not come back, but on the call, you will hear that the consumer is spend morgue money in the house, because the dollar in the house is giving you a buck and a quarter. He is a huge believer that the consumer will stop spending until the house is going up and the spending and the home depot hard goods and dont forget this is the Holiday Season the spring, because people who shop at home depot are the gardeners and people who spend time making the house look better out soosi and remarkable quarter, and again, great execution. This is amazing. Raising the fullyear comp view to six which is the biggest since ten in 99 when they had half as many stores. My halt is off to frank blake who is happens to be one of the most humble men in the business and when you tell him he is doing well, he immediately says no, it is the team, the team. And it is credit where credit is due, and it is the team and the powerhouse and firing on all sill l cylinders. Skeptics argue that none of it is reflecting what has happened to the 10year since the beginning of may up. 120 basis points or part of that or what . Well, i am seeing the good commentary since july, and one thing, look, the 10year trumps everything. I dont want to say that we are in a situation to take the eye off of the 10year, because it is just to be all and end all, and if the 10year settles down, then people will go back to what works, and this is a different week from last week. Last week was hang dog and macys doesnt have everything, and walmart, and not a shopping pleasure. And kohls and macys, and it is more nontraditional skewed and if you look at the best one of all, the best one is Urban Outfitters. One more question on home depot. Does it mean that lowes got trounced or is going to benefit . Well, lowes is in a halo mode, and they have not done as well as home depot, but people are going to say they are spending on homes and people want to do the zero sum on lowes, but if people are spending at home depot, lowes is okay, but home depot is the best of the breed. And jim urban reported that the profit jumps 25 thanks to hi higher sales at all threef of the store formats as well as expanding margins due to fewer markdowns and the story is repeating better margins and something we didnt see last week. Yes, and home depot is about a cultural thing. You go there, and urban is a cultural phenomena and three people who had numbers plus30, and extraordinary, and a line by meg hane who is the president of free people, and the brand is more than the product. You know what the strength of the urban is Customer Relations management. They are reaching out, and they have created with free people which is just on fire a remarkable kind of lululemon culture and people are spending at free people above what they are spending at almost every other retailer, because they like the karma of it, if you want to call it karma. Anthropology is the analog to ho home depot, and urban is not that strong, and the company admitted it. Not that strong for them is better than most. And we have to get through two of the three landmines of the space this week, and namely american and abercrombie, right . Well, teenage apparel and we just dont know. It is a hate them, love them, chinatown kind of situation, and urban is one of the guys that congratulations to gentlemen and ladies on the good quarter. When you go through it, they could open up a huge number of stores and i will tell you that growth is what we search for. This is not cost cut, this is Revenue Growth and then margin expansion, and it is a remarkable quarter, and the directive consumer, the conline business is going to increase the dividend and they are going to grow. And they are on all cylinders and like home depot, fantastic. And maybe not on all sill c r cylinders c penny reporting a lower than expected loss, and penny hit by the unusually large markdowns and if failed promotional strategies and mike ullman saying on the Conference Call that we know where the problems are and how the address them and have the plans in place. It is said this morning, jim, they ran the bus over ron johnson and then backed up to run over him again. There are things in the rele release that are egg intive about that, but first as someone who has met big ackman, this is personally, apologize to mike goldman, because i like the fact that the private label is doing well, and the real whole was the thing that johnson wanted, but the most important here is the 1. 5 billion in overall liquidity they plan to end with, and this is no longer on life support. Mike ullman is turning it around and in the end, it is jcpenney and it is not like jcpenney is Urban Outfitters, but it is one of the quarters that says we are not dead yet and at best buy 11 it was you are not dead yet. It was a very good quarter and back to School Season and he is positive. And macys was positive on the back to school, but is it possible, possible that the company could make a comeback, jcpenney and the answer is yes. Interesting. People are worried about the cash of course given that we are entering back to school and holidays and the inventory is relatively high, and is that the concern . They said that the back to school was encouraging especially for the tax free holidays, and something that mike goldman specialized in and the arizona jeans and the nike and the levis and vans and if you check the price it is below everybody else other than kohls with that sonoma brand. And they also argue that customers unlike what johnson wanted to do is to shop by category and not brand. You want to go in and find x and not what so and so makes in x. It is true. And ullman always had the mind that he knew what was in the mind of the shopper. And people will say, jim, ullman failed the last time, but failure is not the right word, because he was not offering as attractive merchandise as target for instance, but this is a quarter where ullman calmed the banks and the credit markets, and we have found that carl bass is selling, because he does not like the stock, but they will make it through the Holiday Season and you have a new story. Is preferred as much of a tell as earlier in the year . Is. Yes, that is a tell. It went from 25 down to 17. But this is one of the quarters where ullman got it, and the idea of a brouhaha by ackman of whether he should go, and i think that ullman is deserves thanks. He deserves a thank you. And i think that he deserves to keep the job. Well, mike ullman didnt need this headache. He was just having a good time, and then suddenly, he comes to save it, why . Because 100,000 employees and he feels bad for them to come in to save it and he is the goat of the game . Look, it is true to run over the bus and it is a Jackie Gleason situation, and it is like, in other words, no honeymoon. And when we come back, what a morning already. We will talk to model s. Making headlines for tesla. And we will tell you why apple needs to learn from tebow when it comes to tell, i have and couple of interesting points of apple. We will talk to the ceo about the companys new top box and h how to keep the company relevant. We will have a lot more squawk on the street from the nyse coming up in a moment. At fidelu the most Free Research reports, customizable charts, powerful screening tools, and guaranteed 1second trades. And at the center of it all is a surprisingly low price just 7. 95. In fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. Im monica santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Fake a look at the global markets. We have seen pain in jakarta, and nikkei down again yesterday. Nobody learns, jim. Right. The markets go dourngts and ywnd a chance when the Interest Rates went down, and you had a chance. It is 1997, guys. If you were in the markets, you get a little focused i almost said other things. You see the pattern recognition here, and anything alarming in the losses . These are, if europe comes back and japan comes back, i dont care about these losses, but both of those things have to happen, and otherwise, i will stay front and center. And more good news for tesla and elon musk, because they say that the model s has received the highest crash testing over any other car tested. They say that in the individual categories conducted by the Highway Safety administration released last week gives them the combined record of 5. 4 stars and only one percent of the cars tested earn 5. 0 stars in each category and that comes out after Consumer Reports gave it a perfect score. It is a safety share, and i was using the earnings per share, and that has nothing to do with the stock prices, but this is a moment that i like netflix, and all that orange with black is way too hard to watch. But i like netflix, and i shop at amazon and i buy amazon and i have been in the tes l. A. Andla buy tesla, and the dashboard is so compelling, i would think that the people are more prone to crashes, because the actual pc in the car is so dynamite and i feel like, hey, one eye on the road, and but apparently that is not the case. Obviously, we have fatalities going up in the last few years because of the texting while driving and a terrible thing that people should be ticketed for that of course, but i think that the tesla will have another leg up, because young people, and Rick Santelli said some interesting things that young people love it. I never judge a cult stock and who am i to say unlike tim greenberg, that tesla belongs to x. When you speak to the young people, they say it is well and good, but what about tesla . And the hedge funds, tesla, greatest of a lifetime. And why . You have some edge . Do you believe that it deserves, i dont know what it is, onethird of the market cap of gm . Well, i remember when merck passed their market cap in 1984, and people freaked out. I do see that people will say it is wildly overdone, and then people who say, i dont care as long as they execute, i will keep on this. And the execution from musk is remarkable. The Conference Calls are like, it is like king, and it is like king henry iv and olivier, and on broadway. It is like, wow prince al and kiss me kate, and see you later, and this is a great broadway play. Musk is into shakespeare, and into the histories. Have you seen what mark vintioff has tweeted . No, he has not texted me. And i agree with e lon musk, tesla is the best car ever, and i want an x. That is from benny this morning. Well, i wont retweet you and what is the crm stuff i have been asking you tollp me with, and that is neither here nor the there. And remember, this is a car that has not hit europe yet. I looked at the mw electric car, but this thing, i have to tell you that is going to be a that is a popular item and i might have to have two of them. Well, speaking of netflix, moving higher in the premarket, a and they have struck a deal with the Weinstein Company and that is what is different about the deal is that it gives netflix window into the content of the pay window which means you can get it sooner. And so the details of the deal continues to change. Well, netflix has the momentum and the way that the younger people watch tv and netflix and original programming we often admit that you at least want to try it. One more thing, why didnt apple buy it at 100 . They could have had social and mobile ugh cloud. And now, apple in a moment. Looking for a safe haven in the market . Cramer will e help you find one in the mad dash and looking at the futures. Maybe some relief here in the open as we look to reverse some of the losses of the last four days. Squawk on the street from the nyse is straight ahead. And the better i am at them, the more i enjoy them. Tdd 18003452550 so im always looking to take them up a notch or two. 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They downgrade panera, and by the whole, and it is a hot stock, but by the last quarter not so strong and they go chipotle, sell to hold, and they are starting to make a comeback and people got negative on theb i eat the burrito bowl, because i dont need the tortilla, because it is about being svelte. Yes. And it is red robin with the better sales drivers and margins. This is a hot stock, and people dont for kcus on the re robin and i come back and say, have you seen wendys, and that bacon pretzel cheeseburger comes with lipitor now that lipitor is generic, but it should. It should, right . It is called the best Product Introduction for wendys in the past ten years. And Product Introduction that moves the stock is almost impossible. Hats off to wendys for getting it right. Mcdonalds would agree with you. I had the wrap last week and very good. Very good mcdonalds, and i like what is happening, but it is not happening fast enough. Look at this thing. Geez, who says that people cant make money in this market. And what about al llergealle . Well, wells fargo say they are trying to figure out what they are goi