Week. You can see moving up a bit, though, of course, after hitting 2. 44 not that long ago, 2. 40 not that long ago. Still less money if you give your money to spain for ten years or france and not much more if you give it to italy. The turning report the jobs report last friday. Since then we saw treasuries sell off, yields go up. This morning the data not too hot. Lets give a look at Oil Prices Rising concerns about unrest in iraq. Perhaps the idea that the islamists are as much as only 70 miles outside of baghdad, a scary situation developing there but having an impact as you see on crude prices. To our road map here back in the states with the markets, thats where were going to start. Stocks breaking their winning streak. Jobless claims missed and global uncertainty as i mentioned is returning to the headlines. David, amazon streams, a new perk for amazon prime. And new competition for beats, spotify and pandora. Lululemon profit lunges. Lowers forecast for sales and profit. The stock is taking a big hit including one from its founder. All right. Lets get to the markets here. Retail sales for may weaker than expected, up 0. 3. If you strip out autos, sales rose only 0. 1 . Sales for april were revised upwards. Jobless claims rising slightly last week. The data one day after the dow and the s p posted its worst session in three weeks. Now thats not saying too much, given we, of course, had much of the gains for the year in a short amount of time leading up to lets call it yesterday, being up 5 for the s p, but you mentioned sort of these not not great signs at least one way or the other. Everybody is supposed to bounce back after the bad weather dissipated and here we are into the spring time and the numbers are eh. We will talk about retail sales in a moment. People were looking for a gain of 0. 6 , we got 3 despite auto sales were strong. I dont think anybody has a real clear idea where this economy is going. I really dont. I mean if you look at where retail sales have come in, in the face of what had been some more positive news about the economy, some forecasts being taken up, jan from goldman saying above trend growth for the First Time Since the crisis, now youve got your eye on crude oil north of 106 today, were not in the summer driving season yet which is about to kickoff. If youre worried about the economy, if the consumer is already feeling a little bit of trepidation as to where things are going, now theyre going to potentially see gas prices rise where does that leave you. Not as much of an impact it would seem as in years past. We focused on it for good reason. Fuel economy has gone up a lot. Maybe at the margin its not quite as big a hit on the wallet of the consumer. A headline at least. If you see you pick up your paper and you see iraq unrest, gas prices pushing higher, it leaves you with at least a little bit of concern you didnt have as of a week ago. We have over 100 wti and brent crude the International Benchmark trading higher. Watching some of the other signals in terms of trading. Yesterday the volatility index, the vix, had its biggest oneday move since midmay on that selloff. Is it like 11 and change or 12. Still historically low. Low volatility, low volume, tight trading ranges. Whats the next big catalyst for a move . Thats one of the big questions, the complacency you mention. Thats starting to get real pickup in talk among market participates that theres just too much complacency and at some point youre going to see this pullback people have talked about or feared. Right. Just hasnt taken place. You never know where risk is coming from to that point and this week i think many of us would argue, i wasnt really following iraq that closely. Nobody was. And frankly did not understand or realize fully the gains that were being made and the possibility of allout civil war in that region. Now suddenly we are dealing with that, dealing with higher crude prices and to your point, what may or may not be the result of that in terms of our economy. Always the great unknown, right. You guys follow these markets forever. I mean, eric cantor losing was a shock heard around the world from certainly washington to wall street. Nobody expected that. Nobody including our government, i think, at least from what youre reading this morning, had a real idea of how bad the situation and how quickly it was deteriorating in iraq was developing. Well lets see what to make of these risks for the market, for the economy. Lets bring in a panel, mark is the chief investment strategist with Janet Montgomery and Michele Myers senior u. S. Economist with bank of America Merrill lynch global research. You were expecting 0. 9 increase for the month in retail sales. 0. 3 was all we got. I know. It was disappointing. We thought we would see a bigger increase in spending on auto sales, given the very sharp increase in unit auto sales and nominal spending was up, but it was fairly modest. Perhaps that suggests there were price discounting in the month for auto sales and outside of that, the underlying story was still pretty soft. Core control auto sales were flat on the month. This is may. So, you know, in terms of thinking about the reversal from the weather, it should have been happening. It should potentially still be seeing some momentum and appears its just not the case. I think we have to be a bit concerned about what it means for the second half of the year. I was going to say, disappointed, concerned, yes, but as does it change your outlook . 70 of the economy is consumer spending. When you get a soft retail sales number going into the spring when everyone was expecting breakout growth does that change that story . I think you to think twice about it, yes. I mean, were still in the camp that you get a nice payback in the Second Quarter, gdp in q1 was weak, you get that bounce into q2. That looks likely, 3. 5 to 4 growth is definitely possible in q2. The question, though, is what about the second half of the year. Will we continue seeing momentum build. We had been saying that we can get to above 3 growth in the second half of the year. As a lot of these positive factors start to work their way through the economy. But the data were seeing so far is mixed and todays report is on the discouraging side. I want to briefly interrupt if i can to bring you news in terms of changes in the top levels of the executive ranks at twitter. Keep an eye on that stock. There had been discussion of the possibility it was recode that report reported ali rowghani who had been given the task of bringing in more users might be reshuffled, hes been reshuffled out of his responsibilities according to an ak released from the company saying that he is no longer chief operating officer of twitter. He will continue to be a twitter employee and act as a strategic adviser to the ceo. There is no replacement expected for the chief operating officer role and all of his duties will be assumed by other members of twitters Management Team. Just sorry to interrupt. We can get back to kara swisher reported on recode overnight and laid out as she said it was. Want to get back to the markets and economy. Mark, bring you into the conversation. Michele painted a disappointing picture for retail sales in the Second Quarter or second half. What does it mean for the markets . How far are valuations from economic fundamentals right now . Well, we have a view that the valuations in the market are full, not stretched. And so what were looking for is decisive evidence that the economy is going to accelerate to a level thats going to support the kind of Profit Growth that warrants full valuation in the market. We do think it can get there. Todays retail sales report did not invalidate that forecast and as a consequence, we remain generally constructive on stocks. In the meantime given the fact they have full valuations which makes them vulnerable to a setback on less than perfect news this kind of data like todays retail sales number is a reason for investors to give a pause to the purchasing of equity prices which i think may entice investors to step back and seeing sloppy trading yesterday and maybe carry on into today as well. You think well see yields go further down from here. We are seeing pressure this morning buying of treasuries on the softness in the economic reports. Well, certainly as it relates to yields on bonds, we like many were surprised. We started the year we would drift down to 2. 4. Theres legitimate reasons for that Short Covering geopolitical tensions and what not. At the same time theres a global arbitrage taking place as mentioned earlier. Spanish bond yields of 10year equivalent maturities are below that of u. S. Treasury yields. In terms of the savings glut, due to the mass liquidity injected by Central Banks all around the world thats finding its way into u. S. Treasuries. While i ultimately think well see yields grind higher on the back of better Economic News and the consistent tapering of the feds Quantitative Easing Program a cap on that will be applied by the global ash train taking place. We dont look for run away yields, we look for them which would be a healthy byproduct of Economic Growth to move higher gradually over time and restore the three handle at the beginning of this year. All right. Guys, thanks very much. Mark, michele. Back to the twitter story, the coo has resigned, david. The stock has been under siege all year long. Its down more than 40 year to date. Also of note, theyre not going to have a new theyre not going to have a new coo. No. Which is interesting in and of itself. But really, there have been questions for the last many, many months over their lack of user growth, its been one of those stocks that ran up so much and got absolutely hammered and hasnt really recovered. It hasnt recovered really from the lockup. Many of us may have underestimated the lockup would have given you had management saying were not selling and assumed many others wouldnt. There were so many other venture firms that owned smaller pieces that were happy to hit the exit button and that had an enormous impact, of course, taking that stock down dramatically in the earlier part of this year. It has seemed to at least stabilized of late. Not i cant i wish we could offer more insight on whats going on in the executive suite there, why this gentleman is departing although staying with the company in an advisory capacity and why they feel theyre fine without filling his role. Hope to do that, always difficult to do so in the middle of a show. One of the things kara pointed to in her article, core internal reception after the wall street journal article at the end of april, actually did a profile on him and they called him twitters mr. Fix it. Said he was seen inside the company as the coceo among employees to costello. Perhaps that reverberated. But the performance issues, 200 million users in 2012. They wanted to get to 400 million by the end of 2013. They were nowhere near that point. They were still in the 200s, 240 million users. Theres his tweet. Goodbye twitter. Its been amazing ride and ill cherish the memories. There are a lot of other metrics you can measure this company that are growing quite quickly. Weve heard costello talk about the scaffolding as his term, round the business, being how do you remove that. The same way you dont like walking in the shadows of shaffolding in new york city which we often do. How do you remove that to gain access. Thats been a key question for the company grappling with the idea of slowing user growth. Thats the reason many perhaps for not being positive on the shares. From a stock standpoint you had the argument growing louder that you have to make a choice between twitter and facebook if you want to own one of these stocks. Weve heard it from analyst who is came on the program and said such things and people have started voting with facebook over twitter, that you if you want to own these kind of stocks just to make your decision and one clearly seems to be going in the positive direction and clearly has not. And, obviously, the size of the two companies. The market caps alone. Valuations. 170 billion market value for facebook and now were roughly at 220, 21 billion. Facebook getting into other businesses as well, relying on its core advertising, trying to beef up video advertising, get more money out of that, but still needs to grow that user number, 240 million versus a billion. And facebook up 20 year to date by the way and to twitters down 44 . So 44 . People have been voting with their dollars. That is a yeah. That tells the story right there. Were going to be watching twitter shares, you see they did reverse in the early going. Well see how they perform once the market opens about 16 minutes from now. Coming up lululemon shares, they are also taking a lot more of a hit in the premarket and amazon launching a new Music Streaming Service today. Also ahead, republican congressman scott garret of new jersey, hear what he thinks about eric cantor stepping down as House Majority leader after he lost his primary. Another look at futures on this thursday morning. We have more squawk on the street live from post nine at the nyse when we return. But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. Being able to pay as we go to is crucial for a start up. Deas. Having to fork out a lot of money up front was risky. We can launch a feature really quick, and if the feature doesnt work, we havent lost anything, and we can have something up and running in days. And this would not be possible without the cloud. We are now supporting over 25 million users each month. Shares of lululemon down sharply in pre market, despite better than expected firstquarter results. The yoga wear retailers issuing full year guide angst below analyst forecasts. Courtney reagan at hq with more on lulu, down 17 . The downgrades coming in as we speak, read one this morning from stifle and i would assume there may be more. Well hear more both today and tomorrow because we got a sour report from lululemon. Really very little to be bullish about for the yoga wear retailer. So for the fiscal First Quarter lulu did beat expectations by 2 cents on the bottom line with revenue of more than 384 million. Also a slight beat. But overall comparable sales increased 1 with the online sales strength pulling up a negative 4 store comp. The guidance thats really hitting shares hard for the Second Quarter and full year. Below analyst consensus. Its lululemons ceo first full quarter at the helm. And he notes in the earnings release, quote, despite a reduced outlook im confident the work we are doing today will only enhance our premium positioning as we continue to lead as the market innovator but on the Earnings Call wall street looking for something a little more concrete when it comes to what lululemon is doing to actually get there. We havent heard a lot of true action plan from this new ceo yet. The yoga wear retailer announcing a 450 million Share Buyback and the retirement of cfo john currie, though like former ceo christine days retirement, the replacement has yet been found. Currie will stay on to the end of the fiscal year. Despite founder chip wilson voting his 26 stake against Board Members and chairman, both have been reelected by shareholders along with the rest of the board. But, of course, outspoken chip wilson making his feelings heard that perhaps those two Board Members dont fit as well with the core brand at lululemon. Now the Earnings Call currently under way. Well get you the latest as lulu has to answer some pretty tough questions from analysts today. Yeah, they are. Courtney, thanks. Youve got inventory rising, they dont have enough traffic for sales to move it, they are going to have to become more promotional at least the fear on wall street. I was reading through this note on the downgrade from stiefel, worried about margins. A brand people used to want to pay full price because of scarcity value, now suddenly the paradigm seems to have shifted in terms of how they will draw business. The last point you made, firsthand, as someone who bought the 90 yoga pants its true. Their reputation has been damaged. First the sheer pants that they had to recall, then the founders gaffe about women being too large in the pants an then the management changes. The ceo has been there since january, called this year transitional, but i think analysts have been surprised at how tough its going to be lowering guidance into next quarter and what the cat list as courtney mentioned to bring the sales back how do you recapture the fans paying that top dollar for best quality kind of clothing, when theyve gone elsewhere. Its a competitive space. You have gaps brand, ath let ta. Under armour. Nike. So its a very different place then when lululemon started. They note they end the quarter with 752 million in cash. That is up. They are instituting a 450 million buyback. They get an opportunity should they choose to use it today to buy back the stock. Good opportunity. Cheaper than it was yesterday. Cheaper not in sense of the e multiple but lower price. Up next wall street veteran art cashin shares his market words of wisdom as we count down to the opening bell. Give you one more look at futures here. We have nine minutes until the opening bell and a lot more squawk on the street after this. Nobody told us to expect it. Intercourse thats painful due to menopausal changes. The problem isnt likely to go away. On its own. So its time we do something about it. And theres help. Premarin vaginal cream. A prescription that does what no overthecounter product was designed to do. It provides estrogens to help rebuild vaginal tissue and make intercourse more comfortable. Premarin vaginal cream treats vaginal changes due to menopause and moderatetosevere painful intercourse caused by these changes. Dont use premarin vaginal cream if youve had unusual bleeding, breast or uterine cancer, blood clots, liver problems, stroke or heart attack, are allergic to any of its ingredients or think youre pregnant. Side effects may include headache, pelvic pain, breast pain, vaginal bleeding and vaginitis. Est