Mixes. Costco short of expectations, and l brands highway. Bank of america nearlying a 17 billion settlement with justice. 21st century fox Beat Estimates as mur dork says he walked away, and one metric inspiring the ceo to pen a colorful post on facebook. First up, same store sales number trickling today, costco had a 5 rise, shy of expectations. Sharply above estimate of 1. 8. Bath and body works doing well, victorias secret, the most consistent retailer in america . L brands stumbled, and monthtomonth numbers are difficult. You know, Goldman Sachs said its the number one name, got to love it, greatest thic eses ese world. Thats not what you want going into a number. The bar raised needlessly. This is a company i felt was part of the limited family. Its better in another home, but its out there. People say you put costco together with whats happening, and polo, guidance aside, maybe apparel, jim, is trickling up a little bit. This is the call that i saw yesterday, deckers continues to fly, walmart up big yesterday, target stock going down. There was a move into retail. Vf corp. Is the one to watch. I think gasoline coming down is factored in as a positive for everybody from the Consumer Products remember, their big cost is getting the stuff to the store to the retailers issue a new theme developing to take the place of the industrials, which have been horrendous, although theres calls this morning. I was going to say, isi wants to buy caterpillar and others today, right . Believe it or not, a fabulous firm, but hes the ax, upgraded 2013, beginning of the year, walked away. There was a call yesterday for parker. People dont know this unless youre in Johnny Football territory, and this kpeen has had a conversation call that was rankous, and i think that marks a bottom. People who follow the stocks are frustrated with the industrials. They moved over. Everyones worried about russia, europes slow down, and then theres a call from isi, i have to go the other way, everys too negati negative. Do you lean towards industrials, cyclicals, or more defensive consumer names . These stocks are down anywhere from 8 to 15 , they are good companies. If you get any sort of settlement in russia. These are the ones that take off. Start buying and buy today. Well, speaking of settlements, bank of america nearing a settlement with justice, roughly 17 billion, carding to kate kelly. The agreement settles probes into financial crisis, Mortgage Backed securities sold by the bank. Interesting ticktocks today, jim, in the times about the journal, on raycoff, if you had to choose from raycoff and holder, give me holder. Raycoff is a rigorous thinker. Yeah, kate and i went back and forth. 9 billion cash component. The reason why people are sanguine is the Federal Reserve would not boost the dividend if they felt there was a worry to pay justice. I see the next quarters earnings wiped out if they do this. Youre starting to get towards normalized number. Can they earn 1. 50 in 2015 . 2 if you get treasury relief, meaning 3 on the 10year, and its a 2, cheapest stock, not in the bank group, but s p. However, you go through settlements, Interest Rates higher, a lot of moving parts. I have been saying adamant, bank of america, you got to get this past you because every day that you dont do to, justice comes back and comes up with a new thing. Justice has been playing such hardball here. I dont think people realize this fellow, west, has all the cards, plays it constantly. Its not necessarily holder. He has one guy, brilliant guy, but basically put a gun to every single banks head, boom, get that gun away. Everyone blinked. I say, please, take the gun away. Cheapest in the s p. Its not like you recommend a call to buy here. All these things have to happen. Im just trying to justify why the stock is up in the face of the 9 billion remember, they these banks dont tell you how much they have reserved, but the company did 7 billion last quarter, dropped down the income, and add that to a 5 billion reserve number, and my best guest, wipe out the quarter, and then youre clean in q4. Thats what they have to hope for. We joke about banks being okay, exfines, is that the case . Seeing slow improvement in financials . The banks are a function of the employment number. The number seen this morning and function of the 10year, and the 10years wrong for them. I mean, its been just a disaster for Interest Rates. They need rates to go up. Its very hard to get behind these stocks unless you have a view that the 10year goes to two and three quarters. A lot of the smart guys, delivering alpha, it has them. All the smart guys that you talk to, they are wrong on rates so far. Now, i have to say so far to leave the door open. Sure. Rates were supposed to go up. And people looked for, bank of england today, to be a precursor to what the fed may do, right . At least in if they move maybe we move sooner. Call me the red hop, but everyone says, wait a second, what is going on with russia . What are they going to put up next . I mean, it was funny because this morning they announced the beef, the australian beef fan i saw the tweet on this. 5,000 tons, the tones, that they do that, but chipolte had to source australian beef. I dont want to do the derivative trade, but the president said they are talking, behind the scenes, all in merckles court. Merckle has to solve this. Maybe it requires bargaining with the demon that is putin. Nobodimeny menwants to argue, b need it off if you want to see it come back. The headlines from draghi, difficult to define options if conflict escalates. Thats the story. Start talking about where nato is on the map and whether the need for a battle of drk youre hearing te ining terms, like woi was yesterday for these guys. There were 3 million sold yers that went and left the starting gate in june of 1941 to russia. They dont want that again. Amazing the app verse ri is this week too. Yeah, world war i is in their minds. We have treaties, we dont want to go to war. Thats right. 21st century fox bet estimates by 4 cents, 42 cents a share, and revenue beat thanks to Strong Performance from cable and film after the news they withdraw the bid for time warner, and murdoch mentioned is bluntly on the call. The refusement of the board to engage with us, to explore this compelling offer coupled with the reaction in our share price under valued our stock resulted in our cop collusion this transaction was no longer attractive to fox shareholders. As you know, yesterday, we walked away. This is our resolute decision which is why we withdraw the offer. A resolute decision. Chase cared in the words, lets be clear, we are done. I dont know why people said hes not clear and not going to go. These guys are not known for desemibling. That was a Good Conference call, not just murdoch, clear all his life. The we are thrilled at the th theater side. The small budget films like grand budapest hotel, exact opposite of star wars, but they have businesses that did well, and they were getting hurt by the bid, and what murdoch liked to do is make money for the partner, and hes doing that. Its a Good Conference call, well done. Cable Network Domestic ad revenue, up 12, they had xmen, rio ii, fault in our stars. Just fabulous. People misunderstand they make money on tv. They make a lot of money on cable. The viacom number, cable is not good, but it is if you execute. Clearly, they are doing. Really do. And by the way, just a code to that, chase, no plans to pursue any other content company. Like if they do anything, its a broadcast like an affiliate. I mean, again, this is a tour of force. I love Good Conference calls orchestrated well. You get a Live Conference call, most are can, like done a month ago, but this was a live presentation like the original american idol. Just on squawk a moment ago, we hit a pocket in terms of deals, right . A pocket that refreshes, in his words. Do you think thats the case . Doesnt feel refreshing if youre in it. Im still thinking speaking for the ritz. That sprint call, hey, see you later, gang, nice to meet you, and the walgreens, upgrade today, but that was the twin shot, no inversion and guidance too high. Wow. Time warner, remember, 48 hours ago, there was not a person who didnt think they were going to go to 88 to 90 and then not going at all. Bewkes feelings raw there. Buy hand over fist there. They balanced the decision to do it with the subsequent backlash, right . Consumer backlash, and then, of course, the idea their government business, a huge percentage of revenues could be at risk. Big. Aside from litigation that goes on, in his words, in three to ten years. The president last night came on, interrupted mad money, taking it too internally, but he stressed, look, the inversion, like, if you do it, you do badly. I have this vision of picketing at walgreens. You want to buy cvs. Wheres the president in the cross hairs . Trying to be a domestic 29 billion in boots, buying alliance boots, 29 billion in revenues, thats not a mail drop. You can justify it. People said its going to happen, but, boom, walgreen higher. When we come back, the Gm Compensation Fund open for business. Ken feinberg joins us live later on. Why time warners ceo, bewkes, could eat his words with netflix. Futures this morning, steady action, and draghi is on the tape. More squawk on the street live from the post nine at the nyse in a minute. Just take a closer look. It works how you want to work. With a Fidelity Investment professional. Or managing your investments on your own. Helping you find new ways to plan for retirement. And save on taxes where you can. So you can invest in the life that you want today. Tap into the full power of your fidelity greenline. Call or come in today for a free oneonone review. Bewkes. Netflix posting on facebook yesterday, quote, last quarter we passed hbo in revenue, we are making progress. Hbo rock, and we are honored to be in the same league. This is turning out to be boeing, air bus, pepsi, coke. I like that analogy. Reid hastings, when i was a homicide reporter, this guy is good copy. He cannot resist and posts this stuff, but basically, one of the things that came from the disney Conference Call that was interesting is how much iger likes netflix and stands for people saying, listen, i know you think we pay them, and, you know, they should be paying us, whatever, but i think that netflix, when they get many more streaming new stuff, its it could be powerful, carl. I dont know if you go on netflix, but orange is the new black, and others coming back, and what i look at this, and i say, if i could get current movies, more current movies, youd stop going out, man. Yeah. In addition to this, bewkes, an interview given in 2010 asked about the influence of netflix and his words, graphics here. Like the army taking over the world. I dont think so. I think he might want to retract some of that. How many divisions does bewkes have . I think thats way overstated. Obviously, hastings, netflix had a vision. Bewkes is a funny guy. If he picked ukraine, hes up and center. Yes. Netflix, when you think about what is going on in technology, think netflix. Theres these issues about carriage, but whats happening is your handheld. I watch things on my ipad. You watch things you didnt think about. One of the things i like about the espn disney quarter is watching world cup on your hand held. Netflix is a technology play. The stock, by the way, not talked about enough. Its on fire. Netflix and tesla when you drive with google driving you to watch netflix in your tesla, the world will change. It will be your oyster. The time warner quarter was the amount of money that hbo made selling some of their older series to amazon in this case. Its like the friend of your friend is your enemy or the enemy of your friend is your friend. Content Companies Taking over, the 21st century, im dated, and people just monetizing. What does wes talk about . How much i love lucy makes. Different world. Great world. Very exciting. Next, mad dash, count down to the opening bell, and futures looking good. Did you know the last of the last five times the s p posted a gain, four of them have been for less than one point. As we see the volume accelerate on down days too. We look to avoid that at the open. More from squawk on the street from the nyse straight ahead. D . I took the trash out. I know. And thank you so much for that. I think we should get a Medicare Supplement insurance plan. Right now . [ male announcer ] whether youre new to medicare or not, you may know it only covers about 80 of your part b medical expenses. Its up to you to pay the difference. So think about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement insurance plans, they help cover some of what medicare doesnt pay and could really save you in outofpocket medical costs. Call now. With a Medicare Supplement plan, youll be able to stay with your doctor. Oh, you know, i love that guy. Mmhmm. [ male announcer ] these types of plans let you visit any doctor or hospital that accepts medicare patients. And there are no networks. You do your pushups today . Prepare to be amazed. [ male announcer ] dont wait. Call today to request your free decision guide and find the aarp Medicare Supplement plan to go the distance with you. Go long. The cadillac summer collection is here. During the cadillac summers best event, lease this all new 2014 cts for around 459 a month or purchase with 0 apr and make this the summer of style. All right, nine minutes before the bell, time for cramers mad dash ahead of the market open. Interesting reports today, jim. Stratus is my favorite commercial 3d company. They do consumer 3d. I said over and over again, i love the 3d space, not the 3d systems. They have good growth, blew out the numbers, and i believe that if you believe 3d systems is real, as i do, meaning the notion, yes. The three dimensional manufacturing is real, its stratus, not ddd. I think this one is going much higher. Pointing out, recently got distribution in home depot, not a whole lot of stores, but a new opportunity for some guys. This is the most go on youtube, and you see what im talking about. Thats how you follow these thing, and i know manufacturers who use the system. Im trying to get my executive producer to do the show from maker bot. Should have told them first. Im brooklyns own. Why waive . Now, this is a Denver Broncos story. Sorry, a denver story, big game, and white wave is plant based foods, okay . Its earthbound. Everyone like, if you go to your fridge right now, theres earthbound farms, all natural, ogranic. This is the natural play. Price orders involving whole foods, sprouts market, bobby chef, trader joes, think white wave. This is the way that our kids drink milk. Its the way we make salads. This is the old spinoff of dean foods. Earre ri its rem necessaryi. Hanes, is good, not buying it, but greg just delivered, delivered, delivered. There was a short story coming out that perhaps this quarter is going to be weak. I hold that rumblings. This is anything but weak, and quoting the release, experiencing strong growth in the business in the Second Quarter. Every platform good. Those who like soy milk, used to serve it at the inn, and now im serving corona at another joint, but soy and almond are what people drink, and this is white wave, and it is terrific. Horizon too. You mentioned the russian sapgss, retaliation for sanctions. Other plays like that, leg legitimate plays . Its hard because the russians do not import as much. Cant tell you to short brie, but i know an e. U. Story. Yes, its an e. U. Story. It keeps the issue front and center. As long as they talk about keeping australian beef out, theres still a discussion going on. Remember, i believe that merckle is the key, not president obama. Right. 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Youre watching cnbcs squawk on the street live from the Financial Capital of the world, opening bell in two and a half minutes. A lot going on whether its geopolitics, Central Banks, bank of england steady this morning, and, you know, every morning, jim puts out a note of all the calls, all the earn, and looking through it today, jim, blow out quarter, monster quarter. As earnings season draws to a close, s p does 10. 1, even with the buybacks, thats good. You see a short story because they buy quest, and they have a pain and suffering franchise. The blowout is amazing. Priceline, i expect them to beat the quarter. Sea trip, it was amazing. The outliar Something Like a walgreens, and people come back saying buy. Theres many stories overlooked because of russia. I think people dont understand how important russia is in the mind the industrial pull out of isi, what are people afraid of . Afraid of russia. They default to stories like kellogg, yesterday. They are not doing that well, but they wont stop them. They keep buying. Right. We talked, of course, all week long about the withdrawal bids of m a, and 19 of m a withdrawn this year, third highest since 1995. In those days, that would have crushed the market. Now the macro guys run the world and the other