Low, but biggest since 1999. Amazing what booms are doing. Modest jump in europe. Road map begins with macys missing by 6 cents, and the ceo is optimistic about the futures saying customers are not. The full year profits lower than last year, well tell you why. King digital shares down in the premarket and earnings match spoiled by some lower revenue and guidance. And amazon quietly taking on paypal and square with the credit card reader for instore purchases. All right. Signs consumers are tightening their belts. Sales come in below expectationexpectation, and macys has orders of 80 cents a share, a miss, and retearer reduced full year comp Sales Guidance because growth in q2 failed to make up for the short fall in q2. They see comps 2 to 3 versus 4 for this quarter, jim, and any customers still not comfortable about spending more in an uncertain economic environment. Before we are negative on macys, the Conference Call has been pied piper like. The ceo called people back. I want to talk about 5. 5 billion, the amount of sales crushed by jcpenney when the block head was running the company i shouldnt have said that, mr. Block head to be more serious ron johnson. Yes, used to play for the giants. Ron johnson, willing to remember. The other guy he was the ground gaining leader for the giants. He was. Run the apple store, and it did not work out at jcpenney back to your point. This would have been, like, the worst takedown that happened, spiked unemployment if he kept his job. Mike comes back, 5. 5 billion in sales up for grabs, get some of that . Doesnt mean he discounted to get it. Im seeing the store filled again, some of that comes out of macys high. The comp sales stock dropped in the top range. Right. Although, its a hundred basis points off the full year fiscal year guidance, 1. 5 2 , had been higher than that. A guy back from the dead can take sales. Theres numbers out of amazon. It looks like, david, despite the fact everyone is mad at him because of the book thing, people are shopping. They shopped at amazon in record numbers on amazons documentary, that ran 17 times, must have spurred success. Would explain the audience numbers. Now, they are shopping, but what are they paying when they shop . Paying less. After ralph lauren, after kors, margins down 50 points in macys. More competitive, and, by the way, the retail sales number nothing to write home about. Autos are competitive. This is amazing with the con finds of gasoline going down in price, chicken going down in price, thank you, putin, for sending prices down in our country with ban of our chickens. Beefs come down, pork is down. Record soybean and corn crops, the feed for so many animals. Inflation was noisy at the top. Stealing that from janet, dont buy pharmaceuticals to yellen, but this is all the piece. The piece is consumer is doing better, but is not being a very smart buyer. All right. What does it mean to carls point for the manufacturers . In other words, im macys, i cut inventories because thats key, right . I cant give away what i dont have, which is a good thing, because i have less of it, i dont have to take markdowns, but ordering less than manufacturing as kate spade. Not going to advance any doors, and kors was the hottest seller at macys at christmas time. Iff did not have perfect numbers either. Coming up with a mosaic that says the consumer is looking for bargains, this is an Amazon Effect because were all shopping an amazon, paying less, look out petsmart, causing pressure, and it depends whats in the trucks. Do we know whats in the trucks from russia to ukraine . The white trucks . Aide . Humanitarian aid. And not we think its humanitarian and not some sort of, like, unique so be it machine guns, right . We dont want that. We want maximum aid. Correct. You did warn us going into macys, analysts hot on it, would have to have a blow out. How many times . How long can they be . Whats that mean later in the week . Preserve price point to a degree, but i think that when you have all these analysts telling you macys will be great, the bar was raised over and over again. Where did they get the information . I dont know. They were wrong. Thats causing they were. Eps guidance, its the same. True. They buy back stock so theres other ways when it comes to the profit loss statements to pull various levers that do not include selling stuff. No. No. Look, this is i still think and to your point, this listen to the call. See what happens. Weve seen were on television. We saw macys rise lazeruslike. The release said that kate spade is game, set, match. No ones buying bags other than kate spade. Listen to the kompbsz call, think about the bags i bougtd at canal street for 19 bucks, not unlike this one i brought on canal street for 12 bucks. Nice. Did you know they have an outlet . The guy told me that too. For all the clearance inventory they have to move. Got to love it. Moving on, fiscal earnings, 2 2. 22 and company sees full year profit below 2013 levels and expect Equipment Sales down 8 for the current quarter. This year, guys, usda said farm income would be the lowest since 2010. Farmers just dont have the money to spent on new machines. Theres really a farm just wholesale collapse on the prices on the big grain complex, good news for the consumer. Deere is a disappointor. Adco said its a Terrible Market for equipment. The price of land is down, which usually puts a floor under deere. I dont they will implode, but look deere is still a function of the grain complex, and that is no longer boosted by ethanol apparently. We have way too much gasoline in the country, way too much. Thats whats happening, just this huge continuous feedback loop from running the country with oil, and theres just a lot of good news at the consumer level, but not translating to what we think is higher prices for the companies where consumers spend. Not buying the argument that krooud below 9 8, 97. 45 is statement on behavior and demand . I see the baltic freight up again. That could be, thats chinese could be because indonesia is shipping or world trade is coming back. Theres a complex, endbridge, a huge pipe. Canadians gave up on keystone, send it by train down to the gulf, going through canada, nine refineries in the ontario area and coming down. Why this . We are disinterimmediating from brent. Brent will be a nonglobal market in the same way that natural gas is nonglobal although it can be shipped. What i say is that were going you look at the price of oil, set in the United States, not set in britain. All right. Will will be in the next 18 months to two years. Thats a big deal. When you talk oil and gas, i listen. I mean, i always listen rbn may be the most informed guy on oil in the world. Every ceo tells you that. Its happening quickly because keystone, gave up on keystone, the canadians. Can you blame them . Listen to hamlet to be or not to be thing in the white house . Its not going to happen. Made easy for them. Willing to spend 60 billion, take it, well build your jobs, but no, we want heavy crude to go to china where four days later we get the pollution, just a delay. They send the delay, the delay when we have someone were interviewing overseas, the delay. King digital taking a hit in the Second Quarter market. Earnings in line, revenue a miss. Citing weakness in candy crush saga, stocks down more than 35 from the march ipos. And, in fact, of all the large ipos this year, sing the worst performer. From day one if i recall. It was the price in the last day of march, beginning of the end, the biggest junk through the pipeline. By the way, there were a lot of analysts there, talk about macys who said, listen, sentiment is too negative. Buy king. No. The sentiment was not negative enough. This video game business is very, very hard. Its like teen apparel. We got five to six downgrades today. Yeah. Pacific crest cut monday. Good call. Give them credit. Candy crush losing steam in the itunes stores. . Looks like the stock was cheap because of big earnings. A big lockup operation in september. Almost all shares impacted, and the special dividend of 47 cents. We dont want no special dividends, but earnings. King was terrible. Watch the deal, by the way, that broke business. It did yesterday. Did day one, but it managed to, i think, close at if not above syndicate. The spinoff of the credit card business of ge. Ge owns the majority, much of it, but this is follow of it. It was a huge deal, biggest deal of the year, biggest u. S. Ipo of the year. I point it out because big week for ipo. The wake of them always bad. Biggest of the big in a month. Ali babba. We have to be worried, theres a story. Do we . Talking about the valuation, theres a lot of squawk swishing around too, right . Theres going to be a lot of stock. Yeah. You know how much they sell primarily, and then, obviously, yahoo cut back. Do you see shares of soft bank between sprint and alibaba . Shrinking dramatically. No shortage of things to deal with. See the japanese economy . Yeah. Great to tack the sales tax, brilliant move. The gdp number better than expected. Sadly, down 68 was better than estimates. Thats sad. Japan made the mistake raising the tax, and yet they are sticking by the game. Theres a lot of guys in Big Government who are doing the wrong thing. You just seems like for their countries, you know, we blame Central Banks for stock prices. Lets not do that. Lets look at profits. Its a moment where the macro is not making money here, like follow the macro, youre not making a lot of money. The ice bucket challenge bringing awareness to als catching on around the country, and the ceo from twitter posted a tweet challenging me to get in the mix. He gets his way later today. Stay tuned to watch that as we try to raise awareness for als. A look at the premarket, the dow only had a 1 move in the last three months two times. Is that true . Unbelievable. What a summers its been. A lot more from squawk in just a minute. Amazon unveiling a 10 credit card reader and mobile app for brick businesses, called local register, allowing merchants to accept payment from mobile devices. Amazon looks to compete with square and paypal and will, get this, what else . Charge lower fees. Of course, thats the amazon model. They try a lot of things out, and they do typically come in and not just under cut, but then continue to push prices down, ala, aws, web services, extraordinary successful cloud ourings for businesses, Small Businesses, and bigger businesses too where they continuely push prices down. Charging 175 is a full point below square. Thats going to get some Small Business owners attention. These guys are the cotton gin, right . Remember the industrial revolution, cotton gin comes around, eli whitney and they just, like, they just come through with it. Theres a not bad. Right. The Eli Whitney Tom loom business. All the women who did that, the credit card business and book and apparel business. What if youre ebay paypal today . Another hit at them. Numbers out for e bay, not that good, but they have a bid underit. Someone every day comes in at the 5 2, 53 level not letting the stock come in. Theres something going on from the trading action, 52 just wont come in. That said, they throw stuff at the wall. Remember the phone, have not heard about the phone since it was unveiled. Right. I dont know. Look, i just know i shouldnt keep up with the documentary because it sounds like a hack no, please do. It is on apple tv i know. Its eli whitney meets okay, don. Thats what it was. Eli whitney goes into the paint ball business and takes over. Then don, you know, eli goes into the towns where theres not a job, and then te works them in like four shirt, and like next guy. Next guy. You know who scott is . The guy who stalin cited as being able to mine for 36 straight hours in world war r. You have to be him to work for amazon. It does require a good deal of fitness. This is just an amazing this thing is, like, you cant walmart must sit there and say, i hate amazon. Next big walmart thing with the smiley faces, it will be down turned, we hate amazon. It is not been a good performer, down 20 . Now, i think the faithful have a great deal of faith, but you have the likes of steve ballmer, for example, recently, making comments about amazons lack of profitability. Ballmer likes the clippers. That deal closed. Heres a quote, its not the cheap price, but used to Tech Companies with huge risk, this is not the crazyist thing. Compared to some of the publicly traded companies out there, you know, there are great companies, he goes on to say, like amazon, absolutely no earnings, market caps, and risk. Sounds like sour grapes. The man who paid how much for nokia . Oh, thats right. He is an overpayer from right back. And no chris paul came with nokia. . Good point. What about when he buys a Football Team . When is he going to buy the billing already . I think bon jovis in line. Thats an interesting battle. Two forces. . When they get back to amazon, they have a strong belief amongst key shareholders back to the 1997 letter, go after the future cash flows and not reported earnings, sorry, and its been a long time. Could say, listen, were taking down the price ever everything njding our own stock, and they would stick buy it. Cutting price of the stock to be cheaper. Everything is on sale. If you act now, amazon prime, buy the stock lower. When we come back, cramers mad dash, counting down to the opening bell, a look at the premarket. More squawk on the street from the nyse in just a minute. 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. Nice visitors there. Time for mad dash on wednesday. Wednesday. I want to start off with a place not seeing as many visitors perhaps as people hoped. You introduced me to the concept of penguins in the late 1990s. Only place i touched one is sea world. This is a penguin story. Analysts move from this because a term you coined didnt coin it, but use it. Down 14 to 16 as if people are on strike, not going to sea world. This is amazing. Right. The stock, as you see, poised to open down 30 . Cage willie situation. Significant cuts in earnings, attendance below. Do we think its because of the documentary . Its been out there for a long time. I have to tell you, its got to play a role, i mean, this is astou astou astounding, the decline. Theme parks said like cedar fairs, the numbers got good as of late, but this just an aberration. Ive never seen just a complete collapse in this, and they have to do something. What do you do if youre seaworld . You free willie. Have harry potter on the water, i dont know. I dont know, man. This thing is just in big. Its in trouble. I dont know how to put it other than the fact that, you know, it the documentary had to have played a big role. I dont know. Kevin costner, that one, on the open water forever. What was the name of that . Oh, water world. Tried to help out here. Moving on to oil services. Yeah, i think weve been trying to figure out how to quantity my for russia, okay, and whats happening with russia, and to quantify it, cutting numbers ahead of everyone. Watch rutherford. Stock not hurt at all, the collapse of crude, but also, i mean, isis, if they dont stop isis, you are going to have a big depar sure in the oil, not yet happened, but i know iranians and United States conspireing to get rid of the guy, malawiki, but you cut drilling in iraq and russia, you cut drilling numbers. People have to understand Drilling Service is the first area really hit and what i worry about is a worldwide slow down from russia and ukraine. Well watch that group and many others poised for the opening bell, less than four minutes away. Stay with us. Squawk on the street is back right after this. Today on squawk alley, rent check, please. Whats driving techs Biggest Companies to be landlords . Unlock the female narrator the mattress price wars are on the mattress price wars are on at sleep train. We challenged the manufacturers to offer even lower prices. Now its posturepedic versus beautyrest with big savings of up to 400 off. Serta icomfort and tempurpedic go headtohead with three years interestfree financing. Plus, free sameday delivery, setup, and removal of your old set. When brands compete, you save. Mattress price wars are on now at sleep train. Your ticket to a better nights sleep so ally bank really has no hidden fethats right. Accounts . Its just that im worried about you know hidden things. Ok, whys that . No hidden fees, from the bank where no branches equals great rates. [ tires screech ] chewleys finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. Get the most extensive charting wherever you are with the mobile trader app from td ameritrade. Welcome back, youre watching cnbcs squawk on the street live from the Financial Capital of the world. Opening bell ringing in a minutes time, busy morning from around the world, not all good. In fact, most weak. We are going to get germanys gdp number tomorrow, thats key, but people Pay Attention to the macys miss, opening down 5 . Macys, people associate macys with every aspect of the consumer, and its everywhere, and macys is wellrun, so its no one says, listen, the executions bad, so people extrapolate, sell the apparel companies. Be careful. I keep coming back to jcpenney on the rebound, and if youve been to jcpenney lately, prices terrific, display better, clean, good to shop again. All right. Theres the opening bell, perfectly timed. S p at the top of the screen. Down here at the big board, nana ver risties, developing drugs against viral diseases, and sun eddyson semiconducted limited doing the honors at the s p there. Nice upgrade of ford today. Yeah. I hope that works. Mark field doing a good job there, but i think that the retail sales number shows it was a very funk auto number. You have to be careful. I dont like the way the chinese remember, its small, but growing rapidly. I dont know if you follow how china is antitrust. Chi chinas just not liking us at all. A very important development. Their crack down on socalled monopolies and triggers so many deals we talk about. The antitrust regulator oftentimes the last to give approval, if it gives approval. Can become very important in some of the deals where you need antitrust approval because of the trust in china. Look at the supply of materials. Exactly. That stock is in dribs and drabs, down more than 10 becau