Numbers. Profits miss estimates by a penny. The massive data breach hang over the stock. Macys downgrade with disappointing results, dicks and urban outfitters. All moved lower. A vote coming for obonomics in japan. And well have an exclusive interview with the ceo of halliburton to buy baker hughes. Revenue above consensus rose better than expected 5. 2 . Retail noting at 28 million and expenses for that recent data breach adding it cannot estimate the total cost of the breach which for the year, about 34 million. Not bad in a tough retail environment. Traffic up. I think what happened is last week macys reported a quarter where they cut the forecast, yet the stock rallied too after being down one. That caused a lot of people to say it doesnt matter what retailers do. Its going to be a good holiday. Gasoline down, employment up means you can suspend what people think. Lots of stocks ran. When you run into a quarter, suddenly we take it into account the way we didnt when macys was stalled. This stockholm depot is a victim of the running. I dont like situations where the number comes out and stock starts going down. It was a great quarter. Is it as great as i expected . Yes. The stock is also anticipated a lot. When you have a piece immediately out within 90 seconds of the release, home depot comes out early. Q3 samestore sales in line. Operating eps misses by a penny. No stock thats run up this much can handle a piece of research that says it misses a penny. A great quarter why . Its a great quarter because Gross Margins expanded. Samestore sales at 5. 5 is remarkable. These are lots of people spending on their homes. This stock was in the mid 80s not that long ago. They bought back a lot of stock. I thought the breach would be far worse. Target has run a huge amount going into the quarter. Inventories running higher than sales. I dont know. What happens if it snows in buffalo 18 inches . Good point. You want inventories low. We are getting a long streak of cold weather. Yeah. The new ceo, i think people are, there are a lot of people feel this thing has run its course. The macys downgrade is about running its course. My problem with that is these stocks historically are still inexpensive. They are doing a good job. I dont think target is doing a good job. That stock might be expensive. We saw nordstrom and macys go up on what was muted outlook. We believed these retailers have been stalled for so long, lets run with the more positive view given gasoline and given employment. I think these stocks have run up and they come in a little. Thats okay. Right. We are talking about a move from 80 to over 100 in a very short amount of time. Thats come along with a multiple going up. It hasnt been about the earnings. I dont like multiple expansion. I dont like paying up far more for earnings. Walmart blew through the 70s to the 80s and come up with Comp Store Sales slightly better and everybody is thrilled. Europe is up a lot. Yesterday europe was down. We are in an opposite we are not trading with europe. I think we are going to trade with these retailers today. Dicks did meet, comps up 1. 7. Urban was horrible. Comps down 7 . Thats a 2 1 2 year low for urban today. Urban out fitters, youve got to go through the Conference Call. To quote the ceo, its just this is richard hain. Its urban. What did we learn . Clearly the consumer is growing affinity as tempered with the need to shop in stores. Why did anthropology and free people do well . When i say its lousy, i am quoting them. They were very unhappy. Urban is a lost cause, the way it reads. That statement can be used broadly speaking to indict all of retail. It seems to be used by those who are not seeing strength, but then again, we see others who arent having that same. They are say direct consumer is better. It raises the bar for bricks and mortar store. You have to experience it. Its become a broadway play. That sounds more expensive. That costs a lot of money. I cant argue with that sentiment over time. Weve been talking about it being the underlying trend in retail whether it be that people dont want to go to malls as often as they might have. And they are using their mobile phones frankly to doe all sorts of stuff they would have once done in a brick and mortar store. Was urban out fitters the flagship very good online . It wasnt clear because the numbers are so confusing here. I do think, david, youre right. The excuse of bricks and martor as being used by guys who underperform. Why would you use it . Thats the one youve got to go to. Its rooted in reality. It doesnt have to be the reality further. Its not that exciting to go to. Restoration hardware, very expensive stock. Im making a list of retail downgrades, macys, walmart, tjx, ross, nike, lulu. If i call apple a retailer, we have a price target increase. To 130. I think the flaw in the sell retail is its been very long since we had growth with retail. Its almost as if the analysts dont believe with retail. Analysts think amazon is killing everybody. Go over the nordstrom Conference Call. They have spent fortunes with their online. Some people think they overspent. Theyve done a very good job. That is not a bad stock. These stocks have been fabulous. Lets just give them that they ran a lot and now we have to start thinking lets have a pullback. Stocks do pull back. This is one of the great groups of this moment. When we get the numbers, its sell the news. One of the biggest holidays, perhaps the biggest day is singles day you know you were in where you cant breathe when it happened. China. The headquarters of alibaba. They sold 33. 9 billion worth of goods. 79 million packages, most have been delivered. Stunning, as your point it, it ran up. Stocks run up. Its still a 280 million market cap on alibaba. Right. And apple is a great retailer. They didnt repeal the loss of the stock market. When you have a monster move, stocks come down after you get the numbers. Japanese Prime Minister abe delaying a sales price hike next year. Showing the worlds third biggest economy slipped into recession. Over in europe, data confidence came in better than expected, rising the first time in almost a year. The estimate was only 0. 5. I love one of the stories about japan. In the tax hikes they already put into place, the quote is they my have overdone it with the fiscal tightening and taxes. Oh did they ever. Tjx. A lot is forex weakness. We may not be fully accounting for it both on the income of what its going to do simply to net, but also what it really does to overall sales. Do you think the confidence number was an outlier for germany . You need to see that dollar stop going higher against the euro. You go through tjx. A giant european business. First thing you think home goods. Was that bad . No. How is tjx itself . Its good. How is europe . I dont know. Its good. When you translate, its not so good. Thats what a lot of people people dont realize that is not just a domestic retailer like home depot. A lot of people buzzing, s ps moved fewer than two points for five days. 0. 1 in five sessions. If we do a sixth today, our data, weve gone back to the 40s. We havent found a streak this long. Does that suggest poised to bust out up or down . I think we are waiting for the santa claus holiday, the santa claus rally. I dont think things are things have run up a lot. What you just described is classic consolidation. What we used to have, we run up a lot then give back 2 3 or half of it. This is positive action when you think about the fact we had such a big run. Overall earnings season turned up pretty good. I worry about ukraine. Worry about soft europe and a lot of the companies i follow worry about soft europe. People are saying that oil decline . Its not so bad. We thought it was weakness. Now we like a little bit of inflati inflation. I go through urban outfitters, its bad. Tj is good in america. Home depot, its good, but the stock has run. Is macys worth the downgrade . They are not as bullish as the stock reaction. Wells fargo downgraded on valuation. What happens if it turns out next year is a good year and you downgraded these stocks 15 numbers . Youll look silly. At the same time, you cant abandon your discipline. I would rather see that. I totally agree with that. Thats why i was surprised actavis was up yesterday. You have to come up with a reason they were going higher. Did you find it was odd . Yes. I would have expected actavis to be down yesterday as opposed to up begin the price they paid, the multiple they paid. The synergy number was larger than anticipated. He came out with a number here. Maybe an aspirational number for earnsin earnings for this company. If you hit that number, you can argue the stock is not expensive at all. Cheapest major pharmaceutical with the best growth. A lot of the quotes directly related to our interview. People admitted to not watching our interview. Are you kidding me . There it a quote in the times. There are dark corners as wall street markers even as companies spend on mergers and acquisitions they are not spending in other areas. Allergan spends a fortune and they got together and they are not cutting the r d budget that much. A lot less than what would have been cut with valeant. I think its very easy to be negative. The average is pretty good. Speaking of synergies, halliburton chairman and ceo will visit us post nine discuss his companys 39 billion acquisition of baker hughes. Theres confidence. Then theres trusting your vehicle maintenance to ford service confidence. Our expertise, technology, and high quality parts means your peace of mind. Its no wonder last year we sold over three million tires. And during the big tire event, get up to 140 in mailin rebates on four select tires. Blackstone reached a deal to sell a Manhattan Office tower for 2. 25 billion. Sold to a venture led by a canadian Property Investor ivanhoe. It would be the second largest sale of a u. S. Office building in u. S. History. What i find interesting here is blackstone, perhaps one of the savviest buyers and selling of real estate have been doing quite a bit in the u. S. Of late. There is no doubt theyve been selling more than buying in this market. Youve got to remember they bought a lot during 2008 to 2012 under the leadership of jonathan gray. We talk about blackstone and think about private equity. Real estate is their biggest business. They have a close end Fund Business youve got to start to get returns on those funds and return money to investors. So that happens. You have prices up, 4. 5 cap rate. Thats the yield this is being bought at. Dont forget that they control hilton. Though they recently sold more hilton. That waldorf sale to the Chinese Insurance Company was a 2 cap rate. And they got 100year management contract. Pinnacle foods today 20 million shares selling. And blackstone selling again. I just think we should note it. Put it down somewhere. Blackstone is a seller of a lot of assets. They are stilling a lot of stock, taking their companies public. Its the nature of the business. Look at private equity overall and look at the activity there. This year we know its the year of m a when it comes to strategic buyer. Private equity played a minor role in buying. Theyve been doing an awful lot of selling. How often have we watched an ipo where the major seller or at some point down the road would be the private equity firm . I asked david during the break, do you think im bullish . But ideal with the reality macys should have been down last weekend. Use that as being an analog for, wait a second, that wasnt so good. Why was everyone so excited. Maybe ive got to get more excited. Maybe ive got to be less skeptical. When youre uncomfortable being long stocks, thats how it should feel. Thats how a bull market is made. Right. I think we rotate a little bit. I want to hear what halliburton has to say because oil is so crucial. When you think of those who buy and sell businesses, and that being a blackstone which has a good track record and they are looking at the return parameters, they are choosing to sell more than buying. I was trying to buy stuff for commercial purposes. What have you got going on . I cant own stock. So guys get together and we want to own got the inn, what now . Castles in ireland. Gold mines. Irs always too strong. The restaurant is doing very well. It is doing well. Are you going to expand . A group of guys are going to get together and buy a building. I find there is not a lot of value. I do that because im a businessman. Im a bit of a businessman. And a good one. Thank you. Well get cramers mad dash as we count down to the opening bell. Halliburtons chairman and ceo will join us post nine. Well hear what he has to say about the 39 billion deal to buy baker hughes. For tapping into a wealth of experience. For access to one of the top Wealth Management firms in the country. For a team of Financial Professionals who provide customized solutions. For all of your Wealth Management and retirement goals, discover how pnc Wealth Management can help you achieve. Visit pnc. Com wealthsolutions to find out more. Its time to get to work are finally over, fixing our longterm National Debt to help build a stronger economy. With a solid fiscal foundation, we can create more jobs, invest more in innovation and infrastructure, and make america more competitive, giving our kids a better future. A bipartisan solution to our longterm debt means more growth today, more opportunity tomorrow. And the time to start is now. shouting location. Heres the location that matters the most. Here. Or here. Or here. Its wherever this is. To get customers to come here and stay here, youre going to need an app that connects to all your systems. So they can bank, shop, do what they need to do, and you gotta do it fast. Before the competition does. Its tough out here; you better be on the right cloud. Today theres a new way to work. And its made with ibm. There it is. Seven minutes before the opening bell. Time for a mad dash on this tuesday. One of my Favorite Companies is a spinoff of pfizer. I love Animal Health stories . Animal house is plain and simple, its the most unregulated its not like the fda. If you have something that solves a pork disease, bingo. This company has been the leader in science for Animal Health. Its been great. 500 million share repurchase. I wonder if they are buying back stock because they fear now that valeant doesnt have allergan this is the ackman target. The company did put in a poison pill activated at 15 . I think that did happen when i was in china last week, but i did note it. Clearly they are in defense mode. What are ackmans intentions . Would i team up with valeant again . That seems a stretch. Right. Especially given a lot of tension in their camp and questions on the part of valeant as to whether they were well served having teamed up with mr. Ackman. They might have had a better chance of success had they not. Does it matter how well a company does . Look at the performance managements begin you here. Is that not enough . Remember the old days actavis didnt go . That is a great point. Weve seen it more often than not they come in where things are going okay if not good, but they make the argument it could be better. That seems to get a lot of traction with investors. It gives them protection on the down side. Whether its a pepsi or a dupont, both well performing stocks, they are not strongly performing as they might have been if they made better decisions. There used to be some community if you were the best performing stock in the group by pepsico. It used to be people say im not going to go after her. Shes done an amazing job. It means nothing. First being, well the realm of lets call it a 10 billion to 15 billion, the biggest market cap you can get to mega caps to companies that are even the better performers in their groups. Doesnt matter. It is incredible. A great performer gopro. Here is a company that announced a secondary. When you see this action ahead of a secondary, that means people are getting the word. You are not going to get as much stock as you thought. They go in the open market and buy more. This is a very big short squeeze. I understand the Holiday Season is great. You told us to sell it at 90. It went down. I am telling you i am giving you information this secondary looks widely oversubscribed. The shorts and gopro may get hit by the fact there is a shortage of highend gopros for Holiday Season. And the chinese are coming in and buying gopro. Unbelievable. I bet it was a big singles day. Singles like that . Sure. You want to take a lot of pictures of yourself. Halliburton chairman and ceo will join us after the opening bell. You are watching cnbc squawk on the street. Opening bell in moments on this tuesday. A lot to work with today. Home depot came out, largely seen as a beacon by some. The quarter is still very good. Good to listen to Conference Calls. The company displays a total open hand. Lowes on the way. Theres the opening bell. The s p at the top of your screen. At the big board, halliburton celebrating its 95th anniversary. Well speak with the ceo after the bell. Ultrate ultratech, used in Semiconductor Devices and l. E. D. S. Semiconductor companies have been strong. Yesterday they came in a little bit. There is a stealth rally in the Old Fashioned tech and stealth selloff in the internet social media tech. Its been, what people dont understand, people want buyback s. Xilinx is close to the top performers today. 800 million buyback along with the other one out of pinnacle, along with the secondary. Xilinx, this was the first big quarter in a long time. Ive been tough on the ceo because they missed several times. It does feel like what happened here is the companys got its footing again. Halliburton going to get some back. Up 2 . Talk to the ceo in a moment. The Conference Call was a total love fest. Would you think these guys would be pointing the table. The breakup fee is scaring people. Its such a huge amount. It was a big price. Not a big price versus july when the stock was it a 75. Electronic arts going to be up a percent. Tail winds console, upgrade cycle, a lot of the trends you hear about out of the bulls. If people just remember we said apple is a great retail . These games are selling like hot cakes. Theres no when we watch the nfl, we used to see thats when they would introduce new movies. Now its like, wow, i want tos that movie. No, that is masters of doom and death and war. How could you not be playing that gam