Looking for a bit of a down open, perhaps. Crude oil, where is it . Where is it . I want to talk about the cushion and things i heard yesterday about the im there. Below 50 again on the allimportant wti. And the tenyear, after yesterday, of course fed minutes, we saw prices up yields down. And we are still lower certainly than we were yesterday at least because i remember we were at least 2. 1, if not almost 2. 2 on the day. Our road map starts with walmart, earnings beat on the bottom line. And this very important announcement, its going to raise the pay for roughly 500,000 employees. The markets, well volatile. Yes, they are. Premarket germany rejecting greeces debt plan. Oil is sliding. Earnings beats from tmobile marriott priceline. Those stocks moving higher. First, lets get to carl. Hes in arkansas. Hes got more on todays news from walmart. Carl . Yeah interesting, david. The quarter looked pretty good 1. 61 beats 1. 54 estimate. U. S. Comps up 1. 5, better than expected. Recall that back in the Third Quarter of last year was the first time u. S. Comps went positive in about seven quarters. Talk to Doug Mcmillon about that later. The big news is this news on wages, giving 500,000 workers a pay raise, starting minimum wage to 9 an hour in april. As of next february current employees graduate to ten. And if youre a new hire, you start at 9, at six months of training you go to 10 but thats 1. 75 at least above the current minimum federal minimum wage. All done looking how to retain employees, improve the shopping experience. Doug mcmillon posted a video to employees. Take a listen to this. Were making changes to our pay, strengthening the opportunity to progress within the company, and offering more choice in scheduling. One of the most immediate changes is that well raise our starting pay and provide opportunities for further raises based on performance. For our Current Associates, well start by raising our entry wage at least 9 an hour in april. And by february of next year all Current Associates will earn at least 10 an hour. Reporter obviously, guys this is going to feed the political discussion of what a living wage is in this country. Walmart is the biggest private employer. 1. 3 million employees in the United States alone. Were find out whether or not theyll make a stand on what federal legislation should say, if anything. My sense is they are going to say one size does not fit all, this works for us. Its up to other companies to do what they want to done the wage component, very interesting this morning jim, you probably know the guidance here downbeat. Looking for a 4. 70 to 5. 05. Street anywhere from 5. 19 that was consensus. Strong dollars at work. Talk about competitive threats from amazon, china. The stocks had a nice run, trading at its highest multiple since 08, slight premium to the s p. A lot to get to with Doug Mcmillon later on. Look x out the fuel youve got a plus 1. 6 comp that is nice. Its obvious, as you said carl, taking some serious actions in terms, i think, upgrading the workforce, which has been a primarily problem at walmart. The service. I like what mcmillans doing. A big reset. A gigantic battleship to turn. Maybe this reset sets stage for 2016 where hes cut estimates to point they could be beaten. An important move, no doubt. List. Walmart our countrys largest private employer of course many would say had the focus on it for many years, well over a decade, in terms of its wages. Many would argue, perhaps correctly, its reflective of the u. S. Economy as it exists yes, 50 years ago the largest employer in the country was gm and paid employees well. One would hope the decision to do this is in part they need to get better people and they cant get them without paying them more. I dont know if thats the case or if theres more of a political side to this than a market base side to it. Reporter yeah, theres going to be i think, probably a slight period here where theyre given some credit and then the pushback, were they reading the political tea leaves . Four states last fall voted to hike the minimum wage. Arkansas was one of them. 6 in 10 americans think the federal minimum wage should be raised. Did they see this coming and wanted to do it on their own terms . Get a little bit of a good guy credit . Well have to see. Clearly they do believe rivals like a costco but more so like a Kroger Publix safeway havent budgeted for this and there might be firststrike advantage in retaining the best workers in a competitive retail environment. Carl, i hope you can find some heat on Affordable Care act, rival service said its not impacting bottom line. A yearing awe thought it would paralyze walmart. Theyre raising what they pay workers. And i know theyve got to do more for health care. If just seems like put together, its a better place to work and its going to be a lot more like a costco. Obviously costco has the best benefit plan in the world. To me this is going to attract better people. And i dont mean anything dispersions of people who work there now, but you know as well as i do and david, walmart has a reputation now as not being a fun place to shop. Its being a tough place to shop, lets put it that way. Reporter i agree. Management has admitted a few things. One, gap, the price gap between them and competitors, has narrowed in some markets and some markets they may not have the lowest prices. Theyve admitted theyre worried about produce, worried about the vegetables. Acknowledge checkout times can be too long sometimes you walk in and theres empty shelves everywhere. Theres a bit of reset in terms of psychology. Whether or not the u. S. Comp number this quarter reflects the fix to that or whether its gas prices, well have to find out more from mcmillan. I think at the very least they have acknowledged shopping at walmart is maybe not what consumers thought it used to be and trying to get on that case. Yeah. I mean you went to walmart because you thought youd find the best prices. Right. You didnt necessarily go in for the store experience as you might in other stores. I can get great prices and have good experience at costco home depot. These places are terrific and i get great bargains and i like going there. Thats what walmart has to do. They have to make me like. I go to walmart to see whether its improved. I often find im lost in the stores. I go into super center like you, people at ill ask, where are the cargo pants . Theyll send me to the dishwashers. Right now in a crisis mode. This guy may be the right guy. This is an admittance, were not doing it right maybe thats what has to happen. A union component. They have faced attempts amongst a handful of workers, i dont want to overstate it but certainly the i think sciu trying to get things going in terms of unions as well. Another way that they can at least, perhaps fight any attempts on that front, which is a threat to them and has been for years, the idea you might end up with a unionized workforce at least at a number of stores. One interesting component to this is walmart has gone back and looked at okay why are new employees that we hire leaving . They tend to leave within a time frame of six to nine months. One big reason relationship with the department chief, right . If you work in the pharmacy get along with the guy who runs pharmacy. If you work in produce, youve got to get along with the guy who runs produce. They are raising wages as well of department heads. I think theres a few layers go on trying to resolve various conflicts in the workforce in terms of working for walmart, making sure that theyre they feel like theyre being treated well. Theyre ramping up training rams making adjustments to have a more fixed schedule so you will know what days youre working what days youre not, better in advance. Goes beyond the wage component. Great stuff carls doing. Carl does a lot of work on costco on all retailers, include including walmart. The reason they have no turnover, they spend nothing on training. Walmart the highest turnover. Training is dead weight lost. Kills earnings. Starbucks, sending people to college because they know theyll lose workers. Whole foods, dramatic good pay and thousands of people for 300 jobs. This was long overdue at walmart. Long overdue. We should state, of course mcmillon loading and unloading trucks in college, but certainly came up through the ranks that the Company Looking forward to your sitdown with him, of course not long from now. Which supercenter are you . Reporter store number 100, which i am told is new, bentonville, across from Corporate Headquarters im done think weve shot in this supercenter. But the nice thing is when we go on the road oftentimes you dont have everything you need. We have everything we could possibly need right here. You do. I remember being in a handful but i dont think i was in store 100. Spent a lot of time in bentonville. Well be back at you soon and often, of course looking forward to that interview with Doug Mcmillon. As for the stock, jim, looking down about a buck on guidance. Look you cut guidance at a time when every retailer raising numbers because of gasoline. Its a slap in the face. This company had to adjust. Look, the company the company, theyre spending fortunes on omni channels, spending fortunes on upgrading, making the experience great. Walmart hadnt spent anything. Theyll tell you they have. But nordstrom reports and they spent a fortune trying to upgrade omni channel. All right. More on walmart. Coming up tmobiles Ceo John Legere visits us at post 9. He doesnt pull punches when talking about anything. Sara eisen, an interview with hersheys ceo john bilbrey on chocolate and the strategy for overcoming currency headwinds. Another look at futures. We are looks like set up for a bit of a down open more squawk on the street live from post 9 when we come back. First impressions are important. Youve got to make every second count. Banking designed for the way you live your life. So you can welcome your family home. For the first time. Chase. So you can. Anything . No. You . No. Aflac what are you guys looking for . Claims legend has it these hills are full of em. It can take months for an Insurance Claim to surface. Claimin takes patience. Aflac paid my claim in one day. They got some newfangled kinda one day payin machine . Hehehehe yea, i got aflac at work. Aflac. In just one day, we approve and pay. One day pay, only from aflac. Aflac. Caterpillar shares falling in premarket. The threemonth rolling sales figures fell 10 on a globing basis in january. U. S. Sales down 5 . Weve come back to this name many times. And often the words preceding our mention of cat are not necessarily positive. No and i have been trying to be diplomatic but i can. Why now . Suddenly a new leaf . You know periodically when are you working on that . President s day, charity toward nunone you lost your mind on tesla last week. Morgan stanley cut numbers big but loves it more. Imagine, he cuts numbers gigantically, hes going to been morgan tesla. Since weve diverted to tesla, briefly, tell people. Those guy had them earning over a buck a share he had them thinking theyre going to make 1. 58 now going to lose 2. 28. This is fabulous. Its an interesting jonas at morgan stanley. He wrote about them being electric supplier changing the grid. He basically has said that this is steve jobs. Whats interesting, most analysts cannot get away with estimate cuts and make a strong buy. Usually you see a guy at the top of research says, are you out of your mind . Not happening. Done seem to be. Is their banking business coming around the bend . I would never even never imagine. Doesnt exist anymore. Shocking. Look, a lot of news oils down which historically hurts the tesla stock. Tesla itself david, if you listened to elon musk you know that everyone in the end is going to drive a tesla and its going to cost very little and theyre going to make a ton of money. Speaking of oil, as we move on from cat, did you have anything you wanted to offer on cat beyond those numbers . The stocks looking down about a buck now. Caterpillars a challenged company, a commodity play. Oil done a lot will influence cats numbers. China not growing. At the pace that it was. Going to influence cat numbers. Cat, focus on united reynolds they have an oil component, only six. Thats a good way to play cat. Ive been disillusions by cat for a long time. Will there be a dead cat bounce. Warren buffett bought it they report friday. Deeres diverged from cat. You mentioned oil. Yeah. We dont we talk a lot but i spring these questions on you unannounced and im going to do that. Yesterday on the phone with somebody focused on oil, starts talking about curbing, by april theyre not going to have anywhere to put any of it. Outer room. What is that . New pipeline that came from canada 200,000 barrels per day, more than you had three months ago. No place to put that. Refineries operating at levels you saw the we dont know what caused the torrance explosion. Yes. But when you run a refinery 24 7 what they do is well say things go wrong. Not supposed to run those 24 7. Should run them 93 94. That was the old rule i felt for safety. Eog, the great growth oil, said listen, were cutting back. Were not going it produce oil. Were not we never had a situation where they ran out of room. What happens . What actually would happen were that the case . What happens you discount oil dramatically. Dramatically right . You get some huge difference in spread. Places where youre getting 7 on maybe youll get 60. This is going to put tremendous pressure on oil. Refineries, you cant export the stuff. Jones act, right. Well just you know federal government doesnt want you to do. You cant. Refineries are operating every single minute because you theres no place to put the stuff. Oils going to test the 43 a barrel level when it did january 28th. Amazing story. Amazing story. Eog saying listen this is we dont know if its a u. V, had in in fashion, coming back. Eog said were not going to pull it out now. Were not going to give it away at these prices. Theres a great priestiece by rpm, held by production numbers, so many deals made a lot of guys have to produce. Eog doesnt have to produce. Eog considered to be the smartest operator at the lowest cost. Theyre saying were not going to take the prices anymore and thats causing people to have trepidation about all oil stocks. Eog, Conference Call going on now. I think eogs a smart company. Theyre saying were not going to give it away but other guys have to give it away because theyre out of cash flow. They have no choice. Got to keep doing it. Eog will say a lot of bonds to keep paying interest on but bonds may be trading at significant discounts. Eog saying well conserve were not going we dont need to blowout the oil. Well buy companies that go zblund what. What you heard from the eog changed your opinion . Theyre saying it aint coming back anytime soon. I have been saying in nigh game plan, hear what they have to say. Youve been talking positively anticipation we make our way back. Not to 50s and have that lack of volatility that at least would calm everything rich kinder from Kinder Morgan made me feel that the low 40s was too low. Eog makes me feel like we have to test it again. Jim, breezing in the wind here. Eog, when they speak, when they speak, we will know where oils going. They are speaking. Marathon, by the way, cut cap x. Eog, its going to be a while. Thats great for the airlines, so great for the consumer stock. So great for the restaurants. So great for the theyre close to 70 of the market that benefit immediately from what eog is saying. Important story. The stock down. No growth for the Biggest Oil Growth stock. 95. 31 yesterday. Jims mad dash, count down to opening bell. Carls interview with walmart ceo Doug Mcmillon in arkansas bentonville. Futures one more time more squawk on the street right after this. [ male announcer ] your love for trading never stops. So open an account with schwab. And when a market move affects, say a Cloud Computing stock youre holding, we can help you decide what to do. With tools that help you see how market activity is affecting your positions. So when the time comes to decide whether to scale in or scale out. You can make your move wherever you are. And start working on your next big idea. Know that chasing performance can mean lower returns and fewer choices in retirement. Know that proper allocation could help increase returns so you can enjoy that second home sooner. Know the right Financial Planning can help you save for college and retirement. Know where you stand with pnc total insight. A new investing and Banking Experience with personalized guidance and online tools. Visit a branch, call or go online today. Sing all right. Always getting me going with that music. Thanks to our fabulous producer in all ways. Right. Mad dash. Apple, a piece that caught your eye, research on apple. You and i both know as the stock goes up analysts have to update, they cant just say my price target is 100. Citi compelling piece, five reasons to own apple. Main one attractive valuation. A stock, up 15 versus 2 for the s p. But get this sells at 15 times earnings. Not going to back away. 3 4 of a trillion. Just a number. Doesnt mean anything. Talking about apple i pay. The coceo said the customers demanding ipay. Do these guys like it here. Longstanding. Like it there . Dont trade it. Here. Not going to this is updating long thesis. People were trying to figure out why theyre still in it. Read it thats the kind of thing. Now, airlines. Tell me. Weve been the airlines have been stalled youve got that combination today. How do i turn this off . Well you clear it here. Thank you. Its not clearing. This is great. No here clear. Allison, how do i fix this . Cleared it. Whats really interesting, this is a Merrill Lynch rollout and they like southwest, delta is their favorite. They like spirit. They like american air. It is so welltimed, the stocks have been stalled. A lot of people felt charters, going with the head and shoulders nonsense. Everybody has a way to make money. Welltimed rollout and the stocks will go higher given the fact that oils plummeting. In the midst of i would actual developing story this morning with eog and the Conference Call and unwillingness to perhaps, as you have been telling us more oil, watching the price go down not just that stock but the commodity itself. Hence we come back to likes of airlines. This is important. Gasoline going down. Look Walmart Raising