Row today. Something the s p has not done since january. We got earnings from home depot, walmart, qe accelerator, oil settling back below 60, but ten year close to the highs of the year. Housing starts are a nice up side surprise. Walmart missing expectations. Depot beat and raises guidance. One Speciality Retail down dramatically, urban out fitters coming in below us. Thats the major Culprit Online business expenses. Despite carl icahn wishes, the dream of an Apple Television is reportedly dead. U. S. Comps below consensus. Ceo says they need to get better consistently running great stores. Home depot beat expectations. Citing a more normal spring across much of the country and continued recovery of the u. S. Housing market. Depot raising their fullyear guidance to stronger than expected start to the year. They are saying. With starts surprising today, people are saying maybe it was weather after all. I have to tell you i think there is a shift going on in the country. I had athena on last night. They bought ann taylor. Apparel is in the dumps. The home depot number is remarkable. I was looking for a good number. I got a great number. Urban looking for a good number. Got a terrible number. Walmart looking for a bad number, got a bad number. We are look inging. We go to home goods. Home goods offers a rather amazing price point. This was her best effort yet t tjx. We segregate it and say walmart this walmart did sell 115 billion worth of stuff during the quarter. Its important to mention as a percentage of overall retailers who were public thats large. Walmart is still retailing to a large extent in this country. The most frequently visited store of any kind including restaurants, you name it in the country. There are larger lessons to be drawn. Home depot, enormous, important. Urban outfitters maybe not so much. No one is saying we had a solid First Quarter. We need to continue to get better to consistently run great stores. Doug mcmillan and i are on the same page. We need to get better to run consistent. Thats all. Theyve got to be more consistent. I dont know how they do that. I am glad i am not running walmart today. I find it is a battleship. Its so hard. Its more than a battle ship. Its a convoy of battleships. It is the combined fleet that went against lord nelson. The combined fleet was crushed. I tweeted out walmart u. S. Comps 11. Kroger 6. Dollar general 4. 9. They are getting their lunch eaten by other supermarkets. Comp Sales Numbers are a shape. Traffic is good. They have to reinvent. Traffic is okay. Up 1 . They are up 1 . I think are not that happy. Warren buffett said people are unhappy when they are at whole foods . I think they are unhappy when they go to walmart. There is a tone of unhappiness for some people where they spend like crazy. Home depots numbers. When you compare it to everybody else, i dont know. I went to walmart last year i have to admit i found it was confusing. Didnt know where to go. Not better. My recent trip to walmart didnt feel better. They are investing in that. Going to spend 1 billion raising wages, investing in tech. Next year at this time walmart will be better. My problem is there are some guys doing a great job. Urban outfitters said i wasnt as bad as urban. Open down 15 this morning. Misses by a nickel. Comps up 4. Anthropologie didnt do well. They said may did better. Distribution problem. Yes. Im trying to say this stock being down this much is a mistake. However, this is the one that had the highest expectations. Why . The Company Created them. The company told us and they said we are very surprised what happened at the end of the quarter. This is not going to clean up immediately. Theyve got a big buyback and will buy back stock. It is amazing 14 days 199 store division it takes this whole thing down. Missed opportunities in few key silhouettes, fabrics and price points. Disappointment and bit of a surprise we had a stronger comparable performance going in april. It is jarring and thats why people are fleeing this thing like rats on a ship. People are saying the pressure is on lowes. Estimates and comps there are 6. 1. They have an easier comp to work with. They have to narrow the gap between them and depot. The chart able trust sold lowes. I think im going to say why did we do that . They at this point are trading in parity. Its one where they seem to get it right. I think a lot of it is what dave jaffe told me. This is what people are doing. They are spending on lowes. Really breaking out. Doing well. When i go to lowes, i find lowes to be refreshing beautiful, fantastic, hispanic push that is working very well. The aisles are bright. The people are helpful. When i go to home depot the flats are gorgeous, the plants are terrific. This is their season where you do your planting. You get good weather last weekend. You are going to have another good number. I like lowes. I wish i didnt sell it for the trust. What do we make this hard goods versus apparel dichotomy and whether its real or somewhat imagined . The likes of zara or h m. There are winners within that larger universe. We keep coming back to this theme that apparel is not doing particularly well. People want to buy skechers shoes. Nike doing well. Dicks had a decent number. Under armour. I think there is just something that says clothing isnt of value right now. What is value is to make your house, the Housing Starts back to where they were 1960 this morning. September 1960 had the same numbers. I do think that spending on your home is being viewed as positive. The u. S. Budget was under 100 billion annually in 1960. Just so you know. We were building 1. 2 million. Baby boomers, like me. This is an extraordinary amount of money people want to spend on homes. Im wondering whether apparel theme is really we are missing something here. Or they are buying more. That kind of retail. I am very confused by apparel. I have to go with jaffe who says we are starting to see maybe a bit of a turn toward apparel spending, but the country is not spending an apparel. The country is spending on saws and fertilizer. Tomato plants. Good to know. On the broader markets, we are going for four days in a row up. Havent done that since january. I dont like the set up. Interest rates higher. Ecb saying they are going to front load qe. I was shocked. And our futures spiked. What is that about . What they are trying to do is get the euro down. They are trying to take our international sales. The futures people ive been using the sonny corleone reference. Sonny at the end brought the horse to michael. I feel like these hedge funds went to college to get stupid. It is bad the ecb wants to have the europe lower. Good for europe bad for our companies. Are these people so obtuse, to mix a shawshank metaphor with a godfather metaphor. You are the king of pop. The king of pop . Will we do animal house while were at it . Michael jackson passed away a while back but here he is. He had great numbers. Autonation . Do you count this as a breakout . If i were in a basket of International Stocks i would say here they go more than europe. I like a bit of momentum. Yesterday was biotech and financials doing okay. A lot of these International Companies are doing well. These are not the scenarios. Ibm is most referred to the kurns ki. What about the 10year german bund. Most people cant get that. Thats not true. You can probably pull that up. Oil coming back down. I like a set up where the dollar is not strong. If the dollar is not strong i think we go higher. If the dollar is strong you take us down. I spoke to the head of the wichita federal reserve. I know they dont have one so this is a fictional guy. San Francisco Atlanta fed showdown is getting interesting. It is. Rates are going higher. Air is thin in colorado. It appears you might not see an apple tv. Take another look at the premarket. Premarket. Apple scrapped plans for ultrahigh multidimension television sets. Story came out after carl icahn released the letter to tim cook saying he expected the company to release a television next year. A lot of analysts Piper Jaffray saying we give up. Its not going to happen after all. This is a company that needs to say what its going to do. If you talk to somebody who supplies them you say listen dont ask me about apple. I think this company could do whatever it wants. Its got a staged rollout. A lot on its plate. Its got watch which is worse than expected. Shut up guys. You have no idea. People can say whatever they want. People say anything they want. Although the reporting here from the journal which they use the carl icahn letter as a jumping off for the various iter rations. The reporting does seem to be specific enough referring to various efforts they made and Different Things they had and decisions they made. We all know its an extraordinarily competitive environment. Margins can be very low. They need to make a leap of some kind in terms of value proposition. You are so right. When you look at the hard goods lines of these retailers, you always see that televisions are bad. On the list of deflation, its always the worst performing product. My buddy got one of those 140 inch tvs. It was broken. Trying to lug it back. In the end they were like how much well pay you 100 to take that tv. Tvs are the worst thing in a store to sell. You give away tvs. I got a toaster when i opened at citibank. They install tvs. Dimon can install tvs. He can do it all. What was your take on icahns letter. This company has so much cash. I think it was better sent to gm and ford. The guys are adamant the car play is not a great initiative. Apple has not addressed it headon. I thought apple should buy harman. Go buy harman. Navigation becomes extraordinarily important. Napping . Mapping. Have you ever taken a nap in your life . When im driving . In general. No. I was up at 3 30 to check the german bund. Well get cramers mad dash and count down to the opening bell in a moment. Well take one more look at the premarket. More squawk on the street. E street. Automotive innovation starts. Right here. With a control pad that can read your handwriting, a widescreen multimedia center, and a headup display for enhanced driver focus. All inside a redesigned cabin of unrivaled style and comfort. The 2015 cclass. At the very touchpoint of performance and innovation. Good. Very good. You see something moving off the shelves and your first thought is to investigate the company. You are type e. Shorten the distance between intuition and action. E trade. A lot of people feel they have good play bad play. They now have ten titles that sell more than 5 million units. That is a good modernization. Border lands was good. Nba was very good. Evolve their new game was quite strong. Better than expected. Next year they guided down. This stock. This is o been linked with a company that can do no wrong right now. I think thats correct. They are not getting enough credit for their Cyber Security unit. I would not sell this stock. I would be a buy on weakness. We dont talk about it. Its been around a long time. Its a good company. Dont sell that stock. You heard him. Opening bell a few minutes away. Lots more squawk on the street coming back. Ming back. We live in a pick and choose world choose choose choose. But at bedtime . Why settle for this . Enter sleep number. Dont miss the memorial day special Edition Mattress with sleepiq technology. Sleepiq tells you how well you slept and what adjustments you can make. You like the bed soft. Hes more hardcore. So your sleep goes from good to great to wow now we can all choose amazing sleep, only at a sleep number store. Save 500 on the memorial day special Edition Mattress with sleepiq technology. Know better sleep with sleep number. You are watching cnbc squawk on the street. Opening bell 1 15. Lots to work with today. Walmart missing on expectations. Home depot beating. Youve been saying got to get the dollar to come in. Now youve got to get the euro at twoweek lows. We want the dollar. This market will not sustain in advance without the dollar going lower. It needs the International Stocks. When we see rates go higher jpmorgan go for a move here. Regional banks have been strong. They are not enough. I think remember, johnson j, big exposure to a weak dollar. We need some Keep Health Care going. By the way, the month of may, although we are not obviously nowhere near done shaping up to be the second best month of this year after that poor february we had. Buy in may. I told you. Buy in may, go away. Housing is going to ramp here. These Housing Starts and what home depot is saying housing is where to be today. The s p fills in the a the top of your screen. Down here launches of two etfs. Have we done dicks yet . I had this guy on last night. He does largest chains. Nycc, my country club. Told me not to worry about golf. Dicks has a golf problem. I want to try to exempt it. This is not a play do not sell under armour on this and do not sell nike on this. Golf is pulling it down. Foot locker reports this week. Golf is not growing. There are a number of closings. I want to say its one an hour amazing rate. Thats why they are making some of the holes this big around to make it easier to play. Im not kidding. Judge, they are trying to up the effort. And the extra point move back. Theyll let you play frisbee golf. Whatever you need. Its amazing times. That was a game you had tiger and jordan speith is exciting. Do people want to get out. House and not care of the kids. I like you speak for me. Thats very helpful. I could just sit here mute. No one was looking for this. The stocks were telling you coming into this weekend. The best stocks in the book were leggett and platt. Lennar is a big number. This is why home depot is doing so well. Wanted to come back to yesterdays deal. We didnt get a lot of big deals this week. They started the day up after the announcement they would buy pharmaceuticals in the private equity firm. They are up today. This is an important theme to watch. Endo one of the smaller rollups, if you will. Valeant and activists amongst the bigger ones. Its all part and parcel the same thing. You have a lower tax rate as a result of having inverted. Endo activist. Valeant as we well know. I thought it was interesting that the response to the market was not a positive one yesterday. If that were to continue just watch. You and i talk a lot about, both on camera and off, what this enormous wave of consolidation that is being led by these companies. I thought the stock might be up. They need a higher end offering. Dress barn and lane bryant and that it didnt matter. I thought that reversal was key. If you wanted j j to do a deal you wanted them to think the stock would go up as back to when it decided to pay for pharmaceuticals. Lets keep an eye on that. Abbvie. Just got married. Had a nice big wedding. Liberty warehouse . I think they had jewel play. Very nice. You didnt have jewel. I didnt need jewel. No you didnt. And there was lots of joy in the room. I didnt need jewel. Jewel. A couple of upgrades. Mastercard Pacific Crest to overweight. A bunch of new services. Something about europe doing well. This was a group i was concerned about, candidly. They had such a big run. I like everything i hear about mastercard. Home depot doing well. The cfo talking about how may was very strong. People worried about the progression. How is may doing . Urban out fitter said may is better. Maybe there is a hope here. Urban is down six. If may is strong that would be a very good sign for the u. S. Although immediately, i have to talk about San Francisco versus atlanta feds are going to duke it out. The fed heads are all going to talk about how they are going strong and may retail sales being strong. Maybe well be saved by the close with worldwide currency. The San Francisco fed wants to double seasonably adjust q1, which they say is a much better number than the number we got. Stick to baseball. We need the phillys fed fanatic. Get that stripe on the right hand corner. Panera. There is too much couplelove for panera. Got to be careful. The last few numbers were that the that good. Jack in the box reported a great number and that stock got hit. Red robin is doing very well. And the shack is unstoppable. Shackmeister. You made this point. 38 million per store. Is that all . Yeah. You wont rest until there is a shake shack starwood . Marriott. Have you seen marriott lately . No. Art created a lot of wealth. Vacations, that time share business. Marriott is an inspiration how much you can make if you are a great manager. He comes on tv and is a well spoken guy. We dont talk about marriott enough how good they are. With the exception of ebola, its almost a straight line. Interesting you mentioned the rcl. Those stocks got hit by the ebola scare. If you look at the charts, that was their last buying opportunity in the 21 day people period where you were waiting for the incubation period. Fantastic buyback. They are opportunistic. So was apple. I wish icahn gave them more credit. We are getting breaking news. I want to get to dom chu. This is from the department of justice. Six people have been arrested including chinese nationals and professors, among six defendants with what the doj call espionage espionage. They have alleged to have stolen valuable technology from two Avago Technologies and sky Work Solutions to benefit a peoples republic of china university. This all happened on may 16th. Its a 32count indictment. It had been previously sealed and pertains to the six individuals engaging in economic espionage to obtain u. S. Trade secrets. The department of justice do say the defendants leveraged their access to and knowledge of sensitive u. S. Technology to illegally obtain and share u. S. Trade secrets for the benefit of china, National Security division will continue to relentlessly pursuit and prosecute defenders wherever the evidence leads. Charging six people with economic espionage. They allege stealing trade secrets from these two Tech Companies to benefit Chinese Companies as well as their universities. Back to you guys. Incredible. Skyworks and avago. Three years ago we did a special cnbc report of Cyber Espionage which focused on intellectual property. They will do it through cyber means and detailed in many forums. They