Change in supply. Reports that other companies are thinking about trying to acquire it, a possibility of a huge deal in agriculture and chemicals. Gop leadership, paul ryan meeting with donald trump. Trump has arrived at rnc headquarters for his key meeting with the House Speaker as they work to find a way to unify around trumps candidacy. We go outside rnc headquarters where protesters are now gathering. Good morning, john. Reporter good morning, carl. Donald trump did arrive a few minutes. He was greeted by protesters. We have not soon paul ryan, though he is not known for being late. We would assume that meeting is now under way. Its an important meeting for donald trump to begin to unify this priority. Senate Majority Leader Mitch Mcconnell has decided the best thing to do to protect his majority is to endorse donald trump. But paul ryan is a politician who has more of a commitment to particular ideas, particular political style than many other politicians and he has indicated, as he said last week, hes not quite ready. We dont expect a resolution of their differences today but the hope for the Republican Party is the beginning of a process that could begin to pull them together and be able to have a unified ticket this fall. Well see if they can accomplish that, guys. John, those looking for a wouldbe endorsement today or clarity on a convention chair, will they be disappointed . Id be very surprised if all that is worked out, as you indicated, paul ryan has said he would step aside as chairman of the republican convention, if donald trump wants him to. That was an indication that he wasnt going to try to make difficulty at the convention. I dont think that donald trump wants to ask him to step aside but i think this is the beginning of a process. After ryan meets with trump, youre going to have a meeting with mcconnell and a meeting with all of the republican leadership, a larger group of people. Were going to hear from paul ryan about 11 30 when he has a press conference and others will be coming out at different times for these meetings. Well see what kind of vibe we get from that meeting. Donald trump hasnt indicated an, sesive amount of interest in making peace. He was a little chippy after what ryan said last week. He said im not redd ready to t ryans agenda either. Well be coming back to you several times this morning outside of rnc headquartering in washington. 180 days, jim, until the election. I have to tell you that every day i keep waiting for something that will directly impact the stock market and theyre so at 30,000 feet still, its difficult to try to come up with any sort of strategy in the interim, there is no strategy to deal with the earnings or perhaps some talk about fed. I need trump to say were bringing back trump ties and im bringing back macys. A day after macys did miss, kohls out is out with weaker than expected results. Their guidance for the year on comps was flat to up one. So were going to see some clarity on that on the call. Railroad when kohls was at 42, 43 and there was a rumor floating that it could get a takeout . Its a recognition that what youre dealing with is a declining industry. You may want to put it any way you want but to me all these places have a linens and things. The last thing you want to do is put more debt on. The endless buying back of stock, that may not be the right thing to do. To your point, pending capital when your sales are potentially some of these companies can still generate a decent amount of cash. At the same time when you read the Conference Call for macys, an excellent cfo is scratching her head. Well, im not scratching my head. Im buying from amazon. There is a tremendous disconnect about what these people are saying about these companies and what we all know as consumers. Its very painful to say we just spent a fortune on omni channel but we still cant beat amazon. Particularly apparel. Thats where its really getting hurt. If you want to look at a walmart, 58 of which sales are grocery, it my not be quite as similar a comparison. Earnings next week, depot, tjx, lowes, target, gap. Specialties on the way. I like some of those as a shopper at home depot last weekend. Im a spring planter. You look at the stuff and you still cant imagine getting those big boy and beef steak tom eight tomatoes by mail. I wish lowes had made acquisition in canada. I think next weeks retail could be better. Walmart problematic. Walmart does at least have scale. Im looking at it and saying thats a much more important week than i thought. Walmart and home depot are about as big as we get. Im not as concerned. Home depot was down very badly. Walmart reports theyre looking the free twoday shipping. And cowen with this knows yesterday saying amazon will be the number one apparel retailer basically by the beginning of next year. You look at Ralph Laurens numbers today and you see the Retail Business was pretty good. The whole sale business was not good. Macys. They sell, what, 8 macys, thats where you buy the stuff. I keep emphasizing that this key to retail is the whole chain of marking up to then having to dump a tjx. Tjx has a great business model. They got the fist full of dollars and a few dollars more when the retailers are struggling. People are shorting under armor. I dont like to make that comparison. I find that thats the fault of the retailer. Tjx has a different business model, home depot has a different model. You saw claims this morning at 294. Its the biggest twoweek rise in two years on claims. Weve been talking about layoffs in this earnings season and then gas prices have made a big jump. Do you think those two are going to weigh on the summer . I just think theres going to be a lot of layoffs in retail. Were dramatically overstored. You have to go back over the Sports Authority bankruptcy and rei. When you start closing stores, those people do not necessarily have a place to go. Now, home depot does a lot of seasonal highi seasonal hiring. Im trying to gauge my word because people are getting laid off and its not like you want to say, hey, that means the quarters going to be good. But theres real trouble in employment and they employ a lot of people. Meanwhile, stocks are trying to bounce back after yesterday. Bank of england stays pat but warns if the u. K. Votes for brexit next month and Dilma Rousseff will be suspended for 180 days during the impeachment trial. That will overlap with the olympics. Brazil, its been a fabulous rally in the face of nothing. And i just say, well, wait a second. You have a country, he says in the face of the political, you have a country thats been run into the ground by the politicians and you get new politicians in, things can happen. They sell a lot of stuff to china, a lot of raw goods, but this is a country when you listen to Conference Calls, this is a country in disarray. If you can get a legitimate leadership in there, then you can have a turn. I am not writing off brazil. Im, st ecstatic brazil might ha government not unlike argentina. Remember when they said he committed suicide with a machine gun in his back . That was a great cover story by the cia. I remember when they went capitalist. Its been one of the great economies ever. Do not rule out if brazil goes honest capitalism, it can be a turn. It used to be the b in brick and then it became rick and then it became ick and now its i. Some of thieves countr these co look at venezuela, you look at the earnings from these consumer Package Goods and its always that except for the money we just give away to venezuela and we dont get paid and sell, venezuela had a real government and not a failed state, these are somewhat wealthy countries. The cramers who went to brazil during world war i theres grease disparity, not that we dont have it in this country either. The olympics are not going to be so good and the government is terrible. Places cant turn around instantly by government. Latin american history, if you get the right government in there, youd be surprised at the resourcefulness. The chilean model is extraordinary. Shock doctrine. Naomi klein. Pinochet was a dictator. Im not coming out for fascism here. Like the way youre couching your views today. My father would say i cant believe it, they just nationalized anaconda its like wall street the movie. Im okay. When we return, a lot more on todays movers including this big jump for monsanto. And ken rogoff on whats up on growth. More from squawk on the street at post 9 in a minute. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. Td ameritrade. Quite like the human foot. Introducing the 255 horsepower lexus is 300 allwheeldrive. With twentyfive percent more base horsepower. Once driven, theres no going back. Whyour boss . Ork for . Yourself . Your family . Our Financial Advisors are free to realize a plan to fit your familys unique needs. Well listen. Well talk. Well plan. Baird. According to bloomberg, germanys buyer is exploring a potential bid for the seed company. Reports suggested that basf could be mulling a bid for monsanto. I got nothing to confirm either one of those stories, nor whether there are actual talks taking place between monsanto and these two companies. I can tell you that back in march there were talks between basf with monsanto but that was focused on joint ventures, not a takeover. Its strategy had been to try to acquire at what they believe is sort of the bottom of the cycle or a cycle thats about to turn up in agriculture as opposed to sell. But its unclear where their shareholders at this point. By the way, if you were to apply that multiple to monsanto, you end up with a price at 145 a share. When you look at the potential synergies from such a deal, you do get a pretty big number. Look at dow and dupont. 1. 3 billion of synergies just in putting their agricultural businesses together, 8 of sales. You do the same at bayer and you can assume 1. 5 billion. Given the state of its balance sheet, some say it could be as much as 50 50 equity. This is all conj this is send monsanto stocks up this morning. You combine the two companies and you get the number one seed company. Monsanto i think may actually need some scale. And this could do that. I think this makes sense. From an antitrust perspective, it would not be it would not be an impediment to a deal. Up never know these days with the antitrust concerns weve seen and remember its eu and here as well. Theres a lot of opposition to monsanto and gmos in europe. Hard to gauge those kinds of things. From strictly looking at the two businesses put together, the overlaps are not large enough to pose a real antitrust impediment. When you talk with dupont and dow, theyre so confident about that merger to create among three companies. When i saw office depot and staples get shot down, i came back and ive asked both ceos this several times how do you have expect to become the number one seed company . Wouldnt the farmers fight you . They say the farmers like it. By the way, bacon at halliburton said the farmers would like it, which they didnt. I have no certainty you can make a combination in any industry right now. Because of regs . I think this is the most active antitrust department i have seen in maybe all the years im alive. A big piece in the times today about who mergerarbs are getting killed. And biggest m as ever. And a number of the big ones. A college team that maybe had a player who was being paid. And they strip him of it. I focused on bayer because a lot of people dont believe basf would consider doing deal of this type. Its a very insular company. I no confirmation. The story itself is one of those that says theyre thinking about it, theyre exploring it, it doesnt man thiean theyve actu reached out. Does this come under of category of other news outlets that anybody can say anything . There does seem to be industrial logic here. Were still monitoring developments at the rnc. Ryan is in the building, but we do not expect to see him as he heads to capitol hill. That press availability is at 11 30 a. M. Eastern time. You wont see these folks at the post office. They have businesses to run. They have passions to pursue. How do they avoid trips to the post office . Stamps. Com mail letters, ship packages, all the services of the post office right on your computer. Get a 4 week trial, plus 100 in extras including postage and a digital scale. Go to stamps. Com tv and never go to the post office again. We have a little mad dash for this thursday. You have kellogg citi kellogg is a prime takeover. Ken who runs general mills, i dont think hes ready to sell the company. Hes a year older than i am. The reason that people can make these calls is because the kraft deals is now working. They cut costs and got the revenue lineup, 1 . You see it pulling through. The reason i dont like these calls is similar to the basf buyer because if nothing happens its unusual where you have technologies where honey well goes down, stock goes up its unusual for an analyst to come out and make a call look this on a takeout. Theres still family in kellogg. And they seem to think cereal is turning. Post cereals had a great quarter. Quaker had a decent quarter for pepsico. I just want people to own these stocks on the fundamentals. If thats the case, kellogg is not doing as well as some of the others. So theres a lot of consolidation in the group. But do some homework before you decide, hey, i like kellogg. How about the thousand dollars price target for amazon. David feels a little 1999ish. Just a couple of those stocks. Thats about it. We have a lot more stocks to talk about. The opening bell coming your way in just a few minutes. In new york state, we believe tomorrow starts today. 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And brexit, they say its a problem and even talked the r word, the recession word right now. This is a level of uncertainty that comes right after the fed meeting thats going to put a lot of things on hold. Talked about a lot but not by us. When i hear the recession word, never want to hear that. Never. Futures hanging in thanks in part to oil. Nonopec production now down 700, not 800. And a lets watch Siteone Landscape supply celebrating an ipo. And ge is going to try to hang on to 30 today. I think theyve turned the company around. A lot of people feel it stuck at 30, its more an Industrial Company with a pretty good growth rate. Honeywells great rate should improve. Ges company to call it a sell right here after its just about to lose that designation as a significantly Important Financial Institution . I want to take the other side of that trade. Jpmorgan did advise. So interesting. Theyre downgrading. They were key one on advising on the divestiture. I like the fact they were advising ge and and came out positive. I think theyre wrong. They have every right to be wrong. Where does it say in the constitution you cant make bad calls . It doesnt. Why is ralph bucking the trend . In the retail sales number itself was very, very good. This new guy who is running it, can i just say that the new guy is getting a lot of im talking about stefan larson, came from old navy, came from h m and they still had customers. Thats saying something. They had living people. They were not actors buying things at the registers. Theyre trying to turn the attention to club monaco. I have a club monaco shirt packed in my bag and i like club monaco. So does my wife. She says you look good in club monaco. It a little anecdotal but club monaco is doing well. Do you never mind. Whenever i ask about club monaco, he said its like club med. You want to sing the song . I went to club med. Goldman sent me to club med at a tough time when my mom passed away. You should go to club med. The pundits saying the same thing, that no one will shop in Department Stores, no one is shopping in malls, theyre only shopping off price. We heard the same thing in 08. They were wrong then and theyll be wrong this time. I think there is good employment growth. It has to do with a shift in the way people shop. Its the cell phone. Remember, millennials doesnnt e shopping. There are some millennial outliers like my daughter but they dont shop. Im just glad they didnt do that real estate transaction. They say they are still looking at a number of transactions and they point out the complexity of those transactions will take time. Macys is an institution but institutions need to reinvent. This 27 amazon growth is still just blowing people away. No one saw this. And more than half the actual sales growth in retail overall has been amazons. I know. Its zero sum. I remember going to see borders ten years ago, i went to borders. And, you know, in ann arbor. They are great guys. You know what we did . We sat around. It was all the top executives and what we talked about was books, what books did we like . And amazon came up and it would be like, yeah, but you cant browse at amazon. You go to a book store, secular temple of learning. You go to borders lately . It sounds like kodak said no one is ever going to take a picture with their phone. I used to go to borders, get myself a starbucks, sit back, read a book. Now i read the same chapter on amazon and if i like it, i order it. Watching vashares of valiant hows that doing today . Theyre up 1 after starting down. Yesterday it was down sharply again and nearing alltime lows, which is 2527. Mr. Papa doesnt seem to be getting a good reception. When you read the press reports, it was kind of, well, he doesnt really have a plan. But give him some credit, he just got there. But i thought that the article today in the journal about the fact that there has not been rollbacks yet, cleveland clinic, no rollback, what joe papa promised on mad money is theres going to be roll backs and that means theres going to be p