A roadmap continues with the retail wreck continuing, gap, foot locker and ross stores all on the move after earnings. And more on the latest on the disappearance of egyptair flight. First up, stocks are poised to open higher a day after the s p touched a twomonth low on concerns the fed might hike rates next month, or in july. The dow and the s p on track for its fourth consecutive weekly loss, thats the first such streak since october of 14. The nasdaq on pace for its first fiveweek streak in the red since 2012. Yeah. Interesting to put in perspective the month weve had. Money pouring out of the market worse actually, these guys talking on squawk box worse than 2008 and 2009. People concerned its not just one hike, its multiple hikes. I dont know how that conversation comes back on. Thats scaring people. Earnings just soso. Geez, its just kind of a subpar picture, i think. Really . Even with the economy essentially the fed saying its essentially Strong Enough to handle this. Why is that a problem . Well, that means the dollar goes higher so all the companies we bid up in the market are ones that the numbers will have to come down if the dollar goes up. Were not set for that. The only companies that are really reacting positively are the banks. And thats not big enough. The insurers, theres been big catastrophe losses. Those numbers are coming down. Im saying the numbers for Many Companies are going down, for a few are going up. And that really does determine the direction. Would you rather have the inverse where banks were lagging because we were in this perpetual low rate environment . Yes. If they would just speak in one voice. If we had a maestro, a conductor who would say one hike and then lets wait and see, wed go higher. But right now if youre trying to factor in two or three hikes, numbers come down. And thats what matters. Its about the two, three hike scenario. Thats whats causing this weakness. Not the one. The one we can do. So is it the tower of babble. Yes, thank you. Youre welcome. Better than the musician thing im using. I thought the maestro thing had game. You going with that one . Im stealing it for tonight. Its not generius. Its form of flattery, thank you. Its not going to end. Tu ru lu is going to hit the tape if it hasnt already. Yellen next friday, bullard two times next week. I dont know. Bullard wants slower, about Lower Oil Prices and it went the other way. Why do they have to talk . Why do they have to talk . I dont recall then again the world we live in right now is one of endless information coming at you in so many different ways, some of it true, some not true. Well, they might as well tweet. They might as well tweet. Thats where well get, i guess. Well all be trying to figure out in 140 characters. They do not need to talk. Because they all talk we have what we have. They dont care about the stock market, but the money coming out of the stock market is directly related to the fact no one knows what their doing. So you say they need to pull guidance, pull Monthly Retail sale no retail . I just want them to talk and the rest of them to say ill see ya and let yellen talk. I was once in Training Camp where an offensive line coach deviated one little bit from the head coach, that never happened again. These are offensive line coaches. These are defensive line coaches. These guys are like, you know what, theyre linebacker coaches. Theyre embarrassing to me. You have a head coach, you speak, you let the head coach talk. I dont want to hear about and youre saying they should not be giving the presser after the game. Some of these guys are just kicker coaches. Theyre special teams coaches. I mean, some of these guys are you know what they are . What . They are guys who are training and conditioning coaches and theyre speaking. And theyre contradicting the head coach. Can you imagine this . The nfl is so much better run than the fed. True. But its a bigger business. I like that on the jets who tripped a guy when he was trying to return a touchdown. So he should join the fed. Im making him hes going to succeed dudley. Who are these unelected people that are offensive line coaches that can grab a mike repeatedly and contradict the head coach . What is that all about . All right, but to your point in terms of the Broader Market and the lack of participation from a lot of hedge funds and the like and then the algorithms that we talk about all the time, all the ph. D. S and mathematics who know nothing about the stock market and dont care. I mean, thats the world we live in now anyhow. I think theres a redemption cycle going on in the Hedge Fund Industry maybe leading people to sell rather than buy right now. And its hard to meet anybody whos particularly sanguine on things. Nobody. Oh, well, tesla, they priced the offering well. They did price the offering. Amazon. They like that. They like amazon. Yeah. Salesforce. That does lead us to retail. Lets get to that quick. Sharing the earnings spotlight gap reporting profit in line, cautious fullyear outlook announcing plans to close 75 old navy and banana stores mostly outside ofhis country. Foot locker earnings matches estimates but revenues and comps down and ross stores down sharply on a quarterly revenue miss and weaker guidance for the Current Quarter and full year. Where do you want me to begin . Lets do ross. Comps up 1. 2, but looking at eps 64 or 67. California bad, florida bad, womens apparel bad. Ross stores, womens apparel, home goods look, theyll give you something. They all have a category thats good. Shoes were good. Shoes were good. Okay. But midwest business was good. But i didnt see anything i liked and i didnt like the forecast 1 to 2 . I dont need that. Forget that. Foot locker, i think the problem, helping from the street, steph curry, not enough room for under armour, too much nike at under armour. Comps did miss. Too much nike, not enough steph. Steph is a hero. Hes helping nba 2k sales staff. Steph is under armour. Very good speech. Dicks looking good because Sports Authority going under. And then gap stores, art peck, he says theyre doing great, could be delusional. He could be, although he does seem to be speaking pretty straight about amazon and the threat there. Yeah. And navy. Old navy closing japan. But theres a line in the Conference Call that really made me laugh a little. Someone from the retail family, old navy, problem, too much fashion. Well, what does he want . Unfashionable stuff . Too much fashion . I thought that was interesting. They pulled the tv ads for old navy, deeply disappointed. Guess what he appointed, a chief customer officer. Whatd they have before . Isnt that like a ceo . If you havent heard gap stores down three, banana down 11, old navy down 6, and as far as the guide they say theyre not affirming but 192 would make sense oh, im cutting numbers. I think they have to after this weekend. The word disappointing was used more in that Conference Call than ive ever heard. We already got a preview of this, right, a couple weeks back . Youre talking about a stock that was 30 bucks not that long ago. Elle brands cut numbers after two weeks right. But the word disappointing google, gap, disappointing, its very disappointing. But athleta was good, good read through to columbia sportswear. Athleta is strong, not disappointing. And art pecks not delusional. I didnt want to hurt his feelings. I just read it and said, wow, to me thats a little delusional. Well dive deeper on gap and some other names in a little bit. We want to get to the investigation into the missing egyptair jet. The Egyptian Military says the debris from the plane which had 66 people onboard has now been found in the mediterranean sea. Were live in paris with more on that. Hey, hadley. Reporter hey there, so several developments over the last several hours, certainly here weve been following the investigation very closely. We know french authorities are on the ground in cairo. We know an airbus expert is on the ground with them as well as working with egyptian authorities trying to figure out just what happened to egypt air flight 8804. The European Space agency came out and said one of their satellites picked up what looks like a potential oil slick about two miles long in the area where the plane is thought to have come down in the southern mediterranean. No confirmation on that from egyptian authorities, but what we have heard that they are absolutely sure pieces of luggage and piece of fuselage found about 180 miles from alexandria were part of egypt air flight 804. Bigger question Going Forward is what exactly brought this plane down. Theres a lot of speculation in paris here in terms of security of this aircraft. We know prior to from taking off from charles duh gal was flying 24 hours previous to that. Landing in tunisia, egypt, as well as in brussels. A lot of questions surrounding the safety of that aircraft and prior to final departure and if in fact this is terror we have not heard any chatter from groups like the Islamic State, groups like al qaeda and Islamic State in sanai as well. A lot of conflicting reports continuing to come out of this investigation. Remember we have authorities from the United States, egypt trying to Work Together here, but still a lot of conflicting reports, guys. Hadley, thank you for that. We wait for developments out of that story. Quick look at xerox here in the premarket. Executive officer ursula burns will serve as chair when xerox splits in two. She will not serve as ceo of either, although shell remain in her current position until the spinoff is done expected by years end. Geez. That was known. I remember hearing that from somebody. Okay, really . Maybe that was news and i didnt recognize it when i was told it. That last quarter was not good. Right now on the foot locker, basketball comps down mid single digits. Basketball. Basketball. And basketball is the hottest sport in the world right now. Thats nike. Steph curry, they dont have the right shoe. Not enough space for under armour or foot locker. And also of course mall traffic. But down mid single digits, basketball. I mean, geez, basketball everyones watching basketball. Well, just because youre watching it doesnt mean youre buying the shoes. You have to contradict me. I wasnt contradicting, im just making a point. Every womans watching tesla and buying teslas. Apparently. Y you cant get a tesla. Goldman sachs is talking well talk more when we come back on the mornings movers including yahoo, take another look at the premarket. Today is the anniversary of the s ps alltime high 2134 today last year. Were back in a minute. Hing a r. Amazing is moving like one. Real is making new friends. Amazing is getting this close. Real is an animal rescue. Amazing is over twentyseven thousand of them. There is only one place where real and amazing live. Seaworld. Real. Amazing welcome back. Shares of yahoo look down this morning, this on a the wall street journal story indicates bids for the companys core yahoo unit, which is up for sale, are coming in below what had at least been previous estimates. Journal reporting according to its sources bids may be between 2 billion and 3 billion. What i can tell you about this story after speaking with numerous people with the knowledge that the process is its news to them nobody has seen numbers of that type. In fact, what i will tell you as well, and this has been confirmed by a number of people is the numbers being cited by the journal of 2 billion to 3 billion would be lower than the lowest bid that yahoo received in the first round of bidding. Now, that does not mean that bidders wont lower their bids in the second round. Were expecting another round of bidding to take place and bids to have been received by lets call it early to mid june. It doesnt seem to be a hard and fast day deadline there. But at this point, again, people with knowledge of this process tell me that number would be lower than the lowest bids the Company Received in what people are saying is a fairly robust auction at this point. Of course verizon has made no secret of its interest in the yahoo core business from the earliest days when the cfo talking on Conference Calls saying they were interested. Could it be verizon would love to have it out there the idea its coming in lower so it can conceivably game the situation, i dont know, im speculating on that. But what i can tell you again from having spoken to quite a few people theyre characterizing this at this point in their opinion completely wrong. Well see whether it ends up being wrong. Again, you have no idea where second round bids are going to come in. Will they come in far below what was bid in the first round . That is not typical in these kinds of situations. Jim, you are talking about a business with over 600 million in ebitda, by the way that includes parts of yahoo that are losing money. So when you per forma some numbers, you might end up with a higher number, that multiple would have to be very, very low and the expectations would be you would see significant demunition in that over time. Does include royalties from japan, about 142 billion last year in 2015. That according to who im speaking to is still part of this stream at yahoo as of now, not yahoo japan the ownership stake, but the royalties paid from yahoo japan, so well see where this evolves. An important point for many investors out there is whether its three, four, five, six billion, youre talking a company that has almost a billion share outstanding, so you can do the math. Only a buck a share and kwhen you apply 35 taxes to it you get even less. So it doesnt really move the needle as much as you might think as does any movement in alibaba which of course they own, what is it 384 million shares. So thats boom. The key. Im glad you clarified it. Bob peck came out from suntrust basically saying the same thing. Saying what are they really selling, where do they get this number . David, untrustworthy. The wall street journal is a great publication, they do incredible work, but on this one at least my sources are telling me something very different than what theirs are. I think it depends on what theyre really selling. There are pieces that could be that, but not the whole thing. Its the core business. Thats it. It does not include yahoo japan stake. It is the core business, its what conceivably doing about 600 million right now as i said includes royalties from yahoo japan. Thats where things stand. Well see where things end up when we get to the second round. How many bidders are Still Standing and whether or not there would be, as i said, there would come well lower than the lowest bid they already got to get to this range. So it does indicate that we are closer to the four to five lets call it at least that we anticipated. Okay. The issue according to peck is what is core . Core assets, intellectual property, core. I think so. So stay close to this. Theres something going to happen. Well stay close. By the way, the inclusion of Jeffrey Smith from starboard on the committee that is of course dealing with the sale on the Board Committee dealing with the sale of the core business, interestingly there had been a back and forth would he fight to have to get on, he gives cover to the entire board now. Because jeff smith, who im told is intimately involved in this process in every way, if he says, no, its not enough and they walk away and decide to go another route, nobodys going to question their judgment. No. And i know rick hill, whos on part of that team thinks he can turn this around. Wouldnt mind a failed auction. The point they continue to make with these bidders. Yeah. I think theres a lot here, but i am concerned about alibaba. My friend Herb Greenberg thats more important. Alibaba moving significantly up or down has a much bigger impact. Im worrying about it. Okay. He checks off. Yeah, i know. When we come back well get cramers mad dash, one more look at the final premarket of the week. More squawk on the street from the nyse straight ahead. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel alive yes, mad dash for a friday. Always nice to say friday. Hope you rest that voice over the weekend. Oh, of course, are you kidding me . Where are we headed . All right, david, are you tired of china being weak, hearing those stories . A little bit. How about china is probably our strongest region . The momentum just keeps building, multiyear wave opportunity Applied Materials may be one of the most bullish calls i have heard in years. They have fabulous business, record revenues in china. They are doing 3d flash. Theyre doing organic light emitting diodes. Thank you for telling me. Unbelievable. David. Yeah. This call i finished and said, halleluijah, this is like the old days where you used to go through a tech call and say chinas good, u. S. Is good, business is strong does this have a readthrough to anything else . Semiconductor, its a whole new cycle. Remember, this was Tokyo Electron trying to steal this. Yep. But this company this Conference Call, if you want to feel bullish. Chip making equipment makers. Gary made me feel so good, david, even my throat didnt hurt when reading this Conference Call. Really . Felt like i was having dinner with you and like the old days. Its like gandhi 2 if they had done a sequel. I dont know what to make of that so im going to take it to the break, i think. Yeah. Its interesting, it was flat on the year until today. I know. Such a happy day for amat. Its a happy day. Well, a lot more happiness here of course on this friday on squawk on the street. Look, applebees, makes you happy. New hand cut steak 13. Go there with me this weekend. They found out whos been hacking into our network. Who . Guess. I dont know, some kids in a basement . You watch too many movies. Who . A Small Business in china. A business . They work nine to five. They take lunch hours. Like a job . Like a job. We tracked them. How did we do that . We have some new guys defending our network. New guys . Well, theyre not that new. Theyve been defending things for a long time. [ digital typewriting ] its not just security. Its defense. Bae systems. The call just came in. Shes