Our road map with more retail reports. Lowes and target disappoint. But there are some retailers bucking the trend this morning. Well fill you in. Plus, Donald Trumps campaign shakes up its staff again. Trump doubling down on his strategy for the final stretch. More upsets in rio, more medals for u. S. Gymnastics. Well get the latest olympic tally from andrew in brazil. But first up, stocks are looking to rebound from their worst session in two weeks after posting record highs on monday. Wall street awaiting the 2 00 p. M. Release of the fed minutes from last months meeting. Meantime yesterday, new york, fed president dudley and atlanta fed president lockhart said a rate hike is possible at the fomc september meeting, guys, only question is whether that hawkishness is going to be reflected at 2 00. Yeah. I mean at 1 00 first when James Bullard talks and then at 2 00. I think its been a noisy message from the fed officials not just because of what theyre saying but theyve been consistent saying we do expect the conditions will be in place for perhaps another rate hike. The market is not getting to that point of pricing that in, though. I think they have that example in mind of the spring when fed officials made the concerted effort to drag the market toward the idea there could be a summertime rate hike and then it basically went to nothing. Well, remember, when they raised Interest Rates back in december, they expected four hikes during this year. How many times have they walked that back. First they did it to two and now theyre expecting one and i agree with with you. Look at the u. S. Dollar, the dollar is near a threemonth low and thats going to be a key for trading because even as we saw the bond market, the fed fund futures priced in more than a 50 chance that fed does raise rates in december, the dollar has been weak and as for the action in bonds were seeing some selling, but a yield from 150 to 158 isnt exactly high yields again. It does, though, pay to watch some of the Telecom Utility sectors which were hit pretty hard, the Interest Rate sensitive stocks, potentially vulnerable here to any tick up in rates. Mike, your mystery trader has gone shortterm sell. Mystery broker. Yeah. Lets not make too much of it but this is a guy i followed for many years and pretty good on tactical positioning and sort of feeling when the weight of the evidence says maybe weve run out of the fuel for a rally. I dont think he thinks this is kind of the ultimate end of the bull run but basically says look, the average stock is kind of over bought and is pointing out jackson hole coming next week, the fed conference, will inject that much more uncertainty, anxiety about the path of fed rate increases. Whats a mystery trader . This is somebody i go back to when i was writing for barons and he got this following, completely accidental thing. Calls were pretty he was. Hasnt caught all of them. This was a tactical move saying sentiment has gotten to a point where its no longer so skeptical in helping the bull case right now. I can tell you one thing the moves have not been big. We saw a half a percent selloff for the s p 500 yesterday and that was the worst in a few weeks. We havent seen a 1 move plus or negative in either direction since, what, back in early july. Right. Although ryan, great technician points out, today, august 17th, higher 76 of the time, only two days of the year are higher with more frequency, november 24th around thanksgiving, and december 26th, believe it or not in terms of frequency of market days that are green. What about hes jinxed it, of course. We figured it out. Seeing green on the futures. Weve got the minutes as we mentioned. Also, another busy day on the earnings front. Target among this mornings losers. Courtney reagan is in texas with more ahead of her interview with jc penney ceo. Courtney, expectations were pretty low for target and they still managed to disappoint. Exactly, vare. This is just an example to show you retail is choppy but targets forecast is really pulling down the shares premarket because for earnings per share for the Second Quarter target beat by a wide margin, reporting 1. 23 per share, analysts looking for 1. 12. Revenues in line and the comp sales metric falling, the first negative number that weve seen in eight quarters and that is a big issue. Now the signature categories for target, style, baby, health and wellness, 3 Percentage Points higher but still that overall number very disappointing. And also the discount retailer is lowering its comp Sales Forecast for the rest of the year for the third and Fourth Quarter from somewhere between flat and negative 2 . Also lowering its earnings per share range. What the big problem here was, traffic. Target saying on the Conference Call traffic was down and it hit across all categories, electronics particularly weak. Down double digits. And apple products responsible for about a third of that decline. The retailer says its going to revisit its grocery plan. We know that grocery is a traffic driver and it hasnt. Where target wants or hopes it will be. Perhaps well hear a little more from them soon about what that means when it when they talk about revisiting in the second half. The transition to cvs as a pharmacy, a problem. Some disruption in the pharmacy benefits and plans for many of the regular shoppers that filled their prescriptions there at the cvs pharmacy. If we could turn and look at the online comparable sales, those did grow 16 . Still, thats the slowest growth rate in about six quarters and at least six quarters. Remember, targets investing 1. 8 billion in its supply chain and ecommerce over the course of this year because it knows that it has work to do there. Here in texas analysts are waiting to hear from jc penneys Ceo Marvin Ellison his first Analyst Meeting as ceo. He took over that position officially just over a year ago. We do know that well be getting a threeyear plan. We anticipate that means some more financial metrics likely towards the end of the presentations today. Probably in the 1 00 hour is what were looking for there. Jc penney as we know has had a decent progress record but still a long way to go for what the retailer wants to achieve and well talk about it all with Ceo Marvin Ellison when i sit down with him in power lunch later at the conclusion of his first Analyst Meeting. Sara, back to you at the new york stock exchange. A lot to look forward to after the minutes, the interview, thank you. For more on how investors should be playing Retail Stocks as we get the earnings joining us now, mike glasser retail analyst at u ubs and jan negativen. Good to see you again. Mike, thanks for joining us. Mike on target youre neutral on the stock. Target 73 for the price. Why did the turnaround seem to stall this quarter . Targets in a precarious situation and a very challenging retail environment. Its progress started to stall this quarter because it didnt see very good electronic sales as your setup piece mentioned. Apple was down about 20 , dragged down the total com by 70 basis points. Food, thats an area of paying f pain for target that continues. Pharmacy business under performed. You will remember it sold its pharmacy operations to cvs. Its going to take a while for target to turn this around. Its a very big ship. It moves slowly and its basing a lot of challenges at this point. And jan, really focused on their digital and ecommerce business. Courtney mentioned those sales up 16 , which sounds good, but actually, is a much slower rate of growth than what target had been seeing. Whats wrong there . What have they been doing . What do they need to be doing more to catch up with walmart. Com and, of course, the big one, amazon. Com. Actually that was the brightest spot on their release and yet it was disappointing at 16 . Theyre doing a pretty good job on digital. Thats really not their problem. Their problem is, they cannot fix grocery. And grocery is dragging the business down. Grocery has been 20 of the business for a long time. It doesnt get the traffic it needs to get. It was a bad idea in the beginning when they initiated key fresh. Its never worked. I dont see how they are going to fix it and compete with walmart and grocery and kroger and grocery when you dont have a serious grocery offering and i dont think they can be a great specialty player because i dont think people will go to target for that kind of grocery shopping. To saras question, i mean, 16 on digital. Down from 23. Is the 40 goal, is that a thing of the past . Well, i think it is a thing of the past and i never really, you know, 40 was a big number but if they can continue to grow strong double digits in online, thats a good thing for the business. But theyve got to fix the base business. Theyve done a good job at retailing 101 as far as getting furniture to be better, home, fashion, theyve done a good job in there. A really good job on retailing 101. They havent done anything for grocery and its too big a segment and i dont see what fix is. Trying to get a fix on target as a stock, its valuation, at a big discount to walmart the sway the stock looks like its going to open today as a 3. 3 dv dend yield advantage over walmart. Whats priced in terms of targets need to continue to try to restructure and get things right . Mike, on the new numbers where it shakes out after this, its trading at a low teens multiple. On next years earnings. Its got an attractive dividend yield but the question is, can it sustain its profitability in this difficult environment . I look at jans point a little differently. Yes, grocery is a problem, but its a part of a larger problem which is target is having a hard time generating traffic to its stores on a consistent basis. Thats not an easy problem to fix. Most likely very expensive to fix. Thats going to put pressure on its earnings. Thus we think its going to trade at a discounted valuation and we think its best to approach the shares with caution. Speaking about a discounted valuation, wondering about lowes. I think you cover it as well. Also disappointing on the comps up 2 , about half of what analysts were looking for and lowered their earnings guidance. So what why is home depot seeing the improvement, the spending on the Home Improvement and remodeling and lowes not as much late spring, early summer . Sure. So first i would say the stock is indicated down 5 of premarket. We think thats an attractive opportunity. The Home Improvement space is a good one. So your question on why did lowes under perform home depot this quarter our theory is that lowes a little more levered to the seasonal categories, like lawn and garden. It outperformed in the First Quarter on that and most likely under performed on the Second Quarter. So its really a weather issue. Over the long run these two businesses are going to trend very similar to one another. And the category is growing midsingle digits. Its rare for that in retail. Theyre leveraging that to generate 15 to 20 Earnings Growth. Its trading at a reasonable multiple. We think this is an attractive opportunity to buy the stock. All right. And as you say, it looks set to lose a lot of it s gains from te year up 7 . Thank you for joining us on retail. Mike glasser from ubs and jan niffin. Cnbc contributor. Thank you. When we come back Andrew Ross Sorkin is live from rio with the latest from the olympic games. Also ahead, the always outspoken casino magnet steve wynn on everything from macau to donald trump as they announce a new property in macau. Another look at the premarket after the biggest drop since august 2nd. More squawk on the street live from post nine in just a minute. Miles per hour. 0 to win, every millisecond matters. Both on the track and thousands of miles away. With the help of at t, Red Bull Racing can share critical information about every inch of the car from virtually anywhere. Brakes are getting warm. Confirmed, daniel you need to cool your brakes. Understood, brake bias back 2 clicks. Giving them the agility to have speed precision. Because no one knows like at t. Oh hey john, im connecting our brains so we can share our amazing trading knowledge. Thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at td ameritrade. Lot of things going on in rio. Womens golf kicks off, good news for gymnastics, but a surprise in volleyball. Andrew ross sorkin is live from rio with more. Hey, andrew. Thanks, carl. Thats right. It was an upset on the beach in volleyball yesterday as team usas Kerri Walsh Jennings and april ross, that combo were defeated by brazil. This was Walsh Jennings first olympic Beach Volleyball match loss. She is 26 wins, one loss. The duo is now going to be facing another brazilian for the bronze medal today. I mean, as tough as it gets as an athlete, one thing to lose and a way to lose you never ever want to lose by losing in the final minutes of the game. Im proud we stuck together and we stayed. Down 1916 and said we got it. We never had the mojo today. Its disappointing and really heartbreaking. But we earned a right to fight tomorrow and make it better. And then in gymnastics simone biles has proven she is nothing short of golden taking the top spot in the floor exercise yesterday in a near perfect performance. Her teammate aly raisman took silver that cap off an incredible olympics not only raisman and biles but the u. S. Gymnastic team. We caught up with Madison Kocian about the teams legacy. We just wanted to inspire little girls just to always keep believing in themselves. I think every member on this team have an injury like at the beginning of this year somehow, so, you know, we just never gave up and just kept pushing towards that dream. And guys, were also following two developing stories in rio. Rock lochte, you might remember over the weekend, the big news was security scare that he was held at gunpoint he said by police here in brazil. Originally the ioc said it didnt happen or u. S. Team said it didnt happen but then it did. A story from the Associated Press citing police here saying that they cant find evidence that it happened. On the other hand, we have lochte now saying he didnt originally say it happened because he was worried he was going to get into trouble. So we have that story on tap. And then the other one were trying to follow here a member of the ioc executive board taken into police custody. Nbc has confirmed hes being questioned on a series of allegations that he was involved in helping participate in a ticket scalp iing situation and were going to be following that story as well. This has been a pervasive problem at the olympics for many, many years, where olympic teams, athletes, families and others have sold their tickets to sponsors, something clearly against the rums. Well try to bring you that story as we get more information. Well see you in a bit. Thank you for the update from rio. Thank you. Donald trump shaking up his president ial Campaign Staff as he looks to reverse the slide in the poll numbers. Chief washington correspondent john harwood is live in d. C. With the latest. What can you tell us abe the strategy here . Well, i dont know if strategy is the word you would apply to it, sara. Its more like long [ inaudible ] within the trump world as his poll numbers get worse and worse. Donald trump has taken Kellyanne Conway a longtime republican message strategist and pollster, made her the Campaign Manager and promoted or hired an executive from Breitbart News, which is an incense areary, not particularly reliable outlet which has dogged mainstream republicans for a long time and made him the chief executive of the campaign. Now this is not inspiring confidence in people who have run republican campaigns in the past and i think one consequence of it is not that its likely to turn Trumps Campaign around, because he has a significant deficit, it is few people in the republican political world believe its likely he can turn that around but it is likely to shift the move of resources, ive talked with several republican strategists this morning, likely to accelerate the shift of resources from Trumps Campaign to house and senate races. Republicans increasingly are hoping that even if trump loses as they expect, that he will not drag down the House Majority or the senate majority. The senate is in greater danger because theyve got so many seats that theyre playing defense on, especially in obama led states. The house is considered safer, but if trump actually implodes, the House Majority could be in danger and i think republicans are likely to be encouraged by this move to try to shore up house and senate campaigns. Yeah. Big open questions. John, thank you for the update. John harwood in washington. When we return, were counting you down to the opening bell and the fed minutes this afternoon. Art cashin will be here at post nine with his market perspective. More squawk on the street from the nyse when we return. Andrea sikon. Medical doctor from cleveland clinic, watson, lets review the Electronic Medical record of the next patient. No problem. Its a pretty huge file. Done. Sorry for the wait. That was quick. As part of our research, i also compared lab results with notes about prior treatments, then cross referenced it with thousands of medical journals. And i get the benefit of much more data, and a lot more time to plan the best treatments. I stay focused 24 7 and never sleep. You sound like a lot of medical students i know. When a moment spontaneously turns romantic, i stay focused 24 7 and never sleep. Why paus