High and oils worth watching on a cautious note. Best buy surging. Hows the turnaround plan looking now . Oil pulling back. Why goldman sees little upward price action for about a year. Toll brothers on the rise. What their report tells us about the housing market. But first up, the big surprise in best buys quarterly results. Up point 8. Guidance goes higher for the coming year. Its funny. A lot of people were expecting this would be a story about gaming, maybe weaker and cell phones maybe weaker. Guess what. They were weaker but appliances, which are on fire as we know from home depot last week, the appliance numbers extraordinary. Very high Single Digits and then something those of us who remember the old days, the housing days of best buy before the crisis, home theaters. People used to buy home theaters as part of the investment in the home. Its back home theaters very strong. Home theaters, appliances, but the end of it is wow. Theres a spend thats going on for the home that we were told of home depot hearing of the chief merchandising officer of best buy saying look where people spending it. Spending it to make the house worth more money. We saw cautious commentary last week about a maturation in the 4k cycle. Clearly not happening . Kind of irrelevant. I mean, i think that when we go off yeah. Certain things happen. I just want to come on from where i was. I would have liked to come on home depot because they explained, listen, theres 4. 3 months of inventory in housing. Okay . Typically 6 months. If we get if we had the household formation of 2000s, we would have 4. 3 million households. This is a new response to the fact that people are making their homes even more worth more because they sense its going up in value. This is quite different from even two years ago. Thats when people were like betting that best buy would be awful. They bought back a lot of stock and they had tremendous faith. It is not a cell phone play. Its not a wearable play. Its an appliance play. Boy, people are spending on appliances like theres no tomorrow. Short interest in the name gone 2x in the past several years. That article, sometimes tough. Talking about selling on the port of jolie and arguing investors are less certain. I care more about angelina i dontly jolie. When i see this strength, i say to myself is, all right, the fed if janet yellen were to read through best buy, she comments on the bio techs, anythings possible. She would say home theater sales are strong. We have got to raise i mean, because thats just like this kind of well, you know what . Consumers feeling too good at the sam time, i think its a reversion like retailers. Reversion to the old days. Nonpromotional, consumer feeling little bit better. I think job growth where people feel better about their job. Home value appreciation. And i think its a sense that people just are looking too much at cell phone. And not looking at the other things that are going into a house. Jcpenney call, ellison, is he fabulous . Talking about the need to have more home spend in Jcpenney Stores because appliances are giving them eight times the margin of what was in the space. What was in the space probably, i dont know, boxer shorts. Shower. It is really clear that the smart merchants have caught on to this theme. Jcpenney is very smart. It aint the old jcpenney and aint the old best buy. Im impressed. People short best buy say it cant be maintained but home depot saying to 2018. Could be a long and nasty short. Queue thomas hops. Indeed. Do you believe that one of the surprises of the quarter in general has been the lack of promotion or maybe an easing of promotion . There was a moment in the fabulous Urban Outfitters call, the stock was up. They liked it. Where hain, whos a great merchant, its regular. Regular prices. I almost fell out of my chair. Regular. When was the last time you had regular pricing . I mean, other than target, i dont know, maybe the weather was bad on targets side of the street, not clear to me. Other than target, i heard a lot about nonpromotional. Wait until pvh tomorrow. I wonder if they dont say nonpromotional. You listen to the 0 calls and what did well . What was like denim. Denim is huge. Denims back and bigger than ever appliance, denim, all these things are remember the mall . Pink. Have you been i dont to no. The answer to that question is no. I see people at pink. The register is ringing at pink. Pink. Bath and body works which did quite well. Yeah. Best buy call. I think people start questioning their overall negativity and then go to zoes kitchen, a chain that was doing quite well and say, wait a second. Theyre not going out for food. I have General Mills on tonight. Ken powell. People are staying home. Well, because its more expensive to eat out than relative to groceries. At the margin. The labor costs are up. Wages. They got too expensive. Too expensive to go out versus stay in. Except for if you want to do something for the home and wait a second. The large ticket items at home depot, the plus 900, large ticket items, theyre not feeling bad. Theyre just spending their money more wisely. Putting investments in. Ellison, i urge everyone to read the jcpenney call saying theyre spending on furniture. Very interesting. Lets seema dress firm with a bid and people want the lie down on the mattress before they buy it. Seeing furniture, you want to feel what it looks like. Ethan allen. Near 52week high. Versus wayfair, the Online Furniture didnt do as well. You come back to people saying, i feel great about my home. I dont need to have a fancy dinner. Yeah. I think thats really speaks to collective zeitgeist right now. Goldmans reiterating the forecast through next summer. And the view that the Oil Price Recovery is fragile. They say, quote, while discussions of an opec freeze and a weakening dollar have been catalysts for the sharp reversal of oil prices this month, we believe neither will be sufficient to support prices much further. Essentially saying any cuts can be made up for very quickly. You know, what happened again, last week, we heard that there was definitely going to be a russia saudi agreement. Okay . Whats happening is people have to recognize this. You hear theres an agreement, dont believe it. s in everybodys interest to pump more. Saudis, the possibility, they dont talk about they talk about nigeria and iran. The capability of the iraq, iran, libya. We have to recognize is that capability of the permia. Contra resources did a deal of ac acreage of texas and mid land and you can make a fortune. Go back to see sheffield in pioneer. Prices through what the saudis make and existing pipe and get it out there to refine it. Were seeing the glut continues and we get to 48, 50. The Oil Companies in our country sell futures and knock it down to 39, 40, where everyone shuts down and saying we wont sell our oil there. Meantime, saudis keep pumping. They dont want to lose the market share. It is its i thought the goldman call was good. After goldman be erratic, too negative, too positive. This is good. This is the heidi thing for them. Too cold, too hot, just right. Yeah, yeah. Worstcase, bear case 20. That was the porridge too hot on that call. This is a smart call. What about the oxi ceo saying its not profitable until 80 . Does that still exist . I can show you north dakota regions where they just you could say its 60, 70. I have outside of denver, may be 70, 80. Go for running out what was cheap and going higher. All the good stuff is done. Perm iran is just the way it was in giant. When they filmed in it martha, i dont know if youve been there. Gorgeous sunset. One of the best movie posters ever made. Yeah. Toll brothers posting a profit of 61 cents a share matching estimates. Revenue above forecast up more than 23 . Sales and prices increased from a year earlier. Backlogs up 19. Average selling price now 8. 42 from 7. 24 last year. Yeah. Toll reports, this is something for people at home to recognize. Toll reports and immediately the story line is they missed. I go over. I know bob toll from the old days because im from philadelphia. Theres like 47 loins and 46 of them are good and one to pull which is that the average selling price 831,000 versus 841,000. They bought 2 of the shares back. The net signed contracts rose 24 . Net income up. Units up 24 . How can be bad . This is a good quarter from a company of a stock languished and referendum on the prices of brooklyn prices cant be maintained. Some of the urban properties but a smaller part of the business saw number of units softer than expected. Well, you know, i mean, how much will you pay for a three bedroom overlooking the Brooklyn Bridge . Im part of that conservancy. It is nice. A dynamite view. A certain point, carl, you know, i can i watch netflix instead of the view. Sit there and, like, that sunset. Doesnt require 4 million. Netnet you like the quarter . You like toll . Yes. I do. But now someones going to say, you idiot. Janet yellen speaks friday. Forget what bob toll says. I dont know. Those trading, theyre going to janet yellen says rate tightening and why did kramer that moron talk about how good toll did . Theyre concerned about Interest Rates. By the way, a programming note, Toll Brothers ceo will be a guest on power lunch today. Thats, of course, 1 00 p. M. Eastern time. Hes very straight shooter. When we come back, big winner at the rio olympics, maya dirado, conor dwyer join us this morning. Squares rebound continues. We have an upgrade today. Well look at whenats ahead fo the mobile payments company. We have now 31 sessions without a 1 move on the s p. More squawk on the street from post 9 in a minute. This just got interesting. Why pause to take a pill . Or stop to find a bathroom . Cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis and a 200 savings card stop taking cialis and get meor keeping a Hotels Guests cuttinconnected. I to 35,000 fans. Businesses count on communication, and communication counts on centurylink. Squares on the rise in the premarket. S stifel upgrading from hold to buy. Stocks up 34 from the june lows. Part of their argument is that larger merchants are warming to it. We have seen this go back and forth, the starbucks deal that eventually faded. Ill tell you. The cfo there, exgoldman and the fantastic cfo of goldman is on the square board and i think together they have given you much more confidence about the lending model they have. They have a good look at the payroll. Now, i use my we use them for caviar for deliveries, just full disclosure. I happen to think theyre very good. If larger merchants do use them opposed to like places like my place, sorry, sorry to my place, but, you know, it could be very good. Remember, if they have a good look at your cash register, they know that you can give you advances, a 6,000 advance. Thats very high rate. So even though i dont think thats score, the stifel guy likes that and talking about sustainability of the software programs. This is a highGrowth Program and david farber would say they trust their people. The way you look at it is not to take into account the stock of the employees. But and so it doesnt look it looks super expensive. A high growth guy will like the fact they raised estimates and i think that sarah, again, i think we talk not enough about cfos on the show, sarah fryer has given people a sense of comfort. You dont think its a Credit Company like signet or like a lending club. This is a company that has a Business Model that if it catches fire people will like. But i like earnings. I just like earnings. Just got this thing about earnings. Larger merchants, she writes, 6 of total gpv right. In 14. Now from 6 to 14. Reflecting growth of 80 year or year. You know, i mean, i dont want to belabor the Conference Call but they talk about the larger merchants that have gone and it was like two guys from harrison, an old name for a twoguy show, i hadnt heard the clients and reminded me of facebook started and talked about a couple of games i never heard of. You need to square has to win somebody big, a big regional. If they do that, then i think its i almost felt like when i read this maybe they know theres going to be a big win. Not that fryer would give them anything theyre not supposed to have but my criticism of dorsey running two companies and concerned about it. Boilerplate bit of lingo to be careful of credit and then i look at the board and i think david viner said that of goldman. Wherever he is he puts the to be sure. So i felt more comfortable. It is for high growth people. Those that like high growth, square can work for you. Maybe theres two two dorseys. Thats some say thats two cramers. Thats right. Interesting you mention the comfort of a good cfo brings you. That discussion with valaent yesterday. Wow. That continues. He talks to the journal today. Well have that later. Hes so good. I believe him. I believe him. Well talk more about valaent. You, of course, a big, large move yesterday and decline through the course of the day. Totally. Talking about that in a minute. Well count down to the opening bell. Another look at the premarket on this tuesday. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Real is touching a ray. 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. 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I dont want to bet against mr. Smucker, very good ceo. Good company and had the greatest run. I have General Mills on tonight and a much more consistent player and a dividend and buyback story. Zoes kitchen, carl, was the one that people talked about as the breakout mediterranean more natural and organic you know, not unlike chipotle. The chipotle of Natural Organic. Give them credit. A lot of stores in texas and said theres a slowdown, no. You have a terrible confluence of higher labor costs, fewer people and this is a you know, big takeout, too, in the takeout didnt help them. Sure. Again, carl, this was a company that people just said they have the formula because thats what people want is that mediterranean light food. The formula aint working for anybody. Theres a real slowdown in restaurants. Initiates a bunch of names. Yes. Sonics, dardins. Mcdonalds a neutral. Its a quandary. Come down quite a bit. We were excited about mktd. I dont want to theres another guy. Easterbrook. People want to bet against him, be my guest. Look at this. He took it all the way up and people talking about oh my head and shoulders. Blah blah blah. Pay attention to the dividend. Its big there. They have financial flexibility. Labor costs are going up. And people arent going out as much. General mills tonight. Its very interesting. He said that people like to snack during meals. This is new. Its interesting because like the theme of his is they like to stay at home. Yep. And they eat more natural and organic. Looks like they rather eat at home natural and organic than go out. Chipotles still weak. Remember when we talked about the cocooning, the phenomenal of staying home, watching netflix in your new home theater, not going to restaurants. Its back. Its back youre wearing denim when you do. Because youve just bought the home theater package of best buy. Welcome to 1997. Yeah, yeah. Unbelievable. A lot more to get to this morning. Opening bell, a couple of minutes away. 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Exxonmobil, thats who. Were working on all these things to make cars better and use less fuel. Helping you save money and reduce emissions. And you thought we just made the gas. Energy lives here. Youre watching cnbcs squawk on the street live from the financial xhal of the world. The opening bell in about two m