Carl king and jim cramer. State police is coming up. The first close above 2400 looking to add to it today. Busy morning with retail mornings, 13 s filings. Reports that the president disclosed classified information. Europe is mixed. U. K. Inflation the highest since 2013. Back home Housing Starts down unexpectedly for the second straight month. The ten year around 234. Home depot taking the street and gaining ground. The retail names taking a beating today. Did President Trump reveal classified information to the russians in the oval office . The white house is denying the story but the president s tweets this morning seem contradrikt t contradictory. How will the markets react. Instagram announcing new reactions like face filters that seem like snap chat. Its coming off an 8 gain as it climbs back from the earnings plunge. First up, talk some home depot. A bright spot on the retails earning front. Depot beats the street with earnings results. U. S. Comps up better than expected helped by an increase in traffic. Home depot reaffirming sales Growth Guidance for the full year. They raised just a touch, jim. 715 from 713. In the last few weeks weve been hearing from people who say, you know what, even home depot is not immune from amazon. And what this quarter shows although it could be brought down, what this quarter shows is that home depot is still in a category by itself. There are still things that are sold there that you either need their help or, frankly, that are just not something you want amazon look, a lot of people, this is their season. When you go to home depot, youd be shocked to see that hard of it is, indeed, gardening. Talk about something that amazon cant do. It c it cannot send you tomato plant flats. Its too granular, flowers. These are things that home depot sells us. When you say cant, you probably mean is not interested in doing. Well for now. Right . Wow. If home if amazon were to be able to do a garden store where they literally would bring you plants, i guess that would be it. I mean, that would be hard to believe, but home depot is a place you go, you talk with the people, you spend a lot of time trying to figure out what to plant, and as far as im concerned, this is all about that they have a bit of a personality. Ive been trying to figure out what stores do well. They have to have a personality. They have to be its that personalization. When you go to home depot you feel that it matters. And where else comes to mind where it also matters . Lowes would have that, childrens place because they have kids go through clothes. Foot locker, but i have to tell you, were going to have to talk about dicks because dicks was very worrisome. Maybe there is a recent foot locker although foot locker has done quite well during this period. But i have to tell you that the reaction is so vociferous when these Companies Miss that it is really incredible. Kohls did not really miss and the stock was crushed. Macys was a miss admittedly. Jcpenney starts off by saying, listen, were disappointed. Nordstrom was confused. It is absolutely true that when i look at dicks, dicks is unhappy, but i come back and i say, look, dont give up on the consumer but the consumer seems to have everything they want when it comes to apparel. They seem to have everything. The argument for pent up demand is getting harder to make. Last night you did say you thought some of these names maybe have come down too far too fast. Kohls has bought back 100 million shares. They are not in the mall. They can easily do some sort of a call ahead and well put it in your cart thing because of the logistics of it, but you know what, im trying to my travel trust owns t. J. , tjx, weve been selling it because im worried about retail. Weve left some on. Im like, wait a second. Even the companies that benefit from macys and jcpenney from having too much inventory dont have much of a say. You look at a kohls with a 6 yield that they can pay. Youre just saying, listen, this is a dead institution and im unwilling to say that. They had under armour in they sold really well. That yield is safe because of the Balance Sheet, but im saying that weve gotten a little too negative and maybe home depots going to help us here. Maybe it will help us. When you mentioned buy backs i always think of bed, bath and beyond which we talked about so much. Buy backs to nowhere. The reduction in market caps of these companies is stunning. I havent taken a look at bed bath in a while. Only 5 billion market value now. Down obviously as all of them are, but you you do keep wondering where is the bottom. You keep expecting the old days you would say, you know what, some private equity is going to come n. Theyve lost so much money in this sector. Yeah. Yeah. It hasnt been a great sector for p. E. To delve into. Gave it the Old College Try for a while. They did. They still own some of the names. Well, nieman got nieman, they j. Crew. Got sold. Im for getting now. Obviously j. Crew is still owned. The added wrinkle that some executives are going to meet with the treasury secretary, try to go to bat against b. A. T. Oh, my god. Thats going to start to fire up here the next couple of days. I keep thinking about jcpenney. I know the quarter wasnt good, the Balance Sheet is challenged. Youre talking about 100,000 people. Theres an article today in the wall street journal saying that theres labor shortages. I have Taylor Morrison homes on which is good. They are talking about labor shortages. Theres a mismatch. There are people who will be working retail and they cannot go build homes. Theres a terrible mismatch developing of workers in this country, between people who work with their hands and white collar people and the white color people, they are the ones including a checker is a white coll collar, people who have jobs that are not able to go shift into a world where we need people who drill, we need people who drive theres a tremendous truck and bus driver shortage, but you dont have the ability to shift if youre a checker, and thats something that were going to have to talk about. Thats going to be a very big theme over the next five years. Im thinking back. The last nfib, the biggest concern was not inflation or taxes, its canadas availability. Isnt that something . Isnt that something . Just the mismatcmismatch. I see it all the time when im listening to the Conference Calls. You will have companies that are constrained by not having enough high skilled people who can weld, okay . Right. Theres a Company Called illinois tool works, they have created a new kind of welding system that does not require an apprenticeship to learn how to weld because we dont have enough welders, but we have way too many salespeople at Department Stores. And what are they going to do . I dont know. And if were not worried about this, were still weve got our heads in the sand if were not worried about these people. And im sure that i hope it comes up when they meet at the white house, meet with the secretary of treasury, we dont know what to do, but well have to layoff people if they do that border tax. One would imagine were not yet the border tax is adding insult to injury. You cant thatll just put them all over the edge if that were to happen. It will. Jcpenney and Marvin Ellison told our own Courtney Ragan in an interview that that would be devastating. After the Conference Call the only thing that stood out was sephora. Alta is doing really well. Were still in the world where you walk outside and the apple phone takes your picture and its got to be absolutely perfect so you need that makeup. Just to circle back to your point about private equity, buying some of these retailers some time back. Right. I mentioned nieman marcus. There were talks potentially with hudson bay which is another leaf verdict levered up company. They never went anywhere with macys. They were tossed with nieman marcus. 6 billion and it is not worth that anymore. Apparel. Apparel became something that amazon got very good at. And i think one of the things that people who dont use amazon should know, the return policy. You always had this nordstrom, you could return a faded shirt. Ive got to tell you, i return things for amazon. Stick it out there, theyll pick it up. Amazons a little bit easier to try things on. I was at a gap recently. I dont know when the last time you were in a gap. I havent been in a long time. Thats a shock. That goes without saying. Thats like nvidia not being up. I was in there and there were not enough changing rooms. Not enough changing rooms because they scaled back that area. Oh, i thought because they were all so busy. No. House is a better changing room. They were giving stuff away. J. Crew i bought boxers for 4 bucks. They had shamrocks on it. It was after st. Patricks day. Nobody sees them. Yeah. Well, yeah. Chip says lets move on. I dont blame him. Were going to get Industrial Production. We want to get this in the a block. The white house is refuting the story first reported by the Washington Post which said the president revealed highly classified information to Russian Diplomats during their Oval Office Meeting last week. This morning the president tweets about the meeting, quote, as president i wanted to share with russia at an openly scheduled white house meeting which i have the absolute right to do facts pertaining to terrorism and Airline Flight safety, humanitarian reasons plus i want russia to greatly step up their fight against russia and terrorism. Day 117 of the administration, jim. Again, were here looking at a market that doesnt seem to care. I think it doesnt care because to some degree like i said at the top of mad money we dont expect anything anymore. I spoke to chuck today what . We dont expect anything anymore, why isnt the market reacting to that . Many people would argue there is a general expectation of things coming that will be beneficial. Do you want to sell home depot because there may be no tax . Do you want to sell stoettas. They are animal health. I know what they are. Yeah, xu you asure, it wouldt if we got it. He was helped by the deregulation. The deal wilbur ross made to sell cattle to china. Our cattle are better than our cattle. When you look at these stocks, you dont want to sell them off of the president. You want to sell aig off the president. You want to sell help me here. Cocacola. I want to sell cocacola because the president is busy treating about youre saying the market is not over valued. Thank you. 17 times times earnings for next year. And whats he tweeting now . Hes got a i dont know. Theres been a few this morning. Hes helping twitter. Twitter is moving up. Well get Industrial Production. Well talk some ford reports of layoffs. Welcome to holiday inn whether for big meetings or little getaways, there are always smiles ahead at holiday inn. You realize the smartest investing idea, isnt just what you invest in, but who you invest with. Lets get Industrial Productions. Rick santelli. Good morning, rick. April Industrial Production is a good number. Yes. Up 1 . Up 1 . Much stronger than we were looking for. Utilization rates also stronger. 76. 7. So that follows 76. 1. The 1 follows a revised up. 4. The market in terms of Interest Rates doesnt seem to be paying too much attention, but if youre a micro technician keep an eye on 232 below the market. 235 above the market. If youre a macro guy its easy. Dollar index is down over half a cent below some very key levels. You really want to Pay Attention today to the dollar index. Carl, david, jim, back to you. Thank you very much. Rick santelli. Rick is so right. This dollar back to november levels and when i see these numbers the when i see the numbers out of the eurozone of 5 . Oh, my god. Really is a major move. Look at deutsch bank. Germany is very strong. Im starting to see good signs in france. Were going to talk about ford. Ford is not doing well. I tell you, companies that have business in europe, theyre doubling what were doing here. Its really a good story. Euro at a sixmonth high today. U. K. Inflation, two seven. They have to raise rates. Look. Draghi has to stop any sort of quantitative easing and then theyre going to have to reconfigure. I would rather a german bond, it should be three times german ten year yields. 42. It should be it should be higher than us. Theyve got more strength and, look, we were going to do a lot of you know, i felt we were going to do a lot of physical were not doing anything. Germany will probably do more because of all of the refugees. Theyre committed to helping the refugees. They have a very big opportunity. I continue to like europe. I really like asia. Chinas doing on infrastructure. Holy they have tripled the number of big earth movers that they bought last month. Chinas making major moves. If it werent for china infrastructure, we would be hurting. Cummings would be hurting. Cat would be hurting. Biggest user of solar power, too, in the world, china. They keep adding that. What can i say . Chinas china is doing a lot. Theyre taking lng, theyre taking Liquified Natural Gas. Speaking of lng, have you looked at shaneer. Doing good. Natural gas isnt hurting it. Back to 50 bucks. There was a trade that people havent been talking about where they gave natural gas to poland. Why is that significant . Because gazprom s could be sending coming from cheniere and then noble energy doing a pi pinscher move. You may not have a strangle hold on russia the way you do. Thats important. This poland i mean, this ive got to tell you, cheniere, theyre one of many were going to have a very big dominion Liquified Natural Gas right here. Wait. Im sorry, were going to have a what . Do it on the east coast. Dominion an export terminal . Yes. Theres also freeport which is a private company. Right. Enormous. But dominions going to start in the fall and that will be liquefied theyre all sold out. They all presell for many, many years. Its like the japanese. You can raise the money and make it work, its an incredible thing. I think we have to watch the strangle hold of russia. I have to tell you, if the president were able to focus on this stuff, theres a good story to be told. Hes focusing. Did he like our lineup . Our phil lebeau has confirmed these reports that ford has to cut about 10 of its global work force. Ford told cnbc it doesnt comment on speculation, that its not announced any moves related to personnel, but that would be 20,000 people out of 200,000, mostly salaried they say. Yes. Key. There was a comment that wasnt picked up in the journal. Araj nair, hes the chief technical officer. Hes saying hes willing to do a deal with weymo. Why is this important . Ford is spending like mad to do autonomous driving. If theyre willing to partner with weymo, which is alphabet, weymo is way ahead of everybody else. Ford is a distant, very distant in this. This would save them a lot of money to partner and take the waymo. Waymo has partnered with fiat. They want to partner with everybody. Theyve announced a partnership with lyft. They hate uber. Lyft is owned in part by gm. Theres a lot going on in the autonomous driving world. Look out. Waymo is trying to be switzerland. You know who else wants to be switzerland . Intel. When they buy mobileye theyll build the chips cheaper than weymo. This will be between waymo and no longer ford and gm. Names we were not discussing two years ago, thats for sure. Well get cramers mad dash after the break. Well count down to the opening bell. S p again coming off the first close after 2400. The dow has not had a record high of its own since march 1st. , theres no other way to say this. Its over. Ive found a permanent escape from monotony. Together, we are perfectly balanced, our senses awake, our hearts racing as one. I know this is sudden, but they say if you love something. Set it free. See you around, giulia its been over 100 years since the first stock index was created, as a benchmark for average. Yet a lot of people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Why invest in average . As we head to the opening bell, i want to talk pfizer. Very cerebral piece by citi. Pfizer, the numbers are way too high. They are well below everybody else. Second, they have too much Medicare Part d exposure. Thats something new. We started to hear that maybe some people, the government maybe a little bit sting jier. David, listen to this. We continue to believe that there is major transaction risk for pfizer that they have to buy someone. Now we knew that they were going to that was their old pfizer. David, i find this to be a little bit a bridge too far in terms of why not to like pfizer. I dont think they want to do a big deal. I dont know. I mean, they certainly have not been afraid to consider the big deal in the past, whether its an as stra seneca or allergen which they were very close to closing before the government basically shot that deal. Right. Specifically made rules that would doom that deal. They did the medivation deal. No. Not a large deal. They kind of critiqued that. They dont seem to care about that. Now what i find interesting, david, is muerck reported some big deals. J j, nobody cared. This group is under pressure. I wonder whether the hmos are not under pressure, the hospitals arent. Theyre taking it out on the drug stocks, david. Hard to understand, isnt it . Yeah. Well be watching those stocks and so many others when we get the opening bell a few minutes from now. Stay with us on squawk on the street. [pony neighing] what . Hey gary. Oh. Whats with the dogsized horse . Im crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. Isnt that right warren . Well, you could get support from thinkorswims inapp chat. It lets you chat and share your screen directly with a live person right from the app, so you dont need a comfort pony. Oh, so what about my motivational meerkat . Inapp chat on thinkorswim. Only at Td Ameritrade. Predictable. The comfort in knowing where things are headed. Because