penney and abercrombie had something in common despite the crummy results. they were both heavily shorted or bet against by hedge funds which were counting on the disastrously performing companies to keep, well, performing disastrously, but these were mirror images of walmart. if a company does exactly as badly as it was supposed to do and not worse, that doesn't bring out new sellers. in fact, in the case of a & f it brought in buyers including the company itself which announced a boosted buyback. that meant those who bet against these companies didn't get the expected supply of shares from new sellers that would have depressed the stock, so the shorts were forced to cover by buying back the shares at a higher level. a spoiled short often yields a very terrific move up. some areas where the market makes sense to the layman. home depot, macy corp and housing bottom and spending, stunned the market. stock up for several days. as it's dawned on people that the long national housing nightmare is truly over and the stock broke out of its range. pet smart blew aw

we've seen an incredible move in abercrombie.ryone was avoiding it like the plague with european concerns. now you see people starting to dip their toe back in abercrombie. are they flipping out of tiffany and into something else in your space? >> yeah. i mean, it's hard to say how much is short covering versus real buying. but i do think that for high quality names like tiffany, there are real buyers and people who look at the valuation and say, okay, now that numbers have come down this is typically a good point to enter that stock. abercrombie, i'm not quite sure. i think that's a little bit of a different story there. i think there was heavy short interest. and the stock is -- is very inexpensive. but there's also a lot of uncertainty on the horizon for them. i don't think it's quite in my assessment rises to the quality level of a tiffany, something that a long-term investor would probably be looking to buy on the cheap. >> liz, you're done. thanks so much for joining us. we appreciate it. >> thanks for having me. >>> big sh

abercrombie had trouble in europe as well. >> we know that abercrombie is good.dy gets angry when stocks go up. time to go to rick santelli in chicago. >> the euro card as you see slipping a bitting with something to pay attention as the deafening silence out of europe will run it's course, but the currency seems to be coming off of better levels and maybe we'll test the lower end. now, if you look at interest rates, look at them quickly, we're comping further back in time. a five year chart, the highest yield going back to the 29th of may. if you look at tens and 30s, they moved back to the 24th as we spend time above 1.75 in a ten year. it's not unique to this side of the pond if you hop across the pond you could see that in europe, the boom, that really has not kept up, but it still moving higher, and it's coming back to early july, and even though we had mixed and better data, there was a huge revision we didn't point out until last month all the way back down to .1. >> let's check in with bertha coombs. >> hey, wti weaker this morning. the expectation about

abercrombie and fitch is still publicly traded. some businesses are simply unknowable.s are consistent. suffice it to say teen retail is about as critical as it gets. i have no idea if the weakness is going to continue or if this is the opportunity you have been waiting for. neither does management. don't bother to try. trust me. i have a teenager. stick with cramer. something yo. and inspires the things you choose to do. you do what you do... because it matters. at hp we don't just believe in the power of technology. we believe in the power of people when technology works for you. to dream. to create. to work. if you're going to do something. make it matter. nature valley trail mix bars are made with real ingredients you can see. like whole roasted nuts, chewy granola, and real fruit. nature valley trail mix bars. 100% natural. 100% delicious. i just want to give her everything. [ whistles ] three words dad, e-trade financial consultants. they'll hook you up with a solid plan. wa-- wa-- wait a minute; bobby? bobby! what are you doing man? i'm speed dating! [ male annou

beating at the other two, beating out arrow postdoc and abercrombie and finch.se these companies are all battling for the same customers, but their outlook for american eagle outfitters is really outpacing both arab postal and abercrombie and fitch liz: and my the only one that cannot keep these things straight. >> reporter: i agree. thank you very much. the federal reserve released its minutes from his most recent meeting that came out at 2:00 p.m. eastern. liz: s&p and nasdaq immediately turned positive. more quantitative easing or large-scale asset purchases were discussed. no action was taken. we know that. should the fed make a move? senior fellow at the peterson institute for international economics and a former federal reserve monetary ssc director and once more action. on the other side, oppenheimer fund chief economist thinks now is not the time for quantitative easing. before now not. that me get to joseph first. the first two rounds of quantitative easing. very salubrious or positive effects on the market which is not why they should be doing its, som

abercrombie and fitch today, gap the biggest gainer on the s&p, abercrombie is the biggest loser.tch sales fell short. knight capital taking another big hit after saying it suffered a $440 million loss because of the electronic glitches in the system that caused price swings in dozens of stocks just over 24 hours ago. >>> so let's get to the road map for the next hour, yelp stock getting positive reviews after second quarter results, will it help slow the social selloff on wall street? >>> plus a new report that says the irs may not be able to stop the rampant identity theft in the u.s. and the price could add up to hundreds of millions of dollars. >>> ecb president, mario draghi's comments on the eurozone pushing markets lower around the world. see what it means for your money when the european markets close in less than 30 minutes time. >>> and could hotmail take down gmail, the big changes from microsoft that's making waves in the tech world. >>> yelp posting a stronger-than-expected second quarter earning result. the stock substantially higher, a 22% bounce at the open. can ye

abercrombie and fitch. apparel. nike apparel.o phillips, las vegas sands though that guy is in the news a lot lately. that's the fellow involved with the romney campaign now. we'll keep nike. enough already with the teen apparel abercrombie. we'll throw in a health care name. let's do celgene! and wynn resorts? let's do disney. that's a nice mix. there you get -- obviously loves entertainment. then he's diversified. patricia in florida. >> caller: patricia is here in florida. >> man, i love out there. what's up? >> caller: well, let's see. what we have here is apple, macy's, bank of america, aig, scott's miracle-gro. am i diversified? [ buzzer ] >> okay. e macy's, terry is doing a great job. m is one of my favorites. i like nordstrom more. action owners plus.com has aig. it's been a major league tear. ♪ hallelujah insurance, apple. come on. what can i say that i haven't said already tonight? bank of america, i'll tell you this. it's a bank. scott's miracle-gro are on my bad list. they came on, blew up, blew uh up, blew up. i may

as bizarre as these moves may seem, considering the amazingly curious case of abercrombie & fit fitch, an -- an outfit that -- that endlessly pursues me as a male model for their holster division, and i have to keep saying no because i wear brione. 15 days ago -- 15 days ago horrendo downside guidance of 18 cents versus 393 cents the street was expecting. this week abercrombie reports 19 cents, a penny higher than the cut number that i gave you a fortnight ago. wait, not as nutty as j.c. penney where my mom got her venetan blinds. sales down 19%, forecasts way too high. the stock zoomed up, not down. penny and be a kromy have something in common given the results. they were both heavily shorted or bet against by hedge funds which were counting on the disastrously performing companies to keep, well, performing digs as trously, but these were mirror images of walmart. if a company does exactly as badly as it was supposed to do and not worse, that doesn't bring out new sellers. in fact, in the case of a & f it brought in buyers including the company itself which announced a boosted buyba

on the list today, abercrombie & fitch and sina corp. an upgrade and downgrade on both. we'll find out which of the analysts have it right. a few more big movers for a thursday in the summer. the markets keep moving.ou] make sure the news keeps coming with thinkorswim by td ameritrade. use the news links breaking stories with possible breakout stocks, options with potential opportunity, futures and forex with in-depth analysis. it's an all-you-can-eat buffet for all things trading. thinkorswim by td ameritrade. it doesn't just deliver news. it's making news. trade commission free for 60 days, plus get up to $600 when you open an account. ♪ you know, ronny... folks who save hundreds of dollars by switching to geico sure are happy. and how happy are they jimmy? i'd say happier than a bodybuilder directing traffic. he does look happy. get happy. get geico. fifteen minutes could save you fifteen percent or more on car insurance. good afternoon. chase sapphire. (push button tone) this is stacy from springfield. oh whoa. hello? yes. i didn't realize i'd be talking to an actual

we'll get there this morning on consumer prices as well as earnings from target, abercrombie & fitchnd staples. the dow closed up just two points, so we'll open at 13,172. the nasdaq did slip five to 3016. >>> more americans may be dining out a little less. restaurant visits rose just 1% this spring and it says consumers continue to be cost-conscious. that sector accous for 78% of all restaurant traffic. laura, back over to you. >> that says something, doesn't it? >>> a little indigestion. thank you very much. >>> fine dining on the fly. 4:48 right know, christine loren here to tell us, cooling down a bit? >> you can go back to the del scorcho today. temperatures are going to cool off by about 5 to 10 degrees in some cases. 60 degrees to start you out. in concourt and livermore, good morning to you. always get a bit more excited as we break over the hump. you've got to get over the hump first. today the weather is not going to be as difficult as it has been, even just heading out to the mailbox has been uncomfortable. today we fall back into the low 90s, as you can see here. we stop

i was lucky enough to be invited by abercrombie and kent which is one of the most luxurious operatorsoes a fantastic trip for anybody that needs to travel anywhere in the world. we were invited in and this country has just recently opened up after many years under dictatorship. it's unspoiled and ready to be opened up for tourists and visitors throughout the world. the spiritualism, the rural environment and experiences you have are amazing. this country is dotted everywhere with temples that are filled with gold leaf buddhas and just fill the entire countryside. look at that buddha right there. they can range anywhere from 30 feet high. you're looking at a building and wonder how in every corner and crevice of it, including little picture windows they can put buddhas which they do. we traveled to a rural area where farmers travel five hours a day to go to the marketplace and to sell their wares and their farm goods. it's a roving market where every single day they're in a different location. the houses along this area are built on stilts on the water. kids only go to school up until

. >> and you've got other retailers with exposure, abercrombie & fitch. >> abercrombie & fitch has been a disaster. the london flagship store is huge here and you've seen sort of a declining trend. same store sales were down 26% internationally this quarter. part of the issue is not only do they not have a lot of newness they didn't promote. they do not put items on sale here which is a mistake when everybody else is 50% off you have to get in the game. you can't maintain full prices. >> is that just a global policy for them? >> that's a uk stance. in the states they promote. >> that's interesting, isn't it. i went to one of their stores. so dark i couldn't see my way around. >> that's the point. they don't want the parents to know what the kids are buying. >> make it very hard to see. thanks for that. >>> walmart reports second quarter results at 7:00 a.m. eastern speaking ref tail. the world's largest retailer is forecast to earn $1.17 a share on revenues. walmart sales are expected to be driven by price cuts as we were discussing and wider variety of merchandise which could boost gro

but it was a great day for investors in teen retailer abercrombie and fitch: the biggest gainer in thes&p. the stock rose 9%, after the company reported earnings that were slightly better than expected. but what really helped the stock was word from the c.e.o. that its business is stabilizing, after a rough start to year. target shares also rose today, on better than expected earnings of $1.06 a share. the company says it's winning over shoppers with a bigger selection of food, as well as, deeper discounts. target lifted its full year forecast, and that lifted the shares more than a dollar to $64 and change. also reporting earnings today: deere, and it wasn't a pretty picture. profits came in $0.33 below expectations. it didn't matter that revenues came in slightly ahead of forecast. the world's largest farm equipment maker cut its full- year outlook due to weak sales in china and india. but, there was something that analysts also found troubling: >> the thing that surprised me first off is the fact that they had manufacturing execution issues. i just always think of deere as being an

. >>> the only country to sail a boat was the united states for a race to abercrombie i'll ride. it was called the hundred pound cup. the value of the trophy has gone up. along with it so has the value of the boats and the investment in taking part. this competition will bring the debut of 72 ft. catamaran spirit which is said to cost millions of dollars each. >>> these are going three times that speed because they are catamarans and there are much lighter >>> so wrastled is one of two team oracle skippers. but his america's cup record is a stunning four-zero. >>> you can raise at house all you want but if he wanted chase anyone yet to put them into real race situation. and a c 72 has a 11 crews >>> tom says it's important to remember the history because the trophy almost disappeared after the first american victory. >>> the cup itself, the silver trophy that has so many people trying to win it, as i mentioned that there's only been four countries that's ever wanted to, when they brought it back, no joke there were going to melted down and the medallions for the cruise. there was

abercrombie and fitch fell 14.6% and aeropostale lost a third of its value. both cut their outlooks. all five of the most actively traded e.t.f.'s were lower. the emerging markets fund fell the most, down 1.2%. and that's tonight's "market focus." >> susie: congress is headed for summer recess next week. lawmakers will face a lot of work when they return. one thing they'll have to consider, is how to un-do the sequester, that's the set of harsh federal spending cuts that would slash half a trillion dollars from the defense budget. with u.s. cuts looming, defense makers are looking overseas, and as sylvia hall reports, it turns out, the industry has become quite the exporter. >> reporter: we've all seen the bombs, planes, and tanks that support our military, but did you know troops all over the world count on american made equipment? the u.s. is one of the biggest arms manufacturers in the world. and right now, the defense export business is taking off. >> typically, these kinds of things have gone in waves, but we've really seen an uptick in our international

liz: i cannot tell the difference between american and ego and abercrombie.: how did pottery barn do? just over six minutes if you run twitter you would know we had terry duffy exclusively. follow the show.control. when we come back when stock that could be seeing the dead cat bounce. next. ♪al and supporting wind and sola. though all energy development comes with some risk, we're committed to safely and responsibly producing natural gas. it's not a dream. america's natural gas... putting us in control of our energy future, now. have given way to sleeping. where sleepless nights yield to restful sleep. and lunesta can help you get there, like it has for so many people before. when taking lunesta, don't drive or operate machinery until you feel fully awake. walking, eating, driving, or engaging in other activities while asleep, without remembering it the next day, have been reported. abnormal behaviors may include aggressiveness, agitation, hallucinations or confusion. in depressed patients, worsening of depression, including risk of suicide, may occur. alcoho

. >> a pop right here for abercrombie. >> they have retraced their higher loss. >> up 8%. >> wow, thiscapping at almost 100% move. down and out. all the sudden we hear about consolidation. but actually sprint as an acquirer. take out competitors. you leverage the balance sheet a little bit. a stock that goes up every day. >> got a pop up 4%. >> the thing is valuation is pretty high for my perspective. i would probably be taking profits. >> we got a pop here for solar powered toilets. >> what? >> you heard me. bill and melinda had a competition. taking the number one spot was a solar powered commode which turns human waste into storable energy. the winners were awarded $100,000, pushing for worldwide laf tory reform, gates was happy to throw the money down the toilet. >> who was number two? >> this is one that is rooted upwards. 45% of the shares outstanding there. they reported a couple week ace go better than expected. you have polysilicon prices down on the week. stocks are up. >> stocks are a popper today. >> audit to the focus list. and although the stock has had a nice move here,

initially sensing that kors, too much so while we saw also kors positive over in europe, while we saw abercrombie a little more pressured. >> what are you seeing in terms of the u.s. department stores. are they helped by kors. i know they have a strategy as well. >> in the share and just in the merchandise and activity levels that we are going through, they were very upbeat on it. 5. >> losing market share to people. >> t.j. maxx definitely well positioned. we have been tracking that one for a while. what was interesting to us whether i think there is expectation that that was maybe moderating out, they are saying they expect into the second half here that j.c. penney is going continue to lose ground. >> that's not really the issue. it's all about pricing not merchandi merchandise. >> i'm curious. on target and walmart, are you seeing any trends where they are taking share away from the dollar stores? >> we might have some limited view into that. we do see target doing very well. we see them as a beneficiary. them telling us where they see the volumes moving. target doing well and also in grocery

earning, deer, target, abercrombie and staples before the bell. after the bell, cisco, applied materials, limited, agileent, hot topic and netapp and petsmart. >>> cooler weather is expected soon across the plain states of oklahoma and kansas but analysts say that won't be enough to save the majority of the u.s. corn crops. for more we're joined by analyst at robobank. thanks for joining us. we've seen a spike in corn prices lately. is it your view we've reached the top or still more to go? is $10 a bushel in sight? . >> there further upside. last friday we had a report from usda august was the report which confirmed what private analysts were expecting as yield loss. they cut yields to corn to 123 bushels per acre and soybeans, 17%. is so, now weave got the supply side of the story, not completely finished but what behind us as we're getting very close to harvest of those two crops. we're really focused on the demand side of the equation. he we haven't seen much of a pullback in terms of end user consumption of these two commodities. going forwar

this is american eagle outpacing abercrombie & fitch and also aeropostale.-packard caterpillar intel coming under some pressure. hewlett-packard reporting after the bell today. that will be one to watch as well. we have you covered here on the fox business network. back to you. dagen: there you go, after the bell today. breaking news right now, europe's markets closing and ashley webster has all you need to know. ashley? ashley: hey, dagen, well it is a sea of red across europe today. we've seen a broad sell off across all major european exchanges as investors take profits and pretty much hedge their bets as the greek prime minister begins his quest to try and win some extra time to enact the budget reforms. let's take a look at the closing bell, starting in london with ftse down 1 1/3%. and the cac down. and the dax also down. investors are worried essentially the currency moved too far and too fast, right now the euro is standing right around 124.61. in athens, greece' prime minister is meeting with euro group chief. at issue is whether greece has done eno

we did have some good retail numbers, target was very good, amb abercrombie -- they missed -- we're thinkinges are going to be in trouble there for some time for those tractors. >> more impact, courtney reagan, cnbc, thank you very much. the senate interviews continue, that's what's next. we'll be right back. the greatest empires. then, some said, we lost our edge. well today, there's a new new york state. one that's working to attract businesses and create jobs. a place where innovation meets determination... and businesses lead the world. the new new york works for business. find out how it can work for yours at thenewny.com. and sounds vying for your attention. so we invented a warning you can feel. introducing the all-new cadillac xts. available with a patented safety alert seat. when there's danger you might not see, you're warned by a pulse in the seat. it's technology you won't find in a mercedes e-class. the all-new cadillac xts has arrived, and it's bringing the future forward. [ female announcer ] ready for a taste of what's hot? check out the latest collection of snacks from lean

. >>> how would you like a free ipad from abercrombie & fitch, free flu shot at kmart and free backpack are things stores are offering as retailers try get a bigger piece of this year's back-to-hosc shopping season. number of students enrolled in prek-12 will hit a record. you may be wishing you could get more free food deals. price of corn fed to cattle rising to new record high because of this year's devastating drought. the corn used to make ethanol meaning the drought could push gas prices higher. an attorney attorney general is investigating a flagship energy drink and ingredients monster isn't saying who but they say this ag is looking into advertising and marketing of its dins. prosecutors determined there is no viable bay is for bringing a criminal prosecution against goldman sachs. a committee concluded goldman sold mortgage-related investments to clients but didn't tell clients goldman was betting against the investments. yesterday better than expected report on jobless claims. at the new york stock exchange, i'm jane king. >>> next, it is an early morning for south bay famili

abercrombie & fitch not so good, staples disappointing earnings. the dow closed up two to 13,172. the nasdaq slipped five to 3016. >>> pinterest is adding, as it try toss broaden appeal. it's grown its user base from about 1 million last year to 23 million as of july. it opened its membership up to the gen public last week. previously when you signed up, you had to wait to be admitted to the site. i have continued to hold off. i don't have any more time to play around with the sites, and i hear it is very addictive. >> laura, scott and i were having that conversation. we have decided to skip pinterest. now because we don't like it ouring in. >> i love it. >> i know you do. there's just so many things out there you can get the hang of. >> it helps me organize, and you know how big i am into that. >> with three children, you better be. >> no kidding. >>> it's 5:17. when you see a shooting star, do you make a wish? one photographer was probably taking a lot. he took this picture in whole last weekend. the perseid meet i don't shower was lighting up the sky. it's believed that the met

. >> kids and teens alike, abercrombie & fitch and hollister.tore, hollister, $25. a personal back to school promotion. so when you walk in these good looking models hand awe card. text the number on the back immediately and they are giving away thousands of apple products, everything. merchandise, trips, you name it. >> wow, make sure you go in and check it out. next you found these t-shirts. great deal prices. about five bucks. >> $5 at children's place. everything at children's place is on sale. graphic tees just happen to be appealing. through labor day. >> next they will be lugging books everywhere. you found a deal here. >> kohl's is offering 65% off, even big names brands jansport, adidas. go in and find the right one for your kids. huge deals at kohl's going on specifically on backpacks. >> if you have 88 cents, anywhere from pencils to handbags. where? >> walmart has an 88 cent deal on more than 100 products. go in. you name it. pick up these things. fill a bin. 100 products and $88. they have partnered with toshiba for this hard drive

abercrombie, which wiped out about 30% of it's value year to date. >> all right, markets have been moving we had a decent gain, about a 55 point spread for the dow jones industrial average for much of this day, and we're heading lower again now for all of the major averages as you see here with about 20 minutes left. seven on the down, same thing on the nasdaq and the s&p. can you show who is behind us? we have the fab five. there they are, gabby douglas, jordyn weaver and the whole gang. >> it was so exciting, they were on the today show next day, there are corn flakes boxes all over because they're on the box. don't they look great? >> they do, i don't recognize them in street clothes though. >> and the crowds are unbelievable, they're truly celebrities. >> and let me say, gabby's hair looks terrific. >> she ate an egg mcmuffin to celebrate. we look forward to them ringing the closing bell. meanwhile, a couple blocks from here, the price of oil moving higher, bertha coombs where it's quiter i imagine has the details. >> yeah, i thought her hair looked perfect as she was perfect in the a

am.m abercrombie and finch is popping. >> the stock is increasing. >> still on the low end of the range>> target popping 2%. >> long the stock and we like everything we saw at this earnings report. beat by 11 cents. entering canada for the first time ever this fall. i think if you looks at what they do in stores like fresh food, these are great ideas that carry higher margins. >> they raised stocks near five-year high. starbucks? >> gladly a tactical bounce for those that stayed long the stock as it continued to decline after earnings. give me 50 print on this one and i'll be out of it. >> rgr is dropping today 4.3%. >> keybank cut them because of the outlook for arms makers in particular sturm ruger taking it hard today. 4.5% drop. >> a drop for cheating if ever there was a pop for it. one participant in national scramble championship had a few tricks up his sleeve. unidentified player was booted from the board game after he allegedly snuck in blank tiles which can be used as wild card letter. another contestant spotted the offense which spelled trouble for the cheater as he was prompt

and of course analyzing the analysts bull and bear cases for abercrombie & fitch. who is right?sell, do what? join us on power. now back to scott and fast half. >> investors continue to worry about the pace of china's growth, credit suisse said one part of the country's economy is set to bloom. >> i think our viewers we agree for many industrial end markets chinese growth going forward will be very subdued. i think automation is a big difference and that's really by automation i mean factory managers are using hardware and software to replace labor. that's a function of rising wage inflation, wage inflation is here. it's accelerating and force manufacturing companies to keep on investing more and more in the automation of their plants. >> let's cut to the chase and go the winners. who win? >> three main companies we're focused on. one is rockwell auto makes. second is emerson electric and third is siemens in europe. >> how dramatically is the chinese economy slowing? are you looking for a hard landing? >> growth for industrial companies is really at a trough right now. you had a

>> abercrombie. $29 stop in case it doesn't work. >> doc? >> hot. >> anthony? >> get long verizon, vz. >> that's all for us. follow me at twitter. "power lunch" starts now. >>> "halftime" is over. the second half of the trading day gets under way right now. and "power lunch" is all over it. >> all right. thank you very much. big comeback for the markets. we were down by now the rally is back on. maybe you call it a rally. nine points on the dow. where has the fear gone as we go nine points higher? look at the vx. it's way down lately. as iran beefs up its military exercises. like this. standard charter accused of doing business with the islamic republic. banking regulators here in the u.s., we'll talk to a member of congress responsible for many of today's sanctions to see whether they're working and how banks should be punished if they break the rules. and, a 75% income tax? oh. what's the impact? that's the proposal in france. and they may be about to find out. but we start with sue at the nyse. where'd the fear go, sue? >> not evident today and we start out

abercrombie & fitch, they guided $4. 75 for this year. they're lucky to do $2.75. that's another one taking it on the chin. >> brian, liked at the screens last week. the gap up 80% years to date. is the restructuring and rebirth of the gap for real? >> we probably still have another three to $4 left in the stock. you know? it's been an active money manager's sort of, you know, not needing to own stock for a couple of years now. they bought back half of the stock in the last five years. the gap division, it's lost 20% of its sales productivity in the last four years and just the slightest hint of things in the right direction and money managers need to own the stock. they haven't in years so reasonable valuation, if you look globally against h&m or fast retail, gap's still trading at a three-multiple point discount for global money managers out there and taking a look at it. >> thank you very much for joining us today. >> thank you. >>> next, a couple of top market watchers with soda, snack food and tooth paste on the shopping list. >>> plus, first on cnbc, the ceo

this is an american name, but you are saying they have some european issues, that was abercrombie & fitch, i have to say i was surprised you picked this one today because that stock has just been really hammered. there's no other word for it from the analyst community here in new york. you say the europe side of the story is what we should be looking for, why? >> well, absolutely. it is not about the news pertaining to a particular security. it's about whether or not the news has been discounted into the price of the security. that's what investors often get wrong. it is important to understand whether or not its problems in europe are accurately reflected in the valuation today. we believe it is. cheryl: okay, i meant to ask you this at the top, overall again you talk about fixed income versus equities, but a lot of our viewers have been looking for alternative investments, because frankly, they don't trust the stock market anyway. they feel the average retail investor cannot participate because of institutional tradings. what do you say to that person who has that concern? >> well, look

new management in there, and again, they're capturing share, selling jeans at $30 this week, and abercrombie & fitch doing terribly, arrest positive total doing terribly. you beau to pennies, levis being sold for $40, and why wouldn't you go to american eagle and buy for $30? >> what are your thoughts on gap? >> massive turn around, got to give management a lot of credit and a lot more room for it to run. and i think penny's again gives them the opportunity. >> hell of a year, 87% gain for shares of gps. great to have you on the show. >> thanks very much. >> guy, you want to touch the retailers? >> costco. a monster stock. i think costco still -- you look at their comps back from early august, their july comps were fantastic. stocks off a little bit today. but i think it's -- i think this is one of those stocks that's going to push to $100 valuation stretched. but, you know, what again, a stock that's hard to fight against. >> john, we were talking offline about the retail sales figures, strong number. and jackson hole. your view, jackson hole is going to be a big doughnut, the hole, nothing

abercrombie & fitch, in manhattan, there's a line around the corner. it's a crazy situation.hen i was in paris there was a line. did you see this? >> yeah. >> unbelievable. yet not a lot of people love the stock. >> what's happening with abercrombie & fitch is prices got a little bit too high. certainly here in the u.s. we're not seeing tourism as great as it has been so that store in new york isn't getting the same sales volume. there's a lot of competition in the teens. the new competition is the fast fashion retailers, whether it's forever 21, h and m. newness and differentiation are key and they have to have more spunk in order to be able to drive the sales. >> who else is doing well in teen retail these days? >> it's funny. it's always retreads that come back. right now we're seeing american eagle. with the new ceo in place is taking a little bit of share driving better sales gains. they've been doing better than others. >> adrianne? >> the ones that are on trend and value. you're seeing the juniors do really well at off pricers. value is envogue. >> keep talking about v

you're going to see are 25% now, discount coupon codes, save this much. >> and i get e-mails from abercrombie same. that's the nature of retail at the moment. why do you think the brand is to important in retail at the moment? isn't the truth that increasingly, particularly as you go online, people will be prepared to shift through different brands, through different shopping experiences to find actually product that they want and the product ultimately leads -- and in this instance with color, it would appear that gap has delivered. >> actually, all the gap has really delivered is a lot of press releases. if you look at their new campaign that they're trying to do, this is essentially the same thing after the sarah jessica parker failure that they tried with josh stone. the problem is they don't have a brand strategy. and in order to have a brand strategy, you have to be perceived as being the only solution. you don't have to be the only solution. but the whole point of a brand is to say, yeah, i don't want to go shopping anyplace else. give me a reason why. and to date, nobody, anybody can

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