we'll talk to brian cornell exclusively.ourtney reagan has him in a moment crude also under pressure. we'll talk to the ceo of one of the largest oil and gas companies in the world when "squawk on the street" continues. you always pay your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance. the street." let's get to our courtney reagan in minneapolis sitting down with the ceo of target, brian cornell. morning, court >> thank you very much good morning to you, carl. i'm here in minneapolis. just down the street or across the street from target headquarters brian, thanks for being here with us today. your earnings, you beat across the board. shares are lower, though, because of the h

afternoon on the earnings front, cisco systems, l brands and target don't miss an interview with brian cornelloday at 10:00 eastern. >>> senate republicans launching a new push to end a key part of obamacare as they try to pass tax reform gop lawmakers tacking on a new provision that would repeal the affordable care act's individual mandate. republicans say the move will lower the cost of the tax package and allow for more middle class tax breaks. the new senate plan would make corporate tax cuts permanent we will get reaction from house speaker paul ryan, that's coming up today on squx sd"squawk box"0 a.m. eastern time. house republicans have said this will not be in their plans how they reconcile that, we'll see. >> we'll see in a couple weeks the reconciliation continues yesterday goldman sachs increased the probability of -- >> 80% >> a significant move. your take on that is seeming a bit optimistic >> i will say in the healthcare debacle from this spring and this summer, all of those odds proved wildly incorrect. whether it was goldman sachs or compass point, whether it was horizon strate

we'll sit down with brian corne cornell, an exclusive interview at 10:00 a.m.e of the best of the ivy league schools. >> in difference to andrew, cornell. >> did you miss that >> you were going to blow it off? >> i'm not saying it for anybody else what were you doing? >> good name. >> i was writing a note. >> to who? >> i'll tell you during the commercial break. >> up next is out'abt the news that might be coming back in a moment you always pay your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance. >> mario and luigi could be heading to the big screen. illumination entertainment between despicable me is close to a deal with nintendo to create an animated super march row brothers movie the franchise has sold 330 mill

ceo brian cornell says he's surprised at the reaction to expectations. cornell says he's confident going into the holiday quarter. >> we feel really good about our performance, the progress we've made. and i feel really confident that we've got all of the elements working well, as we go into the fourth quarter. >> reporter: it doesn't sound like you're worried about what you've seen, you feel pretty good. >> i feel great about the start of the year. >> reporter: they're undergoing a multiyear plan to spend $7 billion improving its digital business, remodel stores, pay store employees more, and lower prices. it may be the right strategy to compete, it pressures profit. >> as we look forward and think about 2018, we struggle really to see how earnings can really grow in the outer years. >> reporter: while target's comparable sales came in double what analysts expected, almost all of the growth came from online sales. store sales at target's more than 1800 stores are flat. that's concerning, when target's online sales are less than 5% of total sales, but re

money management don't understand the strategy of yew pod, under promised and over delivered, like brian cornell the ceo of target who practices it in extreme. cornell's beating numbers and lowering its forecast almost every single quarter, it's like clock work today target stock took a huge hit, nearly 6 bucks or about 10% where the company gave weak holiday guidance after a good quarter. but when you take cornell's dupont track record into account that guidance seems less grim. at these levels the stock deems over 4%. i think the action in the stock is wrong >>> then there's the stock of ibm. the last time it reported the company fwaifr you what i think investors deserve to be its last quarter. the stock sky rocketed went from 163 to -- 162 to 163 in two days. did ibm screw up, no, we have just subsequently learned today that warren buffet, once the largest individual shareholder has been blasting the stock to kingdom come having sold a third of his position since september 30th, no doubt le used the strength to try to dump the rest, hence that miserable trajectory does that mean ibm stock is

profit forecast for holiday quarter did fall short of estimates weighing down shares we talked to brian cornelllier in a cnbc exclusive about the quarter. here is what he said. >> i'm surprised with the reaction we had a really solid q3, traffic up, digital grew by 24%. so all the levers we look at working well our brands have been well received our small stores off to a great start. our remodel stores like the one we're in today delivering exactly what we expected so-so many of our elements are working well, and it showed up in our q3 results. >>> joining us post 9, good to see you both we should mention, paul, a close down % only one drop bigger since 2001 overreaction >> we don't think so. >> really. >> certainly we applaud traffic, same-store sales increasing in a competitive backdrop, but i think operating income down 18%, earnings per share down 13% year over year at a time when we're just beginning to have target really invest meaningfully in wages, in their store with this target of $15, minimum wage by 2020 along with meaningful store remodels that's going to lift depreciation so reall

>> i'd be going down there and eating some ribs and loving it, yes and brian cornell is doing a great job. their new launch that they are putting out in both electronics and magnolia, what they are doing right now i think is transforming them, and the online is the key. they didn't embrace it early enough but in the next couple of quarters people are going to see it, scott, and this thing will be higher. walmart will be lower. >> all right. >> head of the travel and visitors bureau, pete farmingian joining us live. >> i love that guy. >> pete, we'll see you back here next week. >> grat to see you guys, man see you monday. >> have a good weekend. >> let's do our blitz now. square is hitting an all-time high today, josh want to take this one? >> got an upgrade from evercore. they like it even more new target is 521. from a technical standpoint this thing has been up, up and away all year. >> viacom, jimmy, bouncing back today in. >> after a not so good earnings report viacom and the content sector have been obliterated whether it's viacom, cbs there's no catalyst and while time warner i

this is brutal first of all, the buybacks came in >> not according to brian cornell, the ceo feels great about where everything is. >> really? >> that's what he said. >> so 375 million in buybacks they were supposed to do, they only about 171 million inventories were supposed to be down over 2% they were up 5%. $7 billion investment in 1,000 stores i don't know what's going on with target other than it's getting amazoned. >> they are walmarted. >> and that's a note. >> walmart is so hot right now. >> maybe it was somebody else and if it was forgive me, getting squeezed between walmart and amazon is that the issue? >> we're overstored. everybody knows that. >> beat on both bottom line and sales and the guidance to joe's point, guidance was brute al brute al. >> i sold my costco. >> pete was over there talking with cornell today at the mall or at target -- we had an interview at, and pete was talking to him, and he's -- >> courtney reagan interviewed the ceo earlier. look, i get a ceo trying to spin a positive message on where the business is, but what happens when that message sort of fli

brian cornell is outstanding, has a focus on where they need to go.nd walmart right now but they'll start to catch up with walmart as they do, that's why this company even under his leadership are focused on the right area this trades at a 12 pe presently. they've got earnings, they're given a dividend yield of 4% they've actually shrunken their share count by 270 million shares so far. and they continue to grow that dividend for the last multiple decade that side of it. where is their growth? online, 24% last quarter when you look across at other areas, they're working within the stores themselves, in lex as well as magnolia magnolia, guy probably knows this, that's a little company that's out of, you know, i think it's on hgtv where they actually are the ones inside their stores showing what they've got and adding to it, the store within a store for target right now for all those reasons i like target i think it's too cheap i think it gets somewhere up that 15% -- or 15 pe range which will lift that stock up a little bit even better. you can see whe

part for me was you guys had a long discussion about target i had an opportunity to sit down with brian cornell yesterday we talked about a lot of different things for a long period of time what a great guy. >> i'm sure he told you everything is just great. >> no, what he said was we're a couple of quarters behind, and he's right we talked about that on the show just on monday they're a couple of quarters behind what i mean by that was the jet acquisition was brilliant. josh was right $3 billion and that was something that was transformative and it's hitting and actually working right now for walmart. the problem right now when you look at the online growth over at target, 24%, that's not so bad. it was 50% over at walmart so certainly they're trailing there. their e-commerce at target needs a lot more than it is right now, and i think that is something to come they don't even offer the entire store the way walmart does presently on the online. the pickup is different. i mean it's something where if you look and just say we're a quarter or two away, i think that's a reason to look at target and

courtney has an exclusive with the ceo, brian cornell, 10:00 a.m. eastern on cnbc >>> let's do a deeper dive into retail ahead of the holiday shopping season. michael lahser joins us. >> good to be here. >> talk about the three stocks that courtney highlighted. i want to begin with dick's. you have a buy rating, target of $29 a share. how do you square that with the idea the company says profits will be 20% lower. >> sure. the symptom is cheap, making investments in its business. eventually all of the issues that are weighing on the athletic apparel and footwear space will eventually work out until then, it will be painful we think it will take time dick's indicated earnings would be down another 20% next year. it is making really offensive moves to deal with the environment. >> let's talk about the other two, tjx, home depot give us thumb nails on those. >> home depot is doing great good sector of retail now. home depot is exercising all of its muscle, all of its influence in the sector, growing in stores, growing online, growing from the hurricane

beating expectations now, yesterday, for the 50 -- you know, i don't know, for maybe the fifth time, brian cornell lowered expectations this is a different kind of lower expectations this was setting them on a path to spend a lot of money, because they couldn't afford to lose to amazon and when you talk with them, all they talk about is, we're going to beat amazon no one talks about beating amazon you're supposed to lose to amazon and drown in the amazon >> so if we found our toe-to-toe, what does that mean for everyone else? why is best buy raising guidance today? why is restoration hardware raising guidance >> best buy won. they won their category. they are the only one left to buy stereo equipment or buy -- for iphone, great stand-alone, they really help you restoration hardware was a big squeeze. gary friedman, one of my favorite execs, let's see how he did. he bought a lot of stock at 20, in the 25, a lot of stock in the 70 good average, about 50 it's really -- what's most interesting about it, he's got three stores in florida. well, those were hurt. he's got a big store in houston, and he st