charles schwab. >>> welcome back to squawk. a little taylor swift on this friday morning.cpenney is reporting a bigger than expected first quarter loss. paul is joining us from morningstar. good morning to you, paul. are you a taylor swift fan, as well, with the rest of us out here? >> who isn't? i don't get to listen to too much music these days. >> the earnings were quite miserable yesterday. how long is the honeymoon for this new ceo? >> well, you know, i think the summer is a weak retail period in general. but there's a lot of discussion of how much better things have gone since the promotions have come back. they said we can't say anything bear because we're in a bond tinder and securing a loan from goldman. but i think if the traffic and the actually sales can pick up, i think people will ex extrapolate that this things will work. you have no worries about cash, right? >> i think cash is always a worry when you're losing this much money. but the quick numbers are this, they burned $214 until in a quarter. they stretched payables more. it's better than expected. when