for "nightly business report", i'm courtney reagan.would think that tariffs stores like dr general and dollar tree because of their slimmer profit margins, but turns out tt's not necessarily the case. both discount retailers reported faster than expected rise in same-store sales and both raised theiruidance. dollar general surged more than it the best performing stock in the s&p 500 today. after a 4% pop at the open,e dollar t trended lower through the day and closed down about 2%. >>> the song sales from the dollar stores coupled with strong numbers recently from larger retailers like walmart and target just drive home that ddle class consumers have money and they are spending it. but f how long? joining us you saw michael lasel and courtney reagan's report and he is back with us now, the retail analyst at ubs. michael, thanks for joining us tonight. >> good evening. thanks for having me. >> i a thinkut target ceo sang he thinks it is the best seen, but macy's ceo warned tham cos have no appetite for higher costs, and if the tariffs l

courtney reagan t a look at what target is getting right. >> reporter: target's quarterly results oncein show that its three-year turnaround strategy is. worki store traffic is up. online sales grew 34%. both led to stronger than rapected compable sales growth. the retailers same-day online fulfillment options more than doubled their sales in a year, proof shoppers are increasingly andg target's website stores together. most retail experts agree target'sanagement team has done a good job executing a strategy that's resonating with sshoppers, but aong u.s. consumer also contributes to target's performance. on a media call i asked ceo hian cornell he views the economy and consumer. cornell's answer, quote,s i have said for sometime now we continue to see a healthy consumer. environme consumer confidence remains strong. there's been a reduction in fuel prices which we thinkpo is ant for consumers. unemployment remains low and wages are growing. >> you also have seen some of the biggest retailers gettingcr ental share from some of the smaller retailers and probably think the trends will. c

for "nightly business report", i'm courtney reagan.andmart appears to be one of the companies able to manage this uncertainnt environ that uncertainty may be why some stock investors look towardsca smal, which historically derive their revenue domestically,he insulating a bit from the overseas slow down. but there are some big, well-known companies that are domestically focused as well. joining us to talk about thosee names is caron with washington crossing advisors. kevin, good toinee you a how are you? >> i'm good. thank you for having me. >> you know, it interesting. walmart was able to kind of weather this uncertain trade storm. are there other companies that you think hav the savvy management team to be able to navigate this particular kind of changing environment? >> sure. and it is an environment that is more difcult overseas than here, so we focus our attention on --t washington crossing on u.s. companies for this segment. ngat we are loo for are companies that have very good balance sheets with low debt, veryt consist cash flo

. >>> good morning i'm courtney reagan in for brian sullivan this morning. we're keeping an eye on shares of johnson & johnson up just about 2% in early trading as an oklahoma judge finds the company liable in that state's widespread opioid crisis we'll update you on the story in a moment it might be surprising shares being up when they are indeed found liable. we'll set the tone for where we're starting the morning here in the united states dow jones features are indicated lower by 26 points after we had a nice day yesterday so all three major averages indicated to open slightly lower take a quick check on what's going on in the treasury markets with the yields. and right now the 10 year yield is at 1.51 look at this though, two year, 1.526. let's go worldwide now let's check on what's going on in asia. we had a mostly higher session the shanghai composite higher by 1.3% and then in europe at least in early trading things are looking largely red here you can see that the ftse 100 is down by .5% here germany is just about flat though spain higher by .1% and

courtney reagan has more on the mess at macy's. >> reporter: macy's quarter didn't go as planned.he department store's women's clothing disappointed shoppers, sales ofarm weather apparel was slow and international tourist spending was down. internationals touri typically buy full-price merchandise and make few to no returns. as a result, macy's discounted merchandise more than planned to ttice consumers boy and it took a big bite out of earnings. the ceo told us, we took our medicine, we took almost a full point of margin with the additional mark downs, adding, we needed to protect fall. still, there are headwinds and uncertainty ahead. macy's lowered its annual earnings forecast to reflect thisssquarter's mi but it doesn't include the impact of tariffs on september 1st and december 15th. the retailer isti s evaluating itss plan to addhose higherst he told me he learned from the last round of tariffs going from 10% to 25% in may that, quote, e customer has no appetite for price increases, and that right now we are expecting thatn' the be price increases, at least with new tariffs

courtney reagan, thanks for joining us today ceo of survey monkey will join us as well, next and that surge on earnings, it's up 11.5%. earnings, it's up 11.5%. stay with us that's a win. but it's not the only reason i switched. geico's a company i can trust, with over 75 years of great savings and service. ♪ now that's a win-win. switch to geico. it's a win-win. we like drip coffee, layovers- switch to geico. -and waiting on hold. what we don't like is relying on fancy technology for help. snail mail! we were invited to a y2k party... uh, didn't that happen, like, 20 years ago? oh, look, karolyn, we've got a mathematician on our hands! check it out! now you can schedule a callback or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not. >>> here's a look at what's coming up "the halftime report" what this week means for the rest of the summer in stocks our investment committee giving their playbooks for the next month. shares of square getting smashed today. is anyone on our desk buying that dip we'll set you up for bi

i'm courtney reagan.rian sullivan is reporting live from hong kong, a very global show this morning. brian, a busy weekend coming up, right? >> yeah. this place could be electric it could be rocking later on tonight. we're in a public park in hong kong the reason we're here is that there is a major rally, yet another one, expected for this evening. it's called the power to the people rally it will feature a speaker named joshua wong. he was really the leader of the 2014 protests. he ended up going to jail. they're setting up the stage there. in a few hours, 8:00 p.m. here, 8:00 a.m. your time back east, this should be filled with thousands or tens of thousands of people. the question for the cnbc audience, the question for the global markets is what is the reaction going to be what is the reaction of the hong kong police? what will the reaction be of the chinese government and potentially the peoples liberation army. we showed you a bunch of trucks lined up over the border in shenzhen yesterday will they

courtney reagan has that for us. hey, court. >> reporter: walmart's u.s. comparable sales is the key metric to watch. the street expects it to grow 2.4%, which would mark the 20th straight quarter of growth earnings expect to fall to $1.22 per share on $130,110,000,000 in revenue, a slight increase over last year. a third of walmart's u.s. sold merchandise is imported, china only a part of that. the ceo told me increased tariffs will raise prices though the goal is to be the low price leader and manage margins, keeping shoppers and shareholders in mind when making tariff mitigation plans. >> courtney, i know you bring us those numbers tomorrow thank you. >>> alibaba is set to report tomorrow morning as well deidre bosa has a look at that hey, deidre. >> reporter: last quarter alibaba vice-chairman addressed trade tensions, what he called the elephant in the room he said that trade talks put alibaba on the right side of the issues on the table and it would actually benefit from consumer spending by china's middle class even as the economy slowed investors w

let's get back over to "squawk alley" >> courtney reagan, thank you. >>> let's bring in david faber foron that potential altria/phillip morris deal we have some details >> we have some details the market wants to know i should point out, the dow jones has also reported the same thing that i'm about to tell you, a bit more detail the key thing is, you see it reflected to a certain extent in the moves from these stocks since the news started hitting we did not know rather than it being an all-stock merger of equals released in this press release talking about the talks between the two companies what the respective economics would actually look like the market was assuming an moe implied would be close to 50/50. it's not in fact, the two companies have been focused on a deal in which they were dealing with the market caps as they stood before they became somewhat changed, as a result of speculation about a deal and so a 59% ownership with a combined company by phillip morris international and a 41% ownership by owners of altria is what they've been working with they are still describing it

courtney reagan following that part of the story for us. >> reporter: hi, scott it looks like it is aty on september 1st of 10% the round of tariffs will include consumer products like clothing, shoes and electronics. best buy shares down almost 11%. i will remind you that may, look, it is premature to speculate on the impact of further tariffs. he added it is unclear whether list four would be implemented, what products would be included and when best buy think they're in trouble. steve madden lost nearly 9%. nearly all of the products it sells in the u.s. are made in china. it is a name analysts are watching closely gap inc. shed 8% it has only 20% exposure sourcing to china, but since it sells its own goods there are no vendors to split the cost with like tapestry, the owner of coach and kate spade, michael coarse and jimmy choo, those names sold off the retailers have been working on diversifying their supply chains outside of china for years, accelerating those plans when they can in recent months, but china is still the number one country where u.s.-sold apparel and footwear is

contessa brewer, bill griffeth and courtney reagan.rt, we're starting with you again, talking some nordstrom. they're up about 15%, 16% today. better than expected earnings but missed on revenue. it's on pace for the best week in nearly ten years. but again, context is key here >> i think actually what's very key is that there's 27% short interest in this stock >> wow >> macy's short interest is only 13% by comparison. >> short covering rally? >> i do. because, yes, they beat on earnings but it was what we call that poor quality beat they had expense management and some of these benefits their net sales were down 5.1% which was the lowest they've reported since the great recession. >> it's actually accelerating to the down side. >> honestly, it wasn't a good report the shares, they popped immediately. and there's no way i talked to several analysts and there's not a lot of great things here. they're expecting nordstrom, the inflection in the second half of the year the new york city flagship is going to open on october 24th. but a lot

for "nightly i'm courtney reagan. >>> sales also missed the mark at kohl's despite reporting better thanected earnings. the retailer forecasted a steeper than expected decline in profit margins due to a potential hit from new tariffs on imports fro china. that sent the stock down by more than 6%. shares of tjx companies were also lower. the parent company of tj maxx and home goods warned that third quarter profits will come in below estimates on an increase in competition. >>> and in washington the focus is very much on the economy n right now, e though the president has said we're far from a recessi. he admitte today that he is examining a number of stimulus meases including more tax cuts. ayman javers is at the white house for us tonight. >> reporter: some back and forth over the past 24 hours here at the white house over the idea o a payroll tax cut. yesterday the white house denying the news report that suggested that the white house wanted to move forward on a payroll tax cut. weay, t the president said he's considering it. here is what the president said today talking to reporters

courtney reagan. >>> when we cothe larry summerst former fed, new york fed president bill dudley.he story behind that story when "squawk on the street" returns. >>> well, in an op-ed that has generated a ton of buzz on wall street, former new york fed president bill dudley is arguing that the fed should not cut interest rates further in response to president trump's trade war with china it's drawing sharp criticism from larry summers who called it, quote, the worst case of trump derang syndrome in the financial world. larry summers joins us now i was shocked to hear your reaction to this, secretary summers, because you have such a consistent trump critic. so i would actually think you would have applauded mr. dudley in him calling on the fed not to enable trump in his trade war. >> look, the fed's job is to stay out of politics fed's job is to respond to the best assessment they can make of economic conditions and to adjust the economy appropriately. adjust interest rates appropriately. you could argue about what the right response is, maybe more tariffs mean more economic weaknes

re's courtney reagan. >> reporter: much of the focus has been impact on gooade in china. companies have talked about strategies to mitate the rohigher costs tariffs. no retailer is so far in favor of the tariffs, most are figuring outow to lessen the impact so that profit is prices are sta for shoppers. tariffs rangeden from 10% to 25%. now they're 15% to 30%. and president trump told u.s. companies to pull production out of china thaltogether. national retail federation said quote it's impossible foro businesseslan for the future in this type of environment. the administration's approach clearly isn't working. the answer isn't more tes on american businesses and consumers where does tend? distributors and retailers of america said there is zero doubt shoe prices will rise, hurting poor families the most. this uncertainty may directly plunge us into aecession where we shed thousands of americanf footwear jobs. the united states has createdrd re expansion built on a confident and empowered consumer. a protracted and costly trade war is the onet thing t can shatter consumer

courtney reagan has more. >> reporter: many retailers have been wking on diversifying supply chains outsidechina for years and accelerating those plans when possible in recent months. china is still the number one country where u.s.-soldd appare footwear is made. the national retail federation saying in part today, these additional tariffs will only threaten u.s. jobs and raise asts for america families on everyday goods,nd the tariffs imposed over the past year haven't word. best buy shares down more than 10% today in reaction. in may, then ceo lee said it was premature topeculate on the impact of further tariffs, adding it is unclearouhether list will actually be implemented, what products would be included, at what rate and when. shoe seller steve madden shares lost more than 9%. nearly all othe products it sells in the u.s. are made in china. but even retailers and brands with lower exposure to chinese manufacturing liketapestry, the owner of coach and kate spade an copry holdings when owns michael coarse and jmy choo, sold off on the news. for "nightly business report", i'm courtne aga

we'll below 2940 to courtney reagan, see what's moving. >> good morning.week that we have had we had the first rate cut in 11 years, three quarters of the way through earnings, jobs report today, a fourth round of tariffs coming september 1st surprise, that is how the market felt we had late day u.s. sell-off, it rippled around the world, germany, france, the hang seng, nikkei, look at the drops here, more than 2% in some cases, 2.5% for germany right now. look at the opening action, you mentioned we are lower under pressure here right now. still going through that shock of yesterday with that tariff news dow industrial down by half a percent. nasdaq seeing the bigger losses at this point by .8. let's look at the s&p futures you end up seeing movement here with this initial drop, which was likely on that slight uptick in the wage inflation in that jobs report. we kind of made up the ground, we had this brief turn around when kayla tausche reported that president trump is leaving the door open for discussions with china that could delay or change that tarif

courtney reagan is tracking the damage over there. >> hi, mike ft just off the session lows we were downbout 2. % for the nasdaq at the low. seema laid it out with retaliatory tariffs first and then new tweets from president trump. we'll watch these chip stocks carefully. continuing forward look at the damage that's been done today the etf that tracks the chip stocks down 4% here. this is a group that's hit hard when trade tensions flare up and looking at some of the components, the big chip names that are hit hard, look at names like nvidia, lam research and amd, down 6% here. apple, another name we talk a lot about in the trade war even though tim cook has a good relationship from what we understand with president trump it is in the middle of the tug of war responsible for 36 points to the downside right now on the nasdaq 100 hasbro's the biggest loser here in the nasdaq 100. not directly related to the trade war but announcing $4 billion to buy entertainment 1 after the close yesterday, and so that's a little bit of pressure back over to you guys. >> thank you. >>> joining us for the

courtney reagan is looking at the areas of retail where prices are rising >> we know companies pay the tariffs first and then consumers. retail stocks selling off today on renewed tensions in the u.s. and china trade relationship because clothing, shoes, toys, those will soon be subject to tariffs for the first time here in recent history. many retailers had forecast an upside inflection in the holiday quarter in order to hit their annual financial targets, but that was before the new tariffs. the better than feared retail results we had so far may not be indicative of what's to come wells fargo estimates the median negative earnings hit from the upcoming 10% tariff on the list for goods after mitigating strategy is about 5% in the companies they cover, but it does range somewhere between 1% and 55%. so j. jill is the one they identified with the biggest risk, then steve madden and skechers carters, gap inc., urban outfitters are also names they could be in trouble because of the china manufacturing exposure, and each manufactures the majority of their own goods. they don't have anothe

courtney reagan spoke with the home depot cfo moments ago and has more on those reports. hey, court >> weaker than expected results but different reasons for each home depot and kohl's beat earnings all three missing expectations for revenue. the street expected more at 3.5% instead of the 3% they reported. pri prices 50% lower on lumber and i spoke to their cfo she said company hasn't oob served any sales impact on consumers from tariffs home depot is modeling for impact of 2% of u.s. sales but with its mitigation strategies she thinks it will be a less than $2 billion hit however tome questions what happens to consumers broadly with more tariffs. if consumers start to slow down, more broadly, could it actually have an impact on gdp so as a result of that concern and that continued lumber deflation, home depot is cutting full year sales guidance kohl's fell more than expected they point to unseasonably cool and wet weather early in the quarter and says it hurt sales of spring goods but it improved with the weather and turned positive in the last six weeks by 1%. that con

month as you know for retail stocks made big moves since their earnings announcements this month courtney reagans here to give us more details. >> hey, tyler, so retail winners are delivering good merchandise, the right prices an with the option to blend physical and digit digital. so start with target they beat across the board upped its forecast com sales have been higher for nine straight quarters blending those two channels in a way that lowers fulfillment costs and boosts margins shares are up about 23% for target since wednesday's earnings in order strorm's shares are higher, however, largely short covering the quarter was pretty disappointing with a e lowest net sales rate since the great recession and the profit beat but on expense management. analysts skeptical that the department store will see the second half inflection that it's planning for shares are up 20% so worth noting walmart beat across the board. comp sales high e for 20 straight quarters. like target, improve d the integration of stores and online in way that's resognating with shoppers those shares are higher by about 5% s

shares gaining 10% marking the best day in about 11 years courtney reagan, cnbc business news >>> wellthis week we have been looking at the future of education. so far we have assessed the role technology can play in our learning experience and how we can upscale young people so they can perform the jobs of the future today we will discuss what the job market looks like today. china looks to transform it's work force for the jobs of the future eunice filed this report. >> china is famous for its vast work force and it wants to be known for its automated labor too. the country has the largest market for robots and hopes to use that to produce advanced robots for the world. >> human labor will be replaced by machines in the long run like in the cartoons and comic books we have watched and read from childhood, however that will be a very long process. >> chinese businesses see the potential for robotics technology cheeta has the robot meant to replace an office receptionist and an automated arm engineers foresee serving customers at coffee shops here. beijing is pushing home grown robotic

courtn courtney reagan has a look. >> under pressure since it reported in may.own about 22% in the three months the street isn't hopeful for a strong quarter here either looking for total comparable sales to fall about 2% followed by anthropology, free people estimated to gain 1.4%. the earnings expected to fall more than 31% over last year to 58 cents on a slight increase of revenues apparel has been a tough spot for many retailers lately. with upcoming tariffs the pressure continues both kohls and tjx pointed to strength never know >>> we've got five minutes left in today's session time for "the closing countdown. kevin joins us kevin, notable that home depot is the biggest winner now in the s&p. lows is a big executor is the third biggest winner what does it tell you about how the market is absorbing earn sngs. >> well number one, with home depot and low's. it's a great comparison. low's up 3% today. there's so many comparisons between the two companies with marvin ellison the exemployee at home depot taking over low's we'll see if they're closing the gap or

. >> how otule is the american consumer, and where are they spending courtney reagan is taking a looke retail trends kate rogers is at a chipotle to dig into the restaurant numbers and the maybe a little lunch, too, but let's get over to courtney who will kick things off for us hey, court. >> hi there, becky there are reports that economic activity in the united states may be slowing, but not when you look at the consumer that is very strong. in fact, we just posted the strongest retail sales five-month growth streak since 2005 and 2006, and the consumer may very well be what's holding up the economy because about 70% of economic activity is tied to consumer spending, but where we shop and what we buy is changing about a quarter of the nation's malls have closed since the retail building peak, and about 87% is the average occupancy currently. now since 2006, more than 160 non-food retailers have filed for bankruptcy 65 of them have liquidated in less than three years when you net out openings, 9,400 stores have closed, including 500 department stores just last year, and last year spen

courtney reagan joins us now with a sector scorecard.argue it's the most important sector out there. >> i like to argue that. >> because it is the driving force behind the u.s. economy. >> 70% of economic activity is tied to the consumer but it still takes more than a strong u.s. consumer so have a good quarter for a u.s. retailer. there's a number of retailers left to report including target, nordstrom, but it's been a mixed bag despite executives pointing to a healthy u.s. consumer walmart putting up the strongest report so far beating across the board and raising it's guidance. that's including the impact of the new list for tariffs the marrying of its stores and digital offerings proving to be desirable for shoppers it's grocery business both online and in store remains a key traffic draw now home depot had a mixed report with disappointing sales and a rare cut to full year sales guidance but investors were forgiving there and shares were up after that report. many believe it's still a best in class retailer. now macy's and tapestry

let's dig deeper into these retail names with retail analyst greg mall ek and our own courtney reagan. let's start with target's blowout quarter and their guidance, which was good. >> yeah, so target was similar to walmart in that both beat across the board for earnings revenue and comp sales the comp sales pretty strong, up 3.4% for target. so that was stronger than walmart's but still both of them have this momentum that seems to continue, and they're getting strength both from the stores and from online. the strategy that they've sort of been talking about for years and years how they're going to use the stores and online together target really did it, and they proved it in the numbers they offered these three options for same-day pickup. if you order online and you want to pick up your goods or get them the same day. it's pickup, it's drive up and shipt. those three were responsible for 40% of the comp sales growth so people are really using those services they're ordering online and picking up at the store and having a target employee load it inside, or they're going inside or pa

percent thursday's tariff announcements certainly rattled the markets and we're going to go to cou courtney reagan for more hi, court. >> hi there, tyler this announcement that came yesterday, it really moved fear into the reality for the retail sector, but 24 hours later, we're seeing some recovery in the stockprices. you just noted that etf that tracks retail. the xrt. now down just about half a percent. that's better than broader market, tariffs on goods imported from china, like clothing, shoe, toys, electronics will cost companies more when they import them and then those higher costs will get passed on to consumers in the form of higher prices. at least in some cases, by some retailers, so steve madden is down b about 3% or so and this is after shedding 9% thursday. that makes sense because 94% of its u.s. sold goods are made in china. but that's not necessarily the case for all retail. so thursday's wide and deep sell off was a little overdone for some names for instance, levi has said total annual china imports are less than 8% of its u.s. imports and that stock was moving lower. the impac

let's bring in jan ceo of worldwide enterprises and also a cnbc contributor and courtney reagan joins us, as well we can almost go down the list of individual names that some are like, wow, that's great. other are like, whoa, that's horrible a real bifurcation in the field that we talk about a lot >> the economy is pretty straight if you're off mall, off price you win. if you're off you win. if you're online only you win because your cost of capital is zero but other than that, there's freight compa great companies and some not so great companies. great numbers. walmart is a best company, costco is a best in class company and always is going to be there is also that dichotomy of the great companies versus everybody else >> what about kohl's that's off mall. >> off mall, full-price department store the customer thinks they're a full-price store like they think macy's is a full-price store you and i know neither one is. they think ulta is off price and they're not and they think children's place is and they're not because they're over on that side of the mall the strip center as opposed

here to break down the headlines are seema mody, robert frank and courtney reagan. we should be talking about bitcoin surging to new highs it's a safe haven trade. bonds are up gold is up but it dropped back below the $10,000 mark again extending declines from yesterday. it's still up 150% for the year. >> that's the big story. you speak to some of these exchanges that manage money. they'll say big picture, still up 150% so far this year i spoke to michael moore at genesis capital. no real news to speak ofs too why bitcoin has underperformed normal volatility in the bitcoin land i will say that we have seen this risk off rally. the dow up 340 points. 3.2% so far this week. has that made other assets less appealing for the week silver did stage a major reversal as did gold >> i like it because people can't figure it out the way they can't figure out gold. sometimes it rallies because it's going with inflation -- >> it had that run up when markets were really going crazy. i and others thought it was the safe haven trade where a lot of chinese and others just said yuan

"power lunch" begins right now >>> i'm courtney reagan. here is to do at 2:00 on power lunch.de world whiplash as markets close in on finishing a wild week, president trump fanning the flames saying he's not ready to make a deal with china just yet. should we brace for more summer swoons as trade tensions heat up, semis get slammed. there are a number of traders buying on this dip only 138 days until christmas. wall street already thinks it could be a sober holiday for the major retailers. we've got those details. power lunch starts right now >>> welcome towe

here to break down the headlines with lots of energy are leslie picker, contessa brewer, and courtney reaganlet's talk some deere, shall we? those shares are higher today even though the company missed estimates for the second quarter, it's about 13% below its recent highs how about caterpillar also rebounding today, but 27% off its high which goes all the way back to october 2018 both companies talking about uncertainty with the trade war with china contessa, main question. is all of this price action now telling us that the bad news is now largely priced in? >> i do think a lot of the bad news is priced in. the problem is that there's really no resolution in sight. weather is never a controllable factor in farming for especially the soy bean farmers that had already gotten hit by the tariffs. there was a 50% drop in overall exports to china from 2017 the and when you look at soy beans in particular, then they got stuck because of flooding trying to get those shipments down to the port of louisiana. how do you overcome that >> so all that said, the fact that deere's only 13% off the highs.

but we begin with today's markets and courtney reagan down at the nysc. >>hi, kelly. happy friday well, markets seem a little inclined to hang in there. we are even seeing some resiliency today stocks well off session lows at one point the dow was down 334 points, now down about 255 the latest round of tariffs of course does have traders asking though if that rally that we've seen is over the bulls though, they've got a lot of things to say why it's not. the u.s. economy still holding up there's still plenty of cash on the sidelines. global central banks are inclined to keep the stimulus coming any way they can. there wasn't an earnings recession. but the bears are honing in on the fact that the trade truths look to be a little broken stocks are looking pretty expensive, and there's a chance that the fed can only do so much to help cushion the blow from the global economy weakening still, industrials like caterpillar, deere, united rentals are still under pressures. and transports falling back into correction territory now, retail really slammed yesterday on this new

"power lunch" begins right now >>> i'm courtney reagan. here is what to do at 2:00 on power lunch. trade world whiplash as markets close in on finishing a wild week, president trump fanning the flames saying he's not ready to make a deal with china just yet. should we brace for more summer swoons as trade tensions heat up, semis get slammed. there are a number of traders buying on this dip only 138 days until christmas. wall street already thinks it could be a sober holiday for the major retailers. we've got those details. power lunch starts right now >>> welcome to "power lunch. scott walker the dow off the lows of the day when it was down nearly 300 points on the trump comments we just mentioned the s&p 500 coming back a bit. the nasdaq the big loser down more than a percent. check out the small caps in the transports, goth groups rebounding yesterday, but sinking deeper into correction territory. more on those moves a little later. >>> as scott mentioned, stocks in the red as president trump told reporters no deal is coming with tauschh china. >> reporter: the comment by preside

here to break down the headlines, courtney reagan and indicate picker.s not just a one-day story. you've got names like macy's, tapestry coach parent, capri holdings, which is coors i need a cheat sheet to keep this all straight. they're all hitting multi-year lows macy's is 55% off its high now we'll hear from walmart and tapestry, too. tapestry is trading at its lowest since 2009. >> the tapestry movement, i don't think we should tie to tariffs. and if we are tying it to tariffs, i think it's oversold here and i say that because over half of what tapestry sells in the united states are handbags, but in less than 5% of those handbags are made in china >> so is this a china story at all? >> i don't think it's a china story at all, or it shouldn't be i don't know why people sell it. and i will say -- >> because that one is also 51% off its recent highs >> and we did see in fairness big sell-offs in tapestry on the days that all of retail was being sold off but i don't think that's a thoughtful trade >> is there a common thread between these names. they al

courtney reagan has been listening to the conference call she is back at headquarters with more court reporter: hi there, melissa i have to say it is a strong reaction for a report i would classify as mixed as best. nordstrom beat nicely on earnings, i will give you that, but missed earnings expectations and lowered the guidance for the year nordstrom said it is evaluating the list for tariffs, cfo dropping in only briefly during the call. >> the impacted tariff has not been incorporated into our outlook, but we believe it will be relatively immaterial for the year >> some welcome news the department store says the quarter got off to a slow start after a disappointing first quarter and the anniversary sale was softer than expected on earnings call the co-president said the department store ran out of top items in the anniversary sale faster than planned and faster than in years past it was sort of left with some unsatisfied demand there now, nordstrom's q2 ned salt sa were down 5% the full price segment, that's the department store, that for the net sales down 6.5%, and the nordstrom

mausy's ceo jeff gwinnett telling our own courtney reagan last quarter if tariffs are levied on the remaining0 billion worth much goods which looks like is happening now it could "really impact our categories it's not in guidance and when you do the math it is hard to find a path through that would not impact customers." so with that said, now that we know the tariffs are coming, what do you think of retail? >> i don't like retail for that exact reason the one thing that retailers have been doing across the board is they've been absorbing some of these tariffs and they've been keeping prices low. china's actually kept prices low. but now it's getting to a point where you can absorb 5%, 10% but at 25% tariffs if we start to go 10% to 25%, that becomes a real problem prices start to rise and sales are going to go down so any of the ones like walmart, that chart looks terrible. any of those names that have exposure to that, to me are just no touches >> i think there are certain pockets of opportunities within retail one of the companies we like is tj max right? kohl's and macy's, they can partic

. >> you know who should be here to talk about this >> courtney reagan perfect timing how much better- i mean, target was already up how much this year? and it is up 20% today >> this was pretty astonishing it's that winners keep winning we knew that walmart was strong. we had suspected once we saw walmart's numbers that target would be the same largely because while there are different retailers, they are employing similar strategies >> what are they doing >> so what they're doing is they are really kind of leaning into the stores to be honest. walmart did close some stores, but they didn't go through this big store closure program like many others did. in fact, target said, hey, we are going to remodel stores, we are going to add a bunch of smaller ones and we are going to use them as fulfillment hubs i think a lot of investors and analysts were wondering if it was going to work. 40% of their comp sales growth from this quarter came from the same-day options that are fulfilled through the stores >> now. >> i'm interested in the lowe's story. it also did very well and had actually be

i'm jon fortt alongside courtney reagan and wilfred frost live from post 9 at the new york stock exchangearl and morgan have the morning off. stocks in the green red higher by tech this morning the nasdaq is on pace for its largest weekly gain in more than ten weeks. but with today's move to the upside in a sector largely exposed to china and ahead of another round of expected tariffs in just a few days, where should investors be looking for protection joining us now to discuss, oak mark fund portfolio manager bill nygren and nsz capital cofounder, bill slingerlen brad, you have some thoughts specifically around where is a good place to put money at this point. specifically as it relates to regulation coming down the pike and semiconductors give us a sense, start with semis. >> sure. so you know, we think there's no more interesting spot in the tech sector today than in the semiconductor segment, particularly for long-term focused investors. we know there's a lot of noise and a lot of volatility around the trade war and the trade talks that are going on now. we think ultimately, we're ent

courtney reagan has more on the retailer's quarter >> so the markets, of course, have been worried a little bit about an economic slowdown, but walmart's results show the opposite, at least when you're thinking about the consumer. the world's largest retailer saw its comparable sales top analyst estimates growing at 2.8% that's the 20th straight quarter of growth for that metric. grocery, a big contributor to the gains, although walmart says sales strength was pretty broad-based, picking up after a slower start to the quarter from some disruptive weather. ecommerce sales contributed about half of the sales gains. u.s. net sales grew 37% and that matches the growth rate we saw from the french quarter. also slightly above the 35% full-year guidance for that metric now, in mid-may, walmart announced it was rolling out free next-day online order delivery in several markets. today, it said it's already available in 75% of the country. that actually was the original goal for the end of the year, so they're ahead of that. and walmart's u.s. operating income also up 4%. that's growing for th

the stock losing nearly half of its value just this year courtney reagan is here to look at some of the issues affecting them or many of them >> some of issues are self-inflicted some of them are external for macy's too shopper didn't love some of the private label women's sports wear merchandise that macy's had out and sales of warm weather clothing in general were slow, adding international tourist spending again down, but this quarter by 9% compared to 3% in the first quarter. you got a mess tourists typically buy full price merchandise and make few to no returns. so it is kind of a big hit when you're missing those sales as a result of all that, macy's discounted merchandise more than planned to entice consumers it buy and that took a big bite of their earnings and margins analysts say it was the right thing to do to go into the second half of the year. there is also massive economic head winds and uncertainty ahead. i asked jeff gennette about the economy and the consumer and he said, look, there is a lot of noise to sort through. the negative, tariffs, tourism being down positive,

joining me are courtney reagan, dom chu, and seema mody. let's talk some shares at macy's tanking today on a major earnings miss and trading at a 9-year low yesterday we saw some relief for the retail sector because the tariffs are being rolled back a bit. even now it's not clear that there was that much relief in that now today the whole sector is tanking again. >> i think there was a lot of confusion yesterday. there still is to be fair. but let's go through macy's. so there were some internal problems to be sure but also some external factors. so macy's said, look, we had a misexecution a lot of our womens sport ware, mts wasn't what the consumer wanted to buy. a warm weather clothing, that sold pretty low too. and this has been a problem for more than a year in the u.s. that's a problem because international tourists when they shop at macy's are buying fuller-priced merchandise so they're not going for the sales racks and they have few to little returns so when you see that drop shortly from the first quarter, that's going to be an issu

1.5% that was the trigger tomorrow will be another big day for earnings in the consumer sprays courtney reaganiffany and pbh let's start with courtney. >> well, tiffany and pbh are the first retailers to report since the trade juarez war escalation friday investors want to know how the changing policy impacts forecast tourist spending going to be key for both results as well last quarter pvh ceo said the trade dispute had not hit the retail company yet, but lower international tourist spending were concerns. tiffany hair shoulders are watching to see if tourist spending worldwide has improved after tourist spending fell 25% in the u.s. last quarter >> brown foreman is the other big consumer company reporting results tomorrow frank holland gives us a preview. >> hi, mike. they are expected to report an eps of 37 cents, a 9% decline year over year the ceo lawson whiting calling 2019 the year of the tariff and saying that tariffs had a $125 million negative annual impact on the company another thing to watch for are sales of jack daniels. last year they were flat for the iconic spirit, while its

consumer is key in all of this retailers like home deposit and tjx reported results our courtney reaganhi, carl. unexpected results home depot and kohl's beat earns, tjx online, all three missing sales. home depot agree 3%, expected 3.5% the big reason for the weakness continued deflation in lumber worth $340 million in the quarter. on the call the company gave the example that a 4 x 8 osd lumber sold for average $4.60 during the quarter. that's 50% less than the same price last year and down further from the price in the first quarter. so lumber is off in the starting project -- starting .4 project and that's why followed so quickly and so important home depot cutting four-year sales guidance as it expects lumber depreciation to continue and prudent about impacts new tariffs will have on consumers overall, not just its business there hasn't been an impact that home depot can see so far to consumers from the tariffs now, kohl's comparable sales dropped 2.9, 2.a unseasonably cool in wet weather third quarter, that's what hurt sales of spring goods. michelle goff said improved during the

courtney reagan with more on the numbers. >> hi there.n quite day already for lowe's and target. right now lowe's shares ahaving the best day in a decade target on track for the best day ever target put up a strong second quarter across the board much like competitor walmart, target beat exceptions on all metrics including 20 cents better for earnings. target raising the full year forecast range by 15 cents the company is taking into account the first half of the year's results and acknowledging marketplace volatility is a reality when coming up with that forecast, including, of course, what we know about the tariff picture right now. and on a media call i asked the ceo about the consumer in the economy. he said as i have said for some time we continue to see a healthy consumer environment consumer confidence is strong. there has been a reduction in fuel prices which we think is important for consumers. unemployment remains low and wages are growing. target's comparable sales 3.4%, strong traffic growth, too same day order fulfillment ser

courtney reagan has those numbers for us >>> so we have the stock going lower for etsy after hours downy just about 2% that is well off the lows after putting up a mixed report 14 cents. analysts had expected 13 cents so slightly better than expected revenue coming in at $181 million. the street was looking forr e$13 million. sales was stronger than expected and the guidance for the full year and revenue looks to be relatively strong as well. back over to you, sara >> courtney, thank you let's get to go pro's results. josh lipton? >> go pro an eps of 3 cents and expectations of 4 cents and revenue of $292 million. so on the bottom and top, the company says it will be raising its outlook for the second half of this year camera units $1.1 million. their subscription service surpassed active paying subscribers so that's up 15% did you know that in june go pro, they say in mexico. remember they had told us they had this plan to insulate against possible tariffs back to you. >> josh, thank you go pro down 5% the standout, up a healthy -- do you have it coming up again? >> it's up double digi

. >> let's send it now to courtney reagan back to headquarters for cnbc news update. >> reporter: hi,ara. cnbc news update brazil will reject the offer of aid for amazon rain forest unless french president macron withdraws insults according to brazil's presidents the two leaders exchanged public bars in recent days. g7 offered aid of around $20 million on monday. >>> italy's popular five star movement halted talks ruling coalition with center left party demanding five-star member stay on as a member five-star suspended talks to ruling coalition hours before negotiations were set to continue malaysian's prosecutors wrapped up their first case against former prime minister najib, called 57 witnesses in the five months since the trial began all tolled faces cases linked to multi-billion looting of one mdb state investment fund. >>> finally, suggestion on social media on what to name the new capital. no clue what the city would be called there are suggestions after the president, joko widodo that's the update. back over to you. >> that's a weird one. courtney, thank you. watching the mark

courtney reagan focusing on the retail earnings. bob, first you on the market. >> hello, david.he markets are still moving roughly in relation to bond yields and of course, we saw the yield curve briefly inverted the market also weakened shortly after the opening. another reason we saw different things going on here we saw the august pmi report showing manufacturing activity was weak in august, it was below 50 indicating contraction. the lowest read in ten years and the services sector notably weaker tim moore at ihs market who did the survey released a statement saying the most concerning aspect of the data is sharp loss of momentum across the services sector you have got gyrating rates and a flattish market right now. back to you. >> all right bob, thank you very much we'll send it to mike santoli for the market dashboards. >> here's what's coming up start off with less than zero. you can imagine that has to do with yields. how green my valley, the valley reflects investor sentiment. we have pit and the pendulum swin swings back and forth in a big sector the stock market play

courtney reagan is here with a rundown of exactly what to watch. hey, court.e, scott, it's going to be a big day and a wide variety from hardware to crop tops whachlt what a mix it's going to be tomorrow home depot expected out before the bell comps expected to rise about 3.4% investors are going to want to know if some of those delayed home improvement projects from the spring did eventually end up getting done in the summer months and then we're going to hear from kohl's. those comps are expected to be down about 2.4%. the department store has struggled since earlier this year investors had a lot of questions about the tariff mitigation strategy now that we're going to have a list, part one in september and part two in december shares are down about 25% for kohl's since their last report and urban outfitters is going to report after the bell. that whole company is expected to see comps fall 2% to name sake brand urban outfitters is going to be the weakest segment according to analysts' estimates. those shares also under pressure down about 23% since its last

big week of earnings continues courtney reagan with a look at some of those names.> reporter: good morning. you're right there are some big moves in retail today dick's sporting goods putting up a strong quarter raising the full-year forecast that's with the impact of these upcoming tariffs comparable sales growth of 3.2%. positive comps at stores and 21% e-commerce growth contributing to that. hard lines, apparel, footwear sales improved the ceo says our major headwinds are behind us. now, l brands beat on earnings but missed on revenues, total comps fell 1%. victoria's secret comps down 6%. l brands reaffirms its guidance. on the guidance the cfo said significant changes made thin fl merchandise along with the current trade and tariff uncertainty leads to levels of uncertainties in forecasting but we believe customers will react positively when he said that august it date trends having been sufficient to overcome the weakness in the lingerie assortment, shares plunged. nordstrom shares are up. it wasn't a good quarter the department store beat on earnings but with

investors starting to pick out some potential names worth buying courtney reagan has that story. >> good war of course has hit retail stocks pretty hard. knee jerk selloffs haven't kept valuations depressed for all names. there is a realization that not all retailers will be hit equally hard by tariffs. in fact, for some stocks the worst may be behind us in early may the etf, xrt, took a leg down after trade talks between the u.s. and china broke down and that third list of tariffs entriesed from 10% to 25%. the xrt started to rebound in early june only to fall again a week ago when president trump said a 10% tariff would be implemented on the final $300 billion worth of chinese-made goods on september 1st. the xrt is down more than 12% since that may 3rd high when trade talks started to fall apart. but a number of retailers are higher than that previous high point. perhaps suggesting a near-term floor for some so costs go up more than 12% before may 3rd ross stores and dollar general up 9%. target up 7% ebay and walmart up 5% above that may 3rd high. could change in retailers report thi

courtney reagan with more on the numbers. >> hi there.y's ceos jeff gwinnett said they started slow and finished below expectations earnings miss being i a wide march. earnings took a hit because they discounted merchandise to entice buyers to b shoppers to buy it th so international tourism has been a weak point for a year for macy's sales were down 9% for that group in the quarter compared to down 3% the prior quarter. and typically international tourists by full-price merchandise with few to know returns. those are high-quality sales they are missing i spoke to the ceos who said we took our medicine, we took almost a full point of margin with additional markdowns to address the inventory issues now, department store is lowering its annual earnings guidance range to reflect this quarter's miss the forecast doesn't actually include the new tariffs because macy's is still, frankly, evaluating the details of that gwinnett is also changing his thoughts on higher prices as a result of tariffs. he told me they learned from list three tariffs