. >>> coming up, retail is a big theme for earnings next week courtney reagan will give us the setup we'll debate the effects on the consumer. "halftime report" is become after this ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪ ♪ drumroll by lónis, little league ♪ ♪ ♪ this just in ♪ ♪ got the keys to what you want and what you need ♪ ♪ something new something sweet ♪ ♪ moving to a different beat ♪ ♪ okay now (what?) ♪ ♪ can i get a (get a) drumroll? ♪ ♪ (what?) can i get a drumroll drumroll? ♪ ♪ (what?) ♪ ♪ can i get a can i get a drumroll please (oohh) ♪ ♪ that's nice (yahh) ♪ ♪ ♪ ya, can i get a drumroll, can i get a drum- ♪ ♪ that's nice ♪ nice footwork. ♪ ya, can i get a drumroll, cman, you're lucky, watching live sports never used to be this easy. now you can stream all your games like it's nothing. yes! that's what i'm talking about. [ cheers ] running up and down that field looks tough. it's a pitch. get way more into what you're into when you stream on

courtney reagan, thanks so much. mentioned joe terranova hear as well.s a shareholder in lieuulu. >> i think a lot rides on how strong demand is from china. lulu, the ability to expand the story beyond the high end consumer here in the united states resided itself in international in particular for china. china's going to be a focus for me. this is company that has been incredibly consistent in delivering revenue growth 12 consecutive quarters. options market kind of pricing in a 5% move one way or the other, but i think the potential is there for a beat and raise. >> you really want to be hanging your hat, not you, but, you know, expectations or investors hang your hat on what's going on in china right now? >> i think that can be the surprise for this company because it's the distinction between other retailers, why would lulu stand out with strong growth, strong demand from china while other retailers have signaled they haven't. well, if in fact, that's what they deliver, that's why you want to pay a premium for this high end retailer. >> 52-week high

courtney reagan, good retail stories these days seem very few and far between.ctly, scott. we're expecting to report earnings there but 9 cents and revenues of $3.5 billion sales he can pecked to fall 4.4% richard dickson started two days ago. not responsible for the quarter but will join tonight's earnings call gap shares rose in june on his hiring but 4% down since then. dickson has a big job to turn around this retailer it's struggled during the pandemic but then also it had fashion that consumers weren't so into and inventory of all off kilter a decent amount of executive turnover as well at a number of brands and large store closure program the company has been working through. i think this needs some new gap magic. we'll see if dickson can do it and how long investors give him to do so these things take some time, of course, to start a new strategy and implement it we'll see how long he gets to do so >> we'll see you in "o.t." with the results there. we're watching for affirm, buy now, pay later speaking of stocks and charts that don't look great, down 18%

. >> let's get to courtney reagan in for the judge >> welcome to the "halftime report."or scott wapner stocks retreat as the banking sector gets battered with a downgrade. our investment committee standing by to break down the fallout. joining us josh brown, britain talkington and stephanie link. a check on the markets to see where we stand before we dig into the details the dow jones industrial average, the s&p 500 and the nasdaq lower the nasdaq is lower by the biggest percentage, down 1.5%, same with the s&p 500. we have the

courtney reagan, we will find out. >>> the other story, toll brothers.xpectations are, but the stock is down near 7% in a week and 7% is a key number because mortgage rates are north of 7%. >> what a coincidence, right? it's all about mortgage rates. toll is expected to increase revenue and earnings as the luxury home builder capitalizes on strong demand. they reported while sales were down in every price category in july, they were down the least in the million dollar plus range and toll's average price last quarter was roughly a million dollars. they were outperformed by raymond james last month and i would flag the mortgage rate, the changes we've seen over the past quarter. the 30-year fixed was around 6.5% at the start of may but spent june and july solidly over 7%. in the last quarterly report the ceo mentioned improved demand, combined with a strategy of increasing supply of spec homes. we'll see how that plays out in this new range of higher rates. >> thank you so much. we'll look forward to seeing you in "overtime" with that report. so, mike, we

underperformance, they say after seeingtive data on china and a cyberattack earlier this month courtney reagananalysts are pointing out interesting things like tradedown amongst china consumer in brands. things like that that give you signs there is weakness in the china consumer. >> the asia area in general really important for this company. 35% or more of their sales come from this region the recovery has been spotty, particularly in this duty-free area the travel area has not been as robust or stable as some had hoped. to your point, they're seeing some evidence of some tradedown from premium cosmetics to mass cosmetics. estee lauder has tom ford and mac and clinique and some that aren't quite as prestige if you're seeing that trade down from premium to mass, estee lauder is one of the names that will be hurt interestingly, the company disclosed a cyberattack. they put out an 8-k but didn't give a lot of details other than saying it did have an impact on the operation and is going to continue to have an impact there's a lot of analyst concern about that because they're vague about the detai

. >> courtney reagan is in for the judge, let's get to post 9. >>> thank you very much, carl and sarartney reagan in for scott wall ner we enter the critical 24-hour period ahead for your money. we will have a key inflation report on deck plus more earnings coming your way joining us for the hour is joe taranova let's get a check in on the markets. as we take over at the exchange we are seeing the lows of the session for the dow. you can see a noticeable down trickle in the last hour information technology, big cap stocks are

mike santoli is here, plus courtney reagan on what to expect from another busy week of retail earningstsinevelos on what to watch out for. palo alto's release. we've talked a lot about it. it's a rarity to say the least. how about this move late in the day? getting a little green across the board. >> at least a sense out there of relief that it's not one of these daily self-reinforcing sell-offs. we still very firmly have this multiweek down troend in place. it shows a little bit of calm in the bond market. goes a long way after we've gotten just slightly oversold in stocks. still not the broadest rally, but i think it's -- it makes sense that we're able to at least find a little bit of footing. we have options. expiration, maybe that does cleanup positioning a little bit going into next week. >> and courtney reagan, speaking of next week, what about the two retail movers today. give me that first and we can look ahead at what's at stake next week. >> ross stores did report the results after the bell, so today was the first day of trading that we got to react to it. really, it was very

courtney reagan is getting ready ea the other side of this quick brk. moment fficient? i'm listening. well, with ibm, you can use software to help you connect and analyze data— from hvacs to elevators to lights. what if we use ai-driven insights to pinpoint inefficiency? yep. and act on it. saving energy, money... ... and emissions. yup. that's a big one. now you've built something better for everyone. that's the sustainability solution ibm and a global real estate company created. what will you create? ibm. let's create. my cpa told me i wouldn't qualify for the erc tax refund, so i called innovation refunds. their team of independent tax attorneys will work with your cpa to determine if your company is eligible. [whip sound] take the first step to see if your small business qualifies. ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! fin

i'm courtney reagan. the fed releasing the latest fed minutes.ead going into this for the major averages dow, nasdaq and s&p 500 all lower but just slightly. we'll see if anything changes. it has been somewhat muted day here at least right now before we hear more details on the fed's thinking, will they hike, will they pause, we'll have to wait and see we're going to discuss everything and see if the market can make some moves. of coursed watching the yields and ten year as well steve liesman has the details for those minutes. what you got >> minutes from the fed's most recent meeting show that most of the participants in the meeting still saw significant up side risk to inflation that could require further tightening so at least in that one statement there, pretty hawkish outlook from the federal reserve. but hold on before you make your immediate trades because these minutes are a mish mash. some saw down side risk to the economy and up side risk to unemployment so that kind of sort of works against that but it is a smaller number tha

raising full-year guidance after a top and bottom line beat courtney reagan bringing us an interview with john david rainey at the bottom of the hour. >> expectations were high for walmart going in even after what we heard from target we heard much of the differing of opinion between walmart and target we talk about the merchandise mix and how that's different between walmart and target because of the overindexing in grocery walmart does that drives frequency. they talked about the higher income consumer that's coming to them what i found very interesting is when i spoke with john david rainey this morning, he said yes, there was softness in discretionary but it improved from last quarter. i think there's a big question about what's going on between these two competitors, target and walmart. if walmart is actually pulling share from target, and if that is happening, can they hold onto it i think those are pretty big questions we need to ask. >> i watch the package food companies often trade off walmart but they're all at 52-week lows kellogg, general mills, which is interesting. did

cnbc senior retail reporter courtney reagan joins us with the sentiment on these two stocks, pretty far apart, courtney >> very, very, very far apart. going into this, target had hit a 52-week low, and walmart had been up 5% over that same three-month period we know that their businesses are very different, largely because of mix, which seems to matter now more than ever before, with walmart overindexing in those categories that target calls frequency the categories, food and beverage, with some of those categories with over 56% or so of sales target, of course, really pushes more into those discretiona ary categories that are considerably weaker than target had expected. they talked about the weakness last quarter not only did it continue next quarter, but are forecasting it to continue going forward, taking down their guidance sharply for both sales and profit for the rest of the year, even with a 41 cent beat, they're taking down the full-year profit forecast by another $1 >> the inventory numbers were interesting. we mentioned down 17 but down 25 in discretionary it does seem like e

. >> let's get to courtney reagan in for the judge >> welcome to the "halftime report." i'm courtney reagan in for scott wapner stocks retreat as the banking sector gets battered with a downgrade. our investment committee standing by to break down the fallout. joining us josh brown, britain talkington and stephanie link. a check on the markets to see where we stand before we dig into the details the dow jones industrial average, the s&p 500 and the nasdaq lower the nasdaq is lower by the biggest percentage, down 1.5%, same with the s&p 500. we have the yield on the 10-year in focus as we are dropping below or have dropped below 4% we want to pay attention to that the vix moving around 18 some movement something we haven't seen in a while. when looking at the sectors, tech and financials which really the biggest laggards of course we have the big cut from moody's today we want to dig into the financials red across the board after the firm cut credit ratings for a number of these banks. 10 small and mid sized banks also put a number of others on watch. i'm going to start,

>> this is the first time we'll see the impact, if any, on results of the boycott thank you, courtney reagan >>> coming up, the writers strike has passed the 100-day mark, one of the longest in recent memory, but a breakthrough may be on the way as parties return to the bargaining table we'll look at what's at stake for the media giants as a new tv season approaches. ese bills aree has no idea she's sitting on ae goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. >>> some news today negotiators in hollywood return to the bargaining table today as that strike that ground production to the halt crosses the 100-day mark that and the impact on tech and media companies is the subject of today's "techcheck" segment with our own julia boorstin in los angeles. julia, light at the end of the tunnel >> light at the end of t

courtney reagan joins us. the note is the analyst did say, we were wrong being overweight on the stock. it's underperformed so far this year. what are the big concerns? >> look, when you look at chewy's quarter, it was okay. but in linish, a little softer than some expected in some of the metrics. it's going forward, i think there's a lot of concern. the loyal customers are still spending actually more so than they were a year ago when it comes to that recurring revenue. you can set your pet's items to come on a recurring item like food and the like, things you're always consuming for your pets. that is doing well. the loyal customers are spending more. the problem is that the customers they have just seem to be falling. the net adds is a real concern currently and going forward. that's part of what evercore is concerned about. but also the discussion by the company that there does seem to be some more disconcerting spending with shoppers that are still shopping on its site. so, that's obviously a concern goin

. >> courtney reagan is in for the judge, let's get to post 9. >>> thank you very much, carl and sara i am courtney reagan in for scott wall ner we enter the critical 24-hour period ahead for your money. we will have a key inflation report on deck plus more earnings coming your way joining us for the hour is joe taranova let's get a check in on the markets. as we take over at the exchange we are seeing the lows of the session for the dow. you can see a noticeable down trickle in the last hour information technology, big cap stocks are trending lower, nvidia down 4% obviously we have the big inflation data coming out tomorrow but, joe, what's driving this we knew that the inflation data was coming out tomorrow, with he knew we have had these economic worries, percolating talks about impending recession coming back up again yesterday what's going on now? >> the treasury auctions are important this week. after the three year auction at 1:00 p.m. there was opt mirk, markets lifted off of the lows, there was a belief and the demand was relatively strong what's happened this morning is that

courtney reagan today on retail. another note grabbing our attention is jpmorgan, initiating qsr at overweight, expecting nearly 20% upside. they sense a sea change in the business especially after last year's appointment of former davos chair. they expect international growth from burger king and horton's where some of the comps, kate rogers, have been impressive. >> definitely impressive and better than they performed here in the u.s. the headline of this note, though, does outline that burger king and qsr story is a complicated one. obviously the mention of patrick doyle, who laid the foundation for the technology pipeline, that has brought domino's so much success over the past decade is key here. he's one of those essential changes the note mentions being brought on as executive chairman. he invested $30 million of his own money in qsr stock to be held for at least five years. very much a vested interest in this turn-around happening. this 40,000 store growth unit will be achieved by 2029. it's going to be drive

pippa, thank you. >>> let's get to courtney reagan for the cnbc news update., contessa. >>> former president donald trump's legal team filed a motion to sever his case from 18 co-defendants in the georgia election case who are asking for a speedy trial. the court filing came hours after he waived his arraignment and pleaded not guilty in the case. it also came on the day georgia governor kemp dismissed calls for a special legislative session to remove the d.a. who brought the charges against trump. >>> the biden administration proposed a new rule today to eliminate the so-called gun show loophole, essentially requiring anyone bwho deals in firearms fr profit to get a federal license and conduct criminal background checks, regardless of where they sell firearms. it is one of the biggest attempts to regulate the sale of guns in the u.s. in years and likely to be challenged in court. >>> harley-davidson is recalling more than 65,000 motorcycles because they could be more likely to crash. according to federal highway safety regulators, some models of the soft-tail

i am courtney reagan with your cnbc update.bers of the federal grand jury are back in the d.c. courthouse today they're hearing evidence and testimony into his alleged interference in the 2020 election >>> thermal fisher says it reached a settlement with the living relatives of henrietta lacks suing the company over its routine use of lacks' so-called helio cells taken without her consent when she received treatment for cervical cancer. the 31-year-old mother of five died in 1951 from the disease. the terms of the settlement will not be made public. >>> president biden is scrapping the trump administration plan to move space headquarters to alabama. the pentagon announced it will keep space command in colorado white house officials deny alabama's restrictive abortion law was a factor in the decision back to you. >> courtney, thanks so much. courtney reagan. >>> after the break, the return of the meme trade, tupperware brand, is continuing to rally. the stock is up more than 500% over the last month. we will take a closer look a

but could quarterly results trip it up or give it a boost i'm courtney reagan in for melissa lee.his is "options action. on the desk, mike, carter, and brian. we are going to start a big week of earnings on deck with big box retail front and center, home depot, target, tjx and walmart some of the big stocks ready to report all of these names have underperformed the broader market, but could there be a retail revival for one of them the chart master is looking at the technicals carter, what are you seeing and what name? >> sure, bit let's drill down on home depot just to put this in context, walmart is making a 52-week high they are all different, has been a laggard. it's down 22% from its high. the s&p is down only seven let's look at three identical charts so weekly bars, no drawings, no lines, no judgments. let's put some in. it'sration two what do we have? converging trend lines, strength that is enough to move up and out of the apex of that formation. another way to annotate it, third and final chart, would be as follows whether you want to call it a cup and handle, double bot

but could quarterly results trip it up or give it a boost i'm courtney reagan in for melissa lee.

i'm courtney reagan in for melissa lee, this is "options action" live from the nasdaq market site.e have mike khouw, carter worth, and brian stutland. a big woke of a earnings on deck big box front and center target and walmart, some of the big stocks ready to report, all of these names have underperformed the broader market but, could there be a retail revival for one of them? the chart master is looking at the technicals carter, what do you see and in what names >> sure, you bet let's drill down on home depot while they're all different, it's been a real lagger. in itself it's down 22% from its high, whereas the s&p is down only 7 let's look at three identical charts so, weekly bars, no drawings, no lines, no judgments. put some in. iteration 2, what do we have we have converging trend lines, we have strength that is enough to move up and out of the apex of that formation. another way to annotate it, third and final chart, would be as follows, when you want to call that a cup and handle, double bottom, doesn't matter what you call it, it is the element with a definition of a turn

i'm carl quintanilla with courtney reagan. david faber here. sara eisen has the morning off.g losses for august. we'll watch that closely. >> 30 minutes into the trading session. three movers we're walking. ambarella plunging. the ceo warning of a challenging environment as customers reduce their unveninventory. hp falling also. and watch shares of pvh, beating on the top and bottom lines and solid growth in the asia business, of course that's the parent company of tommy hilfiger and calvin clein. >>> july numbers pending homes, signed contracts not yet closed, so they give us a glimpse into the future. up .9%. up .9%. believe it or not, that is the best number going all the way back to january when it was 8.13. so even though that's the comp, it was much higher in january. now if you take a year over year perspective, minus 13.8. minus 13.8 and we haven't had a positive year over year number going all the way back to november of 2021. but that's sort of normal on the year over year looks. that series started in '02 and the first year and a half it was on record, it was prett

some of the retail winners, a beat and a raise has shares of abercrombie surging this morning courtney reagan joins us at post nine and has the ceo >> let's bring in abercrombie & fitch ceo, fran horowitz what a quarter this is the second quarter in a row that abercrombie may end up being the standout of all the retailers. when we look back at it, sales up 26% i think it might be prudent, if you would, to sort of walk out through the changes that you've made with the brand itself i'm not sure that many of the investors understand what abercrombie looks like today, especially if they shopped there in their younger years, and how different it is. i think we have some video that we can share, potentially, while you sort of give us a walk through of how you changed the brand. >> i would love to, courtney so today is the culmination of many years of hard work. not only have we changed the brand's positioning, but we've really transformed the entire company, from top-to-bottom. if you think about abercrombie back in the day, it was really a jeans and t-shirt company. and today, it's truly a lifesty

start for free at godaddy.com >>> it has been a busy week for retail let's bring in courtney reagan retailer shein joining forces with forever 21. what's the story >> shein would probably shudder when we call them a chinese fashion retailer yes, they were started there but have no revenue in that area pre shein, though, is partnering, as tyler said, with forever 21 owner sparc group, the joint venture between authentic group and simon property group this partnership ties up e-commerce and branding. there's benefit for all three partners shein gets expertise in physical stores selling fast fashion in the united states. it potentially looks to ipo. forever 21 gets shein's expertise and faster fashionability on responding to trends in an on-demand small batch way. something they don't do quite now. and sparc hopes to expand business shein gets a third of the interest in sparc group. rumored to be exploring an ipo any expertise is helpful >> is shein a retailer or manufacturer or both >> only an e-commerce retailer and they do manufacture so it's their own goods, they also have expanded into som

our own courtney reagan at post nine on set with a special guest. hey. >> thanks for having me. jeff gennette thanks for joining us to talk about the quarter and beyond. we'll start sort of right there where carl made the introduction for us. you had a nice quarter. your earnings beat substantially, double analyst consensus. why not raise your full-year earnings forecast? >> so, hi, courtney, great to be with you, and see you again. we take a cautious view right now of the consumer. we've been talking about this consumer for the last number of quarters and we're taking that all the way through the back half of the year. there were some good things that happened within the quarter. we, obviously, beat on what we expected in terms of sales and gross margin as well as sgna expense, but we did have shortfalls when we looked at credit income and we also kind of took note of where the consumer is. what are the tailwinds when you think about savings rates, but what are coming in as potential new headwinds like what's going on with student loans and the expiration of the loan forgivenes

courtney reagan joins us now as the stock is surging this morning. >> yeah.ink it's actually on track for its best day since november of '22 right now in the early going of trading, but best buy's ceo did reiterate what she said previously last quarter. she expects this calendar year to be the bottom of the downtrend for consumer electronics and does expect that to pick back up next year. she did narrow her full-year guidance range for the sales guidance, though continuing its ability to control costs which does increase profitability for the retailer. now corey berry expects the industry will stabilize, hopefully, next year, possibly grow, with that natural upgrade cycle in tech innovation. insider intelligence projects consumer electronic sales will grow just 1.1%, totally retail sales will increase at 2.9% this year. the firm notes the sector did see sales grow nearly 14% in 2021 and the replacement cycle for consumer electronics spans between 4 and 10 years depending on the category. now best buy's earnings and revenues stronger than expected. comparable

courtney reagan speaking with ceo marvin ellison moments ago. joins us now. court, it's been a busy morning. >> it has been. i have to keep these retailers straight. lowe's expected higher than expected. affirming full-year guidance across the board. i did just get off the phone with marvin ellison. he said though we are forecasting home improvement to be down in single digits in the second half, we believe our specific total home initiatives will allow us to outperform the market by 100 to 200 basis points and overall we remain really bullish long term. the lack of available homes on the u.s. market, the average age of a home being 41 years old and price appreciation of 35% from the pre-pandemic are all pause of drivers. the pressure on consumers, he says, are more about consumer confidence and consumer sentiment rather than financial wherewithal or the ability of credit. what our customers are telling us is they feel good about their employment situation, they feel good about the amount of equity if their home and they know there are projects they're going

i'm tyler mathis kelly is out with me for the hour is courtney reagan good to have you >>> coming up, fitch putting banks on notice that even the likes of jp morgan may get a downgrade. moody's downgrading multiple names in the space but is fitch too late to the party here >>> plus, shop till they drop? the newest data showing the consumer is holding strong, but for how much

i'm carl quintanilla with courtney reagan, post 9 of the new york stock exchange. >>> as powell says, inflation is too high and more hikes could be necessary. we'll talk to cleveland fed president mester at the bottom of the hour live from jackson hole. >>> the ceos of intuit and affirm are with us. both stocks react positively to those results. >>> the executive director of shein as forever 21 and shein come together in this buzzy deal for fast fashion. >>> we'll take a look at the markets following that speech from fed chair powell. the all are modestly lower. nasdaq is pulling up the drag there, down 0.60%. we had been positive earlier in the session following what was largely expected, carl, from the fed share. powell maintaining his hawkish stance during his much anticipated speech out of jackson hole. powell saying he's still open to further rate hikes. >> although inflation has moved down from its peak, a welcome development, it remains too high. we are prepared to raise rates further if appropriate and intend to hold policy at a restrictive level until we are confident that in

courtney reagan has the details. >>> it was a mixed bag with retail both results and subsequent stockoves. continued pressure from strength. specifically from theft from organized retail crime. here is what macy's ceo told me in an exclusive interview on "squawk on the street." >> the bulk of that is the change in organized theft. the organized function of you've got elements that are coming into stores and they're stripping them of big categories and doing it in bulk. >> reporter: similarly, dick's sporting goods said theft is going up and may expect it may get worse. they have taken, quote, a little bigger reserve to account for it. a third of the margin pressure was from shrink. shrink has been a pressure for lowe's for years, unlike macy's and dick's, executives told me today, marvin ellison says slink from theft is flat year over year at lowe's. consumer, there is can'ted pressure back to pre-pandemic levels. student loan forgiveness that is ending soon. consumer pressure is the driver behind macy's conservative forecast. ellison told me the pressure is on the consumer he says is

. ♪ >>> good friday morning, welcome to "squawk on the street," i'm carl quintanilla with courtney reaganmike santoli of the new york stock exchange. the wait is almost over. powell's speech at jackson hole over an hour away. futures supportive after the bulls dropped the ball, the dow's worst performance since march. a lot of earnings sneaking under the gate. road map begins with powell's inflation pitch, investors closely watching the rate policy tea leaves at jackson hole. >>> plus, retail's reckoning, nordstrom saying theft is at historic highs and gap also warning of an uncertain consumer. >>> we'll bring you the ceos of property group, authentic brands and their new partner the executive chair of shehan. >>> fed chair's remarks scheduled to be delivered next hour. steve liesman is in jackson hole, been busy all morning long and has a preview. hey, steve. >> hey, carl, despite the 5 percentage point decline in inflation since the fed last gathered here in the mountains fed chair jay powell not expecting to deliver a victory speech here in jackson hole. while powell may acknowledge th

i'm carl quintanilla with courtney reagan live on the floor of the new york stock exchange. is bad news finally good news? what this week's ecodata means for investors and the fed as we close out a rocky august. >> plus, hpe disappointing investors with its revenue outlook, but emphasizing the important role ai will play. the ceo joins us with those results this hour. >> later on, the ceo of novo nordisk, reaction to the white house's medicare price negotiation with two drugs on that list. >> topping the tape for us this morning is that economic data. weaker jobs, weaker inflation, and weaker gdp, helping the fed's crew said to cool the economy. the initial reaction on wall street was bullish, but sentiment has shifted, two hours into trading. senior economics reporter steve liesman and senior markets commentator, mike santoli are with us. steve, i guess the big question is, is the fed finally getting what it's been hoping for, what it's been working for all this time? >> yeah, incrementally, courtney, is the way i would put it. this data is not weak, per se, in the sense th

i'm tyler mathis kelly is out with me for the hour is courtney reagan good to have you >>> coming up,ch in time fitch putting banks on notice that even the likes of jp morgan may get a downgrade. moody's downgrading multiple names in the space but is fitch too late to the party here >>> plus, shop till they drop? the newest data showing the consumer is holding strong, but for how much longer. we'll discuss that ahead. >>> first a check in on the market the dow lower by nearly 300 points moved low er perhaps by the fitc rating plus, some street talk around discover financial the company ceo resigning. that stock down more than 10%. >>> also, good news, bad news. the good, warren buffett adding a stake in the stock bad, home builder sentiment dropping sharply with rates over 7%. >>> we begin with the warning from fitch the firm saying it may be forced to downgrade dozens of banks, big ones, including jp morgan chase, coming after recently downgrading the united states credit rating. for market reaction, let's bring in doug butler, director of research at rockland trust what has got fitc

. >> let's get over to courtney reagan for the cnbc news update. >> updated covid-19 booster vaccineould be available by the end of this month. the ceo of pfizer said during today's investor call the drug maker asked the fda in june to authorize the updated shot it's designed to target a coronavirus pandemic strain began circulating last winter. moderna made a similar request in june as well. it's unclear if the cdc will recommend everyone in the u.s. or specific groups of people. >>> canadian needs to look for news sources other than facebook and stain gram today the company started the process of ending access to news on the platforms the decision comes after legislation passed that would force social media platforms to pay canadian news publishers for their content. >>> and police are searching for a trio of brazen armed robbers that hit a luxury watch store in the heart of paris and made out with between 11 million and 16 million worth of jewelry they targeted the flagship store on one of the city's main stropping streets the middle of the day. kelly, back over to you. >> unsettl

right, let's get more on the extent of these theft losses with cnbc's senior retail reporter courtney reagan and cnbc digital retail reporter ga gabrielle. companies that are citing theft using the theft to cover other problems in their business or do they really have a theft problem? or both? >> i think it's potentially a little bit of both. i think it is undeniable that thefts and organized retail crime has increased this year over last year. industry-wide, with certain retailers, and in certain areas in the country. we see it from all these different ceos, spoke to three different ceos, executive chairman today, and macy's ceo said, it's elevated, it's factored into our guidance. dick's sporting goods executive chairman said it's going up, it might get worse this year. we have that factored in. that took the stock down 24%. and lowe's ceo said actually, shrink for us is flat year over year, but i would point out that lowe's and home depot have been pointing to shrink as a material weakness for years now. and so, the fact that it might be flat at lowe's is good, but they've had awhile to s

cnbc's courtney reagan is following that action. >> carl, nordstrom beating earnings by a wide margin on stronger than expected revenues. the retailer on rep itonly reitg guidance it wouldn't have fallen that much if you pulled out the anniversary sale shift into the third quarter from the second quarter here that was just reported there was also sales improvement throughout the quarter the rack sales improved, but still down 4%. the nordstrom business sales fell 10% active, baby, men's apparel, stronger categories. inventory down 17.5% that call is ongoing gap earnings beat by a wide margin, but remove the comparable sales disappointed. online sales fell 11%, store sales down 7%. old navy down 6%, gap down just 1% full-year sales guidance falling well bell low expectations, noting, quote, the continued uncertain consumer and macro environment. inventory fell 29%, so, that's good got that more under control. and richard dixon officially took over two days ago, so, today is day three he is on the call and he reminded investors, quote, the restructuring is challenging, and a change of t

courtney reagan is here with a look at what could be in store now for walmart's results tomorrow that'she big question, right are target's problems target's problems, or are they retail's problems >> i think we don't fully know the answer, but we know what we saw last quarter, and last quarter, target had problems that did not seem to follow through at least as big for walmart, and some of that could be the assortment mix. everyone is trying to point to that, which, of course, does make a lot of sense. walmart has a lot of grocery, 56% of its sales or something close to there comes from groceries. it's a frequency business. repeat shopping traffic. and walmart has said that not only is it getting more customers, making those trips, but it's attracting higher-income shoppers, also for its grocery business so, analyst expect that that will continue. they're expecting comparable store sales for walmart to grow more than 4% compare that with target, where we just saw comparable sales fall 5.4%. the first negative comparable sales result from target in six years, and target, of course, point

courtney reagan has more on the quarter. >> so, another mostly better than expected report from lululemoncomparable sales the one miss. the street was looking for growth of over 12%. the retailer's forecasted range for the third quarter for revenue and profit above expectations. gross margin of 58.8%. that beat estimates. operating margin of 21.7%, that's impressive. revenues in north america grew 11%. international grew 52%. greater china alone is a piece of international up 61%. on the call, the ceo said there was really strength across the business, with double-digit sales growth across women's, men's, andcessoriaccessories. he says strong momentum is continuing into the third quarter, as well. a lot to like in this report. it's been a standout and doesn't look like it's turning around any time soon to do anything but that. >> weapon. co yep. courtney, thank you. lululemon, you were in it once -- >> before that, but didn't get back in, i was hoping it would trade down lower. this is a -- the outlook is really what's important here. so, something different, right? different consumer. go

i'm courtney reagan filling in for bob pisani it's been one year since granite shares launched its lineupnames like tesla and apple in the u.s. and no shortage of activity in those names. nvidia, which is running the wave of a.i. enthusiasm in recent months. other single stock plays haven't seen nearly as much action why is that? let's ask ceo and founder of granite shares your first single stock etf arose in the u.s. last year followed by the long nvidia etf we mentioned give us an update. how have they been received by investors and why have some maybe not fared as well as heavy-hitting tech names >> we have seen a lot of interest in these particular names, but i think two thoughts really spring to mind. there's been a lot of money that has gone into fixed income etfs, a lot of money went into money market funds so, there is money sitting on the sidelines that hasn't been deployed fully into the market, which is affecting your equity etfs more broadly and single stocks are in that pack. secondly, in terms of the products, they're going to be linked to enthusiasm around the stock itself

let's bring in courtney reagan to explain what this all means >> shein, carl, for those who hey not know an e-commerce sort of juggernaut, fast fashion. they produce in small bachls and respond quickly to trends at extremely low costs. an example is a t-shirt at forever 21, fast fashion and low cost, maybe about $10, $9 pl shein may be half of that price. with the two of them teaming up, they're sort of a sharing of expertise here so shein is getting access to physical stores, and how consumers like to stop in those stores here in the united states, and then forever 21 potentially is getting expertise with fast fashion production in responding to trends even quicker and more inexpensively than they already are able to. and then sparc is this holding group which is a joint ownership between simon property group and authentic brands, an operator and sort of a brand manager. >> how big of an opportunity is this for simon we've seen shares sort of lag this year. >> i think this is a big opportunity for both rumors swirling about shein wanting to ipo here in the united states because it does

alongside courtney reagan i'm tyler mathisen glad you could join us on a thursday coming up, walmartsumers are hunting for bargains an inflation squeezes their wallets. the stock falling however even after the company topped results. walmart shoppers fear inflation, and how about the high-end consumer what about the high-end consumer we will talk to the heads of equinox and christie's to see how their customers' behavior has changed as inflation goes higher courtney >>> let's give you a check on the markets. stocks are lower here, but the dow jones industrial average is down just about a third of a per sent walmart, of course, is in that index. s&p 500 down .2 of a percent and the nasdaq pulling up the rear, about half a percent united health is weighing on the dow, one of several health cares hit by blue shield of california more on tie-up is coming up. as tyler mentioned, of course, walmart shares are trading lower despite beading on top and bottom line for second quarter the retailer raising its earnings forecast, fuelled by growth in grocery and online sales. earlier on "squawk o

the day, tapestry announcing plans to buy capri holdings like versace, jimmy choo and others courtney reagans with more on what this means for the company and industry with the continued condolltation. >> there were no rumors of this leaked they say this deal does make sense. taptry secure and cap deal vool ume, to 30-day average price, most think that's pretty fair. taptry management, the deal combines six brands it will be acreative with $2 million and bring 33 million employees together around the world. former macy's ceo worked with the brands and tells me this morning he thinks it's a good deal for retail relationships actually it becomes a consolidated business relationship. it is possible, of course, that they could have a little bit more power he doesn't believe there should be a regulatory issue as consumers notice really no difference they see areas where combination accelerates growth t tapestry could help with the relationship and make that more beneficial than it's been. capri's brands have international strength that should benefit like kate spade that tapestry owns that needs

week for retail we will get report cards for walmart, target, home depot and others let's get to courtney reaganeview. >> good morning. the guidance for the quarter to be reported and the remainder of the year was conservative for most retailers last quarter. that's despite the twinz that many saw from lower freight costs and stabilize in the supply chain there's worry about the consumer the u.s. consumer has been resilient in the face of persistent inflation, but most think there's a looming breaking point. home depot reports on tuesday before the bell and forecast a year of moderation and while an asal sis of foot traffic by placer ai dropped 6% in the quarter, it did improve throughout the quarter and investors might expect more. its shares are up more tha double the retail etf. the xrt since it last reported expectations for target, though, have been falling on wall street since it reported as the retailer saw the shoppers pull back on higher margin discretionary categories like apparel and electronics, placer.ai estimates target store traffic has fallen around 3% in the quarter and target s

courtney reagan is back with some of the headlines. that was a lot to digest. >> a lot.ting better than expected earnings revenue, a couple of sales above consensus, but down 1.6%. the home improvement retailer reaffirming its full-year guidance across the board, citing a strong spring recovery and pro and online sales growth, but also noting it was partially offset with lower do-it-yourself demand. but dick's sporting goods earnings coming up a dollar short of estimate. comparable sales also weaker. shares down sharply. it's the only retailer so far today that grew comps. the sporting goods retailer reaffirming comparable sales guidance, so mixed there. executive chairman ed sea-tac a stack said sales were much stronger, and attributed it to seven new house of sport concepts. stack told me that our consumers held up pretty well on all segments. the lower-income consumer, the higher-income consumer, we haven't seen any deterioration. however, stack did say that shrink, particularly theft is going up. he expects it may get worse. he said about a third of the margin pressu

. ♪ >>> good friday morning, welcome to "squawk on the street," i'm carl quintanilla with courtney reagan the dow's worst performance since march. a lot of earnings sneaking under the gate. road map begins with powell's inflation pitch, investors closely watching the rate policy tea leaves at jackson hole. >>> plus, retail's

courtney reagan with more on what it means. >> home depot earnings beat estimates by a wide margin revenuens u.s. comparable sales did fall for the third straight quarter for the retailer it's foreshadowing a bit for lowe's when it reports next week the two reported comparable sales and have been tracking one another in recent quarters more details about the home depot quarter that starts in about 20 minutes or so i spoke with the chief financial officer, richard mcfail, and i asked him about consumer spending he said, quote, i wouldn't call it a deceleration, but a continued caution on the part of consumers when it comes to larger ticket home spending. it may be a function of higher interest rates so if consumers are -- it doesn't bode well for categories like home apparel, electronics mcvale also said categories like appliances are softer, not great for best buy higher margin, more discretionary categories have been pressured at multicategory retailers while staples like food have been stronger. most analysts predict walmart will be a winner it has been picking up more higher income shop

courtney reagan is here with the numbers. >> so let's get through this, there is a lot here.second quarter earnings $1.80 a share. the profit was not driven by sales. revenue at 24.77 billion below 25.16 billion estimated. also slashing full year earnings guidance this even after this quarter's huge beat. it is expecting between $7 and $8, down from $7.75 to $8.75 also bringing down its sales expectations to midsingle digit declines, rather than low single digit declines to low single digit increase target's comparable sales down 5.4% that is well below estimates for 3.7% drop. also the first decrease since 2016 the retailer says discretionary categories again weak while food, beverage, essentials, beauty, frequency categories were stronger. digital sales down 10.5% that's the third straight quarter of declines and the worst performance since target has been giving this number. inventory fell 17% and lower markdowns did help to lift gross margins, operating margins also better than expected but at 4.8%, that's about half of the level where it was two years ago at 9.8%. on a c

let's bring in courtney reagan with that story. hey, court. >> hi, joe.-sale, but most especially, their local consignment stories like this one here. this plato's closet in comack, long island. w winmark is the parent company of plato's closet, second time around, and some other stores. the ceo tells me back-to-school is always the busiest time of year for his company, but this year especially so with inflation still high and higher interest rates. if you look at shares of win m winmark, they're up about 27% in a year, 2022 was a record year for sales and traffic for winmark and these franchise locations, and that trend has continued. >> it's eerily similar to 2008, 2009, and 2010. so we've sort of seen this before. and it's the same behavior that we're seeing from customers that in difficult economic times, they're sort of flocking to our concepts. and i think it's even more tur bturbo charged today because of all of the sustainability benefits that people are aware of about recycling clothing. >> digital resale platform threadup is seeing similar trend

let's skip the rest and go to walmart earnings i think they're hitting as we speak and that's why courtney reaganup now, i promise. thank you very much. good to be here. walmart is reporting earnings of 1 abo $1.84 adjusted profit also beating out, that's a beat, which is what we saw with target yesterday. on revenues of $161.36 billion, that's above estimates so, that's opposite of what we heard from target. the retailer increasing full year guidance to $6.36 to $6.46. that's above the $6.28 street consensus. sales guidance also increasing again, that's the opposite of what we heard from target yesterday, with its forecast walmart's u.s. comparable sales coming in up 6.4%. street was looking for an increase of a little more than 4% they also say that trransactions and tickets increased. walmart's net digital sales growing 24% led by pickup and delivery ad business up 36% in the u.s. i talked to john david rainy who said the quarter was better than expected across nearly all segments and while there was softness in general merchandise or discretionary goods like target noted, it improved at walma