. >>> sears were borrow again from its owner, eddie lampert. it will borrow $100 million from lampert's hedge fund, bringing the total sears has borrowed from lampert to just under $500 million. shares rose to $7.29. >>> casino operates penn national gaming and pinnacle international are reportedly considering a merger. the two companies have not agreed on the terms of a deal but penn national is interested in buying pinnacle. both companies gained. >>> and after the bell, costco reported profits and revenue that beat street estimates. the company also saw same store sales rise at a faster pace than analysts expected. shares were initially lower in after hours trading but they did finish the regular session up 1% at $167.07. >>> mortgage rates are holding steady. that's good news for prospective homebuyers since they are at historically low levels. the 30-year fixed rate average is now 3.85%. many say the short term economic impact of the hurricanes will keep mortgage rates in a holding pattern since they closely track the ten-year treasury yie

if would trade a heck of a lot higher if you didn't have eddie lampert lending more and more money there. you can find other portions of the debt market where there are clear winners. but the key element here is that the brick and mortar retail industry is still too large. >> i totally disagree with you toys r us -- excuse me, now let me talk. i'm shaking my head because we just walked two weeks ago toys r us bonds completely complacent -- >> that's a very unique situation. >> with all due respect -- with all due respect, the bond market is -- the corporate bond market is asleep. the spread between -- the spread between treasuries and corporate bonds right now makes no sense outside of the context of global central banks supporting credits that quite frankly should not be trading where they are, certainly should not be as tight as they are. and i'm going to tell you something. it is not so simple as, oh, they just have to invest in digital, they'll be fine. macy's is the poster child for a company pouring its heart and soul into digital and it didn't help the stock is down by two-thirds,

as bill says, in terms of the ceo eddie lampert's -- it's basically in his hands as to whether -- he really controls the company. and it's been a managed retreat for so many years. every single time they report results they talk about their liquidity, their access to continued revolving credit lines. it basically has been this decline. i think one thing people may overlook is half the stores and a third of the revenue is kmart. it's not necessarily sears proper do you think kmart has more or perhaps less of a ongoing place in the retail world as it stands right now? >> kmart still has a few really good locations that's keeping them afloat but you take two businesses that have been struggling and you put them together and then somehow you think that together they'll be better than they were separately and it's just not the case i think kmart's struggling too and maybe separately one of the two of them may have been able to make it but put them together and i just don't know that there's enough capital, intellectual resources or market dynamic available to save the both of them >> so w