what does home depot tell its employees? >> reporter: so home depot tells its employees not to interfere even if they can tell someone is stealing or shoplifting openly they're worried frankly that many of these people are armed, they're dangerous. there has been some confrontations and they have to keep that you are employees and customers safe in these situations >> courtney, thank you great report. >>> we're in the middle of one of the biggest shopping weekends of the year. retailers are not only bracing for shoppers and sophisticated crime rings as well. how are they combatting this ben duggan is joining us with the coalition for law enforcement and retail thank you for your time. >> thanks for inviting me, becky. >> how widespread is this problem? >> well, the national retail federation had a recent survey where 100% of the retailers participating said they were victims of organized crime this past year. i wish i could tell you that the piece you just ran with home depot was an exception, but actually it's just another

home depot, listening in on the conference call. miss, they said, due to the timing of certain investment initiatives the very first question on the conference call was is there something slowing in the macro, in the consumer o er or really t the timing of the investment initiatives. here is the answer they saw strength across almost all of their departments, signal of growth in the pro and diy, do it yourself, customers out there, they also talk a lot about online traffic and the average ticket, also doing very well they were very happy with that the short answer is, it doesn't seem like there is something going on with the customer right now or the consumer and the important thing is the stock is -- you can see here, down 5%, this was down 220. 220 right after earnings report came out off the low. and do remember, this is up 40% almost this year overall this is one heck of a run for the company. big, big move up overall important thing is, holding up this is one of the big quality companies out there right now. let's talk about te

home depot woes. missing third-quarter sales and trimming its annual growth outlook for the second time in three months. protests continue in hong kong. stories that we are following from around the world. officials say the chaos is putting sunday's election at risk. and almost showtime. saudi aramco bankers say there is enough interest to pull off the reduced ipo. let's get a check on the market action midway through the trading day. major averages are putting in a mixed performance. tech is the only one flexing their muscles and the nasdaq. poised to snapks a five-session winning streak. home depot is the big laggard. vonnie: i am looking at consumer strength. we have been talking about home , and thehl's department stores today. home depot is a slightly idiosyncratic case. we will talk about that. but we can see consumer confidence and consumer spending has not been keeping up with the rest of the economy. wirelessn see, waning -- those are the subscriber numbers. just in case you want to see those

take a look at home depot.bers take a look at where shares are. premarket down 3.5% right now. joining us for more analysis is peter keith. senior research analyst at piper jaffray. what's happening here in terms of this guidance whether this is specific to home depot, whether this is a larger story about the economy and the consumer where do you land? >> i think it's a broader issue of housing from the beginning of the year. >> you do? >> sure. we're looking at home depot, which is one of the better executers. this is the fourth consecutive same store sales miss. they've been blaming weather, lumber deflation which are all valid. the bottom line, our view, that's why we've been neutral for some time is that the housing metrics were pretty bad at the beginning of the year rates jumping up to 5.5% what's interesting now is you've seen rates come down below 4% and month by month we're slowly seeing housing metrics get better sequentially. i'll call it q3 is hangover period. >> we're looking at other retailers dow

that is not an issue with home depot until this year. ing the third straight quarter they've missed on sales and cut their sales guidance. is this a change in consumer behavior? is there some softness in the home renovation market, which could be very bad for home depot and a bunch of other retailers? ,uy: the correlation between like a chart we can show here, home depot and housing starts is really tight. we didn't see it in the data today. if there is any sign the housing market is going to rule over, presumably home depot would feel it. with the mortgage market as good as it is at the moment, this trend is just going to continue. that has macro stock tailwinds, and just management miss aligning itself at the moment? what is the macro backdrop? matt: exactly, the macro backdrop remains strong. executives were asked about softness in any part of the business. they basically said we still see a strong and stable housing market. it was brought up that maybe there's some more growth coming for them because, like you said, housing starts are

home depot, a little lost. one home depot, strategic plan to move forward.n and ceo makes clear that it did not happen in this quarter. slower american economy. many economists, even the optimists, talking about a week fourth quarter, maybe that dovetails into lower interest rates. for home depot, this has been a really difficult quarter. sales light. all the other statistics, light. we see the stock performing light. the tenure track record of home depot orders on apple like. this is a bellwether for america. guy: i find this incredible. this is what they are doing with guidance. rates, remortgaging story in u.s., how much of a kicker lower rates, 75 basis points have given to that market, you would have thought this was translating into people doing renovations, buying the lumber. it is fascinating. maybe coming through from higher expectations. i would have thought there would have been a transition from mortgage bonds to the bond market and further on into the likes of home depot. tom: they bellwether for the global audience, in america, we measure by fe

isn't home depot big enough to absorb this issue? >> we have been very good about not raising prices as a result of our shrink equation, but if it gets to a pointan wet continue to do business this way, ultimately we'll have to pass it alr:g. >> reporor "nightly business report," courtney reagan in salt lake city, utah. undergoes a renaissance.th >>> we report a lotbout real estate trends. after all, our homes are onef r most valuable assets. but a curious thing is taking shape in the maet. affordability has long been an issue for those looking to buy o . now the same is true for those who want to rent single-famy homes because demand is hotter than ever. diana olick explains. >> reporter: anyone out shopping for an entry-lel home knows the prices are high and t pickings are slim. now the same is holding true for rentals. as more americans find itff harr tod a home, rental demand is soaring, especially for single-family homes. kimberly cestari is both a real estate agent and a landlord and she's seen the d.c. renel market toff. >> i

home depot same-store sales were worse than expected for the third quarter. hall in t.j. maxx reported third-quarter comparable sales that beat estimates. earnings by tjx were better than expected. the company says the fourth is off to a solid start at its discount stores. maybe romaine bostick will become a maxanista. i am viviana hurtado. that is your bloomberg business flash. alix: romaine, you will get shade forever for that. a look at customers -- look at companies worth watching this morning. joining us is stacey widlitz. it was a bifurcation this morning. what is your biggest take away from what we learned for retail. stacey: it continues to be the haves and the have-nots. tjx up 4%. we are all tjx shoppers. alix: he is not. romaine: one of us. is getting the overflow that is not selling at department stores. they are getting the best inventory and the consumer continues to go there to find treasure hunt value, and most importantly the home goods, returns to positivity after being flat last quarter. romaine: that is the thing i never got about the tjx s

well 1st of all we certainly saw some steve losses with the stock prices of the 2 companies home depot losing more than 5 percent in value of being by far the biggest loser in the dow jones industrial average and when it comes to the department store chain colts that stock was down by almost 20 percent it's not so much that americans are not spending any more actually the outlook for the holiday season looks pretty promising in some war where american consumers are shopping and that is not so much a brick and mortar stores and any longer we had some pretty huge bankruptcy cases when it comes to sears or barney's in new york so americans do spend but not necessarily at the big department stores any longer and when it comes to home depot there seems to be some internal factors some investments in the recent past that have nots transferred into higher sales at this point here let's talk a little bit more about home depot it's america's biggest home improvement chain as a. so what do these disappointing results tell us about the real estate situation in the us. you have been for the beef c

a couple i'd yow si idiosyncrash home depot and kohl's respective l. s leadership, t lost a lot of the best retailers, marvin ellison went from home depot to penny's to lowes and they've recruited a dream team with joe mcfarland and others. maria: right. >> from home depot. but the real thing, maria, and dagen, is women and the business. and lowe's has always been the strongest marketing to women and lowe's is re-establishing that leadership with women running key divisions. colleen gee in new england, priscilla woodrum, jennifer thayer in the central u.s. home depot's losses today are lowe's' gains. we're looking for lowe's to get continued momentum. with kohl's today tough numbers but the future looks very bright with what you and dagen referenced. amazon. but also working with jason hart, eric reger and co-presidents ofa of. deirdre: '-- aldi's.so third qut important to kohl's. kohl's' future is bright. home depot's future is bright. maria: you're looking beyond the numbers, dagen. dagen: for the holiday shopping season, again, it already has started

neil: big loser is home depot. weighing on the dow.issed on comp store sales for the fourth quarter in a row. then there is kohl's. tell you both of these companies, you listen to management see what they have done, seems to be more company specific than any kind of proxy on the economy. home depot big bets that have yet to come to sales. david nelson, jim awad. i looked to home depot prior to this, the last seven earnings reports. the stock went down on five of the last seven on trading, right? it was at a all-time high. up 149% in the last five years. up 39% this year. despite the fact they have been inconsistent. >> they have been inconsistent in the short term but it has been a powerful story long term. if you are a student of whether there were doubts and volatility short-term disappointment he ended up making money. that will continue to be case. it is a world class company with world class management. charles: these are one of four stocks i call never sell. i would not close it out on a kind of a miss. management said we made ma

single digit range, i would buy it i would buy lowe's into the print tomorrow what we heard from home depot is the that the home improvement market is stage, seasonal, which lowe's overindexes to did particularly well and lowe's trades a the a meaningful discount to home depot here estimates are mork likely to rise than fall and that will drive the stock price higher so we would be buyers of lowe's at this level. >> what do you have make of the fact that some of the other retailers got killed today on this news? i think there's a widening gap between those well positioned retailers and all of the rest. the good retailers are making it easier for us as consumers to do business with them, taking friction out of the process. as an example, you can go to the home depot app and they'll tell you exactly where within a store a product is located two, they have the products that we want at the price points that are compelling and, three, they're gobbling up market share from the likes of those retailers that are going away those three conditions are not going to change any time soon. >> thank you g

for more on today's retail wreck we have two analysts to discuss kohl's and home depot. this was a really interesting one for home depot and this is the second quarter in a row we have seen them lower their sales guidance but for two different reasons. for a long time every one said home depot is a great operator but seems like the problems are internal is that narrative changing >> i think the three things to take away from this quarter is this is the fourth quarter in a row they had sales that missed expectations but the eps still came in line even though sales growth has been a bit disappointing, they are still able to deliver that bottom line growth this is the second time in a row they have cut their comp guidance they talked about same growth. they said 4% now they have taken it down to 3.5% last quarter it was lumber which seemed like a reasonable thing to point to. this quarter they are talk about some of those initiatives they had started at the beginning of the year that are now slower to deliver some sales growth. they said that will be happening next year. th

home depot has a theft problem and it's bigger than your typical small-scale shoplifters.st cnbc investigation, grab and go, courtney reagan got a firsthand look at organized retail crime. >> yeah. tyler, so retail crime losses at an all-time high and it's hurting retailers profits. earlier this week, lowe's and home depot both reported earnings and a negative impact from increasing theft. home depot gave us exclusive access to see how it fights a never-ending battle against stealing >> you're watching brazen retail theft. the suspects are so sure they won't get caught that some even get aggressive when stopped, as this surveillance video from home depot shows most likely, these people aren't shoplifters or people who steal items for their own use. instead, it's a bigger problem known as organized retail crime with criminals working together to steal for profit. home depot's jamie born investigates the theft it all starts with boosters. >> a booster is somebody that is basically a professional shoplifter they're doing it for a profit. not just for personal use. >> are they

lowe's is an interesting competitor for me, home depot, lowe's and home depot are neck in neck. doing really well, particularly in the pro renovati renovation spa renovation space, and they have done a good job giving the experience for the pro republican valentine's day t republican valentine's d, and that's something that lowe's doesn't have right now. >> would you rather. >> let's do this >> set up by danielle, i'm ready to roll. >> go ahead. >> i would absolutely home depot, and she's talking about professional services. that's why they have the 3 or 400 basis point multiple advantage over lowe's, and i think they hold on to it i think also if i'm playing home builders, i would rather be in, would you rather, rather, and sometimes it maps on this desk but even when we talked about restoration hardware, that's another way you can be playing this consumer reinvigorating the home. >> i didn't know you had a would you rather graphic it's that official >> it's crazy. danielle, great to see you, danielle shay, simple trading.com. tomorrow, 5:30 p.m. eastern time, and take a look a

we're going to start home depot.lunging today, on pace for its worst day in more than a year after missing revenue estimates and cutting its 2019 sales forecast, saying it would take more time than expected for its investments to pay off. home depot ceo craig menear pushed back on the notion that home depot's guidance cut was a result of macro pressures. >> when we look at what happened in discretionary spend categories, particularly that are high-ticket discretionary spend, we don't see anything there that concerns us at this point. >> mike santoli, i mean, it's been a bloodbath for retail stocks today, even names that haven't reported earnings yet are selling off pretty steeply >> yeah. >> how much of this is home depot specific how much of this is consumer >> i think it's not real consumer i think it's home depot, and more to the point, kohl's. i think the market as a whole is taking those comments almost at face value saying, this is not a macro story, this is not consumer fatigue it is, one, home depot, which is

there is a lot of defense of the home depot stock among the analysts. are a home improvement company, which is basically the strength of the consumer economy. they have had three straight quarters where they have missed topline sales estimates. we don't know distinctly that this is a problem with the consumer but if you are a investor and see this three quarters in a row, that raises red flags people. -- does does this raids this raise red flags about their management? we also saw a earnings from kohl's. a lot of the issues were not about systemic issues in the economy and more of the fact, if you are going to be a business where i drop off my amazon return, that might not be the path to profitability. or is there something we can extrapolate about the broader economy? at this point, it is hard to make a big take away. 's results, walmart they were fine. play.x, a value tjx, walmart, some of these other companies have done well. is discussion that maybe they are trading down and that has been a problem with department stores for a long time. if the cons

i knew where everything was, right from the local home depot, and i thought, i am just going to sliput and grab things without telling the troopers, who usually did not like when i t-shirt, but i had on a and a pair of jeans and flip-flops and a baseball cap and dark glasses, and i jumped in the truck and drove over to the home depot, and i was outed by the manager in the very first aisle, and he said, "governor, welcome to the home depot. how can i help you?" i was standing in the checkout lane, and there was a man in the checkout lane who was very angry, and he told me so, angry, and he told me, "governor, i could not disagree with your position more. my wife came here illegally. legally. that is exactly how it should be ," and i thanked him for his feedback. it would not have done anything to engage him on how being a refugee is legal. i just thanked him and let him go. now, i had six other encounters in the home depot that day on the same subject, and in every one of those, someone whispered, "governor, are you doing the right thing?" "governor, thanks for looking out for the chi

he said, governor, welcome to the home depot. how can i help you? was standing in the checkout lane and there was a man in the checkout lane and he told me so. he was loud, not threatening, but angry and said governor, i could not disagree with your decision more. my own wife came here illegally. he said that's exactly how it should be and you should know i'm wrong. i thanked him for his feedback. it wouldn't have done to engage him then about how being a refugee is legal. i thanked him and let it go. i had six other encounters in the home depot that day on the same subject. in every one of those, someone whispered, governor, you are doing the right thing. governor, thanks for looking out for those children. workalls to the office three and one in favor of sheltering those children. we have learned to shout our anger and to whisper our kindness. it is completely upside down. we need to learn again to shout our kindness, to shout our sense of justice, and if we do that, we will rebuild the character of the country, which you all know is at stake toda

home depot's quarter weaker than its outlook not much better. are the challenges temporary or something more? >> and breaking ground. permits for new home construction hit theost recession high but still might not be enough. those stories more tonight on "nightlness report" for this tuesday, november 19th. >>> and we do bid you good evening, everybody.el andme. sue is off tonight. everyone's favorit secretary ner the stock rket. and lately it's proving which. we're talking about technology ocks. thesi nasdaq com dominated by tech closed at yet another record high today, now on track for the best year in a decade as a matter of fact. theector as reflected by in etf is up more than 40% so fa this year. and it's been helped by a 50% gain in sem conductor stocks and a double-digit rise it in social media shares. as it happenings the nasdaq was the only of three major indexes to finish higher. lthe dow f 102 points. back below 28,000. the s&p fell by 1 point. bob pisani looks closer at tech's big run. >> the markets clearly overbaulgt butot much worry

home depot's jamie born investigate the theft. with boosters. >> a booer is somebody that is basically professional shop lifter, they're doing it for profit. notust forersonal use. >> are they jus guessing what items are in mand? do theynow it from history? i know that i can sell a lot of -- drills. >> there are manyio loc out there, tha are giving lists to the boosters. >> they'reing lists, they're part of the crime, too,re they not? >> absolutely. locations was this pawn shop. the manager was charged with selling stolen property. the case is ongoing. r next stop is ray. born and his tea helped wcen law enfornt served a search warrant on this utah home. >> we provide them the value of the merchandise. stolen power drills and other he wasarrested.ok. law enforcement seized a pallet ll of items from the home. they wer brought to this wa house. it may look like home depot, but this is actually a evidence room. inside, is over $1 million worth of stolen products. seized from a raid of seven pawp >> well actually see on the inside of

i had six other encounters in the home depot that day on the same subject. and in every one of those , someone whispered governor, you're doing theright thing. governor, thanks for looking out for those children . the call from the office were two and 3 to 1 in favor of sheltering those children . and it struck me we have learned to shout our anger and to whisper our kindness and it's completely upside down. we need to learn again to shout our kindness, to shout our sense of justice and if we do that, we will rebuild the character of this country which you all know is at stake today. and so i offer that as i part because i have learned over time and just as from that example i offer you that every boy scouts. not just the ones who are shouting the ones who haven't said a word area not just the folks whoagree with us already. not just the pundits and the pollsters who tell us who is important , but everyone everywhere. and that's why i want to be clear with you. love you as i do as a democrat i am not running to be president of the democrats . i'm running to

the first time in home depot in years. maybe five years so maybe the guidance was a bit sand bagged. maybe analyst moved the estimates low. but if they were to print the first down eps and sales quarter year over year that would be a seminole for retail especially in in lag. especially when you consider how much heavy lifting the big cap -- large cap -- big box i guys have done when we think about it wal-mart, target, costco and home depot like my maga complex in tek. >> you might want to tell david about that. >> if you are going to be. >> it's not what you think. >> the microsoft, apple, google and amazon partner on the squuk on the treat as a phang thing. >> he has wac the tc.h. >> you don't watcher that. >> i do of course. but i think it's important when we think about retail we know the megacap big bock are doing heavy lifting. >> i think there are some winners. you talk about nike, obviously big. but ralph lauren doing well. to me the kohls was the most interesting. i mean, home depot was priced for perfection or nea

home depot williams like the action here.the stock benefits from a bullish seasonal pattern the blue line. this is how it is looking before typically causes retailers to rally going into christmas he says that home home depot is outperforming the seasonal expectation which suggests the stock will really go into gear once the pattern turns extra positive there is a thing he developed to find out what professionals are doing. it is called the williams cotsi it helps determine if they're buying or selling. lately they've been buying home depot and they've been buying it hand over fist that's a very good sign. he thinks it's exactly the stock that can work for the end of the year you know i'm a big fan of home depot long term. i was thinking do we have to sell some home depot for my trust? i trust what larry williams says, the answer is going to be no next up, there is walmart. this stock is excellent performer here the investors started buying a few weeks ago. i'm with him although i didn't -- here we go. okay professional buyin

that song as annoying as it is gives us a big theme today that is retail yesterday's slam of home depot and kohl sending shock wave through the world. that one, ouch, urban outfitters down 16% first, let's go to the macromarkets and stock futures are down again they are in the red today. off 1.07 right now technology continues to power on yet another record for the nasdaq and nasdaq 100. the nasdaq 100, if you are not paying attention, please do, it's soaring on pace for the best year in a decade year to date. we are up almost 32% because we always like to make you a little bit smarter here. listen to this, 49 of the 100 stocks are up 45% this year. two of them, semiconductors lam research and amd have doubled. in the bond market, not moving too much down a bit today 1.74%. yields have ticked down a bit has stocks have had a little weakness around the world, pay attention to asia. we have drops across the board japan's numbers are weaker that is the biggest drop since 2016 the chinese market both domestic and hong kong are down one of the few indices down this year globally. also keep a

target, target, walmart, costco, and, by the way, can i say for the record home depot wasn't that badone's trashing the depot. people still had better same store sales than lowe's. it was a bad conference call and a good quarter the conference call itself was very much a disappointing versus the usual conference call. >> their sales outlook is the lowest it has been in several years for the full year. but you're right comps 3-6 is pretty good, given the overall state of retail. >> s&p 500 at the cnbc real time exchange and the big board shares highlighting china. david, jim mentions lvmh that puts into focus a week of m&a. tiffany. pay pal. >> yes. >> xerox, which i know he'll get to and we're still waiting on schwab. >> we are. the schwab ameritrade talks, i wish i had something offered i find it odd that i have not been able to sort of unearth anything that isn't out there. we had reporting from becky quick yesterday about a deal being very close the wall street journal following up yesterday, later in the day, with its own reporting of what it reported as on again/off again talks.

as much money as home depot. he's catching up on that how about the fact he's biting the bullet a huge chain of stores, in canada, it was too much. one of the reasons why the previous administration had to go he's closing the stores that aren't working well. that's really kind of a new thing for lowe's he's still getting rid of the managers he doesn't think are doing a good job home depot said they're taking share. i believe they're taking share from mom and pops. not taking it from lowe's. remarkable number. lowe's and target, their stocks are going to get a halo, indicates if you buy them, target up 10, lowe's up 6, at some point -- both stocks are now up stocks. and they become the anointed ones target anointed through christmas. brian cornell's interview with becky was extraordinary. this man has the pulse of the consumer he's winning he's in places nobody else is. he's taking share. i think by -- from bed bath too. what a remarkable performance. very self-effacing, which i love. >> yeah. it is worth -- worth

if he gets more digital business it could surpass home depot. no wonder lowe's went 4% in an ugly session home depot all systems are hurting the business and can't be improved overnight. facts, the difference is stark all right. how about kohl's >> sell, sell, sell. >> kohl's which melted down on monday after a devastating quarter. their problem is simple. they don't have anything special. kohl's doesn't have the kind of fabulous digital platform that can compete with target or with walmart let alone amazon you can only get away with it when you have the lowest prices but kohl's doesn't have that either a department store, not an off price chain like tjx or burlington kohl's as much as i like to shop there isn't good enough. that's why it's a mistake to extrapolate from the retailers to the broader economy the economy is not what's controlling this cohort. etfs once again shroud the truth. some are winning others can't win at all. some retailers spend fortunes on technology to lure customers away from the competition. they're just having discern

where everything was at the local home depot, i'm going slip out and grab things without telling theopers who didn't like that when i did that. flip-flops irt and and baseball class and dark glasses. i jumped in the truck and i was the manager in the very first aisle, he said, governor, how me to the home depot, can i help you? i was standing in the checkout man in the re was a checkout lane who was very angry and he told me so. not threatening, but angry, he said, governor, i could not disagree with your more.on he said my own wife came here that's exactly how it should be and i think you hould know i'm wrong and i thanked him for his feedback. it wouldn't have done to engage about how being a refugee is, in fact, legal, i just thanked him and let it go. now, i had six other encounters on he home depot that day the same subject and in every one of those someone whispered, governor, you're doing the right thing. governor, thanks for looking out children. the calls to the office were two of three to one in favor sheltering those children. it struck me, we have learned to and to whispe

home depot, bigtime drag on the dow.r sales in the future even as their quarterly sales were up more than 3%. the stock is down 5%. that's a big drag on the dow. next one, you know we love a good space story here, yes, we do. a new report for european space agency says that knock out astronauts, putting them into a state of suspended animation, can help us reach mars much easier. i want to know what mitch owe cock cue thinks about that. he's on the show next. here, it all starts with a simple... hello! -hi! how can i help? a data plan for everyone. everyone? everyone. let's send to everyone! [ camera clicking ] wifi up there? -ahhh. sure, why not? how'd he get out?! a camera might figure it out. that was easy! glad i could help. at xfinity, we're here to make life simple. easy. awesome. so come ask, shop, discover at your xfinity store today. stuart: scientists say they've developed an unsinkable metal that could be used to build giant floating structures, even cities. i want to know more about this, and there's better p

into the slower 6 months of the year for home improvement, lowes is more of a turnaround story, home depotobviously trying to get the pro segment to do online buying for local contracting, i think the story here is home improvement is good, housing is good, but the other bellwether with target, target with wal-mart, we need to see strong results from target, lowes, i'm happy to see -- maria: target has been doing better. >> yes. jon: dagen said they don't move in lock step, when we see the retail numbers let's not take it as a measure how strong the consumer is, home depot missed yesterday, a lot of intern al issues, you know, a lot of issues related on how you deal win vestments and a lot of issues with transition to internet purchases, the consumer right now is in pretty good shape, the unemployment is really low. consumer is in pretty good shape, you have to look at exports and business investment. >> you have to look at the bellwethers because target speaks to the broad economy and consumer, the other story is bricks and mortar online. >> it's bricks and mortar and online and combinati

xly, namely amazon you know, amazon, we are coming into a hot season for amazon home depot is a name i like. starbucks is a name i like mcdonald's obviously had idiosyncratic stuff going on this week. generally these are names i like but overall the market doesn't particularly like them i was looking at putting on a put spread in the name now normally when i look at put spreads one of the reasons we do that is because options price the might be elevated. they're not in the case of xly right now the three month at the money implied volatility is 14.5%. which doesn't tell you much but the longer term average is 16.2. so it's below. but xly because it represents an index there isn't the opportunity really for big price jumps to the downside. that's one of the reasons i think us using a put spread makes sense. looking to jrn, the $8 put spread sell the lower strike for $1 $2 25% of the distance between the strikes. we're taking what are relatively low cost options as it currently stands and making them lower one of the things we have to recognize is that the market has actually been beha

>> it wasn't just home depot, it was home depot and kohl's that disappointed it's important to see target'sorning. my own view is every input into consumer spending is solid the labor market continues to outperform. >> those are home depot and kohl's specific problems >> i said i hope i hope these are kohl's and home depot specific but let's see what target comes out with. >> probably a little bit of both and there are specific things about target that make it attractive. >> i'm sure that if you look at the numbers they're capturing market share take a step back, there's no reason to have the consumer weaken significantly income is still up 3% in terms of wages we're still creating quite a few jobs there is some softness but nothing significant at all so i'm honestly not worried about the consumer i'm much more worried about what's happening in the rest of the world. >> you're worried about what's happening in the rest of the world? >> i am. i think this romance, europe is fine, is premature i think you're going to see another leg down in europe. >> therefore, we'll see another leg down her

we've been up big time, not to mention home depot is dragging on the dow. depot and kohl's appear company specific issues than the american consumer. it is day three of the impeachment hearings, as the house is getting ready for the afternoon session. they have two more witnesses. is this moving the needle at all? certainly not impacting the house market. reality star, kylie jenner selling her beauty brand to coty. this sweeping social media could make it a

home depot was not a good quarterly report. that hurt the dow. t home improvement, not so great. fun stuff at walmart, pretty good. >> you look at the dow, it goes by price of the stock. so that has a bigger impact by home depot being in it. lowe's is in a little bit of a better position than home depot is. i don't like the whole sector overall in general but i do like lowe's better than home depot because of the new management and the way things are positioned going forward there. cheryl: national retail federation, i want to go back to the consumer issue that you brought up, they say 79% of americans are worried that tariffs are going to hurt their holiday shopping. is that founded or unfounded? >> i don't know that you're going to instantly see a big raise in your -- you're not going to not have holiday sales that people are going to come out and buy. i don't know how much it's going to have a material impact. i think that's what the president is banking on while he plays with china to get this through. i don't think most people care whether we

home depot and kohl's both tanking. stay with us woman: my reputation was trashed online.mpletely helpless. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555. >>> been watching shares of home depot and kohl's get hid heart courtney reagan joins us with the details. the calls did flesh things out >> they did. i just got off the phone for even more color. it's phil mcveil's first quarter as cfo of home depot he said we are absolutely not seeing softness with the consumer, we think the consumer is healthy and the houses environment is healthy and stable so what he said is today's lower guidance is only a reflection that the retailer is taking our time to roll out initiatives and that it already getting about a half a point of comparable sales increase as a result o

>> i think it is important to dig deeper into the data you mentioned home depot target, this week, theynocked it out of the park and stocks surged this has not always been the case target vest target invested a lot of money same with home depot they posted a growth from a year ago. they are now investing, the stock took a hit what we are seeing also is omni channel is a necessary evil. it is a big investment home depot saw 22% growth on line and 50% of that growth is derived from consumers ordering on line and picking up in store. for that, it is urgent to really invest in that omni channel. >> it is key the digital side of things is a massive undertaking. we saw the same thing happen with target. there was a time they said they are not making money but now walmart and target are surging fr surging. it is driven sometimes by 30% to 40% gains. >> even west elm saying sales grew that made up for 57% of their revenue. again, underlining why it is so important to vest in the e commerce experience. it is important for investors to dig deeper and not just judge a company just because they are

home depot could set up like that, they could report a good print and start to sell off a bit. amazon like you said is what 10% below it highs if you want to play that in consumer discretionary, the yl way is the best way to do it mike's spread where he is paying a quarter of the width is good to sell off between now and january. >> a stock sells by people who decide to drop by. starbucks lost 20% of its value, has anything changed time statistic a timing tool and it's physical him. just as dan implies that can happen to home depot in one second there's risk here. >> here's something else to think about. okay so xly closed above 121. that's the strike of the put the downside even for this trade is 119, down $2.34 on $120 instrument from where we closed today. that's essentially 2%. this would have to move down 2% between now and the third friday in january what is the probability of that? i think that's one of the amazing things in the options market right now, it is remarkably complacent. it's basically telling us, oh, there is no risk of this happening. i happen to disagree w

depot is under pressure, macy's, kohl's >> home depot wasn't as bad and kohl's was way worse heem homeot was at its all-time high it had to be a perfect print and it want. underneath the surface, the 36 comp, they actually did 4.8 in a comp that's pretty good it was very close to expectations the implied guidance is at 5 comp it's not down enough for me to buy or add to it but it's something i'll watch and look to buy if it continues to fall. i think kohl's is a mess, amazon, private label, the loyalty card, it just not driving traffic. that's a real problem for them >> i'm having flashbacks, steph, to you talking about say a mcdonald's or a disney and looking at the runs that those stocks had and lightening up your positions, in fact selling out of mcdonald's altogether, wondering whether you wish you would have done the same thing with a home depot after what you mentioned was a run to an all-time high. >> i think the duopoly is unique to them. 22 times is not cheap. you're absolutely spot on but i don't want to give up on it. housing, the numbers were quite good that's a theme i sti

home depot also out with disappointing earnings this morning.hat stock down by the better part of 5% after comp sales missed for the third quarter in a row, and they cut their guidance for the third time this year. . the one bright spot in retail is t.j. maxx, now up about 0.9%. solid third-quarter report for them. in the movie theater space, a report that the department of justice is looking to roll back rules that say movie studios can't buy theaters. that could see deals heat up in that space. amc, cineplex, and imax all higher. vonnie: coming up, chipmaker challenge. we hear from the ceo of qualcomm. that is coming up next. this is bloomberg. ♪ vonnie: live from new york, on vonnie quinn. guy: from london, i'm guy johnson. this is the european close on "bloomberg markets." let's check in oncourtney: the e committee is quite stunning -- is questioning two witnesses. the u.s. walked out of military talks with south korea today. seoul said president trump's demands that it pay five times more for having military troops stationed there raises le

on the east coast, waiting on home depot, home depot, kohl's, tjx, we are taking a look at the americanr record session take a look at all 3 major indices hit high yesterday, dow industrials up 103, s&p futures up 8 and nasdaq futures higher by 34, yesterday's record setter once again, payoff in hong kong this morning once again, the violent standoff continues at a university with hundreds of people still remaining on campus, authorities warning those medias rojas to drop their weapons, turn themselves in, we will take you there live, showdown on capitol hill once again this morning, impeachment hearings will resume this morning, four more witnesses set to testify today alone, mornings with maria begins right now. ♪

foundation [ cheers and applause aaron, you're a good son thank you, buddy thank you to the home depotu for your service i'm so happy stick around we'll be right back with more "the tonight show," everybody. [ cheers and applause ♪ when we were looking for a roommate, he wanted someone super quiet. yeah, and he wanted someone to help out with chores. so, we got jean-pierre. but one thing we could both agree on was getting geico to help with renters insurance. ♪ yeah, geico did make it easy to switch and save. ♪ oh no. there's a wall there now. that's too bad. visit geico.com and see how easy saving on renters insurance can be. today, molly got dressed for a with her closest friends. sasha got dressed to crush her job interview. alex got dressed to present a big idea he's been working on for months. and our stylists helped millions of other americans get dressed for millions of other personal moments - big and small. at stitch fix we don't just see your size or style. we see you. stitch fix. personal styling for everybody. burrito. raw kitfo fried shiso. pork chop. soda pop. soursop. ho

as they try to close the gap with home depot. getting onon platforms as part of their black friday campaign. how intense is e-commerce competition going now that you have to get chinese shoppers into play? mostly around the holiday season, e-commerce is a part of that. we think that will continue. we have seen a couple of things as it relates to black friday. promotional intensity is starting earlier and earlier every year. a lot of it now is coming online. it is not just black friday anymore, cyber monday, and those deals continue up into the christmas holiday. retailers are better at delivery, which means they can take online orders closer to a holiday. we expect a promotional environment. in some ways, that is not than it's been over the last couple of years. amanda: interesting to note, although it may be a good printer for retailers if sales are strong, it is not good to own the stock. they don't tend to do well especially in december. what is your thinking around retail stocks? michael: in a report we put out as they, we re

we are thrilled, who needs to work a little bit better. >> home depot, i think home depot in-store experienceamazing but their online experience is not that great, the digital strategy and digital we talk a lot about commerce and the social media. >> what we really mean on the screen is so green digital los loser. >> digital when it comes to the website. good stuff for you. thank you thank you very much. >> the company is called a crown. throw little fairy dust and create some magic. secrets of the past creating nightmares for one of fashion's biggest names. about 37 minutes to go for the closing bell, the dow is down 141 and up next charlie breaks the ny jeffrey epstein web of defeat is prepping victoria secret angels and talks of breakups in the clipping of the wings of one of retails most well-known names. as we wait for president trump to tour the apple hub in austin to success, he is on the way and we are going to tell you about the three empire products that have made it to the wall street journal holiday hectic list. claman countdown coming up next. so get allstate and be better protec

home depot and costco obviously significantly outperforming the s&p. but this one, the big one. there is the line in the middle in august. you see where the stock went up 20% in a day they reported the fiscal q 2 earnings, guided up for the year showing gad comps and great results in their omni channel strategy that would be online and off line working well together but i think as we go into the earnings report, the options market implies a hefty move about 6.5% moving about 11% over the last four quarters. last quarter's 20% move skews that a bit but look at the move since that breakthroughout i think it closed that day august 21st at 103. it's held the gap and trending upward that's generally constructive. but that's interesting to me also especially if you are a bull on the name look at the five-year base it broke out of i suspect that that level in the mid-80s is going to be significant technical support for a while. but my trade thinking about next week in particular is that they are not guyeding up the way they did in august. i think that reset investor's expectations a bi

on the heels of earnings, 3m industrial china home depot, 3m united health, the biggest laggard.ing the dow action so far. with the s&p 500 we could be on pace for the longest losing streak we've seen since september for the s&p 500. again, just about 1% away from record highs just to put it in a little bit more context and as for the stocks that have been really in focus for the s&p 500 so far, it has been those retail stocks, right there have been clear-cut winners and losers this week on the heels of earnings. kohl's and macy's, the big decliners. macy's down 13%, kohl's down 9%. ecommerce sales down big divergence leaders and laggards, i'll send things back to you. >> dom, thank you for that. >>> investors watching the latest manufacturing numbers this morning meantime, yesterday's session 8 of the 11 s&p sectors were in the red. real estate led the way to the down side sliding 1.39%. energy, one of the worst performing sectors was up 1.63% but remains in correction territory. let's talk about all of this bob dahl is here doug ramsey, chief investment investor at leuthold you

home depot's always better.e's stock is usually cheap because home deusually does better -- depot usually does better. this is the era of no excuses in retail. if you own shares of a store chain and they're not doing well, it's not the consumer, people don't like them, people don't need them. consumer spending's probably going to grow 3% this holiday season, maybe 4%. walmart just put up the best numbers it's had in years, target doing very well taking share from some of the chains that are struggling. there's an ugly bunch that's going to be reporting this coming week -- macy's, l brands, i would throw gap in there. if they're not killing it right now, the environment is not going to get better. jack: is there a road back? >> i'm worried that sometimes you hear a myth that retail is struggling right now because the consumer's not strong enough. the consumer is fine, spending is fine. retail is struggling because we have too many stores, and some of these are chains that we don't quite need anymore. i don't want