i asked jeff gennette about the economy and the consumer and he said, look, there is a lot of noise to sort through. the negative, tariffs, tourism being down positive, the consumer is confident, low unemployment and interest rates are low it doesn't feel, he said, as good as it did at this point last year. he's saying he cannot raise prices to offset tariffs, which he learned the hard way in may, when the last round of tariffs went from 10 to 25%. he said the customer has no appetite for that. >> stick around. macy's isn't the only retailer feeling the pain now retail is one of the biggest draggers on the s&p 500. so is there light at the end of the tunnel for retail or a freight train? joining us is michael benetti at credit suisse. last week he warned that the department stores could go through a sober holiday. michael, welcome >> thank you, good to be here. >> talk us through macy's. what went wrong there and what do they have to do to right it >> courtney covered a lot of it. they had earth early in tweathee quarter. they tried to insource a lot of the problems so you know they ca

i think that jeff is -- jeff gennette, we have positive comparable store growth. that is the kind of thing you say to yourself, if you had done better in women's sports wear, and private label, wouldn't you -- think about it like this, they're up against jcpenney, that's a pitiful company to go up against execution plus they talk about the tourist, i'm tired of hearing about the tourists who doesn't come here. yes, i absolutely know the dollar is strong and i know that the beautiful herald square store is not up to the numbers, but i still come back to the executioner seems sloppy seems sloppy we'll get bad numbers from a bunch of brick and mortars, this is really -- there is something wrong here. >> yeah. >> something wrong is your point they should be taking more share from the likes of penney's? >> yes, i think penney is very bad shape. but they're in the mall. if you look at the real estate investment trust in the mall, an also the ones that are off price, wow there is just people aren't shopping there people are shopping in walmart, in amazon, in target, in c

i spoke with ceo jeff gennette who told me quote we took our medicine we took almost a full point of markdowns to address the inventory issues he said we needed to protect the fall gennette said he learned from list three tariffs moving from 10% to 25% that quote, the customer has no appetite for price increases and that right now, we are expecting that there won't be price increases with tranche forward at 10% but if it goes to 25% we'll have some more work to do that's a bit of a change from before when gennette had said he didn't see a way through this without higher prices. gennette calls the store sales healthier and notes the 40th quarter of double digit online growth but shares of macy's is down more than 12% after these results. andrew >> thank you >>> we should tell you wework is unveiling the ipo filing this morning. now, it's a doozie hundreds of pages literally. probably the longest filing i have seen in quite some time couple key numbers to focus on this morning they're going to be raising $6 billion they're putting $1 billion for the filing itself -- or for the ipo itse

could change in retailers report this week and next ceo jeff gennett said if the tariffs are levied onllion worth of goods, he said it would impact our categories when you do the math it's hard to find a aparthepath through t wouldn't impact customers. back to you. >> not to notice the names you mentioned have minimal foreign exposure, right? >> exactly that's part of the point, right. when you get big tariff headlines, you see the whole group selloff. you see a lot of fast, quick, deep movements then things calm down and traders and investors are doing their homework and they start realizing, wait a minute, it doesn't make sense to sell off walmart as much as selling off a steve madden the exposure to the tariff risk is very different for those two names. >> all right we will watch it interesting that they are still above some of the key levels in may. when we come back, how the recent ipos are being hit by the market volatility. will that impact those still in the pipeline some names we are going to away much more "squawk on the street" when we come back don't go away. we switched fr

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