the kroger financial officer mike schlotman joining us from cincinnati.ring your dna information can help identify diseases faster and save lives. ♪ pimm: this is the bloomberg "market day." i am pimm fox. a fired see group -- a fired taking a manager is swipe at his employer. he said that a former colleague profited from front running client's born exchange orders. he implicated michael plot make. citigroup denies the accusation. a probewas fired into into rate rigging. hackers may change strategies to disrupt financial markets. james clapper says new cyberattacks may alter electronic data instead of stealing it. he told a house panel that hacking can be expected by criminal seeking profit and as a pool of war to destabilize western nations. a difficult month for john paulson's hedge funds. as merger fund dropped 4.2% stocks slid worldwide. gained twotners point 6% so far this year. those are your headlines. can learn everything about your self for $1000. that is what it costs to have your entire dna sequenced. what you do with the information when you h

right now we have 20,000 openings. >> at kroger. >> at kroger. >> last year we added 25,000 jobs, sohe labor market is a little tighter, so that is an illustration of things picking up. >> are you starting to see the consumers spend gas savings? >> not really yet. we keep hearing they're saving it versus spending it, but time will tell. >> i want to ask you about your business specifically. you mentioned the consecutive 47 straight quarters of same-store sales growth. another 5% plus. what are you getting about the consumer that your competitors are not? >> well, i don't know it's so much what the competitors aren't, we're focused on the customer. >> but -- >> yeah, but we surveying over 40,000 customers every quarter to see how we're doing, and we really do listen. our 400,000 associates really are taking care of the customer, and we keep taking costs out of business and reinvesting that, so we have reduced our pricing about 3.5 by on. so it's a lot, you know, it's 100 small things, but together it's a beautiful picture. >> some analysts are concern some of it may be temporary facto

. >> and kroger out with results of beat.he stock is moving higher in the premarket. >> first up, oil prices falling after goldman put out a note saying the global supply glut could push the price down to $20 a barrel. cheaper gas offsets the price of your food. futures are getting lower as we wrap up a volatile market week. and david tepper said he's not as bullish as he could be on stocks. >> i'm more bullish. it's valuation. today the stock market on, call it, next year estimates is 15 times earnings. the earnings yield in the stock market is something approaching 7%. this isn't a 2 % slightly more than a 2% ten-year environment. that's about the widest spread. you can earn a much higher and the expectation over time should be that the equity yields will increase as companies report over time. report higher profitability. >> interesting we've heard from a lot of the big names this week alone. buffett, lee cooperman, tepper and now ackman. >> everyone saying the economy, those valuations are all of a sudden becoming a big c

talking about kroger, up nearly 5% today after earnings came out ahead of estimates.ts forecast for the full year. the company said same-store sales growth is relatively strong. they tried to make some efforts to control costs. those bore fruit. they are adding 20,000 new jobs. this is a company that has been in a performer. that is continuing. betty: thank you so much. julie hyman with a look at all the markets, including some of the commodities. now, a look at the european market close. i want to bring in mark barton from london. stocks with their biggest weekly gain in two months. next week's federal reserve policy meeting -- investors confident that china will stabilize its financial markets and economy. that is the first price knees and -- first rise in asian shares in four weeks. 5% stock 600 has rebounded since dropping 5% on august 24. that was its biggest decline in seven years. is 13% below april record. let's have a sneak peek at the big moving equities across europe. lower. drugmaker, 5.4% it's in talks to bite -- tdc,sed fedex farm danish telecom company,

save 30 or 40% buying the kroger brand over buying something in whole foods. we going to do it? why are we going to go there and frankly also cutting 1500 jobbis and feel horrible for the 1500 people. that's only a little over 1.5% of workforce. this is not going to lower prices for anybody. deirdre: it seems in a way, i was reading between the lines of some of his comments he made at a conference in austin. seems like he was complaining saying, you know what? people want this sustainable measure, they want to support all that's organic. they also want more convenience and they want lower prices and kind of seemed to say, i don't know, we're just here trying to do our best. it seems like a weak argument from a ceo. >> it is a very weak argument, and also keep in mind that about a year ago, they announced a new format called 365. so that's supposed to be a smaller store, supposed to have much lower prices and going to promote the 365 store brand. too little too late because we already have 1300 aldi stores across the country, opening up 400 more in the next fou

kroger went ought $33 last time around. is where it right now? it doesn't have the explosiveness it needed. it does tend not to get hurt every day. i'm going to pass on kroger. i don't want to go to gopro or tesla. those are too expensive at any price. this is a bearish environment no matter where they trade it. don't want to play them. here comes a kimberly-clark which is interchangeable with a lot of other defensive outfits. it's sitting on the board down $2.50. yield 3.5%. what kicker has that good of a yield. i'm not going in the draft room on a day like today. it's too scary. that's fine. maybe you never want to play this kind of football again. i like to buy my players cheap when few competitors are around because it's a light week. every player getting hammered by the futures including ones with excellent draft picks. no one has been carted off the field with acl on my list. no one given a four-week drug use suspension or whatever abuse these players suffer from or whatever. maybe we are wrong to start buying here. who says you have to put

the cheap fight -- the chief financial officer of kroger will join us. ♪ olivia: good morning, welcomelivia stern. : i am pimm fox. let's look at how markets are trading. u.s. stocks, the s&p 500 down .5%.

that's why i prefer kroger. one day whole foods will be the one to buy.'s go to graham in wisconsin. >> caller: lci is what i'm looking at. >> lynette reminds me of a junior valian. i like it. it's been stalled. it's time to buy. that's the conclusion of the lightning round. >>> the lightning round is sponsored by td ameritrade. what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this. it took joel silverman years to become a master dog trainer. but only a few commands to master depositing checks at chase atms. technology designed for you. so you can easily master the way you bank. >>> tomorrow jim cramer celebrates american innovation in the heart of silicon valley. meet the ceos creating new opportunities to invest in america

. >> and kroger saw it's earnings rise by 25% last quarter. they hyped their full year outlook. shares jumped as a result of $37.29. and mattress frishe diirm mised top and bottom. shares of mattress firm plunged today. >> and now to our market monitor that likes small cap names that have potential. he runs the lmgs $7 billion small cap growth fund. he is a morning start rated five star fund manager and this is the first time on the program. welcome, it is nice to have you, andrew. >> great, thanks to be here. >> let's start with your stock picks. you have one pick with a price target between $48 and $50 a piece. >> they have relatively new management and ceo that implemented cost controls. we're seeing early returning on that already. they declared a relatively large purchase in the summer. the fall auctions, we have early indications. there is quite a lot of art coming to auction and that should help earnings per share. we think $50 plus is in the cards and we pulled back recently we think it's timely. >> and you're bullish on housing and the automotive industry right now. and

kroger up 5%. kroger actually beat second quarter numbers, so great day for them.'s eastern airlines is up about 7%. i also wanted to just check zumiez, of course, the sports apparel company, was plummeting more than 20% earlier. they lowered q3 sales and profit. just one of those names that just took a massive hit on numbers that were downward estimated here. oil, though, you cannot ignore that. oil's been on such an unbelievably wild ride over the past couple of weeks. yesterday suddenly crude decides to rally 4% even though we had massive glut. that hasn't changed over the past year, but increase in gasoline demand was enough for oil to start moving higher. we all remember how just three weeks ago we saw oil slide to its lowest level in six years. again, just three weeks ago. so lowest level in six years, then rebounded by the end of the month. but how many more wild sessions should we expect considering that one thing has been constant, and that's major oversupply. fox business correspondent jeff flock is on the floor of the cme. jeff? >> reporter: it keeps fin

paying $2,000 less that's $2,000 more this my poin my pocket tha spend on star dubucks and go toe kroger. so donald trump in this case is being an idiot. he's looking at the few in disyoursedi disrespect for the money. >> i want to get john in here. john. >> we tried this before. back in the late '20s, put fuss to a further recession. i won't mention andrew jackson again, but dealing with companies that go overseas, that is the symptom. the problem that mr. trump is right about, i don't agree with the tax, the problem is america is not becoming competitive. it's becoming uncompetitive. look at the tech companies that are moving to ire land because they don't have this fugitive tax code. look at companies moving out of this country because they don't have to deal with needless compliance and needless regulation. we need tort reform. we need loser pays on frivolous lawsuit. because of that, it's becoming uncompetitive to do business in the united states. i don't agree with the tax, but i agree with the motive. >>> all right. what's coming up? >> illegal immigration, activists bashing donal

. >>> on our people scene, rockers avril leavine and chad kroger ae calling it quits.rried the nickel back front man in july of 2013. >>> here at the big board now, a heads up for parents that use those internet connected baby monitors that live stream video to your tablet and cell phone, a company called rapid 7 find that some of the major brands have major security flaws that leave the door wide open to hackers, they put nine of them to the test giving almost all of them failing grades, they warn that hackers can access your personal information from your wifi network or give them real time control of your device. >> i heard a voice screaming at my daughter wake up baby. >> the makers tell abc news, if the consumer is concerned with the safety of their monitor they should contact the maker directly. disability unnecessarily features like video recording or storing footage on the internet and just in case unplug the machines when they are not in use. do we have anymore chips? [off screen] fellas? uh, sorry. we were day dreaming. about that vip tailgate and game ticket

. >> let's go on to kroger. a very competitive industry, a grocery store. >> very competitive industry. they're doing a lot of smart things. they've been in a price war with walmart for over a decade but that seems to have come to an end. they're investing in health, natural foods, organic foods. that's driving sales. a very well run company with growth in front of it and yet it is a defensive stock. we've been surprised how much it has pulled back with more cyclical parts of the market. so we think it is a good entry point to be adding to. >> and google is also on the list. do you cite the new cfo there as one of the reasons why you like the stock. >> do i. i think from morgan stanley, bringing it to google cll they've not had. it has been an engineer led company. now they've got a serious cfo in place who i think will bring some financial discipline. they spend a lot of money in r&d. i think many of those things like driverless cars may bear fruit. so we want them to continue to invest. they have $70 billion o

. >>> chad kroger and averill levine are the latest to call it quits.eavy heart that chad and i announce our separation. she thanked fans for their support. >>> just like i told you, this thing is starting to act up again. >> long-time disney star dean jones passed away tuesday of parkinson's disease. jones was a fixture in films like "that darn cat." "herbie the love bug" he was 84. >>> and cate blanchett is expected to star as lucille ball in an upcoming biopic. >>> it's the most recent notable personality for blanchett, known for roles about queen elizabeth. >>> jimmy fallon revealed some streaming video news. >> there are rumors that apple may start making original content to compete with netflix. political drama "house of cords." "two broke screens." finally we like "tim cook squarepants." >> i would watch. >> i can relate to the cords and the broken screen. >>> this social media star has been featured in an adorable compilation of music videos. doug the pug. the famous pug's cameo has garnered more than 9.7 million facebook views since it was post

kroger also reporting earnings before the opening bell today. >> so we're going to go to break here on worldwide exchange and still to come on the program, the kids may not be happy heading back to school but online retailers have plenty to smile about. we'll explain right after this short break. i was going to the library to do my homework. it was a little bit of a walk to get to the bus stop. i had to wait in line to use the computer. took a lot of juggling to keep it all together. what's possible when you have high-speed internet at home? the library never closes. it makes it so much better to do homework when you're at home. internet essentials from comcast. helping to bridge the digital divide. >>> the story in asia this weekend we just got some latest flashes from japan's ruling party. a lawmaker that is also very close to the japanese prime minister shinzo abe and some comments he is talking about. he expects more stimulus at the october 30th meeting but he's talking about yen levels as well and says the dollar yen still around levels. he says 124 and 125 could be among the thre

among today's s&p 500 winners, kroger, newport mining and best buy.liams companies and transocean. >>> we'll have much more on president obama's nuclear deal but let's talk about the impact on the defense sector. domini chu, what have you found? >> there are a handful of defense stocks really starting to outperform over the course of the past eight to nine months year to date. if you look at defense, part of the broader industrial side of the market and s&p 500, 11 stocks are categorized on an industry level as being part of the aerospace and defense sector. only four of those stocks are positive on a year to date basis having the momentum going along with them for the medium term. these are the four. first of all, general dynamics. they make everything from m1 abrams tanks to nuclear submarines. san jose shares are up a modest 2% but still positive year to date. they also make a number of different items as well. mine resistant ambush protected vehicles, that sort of thing. boeing, one of the biggest defense contractors out there be with up 3%. we ar

that is dramatically higher than the next kroger at 669 and followed by strouts and fresh market at $449. whole foods crushes the competition. and they have started to lower prices. and how about the invest on capital. how they generate better returns. and a hugely important metric for private and maybe for public guys too. it turns out whole foods is some of the beoic. only fresh market is better than that at 16%. and they are not as good. maybe wal-mart in third place at 12.8%. they are leaving the rest of the space in the dust. they generated 15% return on capital while still opening new stores this past quarter. and $63 million in long-term debt and $7 million in cash on hand. they could easily buy someone else in the sector and take themselves private. and cash flow, which should also matter. they have generated $997 million in operating cash flow. that is what they make during the current fiscal year. and most went to new stores leaving them with $350 million in free cash flow year-to-date. and they bought back more stock and they could buy back more if they wanted to. in short, it

safe weigh second largest grocery in the nation second only to kroger. >> loretta lynch top conspireto richmond to take a look at city model for good relations between police and the community. laura anthony has the story. >> u.s. attorney general loretta lynch says her decision to visit richmond his something to do with the troubled past. but also bright future and ongoing effort to improve relations between police and the community. >> mostly clear to me that richmond is working toward really holistic and comprehensive approach to public safety. >> richmond has received prison for its dramatic drop if violent crime under chief chris. >> this is a city that really has struggled with a lot of tough challenges. >> good attorney general has different world view from the oscar grant committee. >> just rare to the attorney general arrival there was a protest outside by democrat industry twhors claim last year death of richard perez was a case of police brutality. lynch says riding police force of unconscious by as is just one step richmond is taking in the right direction. >> more than j

. >> we have gone to having partnerships with walmart, whole foods, kroger, at record speeds. >> reporter: in the hundreds of emails obtained by the guardian newspaper members of the egg board tried to stop whole foods from selling just mayo and even tried to get a big company to stop making it. >> the amount of time the board spent thinking and strategizing about how to take this company down does seem a little bit perverse. >> reporter: josh head of hampton creek took the comments with a grain of salt but there were some that stood out. one member of the egg association wrote, can we pool our money and put a hit on him? and the vice president of the board responded, you want me to contact some of my old buddies in brooklyn to pay mr. him a visit? >> yeah, um, that was a pretty strange one to read. >> reporter: the american egg board responded with this statement. we are aware of the comments made by an american egg employee. while these comments were clearly made in jess they were inappropriate and don't reflect our organization's values. we apologize for any offense. >> this is an agen

. >>> kroger beat expectations, raised guidance for the year.worst performing sector, murphy williams, transocean and hess all among the biggest laggards on the s&p. >>> when we come back, don't underestimate china's economy, where one vc sees opportunity. plus is apple making the right moves in fashion? yahoo's fashion editor in chief will join us to break it down. nchtsd and under armour the tech company, the tech company's digital on wearables and more when we continue. opinions. there's no shortage in this world. who do you trust? whose analysis is accurate? how do you make sense of it all? a simple, unbiased stock score consolidated from the opinions of independent analysts... is that too much to ask? nope. equity summary score, powered by starmine, will help you execute your ideas with speed and conviction. and it's only on fidelity.com. open an account and find more of the expertise you need to be a better investor. >>> welcome back, worries over china's slowdown pushing the shanghai composite index down more than 35% in the past three mo

so companies like nxp, which has exposure to the increasing content of chips in automobiles and krogere natural health foods, a grocery store chain as you know, those are two companies that i think can win regardless of the economic backdrop. >> used to shop there in ohio, sorry about that, eddie, we'll have you back. appreciate it. that's it for countdown of the closing bell, melissa and connell are here with lots of news on this big monday. >> thank you so much, liz, carly fiorina picks up 12 points in the polls, we're going to break down the dramatic moves all the top candidates. >> those are some pretty interesting poll moves. in the meantime the other big story of the week is the pope and he's making this historic and controversial move to cuba. we'll get an update on havana of the poll, and the university of notre dame is going to join us coming up. >> and would you be willing to trade in a better pay raise, willing to pay to avoid horrible bosses. stock rallying into the close here as the bells sound on wall street. >> we are triple digits higher, 127 on the dow, we'll take that

whether it be kroger or restaurants. i saw a positive note about jack in the box. we are an internationale economy when it comes to the great american companies that have done their best to move overseas. i beg to find the negative on home depot here. home depot is a big winner in the lower price of imports. housing is a slow and steady gainer. home depot is a big company. >> you were looking at a monster upgrade at goldman. >> ralph lauren getting some love. >> it is a very compelling upgrade about how they are doing a lot of things right, new products right. if you come in in the bear market, it shows up at 74 cents and then it is down 2.5. i can't get excited about it, because the market wants to go lower. when it gets there, we can get excited. file away con ed and buffalo wild wings. >> on the deal front right now, i think a lot of things continue to be negotiated. one we haven't talked about in a while, energy transfer continuing to try to get williams to finally say yes to it. ford is expected to meet perhaps as early as today. energy transfer for its part i

a 60% drop.th earnings, mattress firm cut its forecast here at kroger, look for that around 8:30.rades and downgrades. bank of america, jb hunt, norfolk southern raised to buy. goldman sachs, planes all-american pipeline cut to sale. chevron raised to overweight. church & dwight cut to sell at ubs and motorola solutions cut to underperform and wells fargo. tom: thanks so much. you can find that on your terminal. invesco -- have a question about alternative investments? ask the expert, walter davis, who has more than 20 years of industry experience. send him your alternatives questions. do that at invesco.com/asktb heexpert. david stubbsave with us. we have been talking about whether or not a fed rate increase would be good for the markets, bad for the markets are marked chamber at brown brothers harriman making an interesting point, that just a debate has now become bad for the market. he says pressing down on the markets, it would be good just to get it over with. david: there is certainly something to that. it is exercising a huge amount of time to think about the implications.

a lot of the big hitters have been hit, including kroger and health care. health care and biotech have been slammed on the high beta. some of the air coming out of those trades, that will be interesting to watch. some of the upgrades and downgrades, yum, clsa up grading yum, raising the price target to 107 from 105. they were looking at the breakup prospects seeing if they spun off their china business which is more than 55% of its business. the stock looks set to open up nicely higher, 2.6%. >> breadth positive, a hand full of stocks in the red in the s&p. among those close to the top of the list, alcoa gets a little love, and netflix up after trading down for seven straight days. >> still had 100% gain for 2015 but that has been brutally hit. is today a bounce, or is it the start of fall, new buyers coming in, this idea that the bull market is not over, it just needed a correction on valuations? >> shares of apple are up ahead of the announcements tomorrow of various new product offerings. apple tv expected to be featured in terms of, at least, a new vers

campbell, kroger, hershey's and clorox. these are consumer staples.u're down to utilities and a few consumer staples as market leadership, you know the market has problems. the big problem is the loss of leadership for the financials. for the returns in q3, it's simple. bonds have outperformed stocks. look at the ten-year treasury, total yield, total return, small caps are dramatically underperforming, even big caps, the s&p 500 down 9%. is there any good news here? i struggle to find it. the guidance has not been that bad for q3. this makes me think it should be positive for earnings guidance. 76 companies have guided negative so far. that's the lowest since the second quarter of 2012. they should have been guiding by now. we're going into the quarter. this is when everybody gets it done. positive 32. that's average. that's a help. that will put us into positive territory. here's the problem, there's not many companies, not many sectors contributing to earning growth. look here. in terms of what sectors really matter for the quarter, it's really fina

lululemon on thursday and kroger for consumer staples on friday. there's still stuff to watch.of those provide a catalyst. over to you. >> dom, thank you. >>> when we come back this morning, top media headlines including a weak box office take. and a streaming announcement from verizon. and today we are kicking off our celebration of the 20th anniversary of "squawk box." ahead we're looking at the next 20 years of investing with lee cooperman and mario gabelli. plus the man who's been called the new bond king. rick rieder. right now as we head to a break, look at the companies that were founded the same year that "squawk box" started. we'll be back. two streetlights. the only difference: that little blue thingy. you see it? that's a sensor. using ge software, the light can react to its environment- getting brighter only when it's needed. in a night, it saves a little energy. but, in a year it saves a lot. and the other street? it's been burning energy all night. for frank. frank's a cat. now, two things that are exactly the same, have never been more different. ge software. get

i wish that we were all kroger, okay?mpany were just home depot, but most have expanded around the world. we have to be more worried about others. we can always foe focus on employment numbers. there are other factors. bernanke would not do anything. >> good to see you, gym, we'll see glow a few minutes. >> we will wrap up our conversation with david cody in junction a moment. coming up tomorrow on "squawk box" a conversation about the future of america. >>> welcome back to "squawk box" this morning. we have the chairman and ceo of honeywell. let me ask you something, the robot question. it goes to the jobs issue long term. we talk about moving overseas and all of that, what do you think happens in terms of the robotic -- >> i go back to the black smith. and he is shoeing horses and whatever else, the automobiles came and everyone thought the world would end. if we're not innovative and looking to the future, the alternative is worse. we have to do this. and we have to find other ways to create service jobs and everything

. >>> on our earnings calendar today, the largest supermarket chain kroger is to release.economic data, we'll get the ppi numbers at 8:30 eastern time. forecasters expect to decrease of .1%. check out the u.s. equity futures at this hour. of course equity futures when you're looking at these things in the morning have not been a clear indication of where you're going to wind up at the end of the day. right now dow down. >>> our guest for the next hour is bill ackman. he has taken an activist stake in companies from target to valiant. his latest in mondelez. that's the most money ackman has invested in a single company. if you haven't been following the activist drama around mondelez. it spun you have from kraft foods. nels nelson peltz took a stake in that company. shortly after that warren buffett came on "squawk," said a deal between mondelez and kraft heinz unlikely. bill ackman is here. i want to talk to you about the markets and this fortune piece. so many things to talk about. i want to talk about mondelez. this summer has been a tough summer for a lot of activist in