every five years, a major social movement comes through that lululemon can connect itself to. seeing budding ideas of that now, but nothing i can tell you. >> you'll come back? >> sure. love to. >> good to see you >> thanks for having me. >> congratulations on the book "little black stretchy pants." it hits stores tomorrow. congrats. >> thank you so much. >>> we are watching tech stocks selling off a bit, adobe, amazon down 1o t3% we'll get you covered on "squawk alley" starting in a couple of minutes. ♪ ♪ protect sensitive data from millions of kinds of malware, with a cloud that's secure to the core. the ibm cloud. the cloud for smarter business. the ibm cloud. is taking place right under your nose. but it's not robbers. it's these guys. your bank has been keeping billions of dollars of your interest. that's not right. it's payback time. move your money to an online savings account at ally bank, and for a limited time, get 1% cash back. sign up at ally.com/payback and find out how much you could get back. ally. do it right. ♪ ♪ ♪ ♪ comfort. what we deliver by delivering. tak

similar to athletic wear for the athlete. >> touted by some as the lululemon of the medical world. >> having that maniacal focus on a health care professionals makes us who we are today. >> it's more risky in 2018 to not take risks and not be putting yourself out there in really scary ways than not. >> being an entrepreneur, there's extreme highs and extreme lows. you really have to see the future. you have to create it and believe in something bigger than yourself. >> there's a lot of attention paid to the beginning when you launch a business and then the end when you sell the business or have an exit. the hardest part are the middle years. our guest knows this firsthand because he's led successful companies through their triumphs and setbacks during the course of their business ventures. >> he's the chief product officer at adobe. he's also a venture partner at benchmark capital. he has a new book out called the messy middle. finding your way through any bold venture. it's nice to see you and talk about this. it's kind of the least fun part to talk about. >> it's a largely misunders

>> do they have the right designs for the next cycle lululemon if you look at the volatility, i can't get excited. they have a new ceo. you don't have the right design for the next quarter whatever they call it. the lulus. to me it's always about you get the art of the right design for the next cycle >> you have firms coming out trying to upgrade well-known stocks, quality stocks >> are you looking to upgrade in your own mind based on the fact they've come down, jim, too much i noticed a lot of defensive stocks are going up today. that's because people feel the fed wants to throw us into a recession to save the economy. >> i would just add -- >> that would be very odd. >> lulu is volatile. mcdonald's, although implied to realize it's pretty high, if you like a mcdonald's play or a lulu play, mcdonald's might be a good place to buy call options. there's only about a 10% rally priced into the upside of the options market >> is it safe to say dividends are back if you look at the last six months and you own a verizon which was considered nuclear waste six months ago -- >> i love. i own v

they're the lululemon of the medical world. >> reporter: spend a bit of time with trina and he da andbecomes apparent this two is in synch. >> i make sure it goes off on times. >> they're disrupting a nearby market scratching the antiquated boxy scrub. >> the industry has been around for about 100 year, no chaerng and no inoh evacuation. and scrubs before figures were outdated. >> reporter: five years ago, is peer, a harvard nba and hassan, a handbag designer came up with a plan. >> we designed with thought, with function. >> with purpose. >> yeah, with purpose. >> it wasn't an easy sell. >> there was a lot of resistance. you're making scrubs? >> everyone said, are you nuts? now i think they're pretty surprised with what we've created. >> a creation that was predestined. >> i wanted it to be different. i wanted to do my own thing. i grew up in miami. you've got to be a little hustler. >> they're on a mission to unite 19 million in the health care. while they average 20% higher, it's the first direct to consumer brand in their space. >> these are people that are saving lives and kurg d

lululemon's leadership team was called best in class. price target $176, shares rose a fraction today to $144.46. >>> still ahead the retailer that changed the way americans shop weren't his its next chapter, bankruptcy. enter ente . >>> create a $33 billion military technology giant.e it would bec the country's sixth largest defense contractor and the market clearly approved of the deal. today's announcement resulted in both stocks trading sharplygh . >>> walmart is hoping to grow sales with its latest e-commerce deal. the nation's largest retailer said iwas buying online luggage ray bare necessities for unclosed amount. the portfolio already includes jeb.com. >>>ow from the nation's largest retailer to one that used to be.ba led department store sears holdings filed for bankruptcy today just before a $134 million debt payment was due. b sears hn struggling for years to increase customer traffic and stem a decline in sales. not at all whatbe might hav expected back when that company was the king of retail. the original amazon. >> report

kind of lululemon. listening to reduce. the fight against illegal logging. david. against goliath all time for me to tell everyone what's going on the fight courageous activist. comes to my show going to. classes because they love it. but who will miss. the borneo case starts october ninth d.w. . hello and welcome to a new show of africa our environmental legacy brought to you by chattels t.v. ads.

where --er of yoga ar company lululemon may return.hip wilson argues that the company has lost ground to competitors such as nike and under armour. antitrust regulators have given their approval to create the world's largest supplier of industrial gases. the two companies still have to sell assets. billionaire investor carl icon cardlling american rail industries. this represents a 51% of premium. ahn could quintuple his investment. that is your bloomberg business flash. still ahead, from a beauty blog to a billion-dollar brand. we will talk to the founder of huda beauty. this is bloomberg. ♪ this is bloomberg markets. i am vonnie quinn. beauty may be a way i have the beholder. eye of then the beholder. she started as a beauty blogger, but now she has a business worth $4 billion. you are valued at more than a billion dollars. how did you did enjoy yourself from all of the other beauty bloggers out there? challengingk it was in the beginning to find where i could be unique, but i think ultimately, really honing in on our community and t

i wanted to ask about lululemon. >> okay, hit a 52-week high today.ieve just like ollies, thank you so much for great picks. lulu, ollis and burlington and i like under armour. jeff in wisconsin. >> caller: granite construction. >> i was looking, i don't like this group it is too hard they need infrastructure built and they don't have it trent in california. >> caller: how are you doing >> i'm doing well. >> caller: thanks for taking my call starbucks. >> stock acted weak today. buying back stock left and right. i don't want to buy it until i see this quarter being booked, because i think it is just going to be okay how about brian in texas. >> caller: brian, in texas, always surreal talking to you, my first question comes with love, how many seconds on the clock before the cowboys won >> good for you. detro detroit snaked it. what's up? >> caller: last wednesday, my utilities were down so much. i was terribly in the house of pain but i raised some cash and that covered some sins buti have what i think the bes utility out there. why do you think the u

been watching your show for three years and appreciate all you do for investors i want to ask about lululemon. >> terrific quarter. we got an upgrade today. and i think it was right believe it or not, i think retait wi retail will be good. you will do okay in lulu bill in florida. >> caller: big booyah from st. augustine, florida red robin. >> and ladies and gentleman concludes the "lightning round"" >> announcer: lightning round is >> announcer: lightning round is sponsored by td ameritrade i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it a lot of work.ut that e no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪ monitor their blood glucose every day. which means they have to stop. and stick their fingers. repeatedly. today, life-changing technology from abbott makes it possible to track glucose levels. without drawing a drop of blood, again and again. the most personal technology, is technology with the power to change your life. lif

lululemon has a line up to $115.fit margin, that is where growth is happening in retail apparel right now. stuart: it makes sense. quiz on siena going into spend this morning in the gap. however, think about women on the street they used to be wearing jeans now the black workout pants, lululemon became a staple in the wardrobe. they're trying to get in front of that. >> wearing yoga pants? >> there is a lot more room out there for it. and a lot of startups are doing this and a lot better than the gap will ever do it. stuart: i don't see putting hundred million into the gap. are you doing that? >> absolutely not! their private companies. there better ways to do and more focused investors. and people to buy the product. >> can i just say, i don't really want to see men in tightfitting pants or lycra. >> fortunately, these -- >> these are looser fitting and they can stretch when you move. therefore sitting, hallelujah. stuart: can i get to this real fast? in last 12 months the treasury has brought in $1.683 trillion in

likeu look it stocks lululemon, target, walmart, all safe havens in the numbers look really good. it would be interesting to see what numbers did not go as well as expected. scarlet: it is a clear contract to the part of technology. we look at shares all falling after hours trading. the etf attracts a lot of the faang stocks is off as well in after hours trading. an indication here of what is to come tomorrow when we resume trading. luke, you want to jump in? luke: i think this is another thing that is different from this earnings season's two previous ones. all happy families are alike and happy in their own way. when one company beats, they all rose, and when one misses, only one misses. joe: what does this mean for private markets if investors are saying you need to make money, pure growth and vanity metrics are not enough? leigh: the interesting vcs who play around and move most of this money, they are starting to ring the alarm bells around these business models that rely on burning a lot of cash not really having economics down, end.maybe coming to an i think that is because

other, and the yoga loving sex obsessed ceo planning a moon colony, i know that will ceos love their lululemonfictionalized? >> it is inspired. i worked at a startup and other large companies. i feel confident saying larry page is not a nymphomaniac obsessed with the moon. emily: talk to me about the themes here. there is kind of like a me too theme, the misogynistic ceo, and the woman who buys into the company entirely. how should we interpret that? given the diversity problems today. >> i thought a lot about that. i hated him much any women or people of color from the book because i wanted to make a point, that we are dramatically underrepresented, and when we are there, we are not given the same opportunities. the one female character in the book is a female receptionist with a phd who basically saves the whole company with her invention. by the end of the book, she's back to being a receptionist. emily: i can't have you here without asking you about some of the challenges google is facing now. number one, trying to get back into china. the public, many people don't seem happy with this. so

if you look forward, sneaker wars, the story in the stoemtcks market is a lot of them are strong lululemon is one example how should we think about where we are in the cycle of at leisure. >> i don't think it peaked the trend towards more comfortable wear, will obesity no doubt sporting goods will outgrow the overall economy. that's our perception. >> always good to check in with you especially in person kasper rorsted, thank you very much we'll take something afterwards on arsenal on "closing bell. he'll kill me if i don't ask you. for now back to you, morgan. >> great interview >>> taking a look at the markets as we head to break, the dow dipping back into negative territory down about three or four points right now. the s&p hanging on to gains up about four points. the nasdaq the big outperformer today up half a percent led higher by chte stocks. we have more "squawk alley." >>> welcome back let's get over to the cme and rick santelli for "the santelli exchange." >> reporter: thank you higher rates are getting to be kind of the antagonist of the marketplace, kind of the joe walsh of the

lululemon is a great example of a company that has driven casual across the deck.saw that shoes haven't kept up with that there was a big market need for a shoe that carried you through outyour day. hence, needed to be comfortable. >> great idea. what's your competitive move what keeps others from copying you? >> tons of people are copying us we knew that would happen. we didn't expect it to happen so fast we have dozens of copy cats. now some of the big companies are doing what i would call inspired by us products, which is fantastic it says we're doing something really well. and they recognize a market need that we hit in this category we created. so the only thing we can do, we've been doing it from the beginning, is just keep innovating and try to cannibalize our own sales. not be worried about the fact that we might launch something and lose a little bit from one of our flagships. >> you and so many direct to consumer new entrants have received what i might describe as tech valuations i mean, valuations that historically would not be ascribed to a fashion reta

the founder of lululemon may be taking the seat he gave up after repeated fights at the company's leadershiphat complains about five years of missed opportunities. wilson argued the company has lost ground to rivals. elon musk has taken a step forward in his vision for the future of public transportation. his test tunnel will open in less than two months. it is unclear what sort of use tort musk will achieve top speeds. more upheaval at cbs. one of six new board members at what it to the network after the departure of chairman les moonves was accused of sexual harassment. parson said he's leaving from complications from blood cancer. david: a sad story. a lot of us know him well. and itaol time warner appears he has had this problem, but it has gotten worse. same time as another friend of ours has stepped into the sea. they are trying to figure out where to sell the company. alix: are you able to replace that. david: a lot of have to. dick parsons, very well known. he has been at fox -- zelnick has been at fox and video games, he knows his way around a board room. -- david: time for the futu

what i am interested in the back half is seeing the consumer numbers, names like lululemon, massiveallons. is the fact that these stocks have not taken it on the chin priced in, or will we see the consumer continued to perform really well? that can continue while the rest of the economy may be the senate race over the next two to three or four quarters. those retailf stocks do well, it is interesting to see what they say after the next quarter or the quarter after that. it is going to be tough on etc. s, on tariffs, >> we are not seeing downward revisions for these sectors. we are seeing them for all the major cyclical names. it is so separate at this point because we have bifurcated the consumer environment from the business and investment environment. we have talked a lot here on the show over the last couple of quarters about the fact that we're in this huge enterprise cap x cycle. -- capex cycle. we see ibm buying red hat. i don't love the acquisition so much, but it does say they are investing heavily in this cycle. i don't love investing into these high-volume, high velocity move

then again, lululemon went without a ceo and almost doubled.s act together, a lot of semis will run and see another leg to that. >> interesting >> yes. >> you trust this? you think inventory is turning >> no. but i think intel is a great company. notice amd is down, supposed to be advantaged by its problems. obviously, the story is getting -- look, they can accelerate things but did screw up. >> yeah. >> just maybe -- didn't screw up as much as we thought. >> execution, a big issue at big companies like ge. by the way, moody's on watch. >> on watch. >> what we've said. >> downgrade potential, dividend in question. >> intel, as we know, used to be one of the greatest manufacturers in the world, and shows you. they lost a step, and doctor lisa suh ran with the ball now that stock is down because people feel intel will be ass t assertive and able to move, get the supply chain better. got to tell you, if intel -- if this is untrue, everybody gets hurt, because intel is so integral to personal computers >> really quick tonight? >> paychecks, which u

whole system and intel is coming back a lot of people are thinking it is falling apart >> what did lululemonou a ceo? >> maybe that's a new thing, no ceo. obviously a tesla. na, i am quitting. okay, what do you want us to do? did you think he says something like all right guys, i am about to -- and i can't say it on-air? >> we'll have jim stuart about his column >> speaking of boards and shareholder meetings, jamie dimon, did you hear what he said at ai yesterday? >> we got to 8,000 public companies to 4,000 public companies. putting on the list of why that is and people study this and i don't know why, capricious arbitrary litigations and frivolous shareholder meetings, i love my shareholders, i speak to them all the time that's what it is and we all know that. social groups take on -- i am not against by it. a lot of people don't want to go public >> anyone who has been a shareholder meeting knows what he's he's talking about exactly >> yeah, it is not appropriate venue anymore. >> i mean the best danish. >> rest in peace >> how about you have to offer something at the shareholder meeting.

vuitton saying sales are hurt, wealthy chinese consumers, demand isn't there, tiffany's is lower, lululemons are lower. maybe we're starting to see that come to fruition. the argument for a while we had a moat to our economy, we were impervious to this kind of risk is. that not true? >> charles, when you think about the s&p 500 and 35 or 40% of the revenues come from outside of the country. you know, we need some help. we need help from places like china. we need help from the eurozone. we need japan to be buying our products. we need some international help to get to the earnings expectations that not only the expectations that we have here but also really the consensus on wall street, believe me. there are some international revenues built into that number and you know, that's what people are worried about right now. charles: go back to the first risk. federal reserve making a mistake. and in february, when we saw the sort of velocity of the yield spiking higher near 3%, not even crossing it, but near 3%, the market had a horrific violent selloff. and there were questions about jay powell