both penney and nordstrom tumbling.t least eight firms cutting their price targets on nordstrom, which misses by a large margin 26 versus 45. revenue was light. comps down 1.7, but the lesson here is that even retailers of that income demographic are not immune. >> everybody at the mall was out of position, no way to put it otherwise. if you think of the three drivers of what matters to retail at any time it's the kind of secular move toward online and everything else. different ways of buying. cyclical are consumer spending and then the weather. i think all three of those things went against you to some degree in april. but i think the government retail sales here it's not a macro issue most directly, in fact within that report it's non-store sales that were the strongest. >> non-store retail up 10.2 year on year. >> there it is. and it's something we've been talking about now for years, actually, this movement for your phone to get your business done, willingness of stay home or do something else, take a walk in the p

penneys is taking share back. i think penneys deserves a little better multiple.importantly, i think as they start to pay down debt, the street will get more excited about the equity and the fact that they look a little expensive right now will probably not keep the stock from going up. >> alex, what would you say to the ceo if you had one bit of advice to give him? >> i'd say keep going on the track you've been going on. you know, ultimately i think that a year ago we were all thinking that in order for j.c. penney to get to this level of profitability they need s6, 7, % sales growth over the next three or four years. that did not materialize. the company did a great job cutting costs and reigning in the growth and working capital to the point where, you know, i think creditors will have a lot to get excited about and there should be better opportunities for them to refinance this debt as time comes on. ultimately, you know, there is only so much senior management can do to get the consumer going. other department stores have certainly felt a the lot of the same

and i know that -- johnson really, i would say, dismantled that portion of jc penney.tled all of jc penney. left it for dead. >> he is due to come on, david. could you be a little more sweet? >> no. >> fabering? are you fabering? >> i'm not going to faber. >> my producer said, wow, you fabered them. >> tough but fair. >> there's fabering which means too positive and then fabering which means to be fair. i'd rather favor than faber. >> appreciate that. >> what's on mad tonight? >> i'm going to faber jim murren, he's a very good record of creating wealth. >> the spin gone well for him. >> we'll talk to him about this mgm -- by the way, nevada's doing okay. gambling is doing okay. little better -- it's funny, macaw not as good. >> may i say to all parents who have kids that are graduating or have graduated, congratulations. >> congratulations, jim. >>> when we come back live interview with chairman and ceo brian roberts. don't go away. stephen king, the master of suspense and the macabre. i enjoy keeping people up at night. my analysis shows your stories are actually abou

we heard announcements about jc penney reorienting toward home goods and furnishings.s there really any way out aside from just shrinking and trying to get used to this serial discounting world? >> yeah, i think there is. but you have got to reimagine what happens in the store. so much energy has been put into trying to do something online but online doesn't create any emotional connection for a customer, and it's been kind of a false strategy i think to put all this energy into trying to be convenient online. you have to figure out how do i take digital devices in a mobile world and reimagine what happens in the store. if you can do that, it changes. an example. i look at sole cycle as an experienced digital company. you go on your phone, you pick your class, you pick your instructor and reserve your bike and you pay for it online. then you have an experience in the physical place of exercise that goes way beyond exercise because you are part of a movement. stores have to create movements through experience. then i get a product. but there aren't a lot of people that

so how do you play this sector as jc penney, nordstrom and others get ready to report?on coming up next. stephen king, the master of suspense and the macabre. i enjoy keeping people up at night. my analysis shows your stories are actually about human connection, even love. great storytelling needs drama and empathy. my cognitive apis can help any business better connect with its audience. you should try writing a book. find a remote hotel. bring the family. i do not think that is a good idea. >>> good morning everybody. i'm sue herera. and here is your cnbc news update at this hour. an explosive laden car bomb ripped through a commercial area in a predominantly shiite neighborhood of baghdad killing at least 63 people and wounding 85 more. the islamic state group has claimed responsibility. >>> the son of a former pakistani prime minister freed from kidnappers in a dramatic military rescue in afghanistan has been handed over to pakistan's ambassador in kabul. arriving by helicopter at the afghan defense ministry earlier this morning. >>> queen elizabeth making a rare ap

. >> jc penney is expanding the roll out of major appliances to 500 stores across the united states by this fall almost half of theers. there is no word in that includes any in the bay area and comes as they look to reinvent itself as competition grows from retailers like amazon and t.j. maxx. >> a new powerball winner in new jersey. all the store owners could not be more excited. what the couple said they plan to do with their share of >> coming up at 4:00, concerns of the dangers of e-cigarettes, what what is happening to young children. >> one drop to skin that could be the answer to hiding wrinkles. >> in new jersey, store owners are celebrateing after selling the winning power baltic coat. >> probably take a vacation. i know it is life changing and anything can happy in jersey. that is true. this morning, angela and her husband received a $30,000 check because they sold the only ticket matching all six numbers on saturday, the winner of the $429 million jackpot has yet to come forward. >> did you think it would be more? >> i did. >> i had to take a close look. >> i thought it woul

penney tumbled today after the retailer reported a surprise drop in its first quarter sales. the department store chain joins others like macy's, nordstrom and kohl's with weak sales result due to the online retailing like amazon. overall, retail sales climbed a seasonally adjusted 1.3% last month. online purchases advanced 2.1%. car sales also saw a jump after a drop in march. >>> let's take a live look at the big board. not doing so well today. the dow is down. >>> the sharks won last night at s.a.p. center making our biggest sharks fan, roberta, very happy. the sharks crushed the predators 5-0 in the deciding game of the series. joe pavelski had the first goal just before joel ward broke away from the park with the second. the sharks now face the blues in the westerns conference finals in st. louis this sunday at 5 p.m. >>> now to another winning team here in the bay area. steph curry's back-to-back mvp trophies will be on display today at the warriors team store in oakland. fans can snap a photo with the awards until 9 p.m. fans will also get the chance to purchase exclus

but there you go, penney's down more than 7%. not a great day for them. gold by the way, very quickly, as soon as we got jobs report, gold shot up. gained 21.70, to settle just under 1300. melissa: ashley webster, thank you so much. david? david: gold, gold, gold. that is what we're all wearing today. we're waiting another one of donald trump signature hangar rallies this an airport in omaha, nebraska, where he will speak shortly, maybe today. he will tell audience to vote in tuesday primary. gop front-runner shocked an audience in west virginia saying they could stay home during that state's primary. >>> donald trump and paul ryan standoff could be coming to an end as early as next week. >> i know we're meeting next week but -- >> you and paul ryan? >> we're meeting next week. >> what are you talking to him about? >> i have absolutely no idea. >> do you know what day you will meet with him? >> wednesday. a long time to be honest. there is lot of days before that. david: looks likes trump will have to wait a little longer than wednesday. paul ryan's offic

jc penney upgraded, outperform at baird. the stock's down almost 1.5% today.im leventhal owns it in real life, now has added it back to the portfolio. he's got super conviction on this name. >> never heard of sears, huh? >> i don't know. >> everybody who attacked him last week which was kind of an attack, i don't remember who it was, josh and somebody else. >> yes. it was one. >> he isn't here. throw him under the bus. >> what do we think? >> i think, look, i have been wrong on the retarilretailers. you get a retailer like jc penney with debt on it, talking about sears, it will be really hard for them to grow. maybe get a bounce but i wouldn't chase it. >> attractive risk/reward. that's part of the call here. greater than 30% pull-back from march highs. >> the floor is zero. i would stay away. >> i would look at this stock almost like an nlp with a reserve -- kind of like with a steady amount of traffic but way too much debt. and really, no plan to grow. they just have to keep the distribution of cash flow somewhat alive but it could be a zombie stock forever.

penney closed 47 over the last year. ira kalb is a marketing professor at the university of southern california. he says many big box retailers on longer give shoppers a reason to leave their computers. >> retailers have lost their added value. me reporter: since more online sales means fewer purchases at local malls, many retail e velopers are now trying to upgrade to more luxurious shopping centers that can sell twice as much per square foot and offer much more than shopping. >> in order to compete with online convenience and the one- stop shopping, you have to create a store experience. the ones that have are the ones that are doing well. >> reporter: like the grove in los angeles, which is experiencing doubling-digit ngowth. it's a shopping center that looks more like a village main street, complete with a green space, restaurants and valet parking, because the goal is no longer just shopping. >> we're also in the entertainment business. >> reporter: marketing director judy johnson says shoppers spend twice as much t

retail space the xrt posted its longest weekly losing streak since january with macy's kohl's's, jc penneyng next week, is it about to go from bad to worse. carter, what's your take? >> it's not a great space. what we know, even though it's well above its own january-february plunge lows, if you look on a relatively basic how the xrt is trading to the the s&p, it's almost at new relative lows. it's a broad index, 98 names, equal weight or close to it, a lot of the soft apparel names are struggling and a lot of marquee brands you would expect to be doing well are not doing well. and then there's this, of course gasoline is starting to move back up. that's going to be another issue for this group in aggregate. >> yeah. >> one of the issues, though, when i look at this, it would be an awfully tough short press right here. a lot of these stocks are getting pretty cheap. you have to feel like a little bit of good news could cause a sharp rebound, i think. i don't know when that rebound comes. you're going to -- it's hard for me to sit there and take a look at a name like macy's and say i want t

set up clinton's private vietnam investor what that means for the fbi investigation coming up jc penneyline of business the company things branching into appliances will bring people into the stores, we are checking retail in a big week for retail, later o innovate product changeing the way we drink wine we have a wi-fi connected bolts of burgundy right here on set stay with us for that, checking markets this morning expecting a higher opening for the broader averages take a look we are off the best levels of the morning nonetheless, you due industrial up, seth curry a hundred in green as well as european markets to politics polls open west virginia donald trump the only republican contender standing, expected to collect all of the state 34 delegates and enact side hillary clinton recent push in coal country mate not be enough to sway vote charlton west virginia with the very latest rich good morning to you. reporter: good morning. the polls open will stay open until 7:30 tonight for republicans donald trump west virginia represents an opportunity for him to continue amassing delegation

penney shares, which initially plunged on the news about their abysmal first-quarter results.ue trailing wall street estimates, reporting a drop in same-store sales in the first time in 10 quarters. macy's as well. this is a macro problem with consumers or a channel problem. very likely if you look at the retail sales numbers like the numbers you pointed to, this might just be a channel issue, not an overall american consumer issue. however, want to bring up one chart that kind of ads to this whole mystery, which is the consumer comfort index versus gas prices. generally you see an inverse correlation when gas prices go down, consumer comfort goes up. you kind of seeing that through the years here with the wide gap between the two lines. but if you look very closely what's happening towards the end of this chart, which is 2016, both of those blue line gas prices and white line mean consumer comfort index, they are moving in lockstep. how does that make sense? wiring consumer prices feeling better? on the broader u.s. markets, abigail doolittle has more. abigail: we have the na

if there is no dollar bill christ everything in pennies then said penney's would not be accepted but instead that could be swapped for the dollar after all praise is are quoted in dollars now instead of 200 it is to. and nothing would change. and prices would look lower iran fighting inflation rich people would be rich and poor would be for only with dollars instead of pennies. even the sexual steadily be fuelled late -- pulled if you times. but if you discover 300 and the your questions you could swap them for dollars by brazilians had one year to convert but some european nations said they will forever aegean old coins even when they give up the door each mark - - the deutsche mark over a decade and a half ago. , north to reengineer the currency and with the official exchange rate you can imagine that north korea with the great leader says it should be worth in dollars source $680 with the black-market rate. and that was exactly the point. the north korean government is increasingly intolerant outside of their ration based economy. single large stashes of cash with the stroke of th

penney, kohl's, nordstrom, back in the stores?z. >> consumer spending has cut half a trillion dollars, and what we're seeing is sports authority going bankrupt. aeropostale, credit rating cut to junk, macy's, kohl's, basically macy's ceo saying we're not counting on the consumer to come back. stuart: they're not buying. shopping in mall, foot traffic in malls. >> as health care and educational cost. ashley: the consumer isn't spending on apparel, they're spending on restaurants and experiences. stuart: tammy bruce is here, and another reason? >> it's about unexpected costs. i hear from my listeners, $4800 increase in families for obamacare. they don't know what the next month is going to bring when it comes to health care if they get sick, higher costs in general and even using it. so this is where people have gotten cautious, they're saving. it's what americans end it to do. ashley: consumer spending has declined three quarters in a row to tammy's point. people are very cautious liz: and the euro zone is growing faster than the u

jc penney has been doing this.efora and the guy from home depot is going to bring in appliances and, you know, you go back before johnson came in, 20% of their business was, you know, home type stuff. it's down to 10 or 11%. they can get that back up. there's a lot of low-hanging fruit in this name. that is realistic price. >> you know, the stock has come from almost 10 to mid 7 in the last couple of weeks, but we see $2 of earnings potential, probably three or four years out, but that can be a 20 or $25 stock. so technically this stock could go up three times in the next five years. it's got that kind of potential. and you're not talking about you're having to do a lot on the bottom line. you can get a 10% sales increase and earnings will go from -- >> you think zero? >> not at all. there's always a shot. but they can -- >> you remember the stories they weren't paying on time. you heard those stories? i hasn't read those. we had them. there's been anxiety about the entire business. >> their debt was like, you know

penney's and kohl's has good deals as well. >> the nba championship promotion. say you live in new york city and the away team wins the game against your team you get a free taco. why are they doing this? most of the time in a conference finals the home team has been winning. taco bell will be on the hook for a bunch of free tacos. if the away team wins against your team go to a taco bell between 2 and 6:00 p.m. the next day and get a free taco. >> you could say you were going for the losing team. >> cheryl, thank you. 19 minutes after the hour on this friday morning. a frightening new reality the antibiotic resistant super bug doctors have been dreading. what you need to know. >> the jeopardy jokester, you either love him or hate him. the reigning champion making the internet explode with his answers. [alarm beeps] ♪ ♪ the intelligent, all-new audi a4 is here. ♪ ♪ ain't got time to make no apologies...♪ >> it is the biggsest threat to the world today. an antibiotic resistant super bug made it to the u.s. a woman has been diagnosed with a rare form of e coli. th

jc penney's shares could double over the next three years.hey have made major progress in the last three months but still remain pretty much under the radar, trading under $10 a share, well off the high of $43 hit in 2012. >>> a perennial event didn't disappoint. we are joined with more of the highlights. >> good morning to you. warren buffett and charlie monger sitting down. they discussed what is the woodstock of capitalism. take a listen. >> there's been far, far, far more money made by wall, by people in wall street through salesmanship abilities than through investment abilities. >> he points out a vanguard fund that tracks. he also slammed a pharmaceutical saying it is enormously flawed and turned out to be a sewer and those who treated it got what they deserved. and how does he feel about the 2016 political race? he says he would be okay with either hillary clinton or donald trump saying one of them is very likely to win the election. you know buffett coming on "squawk box" later in the morning. >>> coming up, puerto rico warns it will

i wouldn't want to own penney. the not great, i know. what can i do? it is in the mall. it's been a very brutal week. one that has seen continual selling like tech, banks and pharma. the bottom line, earnings are driving these bull and bear market rotations. let's hope next week gives us a sedge of what's alive and well, at least this moment. about the only time span this market currently cares about. keith in illinois. >> caller: good afternoon. my question is. the stock ran up. it looks like it is charging again. >> ulta has held up very well because they sell make-up which you can't walk outside your door anymore. all you're doing is taking selfies. because of that phenomena, i think they'll do well. sephora does well too. >> hey, sid. >> caller: greetings from indianapolis. i hope you're well. >> i am doing really well. >> caller: it's great to talk to the guy who has had my back all these years. i'm really be26th and between on hershey. i built a small position of 125 shares. i'm a few dollars ahead. but selling 40 times earnings. and i know that it has been solid f

penney is selling devices again in 500 stores across the country.esting furniture, floorings and window dressings. it is siting big investments in the housing market. budweiser wants to be called america this summer. the belgian brewer wants to make the patriotic change ahead of the beer drinking summer holidays in america. >> i wonder how other beer companies would think about them being called america. >> could they pull off a west virginia win today? what does trump need to unite the party? our political panel on deck to weigh in. >> what do voters really think about the candidates? they are talking politics and pancakes with heather nauert. she is live for us serving up some coffee. ♪ what are you doing? sara, i love you, and... [phone rings] ah, it's my brother. keep going... sara, will you marry... [phone rings again] what do you want, todd???? [crowd cheering] keep it going!!!! if you sit on your phone, you butt-dial people. it's what you do. todd! if you want to save fifteen percent or more on car insurance, you switch to geico. it's what yo

jc penney up about a percent in the pre market. lit report results and walmart remains flat.ly yesterday as well. >> it is super thursday for the bank of england. set to deliver reports at 7:00 a.m. eastern and mark carney will hold a news conference about 7:30 a.m. eastern. looking at trade in the ftsi 100 down fractionally. we've gained over the last hour or so. down about half a percent and now up about .2% for broader europe. look at asian trade as well. a decent return for the nikkei today. on a day where the yen is softening. albeit toyota is at the bottom down 2.5% after disappointing earnings. hong kong down about 7%. shanghai basically flat. >> the international energy agency out with a new report saying global oil supply rose by 250,000 barrels to 96.2 million barrels per day in april. the iea expects a dramatic reduction now in global oil stocks growth in the second half of the year. wti building on yesterday's gains. up about .8% above 46.350. brent is just below $46 a barrel this morning. yesterday a steep decline in --. and yet we push higher to 2016 highs. on t

penney's they loudly announced they were no long going to sponsor the news and traffic updates duringt they pulled their advertising from all talk radio just to be on the safe sigh. in that way, what limbaugh did hurt all of his colleagues. the whole news talk format bake a no-buy zone. >> i usually roll my eyes, because i don't think they'll have an impact, budge in this case, it actually did. before i let you go, you mention indeed your story that trump has not been endorsed by rush limbaugh, nor attacked by rush limbaugh. he's taken this middle approach of not going all the way in for trump. is that right? >> that's right. i think now that the primaries have wrapped up, you know, he'll be pulling for trump, particularly against his hated hillary clinton. in the primaries, he was agnostic. i think that spoke to his business sense. he knew about half his audience loved trump, about half hated it, so he went down the middle. >> he is a mart businessman, but it seems like the ground has shifted underneath. we'll see what he does in july when the contract is up. ethan, thanks so much fo

penney here. the great thing it has the implemented bra in there.t will give that you bus lift that you need. >> the padding. >> pad something key. >> but it doesn't have the padding? >> it doesn't? >> it looks talcony-palmyra. >> go with fabric that's silicone, that gives you the lift without the bulk on there, also stripes. >> does it have the wire like the bra? >> yes it, has the wiring in there, too, actually made like a corset, almost, ariana getting off the plane, had her corset on, not giving it up, so you can go for that for inspiration, but wearing stripes so it can still be the angular stripe. will show your shape, as well. >> i love it. thank you so much. i want to go shopping right now. i need to get me swimsuit. i need to be ready. these ladies all rocking it, everyone fabulous no matter what you are working with. >> exactly. >> thank you, we appreciate it. >> all right, 9:51, mike's over here, i know you can't see him. >> we're going shopping for you, too, mike, we'll get you somber newed a shorts, okay? >> he's too excited. >> i have

the only guy who's explained what's happening correctly is ellison at jc penney, which is what does heant to do? wood flooring, appliance, shades, window shades. sophora makeup when you go outside you have to look better. and that's it. beauty parlor. kind of an ulta salon thesis. >> nothing if not consistent, jim, on those calls. >> well, you know what, i should have been telling everyone to sell everything retail other than makeup. >> well, it does lead us to this goldman note today. stocks poised to open lower in selloff, now goldman takes what it calls a fat and flat view on equities downgrading them to neutral over a 12-month time horizon. firm is upgrading commodities to neutral over three months citing some less downside potential regarding crude. in the note goldman says, quote, until we see sustained levels of growth recovery, we do not feel comfortable taking risk. our equity strategists have become more defensive owing to heightened drawdown risk and growth scarcity. they like, as we said, commodities. they like some emerging market fx, but their point is until you see susta

penney and tiffany's. you look at retail sales number, it was positive. that's what's going to be going forward. >> that does it for us on "the halftime report." "power lunch" starts right now. >> thank you, melissa. we'll see you in just a bit. welcome to "power lunch." stocks are selling off. expectations grow over a possible june rate hike. there's a look at all ten sectors now. utilities and consumer staples are in positive territory today. hi, everyone. i'm here along with brian sullivan. tyler mathisen is going to join us in just a bit from washington. but first, let's kick off what's going on with the markets. more on this thursday market slide with dominick chu. >> 168 points to the down side. at the lows we were down about 185, 186 points. so we're off the worst levels of the session so far. but an interesting carry through from yesterday's trade when it was all about the fed minutes and the idea. the possibility of a june rate hike from the federal reserve and that really drove markets kind of a little bit more towards the volatile side. today,

penney and tiffany's. you look at retail sales number, it was positive.oing forward. >> that does it for us on "the halftime report." "power lunch" starts right now. >> thank you, melissa. we'll see you in just a bit. welcome to "power lunch." stocks are selling off. expectations grow over a possible june rate hike. there's a look at all ten sectors now. utilities and consumer staples are in positive territory today. hi, everyone. i'm here along with brian sullivan. tyler mathisen is going to join us in just a bit from washington. but first, let's kick off what's going on with the markets. more on this thursday market slide with

penneys, they have 100,000 employees, they are of sating zombie stores. the only conclusion that i can draw to so capacity needs to be taken out massively. this is the year to do it. maybe try to maintain the best of two brands and merge. it will happen whether they like it or not this year. >> i'll say this quickly for the georgetown folks, this about to be -- the retailers find themselves in a la gub use situation. >> you come to where we came to last night, the real estate. if that happens, if we start to see footprint number of stores get smaller, what happens? >> bank of america ceo has choice words about the impact of the collapse in oil prices on the banking business. we're bringing those comments exclusively next. i'm melissa lee, you're watching "fast money" on cnbc. in the meantime, here's what else is coming up on "fast". >> no matter which one of these people becomes president, ubs says the market will have a huge move in november. we'll tell you which direction. plus. ♪ ♪ >> that's what is happening to shares and what has investors spooked wh

penney's reports quarterly earnings may 14th. fireeye, not doing so well the cybersecurity company.t is more "countdown to the closing bell" straight ahead. liz: breaking news. with coal jobs getting crushed in west virginia and the state holding its primary on tuesday we now have remaining presidential candidates hitting the campaign trail to work very hard to appeal to voters in western virginia, west virginia, rather. many whom relied on coal for work and for jobs. look at this, we have 11,200 coal mining jobs in the u.s. have been lost in the last year alone. west virginia chamber of commerce president steve roberts tells us how west virginia should deal with coal's decline and how you guys are dealing with coal's decline. can't be a surprise to you that the coal business is shrinking, sir. let's talk about this a little bit. >> well, liz, thank you for having me on. we're doing lots of things in west virginia to diversify our economy. we are an energy-producing and creating state. we know about energy exploration. we have the technology here to find and produce and sell natural

way they are doing sit penney pound wise and foolish. they are swimming in profits.orbes magazine ranks the 49ers as the fifth large eest franchise worth a reported $2.7 billion. >>> a makeover on track t. clinical reports the new fleet of cars now being built in sacramento will soon be tested and romd into service next summer. muni ordered them at a cost of more than a billion dollars. the first two cars will arrive this fall, allowing operators to start training. >>> a sink hole, more than $3 million is going towards fixing that sink hole in moraga that opened up in march t. sink home, which is situated at marine boulevard and center street damaged a storm drain that's about 20-feet deep. >> that money will be used to inspect and fix other sections of that line. it is 6:39 t. morning is moving on along here. the rain is moving in. kari has a look at our microclimate forecast. >> sam, laura. we begin with light rain across parts of the bay area this morning. we are all seeing cloudy skies, that's a hint that our weather is changing. don't forget the umbrella before

macy's no official policy and walmart hasn't publicly addressed the issue and jc penney wants to creatend inclusive shopping environment, et cetera, sears and k smart and lord & taylor and sax the customer can use the bathroom they identify with. the first major poll was done just a few days ago and 47% of americans believe that people should use the gender they are important with. 41% the gender they identify with. what was your main concern? was it about you, lisa, or about kids who may be in the dressing room or something else? >> both, i mean, i have grandchildren and i don't want them -- my granddaughter has been in a restroom with a grand man in there and it's a little start thing as a woman in a dressing room. everyone was talking about the restroom issues but this came up in a dressing room and so, you know, i personally don't but i know sim many women aren't fully clothed. >> right. >> to me that's not about the transgender thing. it just opens up a door for men to go wherever they want to and that's what i was told whenever i went to the rorpration office. we appreciate you te

penney and nordstrom with weaker sales. stock market trying to get to positive ground as we head into the final day of the workweek. let's check the big board. new this morning... no-go... for the no >> back to you. >> thank you, jason brooks from kcbs radio. >>> new this morning, no go for the no tipping experiment at joe's crab shack. the chain is getting rid of the policy at 14 locations because customers said it doesn't encourage good service. it's been testing it since august at 18 restaurants including the one in san francisco. the chain says it lost up to 10% of its customers during the time. >>> time now 6:46. let's get a check of traffic. gianna, is it still "friday light"? >> you know, it is in some spots westbound san mateo bridge no troubles right now. we are seeing extra cars. chp a possible injury accident on the east side of the san mateo bridge on the high-rise. more on that coming up. right now traffic is moving through there. southbound 880 "friday light" for the most part. speeds down to 46 miles per hour

penney, j.c. brandy. i try to keep at least 40 bags of chips.p a lot of sweets because a lot of the girls come in detoxing, that is the main thing they ask me for. >> brandy, i'll give you your stuff back. >> okay. >> look at her. she's rich in here. this is the store lady. >> when it comes to her store, lane works on a policy she describes as two for one. >> two for one is if somebody comes and says do you have a noodle until shop day. yeah. here you go but that means they have to pay me two back. >> one bag of chips and one hot chocolate. thank you. nice doing business with you. >> you too. >> i'll be back sooner or later. >> so i don't have. my family takes care of me. but i get a rush out of it. >> lane is currently two years through a sentence at the prison. she was brought back to testify in an unrelated case. she said prison taught her the hustle. and how to keep her clients honest. >> if if someone doesn't pay when time i double it. and if they outright don't want to pay me, i don't know it. kind of gets ugly. i could give somebody a few

penney is selling off, down 15% in the premarket, after worse than expected. the numbers just hitting the tape. as you can see, the market has come off of the lows as a result of this report. futures indicating a lower opening for the broader averages. we're well off the lows. the estimate was for 8/10 of a percent increase. an increase in april of 1.3%. he's one of the most influential men of hollywood, director, producer, actor, ron howard. howard's production company imagine entertainment just inked a huge deal. the rain group investing $125 million in imagine entertainment which is behind such influential films such as apollo 13, a beautiful mind, a da vinci code. i had an opportunity to talk with ron howard here in vegas. >> great to see you, congratulations on the new investment that you just announced. thank you very much, it's with rain, the company that brian grazer and i have had for 30 years. it signals a new growth for us as business guys as well. maria: this is huge, rain investing $125 million in you. what is that going to enable you to do? >> we

jc penney mentioned that appliances were doing very well in its stores. the case we might just simply have a different kind of spending going on? >> the consumer is going to determine where they want to spend their dollar based on convenience. and brian cornell said it right this morning. about putting the customer first and making transactions easy. that is what amazon is all about. my business is in facilitating the use of amazon as a trading platform to get to the american consumer. in fact consumers worldwide. and the trend of our own marketplace is taking share and taking a piece of the american consumer's wallet isn't going to slow down any time soon. >> sounds like a good opportunity for a lot of small players as you mention but i also wonder what it means for the publicly traded companies. amazon is now worth more than 25% of the entire s&p 500 retail sector. how much more in a the public capital standpoint are we going to have to deal with the erosion of the businesses of those other incumbent companies? >> well, i think they are going to continu

penney. the job cuts at caterpillar. it's all piling up? >> the bull market that was in the industrials and the commodities, which seemed to have such legs, not that long ago, is not in tact right now. that because of the way that the curve is going, the banks chrks had been such good participants since oil bottomed, are just -- going back to where they were when we first found out they had oil debt that we were worried about. 40% of the s&p. right hering might be poorly positioned. that's a lot. >> and you mentioned retail. which i think is worth coming back to. lmt brands. the steam we've been talking about. amazon's take so to speak and everyone else's loss. >> do you have the mall? i have the mall. >> you have the mall? >> this is the stores i want to go into. >> the piercing pagoda. >> i go by it all the time. i don't walk through nordstrom to get to foot locker. it's all happening. the traffic. l. brands was never amazon. cow can't try on that stuff for victoria's secret. und undergarments don't sell as well. don't smirk at me. amazon

i said we need 350 macy's, not 800, and we needed not 2200 penneys and kohl's.er term, i'm agreeing with matt all the way. yes, the malls are in trouble. the bad malls. got malls will be better. the top 250 are still going to gain share. >> and will that space remain vacancy or does tj max come in and take the lease? >> they won't remain vacant. but when you look at t.j.maxx or burlington stores, yes, that sector is winning right now. but there is not bullet proof versus the internet either. >> i don't want to get too wonky, but a lot of the malls, they have sort of occupancy requirements, right? if it goes below 85% occupancy, the other tenants have the right to break the lease. >> if an anchor leaves, so you know, you think about going to the mall and you have this empty department store three or four other stores go out, you're not going to that ball. h -- mall. how bad does this spiral become? >> i think you'll see mall that's won't make it through this. i it this one point we didn't even really touch on is the cost of doing business. the cost will doing bus

penney's. uggs, thecker makes furry boots that tom brady and a lot of girls wear.ael kors holdings also down about 14% through the make the bags that tom brady carries. genescort is a maker of jeans all these retail suppliers down. i'm only kidding about tom brady. amanda: he just carries the bags. matt: i'm poking fun at tom brady because he went to michigan. david: he was a great quarterback. not hard to be a great quarterback for michigan. nordstrom has a big menswear sales. settled a patent case with under armour. 3%, the retail sale, no matter where you look, down. sales are the retail problem extends to landlords as well. lower rents when context for new, department stores turned in the worst sales growth since the recession. general growth, properties as well. -- the retaillege problems going far beyond stores. david: i have to say, you are right, michigan has had trouble with quarterbacks because we have an academic partner institution unlike the play south of us. -- the place south of us. win footballdo is games. david: let's go now we'll do little live fr

know how weak apparel's been, after the close pvh, manny chirico, i think he holds the key to jc penneystrom, kohl's, the keys to the kingdom because he has percentage of the shirt and tie market that's obscene. antitrust would never have let it happen. hey, i'm there. i always wear a manny tie when manny's on. >> you know the way to their hearts. >> right? this was a dynamite show. how did you get that meg whitman interview? >> like we have her every quarter. it was really tough. thank you, jim. it's a long relationship. >> you know, look at that. >> i know, jim, we'll see you tonight 6:00 p.m. eastern time. when we come back, whole foods, walter robb live from the company's first concept store aimed at millennials with the dow up 125. or from cleveland clinic, watson, let's review the electronic medical record of the next patient.. no problem. it's a pretty huge file. done. sorry for the wait. that was quick. as part of our research, i also compared lab results with notes about prior treatments, then cross referenced it with thousands of medical journals. and i get the benefit of much

people in the world, to read ellison's comments, not larry, and we revere larry, but ellison at jc penneyhe was so eloquent about what's working. flooring, flooring is working. window -- beauty parlor workin, home goods, working, appliance goods, working, apparel, no, no working. >> no working. >> plus sizes work because people want to try them on. they're afraid. everything else you go to amazon. look at home depot is not a -- >> so in other words plus size you're not going to order on amazon? >> he said they do not feel -- women who order plus sizes are not confident with the web. that's his comments. he's so good, i mean, you got to read them. they did much better than everybody else because he's got a great orientation. he really has -- at one point he says, you know, the other guys they didn't look at the data. i'm very data driven. he's data driven, well, that's kind of what you do, data driven, only data. there's a guy named bezos, there's nonunionized workforce and there's mr. data. >> and mr. data leads everything. >> watson. >> yes. >> watson should get into retail. >> well, i t

other retailers like macy's, jc penney and kohl's are also in the red.eren't low gas prices supposed to be a boom for all these retailers? let bring in the president of s.w. retail adviser. stacy, listen, when we talk about retail, we always talk about esoteric things, always the weather. it was a currency translation, whatever. we're going to bring up a picture of t-shirts that the gap is selling, okay. horizontal striped blue and white t-shirts. nobody looks good in that unless you're french or a sailor or a french sailor. is the problem here really all about product and the gap simply doesn't have it, and they are making mistakes? >> brian, you hit it on the head here. so we can blame all of retail's problems on amazon, or we can actually look at some of these brands and say what are you thinking? if you have been into a banana republic or a gap in the last six months, you would know that as you were just saying the fits are wrong. the stripes are wrong. the florals are wrong. this is a largely self-inflicted problem. yes, small traffic is down. yes,

this is one of the products from the penney farms. you have a customer over here so we won't take too much of your time. how busy is today. >> customers have come through. >> we are buried today. we may run out of flowers. >> what is popular? >> colored roses. mostly pink and lavender's this year. everything lavender this year. and hot pink. and lighting. >> this has to be the biggest day for you. >> mother's day is big for us. on valentine's day everything is so expensive. on mother's day the flowers are the same prices than regular business. and you get more volume. >> last thing, did you take care of your wife? >> all of the time. >> [ laughter ]. >> she gets a break on flowers. >> yes. flowers every day.>> we will check in with you later. but busy day. don't forget, if you have not gotten your flowers, the flower mart is here and go out and get something for mom. i have a surprise planned. >> i want to say happy mother's day and we will catch up with moms throughout the morning. we will be checking in. >>> roses and peonies. what

target lbrands, dick's sporting goods and jc penney all down over the last five sessions. more from courtney reagan next and walmart's report. back in a moment. ♪ there's no one road out there. no one surface... no one speed... no one way of driving on each and every road. but there is one car that can conquer them all. the mercedes-benz c-class. five driving modes let you customize the steering, shift points, and suspension to fit the mood you're in... and the road you're on. the 2016 c-class. lease the c300 for $359 a month at your local mercedes-benz dealer. >>> heading to the story here, the breaking news of the morning. the egyptian aviation ministry will hold a news conference in about an hour. 7:30 eastern. as you know by now, an egyptian plane carrying 66 passengers and crew on a flight from cairo to paris disappeared over the mediterranean. we'll bring you updates as we get them. >> checking with business. it's been a rough week for retail. lbrands posted earnings of 59 cents a share and while it was better than expected sales were short of expectations. check out

he also has jc penney and target. it's a pretty good record.neral growth, the upside. >> people don't mention the home runs that often. >> they used to. he was on the cover of "fortune" as the greatest -- >> baby buffett is what it says on the cover of fortune. he said he's trying to stay off the covers of magazines. >> elizabeth holmes is also trying to stay off the cover. >> death of earthquakes business jifr jinx. >>> ceo of motorola solutions will talk taxes, politics and the health of the economy. later, joined here on the set by new york city police commissioner bill bratton. that's why we'll feel very safe. be right back. how do you stay on top of your health? ahh... ahh... cigna customers have plan choices and tools to take control. so they're more engaged, with fewer high health risks and lower medical costs. take control of your health at cigna dot com slash take control. shoshow me more like this.e. show me "previously watched." what's recommended for me. x1 makes it easy to find what you love. call or go online and switch to x1. onl

some up, some down, no big movement except penney up 2%. there you have it.th, you said you wouldn't touch any of these retailers with a 10-foot pole. are you still in this position today? >> and liz has alluded to why. it's a carpet bombing and that's why i wouldn't touch anything in the bricks and mortar retail sector, you can't shop there anymore, the internet has done them in. stuart: we asked the question, how many times have you visited a mall in the past months ten years ago people would say a couple of times. people would say i don't go to malls liz: internet sales, retail sales triple the growth rate. >> there are malls being turned into libraries and college campus satellites, and they don't know what to did with these buildings. stuart: tom, i want your answer on the retail, is that legit? >> they're used for retirees, they walk around there's nothing there. they walk around in a circle. retail is being put out of business. amazon is reforming the model wal-mart originally built brick and mortar. the result after everybody and they'll do everything

overall, but then you have the middle market, really the department stores, examples like sears and penneysruggle and then convenience retailing, you have your grocery anchored centers, your drugstore anchored centers, where that's the day-to-day consumer based shopping destination is doing extremely well and a great investment vehicle for a lot of investors. >> i know you just complete this had bi-annual survey you do with the largest real estate investors and found that optimism was at the highest level, even higher than in 2005 just before everything crashed. is this a leading or lagging indicator? >> it was a leading indicator, accurate in showing us there were concerns in the market in '06-'05 well before the turn. we saw optimism come back steadily after 2009-2010 and hit new peaks. in the last couple of quarters we've seen it pull back a little bit, not dramatically, still at levels that show a lot of confidence as an investment vehicle mainly because you have yields in the 5% to 7% range based on the type of real estate and the geographic market versus the alternative investment whe

many think something further happened in retail jc penney is pleased with the performances the first quarter exciting the expectations. still there is a lot of chatter that is starting. retailers started slashing price s. knowing if the parent of stall wart stronghold victoria secret and bath and body works faultered concern is mounting ahead of reports this week. lowered earnings estimates for macy's and kohls citing early signs of strength that faded by the quarter's end. rbc analyst laurvelged coverage of the department stores and notes that the $5 million spent on the group has an uncertain, if not unfavorable roi. we have a number of other notes from analysts today. pretty negative ahead of the department store reports. >> we had joe with us earlier. he's an economistest. he's been watching the tax receipts and they've been sub par. last year we were tracking 6% growth and now tracking less than 3% growth. >> definitely. particularly, of course, this time of year. that's something that will probably be hearing from walmart on. perhaps more so than others. they'll often talk abou

. >>> jp p-- jc penney may presen an attractive. and a record 3.4 billion fine. next several weeks. >>> we have an update now on yahoo!'s attempts to sell itself. dan gilbert is teaming up with warren buffett to buy the internet company. we can report that gilbert made a bid for yahoo! and berkshire offered to be a potential financing partner for gilbert in the bid. warren buffett said -- you can see yahoo! shares are up. >>> now to the broader markets. this week marks the one year anniversary of the all time highs for stocks. here is "usa today" one year after the peak. s&p 500. they decided this would be a great find. you in usa "today." >> i had this on the way on thursday or friday. >> did you look at the guys here. they have traders. >> i see them every day. >> it's not a down 400 day. they usually find them. it's up -- this is we're not sure what is going up. >> one guy looking up, one guy looking down. they found the generic trader thing for we're stuck in a rut. is the rut going down into a bigger rut or suddenly go up? >> if you look at the market from t

penney. 50%, get a coupe pan at couponsherpa.com. >> we have mothers day. >> congratulations to you,ppy mothers day to you, andrea. >> we'll be right back. vo: across america, people are taking charge of their type 2 diabetes with non-insulin victoza®. for a while, i took a pill to lower my blood sugar. but it didn't get me to my goal. so i asked my doctor about victoza®. he said victoza® works differently than pills. and comes in a pen. victoza® is proven to lower blood sugar and a1c. it's taken once a day, any time. victoza® is not for weight loss, but it may help you lose some weight. victoza® works with your body to lower blood sugar in 3 ways: in the stomach, the liver, and the pancreas. vo: victoza® is an injectable prescription medicine that may improve blood sugar in adults with type 2 diabetes when used with diet and exercise. it is not recommended as the first medication to treat diabetes and should not be used in people with type 1 diabetes or diabetic ketoacidosis. victoza® has not been studied with mealtime insulin. victoza® is not insulin. do not take victoza® if you ha