tjx increases guidance for the second quarter and the full year. tjx trading at record highs.on higher merchandise margins. thanks to a boost from the victoria's secret stores. it was the semi annual sale that always helps. macy's, kohl's, target and costco all missing expectations. costco with a negative impact from the timing of the fourth of july holiday. it was captured in last year's june comps but not this year. kohls and target said comp sales were impacted by hurricane debby in the south. back to school kicks into high gear at the end of the month. we'll see what happens but i'm sure retailers aren't excited about what they have seen for june. >> thank you very much. let's dig deeper into the june same store sales numbers. teley advisory group joins us uh now. dana, what are the upside and downside surprises? >> the stand outs are the off pricers with tjx and ross with the same comps similar to last month also. they just continue to gain share and take traffic. i have to say limited continues to be a positive surprise. that victoria's secret comp up 11% was impressive.

>> caller: the company is tjx. >> tjx packs terrifically. the european equivalent of a dollar store. their numbers are great. they're doing great. todd in georgia. >> caller: booyah from georgia. >> that's the best booyah going on. >> caller: looking at universal health systems, looks like they may benefit from the supreme court ruling. >> you've got horse sense. that company is well run. and that, ladies and gentlemen, is the conclusion of the lightning round! >>> the lightning round is sponsored by td ameritrade. distill all that data. make information instinctual, visual. introducing trade architect, td ameritrade's empowering web-based trading platform. take control of your portfolio today. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account. it's very important to understand how math and science kind of makes the world work. in high school, i had a physics teacher by the name of mr. davies. he made physics more than theoretical, he made it real for me. we built a guitar, we did things with electroni

i look at tjx. i love that name. it continues to make higher highs. their june traffic was incredible. same store sales were off the charts. they raised q-2. they raised full year. don't forget about raw stores as well. they blew the cover off. >> excellent call on tjx. it continues to perform and work well. i think domestically, we go back, we talked the other day. the sporting good thesis. that is working right now. all are working in this environment, places you want to be. i think when timmy talks about the people's bank of china lowering the benchmark rate, thick the potential there. it goes back to a chinese consumer that's emboldened. you want to look at a ralph lauren. >> really? so you wanted to go the opposite of the recent data points we've gotten from nike? >> look at response today in nike. nike traded incredibly well. look at yum! again, trading incredibly well. i think the effect of easing policy in china is not going to be on materials or on energy. it's going to be on the names that are selling consumer goods into china. don't forget

i like ross, tjx and petsmart, too.hen portfolio managers hear the word recession they turn to dollar stores first. when they do, they buy the general. third, we know -- well, we think breaking up is easy and smart for corporations to do. we're going to hear from covidien, a fantastic breakup beneficiary in a moment. we need another breakup play, one that sells indispensable products and gives us a better-year-old. in other words, we need abbott labs. one of the fastest growing big pharma names up there. it's not easy to understand, so it's fantastic that the management is splitting the company into a branded drug business and diversified medical products. it sells everything from nutritionals to diagnostic products. the pharma division can stand on its own facing fewer big patent expirations than the competition and the medical products deserve to be in a different company. the drugs take forever to be approved. this is about creating two stocks that deal to a different constituent of money managers. you can get a nice

tjx, fractional gains, but on a down day that is a big move. beaten down energy napes like chesapeake are finding a little today. it is up 1.7%. maybe a little extension on that news from lobes third point having goten into the stock this week. and staples among the best performers, tobacco up fractionally, and the health care reits that were the best in the second quarter, and with that decision coming out of the supreme court on health reform law, they're seen as some of the winners. >> we have seen some money flows into health care. >> one of our best numbers crunchers used to work here and he is back just sending us an e-mail to point out apple is up 3% this week. but the nasdaq 100 of which apple is a huge weighting is down this week, so technology has suffered overall, but apple is higher this week, an interesting dichotomy that doesn't always happen. >> it's a huge weighting, it's 18% of the nasdaq 100, and you still have no impact today. a short break and more to come, the dow jones down about 154 points right now. >> don't go away, the

i have a question about the company is tjx, companies inc. >> they pack terrifically. the european equivalent of a dollar store. their european numbers are great. i want to go to todd in georgia. todd? >> caller: boo-yah from hot and humid go. >> doesn't matter, that's still the best boo-yah of the day. what's going on? >> caller: looking at universal health services, ticker symbol uhs. looks like a company with great management that may benefit from the recent supreme court ruling. >> you got horse sense. that's a key across your base company. doesn't get much better than that. ku that company is well run. and that, ladies and gentlemen, is the conclusion of the lightning round! >> the lightning round is sponsored by td ameritrade. like in a special ops mission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering web-based trading pla

tjx and ross store continues their strong sales.imited thanks the victoria's secret angels for another strong month. 30 straight month sales of 37% or higher. june comps are higher. back to school just weeks away. >> retailers complaining about the timing of july fourth. huh? >> i know. >> usually on july fourth, right? >> but the way they count the days for the month -- >> yeah. >> i know. i know it sounds silly. >> a little. let's get stacy's thought on this. were the numbers really as weak as they sound? >> there's question that things are decelerating. and, you know, two thirds of the retailers reporting today did miss. not a huge amount and certainly ones that missed like kohl's and expectations were low and gap was okay here. the question is how propotional were they? the international business is a big of a wreck. i have been over in london and gap is running 75% off sales right now so not a surprise here. >> target, even costco which is really a very successful franchise, obviously, they came in a little bit weaker but the l

. >> still in the off price retailers and like tjx a lot. i sound like a broken record. the company raised guidance to 16 to 18% growth and the stock is trading 15 times. i still don't think it is that stretched. that said, we have been nibling and taking money off the table on this one and that's why we put money into nike where the expectations and the sentiment has gotten to negative. >> you sound sensitive there on the european tourists. >> no, no. i know josh has been doing a lot of shopping in tj max and he says it is awfully busy in there a lot of times. >> i will take the other side of the trade. i would not be anywhere near high end anything. if you look at demand from china and europe and all of that, it is obvious. the other thing that's not so obvious, look at the walmarts of the world and the discount retailers. they're all at 52-week highs because that's what the consumer is doing. have you the fiscal cliff stuff that i think could turn into a nightmare for consumer discretionary sectors like specialty retailing and department stores, et cetera. >> what do

break out, patrick, it is worth noting that it is trading at a cheaper multiple than walmart, than tjx all of these invest or favorites. at this point do you see a rotation happening within the sector? >> maybe a little bit, melissa. i think that target is around 12 times my 2013 estimate and some of those are trading in the high teens or close to 20 times in the case of the dollar stores, so i think the stock is under valued at. i have a $69 price target which is 14 times my 2013 eps estimate of close to $5, so, yeah, i think there is room to run here still for target and i think it is going to get more attention as we move forward into the back half of the year. >> hard not to note that j.c. penney is down again and what to extent are they a beneficiary? >> i think there is some benefit. there is not -- there is not a great deal of merchandise overlap in the apparel area. i think the bigger benefit to what's going on with penny he is ais flowing to macy's and maybe to series and more to kohl's in the back half of the year. i was at company headquarters yesterday with executive manage