tjx. right. it's up 2%. target which is up 15%, not because it's attracting people as you point out. traffic's down. but because they're managing their business better. kind of interesting, right. >> it's c expectations. target is less bad. tjx has been blowing away numbers every quarter. the stock has held up incredibly well compared to most other stocks and target is down 30% year-to-date before this report. so it's all about where you come from i think. maria: would you buy walmart before the quarter? >> i think you can still own walmart here. you can, because of this. so costs are coming down, transportation costs are coming down if there's no more food inflation it moderates, walmart is the only one that can you truly pass on costs, particularly when their costs are coming in so they can pass it onto the customer. they bring in the traffic. they're in a unique position to just outperform everybody else, particularly in those necessities. maria: and they're taking market share from others so we're going

we own tjx, as well. i think the consumer, on the discretionary side, the big purchases, that's still going to be under a lot of pressure >> one of the things that we have to go back to the cpi, it's not great for walmart. if you think about cpi, 2.1 for food and home, up 5.4 for restaurants. restaurants are doing better i think that the food inflation story, it was so last year, and i think there's no question that walmart does better in that environment. there's no question walmart beats on price, it gets people into the stores, but as soon that's long walmart, not as long as i was and slowly been -- i would say trading out of the position, i think it's such a good story, it's been such a good story, but i think the bar's very high for tomorrow's numbers. >> if the guidance is decent for the holiday quarter, why aren't we willing to say that the consumer is doing okay, target plus walmart you're getting deciiscretionary plus nondiscretionary. >> well, go back to tjx. they chose conservative guidance thi

i'm going to compare this, by the way, compare it to tjx, and my travel trust owns tjx it's been onef the biggest winners, but it always goes down when it reports. >> you said people are sick of these names going higher >> there's ennui there's magnificent seven ennui, which added the value of l luxembourg >> to $200 billion sounds way low. i bet you somebody did bad math. >> they must have intel in there and they took out nvidia >> i'm going to check those numbers. but back to tjx and target i mean, tjx is twice the size of target, market cap-wise, such a big company, quiet company we don't talk about it as often >> they're the least promotional. i gave up asking them to come on i ask anyone to come on. literally, i beg >> they had a beat and a raise home goods sales were good very different in some ways than target their traffic is very strong >> they always give you a couple pennies light when they give the forecast this is a stair-step stock and i have found that's so hard to own for the travel trust because every time you get to the earnings, the stock is going up into it. they

was up 7% in target down 4, tjx killing with it traffic all traffic, definitely winners, losers intoct we have to grow units there are the retailers doing that certainly retailers won't be able to do that. >> joe? look from macro level maria what does this mean for 2024? we heard falls saying usually election years it is correct, the economy usually does better, the question is does that translate into joe biden's overall approval on the economy where languishing in 30s people still think inflation is too high wages aren't keeping up with it the way they should hasn't last three years or so, does joe biden get political capital out of positive reports, in '24 if economy does improve or has impression been set he is not person to stewarded this country and donald trump or republican nominee is the person. >> you are looking at inflation data macrostory on retail how do you see it. >> i will make two comments on inflation first of all it was lower than expected, for second day in a row that is a big deal why stocks up a lot yesterday why stocks are up again today. that is point number

and that's the difference between tjx and target tjx, you're going to tj max and marshal's. at home goods, they are taking market share from bed, bath, and beyond the traffic numbers on all these stores has been very positive and expected to continue to be positive, despite the fact that the overall outlook for consumption over the next quarter is still expected to continue to decline. this is a company that continues to get more than its fair share of traffic you know, the valuation reflects it it's over 30 times earnings. so this is one you're playing for. however, the outlook is still expected to have positive growth next year. that's a big deal. >> it is i'm sensing some cautious optimism on your part. gina, thank you so much. >>> coming up, amazon is teaming up with yet another social media company as it try toss get back in front of young shoppers those details and whether it can help legacy cisoal media names deal with ad woes, that's next in the u.s. we see millions of cyber threats each year. that rate is increasing as more and more businesses move to the cloud. - s

amber: tjx. there doing a great job to bring in goods. -- they are a traffic destination. you look at ozempic or the -- prescriptions. will people get less food? when i spoke to the ceo of pepsi he basically said poppycock. he does not buy it very but if you like if i get on it i will not buy as many fritos or drink as much coke. amber: it's a small percentage but it is something recognized. there will be other they will buy. guess what you need? if you lose weight you need more clothing. that is one of the off what it could look like. amber: thank you for that perspective. that is dana tell see with chelsea group. we take a break and when we come back president joe biden is about to deliver remark at the apec ceo summit in san francisco. we take you live there as speaks. next. this is bloomberg. ♪ >> as you know i concluded several hours of meeting with president xi and it is one of the most instructive productive meetings we've had. a started meeting with him over 10 years ago. our meetings have always been straightforward. today it builds on the groundwork that we have

target, tjx, walmart, macy's, and gap following close behind. they're not the only reads we get on the consumer this week. cpi and retail sales on deck. but a new report suggests the consumer may not be as strong as previously thought. the just launched real-time retail monitor distributed by cnbc in conjunction with the national retail federation and affinity solutions shows spending x autos and gas dropping nearly .1% in october and has been decelerating for months. so, from wall street to main street, what should we expect this week to show us here, guy? >> what we've seen all along, i think. certain places, walmart's going to continue to do well, i think target will struggle. the wild card will be home depot tomorrow. you go back to the last quarter. inventories, they got themselves back in line. they were down 10.5%, 11% year over year, which suggested margins should be good, and this 280 level-ish has been the lower end of a range we've been in for quite some time. i think you play it for the long side. i'll get fast fired if i'm wrong. bu

tjx had a habit of issuing conservative guides and knocking it down. you have to buy the selloff and that's what we are doing. ross went straight up. we don't know which with hank. what else? supporting abercrombie and fitch, they may need to jump ship. i will say like best buy, dick's sporting goods seems cheap to me. we thought something could happen to move this higher. something less than a disaster. i thinkings berg did a fabulous job before he took the coles job. the stock had a big move today with a big move in gap. remember when home depot was widely affected as a good pulse. the same goes for lowe's. we have housing stock numbers. one more reason why i like the stock of lowe's here. where is the elusive infrastructure money maybe jacob solutions could tell us. it's a terrific operator with a huge engineering structure. if anyone would know it's these guys. at one point, biden was tracking with ali baba, this week it did okay in the quarter. it was the cloud spinoff. i have to wonder if they were in the same boat or not. remember, i don't like

ross stores reports after the bell and after tjx, investors have higher expectations for ross they putund and sales expected to grow 3% and the off price concept has proven to buck the trends as this treasure hunt still seems to wrestle with shoppers ross shares up 6%. well out performing the xrt but not nearly the performance scott. >> we'll see you in o.t. courtney reagan. what's your takeaway thus far from consumer, whether it is the target numbers or maybe more interesting the commentary along with walmart talking about what the holidays might bring and then looking ahead to gap, ross, or anything else on your mind. >> there's a strong degree of complexity costco, dollar tree down today off of the walmart numbers ross store is going to have to come in with sales growth at 5%, not 3% they need 5% the expectations are so high if you're going to beat in retail, you're doing it with strong operational management. the consumer is not given the condition it's in right now is going to be cost conscious the consumer will not get you over the goal line. >> you have lulu >> i have lulu, tjx,

tjx comes in a little bit light and it gets punished. i wonder if this is pure confirmation bias, at the end of the day. the news is what you think it is going to be. >> i think we are also at a stage where fundamentals have kind of -- are at the back. they are not the most important thing driving markets. with such big moves in yields, this is still a very big driver. but if we go back to that narrative of good news and bad news, if we are actually seeing signs of weakening labor markets , cooling inflation, and all of this, obviously this raises the possibility of an economic slowdown. you could start asking whether a 70% upside affects that for the year. alix: -- guy: exactly. this is my question. do we need to see bad news in order for rates to be cut? and how does the market treat that bad news? is it bad news and therefore we should sell risk assets? or is it bad news the fed is going to cut and therefore we can buy risk assets? that is what people are trained to work their way through. >> i think this is something we have seen qui

i will save you and the commentary on tjx. i wanted the first word to be here and our viewers to hear from you first you laid this out yesterday going in that's the difference. stephanie is talking about the performance of a company andwh it could be beneficial for a stock. you used target as an example, see, the consumer is strong. >> that is not at all in any way, shape or form what they are saying >> so i'm not in the stock and i didn't listen to the conference call but i did read the news release and read the ceo's comments the way that caution is being reflected and this is directly from hits comments in the press release, he made an example of deny i am purchases. now they're waiting until the weather gets cold. >> they're waiting for deals >> okay, well, you know what, g goods has been occurring for quite some time. what i'm saying is the consumer has hung in there. let's not forget what october brought. it's not surprising the consumer might be hanging back. that was a positive number today, positive number >> i just t

if you want retail exposure, you want amazon, tjx, and walmart. i expect a strong number and the stock trades, the stock spikes big and then they come back. i don't know why that happens. we will be talking about cosco and tjx when jeff marx and i run the investment club meeting next week. it is all pretty organic. i recommend you listen in. if this sounds like shameless promotions, so what. i am working last night on this meeting. -- is palo alto. the stock has been held back by the poor performance of a company called ford that. a company that reported weaker earnings. i think palo alto is doing better than ford met. cisco reports this. this is a huge company that had a good quarter, i think cisco has a lot going for it. but, ford should be able to close on vn next week. the president is going to meet on this day and that i think we could get an olive branch that will allow these companies to merge. thursday, walmart reports and consumers have been shifted to their spending to wherever the, get the best. it is hard to meet the prices of walmart.

tjx is down. sales is declined in the process.rted in august, results were great. guidance rest of the year was optimal. this is a tough one. burling to ton's is the worst. maybe that makes it the best. i'd rather stick with tjx. tomorrow we hear from khol's. the department store sold itself last year when it had multiple take overs. the stocks come to around 30. for the past year and a half, it stuck most time between 20 and 30. couple to high teen this is year, wow, nasty. khol's is back to 24 and change riding a 17% gain from last year alone. it gives you almost 8% return. is that safe? yeah, sure. of course the department store is second challenge. maybe khol's could get a boost from kingsbory. maybe his efforts have taken root. stocks have some upside surprise. bars are hotter than say for target or gap. finally the last retailer going into earnings from point ofweakness is nordstrom. this is another name flying blind. my store was empty when i checked last week. last quarter included a huge bottom line. management is reitera

tjx with an out dperform rating.p frac fractionally right now. >>> and rbc giving home depot a $303 price target. rbc saying it likes the company long term, but adds factors present near-term challenges. shares are flat. >>> deutsche bank downgrading peloton to a hold. it is bullish on the stock, but there is a lack of clarity on the growth. shares are falling 4.5%. >>> time for the "global briefing." australia central bank raising rates there for the first time in five months to a 12-year high. this move coming in the wake of raising consumer data. we have a mixed picture in china with imports growing but 3%. the first gain sense february, but exporting dropping 6%. >>> in the video game sector, nintendo with better profits with the second quarter results as the video game maker is getting a bump from the mario movie and the zelda game. >>> ubs reporting the first quarterly loss since 2017 as it continues to work through the integration of credit suisse. we have joumanna bercetche in zurich and spoke with the bank's

next few days, and housing data on friday, and then home depot, target, tjx and walmart and macy's, and we have a deadline to pass a government spending bill so we don't have to shutdown the government over the weekend. >> yeah, we will see if we get a vote tomorrow. >>> let's get to the half. >> thank you so much. welcome to "halftime report." i am scott wapner. joining me, joe terranova, anastasia, steve weiss. as we look at the three majors ten-year note yield, holding steady, and nasdaq dipped just negative. dow is holding steady. steve weiss, i want to know where you think where the landscape is now, just given over the last week or so the up trend is reconfirmed. they say year end 4,825, and sk jpmorgan says it's bearish. >> yeah, sure you can make that case that technicals have gone from bearish to bullish, and i am not suggesting -- i have no idea what the numbers will be, and -- >> some are suggesting they will be good. >> sure. energy has come down, and that could be it, but technicals are a fleeting measure of strength in the market. if the cpi comes back strengthened -- >> l

caroline: look out for ross and tjx, what is the mix of in-store , i think tjx and going there in personery close quarter clothes. are people doing the online more and more? is that more of a walmart or target by? >> when it is the off-price stores, people are still going into those stores to search for value. when you talk about a woman or a target it is more of a combination of both online and in-store shopping. when we look at traffic of visits into the discount stores, although across all of retail traffic is down year-over-year, it is up to the discounters and that is based on data. there is a little confidence that these people who play in the value space or attracting those customers. caroline: interesting moves, macy is up by 3% over bloomingdale's and blue mercury and offering no more high-end luxury purchases going on at the macy's stores as well. they have had a big focus on investing in online and marketplace offerings in ai. will not be something we hear from everyone, this focus on data and ai? >> across retail, there is the course of the only channel experience, consumers

tjx will be a compounder. brands need a place to sell their product and tj is there with open arms.ost no e-commerce which is a great place to be if you don't want to worry about friends and family sales. within this group there are opportunities to trade because we have the sentiment swings. >> you mentioned peloton, it is no longer a mega cap. it's under $6 a share, now less than a $2 billion company, one of your best calls ever. you got negative on it before everyone else on the street, it was a $158 stock. is there value there at these levels? >> you and i have had so many interesting conversations. we upgraded the stock from sell a little bit ago, there is a real business, a real brand. even while we were negative, we were negative in terms of this was not one of the mega caps. it was -- not niche. that's not fair. it's better than that, but it's a category, it's a product people do love, the question is how many of them? the way that my team has viewed it is there's 3 million subscribers f. that dropped to 2, if there was no ability to raise pricing, i think that's a $5 stock.

about this yesterday on "closing bell" with courtney reagan there was concern certainly after what tjxsuch strong momentum. it's where right now a cost conscious consumer could go. this was a very strong report, a report that's indicating that cost conscious consumer is still directing their buying intentions towards off price it's lifted tjx a little and has lifted burlington which will report next week we own burlington as well. burlington is up about 5% today. >> this is really the middle income story we've talked about this, scott we see the high-income consumer. we've seen the low-income consumer under a lot of pressure we see that with dollar general this is an example of that tradedown and, to joe's point, probably has a little bit more momentum behind it from a longer-term perspective because consumers are continuing to feel that pressure, and i think they're benefiting maybe from some of the weakness that we might see in some other retailers in the holiday season. >> i like the momentum from this report now the ceo did note that some tough comeps going the stock hasn't done mu

no ross store and tjx benefited this year because the consumer is spending in a different place.re not spending on retail, they're spending on travel, on dining out and now burlington is participating in that strong tail wind and i think there's further upside for this stock. >> i hear what you're saying and, steph, i'll ask you to opine on this, too, too broad brush because it's not like all off or lower priced retailers are just knocking it out of the park i look at kohl's, would you put it in that category? >> no. >> what category would you put it in? >> in a rundown department store almost concept absolutely not >> you wouldn't put kohl's in off price or lower price >> they're going to become off price because they will lower price substantially. they don't have the shoppers >> they lowered the low end so that stock is lower whereas the one we're talking about now, burlington, raised the lower end but look at kohl's down near 9%. >> they don't have the brands that some of these off pricers have they don't have -- kohl's is overpricing, in my opinion, and will have to cut subs

stuart: profit margin went up big deal for that, tjx, what stores are in t.j. maxx, t.j. marshals you have so much microsoft you would be sto shopping the. i have to shop there, there saying this off-price demand that's what they call it is very steady right now with consumers there also bargain hunting in tjx, they lifted the annual forecast to. stuart: how much did big tech companies add to the value in yesterday's rally. >> $200 billion, microsoft included in their alphabet, amazon apple, meta, microsoft, nvidia and tesla now you add those together a little points trillion in market cap. they got a whole lot bigger. >> we were watching the markets together total tech rally. >> there with $11 trillion. stuart: excellent talk about youtube i understand are cracking down on a.i. generated videos i think that's a wonderful thing. >> what they basically say there has to be rules you can manipulate and make people say things that they did not say or look away that they did not look, there is a danger in that. there saying if you want to post you have to disclose that you use

ones that i particularly see that will do well are those like tjx.les and pull back our wallets we still want to shop, we still want to have that feeling of satisfaction, and tjx and discount stores are where we are going to migrate. also, we have ballistic -- the lipstick effect. estee lauder has seen challenges because of their focus on china, but i do see people floating back into beauty, because you can get high luxury items for 20, 30, maybe $100, versus going into clothing departments and paying four times that for the same feeling of luxury satisfaction. guy: apparently looking after your skin is important. people tell me on this show. do you think consumers expect that prices at some point will start coming down? there's a lot of talk at the moment about disinflation, but that is not deflation, it is just a slowing of the price rises. how do you think the consumer perceives inflation at the moment and is there an expectation of lower prices in the future? erin: we constantly deal with the recency bias, where we reflect on what we have seen in

you own costco, darden, lulu, ross and tjx. >> and burlington as well. they are in the bottom when i look at the 16 consumer discretionary names that we own the etf. when i look at the performance, the strength is coming in the names that we own from e-commerce, it's coming through travel, expedia, airbnb, marriott, booking holdings. it's not coming from these names. i respect and understand stephanie's view on target, what i'm trying to disseminate is why there's such weakness in target when there's such strength in walmart. i think that's a fundamental peculiarity that has to be uncovered. >> it's mixed. they have more consumables than target. target has more discretionary and that's been known for a long time. you've been right. i've been wrong. i think they will change their mix to more of a balance between consumables and discretionary and are doing a phenomenal job be in discretionary. they have that private label. >> are you talking about groceries? >> yes, exactly right. it's like 70% at walmart. 75% at walmart. only 40 to 45% at target. you're s

it's just the expectations heading into the numbers similar to tjx were very high. walmart's been executing very well. i agrew with what mark said earlier, i would be fading the macy's move and buying into the walmart move down on the numbers. maria: buy into the walmart move, even if inflation remains elevated, your the take on what we saw this week in terms of inflation numbers. >> yeah, so i think the market certainly overreacted to one tenth lower inflation number from a futures standpoint so i think the soft landing narrative that is taking hold is yet to be determined so i think walmart's a good kind of safe haven here. i get the fact the stock's trading down on elevated expectations. the guidance they're providing, positive medicine gel di -- mid single digit comps. target is picking up traffic from other retailers and it will benefit them in the long term. maria: when you look at areas in the economy that have been impacted by 11 rate hikes it's interest rate sensitive groups, like houses. the wall street journal is reporting housing inflation is the worst o

. >> and another one you like is, i think my wife's favorite store, home goods, which is owned by tjxyes, i know it's your wife's favorite it's mine, too yeah, i mean, this was a stellar report they beat in same-store sales, in revenues and earnings, a nice margin and tailwind as well. they cited lower overall macro inventory, so lower inventory, but they're still elevated tjx is going to benefit from the elevated inventories they have pricing power, they're doing good on both segments and the stock fell 4% on the day i felt that was silly. i'm just letting the dust settle this is a dream for the off-price retail sector, so you want to pick your spots within that group. >> looks like you did some nice holiday decorating over the weekend. i know what you were doing putting up that tree. >> home goods. >> stephanie, thank you. good to see you. >> thank you good to see you. >>> coming up, cruise control. the ceo of gm's taxi unit leaving. we'll get the details on this saga, including who is set to take control now when "power lunch" returns you can't buy great conversations or moments th

tjx on weakness. >> thank you for watching "fast money. mea do not go anywhere "mad money" th j cmewiimrar starts right now >>> my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now >> hey, i'm cramer welcome to "mad money. welcome to cramerica other people make friends. i'm just trying to make you a little money my job not just to entertain, but to educate and teach you so call me at 1-800-743-cnbc newsom or tweet me @jimcramer. after a giant rally, they're always predictable and yes, a little ridiculous. they're about buying stocks that were missed on day one or stocks of companies that just gave you a new reason to value them higher, and stocks upon further review, just like in a football game, can now be justified as worth owning that's what led hard today as dow jumped 164 points. s&p gained 1.6%. but the nasdaq yesterday advanced by just 0.7%. i think it's worth breaking down today's move because

let's start with tjx, which owns tj max, marshall's, home goods, you like them? >> i do.y, did great on every metric except for the fact that they said their current numbers in this quarter may be a little soft, but next year, they were looking really strong. they got punched down yesterday a bit to a place where i really like a buy for tjx as well. that discounter i believe is going to have a really strong beginning of next year. >> stuart: last one, linde, first of all, what do they do? >> they are an industrial gas and engineering company. they are an investing in the real world pick stuart. they are going to help us into the next phase of the economy by providing all the stuff we need, not just for chemical processes, but for electronics and all kinds of places where you need nitrogen or [inaudible] to be able to use a torch. they do a lot of stuff and help people make their own as well in remote places. >> stuart: okay. we will follow it. dr, thanks for joining us. switch your attention now to wall street. nasdaq big board about to start trading if my voice holds up.

here we go tjx is cheaper than ross stores. it's a better run company than ross stores.it. the head of a turkey i just think you buy tjx right here right now. >> how about tonight >> i'm doing a face-off with ben. [ inaudible ] about lynde versus air products and these are the two industrial gas companies of our era and they are deeply involved with hydrogen and climate change and which one is better. >> were you unnerved by industrial production yesterday? >> no. >> is that all autos >> all autos and the strike and why i thought the csx comments were so cogent i do think, by the way, that you're not going to build any more plants if you can get away with it, auto plants, in that area, in detroit i think shawn fain turned out to be the most powerful person. we look at capitalism in 2023, he's going to turn out to be the most powerful force of capitalism he took those -- he took the industry apart and turned it upside down. >> well the "times" yesterday top 1% owns 31% of u.s. wealth, the bottom 50% own 2.5% of u.s. wealth. >> well, i think that the czar owns a lot of wea

maxx, tjx i think is the symbol.lection among traditional retail winners. lisa: and from a broader macro perspective, how do you put this together to understand just how much more spending the consumer has in them? tom: program note, next week jon ferro, lisa abramowicz and tom keene, massive road trip. i may have to go below 59th street on this. apollo, looking forward to this. lisa, what is your number one question to the leadership? lisa: i'm curious going forward how they see honestly private market for private buyers really taking over for public markets in a new way and how much that is offered some of the rate shock that we otherwise would have experienced. tom: i want to know how deep the shadows are. important set of conversations. chief economist at apollo global management, he writes a piercing short note each morning and here he harkens back to the skeletons in the closet, the worries that those older have about it this time like 2019? is this like a nifty 50 or the point where polaroid and xerox were one

. >> no, that's not discount tjx. tjx always issues this guidance. it's a buzzkill. >> can we come back to a large market cap company here? just kidding lowe's is worth mentioning here as well. what's wrong >> marv ellison's own admission, the ceo, it's more do-it-yourself do-it-yourself is not doing it himself or herself home depot -- >> i have tried occasionally and given up that's the story of diy. >> it's not thumb tacks on a board. i think you have a reason to own this thing which i think that marv ellison has historically been able to pivot when things aren't right you have to wait for it to go down a little bit. by the way, walmart was the best one of all walmart was great. everyone looks back and says that's too great anf is walmart today anf is unbelievable but not enough it's where they came from, not where they're going to. >> we'll get to m&a and home depot on the diy space best buy is a big story. cramer's mad dash. take a look at the premarket we'll watch volume, of course, as we get closer to the thanksgingayvi d holiday right now futu

you expect >> i think everybody continues to temper expectations we saw decent beats with ross and tjx slowing sales in home improvement. you see lowe's and dick's and others reporting deere and cat are trending together the consumers spent well in q3. >> one pick is nvidia. it reports after the bell tomorrow dick's reports before the bell tomorrow why would you buy them today >> dick's had a lot of bad news priced in q2 they missed hard stock down 20% i think the bad news is fully priced in for them if you look at how they are transporting with 8% of the market now dsg is driving i'm expecting them to have a better handle of shrink. i think dick's is one that could surprise on the upside because of what we have seen on retail last week. i'm more positive on them. there is some underlining risk with the consumer being under pressure sporting goods has come up strong >> victoria greene, thank you >>> before we let you go, we want to look at futures as they are in the green, but fallen just a bit it looks like the dow would open up 15 points higher. we look at microsoft huge news over th

>> the way we are looking at it, i particularly like tjx.ently which moves us further. they will take advantage from a shopper and brand interest. it would be holiday if i wasn't buying scented candles. looking to bath and body works, that is the type of business that just reported earnings. it operating profit dollars grow for the first time in a long time and the stock lagged. i live those dichotomies. >> about different pockets investors should be avoided >> when i think about these businesses, we have now watched a bunch of the retail. we watched a few companies even i would talk about. now people are tracing. there is a question about figuring out intrinsic value versus focusing on the opportunity focused on momentum. that will be something we will look through. i think it is interesting. on the other hand you are seeing nordstrom rack and you are seeing revenues decline. on the other side of the spectrum are watching coach revenues grow. michael coors declined. >> that is why you get paid the big bucks. do you expect us to have a meani

. >>> today is when home depot kicks off for the sector home depot, target and walmart and tjx trying to firm up ahead of the reports >>> checking the bond market the ten-year yield peaked a few weeks ago. now we are down a bit as we wait for the cpi reading. two-year note is hovering at 5%. >>> in energy, oil prices tried to get traction after the recent slide. they are pretty much hanging around below the $80 mark >>> let's see how europe is shaping up with julianna tatelbaum in the london newsroom julianna >>> mike, good morning here in europe, we are trading higher to start the session. the only exception is the uk market ftse 100 is down .30%. it has been a busy 24 hours in uk politics. before "wex" kicked off yesterday, we got news that former prime minister david cameron is returning to the political scene in the uk. the conservative party has been polling poorly against the labour party outside of the uk, the dax is .30% higher .40% higher for the spanish and italian market today's trade comes after a 75-basis point gain for the benchmark yesterday. things have been positive h

amber: how did target lose its way relative to, say, walmart or tjx, both which have reached all-timeime when target is hitting multiyear lows? john: the inventory situation was a big part of it. all retailers went through a big buildup in inventory with the supply chain problems. some did better than others at working through them. i think target in that regard in the past over promised and under delivered. now you are seeing them actually work through those inventories steadily and that is what has restored optimism in the market for them. amber: thank you for your insight. bloomberg's john edwards joining us on target. we are going to take a quick break. when we come back, president biden and president xi jinping are about to meet. we will take you there live in san francisco. this is bloomberg. ♪ matt: this is "bloomberg markets". i am matt miller with amber kanwar. quick check on the markets. you see continued gains in the s&p. all major indexes are back on the rise. the nasdaq dipped into negative territory back in the green. i think it is interesting to see the big gain in bitc

tjx, that one is down 2.6% after warning this would fall short of estimates and the retailer with higherand of bargain hunters. tomorrow, macy's, and gap, they clarify the true picture. what do these reveal about the state of the consumer, the cio, jean goldman, both gave the same holiday outlook and it was anemic and was not pretty. most of the retail names, which side do you believe? >> we are optimistic about the markets, we are past the recession. now they are up 4% year over year, so we believe in the consumer and retailers. we are very optimistic right now. liz: wall street journal has an article today the earnings on wall street appear to be choppy for the current quarter and there isn't a lot of enthusiasm. >> we don't buy that. year over year profit margins are improving, the s&p last 11:45. 2 or 12.4%. the other thing is valuations, ratios around 19 and change. third-quarter up 2.2% year over year, inflation coming down. that's great news. last time i was on your show in august, we were cautious. liz: if i'm trying to catch lightning in a bottle for the outline you have given u

retail is in focus with earnings from home depot, target, tjx and walmart on tap.ch with the race to get a funding deal in washington ahead of the deadline the end of the week. president biden and president xi are set to meet in san francisco at the apec summit. plenty to digest this week. looking at the trading day and how it is shaping up, futures are negative to start the week. with more on the story, let's bring in greg branch at veritas financial group and cnbc contributor. greg, this is a scenario where the folks did not see the market rally the last two weeks. are there still legs in what has been a seasonably strong time for the markets? >> good morning, dom. averaging the seasonality, means we will look back and seeing these weeks as an omoly. we see the fed and others trying address and bring to our attention. notably, you have a fed out aggressively trying to counter a narrative that seems to be engendered by investors themselves. this is of the expectation of rate cuts. bostic and kashkari and jay powell himself and others come out and say and neel kash

walmart had that commentary this morning where we had tjx companies down 2.6% and there was a disappointments of the fourth quarter but walmart talking about this weaker consumer but they are cautious. target had similar commentary yesterday. because it was down 25%, shares outperforming going into their print up about 20% and investors taking some chips off the table. guy: it is amazing. these moves are in some ways hard to rationalize given what's being said and the divergence maybe not that great but the market reaction is great. let's get more on what we are seeing here. all joins us now. price target at macy's of 20, outperform rating on walmart. perfect person to talk to. can you explain the market reaction to me? is this about quarterly numbers or what these retailers are saying or is this about how investors are going into these quarterly numbers. oliver: in terms of how they are positioned has been a key factor. ironically the negative sales growth retailers, of stocks have gone up in the big story is better than fear. the multiple is quite important to notice. for walmart we are 22

tjx and ross are expected to be winners.following with lululemon and ralph lauren and abercrombie. >>> thank you. coming up on the show, more support and what beijing did to send stocks surging in the overnight action. >>> still ahead, some of the top trending stories. even love is too expensive. the wall street journal says higher prices for dating apps are causing people to turn to alternative methods in the search for love. yelp, strava, duolingo. >>> taylor swift impressing the richest people on earth. mark zuckerberg's every day routine includes learning taylor swift songs with his three daughters after taking them to the singer's eras tour this summer. >>> on the daily agenda, wearing the same outfit and eating 4,000 calories and training with mma fighters. we have much more on "worldwide exchange" after this break. perfectly located. an inspiration. and enough space to start an empire. loopnet. the most popular place to find a space. meet gold bond daily healing. a powerhouse lotion that moisturizes, heals, and smooth

full-year guidance was sales expected to fall 3 - 4% from the previous year we will hear from target and tjxursday, 3 billion in earnings from home depot, joined to me right now the atomic wealth advisor and president mark al capone, your reaction to the home depot quarter. >> the home depot quarter had a lot of similar stories that we've been hearing for the past few months that consumers had been on a binge to refurbish their homes and that is slowing just a bit. he also noted that people are moving as much in those create bigger tickets and what we have left embarking on smaller projects lower margins and enough activity to keep the report decent reflected of the economy. there is not a big spend boom by consumers who are hurt by higher rates and uncertain economy in the early spent out a lot of the covid savings it's a lot of the murky metal choppy economic data that i expect to continue into the into the year. >> the home depot quarter at first glance look like a good number because it was a b on revenue and earnings. when the company started talking about the guidance in the press rele

i think tjx, ross stores, burlington, that's where the consumers are going.be very company specification, but for years, abercrombie had been the winner, then a massive switch where american eagle became the mall teen winner for many, many years going. they had the bralettes, and other innovations going on now the strength is back with abercrombie? is this just fashion-specific or leadership specific? >> this is a meaningful one, with fran or or wits using the data of who the core customer is, transforming the stores, making outfits instead of just items. it really is catered to now a 25 to 40-year-old customer while holister gets the younger customer. it was transformed, nearly three to four years in the making, to do that, achieving an operating margin which would positivesed to be achieved three years from now. >>> that's impressive. look at the shares, up more than 200%. what would be the key for you between adecent season, versus a disaster of a season, and what happens come january? >> i think we're seeing promotions. you expect promotions. we're not ba

we are awaiting target earnings and we will also here from tjx later this morning walmart and makes hisshe financial strategist adam turnquist. great to see you thank you for being here i know you look at the technicals of the market, have the retail sector been doing anything in terms of technicals that you want to mentioned to us this morning. >> the retail sector is pretty underwhelming this year it's underwater when you compared to the s&p 500 however, there is a pulse that's on the technical term but we have a had new lows in the retail space i think it's a lobar especially when you see announcements from home depot yesterday they did narrow some of their guidance but the stock rally the driver of that is lower interest rates helping the environment so i think it's a lobar for the retailers coming into this quarter's earnings were getting get an additional uptick with retail sales on the economic calendar as well. i do think it's going to be a struggle when you look at the auto loan delinquencies, rising credit card debt so a risk of consumer slowdown but technically a little more

looking ahead to retail tomorrow, target, tjx, what do you think? how do you feel now? >> i'm always nervous with target it is down from 2021 and is below pre-covid levels they haven't executed consistently and that's totally a departure from prior years from the company i do think the expectations are low enough, you need a negative 5, negative 6. probably no worse than that. inventory is down double digits. i do think margins will be key operating margins at 4% would please the market so they're more profitable in a challenging environment. i think gross margins will go up substantially because freight costs are coming down substantially and inventories are coming down and they have better pricing power look, if it comes in below 6 and is down a lot, you're troughing but i'm not comfortable. i will not sleep well today. >> rob, let me come back to you. if you think this is a fed is done rally, everything is up today, right everything including tech having its best day. you have a new interday high for the xlk, the tech sector, all-time high. i'm reminded when david te

tjx did very well. i expect them to continue to do well dick's did better.rted bad results if you remember for the second quarter. the third quarter numbers were in positive territory. people have a little time and they're going out and doing activities with sports goods and costco continues to be a strong performer. value retailers by and large are continue continuing to do great. >> i don't know if you can talk about electronics, video games, toys and seasonal items coming up. >> we know electronics are not good best buy was down 7% they said it wu going to be slow for the rest of the year nvidia games are one of the categories that are up when you look at some of the core appliances, electronics, computers, things like that, they've not been doing well. toys did fantastic during the pandemic, now they've got the hangover they're not doing well they're negative for the year, and i expect that to continue. when kids were home, parents were home, they spent on toys like crazy now we're up against those numbers, and it's not going to look good. when we get to

. >> i'm not sure the confidence in names like target and tjx which warned about the holiday season,e is not resilient at all. but they just put out a survey am i want to let you know what it found, 70% of luxury consumers plan to spend the same or more, is it luxury spenders versus basic middle-of-the-road spenders where you see the griff? >> i certainly think it is obvious that higher levels of income, less impacted by what is happening in the economy, increased credit card rates. it is impacting moderate shoppers, going to moderate stores but i also think there will be an impact across the board. we are living in a complicated world, there's a lot going on in the middle east, a lot going on in eastern europe. we have an election year coming and people don't like uncertainty. we are planning 24 is going to be a year we are more conservative and going to keep an eye on the consumer and probably spending less on our own properties in terms of until we have a clearer picture what's going on. liz: but where is this disaster we keep hearing about in the commercial real estate sector? we

no one's better than tjx with those undercover guys, but david, i want you to go with me to two of mys and they're going to blow you away. you will not believe. the stuff, by the way, from bangladesh and honduras. it's like a united nations. and it's not that much china. that's what's really cool. david, their school supplies alone. >> school supplies. >> versus michaels? i would rather go to michaels for crafts, but not for anything else. >> interesting. >> everything else, i go to walmart. >> you guys should just do a doc where the two of you shop. >> aisle after aisle. >> i just follow him around. >> yeah. >> i'm like, can we leave, please? >> i'm not going to walmart. >> can we get out of here? >> walmart's all canned goods and canned string beans. the string beans are fresh as the day they were picked. >> you're sitting in the chair by the fitting room. >> every time. >> i remember walmart had giant things of malomars at the front counter. >> the 48 waist is finished. and even tyson foods is up. >> because of wegovy. yeah. it's done. >> no. it's just that -- he doesn't understand

we have a big week of retail earnings on deck, home depot, target, tjx, walmart, macy's reporting thirddow into the consumer which has been pretty strong. what are you expecting? >> i'm optimistic the on the consumer. walmart has been a standout, very good on the e-commerce side, grocery business continues to grow. stock is up 16% this i don't remember, beating out the s&p 500. you look at home depot specifically, what we s have really seen here -- we have seen a recession in the goods component of the economy, not the services sector of the economy over the course of the last year or so. home depot, their revenue is probably going to be down. you want to see has it bottomed, had has it gotten to the point where the consumer has gotten back. they've righted their ship with inventories. that's a problem a lot of people had, they had huge demand from everybody what in lockdown. they restocked too much and they had too much inventory he, trying to work it down. i think at some point you will see the goods component to the economy start to bottom. that's going to start to accelerate as well

and china retail sales along with target, tjx quarterly report card and thursday walmart, macy's and gap reveal their numbers but will in a matter by friday night, i hate to remind you but we are five days away from the u.s. government running out of money as the friday night deadline before shutdown looms let's get to the floor show help you prepare for, j.p. morgan asset management global market strategist and kenny polcari slate stones uber trader jack let me start with you how concerned with what is right ahead of us on friday night? >> we've been here before unfortunately and not too long ago we were dealing with the government shutdown to a managed to avoid for a little bit it's not a good way to govern as we heard earlier it's not something that were rooting for but when you compare the impact of the government shutdown to what may come later either this year or early next year with regard to breaching the debt ceiling this is small potatoes is not a good way to govern but for those individuals that are concerned about social security, medicare, those are still going to be com

also watching for earnings from target, tjx, and cisco systems also tracking the apec summit in san francisco and other business leaders meet with other top political leaders today. >>> and speaking of ceos, be sure to catch a cnbc's exclusive with microsoft's satya nadella ahead of the ignite conference this week. that's at 1:00 p.m. eastern time. >>> a busy day ahead let's see how futures are rallying the s&p up the russell up a very broad rally yesterday s&p looking to add on about a third of a percent dow jones up 100 at the moment for more on the tradesing day ahead, let's bring in tiffany mcghee, ceo and cio of pivotal adviser and she's a cnbc contributor. good morning yesterday was pretty much an all-in rally obviously a lot of parts of the market were pretty depressed coming into it 90% of all volume to the upside. it brings me to your word of the day because i have a feeling it's not about, you know, just throw a dart and buy whatever you hit. >> it isn't. so my word of the day is "selective." we watched the rally yesterday and how the s&p 500 in particular has performed since the st

with value, it's about tjx and the off-pricers. already delivered same store sales of 5%. they're getting the benefit of the trade down. >> it's not a matter with those names of the luxury consumer is holding up or the teen retailer is holding up. these brands are hitting the mark when it comes to fashion trends? >> what are they doing in terms of new because people don't want the same old same old. if you're getting same old, same old, you're competing to price. it's tough to compete on price especially when the consumer at the lower to middle. >> what do you think explains the structural blowups, the vp corps, the estee lauder, are they all execution stories? >> i think so. estee lauder is asia and china. you take a look at the vans. vans was a big contributor to vf. they didn't innovate. you have a new ceo in place and that needs to be top of mind. >> do you believe that inventory is net-net across the space a positive going into holiday? >> it is. inventory is clean. supply chains are normalized. you can chase into demand. keep in mind, the promotions that are out ther

the origin of that echo, companies begin warning aviles than festive holiday outlook, tjx and other among the names of the grinch's sack. recurring unemployment benefits applications, they came in at the highest in two years, it is totally understandable but does wall street know something, retail investor does not? high end retailers are getting hammered as investors sell. we have l bnh down, it was down earlier, tapestry down 3% tearing down 2 and a quarter to an 12:45%. what signs should investors be doing even if those are down the road. let's get to the floor show, you're on the floor of the stock exchange. let's not make a mountain out of a mole hill. this is not a significant selloff but if you believe these earnings outlooks is the milk in the fridge about to turn? >> if you go back three weeks, talking the same head winds in the markets than that, the same head winds will be here for the foreseeable future. interest rates fuel political issues, 2024 elections coming up, they will put more pressure on this market. in a short period, we like to see the market move will higher it mo

we'll also here from target and tjx tomorrow and then we've got walmart and macy's on thursday.know walmart is taking market share from the others in this environment but how would you assess the earnings period so far with regard to retail. >> i think home depot is a pee expect example. you have a double beat. you expect the stock price to go up immediately. it's coming down. when you read the guidance, you're seeing we see major headwinds facing the p consumer and with the higher cost of capital we are going to lower our expectation for 2024 and so people are saying okay -- and i agree that everything looks good as far as we can look at all these numbers and say yeah, looks great, we're probably done on the raises at least in the short term unless we get crazy economic data but the fact is, maria, we have so many headwinds. you know, there's the cost of capital, the interest, the fact that we have interest on our debt that is at 2020 levels when we were in pandemic spending. we have a systematic break and the consumer is out of financing. we have max of credit card debt. we ha