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they take out ulta today on this violet thing what do you think? is the market overdoing -- you know, this knee jerk reaction we get every day it seems >> in some cases yes, that i believe home depot, the idea that home depot is going to be crippled because that all started with amazon, teaming up with sears i'm not concerned about that i'm concerned about the paint slowing down that was a problem, but the one -- when you look at ulta, bill, it's a good company, and they have a fantastic online business but you pay extremely high price for ulta if everybody -- everybody that amazon challenges. i read the piece today about how this violet gray might come in it goes lower. and that's what this is doing. it's making you pay less for costco, home depot, ulta beauty, macy's, nordstrom, it is a price to earnings multiplier depression and it's working against all of these guys >> there you have it always good to see you, jim, thank you. >> thank you, guys >> have a good show tonight. >> and there's much more of that jim interview tonight at 6:00 p.m. east

ulta did go up today on a downgrade. that's a very positive sign.ot jumping up and down for any retail, that's the problem dave in california, dave >> caller: boo-yah, jim. >> boo-yah >> caller: hi. i've had a position for quite a while are rdn. should i hold it si >> it's a very good company. i looked at elly may over the weekend and it made me feel nervous about the housing contracts. it's just not enough volume. let's go to luis in texas, luis. >> caller: hey, cramer, how are you doing? >> good, how about you >> caller: i'm all right, i'm all right. i'm looking to diversify my portfolio. i was looking into pattern energy and seeing what you think about them >> i don't know them that's an interesting company. holy cow interesting. i love high yield. let me do some work on it. let's go to dave in pennsylvania, dave >> caller: hey, jim, a great big boo-yah from pennsylvania for you. >> yes, keystoner, what's going on >> caller: hey, listen, i have a stock here, i want to know if the dividend will sustain. >> alliance is an inexpensive stock, even th

you don't like this idea >> i like it you talked about that for -- not ulta. >> ulta is coming down theyould do a deal with -- ulta has a lot of private brands i don't know i think kohl's is -- the world could be their oyster but they have to think big. they have to think big. >> let's get to bob pisani with the dow down this morning. good morning, bob. >> good morning. trouble from the banks this morning. sectors, energy modest start on the upside interest rate sensitive. reit, utilities slightly better on the idea of the ten-year being weaker banks moving down a little bit guys talked about goldman, bank of america the regional banks are starting to report. those are the ones i like, like comerica reported today. that's no trading. the big thing is long growth, interest income and noninterest income there's comerica down about 1% their guidance, their 2017 guidance take a look at this, average loan growth up 1%. they had talked about 1% to 2% good energy book this is okay but not great that's the primary reason it's down, mediocre loan growth very sensitive to the short end of the curv

ulta is part of this retail sense and gets an upgrid to buy from neutral at goldman.cut their target from 321 to 310 again. an example goldman believes where they can weather the phenomenon of amazon a name which hasn't been shrinking as much as gap has >> the stock faltered recently after this incredible run. >> this story about department stores starting to discount cosmetics. the stock had been rolling over. before that. but mostly that's been about, everyone looking at retail and how depressed the traditional mainstream retailers were and saying, well, how much of a premium can we sustain with ulta, ross stores, all the ones people were hiding in. it's interesting you get this call the market gave you an opportunity to pick this one up. the up trend or macro remains intact for the stock >> we have caplan making news on the tape brainerd and bullard saying the cpi inflation data is causing them to reassess the path of hikes. yellen yesterday talked to more about transitory nature of inflation and factors like wireless services that are distorting the overall number

ulta beauty. women like to shop for make up.ook for different colors, fragrances, real world, in person experience not so easy to replicate over the web. liz: it's a chain. they sell all kinds of cost metics. how has the stock performed over the past year? >> the past year has been good. over the past month since whole foods has been terrible down 20%. i think it's a great opportunity. liz: you say buy here. i like it when you come down and buy a stock not at top of the chart. >> it's a great opportunity. liz: i mentioned on occasion i've been known to lunch on a hershey bar. so what about that stock? is that sort of amazon resistant outside of apparel and retail? >> i'm glad you're a fan. really tough to ship one hershey bar through the mail. it is impulse type of item. somewhat resistent to some of the trends. you need people to go outside of their homes. chocolate that is not a category that sees private label competition. liz: very possible. finally google. we've been talking about how it might react in wake of reversal of n

the softness in the mass market like i think everyone else this is from last friday so downgrades ulta a little late this was an amazing call because no one knew about the softness in the mass market until he says it i was very surprised. >> what is it a result of? >> they didn't know. they're the number one partner of ultimately at a. when you hear them saying we're not sure but there's a lot of price competition and we're challenging backdrop the stores like macys were trying to generate the price come down but the thing that's shocking is this motion when you're on a call saying we all know it's horrible when we all thought it was good. so the conference call is the one you want to listen to. that's what is driving ultimately at a. number one partners they pointed out. it wasn't like they were trying to separate from ultimately at a. they were hanging on though. so what the hell is going on. >> it's a very interesting and very down beat conference call especially because they're not seeing it. >> they're not seeing the same weakness. >> they're not mass market higher end higher call

plus stores like ulta are luring customers with overall lower prices. that's making macy's and bloomingdale's lower prices. best deals on cosmetics right now. if you have a good cosmetic, you're willing to go far and wide. >> why do i know that? >> because you're an anchorman, a newsman and are required by your profession to wear makeup. >> it's being called black friday in july and you could get some of the best deals. >> people are excited about amazon prime. >> prime day is expanding to 30 hours in 13 countries. there are tens of thousands of deals. a new one every five minutes or so. for the first time, it's deploying the new prime air jet to deliver your orders faster. >> it forces its competitors to either act ahead of time or react once amazon does this. >> you'll need a prime membership for deals today. that costs 99 bucks a year. target, best buy, macy's and slashing prices without membership fees. >> to get the best deals, download the amazon app to notify you when a discount is about to go live. could spend all day on that stupid phone. i'm t

the pressure to reduce prices is coming from online stores such as amazon and sephora and ulta. it's making big department stores such as macy's and bloomingdale's drop prices. coming up on the "today" show, they'll have where the best deals on cosmetics are right now. >>> if you need a cup of coffee to get your d drinking. it can help you live longer. >> nearly 200,000 people were -- it was linked to reduced lis risk of dying from heart disease, cancer and other diseases. just one cup a day lowered the chance by 12%. bump it up to three cups and the risk drops to 18%. it didn't matter if the coffee was regular or decaf. >> they contain a lot of anti-oxidants. those are probably what have health benefits. >> after two, i have to switch to decaf. the benefits of coffee seem to be the same for men and women from many ethnic backgrounds. >> the coffee consumption can be incorporated into a healthy diet. that's the key. if you're one of those people who add coffee and creamer, that's not i way to do it. >> moderation in >> like a sometimes food. >> like ice cream. >> during all of t

off price has worked, ulta what's interesting is the companies that have worked in this process actuallyre investable because as people take some of the hatred the amazon fear and apply it elsewhere, the companies that have succeeded when going up against the amazon machine, become interesting so for us, off price is taking a nice sell-off, nice beating on this we're buyers there and ulta has a defensibility to it. >> that has been amazon proof at least for now. simeon thank you and michael, thanks to you as well. good conversation. >> speaking of big changes in industries volvo is going all-in on electric cars our phil lebeau joins us with more details on that. >> carl, this announcement is not a huge surprise given the fact that a couple months ago volvo's ceo said look we will be phasing out diesel and emphasizingelectrics more. now that they're committed to making a change starting in 2019, let's explain this to everybody. it's not that they're going to completely abandon building internal combustion engine vehicles it's all vehicles will be offered with either fully electric or hybr

department stores have been discounting their high-end cosmetics and effort to compete with chains like ultaro. shares fell yesterday but by less than today. declines are accelerating. oppenheimer came out today and said the weakness is a buying opportunity. however, it's not helping the shares at the moment. finally, chipotle shares rounding out our consumer names. down 2.2%. we have an analyst call as possible. oppenheimer analyst cautious on the shares, even with them in a bear market. he says you would need to see more changes at the chain and cds material risk to the streets estimate on this one as well. david: thank you. coming up, the head of the confirmation hearing tomorrow on president trump's nominee for fbi director, christopher wray, we heard from a former fbi assistant director. we will ask whether he thinks wray can stand up to the white house when a job requires, particularly in light of what happened to the former director. this is bloomberg. ♪ david: "bloomberg markets: the trump economy." i'm david westin. mr. hoskins now has the legal defense fund. welcome back to bloombe

according to the wall stre"wall journal," sephora and ulta are surging ahead, providing lucrative loyalty programs and a wide variety of choices aimed squarely at millennials. >> they don't just purchase products from one single brand. they like to mix and match. they get a lot of information on the internet. they see people on youtube or on instagram saying, this is the best product ever. and they'll run out and buy it. >> reporter: the focus on lifestyle is make-up sales shot up 11% to a whopping $8 billion this year and retail experts say the beauty price blowout is more than skin deep. >> we see amazon moving into other categories like food with the whole foods acquisition, we've seen it in fashion already. it's moving into beauty. and it's, you know, who knows what category is next but i think it's a much broader story. >> reporter: putting a new face on the price you pay at the checkout. >>> you know what? there is no way around it, folks. it is so hot outside. >> we're talking about 90 degree heat already. it's only 11:40, sheena. >> you need one of those little hats that has a fan

these products we think are all gonna be in ulta in a couple thousand stores across the country. how good this packaging looks. carolyn: came out amazing. lemonis: i mean, look at this. i mean, honestly, where is the old one at? i just want to see the difference. this is retailing for how much? carolyn: $18. lemonis: and how much was this one? carolyn: $22. lemonis: and what is the difference in cost? carolyn: there is none. it's the same item. lemonis: so look at what a difference packaging makes. and once we distribute this product, it's gonna be amazing. fantastic. i feel like we entirely changed the process. we've launched a new product. i feel like we're closer to the business today, and i think we've got over a big fear. carolyn: yeah. i feel like the weight is off. i have a purpose -- a new purpose without all of that baggage weighing me down. and i thank you. lemonis: carolyn seems honestly like a new person. she's moved forward, and you can tell this is a new day for her. but, most importantly, i left this place in way better shape than when i found it. i can see that it

and today four names in retails are catching a little bit of love ross stores, ulta, gap, and walmart. they are all part of our calls of the day upgraded tom lee, your thoughts on retail the beaten up, beleaguered sector making a little comeback. is it for real >> i think in the short-term, it makes a lot of sense for people to rethink retail. because it's like, it's almost like amazon has been poisonous for any stock in that sector it makes sense that not everybody is going to be, you know, a victim of amazon >> and amazon is only a tiny percentage of overall retail sales. i mean, we've got to remind ourselves of that. >> yeah, that's right. but on the flip side, i do think that there are some secular, you know, headwinds. part of it is demographics with millennials, but i think the other piece is, labor markets have gotten tight, and that's an industry that is so dependent on entry-level labor. and it does make you think that maybe long-term margins are structurally weaker. >> and i -- go ahead >> just to the point you're making about retail, is the comeback for real or not it's har

ulta salon up 5%. many retailers and supermarket companies have been under pressure. -- down 5%. everybody is looking to yellen and cpi report and earnings that kick off on friday with some banks stocks next week. melissa: great job, nicole. connell. connell: quick check on other markets. oil back above $45 a barrel, 45.07, ending up nearly 1 1/2% after u.s. agency lowered its forecast for crude output next year, did so by 1%. talk of possible production cuts in both libya and nigeria. melissa: kind of a deadline in our nation's capitol. senate republicans delaying an obvious recess and health care is not the only concern with the gop. >> we're getting zero cooperation on the personnel part of the senate as portfolio which is confirming nominations. therefore we will be in session the first two weeks of august that we had originally anticipated not being here. we will be here. >> the problem the republicans are having with health care is not time, it is substance of the bill. they can spend two more weeks, two more months, two years, as long as this bill continues to cut taxes on

the makeup areas will look more like sephora and ulta.model rocks. >> thank you. >> we can go to modell's. >> got to go to mo's. >>> al, you have a check of the weather, i hear. >> i do. >> go for it. let's see you what's happening. we are looking at show iers makg their way through the southwest. and stronger storms from the great lakes all the way to western new york and western pennsylvania. we have a risk today for strong storms. 33 million people at risk from grand island to green bay, p peoria to cleveland. isolated thunderstorms for chicago and michigan. and 19 million people at risk from terra haut, to cleveland, and pittsburgh. damaging winds and rain. >>> good morning, everybody. i'm meteorologist chuck bell. partly to mostly cloudy around the metro area right now. still a few shading showers moving towards the hagerstown area, most will fall apart before it gets to our area. be prepared, there could be a stray shower or thunderstorm. the heat already, 83 degrees in washington, it will be up near 95 today. heat indexes today clo

the makeup areas will look more like sephora and ulta.del rocks. >> thank you. >> we can go to modell's. >> got to go to mo's. >>> al, you have a check of the weather, i hear. >> i do. >> go for it. let's see you what's happening. we are looking at show iers makg their way through the southwest. and stronger storms from the great lakes all the way to western new york and western pennsylvania. we have a risk today for strong storms. 33 million people at risk from grand island to green bay, p peoria to cleveland. isolated thunderstorms for chicago and michigan. and 19 million people at risk from terra haut, to cleveland, and pittsburgh. damaging winds and rain. afternoon thunder develops through the gulf. we're going to have oppressive heat and humidity in the northeast and mid-atlantic states. monsoonal moisture causi floodingng p >>> good morning. meteorologist bill henley. steamy day ahead. high humidity make it feel like middle to upper 90s for philadelphia. 92 the high. chance of late day showers and thunderstorms. philadelphia, new je

shed moment for retail industry >> yeah, we have been talking about the you can access of you will ultahora. the beauty is the department stores have not soared along brands successes the department stores have out dated and lower mall and store traffic and will almost everything else in department stores is discounted cosmetics have an off limits, at least until now. >> macy's ceo says kos mcosmetis under more direct. it is working on expanding its cosmetics area now jc penney ten years partnership with sephora is bigger one and it says it is not going to start discounting cosmetics. sephora and you wiulta don't o s discounts. they have powerful loyalty programs without pushy seawalls associate. . >> thank you, courtney >> lets bring in our chairman of blooming dales >> michael, let me ask you, do you think this is a smart move or department stores are throwing a hail mary here >> this is not something that's new without throwing any stones, i think probably it is about five years now so i think it is been on the radar screen for a while we are not wrong mr. goldman and having gotten c

general merchandise up.4%, remember ulta around sephora. >> you could have driven home from virginia.> i know but i was so tired i would have been a danger to everyone on the road it's better for everyone else i just sat at the airport. >> courtney, good to have you back are companies like amazon killing wages and jobs one noted wall street analyst says yes but one of our next guests says no stop blaming tech, borots and out mission. who's right? who's wrong? we'll debate it. >> >>> hi, everybody, i'm sue herera, here's your update this hour house democratic leader nancy pelosi alleging the trump campaign eagerly intended to collude with russia and may have broken campaign laws she added that white house adviser jared kushner must lose his security clearance. >> i also for the revoking of the security clearance for jared kushner. it's absolutely ridiculous that he should have that clearance. >> the lawyer for betty shelby, a white oklahoma police officer recently acquitted of fatally shooting an unarmed black man has submitted her resignation from the police force. shelby had been wor

. >> third class, ululta, ignore e fears and buy ulta believering in the stock's loyalty brand access driving traffic. their competitive mode for the company, a recent pull back of 336. >>> yeah, final stock of the day is icon plc of 126, from 93 to say iclr accelerating revenue growth and recovering fee business and a recent streak of shared games icon demonstrates the ability to control cost and sustaining and lowering tax rate. mid teen eps growth of comfortable. going british. >> yeah >> avs on "street talk." >> american depository share >> the sond urecho of power will begin in two-minutes and 47. for your heart... your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember. i enjoy the fresher things in life. fresh towels. fresh soaps. and of course, tripadvisor's freshest, lowest prices. so if you're anything like me... ...you'll want to check tripad

not unlike macy's going to announce a loyalty program david, panera bread and ulta are the two loyaltyrograms everybody talks about and you have to do those in order to defeat whom? >> amazon. >> today best buy's down, rumors amazon is developing its own geek squad it never ends. it never ends. >> no, it doesn't. not until they finally -- not until you get some sort of antitrust action >> remember i said they could do that, but most likely be against walmart for telling people if you don't switch your data center away from amazon, we're going to come after you. and that is not -- you can't do that >> that's a hard one to do >> but best buy, which had been holding up so well, why, because they had the ability to install and amazon didn't. the idea that bezos over the weekend said to someone, hey, how about a geek squad stock's down 3 it works like that now >> can imagine it would be a real threat. >> look at the dollar stores, they can't get out of their way because amazon prime and reasonable, the pricing, it is just amazing >> and the logistics getting it the same day is the key. >> s

walmart, ulta getting an upgrade from goldman sachs from neutral to buy.nds. it will be all about the banks, inflation, and the fed, going forward. david: the big news was the cpi numbers. if the fed was looking for inflation in june to turn things around, it did not get it. this was the focus of janet yellen's testimony earlier this week. earlier in the program, we spoke with robert kaplan. he gave us his thoughts on the subject. robert: march was week, april and may were stronger. i believe strongly some of this is transitory, meaning there are some one-time factors in the march numbers but i think some of it is not transitory. have the did not latest cpi numbers when talking about the prior months, in fairness to him. joining us now is david lefkowitz. he is joining us from new york. ira jersey is here as well. he is in princeton. ira, i will start with you, our rate strategist. this is the fourth month where inflation numbers have been softening. it will be hard for the federal reserve to be more hawkish. the markets are not even pricing half a rate hi