vf corp is spinning off this stuff. it's going away. and that's going to happen early next year, precisely because they don't want to be in the denim business anymore and want to break away from the ole image. vf corp's direct to consumer business is booming, fueled by a red hot digital division that grew by 48%. we love it when apparel makers cut out the middleman. the margins are much higher than when they sell it to a department store if you're thinking those numbers sound good and scratching your head about why the heck vf corp's stock plummeted friday, i do not blame you one of the mysteries of our business, so confusing and drives people away the darn thing opened down 3% and got worse as the session went on finishing down 10.7% someone wanted this real bad a few weeks ago it was a $93 stock. now 77 so what went wrong first and foremost they were a victim of great expectations as deutsche bank titled their note after the strong quarter and i love this, strong gains advance but investors were looking for more, end quote. second, pl

the transformation will really start to kick in early next year which is why i think vf corp makes souch sense at the beginning of the fourth quarter. i know it's run a lot but changing the stripes in a positive direction number five finally is nike. until last week's big sell-off, they had been on fire. the reason they figured out how to fend off under armour and aski das by rolling out new products and selling them personalizing them even directly to the consumer. business is booming. i like nike's last quarter but the stock has pulled back 5% since then because of the overall market turmoil. i think the dip is worth buying. one more thing it doesn't show up in the power rankings ald at all, but we find out that bill ackman is taking a big position at starbucks i think it would be a mistake to chase -- after the announcement, but they're a well-run company i think it will have a good fourth quarter but that means you have to look through the uneven third quarter the bottom line -- if you want exposure to the consumer discretionary space going into the end of the year, this is if you

vf corp. all posted earnings beats. fourth quarter estimates raised but all trading down since the reports. tat's going on? the market is tryifigure out if the positive outweigh the nchgts right now and some are worried the positive momentum from the tax cuts are wains a bit. rememb what the stock market has been rice on on higher revenues tax cuts and partially redu regulations. but new headwinds have emerged inhe last several months tariffs higher rates, higher commodity costs and now country specific issues c weighcerns over china slowing be italian policy andaudi arabia which is important since saudi arabia is a major investor in technology funds. goldman sas noted that 56% of companies beating easterning expectations a of friday's closed underperformed the s&p. normally we would see outperformance ofr than 1%. not happening. so far companies that are missed on earnings underperformed the s&py 3%. that's worse than the historic averages. what do we make ofar thet when those that do well un

. >>> the denim business is fading at vf corp. that's where we begin the market focus. the owner of wrangler and lee jeans issued a bleak forecast for the june business and reported slow sales at outdoor bronzed including continual berland. that offset quarterly results that were stronger than expected.e stock tumbled 10%. the s.e.c. has oepd an investigation no honeywell kpt account be .company said it's cooperate processing. orted better ey r than expected earnings in the recent quarter but warned the ongoing trade war between the u.s. and china will pressure margins in 2019 potentially costing it hundreds of millions of dollars. the stock fell 1% to 153.47. >>> trade concerns have apparently eased at kansas city southern. the railroad operator said today it supports the reworked trade agreement between the u.s., canadand mexico. and added that steel and aluminum tariffs need to be worked through as the ceo put it. the company also repted a 30% increase in profit for the most recent quarter. shares rose more than 3% to 106.12 today. andst not often a ceo belittle wall

>> vf is the play. rich in new york. >> caller: greetings and a big booyah from long island. >> good to have you. >> caller: thank you for all you do for us. approaching 60-years old and plan to retire solid dividend company, my strategy is to dollar cost average in and then one of my newer holdings is khc kraft heinz. >> i prefer verizon. got better growth than kraft heinz. i have to disagree with that pick jim in new york. >> caller: booyah. from rochester, new york. >> okay. >> caller: thank you for what you do for individual investors. your opinion if i should buy, hold, or sell. the stock i am interested in is crane. >> that is a terrific company. no flies on it i like crane and let's go to sulliman in new york. >> caller: booyah, cramer. my question is rbs royal bank of scotland they are terrible. no, we are not touching that one. it is a fail to deliver, fail to deliver situation. i need to go to john in california >> caller: booyah, jim haven't talked to you in a while. we love you out here. >>

last but not least vf corp doubling down on high growth brands like vans especially the luxury related ones have hit a wall in part because of worry of trade ba barriers and the numbers can't be as good as they were next year after a week of seemingly endless selling including today, it cowl be volatility selling. acknowledging nation weakness in the system let's go to naveen in texas. >> caller: my question, what are your thoughts on new tannic in the longer room snoo thank you for that question, it was up very big today there is a host of rumors that drove this stock down. it is still a $7 billion company and still losing numbers it is up three today and i say that it is a great company and doing well but for the long-term, please. tom in new york. >> caller: ba-ba-booyah. thanks for taking my call and taking a photo with me on wall street. >> always will it takes just as much energy to be kind as it is to be mean. bring it on. what's going on? >> caller: my question is bristol meyers we are coming up on earnings on the 25th of october. we had a bad news coming out today regarding th

you're seeing vans out in front, which is vf corp there's some opportunity to pick up a few names there> in terms of the retailers themselves, the amazon threat has been large in recent years has that been shaken off what are the main beneficiaries of the fight back? >> it's interesting. last year and the year before it was like amazon owned everybody. everybody would lose, but in the last couple of years walmart and target have been investing and fighting back. target announced they'll do two-day shipping for free with no threshold that's a game changer. >> can they afford it, though? is that a margin issue for them? >> it will hurt margins a bit. i think the street expects that but the big deal is they're drawing the consumer back and pulling back in fashion as amazon pushes the pedal in that sector they're winning that back with their private label business >> whether it's target or walmart, can they all keep up with amazon's wage increases >> it's so interesting there are clearly labor shortages. so kohl's started hiring in june, but so far target said they're hiring 20% more this y

brands like supreme, privately held today, or vf, those are brands that are on the rise. >> erin, theyp on amazon biggest surprise out of the survey, if you swapped out, said this was 45-year-old soccer moms, i would believe it they seem just like the rest of us >> yeah. it's interesting i think there are some nuances between thinking about a gen-x versus gen-z we are seeing broader dem -- demock kraitization. multiple segments of the population embrace that. amazon, you're right to mention that 47% of teens say it is their favorite website the second one is nike that's at 5% so it is head and shoulders above other websites out there >> that's amazing. erin, is there a way to look at across categories any particular brand that either fell the most or rose the most year on year? >> yeah. the brand that rose the most year on year was vance never saw a brand rise this fast other brands that we saw pick up, crocs, it is a brand, may make you laugh, but a brand that used to rank between 20 and 30 among teens, now number 13 among teens for footwear they're doing something different. and in t

. >> they co-existed with cbs all access awhile, disney is coming online yesterday at the vf summit,ed out their plans at what point does that competition hit a tipping point? >> what we -- netflix to their credit saw this coming i was at a tipping point actually a couple years ago when netflix started to spend more money on original content. you think of the sequence. three years ago, fox and disney start taking content away from netflix. the fact that time warner wants to do their own service, that could be a hit to licensing fees what happened was netflix had to double down on content spending. they had to borrow money to grow the content spending to us, with the markets reacting to today's realization that probably you will have more investment spending and less licensed programming, licensed programming is not why people sign up for netflix but it is a cheap filler for consumption if you like to watch "friends" or "the office" will those shows exist in a couple years time or do the owners take them back netflix will spend more money on original content that's my debate that's wh

people vf to realize that if we don't do something like that, u know, the state of florida will beteliz, what are you thinking when you're thinking about the governor's race between congressman desantis and the mayor of tallahassee, andrew gillum? >> the term that comes to me is fear. it's really a hostile environment where folks -- people don't feel comfortable taing to each oter because they're afraid of the differences in opinion might lead to something else. >> i kind of agree with what she said. people are afraid of one or the other. everybody's afraid of losing their rights, whether it' fs righ guns or their rights to a safe community. >> woodruff: tre how do you see the governor's race right now? >> well, i have to say, during the primaries, i did support mayor andrew gillum, and i have been actually still working to help support him. but once he won the nomination and then desantis came out withbhis commentut monkeying it up, i just think that line did not have to be crossed when you're talking about racism. it was racially pushed, but it just didn't need to happen. >> to the

liz: vf corp sounds like basic acme type of names, north face, vans, i wore my vans yesterday. popular. you say you get them all, almost like an etf of fashion names. >> it is and they're breaking themselves in two, if you like spineoffs this is what will happen with the company. slower growth and higher dividend part of the company will become a jeans company focus. then the more lifestyle brands like north face and vans will get spun off into another company. so you will get two companies, one high-flyers, one less, less so. liz: urban outfitters, experiencal great retailer. my kid loves to walk in there, hang out in the store. kim, great to talk to you. it is a busy day here. i want our folks to look at this number. the dow up 48. that is snapping of a two-day losing streak. the nasdaq falling for a third straight day. we were down more than 200 points for the dow jones industrials. what a comeback. >> remarkable turn around on wall street. dow pulling back on the lows of the day closing up near session highs. we were down as much as 230 points earlier on in the day. s&p 500

van's that's own by vf port the second favorite shoe brand gaining eight percentage points and its closest in years. van's also the third most popular top trend and for upper income female vans was the top shoe brand unseeding nike. crocks actually ranked at number 13 of a preferred shoe brand up from number 27 last year. it puts crock at the as a historical average. >> all the kids wear the crocks, i guess aging and so -- >> and also crocs. it doesn't have the old clogs you think about. >> that's right. >> good point. >> this is no joke. these teen surveys, this is a big one and its a pretty interesting indication especially if you overlay it with some of the stock performance. it tells you who's nailing the trends right now in retail. >> it really does. this survey i believe was one of the first to identify sort of this streetwear popularity and identify supreme. its gotten a couple of really big investments and it showed up in this survey before many other places and that's a recent example. that's not a publicly traded stock. it still goes to your point, sarah. >> favorite restaurant a

and we have to see if colorado can drill the only good is vf is moving its headquarter to denver.eal estate and boulder. >> of course, you did. >> the tech boom is shifting to boulder because it is cheaper. >> they exhausted austin and now they're moving >> yes, they are moving. p polares is up at four. >> that's what's happening >> polaris i thought it was a good quarter but maybe on the conference call they mention china in some way or form. it is incredible to me how negative these calls they all read the same don't worry about china. they have china? it is their north america volume up one verses up 13 a year ago >> that was like holy cow, they're playing like buffalo >> speaking of conference call we have the cleveland conference call >> oh, we did not get to that. >> it was during our show or after it >> that was something to read, was it >> someone spoke up. and wilfred maybe explaining to themdignify. you know he got that english accent >> his accent goes along way >> don't start adopting it >> what he calls that was the goldman analyst. >> dow is being led by intel and th

that's a mistake people do not understand >> vf corp. is getting rid of their jeeps? great opportunity and i think people are going to regret that they're going away right now >> jim, i did the story the other day and i want to come back to it which i forgot to not that i have much news to offer, i don't >> he's a contributor and he had a show on cnbc >> he's dynamite >> restaurants and casinos, caesar it is a tough one for him to pull off though. there may be certain shareholders, supportive of change of management there is fair to say and believed mr. furtido would do a good job managing the caesars property. a great deal of expectations among the caesars side of the board level that they'll be willing to get a deal done, two or three billion dollars dutch auction would follow if they did. i wanted to come back to it. >> i am glad you did >> it is early days. we'll update as we get it. >> there is been trouble of ipo. >> yes >> it does not have any debt in it >> that's always good. >> when you say key to the mark, i should have been fibrocated, because proctor is go

the company made they're not going anywhere or doing anything united rental and citigroup and csx and vforp. this is good news for the company and it is not. this is broader going on and broader concerns of individual earnings for these companies the debates very simple. do the positives out weigh the negatives or not remember the positives that we have seen earlier in the year. we had stocks rising on the strong economy and higher revenues and stocks rising on tax cuts and reduced regulations. all of this and what powered the stock market in the end of 2017 into the early part of 2018. thirn thir things are a little bit different now. we got head wings that are emerging and we got the tariffs and higher material cost and we have china slowing down. we have a lot on the geopolitical situation here is the question overall that we are dealing with how much real contagent right now? it is confine today the way alook i look at the market i don't see a lot of credit disruption which bothered me a lot. when i look at the spread down here of the big stocks spreads are still pretty tight i know