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

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 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

. >>> 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

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

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

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

company made they're not going anywhere or doing anything united rental and citigroup and csx and vf corpthis 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 peopl