Up 2. 4 in terms of cocktails. Comp sales. The estimate was 2. 2 . It is the beginning of the backtoschool season. We will see more from the press release in terms of the year forecast. Adjusted earnings per share for 60475 460475. That is a raise. A pretty good outlook for target. We are seeing shares spike in early trading. They are now up to a three quarters of a percent. Olivia thank you so much. Time now for this mornings top stories. Greeces third bailout has cleared a hurdle. The parliament overwhelmingly voted in favor of the package in germany. There are now 30,000 firefighters battling wildfires in the west. They are being assisted by 200 soldiers. Five states are battling 10 wildfires each. The worlds secondlargest homeimprovement chain. Lowes posted secondquarter profits. The rebound and home prices led to Consumer Spending more on their houses but that did not translate into robust sales. Do it model being imported into china will make gm the first detroit automaker to sell chinese made cars in the u. S. No sign of a settlement over tom bradys fourgame suspension battle. Story. The tom and his legal team are back in federal court today for a petering and the deflategate saga. The nfl said brady likely knew the patriots played with underinflated walls last season. The twotime m. V. P. Has denied all knowledge. Roger goodell chose to hear the appeal himself and upheld the original discipline. What is being argued now has nothing to do with bradys innocence. The judge will rule whether the nfl and Roger Goodell have authority to discipline brady as it did. There has been little progress in settlement talk. That means it will likely be up to the judge to settle the process that has already taken eight months. I has agreed to a nice but did ruling in todays testimony could be a major step to the decision. Cory those are your top headlines. Olivia lets get you started with the five things you need to know about this wednesday morning. Number one has to be the Federal Reserve releasing their latest minutes on their july meeting. They come out at 2 00 p. M. This evening. Watch out for any signal on discussions whether or not there is consensus that some of her is the right that september is the right time. We are joined by one of the many people in the building who has convinced you to care about this. I care because the fed is watching it. Doesnt it look like voting members of the event are getting on the same page for september. It will be unprecedented for the fed to embark on a right hiking cycle without giving advanced warning. That was one of the thing with the july meeting. They were very vague and did not signal that hikes were imminent. Let us remember that i think we get more information from the fed speaking from the next few weeks that todays minutes. At the time of the meeting, the dp. Still had not seen q2 g they did not know that quarter q1 had been modified or the chinese evaluation. There are a lot of things that have happened since the meeting. What with the number be that would change their mind and say we have to hike or we cannot hike . Carl i think they are watching for regular feedback from the currency moves. Over the first half of the year, the factory sector has been stagnant. You saw the new york empires survey at the start of the week showing a stick attraction. If that is followed through in the survey tomorrow or the other production surveys, that would bring real concern. Olivia what is some further improvement in the labor market . How does janet yellen measure some . Carl that was intentionally vague. We were about 200,000 the Unemployment Rate still. That is an indication that we are not there yet. They want to see one more remaining jobs report ahead of the september meeting. Olivia maybe some is a combination. Carl it shows we are moving in the right direction but are not quite there yet. There is not tremendous urgency to hike rates, but the fed feels obligated to get out of the zero bound now that the economy is not in crisis mode. The issue is to get off of zero and potentially signal the subsequent rate hikes will be slower. Cory we told you we would give you five things and that was just one. Olivia thank you so much. Oil hasmber two, tumbled more than 30 this year since its peak in june. Olivia what is incredible is the opec countries were pumping more oil than ever. Opec spokesperson said a production booth is important to meet the needs of a growing population. Slowing and big production coming out of iran. It has allowed opec to assert control over the markets. Olivia sticking with modities, they could give commodities, a 56 drop for glencore. China was a lot weaker than. Nyone had expected it doesnt matter they are a big producer because they have massive trading to offset production. Cory it worked the last quarter. When your biggest seller is oil, you have problems is coal. Nd oil, you will have problems watching global markets, the cello in emerging markets spread to europe, sending stocks that there lowereek this week. Destan has the valued valued their currency. Olivia we do not cover kazakhstan in up. W enough. We will cover norway because we have an exclusive this morning. They posted it a billiondollar losses in the secondquarter. That is the first of the decline of the year. Both of those influence different variants. Then there is the currency. We see the opportunity. Olivia we like to talk about negative yields and european sovereign debt. Guess who holds a lot of european sovereign bonds. Fund. Rwegian they are literally losing money. Cory fda has approved the boostled pink pill to a sex drive for women. Olivia why is this not female viagra . This quest to get a female sex phil or something comparable to what men have has been going on for years. Last night we got the news that the fda had approved this drug. T will be sold as addyi it is one of these drug names that can be a little bit of a mouthful. Yes. To some people this drug will have to be taken by women every single for a slight increase in the number of what they call satisfying sexual events. For votes having problems in their sex life, very little sex, this could be something meaningful for them. When people have worried about and what we hear criticism about is the drug comes with side effects. Fda has rejected it twice. There are a lot of questions here. Andalked to sex experts researchers saying is this really the drug we want to bring to market first . It is a first that, which is but it, may not be quite the robust effectiveness a lot of folks were looking for. Cory where the rejections based on side effects . When the fda looks at a drug, it is a balance of safety and side effects versus how good is this drug. When you bring a cancer drug to market, you are willing to tolerate potential side effects because the alternatives to that are substantial and not great. When you talk about a lifestyle drug or something not treating a lifethreatening condition, you are less likely. If you are taking alcohol, you cannot take this drug. There are issues with a Birth Control pill. Olivia if the drugs life or death, the fda will put up with that. Any chance this will be a big success . I do not would should think we should think about this like viagra. They will push this hard. They have an 18 months they before they do the ads. Get ready. They have to wait a while. There are a lot of restrictions in place on this drug initially to get a feel for how it works out in the real world. Olivia thank you very much for doing that story with a straight face. Just pointing out i appreciate that. Cory when the headline came out i was having dinner with some friends and we said this place would get busy and have an hour but it did not happen. As ceo will be with us at 11 00 this morning because it is a big story. Olivia did target hit the bullseye with Quarterly Results . What to look for ahead of the companys conference call. Olivia will come back to Market Makers. Many are anticipating target release. Us d mcgee joins Patrick Mcgee joins us on the phone. Is this enough for you to upgrade your rating on the stock from neutral to a buy . I could not say that. Quarter from a bottomline standpoint. Sales are right in line and went up 2. 4 . That was where i was and where the street was. It is pretty much where they were in the first quarter. They have tougher comparisons in the back half of the year which is something to keep in mind. In the first half of the year, they have been cycling the fallout from the systems breach in late 2013. It took a lot of very aggressive promotions in the Second Quarter of last year. They saw improvement this year in gross margin. It is a good story. I do not think it is a great story. Atxpect some moderation least in the top line in the back half of the year. It is certainly a different story than it was a year or two years ago. They had a gated operations dragging them down. Now they have a new ceo that has been there for a year now trying to focus on what is targets core . Is trying to get out of things target is not known for. Even pharmacy and getting out of that. Trying to get back to target 101 is the idea. Patrick said it would take time to tell. Certainly a different story than with the story last year. Olivia they are working with cvs. For the pharmacy. Olivia how are they doing with grocery . Patrick it has not been doing that will. They did not mention in the press release. They called out the signature categories they have been focused on more recently. Wellnessby, kids and grew three times faster than the company average. Grocery has been a weak spot. They put off fixing that business for the most part anyway. The improvement is expected to come next year. Shannon it can be interesting to see what they say on the call about measuring. Target has been trying to compete with walmart or kroger or a big Grocery Store to be a place to go every week to get groceries and that has not panned out. People are thinking them to focus more on not your big weekly grocery trip, but things you want to pick up on the way when you are in target for Something Else. I think people are expecting to see more organics and things geared to younger shoppers. Those things that you will not go to get your meat and produce but you may get things you like and enjoy. Cory those could have higher margin as well, yes . Patrick yes. Grocery overall is certainly lower margin than the signature categories i mentioned. I think they can shift the mix within grocery to more highermargin products. Have had macys and walmart and out target command. What is your take away on the now . Consumer and no patrick i think the consumer is healthier than a year ago and certainly more than two or three years ago. That has been unemployment is at a cycle low. Gas is down. There is more spending power. Consumers are spending differently, spending more on bigticket items. Durables, cars, and homes. More on smartphone bills and digital downloads. They are spending differently and have more power. Retail has been very mixed. We got that numbers at walmart yesterday morning. Very good numbers in the apparel space. Not so great at macys and colts last week. Pretty good out of target today. It has been mixed. The consumer has more spending capacity today. Cory interesting. Thank you very much. Opec keeps pumping. The strategy next. This is a great place to work. Not because they have yoga meetings and a juice bar. Because theyre getting comcast business internet. Comcast business offers convenient installation appointments that work around your schedule. And it takes done. About an hour. Get reliable internet thats up to five times faster than dsl from the phone company. Call 8005016000 to switch today. Perks are nice. But the best thing you can give your business is comcast business. Comcast business. Built for business. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Olivia welcome back to Market Makers. Julie it is time for futures in focus and we are taking a closer look at gold today. Valuations around the world have been good for gold. More than 3 d since reaching a low a few weeks ago. Fromng me now is rj chicago is filled from chicago. Phil from we have seen risk aversion take hold around the world. What happens now . Do you think that hangs around and continues to support gold . It is a tough call. You have that ou uncertain outlook in china. The devaluation could spread to other countries like vietnam. ,f you will look forward here we have inflation data that is expected to be muted. The will be a big impact today. A lot of people are gauging the level of hawkishness and whether or not a rate hike would come in september or would it be delayed to december. There is indication that there are dissenters that might single sees remain that might gold prices remain. It looks like september is back on the car, that break down to 1100 could be a move back down to 1080. Julie give in the wild card the fed continuing to be a big factor, how to use it yourself up in terms of trainin trading gold . Phillip you have to look at the ranges that are outlined here. On the cbi data, somebody might look at call options especially over the 1120 and 1080 level. You could strangle the market. Is the market breaks in either direction, you lift the other leg here. Once we do break out of some kind of range within the two guidelines, i think the move will indicate the next direction a lot higher or a lot lower. Julie Hedge Fund Managers have met short gold for the last several weeks. En does it make getting in or out of the gold market when you have that huge amount of sentiment working against it . Phillip when you look at guys like paulson cutting massive amounts of their exposure to gold, it does provide some kind of concern. Money managers have been short for the past few weeks here. They are smart money and right in the trend. What they are looking at is these problems we have had geopolitically and financially with greece and russia. Gold cannot rally on that kind of maneuver. The possibility of the fed raising rates they are playing a big wave down. There will be opportunities with some of these smaller developments like the fed minutes coming out. There is some money to be made with currency devaluations. Julie got it. Thank you. Appreciate it. Olivia time for a look at this mornings top stories. Target shares rising in the market right now. The posted secondquarter numbers that the estimates. Costs ando has cut focus more on the companys best categories such as apparel, home goods, and toys. Later today, the Federal Reserve releases minutes from last months policy makers meeting. We will see of december is the september is the right time to raise heigh rates. Adding more the fed because of inflation and the dollar going up hits both inflation and growth. With a domestic market that is solid, from the forecasting point of view, should be looking at that to push up inflation overtime so it is a close call. Olivia with reports of economists say the fed will raise rates next months meeting. We have breaking news. Let us go to vonnie quinn. Yearoveryear, core inflation is up but if you look at the monthtomonth numbers, a little bit of a deceleration. Increase of a 10th of 1 for cpi. In both of those cases, economists looking for a gain 2 . A little deceleration in inflation. That could be thanks to the stronger dollar or the price of food inflation. We look at market reaction. Treasuriesng unchanged. Olivia speculation the fed may wait longer. This slight slowdown in inflation will not be inflicted. Cory you do care. See . Olivia tom king made me and inflation are an inflation narrativnerd. We will be back with much more on Market Makers. You are looking at a beautiful wednesday, august 19 in london. Reboundedices slightly yesterday from sixyear lows. They have back in the red. Was driving the volatility in oil and why are we now seeing cheaper prices at the pump as a result . Now. E joined great to see you as always. Looks like oil is hanging out above 40 a barrel. Why do you think 65 to 70 is the new normal . This is really because i do not see the industry will put a at a 40 price. We believe in the next two or three years prices will or 70s o the 60s the high 60s or the low 70s. This is the sweet spot. Not Many Companies will survive 65 oil. Number that we a grab out of thin air. If you normalize oil prices over the oil 15 or 20 years, industry used to make money at 20. 15 years going for basic consumption for spending, oil. Nies used to have 20 going to see a lot of costsaving and cut costs and Capital Spending cut. We will see a lot of headcount reduction Going Forward and mergers and acquisition. The industry will consolidate and create much stronger Bigger Companies and will be more resilient to Lower Oil PricesGoing Forward. Cory when you look at the shale plays and the lifting costs, they are a big contributor to this in the states here. Is lifting costs are so much higher and other places. That is the reason, right . Why it is not as profitable. Fadel that is correct. Margins and cost dollars coming out of the ground it is not 95 oil or 35 oil. Aty will probably break even 50. We are going to see a lot more efficiencies in the system in the next six to 12 months. Mergers and acquisitions will squeeze additional cost. The supply side of oil services will have to lower their asking price for goods and services in order for them to Oil Companies stay in business. They depend on each other. Cory how much can they cut . They have pretty tight margins as well. Asian fee is not selling tom graves with a 60 margin. Technology is somewhat harder. Fadel you will be surprised how much more costs can be taken out of the system. The more layers they take out, the more they discover there are additional layers that can be taken out. I used to work for a company ,alled mobil oil 30 years ago were costs were cut, they bought 10 years ago and cut even more. Olivia what do you think is the cost per barrel for new production . Fadel depends where we are. In the middle east, because cash cost is betwe