Crude prices ended the day by 1. 50. Wti is up against another 16 cents to 47. 48. Brent is down by three cents to 48. 95. Earnings just out now from home depot. The dow component posted a profit of 1. 44 a share was eight cents above expectations. Revenue also beat analysts forecasts. The company also raised its fouryear guidance to 6. 27 a share. Were going to dig through the report im digging. With an analyst at this point. The stock is looking really strong today. That should help the dow to some extent. Since it is in the dow. And i believe that is an alltime high. Alltime high for home depot. And youre talk about a market cap of closing in on 200 billion. And you know, we have still a young guy, energetic dude. Started in his lifetime i dont think he was in his 20s when he started either. To create how many thousands of jobs. Create 200 billion worth of shareholder value. Its just an amazing value. And craig meniere the chairman and ceo. Pleased with a strong expected growth. Broad base across the store. Also talks about how this was made possible in a quarter mark by weektoweek demand spikes. It was caused by weather. They were saying the weather playing into their favor. Were seeing a lot of weather builder recently. It keeps changing. Variable, cold. You know why its cold . Because its warm. A variable morning, so its cold. Can i just say one thing yesterday how many 20 years. I think theres 261 work days a year. Every show has a takeaway. A small one. Could be a word, could be a sentence. What was the takeaway . Overvalued. Everybody over the weekend said overvalued. Even though its a year later, you have all of this backing. It wasnt overvalued a year ago. Now, its overvalued. Everybody is overvalued. Goldman, overvalued. But heres what was significant about yesterday . Well, in my view, apple up three points. The apple on the dow a year ago, idiots. At the high, 750 billion mark it didnt like that . Well it should have. Heres my only point, andrew. The dollar is no longer say headwind like it was. Oil is no longer at 50. And finally, weve got the call on apple and maybe that bottom youre calling that a bottom . Im not calling that a bottom. Yesterday, everybody is saying its overvalued. Theyre trying to challenge the old highs. No one thought we were going up 200. We talked about it here, remember, with cramer. Two this morning, with alison, they agree with you. Well hear from them, theyre more optimistic. More harbingers, little ho harbingers, maybe we find some time here. Weird, though. Utilities up 13 . Anyway. If thats a forward looking indicator . Backward maybe. Well see. But obviously, 1. 7 on the tenyear, it was 2. 2 a year ago. You can believe the tenyear . I cant believe it either. M what are you thinking about, the comic we got on the show later . Between two ferns. Its not the guy himself. Not the its the varietcreator. The creator, that guy. Did you know him . No. This guy were about to talk about is on the other side. Were doing whale watching. It some of the world ace biggest investors have unveiled the biggest regulatory filings. And george soros is cutting his uk stock holings about 37 . Warning of a risk of another financial crisis for chinas economy will have a hard landing. Soros firm disclosing a 2. 1 million put option. Hes in camp or in league with a whole number of people who have this field. He can still get new highs. We should also say the fund also unwind exposures to commodities in dow chemical, penn virginia, Kinder Morgan and baker hughes. But soros, heres where hes bullish, 19 million share stake in barrick gold. A gold option. I was looking at you when i said some people but, the they probably talk to each other. They still talk to each other. We should say this is the first return to gold in three years. He once called the metal the ultimate bubble. In contrast to soros, john paulson a little bullish. Slashing its investment in the gold trust by 17. 4 to 4. 8 million shares. This is the third time that paulson has reduced his stake in a year. Maybe next time he walks past the set on the outside theres a huge s p put that didnt work. Your buddy, remember the puts he sold on the s p and took in billions of dollars and the market never went below what but soros, a couple years ago. Things go really fast. And i was thinking about it was like ten years ago. So it could have been i remember things like as you get older, you can remember your childhood, but you cant remember what happened yesterday. Im with you. Are you really . I have to tell you. That could be something else, youre going all over the place. Yeah. Huh . You havent copped to it. I havent. Are we going to do this right now . I dont know, your ticker is safe. You cop to it you decide when to cop to it. Yeah, like i get to decide anything. I didnt tell anyone before, did i . No, thank you. Surprise. Other other dont get nervous about this. Im nervous. Youre always nervous. I live in fear. Im just saying, my god, im pregnant, there you go. Yea. Are we going to do this today . Apparently. Its just us. Just us. I didnt know were doing this. Its just us. Enjoy another secret. Its wonderful. So happy. Thank you. I love children. Thank you. We have known, we just havent shared it. Because she hasnt shared it. Its a great thing, really is. It is. That may explain my well, you look you look up in the dictionary, its becky. Thank you, guys. Other wellknown investors disclosing bets on individual names on the individual names in the latest. Greenlighting capital adding in apple, yahoo, yelp and general motors. Carl icahn, okay, you know, hes got to take care of himself, i i understand that, got to do whats best for him, selling outside of some stakes in the First Quarter. Just the way he used to talk about aapple and be able to just jettison the whole position hes said nice things about apple management. All right. The investor getting out of gannett, tegna, meant are graphics and hologic. Also confirming what we knew about his position in apple. He sold his entire 4. 8 billion holding in the tech, and how much of a value it was, passing the bag off to the public. The billionaire added shares of xerox and aig. It is notable, he didnt buy into any new companies in the quarter. What does that mean, hes worried about the quarter . Or hes holding out for the next big stake. Also we should tell you that Pershing Square uping its stake in the whole foods brand. And bill ackman increased its shares in valeant and mondelez. And cutting his its stake. And i dont know if thats because of what he was doing. I mean, you had to i mean in its obvious for anyone who could see beyond the desk. I had people asking me shes putting food away. Like jif fy pop. Thats not exactly how it happened. We dont need details on how it happened. We have an idea. We have an idea. It was the first time in 15 years . Oh, oh. Yeah, it is. Ill prefer her to not you. Its okay. Check on the markets this morning. Home depot. Up 32 now. It was up more. And then it was up when we first started, 11 or 12. Now up 32 points. Home depot. Thats right. Home depot. A tenyear, 1. 76. Take a look at the dollar. The euro down to 1. 13. Against the yen, the yen has been down, 1. 06. That doesnt look like brexit to me. But who nose. The gold treading water, had a great beginning to the year, thats for sure. Up for one of the best performing Asset Classes for the year. The question now, is it headed back up to 1500, 1600 . Stocks kicking off the week strongly as joe mentioned with the broader markets each finishing about 1 higher yesterday. Economic data changed this weeks market course. Joining us is alison dean shes a consultant at dean advisory. And karen kindrow. I think youre both more optimistic. Karen, you say all. Black swans weve been watching could be surprises . Thats right. The sentiment is pretty bearish. I think were coming down to where the positioning is shaking it out. Im not saying im predicting that but im saying if i had to be surprised or the market had to be surprised its more likely to the upside than the downside. Meaning oil price either stabilize and continue to grow. Brexit doesnt happen . Thats right. Oil production as we know, through most of this year has been operating sort of at max capacity for many producers. Not all. The not surprising how disruptions might create disruptions on prices. You also have the option, make brexit doesnt come to pass. Maybe the british dont vote to leave the referendum in june. And i think we know where the elections are going. A lot of the risk events we do know where the elections are going . I think we have some idea who the candidates are going to be but not where its going to turn out. I think in the end, what we have say lot of certainty around what the downside could be. But less certainty on the upside. I think people also arent looking at inflation. Youre convinced that a brexit would cause a selloff . I am of the view. Convince said hard because were on a low conviction. Im of the view that a brexit is pretty negative. Its pretty negative for britain. I think its necessagatives bec theyre all in the same boat. It seems to be kind of you know, theyre trying to work through what is kind of an unwieldily economic system. It is unwieldily. The british dont like to feel guilt. Im sure they dont. Im sure they dont. I just wonder i dont know, i just wonder whether in the long run you might even be able to i dont know, i im not a big eu what youre getting at the whole fabric of institutions is fraying at the seams here and there. Many. Other once related to trade have payments and fiscal union. Theyve either got to create a real union or give up on it. Yeah, theyve got to move forward. With the fiscal. Because now, its like, you know, like tape here, wire holding it together over here. Rickety. Its rickety and fragile. They only do that after crisis. Europeans move forward on crisis. Maybe determining the next step. Alison, why do you look at things more optimistically than other people have been . I just think the second half of the year, earnings comparisons, going to be easier. What drives the market higher, its positive earnings growth. Weve had a challenging year for earnings comparisons because of Weak Energy Prices because of the strong dollar. As those two reverse themselves i think you start seeing better comparisons. On top of it, were starting to see more sustained and continuing improvement on the wage front. I think that will ultimately drive and increase spending. Its been a long time in coming and i think because we had judge a bad crisis years ago, that consumers need to be convinced its sustainable. Although savings rate has risen substantially, a lot of economists think that will continue to rise. W why do you think consumers continue to spend . Because i think youll see people spending a little bit and continue to save. I dont think were getting back to the pre2008 type of spending on borrowed money. But i think youll see people feeling more confident about the outlook. If that happens, it raises the question of whether the fed steps in and raises rates again. And that brings us back to this entire conundrum of what to do. Is this market fairly valued at these levels, undervalued . The fed does it gradually which is my belief. I dont think theyll do anything in june. Its too soon. The recent round of Economic Data coming out was too mixed. But i do think the fed will start raising it but gradually. If they do it gradually, i dont think that creates too much of a multiple compression which is why i dont think well see the market expand. Alison and karin, thank you for being here today. Well talk home depot, Quarter Results beating estimates. Well do that with analysts next. A quick programming note, later this morning, were joined by senator rob portman. He has been mentioned as a possible v. P. Candidate for the donald. Joining us at 7 30 a. M. Eastern time. Squawk box flurns just a moment. Returns in just a moment. Home depot reporting Quarterly Results just moments ago, beating on top and bottom line. Trading on an alltime high. To blake down the numbers youre seeing Equity Research analyst at oppenheimer and company. When you get to the senior level, its hey, i wear a tie. I get up in the morning. I look, if i see one i like, maybe ill put one on. He has a jacket. He has a jacket. Most important, its a new shirt. Its a new shirt. You know what, mine doesnt necessarily wear a tie because he can. Thats the point there, right . I always say it restricts the blood flow to my head. So, you look at why people invest in a stock. For a while, if you had foreign exposure, it was great. Suddenly, Revenue Growth with the strong dollar got tough. Home depot almost you check off things you want in this current environment. Thats the stock. What was the regular gain, 9 , nobody does 9 . Thats exactly right. When i talk to our clients, thats what people are saying its a wellrun liquid play in the United States. On the United States. In housing, rebound, consumer, and whether theres a shortage of housing working off the housing bubble. I mean, its got a lot of wind at its back and raising guidance, getting numbers and creating a new my. Thats exactly right. Are we going to hear the same thing from lowes . Its going to be similar. Lowes reports tomorrow morning. Well see a desentence decent but not as well run. Because. Its the not as well run. Home depot commented about volatile weather. Well see what lowes says. But usually, home depot is better at capitalizing that. They merchandise their stores better. They move product around better. That may suggest theres a bigger spread between home depot and lowes quarter. Whats the difference between home depot, its a retailer that you walk in and buy things but then macys and kohls and nordstroms. Its what they sell. Its same the same consumer. A brick and mortar place where you walk in and put your credit card and buy things. Its totally different than what we saw at macys. We talked about this, theres no new fashion. Theres plenty of new apparel. Yes, its new stuff but people want this stuff. What stuff . Shovels, drills . Yes. In my mind there are pressures on the consumer, we talked about this. I think when that happens the consumer is more selective in where they spend. In one area where theyre spending its been the case for a while is home improvement. He led in the home supply tough and now theres a new guy after that. But there was International Expansion but we look at it as purely domestic, dont we . Thats right. Home depot enjoys a big presence in canada and mexico. Theres always a chance that they could open in another area. Thats a ways off. This is very much a domestic housing play. Can it be a 250 billion company instead of 170 billion it can go up another 50 . Is there room to open superstores all across the United States still . Are we seeing more, its getting to the point where its going to be harder and harder to generate this kind of Revenue Growth . Well, when i think about that i would say the answer is probably yes over time. But its more a function of Getting Better and better productivity out of existing stores. When home depot does their conference call, im sure theyll talk about this, the big opportunity is the pro customers. Theyve served pro customers probably not as well as they serve individual customers. So i think about the productivity. Relatively speaking, yes. Amazon is in everything now. Even going after the markets that p and g. Weight of the product . It doesnt ship well, generally speaking. You need service. Most people, if im going to home depot, i need people to tell me what to buy. What to buy and where to find it. Theres an immediacy, too. Working in the yard on saturday or something broken in the house. You dont think five years from now, amazon isnt able to get it to you two hours later . Thats the real shift takes place in retail. Youll be able to talk to it and say, im home, such and such broke. Three hours later, this thing will winds up on your door step. Thats what im saying, five, ten years, i worry most about it i joke with a couple younger guys who work with me, a lot younger than me. They buy everything online. Its a different im surprised how much ive shifted. I dont embrace change but i cant imagine dominos, am i going to order that, eight minutes later and a drone is going to bring me a pizza. You might want to belong to dominos. But amazon is compagoing to deliver the meat eaters pizza to me. Why does lowes report the day after . Why the day after . Do you want to separate that for me . Just from an optics perspective . I dont know the reason for that. Its been that way for a long time. These companies tend to report in the same time. It used to be retail, i covered for a long time, companies overlap and they actually did switch, but thats rare. All right, nice to see you, sir. Were out of time. Ill wear a tie next time. Because you can. No one is going to say anything to him. If we run out of time do we say how are you, mr. Sorkin . You got to wear a tie. When we come back when we come back, rethinking the art of a deal. The group wants to improve the deal. The lead negotiator for the fbi. He will join us next. 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From the english dictionary. Yeah. We all do it now, right . Its a totally different one. Theres a couple different stocks to watch be activist corvex discloses a stake in pandora. Its now the largest shareholder of pandora saying its core business is profitable. But the shares are down 25 this year. Lending club says it has received a grand jury subpoena from the justice department. A big piece in the journal on the front page. The online ceo was ousted after an internal probe showed that the company falsified documents when selling a package of loans. On an s. E. C. Saying a large number no