Note, the hang seng. The hang seng hitting the highest level since june of 2015 during that session. The picture of europe here, inflation data hit the tape moments ago. A mixed bag. Fractional losses in germany and france. Home depot just out with First Quarter results. Earnings of 1. 67 a share, coming in 5 cents above estimates. Global Comp Store Sales were up 5 , that beat the consensus of 4 . U. S. Comps were up 6 . Wae above e home depot raising the fullyear earnings forecast. Market reaction in the currencies from the Washington Post story. I to be honest with you, i didnt buy it because what were seeing across the board is that people are willing to take on a little bit of risk. Euros are turning to levels since before the french election, yen is coming off. We saw the chart. Its been a while that the dollar euro has been strong. You can do just about anything you want in the Financial News reporting, sort of and im sure we didnt make that up. Im sure the person that wrote that can find a reuters report. Theres probably a trader who believes that out there. But its sort of a test, what do you see in the ink blot there. Yeah. Even as we talk about the stock market going up or down, usually the best reason is if its down, theres more serls thllers than buyers. Answer bubsolutely. Profit taking. Value hunting. All of that. I dont know. Whatever. Then the reuters story could have been written by i love millennials, but it could have been a 26yearold that started last week or something. In another country. Who knows. Heres some of the big stories. Disneys ceo bob iger said hackers claimed to have stolen an upcoming disney movie. Iger made the comments to abc employees during a Company Meeting. He said the haeshgs a s ahacker threatening to release the movegy in bits online unless a ransom is paid. He says disney has refused to pay and is working with federal investigators. Deadline i guess thats like a blog, industry blog reports, that the movie is pirates of the caribbean. This is the latest cyberattack targeting a Media Company demanding ransom. Last month a hacker stole ten episodes of netflixs orange is is the new black and leaked them ahead of the new release. Ford is going to cut 10 of its global work force among efforts by mark fields to boost profits and the stock price. If we look at a longterm chart, its like a flat line. Go back another five years, it doesnt look much different than that. It rebounded from the financial crisis and went from low Single Digits back to 15. Then nothing. Nothing since then. Reports say that the cuts which may be outlined this week will come from salary employees in north america and asia. Its unclear whether the cuts include hourly workers at plants in the u. S. And abroad. Ford says it wont comment on speculation. Ford is targeting 3 billion in cost cuts this year. The stock is down since fields became ceo. Jeffrey immelt is pouring more money into his own company. He bought another 100,000 shares of the dow component yesterday for roughly 28 per share each. Immelt now owns more than 2. 5 million ge shares. Ge has had a difficult start to 2017. Had a difficult start to 2016, 2015, 2014, 2013, 2012, 2011 a difficult start going back to 2001. You have to wonder if the stock will get any boost. Immelt has tried anything. Sell this, buy this. Restructure this. Do this. Do that. 28. 28. Still. Yeah. President Trumps National security adviser is denying a Washington Post report that claims trump shared classified information with russian officials. Eamon javers joins us with the latest. Good morning. It was a story last night that rattled official washington when it posted on the internet a little after 5 00 p. M. Yesterday. Heres what the Washington Post reported that got everybodys attention. They say that President Trump revealed highly classified information to the Russian Foreign minister and ambassador in their closeddoor meeting last week in the oval office. The officials telling the Washington Post that trumps disclosuresopardized a critical source of intelligence on the Islamic State and that the underlying intelligence was provided by a u. S. Partner considered so sensitive that details have been withheld from allies, the Administration Even asked the wag powashington pos withhold some details in its story. Alleged by President Trump said to the russians in the oval office, i get great intel. I have people brief me on great intel every day. The gist there is that the president was boasting about how good his intelligence was and the russians could rework where the intelligence came from. H. R. Mcmaster came out to talk to the press about two hours after the story broke with a big denial. Heres what he said. The president and the foreign minister reviewed a range of Common Threats to our two countries including threats to Civil Aviation. At no time at no time were intelligence sources or methods discussed. And the president did not disclose any military operations that were not already publicly known. The key there is that h. R. Mcmaster is denying is that the president revealed any sources or methods for gathering intelligence, but thats not what the Washington Post story says. The post story says he revealed specific intelligence to the russians that could lead them to reverse engineer and figure out what the source and methods were. De democrats pounced on the news. Senator Chuck Schumer issuing his statement. He said if the report is true, its very disturbing. Revealing classified information at this level is extremely dangerous and puts at risk the lives of americans and those who gather intelligence for our country. The president is the ultimate classifying authority in the United States. That is if he decides to reveal classified information, thats his decision and at his discretion. Theres no legal prohibition on the president revealing classified information to anyone he deems necessary to reveal it to in the course of doing his business. One question around all of this is where did this story come from. Who were the people in the room for that meeting . We dont know the answer to that yet. The white house did not allow American Media into the meeting. They did allow a russian photographer into the meeting. We have some photographs from the russian side, but we dont see who the american officials were who were in the meeting who could verify the president s account. H. R. Mcmaster said he was there. Rex tillerson said he was there. Those are the pool of sources that people will want to hear from throughout the morning today. Were in a position, eamon, to were way out of our comfort zone, all of us, talking about classified stuff. We need, like, a primer or primmer to even talk about it. So im hesitant to even weigh in at all. I guess what theyre basically saying is that by since the president has the right to declassify things, that you dont want to do this to a partner who has not given you the goahead to declassify it. And the russians could connect the dots to where it came from. You havent talked about this much. Once again, who the hell is the leaker here that is close to the president . This is after, you know, you saw earlier this week and late last week that hes infuriated by these leaks. They keep coming. This would be a state department leak . In the Washington Post they stress that its an anonymous sous agai source again, right . Yes. This is why the deep state conspiracy people think because the only reason to leak this is to undermine trump big time. Again bigley. Again, you have someone in there that definitely does not have trumps best interests in mind in this. Somebody had access to the actual words spoken by the president of the United States in a closed door meeting inside the oval office to the russians about extremely sensitive intelligence information. The pool of people who that can be is very small. The Washington Post itself reported that ultimately officials were so concerned about what the president had done that they ordered that his remarks be stricken from the official transcript of the event that was prepared for internal use. And that that transegypt whicri had the real remarks ky g can you get on that . Believe me, ill get right on it. Somebody in a parking lot. Deep throat 2. Ill go hang around in parking garages and wait for deep throat to show up. Am i too much of a conspiracy here wrist to say this comes on the heels of reports that there will be a major po tents inittet of the white house and he is looking to purge the ranks, and that there is somebody right now trying to discredit the administration . Anything is possible. Those rumors have been swirling around. This feels to me, on inisninst it feels to me somebody from the intelligence community, who was concerned about the breaching of this relationship with the u. S. Ally here. That would be the motive for leaking this. I think we know the motive. You know, the other thing i heard you talk earlier about hillarys unsecured server. The russian intelligence, i imagine, is pretty good. In general. They probably know a lot of things that we think they dont know, but we actually know that they do know. Right. Theyre good at this. I think during the unsecured server days they probably knew everything. They probably knew everything that was happening. I dont know this is bad. I understand, but i just like oh, my god, theres gambling going on here. Round up the usual suspects. I think they know a lot already. Thats possible. What is concerning here is that the people who reveal intelligence to the United States are doing that and putting human assets, lives on the line when they do that. Thats the concern here. Someone talked to a u. S. Ally in confidence that ally talked to us, now those relationships and lives on the ground could be at risk here. And thats what has intelligence officials concerned. I talked to a few former u. S. Intelligence officials about this yesterday. They were blown away by this story. They couldnt imagine this had happened. I think well wrestle with the implications of it throughout the morning as well. Eamon, thank you. Were getting a peek into what some of the worlds most powerful investors are buying and selling. Paulson co Holding Steady in the Gold Exchange fund. Also trimming in allergan. Carl icahn took a new stake in conduent and increased its position in navistar and herbalife and sold out of allergan. Warren buffett doubled its investments in apple. Sold out of 21st century fox. George soros took a stake in snap ink, also sold amazon, abbott. He added positions in conocophillips and fireeye. Green light cut its stake in apple, riteaid and time warner. They also hiked stake in gm and yahoo dropped position in yelp and took a new position to micron. An old holding way back when of einhorns. Thats right. That was his. He was really excited about it. Thats gone to Single Digits so many times in my life. The s p 500 and the nasdaq closing at record highs. Lets talk markets with simien himen from pro shares and todd gordon, founder of tradi tradinganalysis. Com. And a cnbc contributor. Every morning i wake up and look at the futures. Whats happening today. It just its never down 150. You know, we have constitutional crises, all kinds of things happening. Are people just worried that this is a bull market that were in that will head higher because sooner or later tax reform gets done . Is it earnings . Was it already set up . Everybody is complacent. The vix is at a 25year low. A trading point of view, its been boring. Were seeing a rotation back into large cap tech. The action is not in the u. S. , which would make you think when you wake up in the morning futures are moving and theyre not. Were at 0. 0 now. Were flat. So i think a lot of it is focused back on a thin anemic rally. The advanced decline is dropping. Were being led by big cap tech. Theres been rotation out of the u. S. And into europe and asia. When the volatility breaks, i have no idea. I do think were coming up into our 2500 target that you and i have been talking about for about a year or so. At 2500, its not just psychologically important, its technical resistance. That would be another nice move here. 100 points. I thought you were starting to tell me there are cracks developing. There are. The ndx, the work we do, were looking at 5700 to 6,000 in the nasdaq, which is key. If you look outside of tech, you have emerging markets that are holding up the markets domestically. Transports lagging. Small caps well off. Just a lot of dow and s p industries. Energy, crude oil came back from the brink. Energy stocks underperforming. This has been the case for a long time, yet we grind higher to new record highs. Thank god for apple. These cracks have not really done anything. Until they have. Theres still not a lot of other things to invest in. The move by the fed or the tenyear or anything else, its glacial. You cant buy bunds at 40 basis points. Still nothing else than stocks. Im going fundamentals. This is earnings driven. Its not that theres a lack of alternatives . 8 top line growth in the s p. Double digit earnings growth. Even the carnage that was talked about for days in retail was just a multi line. Even the Consumer DiscretionaryRetail Sector had double digit gains. In a low Interest Rate environment thats plenty to prop up stocks. Even from the fundamental side, opportunities outside the u. S. Are there. Europe is coming around. Europe had slightly higher gdp growth than the u. S. Last year. All right. France cooperated with us. Its a multi speed recovery around the world then. This makes perfect sense to you . The fundamentals are there. If Commodity Prices stay stable, that should be plenty to hold up emerging markets, which have only put a small dent in the underperformance since the financial crisis. No one thinks the fed is moving too quickly . Still flush with central bank liquidity. I want to go back to an old measure people dont talk about as much. Capacity utilization at 7 5. Typically you dont get a lot of inflation pressure until you get past 80. So theres a little breathing room. The fed will move, but they dont have to go crazy to stave off inflation. Wow. So when Capacity Utilization, when that number comes out, i shouldnt just blow it off. I need to look at that. I think its still relevant. When is that coming . Dont know. A lot of times we have government you know you read those. This is coming out this weekend. So i will Pay Attention to Capacity Utilization . Absolutely. Underemployment, too. Got to write that down. How do you spell capacity . In your opinion what percentage of the emerging markets moves is europe versus asia . Im hoping to lead you towards technology. Im personally long emerging markets, i have had that position for a while. But its tech driven, correct or no . I think theres more opportunity in europe because the stagnant economy is coming around. With the stabilization on the political front, theres more opportunity than even in some of the nontechnology sectors. Of course financials with potential moves away from zero Interest Rates. Looks like its released today. Oh, my god. What time . What time . May 16th. Today is may 16th. What time . 10 00 . 9 15 a. M. 9 15 damn, i wish it was our show. I wont predict it, but i still think below 80. So still room there. All right. We did the viewers a service this morning. You flew that wknew that was co today, didnt you . I didnt. Home depot out with Quarterly Results. Well dig through the numbers after the break. Shares of home depot were strong yesterday. At 9 15, watch squawk on the street for Capacity Utilization. Squawk box will be right back. Wh happened . Dad nda walked into my swing. Wh hahuh . Ed . Dont u mean dad kind ofruined . I thud go to the thothpital. There goes the airfair. I nt think Health Insurance will cov all. Ofhat. My fathe withouthatash from aflac we might have to choose tween hawaii or yo face. Hawa what . Aw you might haveescoverage than think vit aflac. Com and keep your lifestyle healy. Aflac the shlike a bald penguin. How do i look . [ laughing ] show me the Billboard Music awards. Show me top artist. Show me the top hot 100 artist. They give awards for being hot and 100 years old . Well take 2 [ laughing ] xfinity x1 gives you exclusive access to the best of the Billboard Music awards just by using your voice. The Billboard Music awards. Sunday, may 21st eight seven central only on abc. Home depot just out with Quarterly Results beating estimates on the top and bottom lines. Joining us is brian neagle. We should note u. S. Samestore sales and global samestore sales beating estimates. If anybody has a complaint about home depot, its valuation. Do these earnings justify where its valued . I think the answer is yes. Were trading north of 20 times. We held that multiple for a while. In my positive call for the stock, as long as these fundamentals exist, the multiple stays where it is. We were saying how much of a beat it was for u. S. Sales, but for 2017 total they keep it the same. Should we be concerned or is this home depot being conservative . This is home depot being conservative. Theyre talking about 4. 6 comps for the year. I suspect that as weve seen in past years, theyll keep beating throughout the year. What does t