Looking for a fresh start after ugly trading days last week. Yields are rising as debate over who will be the next fed chair picks up steam. Sax seeing more markdowns for womens shoes, handbags and menswear but its not bad news for the consumer companies. Jpmorgan upgrading Dollar General. Entell upgrade over at piper saying pcs are not down for the count yet. Futures, as we said, slightly lower after the major indices posted the first backtoback weekly losses in june. Worst week for the dow this year, all going on amid encertaine encertainen certa uncertainty of the fed mens and jackson hole starting thursday, friday. How do you feel after last week . I work on charts every week. Show it to them. Too many look horrible. I mean, ive got to tell you, were in a key moment here. Industrials hanging by a thread. The Real Estate Investment trusts terrible, carl. Only group good, gold stocks. We dont want them as leadership. No. The miners, hated miners all year not going to lead us out of the wilderness. Driven by what they said, the back half, the continue year, Something Else . The combination of retailers saying things arent do and ten year saying things are good, rates have to go higher, has spooked people because, you know what . Maybe rates are going up because of industrial demand. Maybe going up because we saw in usa today affordability of home is is out of control. We need Interest Rates to stop going up if we stabilize. If we keep going up, were not going to stabilize. Were not far from 3. Where is the demand that has driven these . Were way out of whack with europe. I know, sure, some industries, auto industrys strong, but they could knock that over quickly. I dont see a lot of strength. I think that the rates have gotten away from the fundamentals. Meantime, weve got a thousand people dead in egypt, and a lot of uncertainty of whats going to happen. Horrible. The suez threatened by the turmoil over there. Its start to impact. Downgrade of apache, 19 of oil from egypt. Its a stock show. The egyptian stuff is frightening. Normally you expect a move to high quality, flee to safety by treasuries. I think this is an event i would have expected it normally. So many sellers in treasury, theyre overwhelming flight to quality trade. August 2nd high . 3. 3 , maybe . Dow down 2 last week. Were not i mean are we headed for ten, for five . No. The reason i say its foal crumb week, the only ones that have taken out the lows are the Real Estate Investment trusts and the average ones going down are yielding 3 to 3. 5. So they dont have the floor that they used to it. If rates go to 3, i say any utility that has a 4. 5, theyre going to sell that. Thats why rates have to stop. Youre right, its not dire. But were not used to its a different kind of market. When we go down 4, everybody says i remember when we used to go down 19. Very scared. We still have not had four consecutive losing days this year. Weve had three a few times. If today is down for the dow and s p, thats four in a row, first for 2013. Were the most s p charts that i look at, hand delivered for those who want to know what a boring weekend is, we are the most oversold of the year, you know, well, actually, again that june decline, neck and neck with that. I find that is, you look at t right back to where it was, but looks like it could take out the low. At t a big cap stock, yield more than 5 . Verizon rolling over. The rolling over theme is very big. Only stocks that bucked that thursday and friday besides golds were housing stocks. How do we explain that . Down 30 . Are they done . We might talk about this upgrade. The most significant upgrade. Yes. Really . That group has been so killed. If rates stabilize the fall could be good for Home Builders. Wells points to a compelling valuation on phm. The greatest performing stock of the s p last year and its given up the dose. Retailers, highend retailers saks released result, deeper than expected loss after disappointing sales forces them to cut prices. Sask bought by canadas hudsons bay. Some said if the loss werent as bad, there is still time on the go shop for better bid but was thats not going to happen. Take advantage of it, take advantage of the weakness. In the saks store i dont know if you visited the zip code. Has its own zip code. My wife has, but i may not. The zip code, i think right now its one of those you get zillow, find out whether prices are dropping there, because i hate to see shoes doing badly in new york. I thought new york was one of the healthiest economies. Comps 1. 5 for samestore sales. They say the fiscal year end in february had an extra week, that skewed the calendar. Without it comps choser to 4. That would be a decent number versus what we saw last week. Walmart number, when you had macys not great and walmart the next day, and nordstroms, next day doing poorly, wow, high end, middle range, lower range all bad, you have to struggle. Each time the stocks all got hit. So what point have we decided you know what . Ross stores upgrade signify and the Dollar General upgrade maybe theyre the sign of the sell is overdone. Dollar general, jpmorgan takes to overweight price target 64, talking about sustainable comps. They think management might buy back 20 of the float next year. This was not long go, go private, then public. These companies generate a huge amount of cash. When you go to the dollar store, i shop at dollar tree, they have good prices for candy sorry, i like candy. Kids like candy, my father likes candy. Jolly ranchers. Absolutely. I find these are not what people think they are. A dollar store is not as bad, so to speak, and remember the food stamp trade is very big there. Morgan stanley, overweight on ross. Saying again, offprice retailers are outperform in an environment where the middle tier looks week. Well, jcpenney, we felt as long as they were having sales that might be a place to have offpriced merchandise. Ross stores is a great regional in a National Chain and acted poorly. I thought the upgrade made sense if you think things are overly urban tonight. Tomorrow, jcpenney, later target, lowes, aeo, abercrombie. I talked with my daughter, over dinner, the credit card bill, the urban buy, its not going to hit this quarter. But they may be able to forecast better than expected quarter because of the buy. Look at this panoply, home depot is my gut wrencher, that was up friday. Home depot declined so much. Home depot and lows will set the tone tomorrows business. Carl, we went from being thinking that retail is rosy target bumping up to 72, looked really good. Home depot at 80. Believing the consumers been stopped here. I dont think the consumer has. But gasoline, you know during vacation, i paid 4. 30 for gasoline. I had to think, geez, thats a lot. Yeah. I didnt get to buy the Convenience Store candy that i wanted. Whats puzzling, there are weird outliers look a coors, doing gang busters in europe, pretty well here, as the law of large numbers catches up with them over time. I thought nordstroms might be good. The nordstroms stores, they look great. I didnt see that coming. Obviously for a coors, i would go with if you look at what happened with coach, that wasnt so hot. But coach has been missing the market. And i just find that coors thing is just one of those, its as you used the word outlier thats how to describe that versus what else weve zbleen john idle, amazing operator. Who delivers these to you . Oswaldo. Like the gimp that you have. Saturday morning. Ive got to tell you, when sitting around, carl, like i am, waiting for the week to begin, because you know how much we hate saturday and sunday, these are pleasure reading. A great thing for those of us who lead solitary quiet lives. This is my throw walden pond. Party at jims house. You look at them so others dont have to. Take out, theres prax air, thats too high. Youve written all over these. Im concerned about proctor at 80. I wouldnt want to be them if i were ackman but i think hes a little stuck. Whirlpool. That was going higher. Look at Real Estate Investment trusts, terrible. A lot of people laugh at and me and my chart obsession, i say, go pound sand, joker. Coming up next conference. Im not dead. What . Im not dead. Why one firm is saying the same thing about pcs, theyre not dead yet. It has been nine years since google went public on this very day. The stocks up tenfold from the ipo price. Well talked to wired magazine steven levy who wrote the book on inner workings at google. A lot of news on the way. More squawk on the street live when we return. [ male announcer ] come to the lexus golden opportunity sales event and choose from one of five lexus hybrids thats right for you, including the lexus es and ct hybrids. This is the pursuit of perfection. [ male announcer ] this store knows how to handle a saturday crowd. [ male announcer ] the parking lot helps by letting us know whos coming. The carts keep everyone on the right track. The power tools introduce themselves. All the bits and bulbs keep themselves stocked. And the doors even handle the checkout so we can work on that thing thats stuck in the thing. [ female announcer ] today, cisco is connecting the internet of everything. So everyone goes home happy. Pcs are not going away any time soon, thats what Pifer Jaffray is saying. Expects a moderate corporate refresh cycle driven by the end of support by windows xp next year along with the release of windows 8. 1 in the Fourth Quarter. The company has longterm strategic issues. Right. With the 4 dividend, they think downsides limited. Its been a buy if you collect the charts every time it got to 4 . There was a disc drive company i owned in the 80s, we named the cat comag. It was hit by a truck and it bounced. Really . It bounced. He bounced. Youre hopeful, but it was this piece is entitled, dead cat bounce. I always think of the cat. It didnt do well after the bounce. But that initial bounce was okay . Initial bounce, hit by alcoa an 18wheel an 18 wheeler, nine lives. Pcs not going away soon. Response on platforms like twitter, refresh cycle is called buying tablets. How exposed is intel to that. Well know nor when hewlettpackard reports later this week. By the way, everyones rooting for intel because stacey smith, a fellow who comes on tv is a good guy. You kind of hope, wow, this great inventor of product, this terrific company, can regain its luster. But, like oracle, microsoft, theyre challenged. Oracle not pcs but expensive software. Intel, its a good yield play. Last time we had a yield play, it has held, Interest Rates werent soaring like they are now. Another play that works like intel if Interest Rates calm down. Names like intel, ibm, right you, could argue is the most publicly flogged dow component of the year, a lot of people think its dead money, Short Interest is up. Yet this was Warren Buffetts foray into tech. He does few forays in into tech. Apple last week, like the old days, apple up, everybody else going down. A replay, obviously carl icahn played a big role there, ibm doesnt seem to have its as if people decided were tired of buying earnings per share growth. Looking at revenues. Excensure peeked. Again, i feel like i dont have a case to own ibm. I dont have a case. I want to have something. Yeah. Top of usa today interview between maria and John Chambers. Internet everywhere. Laying off 4,000 workers last week, talking about in another era he called it lumpy. Looking at challenging, uncertain global macro environment. I took that conference home again. A Conspiracy Theory. I think John Chambers is an extremely nice man. Not using that as being facetio facetious. Hes a good man, good heart. The companys doing well. I think public spending was good. But its hard to justify firing 4,000 people, which by the way he wanted to find another place. If things are really good, why not skew the Outlook Negative and just if youre one of the people say, hes worried . Is this a Conspiracy Theory i have . I have to tell you fundamentals are too good. My travel trust does own it. It hung at 24. For me to think perhaps he was gloomy in order to be sympathetic, he feels their pain. Interesting, interesting theory. When we come back, more with jim. His mad dash. One more look at futures. 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Get in front of theyre saying its Gross Margins doing well after this run, up 155 a year, jpmorgan better know what its doing because that is not what i was thinking would happen to best buy. Looking at Gross Margins, arguing that discounting is that tide has ebbed . Maybe best buys last mand standing. Am amazon, paying sales tax. The great equalizer. Talked about that in its gestation period and maybe the consumer is starting to notice. Best buy, different products come in. My take is that this was left for dead here. This is the hewlettpackard play. Left for dead, too many people shorting it. After the run, a gutsy call. One to watch, especially after what others have said about electronics, costco comes to mind. Right. Zillow, meantime, not only the secondary offering but buying street easy, which anybody in new york will know about. Yeah. Street easy, i felt the best. Hows zillow for new york . I say, i prefer street easy. People say how much is my house worth . Its a smart move, 50 million in cash but offering 2. 5 million shares. A monster short position. Stock up 215 . Shorts have cover on this. People were short it because it went in an environment, toll brothers, and horton, have been going down, why would you want to own a company that basically is a website that tells you how much your house might be worth and whether you should be a buyer . Covering on the 2. 5 million very interesting to watch. Interesting. A lot of critics, skeptics wondering where profitability is in on a large scale for these guys. Right. Are they yelp . A remarkable stock. Are they pandora . Or are they maybe groupon. Groupon did bounce back. This is such a powerful move that certain point you have to say to yourself, geez, even if its a great company, is it worth this . All right. Interesting. Well keep an eye on that. A big story today. Bulls are saying good riddance to the worst week for the dow so far this year. New week means new opportunities. 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Futures, if the market trades the way the futures suggest, this might be the day. Yeah. We had some players in that dow. Exon, i know theres a positive comment, exon will increase dividend. Exxon rolled over last week. Intel wouldnt be at 4 without the rollover. Last week had this kind of inev inev vittibility feel. No one was here, carl. Geez. This whole peierce has been characterized by the fewest playerize can recall. After the big run you think people coming in, buying stocks. Dont see it. We had discussions last week about fixed income, for instance, and the tenyear, and dan fuss says its very thin. Hard to take real lessons home because theres few people buying and selling. Trades like a small cap stock. Trades like you have to get a broker on the phone to sell a million treasuries. Do you know a guy . You come in and watch it. Ive been watching tlt. Its just holy cow, tlt is trading as if it were tesla tlt, good symbol for tesla, maybe. Talk about tesla and the hyperloop in a bit. Declines in indonesia, jakarta, thailand off 3 , rupee versus the dollar. Foreign capital worried about rising rates, too, not just us. The gigantic selloffs before, i thought people would stabilize,