2. 14. Our road map begins with apple and new product announcements. Did we see anything that would move the needle . Plus a big change at j. Crew. Mickey drexel is helping down. New chief executive coming from quest elm. The president taking to twitter ahead of congressional meetings today. Lots of buzz surrounding apples answer to the amazon echo and google home, the new home pod unveiled at apples Worldwide Developers conference. Heres tim cook making the case for that product. We have such a great portable music experience, but what about our homes . We think we can do a lot to make this experience much better. Just like we did with portable music, we want to reinvent home music. Jim, we got the ar kit, we got amazon on apple tv, but home pod really stole all the headlines. I have the logitech music system. I have the Harmon Carden music system and i have the echo. I would tell you that the echo is really great. You can talk to the echo, but i talk to my wife. I dont need to talk to him or her. I want sound quality. If you care about sound quality, this seems like something i want to get. When it comes to price, yes, it is more expensive but the devices that i have that produce sound are not cheap. So i think that audiophiles will like it. Do they move the needle . If its part of the big apple family people will say ill give that to people because the apple family is so big that i think you tend to want to buy people something that is part of it. So my take is that the reviews are good about the sound. The typical articles about apples best days are behind it. Theyre written, i remember when i was a Sports Writer and they said listen, you have 15 minutes deadline, youd have to write a piece which says this fsu loss badly to florida and fsu crushed florida and you had to get that out, i think people just do the fsu is crushed by florida except for fsu is apple. I read the piece, wont move the needle. They could have put anything in. My take is if youre an autophile and apple member so to speak, im taking it. I do marvel at their ability to continue to not even compete on price. I mean, they just set their own price. Its always a premium. For example, as we all know, they take virtually all the margin in the Wireless Phone business, virtually all of it goes to. Ale, and here again, theyre twice the price of the echo. Theyre saying its about audio quality, i guess, not necessarily just about being a digital assistant in the household, but it is amazing, guys, that they just continue to set their own price. Sume maybe theyre going to raise prices, i dont know, the next thousand dollars . The echo sound quality is, i dont think anyone is raving. I like the echo very much. But the sound quality is im not sure ill play it when friends are over for din per. My fatherinlaw did and it was a marvel, we liked it and i wanted cole porter, i wanted some show tunes, then i wanted jazz. Coltrane comes on and blasting but no one wanted to say anything because i didnt want to hurt her feelings. Maybe its more competitive with the sonos offering. Thats what people say. Andrew ross srk join was saying sonos is switzerland, it can work with everything. Sonos is a good product. I like sonos. Apple hasnt made a new high since the 15th of may. Since that time, nas is up 3 , bringing up mean reversion . I think apple had the big run. We had the downgrade from Pacific Crest which you know, crushed the chart if youre a chartist, but i think that apple is such a huge cap stuck, it galloped up there like a small cap. Alphabet is doing well, fang is extraordinary. I was surprised there was no netflix note yesterday. Of course theres one today talking about Foreign International signups but i think apple is stalled until the next thing and i think there are also people who say if it isnt a super cycle, whats going to happen, and was there something supposed to come out of this that was legendary. Nothing was supposed to come out of this, nothing, other than just developers. Everything that apple does is second guessed, and you second guess it after you buy it. I bought it, you know, i guess this is a bomb, i love it, but i guess its no ones getting it. Then you get 20 Million People buying. Their best days were so behind them. Im sorry. What are you wearing on your wrist these days . An apple watch but the old one. Feels like i know i know, they bought a lot of them. We got a new os. Not as many as they ever thought. This did not become a blockbuster product. Carl icahn has some 60 million projection . The best selling smartwatch, its out of nothing. Right, only 56 degrees. Come on. It saves lives but what does that matter . Thats another thing thats an afterthought. Apples best days are behind it, i want two more of these. Honestly. If apples best days are behind them why does anyone use theirs . Can someone tell me why im not using a samsung, other than the fact im not an arsonist . Who says apples best days are behind this . Are a lot of the people saying that, who sent the market cap to 803 billion. Who are these people . I find a level of cynicism in the apple coverage astonishing. I find it astonishing. I do. Im trying to figure out if i can get the device in time. I cant get it for fathers day but ill get it for the holidays. You think my wife is not going to get me that thing . She doesnt watch the show so its not really a hint. Honestly i want that device. I kind of do, too. I need one. I like the stylus, i like it because the quality is so good. The new mac is incredibly gorgeous. It was called a monster. Im on the house of cards, i dont know where you are in terms of bingeing. Havent started yet. Holy cow and orange is the new black and you know whats back is on amazon, philip dix. Can cast f catastrophe . No. Its a crime thing, what is it . Edelweiss. Man of the castle. Like the rome guys won. Yes. And thats back and i watch them on my hp. I love my hp to the point where its putting tape on it, but you know geez, jim. Its got mold, too. Have you seen this, taped and cracked. Thats his own though. Cnbc, thats not a cnbc it holds up, i put this through the washing machine, its like a timex. Ive run with over with an abrams tank and its still taking. Are they not playing defense after the imac and laptop . I try watch things my wife is like lets watch it similar to a tv as opposed to this thing you tell me its been able to withstand a bazooka. Im wasting hp, they had a good quarter and if they were to peak that quarter could have been to 20 but i do think i watch what . Nothing. I do not. Wilf told me it was good, wilf. Hes from over there. I caught up on Silicon Valley the best comedy. Love that show. Amazing. Thats because your met are so bad. It was a good night for us, they did not play. That was fabulous. Not that we have 20 wins. I dont think you should be throwing stones. Why not . Im a stone thrower. We talked about the ge phillies analog last week. A lot of people werent happy, which is worse than ge for the phillies but the phillies have superior cash flow. Futures are moving lower, one day after the stocks snapped the twoday win streak. The nasdaq hit an alltime high during mondays session. The trump agenda in focus. The president tweets big meeting today with Republican Leadership concerning tax cuts and health care. We are all pushing hard, must get it right. Some have called out the fact he called it tax cuts not tax reform. Jim, how much does that matter . Not that much. I ran a corporate governors conference and executives are dodging anything involving trump because theyve been committed to climate change, afraid of being tweeted at. Hes out talking about what, the fall for tax cuts . Thank you for calling it tax cuts, mr. President , because thats the only way youre going to get it through. Tax reform is too opaque. Tax cuts is something historically some of the republicans like and maybe we do it on a limited we . They do it on a limited basis. I think a lot of people expect thats what you end up with. Reform is extremely difficult with so many different moving tarts, not that we dont need it. We do need reform, but were probably not going to get reform. We may get some sort of repatriation deal and again im just parroting what im hearing from many people who have a lot more insight than i do into this process and who i speak to but the expectation is perhaps do you get a repatriation deal of some kind. Right. And a tax cut of some kind, but perhaps fairly modest. Ill tell you, they dont have a plan yet at all. They had a plan i saw it sorry, you got to cut theres only one. It had that many words on it. There is no plan. The senate is still dealing with health care. Burr yesterday added his name saying 50 votes will be tough. Mcconnell said the same. And we got the budget issue this summer. The debt ceiling, dont ignore that. Given how much trouble, when he starts tweet being that and starts antagonizing people, who knows well see. They were saying antagonized the Supreme Court in the failed new york times, the fake News New York times. The Supreme Court i dont think they follow twitter as much as people think. The council on the other side wont introduce some of that into evidence. The Supreme Court, i dont know if you have ever been there, a heavyweight institution. Its june. What does that mean . Giving you the calendar, still this session, tax reform, tax cut maybe 18, mid terms come up. You know, less than a year from now everybodys going to be thinking about the mid terms and youre done. Its getting tighter already in terms of getting anything done legislatively. Anyone remember reagan putting through the tax cuts . He had more democrats on his side. That was like the democrats saying yeah we had a bad recession. That was to be fair a process that went on for years involving as you say bob packwood and bill bradley in the senate and tip o oneill and a broad away of democrats and republicans. Which doesnt happen anymore. No, and also commonality. I was going out with a woman, what do you think of the kemproth bill . She says you ought to pay it. Is that the end there . No, it was not did you end the relationship there . It was like the climpble erc terms of a great dinner. You knew she was dumb, you were ready. You know its our producers birthday, well go away from this girl is not smart. When we come back, Mickey Drexel known as one of the innovators in apparel retailer giving up the raenz eins at j. Also by the way, 73rd anniversary of dday and the landing at normandy. More squawk on the street in a moment. Ready or not, here i come. Ek. anyone can dream. Making it a reality is the hard part. Northrop grumman command and control systems always let you see the complete picture. And were looking for a few dreamers to join us. [ eerie musthe mummy. T ] has returned. You wish to see. What i have seen . You will. When. I. Kill you. [ explosions ] [ intense music ] the mummy. Rated pg13. I left gap not feeling that great about myself. I was let go. You were fired. I was fired. Let go fired, whatever. One bad season . It was a tough year or two, and its okay. Are you pissed off still that you got fired . Not anymore. That was mickie drexel, five years ago, when we did a documentary on j. Crew called j. Crew and the man who dressed america. Drexel is stepping down as ceo of j. Crew. He will remain the chairman. New ceo james fwret, recently president of williamssonoma west elm unit. Hell start in july, the changes taking place amidst a significant slump in sales. Its a private company with a good deal of debt out there, its been paying Interest Payments and paying inkind, in other words with more debt. And along with tpg and leonard green, mr. Drexel owns a decent amount of the equity. Its been a rough go. Not without their own mistakes, jim, that had been made in terms of fashion taste, in terms of high price point they were at for some time. But theyre also fighting this tide that we talk about so often. Drexel himself has said its a sport. It used to be the main sport in this country, shopping. And it still may be for you, but its no longer the case for so many other people. Can you really turn things around when really what are you but a retailer that is leases and an artist at the top, somebody who had a great sense for the pulse of what was working in fashion, thats what it is. Its not a brick and moror retailer. Bunch of leases and somebody who has the feel until they dont. I wish mr. Brett the best of luck as new ceo but i think the days of the billiondollar brands are behind this country. Debris with you. I think that the concept of having the right merchandise at the right time has kind of abandoned us. Lululemon are a public company, they had great, great, great, great, the stock was not rewarded and one day they missed two months, and the stock has one of the biggest declines ever, and they have the hottest trend and someone was saying, in one of the articles, he was late to atleisure. Nothing is killing it. Tirico from pvh, what did he do . He successfully cut back america. And realized Tommy Hilfiger and he realized that calvin klein for europe. He knew that the mall was dead. He knew that the mall was dead. Merchants changed distribution all the time based on trends. That sort of cycles. This is not that. Youre not saying he thinks its a cycle. No, its not. Its a secular downtown. Xara has been able to move very, very quickly. Something mickey himself said technologically didnt see it coming. I think this is a horrible business, and it was not a horrible business, and i dont know who can solve this conundrum. This is where the weakness is at the mall is apparel. Right, and that is a key question for this company again, whether or not the new leadership and williamssonoma is down on his expit. Can he come in with new nideas and put this retailer on a new base . They are dealing with a large debtload which makes things more kif. When you deal with people, good quarter at pvh but mannys got, hes a merchandiser but as is mickey. Pvh is a fabulous company when it comes to inventory but look at north face. What an innovatoinnovator. The stock has done nothing. Look at macys. Theyre hurting in apparel. Kohls apparel, nordstrom. Apparel is not where anyone is making Urban Outfitters had great fashion. Have we seen the end of private equity trying to turn these around . J. Crew has a couple billion in debt. Thats a great question. I think its so risky. Its tough. Know man marcus is a private company, had its share of woes. Hudson bay has done a lot of deals buying saks. Real estate wise looked like it would pay off but the question of the underlying business for any number of the buyers in the private market. Mr. Brett well see in the end when you buy crew in the stores and next store and the next store and you get to the store thats what am i wearing, brione, the store that is they have, because you cant try that stuff on amazon. Costs too much. You got to say hey that looks good. One day well be Virtual Reality and brione looks dynamite on you and youll cut. Brione. Dont joke. After that ar demonstration at apple yesterday, that was crazy. Oh my. Walmart, but that could be a plus. Theyll use it for training apparently for their employees. Vr for training. Wet eight get cramers mad dash and one looking athe premarket. We are back in a minute. Say carl, we have a question about your brokerage fees. Fees . What did you have in mind . I dont know. 4. 95 per trade . Uhhh. And i was wondering if your brokerage offers some sort of guarantee . Guarantee . Where we can get our fees and commissions back if were not happy. So can you offer me what schwab is offering . Whats with all the questions . Ask your broker if theyre offering 4. 95 online equity trades and a satisfaction guarantee. If you dont like their answer, ask again at schwab. Its been over 100 years since the first stock index was created, as a benchmark for average. Yet a lot of people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Why invest in average . What in real time . Stomer insights from the data wait, our data center and our clouds cant connect . Michael, can we get this data to. . Look at me. Look at me. Look at me. You used to be the yes guy. What happened to that guy . Legacy technology can handcuff any company. But yes is here. So, youre saying we can cut delivery time . Yeah. With help from hpe, we can finally work the way we want to. With the right mix of hybrid it, everything computes. Less than six minutes before the opening bell here for tuesday. Let as go tote a mad dash. There was a company that had consistently unbelievable numbers, its the recreational Vehicle Business called thor and they bought j. Co and a bunch of things. Last quarter they missed badly and that was tough. David, last night sales up 56 , income plus 41 , operating cash flow plus 26. 2 , motorized rvs up huge versus last year and the stock is up very big. This is an experiential thing. You rent one or own one of the things it say Fabulous Business that slipped up and i think theyre back. Theyre in the penalty box since the last quarter and you can see people are saying maybe thor is back. Theyre the biggest, people say winneba winnebago. They are not even a tenth their size. This is the big gun, theyre airstream if you want to go for old but they are the ones that a lot of millenials love to rent these. They go, its a very fun and exciting thing, so watch thor. Its back and its bigger than ever. Well watch a lot of other things as well when we get the opening bell a few minutes from now. Stay with us. Were back on squawk on the street after this. Will you be ready when the moment turns romantic . Cialis for daily use treats ed and the urinary symptoms of bph. Tell your doctor about your medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, or adempas® for pulmonary hypertension, as this may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have a sudden decrease or loss of hearing or vision, or an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis. And get medical help right away. Steve, other than making me move stuff, im here at the Td Ameritrade trader offices. What are you working on . Let me show you.