 All right stocks are at record highs and we are breaking down retail earnings with Jim Kramer on the floor the New York Stock Exchange and Jim Let's begin with actual alerts plus holding TJX. Yes. Now. This is one where we've been trimming and trimming I wish I had sold some more at 80, but that's what I should have could I had downgraded it to a 2 because we were very concerned About this particular quarter. It looks like we were right to be concerned But what bothers me is we would have expected a better forecast because what TJ was going to be doing was buying all the JC penny and Macy's liquidation product and then be able to sell it at a marked up price We are waiting more information Do you buy back the stock that you sold at 78? That's what we're trying to figure out Obviously you want everything to be Home Depot. This was not Home Depot. Well, what did you make a Home Depot? Home Depot first could be pulled down. I mean, it's retail so bad that it's difficult because of the ETF for everybody ETF goes down or people short the ETF Home Depot can be challenged by that even being long Home Depot and short ETF is going to That's the RTH. It's going to be a problem. Well, Home Depot. I think is uniquely non-Amazonable Now it's funny because a lot of people were saying that this would be the quarter that you would see that they were Amazonable because Amazon has moved into tools, but right now it still looks like that hasn't happened. I Would say that when people go to Home Depot, they a lot of them go for a plants They go for things that are personal they go for things that are difficult to return And I think that that Home Depot is still in a special place as is Costco Costco because they Give you that great deal with the quit with the card So I like to think that Home Depot is head and shoulders above everybody, but I also know that the stock has run I'm not saying sell Home Depot. I'm saying that this market is very fickle about all retailers All right, and and one more retailer Dick's sporting goods Yeah, Dick's is kind of surprising because last week they reported an accounting error and at the same time they kind of said don't worry and What they were saying, I guess in retrospect was don't worry about the accounting But you should worry about the business and they did guide down and they were they missed their forecast They missed the forecast very big. They missed it like Macy's So you see and like JCPenney when you missed your forecast that big you really get taken to the woodshed TJX did not miss its forecast as big as those but of course missing it forecast is in this environment where so many companies are not missing Forecasts you tend to see money just flow out of the zone. The retail sector is going to be smaller by the time we're done with this All right, also Ford announcing some layoffs in Costco Yeah, you know what I think that Ford mark feels is under pressure the stock has been endlessly down since he came in But the same way, you know, you could argue that about GM I think the hidden thing that was in that that really intrigued me was the CTO came out and said And it might have been a separate interview that he's willing to do a deal with Waymo Now I spent some time in Silicon Valley with Ford where they're developing their autonomous car Which requires you know millions of chips and you don't get it right You have to put a lot of chips in a car And what I think is interesting was that they said they might be willing to partner with Waymo Waymo is with fiat now Waymo wants to be switzerland. They are making their own chips Waymo is alphabet and when I was in their car now the way you measure and this is really important the way you measure How a driverless car company is doing is you go to the california motor vehicles and you look for engagement Engagement means how many times did they have to disengage or engage in order to be able to stay on the road And Waymo has by far the best record. Ford does not so if you can imagine you have to get behind the wheel Too often with Ford versus what's going on with Waymo. So this is very positive for an action alerts name alphabet Another action alerts name western digital Eric Johnson has a great piece because it is just there's a lot of Posturing now I spoke to western digital the other day and it's very clear that they do have I think a very good court case Uh, and they also make it clear that arbitration, which is what they're asking for is certainly within the realm to ask What they don't really point out is that arbitration could take one to two years Now toshiba is obviously in such bad shape that they're what I think western digital is saying is listen We can hold you up to the point where we'll bankrupt you unless you come to the table Now this is really hardball and I'm sure if you're toshiba you hate these guys by now And it had been a good partnership Obviously toshiba just wants to run an auction What I think that western digital is doing here is making it so that fewer companies would want to be in the auction Because they know that they be part of a lawsuit or that they'd be held up And so it's a brilliant tactic by western digital. I don't know where they can succeed But western digital wants very much to be in they need to find a partner They need to make a bid this needs to go away. It hasn't yet All right another action alert same apple which according to an sec filing is Warren Buffett's third largest Yeah, well you look he loves it and remember he views it as a consumer product company not unlike a newell Not unlike a proctor and it does sell at a lower multiple than they do I mean, I think newell, which we own for action alerts and is doing quite well Is a very good analog remember Warren Buffett when he went into IBM He went in and that was a tech company um, he has shifted And is saying listen, I was wrong about IBM kind of going back to the idea that maybe he was That was not his forte But with apple he's saying look the loyalty Is so great here that people want to own an apple phone and what's important about that is that's what tim cook told me when I visited him He said look it's a consumer product and it's loved and we keep upgrading He was talking about maybe it's very funny because one of the things that tim cook was talking about is When he came up with the earbuds which I gave my wife from mother's day When he came up with the earbuds there were a lot of people who said who would want these Well, you know what the demand for them is so great is they can't keep up and why because people in the end Don't want the the collared by the uh strangle you call it the strangle and I think that that's again That's a consumer product innovation where these great Technical gurus tech gurus are saying is he hasn't innovated the consumer products people will be saying Oh my god, the guy innovates every iteration So if you move the company over into consumer product and they can perhaps charge a thousand dollars for a new phone What if that says to me is you have the greatest consumer product goods company ever? Do you have the greatest tech company post steve jobs? I don't care. I love my device I think there's a false premise that you know somehow you want to measure apple against uh Netflix, maybe you want to get against amazon they do that I want to measure it against every other company that makes consumer products It's best consumer product company I've ever seen Well, you mentioned clorox in that interview with him. Yeah, I mean clorox is a good company But they and they innovate but in the end the innovation that comes with each iteration of the iphone's rather extraordinary And I don't know why apple doesn't get more credit All right moving on on madash on squawk in the street. You talked about city group weighing in on fizer Yeah, this is a curious piece Um, they say that listen fizer probably has to buy bristol mires or allergen now allergen I've been saying and remember there's a conference called a moral for members of action alert for the club at 11 30 Where I am going to discuss the notion of what to do with allergen Um, allergen doesn't go up that there have been a couple of hedge funds that liquidated allergen Here's a sitting note that sitting note that basically says the fizer has to buy you the bristol or allergen Now bristol would be horribly dilutive allergen wouldn't and yet allergen goes down anyway. Dave tepper He he sold the stock. He had been big in it I caution people that in the end earnings matter more than what hedge funds do Earnings matter more than city saying that maybe fizer will buy allergen But what I didn't like about the piece was I mean in terms of just being concerned about fizer Was that they did say that there's a lot the pipeline's not as good as we thought and the earnings are a little bit higher You know the estimates are too high So fizer which has been doing nothing during this period as has murrick been doing nothing Um, a little i'm a little more circumspect Uh, you would expect in fizer bristol allergen lily The uh murk they're all just underperforming and uh j and j was up big on an upgrade the other day But in general, this has been a hard group to own versus owning umana and signa united health Which is my favorite in that group that I wish we hadn't sold for action alerts Okay, moving back to retail a little bit on staff trading and talked about nikey Yeah, um, you know, there's a piece this morning about about whether nikey's going to make the quarter and What I find fascinating is that nikey, this is the most prolonged period of underperformance for nikey I have seen now the comment this morning from research was about how there's a A dollar problem, uh, and it's interesting because remember the dollar hasn't been that strong I believe in the euro I think the euro is going up another theme for tomorrow at 11 30 on my conference call You really want to tend this thing or sign up for action alerts because it's going to be a very good call But uh, I think that nikey is still being uh hurt by uh by adidas, which you know There isn't a retailer that doesn't talk about adidas being very strong looking coals and being hurt by uh by by Underarmor now I have a piece this morning a real money saying that underarmor is not getting any respect It's all the way back to where it was when I ported that quarter that was conceived to be that was perceived to be the bottom quarter But a power remains shoes remain very challenged a power remains very challenged don't want to beat it All right. So with that, what are you expecting from target's results on wednesday? You know, I've got to tell you after listening to these calls I mean targets should be down more into the quarter. You know, it should be down one of the quarter. I I don't know um, how target Look anything's possible because now we've had a lot of stocks softened and there should be a lot of puts being bought on target But uh, it is hard to see how target can Maneuver because it doesn't have what home depot has it's much more like a coals much more like a Nordstrom It does have a good discount discounting business. Um, but it's challenged and and I think that if I I know I I've got to tell you I'm concerned. I'm concerned about target All right, and then alibaba is out on thursday alibaba is been a horse Uh, I have liked alibaba ever since delivering alfa last year Which was the cnbc conference where I got to drill them I even used some questions from my old friend herb greenberg And I just kept coming back with answers that I liked and the stock is now up about 35 from that interview But you remember when they're good like amazon they don't quit So I think that alibaba is going to be fine. Um, it could it go down? I mean anything can go down when it's been straight up But I think alibaba's good company. All right, and the last earnings we're watching sisco Cisco yesterday moved up very big on a recommendation. I always like them when they don't go up big ahead Cisco does what we want to hear from sisco We want to hear from chuck robbins is that they are really making inroads and the soup denotes offering for a cyber security Because what's happened is is that we know from that? We want to cry hack is that we saw proof point go up big proof point is a email company We saw palo alto go up palo alto is a very big Enemy of sisco. So we want to know whether sisco's cyber security business is doing well That's an area that chuck has emphasized and that could be one of the reasons why it might be good All right, jim. Thank you so much and we just want to remind everyone Watching that you have a chance to meet jim kramer on may 23rd at an event at bar san miguel But jim space is filling up. Yeah, I mean, I think this time you have to move. Um, we had a really good crowd Worked there this weekend. It's just Look, here's what's going on. Okay It's a chance you watch the show and then i'm going to talk about the show the making of the show And people have done that i usually I've only had a few people ever so-called backstage and this is one of those operation This is one of those opportunities and of course we'll take pictures of everybody which i know people like i've done I do one or two live shows a year At this at cmbc. This will be kind of like that and will be informal We'll talk about stocks We'll talk about some of the stocks that that are owned or that i like But i want people to join the club by going to this dinner and it's a great way to become a member All right, it's a fantastic event and click the link a lot of seats left and i'm not trying to stand beat I just know because I look at the numbers every day. Move fast everyone. All right, jim crimmer Thank you so much and for more on the stocks jim mentioned, please head back to the street.com