 All right, good Tuesday morning everyone. It is time to talk about the markets with Jim Kramer on the floor of the New York Stock Exchange and Jim Intel Under Armour CEO's leaving Trump's Council. Yeah, Brian Krasanich and Kevin Plank joining Mr. Frazier these are people of Who recognize their various stakeholders and I think that mr. Krasanich saying listen the politics are too much and Kevin Plank making a statement Kevin Plank has a lot of endorse endorsees who are upset that he had been committed to begin with I mean I present Trump's polarizing figure To me, I would love to have the input to President Trump. I don't regard that as an appeasement position I don't regard that as being that I have no conscience I know that My old friend Larry Summers has a piece of this. How can you look at your kids? I would tell my kids listen I have to have influence I have a view if you don't like that I Understand, but I think that to be in the room and to try to influence the president is more important than the statement That's my own view. I've not been asked to come down, but I do think that That I understand anybody who wants to quit because there are he there are many things that he's doing that would upset one or Or more of your stakeholders whether it be your shareholders whether it be the people who work with you whether it be your customers And so it's a matter of conscience plus those three and I think that a lot of people Don't need this and one to make a statement In particular the idea that he did not call out Nazis Is rather extraordinary and then he but he did say it yesterday But it I'm not a CEO and I have my constituency is one of of Watching and and offering analysis and I think that I thought the president made a cheap shot at Ken Frazier about price of drugs But immediately on Twitter people say hey listen all those drugs are too expensive and the advertisers didn't really work I mean there is fault everywhere You cannot there isn't a CEO in the country who makes anything that you could not find fault it But I do say that there are people of consciousness People might not want to work with this man I adopted more of a Jeff ML view which is that if you can influence him That's better than just closing the door on him because once you close the door on this man It's never gonna open again because that's the way he is. I think there's a lot of fear of him I recognize that I think CEOs if you had a big defense contract I think you'd be fearful, but because there he is always expressed a desire to Hammer those who disagree with him He's a different kind of president and I think that people have to recognize that he's a different kind of president When you sign one with him you you are Accepting a lot of behavior and if you accept that behavior then you're gonna have to live with it Well, this is important perspective Jimmy you speak to more CEOs than anyone. Well, I mean, I think a lot of CEOs I speak to a very fearful They're fearful because of retribution they're fearful because they want to run their business and They're fearful because they view their job is as trying to work Not you for their country for their shareholders For their stakeholders For their customers for their employees and those are all things you have to juggle and when you add this layer of the president it's too much for some of them because The some of their stakeholders just think it's outrageous to work with this man at all And I look I get all sides of this I mean the president wants to be in touch with CEOs the CEOs sign one And that may be they sign on to some things that they regardless reprehensible so then they Resign out of conscience and I think that did everyone has a right to do all these things All right, Jim, let's move on to the markets the real bright spot this morning Home Depot reporting. What did you think stock is being killed? Yes, I think that there are people who still believe someone tweeted on my column that they used to get Shop all Amazon contractor now they all Home Depot now they get 30% Frank Blake in an interview with an Atlanta paper. He's the former CEO hold Amazon the Death Star I do think that no matter what Home Depot does or says people think that they are a Target of Amazon so therefore if you're a target of Amazon your stock doesn't get a 22 multiple it gets reduced But Jim as a gardener yourself would you want to buy gardening equipment from Amazon or Home Depot? I have bought gardening equipment online not from Amazon But specialized gardening equipment that was not available at home available at Home Depot Probably 80% of my garden spend is with Home Depot But they do have the same plants as everybody else I mean they use a company that has a that Scott's miracle that Scott's Has a own some of and everybody who does plants playing the guy do knows that you'll see the label And you know that most of them get the same I happen to have a particular Home Depot in Riverhead that has always been fabulous to me And very fast checkout line as opposed to Lowe's where it's very slow in the lines long. I like their flats I use them for everything. I don't use for seed other than some stuff that is for Isles I get from Union Square, but Then again, I mean there is a lot of stuff in there that you could easily buy from Amazon So I get it Contractors, I still think pull up all the time with the pickups and buy stuff It's like Costco, but your price sturdiness multiple goes down if you have something it can be Amazon All right another retailer talk about TJX companies You want it for the harder to be Amazon because they are the beneficiary of all the chaos in the brick-and-mortar world They have historically been able to come underneath the prices of Amazon Most of these retailers today are saying listen we can compete with Amazon The only people who compete with Amazon on price are off-price retailers particularly TJX because their strategy has always been to buy The stuff that is Over-inventory and TJX is still putting up stores because there's strong demand There's a there's a new TJX store coming up next to me in Brooklyn Because there's demand and I think that most of these companies do not have the demand to put up new stores They're closing a lot of stores. That's not the case with TJX another retailer to talk about coach reported comps Look, I think that Victor Luis when he bought Kate spade said they're going to change the way that Kate spade works They did do that and he added that that was going to be negative for their gross margins and negative for the short-term earnings period and that Kaibosh the stock I think it could be an opportunity when it settles down another retail stock just getting killed today advanced auto parts Yeah, you know these are I was going over with my team for action alerts And there this is one of the reasons why we sold snap one It's just too hard to own anything that's related to auto auto parts in part because the industry itself is stunned That business is down and it's not because of Amazon Amazon just moving into the business They have not been able to pinpoint why business is so bad I have been postulating that people may not be keeping their cars as long that betrayed them in because the cars advancements have actually been rather stark a collision avoidance, you know before a car You could keep for 12 years But now I think that what happens is the new cars have so many more advances that perhaps they're not being repaired as The older cars are not being repaired. They're being traded in but everyone's postulating What's going on? No one seems to have the silver bullet of what's really happening there? I don't know. Hopefully I'll listen to all the calls and be able to make a better judgment Advanced auto parts was at one time a great growth stock. It no longer is as is auto zone as is a rally They are no longer growth stocks. That's a great secular change that really snuck up on a lot of people are moving to some analysts Commentary Jim, what did you make of Goldman's upgrade of GoPro? Well there? I mean they ate chrome They said look we underestimated their ability to be able to fix their capital structure And that they have a new product that's historically moved the stock up the stock was On a percentage basis much lower. It's moved up. I look I understand why keep a cell on it It's the way I looked at it was the guy it crow and moved on and I think that's right and Jim I saw you mentioned wind resorts on squawk in the street, you know there That's a piece by Deutsche Bank very fine analysts noting that the palace is finally kicking in This is something that those of us who follow win has been Steve win has been saying when this kicks in It's going to be huge When he said that initially the stock was in the 50s and 60s and he bought a lot of stock because he has faith in himself I love CEOs like that. I love Steve win. All right, Jim. We'll wrap up as we always do with earnings to watch We have another retailer as we spoke about before target. Yeah, now targets being softened the stock is coming down And that's very good news. Remember they've been keeping their guidance low That's also good news because if the higher you keep your guidance the more likely that you are going to Overpromise They've been practicing you pod, which is what I taught the Eagles to do And we broke the huddle by saying you pod you need to under promise in Philadelphia And then over deliver because they'll boo you you need to under promise in the land of retail and over deliver because the I love that acronym. Thank you. And then one more on my list Cisco systems. Oh, okay, Cisco We sold Cisco If for action alerts and took the game we wanted to raise some cash and we put the money in Nvidia And if Nvidia comes down more, we will buy more Nvidia a good day for Everest. Thank you. Jim Grammer Thank you so much for more information on the stocks Jim mentioned. Please head to the street calm