long has now become a sad chronic under-performer. how about kroger here's the best in supermarkets, best by far. today, reported the company slashed its forecast gigantically announcing the competition will force them to do anything they can which says on price, that means the razor thin margins got that much thinner. there was a time these guys were about as reliable as a company could be you could set your watch now, kroger stock is too prone to downside shocks to understand kroger, kroger, down 18.8% today. then there's new corps -- nucor. when we speak of two companies we speak of nucor and everyone else it is the best managed the company has been the best on the show for years and hope it stays that way i even have an nucor shirt i wore this weekend but my wife said it made me look like i shrunk a couple sizes. probably true. today, they pre-announced a weaker than expected quarter from the sounds it just started. i know them as a true under-promise and over-deliver company. i hope when it talks about the hot environment it's from the trading partners, chinese and koreans and

whole foods. you know yesterday was a day for kroger that was tough today will be an even tougher day. this is a game changer this is it this is what everybody thought could happen they will now dominate food within the next two years. wow. >> just yesterday we were reading a piece in texas monthly, john mackey, basically going after activists saying they're not interested in the long term. more interested in the short term stock was halted i would say about four or five minutes ago for news pending but this -- this is -- >> wow. >> a day we'll remember for a long time. >> yes, we will. i guess mackie had enough of them he's one tough -- he's a tough guy, all right now, let me just say this is a reordering because what amazon can do is use this as a -- now, there's not that many stores hay can do 1,200 stores. they have a third of that, but what this says is that amazon wants to do for food which they have struggled with what they did for every other part of retail it is get out of dodge time. two german companies have moved in aggressively, walmart, target everybody who sells food ev

have food input prices, food prices going down. that's what's been killing kroger as much as anything the competitive space gets worse. that's a big issue. >> that doesn't change i didn't get today, i'll be skeptical the deal, investors like it. you got to listen to the market. a, amazon has been in grocery a while. it's not done great. it's maybe the one seconder they have not remember cosmo.com. >> i thought. >> it was an offer that was an amazon-invested company. the industry, karen, was already extremely narrow margins you think there the a way for amazon to do its special sauce in this industry >> i think that if anybody can, amazon can, just because of scale. but if you look at, you know, you look at something like unfi, united national food, a distributor to whole foods so this is a terrible announcement for them. the stock got crushed. i'm surprised it wasn't down more they have to be very afraid of their business amazon has to come in and absolutely crush their margins they're not buying what whole foods makes now. >> i assume, though, that dan oomson will have to bu

industry felt pain. kroger's and other markets all tumb tumbled. sara eisen has more on the threat to the grocery industry. >> reporter: the grocery industry in the u.s. may be forever different. amazon's bid to buy whole foods sent stocks of grocery stores, from kroger to walmart, tumbling. why? amazon has deep pockets. that means it can lower prices of whole food's natural and organic food products, leaving other groceries no choice but to cut prices as well. lower prices might even make that organic food more accessible to a wirder customer base and steal customers. that's why the packaged food companies like hershey's also saw stocks fall on the news. amazon has a broad national reach through its prime program, prime fresh, prime pantry, and other lines that could help sell whole foods branded products all over the country, far beyond the 400-plus stories that whole foos operates. but the biggest question for the grocery industry, how does appears see the future of groceries? is it online, in-store, some sort of hybrid? we don't know yet, but the biggest online retailer buying one

interview with the ceo of kroger. stock was hit hard this is the first time we're hearing from the country's biggest grosser about what the future holds for the entire industry >>> first up this morning, eu anti-trust regulators hitting google with a record fine. commissioner vesta gechlt r tweeted google gave illegal advantage to own comparison shopping service by abusing its search dominance t must stop and pay fine of 2.4 billion euros. commissioner vestager will be a guest in the next hour for its part, google says they respectfully disagree and will consider the option they have for an appeal, sara. >> seven years in the making it was a long-running probe. eye-popping numbers, $2.7 billion more than most people anticipated. the eu could have gone even further and fined up to 10% of total revenues, a fine like $10 billion from google. still, this is a big deal. the other question we'll ask commissioner vestager about is how google addresses it. it's sort of left up to them how they want to deal with this. but it gets into their business model of posting ads on their shopping se

>> buy oracle, sell tesla. >> no call spreads in tesla. >> a fine risk in kroger >> kroger call spreads. >> yeah. >> we have 20 seconds shot segment. you did an 8 so i can sit here and look at e me tthcarawo seconds we'll see "mad money" with jim starts right now >>> my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer, welcome to "mad money," welcome to cramerica some people want to make friends, i'm just trying to make you money. my job is not just to make friends, but to educate and teach you and maybe put it into perspective. call me at 1-800-747-cnbc or tweet me @jimcramer. how do you say game changer? how do you say disruption? how do you say brand-new world >> house of pleasure >> i'll tell you how to say it, amazon buying whole foods for 18 billion. s&p inched up .02% and the nasdaq declined .22%. this is a day that will live in infamy for everyone in many country. i don't care if you're kroger or walmart or costco or

conversation again >> my pleasure good luck out there. >> when we come back, kroger ceo sitting down with us earlier his comments in an exclusive interview and thoughts on amazon's purchase of whole foods. but first, take a look at shares of sprint today. the wireless service provider entering exclusive talks with charter and our parent company comcast to bolster the service capabilities sprint is up 5.5%. comcast and charter under pressure verizon weighing down the dow. (baby crying) ♪ minutes old. ♪ a baby's skin is never more delicate. ♪ what do hospitals use to wash and protect it? ♪ johnson's® the number 1 choices in hospitals. >>> walmart stocks, food suppliers, supermarkets all dropped on the news of amazon entering the market number one stock was hit harder than kroger, though, which dropped 9% on the day it came after weaker than expected earnings. kroger's ceo just joined us in the last hour to respond for the first time here's his reaction when we asked him what he thought when he heard that amazon is buying whole foods. >> for me, it wasn't as much of a surprise as it

value also a big distributor down 13% kroger, another 10%, kroger down 30% in a week. here's the question. if you're a bargain hunter or a risk taker, any of those names worth their money? >> i think kroger could be and first things first, this whole foods amazon deal is not going to happen until really the second half and it's going to take a while for this to be implemented and really take its toll on grocers. kroger was down 18% on thursday. they guided down about 10% from an eps standpoint. the stock was down 18% and down 11 and a half. so you've got a 30% decline in just a few days here this thing trades 11 tiems here's a company with $120 billion in sales. that's almost as much as amazon had last year. they're buying whole foods that had about $15 billion in sales look at that chart right there i think this got a little overdone in the near term. if you start seeing other retailers poking around a bit -- >> actually whole foods does not have top line and they have margin compression and there are other things that grocers could do to expand their margin. blue apron a small

entire grocery industry look at stocks like kroger, which is the biggest u.s. pure play grocer. walmart actually has the biggest grocery business weighing on the dow names like costco and target which have also been big in food up to yesterday, guys, the story in grocery with kroger shares down 18% was a looming price war as everyone was racing to the bottom and it was hurting kroger's margins, caused a 10% lower guidance than people were expecting. today, that is a very different story. it is the elephant in the room amazon, technology, the merging of ordering groceries online with physical brick and mortar and what on earth that's going to mean for the future of this industry. >> kroger 31 and change just two days ago now $24.40. joining us this morning, hans joins us from the new york stock exchange, rick from american apparel and foot war association ceo to talk about this deal. it's good to have you, hans, welcome. >> thank you, carl. >> a lot of this has happened because of how logistics have improved delivery of food, right? >> right. >> and customers' ability to be assu

contrarian call on kroger and now, he has a wii way to make even more cash plus, faang has been a disaster, but if you've lost money, we'll show you how you can get some of that money back for next to nothing. the strategy when options action returns. hey gary, what are you doing? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade. ♪ ♪ welcome to holiday inn! ♪ ♪ thank you! ♪ ♪ wait, i have something for you! ♪ ♪ making every stay a special stay. holiday inn, smiles ahead. whether for big meetings or little getaways, member always save more at holidayinn.com hthis bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs ac

kroger and others. we do want to focus on apple the price has been checkered >> dreadful. >> i think with each administration in every country in the world, there are things you disagree and things you agree, and you look to find common ground and try to influence the things you don't if you don't show up, i think that's the worst scenario because then you're quiet and this doesn't do your cause any good >> he did say he and the president are dramatically different. >> yes >> is the stock reflecting china? >> the stock went up a lot after buffett got involved i think there was too much talk about a super cycle. a lot of people are talking about how there's a conflict with qualcomm that kind of went up about the fastest chip and came back down tech has been acting -- a lot of tech has been acting kind of problematic here, all the companies that certainly in to apple, even jaybill said things are strong and cook created all sorts of apps but then again, i don't know what the president really wants from these people. more jobs here it becomes a little trump fatigue. trump fatigue. >> ye

kroger. >> which we'll get to in a bit. >> because they employ a lot of people. >> kroger -- >> a big employer. >> well, guides to $2 to $2.05 they were just on "squawk" a few moments ago. a margin story. >> this is a dogfight. and yesterday we didn't talk about whole foods because john mackey, he's the ceo, he was saying that -- a bunch of greedy bastards that's janet trying to put whole foods in play. i'm not saying that's disingenuous, but remember walmart wants to own food. amazon wants to too, but there's only so much they could do although the packaging for cold foods isn't bad for amazon we order a lot of amazon food now. but this walmart is not to be reckoned with. i mean, they are just coming in with guns blazing. they're unbelievable. >> yeah. kroger is going to be the focus at the open for sure brief pivot to politics here special counsel robert mueller reportedly expanding his investigation beyond russia's role in the election according to "the washington post. the probe now includes an examination of whether the president attempted to obstruct justice. he tweeted they mad

value, also a big distributor down 13%, kroger, wow, guy, another hit, for the kr croaker down 30% in a week here's the question, dan, nathan, if you are a bargain hunter or a risk taker, any of else to names worth their money? >> first things first, this croaker or excuse me the whole foods amazon deal will not happen until the second half it will take a while to be implemented and take its toll. in the meantime, like you said, kroger was down 18th%. they guided down the balance of the year down 10% from an etf stand point t. stock was down 18th% and today down 11-and-a-half. so there you go, you got about 30% decline in a few days here, this thing trades 11 times they're expected to grow sales, this company has $120 billion if sales. they're buying whole foods that had about $15 billion in sales look at that cart right there. i think this thing got a little overdone, especially if you see other retailers poking around, thinking how they can do a 23. >> it's interesting, the top line revenue growth, we'll foods does not have top line growth. they have margin compression there are other

you guys buy any of these names? >> no, i think kroger -- i saw jim cramer this morning, he said he wouldn't touch kroger i understand what he means the bull's-eye is squarely on their back right now i'll say this, you had two monster days of volume in a stock, valuation, i get it, the margins are being constricted. valuations at some point becomes comp compelling kroger is worth a look on the long side. >> i agree with that you see a move in the next few months at least it to the mid 20s. whatever amazon is going to do with whole foods, it's going to take months if not years. >> i was going to say, anything they do isn't happening tomorrow >> the deal isn't going to close until the second half. maybe has a standalone whole foods as 2% of the u.s. grocery -- >> isn't that high >> it's just 2%. >> i'll say this, i think you want to get away from the grocery stocks, think about what amazon did with whole foods, think of a company like macy's, distribution, the brand, the potential to monetize some of that real estate close a lot of it down maybe use it as logistic centers. >> are you

krogers to supervalue target they all lost 25 billion collectively in market cap meanwhile, amazon as you say, up over 15 billion in market cap as they're spending 13 billion. i thought this was a great deal. i still believe this is a great deal i talked about the lodgistics and layout that they want to build out and who has it already. the things that they don't have already. target has it. walmart has it a couple of other retailers has it, ross, but what i'm looking at, i thought this was a brilliant play if you just did the math, 450 store, 250 bucks a square foot, figure 40 to 50,000, they paid between 5 and 6 billion, they would have built cinder block warehouses for that. now, they have whole foods >> in upper echelon neighborhoods, let's think about where whole feoods is. where those buildings are located right now. and you know who else is getting hit right now, big pharmaceutical drug companies. you look at cvs and wall greens, there's a reason they're down today. amazon just basically put a distribution center in upper income neighborhoods to be able to distribute as well

foods. liz: you look at action in target and kroger and wal-mart is selloff mode. this is a direct strike at wal-mart. wal-mart gets about a fifth of its sales from groceries, trying to take on amazon in other ways, in general, selling. stuart: let me chime in fast. i've got kroger down 15%. target down almost 10%, dollar general is down 8%, and i've got costco down 6%. those are enormous changes in price of the stock. >> i've said on the show, a month ago, that amazon was going to have a mountain to climb with grocery. this puts them in the sector they need to be in. these are the retailers that liz mentioned are in deep trouble if amazon decides to go this route because they will dominate. >> you said they want to dominate groceries, that's the strategy here. >> the only strategy that bezos had was inner city and now they're going off wal-mart. stuart: let's bring in todd horowitz. we're talking amazon dominating grocery, any argument with that. >> good morning, mr. varney, no, they want to nominate everything. a year ago i said on your show, amazon is trying to take over the wor

engage amazon and walmart,more like albertsons, kroger, a defensive play. >> you mentioned the big shareholders. what about partners and rosenstein? because they were the entity that was pushing for change at whole foods. whole foods recently reported some different directors as a defensive mood. have we heard from jama today? matt: i think they have about $300 million on their stake, so short-term holders and the stock, this is a good day, but for long-term holders, i think the stock could go better over the next three years. julia: and that is the point. if you want to see some kind of shift, you have the big price potentially here. but what really changes for the business itself if the ceo is not moving? matt: that is true. ,ac will stay in place obviously, if this deal goes through, will have a lot more capital to work with. it is a smaller format, these 365 stores are seen as the future of where this is going, so it is definitely a win for mackey. he has to sort of keep his empire in place, so to speak. people are acquitting this to the zap bows deal coming online. -- zap bows

gone rotten, kroger today all that and much more coming up on "power lunch. it's all yours. wow! record time. ♪ at cognizant, we're helping today's leading life sciences companies go beyond developing prescriptions to offering subscriptions with personalized, real-time advice for life-long, healthy living. honey? you almost done? nope. ♪ get ready, because we're helping leading companies lead with digital. . >>> wells fargo according to a report of the "new york times" accused of making unauthorized changes to home mortgages for customers who are in bankruptcy. wells fargo deny it is claims. telling cnbc no event will we modify an application without giving signed documents from the customer joining us is gretchen morgan son. great to have you with us. you read a story like this and you think again. what did the bank allegedly do >> as you know, bankruptcy situations are extremely rules oriented, they have to be approved by the bankruptcy court. the creditor and borrower has to agree to terms everything has to be approved. but what these borrowers say happened to them, wells

plan discussing yesterday's investor event cutting dividends, and shares down 7%. >>> kroger at a 52-week low, downgraded the stock to neutral from buy trimming the target, and yesterday, the supermarket giant cut full year earnings guidance, and the ceo explained what led to the cut on "squawk box" earlier today >> well, i look at my grocery category, which is 45% of the sales, and ended the quarter just about flat. it was bouncy in the quarter, so looks like there's a little bit of inflation creeping back in there. produce was getting inflationary during the quarter, protein is deinflationary so there is pressure on it >> kroger shares down 18% in the session today. 24 and change. look at the effect across the rest of the grocery screen sprouts farmers down, whole foods down, and walmart down as well extraordinary. >> absolutely extraordinary. they hit the earnings number, but the guidance was the miss, despite the cfo saying we are seeing price inflation coming back, so a big surprise on the guidance relative to the earnings, and his phrase there, deflation on top of inflation as

thinks kroger could make a play. he said their capabilities with big data and analytics in grocery could be more critical than what amazon offers whole foods. he says an offer could be considered an offensive and defensive move at $50 per share. they said that would be about neutral to their earnings. now, john mackie has a duty to accept the higher offer, but what we've heard, he's pretty e ma' nam mored with amazon and jeff bezos. >> thank you we thought this would be the perfect time to play the whole foods dating game. our four traders are are standing by to reveal who they think should sweep in and block amazon's deal. bachelor number one the tim seymour. the ladies like to call him the ambassador been neen to take exotic trips to canada. he's got a mind for business but a mullet for sin and next is brian kelly. he loves o eat and has expensive tastes just tony expect him to pick up the tab. bachelor number three, steve grasso, a sweet guy with a sensitive side, but be warned, he gets a little grumpy when you talk about his one true love, trump. and last but not least, guy, a

will be unthinkable from kroger's point of view. they can afford to take some loss on products to capture attention. amazon can offer delivery systems, the echo to order so easily as you look around to what you need. you can install the button to buy fresh and prepared foods and in terms of keeping costs down, amazon is the best check out technology where you can use your apple phone, something that saves a hunlge amount in labor costs. a lot of people seem to be caught up in how expensive whole stock food is right now. so who would want to go there? that's presuming amazon won't change pricing for the better. nobody i know believes that whole foods offers bad food, just the opposite. now they can sell it at reasonable prices or sell close to cost if they want to make an imact. so not only do i think the negative reaction will prove to be right, i recognize there will be some remarkable transformations ahead. i am sure in the short term traders will want to buy kroger. that's why it rallied today. i could argue that the two near german entrants would be enough to send kroger down

the companies we just looked at, kroger, target, costco, walmart all trading off sharply and kroger's in particular dropped 18% yesterday, if you recall it's because the company came out with a disappointing forecast. not only has it been hit to some degree by food deflation also, there are concerns about an increasingly tough price war with some of the other groceries, especially when you have the german discount grocer now entering the united states and all of these in the market as well. all of that is creating some concerns here about those operating margins. target is interesting that is down so much, that company only one quarter of its sales from groceries, specifically walmart gets about half of the sales from the grocery aisle. the other area we are seeing a big effect is on whole foods suppliers. take a look here, or just wholesalers generally, a insula steel trading lower, spartan nash down 7%. and united national is trading off sharply as well. will these companies have less negotiating power when they are dealing with amazon is a parent company? will even keep those relat

amazon's ambitions. it is in a better position than other retailers such as kroger, costco or target coming in over the top. (steve) the state of california is expanding its own travel (steve) over the top.target coming in kroger, costco or retailers such as than other a better position than other retailers such as kroger, costco or target coming in over the top. ♪ ♪ (vo) you can pass down a subaru forester. (dad) she's all yours. (vo) but you get to keep the memories. love. it's what makes a subaru, a subaru. (steve) the state of california is expanding its own travel ban tonight. north carolina, kansas, mississippi and tennessee are already on the list. today, the state attorney general added texas, alabama, south dakota and kentucky. this means the state will not pay for employees to travel those states. california's attorney general claims thoses states have laws which discriminate against people who are lesbian, gay, bisexual and transgender .. (steve) president trump has kept washington guessing for more than a month .. on whether or not there are recordings of his conversa

. ask where that leaves your neighborhood kroger and costco. hands are expected to president emmanuel macron a legislative majority, completing his takeover of the french system. president trump's actions on cuba will turn to russia and china next. we will talk to senator patrick leahy. joe: let's look at where major averages stand. abigail doolittle standing by. abigail: thanks. we are looking at majorly averages, but the dow is creeping ever so slightly higher, not so far from putting itself on pace for a record close, but the nasdaq taking lower, down near session lows, so that is a bit of a divergence . it exists on the week as well. the dow is on pace for its fourth week higher in a row, while the nasdaq and s&p 500 both lower on the week for a second week in a row. perhaps probably on that tech selloff, which has really taken a backseat to the big news of the day, which we will get to in a moment. here is that tech selloff on the week. apple, alphabet, netflix lower on the week, but facebook higher by about 25 percent. the question here -- which side wins? will the gain

perhaps kroger who had been rumored to be interested might jump in. we will keep you posted. you might think you would see a halo effect, that's not what's happening at all. wal-mart down a full 5 percentage points. this even as it makes its own deal snatching up the men's company. the food-chain kroger is the biggest loser in s&p 500, look at this, hitting a three-year low. dropping right now by 9 and throe quarters percent. yesterday it had a rough day because it warren for the third quarter. both feeling the heat that amazon can become a major disruptor in the industry with power and finally we should look at sprouts, organic grocier, kroger and albertson's. we have sprouts getting swamped down 5 and a half percent at the very moment. global news just moments ago president trump announced the rolling back of what he calls the one-sided obama era rule that eased trade and travel business restrictions on cuba between the u.s. and cuba and played into the hands of an oppressive cuban regime who the president says does not offer anything in return and does not respect human rights

of the morning, a couple names you are watching, kroger is one to watch, shares of the grocery giant fell 20% yesterday after the company lowered its full-year earnings forecast, kroger blamed the move on higher product costs, kroger shares to fractionally hire. we are watching amazon, the company has been granted a patent that can stop in-store shoppers from comparing prices on their phones. the technology allows stores to see what a shopper is searching for while connected to its wi-fi. or suggesting comparable items, or block access to competitive content. amazon shares are up. and on their wi-fi. i don't think amazon could stop you from being on your mobile signal. you should be able to. don't know if i'm in amazon or not. >> nationwide manhunt ended for tennessee law enforcement, lauren simonetti -- >> two in may to escape from a georgia prison on tuesday. a tennessee man's car, a policeman hold the fugitive that gunpoint after law enforcement game to arrest them. a tennessee couple was held hostage tying them up with the rope, eating their food and stealing their stuff. ricky d

of the names you will see have some movement would be kroger, given the rumor a few weeks ago related to them buying whole foods as well as well as them buying sprouts. kroger might get a bit more aggressive on the acquisition front. they took their foot off the pedal since a few acquisitions last year, and now they are saying ok, maybe we do not need to be -- do need to be a little bit more aggressive, especially in the organic market space. >> explain that to me, that other grocery companies might want to get more aggressive in acquiring companies. how does that work cap of this is not to grocery companies getting together, this is a big online company buying a grocery company. how does it help for kroger to get together with another grocery company to compete with this? >> correct. amazon is pushing more into that organic market space related to its prime is this related -- prime business related to amazon fresh business. they are blending the online and brick-and-mortar concept, we see things like it's a cart coming about that are helping -- in instacart coming up that are helping

gives it the financial power to get there faster, threatening other players like kroger and walmart running thin grocery margins and likely ups the possibility for other consolidation in the industry. walmart is the world's largest retailer and grocer saying the customers look for shopping experiences that's providing everyday low pricing and a mix of channels to meet their needs. we feel great about the position with more than 4500 stores around the country and fast growing e-commerce and online grocery businesses the bigger concern from analysts is if amazon begins to use the whole foods stores as distribution or pickup points, lowering the cost of the last mile giving shoppers, again, another option to get their packages faster or in a way that may be more convenient for some of them, say, driving on the way home from work kelly? >> yeah, absolutely, stay right there. a deeper dive into the deal today, and, in fact, went into whole foods a little bit away from here in manhattan to see what customers think about the deal here's some of what they had to say. >> hopefully it -- pric

marker will be here for the hour. >>> and kroger is set to report quarterly results this morning the ceo will join us first on cnbc stay tuned "squawk box" will be right back. >> in case you're wondering, i'm a security robot so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley. box. time for the executive edge. terrorist attacks, security breaches have communities everywhere on high alert joining us now with one high-tech way to possibly secure your community

>> thank you we have more trades ahead in the blitz including kroger, newcore, underarm under armur and more hey, i've got the trend analysis. hey. hi. hi. you guys going to the company picnic this weekend? picnics are delightful. oh, wish we could. but we're stuck here catching up on claims. but we just compared historical claims to coverages. but we have those new audits. my natural language api can help us score those by noon. great. see you guys there. we would not miss it. watson, you gotta learn how to take a hint. i love to learn. watson, you gotta learn how to take a hint. at crowne plaza we know business travel isn't just business. there's this. 'a bit of this. why not? your hotel should make it easy to do all the things you do. which is what we do. crowne plaza. we're all business, mostly. when this guy got a flat tire in the middle of the night, so he got home safe. yeah, my dad says our insurance doesn't have that. what?! you can leave worry behind when liberty stands with you™. liberty mutual insurance. we created the ripple: the doughnut in a doughnut in a doughnut. righ

call of the day is two downgrades on grocery stores costco downgraded to hold and kroger downgraded to equal weight at morgan stanley >> super helpful, by the way >> well, i want to -- let's talk, pete let's take the costco one at deutsche they question whether it's past its prime. >> right disagree i actually like what -- >> it was in its prime >> yep >> now they're out of it >> on wednesday. >> now it's past its prime >> when a 1% participant in the market place, whole foods, suddenly that's going to eat away at them i don't really believe that, scott. when you look at costco, you see, they've got scale, clearly. they've got that annuity and the gas is always so much more inexpensive high do that i do that they do it to draw people in their traffic numbers the last couple of quarters continue to grow not shrink they've been growing there's a lot of reasons when you look at this and just say, it's an easy call by an analyst just to say, costco's all done >> if you are in costco and worried about amazon being an entrant into the food -- they were already in the food space >> amazon

turf. kroger, target, costco and walmart shares falling on the news. >> for the general grocery store, i want to say, boy, it's tough. >> reporter: this is the latest ambitious move by amazon founder jeff bezos expanding his empire into traditional stores and upending the shopping cart. >>> all right. here are 4 things to know on this saturday fatac. and the alexandria baseb shooter james hodgkinson had a list of republicans on him. officials don't know exactly what the list means. >>> and the japanese coast guard is leading the search for seven u.s. sailors who went missing. all this happened after their u.s. destroyer collided with a container ship off the coast of japan. >>> and metro's final safetrack surge gets underway tomorrow. and that means tracks shut down between shady grove and twinbrook until june 25th. >>> and we do want to remind you of the breaking news we just got into the d into the m trial of bill cosby. >> and he could be retried on the same charges with other many the past as well. so tl, muggy afternoon into thed-ngh t neighborhood. and then tomorrow, another cha

. we will continue to talk about it. still ahead, today's options insight. , tradinglking kroger between $29 and $30 since march. more details next. from new york, this is bloomberg. ♪ julia: this is bloomberg markets. scarlet: it is time for options insight with julie hyman. julie: joining me from the cbo for today's options insight, from bullseye option. allen, good to see you. ask you about oil today. that is something you mentioned in your notes today, that we have seen, traditionally, the oil and dollar going in opposite directions. that is not happening lately. what does that tell you? >> i'm not exactly sure what it means, but i'm looking for crude to find bottom. it's not been helped by the dollar at all. i have nothing bad to say about the market. i think we can get another catalyst or boost when crude oil starts going down. -- stops going down. it's only been a couple days and that overall trend is strong. it's been a little bit of a dragon it can be a catalyst and start to spark up. in terms of options activity, have you seen a pickup and bullish activity? i have see

, on kroger, plunging 17.5% pace for the worst day since 1999. this is after its last the full-year earnings. they also posted a decline for same-store sales for the second quarter in a row. and grocery deflation is really behind that weakness. we see that in sympathy we have spread trading lower and walmart trading lower. it is interesting for walmart because the competition is said to be one of the things eating into kroger. overall space declined. here is a five-day charge of the 4%.500 check index, down outperform 2%,s the best sector. in the bloomberg very quickly, looking at the tv 9101, this is the trump trade after the election. blue is s&p 500 that is a 13%, then we have energy lacking on oil declines. in yellow we have the banking sector, but here we have tech took over. as with the tech selloff sector rotation, we have banks on top of the trump trade. banks: we will be talking , thank you for that timing. goldman sachs facing some tough new issues at goldman about first quarter bond trading areas -- trading. the rising threat of syntax and others, the next guest said be w

kroger the big grocery chain warning about the outlook for the remainder of the year. food deflation is a tremendous overhang in the group. >> it has got an downgrade from ken goldman from jpmorgan. i've been going back and forth with jim cramer about the story. he says even though they're a good operator and has been one of the best in business, it's a tough business right now you have this price competition coming from walmart, target, aldi and lidl, another german retailer that made its debut yesterday in the united states >> in the best of times, 1.5% profit margins >> already razor thin. he said that in the conference call the management seemed to recognize this is a game of straight to the bottom in terms of prices. my chart of the week is nike which got beat up on announcements. another stock that i follow not to the extent of kroger. thanks for being here. have a good weenekd, everybody that does it for "worldwide exchange." "squawk box" is up next. nts eve. ddos campaigns, ransomware, malware attacks... actually, we just handled all the priority threats. you did th

walmart to kroger's is into organics. a lot is needed in terms of investment and rehabilitating. >> does that mean that he will be hands-off? >> not as much. i don't know that jeff bezos is that hands-off with the washington post. he gave the company a lot of leeway, the money to bring a technology orientation to the newspaper. >> you also cover alibaba. they have been investing billions of dollars in grocery stores across the other pond. what do you make of this new battlelines being drawn? >> largely, amazon has been cut. i think the difference between a markets is that the u.s. is a much more developed a traditional market. we like both companies fundamentally. both can do well in their respective areas. about what that -- they have been introducing hartwell. -- hardware. they're trying to make it easier for people to buy impulse purchases from their home. there is the -- one, you can scan a barcode or say something into it, it is those -- buttons where you can press a button to reorder your tied automatically. de automatically. you can imagine amazon -- buttons. you can imagine an ec

in your windshield. an atlanta woman was pulling out of kroger. and the guy decided to stomp the yard on the windshield. she didn't know why they did it. a kroger spokesperson said this is the penalty for having more than 10 items in an express checkout lane. i was just kidding. they won't break your windshield. they waterboard you instead. that's also a joke. but the real penalty is having to watch an entire season of "girls" on hbo. so glad i get to see so much of lena dunham. if you ever wondered what it was like to go on a road trip with president trump? a navigation company is offering a donald trump gps that will give you directions in the voice of the 5th president. >> you have reached your destination. let's make navigation great again, okay? nnedy: at first i thought this was a sketch on "saturday night live." but it dawned on might can't be because it's kind of funny. the company also has a hillary clinton gps. but they are getting a lot of complaints on that one because for some reason it doesn't go know how to get to washington, d.c. and if that weren't bad enough, it

rest of the space. i say even kroger who is the best groesher in the world, not going to be pretty it will push roi down, not up. unless you're someone with a niche, i wouldn't want to be in grocery. going to be the ugliest thing. the consumer should be thrilled. prices should come down. >> kroger has been getting crushed. had a rough couple weeks >> aldi in the country at one end, walmart pressing what they're doing, amazon taking over as much as they can online, buy in store, pick up in store, all the things you can do with 460 locations, i thought it was a great move for amazon. >> great stuff thank you very much. >>> still to come. we take you to washington. this week will be critical for the senate health care bill. stick around "worldwide exchange" back a up mutesin >>> welcome back to "worldwide exchange." let's get you up to speed. futures high by two-tenths or three-tenths%. nasdaq was the performer up nearly 2%. energy, underperformer down 2.8% wti slip the best part of 4%. but rebounding 53.4 >>> to politics. the gop health care bill faces a big test this week congressio

everyone from walmart to kroger's is into organics. i don't know that the history of m&a and amazon is the guide. this is more to jeff bezos' personal acquisition. a lot is needed in terms of investment and rehabilitating. emily: does that mean that he will be hands-off? >> probably not as much. i don't know that jeff bezos is that hands-off with the washington post. he gave the company a lot of leeway, the money to bring a technology orientation to the newspaper. i think it will be the same way he will be introducing tech and pay to whole foods. emily: you also cover alibaba. they have been investing billions of dollars in grocery stores across the other pond. what do you make of this new battleline being drawn? largely, amazon has been u.s., india. i think the difference between a markets is that the u.s. is a much more developed a traditional market. china is less developed traditional retail and gone online faster driven by mobile technology. we like both companies fundamentally. we prefer alibaba right now on an evaluation basis. both can do well in their respective areas. emily: the

and hitting high but what's not hitting high is name like super value and kroger, in fact, they are hitting lows and the lowest level for kroger and the concerns are not only for the grocery stores but also for packaged foods such as general mills, you name it, trish, because the concern here is that whole foods and amazon will have the margins and all the other producers won't have the margins and in fact, might lose on profitability because of this situation. trish: it's really interesting. adam johnson is here with investing inside for you all and one of the ideas he had was to go out and score cosco. >> i got all my briefs and now they're making money on it. cosco is about going into a store, right, it's not about e-commerce and delivery, that's why it was short whereas this deal is about bringing clicks and bricks, it's very powerful. amazon is redefining the whole reason that retail actually has a path forward. trish: one of the interesting things john mackey ceo of whole foods, interesting character himself, he did not want to sell. in fact, just yesterday he was quoted talki

up early on hooked up early on in whatever your labor market is. we had a kroger that took out an ad for people who had math skills. they put out what they needed, people that could count, add, and subtract. our schools are destroyed. go to deception.com. martin, from turtle creek. >> one of the last things we heard in the campaign was a reinvestment in the economy. i think what people are saying in terms of the alternative programs and vocational education is that supporting globalization has pulled away our entire industrial a's of the basemy, and -- industrial of the economy. what we need to do and the focus of the campaign was to meet the demands of the economic restructuring. i wanted to have a chance to talk to the previous guest a little bit about the current supply demand ratio, but we know from anecdotal records how difficult it is for employers to qualified employees as the last color was saying. begin to bringwe that into the discussion, we wind up missing what they significance of the election was. more call, will duff kentucky, democrats line. yes. references calling in

supposed to explode. they are supposed to emit colorful smoke. sold at wal-mart and kroger in illinois, ohio, vermont, wisconsin. nancy: c in five "star wars" films sold at auction for $2.75 million. luke skywalker's famous sidekick fetched the hefty price at l.a. auction house. the droid is the only r2 in public domain. no word on who the winner bidder. jonathan: nothing like a summer road trip. a driver made sure they didn't forget anything at home. look at this. that got him in trouble with the law. we'll explain. nancy: talk about overpacking. >> get out of the way. nancy: and this! you might not want to tick off a pregnant woman. what drove one to mow down somebody in the parking lot of a wal-mart. jonathan: there are a report that a former redskin wanted to kill his manager after he lost millions >> he thought they took away his ability to provide for the family. jonathan: an nfl costar said portis was too generous with the money. but the future is bright. just in the "washington post" reporting the legal battle over the redskin team name is over. the native american group backin

products are still selling at walmart, kroger and many other stores. we found them on sale at the safeway in the mission. tetrick says his lab is constantly testing the products and found no problems with salmonella or listeria. >> there's nothing internally, nothing that has ever indicated that a product that we have sent out to the marketplace has that issue. >> hampton screen products are sold at 20,000 stores nationwide. target makes up a large percentage of retail sales so tetrick hopes the company will just reconsider and soon. in daly city, joe vazquez, kpix 5. >> hampton creek says it plans to continue disrupting the food market. yesterday, the company rolled out a product called clean meat made without killing animals. it's made by drawing cells from living creatures. >>> california signed off on a deal to shut down the last remaining coastal sand mine in the u.s. the plant is run by zen ex-and sits on remote beach in monterey county. for more than a century sand has been removed and sold from there. the lands commission says the sand mining operation paid tribute to beac

including wal-mart, target, coastco and kroger watched as their stock plunged up by to 12%. customers theorizing what amazon.com founder jeff bezos is plotting. >> he is adding to his empire. >> i don't it will change. i don't think people will let it. i will stay the same. >> as long as they keep up the high quality it will be fine. >> it's strategic. it makes sense. it could automate the shopping process. that could be interesting in a couple of years. >> so far, jeff bezos who also owns the "washington post" is keeping quiet about his grandiose plans but there is plenty of speculation that amazon fresh will partner in 400-plus stores. live in arlington. i'm kevin lewis. abc7 news. >> thanks. caught on camera, a guyn't whatted for kidnapping in california led police on a slow speed chase that ended up here. that is the roof of somebody's house. the guy ran to a home, knocked on the door. the homeowner says i'm not letting you in. so he climbs on the roof. six hours he faces back andford. sometimes he sat down. before deciding to come down. when he did he was quickly arre

: competitors took a big hit today as a turf. kroger, target and costco shares falling on the news. >> for the general grocery store, boy, it's tough. >> reporter: investors rewarded amazon for the deal today. the stock spiking enough to almost pay the bill. this is by founder jeff bazos upping the shopping cart. >>> nbc news has learned details tonight about the investigation into wednesday's shooting at the practice for this week's congressional charity baseball game. investigators say the gunman was carrying a list containing the name of house republicans when he opened fire. our justice correspondent pete williams has late date he tails on this. >> reporter: while james hodgkinson was firing at members of congress, he was carrying a handwritten list in his pocket, names of several adding an element of mystery whether he planned an attack in advance. according to officials briefed, the list was trent franks of arizona, jeff duncan of south carolina and mo brooks of arizona along with a few others officials would not reveal. adding to the uncertainty about the list, franks was no

food store behind walmart and kroger. they will focus on private- label food, organic produce and meat that is raised without antibiotics. >>> if you love video games and microsoft has released the new details on the next gaming console that is called the xbox 1x. it is smaller than previous versions but one of the most powerful videogame consoles ever made and users can play the existing xbox one and the xbox 360s games on it and most of those in 4k resolution and will be released in november with a price tag of $500. >>> sprint will be the only carrier to get the new " essential" phone and created by andi rubin, the screen almost covers the entire front of the phone featuring modular add-ons like the 360 degree camera. sprint has not announced the pricing it for the new phone and it is unclear how long that "essential" will remain exclusive with sprint. >>> the iconic ferry building will soon be up for sale, and the current owner is that the selloff financial asset it acquired during real estate buyout in 2007. the 100-year-old building is a registered historic building meaning

"nightly >>> kroger cut its profit outlook for the year. that's where we begin tonight's market focus. the nation's largest supermarket operator cited intensifying competition as reasons for the warning. >> in the quarter, we had about 20 basis points of deflation, excluding fuel. that was a little bit less deflation than the prior year, and the prior quarter. but keep in mind, that's deflation on top of deflation. >> as for the latest results, the company posted better than expected sales and earnings that matched analysts' estimates. shares were hammered, losing 19%. >>> sales of bob evans fell short of estimates even as the food distributor said customers spent more on lower priced products. the company reported earnings that beat street expectations and reiterated sales guidance for fiscal 2018. shares were off 4% to $68.99. >>> newcore says it expects earnings to fall and miss expectations this quarter. it blamed weaker demand from increased competition. shares fell more than 7.5% on the news to $54.60. >>> late yesterday, drug maker mylan said the food and drug administration re

was 18 i got a job at the kroger co., and there i stayed until the day i retired. i worked, got married, have children, bought a home and did all the things required of me. but you did not. now you spend my tax dollars and you are crying because the money isn't there for you to spend again. it needs to be put back into these places where we paid. now you are the one holding the money back and you want to tell me how bad i am because i want to have somewhat of a decent life. i'm not asking to live in luxury like you are but i would like to pay my gas and electric bill and mortgage in the same month. >> host: we will let our guests respond. >> guest: she obviously doesn't know my voting record and didn't vot vote or one buile entire time i was in the senate because i thought it was a moral. number two i am the guy that did the oversight trying to strengthen things out and outlined the waist and couldn't get people to vote for it so i understand your opinion but i think if you check my voting record you can find the statements are. >> host: what is the convention of the state proje