i like the story >> and apple, remember the importance of 2630 that is where the double bottom lows were in the fall. >> all right thanks for watching. the exchange begins right now. thank you, scott pl weap welcome, i'm kelly evans here is what that is happening one and cut. has the market changed its mind about what the fed may do next and what if there srnt a recession coming also tuning in, turns out the death of football and peek peak sports may have been exanlgggerd apand after 126 years, sears may shutter. we have the fallout. but we begin with the markets. >> and we are 134 points higher on the dow jones we were at one point up 334 points and as low as up 50 points

so smack dab in the middle up by about half a percent the nasdaq also following suit up by about half a percent as well speaking of the nasdaq, one industry group we are watching very closely is the se semiconductor stocks the technology sector has been a laggard. some traders are lookingconducty leading indicator. and one stock to watch, best performer in the s&p 500 on the transportation side, it is union pacific up over 8% on track for its best day since october of 1987 after its coo, the new one, seen as areal efficiency expert so one of those things to watch for sure transports a big key >> all right dom thank you and bob pisani is joining us

from the floor of the new york stock exchange and you're saying maybe now this bad news is already priced >> why if samsung would have made this warning back in october, it would be down a lot more but the markets already anticipated this samsu samsung down 10% since september. a lot of the bad news already priced in. we overreacted to concerns about china, tariffs and the federal reserve. maybe too much let's me show you the dow jones. december 4 to december 24, the dow dropped 4,000 points and then we have essentially recovered half of that 2,000 points essentially including today's gains, that is 50% of it as people starting to realize and understand that perhaps some of these concerns were a little overblown. we saw that today in some of the positive trade headlines >> bob, thank you. now president trump set to address the nation and make his

case for border security at 9:00 p.m. tonight as the government shutdown is in its 18th day. ylan mui is joining us with a look at whether the president's announcement could end the shutdown >> the ball is now in the president's court. he will be giving that speech from the oval office drawing on the full power of the presidency to make the case for the border wall as an issue of national security now, this afternoon lawmakers from both parties are huddling on capitol hill talking strategy and next steps ahead of his remarks. democrats are determined not to let this president dominate the news cycle they are holding press conferences my lighting tsa workers are who are on the job but not getting paid and also the impact of food stamp, farmers, fhs isn't processing loans so the big question here, where do we go now one path out is for the president to declare a national emergency and build the wall using that authority, but even democrats are split on whether he has that power.

>> and i guess the concern is if congress has the power of the purse, is the president interfering with the separation of powers here by using it how likely is it that they might pursue that line against him or as some have said maybe mitch mcconnell as an institutionalist himself doesn't want to go down that path. but will they stand in his way >> i think that it is a possibility that democrats are exploring look, dick durbin said that the president will be challenged if he does know that route of declaring a national emergency and building in a wall whether it comes from democrats in the house or outside, there will almost certainly be a legal challenge and that will have to drag out in the court system but perhaps the administration doesn't care if they can declare a win just by saying we've started this process, now democrats are the opposition or blocking it, that at least gives them something to plant a flag on to say that they have moved the ball and then perhaps be able to move to end the government shut down but right now, it will be very difficult for republicans to continue to oppose votes that will go on in the house this

week to reopen the government as workers are facing the first fully missed paycheck on friday. >> that is true. and a lot could map in thehappe ten minutes tonight. just moments ago, jim cramer sat down with tim cook we'll hear from him in a couple of minutes see if there is any update on the situation with the iphone in china. now this, when it comes to the fed and rate hikes, the market seems to have gone from one and done to none and cut steve liesman is here to explain. >> an astonishing government when y - government development they see the fed doing nothing over the next year in the face of the fed's own forecast for two rate hikes and in 2020 if you look at the graph, they see a rate cut you can see that right there now, this is far out, i don't mean far out as in groovy, i mean far out as in far away. but still it is astonishing that

for a fed that essentially has been forecasting rate hikes and wants to get to normal, wants to normalize its balance sheet, that the market sees it going the other way. and there are three parts. how do we solve it first thing is i think what they call open mouth operations did powell go too far, does he need to rein the market expe expectation back in. does the market need to prirefrs price to the fed and does the fed need to rese e reserve. >> and we'll be talking to one of the experts saying beware because the bottom may not be yet. let's start with what steve mentioned, the market sees a rate cut coming. do you think that is appropriate or are people way too concerned about the fundamentals >> i think that people have gone

too far in thinking that the fed will stay put and then cut rates. and let me explain why first, it is hard to find any systemic weakness in the u.s. economy. yes, there may be small pockets, but overall the economy is doing well and you saw this on the employment report. >> so why then do you think that the bottom of the stock market may not yet be in if you are upbeat about the fundamentals? >> because i worry about the rest of the world and the numbers you got out of germany today were scary and i think that they have a lot of information content i worry about china. and secondly, let's not forget how much risk taking happened during the period of ample and predictable liquidity from central banks. so if you are looking at the market as a whole, it is the global concept, not just the u.s. concept and we have to deal with a weaker global economy and we have to deal with the fact that the technicals can easily turn negative >> so steve, the big companies are more exposed to the

international marketplace than the uts econo.s. economy. let's say the u.s. economy is 13%, that puts the fed in the position of deciding do they focus just on america or acknowledge it goes beyond that? >> i asked that question friday and they said yeah, to the extent that it affects the u.s and they have to focus on the fiscal policy and the fed may somewhere learned a lesson here. if donald trump is going to create a problem in global growth through tariffs, that is something that the fed has to incorporate. and also there is adaptive expectations which is a fancy way of saying what happens next time is mostly what is to happen next time. if people think that what will happen next year is another great recession in the making, the fact is not every slowdown

is a recession, not every recession creates financial blowups and not every financial blowup creates a financial crisis but i think what happens is people cannot -- you can't go to wall street and say, oh, we'll have a slowdown next year. no, we're not going to have a slowdown >> because they have been preceded by some pretty dramatic bubble kind of events. so does this have to end with some kind of frothy exuberance >> it doesn't have to end in a crisis what happened in 2008 was very special. it is because the banking system was at risk and the minute you put the banking system at risk, you put the payment and settlement system at risk. we're not there. so i agree totally with steve, there concept that slowdown in the u.s. means recession or means financial crisis, that is just wrong >> but the problem is there it no faith in the fed at least on the people that i talk to the street if you say, yeah, the fed is the pilot of this plane, they will land this thing, it will be a

nice soft landing, we'll go from 3% growth to 2.5%. >> what you're saying is if you lose faith in the fed, markets collapse >> markets collapse and the economy whether go into recession. if you say we're going to tick up to get to 4% unemployment rate, people will laugh at you they laugh at me >> so i hear people saying look, there is no crisis management experience on the fed. none of them have been on a trade floor. i also hear them say they are flip-fl flip-flopping. but the reality is, and this is important, is that central banks have gone from being repressors of volatility to inadvertently contributing to it so we have to understand that the central banks are no longer there to cover our backs and no

longer there to repress volatility and they have no choice in a way but to end up by contributing to it not because they want to -- >> what would you recommend for investors then because they would typically say that the economy will be okay, the cycle continues, i can be in risk assets, but you say maybe in the because of global growth. so what is the best advice here? >> first i say get ready for a lot of volatility. second, use the up swings as we say today to go up in quality. and third, remember that bonds won't give you the protection against stock losses that they have in the past you have to be either simply in the way that you hedge cash or much more complicated in terms of tail hedging. but don't think that 60/40 whether give you the same risk of mitigation as it has. >> i think he hit an important point i don't think that the

federal reserve expected it, i think mohammad obviously one of the smartest guys understand this, that when i the lid cothep and the steam rises up, it sdnltd me doesn't mean higher or lower, but justbumpier ride >> but so many now are saying that it is going to be volatile. >> but it was repressed volatility that was out there. but i want to ask, is your best case most likely case a soft landing or is that more contingent on the fiscal side than on the monetary side? >> so in a stand alone basis, it is not just a soft landing i would actually be more optimistic about this. my concern is what the rest of the world does to us and that's why i keep saying that u.s. leadership globally is

really important because you have to get other countries to focus on pro-growth policies >> all right guy, thank you both. appreciate it. there is a whole lot more straight ahead on the exchange >> up next, jim cramer sits down with apple ceo tim cook for an exclusive interview. his reaction to the stock's massive drop following the company's guidance cut the end of a retail era, sears planning to shutter after 126 years in business. how did we get here? and the impact coming up and why is julia boorstin in a pod cruising down the las vegas strip without a driver hey, batter, batter, batter, batter.

[ crowd cheers ] like everyone, i lead a busy life. but i know the importance of having time to do what you love.

at comcast we know our customers' time is valuable. that's why we have 2-hour appointment windows, including nights and weekends. so you can do more of what you love. my name is tito, and i'm a tech-house manager at comcast. we're working to make things simple, easy and awesome. welcome back to "the exchange." jim cramer just finishing as an interview with tim cook. first of all, you can't be satisfied talking to every health care ceo. you have to get tim cook while you're out there we're going to ask him about -- what is he saying about china? the entire world was paying attention after that warning last week. so you asked him about the naysayers, right >> well, you can listen to a clip, but he basically is saying you know what, we've heard this

over and over and over again and each time it was a good opportunity to buy i don't know if we can play it because i think it really does summarize better than what i have to say. >> in terms of the naysayer, i've heard this over and over again. i've heard it in 2001. i've heard it in 2005 and 7 and 8 and 10 and 12 and 13 you can probably find the same quotes from the same people over and over again and i'm not defensive on it. this is america. and you can say what you want. but i'm giving you my honest opinion is that there is a culture of innovation in apple and that cultureinnovation combined with the incredible loyal customers, happy customers, this ecosystem, this virtuous ecosystem, is something that is probably underappreciated >> so you were surprised with the market reaction to both when you decided to not reveal uptd

the and when you vealed the -- >> i'm never surprised about the market because i think the market is quite emotional in the short term and we sort of look through all of that. we think about the long term and so when i look at the long term health of the company, it has never been better. the product pipeline has never been better. the ecosystem has never been stronger the services are on a tear >> obviously short term stuff. we are people who have to look at both the short term and long term i felt reassured, but the main reassurance i got, i think tim came close to saying we could have a real breakthrough with china. the shortfall was totally related to china and he was so encouraging and he said his information was recent. it would make people feel like i

should be buying some and the down here, the stock is too cheap. >> and he'd have to feel like the market didn't get the right message to be trying to clarify it, right? i find it fascinating that he would turn around and say look, i'm back, and here is what more -- but did something really change on the ground are the china consumers suddenly buying the amppple phone, what you think is going on? >> look, i think that-46help thi propos probed the why the i pushed it only because i know that china is the up side to the story. he was saying that india could be bts up side, but still small base and the real up side is innovation i was telling him that i felt that it was covered by consumers product company analysts, that

his stock would be basically double if he recovered by someone who follows procter & gamble that won't occur but there is very difficult comparisons against other parts stri industry because it is trading like a hardware company. and that was one of the reasons why i wanted to come out here. the credit is only going to hardware and hardware has just been okay. and again, that is services. it is not something that lot of other companies have >> and even president trump brought up tim cook the other day when he said yes, he is a end from of mine, i'm in touch with him, we speak on often. did you get a sense from tim that he thinks there is news, some good news on the trade front with china >> i said exactly what understand i talked about the fact that he is a friend and that there could be a breakthrough and he agreed.

he was more bull lish than ish s he said my information is basically real time and real time he feels a lot better and i thought that possible china deal i took that as really up side and it made me feel like the stock is in the process of bottoming here it is obviously down tremendously i talked about owning it, don't trade it and he said look, it will be innovation, service that drives things and i agree with that. the service revenue stream will be gigantic. if it overcomes -- look, 60 respect about of the company remains cellphones and that is what the analysts care about can't change that. and i love the new show, by the way. >> thank you >> and being on your show talking something about other than a shortfall does change let's say the mosaic of how you should think about the stock >> all right jim, great stuff thank you for bringing to us

jim cramer out west. i don't know when the man sleep, but he has just spoken with tim cook and for the full interview, tune into "mad money" tonight. you'll all of this jon fortt and ed lee are standing by. guy, thank you both for being here what jumps out to you about the comments from tim cook >> i think only way apple has gotten where it is is by having certain core belief that is aren't short term. they believe in the power of design of integrated design, hardware, software, services they believe in having a loyal tus base and that having that customer base gives them p peripherpe permission to sell them on industrial services and innovate once they figure out that customer's problems. so even though there might be

either short term or structural problems with certain existing apple businesses, because apple thinks that way and because they still fundamentally have that skillset -- remember nobody beat apple. it is not like samsung is stealing market share. they think that they still have a lot more story to tell >> and if anything in the last 24 hour, we've learned more about the maturity of the smartphone market. we've even heard about it from lg so can apple transform themselves into more of a services company >> i agree with jon that there is more story to tell. i don't think so much about market share i think especially if you where looking at china which is where a lot of the growth is supposed to be coming from or at least outside the united states, huawei i think are stealing share. that is one aspect the other aspect is in china especially, smartphones are different than elsewhere

the operating system, they only use like two or three apps we chat is the most used app. and that makes the hardware more of a commodity and you can switch devices that much more easily and that is where the innovation question comes in, what will apple do to create a moat specific to those customers. in the us, photos and imessage is certainly part of that, but we don't see that in china and he also wher elsewhere. >> and jon, back to your point about longer term, even if tim cook says something now that sounds favorable about the trade deal or about the chinese demand, how do they stay relevant in the chinese market >> i'll take a little bit of a counter to what ed just said i think that too often we tend to look at these products in isolation. like there is a phone and

innovation exists just within the phone. it is important to note the last time there was a major wireless network upgrade lte, it has been five or six years. so you had a couple years on that, people figuring out here are things that i can do on lte that i couldn't do uber, lyft become easier i can stream video hold business models now you have 5 g coming. so how is apple going to be able to take advantage and perhaps build something into the phone that they couldn't before. it is not a matter of they aren't innovating. eith the network is now there. so perhaps apple or somebody else comes up with something that really pushes things forward and sparks sales >> all right jon fortt, ed lee, appreciate it we have breaking news now on sears. courtney reagan joining us >> this is the 11.99th hour, but

we have news out of the bankruptcy court it looks like eddie lampert and his hedge fund's bid to keep sears alive is in fact still alive. the judge is now asking that lampert put up $120 million in a deposit by 4:00 p.m. tomorrow as the court continues to evaluate all of the components of this bid. but as of right now, sears has been given at least another life line for some period of time details though still largely tbd. >> and they want him to put up the cash court a courtney, thank you very much. netflix stock is up 17% this month. we'll talk about what is behind that bounce. plus julia boorstin may have to stay in las vegas if she can't find a way out of the self-driving pod

if you're turning 65, you're probably learning about medicare and supplemental insurance. medicare is great, but it doesn't cover everything - only about 80% of your part b medicare costs, which means you may have to pay for the rest. that's where medicare supplement insurance comes in: to help pay for some of what medicare doesn't. learn how an aarp medicare supplement insurance plan, insured by united healthcare insurance company might be the right choice for you. a free decision guide is a great place to start.

call today to request yours. so what makes an aarp medicare supplement plan unique? well, these are the only medicare supplement plans endorsed by aarp and that's because they meet aarp's high standards of quality and service. you're also getting the great features that any medicare supplement plan provides. for example, with any medicare supplement plan you may choose any doctor or hospital that accepts medicare patients. you can even visit a specialist. with this type of plan, there are no networks or referrals needed. also, a medicare supplement plan goes with you when you travel anywhere in the u.s. a free decision guide will provide a breakdown of aarp medicare supplement plans, and help you determine the plan that works best for your needs and budget. call today to request yours. let's recap. there are 3 key things you should keep in mind. one: if you're turning 65, you may be eligible for medicare -

but it only covers about 80% of your medicare part b costs. a medicare supplement plan may help pay for some of the rest. two: this type of plan allows you to keep your doctor - as long as he or she accepts medicare patients. and three: these are the only medicare supplement plans endorsed by aarp. learn more about why you should choose an aarp medicare supplement plan. call today for a free guide. . here is what is happening. flights from heathrow have been halted after sightings of a drone. airport officials say they stopped departures to investigate as a precautionary

measure. row shtlaib is speaking in detroit. she apologized for the media may lay her comments caused, but she stood behind her statement >> i'm very passionate about fighting for all of us and the use of that language, you know, was a teachable moment for me and i understand i'm a member of congress and i don't want anything that i do or say to distract us. and that is the only thing that i apologize for, it was a distraction. and the packers have their new head coach, tennessee titans offensive coordinator matt lafleur accepting that job replacing mike mccarthy. that is the news update. back to you. >> sue, thank you. we're joined by melissa lee and next hour we'll be talking to ibm ceo. and here is my question for you. 26th straight year they have been the top patent receiver in

the united states. they were down 26% last year can they pull off a microsoft-like rein-vens preverd they go the way of the ge? >> i don't want to say the nail is in the coffin, but you take a look at the last earnings report in october and they had a massive decline in revenues because of what they thought were going to be the growth businesses, strategic comparatives and cloud and that was a disappointment for the street so the jury is still out on their efforts to juice up the performance of the company and let's face it, they have been a s serial financial engineer. so there is doubt about the strength of the core business. >> and in terms of the ge article, if it goes through the decisions that were made along the way and you wonder when you're

reinvent yourself, maybe you stick with the core business or try to say we have to find a growth market. >> and also you were talking to jim cramer about apple and there is real concerns that apple may be the next ibm. so ibm comes up in conversations these days not only as a turnaround story, but as a cautionary tale perhaps in the land of technology as we see apple continue to be under pressure >> it will be a better sign when we stop people saying it is the next blackberry. >> so people have been saying this for a long time >> and we'll matter from the ceo as we said on power. i'll see you then. melissa lee. here is what is coming up straight ahead on "the exchange." ahead, it appears that the death of football and peak sports was greatly exaggerated plus an inside look at the secret culture the facebook. and the one thing that chinese

ye a still spending big money despite the trade wars

welcome back let's get a check on the markets. we're off session highs, but

still largely positive the dow up 207 and apple shares hit session highs in the last ten minutes. and facebook shares are seeing a nice jump today. the stock kicking off the year with a nearly 9% rally, 3% of that today and shares of mattel are jumping as the company announces that it will partner with warner brothers for a large action bar would bie movie. let's get to some more headlines. time for today's rapid fire upda update you already want to get started. >> i am so ready for this. i want to rapid fire away. >> let's start with netflix. it is up 19% what is behind this move >> so 19%, and that is just year to date. it is up around 35%, 36% just since that christmas eve low so as we talk about the stocks

that many investors may have on their shopping lists, netflix is probably one of those names that we think about the most. the ones people want to buy on sale you could say maybe short covering is a bit of the story, but only about 4% are actually held short >> and it is the entire sector and people point to the secretary says of the "bird box" -- >> yeah, i haven't seen it yet, but i was going to say i think some of it has to do with all of the original programming that they are investing in. ceo says it makes them value their subscription more. >> i haven't seen the movie either, but you can almost draw the analogy where it is like the investors had a blind fold over their eyes if a long time and they took it off and they saw moss monster gains hedge funds in total have earned about $3 billion just since christmas eve.

and these are names like srs investment management, tiger global, matrix capital and this is just netflix and just in the last two weeks >> amazing let's move on to u.s. job openings which posted a five month low in november according to a report. more than a bit at odds with some of the hiring data. >> and job openings of course are still record highs and another place that we're seeing record high openings is on main street 39% of small businesses said that they had openings that they were trying to fill. 60% said that they were trying to hire but another story we've been talking about, 90% cannot find they said basically few or no qualified workers >> so are people finally pulling positions all together >> they certainly could be but everyone though i feel like it is off the high, they don't nicely think it is a negative just yet >> and the job openings may be a lot more than the people who are quote/unquote unemployed, but it

also doesn't count the people who have given up on looking for jobs so this is positive data >> that is why we need the openings >> there are millions of americans who are trying to find a job that they want or are qualified for but cannot or are working a lot of part-time jobs to make ends meet. so this is great data and it is trending the right direction but certainly nothing yet. you can't claim victory. >> i want to talk football let's move along to the ratings for the nfl playoff games. up 12% from last season. and 36 million households tuned in for the bears/eagles game so was the talk premature? >> i've been an nfl fan for my entire life. my mom raised us as 49ers fans it has been a tough year for me. but i've never given up on football i may be the exception >> so you don't count.

so i'll use mufl myself i said i don't care, but then patrick mahomes came out so is this just a oneoff then or is this something that points to, hey, the cost for all of this content, the crazy deals even espn just trying to come to determines on that, is it still worth it >> what is interesting, it wasn't that long ago that we were all talking about the national anthem controversy and now we're talking about patrick mahomes, the jet sweep, all of these great things that are happening. so it just maybe speaks to the magic of the sport that even over time, even medium term, that fans will eventually come back now, if they can keep that think make going is obviously key. >> and important to note that last year's ratings were exceptionally low. so the increase this year may be less indicative of people just learning to the game >> we're still down, but it mads to make people feel better would you ride in an unmanned

pod that can travel up to 60 miles per hour julia boorstin took one for a spin down the vegas strip. do we have video of this here is the question would anybody ride in a 60-mile-per-hour moving object that didn't have a driver behind the wheel? >> there is the video with >> i'm going to take a pass on this i feel like the drivers on the road are dangerous enough. i don't think if i'm ready to turn it over to a robot. people might feel better if i'm off the road but i don't know if i'm ready for this >> i tried one of the self grant driving cars and it was primitive technology >> we have no problem getting in a car with a stranger on uber or lift i go on, so a robot that has been coded to watch out for specific signals and -- >> it better be a five star robot. >> as listening as -- long as t

passes the quality checks. >> and then snow and rain. >> and i rented a car once, i believe it was subaru, but only one had lane assist, the one that keeps you going from outside the lanes. and it freaked me out. just because i swerved a bit toward the left, it pulled me right back i didn't like the lack of control. >> and i can see it on the road now. sometimes the car will swerve on and you see it -- >> jerking back. >> yeah, i want to get to when they are fully in charge, but until then, i'm staying behind the wheel. and it could be the end of sears as we know it, but the chairman has been given another chance to save the company we have the latest next. also cnbc.com got an inside look at the employee culture at facebook and some shocking details from that investigation. e

wire for sears eddie lampert's hedge fund is protesting sears' decision in court. courtney reagan, what is story it is. and i understand lauren this is playing out minute by minute so the judge now giving him more time >> a little bit more time. so just to catch you up, so on friday, sears advisers had decided eddie lampert's bid to save sears through his hedge fund was insufficient. the biggest reason that they didn't like the bid was because it didn't cover all the administrative experiences including its lawyers and bankers. so sears rejecteded his bid. the plan was to go to the bankruptcy judge to say that we will liquidate at the last minute which is the

story of sears, they delayed the hearing until about 12:30. >> so just an hour ago >> exactly and they brokered a deal and from sources that i was talking to, esl said we're short of administrative expenses look at what you're saying your lawyers, look at what you are paying your bankers. that is the reason why 55,000 jobs goes away and it seems that they were persuasi persuasive >> but they have to come up broke how much more by tomorrow? something in the 100 million dollar range lampert has to come up with the cash >> exactly and so this is the story of sears. lives on another day, but very much not clear that it will live on forever >> courtney, does this make sense to you people talk about amazon, okay, they didn't compete. but best buy did this is a sears problem. this is the current leadership's frankly fault.

should they be given more opportunity or should they just be liquidated and it is time for everybody to move on >> i think it is a challenging question because there are people's lives at stake. people that work for sears for a long time. but if you where a mall operator, you are ready for sears to go away and when i've talked to some of the mall operators, they say look, when a sears forecloses, we can get new tenants in there, maybe more than one. and they are paying somewhere four times the rent that sears was. >> and they have employees too we want to make the best decisions for the workers and consumers. i'm not sure at this point what that is. what can they possibly do to keep it going even if they win a couple months reprieve >> and i think that is the challenge. and fundamentally sears has not been taken care of and fostered as a retailer.

and i care an awful lot about retail, but it is true, many of the stores have been neglected they haven't been invested in, they haven't innovated and if anyone could have competed in e-commerce, sears and jcpenney should have been able to do it. they were catalog businesses from the start they had the infrastructure to sell direct and they failed. >> and so we'll see what happens tomorrow guy, thank you both. facebook also in lon longer best place to work cnbc.com spoke to former employees who are fulling back the curtain on the culture the facebook we'll have those details next. also trade tensions aren't keeping the chinese from buying at least one thing in this country. we'll tell you what that is coming up. [knocking] ♪

♪ memories. what we deliver by delivering.

with who we are as people and making everybody feel welcome. ordering custom ink t-shirts has been a really smart decision for our business. i love the custom ink design lab because it's really easy to use. they have customer service that you can reach anytime. t-shirts help us immediately get a sense of who we are as a group. from the moment clients walk in, they're able to feel like part of the family. - [spokesman] custom ink has hundreds of products for your business and free shipping.

upload your logo or start your design today for your business and free shipping. i am a techie dad.n. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome. a new piece on cbc.com is pulling back the culture at facebook with former insiders comparing it to a cult this provocative piece where dissent is discouraged and employees pretend to be happy

all the time workers who left late 2016 and the year before. technology reporter with cnbc.com welcome, sal >> hi there, kelly as you mentioned, yeah, over the past month, i spoke with more than a dozen facebook employees who left the company over the last two years and what they detailed for me is just a cult-like work culture at the company that has really influenced scandals we've seen come out of the company the last two years. >> people left after the election of president trump. what was it like internally during this period when facebook itself came under attack for throwing the election basically? >> that's a great question, kelly. basically, what they told me is that it's an environment where they're really discouraged from speaking up about any problems that they see, any orders they get from management or just any blind spots that the company isn't addressing and the way they detailed it, that's why there's so many of these issues that have been coming out

recently >> i was struck that you said this used to be the number one firm to work for according to glass door and fallen to number 7. does that mean they'll have trouble retaining talent, especially in this moment, sal, where they're beefing up their workforce to better police their content? >> yeah, it's a very interesting period for the company they have all these issues with misinformation on the platform, so they need to hire more people to moderate the content on the service and it does seem like there could be issues with recruiting because of all of these scandals that they're having this particular period will be very revealing as to how facebook will fare in accomplishing that goal. >> and encourage people to read the piece if they want to read about some of the things they do internally, the ways they have to grade each other. it reminds me of a cross between bridgewater and the old general electric but while i have you, did you hear from facebook directly about its culture or trying to make any changes >> so they didn't tell us they're having any plans to make

changes to their performance review system. they chose not to comment but they did, you know, agree that what we had in the story was accurate and so basically, what the people i spoke with was just a system where employees grade each other and have to end up with a grade between seven scores they can get. the top one being redefined and it's, there's a lot of confusion as to how these grades are given out. so based on the employees we spoke with, we were told there's fear and anxiety and a lack of transparency when it comes to the system >> the frustrations inside the company, it sounds like it's starting to match the frustrations from without. sal, thank you for joining us. really good to talk to you about it from cnbc.com and visit the web site and learn more about facebook's culture in his piece. chinese aren't letting the trade war stop them from snapping up one american product.

diana olick has that story dianna >> reporter: u.s. housing. chinese buyers looking for a new type of home i'll splaexplain coming up next "the exchange. so capital one is building something completely new. capital one cafes. inviting places with people here to help you, not sell you. and savings and checking accounts with no fees or minimums. because that's how it should be. you can open one from right here or anywhere in 5 minutes. seriously, 5 minutes... this is banking reimagined. what's in your wallet?

what do you look for i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪ let's get a quick check of markets as we approach the 2:00

p.m. hour on wall street the dow is heading back towards session highs. 244. up 333 at the highs today. chinese consumers are not buying american aiphones as much as americans persist. a look at what they are buying >> reporter: houses. not only still active in the u.s. housing market, the pool is actually expanding to the middle income, mortgage dependent chinese buyer. it just used to be the wealthy now expanding sites from california to cheaper housing markets in texas, georgia and florida. i spoke to one chinese real estate agent who just returned from this international real estate and sales event in shanghai she sells properties in the san francisco bay area and she did not hear a word at this event about trade wars >> the chinese are basically politically agnostic what i mean by that is that even though there's a great tension between u.s. government and chinese, the chinese citizen

seems to be able to separate the political turmoil with the sound real estate investment >> reporter: she noted there's more mortgage companies in the u.s. that are helping the chinese directly to get their money out and get their cash into more u.s. homes of course, this just means more competition for u.s. buyers. kelly? >> they pulled back so much. even if terms of chinese corporate investment in the u.s. is this kosher with the chinese? all of this cash flooding into american homes >> there's very strict rules they're only allowed to take out $50,000 per person and when i asked how they're getting so much cash out, i sashe said i dt ask. $50,000 is enough for a down payment on a mortgage and also pulling money so they'll have several members of one family putting money together and they may also have family who are here already children who are working at tech companies, she said and so then the parents will come over with a pool of money from several relatives to help them buy. >> it will be heartfelt

leadership and then probably encourage people to get around it and get the homes while they can. that does it for the exchange. i'll be joining tyler and melissa on "power lunch" which begins right now. >> i'm tyler mathisen. welcome, everyone to "power lunch. optimism about trade talks but a slew of new warnings casting a shadow about global growth all the bad news in this market or not we'll examine that one this hour and a big exclusive you cannot afford to miss apple's ceo tim cook sat down with jim cramer, taking aim at apple's critics. details ahead and where the stock could go from here and battered blue. ibm one of the biggest dogs in the dow over the last year and five years so what will 2019 hold ibm's jenny rameti