wonderful play on strong consumer 8% dividend deal >> xlf financial trade continues with the currency >> alexion pharmaceutical. >> alphabet. >> good weekend everybody. "the exchange" begins now. thank you, scott and hi, everybody. we're marching higher. stocks look to extend their win streak we're kicking off the new month but can the stocks warring start to 2019 last refunds are now going up we'll look how it's shaking out. lyft finally lifts the veil on its ipo. is it too late to get in some interesting stuff about the bonuses they are paying their drivers. >> they can use some of that bonus, apparently to buy into the ipo. so that's a great story. we'll be talking a lot about it.

let's talk about the numbers we're seeing just around that 2800 mark, that unstoppable rally in stocks stalling out at this level and it has for quite some time. dow industrial up by 72 and nasdaq composite up by 45. half a percent gain. the s&p 500 has been a point where things have stalled out a bit three other times, four times including this one we'll see if bulls can get it above that 2800 to 2815 mark that's key to watch. the stock of the hour, justin last half hour or so we've seen shares of kroger take a huge dip to the down side intraday. this is on the heels of dow jones headlines saying amazon could be looking to unveil lower priced grocery stores in addition to wholesale foods operation. check out all these other stocks sprouts farmers market, walmart, bj's wholesale, costco showing

some negativity. a trade as we watch this particular grocery play through the day. back to you. welcome to "the exchange". i'm kelly evans. it's friday. the start of march s&p 500 is off to its best start since 1991 the nasdaq here is on pace for its tenth straight weekly gain for the first time since 199 the dow was up 227 point but we lost some steam. let's go to bob pisani at the new york stock exchange. >> take a look at the s&p 500. great start. the four to one advancing declining stocks at the bottom drop after 10:00 eastern time. not terrible but disappointing, below expectation, ism numbers we had a lot of these economic numbers below expectation. we have to change that to get the earnings estimates up or else we'll have problems later in the year. great start to the year.

we have 7.9% in january. up 3% in february. year-to-date up 11%. those are free numbers likely tends quarter definitely in the green here. how about historic highs i know it seems early to talk about it but we're only 3% from a historic high on the dow jones industrials average. russell 2000 lagging behind a little bit >> you caught my attention earlier. we were talking about gap and the spinoff of old navy. gap is one of your buy back monsters what have they got 40% of the float they bought back >> i call it buy back monster. a company that reduced their shares gap as well as some of the big retailers, look at this. gap 42% share count reduction. what that means is if all the other numbers are the same, your earnings are 42% better with no change at all, with no change in the fundamentals same with autozone, kohl's, best

buy. imagine if they weren't buying back stock the other problem with this deal is the synergy is great when the mergers happen when the unmergers happen you have what i call dissynergy, i don't know if that's a word or not. but you are breaking up the company. that's not necessarily great >> come up in utx for investors who said we're pretty happy. because lyft did file its paper work to go public this is the ipo wave you've been talking about. how tightly controlled is this ipo going to be from the early signs, early indications >> one of the thing that i have a real problem with some of these ipos is that dual class sector class a they are selling to the public and class b shares the two founders control has 20 shares they left the numbers blank. we don't know yet and won't know for ten days or so exactly how

much of the company they are going to control but it probably will be close to enough to be majority control. the s-1 says that. i have a problem with that >> we'll talk more about that in the next few weeks thanks for now let's dig a little more into this wild bull market. brian reynolds is joining me and craig callahan a great start to the year. is it just that we're saying wait a minute the selloff we saw in the christmas loss was vastly overdone >> we believe it was and even irrational people were convinced the fed would keep tightening and send us into version. thought the slow down in china would spread to the u.s. now those fears are subsiding. we still see stocks 3% to 4% below fair value value is growing we think the market can grow

higher >> brian, how about you? how much of a tail end does this bull market have >> i think it's got a very big tail end we had a panic in 2015 and '16 that lunched two years of debt fueled buy backs, mergers and lbos we'll have the same thing in another couple of years because of the panic that we had at the end of last year >> why lbos in particular? why are you focused on that piece of the market? >> one of the fastest growing areas of the financial markets is the private market. private equity and private debt. there's a lot of head winds to being public not with standing uber and lyft coming public, it's very difficult to be a public company if you're a coe. you got these regulations you have to deal with. short-sellers you have to deal with whereas you can get a higher valuation in the private markets and that's where the investor is going as well. >> craig, that's why, i take it, it's good news we have these big

ipos coming. let me ask you both something janet yellen flagged earlier corporate debt she said i think nonfinancial corporations have run up quite a lot of debt what i would worry about is if the economy encount ears downturn i think that's something that could make the next recession a deeper recession craig, what would you say to that >> i just don't see it the debt to equity ratio for the s&p 500 companies a decade ago was 2.2. today it's 1.1 they reduced their debt usage in half their debt to asset ratio was 38% a decade ago today it's 25% same thing for mid-caps and small caps i don't see a debt problem >> brian, you did mention things like leverage buy outs >> in the private-sector, in private debt and private equity the debt ratio is worse than in the public sector. there's more of a problem there. this is more like 1995 when the

fed worried about that we had six years of strong debt growth, strong private evaluativalurichard valeriani -- valuation growth. >> should the fed do more to make sure we don't end in some sort of frepzy like we did in '99 and '07 and '08. >> if you look what financing investors are saying which is much more important than i am, that's where we price short equity debt they are telling fed to cut for next couple of years because they are seeing economic weakness, seeing deflation worries especially with this amazon news coming out with a new grocery store chain. they are telling the fed to cut. euro/dollar curve where we price debt off of is inverted right now. that was positively slow in the summer we told the fed to cut rates >> what would you tell the fed

>> we believe if you traditional policy is when the risk pre-rate, say treasury bills equal inflation. right now inflation is 2 and t bills are near 2.5 in our mind the fed already went too far. not tight enough to hurt anything but slightly to tight side >> all right great takeaway from you both some agreement there surprising this late in the economic cycle thank you both here's what's ahead on "the exchange". >> announcer: coming up, after a slow start, tax refunds are actually ticking up. the latest numbers and who is seeing the impact. fast food and fast come backs. how the industry is using social media to gain customers, grow sales, and a little street cred. and say good-bye to the dealer is tesla setting up the model for the future of car sales?

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welcome back some good news for taxpayers refunds are now trending higher. new data from the irs shows the size of the average refunds through the first four weeks of the tax season is up 1.3% from the same period in 2018. but will the trend hold especially with the new tax laws let's ask mattie and cnbc

personal financial correspondence let's start top level here what are the numbers telling us and why has this been so all over the place >> the latest data we saw come out of treasury yesterday was the that the average tax refund is up 1.3% from last year. might not sound like a lot but if you've listened to the news you've heard since the end of tax filing season end of february tax refunds were down we got a slow start to tax season because of the government shutdown irs was one of the agencies that were shutdown. they couldn't answer phones or field questions or continue the business of the tax filing season we're still about 2 million tax files short of what we saw last year because people are still either waiting to file that tax return, or in some cases, some states are still working on conformity measures because of the big tax changes in 2017.

you have to agents who are still asking for clarity for their tax filers on state specific questions. >> in the meantime if you're in one of the states, northeast, california, where you're affected by the state and local deduction cap, explain how are those states harder hit by the refund issue we know that's certainly happening around here. >> definitely happening. if you're in a high tax state, high property, that deduction may be significant for you but keep in mind also that there are other changes, so many changes to the tax code and one of them was the alternative minimum tax should be noted a lot of people in these high tax states may be high income taxpayers as well but be middle to high income and not have to pay atm. that atm if you had state and local deductions that would put you into atm now you're not so maybe you have a little bit of a break. >> the topic is not about the

rates themselves we know the rates went down. i'm curious what happened with the refunds. how the withholding. >> the withholding is important. the change in the refund amounts and the change in the number of refunds has to do with the timing and the fact in particular of two key tax credits that are key for refund, the earned income tax credit and child tax credit the fact that those are now just being able to be processed because you couldn't claim them until february 15th that's just taking effect. that will change the week the to week data and year to year data. what we need to interpret if you're not getting the refund you expected or you owe you want to know why that happened. a big season in you may not have changed your withholding under the tax code changed the withholding table. if you're not having the government take out the proper amount, you're fixing it now there's some key steps you can

take the to do that. >> we're showing you how to look at your paycheck where does this leave us in terms of the tax revenues that are or aren't going the federal government if the refunds end up pacing ahead for the year good for the economy? >> morgan stanley said we would end up tens of billions of dollars higher that point is important. the taxpayer that's getting a check is someone who gets a majority of their income back their expanded eligibility for child tax credit as well as the additional child tax credit. so for people who had this money coming back because their liability is above what they owe to the irs those are the type of taxpayers now just guesting that refund because the irs is not allowed bylaw to start processing those until february 15th. we'll continue to see this data tick up as returns start to come in like i said, that government

shutdown really delayed a lot of the activity that we would see up to this point so it's going to be a long road until we get to the end of filing season before we see the end of the story. >> final question to you are we seeing more uneven distribution in terms of what's happening with refunds it might be higher for some parts of the population, lower for others because of withholding issues anything we can take away in terms how that ripples through the economy? >> it's interesting to look at the data the point that was raised before is so important. 5 million people stuck in atm has access to $10,000 deduction. that's someone who is mid-to-upper class not had the ability to take that deduction before that could show up in consumer data because that's the kind of taxpayer that may not necessarily save that kind of tax refund, they may spend it. >> guys, thank you good stuff

a lot of focus on tesla elon musk today we're shadowing a key test for his other company spacex that's scheduled for later tonight. morgan brennan is live at the launch pad in florida. this could be a game changer, right? >> reporter: it could be this could mark a major milestone. this test scheduled for later tonight for spacex but also for america as a whole we're standing on the launch pad. just to give you a sense of what you see behind me. this is a falcon 9 rocket and the top is crude dragon. if all goes as planned this is the first time a commercially built rocket will be launched. the u.s. has not actually had the capability to send humans into orbit, into space from u.s. soil instead we've been paying the

russians incredible sums of money to do that for us. to address this nasa awarded two contracts under its commercial crew program to spacex to develop this dragon capsule and 2.4 billion to boeing for its star liner kidnap result spacex and boeing will own and operate this spacecraft and what will happen nasa will lease them out for missions this is a new business model we haven't seen before. the reason we're here this is a key test humans will not be on board this when it launches but spacex first to get this far in the testing process. in terms of when we're expecting blastoff right now it's scheduled for 2:49 a.m. eastern saturday morning from right here >> i can't say i'm going to wake up for this but this is fabulous news i didn't realize we haven't had this capability since 2011 i'm rooting for it i'm curious because we were

talking a lot about elon musk. how hands on is at the company these days >> reporter: that is a key question i'm sure a lot of investors would like the answer to it. certainly what we've heard speaking to his number, two the ceo and president of spacex in the past last year is that he tends to split his time evenly between both companies and that ebbs and flows depending on events and what's going on i would also just note if all of this goes according to plan, another key test in the months astronauts could blast off from here as soon as july and this is the same launch pad where that last space shuttle mission took place. so we're talking full circle >> hope they can pull it off horgan, thank you very much. coming up home ownership is on the rise. one group driving that may be having biers remorse

fast food stocks have been on fire as has their social media presence a look at how the online footprint is helping these bottom lines don't go anywhere. "the exchange" is back in two. guess who just got reinstated! well, not officially. nervous? yeah. yeah me too. don't worry about it, we'll figure it out. i'll see ya in there! just ok is not ok. especially when it comes to your network. at&t is america's best wireless network, according to america's biggest test. now with 5g evolution. the first step to 5g. more for your thing. that's our thing.

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beat wall street expectations. now down to 11% gain on the day. foot locker shares seeing a jump stroong earnings by same store growth shares of new tannex is down now to sue herrera >> reporter: hello here's what's happening at this hour vice president pence taking a swipe at the expanding democratic presidential field claiming they are adopting socialist policies that would setback american freedom he made those comments at the conservative political action conference in maryland >> the moment america becomes a socialist country is the moment that america ceases to be america. and as the president said 24 days ago, so we must say with

one voice, america will never be a socialist country. >> hundreds of be pakistani rallying in islamabad to show solidarity with the country for downing two war planes pakistan releasing one of the downed pilots to india earlier today. here at home unfortunately more people are getting the flu the cdc reporting it is now widespread in 49 states and puerto rico. that's an increase compared to last week. the state not on the list is hawaii let's all go to hawaii that's the news update at this hour guys, back to you. >> everyone is cracking down pinterest, amazon on those anti-vaccination theories. 30 minutes to "power lunch". tyler is going to hawaii is amazon going there? >> we're going pick up on the

news that's just come out that amazon will enter the grocery business partly competing with itself because it says it's going to under cut the prices that their own whole foods i did a documentary several years ago on the grocery business fun story i worked on. it's magic how the produce gets where it goes. you can make a lot of money in groceries. you can. you have very little harbor begin. how do they do it? they do it on volume so the challenges are there. this is a company that knows how to make money on thin margin, amazon but they will be competing with some of the other grocery chains, the albertsons, crowingers, shoprites and all of them and some publicly traded. we'll take a look at that and hear from the apple shareholder meeting as well. >> thank you here's what's coming up on "the exchange". ahead, gap let's old navy

spread its wings the american dream is back and the bryce harper bump. 'sll ahead in rapid fire ♪ ♪ let's go from being on-call... ♪ ♪ to being on-line. american express can help move your business forward with loans, vendor payments and buying power. chat with one of our 4000 specialists and let's make it happen. the powerful backing of american express. don't do business without it.

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let's catch you up on a few stories. it's time for rapid fire on this friday and here with their takes are dom chu and steve liesman. >> this will be awesome. steve, this is amazing >> how do we do this >> leslie will show us how topic one is ticker lyft, lyft has finally filed to go public here's my only thing this would have been a much more exciting ipo if it happened several years ago, right >> absolutely. you look at their financials their growth rate is terrific, 51%. their net losses have been widening about 25% in 2018 so we're starting to see them really spend money and accelerate people who invest in ipos like to talk about act two of a public you want to go public as you pivot into a new business. their act two is touting this idea of scooters and, you know,

various new markets potentially but you're right it would be a much bigger deal if they went public when everyone was paying attention. >> they are gets out there ahead of uber. tops of excitement for this whole batch of companies, airbnb and slack and all the rest, pinterest would investors have benefitted from them going public earlier on so they are more foregiving of the losses, growth is still ahead of them >> so the forgiving thing is an interesting point because if you look at the s-1 for this one of the risks they talk about is this idea they may never make money. they actually say it in the s-1. we have a history of losing money and we may never make money ever again question mark type of thing. it's not just profits. cash flow. these guys are a cash burning machine. we talk about these emerging companies public or private that burn through cash. >> here's one thing i want to draw your attention to

they are going to incentivize drivers up to $10,000 which they can use to buy the stock or have the cash bonus in exchange for 10,000 miles >> 1,000 rides gets you about $10,000 worth of strikes there's different tiers. >> i'm old-fashioned on this $25 billion for a taxi company can't end well in my opinion if i could make this one economic point economists look at this is this true innovation or regulatory aft arbitrage. it can catch up with a company >> look what happened to you per and lyft >> not buying real innovation and not regulatory arbitrage

i remember the day it was a $1.3 million now 160,000. >> i take your point let's talk about gap which is announcing it will split into two independent publicly traded entities all gap brands will become a separate yet to be named company. i wonder what that tells us about athleta. >> i've been covering business news as a journalist since 2010 and since then it's always been old navy as the highlight of those particular companies to the point, by the way, an estimate was on an annual revenue side of things the old navy brand itself generates about $8 billion worth of revenue. all the other brands combined gap, banana republic is around $9 billion old navy can stand on its own as

a company but it speaks to the value proposition. they've been able to navigate with t.j. maxx and marshals. >> home ownership the topic close to our hearts. home ownership rates are rising to the highest since twoir buyers mid-30s and early 40s there was some buyers remorse here i think the millennials wish they bought bigger and bought more >> right this is a good development you want people to be buying homes. one of the reasons, has nothing to do with the home. the home is a forced savings vehicle. the bad news in this story is that it's older millennial, they lost time that they technically can never get back in their lives. what i would say is if you're one of these older millennials

that bought a new home double up raise that equity to make up for the lost time. >> what about the fact that rates are solo because as you know they could go up in the next five or ten years is it really smart to pay down that mortgage at these levels? >> i think it is if you're making up lost time unless you're doing it another way. if you have a discipline -- >> why are they behind >> many reasons. the student loan issue some people had tremendous student loans that they found it difficult to save. people didn't trust homes. people had a preference for not owning homes that's still out there also the idea they had bad credit that was ruined from the financial crisis >> what do you mean they lost time that they can never make up >> one thing in the economic, you lose a year of employment in your life you don't get that back, which is why if you do lose that year of employment you need to work harder to make up lost ground. >> to earn more money. >> if you have not saved as much

as you should have up until this point and for example, gained the equity you would have had in your home you need to work harder to get it for the years ahead. the good news is we're living longer the bad news is the paychecks aren't getting any bigger. cost of living longer increase >> finally mlb.com is reporting in a single day since the announcement that bryce harper will sign for the phillies for $330 million the team has sold 100,000 tickets according to phillies senior vp of ticket sales. so i was asking whether this was really such a good deal for bryce harper because on average over 13 years that's as big but for the phillies they are doing pretty well. >> this is great only because it will add so much drama in the nl east 19 times during the year bryce harper is going to play against the nationals and it's going to be one of those types of

situations where they are going to have that much more kind of drama and maybe that's what the investment is in this guy will get paid until he's 39. that's pretty big from an economic perspective >> maybe too big >> it focuses on the economics which it's not the number of home runs you hit or strikeouts it's the number oftickets you sell >> is it correlated. >> but a behavioral economist -- he sold a lot of tickets it's a good buy for the phillies >> they have to keep selling if they want to cover $330 million. >> that's true >> who is your team? >> i'm a yankee fan. that will create lots of hate mail already i was 5 when i went to my first yankee game brought by my father i had no choice. the amount of hatred for the yankees is unwarranted >> i grew up in the bay area at this point i've been to more yankees games than giants games.

>> giants are my second favorite team >> i'm glad to hear that >> thank you all shares of tesla sinking today after the carmaker announced cost reduction measures. elon musk warned the company will not turn a profit in q1 is there more rough road ahead that's next. 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

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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. let's check on tesla shares. they are falling today now about 8.5% the company announced it will shift worldwide sales to online and say it won't tornado profit in the first quarter tesla announced it's long awaited $35,000 model of the version 3. great to have you both here. tim, first to you. this call last night was unusual. people even asked whether it violated reg and all this about who was invited and whether this

information was publicly disclosed. the real news is that tesla will sell new cars online now are they going to face challenges in trying to do that? >> yeah. it's going into unchartered waters there's several attempts to sell used cars. gm tried to sell cars online a few years ago through its dealers and ran into trouble it's a dream some people have had but execution is the challenge in large part because people want to test drive those cars they want to kick the tires. >> dan, this comes on a day when tesla has to passaic a big bond payment. you know you still got a price target on them 100 bucks ahead of where we are today. you're not more concerned about what looks like a measure to stop their show rooms in order to preserve some cash? >> look, we never thought this was going to be an easy road i think it's something they needed to do in term of the

right immediate sirngs in terms of the 35 k vehicle. it needs to be done profitably what they are doing in terms of the online model, why the knee jerk reaction is negative it's the right medicine long term >> what happens if they can't do the online model talk for a second about the power that dealerships have across the states when it comes to the way you have to sell new cars today >> that's one of the challenges that tesla had from the get go it wanted to own its stores and sell directly to the customer. the challenge has been for 100 years automakers in this country have sold cars through third-party franchise dealers who hold incredible political clout and have laws in all these states that essentially prohibits somebody coming in and selling directly to consumers unless you're tesla because tesla never had franchise dealers. they figured out a way in some places how to do this.

that's their challenge here we go we'll do something even newer and that's sell directly online. >> dan, at the same time they are lowering prices on the higher end model s, model x in china. lower price model 3 is good news in that they got to the $35,000 price tag without rebates. what is the demand level >> what we're seeing in europe and we were there in the last few weeks in the terms of demand, i think their strong model pent up demand in europe that's obviously a key part of the first half of the story, especially with china rolling off as well. but in the u.s. and the high end, there's no doubt they will distinct into the arm of demand. they need to rip the band aid off and come out of that 35 k vehicle profitably for tesla it's not the next three to six months but it's where it's going in the next few

years. although it hurts in the near term ultimately this is the right move >> we'll see guys thank you both. fast food companies like wendy's have gained a reputation on social media for ling insults against competitors. we'll take a look at that phenomenon and how it's boosted these companies bottom lines next i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade.

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welcome back fast food companies are getting social using social media to stay in touch with customers, boost sales and to get back at the competition. >> reporter: some of the highest flying names in the restaurant space has some of the hottest social media profiles online whether it's zinging the competition. or hawking food fashion, yes those are really tacos 0 a denim jacket so much growth in restaurants are coming from online sales they want customers to shop and pay with their apps. digital sales increased 65% in q4 starbucks has 16.3 million active reward members. analysts say a smart social media presence is a good way to create buzz and bring customers

to digital off erosion like delivering and mobile order and pay. with 1.27 million twitter followers and 20 million likes dominos takes its social media presence seriously >> if we're going to be the leader out there, then we've also got to be right in the middle of it with social media because our customers expect that of us >> reporter: for companies like come to no, sir social media is a key piece. a great way to keep its finger on the pulse of what customers are talking about online >> as things are happening in the world wasn't our customers we're interacting with them real-time all the time >> kate rogers joins me now. come to no, sir proved this because we tweeted these companies and said we're talking about you. they wrote back. they had a bunch of stuff to say about it everybody else we got a cold

shoulder >> dominos takes it seriously. one more point that we didn't hit in that package is the ability to communicate one-on-one with your customers and that's something that brands like papa johns are trying to do to rehab their image they released this papa profiles campaign where they're showing members of their franchisee community and the people who work in the pizzerias who they are trying to distance themselves from john schneider that can be effective. >> how big are these teams one or two to write back person to person >> certainly we asked dominos when they were here how many people we didn't get a specific number. we get the sense they have a full team and working on it 24/7 >> let's meet the managing director at piper jeffrey. how does this factor into the success fast food companies

getting eight right in today's environment? okay nope not quite there. nicole we'll come back to you in a minute >> kate, so let me ask you this as well have we seen, because of the performance here for these fast food companies has been really, really strong. >> that's right. >> why did they get to weak to begin with and can social media be part of their comeback story? >> i asked about the social media symptom performance correlation. they said it doesn't necessarily correlate to a stock getting a nice pop or foot traffic coming in the door but it is a great way to get people know you've got promotions going on, mobile order and pay, you've got delivery and when you're doing things like delivery and using the apps, the ticket prices tend to be a little bit higher. that's one good thing to keep in mind we're trying to push people to those platforms. >> do you have to have technology as an all-in-one model that works or can people be simply good at social media because mcdonald's, for example,

has just been talking about one of those companies also ahead of the game when it comes to in-restaurant ordering and that kind of thing. >> rolling out the experience of the future, they're partnering with uber eats and that think brands doing it right do consider the social media aspect a part of their larger tech plan and really considering it to be, you know, a big piece of that puzzle not just something they're doing because other brands are doing it they're being smart. >> has the sassiness of wendy's helped >> we're talking about it now. >> so when you think about brands being sassy, taco bell comes to mind. user engagement. wendy's, chipotle always tweeting funny things about their burritos, domino's all the buzz online. >> for a company like domino's or like these others to take it seriously, usually means you start getting corporate speak. they're somehow finding a way to keep it cheeky but not get too too much trouble. >> they pile on one another

which is funny wendy's is fighting with burger king fighting with mcdonald's and domino's is going at it with pizza hut. they're competing for your attention and your dollars but i think the public enjoys it we're talking about it, it's free buzz and doing really well with their digital offering, important. >> fast food twitter almost as fun as basketball twitter. thank you so much. kate rogers. one app for your transportation needs aut is what the city of berlin isbo to launch how could it work or could it work here? live in berlin next. " " 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?

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welcome back to "the exchange." checking in on the rally today, we've continued to move higher now. the dow about 70.5 points in the green. nasdaq up about 50 nasdaq the strongest today with a two-thirds of one percent gain remember for the major averages for the s&p, talking about the best start to the year since the early '90s we're up 11% so far and of course, the nasdaq as we mentioned earlier, coming off a 10 week win streak dating back to this christmas eve lows nasdaq hasn't done that since 1999 crude oil down 2.5% just below

the $56 a barrel mark. interesting to hear off the top of the show, brian reynolds say those deflation pressures in the economy, well, look at the price of oil and look at the deal from amazon earlier today "the wall street journal" saying they're looking at expanding low cost grocery in a number of cities a lot of fed watchers keeping their eyes on those levels there. let's get out to deirdre bosa with some headlines on huawei for us deirdre? >> reporter: hey, kelly. we are getting word that the canadian government is allowing the extradition of huawei cfo to proceed. this decision expected, today the deadline next court appearance set for march 6th, next week in vancouver and this decision clears the way for her to be -- for her extradition hearing this sets in motion, kelly, a process that could take months or even years and be potentially politically explosive as we know china has demanded that canada

release jo and this is certainly an interesting development >> deirdre, not least because after hearing from larry kudlow, a lot of progress with china on the trade deal if you were in the camp that believed this extradition was part of that, you might have thought the u.s. would relent here instead, it looks like this was moving forward >> right and the president has said that he wouldn't hesitate to use the ceo as a tool of bargaining chips. we'll see if he says anything between now and next week. >> we watch the market reaction to that. just in case investors took that as a sign of friction at all along the way, the justice department said this is their investigation operating on a separate track in the meantime, as the u.s. has been making the case to its allies that they should use huawei equipment, deirdre,

suggesting people are going the other way and don't have a lot of alternatives and make sure they don't have concerns about spying with this equipment >> kelly, i was just talking to a security expert and asking what are the alternatives, right? not many companies in the world that make this kind of network equipment that enables this next wave of 5g networking and he says that it's all in the implementation so countries are deciding now, you've got australia, new zealand, whether to outright ban chinese equipment. the u.s., of course, considering a whole outright ban as well so this is all tied together and tied in with the trade talks and meng wan zhou.

the market expecting more rate cuts and about to celebrate the s anniversary next week, rick. >> i find it fascinating too but i personally think the market will be better and okay with a fed tightening if it keeps behaving like it is. i think the issue that's being interpreted wrong is the definition of a pause. the pause was because the markets pause. jay powell was in essence tracking the market. he wanted to pay attention to it actually be honest about being kind of market dependent well, the market's change. it's firmed up a bit maybe it's just exactly the reason why is because powell's more of an onner iss eobserver the market has been on fire this week up almost double digits in tens and 30s. nine basis points on the week. the third year bond closed right here would be at a new high for

2019 so i think applause is just what it is. applause i think the next move is a tightening thought it all along, it's just when. >> rick, thank you rick santelli. that does it for "the exchange." time to join me with tyler and melissa on "power lunch" which begins now we'll see you soon, kelly. i'm melissa lee with tyler mathisen new at 2:00, the race to go public lyft filing for an ipo inside their financials and what it means for uber in the ipo pipeline amazon planning to open dozens of grocery stores. stocks in the sector are dropping walmart and target could be impacted too markets having the best start in almost three decades "power lunch" starts right now >> and welcome everybody to "power lunch" for a friday i'm tyler mathisen stocks are higher to kick off the new trading month. cau