and safe cisco systems. their last earnings call they blew it out of the wall. that's a good one to hold. >> joseph? >> best buy. think about where this company was december 2012. >> all right we're watching the dow down 160. that does it for us. "the exchange" begins with kelly right now. hi, everybody. here's what's ahead this hour. stocks are down again today. theyor pace for their worst week of the year so far can millennials come to the rescue branchless banks one company has ditched their physical locations, gone entirely digital and doing quite well could this be the future model for the banking sector and tesla under 100 bucks a share. that's the bold call we'll see if his argument holds water. we begin with today's market >> a confluence of factors in focus today. the u.s. trade deficit soaring to a ten-year high and the oecd cutting its global growth

forecast we are lower across the three major indices. the dow at session lows down 155. we were down 160 just about a minute ago s&p 500 lower by 18. and the nasdaq down about 63 here's what's moving us to the down side. technology, health care and energy which is currently the worst performing sector. led lower by oil producers hess, baker hughes down. nearly 3% to 5%. even with today's move to the down side, energy still on track for its first quarter since 2011 one mover in the travel space. and that's trip adviser. analysts dounl downgrading the stock to underperform from market perform concerns about the younger traveler switching to google for their travel needs stock down 3% and down about 6% year to date let's put this into perspective. shares of trip adviser up 57% in 2018 a bit of a breather today. >> we'll talk more about that in rapid fire

thanks welcome to "the exchange." i'm kelly evans. a big widening in the trade deficit to nearly $60 billion in december that's prompted downward revisions to q4 gdp which could put that 3% growth figure in yepdy. adp said 183,000 private sector jobs were added in february. slightly below estimates but december revised and january revised way higher let's get a check on bonds and currencies with rick santelli at the cme. rickste? >> yes, a lot of action. it was a december number for trade so be cognizant of that. it's kind of old remember how the markets were in december we hope things change with regard to change but being december, that means a $621 billion 2018 deficit. but the important thing is you need to benchmark it to something. let's use gdp. it's 3% of gdp 0.2% more than 2017 to giveyou perspective. but that, along with the stock market, is putting pressure on

rates. they are paying attention. look at the intraday, five-year down four base points. lost the 250 handle. three-day at 30. one of the star performers with respect to higher rates jumping over the last six or seven days. it's down about three basis points as well if you look at the s&p versus 10-year yields over a three-day period, you can see that interest rates and stocks are now ping-ponging, paying a lot of attention to each other that wasn't the case just about a week and a half ago. finally the dollar index completely impervious to everything else going on it's within striking distance at 97 still holding the top of range that includes not only this year but much of 2018 as well kelly, back to you >> rick, great stuff thank you, rick santelli you heard it here last week. our market strategists were saying the fed has gone too far, too fast are rate cuts next and how does that square with the economy let's bring in chief strategist at jeffreys and bill smeed from

smeed capital management both on set. it's a pleasure. welcome to you both. let me, david, start with you, on this idea that the fed may be cutting rates at a time adp said we added 300,000 jobs last month. >> market has it priced for next year, not this year. this year the market is priced as on hold the fed has told you patience. a few fed presidents have come out and said they still might get one, but most people are focussing on this inflation data that's the real story. it's been the story for me all last year. we got freaked out on inflation. shouldn't have we got miscommunications that got fixed in january now we're still sitting here with inflation rate that's still below 2% after two years of being below most estimates of full employment. phillips curve is dead why are we -- >> that curve is the idea is as the labor market gets tighter, pressure on interest rates goes higher why are we getting growth but no inflation?

>> reminds me about five, six, seven years ago you heard a lot of negatives saying we've printed so much money we have to have inflation i thought about it like a monopoly game. let's say a monopoly game. you used the parts so much you bought a new one but the cash hasn't been used much so you just doubled the amount of money in the bank. it doesn't cause inflation unless the money gets used so what's happened here and we've had a lot of discussions over the last couple of years. we have this massive number of people, millennials, 95 million that will move through the system but they've been slow to aggregate. things are running two or three years behind you heard warren buffett say, home building, gee, i'm really surprised it hasn't picked up more it will coalesce at some point in time. the money has already been created. so at some point in time, when their borrowing power coalesces, they'll drive interest rates and my outlandish prediction of

the day. ten years from now, people will look back at what the fed was doing now and say, why didn't they do more to stop the inflation that we have now >> i understand. but we've been thinking that for a long, long time. it makes sense everything bill is saying makes complete intuitive sense we're ten years on now and everyone who says just looking at financial markets, says, look, inverted some of the short-term corporate borrowing rates. if you look at the difference between the ten-year and inflation rate those mess ritrics suggest the tightened too much do you think bill is right >> i don't think that inflation story is a viable story. i think we have a lot of disinflationary risks. technology, demographics, corporate tax reform >> you think demographics are going to be disinflationary? >> massively >> you think they're going to be inflationary >> hugely inflationary when everybody wants the same thing at the same time, the price goes up.

and secondarily, the baby boomers were a large group of people working and as they retire en masse the next ten years, and they will retire en masse, we're going to have labor shortages so the com -- and i don't mean just labor shortages trying to find somebody to drive an amazon van. i'm talking about labor shortages -- >> knowledge economy >> knowledge economy labor shortages. that will drive the wages up, and it will eat into the profit margins of these amazingly profitable corporations. >> you've had a basket where you said if you want to play this, play it with the builders, the home depots, the financials, the target, discovery, comcast let me ask david about this. why do you think this is going to be disinflationary? >> we saw a large increase in inflation it coincided with a large increase in the labor force. the '70s was about baby boomers coming and female labor force participation increasing we had more job creation in the

'70s than any other decade and more inflation than any other decade when we are sitting here now with almost no labor force growth japan has negative labor force growth scand nafia has no labor force growth all of countries stlat done this qe and money printing. people get jobs because they want to buy things we don't have -- >> slowly, slowly starting to grow >> it's not growing. it's still going to be 1% or 2% max and with immigration changing, might even be less >> so add to his point -- i agree with him, okay, that the combination of not having enough labor and having a 95 million people want what 65 million people wanted, we're going to add in the 30 to 45-year-old age bracket the equivalent of the 35 to 45-year-olds in canada, scotland, ireland and britain and shove them into the system in the next two years. >> the northeast housing market hopes you're right because right

now it -- we've got to go. it could use a little help dave has gone to florida that's a different story but thank you. appreciate it very much. two different points of view about what's going on in this economy. david and bill shares of ge are continuing to be under pressure today following comments by ceo larry culp yesterday let's go to morgan brennan at the nyse now they may have negative earnings this year see what it's doing to the stock. >> we're at session lows right now for the day. down 8% with that ge stock cash continues to be the chief concern here and the disclosure that industrial free cash flow would be negative in 2019. it's what triggered the sell-off for all of this. before that, the stock was up 45% from its december lows so really throwing cold water on the rally. bottom line, power still going to take years to fix restructuring there will cost more also ge capital, formerly a cash contributor, will continue to require more money another $4 billion this year

according to culp. that said, he does expect the pressure on cash flow to lessen in 2020 or 2021. in terms of reaction here from wall street, the bears have more ammo today and the bulls are cutting price targets but also cautiously doubling down on this being a multi-year turn around story to be bought for the longer term. you just mentioned jpmorgan. getting a lot of attention this conversation coming from one he had with culp yesterday at a jpmorgan event. one of the other reports that really got my attention is from scott davis. ge power gen the gift that keeps on giving. aka, it's a blank sandwich a good deep dive into the hard hit power business but in general, more is going to be revealed tomorrow the company is holding an event to better explain its insurance business that piece of capital that's required large reserve charges over the last couple of years and into the future and next

week we finally get a bigger, broader, 2019 outlook for the company. back over to you >> not one to mince words either morgan, thank you. here's what else is ahead on "the exchange" today >> coming up -- adding up the numbers. we do the math to see just how much the tax cuts will end up costing. deficit danger why it's a huge issue that no one is paying enough attention to thatcould have big consequences for your money. plus, is tesla at a tipping iss hexcng th i"t ehae" on cnbc big, bold promises like... it'll find life on mars! but here's the thing. you don't live on mars. (beep) you build wind turbines. supply car parts to thousands of cities. answer millions of customer calls a year. like this one: no, i didn't order this.

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do you guys sell, other dogs? now that's simple, easy, awesome. customize each line by paying for data by the gig or get unlimited. get $250 back when you pre-order a new samsung galaxy. click, call, or visit a store today. welcome back a new report from the congressional budget office is shedding light on the cost of the trump tax cuts steve liesman is here with those numbers. run us through them. >> a new report from the cbo finds tax cuts will only generate enough growth to offset 20% of their cost. a blog post says the tax cuts will generate $2.5 trillion of extra growth over a ten-year period does come from the tax cuts but it's going to boost the deficit by $2.3 trillion so the added growth will kick off more revenue for the federal government that will be $461 billion. now we'll do the math for you in case you aren't doing it at home if you look at all this, you count the deficits, everything

like that, cost, revenue as a percent of the cost is 20% as in the tax cuts will only sort of 20% pay for themselves now the trump administration has different numbers. they disagree. and the difference between the administration and cbo you can see in this chart. the growth element the administration is consistently forecasting about a percentage point higher gdp than the cbo does the result, bigger tax cut ferktss yielding a much lower tax cut. still so far, % growth in 2018 if that holds up in round two of the forecasting bout, the judges may have to adjust the scorecard. >> better apples to apples comparison take the revenue that will be raised and compare it with the cost each year which comes from the higher deficit so only a little bit of an increase, for example in what that extra borrowing will be because interest rates are so low. so year by year, the revenue exceeds the cost it just doesn't exceed the up front number, the trillions that we're talking about. >> that could be

there are a lot of different ways to slice this maybe a word of caution is worthy here. these are models and they try to incorporate different ideas for how people react to stimulus. what happens, what's the kickoff from growth. they almost certainly will be wrong and people should sort of object and lean against them you can't lean against them with a feeling. you have to come up with a better model >> steve, thanks we've got a lot of big eye-popping numbers on the deficits lately. the federal budget gap up 77 months from the year prior and the u.s. trade deficit hitting its largest in history at about $891 billion. joining me is david wesle, seni senioriel fellow in economic studies. we were talking about this earlier. it's the headlines no one cares about. even warren buffett said i was overly worried about the deficit all of these years the deficit hawks got voted and thrown out of congress does it really not matter?

>> i think a couple things we know one is the bond market isn't worried about the deficit. interest rates are still very low by historical terms. secondly, the public doesn't care about the deficit i haven't seen anybody with a picket sign on the washington mall say raise my taxes or cut my medicare. the new wrinkle is a number of economists, larry summers, blanchard, formerly of the imf have pointed out that when interest rates are low and likely to remain low for a long time, there's less urgency about addressing the debt. but that doesn't mean we can continue to have a debt growing faster than the economy forever. the question is, when do we hit the wall >> i wonder sometimes, if you look at it on a household basis. i don't love making thus comparison but hear me out a household would say you can't spend more than you have but if you look at the debt number, so you have debt on your house but what's your net worth as a

comparison for that? we look at the u.s. economy, we often talk about the deaf sfici, the debt but not about the wealth of this country is that because it doesn't matter or because -- why don't we talk about putting that into -- >> i don't think the household metaphor works very well here. we know that some day taxes have to go up or spending has to be cut a lot because we're an aging society. and the problem we have now is we are borrowing lots of money and much of that borrowing is not going to investment. it's not, to go back to your metaphor, like we're borrowing money to send the kids to college or renovate the house. we're doing it for current consumption. so a lot of the argument isn't so much about how much we're borrowing. it's clear we don't have any trouble borrowing at this rate we're not crowding out a lot of private investment at this rate. the question is, are we borrowing this money in ways that will produce benefits in the future and the sad truth is

not enough not very much. too much of the money goes for current consumption. health care for the elderly, social security. but all that stuff and not enough for public investment and r&d, education, childhood health and all that. >> when inflation comes, we can deal with it we heard this when we were talking about mmt which would put everyone on the federal payroll and then do -- kick them off or something when inflation picks up even our discussion at the beginning of the hour was about, look, when we start to see the inflation, then everybody can react. is that true >> i think basically, yes. mmt is nonsense and the notion that congress is going to raise taxes and cut spending to slow the economy in order to avoid inflation, i think that's hopeless the reason people are rethinking this is we have these models, and the models tell us we'd expect to have more inflation now. when the world doesn't perform as your models expect, it's time

to rethink things. and given that it seems to be very hard for central banks not only here but in germany and japan to get inflation up to their targets, it does seem we can be more relaxed about the risks of hyperinflation. it is clear that if inflation got to 3% or 4%, the fed would know what to do. they'd raise interest rates and get inflation down but that really hasn't been the problem for the last decade. >> it's amazing. more so than that even david, thanks. we've still got all the other milestones we're hitting in the fall debt ceiling and so on but we'll still be talking about this, too. david wessel one bank is betting people won't miss its branches, and it's closing most of them to shift to mobile. is that a good long-term move? we'll talk to the ceo. plus, a top nfl prospect a fractured collarbone and a 3d printer how they helped get their

quarterback back on the field. we'll speak to them about that ahead. "the exchange" is backn o. itw - hello, i'm brad castillo. did you know that americans who bought gold in the year 2005 quadrupled their money by 2012? even now, experts all across america predict the real gold rush is just beginning. don't wait another day. physical gold coins are easy to buy and sell and one of the best ways to protect your life-savings from the next financial meltdown. - [announcer] today the u.s. money reserve announces the immediate release of u.s. government issued solid gold coins

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gold is now on sale at prices unseen in years and this year could be one of the greatest gold buying opportunities of all time. call now while vault inventory remains. as one of the largest u.s. gold coin distributors in the country, the u.s. money reserve has proudly served hundreds of thousands of clients worldwide. don't wait another minute, call now to purchase your american eagle coins at cost, for the amazing price shown on your screen. welcome back "the exchange." dollar tree is among the top per formers in the s&p today reporting better than expected earnings and holiday same-store sales estimates also beat. shares up about 4% on the flip side, bj's wholesale is falling that company reported the profit

fell nearly 4% in the fourth quarter and sales slipped. it dirkd, however, give full-yer guidance that topped estimates and the biotech sector is under pressure the ibb etf is on pace for its worst day in nearly a month. amgen and ilead. >> hello here's what's happening at this hour homeland security secretary kirstjen nielsen testifying before a congressional committee about the current situation on the u.s. southern border she says the crisis there has not been manufactured. >> at the current pace, we are on track to encounter close to 1 million illegal aliens at our southern border this year. our capacity is already severely restrained but these increases will overwhelm the system entirely this is not a manufactured crisis this is truly an emergency >> former nissan chairman carlos ghosn released from tokyo's

detention center after paying a $9 million bond. as part of his bail, ghosn must live in tokyo and be monitored by surveillance cameras installed at his home. the celebrity chef marrow batali has cut ties with his u.s. restaurants as he fights an investigation into accusations of sexual harassment he sold his shares in the 16 restaurant operation which included babo and del posto to his former partners. that is the news update this hour back to you guys kelly? >> we're just embarrassing seema eating her lunch >> what kind of soup is it >> it's what kind? >> cauliflower soup. i hear it's good, right? i'll come have some of the chips later. >> i'm here with tyler mathisen with "power lunch. >> beige is the color. i just love that don't you love beige >> i love the beige book >> the beige book is the most aptly titled thome in

literature >> if you take the time read through all of it -- >> you are relentlessly positive you bring good energy. >> where doels you hear things like one report says his shipping contacts reported wage pressures. >> joe connolly on wcbs radio is where you hear that stuff. we'll talk about the beige report comes out. we'll take a look at it in light of reports of a slowing economy in the first quarter of the new year some of the reports come from the period where the government was shut down. there are lots of indications that maybe we have reached peak job growth for this cycle. we'll take apart the beige book. we'll also take you inside a radical new concept in home building a fireproof home which indeed may hold a lot of promise in fire-prone parts of the country like california. >> it seems to work. >> it does seem to work. make sure you catch this one because -- >> we'll keep our eye on a white house jobs counsel meeting which apparently begins at 2:00.

the public portion of it the taped playback at 4:00 >> to be a fly on the wall >> and we'll go eat the soup now. >> here's what else is coming up on "the exchange." >> whiskey is not going down smooth with investors. millennials are not traveling with trip adviser. attacks on tech giants and the kids are all right it's all ahead in rapid fire duncan just protected his family

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okay let's catch you up on a few stories that should be on your radar today. time for rapid fire. here with their takes are bill griffeth, courtney reagan and robert frank we're already talking about this one. shares of brown foreman are on pace for their worst day since 2009 the companio ceo warned tariff uncertainty is a big headwind. they make popular whiskeys they reported higher net sales for q3 but also posted a revenue miss >> i think this is a short-term problem. i mean, okay, so the algorithms read the headline and decided to get out of the stock today, but the tariffs we all know are

going to go away at some point and it's not a problem if you look at a chart of brown-forman going back ten years, this stock has been going up for a long time it finally hit a wall last year. why? probably the talk about the tariffs. so i don't know. i see opportunity here >> and it didn't really come down too much. what was also interesting about the earnings report is the super premium stuff, the woodford reserve which is like $150 a bottle it's my job to bring you the most expensive stuff you've never heard it that's where they had 24% growth versus the jack daniels stock which is single digits it's that really high end stuff the younger consumers, millennials. they love whiskey. >> remember when we were interviewing the ceo of constellation brands and where were they making their money from beer. that's not the case anymore. >> mexican beers, one of the only growth spots and constellation has said the lower end wine brands are not selling. so people who were typically

buying that in the past are going fully up market or cannabis or -- >> my thought with all of this was, i didn't know you were that price sensitive as a consumer of your liquor or alcohol of choice it seemed if i go to a restaurant, i don't know -- >> for the tariffs to make an impact >> yes that's what i don't understand your really that worried that someone is going to -- ooh 20% more i'm not going to go with my favorite brand today >> should make it more appealing. >> where they're finding the difficulty in sales is overseas. there are these retaliatory tariffs making it more expensive. when our dollar is getting stronger it should be cheaper, but it's not. >> when there are tariffs on whiskey coming into china, those consumers versus another scotch -- >> always a treat for me when i get something like that. >> we need to send eunice yoon out to investigate this. >> exactly next up, a new note is

downgrading trip adviser they are citing the platsform is struggling because more millennials are buying more trips on google. they only got the green light in the last couple of years now it's catching up with trip advis adviser. >> i was just talking to a group of friends and we were talking about airline prices and everyone said oh, do you use google i use google now so i think it's happening in this millennial cohort it's happening >> so much for kayak or other price comparisocomparison >> the other way is trip adviser is trying to move away from hotels and airlines toward experiences because millennials love the restaurants, the adventures >> the whiskey tasting >> you know how many bachelor parties are organized around stuff like that? >> so trip adviser is in the midst of this big transition can we move away from hotels, which is three-quarters of their business right now toward experiences and what are the margins, the prices on

experiences and what will people buy as part of that? or are they going to do their own research >> what did you do for your bachelor party, bill >> i'm not going back there again. oh, my, the memories >> at least you remember >> i am told what happened >> we'll talk about it on the break. >> yeah, okay, sure. >> now the french government taking aim at internet giants like google and amazon by introducing a 3% digital tax this would apply to the french revenues of about 30 major companies. most based here in the u.s it's just a tiny portion of revenue but you tax coming like that you'll get less of it >> this could be the tip of an iceberg. and what i find interesting is the french are only going after the companies that use data to establish advertising revenue rates. they're not going after the e-commerce companies that sell something on their websites. they're going after the googles and facebooks and so forth

and if it is successful in france, you know there will be other eu countries that are going to try to do the same thing. >> they try to do it eu-wide >> i'm surprised it's taking one country to do this when you could do this through the whole european community >> that's what i thought the ripple effect is probably what they're more worried about. going back if it passes in france and making it broader >> these are maturing companies. the free ride is over. >> they are big american companies. they've changed a lot. it's not -- >> they're going after some asian companies as well. >> yes, they are, for sure but it's an easy target. >> exactly >> and you get the revenue you can call this a denim dilemma. diesel usa, remember diesel? it's filing for chapter 11 bankruptcy protection citing mounting financial losses and a series of bad investments. levi strauss is getting ready for the ipo. if you told me in 2003 that diesel was going out of business and levi's was growing like

crazy, i never would have thought. >> fashion and retail can be fickle we know this it's not all jeans are created equal. not all companies are created equal. you have to operate a retailer in a profitable way. but also there's -- there has been a resurgence in levi's. let's face it. it's sort of this cool vintage idea coming back their price points are also are much lower than diesel some consumers are not excited about paying $300 for a pair of jeans. you can get a pair for $100 or even less of levi's. they're doing this new innovative thing design your own pair come up with maybe -- i think they said 1,000 different iterations from a seven basis point begaining. >> and a new snoopy collection which is very cool >> but the reason this is happening on levi's side is the founding family wants to cash out. levi strauss founded in the 1850s left it to his nephews they have 63% of the company and they've been private since

1985 and they want out. i think they saw this slight sort of momentarily or perhaps up tick in jeans as the finally we can cash out. and i think that's what's really behind their going public. i don't know that their business is exploding suddenly. i think it's driven as much by the owners as the market >> but it has done better in the last seven years >> and in the role of retail i'm not going to tell you about all of this because you already know this. it's not just what you sell, it's how you sell it and this variety that you can get with levi's is very important. it's the nov elelty factor. >> your dad said they didn't want you wearing -- >> i didn't wear jeans until i was in college because they were -- i mean, my family, my parents grew up on a farm so they saw that as farmers clothing >> they said our son will be in slacks >> i was in slacks until i was in -- >> then his bachelor party and he wore jeans. >> finally, a new report from

axios highlights how american teenagers are taking part in a lot of risky behaviors not as much as their parents did. the report based on data from '91 through 2017 cites smaller family sizes and a spike in teen anxiety all playing a role in this >> somebody is not telling the truth. i don't -- >> no, i do. >> wait a minute what happened? wasn't it -- wasn't it just recently that we've been hearing about this heroin epidemic on high school campuses >> not cigarettes, though. >> an opioid crisis. now fewer kids are doing drugs i don't believe it >> the brart it says cigarettes are down what is up is vaping and that's replaced it. but i do agree with the other statements in that i have a 13-year-old and 10-year-old. and my 13-year-old fits the profile of why this is happening which is that they are so stressed, so much sort of anxiety to perform to excel, to get into -- get the best greats,

get to college, get the best job. that's partly the result of the parents but also their peers and psychologists saying when you're stretched, anxious, just this life is so much pressure, you don't want to do these other things add to that social media pressure, fear of missing out, shaming, bullying, i'm not pretty enough. there's so much anxiety for these young kids that these -- the last thing on their mind is i'm going to do drugs or i'm going to -- >> they're not going to those behaves as an outlet >> now they're doing whiskey >> and heroin. what a bright future we have >> wasn't that scott gottlieb's whole thing? he was going after the opioid crisis >> i don't have the numbers here but the drug use category while it's down is not down substantially. maybe 24% in the early '90s and could be something like 19% today. so it's a little bit of a decline but much greater for -- >> cigarettes was the biggest decline by more than half.

like they didn't add the vaping stuff in there and that's a huge thing, even kids as young as 12 and 13 >> i wouldn't want to go back to adolescence. >> me either or my 20s. >> only if you could wear jeans. >> now i'm in dad jeans. >> safer with every passing year shares of tesla falling nearly 17% so far this year. one of the largest shareholders doesn't think elon musk necessarily needs to be ceo anymore. this as another watcher of the stock says it could fall to $100 this year. is tesla at brkia eang point that's next. well not everything, i mean you're still blatantly sucking up to me gary. ahhh... stop it. servicenow. works for you. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model.

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welcome back to "the exchange." tesla is back in the spotlight with morgan stanley's analyst saying investors should be cautious on the company's growth prospects. case learning founder whitney tilsson is out with a call

saying musk has no more rabbits to pull out of his hat by the end of the year, the stock will be under $100 let's bring in charlie grant for "the wall street journal." welcome. >> thanks for having me. >> you've been critical on the company. why does it feel like lately there's this sense that tels la is at a make or break moment i'm seeing a different kind of call even this whitly tillson thing he said i've been wrong on this before all of a sudden, it seems like he embodies the concerns out there. and i wonder why this is all coming to a head right now >> sure. i think the volatility in the stock has always been there. so the stock dropping sharply over a few days is not scary on its own. the problem is that the growth narrative is really falling apart if you take a closer look. and wall street expectations are just way too high. >> the growth to falling apart goes to the demand side. one thing we've assumed is people are clamoring to get their hands on a tesla

wait until the company comes out with the $35,000 model 3, which it has, and the stock is off to the races. now we're at that point where they have a $35,000 model 3 and instead the stock has been -- it's underperformed on a five-year basis now. >> this is why you have to read the fine print and not just the headlines. along with that announcement came news of a major store closure initiative we don't know how deep sales will be online only. third round of layoffs since june third price cut since january 1st. i mean, these are not things that a normal growth company with a legitimate growth story ahead does it's just not. and this is going to be a problem as the year goes on because on july 1st, there's going to be another reduction in the federal tax incentives for electric car buyers, for tesla specifically that's just the way the program works unless they rewrite the law. there's going to be another demand issue a new one coming ahead in three months and the old one is leaving a

mark and i would also add, if you look at this 10k that just came out the third week of february, there are repeated references to expanding the retail footprint in the company's business plans. and they've done a 180 on that in two or three weeks. so the time -- the news itself was bad. the abrupt u-turn should scare people >> is it the best for this company if someone other than elon musk is the day-to-day leader, the ceo? >> there's a double-edged sword. the company's operations might improve but what happens to the valuation. there is -- the one thing bulls and bears can agree on is there's an elon musk premium in the stock. so what happens if you remove him? i don't know what the answer is but i'm interested to find out if we ever did >> charlie grant from "the wall street journal." 3d printing could be the key to getting football players back on the field faster. we talk to two students who used that technoly ogto save their

teammate's prospective nfl career, next ♪ at pgim, our bottom-up approach uses a technology lens to identify long-term winners. from energy... to real estate... to retail. finding such opportunities for alpha is the true value of active investing. and around the world, you have a partner in that pursuit. pgim: the global investment management businesses of prudential.

after duke university quarterback daniel jones broke his collarbone in week two of the season, the team turned to a

couple senior engineering students and walk-on players for a game plan to get him back on the field using 3d technology. the results could be a game changer for the sport. clark bullet and kevin join me now. the fact we're having some duke guys on, i'm going to get a lot of blowback for this welcome. >> that's awesome. thank you for having us. >> we're really excited to be here >> kevin, explain to me. you've known daniel jones the quarterback for -- you've known each other for a period of many years. how did you come up with the idea to help his collarbone heal using 3d printing? >> our engineering curriculum taught us 3d printing, and we're able to use that to kind of put it to good use the best use we found. clark can explain better because he originated with the idea. >> sure. so we actually came in with daniel in the summer before we even started at duke he was a walk-on with us at first. we grew really close to him. then the idea came when kevin

and i were talking to our athletic director happ in the years after that he was excited about the use cases that 3d printing could have in football he was looking for a way to use it and sadly, the first time he was

clark can kind of explain a little better because he is the one that originated the idea >> we actually came in with daniel in the summer before we even started at duke so he was a walk-on with us at first. so we grew really close to him but then the idea kind of came when kevin and i were talking to the athletic trainer in the years after that and he was about the use cases that 3 k printi pri k printing could have. and sadly the first time that he was able to was with daniel's injury >> so kevin, i understand that you were playing northwestern. daniel breaks his collarbone they initially go to him with typical kind of cast and it wasn't working hod yowguysk on kraegt creating the rightmode it began with ascan ss enti his entire t andn we were able toreatmodeat would behe pct gtry to optimize com abi and protectionprotthe outside of hollarbone. >> wt ju matof trial and er mea i read that you hadstarthe 3d printing, when you'dake or did you have to cup w whole new soft promingto have a for his collarbo wee unliar with, so that e was a learningurve but it was a ptypitage so i'd say raprotong to reses we have at duanks lowe somial and error th h sometry and then make some ange then be able to prin and see and improve model evenhe nday.>>rk, i read that tt maker is goio start doing 3d safed iner in to make it ou think that the could be re alications of thi ve yver heard of people >> well, so i'm not ly s we jhad l these amazing resources availaat de that allous t thi-credit incredible project but the ssibies e out ther 3d printed wri bran su so it has happened be, b t many times >> i rd you're going o p arndhemecal school and if you are comin-- it's been cto rabout. thank you both for joining us.ay

findots ucceith his healedlarb that he does tooeallpe >> thanks for being here meantime radius bank has ditched all but one of its branchs which serve at its headquarters now. and that is in favor of mobile banking. we'll speak with the ceo about why he made the switch and if it is the future of banking next. test tes ion. we see homes staying cooler, without the planet getting warmer. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved.

. welcome back we've been talking for years about the future of banking and how technology is disrupting the industry our next guest was at the

forefront of that changing landscape making the decision to close almost all branches in 2012 and going completely digital. with me is mike butler with radius bank and also kate rooney mike, tell me about how the experience branch-free has been. >> it's been outstanding it really was a vision of ours back in '12, '13, '14, post recession that there would be this really strong key hademand the customer to bank with their device versus the branch it was a natural evolution technology assumed it, d demographics drive it. and we wanted to be part of the future instead of the past and so we tried to create that amazon-like experience that we know that customer will demand >> so a lot of banks have been closing their branches because they are not as productive anymore. did you have to say okay, we're not going to put it into the

branches but go have to invest pretty heathey havheavily to ma technology really good have you had net cost savings or more investment? >> it's been all net cost savings. the cost to operate a branch today, real estate, technology, very expensive today with the advances that are being made in the fintech world, it is fairly easy -- not easy, but more readily available to get this technology. >> and we see, kate, every day there is another headline about whether it is a fintechcompany offering more banking services or a bank offering more fintech services >> it seems like a lot of these guys are offering new products when they hit a certain age. but this whole partnership model is interesting for you guys i would think that you would have to move at a pretty quick pace either they uts reither run out of fun or have to prove a use case. >> it's actually been our competitive advantage. we feel we are a very agile

company. when we twauk falk with fintech we help they get into business, they love to be in an industry that can be disruptive and we're there, we kind agree with the model. so we say we have to have a short window, do it quick, an agile appropriate and we get things done quick. >> and when i read through this, i think maybe i can start a bank alloy's decision engine when it comes to loans and that processing narmy which is a way of doing online and mobile banking and so forth. treasury prime, and then to advertise, micro target, nerd wallet and micro brew. so an incredible way to grab all these sperm licialists we said that we would embrace the fintech world. these are very good companies. the backbone technology in the

financial services sector today is predominantly designed to serve branches and not the demands of a virtual client. so you can't get that experience so we worked with those companies that you all named and we took a process of opening an account, a depository account. we want your core deposit account and how you define your relationship and with those companies, we took it from a ten minute process -- now, ten minutes in an e-commerce situation today is a lifetime, right? so we took to two minutes and 37 seconds. >> to open a deposit account >> to open a deposit account and i think that is the type of experience our client demands. but you just can't do it without embracing fintechs >> that is the future. as goes radius, so goes everyone else mike butler and kate, thank you. i'll go join tyler and melissa with "power lunch.

>> and welcome to "power lunch." we begin with the beige book s&p down by 13 points. nasdaq down by 51 points as for the ten year treasury yield, we are at 2.69% here. let's get to ylan mui in d.c >> only 10 of the 12 federal reserve directs reported that their economy is growing and then the pace was just slight to moderate two districts, philadelphia and st. louis, said economic activity was flat and half of districts said that government shutdown slowed down growth. overall the fed said consumer spending was mixed with bad weather and the higher cost of credit weighing on retail and on auto sales on real estate, the fed said that residential construction was steady or higher, but home sales generally lower. manufacturing strengthened, but a number of companies said that they were worried about tariffs. weaker globa