joe lewis from tavis stock is an 11% holder who bought more >> qualcomm. relatively small trial going on between apple and qualcomm in san diego. jury should come with a verdict on friday. >> dow up 172, 173 2815 is where the s&p is kelly and "the exchange" begin now. thank you, scott hi, everyone here's what's ahead this hour. a systemic problem consumer reports says they've uncovered big issues with the faa's oversight. what they found and the role is plays in the most recent boeing crash. rally on the market's hot start looks like it's back on track. we'll talk about what's driving these gains. and faking it to make it what the recent admission scandal tells us about the internal workings of college sports dom chu is here with a look at the numbers. >> we're near the highs of the session. didn't look like it was going to start off that way dow up 177 points.

you heard the key level, 2815 for the s&p 500. this represents an area that has topped out the market over the course of the past few months. we'll see if the bulls can get it right over the 2815 hump. nasdaq leading the gains by almost 1%. capitalizationwise, small cap stocks year to date that gain there 16%. it could be the best quarter one start for the market in small caps since 1991. small caps a key part of this. and if you'll look at the down side, balance things out there's red, down across the s&p 500 on the bottom side of things discovery, off by 4.5% viacom, 4% cbs, 2%. many of these media companies responding in large part to at&t confirming that its directv now streaming packages may eliminate some or all of these channels that are owned by some of these content providers for that reason those media stocks very much a lagger in today's market action

>> dom, thanks welcome to "the exchange." i'm kelly evans. and lots of economic data. durable goods rebounded in january. it's a good sign for the economy. u.s. construction spending unexpectedly fell in december. meanwhile, inflation remained muted last month the producer price index rising just 1.9% for the year let's drill down on today's rally and see how markets are making sense of all this bob pisani at the stock exchange >> we're finally here. we're finally breaching the 2,800 level in the s&p 500 we have a shot at getting over 2820 why is that important? this is where five rallies have failed in the last six months. a break above 2820 that may drag in even more investors who have been on the sidelines. one thing might be helping us today is friday is a quadruple witching expiration. this occurs four times a year. it's the quarterly expiration of options and future there tends to be a slight

upward bias in this week it's been up 24 times since 1983 down 12. that means up 2 out of 3 elsewhere, boeing is seeing more countries ground the max 8 plane, including canada notably today. in a note to clients this morning, cowen came out and said because boeing has a software fix in hand which will be rolled out shortly, we don't see meaningful long-term risk. this is typical sentiment on the street the key is whether this is accurate or not. >> bob, thanks so true. we'll talk a lot more about boeing right now lots of moving parts more countries including canada grounding the 737 max 8. contessa brewer has the latest for us >> that was just breaking within the hour the canadian transport minister announcing a big reversal that the boeing max aircraft cannot fly into or out of or above canada's air space restrictions affect not only the max 8 but the max 9 as well.

the decision made after what the transport minister described as new data >> what we looked at this morning was simply the profile in about the first ten minutes of the flight of the ethiopian airline when it took off from addis ababa. and we also drew up the same profile for the lion air one out of indonesia so that we could have a basis for comparison. and that's all we looked at. >> what he's saying is they looked at those two crashes and the similarity of what went wrong and went on to say he had full confidence in canadian pilots that they'd know what to do if facing a similar situation. there have been no reports of any abnormalities from any of the canadian operators of the max 8 or max 9 we know there's 24 max 8s in the canadian air fleet at this point it's just the u.s.

who is flying the boeing max 8 and the faa says it's confident in the plane's safety. it's still waiting on data from the black boxes. those black boxes reportedly just sitting in ethiopia it doesn't have the capability to get the information from them and the ethiopian airlines ceo is not sure at this point where they'll send those black boxes and you can see the stock today just basically flat on the day after a bit of a seesaw. >> it's quite a story. contessa, thanks for bringing us up to date sticking with boeing, board members are calling lawmakers in an effort to keep the air space open kayla tausche has been following that story for us. consumer reports saying the issue goes deeper than just boeing there are systemic problems at the faa that have existed for years. bill mcgee is here with me now to explain so, first of all, welcome, bill. >> thank you >> and what are your concerns with the faa >> they go back many years about 15 years we've been

investigating at consumer reports how the faa overseas the domestic airline industry. many passengers are probably not aware that these days every single airline in the united states outsources much or in some cases almost all of its maintenance, heavy maintenance that work can be done inside the united states. can be done in el salvador, brazil, mexico, china, singapore. and the effect is that there are two sets of standards. outside the u.s., wavers are liberally given by the faa to waive requirements on training on alcohol and drug screening, on security background checks. and so you have a system that in many ways polices itself >> so you're talking about there's a different -- there's two systems. one of which is used by the u.s. and held to higher standards the other of which is the hodgepodge of international standards? i don't understand what that has to do with where they're doing maintenance on the planes. >> all the u.s. airlines now

outsource. and so you have u.s. airlines being ferried empty to places like el salvador and when you go to el salvador you'll see that if there are ten people working on an aircraft, rather than the former standard in the united states where all ten would be licensed by the faa, nine of them may not be licensed at all either by the faa or by an equivalent agency >> in the case of the faa during the government shutdown, some are raising the question of whether the process of implementing these software fixes or any procedure that had to do with the 737 max 8 flight controls were afectsed by the shutdown do you guys have any information or concerns about that >> we do we've been talking to some people in the faa in the front lines, inspectors. they're very frustrated. we did a story during the shutdown because a lot of the attention, rightfully so, was on the air traffic controllers. what the average passenger doesn't see is that there are inspectors that are going out there visiting the repair facilities, visiting the

airlines' pilots, mechanics, all the things the faa does. that didn't happen for about five weeks and then the spillover, i mean this sounds a little scary now inretrospect in january, a senior person at the faa told me, how long till we know you're back on track he said it could be a year >> southwest airlines is now saying they'll waive charges on fare differences for customers who don't want to travel 737 max. are the airlines handling this appropriately? >> no, we don't think they have been neither southwest nor american nor the faa. there's been what we've termed an informational vacuum since the crash on sunday. none of them have been forthright in expressing why passengers shouldn't be concerned. just basically said trust us >> bill, thank you bill mcgee, aviation adviser for consumer reports now to kayla tausche for more on boeing's outreach in washington to keep the air space open for this aircraft where we increasingly stand alone

>> the u.s. is looking isolated in this decision to keep the air space open here on capitol hill, focus has turned here because normally you see lawmakers calling in droves to act quickly on something like this so far we only have about a handful of senators, though there are two republicans in that group it's a bipartisan group who are calling to ground those planes and close that air space out of an abundance of caution. members of house aviation and transportation committees have been in touch with the committee but there are no plans to hold an investigation but we know from our reporting that members of boeing's hyperconnected board of directors have been calling lawmakers. we're not party to what exactly they discussed and what exactly the board is asking for, but we know that boeing is incredibly connected politically. take alook at the board of directors. president reagan's chief of staff. bush 43's trade representative president obama's ambassador to japan. as of next month, also president trump's u.n. ambassador nikki

haley up for a vote at the shareholder meeting april 29th not to mention the acting secretary of defense is a 30-year veteran of boeing. this is a company that the administration and capitol hill knows very well. boeing has put its money where its mouth is spending about $15 million in lobbying last year the most of any of its peers >> so the conclusion we'll com away with here is the government is being more cautious with regard to how it treats boeing than with regard to showing extreme caution for passengers is that fair or is it -- as we spoke about yesterday, is there a real difference between the safety of these aircraft flying in the u.s. skies versus elsewhere? >> well, some reporters who are more familiar with coverage of the faa than certainly i am have said that in past instances, you see faa take the lead. and other foreign regulators looking to the faa for guidance and coordinating their effort and their approach to these

things which is making it increasingly more stark that the u.s. has not grounded those planes while almost every other country has. >> kayla, thanks here's what else is coming up today on "the exchange. >> coming up -- travel sites will now help you see what plane you're flying on spotify's ceo blasts apple peltz gets into pot. and cities are spending hundreds of thousands of dollars to woo "the bachelor. it's all ahead on rapid fire for just $39.00 ? yup that's what we do. and you guarantee they'll get there? yup that's great! i have two sets. you know ship sticks only ships golf clubs? right? honey are we there yet? umph! ship sticks.

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welcome back pretty nice rally shaping up across penalty todwall street t. the nasdaq hitting its highest intraday level since october the s&p a five-month high. we have a fed rate decision and a vote on the "b" word tonight kenneth is here. he's an asset management managing principal dom chu and willfred frost are in the house you know what "b" word i'm referencing, brexit. the data was okay this morning is that helping the rally? >> i think so. we've had retail sales that were mediocre the fed is not going to hike the shrinkage of thes balance sheet and there will be a trade deal

it's showing a clear slump not just here but overseas i can't ignore a ten-year yield at 2.61. >> what's happening in europe, being almost negative and our wage number was okay and some of the other trends -- >> i think the news is softer in the rest of the world. the news in the united states continues to be at least stable to robust. but i do think the market realizes if there's going to be any rate hike at all, it's just one this year. take two and three off the table. >> is one even priced in >> slight upper cut. >> and the last time i was on, they were talking about a cut and i'm sitting there going, i don't think there's going to be a cut. if anything, nothing no rate hike or no cut but i still think there's going to be one rate hike later this year. >> dom, boeing is an interesting one. it's rebounded a little bit now.

it's not hanging over the dow but this has been a phenomenal week >> one of the things i'm struggle with is trying to find out what the path of least resistance is. you're always trying to figure out the general trend. right now a mix of them saying it's to the upside until we get to 2815 on the s&p oh, no it's to the down side we've gone too far, too fast the theme is trying to figure out where their leadership is. we've had a great start for the year look at things like biotech or semiconductors or small cap stocks those are all good signs but not good enough to get you over this hump a hump we've stalled out at. >> at 2815 is where we're having trouble. >> and the big vote last night on brexit. as i understand it, now it means a crashing out is unlikely or tell us where we stand. >> it's less likely but still possible theresa may's own deal failed by

149 votes. today we turn to a vote on whether they want a no-deal hard brexit and the firm expectation is mps don't want a hard no-deal brexit, assuming they reject no-deal brexit, it is a vote tomorrow on whether to delay the vote beyond march 29 which would require unanimous approval from the eu 27 and it's important to note that no-deal brexit remains the default unless either the uk and eu ratify a deal or the eu se accepts a uk request for extension. >> why is the pound so strong this week, relatively speaking, around 132 right now >> because the vote -- the question is being asked, do mps want no deal or not? that could have been taken off the table by theresa may she could have forced towards a no-deal brexit, but the vote is happening and it's happening tonight and it's expected the confirmation will be mps don't want that. >> so they rule it out and --

>> they rule it out politically but they don't do it legally 16 days are left even if we get a delay and an extension, say, no one expects it to be more than three months because the eu side doesn't want the uk to take parliamentary elections in june. then we're back to where we were, which is -- >> i would say this, too as you talk about the trading levels we've been talking about. we've been stuck between 1.25 per pound. we're at the top end of the range. a bunch of traders, investors and strategists saying the developments that will happen may provide more down side catalyst for sterling because we're at the top end of that range. >> 1.26 to 1.33 the top range. but what was the one-year average before brex snit we're talking 1.55 there we're still at brexit levels >> we read about contingency

plans, ideas of going to no tariffs and what that would mean if we take it off the table and say it's just an extension for you, what's the impact for global markets is there any impact? >> the uk is the fifth or sixth largest economy in the world they've been slowing the uk has not had a gdp growth print of north of 2% since that vote so you have germany which is expected to grow less than 1% and japan slowing. china slowing. you have most of the top ten economies in the world that are seeing a shrinking growth rate and while stocks are continuing to go up, earnings estimates continue to decline. so there's got to be reconciliation between the direction of the economy, earnings, bond yields and stocks >> the big difference for brexit compared to years ago is there's no fear of contagion when it comes to the u.s so you've got plenty of u.s. companies that have exposure yes, you're talking about a potential gdp slowdown that's already happening and will

probably worsen. you're not talking about that wild card risk factor that does lead to the overall collapse of the eu and with it the collapse of populism and -- >> everybody was so focused on that outcome and now people only half are >> they half are and i do think, although peter makes points about the slowing gdp and slowing economies around the world, once we come up with this trade deal, which i think we're going to get, i think a lot of that is going to fade into the background because the -- >> the trade deal with china >> absolutely. a lot of this fear corn is we're dragging this out, 18, 19 months >> the fed pivot clearly helped equity markets last week we feared the ecb pivot wasn't doing that. we're seeing globally equities rebound and the daily is getting worse but the support is there >> keep your eye on the dax. it's done nothing this week while the s&p 500 has rallied. that's a key tell on the global economy. >> thank you all peter, kenny, dom and wil.

we'll see you soon new mortgage data could reveal a concerning trend in the housing market first, shares of adidas are falling after eyth expect supply chain issues that's coming up straight ahead on "raped fire." (vo) we're carvana,

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welcome back to "the exchange." here are some of the movers this hour rite aid shares are jumping after the company announced its ceo, cfo and c.o.o. will be

leaving. and also announced job cuts that they say will save $155 million a year shares were up 5.5%. cvs is also higher they initiated a buy at bernstein. the currency price doesn't reflect its recently acquired unit aetna and carvana jumping nearly 10% today after wolf research backed up its bullish view on the online auto retailer the stock is up 77% this year. let's get to sue herera for a cnbc news update >> hello, everyone here's what's happening at this hour former trump campaign chairman paul manafort has been indicted in new york on charges of mortgage fraud the news was announced shortly after a judge sentenced manafort to an additional 3 1/2 years in prison in connection with a conspiracy case stemming from the robert mueller special counsel investigation. several children have been killed after two gunmen wearing hoods opened fire inside their school and then took their own

lives. the shooting happened in southern brazil. authorities say they don't believe the men were former students canada is prohibitting all boeing max 8 and 9 planes from flying in that country officials say they made the decision after reviewing new data about the similarities of this weekend's crash in ethiopia and last year's lion air crash both killed all people on board. and at&t is revamping its streaming direct tv now service. the company's increasing the cost of current monthly plans by $10 and unveiling new channel packages which will include hbo. you're up to date. that's the news update back to you. >> thank you, sue. about 30 minutes until "power lunch." i'm joined by tyler mathisen and the biggest story. >> well, the biggest story is our daily visit to seema and what she's having for lunch. what are you having? >> snacks. what are they?

bada bean, bada boom >> we're going to talk about the college admissions scandal that embroiled felicity huffman and lori loughlin and what it means going forward for the college admissions we've got two former assistant deans of college admissions who are actually now in the admissions consulting business, but legitimately so. >> right >> and we will talk to them about what it means there. it has really caused an uproar we'll talk also about that very important harvard case that was heard not long ago and where that may go involving basically quotas or the admissions of certain categories of students we'll talk about that. we'll follow up with any new news on boeing and lots more. >> and bada bean, bada boom. seema says they're good. >> tyler will see you then here's what's coming up on

"the exchange. we'll talk to one congressman about why the government hasn't grounded the planes. he's been talking to pilots. and what they're telling him why spotify is accusie inin apple of having an unfair advantage over competitors ...red-blooded. right this way. you thirst for adrenaline, you hunger for raw power. well, you've come to the right place. the road is yours, dig in.

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don't give it away it's time for rapid fire and here with their takes, bill griffeth, courtney reagan. the biggest story of the day, boeing canada the latest country to ban the 737 max 8 and 9. now travel websites are changing their policies, guys, in order to be able to allow customers to choose the type of plane they'll fly on as they're booking or changing plans >> morgan, this is your story. >> so, yes, kayak.com part o booking.com apparently has been making these types of moves. and also reports about travel agencies in general adding staff members, getting calls around the clock. people trying to get scheduled on to other types of flights phil lebeau has been reporting

this as tragic as this crash is, consumers have a short, i guess, memory so we'll see how all this plays out and the details of that. the fact that people are checking their planes. i don't know if they'll still continue to do that weeks from now. it's nice to have that option. >> it's clear that boeing has chosen not to ground the max 8 in the united states it's a business decision if it was not their best selling jet, would they -- they'd probably ground a lesser selling jet, don't you think with all these -- when you start talking aboutputting business travel at risk, now you're talking about big business and american airlines, united, southwest airlines, a lot of their business is business travel and when you are putting that at risk, you have a problem >> southwest is saying it will allow you to change your flight and even won't charge you extra. i've heard stories around here of people pay iing $1,000 to

change a trip with their kids to florida. >> if the faa is not going to choose to ground these planes, and that's up to them based on the decision they have or boeing is not going to pull them out of service, then jeweyou'll have to allow customer service if people don't feel comfortable flying. and in the air, the flight attendants there are to make you feel safe. if you don't feel safe before you get on the plane, they'll have to make concessions and that has to interrupt business >> we had a former head of the ntsb on "squawk alley" and he cited the times in recent history that they've grounded planes he said this wouldn't constitute, at this this stage of the game, based on what we know spotify announcing it files an anti trust complaint against apple. they are accusing apple of having an unfair advantage apple's control of the app store places unfair restrictions and fees on rivals

>> this was interesting because what he's saying is calling it an apple tax he has to pay a 30% tax. >> that's onerous. >> that is onerous, but then i'm thinking about it and, but apple -- it's the apple phone. is it illegal for them to do that, to charge you and to give their own app a preference it doesn't seem to be an illegal thing. the eu is coming down so hard on all these big tech companies >> and i wonder if -- apple music is an interesting example. another company may say we've seen a few stories about this. we'll not pay 30%. we'll just take our app elsewhere and you guys will suffer apple has apple music. if spotify tried to threaten them because spotify is a hugely popular product but if spotify yanks it, does it just play into the fact that apple music wins because it can just say, all right, fine. >> that's part of the strategy i'd think spotify has an argument except for one thing. apple is not the only app store in the world you have choices out there i'm not naive enough

yes, apple has a huge market share when it comes to the app store. >> in the u.s. >> the developers. but you have choices if another app store can step up a little more aggressively and allow spotify to grow there, i think that the competition factor would be better for them. >> does bill griff eths have true competition if you don't have access to the app store >> this goes back to the comments made by senator warren. far fetched this idea of breaking up the tech companies and how she would propose to do it she called out the app store there's more scrutiny from a legal and legislative standpoint on that relationship one other thing, 10 cent that whole share swap between 10 cent and spotify before spotify listed last year and so 10 cent does have a stake in spotify and i can't help but think maybe there's -- it's just something to note because you're talking about competition.

u.s. tech versus chinese tech as well >> you're so cynical >> how about shares of adidas. they're slumping on a weak sales outlook. the company reported a record year for 2018 but talked about supply chain issues as a headwind for growth in the u.s. in the first half of the year. court, they're talking about demand for midpriced apparel will be the biggest struggle so why still these challenges? >> i think the issue that they're not pointing to as clearly as the supply chain issue is competition we've got all of these retro styles really coming back. and adidas started that with some of their styles they brought back and were very popular for some time. and then a me, too, thing, a different me, too, where we have those retro styles and can bring that back. supply chain is always a problem for these guys i don't just mean adidas, but everybody. if there's a fire, that's going to cause a problem they want to grow their e-commerce you have to watch that supply

chain. it's interesting they said right now is online 12% of the total and they want it to be 25% i've asked a lot of companies, what do you think is your ultimate breakout between physical stores and online and very few people tell you that's interesting they laid out their goal of 25%. >> retro is the stuff i wore in my 30s >> or even the stuff i wore when i was a little kid >> adidas was hot in the 90s when they said it was coming back, i was like, where did it go >> it's still in your closet >> i wish it was a new feature from new york magazine highlights how much juice abc's hit show "the bachelor" has for u.s. tourism the show has been negotiating deals in the hundreds of thousands of dollars with state and local tourism boards over the course of its run including more than half a million dollars from the virginia tourism authority for features landmarks around richmond on "the bachelorette." >> i'm going to sit back >> nobody tell me what happened last night i think i know -- >> there was a dvr mishap.

i didn't record the full thing i think i know, but i wondered when they went to virginia on becka's season i'm like, virginia everybody else gets to go to spain and portugal and vietnam how did she get virginia it was a snooze of an episode. the edgar allen poe museum and weird happy hours? >> i forgot they -- >> they got paid that's why >> they went to deadwood four years ago. that's my second home. we'd go all the time but it's not a romantic destination, that's for sure, but it's hilarious deadwood paid them $50,000 to have them come here. and they did two hours >> i was going to say, that was shockingly -- lake tahoe paid up about -- and kudos to "new york" magazine some of the towns claimed they couldn't provide that because of nondisclosure agreements >> there's this whole super secretive negotiating process where you have cities like throwing in all these incentives and flat-out paying checks to a

network to come and feature their city in the show makes amazon look like chump change >> they had to include the virginia is for lovers phrasing. >> no pressure here -- >> i can't take the drama. >> now that i think about it, there are three roses. >> you took all the pressure off. >> are you taking us all to your hometown >> you're only handing out one i just -- >> that's a virginia trip i won't charge for >> i'm jumping over the wall right now. bye-bye. >> we all want a man that will jump a wall for us thank you all very, very much. i can't believe you haven't seen it yet more shocking details surfacing about the college admissions cheating scandal including the tactics that parents use to show their ilenerchdr we so-called athletes that's next.

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welcome back nice rally today the dow is rebounding with about a 0.75% gain there it was held down earlier this week by the sell-off in boeing the nasdaq looks like it's leading the way with an almost 1% gain. it's been stringing together a nice week. united health, united technologies, intel and american express are leading the blue chips higher it's a scandal that has people talking from hollywood to harvard. more than 30 ceos, entrepreneurs, lawyers, celebrities charged with mail and wire fraud as part of a bribery scheme to get their kids into top colleges. let's bring in devlin barrett, the law enforcement reporter for "the washington post." along with eric. great to have you both eric, let me start with the attention today on the sports aspect of this admissions process where it seemed like people were using teams that were legitimate teams but no one was really paying attention to get their kids into these schools. >> you're not seeing these

sports being basketball and football those sports, those recruits are widely publicized, everyone in the country knows the 350th ranked recruit for football or basketball in the country but not when it's the sailing team or fencing team or golf team or rugby team, the crew team. no one is really paying attention to that and not paying attention to who might be a preferred walk-on to those teams as well. >> so for a lot of these teams, and there are coaches here named. the georgetown tennis coach who had a high number of people who weren't playing tennis a basketball program, volleyball program. are these people giving lists to admissions that say, look, here are the 20 kids we want and admissions says, okay, or they say we'll try to prioritize them >> it's a mix of that. it's a list of these are kids that are, in a way, recruits that i want to be part of the school because of the team sometimes it's we want them for the team but their grades aren't that good.

can you give them an extra look. sometimes their grades are definitely good and they'll come play on the team make sure you admit them and other times it's, hey, this guy is a great student but because we have the team it's a recruitment tool so he doesn't go to a competitor college. they don't know who the best volleyball player is >> that's what makes some of the details so interesting there were kids whose photographed were faked to make it look like they played a sport they clearly didn't. now this raises questions about the breakdown in confidence between admissions and athletics which are so intertwined in a lot of colleges. and it's going to ripple beyond that for students who are now applying to schools everywhere i'd have to imagine. >> right the fbi and justice department didn't come out and accuse the universities of doing anything particularly wrong but, clearly, you could see by the university's reaction to these charges they feel the onus is on them to do a little more work to ensure they aren't having some of their own employees cheat

their own systems. >> right so i guess that's a little more oversight, devlin, about when those lists are provided but do they have the resources to do that due diligence i'm also wondering, let's say you are the s.a.t. or a.c.t. many examples where a student would fest a 1040 on the psat. should they be using big data or something like that to identify students with those kinds of disparities or test centers where there's a high population of high scorers? >> well, i think the answer there is a little more mechanically simple and that's the testing programs have allowed kids increasingly to take tests on their own in sort of like very closed settings where they're not part of a big group. where there's not a bunch of eyeballs watching the process. it's a one on one environment. and that's the environment these indictments show is clearly ripe

for abuse and ripe for bribery and cheating >> we're seeing some of the celebrities who, they are being taken into -- by the police and the question i guess now is what kind of punishments are we talking for them because if this is an isolated incident or if it's not, you know, should the students be the ones to suffer are the parents likely to go to prison >> well, the students so far have not been charged with anything i don't expect them to be charged with anything. it will be interesting if some of the schools decide they have to take some action on the students but at this point i'd still be surprised if that's where this ends up on the parents, it's more interesting because some of these parents, felicity huffman paid, according to the feds, about $15,000. that shouldn't, by itself, generate any kind of significant prison time, assuming she doesn't have a prior record or assuming there's nothing else to find there however, another set of parents paid $1.2 million to bribe their kids' way into yale. that's a lot of money. under federal sentencing

guidelines, that could mean real prison time. >> the ncaa, they just had the conviction of the adidas guys involved -- >> several coaches and adidas runners for agents, that type of thing. >> not to conflate the two, but are they going to have to do more work to make sure she's programs don't become this side door or back door -- >> in that case, the schools were paying the kids to come to their school in this case with the celebrities and rich people, they are paying the school to get their kids in. so sports can be in a way the marketplace for, if you're really good, we'll play you if you're a really terrible student with rich parents, you pay us to come in. >> they have to be so careful about the offerings -- >> and then students that want to get paid and the judge said you may be able to pay the big athletes, the football and basketball guys. they can get bigger scholarships because they're bringing in revenue. all these sports were not bringing in any revenue. so no one really cared if they won or loss.

they're not on tv or espn. so you can play games with that kind of thing. >> thank you, guys the u.s. is still allowing boeing max 8 jets in its air space as the company's board appeals to lawmakers to keep those planes in the air. we'll talk to congressman gottheimer who irehiuts acng o to pilots for guidance "the exchange" will be right back so with xfinity mobile

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and now get $250 back when you buy a new samsung galaxy. click, call, or visit a store today. can stale fly still fly, but pressure smount uing should congress step in? we're going to talk about that, taxes and more with josh, a democrat from new jersey i think you're my congressman. >> if you need anything, let me know >> you're not supposed to say that >> yeah, get my kid into like a great school or something. >> i can't do that got a pothole, i'm your man. >> i just learned that's a county responsibility. great to have you. boeing, a big airport nearby do you think faa is doing the

right thing? >> my question, weather heard from constituents about this, i reach out to the pilots, why is it okay, why are we okay with it, but not canada and eu u and other countries? they obviously have flag, advanced system, so i'm trying to get to the bottom of why we're not okay, but we should be i've got real concerns >> any information you can share with us? >> they told us they're working on a software patch that's due in april that was their response. so i'm trying to understand well, can they fly these planes without that patch why are we flying without that is that why the other country rs concerned and have grounded their fleets i think these are questions we've got to get to the bottom of and out of an abundance of caution. democrats and republicans who said maybe we should graund ground the planes until we get answers. i've heard from the pilots and others who say we feel good in materials of our conversations with the faa and airlines.

so i think we need more transparency because passengers are rightly concerned. >> i find it striking that so many countries have taken this step why do you think that is >> that's what i want to know. do they know something we don't and should we know it? i'm hoping the faa is working with our partner countries around the world who have first rate systems for airline safety and i want know why are we okay, do we know something they don't know what we're trying to get to the bottom of. i hope to have further con sl conversations and that's why i'm talking to the pilots as well. there more concerned about this. we have a lot of people who leave my district every day both do work, but to fly out of it took into consideration. so it's a very important question >> congressman, what are you hearing from people as we pass through the tax filing season, a lot of cases are facing higher bills because of the so-called salt cap and all that.

spring selling season housing wise is just getting underway. is your district doing okay? >> we talked about this on the show i've heard from people for months who were panicked about this facing higher taxes in my district in northern because where they gutted salt deduction at $10,000 creating double taxation. now that we're going to tax season, the number of calls are up i'm hearing it from all over the district saying wait, my taxes just went up why am i paying higher taxeses we've got to figure out a way. i've got bipartisan legislation to do that, but also we've got to cut taxes at all levels and make things more affordable for people there's no reason why with health care costs going up and costs overall going up and now of course property values in northern new jersey going down because of this. people can't afford to pay higher taxes ch it's ridiculous. >> how do you cut taxes? that's -- >> yeah, you reenstaip statnsta.

i've got several pay fors. we've got to start looking at these other states that take too much of our taxpayer doll rs my district gets back 33 cents and mississippi gets back $4.38. there's the problem. we've got a gateway project. the tunnel between new york and new jersey crumbling tunnels that thiede to be fix real issues. we've got to get costs down and we've got to fix our infrastructure i'm sick and tired of sending dollars to other states. they should be coming back to new york and new jersey, our area >> they're drawing on federal programs not as if they're saying we want to pick new jersey's pockets going to get rid of the federal programs >> you can look at the farm las for infrastructure they were made years ago at a time where the system you know where things were different. now that new jersey, we've, we're losing people, population

because of these taxes and now we've got to make sure we look at this again and say actually, maybe given that new jersey pays in more, new york pays in more, more of the daollars should be coming back because of the weather and because the system is older more should be focused on our area of the country and i think these are the kind of issues and debates we should be having and i plan to have them in the coming months. >> yeah, believe me. it's scare kri stuff talking about the doomsday plan for the tunnels. thanks for joining me. >> if it goes down, we need a plan >> for sure. it would reverberate widely. >> $100 million day hit to the regional economy that's crazy >> it is thanks so much >> thank you co, weekly mortgage apps a rerdbut it's not a bleak sign for the housing market. we're going to dig into those numbers right after this

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buyer. take a look at where rates are now. lower than a year ago. this after rates rose for much of last year then spiked in october and november they plumeted to end the year and are heading down again now the average rate on the 30-year fix at 4.14% yesterday that according to mortgage news daily. so no surprise, mortgage applications to buy a home jumped 4% last week as rates fell, but here's the caveat. the average loan amount hit a new record at $326,000 compare that to the median home value, just 247,500. so this tells us who is able to buy in today's market b and clearly, it is the wealthier move up buyers that's where the supply of homes for sale is abundant but it's the entry level supply that is leanest. prices are inflating there and buyers are struggle iing despit the lower rates. >> what rectifies that >> home prices cooling off a little bit and more supply coming in, but the builders just aren't building on the lower end

of the market. they say they can't afford it with the cost of land, labor and materials being so high. >> a lot of fakctors there. diana ole eck join ugs that does it for the exchange. it's time to go visit tyler and melissa for "power lunch" which begins right now >> thank you we'll see you in a moment. new at 2:00, the s&p 500 up more than 2.5% in just three days nasdaq up 3.5% should you trust this rally? and problems mounting for boeing u.s. pilots apparent lit complained about the boeing 737 max 8 jet months before the o t ethiopia crash all the late etest details and liar education the fallout just starting for the college admission scandal. could it change the way kids apply and are admitted to college? "power lunch" starts right now >> welcome to "power lunch." let's get you caught up on the market