u.s. revenue exposure, 99%, a little rich in terms of pe, up near 30 but breaking out, i think the momentum is to the upside, a name in the material space that i like. >> good stuff. thanks to you all. good having you here today thank you so much for watching as well. that does it for us, "the exchange" with kelly evans begins right now thank you, scott hi everybody here's what's ahead, heavy lifting is lyft's continued selloff a bad omen for other unicorns going public or just a company specific problem we'll go inside this floundering ipo. and president trump's big threat to close the u.s./mexico border could be a big drag on the economy. how likely is it to happen we'll take a look. and walgreens gets whacked the battle over plastic, and which company is outperforming big time this year that's all ahead in rapid fire first, the numbers. >> the numbers are walgreens, one of the main reasons why the dow is underperforming so much versus the other indices out

there. the dow off 108 points, the s&p relatively flat, down 1/10 of 1%, and nasdaq hovering just a little bit to the upside as we talk about this side of the atlantic, let's go to the other side where the euro stock 600 index closed up just about a third of a percent the reason why it's a big deal is right now we are hovering near the best levels we have in around six months so those european stocks, by the way, up around 17% since the lows that we saw over the past few months. one to watch there, and like kelly mentioned, walgreens boots alliance, one of the worst performers in the entire market today, down 12%. a miss on earnings, cut their profit growth forecast, those shares under severe pressure that stock of the day is certainly walgreens, boots alliance back to you. welcome to "the exchange", i'm kelly evans and durable goods fell in february after three months in gains, due to a

sharp decline in aircraft orders gm seeing a big drop of 7% last quarter with declines across all brands the ahead of the chinese delegation, the chamber of commerce is saying the trade talks are at a point where a deal is more likely to go forward than not let's drill down on the markets with bob pisani at the new york stock exchange. >> a price weighted index, overall, it's a consolidation day. we closed at the high of the year on the s&p 500 yesterday. one thing doing well, the airlines, greatcomments from delta. they said business is good generally they raise their numbers overall. that's pulling up all the airlines transport is down a little bit because a little bit of weakness in some of the other sectors like the railroads here. where are we in the stock market, the big question is whether or not europe and china is bottoming that's why we rose so much yesterday, chinese manufacturing

data, better than expected a lot of this will hinge on the outcome of the trade talks got to get the markets believing europe and china is bottoming. the data mixed, overall, the durable goods number, a little below expectations, auto sale, not as strong as expected. mixed data, i is, m yesterday was traffic, as for the earnings, we're going to be talking about that beginning next week. my position is an earnings recession is unlikely. remember, folks, how close we are to historic highs, the dow, the s&p, special about 2% from historic highs, the russell is a lot further away if you look at the market leadership recently, it's a lot closer technology, s&p technology sector, kelly, less than 1% from its old record highs back to you. >> and bob remind me, when do we get earnings season kicking off now? just a couple weeks time >> next week we'll get some early. we probably got 20 companies already reporting for the first quarter, essentially, and already their beats are much more than normal i think what happened is a lot

of analysts completely lost it at the end of the fourth quarter with some of the estimates, they cut the first quarter numbers dramatically, may have cut too far, and that's why i say there's a good chance we may not have a negative earnings report on the s&p 500, i think it's 50/50 now. >> good stuff. thank you so much. bob pisani, here to break down the market is nancy tang ler, the chief investment strategist, and michael santoli joins us as well great to have you both here. nancy, let me ask you about what bob alluded to people have been concerned that earnings season is going to be a tripping point after the strong first quarter. are you worried about that or what are you watching in terms of the main thing of importance for invis testors. >> i worry about so many things, but that is a main thing we are keeping our eye on solds prewarrant have come back. eng the market is expecting

earnings to be kind of disappointing, lackluster.ng toh so we have moved our portfolios away from defensive names and more towards the cyclical plays. >> which has been the part of the market doing really well in the first quarter, especially, i also saw you like the u.s. consumer >> we do some of the defensive names have done really well, like yoututile and we have been out of those. consumers, despite the recent numbers, we think the consumer is going to resurge again also in the second quarter. we think china's second half, so we loaded up on some o. consumer discretionary names in december. >> in the u.s. names. >> yes >> nancy mentionedn odd pairingn the first quarter where you had technology, some cyclical part of the market doing really well. you also had utilities and anything benefits from low interest rates zooming, too. it's hard to see that lasting for much longer.

>> it was a little bit of disdance di dissonance in there. predictable cash flows and/or yields, i think big cap technology, large cap growth in general kind of gets the benefit of the doubt of seeming almost defensive even though the stocks are quite expensive in in cases, just because in periods where the market seems worried about a soft patch in economic data, these companies are at least more predictable i do wonder if we're going to get a transition you have seen industrials perk that it might seem like a little bit of a delicate handoff, going from a position of, well, yeah, growth is struggling but the fed is going to be dovish and therefore certain stocks can handle it, to one where we say, we want to look around the corner and see the end of the soft patch and see if consumer and industrial activity picks up it's happened before that we got the handoff. it's not always seamless. >> let's talk about tech you could say it's a proponent of a low rate environment.

it's been an outperformer for years. some of the names you added to, include apple among others even though, you know, somewhere under wehelmed by the launch of services they have the infamous profit warning about china in the first quarter, why do you like it here >> we actually said at the time not to chase it going into the announcement because it's always disappointing. we were adding in the fourth quarter and in january, you know, it looked not so smart in the fourth quarter burt now it looks okay, which is how you buy that stock, you buy toward the long-term. i like the move toward services. i don't think that's fully priced in. i think the credit card is going to be kind of a sleeper surprise for many, and you know, we like other names in technology. that has the benefit of also being a consumery kind of stock. >> is there a common theme with the names you like included broad come and cisco or is a broad valuation story. >> sales force would be not so

much, but we added to the chip stocks not just broad com, and then cisco had such a great first quarter, it's a valuation story all over again defensive as mike discussed from a yield standpoint we have held that stock for a long time. we added to our holdings. >> because we did get the comment from the u.s. chambers saying they think a china deal is more likely than not. that outcome looks priced in with the delegate coming tomorrow. >> it does seem largely priced in wouldn't actually deny that if we do get a final resolution, it would be an excuse for some people to say fine, we have this all clear. we have the sub straptraction o fears. the fed has gone away from a rate hike path and maybe we get the china trade deal, but yeah, i don't think that it would be a huge upside surprise if we get some kind of deal. i'm in the camp that says the details probably for the markets, i guess, sentiments, don't matter as much

perhaps the economy long-term, they do, but i think the market wants off the radar for a while. >> good stuff as always. thank you so much. mike santoli thank you so much. we want to talk about lyft, shares continuing to trade before the ipo price this is day three. you can see now they're fractionally lower around $68.80 sea port securities puts a $42 price target on the stock and says the thesis that millennials will forego car ownership is a big leap of faith. nancy is still here as well, and before i bring in leslie, nancy, i am curious, you don't like the ownership structure among many other factors, when would you get interested in lyft >> i mean, when they have strung together a couple of years of sustainable sales. you can value it on a relative price-to-sales ratio basis the current valuation is just, i can't value it, and so when an analyst puts a 42 or $80 price target, which we saw, i don't

know how to confirm that, and i hate the ownership structure >> hate with emphasis. a lot of people are saying is this emblematic for the whole ipo pipeline or lyft specific issues, and there's conspiracy issues about who's doing the selling and why it's been so weak. >> the lot of people look at the after market performance of recent ipos as an indicator for future ipos coming down. i was texting with a hedge manager asking him this very question and he told me, this is great. we made money on this deal we flipped this deal very quickly. we made money. we're going to be much more inclined to buy into the next ipo, and get allocation in the next ipo because there's clearly momentum on these things they made money on levis ipo which had a very good first day of trading just because we're starting to see ticks downward doesn't mean people aren't making money in the meantime. >> what about the real tail public, it's fine if you were in

at 72 but if you got in on 87 i hasn't been a fun ride. >> i caution away from these these stocks have incubated by unicorns, the easy money has been made unless you're willing to flip it, and i don't think the average retail investor, nor am i, by the way, very good at that. >> what do you think about the pipeline of other names, air bnb, pinterest might have a balance sheet that looks more attractive to investors or like you said a moment ago, say across the board be careful, like warren buffet said last week. >> i think you have top careful. if you have an opportunity to buy the number one in the commodity business like uber over lyft, that would be my bia all day long. >> going back to what you said about the people who had it for the ipo especially because they're being acwatched in terms of their participation in the next deals, what does that mean in terms of pricing and interest or the way these things are going to open or does it not

tell us that much? >> one of the key important factors of this ipo is exactly when it started trading. so the actual holders of this deal, who flipped, who held, all of those disclosures won't come until much later because it was the last trading day of the first quarter. it won't come for another, i guess it would be almost four months at this point so that actually won't impact their allocation for uber or pinterest or anything like that, because those deals are expected, at least according to to sources we have talked with to come within that window, so it's kind of easy f you're a big institutional investor to trade out of this deal, and not worry about the blow back because no one is really going to know about it lessee thank you so much leslie pick ler, aler, and nancy tengler. here's what's coming up on the

exchange. red hot energy, oil and rally mode trading at the highest level since november but oil stocks aren't following suit are they prime for a rally plus, facebook's former chief security officer on what's ahead for the social giant and whether government regulation could help get the company back on track. and the president threatening to close the border between the u.s. and mexico. could it do real damage to the economy? this is "the exchange" on cnbc oh, don't worry. voya helps them to and through retirement... ...dealing with today's expenses... ...like college... ...while helping plan, invest and protect for the future. so they'll be okay... without me? um... and when we knock out this wall imagine the closet space? yes! oh hey, son.

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. welcome back want to bring you up to date on brexit headlines prime minister theresa may saying a further extension is needs and she'll seek cross party talks to find an arrangement to present to the european union meantime t oil prices are soaring since the beginning of the year, up 36.pushing up gasoline prices. despite the rally, the energy sector is in a correction going back to last may joining me to discuss these moves, mike kelly is a partner at sea port global securities. mike welcome. >> thank you for having me on. >> it's interesting that energy and crude are not tracking exactly one on one but then you have a lot of different things going on throughout energy

talk to us about what's working right now, and what's not. >> yeah, sure. i'd still say the sentiment on the e and p side and equity is at trough levels you mentioned oil prices up, gas prices up. investors haven't caught on because the names haven't worked for so long. there's going to be a lag between oil prices and the actual equities work sging. >> we talk obviously mike about the big plunge back to the 30s a couple of years ago, the problems with drilling then, but today's a different story: we're talking about crude back over $60, and you'd think after a few years of this that people would settle into a new normal why are they still so cautious >> yeah, well, i think one, the ma crow environment, we really describe as stable right now i don't think investors believe that yet, and there's really two elements on that opec, opec is now kind of the market defender for oil prices they are not going to let supply

get out of control, and secondly, we have actually seen u.s. oil production, which has really been the main culprit for low oil prices, production took a step back in january the rig count now is sliding to a really high degree we're down year over year in the rig count. maybe the u.s. production growth isn't going to just continue to, you know, slap us around with its growth. >> and you mentioned last time that cabot oil and gas was a name you liked, it's gotten obviously natural gas exposure, a different story than what's been happening on the cried side i don't know if there's a few other names that jump out as good investments. >> yeah, we love cabot on the natural gas side that's a no brainer if you want natural gas exposure if you want oil exposure, there's two that i would turn your attention toward, one is wpx. wpx, this is a name we put out a bullish note last friday on, and our main thesis was they have

$1.5 billion of midstream value, and we highlighted that, laid that out you take that out of its valuation, you have the e and p business or oil and gas business left, trading it around four times, 2020, ebita, that's a whole turn cheaper than your average permian out there. and these guys have a superior asset position, depth of inventory, and really a superior management team at the end of the day. >> and whiting petroleum. >> i was reviewing my notes, i'm about to meet with them in the midwest, and take them around see investors, this is where you go if you want the oil exposure. 83% liquids, oil or ngls, that's about a 20 percentage point increase over your average oil and gas name you get the great oil exposure these guys again trade around four times ev to ebita, despite a hundred million plus of free cash flow slated for this year, and a great oil trajectory out front. >> we'll see it's interesting, investors are barrish, cautious, as oil prices

have turned around >> you were tough on lyft today, sea port, man. >> that was my buddy mike ward in the transport you got to love that, a hot ipo. we love it >> good stuff. mike, thanks for joining me. >> thank you >> mike kelly with some ways to play the energy space over at sea port. soming u-- coming up, exurbs are back buyers are flock to go neighborhoods that are far away but affordable what that tells us about the housing market. mark zuckerberg wants stronger regular lation, austra is saying jail for social media executives who fail to remove violent contact. we'll ask facebook's fmeorr chief of security what he thinks about all of that. straight ahead for your heart...

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so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life. welcome back to the exchange here are some of the movers, dell delta is hitting a four month high, expanding capacity at a faster pace than expected. investors are slugging that off and sends the stock higher sprouts farmers markets are falling today around 2, 2 1/2% after amazon announced it will cut prices on hundreds of items at whole foods and walgreens bad numbers are taking down drug wholesalers,

mckesson, cardinal health down today. abc is down 4% now to sue herera. >> here's what's happening at this hour, chicagoans going to the polls where a runoff election is pitting tony preckwinkle against a former prosecutor, lori lightfoot, whomever wins will become the city's first black female mayor. record rainfall causing serious flooding in many areas iran's foreign minister says u.s. sanctions reimposed by the trump administration have been the major obstacle to successful rescue efforts in the last two weeks, chick-fil-a has missed out on two potential airport contracts after local politicians raised concerns over the company's anti-lgbtq history the company has been criticized in the past for its donations to anti-lgbtq groups. chick-fil-a says quote its sole focus is on providing delicious

food and welcoming everyone end quote. and take a look at that, beautiful sight, the cherry blossoms in washington, d.c. are now in full bloom. the trees were given by the japanese government in 1912, about 4,000 trees are planted in the area and they have fascinated people every year since. gorgeous love it. that is the news update. back to you, kel. >> thank you so much, sue. just about 30 minutes for power lunch. i'm joined by melissa lee with a preview. >> we have heard about manhattan real estate prices. >> do you know about that? >> being a manhattan resident, but this is worth taking note of six straight quarterly declines in sales this is the longest losing streak in 30 years that is the entire time frame which douglas and miller samuel are keeping records. >> so would that include the great recession, the real estate crash of the early 90s the dot come crash >> we are seeing at every price

point. this is worth noting particularly as there is the cap on salt. >> right >> and they just passed another tax. >> a congestion tax, the mansion tax is part of all of that so the cost of living in new york city is getting a little bit higher >> yeah, well, we'll have to talk about the fallout, as you said, it's not just that segment of the market. see if it trickles down to the city as a whole, which still it always goes back to amazon still just suffering the loss and wondering what that growth driver is going to be. what happened to that. >> yeah. >> can we show you a chart, take a look at this, this is our mystery chart. this stock is up 330% over the past year. 55% year to date i won't tell you what they do. you'll have to find out on power lunch. >> that is a tease we'll see you then melissa, thank you so much here's what's ahead on the exchange coming up, facebook's $10 billion opportunity. the battle over plastic. is bitcoin really back and the surprise of performance of some unlikely markets

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welcome back, let's catch you up on a few stories that

could be on your radar it's time for rapid fire, bill griffeth, seema mody and don grew welcome everyone shares of walgreens are plunging after weaker than expected earnings for their q2. the company cut forecasts for 2019 it said it made less money on prescription drugs as new generics and government pressure drove prices down. the stock is on pace for the worst day in 2014. >> retail sales were lower because we had a weaker cold and flu son, and they're not selling as much in the way of tobacco products and the ceo called all of this disappointing. i think it's fastening good -- fantastic. good for them. >> people aren't getting sick, they're not buying as many tobacco products, and drug prices are going down. >> if you're wall greens is, what's good is bad for you. >> go for the growth, cannabis related products. >> unlike cvs health who stopped selling tobacco products, walgreens hasn't made that final

decision yet, so they talk about consumer head winds in both the u.s. and the uk. so between the boots side of the business and the walgreens side of the business, it seems as though there's a managing of expectations i would say this, if there's a time to manage those expectation, it's probably now, right. >> but these are structural challenges reduci reducing reimbursements from insurance players, more consumers opting toward generics, that's going to mean less business over time. you certainly have to get ahead of it now versus later. >> it's their new normal, really, right. >> and god forbid we have a terrible flu season. we'd hate for that to be the reason why the company can perk up a little bit. >> well, the biggest part of their profitability comes from a prescription drugs that needs to change they need to diversify a little more because if prescription drug prices coming down, all of these generics, all of these drugs going off patent, that means lower prices, lower profit go where the growth is and start selling others things.

>> makeup. >> high priced lotions that we talk about by the way, wall greens is hurting, this is helping it. shares of dow inc., which is a brand new company are surging on their first day of trading the company's ceo was on squawk on the street earlier. take a listen. >> if your approach is to ban everything, that basically means you're taking away people's choices. you're taking away their rights to choose. you're taking away their freedoms if you turn it the other way, make your life more convenient, sustainable, easier, but i need you to change the behavior on the consumer end, what you'll find is most people step up and say i want to be part of the solution, i just don't know what to do. >> plastics and packaging account for half of dow's revenue. >> oh, boy >> i know we'll hear from the environmentalists, but look, are we going to some day after the world has fallen apart, well, at

least it was convenient for us and we had choice. that to me seems to be like an excuse at this point do something else. be creative. >> you have the feeling they are going to try to do something. >> of course they are. >> he's the ceo of a company, we understand he has an ax to grind. he's the ceo of a publicly traded company. >> it's like an oil company saying there's no emission. >> if you're a dow inc. right now, there could be an opportunity for you to take that technology in parts of the business and make it something where you can say hey, we are trying to make things better >> and that's what we talked about. >> patagonia is making recycled clothes out of plastics. there could be a company or an opportunity for dow inc. to be a leader in technologies. >> and finally on this, he said say, look, seema, he said, landfills for local municipalities are a revenue source

he said just like you can slap 10 cents on a glass bottle, you can do something like that for plastic. he was calling for consumer oriented solutions to come to the market. >> take action. >> if you look at analysts who track the plastics market which i found very interesting this morning. expect it to rebound in 2020 after hitting a cyclical low in december because of the expectation that china's economy will be back in full force by then, so at the same time, you know, that could potentially help chemical companies, specialize in plastics like dow and the company is expecting to have a dividend of 5%, so that certainly has encouraged investors as well, and why the stock is up. >> you said it's important to them, and by the way, the dow itself, this is now going to be confusing is up 4 1/2%, so 257, that's, you know, 20 points, let's call it in the other dow today. how about this, a new note from deutsch bank says instagram's new ecommerce feature could be a $10 billion a year opportunity for facebook check out with instagram allows

users to browse retail, offerings from top brand like nike, kylie cosmetics has anybody encountered this >> i have. whatever it is, i don't know how susceptible i am to online advertising but so much of my christmas shopping this past season was done on instagram. >> really? >> because of the ads they would show, the targeted stuff it basically gave me ideas for what to buy people >> for other people, i thought they were trying to target you. >> it could be, but i mean, it just goes to show you for whatever it is on instagram, if you provide an opportunity and a compelling case or at least a reason for me to click, then maybe it turns into a transaction. i can tell you, i did a lot of that on instagram this past season. >> and this new feature is an important distinction. before you were able to see a sweater you would like and click on it, that would take you to the company web site, now that transaction will live on the facebook, instagram platform some of the privacy ones will say, now they are collecting more data, but that certainly gives us more insight as to how instagram is playing a role in

driving ecommerce sales. >> i know you're mr. instagram. >> i'm going to instagram now. >> next up, it was a big quarter for the u.s. markets but not as big as it was for some of the other global markets. china was the top performer the first three months of the year, up 29% number two was greece, then colombia, italy, denmark, as always saying with a caveat, in what currency terms. sometimes they get a rally because the local currency depreciated but greece's is pretty interesting. >> a lot of that has to do with the weaker euro zone currency, and the expectation that greece will rebound given the ecb's accommodative measures they put into place china now erasing its losses from last year china was the worst performing global market last year, now up 30%. a lot on the expectation we'll get a trade deal and on china's stimulus play book, which we have only seen two levels of that there's this expectation that china will cut its reserve

ratio, which will be seen as a st stim stimulating effect on the market people are getting way too excited about one data point. >> it's very suspect >> it's not just china but some of those other economies we keep hearing how those economies are slowing down but the markets are going up either they're in denial, like some feel our equity market is in denial as the bond market signals a slow down or they are looking down the road and suggesting that maybe we get a trade deal and things will improve in china there. >> i would this, if you look at the broader market, the reason it's doing so well is the largest chunk of that is china eem, all these other emerging markets are doing well. >> and growing by the day. >> bitcoin hitting its highest level. we haven't talked about this for so long. >> mercifully. >> i guess we have to now. bitcoin is at the highest level since november, the reason why it's interesting, it was up as

much as 20% in overseas trading to break 5,000 this is off the 20,000 highs of late 2017. some are pointing to an april fool's hoax, which is the only reason this perked up. >> how fitting. >> as speculative as this asset can ever be, there was this rumor that the s.e.c. was going to approve the first bitcoin etf to go on to the new york stock exchange that's not happening in fact, the expectation is that that won't happen until 2020 if that but in the meantime, you're seeing strong volume it gained over 20% overnight, and it's now back above 5,000. the only thing that i can find from people, and we were speaking about this on futures now is technicals it did cross above the 200 moving day average, which is 4600, not to get too wonky, that's the only reason at this point. >> bill has been tracking that level closely. >> every night you look at it, is it there yet. we have a bonus topic, the alliance of american football,

aaf maybe be close to suspending operations this was one of the first new of many leaks that was coming to air, the charlie ebbersol, but then he had to sell it in duress. >> manziel is going to be out of a job again. >> there was a grand vision that this would be the farm system for the nfl. you would have it kind of like in baseball or in hockey or other sports or the development leagues where you could get young and developing talent that wasn't featured at hitest level and they could grow into the roles. this throws cold water on it if it comes to fruition that these guys shut down it tells you, there's little room in professional sports these days unless you're at the very upper etchelons of the games. >> and sports leagues need to grow organically, there needs to be a grass roots demand for it trying to create something where the demand may not be there, and especially if the demand is not there for media, distribution

for the product, and of course the advertising industry, not having the appetite for it we're in sports saturation right now. >> we certainly are. i'm thinking about the usfl, was it her shell walker back then who was the big star they signed >> steve young, sure. >> the aaf, we're talking about it being a barely a couple months old, there has not been a high profile name and the xfl is the big one to watch. >> one of the story lines of the aaf and its perceived nonsuccess was access to player talent. the nfl not looking in the players association, maybe not relinquishing the ability for them to recruit players of the third and fourth string level in the nfl without insurance to injury and everything else this is a big complex story. >> could be a bad sign for the league pipeline, just like lyft may be a bad sign for the ipos. >> are you going to service these or what? >> they're right in the middle. >> looking at a plate of cookies, the whole time here. >> our director makes the best chocolate chip cookies on the

planet and we just need more props and food in general, i think, for rapid fire, guys. >> it's that time of the day. >> bring a drink next time maybe a nice cold glass of milk. >> i see his pictures on facebook all the time with his cocktails. >> take one as you go. thank you so much, bill griffeth, seema mody, don chu. >> we will ask facebook's former chief of security how this keeps happening and how it can be stopped, next. i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪

facebook's under fire from seemingly all sides these days, including its own ceo calling on lawmakers to regulate his industry the company just removed hundreds of fake accounts in connection with to next week's indian elections, the same place the next guest calls the most interesting battle ground for

internet regulation. shares are up 30% this year, coming off their best quarter since 2013 for more let's bring many alex stay m stamos, facebook's former security officer and a cyber security analyst for nbc welcome back, good to see you. >> good to see you too. >> the indian election, one in particular, is interesting because there's so much messaging in that country, that even the u.s. is only starting to go in that direction. what is it telling us about the vulnerability of 2020 elections, for example? >> so the interesting thing that we can learn from the indian election is that their disinformation problem has mostly become a domestic problem, and so facebook took down three big groups this week operating in india one was foreign, it was related to the pakistani military but that was not the largest of the groups the largest groups belonged to the two major political parties in india, the congress party and the bjp. one of the things we have to watch out for in 2020 is now that the russian play book is out there, it's quite possible that you might have domestic groups picking up and trying to do the same kind of social media

minneapol manipulation online. >> the tactics the russians used against the u.s. in 2016, you will see domestic parties, gop against the democrats and democrats against the gop, that sort of thing. >> or pacs, groups aligned to billionaires backing their favorite challenges. one of the challenges here is the actual activity, while against facebook's policies is probably not illegal in a number of countries, including the united states so our laws do not cover this kind of manipulation. and violating facebook's policy is not against -- is not a crime. and so you could see a number of these groups copy the russian playbook because if you're the no a foreign operation, you're probably not going to be investigated or indicted for doing this kind of work. >> wow, that's something to think about. we've got a couple of years until that event speaking of what's legal or not, australia is proposing fines or jail time for executives who don't remove violent content, it reminds me of the debate about whether to hold banks or bank

executives themselves responsible for what happened. is it fair to hold individual persons responsible for the spread of violent content or the platform >> one of the challenges here is, you know, a lot of this discussion including australia hasn't really defined about what activity they're talking about if you're talking about having responsibility to keep sites from becoming hot beds of, for example, in australia case, white nationalism with deep anti muslim sentiment, then i think there should be a responsibility for the companies. if you're talking about people posting the video of the attack, the big companies, the facebooks and googles and twitters have big teams working on this problem but there are challenges that there are tens of thousands of people who are constantly mo modifying videos and uploading them if you catch 80 or 90% it's still going to get through if you're trying to motivate the responsible companies to do better in the area, having some kind of aggressive law going after individuals is probably not going to do it

i mean, the australian parliament could pass a law that says they're going to jail doctors until cancer is cured but that's not going to cure cancer if you want to build structures that make the companies take the responsibility seriously, for the most part they are. >> it's a little different in your analogy because in the case of violent content, there's a difference between content that depicts a murder and content that breaks the law that depicts awful acts with minors my point is if there's content that explicitly breaks the law, would it incentivize those companies to clean it up if the executives could be held virtually responsible instead of the platforms. >> we're there in a number of cases. for content that has the exploitation of minors, that is illegal in almost every jurisdiction, and there is liability for companies. what we're talking about here is content that is legally protected in most of these countries. that's the real challenge here is a lot of this discussion is not illegal in the united states in many cases it's not illegal

in australia to create a law that penalizes the companies for not taking down stuff that hasn't been adjudicated as illegal is the cart before the horse. what are the laws around what people can say online before we say there needs to be penalties for social media companies. >> which is all the more reason zuckerberg wants that spelled out more clearly alex, thank you so much. >> thank you >> thank you for joining us. coming up, president trump's threat to close parts of the u.s. mexico border could have a major economic iacmpt. we'll tell you why and how likely that is next. ...or trips. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade.

welcome back president trump threatening to close large parts of the border between the u.s. and mexico. it would have wide ranging effects beyond illegal immigration. scott cohn joining us now with that story scott? >> reporter: kelly, one need look no further for the sign of these effects with the san ysidro port of entry the busiest land border crossing in the world and one of a couple we're watching closely as homeland security moves personnel away from the ports of entry to other parts of the border looking for delays san ysidro is mostly passenger

traffic. otay mesa, five miles to the east, they are reporting as senior officials say 150 trucks backed up waiting to be processed. 130 people cross san ysidro for work, tourism and school they all spend money you shut down the border and you shut this down >> i go to san diego state like i mentioned for grad school. i have classmates. i have friends, that, like, come across every day to get their education. a lot of people are coming over for the right reasons and to try to pursue an education they have jobs on this side. that would create a huge impact. >> $1.7 billion in trade every day between the u.s. and mexico. talking machinery, car parts, fuel and yes, avocados business leaders urging president trump to keep that in mind >> but my view is that the president and the administration in particular have to, whatever they decide to do, they just have to do it without screwing

up the economy >> reporter: that message may have gotten through to some extent to the white house based on a subtle softening of the tone today with the president tweeting and press secretary sarah sanders saying mexico is taking some steps. that's exactly what the president wanted but the threat still hangs over this area in a situation where with the immigration crisis, what the officials are calling it, a system they say is on fire, kelly. >> scott, thanks a closer look at what would happen coming up, ten years after the housing bust, the exbsreur a back what it signals for the economy next ♪ there goes our first big order. ♪ 44, 45, 46... how many of these did they order? ooh, that's hot. ♪ you know, we could sell these. nah.

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focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved. welcome back people are once again moving further and further away from big cities to find affordable homes. take a look at this recent headline in the "wall street journal. it says a decade after the housing bust, the exurbs are back let's bring in the writer of that piece laura castizo. diana olick as well. great to have you both it's kind of a little bit of back to the future when you read about this and i like the quote in particular that said, it

feels like 2006 but without the fake high at the end of the rainbow. is there something more sustainable about living two hour drive away from work? >> you should be conceptabskept. people getting these mortgages with no, we see millennials wanting to buy a home and homes just aren't affordable in the city anymore >> there's been an affordability crisis we've talked about that quite a bit. in this case, we're talking about folks who have a two-hour drive to get to their jobs say, it's still worth it because they value the homeownership is there simply not the supply there's demand for housing people want that the economy is now in a place where they're aging into it and so forth is there just a supply problem

and what are the builders doing? >> we've really seen decades where, sorry, almost a decade where for a variety of reasons, builders not able to build enough housing, especially at that entry level it was very difficult and they were very risk averse. a lot of them lost millions of dollars in these areas and so we're starting to see them kind of ramp up that starter home construction, but this is the place that you can do it. this is the place where you can still get a lot. you can still get zoning approval to build these smaller homes and we're seeing them kind of go to these places in droves. a lot of the major builders are pivoting to this segment of the market at this point. >> what do you think about the sustainability of this trend quite simply if people want the house, they're willing to drive for it and there's no other way to get it at an affordable price point, is this the outcome >> i think you have to be very, very careful with a headline like this. we are not back to the future in any way. when you talk about the exurbs iss it's important to define that. we used to call that 35 to 45

miles away maricopa in arizona which is what the article is based on is definitely an exurb and seen growth but in general the home builders are definitely pivoting towards the entry level home but the big guys like lenard but in smaller cities. not moving far out into the exurbs as you'd think and the growth we're seeing in people moving to the exurbs supposedly much more of the retirement age, especially, in that demographic. so when you look at millennials, really you're seeing a little bit that they're moving from 14 to 15 to 16 miles away that's still the suburbs what we saw back in 2006 or even in 2000 or this mansions way out of town, i don't think it's the same way today. >> laura, quickly, as that's happening, some people might live 15 miles away to the city it could still take 90 minutes to get to work. >> especially traffic is getting worse and worse in a lot of cities i certainly saw that when i was out in phoenix

one of the other problems is just cities haven't invested in infrastructure that main makes t easy to get around >> laura kusisto with the "wall street journal" talking about the return of the exurbs i'll join melissa for "power lunch" which begins right now. i'll see you in just a moment, kelly. new at 2:00. president trump's economic adviser larry kudlow speaking this hour about the global economy. we will head live to dc for the latest. lyft sinking once again. shares below $70 well below the ipo price as well. is this a major warning sign for uber, pinterest and all the other unicorns coming public and the big apple riding a real estate losing streak that hasn't happened in three decades. we will explain. in the meantime, a check on walgreens this hour weighing on the dow inc. the company higher on its debut into the group of 30 "power lunch" starts right now ♪