tie it together. ian asking about hallburt. got to buy it. >> unity, unit, bought tncht frc, a lot of millionaires in silicone valley. >> cleveland cliffs. >> that does it for us "the exchange" begins right now. thank you, scott hi, everybody. what's ahead, numbers behind the battle a look at the industries caught in the cross hairs as the president threatens to shut the mexican border and potential fallout in the u.s. economy it that happens. plus, the biggest retirement overhaul since 2006. a new bill that's making progress on the hill would change the way you invest in and access your 401(k) we'll go through the details. and whole foods cutting prices again the doj getting involved with the oscars and is college still worth it all ahead in "rapid fire." >> kelly, we are green across

the board and the gains may not seem all that crazy impressive we're now, though, just 2% away from record highs. dow jones up a quarter percent laggard. half percent for the s&p one of the reasons why nasdaq is outperforming, semiconductor stocks this one etf, vaneck vector is up 3% today because analysts started coverage of amd and intel with buy ratings that bullish sentiment carrying across remember, the smh, the etf lost 28% of its value from highs last year and now up about 38% since the lows we saw in december. that's a big deal for smh. also one to watch here, shares of lyft, because according to ihs market data, this is now the biggest company of the large companies in america, they say, the most expensive to borrow and sell short in other words, bet against the stock.

cost you interest of 100% on an annualized basis just to borrow the stocks and sell short. kelly, lyft one to watch but up 3% today see if the gains stick around. at one point hit $72 share. welcome to "the exchange" everyone i'm kelly evans. private sector march payrolls showed the smallest increase in 18 months. construction and mmping saw big declines services index dropped to a 20-month low for march although remains at a healthy reading of 56 weekly mortgage refinances spiked, get this, 39% last week. they hit the highest level since january of 2016. why? everyone's watching rates. drill down on the bond market now with rick santelli at the cme. front and center ten year, the most clicked ticker on cnbc today >> of course it is viewers, listeners, you understand what is important it's ironic how it continues to

behave consider everything kelly just described. look at train day. yes, made tens, revisited after the 10:00 data and more lows and here we are back where the day started pretty much. one week including lows traded in the mid, slightly lower that the mid-230s every day nce a staircase. kite ca tight consolidation upward clicks go up on this, kelly. january 3rd, 255.5 when we get there, how we behave will probably tell us clues for the rest of the year on rates and finally three month to ten year adding hand wringing. here we are positive eight not that it can't revert, that's a good sign about the consolidation of rates at this lower level. back to you. >> rick, all i know, already going, wait a minute i had a three-day window to catch the ten year at 235. then, you know, might have

missed it. >> yeah. you know, you can never think that way, people always look at it as kind of the thick part of the chart. you're never going to really catch the turns learn by the turns. whether this market is turned nudge, consolidation is building confidence in many it has. it's never too late. think about the other side of the equation how would you have liked to have made the wrong decision at 236 what we're here for. right, kelly >> right rick, thank you. rick santelli. the u.s. and china are reportedly getting closer to a trade deal as talks resume between the two parties in washington today i'm joined by kayla tausche, right here in cnbc headquarters. welcome. >> thank you taking the act on the road today and want to see -- >> baby photos that whole thing. no stick with the news. >> social media audience gets enough of that as it is. >> the delegation arrived today. it appears the news flow suggests, they're there? >> they're there

this is i think the ninth round of talks between the two parties. leo hood, vipt premier arrived earlier in the week. principles are meeting behind closed doors beginning today we believe until the end of the week in past, stayed and extra few days to signal talks are going so well. officials that i speak to say that the process to comb through the deal text is slow going but both sides are still committed to reaching this deal. nec director larry kudlow told a group of reporters the two countries are making headway >> i think the chinese have acknowledged these problems for the first time they were in denial, and -- >> [ inaudible ] >> all of them all of them. the ip theft, forced transfer, lack of ownership. cyber hacking. they've acknowledged that. before that they wouldn't acknowledge t. seen as a breakthrough from the white house. others briefed on talks, expected outcome described as a

scheduled detente. the wild card when certain tariffs come off china wants u.s. negotiators to agree to remove them all up front. president trump wants to close the deal himself at mar-a-lago and the one to deliver that final package. the question is, what is that package? >> right sticking points on i.p. theft, hearing, making progress, understand the issues. people sound optimistic it will come together. what would be a sign all of a sudden that's changing if the delegation leaves early signs to watch for all of a sudden this isn't proceeding at pace >> if that happened essentially a presidential win up until this point, even last night at a republican dinners pret used some of his familiar refrains that china needs a deal badly. talks going well, reserves the right to walk. ultimately talk, going well. the thing market participants and corporate executives are

pinning their hopes to the president believes they're going well, believes they are going to get a deal end of the day. we'll see what happens in a few week or a few months. >> good to see you. with the rally seve so far have the markets already priced in a deal with china or could it move higher if horse it gets done head of the investment group of ariel investments and managing director and chief strategist as silver crest asset management. welcome to you both. patrick, start with you. just heard kayla's reporting on the u.s./china deal and investors optimistic aren't they? is a deal priced in? >> i don't think it's fully priced in in the sense we've seen the market go up and down based on the flurry of rumors every day. i think one good thing for the market that will come out of a deal or even just kicking the can down the road is the fact that further tariffs won't be implemented. a lot of concern about the impact of these broader,

steeper, 25% tariffs and also the retaliation that would ensue on u.s. companies on the u.s. economy to the extent we either kicked that down the road or actually take it off the table through a deal that would be positive. >> sure. >> one thing i think markets, we should be careful about is the assumption, if there is a deal, that, okay problems have been solved -- all problems have been solved either between the united states and china, because there are a lot of other issues on the table that can cause tension and also in the chinese economy. which is slowing slowing for reasons that don't have anything to do with the trade war. they have to do with entrenched problems in the chinese economy and that will continue. >> charlie, as we know, anytime there's weakness in china we see our market suffer especially the sectors that are exposed to it overnight a better read on the services gauge out of china. again, we have to take the numbers with a grain of salt, but is there a sense we're seeing green chutes in terms of

china's growth turning a corner? >> so china is not slowing apologize whenever i come on i get a little tough on this china is growing, maybe at a slower rate than it was growing before, but if a car is driving 50 miles an hour, then a minute later driving 55, then a minute later it's going 58, we wouldn't say that car is slowing. we might say it's accelerating a a lower rate china is growing at rates that the u.s. economy hasn't grown in in 20 years. >> how do we know sometimes china's not going 20 miles an hour or 15 always assume from 5% to 6% or 4% what if it's 2.25% how do we know >> that's why we're so bullish negative on the chinese economy and effect on the global economy a lot of people predict recessions in the u.s. two consecutive quarters of down eps. that's why the market got hurt so badly in the fourth quarter

and why the market's been so strong this year because it just isn't in the actual performance of company. any real evidence of that weakness. >> let me separate that out a second totally right that the china concern dominates but also, charlie, people have been very concerned about a u.s. low the only thing that really matters and one thing we're not seeing evidence of far as i can tell. maybe you see it differently if that's the case, does the ten year yield deserve to be even at 2.5% or should it be higher? >> the bond market is afraid of the u.s. economy as well the interest rates went down from 3.3 to 2.3 because everybody worried about a recession. people keep talking about predictive power of an inverted yield curve. actually talk to people running businesses they are not seeing a downturn this quarter. automobile maybe slightly, a little soft. maybe western, new home construction a little soft, but i'm predicting this year's economy is going to grow 2% to

3% gdp i think we'll get eps growth of mid to high single digits. >> let me put a little different what's happening with the chinese economy in the way it impacts the u.s. economy >> go ahead. >> i do think that china's slowing. slowing significantly and it has very serious problems that will cause it to slow further i don't think that we should sort of brush that aside and say china, everything's fine with china, because to the extent we do get rebalance in china, they're driven by the same credit that created a bad debt drag on the economy. that said, a slowdown in china does not translate directly into a slowdown in the united states and the rest of the world necessarily. >> no. >> china's current account surplus has been shrinking it's expected to go into deficit this year. that actually means that even as china's output begins to slow its demand continues to rise and that's really what drives growth and the rest of the world. >> okay. >> china shifting in this

direction is not snesnecessarild for the u.s. economy. >> go the to go. charlie, two-second attackaway on lyft, like it from the start? still stay away? >> absolutely not. losing money on every ride even before sgna a model you have to have at least 10% increase in prices for them to break even on an individual ride basis. not a fundamentally sound business at this point. >> all right had to ask while you're here. guys, great to see you both. great discussion on china. appreciate it. here's what else is coming up on "the exchange. >> announcer: a house committee passes a bill to upgrade 401(k) plans amid what they call a retirement income crisis the details and what it means for you and your future. a man that holds the key to the dow and s&p. david blitzer hangs up his jacket after 40 years. what he thinks about the future of passive investing. and the wave of hot ipos

coming logistical, legal, and economic problems that's what many are saying is ahead if the border closes we'll take a closer look >> announcer: this is "the exchange" on cnbc. -i call it my comfortable future plan. -it's our confident forever plan. -welcome to our complete freedom plan. -it's all possible with a cfp professional. ♪ -find your certified financial planner™ professional at letsmakeaplan.org.

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americans save for retirement. proposed secure act passed by the house ways and means committee includes comprehensive changes such as a tax credit for companies that set up 401(k) plans with automatic enrollment and appeal of the age for ira contributions and expanding plans to include student loans joining me to talk about the changes jeffrey levine ceo and director of financial planning at blueprint wealth alliance and cnbc senior personal correspondent sharon epperson. >> good to be here. >> the biggest takeaways of the bill likely people can contribute to their plans past age 70 and not forced to withdraw until age 72. >> what the individual takes away from it everyone looks at it from their own unique point of view the thing most powerful in the bill are those that will help more people have access to an employer plan. really that's the key to getting people on track for retirement getting that participation and

employer sponsored plan where the contribution limits of higher, set it up to come right off your paycheck. ener hsia is a y inertia is a powerful thing >> 55 million people work for an employer that does not offer a retirement plan. another 32 million small business workers don't have access to one. how does this bill change in a >> very important for those working for a small business because it's helping to have small businesses be able to afford to set up these plans offering a tax credit if you do an automatic enrollment, way to get workers to participant doing so in one with the enrollment features. the points raised about the amount of people with no access to a retirement plan at work is significant. particularly significant for minority workers as well and not just people who are making just a little bit of money. people are making $40,000 or

more, 12 million of those people have no access to a retirement plan at work these are people with definitely the means to put money away for retirement. >> right this bill allows a lot of these small businesses to band together to offer 401(k)s, i guess more difficult to do right now. so that's one of the key features you said, getting access to 401(k)s in the first place other, the changing way people are working. sometimes working longer not wanting to have to withdraw the money at age 70. waiting to age 72. interestingly pay for this potentially changing what happens if you inherit a 401(k) plan doesn't apply if your spouse or children i think those categories exempt. for others -- >> children of a young age, disabled, chronically ill. >> everybody else, inherit a plan, withdraw within ten years? >> right a 40-year-old individual has another 40 years to stretch distribution

leave that to a grandchild, could be 80 years. compress that cycle. looking at paying for a retirement bill with retirement account income as much as i as a planner don't want to see that happen, it makes sense once you're dead you don't need a retirement account this is a fair -- you know, it's a fair way of paying for it potentially. >> other people will start doing more estate planning many have not done and do not do another positive sign, if this does happen. >> a good point. also in this, just want to mention. it's not retirement related. but here we go 529 plans would be allowed to include now -- they recently expanded from beyond college expenses now toprivate schools a big deal now they would be allowed to cover expenses related to home school, one thing, but student loans. that would be a huge change. wouldn't it? >> a huge change and so many people are taking hardship withdrawals from 401 ks and

retirement plans to fay for things like student loan debt and other debt being able to pay for it in that way is significant. >> so, all told, if the bill passes in its current form is it what it says it is a way to help people with access to 4b01(k)s, contributing and withdrawing from them? >> it's a good first step. it's no the perfect. but we can't let perfection get in the way of progress so i think that's important. >> here's a key thing, kelly, you cannot legislate self-discipline. bottom line saving for retirement is saving for retirement on your own and doing it until the bill passes people still need to put mun away saving for retirement and trying to come up with a plan how to do it. >> it's not april 15th sharing you can still contribute. >> you can you can! 2018 still do one for 2019. there's a lot of time to do that ira contribution. >> 12 days people, get cracking. thank you both. coming up, new details

emerging from a deadly ethiopian airlines crash the late effort and what it means for boeing ahead. and verizon rolling out its 5g network ahead of schedule did the company throw down the dauntlet to the competition? the justice department is getting involved with the oscars we explain in "rapid fire. stay with us and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪

welcome back to "the exchange." here are movers this hour. acuity brands maker of lighting

systems soaring on pace for its best day since july. the company beat on earnings on earnings per share shares up 9% gamestop deep in the red following its results. the company warning of a potential loss for the current quarter amid slowing sales shares down 2% facebook going the other way jumping nearly 2% today. hitting a seven-month high the stock is up 35% year to date despite all of its ongoing battles now. again, half percent higher on the session. over to sue herera with cnbc update. >> hello, everyone what's happening this hour police in uganda say an american tourist kidnapped on is a far any queen elizabeth national park the 34-year-old woman and her driver taken at gunpoint and held for half a million in ransom. chicago's lori lightfoot promising historic changes ahead including improving relations

between police an communities. >> i'm feeling good. you know it's a fantastic day to be a chicagoan. i am overwhelmed by the support of people all over the city. we wanted and we now have a broad mandate for change and i'm excited about getting to work. >> and how's this for marketing? charmin is introducing a new forever roll that will last up to a month before it has to be changed and the rolls are so large they need a special dispenser. the starter pack comes with three multiuser rolls and includes a free toilet paper stand. price tag about $30. luckily includes free shipping there you have it. that's the news update this hour kelly, back to you. >> might be a hit in the household. anyway, sue. >> yes >> thank you very much 30 minutes until "power lunch. joined by melissa lee. what's coming up >> talking about the troubles with lyft share since probably the second hour of trading for shares of lyft last friday we've got an ipo professor of

finance who studied ipos very, very knee deep in. says 81% of ipos that go public are not profitable could that be a problem here with not just lyft but a lot of tech uniforms coming into the pipeline most of them if not all of them are unprofitable should that be a ken for investors? does it impact the long-term returns? profitability and return on investment go hand in hand. >> very different. meaning, you need to have profitability ultimately >> share price can go higher even if a company is not profitable a la and amazon. >> true. >> by the way, fun tony robbins that really tall guy "new york times" best-selling author and aunt pra pra nuentrer is the financial freedom game winnable he says yes. he gives the tips. still ahead on the exchange. >> announcer: coming up --

the doj gets into the movie business with debt exceeding $1.5 trillion, is college worth it anymore? and a super opening for the "avengers. all ahead in "rapid fire." and to say vip is an understatement, because i sawww justin timberlake. so he literally looked into the phone and started dancing-- well, he was already dancing-- locked eyes and continued dancing. i still have to like pinch myself and make sure i'm not dreaming. every now and then, i'm like, "wait, did that happen?" (gasps) i've got photos of it, it must have. (vo) get more music on us with vip tickets to the best shows, like shawn mendes and camila cabello. plus, save big when you switch. only on verizon.

welcome back let's get you up on stories on your radar time for "rapid fire." here with takes and breaking down the stories bill griffeth, courtney reagan and special guest phil lebeau. >> i don't get here often. good to be here. >> welcome aboard. >> oh, no. i'm not going into the poop cruise story again that's last time no more. >> oldies but goodies. >> a much more serious story and glad you're here, phil "wall street journal report"ing pilots followed boeing's emergency steps initially turns off the flight control system responsible for pushing the plane's nose down. later i guess they turned it back on. that was shortly before the plane crashed. what's that mean for boeing? >> i've independently confirmed this in general terms unclear here because we don't have the initial report from the

ethiopian authorities. hoping maybe overnight we get it a question what exactly did the pilots do? that brings into question not only the system, how it operated, did it misfire did it malfunction, how did it possible do that but also the actions of the pilots that's the big question here were they -- did they actually glow through the proposal wall exactly as they should have when not getting the response why fire up mcas again in a general sense, look at it, you have problems, boeing. certainly not good news. i think everybody really wants to see this at least initial report to say, okay. >> a little better sense here. >> reading on this as i think we all should do, to understand the system and how it's different from previous boeing jets. it's very complicated to some degree what it comes down to is a false reading from these sensors. >> correct angle of attack sensors. >> so that the stable kicks in.

>> right. >> and in essence pushing it down well, pilots should know that. so is this just a training deficiency on the part of some of these airlines jrchts that's at the heart of this whether or not the training was sufficient enough, and we were out in renton, washington last week and they said, look, part of our fix is not just a software fix for the mcas software system, but enhanced pilot training the question then becomes especially on a global scale there's a shortage of pilots in a lot of foreign countries they are trying as quickly as possibility to expand their fleets and services and these pilots put in the cockpits, no the saying they're inexperience pd and didn't know what they were doing the question becomes will there be enough training so they're ready to handle this >> ethiopian authorities will deliver the report you're referencing thursday at 10:30 a.m. local time. so -- >> late-night reading to do. >> as i try to do the math

next up, and starting today, whole foods is cutting prices on hundreds of items and doubling the number of exclusive deals for amazon prime members saying customers will save an average of 20% mostly on meat and produce. what's the real end game here? >> i have to say, kelly, remember when this announcement was made and it shocked us all amazon was buying whole foods and sent ripple effects not just through the grocery industry domestically but internationally. everybody thought, a killer. really hasn't done that a year later. look at the pure numbers in the year over year comparisons for amazon's physical store, including other formats but most is whole foods down 3%. calendar shift, they say up 6% that's nothing thinking about amazon price cuts on hundreds of items, produce and meat, is that going to make a big difference not when the you're still priced that much above your competitors. >> right the problem is, there are too many grocery chains out there.

seriously. right? >> there are whole foods, only in the 400s. 460. kroger, walmart, thousands and thousands of stores. >> the calculation this morning. from my house, ten minutes out, there are, get this, ten different grocery store chains, and two of them are the same i got two fairways on either side of me that i could go to. >> you're uniquely lucky new jersey is so dense i grew up in virginia. there was a kroger, that used to be another store a super walmart. that might have been it. a 20, 30 mile -- >> food, grocery business, notoriously small profit margins anyway having to cut prices to get people in for the market share, they're beating themselves up over pricing now. >> obviously, walmart sells many, many other categories. general merchandise. 56% of their sales are grocery and in thousands it of

locations. amazon whole foods has a long way to go. both prices and number of stores to compete with what walmart does. >> good for consumers. not the industry. >> right. >> true. seems they're trying to find what the future whole foods will look like. >> of course. talk about the justice department, getting involved in oscars warning the academy of motion pictures arts and sciences it could be violating antitrust law if it tries to exclude netflix from competing in the oscars some of the entertainment industry called for new rules requiring eligible movies widely released in theaters something netflix doesn't normally do. what do we think about the doj's involvement? >> technology is ahead of the rules and laws that exist out there. once upon a time the cable television industry didn't qualify for emmys. had to have our own. right? once they were allowed to qualify, hbo a big deal. know netflix a big deal in emmys

and all that technology is now changing for motion pictures, streaming is out there, and netflix has become a big deal there. steven spielberg needs to acknowledge that the viewing patterns and the technology have evolved. the rules need to evolve same time doj is reflecting that there. >> right about that. same time, is this really what we need the doj to do? >> i thought that. goods in sakes. >> early to be getting involved. >> ridridiculous i'm on a soap box. plenty of the issues for the doj to focus on. a lot of criminal things gong in the country, who's getting in the academy awards, is that worth their time >> and big tech. focus on big tech. netflix and the oscars doesn't seem like the silo to get involved in. >> and poking a little bit saying no. by the way, mention this helen mirren overnight apparently said i love netflix but f netflix. she said there's nothing like sitting in the cinema and the

lights go down i would like to thank you guys for making that environment possible at a cinemacon event tuesday night. i wonder if there's a little of seller's remorse some people involved in the content and seeing, delineate netflixs from true hollywood and the cinema experience so we don't lose it? >> everything evolves, changes if we never changed we would all be still in caves. >> or on broadcast. >> right things are changing and they need to get used to it. >> if mr. movie buff is on it, whatever bill says i follow it. >> i can't tell you the last time i went to a theater. >> really? >> i'm old school. i love the movie theater. >> i'm home to watch these things. tickets for marvel's highly anticipated "avengers: endgame" on sale yesterday and broke records. amc's app and website down several hours yesterday. fandango and ticket users wait times over an hour

find tickets on ebay for hundreds of thousands of dollars. come on. the parent company owns fandango, which, anyway -- >> they do >> what i was going to say. >> i didn't know that. >> but i'm truly amazed by the demand there seems to be for tickets to the movie to watch these movies. >> right. >> first of all, when i hear "avengers" movies i still expect to see john stephen and emma peal my problem. >> you would think at some point, seen enough and the franchise would start to lose its appeal it's hasn't. fascinating. you talk to "avengers" fans, they're like, can't wait for the next one. >> all the comic book movies out there. >> right exactly. >> what is it? top five or top ten all-time movies now, most of them are either "star wars" or some of the marvel comics movie ins out there. >> and franchises that do well in theaters. so bringing you back to the last

conversation, i think the "avengers" movies and superhero franchises will continue to have their place on the big screen. there you have it academy of motion pictures. >> a second or two worth a mention. former fdic chair out with a new op-ed on cnbc.com asking the question is college worth it she's a college president and points out student debt now exceeds $1.5 trillion. the sta for me nearly half of borrowers are expected to default within the next five years. >> college is a supply and demand situation the prices are becoming so high that you would think at some point the demand would go down because it's too expensive not happening. why? parents want the best for their children and they cannot admit that going to a trade school or some state university where they could get a good enough job that way would be good enough for their children they want the best possible no matter how much it costs right? >> in terms of student debt, i'm on my soap box op the time if you're going to college and i paid 100% for myself, you take

out the loan you are signing up for it. so for you to come back ten years later say, boy, i have all this debt and nobody told me -- nobody put a gun to your head to take out the student loans you knew what e were doing. >> disingenuous. i agree. now call this a soap box. >> instead of "rapid fire" it's soap box. >> your kids out of school, towards end of school. i don't even have kids yet who knows if i'll afford their college one day. >> accepted them to trade school they'll do just fine. >> they need people who can weld desperately in this country. >> pilots. for sheila's op-ed if college is really work it, go to our website. thank you so much. breaking news. deirdre bosa joins us. >> amazon removing promotional

spots. scaled down relocated on-site promotions for branded products. private labeled products like baby wipes and batteries this comes as amazon ramps up the number of its private labeled brands that has stoked concerns among sellers and brands that sell competing products on the amazon website. also comes as regulatory scrutiny of amazon and other tech giants ramped up. in an e-mail statement to c mbs amazon these are part of a broader experiments and the company constantly tests product placements. >> thanks. deirdre bosa bringing that to us. coming up, he decides who gets to be in the dow and s&p. after 40 years nearly passing the baton to someone else. first, joins us on "the exchange" and we'll ask him how investing has changed the rentce wave of ipos and more with david blitzer, after this.

so how are things with you guys? great. thank you. thank you, sir. lunch next week? terrific. say hi to the team. will do. call my office, i will. -sounds good. alrighty. servicenow. works for you.

the blue chip index looks different. he's a big reason by david blitzer decides who gets to be in the dow and in the s&p 500 and helped both grow during his nearly 40-year career and joins me live from the new york stock exchange along with bob pisani bob, kick things off. >> david, congratulations. 40-year career slowly going into retirement, but tell us a little bit about what it's been like the last 40 years. you chair the dow committee. we wonder what goes on there has the criteria changed over the last 40 years? what's different when you decide who's going in versus 40 years ago? >> probably the biggest difference for both the dow and 500 is the criteria is written down and published people back in about, sometime late '90s, i think i went around the office, talked to the

members of the 500 committee and we actually wrote it down in a way that was formal and decided to publish it. probably the biggest change. the criteria out there they're published, explained, damed. probably 40 pages. >> a broader index, too. not just industrials the old index 40 years a lot of industrials. more tech today. more health care maybe anything that's changed the way the economy and what you put in there? it's different than what you put in 40 years ago? >> both indices have kept up with the economy 40 years ago there were two or three it tech stocks maybe i'm m. ibm health care not that much in the stock market the medical profession you couldn't touch as a stock market investor everything has changed and the indices forced or required and have changed to stay with the economy. >> criticizing david blitzer a pastime for many at cnbc

not for me but did you wait too long before you put apple in was ge in too long do you have any -- looking back -- things you would have done differently >> watching names go by with the 500. when we put aol in the 500, about '98, right after an s.e.c. investigation of bookkeeping ended. first told we blessed the internet, which we couldn't have done not our business by any means. second of all, the company we took out, i noticed f.w. woolworth. ever a sign of a changing economy, it was taking out five and dime and putting in what was sort of the first edge of the internet that anybody saw in aol. >> bob, thanks david, i wanted to ask one thing that comes up a lot when i talk to people. they say why do you always talk about the dow jones industrial

average? the s&p is more emblematic of the economy, you know? has 500 stocks this 30 stock index, how can that tell you anything i always say look at the track records. they've been fairly close over the past, call it century. surprisingly so. one having a basket of 30 hand-picked stocks the other almost -- a much bigger universe. why do you think it is that both still work or do you think that they do, in fact, still work >> i think both still work i could say why do you guys keep talking about the dow? i said that until we acquired the dow indices back in 2012. >> then stopped. >> they both work. they both track the economy quite well, and i expect they'll both continue to track the economy very well. >> you know -- >> go ahead, bob. >> go ahead. >> david, ask, to you have concerns about the indexing bubble in a way so successful, it threatens to start to warp and distort things >> i have no concerns.

i don't think it's warping anything at all. the growth we've seen probably in the last five to seven, eight years has not been necessarily growth in the s&p 500 and dow. it's because we figured out how to do indices on factors, on special waiting. on just about anything, anybody in a hutch fund, an analyst can build up, we know how to build it as an index it's much better the etf guys provide a first-class product to an investor and why it's growing. >> great stuff bob, thank you very much david blitzer, it's a pleasure, and that story about aol and woolworth, that's what we come for. >> okay. >> thank you guys and congratulations on your career bob, thanks so much. >> thank you coming up, verizon turns on its 5g wireless network ahead of schedule what that means more the company and for the competition. feel that? that's the beat of global markets, the rhythm of the world.

but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

the latest inisn't just a store.ty it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. welcome back to exchange i'm josh limiten we have some breaking facebook news here. reports out that upguard cyber security firm has found facebook user information apparently

inadvertently posted publicly on amazon's cloud computing serv s servers. apparently 540 million records we reached out to facebook company saying facebook's policies prohibit storing facebook information in a public database once alerted to the issue, we work with amazon to take down to databases. we're committed to working with developers to protect our people's data. upguard saying they flagged it on january 10th and january 14th and didn't get a response then they noted on january 21st the data was still out up guard saying they did flag this to aws. we reached out to amazon and will bring you a response if and when we get that josh, thank you. shares of verizon are slightly higher today on news that the company has turned on its 5g wireless network we have more on that this was kind of a surprise.

they did it so quickly >> it was. and there's a marketing battle really in 5g, a marketing race samsung said they were going to be turning on 5g in south korea. it looked like that was going to be the first pairing of a 5g network and a phone available. now verizon has beat them to the punch saying they turned it on today when it wasn't expected to be live for 5 more days. at&t says they turned it on last year, but they don't have any phones ready to go on it the 5g but without the devices to go live on it everybody is angling >> it seems like there's difference between what each of the carriers offer verizon says it's going to charge people $10 a month more to use it? >> it's not clear what people are getting. we have to see the actual speeds available, how they get affected once multiple devices come on to the networks right now we're still at very much the headline phase of companies wanting to prove yes,

we can get 5g up and running here's the phone we're going to sell we're first. how much you really pay for the experience, if there's -- we have to rain the fine print. the big print is hardly out. >> true. this is only available in select cities for now >> minneapolis and chicago are the first two cities that verizon has launched we were told this morning at least 30 cities by the end of 2019, and those are, he says, larger cities. they haven't named them all. i tried to prez him on whatter be s -- percentage of the u.s. population would be covered. a lot say 2020 is when 5g. 2019 for companies like qualcomms and equipment makers >> making the gear >> because they have to build out the networks. >> what about the phones you mentioned on at&t's network, they didn't have a phone for it

yet. does verizon >> verizon has a motorola phone they're launching with samsung is in the lead in south korea. their galaxy phone is out of the gate >> where's the iphone for 5g does it not work that way? >> tricky. apple is in this battle. this ip battle with qualcomm qualcomm is the leader when it comes to wireless 5g technology. if you want to be out early with a 5g phone, you have to use qualcomm apple said we're not using call come all these players they're talking to coming on with phones early on are usiing qualcomm technology analysts say don't expect an apple iphone with 5g until 2020. >> that sheds a whole new light on the negotiations between

apple and qualcomm president trump is threatening to close the border with mexico to fight illegal immigration. one board says it will halt more than a billion in daily economic development. joining me to discuss the risks are dan griswold and scott cohen at the border and joining me here as well dan, i'll begin with you what is the economic impact we're talking for a full border closure? i understand it could be partial and again, this could not happen at all what's the worst case scenario >> the effect of closing the border would be immediate and negative for tens of millions of americans. $1.7 billion in goods cross the border every day 15,000 trucks going back and forth. half a million people crossing the border every day to work, and to shop. it would be particularly

devastating to border communities, el paso, but it would be felt throughout the country. look at fresh produce and vegetables a large share of that comes from mexico we'd see prices going up, if not outright shortages of avacados and cucumbers and tomatoes and then, of course, thanks to nafta, we have an integrated north american production platfo platfo platform most dramatically in automobiles. parts crossing the borders seven or eight times in the production of an automobile i think you'd see automotive assembly lines shutting down within days in the midwest and in the south if we were to close the border >> okay. scott, to that point, another economist said the entire u.s. auto industry could close in a week if the border closed. 16% of parts of automobiles produced in this country come from mexico. how likely do people think this

is to happen >> reporter: when you talk to people here in san diego, for example, this busy port of entry for passengers they treat it more as an annoyan annoyance, but they're making plans just in case so many people come over here for work or go over there for work or business or entertainment or whatever else or to visit family and so they have contingencies they're more kind of annoyed by the whole thing which kind of reflects what business is looking at the other thing that's very real, whether or not there's a border shutdown and it's sounding less and less like the administration is prepared to do that they are already diverting people from ports of entry like this one to other parts of the border to deal with this humanitarian issue right now it's about 750 personnel across the border going away from these ports of entry and going to other spots so it's a slight impact, and so

we saw some trucks backing up at a crossing that is just east of here four-hour waits yesterday. that's an issue. that slows things down even if there's not a closing, there is an impact >> finally, dan, i see you direct the immigration and trade project. if the president wants something done about this, he is trying to do the national emergency declaration to build out the wall that isn't even there again, this is at the entry points that we do have, and this asylum issue, quickly, what other options does he have to solve it >> it is a real problem, but you're right it's at the ports of entry it's people presenting themselves for asylum claims we have gotten cooperation with mexico the real answer is immediately to tighten the laws so that people don't have an incentive to come up, but also we need more judges. we need more detention beds down there. a wall isn't going to solve it and even if he gets money for the wall, that takes years to build and the emergency is right now. so we need more people, more

agents, more judges, more beds >> all right guys, thank you both dan and scott with a look at the impact that does it for "the exchange". thank you for joining me today "power lunch" begins right now new at 2:00, stuck with each other. with investors stuck in the middle what president trump's latest attack on fed chief powell means for market confidence. and tech unicorns, the scary stats you need to know and financial freedom. is the game still winnable tony robins will join us live. a check on the markets stocks carving out gains at this hour optimism about a trade deal a catalyst there are fresh concerns the hiring boom may be running out of steam "power lunch "starts right now we begin this hour with the american economy, the pace of hiring slowing again and