and tim cook one of the most innovative ceos. >> got to love it, throws it in with four seconds left in the show to be continued. that does it for the halftime report "the exchange" begins right now. >> thank you hi, everybody. here is what is ahead. diz in y disney stock releases an all-time high. are they too optimistic about subscriber numbers plus the biggest auction ever wireless spectrum about to be announced. we'll look at which companies need that bandwidth the most as the nation prepares for a major wireless overhaul. and another ceo comes out hard against ceo and this one is a major advertiser ahead, we'll talk about how serious proctor and gamble's threat to leave those platforms really is. but we begin with the rally. >> and a big one because we have

earnings and deals to talk about, all of that driving big market sentiment and it is green across the board. we're talking about a full percentage gain or just about for the dow industrials up 250 points t s&p up two-thirds of one percent. and nasdaq as well so a good story developing especially because some merger news to talk about a developing conflict over who will get all the shale oil assets in the u.s. one big play happening right now is of course the big deal with chevron, occidental, who gets it all of the oil and gas sector doing well a massive move higher inside is t since the loewws and mcdonald's and microsoft at

record highs and these names some big ones in the consume space making record highs. >> and getting closer for the indexes overall. thanks welcome to t"the exchange." yields are also on the move. the ten year yield is back above 2.5% the 30 year 2.96%. almost at 3. and this despite a drop in coupler sentiment this morning and a big decline in consumers inflation expectations but markets are reacting positively let's drill down more with bob pisani you have china and maybe mr. dimon giving the bulls a boost. >> so we have a global rally going on two real key headlines. strong earning and the strong global economic data, particularly china the chinese data saw futures jump 4:00 a.m. eastern time.

futures took another leg up when jpmorgan earnings beat estimate, but more importantly, jamie dimon issued some magic words. u.s. economy continues to grow, employment and wages are going up, inflation is moderate, financial markets are healthy. and consumer and business confidence remains strong. that is the bull scenario. right there in one sentence. china is bottoming being u.s. economy is going to remain strong from here nearly 30 companies have already reported earnings from the first quarter and far more companies are beating estimates than usual and they are beating by a much larger margin than they usually do that is because analysts dramatic lig cdr dramatically cut their concerns. and now saying it wasn't that bad. and we're less than 1% from an historic high on the s&p 500

>> bob, thanks so much shares of disney also in the all-time club today. bob iger is confident about the future >> i'm pretty optimistic about the ability for this thing to work particularly because of the user interface and price i believe that it will be successful. five years time i pb wrong, we're still making great content that will be in great demand globally. >> let's bring in our media and entertainment analyst. jessica, thanks for being here >> thank you >> so perhaps most important was the pricing at only $6.99 a month and disney thinks that they will have 60 million to 90 million sub skriscribers by 2024

do you think that is realistic >> i think that is conservative. that is a global basis in five years. and a third of those are expected to be from the u.s., 20 million to 30 million subscribers at a low price, an affordable price of $6.99 given the wealth of content is more than doable in our view. >> so the stock jumped again an all-time high several dollars above the previous high. there will be some losses that they are forecasting for this. >> it is really interesting. this was a highly anticipated analyst meeting. and it did not disappoint. they have great content and great brands which is a huge assess to disney between disney, marvel, pixar, star are war, national geographic, the original content, it is tv shows and movies, and then they surprised us with the announcement that they will have the exclusive

rights for all 30 seasons of the simpsons, so if you think about that broad demographic appeal, family, kid, boy, it is across the woboard. the affordable price and very easy user interface on all devices really, it seems like a great service like a great potential. but the important thing for disney, in this analyst meeting yesterday, was to show wall street that their basic base and then the direct and consumer business where they will invest a lot of money and in our view this was mission accomplished >> and you have taken down estimates a little bit for the near years i like how you say you are glad to do that because of the investment in this service would be questi one question though it looks like they will be nowhere near netflix going out several years. can disney succeed with spending

20% of netflix content budget because of the library that it already has or does that have to go up? >> that is their basic business. they have ip and everybody knows their ip their brand is amazing and their platform to market this is amazing. but just think of the if i would him lineup for the restth year and the catalyst before this launch they have avengers which will be -- you can't even buy tickets for the first week toy story 2, live action lion king and then the opening of the star wars land and disneyland and disney world but think of their kept and their brands and how they market all the multiple platforms it is a unique advantage so, yes, we were able to bring our numbers down, but we separate out now the valuation of disney's underlying businesses and then add on the value of this direct to kirm service. not just disney plus, but hulu and espn plus as well. >> and they are talking about

$1 110 million to 120 million subscribe subscribers. jessica, thank you very much moving on to a tale of two bank stocks today. jpmorgan is jumping on the back of strong results and bullish commentary from jamie imon on the flip side, we al wells ft then cut its outlook how big is deal that their net interest income is negative versus the range earlier which wasn't that great to start with? >> well, first of all, all the banks got a big benefit from the fed raising rates. last 50 basis points, not so much now that the fed has stopped

raise rates, you will see some challenges on the margin how do you grow loans if your balance sheet is capped? federal reserve says you can't get any bigger so that is a real challenge here so i think their hands are a little tied. and then of course the strategy side, who will run the company >> it was interesting after they said this and they cited all mack cro factor, jpmorgan shares didn't budge so are you pleased with what jpmorgan said? >> i have to say they are the best bank in the united states a nice clean quarter the capital markets did decently well and jamie's optimism about the future is, you know, made everybody calm down a little bit. the other thing that we had in the bank stocks is the big move in the treasury. we had a big drop two weeks ago.

today macro guys are like let's cover our shorts and buy them again. so this is both earnings and the macro trade. >> and wilf do you think investors are saying you still have a lot of catching up to do? >> analysts are angry with wells if a a far go their guidance only is you ysue january. and people are pretty surprised by this cut in net interest income guidance. and it is macro factors, but they are dealing with the same yield curve. and he said it is a tale of two stocks, it is not really, it is a tale of welling fargo and the rest pnc had a decent beat across the board and that is why you see all the banks rising apart from

wells fargo. >> a great point so some of the other regional banks we'll get more results next week, you've received that you like how some of the regionals are positioned what with the goldmans, investment bank, are you interested there >> i think the bar has been raised jpmorgan did it again. and i think when they have to report next week, it may not be about what is looking back jpmorgan did talk about who the quarter is starting off much stronger and i think people will look past anything that happen in the past. but however all the stocks are up again today so could they disappoint next we week, i think yes. we get a trade deal, you know, yeah, you want to own these. >> and so your favorite names here >> i continue to like the ones in the nonsell states. i like first bank in tennessee i like center state in florida

i like veritex in texas. and we'll see a lot of menschme. and there is a lot of value to be created >> just stick the knife in those of us in the salt states and twist it thank you both here is what is ahead -- >> coming up, chevron makes a huge acquisition giving the energy sector a big boost. who could be the next big buyout target we may never make a profit that is what uber says is a risk for investors and their ipo filing will it turn investors away? and the president unveiling a major initiative today that could impact the way you search, watch and browse the internet. the details and the impact ahead.

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i'll step out on a limb. >> been waiting for this >> i think we're in a bottom >> and this is because you've done work? >> according to my research, the key is the 200 day moving average. this is a nice

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that ox deccidental had bid more than $70 and that is giving the sector a boost let's discuss. brian, it is weird first of all that the shares up 30% today, but they didn't go to 70 based on david's reporting about:00 deny ta occidental how did you read this deal >> and if you accept the lower payment overall, you better have a good reason. that is any shareholder will tell you that. so i'm sure there are a couple before-list before -- listen, i haven't spoken to occidental management yet. but chevron was 75% stock, 25% cash chevron stock has done very well occidenta occidental's has lagged a bit. so maybe you are not a believer

that the occi stock will continue but they offered more money. i think there will be questions to answer. >> and so chevron obviously we're talking about three or four biggest oil companies in the world. others are more shale oriented what does it tell us about the space? >> occidental and chevron actually are the two oldest players in the permian basin what chevron said is that they are buying property that abuts their own. so physically you are buying your neighbor's house because then you have the same trucks and same people and you can move things around. so they are buying land physically close occidental i'm sure would be right there as well. but there also an l&g

perspective. that is a massive play >> and what do you think about the macro setting here coming into this, we were all talking about how much oil was up although on a 12 month basis, a little bit more even we've talked about how investors were far more optimistic >> and i think it is an interesting story because what we're seeing is the majors go more into the permian. since 2014, investment is going into the short cycle projects. we're really seeing them step up their exposure to the permian. not in the long lead time projects not in the deep water projects so the two questions, first of all, deflate the cost even further. so it will drive down costs to such a level can opec even compete with that. is that an existential challenge for opec you can essentially ever really

put the companies -- >> that is why i'm surprised that the oil price is up on which on the opec supply cuts. between that and venezuela, it is enough to tighten the market to this septembextent >> the question people keep asking is how long are they going to sit down barrels to accommodate shale. and the administer that the majors go in there, the more that they potentially push prices lower, it is a question of when is opec going to have to keep cutting and cutting to make room for these companies and you talk to opec countries and some will say really the day of us doing 2 million to 3 million a day cuts are over. so the question, does opec have to go back to the drawing board. what does saudi arabia >> what does saudi arabia do answer your own question how about this is there a perfect price for oil? because if there is where everybody is kind of happy, it

is about 65 bucks. you can make a little money in the yipd, you can make a lot of money for saudi arabia you can make money around the world. >> the reason why i'm asking about the timing of this deal in particular, this isn't coming at 30 buck oil. it is not like we're back at the levels where there is so much excess capacity that the on him way to be economical is to have that -- >> when this deal crossed, ceo of chevron was on at 6:00 a.m. and first thing i thought, why are all the oil companies always buying when oil is going up. nobody does deals when oil is going down and i can understand the idea that you will increase discounted cash flow i suppose -- >> but isn't it capital availability who is willing to support a deal when oil prices are plunging >> we've just seen a lot of bad deals and i think that

exxonmobil bought xto and it hasn't gone well so maybe on the up side we're seeing deal making and we'll see if occi comes back out with this and why they accepted 10 plus bucks. >> yeah, that is the major stay tuned. guys, thank you both coming up, what will it take to get boeing 737 max planes back in the air? that is being discussed at a meeting with the faa right now and plus the president's big push for 5g, he is set to unveil a $20 billion plan we'll look at who stands to benefit. and tesla is starting to lease the model 3. will that attract more customers. that is ahead. ♪ feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow.

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welcome back here are some of the movers this hour lyft is below 60 bucks a share after uber's ipo filing. lift o lyft now down 20% in the past week grub hub is also sinking grub under pressure after uber revealed that's the revenue was now over a billion dollars

and anthem is the worst performer in the s&p after cautious commentary from jpmorgan the stock erasing all of its yearly gains and now sue herera with the news update >> here is what is happening patrick shanahan welcoming his german counterpart to the pentagon it comes amid tensions between the two nato allies over military spending. >> we are committed to the 2% goal we will reach 1.5% of defensive funding in 2024 amend afterwards we will be moving toward the 2%. i think we know that germany has to do more vladimir putin meeting with the ceo of volkswagen in moscow. he says that the automaker has been working in russia for a long time, making a good profit

and he thanked the company to its large investment in russia a drone hovering over a baseball game in boston last night running afoul of the faa, the operator violating the temporary flight restrictions over large stadium events. the best police department is investigating along with the faa. you're up-to-date. back to you. >> how about that, a red sox fan. >> or not. sue, thanks very much. i'm joined by tyler mathison >> and we'll of course talk about the big deal in the oil patch. and himself disney and their plans for streaming. we have a second helping of tuna we'll talk to him again about disney stock and we'll also haven a announcement from the white house about 5g cellular service. what it could mean it will multiply speeds and

thereby create a lot more potential for services and so forth and the real growth of what is known as the internet of things that is coming up. >> thank you so much here is what is ahead. >> coming up, ten years and still burning cash the details of uber's ipo filing the street thinks the magic is back at disney p&g throws down gauntlet at fabo ceokd e hole in one for golf betting. all ahead in rapid fire.

welcome back let's catch you up it is time for rapid fire. we have dominic chu, less lesli picker and robert frank. can i see a disney shares are surging. disney plus is priced below its main competitors it will be $6.99 a month and 70 bucks a year

only question, i guess is the business model as they move people toward streaming, is this going to be as profitable as espn sub skrish scriberubscribe? >> akd thnd i'm not paid by dis, but sign me up for the one year right off the bat because i consume personally star wars movies and marvel movies i love them. and i have a toddler who is addicted to mickey mouse clubhouse. so for $70 a year, only thing i have to worry about is whether or not i'm giving too much screen time for my child >> and i said it on monday, the empire strikes back, i was really excited about this, i would pay that amount just for the pixar part of it it is amazing the catalog that they have. and everything new as well the challenge is the spending stuff. once disney becomes valued more like netflix, investors don't care. >> and that was what the move

was about. even though they say there will be investment, but they are putting themselves in a netflix kind of world. about. >> and netflix dropped on the news today it was down quite significantly the last time i checked. the cash investment to produce these new show, $1 billion in 2020, up to $2.5 billion in 2024 but i think this is where disney and a larger media conglomerate really has an advantage with this as opposed to a netflix and it is a pure play streaming network. they can't really offset that investment with other areas. it is all about the contents >> and if you thought they couldn't top all of the excitement today, they just released their new star wars trailer, this is for the rise of skywalker it says which it wills theaters this christmas. and i think dom you are the only one of the four of us -- >> yeah, so if i walk offset right now -- >> the prequel to the sequel >> a lot of episodes going on for darn sure.

but i watched every single marvel trailer when it droned. i will tell you as soon as i get off this set, i'm going to see see that trailer >> and it is already written up on the website uber revealed their financials and the company lost $1.8 billion last year the company also says it might never be profitable. still, some are saying that this is even the reason for lyft's further decline. it is below 60 >> absolutely. and what is confusing is the fact that if you look at lyft's financials, theyless about a billion dollars last year in 2018 compared to uber. lost about a billion dollars last year in 2018 compared to uber top line is at a much quicker right. uber has been expanding globally and into different types of

businesses and they have seen it really level off. >> they are a ten-year-old company now. i think that is to be expected in some ways >> it is the lifecycle of the company absolutely which begs the question uber went through 22 rounds of funding. 22 rounds of funding they raised more than $20 billion privately. now finally one could argue this is one of the most hodly tly anticipated ipos because of that >> it is always the names that you know which means that it is too late to get in on the investment. >> and series, what, u >> i think they had to go public because they were running out of letters in the alalphabet. >> and it was at 50% on the ipo, a name nobody knows about. boring, but often the best kind of investment. >> and i love looking at this

when you look at their competitors to you been 00er they are saying we're more diversified than lyft.er they are saying we're more diversified than lyft.uer. they are saying we're more diversified than lyft.you been . they are saying we're more diversified than lyft.uber they are saying we're more diversified than lyft. food delivery, scooter, yes, they are diversified, but they have a much wider group of well entrenchted compete entrenched competitors >> and oftentimes the ones that you really see making those massive moves are the undercovered companies the ones that you don't know that much about. so there are a slew of active stock pickers out there whose job it is to find the pager duties because everyone is paying attention to uber and lyft so check out the one, two, three billion dollar company that will do a crazy lot better. this is a great dynamic right now. >> uber is great for anybody who got involved around a through j, but lately it is getting harder. but we'll see. a may ipo time line.

>> early may i think the 9th is pricing date according to a source. and trading will be the 10th let's talk about tesla which is announcing that it will stop online sales of the $35,000 base version of the model 3 just weeks after introducing it what do you make of this tesla is also announcing some leasing programs >> i think they are trying to boost the price a little bit bhap is mo what is most interesting, they are allowing you to lease it but you can't buy it at the end of lease because they want to save the car for an autonomous driving company. >> what? >> yeah, it becomes their new stealth fleet that they will start building without any of us realizing because it will be people who lease the model and then give it back to the company so then they can change the software to be autonomous and that is uber's next competent are tore >> and tesla shares are under pressure so let's talk about proctor and

gamble which is putting online ad platforms like facebook on notice they have been blasting the industry for fraud life breacpr breaches they want to guarantee safe content saying we've been toll rants t tolerant too long. >> this was only a matter of time.oll tolerant too long. >> this was only a matter of time.ll tolerant too long. >> this was only a matter of time. tolerant too long. >> this was only a matter of time. tolerant too long. >> this was only a matter of time only a matter of time before the companies could you tell up. and the real issue is leverage who has more of it these guys will be holden or we thought to these brand structures and all of these online distribution flplatforms. if block toproctor and gamble sr looking at other alternatives, that is a big deal >> and how many billions are

they willing to mnuchin off tov platforms. >> they have sophisticated data analysts and you don't get that on other areas of -- >> no. all about leverage >> and wsj.com, cnbc.com, do those all count? we'll take them. >> yeah, pay us, we'll put your ads on >> final and he will the masters tournament is papadopoulously a real hole in one for sports betting. it is the most heavily bet golf tournament every year and overall golf betting is stronger than ever because of the recently legalized betting in states like new jersey and pennsylvania >> and it is the most watched golf tournament by far in fact when you look at golf ratings, it is everything excluding masters because the masters is that much more watched than anything else >> but still less watched than they used to be.

>> the issue is golf some say has run into a secular decline you can't grow it fast enough. what is curious about this to me is whether or not the thing that saves golf is more people betting on it. >> that is what all people in live sports are hoping >> for baseball, hoping that for football, for brick kets >> formula 1, you name it. >> and it is all about star power. my brother-in-law justin is a huge fan of golf and he was saying that tiger is healthy, he is playing well and so everybody really wants to -- >> what is the first thing i ask you every time we stand over there? >> what you don't see on camera is kelly goes hey, who is in first place at the masters >> and is it tiger otherwise i don't care has he even teed off >> not yet pretty soon. >> we'll see if betting can save every sport out there. guys, thanks coming up, the trump

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>> the wlohite house is expected to announce new technologies around 5g. joining me now is jonathan chapla chaplain great to have you here welcome. >> thanks, kelly >> so let's start with the telecom players who are all over the match when it comes to 5g. who even has the most 5g spectrum right now, is it sprint or who -- for whom does the auction really matter? >> it depends on who you speak to every carrier will say they are

first in 5g. verizon is the first to roll out a product. they have a hand set oig on tn market it works in a tiny part of chicago as far as i can make out. they have a lot of spectrum that they will roll out over the next couple years sprint is sitting on a phenomenal band of spectrum that is much better than the spectrum that verizon is deploying >> and 5g is a catch all term. so what verizon or at&t has is inferior to what sprint has? >> the standard is the same for all of these companies but which spectrum band they deploy is in makes a huge difference the spectrum that at&t and verizon has is very high frequency spectrum which is great in the middle of manhattan or sfrfran

it won't work out side of very denies markets what sprint has is mid band spectrum which can work almost everywhere it might not be great in monday tab in montana, but everywhere else it will work great. but they have no money to deploy it if the deal with t-mobile goes through, that will put those companies in a phenomenal position if it didn't go through, the spectrum sits on the side lines for the next five years. >> so you think that it would be silly for the government to block the sprint/t-mobile deal because if they will get any scale to compete, they have the spectrum, they just have to be able to deploy it. >> that is exactly right if it is really important to the administration to be first in 5g and have a more robust set of truck infrastructure in the u.s., then they should let the deal go

through. >> and that is the competition that you want. so for the announcement today, which they say is the biggest potential wireless spectrum auction that we've seen, who will be interested in this spectrum and what kind of money are we talking about >> so everyone will be interested it is just not the best spectrum this is a lot more of what verizon has in millimeter wave there is an auction going on right now for 24 gigahertz spectrum that will end at about $2 billion for a whack load of spectrum the next three bands of the s.e.c. will auction in december are very similar it is great that there are largementlargas, but difficult to deploy. >> and you have said the millimeter wave spectrum, qualcomm says this can compete with the best of 5 xwchlt. g. could the technology level the

playing field? >> it,but only in certain arease playing field? >> it,but only in certain areas. in downtown manhattan, chicago, big city, it will be phenomenal. you can deliver speeds as quickly as you can over fiber. but it is not a mass market solution >> and one more question then. so does sprint basically monday oop l monopolize out the good? >> there is great spectrum two bands. the c bands in the hands of satellite companies dying to sell to the carriers and cbrs spectrum, largely unused at the moment waiting for the fcc to take action those are the bands that are being deployed everywhere in the world. at the a they are the best and what the fcc should be focussed on.

>> john thanathajonathan, thank. everyone knows what the faa's next move is for the boeing max planes they are meeting right now to figure that out. ♪

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the faa meeting with the ntab pilots and receipt differen -- represent tips fro >> reporter: kelly, we expect to hear about this meeting at least a statement about what was talked about at this meeting within the next hour take a look at shares of boeing, now, as the faa is meeting with pilot representatives from certain airlines, you're seeing shares of boeing moving higher despite the fact that the full year estimates from wall street, they continue to fall. look another this, how much they've come down since march 14th today, all the way down to 1639 is the expectation for a full year earnings from boeing and shares of southwest. they have announced they'll be pulling the max off the schedule at least through august 4th. we have not heard if united and american are going to change their plans because both of them have the max off the schedule at

least for may 30 or early june a common theme in the 2020 race to the white house and pete buttigieg is joining the fray. xi tt e told john harwood abou tanghe rich and financial institutions and the future of american capitalism. that's next. engineers put the first man on the moon. everyone looked up at the sky, in awe... but if you're an engineer, you look in awe at those men and women in the room. because they did it with technology less powerful than any smartphone. think of that... it's what inspires us all to get there first. i became an engineer because of them. now i'm part of the team at verizon building an incredibly powerful 5g experience for america. we call it 5g ultra wideband. it's wider for ultra-fast speeds and ultra-low lag times. when i think of it... i think of what people might do with it. i think of where people might go with it.

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we're still nearly 10 months out from the iowa caucus but the race for the 2020 democratic nomination for president is heating up our own john harwood sat down with south bend, indiana, mayor pete buttigieg with high frequency and the plans for the presidency. >> we certainly need to consider a higher marginal tax rate for top incomers we should at least admit when it was higher, the american economy was growing pretty well. we should consider a wealth tax. i think it makes sense i think one of the things that's appealing about it is it's not very distortionary compared to an income tax. the least is probably the estate tax, so another thing to think about is turning to a more equitable estate tax for the biggest and wealthiest estates

and find a way to implement it, the devil's in the details, on the financial transaction tax. we see preposterous amounts created about these transactions nobody can explain whether it adds real value to the economy >> even mckenzie >> as far as i know. look, the downside of any tax is it can disincentivize economic activity let's start by taxing economic activity that's value is hardest to prove >> it would raise something on the order of 2.7 trillion over ten years. is that the order of magnitude you're talking about >> probably. i mean, we had something on the order of a trillion dollars robbed from the treasury through the trump tax cuts on the wealthiest so even getting us closer to being able to cover the deficit with the services americans count on today is going to take us filling in a gap of that size if we want to do more and have better infrastructure, which we

absolutely need, if we want to deal with climate change, which is no long eer optional or actually deliver on health care or continue to grow as the kind of country that can actually lead the world, then you can't get something for nothing. >> joining me now is john harwood with bill mead, ceo and chief investment officer at management i want you to react first to the financial transaction tax he's talking about. i think you'd be the kind of guy who doesn't want to hurt not a high frequency trading guy. do you think this tax would help or hurt your business and financial markets? >> well, he is showing an amazing inability to have confidence of free markets to solve their own problems that's the problem with socialism is you kill the whole thing in the process of trying to do your wonder trick. so what will happen is these high frequency people, way too

many of them and computers, they'll just kill themselves off. the beauty is they're automatically taxing themselves and they get burned off through competition. you're just dealing with an animal that doesn't do you any good to kill him and gut him because they're going to kill themselves. >> he mentions the people have preposterous levels of wealth and high frequency total is less than a billion dollars. >> explain the economics of high frequency trading and who profits, but i think what buttigieg is trying to do and remember, a former mckenzie consultant, so knows something about this, he's trying to be rational about what is the kind of economic activity that would be least harmful to tax. he mentioned that. said the devil's in the details. also talked about wealth tax and estate tax and is somebody who

is convinced that the time is now to have a different pattern of taxes and spending to help the great mass of americans not moving ahead in this economy, participate more fully in the prosperity. >> bill, how would you help people participate more fully in prosperity >> you could almost answer the question for me because you've listened to me constantly for the last year to two years the number one way to help middle class people in the united states is to have a big increase in household formation which is absolutely inevitable as the millennials get older here, which causes people, if you are -- >> do you think student loan debt bill is a hurdle to that? how to make it people were more incentivized to create their own household or not worry about it? >> time will heal. we're going to have 30 million more millennials than we had gen

xers 40% minus in the mores he said 25-year-old women that watch their networks are most likely to watch hgtv and 90 day fiance and they're 60% of the college graduates are women, so we're not talking about, we're talking about the most highly educated group of people in the history of the united states of america and their most popular show is hgtv here's -- >> middle class wages have been stagnant since before the millennials were born. >> and home building has been as low the last ten years as it's ever been. john, here's another thing for you. how about, move people around the country to live where it is affordable to have a middle class income and then you'll see people start to flourish get them out of new york and washington, dc and all the places that jeff bezos wants to go to and take them to gary, indiana, indianapolis. >> that's part of the answer, you're right >> i think everybody can agree. >> incentives for that is part

of the answer. >> anecdotally, this is happening with some of my friends. great discussion, appreciate it. thank you for that interview bill smead joining us as well. that does it for "the exchange." i'm going to join tyler and melissa for "power lunch" which begins right now kelly, thank you very much earnings season begins with a bang j.p. morgan surging on record results. is it a green light to keep riding this rally? a mega deal with the oil patch what's fueling the m&a and which others may get hitched in the sector and plus, the future with 5g cellular. the grand plan president trump set to speak about it this hour "power lunch" starts right now welcome to "power lunch. i'm melissa lee. earnings, mega deal and