you get less exposure to the yield curve and they can use their size to tackle the fixed cost. >> let me remind you, we, cnbc are the exclusive broadcast partner of sohn conference get your tickets that does it for us. the exchange starts now. >> a fabulous event it always is thank you, scott i'm tyler mathisen in today for kelly evans. here's what ahead. the nasdaq hitting new highs as qualcomm, apple roll ahead and the retail apocalypse, it's for real. 6,000 stores already have shut their doors so far this year more than all of last year what it means for jobs and malls across america and will pinterest pique interest we're just hours away from pricing and less than 24 hours from trading but we begin with

the markets and dom chu has the numbers. >> there's a pique, but the nasdaq composite is not the overall one. and the dow industrials right now you can to see they're just about flat on the session. the s&p and nasdaq all very slightly in the red. so we have lost a bit of momentum from earlier this morning. check out though what's happening again with the nasdaq 100. that bigger cap part of the nasdaq, this etf tracks it the first time we have hit it since october 1st. the nasdaq 100 are there at record highs and one sector to watch overall, the health care sector why, because it's the only s&p 500 sector out of the 11 that's now negative on a year to date basis. the next worst performer is utilities and they're up 9% so far. back over to you. >> thank you very much. earnings are rolling in for

the first quarter. and yet, there seems to be a warning sign that is emerging in many of those reports and that warning sign is cost pressures and bob pisani has the details >> hello, old friend the companies are continue to report earnings way above expectations look at the numbers, netflix and morgan stanley, they reported way above expectations look at the numbers. analysts cut earnings estimate way back in december when they were all afraid of a global meltdown due to china. and of course, that has not happened so they're beating here's the bad news. a very large disconnect between earnings and revenues this quarter. that's unusual it's a sign that cost pressures are starting to crop up into the system so earnings expected to be down look at this 1.8% this quarter, but revenues up 5% that's odd companies that have reported have cited unfavorable foreign exchange and now many are blaming labor costs, higher raw

material costs and higher transport costs as a problem for the bottom line. we heard that from jb hunt from yesterday. we have heard similar complaints on earnings calls from autozone, costco, and you can hear more about this down the road back to you. >> robert, thank you let's dig into the markets more with craig callahan, founder and president of icon advisers and nancy ten her wealth management. one of the things that you're banking on is a turn or a turn around in china. why do you see it and what is it going to mean for domestic stocks >> thank you, tyler. good to be with you. listen, we have already started to see it due to the massive monetary and fiscal easing as well as regulatory in china. we have been talking about this for about six months where we thought that growth would you surge in the second half of this year we're already starting to see it with improving pmis, consumer

confidence housing. new starts and pricing is going up and we also saw it with the modest gdp beat. so we are hopeful that that will continue to benefit our cyclical overweights and obviously the companies that are most exposed to china and em and that's what we have reflected in our portfolio. >> and so this move will help the likes of whom? name some name. >> some of the chip stocks like we initiated a position in broadcom after the ca deal we have added to texas instruments, apple we initiated in tiffany and starbucks. all exposed from the consumer stand point and the technological standpoint then multinational companies will benefit, we think, as we move forward in the year. >> craig, let's turn to you and what you see for the rest of this year as we move along are you with nancy that china is going to be a help rather than a hindrance here or what >> well, it all starts with

value and we see the market to be about 5% below our estimate of fair value. so we think this rising market can keep going we would expect stocks to be higher by the end of the year. >> which ones -- which categories do you think are going to be the biggest beneficiaries of that overall upward trend where do you see the best values right now? >> going back ten years and in this bull market the leadership has been technology, industrials, and we expect that to continue. and financials also. so it's the same leadership we have had for ten years. >> let's talk, nancy, about some of those stocks that you like. you like the chips to you own qualcomm or not >> no. >> you wish you did today, don't you? >> but i have an outsized position in apple. listen, that was a hard one. i sort of shy away from litigation risk. i cut my teeth on philip morris

decades ago. it's just impossible to predict so kudos to those who did. we have been on the sidelines with qualcomm. >> more aggressive names, nancy, or defensive names for you right now? >> yep, we're overweight some of the same sectors that craig is overweight we are overweight industrials, technology some old tech, some new tech that's a little bit new twist to our story. we are overweight consumer discretionary and energy so we are taking -- we are more risk on in a relative value sort of fashion we think that will be rewarded in the second half of the year. >> craig, regional banks one of the nice areas, right? >> yes they're on sale, we can get them at good prices people think they that can't function in a flat yield curve but they're improving their operating margins, interest margins in the last five years and the earnings in the last five years have grown on average a 5.8%. >> regionals like which in your

portfolios >> well, one having a bad day today, signature bank of new york and also silicon valley bank they're growing pretty rapidly. >> nancy, you own disney and you obviously have been watching what's been happening in the streaming space including what's been going on with netflix and its challenges and more competition coming. talk to me a little bit about that. >> yeah. i thought it was a little glib of management on the interview yesterday, first of all, i'm not a big fan of the interview because it sort of controls the message too much but i do think that you have to pay attention to what happens to industry leaders when strong companies come in and compete. and for example, just look at spotify versus apple music apple music nine years late to the party. started in 2015 now it's the largest streamer of music in the u.s. with 40 million subscribers. i made the switch from spotify

to apple and maybe the market is underestimating how much the competition from disney and the competition from apple will impact netflix at the margin and remember content wise, disney doesn't have to pony up the kind of money that netflix does on a sustainable basis. so we'd like - >> because they already own the content, because they have created a lot of the content they'll be distributing. folks, thank you very much it looks nice down in naples, florida. >> it is. >> sure is it was one of the ugliest corporate battles in history but apple and qualcomm we mentioned it a moment ago have buried the hatchet. so who wins what josh lipton has the answers from san francisco. hey, josh. >> tyler, the agreement dismisses all litigation includes a one-time payment from apple to ualcomm a six year license agreement and a multiyear chip set supply agreement. the value of that one-time payment not disclosed.

neither was the royalty rate per iphone but the ceo steve mollenkopf did talk about the deal. take a listen. >> there's about $2 of additional earnings as a result of this deal broadly when the products begin to ship which is significant obviously for us but remember, they're a big customer and so we're very happy to have an ability to move forward. >> a big customer is right the value of past royalty payments due to qualcomm, analysts say about $7 billion. for apple this deal is also significant though paving the way for a new 5g iphone because qualcomm is the only game in town right now when it comes to the 5g chips back to you. >> where does this leave intel which i think was talking to apple among others about producing a 5g chip? >> yes that's such a fascinating part of this story, because you had apple and qualcomm they come out,s shock the world. then just a few hours intel

comes out and makes some surprising news of its own in saying, listen, we're going to exit the 5g smartphone business. i catch up with chris rolen, he covers intel he says you see bob swan, ceo, signaling to investors he's perfectly willing here to shut down these lower return investments so investors start to think about what about the memory business where they spend money? is he willing to shut those down too and give another boost to the bottom line? i think importantly, you know, intel says we'll get out of the 5g smartphone business but we'll continue to invest in network infrastructure so sort of providing the backbone for 5g and rolen will argue that's really the bread and butter in a higher margin business line. >> all right josh lipton, thank you, from san francisco. here's what else is ahead on "the exchange."

>> coming up, a look at one key issue that could spell trouble for the jobs market. plus,a new report shows th retail apocalypse is picking up steam. we break down the winners and losers bullishness around pinterest is rising as they get set to make their debut this is "the exchange" on cnbc , inventory - ♪ ♪ it needs to track it all, from cincinnati to singapore. ooo! ♪ ♪ and protect it all. customer records, our financials, they better be secured. but i also need easy access, to manage data across my clouds - no matter where it lives. ♪ ♪ so if an auditor shows up, i can be a step ahead. that's the cloud i want. is that to much to ask? expect more from your cloud. ibm cloud. through the at&t network, edge-to-edge intelligence gives you the power to see every

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new data from the national fed rated of independent business shows the problem for small businesses is finding qualified workers and as a result they're left with a record number of job openings they can't find and employees they are forced to train on the job. for more on that and on the overall state of small business let's bring in juanita dugan, the president and ceo of the nifb and kate rogers is here as well let's start with your overall measure of small business happiness or confidence. >> well, we have been doing the optimism index nifb has been putting that out for 45 years and every month. last month it was at 101.8. >> is that a good number >> it's a good number. pretty much since the election of 2016 the optimism index has been shooting through the roof and bouncing around in a band of high historical numbers.

>> a little lower than last summer but still high. >> but still historically high and it's not going to come down any time soon. >> let's turn to the question of finding workers. and they are struggling. they cite it as their number one challenge operationally. what does this tell you? >> well, this is the tightest labor market in 45 years within the optimism index there are several factors and finding qualified labor and the question of having no qualified applicants, no applicants, not just qualified, but no applicants has been going through the roof. >> one of the things they have had to do, kate, i gather, is take people who have no -- very little experience and they have lowered the qualifications that they're requiring to fill those jobs >> especially for those higher skill positions. some of the businesses surveyed by the nifb said they're willing to lower the things they're looking for in candidates. lower the qualifications in order to fill the roles. they're doing more on the job

training which i think is really interesting and also kind of a benefit in this tight of a labor market right now it's an employees market we do this series, help wanted on jobs friday and we talk to businesses big and small and basically in this kind of a labor market there are opportunities for workers to find the jobs. one of the things you're seeing is upskilling. training workers that you have and it makes them feel good because you're showing them you want to be part of the business and i know they're paying more to hang on to workers in this tight of a labor market too. >> last month -- well over the last two years we had some compensation records last year it was job creation was the big record this month, there was a record for retention. so the fewest number of separations so that tells you -- >> but if you have -- in you're retaining more, right, that's -- you're paying more, right? you're having to train more. >> yes. >> right that means you're spending more if you're a small business

what is doing to their cost structures and margins >> the good news is on monday, everybody filed for their taxes for 2018 and small businesses it was the first time under it, there was a small business deduction and they were taking advantage of that deduction for the first time i'm hearing from nifb members that she have saved money. we had a member that said that small business deduction literally saved his business they're using money to raise wages and to train some are reinstating health benefits where they weren't able to do that because the premiums became so high over the last few years. >> the labor cost definitely are an issue they were at a record high last month and one thing that i was chatting with juanita is about, would it be higher if they could

find the people to fill the roles. >> at the entry level they don't have particular skills that they need, right? >> well, the small businesses are not looking for that much of a formal education and particularly the entry level jobs that's why this on the job training is so important that's what they do. one of the biggest problems they have though is -- given the amount of time it takes to train a worker it's not necessarily the money, but the time they use the time, the employers' time -- >> it's a human resource cost. not just -- >> they have trouble keeping that worker. a worker will leave after having -- had this experience -- all of this job experience and it was time-consuming for the owner. >> this is a random question i don't know what the composition of the nifb is are they mostly service businesses, retails? >> we are in every sector. they have membership from manufacturing to financial services to health. >> what's the biggest sector >> well, agriculture, a lot of

retail and restaurants but doctor's practices, lawyers. construction manufacturing. agriculture. everything in between. >> all right thanks. >> thank you for having me. >> kate, great to have you coming up the second biggest day of declines with policy in limbo. where does the sector go from here plus, using artificial intelligence to make better basketball shooters. not there. that was the side of the backboard that mr. chemi just hit. keoue's an app that can claim to ma y a better shooter, so did it work for him? you be the judge we'll be right back. ♪ rub-a-dub ducky... and then...there's national car rental. at national, i'm in total control. i can just skip the counter and choose any car in the aisle i like. so i can rent fast without getting a hair out of place. heeeeey. hey!

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welcome back to "the exchange." the dow may be flat, but morgan stanley is higher that company reported better than expected results in wealth management and fixed income trading that's why that stock is up more than a dollar csx jumping after it beat eps estimates by 11 cents. results helped by lower labor and fuel costs that stock up more than 4% and pepsi also higher after it reported organic sales rose by more than 5% the fastest growth rate in more than three years and canon falls sharply on they're expected to slash their outlook amid weakening demand for digital cameras.

down 1.5%. let's go to contessa brewer for a news update. >> hi, tyler 18-year-old sol pais has been found dead the fbi tweeted there's no longer a possible threat to colorado schools from the woman who was allegedly obsessed with the columbine shooting she flew to colorado monday night, bought a pump action shotgun and ammunition. house speaker nancy pelosi told the irish parliament she won't agree to a u.s. trade deal with britain that threatens peace. she re-affirmed a message of u.s. solidarity with ireland. >> america will continue to stand with you and protecting the peace that the good friday accords have realized. i have said it before and i'll say it again we must ensure that nothing happens in the brexit discussions that imperils the good friday accord a meteor soaring over

washington, d.c. was captured on video. you can see it was floating through the night sky. the american meteor society had 325 reports come in from washington and 11 neighboring states sharp eyes on somebody right there. >> whoa. that's cool. >> right. >> that is really cool at i love that >> i probably wouldn't notice that. >> a car cam there good all right, contessa, thanks. fantastic. all right. if you like to play basketball but feel like your shooting skills could use some improvement there's an app for that our eric chemi put it to the test. >> it's game changing technology that's turning amateur basketball players into the next sharp shooter. home court is an app that uses high court machine learning to improve shooting >> 49 degrees. >> reporter: available at a free and subscription model it tracks the launch angle, leg angle, vertical and reaction time using

just an iphone no sensors no high-tech equipment necessary. >> today you run you're using your apple watch or run app or you can track all of the miles and stuff. but for basketball that didn't exist. so the first problem is we wanted in software, how do we help people easily track their shots without having to do that manual work? >> reporter: home court has backing by jeremy lin and mark cuban. it's a top ten downloaded sports app in the apple store it has teams using it including joe harris of the brooklyn nets. who this year led the nba in three-point shooting and won the three-point shoot-out. >> okay. i feel good. i did play center on my sixth grade basketball team. joe and i went head to head to test it out. i bricked the first one. >> joe's arc is flatter than mine and his reaction time is much quicker than mine. >> you're 420, 20%. >> i didn't even stand in the

right spot the whole time too. >> reporter: notice how consistent joe's shots are every shot are tracked the same. mine were all over the place >> we're in the age of analytics and technology any time you can put that to use just to help you out you improve, get better. i'm all for it. >> reporter: joe plans to use home court at the youth basketball camp this summer. as for me i need a lot more practice oh, that backboard is really getting in the way. >> how many did you make >> i was 20% we did 40 shots -- >> that's not bad. >> but the idea is if i keep working on this i would get better over time there's a sixth grade girl who has done over a thousand shots of her for a year and she's made a hundred in a row. >> so one of the greatest uva grads in history his had -- >> he had the appropriate arc mine so much more.

the lines that were put, they were ai driven lines from the app. they were all over the place one was like this, like that his you can do 20 shots in a row and his arc would look exactly the same every shot was the same. >> consistent. that's how it would be used as a teaching tool. >> they said, you had too much arc, bring it down i'm taking too long. i would catch it and wind up and he'd catch and shoot he was doing twice as many shots. >> our producer pointed out this would be a wonderful app for swinging at a baseball throwing a football. >> that's what we talked about this is the first problem they wanted to solve, all the repetitive sports tasks you can use. think of driverless cars you have a camera, you can figure out what's a person, a ball, a path so there's more applications here than just sports. >> thanks. >> you got it. we have a news alert out of los angeles. and julia boorstin has the

details. >> hey, tyler. the writer's guild is seeing the big talent agencies, alleging unfair competition under the california law this comes after a protracted battle and after the guild encouraged the writers to fire the agents over the weekend and it escalates this battle over how deals are made in hollywood. the writers saying that the agencies' packaging fees, along with the director and the other talent are a conflict of interest we have reach odd out to the agencies and no comment back from them yet. >> thank you very much he's what's coming up on "the exchange. >> ahead -- investors are pinning their hopes on pinterest. ibm goes back in time with their earnings and taking the game of video at a cinups. th'sllomg in "rapid fire." ♪

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ipo rush, pints rest and zoom hit the street. analysis outlook pricing what investors should know before the opening bell. "squawk box". negotiators from the u.s. and china are in talks over future in person negotiating rounds as the two countries near the end of trade talks which the treasury secretary said was

entering its final stage "the wall street journal" is reporting that the u.s. trade representative lighthizer is set to travel to beijing the week of april 29th followed by a trip by the chinese envoy back to washington the week of may 5th the journal reported that a deal could be signed as soon as late may or early june. now, this lines up with what we have been reporting here on cnbc earlier this morning, we told you that our sources said that one potential date that china was looking at for a potential summit is at the end of may where the president is expected to greet the incoming emperor who will be crowned and will ascend to the throne on may 1st. china is looking at that travel as one potential opportunity to get the president to stop over there. but "the wall street journal" also reporting that late may/early june is the time window for a potential deal or the signed. >> very interesting. thank you very much. let's catch you up on a few

stories that could be on your radar. time for "rapid fire." here with their take, leslie picker, dominic chu, and contessa brewer. this is like introducing game show contestants >> it is ful. >> "jeopardy!" >> "the price is right." >> 27-year-old - >> that botox is holding up well. >> let's talk about pinterest, they have a price later on today. >> later on today. >> there was a range of 15 to $17. is that where it is or going higher >> i'm told that demand is strong for this deal, tyler. they are talking about pricing it at 18, $19, potentially as high as $20 though rarely that you see a price $3 above the range. people like where this thing is going. yeah. >> and there's a dearth of stock out there so people are hot for it. >> yep. >> this is good obviously for the bankers, right >> definitely. >> this is good for the owners,

the company. because they raise more capital. but the worry as always is what happens after it goes public and does it do a lift? >> exactly that's the key question here a recent university of florida study looked at, you know, how the first day of trading really impacts the stock over the long run. by and large, on average it doesn't have much in the way of a predictive tendency. if it goes up on first day of trading six months out, could go up or down no clear correlation there but if you have an anomalies that it goes up or down drastically, usually in the next six months it is trading lower than where it was on that ipo. >> the history says that they end up lower, right? >> they do but here's the thing. what's curious is the paradigm shift around whether or not the investors still appreciate the dual clash air for stocks. with lyft it was an issue. with uber it was an issue until a year ago and now they're

taking steps to kind of equalize the field for all shareholders involved if you invest in the ipos but don't go give people voting rights, first of all, the new ones will never get in the s&p because they have changed the structure for which they include assets in there. so investors apparently still demand it. we saw with lyft it kind of just fizzled. >> with pinterest they have a sunset provision which says seven years from now, they're going to actually dismantle their dual class share structure, so maybe in seven years we can - >> maybe in one of the indexes. >> let's go from new tech to old tech, ibm falling after it reported the third consecutive quarter of revenue declines. the stock is up this year, but down 26% over the past five years. is it back to the bad old days for ibm? >> remember when they had the streak of 22 consecutive quarters of annualized revenue declines that ended in 2017 but look, they had some tough

comps. when you look at their renew from z hardware, they had tough comps. they had all of the companies upgraded to mainframe technologies last year that's a tough business to get over they have changed the way that they have reported but it looks like they're still struggling with their cloud it's the wave of the future for these tech companies >> they had that streak of 20 some quarters in a row now in the - >> then they snapped it. >> they did. they did. >> i think this is the third in a row where they have had negative growth. >> so this is very much about jenny rometty, her vision. that's no excuse right now for ibm. this is very much rometty's company. she's put a lot of eggs in the baskets with regards to the growth initiatives cloud is part of that story. artificial intelligence, super computing, all part of that narrative that ibm wants to put in there they're using it to drive that next level of usage or utility for human kind you can say

but there still hasn't been a premium that the street is willing to put on some of the initiatives until they can show some kind of revenue growth and then profitability on top of that. >> they have stiff competition from existing cloud services i mean - >> that's just in the cloud. forget about like super computing. >> let's move on to another big tech company, microsoft. which has launched a cheaper version of the xbox 1-s. it will be the first gaming console that won't have a disk drive. the games will be accessed, downloaded and backed up online. is this the end of the disk and what does this mean for companies that have sold those disk based games like gamestop >> it's a long time coming look at the way that media has gone, when is the last time that anyone put a cd in your car or anywhere else? everything is downloaded, everything is cloud based so this was the eventual evolution of what video game is supposed to be like but this idea will have a ripple effect across other parts of the market gamestop is one of the ultimate

perhaps victim - >> become blockbuster? >> they're the ones who resell used games, they have a robust business doing that. but that whole shift is taking that away. gamestop remember used to be a mix of at&t retail wireless stores, they got rid of that store. that stock has lost half the value since the highs back in the summer. >> it will be interesting to hear what microsoft has to say about project x cloud, the game streaming service to offer it will be a state of the art global game streaming technology in the cloud it sounds like they're getting a start on that by doing away with the disk player. my question is, if you're a gamer who's bought the games are you going to buy an xbox that no longer has - >> a disk that you can use -- so you can't use your old games >> right you have to have a legacy -- >> a player. >> yeah. got to have the components do you like chocolate? >> no. >> i'm guessing none of you do godiva is spreading out beyond the candy aisle and going into the cafe business.

courtney ragan is at one of the cafes. she is joining us for a "rapid fire" drop-in. >> hey, we're at the godiva cafe, one of 2,000 around the world. this one officially opens tomorrow so we got a bit of a sneak peek of course they're selling chocolate, but they're selling the new things called quafls this has chocolate on the inside it's part of the ceo's plan to expand like you mentioned beyond that premium chocolate gifting aisle. they think that over the course of five years, cafes could represent 40% of godiva's revenue. and they already exist in 105 countries, 800 retail locations. this is a whole new silo of the business. >> the cafes exist in more than a hundred countries now? >> no, where godiva sells, there's 105 countries and 800

retail locations so they want to build out the cafes. >> are we overcafed? >> i don't know. >> i go to the local mall, my local mall was one of the outlets and they serve great ice cream. so every time i stop there, my daughter wants to get a little bit of ice cream so these things, they have a brand name they have a way to capitalize on it. >> they have a brand name, but godiva is a premium brand name during christmastime, my dad would get massive boxes of godiva. >> the gold boxes. >> oftentimes if you expand so quickly you risk diluting the aspect of your brand. >> they do hope to continue to sell the gifting items so they are hoping it creates more of a halo effect. >> bring some home caffeine and sugar

the two staples. a professional sports gambler has brought his total winnings on "jeopardy!" over half a million dollars he's going for the record for the highest records. jennings holds it with over $2.5 million this guy - >> i get butterflies every time a daily double comes up. >> he's the tiger woods of game shows. >> but for whatever reason, when you put like that kind of money -- oh, my gosh, how could you risk like $30,000? >> he's like all in. you can tell he's a professional gambler. here's all my chips. >> did you see the answer he got to get to this position? >> time change in crimea >> what was the place that moved its clock two hours ahead in 2014 to align its time with moscow the answer was crimea.

>> he won a lot of money. >> i mean -- >> you have to think that "jeopardy!'s" insurers are biting their lips because he's on pace to make $16 million a year if he keeps going the second thing is what does this tell the casinos in las vegas? this guy is a professional gambler, he's a professional sports gambler what does it tell them about his ability to retain knowledge and statistics and to forecast that out? >> but that's one thing trivia though requires knowledge. that's the thing that casinos can bank on. at least those are games of chance without having to say, you have to bet on i know something or not. >> the games of probability. i used to play along with "jeopardy!" but it's gotten a lot harder double "jeopardy!" >> yeah. >> no way. good-bye, 30 grand. >> thank you. coming up, hyundai is going deeper into the booming suv market as consumer demand continues to grow.

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new york international auto show under way i used to take my son every year it was a blast phil lebeau is there and joins us for the first interview with hyundai's ceo brian smith. >> tyler says he brings his son to the show, this is the kind of car that a teenager or a young adultwould look at and say, this is an suv but it's pretty darn small. >> you're right,it is. it's pretty darn small but it's perfect entry level vehicle for someone who might have in the past only had sedans to choose from so we now have a full suv offering at that entry point. >> you're going to bring this in under the kona in terms of pricing. we're looking at sub $20,000 on the base. >> absolutely. in fact, as the vehicles move up in trim levels, venue is always

going to be a little bit under kona we'll keep separation that way. >> you mentioned the sedan buyer. who are you targeting, you mentioned used car drivers who might be interested. why? >> there's many used car buyers who are only used car buyers and half of them thought about buying new first for whatever reason wound up buying new we'll give them a chance to get into a new car. >> is it because of price and affordability? >> it could be related to credit and what makes them buying power not as strong as it might be but we think we can get them in. >> this brings up the discussion of affordability overall you and i were talking before the commercial break the average car payment right now is more than $520 a month. have we hit a limit on that as an industry? >> well, i think so. you know, we're starting to see a number of factors that are tempering that i don't think that will continue to grow. things like more vehicles coming

to market like venue, we're going to keep that more affordable but you know other things like extending terms on loans, et cetera, have kind of hit a peak. i don't think we'll see that continue to grow. >> okay, if we have hit a peak there, what do you say about this pickup truck market i know you're not in that market but the prices keep moving higher and the question is, who is being pushed out as prices go higher >> that's a really good question on the pickup side and i wish i could give you a good answer but we're finding all of our vehicles are offering broader ranges of both performance, different engines, power trains. you know, we're going to have -- we offer internal combustion and hybrid electric and fuel cell now. instead of just continuing to push prices up, people are going to see ways to go sideways >> brian smith, the coo of hyundai of america tyler, i didn't think that i would see an suv coming in under $20,000 but that's what they're going to be putting the venue at it goes on sale later on this

year. >> thank you very much mr. smith, thank you as well coming up, the politics of health care. policy limbo, sending the sector lower for the second straight day. now it is negative for the year. eat ave more on that straigh ahd. le muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade.

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welcome back, everybody. it's another big day of declines for the health care center we are live with more. >> hi. we are seeing broad declines the s&p 500 health care sector is negative for the year in correction territory down more than 10% from the october high we're seeing it broadly. b biotech is down. health insurers are negative for the first year in about nine getting pressure on the right from the administration's proposals to eliminate drug rebatr rebates. bernie sanders tweets after the earnings call today saying look,

my plan will have no co-pays and these guys are greedy. united hitting a fresh low today. citi and barclays, health insurers have disconnected from fundamentals we've seen this movie before in the election cycle in 2016 biotechs were sold off, everybody thinking drug makers will never be able to charge anything for drugs >> fundamentals, in other words, are very strong for these companies but it's the looming cloud that may never produce a drop of rain that they're worried about? >> it may never, but there are certainly a lot of head winds. health care is front of mind with voters. and you are seeing some bipartisan workmanship when it comes to the rebates,

that's going to be an issue. hospitals are getting sold off along with this as well. no one knows whether they'd be losers under medicare for all. one analyst saying we don't know the details here >> right thank you. i appreciate it. bertha at nasdaq a new report out says retail could be in big trouble. a look at why and whheetr the fears could be overblown the exchange returns in two minutes. ♪

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a new study finds that nearly 6,000 stores have already announced they are closing this year surpassing the number in all of 2018. it's only april. let's bring in january niffin. a cnbc contributor and retail reporter lauren hersh. a lot of your predictions have come true. was 2018 a year where that was the outlier here where store closings were lower than trend 2017 was high. '18 not so many. now we're back

>> i came on here in 2014 and said it was going to happen. we talked about it we're seeing the straight trend. 2018 was the outlier it was an outlier for a simple reason the consumer was about as healthy as they've been since '08. they did fun things. they bought things they wanted to buy as opposed to things you buy every day online it looked like they were closing the gap between on store and online buying. we're going to have a good year, but it's not going to be as healthy as it was last year for the consumer and we're going to see the trend run right back toward online. and we're going to see from that from now to 2030 that was my prediction in 2014 >> when you get a bump up like this, sometimes it's explained by a particular store or chain like payless or sears cutting a lot of stores.

is this deeper than the individual problems of those guys >> it is this is just the general trend of moving away every retailer that you talk to now, even successful ones like walmart, they'll say if we had this to do over, we'd make the stores smaller so it's -- the trend is there. and so anybody that's struggling, that's highly levered or not making money, they're going to go first. but everybody is moving away from the store-based this is not a temporary thing. >> lauren, january makes the case a lot of malls are going to go away. already many of them have. you can drive around the country and see lots of them that have shuttered. lots of malls are trying to reinvent themselves by making them more experiencing. >> that doesn't solve the problem. the majority of these store closings, if you look through the numbers are pay less,

retailers that have gone through bankruptcy once and are going through it again they are chapter 22. they tend to be in the weaker malls. you add in a trampoline park, that's not going to make you come to the mall if they're not coming anyway. it's helpful, but you need the mall to be in a good geography it needs to be probably in a higher income environment. and more urban because we're seeing more people move out of suburb ra. suburban destination isn't what it used to be. >> they're bringing in gyms, restaurants, things like that to make them a destination more than just a shopping location. >> it's great and fun and exciting, but it's not all going to work. we'll see some work, some not. >> we'll leave it there. january, thank you as well that does it for "the exchange". i'm going to join power lunch in just a minute which begins right now. all right. welcome to "power lunch" we have contessa, tyler, and

also joining in a few moments, let's get a check on the markets. we're a few moments away from a big announcement the dow industrial is just about flat the s&p 500 off by about six points and the nasdaq composite off. the fed page book is out steve liesman has the details. >> reporting slight to moderate pace of growth there's a faintest bit of inflation. there was similar growth as the last report. for most but some did see strengthening. consumer spending was mixed with sluggish sales for retailers and autos. contacts in many districts noted trade related uncertainties and about as many mentions, 28 employment continued to increase and the majority of districts say there was a shortage in high skilled jobs that was all over with continued wage pressure.