>> amarin. tough to buy ahead of earnings but i'm willing to do it amrn. >> john talked about disney. i love disney, own the stock continue to think this goes higher. >> that does it for us "the exchange" with kelly evans starts now >> thank you, scott. hi, everybody. and here is what's ahead where to buy now so far this year, roughly half of the stocks in the s&p are up 20% or more. only 43 of that entire index are actually lower we'll look at where you can still find value in this market. and in energy, bidding war what makes anadarko the hottest asset in the sector and what other names could be in play and why you shouldn't hold your breath for cheaper lululemon pants and how to spend golden years at the golden arches all in rapid fire but begin with the markets and dom chu has the numbers. >> if you go to lululemon's web site, there's a we made too much

that they put the pants on discount we'll talk about that more but it's right across the board, not by much. i'll put a star over here by the nasdaq composite why? it is the, one of these three major indices that got to record highs as it sometimes does 81.39, on the nasdaq and record interday for the nasdaq first among these new major indices. two stocks to keep an eye on and both dow components but both of them are telling stories that investors want to hear boeing up about a percent and the company reported earnings and sales largely in line with expectations, but a purchase program and it does say that it's going to withdraw the full year outlook because of uncertainty with the 737 max groundings, but again, remember, 15%, still away from the highs we saw in boeing and one other stock to watch also a dow component but shares of caterpillar up about 2.5%

worst levels of the day. this company, construction equipment, some concerns from company management about losing perhaps a little bit of market share, and sending those shares low er and still up by december, about 19% since those december 24th lows. cat and boeing two stocks to watch. >> welcome to "the exchange," everyone i'm kelly evans. and here's what's happening at this hour. president trump is saying things are going well with china trade talks and touting the u.s. economy. disney hitting an all time high as the latest avengers movie will break opening day records in china and expected to set a new record here in the u.s and tech is the best performing sector since the christmas lows. semiconductors in particular outperforming up more than 46% from then. let's drill down some more on these markets with bob pisani down at the new york stock exchange hi, bob. >> reporter: hello, kelly. i'm glad you mentioned semis they're key to the stock market rally continuing

they're a global commodity and particularly important to chinese and the american economy. the rally off of the december lows is all about the bottoming questioning and semiconductors are related to this. first, are earnings bottoming? they are indeed stabilizing and likely avoid a negative earnings for the s&p 500. second is china and europe bottoming? the answer for the moment is yes, that's controversial, but yes for the moment, that alone with accommodative strae centra. the bottoming question is still relative semiconductor ceo last year believed they were at the bottom but texas instruments say weakness may continue for another quarter or so. which is it? kelly, that's where the debate is, but again, it's all around whether we're bottoming or not back to you. >> thank you so much bob pisani stocks are notching new highs again as the market nearly completed now its rebound from last year's steep sell-off

anything left to buy let me bring in jeff, chief investment strategist at wealth advisers and kenny, to dive into this welcome to you both. first of all, i mean, it's extraordinary that we've now come back basically to the highs. what do you make just of the speed and the pace and the consistency of the rebounds? >> i think a couple of things there. it tells you that the frustration or nervousness that we experienced at the end of the year was overblown because we've sold up so violently but made it back in a v shape pattern. kind of methodically and in my sense, it took longer to get back and better than the way we sold off that speaks to kind of the psyche, people being cautious or a little bit conscious of the future. >> what's true, all through this rally, going back ten years now, the sell-offs have been vicious but so have the rebounds you've had to act almost with lightning speed to catch this stuff at the lows.

>> that's true if you try to pick the low but after what happened in december, people were so nervous that a lot of people kind of step back for a minute waiting they didn't know if it was going to rally and get killed again or not and in fact, it hasn't and now busting new highs which is really kind of amazing but i think that goes to the story, right? what we're hearing in the u.s. economy is good, robust. seeing china turn around a theme we're playing on and we're starting to see that >> let's talk about, jeff, where you still see value in the market you have a bunch of names. >> i do. and, you know, i would agree that things were just overly pessimistic and we like to say that it's a market of stocks, not a stock market and we find that the individual stock level, ample number of names that are still very attractive with good fundamentals and we find them in the more cyclical areas of the market, so consumer

discretionary. just mentioned semiconductors. a couple of that area and then industrials as well. so they were -- >> feel free to list specifics i see names like fedex and best buy, is that right >> yeah, absolutely. in the area, i would mention on, you mentioned in industrials i think fedex is a great example and then in consumer discretionary, we have names like leer who's an au auto suppliers and if you look at the semis for example on trading 12 times earnings, it's well positioned with chips and power of management, imaging and sensors and they're tethered to very high growth areas, such as advanced driver assistance system, 5g and industrial imaging. so very good growth. >> one area, jeff, i don't see a lot of names although, fire eye may be a pick

of yours, technology, the leader we talked about and i understand what you've said with semiconductor names but like the big cap tech names are there places in that market where you see value or because this has been leadership, are they all getting fully priced now? >> well, they aren't as attractive as they were in december, certainly. we still have positions in names like google and apple certainly but what we find the outsized opportunity would be in names like i just mentioned, fire eyes, a wonderful example you just mentioned cyber security, the first responder, the go to company where you hear breaches about companies like target and equifax, they're the first call which gives them a great opportunity to sell general m l malware. we're looking outside of those names for greater upside potential at this point. >> as i said, there's a lot of

names on the list that jeff just gave us. so people are looking at this and going, wait a minute, we're already back to all time highs i don't want to get into these levels people have been saying that for ten years. >> and that could be a mistake i said it and jeff said it too cyclicals is a place to look at. especially if you think that china is going to power this second half of the rally which we think it is and so cyclicals are big names with us. you saw some great growth rates in some of the names that have been reporting, right, coca-cola, kimberly clark, all reported 5%, 6%, 7% growth rate. all solid and names in that realm. >> great guys, thanks, really appreciate it the granularity. let's talk about shares of facebook now they are down nearly 1% and their earnings come after the bell today user growth remains in focus, amid all the privacy concerns. let's go to julia boorstin, got key metrics to watch this afternoon for us hey, julia >> reporter: hey, kelly. twitter and snap both grew their

daily active users faster than expected but have to see if overall social app engagement on the rise or whether those companies are eating into facebook's growth. facebook user numbers under scrutiny key numbers to watch daily active users projected to inch up to 1.55 billion and see how much facebook can grow, usage of overall family of apps, 2.7 billion monthly users and expected to be around $15 billion. but revenue growth is expected to decline to its slowest pace since the company went public to 25%. we'll have to see how that number impacts average revenue per user with so much talk about facebook's investments to protect user data and the security of the platform, we'll have to see if ceo mark zuckerberg updates on the cost of the investments and how much they'll weigh on facebook's bottom line. >> it's been an interesting week for the social media names twitter did quite well off of its earnings and then you had

the reversal in snap over the last 24 hours. up something like 11% to be down around 5% in the session today what's the main concern there? >> well, i think when we saw snap shares decline, now up more than 5%, the real issue here seems to be analysts takes longer for the company to become profitable snap did beat on the top and bottom line, also delivered faster user growth than kpchtexd but warned for the second quarter, its costs higher than expected ceo evan spiegel laying out how they're investing for the long-term and that means it's going to cost them up front. it's going to cost them to invest more in the platform and whether it's content or games or lenses so he said it's worth it over the long-term but investors are weighing how long it's going to cost for the company to become profitable. >> again, one ocht mof the more stunning reversals we've seen. julia boorstin here's what else is coming up today on "the exchange."

>> ahead, will the battle for anadarko start an energy bidding war in the sector? and if so, who wins? plus, former fdic chair sheila bear said there's no such thing as free college. and why lululemon ceo says high prices are here to stay and why deodorant may be the next big market. >> this is "the exchange" on this is "the exchange" on cnbc thislet's develop apps on cnbc that help save lives. let's make open source software the standard. let's create new plastics that are highly recyclable. it's going to tput from e. so let's do it all, together. ♪ ♪ let's expect more from technology. let's put smart to work.

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welcome back to "the exchange." keep an eye with shares of goldman sachs, with the dow, moved towards session lows, bounced right above there right now on the heels of some ft headlines, saying that internally, justice department officials and staff recommend a settlement with goldman sachs with regard to its role or alleged role in the 1 md malaysia finance scandal involved some kind of a guilty plea at the institution level at goldman sachs. it's maintained that senior management was not aware of anything that happened, so kelly, we'll keep an eye on the headlines. back to you. >> shares down 1.5%. thank you. a bidding war under way in the energy sector. occidental petroleum with the $76 share bid for anadarko, ten biggest energy deals of all time days after anadarko said it was

selling itself to chevron in a deal equal to $65 a share. the ceo sitting down exclusively to explain why she thinks they are the better bidder. >> we are the right acquirer for anadarko petroleum because we can get the most of the shale. we have more experience and performing really well and what hasn't been talked about very much is the upside in the deal is the shell play. >> how is this drama playing out in shale region? joining me to talk about now, jordan bloom, senior reporter. welcome. >> how are you doing great to be here >> great to talk to you and tell us a little bit about the culture of the companies and whether, from your reporting and knowledge and the history down there, does it make sense for anadarko to go to occidental instead of to chevron and why do you think they picked the chevron deal in the first place? >> well, it's tough to say whether it's a great fit for

occidental and anadarko. they both fit well with the great west texas race that's going on right now but overall, it might be a little bit of a tougher fit, you know, occidental hasn't been in the deep water gulf of mexico since the beginning of the century. occidental doesn't have the liquefied natural gas experience and all that would becoming along with anadarko. chevron has that gulf of mexico that lng, the big integrated giant. so on paper, it would seem to be a little bit of a better fit and it's really just shocking to see this kind of bidding war in general, and something that the emp sector hasn't been this century, really. we've known occidental was involved in this possibly for a couple of weeks now. now it's becoming public, stepping up in a bigger way. >> it's unusual to be a superior offer, from a fiduciary point of view to maximize shareholder value, if one bidder says we pay

you $76, the other is $65. you have to make a pretty strong case that the lower offer is worth the higher potential stock upside i would assume so the numbers here are kind of interesting on the one hand and the other hand, jordan, i'm curious, is anadarko such an extraordinary asset as we just heard the ceo of occidental describe and if so, why haven't they traded higher than they are now? >> well, if you're a believer in the permian, you'd say it's worth it but there's anna edwar edwards. there's been an argument that it's hard to fund independently. a huge multibillion dollar project that it's questionably weights down the stock and in general, a lot of questions about emps being down valued on the stock market of late >> right

you think it's going to be tough for occidental with the higher price offer here to be able to top the chevron bid? >> it's cliche to say, but it is a bit of a david versus goliath. occidental ceo vicky is alabama graduate and alabama is a huge football powerhouse, but they wouldn't stand a chance with the new england patriots and that's what we're looking at here unless chevron forfeits or steps away, it's hard to imagine them really outbidding chevron. if chevron decides to keep upping the ante, so to speak >> good to get your perspective. appreciate it. >> thank you senior energy reporter with the houston chronicle. coming up, it is supposed to boost productivity but open concept offices may actually have the opposite effect is it time to bring back the cubic cubicle? that's ahead and sheila bear says there's no such thing as free college this contrary to what several presidential candidates are proposing. miss bear joins us next with what she thinks can be done to

lower student debt stay with us

welcome back to "the exchange." here are some of the movers this hour ebay is up more than 4% following a beat on the top and bottom lines in the earnings report the company also raised profit and revenue outlook for the full year amid a rise in active buyers shares, as i said, up nearly 5% now. at&t down on a revenue miss due

to lower than expected sales and warner media, the company also saw a shaortfall to draw in customers. at&t shares down 4.5% today. shares of irobot i have a roomba but don't use it anymore. maybe that's the problem, down 24%. the company did raise full year earnings forecast but investors are shrugging that off this hour now to courtney reagan for a cnbc news update. >> our floors are clean. i use ours all the time. president trump blasting oversight probes by house democrats saying his administration will fight all subpoenas. he told reporters that democrats are going after what he calls non-sense to damage 2020 reelection prospects >> the subpoena is ridiculous. we have been, i have been the most transparent president and administration in the history of our country by far we just went through the mueller

witch hunt where you had really, 18 angry democrats that hate president trump. >> iranian foreign minister said there will be consequences if it tries to stop iran from exporting through the strait of h hormuz a mission to build ties between asia and the west. mcdonald's is partnering with aarp in an effort to higher older employees for everything from morning shifts to management roles hoping to fill 250,000 jobs nationwide this summer cnbc news update at this hour. >> more on that in just a couple of minutes we'll see you for that, courtney u.s. student debt now stands at more than a trillion and a half dollars outstanding policy makers proposed a ton of different ways the fight this growing problem. senator elizabeth warren's to forgive up to $50,000 in debt for millions of americans but my next guest, take a different

approach sheila and member of the cnbc financial wellness advisory counsel. tell me, what is the sheila bear solution to this >> i like a lot of elizabeth warren's solutions i think there are different ways to go about this but the fact she's made it front and center and debt forgiveness, which will have a significant effect to the economy. >> just wiping off the debt is the way forward? >> we need to worry about it starting up again, so i think one area where i think we should also focus is prospectively, people getting in. she's proposing free public college which would expand access for at least free tuition but still have room and board. >> by the way, free college, benefits a lot of, if you say, oh, college is free now, well, a lot of people who go to college are already better off than the rest of the population. >> those are all fair points on the other hand, a college degree is so important to

navigate the economy and be successful as do i i think different ways to do it. one thing i like called income share where basically instead of using debt to finance college, you use a contract with the student that they just pay a small affordable percentage of their income over a certain period of years and then they're done no principle, no interest. right now, they have what's called income contingent repayment plans but still debt and if your payment is too low, it's a big and if you do get debt forgiveness and elizabeth would like to get rid of some of those complexities as well but i think, you know, she's right we need to do something dramatic this debt overhang is a big drag on the economy >> i can understand. if people say going forward, you know, come one solutions, but more and more, this is reminding me of the housing crisis in the early 2000s when everyone was saying, there's no way the prices can keep going up and when all the borrowers realized,

first of all, the value is not there. second of all, if everyone stops paying en masse, it's very difficult to stop, there's a huge moral hazard problem. the default numbers are extraordinary. >> frightening >> it's ironic so you have basically the federal government subsidizing the cost of college, ultimately, then having to eat the amount of defaults that are coming which we're talking about a trillion and a half dollars it seems so pointless. why are we going through this whole exercise to inflate the cost of college so people borrow to afford it, mortgage away their lives or walk away from the debt and leave everybody on the hook >> so as my grandma would say, the road to hell is paved with good intentions. the economic incentives have been misaligned. this fed tuition increases, it's been a lot of accountability with colleges. they don't always deliver good value, although, it's pretty stern research that shows you do get a sizable income premium but

depends what college you u go to and 40% don't even graduate. so debt and no degree. a lot of things need to be fixed. different ideas but i think senator warren, the fact she's got something dramatic pays for it and tackling it for a problem. >> support through a wealth tax. >> she does. >> it's taxpayers subsidizing the cost of college. then having to eat the cost of people who default and then having their wealth tax in order to pay it just feels. >> that's a whole other discussion we should have about wealth and equality and some of the problems with the current tax code but i think she's trying to also be, doing this in a fiscally responsible way. you can disagree but at least trying to pay for it. >> good to see you again there is much more you can read about sheila bair's recent piece on the cost of college at cnbc.com here's what's still ahead on

"the exchange. coming up -- lululemon says we're not just yoga pants anymore. domino's delivers for the investors. and mcdonald's tries to attract a new kind of employee attract a new kind of employee it's all ahead in rapid fire attract a ne♪ kind of employee it's all ahead in rapid fire to make each journey more elegant. at adp we're designing a better way to work, so you can achieve what you're working for. you get the freedom of what a 7-day return policy. this isn't some dealership test drive around the block. it's better. this is seven days to put your carvana car to the test and see if it fits your life. load it up with a week's worth of groceries. take the kiddos out for ice cream.

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welcome back let's catch you up on a few stories that should be on your radar today. it's time for rapid fire here to break down the headlines, dominic chu, courtney frank. lululemon, that's the exciting stock story of the day 5 year growth plan target during the first analyst day and also five years planning to double men's sales, double online, quadruple international revenues, a personal care product line including things like deodorant and ceo says there's no plans to lower prices the shares are up 46%. >> super exciting. it is amazing for a women's yoga brand to have crossed over into men's seaales up to a billion dollars but sounds like underarmor did five years ago

and if you look at the market caps now, underarmor under $10 billion, lulu under $12 billion. isn't that amazing >> that's unbelievable >> but nike up there with over 100. >> shares up like 80%. >> but underarmor story was interesting because of the hyper growth in certain parts of the market with lulu, you're targeting a very specific part of the men's market to double that share. i don't know if they'll be able to do that and if you grow it, guys like me or you or people going to be willing to pay $100 for a pair of pants and anybody who's been doing this show for a while knows i've been saying these are the best golf clothes i've ever worn and just got an ad from lulu, pointing out how much they have in golf apparel >> like underarmor, saying the two big growth areas are overseas and sneakers is a big growth area. that's where underarmor dropped the ball, left its focus on true quality clothing lululemon, the quality and the

performance is very good the risk is that drop. >> a lot of things too, could be bigger at some point or big as their pants. if they do it well. >> how are they going to do on deodorant? a lot remains to be seen but tomorrow, tune in to squawk on the street with exclusive interview with the ceo of lululemon. the first broadcast since taking over the company late last year. next up, netflix may be entering a fight to hold on to some of the most watched shows "the wall street journal" reporting our parent company nbcuniversal is holding internal talks about whether it should remove the office from netflix when the current contract expires in 2021. nbc, disney and warner media make up more than half of total viewing minutes on netflix according to nielson data. >> this is the frenemies thing to the nth degree. we've been talking about a convergence of tech and media and strange bedfellows at times. this is now all about content. we know it's king and if people

are paying for it and everybody putting out their own streaming service over the top, ott, we as consumers will play a la carte for everything and why bundle in one place? keep content for yourself. >> it will look like now on cable. everyone will have their own streaming channels so subscribe to every single streaming channel. there's no way we can sustain this. >> here's the thing. $35 billion later for netflix, only 2 of the top 10 shows on netflix are there. >> you're talking about the total original content which is huge >> $35 billion, just since 2014. the last five years. $35 billion. what do they get from that only two of the top ten shows. that's how hard it is to make a hit and those companies whether disney or comcast that already have them in the marketplace to take them back is going to be huge value

impe imp imperical evidence it's all about the library >> top ten shows. >> disney plus is going to be big because the library is there for all. >> i think there's only going to be four remaining like every industry, consolidate. >> i don't want to belong to 15 streaming channels it's too much. >> hulu? their own streaming service? >> it's going to be fun to see how it plays out a little terrifying but fun too. next, airbnb, a slate of original shows to entice potential shows intoreuters. a doc ewe seriuseries. it's going to premiere at the tribeca film festival. this seems silly a pet project of the ceo like jeff bezos likes hollywood and that's why he wanted to get into content? why do you need to do this >> generic to me to promote travel in order to -- >> travel doesn't have a problem.

people are spending on travel like crazy and it's not like there's no travel, airbnb will create a show and travel. >> these guys wouldn't be the first to do it i remember watching in my little screen on the seat back. when i wasn't watching the flight map, i saw an original content series for lifestyle stuff put out by yeti. about like the outdoor lifestyle. so this is just a way to get them >> let's hope apple has better content than an airbnb docuseries domino's soaring today despite missing on the earnings report aggressive marketing hurt sales and turns out the door dash and uber eats launched their first national ad campaigns. fortressing strategy to boost future results but to explain that, bring in our own kate rogers we have same store sales all over the map more stores coming why are the shares up so much?

>> the same store sales weren't as negative as some analysts and investors projected as they could have been. the fortressing strategy, 2,000 additional stores by 2025. opening them up closer together so that you shorten the delivery times for drivers but in the meantime, analysts say basically, some people may go to the newer stores and that winds up cannibalizing the market. >> shares still up about 6% today. the new ceo, tough act to follow from the last guy. >> rich allison, it's curious because in the conference call, he says you will never see a third party company delivering our pizza. so uber eats, door dash, not going to be. >> but they're not the only game in town and that's got to be the problem. >> i think domino's cares about the quality of their food, not to say all the other than companies don't but he would have trouble sleeping at night handing their pizzas over to some untrained basically third party delivery person. they want to ensure the quality

and if you go on their app, you can map it from the time you order it to the door >> autonomous domino's, does that count >> i think though, that's still in house and that's the point to all the companies, obviously, different strategies but did mentionparties >> courtney, what's your 2 cents? >> i don't understand how the delivery drivers play any role in the quality of the food does it matter they're not touching it. the franchise employees. >> we've had the experience of getting delivery not hot and not quick. how far of a threat is that to the pizza business >> i could see that, i guess. >> but your strategy to put different locations, you wonder whether or not comparable store sales as a metric is as reliable because you're just sapping business away from the existing store location >> exactly that's why they're saying this could impact in a negative way in the beginning >> stay right there. actually, the last story we want to mention is right up your alley. mcdonald's hiring older workers. they want you to spend the

golden years with the golden arches teaming up with aarp to fill 250,000 with workers 55 and up make total sense to me older workers are better, better attitude >> but do they want these jobs >> post retirement is like a second childhood it really is because now you're stuck flipping burgers at mcdonald's >> they're going for breakfast and lunch shifts because some of the workers are not as enthusiastic getting up early in the morning. you know, mcdonald's has done this in smaller markets. this is the bigger push. 200,000 with the franchise locations for the summer, why not tap into this? >> i think it's brilliant. >> the workforce, they have soft skills that younger people may not have >> similar >> minimum wage. >> i would imagine, the experience factors into it as well at some point. >> at sop poime point, all the s will be automated anyway, right? >> that's years off. >> but when you're talking about

older workforce, you kind of have that ability to transition to those kinds of programs a little bit >> it's a function of unemployment being under 4%. >> i went to mcdonald's, a friendly face. >> grandma's mcdonald's. like your walmart greeter: >> which they're getting rid of. >> my grandpa hung out in burger king and loved to talk to people coffee club. >> thank you everybody dom chu, robert frank and i was going to say courtney rogers courtney reagan. >> i'll take it. >> san francisco housing shortage becomes more dire, a luxury waterfront neighborhood now set to be the site of the city's latest homeless shelter we have the details of a tense fight between advocates and opponents of this next

each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. welcome back tiny san francisco district is going to be the site of a new

homeless shelter after a fiery debate with residents who opposed it and advocates dede roy has the details for us. hi, aditi. >> reporter: homelessness is one of the top problems in the city especially with the rising housing costs. on the other, you see luxury n condos in the neighborhood and a lot of people in these buildings don't want a homeless shelter steps away from this parking lot. there's been a ton of debate about this on both sides and even duelling go fund me campaigns. jack dorsey supported the mayor's project and tweeted about it and the 5 hour meeting leading to the vote, some spoke out about the billionaires the shelter is supposed to be built later this summer but at least one neighborhood group vowed to fight it in court, so kelly, stay tuned. it's definitely not over yet. >> aditi, how likely is it though that where you're

standing is going to be the site of a new homeless shelter and how unusual would that be for san francisco? >> i mean, it would be unusual, but the problem is pretty astronomical estimat estimat estimated 7500 people on the streets in san francisco and something that really affects everyone who live or works here in the city. on the other hand, i want to show you, like, if we could swing the camera around this way, this is an incredibly busy area right in front of the waterfront a lot of traffic going on and a few blocks away from the stadium. so a lot of people say it would be a hard place for, for instance, emergency responders to get here if they needed to come to the shelter in the first place. >> thank you very much aditi following that story for us in the meantime, the 2019 stock draft is just about 24 hours away and this year's teams are being captained by some pretty big names including mets pitcher noah syndergaard and kevin o'leary and bethany frankel and

nick lowry looking forward to all that tomorrow afternoon. open offices were supposed to spark conversation and collaboration but studies have shown otherwise. the ca f cics xtseorublene moving is hard.

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take a look around the office if you can see the top of your coworkers head, you are in an open office, thought to encourage more collaboration among workers but research showing the exact opposite often happens. make you less communicative and less productive. joining me now for the less installment in the series taking a closer look at the future of work, ethan bernstein, associate professor at harvard business school and katherine schwab at fast company welcome to you both. you've written about this phenomenon what's going on with open floor plans. >> they were supposed to kind of herald this new era of work. they were supposed to help be much more collaborative but employees don't really like them they're really noisy you have no privacy, it's very difficult to concentrate and really get any work done so instead of kind of, you know, heralding this new era of

collaboration and productivity, it's made a lot of people really angry. >> ethan, tell us what you've discovered in your own research. >> when we were looking not so much at like or dislike but how people interacted. we were able to instrument people to see their face-to-face interactions, and then track their digital interactions and by studying two corporate headquarters as they transition from cubicles to open office and we saw face-to-face interaction by 70% and be substituted with electronic communication, email, i.m., et cetera. >> is part of the problem we have slack around here and other apps, that those came into existence after the open floor plan and would this have worked fine if not for that >> so we live in a renaissance of workplace collaboration tools, slack and teams, all these things and to some extent, i wouldn't say it's wrong. maybe actually, it's a good thing these individuals are communicating more electronically versus face-to-face the question actually is, was that the intended consequence

and in this case, it wasn't. that's where i come in are we trying to actually make people revert to their laptops because they'll look across the office, see somebody who on thee everybody can see them look distractable because they're surrounded by individuals. rather than interrupting her, i'll send her an e-mail. >> right katherine there's a difference between productivity and happiness. i can understand how messaging apps help productivity, but what about the happiness of losing face to face contact people have worn headphones in part to drown out all the noise which again reduces the ability to have those one on one kind of silly water cooler chats even. the stuff that may not be productive but that might enhance your day at work >> absolutely. i think we have -- our office is dead quiet most of the time. when those conversations do happen, it's actually disruptive to everyone else who is trying

to focus and get work done which is kind of a difficult. >> a conundrum >> right architects have struggled with a way to create offices that can engender that kind of conversation but also give people the space they need to get work done. so it's caused this kind of rise of a hybrid office in response to the open office where you have a lot more smaller meeting rooms. often kind of phone booths so when people want to have conversation which is really important for working and collaborating, they can do it in a place that's not going to ruin everyone else's day. >> a quick final question. is that the future, then, we're going to have phone booths in the office >> well, perhaps we will of some kind katherine and i agree on many things her article has been great what organizations can do, i was with a large fortune 500 company yesterday. the head of hr is the head of

real estate. that doesn't happen often. it happens with gayle king at nationwide that gives you the chance to think about architecture and anatomy and happiness at the same time. maybe that's what we need to do in order to achieve better offices. >> we're not going back to cubicles, i guess. but they look better than they once did thank you both i appreciate it very much. ethan bernstein and katherine schwab shares on earnings have lost about 11%. united ceo oscar munoz has been dae fender of the company. he joins us next with why he's sticking by the aviation giant chipolte reports earnings today. we'll have an interview with brian niccl to discuss the results. don't miss it. we're back in two.at works at s.

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shares of boeing are slightly higher after the earnings lower by more than 10% since the crash of flight 302 in march that was the second boeing 373 boeing max 8 to crash in eight

months a vocal support of boeing is with us. we're at chicago's o'hare airport. we are joined now. phil >> hi, kelly >> oscar >> good to have you here on a day let's talk about the max you have it off the schedule until early july what's your sense, your best sense of when it flies again >> i think it's fair to say we don't know safety is by far the most important part of it right now it's our best projecti projection, so we have no idea >> the boeing earnings call today i asked how do you restore the public's trust in the 377 max. he said we're going to have to work with the airlines how do you convey to your customers when the max is flying, it is safe >> well, a couple things i think it's important when we

return this to flight that we do it in relative use and in lock step around not just the u.s. but the world. i think it's an important part of it. we'll have to monitor and engage that with regard to our customers and ensuring that, listen, safety is by our the most important thing. we're not letting our customers and our employees on an aircraft we don't find safe if people concerns, we'll always take care of our customers >> you have at least another 16 maxes scheduled to be delivered in the second half of this year. if that doesn't happen, how much pressure does it put on you both in terms of your capacity as well as your numbers at the end of the year? >> clearly it has an impact. we've always said with any of the items that the longer they go, the more impact they have. we don't know the time frame we felt comfortable in the first quarter call to reiterate our four-year guidance we'll get there and hope we return this aircraft to flight safely and in the right time frame. but clearly any impacts we will

feel if it goes longer >> i want to shift gears jet fuel prices. oil keeps moving higher and jet fuel prices. are you getting nervous about it >> you know, it goes up and down so often we adjust accordingly. it's our business. we get paid to be nervous about so many things we keep watching it and let the market adjust accordingly. similar to what it did last year >> last question new plane, behind you there. do you feel like this is part of the next step in the rebirth for you nighted airlines >> it clearly is we've waited for this long because i always say proof, not promise. we've had a level of proof, new routes, new customer innovations, new product offerings. and we've already been changing our brand colors a little bit. this was just the next part of the journey. and i think it symbolizes some things we've been able to do we're excited about it >> one last question

>> thank you hi, oscar. i wanted to ask about your crackdown on emotional support animals which i think you guys now said look, none on long hall flights. you're tightening things up. how is the customer response and do you think you're going to need to tighten things up even more so people don't abuse this? >> well, that's part of the equation right? we have to make sure we take care of all our customers. the ones that need emotional support animals, we want to support them we have many customers that don't. the recent policy change was meant to do that i think it's pretty practical to think that an animal of that size flying longer than eight hours is just impractical that they're going to be able to -- to continue the journey without having to relieve themselves to be honest. we'll continue to monitor and adjust accordingly, and trying to do the best thing for our customers but some things have carried a little too far that's why we made some of the

changes. >> delicate balance. a great interview. great to see you phil, thank you very much. that's the ceo of united airlines with our very phone phil that does it for the exchange thanks for tuning in it's time to join "power lunch" which begins right now >> we'll see you in a moment new at 2:00 stocks hovering here record highs as earnings pour in are there opportunities in the red hot market the ceo of regeneron with a plan to fix the crumbling infrastructure calling on public companies to chip in he'll join us. and rising risk. call them climate refugees how one entire town in america is being moved because of extreme weather. you've got to see this "power lunch" starts right now >> let's get to the big stories. wall street is