market because of the market cap of the big four. bear market investor confidence, synchronized global growth -- >> i knew you couldn't do it quickly. final trade. >> i'm giving you disney >> gld >> alumina >> no answer >> kelly evans, "the exchange," begins now thank you, scott hi, everybody. here is what is ahead. deal or no deal? the u.s. says china is ready to make a deal. china says they are preparing counter measures for a tariff hike we will break all the headlines down and get you the very latest plus caught in the middle, some big tech names have been big decliners on concerns about tariffs. we'll tell you who is actually most exposed and who isn't and you my r. might be surprised. plus disney earnings are on deck chick-fil-a is even more popular than you thought but still not as hot as canned water is right now we'll have all of that ahead in rapid fire but we begin with the markets

and dom chu has those numbers. >> bulls will take this as a bit of a victory we are green, modest, but still dow up around 100 points a third of a percent to the up side s&p about a similar percentage gain and nasdaq as well. the trifecta here, all a third of a percent to the up side. a key sector that we continue to watch, the semiconductor side within technology because those particular stocks are showing a bit of a rebound today as well again, not a lot, but still 0.2% to the up side remember it ran up by about 50% and then has pulled back by about 6% since those highs and if you are looking for the stock of the day, an ipo and it is a big one, a big federal contractor, they do business software solutions, this is parsons, it priced at 27 bucks a share. and it got up to right now $30.54 a 13% gain heavy volume, we'll put a star

and check there. a good ipo for parsons kelly, back over to you. >> and uber looms on friday. thanks welcome to "the exchange." yields are on the move today the ten year falling to its lowest level in more than a month and a major bond auction is under way right now we'll bring you those results. oil rebounding as crude stockpiles fell by about 4 million barrels. and in corporate news, walmart just announced that it will raise the minimum age to 21 to buy all tobacco products that includes ecigarettes but we begin in washington with the clock ticking to get a trade deal done. eamon javers is live at the white house with where things stand. >> reporter: yeah, we're getting some positive vibes here from the white house, but not a lot of specifics in terms of exactly what is going on behind the scenes you saw the tweet from the president this morning in which he said that they had just gotten some indication from the chinese side that the chinese vice premiere is coming here to cut a deal he said that they, the chinese vice premiere, are now coming to

the u.s. to make a deal. he also caveated in that though saying we'll see, but i'm very happy with the tariffs as they are. so i asked sarah sanders, press secretary, on the driveway here a while ago what gave the president the view that the chinese are now coming to make a deal as opposed to walk away from a deal. she said that they have gotten at the white house some indications that the chinese are serious about a deal, but she didn't say what those indications are. so we really are left a little bit in the dark here meanwhile behind the scenes they do continue to tick forward in terms of the tariff clock for 12:01 a.m. friday morning. the expectation is now that they have filed the official federal register notice, and that has been available for the public to view, the expectation is they are now in a position to move forward with those tariffs friday morning if the talks tomorrow don't go vi vice premiere is expected here no word on whether the president will be meeting with him in the oval office which he's done in

the past when that official has been here in washington, d.c so we'll keep an eye on all of that but a very volatile and fluid 24 to 48 hours coming up here at the white house. >> and markets will be focused on all aspects of this, including meetings like that appreciate the details and markets are attempting to rebound today despite the rising tensions. bob pisani is scratching his head about this at the new york stock exchange bob. >> everybody is scratching their head you can just see how confused traders are based on what eamon just said. we've already had four different market moving trade headlines just this morning. so look here, futures moved down about 15 points just before 5:00 a.m. eastern time. a word that china backtracked on nearly all aspects of the trade deal and then rose more than 10 points on trump's tweet. and then another 12 in the middle of the morning on sarah sander's comments. but then dropped on another reuters headline about possible

retaliation from china you make sense of it three outcomes here. a trade deal, number one that would make the markets very happy. no trade deal but no increase in tariffs and word that talks are going to continue. okay, that probably would be okay for the markets for now and then no trade deal, tariffs increasing and even goes home angry and definitely that would not be good news for the markets. trying to price in the probability of a trade deal, kelly, proving to be very difficult. back to you. >> certainly is. bob, thank you meantime in the bond market we have a big news alert with the ten year notes that went up for auction. rick santelli is here with the action >> i'll tell you, you must have esp, we're doing the auction today and it is a big auction. and it got a big d d as in dog. and i might have been kind even giving it a d. let's go through it. 27 billion, this is the primary auction, we'll have two reopenings of a lesser size. the dutch auction yield, 2.479

that was even higher than when the one issued range was so it tailed badly and if you look at the internals, that 2.17 bid to cover the weakest since march of '09. 53.3 on the in-directs, weakest since april of 2018. and that was only by one-tenth would have taken us farther back toward 2014, but one-tenth made the difference and finally, the only area that was even remotely near its average of ten auctions was the direct bidders at 11.5 versus 11 35.2 going into the hands of dealers, that is a big amount. so this is the second auction. yesterday's was nothing too stellar with the three years, but it wasn't as bad as ttoday' tens >> so no one showed up for the auction in other words >> exactexactly. we could interpret that in a number of ways maybe it is just nervousness about getting involved should there be headlines regarding

trade. but also remember that when you buy something, you want the price to go high, right? well, the price has rallied quite a bit pushing yields down to levels we haven't seen in about a month and i'm sure that impacted the psyche of investors. >> that is a big surprise. rick, thanks very much so president trump says china is ready to make a deal. but chai's commerce ministry says they are preparing to take the necessary retaliatory measures if tariffs are hiked. what is the real story here? joining me now is former north dakota senator heidi heitkamp also chief strategist at still silver crest >> and the bipartisan support for president being tough on china is remarkable. it goes to what chuck schumer said but also a raft of others who seem to be saying go bold and don't worry about the deal falling apart. >> i think what has been really interesting is the political realignment on trade you would expect a democrat to say good hard.

the real surprise here is that you have a republican president who is a trade disuniter wruptes done what he's done on trade so i don't agree with chuck schumer. i think he made the wrong statement, sent the wrong signal -- >> meaning >> i think right now what we need do is pull back, engage our trading allies and engage our consistent partners. and try and put more pressure on china, in the by not by imposin tariffs, resulting increased prices to consumers, but taking a look at how we can leverage the support that we have from the rest of the free world to control chinese -- >> so a u.n. type of movement. >> you bet >> patrick, the senator referenced the damage to consumers and businesses polaris yesterday toldarming th. they said if the tariffs go up 25%, they will lose a third of their net income because they

can't relocate out china as quickly as they would need to. this is coming if it happens on friday very suddenly and with very little time for businesses to respond. >> i think for a while markets have believed that trade deal of some kind, whether it was satisfactory or not, in terms of solving the understand ly underi the cards. and the tweet kind of surprised everyone and i think businesses have been concerned for quite a while about the impact tariffs could have, especially larger and broader tariffs that the president is talking about but a lot of the drama, this is how negotiations play out. normally we don't see it play out on twitter, but there are moments of impasse and both countries are coming to the table feeling like they have the upper hand the chinese feel like they have stabilized their economy and that is why they are trying to claw back on some of the things that the u.s. think they agreed to before.

the trump administration is looking at 3.2% gdp growth and saying the u.s. is xwogz going impervious from the damage but i don't agree with that. i think the u.s. economy is more vulnerable than the headline number would suggest >> senator, we had an expert from aei on earlier this week who says that he doesn't like tariffs as a tool either because of the collateral damage he said why not sanctions, why not export controls which would constrain u.s. businesses from doing business in china, but in a way they are stuck because they want the business so individually they all want to jump in even though collectively that gives over some of the sensitive technologies how do you think american businesses are positioned as they watch this all play out >> i think number one they are confused because it is on again, off again. i think that it is all baked into the markets for a long time and now this disruption. you are seeing some up and downs. but this is going to continue and it will go on. the question that we have to ask in terms of long term, is

tariffs the right strategy and i have to agree, look at sanctions, look at other kinds of retaliation that we can impose that doesn't have the impact of a 17th century tool that we can actually engage and have a better result and a better outcome in terms of putting pressure on china. >> if it is true -- patrick, go ahead. >> i think that the senator is right here in the sense that the united states is not actually playing its strongest card the card that it is playing is tariffs that dully do a lot of harm to the u.s. economy the u.s. i think should step back, look at a broader -- look at rallying trading partners like europe, like japan, like even india that have big problems with the way that the chinese have behaved but that would take setting priorities instead of them going around picking battles with everybody instead of organizing a coalition to put sustained pressure on china over the long

term from multiple sources instead of just one that they can retam gret retaliate >> so if we don't like tariffs but we want pressure from other trading partners, as specifically as you can be, what are we talking about >> so it would involve bringing more aggressive cases in wto instead of trying to cripple wto. it would involve -- well, not quitting ttp since that water has lurd flowalready flowed, pe trying to reengage with it so there are things that we can do, but you're right, i think it is unlikely that this administration would take that step back and take that approach so perhaps the best outcome that we can look for is some sort of a deal that voids tariffs and unfortunately doesn't solve some of the pressing issues that really do exist between the united states and china. >> and finally, senator, like you said, for constituents, for businesses who are furious about what china has done to america in terms of trade theft and just other things over the last

several years, to me a response by the administration that says that we're working behind the scenes with india and -- just didn't sound like that is going to sell. tariffs are a bad tool, but is there a better tool that could still convince the public and businesses, hey, we are going to change their behavior? >> i think that everybody needs to step back and think about what leadership looks like, what trade leadership looks like. doesn't look like pulling out of tpp, it looks like reengaging with our trading partners to dully fix problems and you say well, it is just not sexy, it doesn't sell as well. guess what, frequently governing is boring and we need to get back to being boring again and working a process that has long term outcomes and not short term headlines. >> i think it is bad to equate drama with progress. >> understood. but in this day and age, drama has been where the progress has played out guys, thanks

here's what else is coming up today -- >> ahead, with so much volatility and uncertainty ahead of friday's tariff deadline, how can investors prepare for what could be a very intense two days google's ceo says privacy should not be a luxury, but if you want free products, it does have a cost. we'll debate and lyft says 2019 would be its peak money losing year what that could mean for uber as they try to wow wall street on friday we see harnessing natural gas unleashing the promise of clean energy. at emerson, when issues become inspiration, creating a better world isn't just a result, it's a responsibility. emerson. consider it solved.

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this time around... now that's simple, easy, awesome. experience the entertainment you love on x1. access netflix, prime video, youtube and more, all with the sound of your voice. click, call or visit a store today. welcome back to the exchange markets have been whip sawed for more, let's bring in paul christopher at wells fargo, and also we have chief investment officer of greenwich wealth management welcome to you both. is this the kind of environment where you get excited to pounce on some opportunities or do you just stand clear >> no, i mean the market is still near an all-time high. we've had a bit of a selloff because of the trade related things, but in wasn't a huge selloff. there are still stocks that i think are undervalued and worth booiring there are a number of things

that have sold off more than others but when you look at the fundamentals, the economy is doing very well. the employer market is very good there is virtually no inflation to speak of. and interest rates are extremely low. so i think that it is a very good time to remain invested we're seeing a selloff simply related to the china deal. we could all of a sudden wake up and see that deal is final lized and the market suddenly rallies. >> paul, are you trying to game out the odds at this point are chinese stocks going to look attractive it is a hard question to even ask. tell us how the smart minds think about where the global opportunities are. >> we've been overweight in emerging markets since last september. it is a position that served our clients well in the latter part of last year we remain so we do think that deal is very likely still notwithstanding the headlines and conflicting headlines for this week. but in march, we did take our

position on the s&p back to neutral because we don't see such strong fundamentals in the economy as the market is showing. it has been 88 days since the last 3% correction or pullback in this market that is the second longest in this expansion since 2009. so the market is out over its skis a bit we would like to see a little bit more of a pullback before we start putting some of the cash back to work >> and you said there are places that you would buy that maybe sold off too much. some examples. >> one area that i really like is energy. we've seen a huge rally in oil prices, but the energy related stocks haven't kept up one way to play that is simply with an etf like the xle but there is an energy stock that i really like, murphy oil we did see a bit of a selloff in that the last few days it is a company that has quite a bit of exposure, not much exposure overseas. >> do you have to take an opinion on what is happening

with iran now saying that it will kind of move forward with some enrichment or if there is -- i guess if you are exposed to energy, at least that is maybe some up side oig does that factor in? >> not so much because regardless of what happens with iran, i do expect oil prices to remain firm. as long as oil prices are at current levels or higher, a company like murphy will generate a lot of profits. >> and i'm reminded of what warren buffett said that if you had asked him a few years ago, u.s. at full employment, budget deficits 5% and growing and long bond at 3%, he'd say no way. and having that long band at 3% makes stocks extremely cheap even with everything that you've said about the rally ironically that long bond fell to about 2.85% since then. so are all the tensions actually creating a bigger long term opportunity for u.s. equities? >> yes, longer term let's say over the next 12 months we do

think stocks will move higher from here. we also like energy, we also like tech and consumer discretionary. we like industrials which haven't done well this week with the trade talk and we still like financials too >> anything you don't like >> we don't like the rate sensitive stuff. so the reits and utilities, we don't like those we recently turned negative on materials willi also. >> all right, guys, thanks a bunch of good ideas in there coming up, apple, facebook, google, it is the battle to be the best on privacy. we'll look at who is promising what and why you can't have it 3w both ways as a consumer. and testimony in front of congress why haven't boeing executives been called on to do the same. >> that is ahead at emerson, when issues become inspiration, creating a better world isn't just a result, it's a responsibility. emerson. consider it solved.

welcome back to the exchange here are some of the movers. shares of trip advisor are falling by 11% on lower than expected revenue the company also seeing a slowdown in nonhotel revenue growth u.s. steel down from neutral to sell. ubs's 23450 schls near term capt reverses wills but shares of match going the other way on solid first quarter results held by strong subscriber growth. and tinder is issuing a strong

outlook for the rest of the year, says it has not seen an impact from facebook's dating product. match shares are up 12.5%. now a cnbc news update hello, everyone. here is what is happening. on capitol hill, house judiciary committee chair man jerry nadler blasting president trump's decision to invoke executive privilege regarding the mueller report >> this is unprecedented if allowed to go unchecked, this obstruction means the end of congressional oversight. as a co-equal branch of government, we should not and cannot allow this to continue or we will not be a co-equal branch of government. swre venezuela's opposition leader juan guaido visiting leaders after the top court opened a criminal investigation into several opposition lawmakers after a failed attempt to spark a military uprising against president nicolas maduro a new study by go banking rates.com finds that maryland is

the best state for college grads to launch their careers. massachusetts came in second followed by minnesota. the worst state for college grads? nevada where the unemployment rate for those with a bachelor's degree is 4.3% that is the highest in the nation you're up-to-date. kelly, back to you >> that ynk you and i'm joined by melissa lee. >> you like to play connect the dots, right? we'll play that on power lunch trade war edition. the trade tariffs go higher. what impact does that have on the economy, does it slow economic growth? we had a number of firms coming out yes, it will and what does that do to the fed and does that put a rate cut back on the table. can you connect those dots one manno, ste knows, steve lie. he will join us. >> and when you talk about administration officials have talked about rate cuts, both times lately maybe didn't go so

well mr. liesman will have more we'll see you then here is what is still ahead -- coming up, how some companies are decoupling from china. and google takes a shot at apple over privacy disney earnings on deck. and how one man landed a million dollars to make canned water that is ahead onap fe. ridir an ? 401(k)? where do i start? ar you ininvestor.gov. so, servicenow put your workflows in the cloud, huh? ar you ininvestor.gov. mmhm. your employees must love you. [ chuckles ] thank you. you could say thate i love you. servicenow works for you.

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

. welcome back a quick look at the winners on the dow. walgreen's is leading the way with a percent and a half gain united tech also up there, disney up a percent and a quarter. nike and united health round up your top five. now a couple stories that should be on your radar here to break down the headlines are dominic chu, seema mody and bill griffeth. some companies aren't waiting for a trade deal to go through or fall apart, they are just moving away from china anyhow. >> yeah, so as the u.s./china trade negotiations drag on, a number of companies over the last year have been moving production out of china. they are either shifting parts

of their supply chain to other countries or just detailing con be contingency plans on where else they can make certain parts or components. so the decoupling out china is becoming a growing trend and they are looking to other countries that have manufacturing hubs like mexico, vietnam, even steve madden talked about cambodia. so this is a growing trend but of course as we know, relocating is a risky bet, finding the right talent and also same level of industry expertise can be achallenge. >> but they look smart if the tariffs go up for sure >> i think it is a good idea anyway to be doing something like that because this could drag on for quite a long time. we did this story last night on "nightly business report," a retail analyst pointed out that company like restoration hardware, you look at the back of their furniture now and it is made in vietnam. i mean that is becoming the norm right now. >> on so oso one of the benefit whole trade spat with the u.s.

and china is that china perhaps is losing just a little bit that gem any on the trade front there was a concern when they pulled out of the tpp that there might be avoid that they could have filled. china might have gotten more but in this case it seems as if people are starting to move supply chains away from china, that that is -- now, china is still the 800 pound gorilla in and i peck, but incrementally you can seeing that kind of share or influence chipped away and that may be something that could be worth something down the line >> and polaris yesterday saying they moved some of the supply chain already. >> we won't make nice with china overnight. this is going to drag on for a while. >> exactly all right. next up, google's ceo out with an op ed in the "new york times" saying that privacy shouldn't be just a luxury available to those who can pay for premium products and services he says google has plenty of ways to keeping your data does your but he reminds users that having

free products means sharing some information. >> as i have said in the past, i have no problem with them having my information if it is going to make a better service for me data privacy, that is another issue. they must protect the data but sharing the data so that others, the advertisers, can target me so that i can buy something on instragram -- >> forget the advertisers. i'm a daily car commuter i live in connecticut and i drive here traffic is an issue. i use waze every day and waze is owned by google, owned by alphabet. crowd sourcing data helps me get a better route to work for traffic. i represent part of that data that goes in to made massive google -- >> i check every morning before i leave. >> and i'm okay with that because the benefit i get is a less onerous commute to work and i'm okay with that about. >> i think the awareness is important. so google maps i'm with you. i use it no problem if it helps optimize roadways so search, i don't put anything in there that is that personal

or sensitive if i can avoid it because i feel uncomfortable >> and even if you do, if you clear your search history, that doesn't have that large of an effect and i took from that op-ed his idea that really the blame should not be on google and other tech companies but washington and congress to introduce new legislation that really prioritizes privacy he's saying it is their fault, not us >> and this whole blame game, remember apple ceo tim cook told becky, hey, we're not like those other big tech companies, don't lump us in, we protect consumer information, we never off of prf of it. and the way he describes it without calling out specifically facebook and others, where do people get on facebook on their iphone. >> sure. >> apple is not in that business, but they are the conduit. they can't take a moral stand for something that they are part and parcel of. >> it is disingenuous for the public to be up in arms other data sharing

i will say it again, data privacy, that is paramount data sharing, that is important to be a better -- by the way, i hate waze. >> i do too. i use google maps. >> all the same technology same maps. >> going maps is better. >> waze has sent me in the wrong direction too many times all right. next up, disney is releasing earning after the bell today the stock is up 23% and near all time highs and they revealed changes to their thesese theatrical releas. they pushed back avatar sequel >> there are four satisavatar s will sequels disney is firing on you will a cylinders. the movie studio, the theme parks. everybody has high expectations for the disney plus thing.

and what have we forgotten about? espn and the decline of their subscriber ship out there. so at least from a pr standpoint they have been masterful in diverting our attention to what is strength for them as opposed to some of their weaknesses. >> you know how master full? anybody out there right now, just pull up a chart of dis for the last one year, and look at the last three months of stock moves. it is like a 45 degree angle up and to the right out of pretty much nothing for the last year so whatever the narrative is that they are spinning, it is working with investors the question becomes when do investors say hey, it is time to put up or shut up. >> i think that comes not just in the earnings report, but in november when they finally release their disney streaming service, will it be able to compete with the like of netflix. as a consumer, i'm not willing to pay another $15 for another streaming service. >> just wait until up kids >> it is true, expectations now are very, very high. moving along, a report from food

service consult tants shows chick-fil-a has jumped in the to top five of biggest restaurant chains in sales. poised to hit number three in a couple more years. high marks on customer service, civil menu two of the driving forces, but they are doing it without being open on sundays. that is one day out of seven it is amazing. >> a phenomenal story. >> and they don't even need public money privately owned. >> family owned company. and, yeah, their sales have been sky rocketing. even teens according a survey says it is their favorite fast chain. they prefer it over starbucks and others >> i would have thought for the youngest that the whole preliminary thing would have more of a turnoff. that was my single biggest surprise, there isn't one. >> i can count on two fingers the number of times that i've eaten at chick-fil-a it was okay. >> you've been there twice what did you order in. >> chicken >> the sandwich, the nuggets, the waffle fries

>> i don't remember. but my son and his fiance love it anytime that -- they could be on their way to dinner somewhere and if they go by a chick-fil-a, they have to stop and have a snack on the way >> our worst moment on family road trips is we'd finally see a chick-fil-a because they are still a little hard to find and it would be sunday but got to respect them. but we're all like dang it >> including the one at the mercedes-benz stadium where the falcons play on sundays and it is not open. >> but this is a grass roots kind of growth that they are experiencing much like in-n-out burger it has the cult feel to it where everybody loves it because everybody loves it >> and they haven't had to change their menu. just fried chicken between two buttered buns. >> and grilled nuggets finally this, isn't your grandfather's water. probably just came out of a faucet for free. >> no, no, i thought it was from the alps >> yes, the swiss alps >> liquid death mountain water offers to murder your thirst

and this is the brain child intended for straight edge punk crowds that like music but say no to control or drugs a 12 pack will cost you $22 on amazon >> crazy >> i don't know what to say. >> i don't think any of us is the demo they are going for here, right? >> no. >> unless you look at the data which actually dom pointed me to that shows bottled water was the most successful mass category. so when you see that, you say -- >> here is the kicker. we spent time on their website which is hilarious their kicker is they are not a plastic bottle, so they are aiming also at this hey, we're al lu aluminum, environmentally friendly guys, we have to move on because we have a special bow miss ranu fire everybody knows the news harry and megan have announced a new name for their new baby son. have you not heard it?

>> no. >> have you not been on social media? >> pay attention here we go >> we have a special guest here to tell us give us all the details. >> so his name is archie harrison malbaton wind are sor what i know is in a archie is one of the top 20 names in the uk >> is it short for something i thought archibald. >> no, just archie and a nod to lord -- >> is there a story behind archie >> yes, i found it maybe. let's me qualify that but i reached out to my friends at the new england historic genealogical society i'm on the board and they have voluminous archives there now, they looked up meghan's family history, nothing, no archie back there. but princess diana had and an says tore named archibald

campbell, he was the ninth earl of argyle. this came from scott steward, editor in chief of the society now, the question is, is this why they named him archie. but it could be a quiet nod to princess diana >> which is lovely a lot of people speculated that it might be a spencer. >> and harrison means son of harry. and johnson means son of john. >> and there are other royals in the royal family that have that last name. >> and mountbatten and they adopted the windsor name because they were originally the family of sax gotha, which was a deep german name and there was anti-german sentiment during world war ii stay with me >> i'm stunned at the knowledge you have

>> when you are on "jeopardy," this will come in handy. >> well, guys, thank you very much for that. our royal correspondents and experts. >> more tonight on "nightly buss repor report". >> yes >> thank you all very much services are better bets than hardware in tech if the trade war with china continues, that is according to goldman sachs. are they right and has the recent selloff presented a perfect buying opportunity back after this. tr

i don't know what's going on.

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mark mahaney from rbc markets. welcome to you both. kim, i'll start with you great to see you again where would you be investing with what may not be a resolution this weekend. as billing was just saying, this thing may be playing out for months or years to come. >> sure. well, i really like semiconductors because they are the foundation of productivity they are the thing that mak es interconnect with each other and they are proceed duct activities and that is really what this angle is a chbd they ha and they have gotten hit hard and fast due to the trade talk thing. but that is where i look for value. and i'm more fond of specific names. some of the semis are probably overpriced you know, if you just look at the multiples and go down, you get to intel which is trading at about 11 times forward earnings.

so i'd start there >> all right mark, goldman is out there today saying to place services instead of goods making companies. so that would favor an amazon for example better than apple. what is your take? >> well, if you look at the faang stocks, netflix, going, their exposure to china is maybe less than 1% long term that is a negative these companies would like to have greater exposure. so tradeoff on sentiment, but selling to the extent that those stocks are selling is for indiscriminate reasons wraerathr than country specific. what we slik facebook based on valuation in the back half of the year it is also the cheapest stock on pe basis and then netflix which we think will being a great franchise that will come out july 4, the stranger things, next season of that so there is a product pipeline that looks solid

those are our two top picks. >> what about apple? mark, i'll ask you first they are the one obviously even if you go with jim cramer's abcs exposure to china, apple, boeing, caterpillar. so is it the riskiest one in this regard? >> i may punt a little bit on that i don't directly cover apple so relative to the names, tech names that i look at, it has more exposure, but i would ask investors to think about is this the long term trade or the short term trade that you are in and i look at a sector that doesn't have expossession some you are expo chur and wishes that it did. >> and kim, same question to you. what about apple and where else would you look if you didn't want china exposure? >> well, that is kind of tough because we are talking technology and at least the kind of technology that i really like which is enterprise focused, it is really a worldwide anonymous non.

b -- phenomenon. apple probably isn't in that category because they do have some exposure to apple -- i'm sorry, to china. and it is not a great place for them recently. so that is part of that problem. so maybe something like microsoft because again it is more services now as opposed to, you know -- >> a guys. >> yeah, devices but yeah, that is where we'd look it looks pretty rich right now, but any kind of -- not consumer, but enterprise software is where we would look. >> and i see you like westinghouse, air brake technology, maybe vfc corp so other ideas for those looking. guys, thank you very much. kim, mark, appreciate it with questions about begboeing'n of 737 keeping mounting, there is a big one facing lawmakers. why hasn't boeing been called on to testify in front of congress. the reason why is are next

dear tech, let's talk. we have a pretty good relationship. you've done a lot of good for the world. but i feel like you have the potential to do so much more. can we build ai without bias? how do we bake security into everything we do? we need tech that helps people understand each other. that understands my business. we've got some work to do. and we need your help. we need your support. let's expect more from technology. let's put smart to work. ♪ ♪

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of the 737 max are continuing to grow why haven't any boeing executives been called to testify on capitol hill? phil is here with a look phil >> reporter: that's a good question we are almost two months since the grounding of the 737 max, and there have been congressional hearings, but as you take a look at shares of boeing, keep in mind what we've seen are the head of the ntsb. they're back on capitol hill next week. but so far no boeing executives have testified that includes the ceo. he has not yet been asked and he has not gone to capitol hill yesterday. that's surprising to some people like ray lahood, former transportation secretary >> do they want to hear from the top people, and i think there's a little bit of doubt for the moment here why the ceo has not testified, and why hearings haven't been held.

we should point out that boeing when we asked them about this said look, we're cooperating with congressional investigators providing documents. if at some point in the future the ceo is requested to testify on capitol hill, he'll go there. so far unlike other past scandals or crises, whatever term you want to use, whether it was gm's ignition switch, we are not seeing boeing executives being brought in front of lawmakers to explain what's going on >> sure. and the more reporting emerges, i think the more likely they are. we'll see. it's an important point. thank you. shares of lyft are falling more than 23%. is there anything the ride hailing service can learn from lyft that's next.

welcome back news in the last few minutes sources are saying that uber is set to price it ipo at the mid point of the target range or lower. demand that be muted given lyft's decline we checked and lyft shares are at 55. the stock is down about 23% from the ipo. we have leslie picker and diedre

both in the house. leslie, first or not pricing we thought it might be the high end of the range that was the indication last night. did something change today >> there was a reporting from a competing news organization that said they had enough demand at the high end of the range. you'll see especially with the buzzy ipos three times is not something to write home about. lyft was 20 times oversubscribed by about this point in the process. we've seen how that has done so first, oversubscription numbers are never an indication. second, if you want to use them as an indication, three times isn't necessarily a huge something to celebrate and something that definitely means they'll raise the range or price at the high end. >> what's the range, 44 to 50? >> so 47 would be the midpoint which implies from a fully

diluted, about a $86 billion valuation. higher than the private round. >> i don't want to jump ahead of the tomorrow story, but they got to get to 120. died diedre, there are drivers on strike for both uber and lyft? how's that going "today" what are the optics? >> well, i think part of the reason that maybe this valuation has come down. it was supposed to be 120 billion. then 91 billion. investors are getting to know the ride sharing business model. a lot of it was unknown. lyft had their earnings last night. showing that -- these companies, the trend over the last few years is pay more for slower growth if you're a growth investor, you're thinking the best growth is behind us you mentioned the strikes. the drivers, it's an important part of both business models it's the only cost they can control. you have things like insurance and payment processing these are not employees. they are independent contractors.

it's been clear to them over the last few months that they're not the ones making money in the ipo. >> sure because of the headlines and everything i read the new york post profiled a few drivers who said i used to make $2.50 a mile and now i make 80 cents. as they expanded, it's less and less attractive. >> and it's not transparent. all you can go on is what the drivers are saying lyft and uber compete. it used to be they would give better incentive to drivers but now they're trying to look good to public markets. they have to get their numbers to investors to look better. i talked to someone at uber who said the amount of drivers off the platform today admits the strike was only 500. that's 1% of drivers in new york city that goes to show you that there's this big divide. there's a group of drivers that are unsatisfied. but they are -- most of them are

driving. >> the lyft numbers last night, you can see how it's hitting the stock today. right ahead of uber's ipo. it might come hours after tariffs are imposed. >> the timing is not great >> totally fine. >> we'll continue to follow this that does it for "the exchange". it's time to join tyler and melissa for "power lunch". we'll see you in a moment. welcome everybody to "power lunch" new at 2:00 today, deal or no deal president trump says china is coming to get it done, but we shall see. we'll tell you the state of play up to the minute plus the trade war is fuelling a lot of volatility into the expectations for growth and corporate profits. why that fear, the trade war fear could force the fed's hand. and disney earnings come out after the bell the stock is up 17% in the past month. should you buy ahead of the results or just hang on and watch and see?