don't look at today's trading activity and extrapolate a story uber is good, bad, indifferent it's irrelevant. >> i told you i'd hook you up. >> i appreciate it, public service announcement >> maybe i'm getting older but you got to be more patient in energy, pxt, i've waited to get in the name, now is the time >> uber is public. "the exchange" begins now. >> thank you, scott. hi, everybody. here is what's ahead an uber disappointment the biggest ipo in years fails to hold its price on the open. is that an opportunity for the investing public or a sign to stay away? we will debate and the clock struck midnight in tariffs on billions of dollars of chinese imports, just went up secretary mnuchin said trucks with china today were constructive but already over. we'll see'tariffs will stick and if more are on the way caught in the trap, how the lobster industry could lose hundreds of jobs over tariffs and is car ownership the biggest long-term threat to uber and lyft it's all ahead in rapid-fire today, but we begin with this

sell-off dom chu here with the numbers. >> the sell-off intensifying less than earlier today because at one point we were down 350-some-odd points in the dow jones industrial average and off about 127. it's negative, yes, but not as bad as it was. we'll see how that carries over into the afternoon session the s&p 500 down by 0.5% look at this overall the past year, this move lower so far has been just about 3% of the downside from the recent highs we have seen, and if you look at one particular part of the dow jones industrial average, remember, the course of this past move here, a 4% move to the downside, we have been lower by the way in the s&p 500 every single day this week, aggregate wise it's been a decent move lower, one of the worst weeks so far this year. however, no one massive panic move, so again, traders appear like with trade they're stepping down their expectations. we'll see if that negative momentum but not panic momentum

continues. back over to you >> dom, thanks very much welcome. i'm kelly evans. let's get right to the stock story of the day the buzziest and most talked about ipo uber opening below its $45 stock price. leslie is at the new york stock exchange where it went down. >> reporter: it's a rare sight to see uber slipping, climbing back over the last half hour or so the question now is whether that upward momentum is actual buying and selling and trading or is it being supported by uber stabilization agent morgan stanley? i've asked sources haven't gotten an exact answer as to what is the cause of the upward momentum that we've seen. it's rare for a company of uber's size and brand to price toward the low end of the range and also rare to see a multibillion-dollar deal fall right out of the gate. we spoke yesterday, kelly, about the command and how it was somewhat more muted than many

were anticipates some thought retail investors could drive the price higher it doesn't appear to be the case yet today on a large scale also remember, uber also has in terms of their cap table a who's who list of mutual funds that invested privately which may have made it harder for them to find that next marginal buyer to push the price up and really get an allocation at a higher price than the $45 a share that they decided on kel? >> lesley, maybe you go back to adt early last year, over a $1 billion ipo priced at $14, closed below that level and at the time seen as an indictment of wall street's underwriting. are people going that far here with uber or does this more reflect the public market's concern with its business model? >> reporter: i haven't heard anyone indict the underwriters yet today. i think some people look at this and say well, uber maximized the amount of money it could raise in the process regardless of whether it was less than what

they could have gotten at the high end of that range, it was about $1 billion less but that said, right now we'll see where it ends today, but unier is a company that really needs that cash in order to wield its ride hailing wars and continue on that path. perhaps the goal might have been to raise the most amount of money possible if this deal closes below $45 a share, you'll have a lot of investors who got $8.1 billion worth of allocation that may not be so happy by the end of the day. >> thanks very much, lesley watching the action for us uber tried to get its stock into as many retail hands as possible for the irngs. o. does this leave the public high and dry or with a big opportunity to get in at a decent price ed lee with the "new york times," john martego, copresident at drexel hamilton and dan premic from axios. john i see you nodding >> i think it's a huge

opportunity. whenever we typically have our ipos, we talked about the unicorps parade going on, the tremendous pop and appreciation on its first opening print this is a rare opportunity that we're seeing today where it broke price on the first print >> is it only an opportunity because it's a dog >> absolutely not, kelly >> if the pros are sort of the smart money don't think it's worth having at a higher price, why should the rest of the public >> i think there's a lot of other things going on with the macro, with china. it's not fair to say that, when the night of your pricing, you also had tariffs slapped on an escalating china war i'll tell you we're waiting for the second half of that trade, that retaliation might come this weekend. i just reminded myself coming here, we woke up monday of this week, during the road show, that they're trying to find that price discovery with the volatility index ripping 40% on monday morning who knows what will happen going into the next week's trading week >> ed, what do you think

is this an unfortunate backdrop and attractive opportunity >> i think it is an attractive opportunity but i'm frankly surprised. the ipos, a lot of it is about advertising. a lot of it is about marketing itself and making sure investors know who they are. everyone's known uber for years and years. the fact it could make that play is surprising to me. at the same time i think there is this opportunity going forward. i think the china trade is a distraction and today's price, wherever it lands it doesn't matter we want to see is this a real business it can turn a per ride profit and a lot of markets can't that has yet to be proven. >> dan, i'll bring you in, on the fact it's ironic, people said lyft is going to go first, that's a good thing for uber how much has that haunted this ipo and lyft itself was near a record low today barely hanging on to the $50 price, when uber opened >> yes, so lyft didn't seem to get a first mover advantage but it did seem to hurt uber, right, because it's the only comp..

pinterest was unprofitable, it was a social network no one knows ride hail can and no one believes it's traditional transportation company so lyft struggles have hurt and also the discounting has hurt. every trader and retail investor who uses these companies has seen these incredible amount of discount offers for the last couple months and they're mentally realizing the companies are lowering revenue with it >> john, you want to respond >> they're all excellent points but the sector itself is brand new, transportation as a service, mobility as a service if you read a touch of the uber prospectus, you had eats, i ordered my son's subway last weekend. >> i ordered last night with it. >> saved my life uber freight, heard kramer talk about the reduction in the fees there and wrup thone that wasn' discussed is uber air and uber elvy i'm not sure if anyone has seen

a rehn vision of uber elevate but it's impressive we'll potentially be able to take drone taxis to work someday. >> it might be a show me situation for a lot of investors. >> where is this going to happen how is this going to happen? >> sure. >> it's smart to have that ambition the narrative they want is think of amazon, they're a platform, we're a platform as well they haven't proven that out yet. still not making money on a per ride basis back to lyft, the fact that uber is crammed out of russia and china, because there were homegrown competitors. there can't be two ultimately if uber succeeds at this portion of their business before they become a big platform, one needs to absorb the other. >> i'm fascinated you brought that up. dan, what do you think lyft couldn't be more attractive from a pricing point of view but will u.s. regulators allow for uber to buy lyft at some point in the future? >> no, i don't think so. look, uber would have bought lyft and said this or kind of privately, they would have bought lyft years ago.

it was completely the regulatory reason they didn't think they could get it through i don't see now that they're both public. these are disappointing listings but still large companies, from market cap perspective, compared to most vc-backed tech startups, i can't imagine regulators allowing a merger between the two. maybe a couple years with autonomous fleets from gm and toyota competing but not now >> on that point, the two might not merge but general motors still is a large holder of lyft, so some weakness in lyft and any auto who wants to catch up in the game, we see tesla testing the cars that wants to catch up quick. >> they can absorb and go into that >> you, john, look at this almost their competitors or the market as effectively now bringing in all of the major u.s. or international car brands who do business. >> yes, kelly and forcing their hand to get involved in this technology, transportation as a service, a new segment, building out that portfolio, china, you mentioned, was sold, uber china

was sold to dd dd is coming strong, developing cars modeling so we can face each other in a car. >> they're the only player in the market that's part of their advantage >> it has stakes in the companies that might themselves, it's a little bit of the yahoo!/alibaba model from back in the day ed, if you're getting involved today and this goes back to the autonomous argument as well, of course it may be the case that in the future, uber and lyft don't need to pay the drivers but we're a long ways off from that. >> again,er this good ambitions but the moonshot ambitions we think about google alphabet they did those things when they were minting money uber isn't in that situation and who knows if they can do that they raised a lot of money now so they've got more capital in the bank to ener these things but it's a hard bet. >> in the regulatory environment and how to push it through, i was listening to andrew's interview and he did mention that the shorter term trips, i take a boat, a car from here to

the ferry terminal it's a ten-minute ride those trips you'll start to see come autonomous. the longer trips, where the drivers will start to benefit, are the longer trips uber, are you going to the airport? no they get a little upset they're not going on a far trip with me. >> you say they're going to the airport, they're like i'll cancel this ride >> shorter trips with less stress and traffic and risk to injury are going to get approved and you'll see that get online first and then you'll start to see that longer tenure come to fruition >> speaking of shorter trips, another place we heard they could disintermediateiate the driver which keeps costs down, using scooters and bikes for the smaller trips in urban markets i could put my parents in an uber i'm not putting them on a scooter. >> for most of the scooter rides your parents are walking f they're in new york, they'll take the subway two stops. the thinking behind the scooters and this is true of the pure

scooter companies, they're generally for mile, sub mile rides. usually you're not hopping in an uber to go a mile generally speaking the issue folks were talking about earlier, huge prospectus on uber and lyft, but they are black boxes. we don't know for example on a ride in san francisco, a four-mile ride in san francisco how much uber is bringing in today compared to how much it was three months ago or three years ago. we don't have unit economics on the companies and if you're an investor, it's not necessarily a huge concern but it's really hard to judge growth outside of that top line. >> yes all right, guys, thank you very much great breakdown of what's happening with uber today. and from here, dan primack, ed lee and john martinko. tariff hikes went into effect overnight and investors are worried another round might be coming. is this just the beginning and which companies are more vulnerable plus what uber's ceo says the biggest competition in the long run and ports could be hit hard as tariffs come into effect.

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at 12:01 this morning a now round of tariffs on $200 billion of chinese goods went into effect and the trade talks happening in washington between the u.s. and china ended at noon kayla tausche is live in washington with the latest on the state of play and does it matter, kayla, that the talks ended so soon? >> reporter: four hours of talks last night, two hours of talks today before the u.s. team bid good-bye to the chinese officials and then we saw the top two u.s. officials, the trade representative and the treasury secretary head over to the white house ostensibly to brief the president and his economic team over there and here was the summary from the treasury secretary on his way out. >> we are done >> reporter: and what were the results? >> they were constructive discussions between both parties. that's all we're going to say. thank you. >> reporter: steven mnuchin using an adjective he's used nearly every round to describe the trade talks.

what will president trump and president xi do? the vice premier said he came here to the u.s. under pressure and also communicated that it really was up to the leader in china to make a decision how to proceed. >> okay, kayla, thanks i thought we'd hear from him directly kayla, thanks very much. kayla tausche with the tick tock there. marx gyrated all day trying to figure out the status of the trade talks with china is. the dow is down about 118 now. are investors being too optimistic we turn to bob pisani on a busy day at the new york stock exchange bob? >> they're optimistic. the key to understanding this is understand the market's refusal to believe there is going to be a long-term trade war, that could be ruinous for both sides that go on for months or years the market has consistently chose on it believe some magical deal is going to be made they're doing it again today, believing these vague comments

that talks are continuing, as you heard steve mnuchin's comment that talks were "constructi "constructive" that set off a 20-point rally in the s&p 500. pretty vague if we kick it down the road another month, that's fine we've waited a few months already. otherwise you know what they have to believe, that a trade war will continue into the election no because it means that global growth estimates and global earnings have to come down they don't want to believe that. as for uber, ten seconds, considering everything that could go wrong, this is trading fine $8 billion dumped onto the market in a crazy week one of the ten biggest ipos of all-time, the biggest money loser of all-time, a lousy showing for its chief competitor, lift, and crazy market volatility, most of the weak hands appear to have come out at the open or shortly thereafter and we've been trading up since then, $44.49. i think they have a run at potentially going positive

kelly? >> we'll be watching that for sure bob, thanks very much, bob pisani let's dive deeper into the impact of the trade spat with china with our trade panel dan griswold director of the immigration program at george university and nathan resnick ceo of sourcify which matches companies with factories around the world. nathan, i want to ask you first, is there a long-term move out of china happening? >> definitely. through the past ten years i've been in and out of china you see factories opening facilities outside of china, in vietnam and in the philippines as well as american businesses now shifting production outside of china, and this has been a continuous trend that is sparked by the trade tariffs. >> greg, in the short term, here's what i wonder who knows, i love your thinking on what you think is happening maybe this weekend with the tariffs. they've gone into effect i thought the market would have reacted more strongly to that.

it's kind of shrugging it off. is that because this round of tariffs is already priced into the market or they think it's a story that will play out in the long run >> a bit of both the last year all these protectionist developments unfolded not just with china but on steel and autos the market takes a beating and comes back because the underlying growth of the u.s. economy is the dominant factor i think that's still the case here even if the tariffs are allowed to sort of take effect as the president said today, the effect on u.s. growth is probably at most 0.2 to 0.4 of gdp which is not good, but it's not overwhelming at the same time, i think as you say, there continues to be this hope there will be a solution. right from the beginning, we've known there are very intent incentives on both sides to get this deal done that is still true but not encouraging that you see these talks wrapped up so early today, and also i think that what we've learned in the last week is that we're starting to push up against some of china's own red lines, with respect to violating

their own sovereignty, and so i'd say although my own bet is we still get a deal, i have a little less conviction than i did a few weeks ago. >> dan, let me come to you on that we heard derek scissors of aei say this, the u.s. is asking china to do something it won't do it won't admit it's been stealing ip and won't agree to substantive changes. are we right to walk away from a potential deal are you worried we'd sign one that has no real teeth >> i agree we have serious complaints against china and intellectual property and how they handle foreign investment there, but these tariffs that the president is imposing are all out of proportion to anything the chinese have done. they're inflicting pain on innocent bystanders. the tariffs are doing more damage to the u.s. economy than anything the chinese government has done these latest round of tariffs will start pinching on consumer goods, furniture and clothing, that's going to take money out

of the pockets of millions of americans. we just heard about supply chains being disrupted, costs going up for u.s. business, and of course the chinese are going to retaliate and that means even less market share for u.s. farmers, for u.s. companies that export to china, which is our third largest export market or was until the tariff war there has to be a better way and there is >> in ason, i'm curious what you see playing out across the business world the one way to avoid the outcome dan is talking about is to source the goods elsewhere it's not so simple are the costs going up, is the quality going down how does that work >> definitely. i want to paint the whole picture here really the businesses that are getting affected are the millions of medium and small businesses that are fueled through the e-commerce platforms like shopify and amazon. those two companies are doing exceptionally well this year these small and mediumized

businesses fueled through the platforms they don't have the capabilities like larger fortune 500 to ship production outside of china as fast so they're getting greatly affected which will impact jobs in america as well as if you look at social media flat forms like facebook or pinterest, to acquire new customers they spend money on the platforms to acquire new custom customers. it's going to decrease their ad spend budgets and really have a greater effect across the whole economy. >> you said a lot of the e-commerce platforms that have been crucial for small businesses dan, if tariffs aren't a good tool, what are better options? we heard sanctions suggested, export controls which would forbid american companies from doing business in china. that would have its own collateral damage to the economy. >> i think there's two tools in our toolkit that we've used to good effect and to work with our allies, china has been taken to

the wto more than 20 times by the united states and every time china has moved in a market reform direction, unfortunately we've kind of antagonized some of our allies on that front. specific legal action, our company has done that against huawei and others, chinese agents stealing intellectual property going after those particular agents that are violating interelectule property instead of the broad trade wars which are punishing millions of people that have nothing to do with us in china and the you sat states >> nathan, i wonder'problem is the scope. we're probably talking about millions of entities in both countries doing business with one another that you can go after the big ones, the obvious offenders but what about everybody else we had a story the other day about chinese factories ripping off a straw that was popular on "shark tank. >> right >> how do you think if you're small and medium enterprise you don't have legal protection, what's the real alternative to

changing this behavior >> right, there's a big misconception out there that a lot of people think the chinese are paying for these tariffs but really it's the american businesses, american consumers that are paying for the tariffs and impacting the millions of e-commerce and promotional product or retail organizations that are small and mediumized that import the vast majority of the products they sell from china and they don't have tariff teams like fortune 500s that can go out and analyze what's going on with the hts codes from the products that they're importing, so the impact is really vast and we're going to have to see what's going to happen as chai into and america comes to hopefully an agreement with these trade wars >> absolutely. guys, thanks good look at what's happening there. dan griswold, nathan resnick and greg still to come, more on what uber's disappointing ipo says about the broader market, if anything does it say we've reached peak ipo?

was this an uber specific ipo or will it turn positive? ins bsr tariffs are trapping mae'loteindustry we're live in maine. "the exchange" is back in two.

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before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. welcome back to "the exchange." shares of symantec are down sharply on a profit warning and unexpected resignation of its ceo, director richard hill will fill the slot on an interim basis. shares are down about 13%.

marriott is lower on a revenue miss the company did say it was able to increase north american profit margins the shares are still down about 4% priceline should see revenue growth sending shares up 4%. now to rahel solomon >> what is happening at this power, a magnitude 6.3 earthquake shook southwestern japan this morning there was no apparent damage from the quake the japan meteorological agency did not issue a tsunami warning. pyeongchang fired two suspected short range missiles toward the sea. the pictures show kim jong-un looking on at the launch steven biegun meeting with south korean diplomatic officials in seoul expected to discuss the

current situation and denuclearization on the korean peninsula. back home, strong storms continue to battle the houston area, leaving streets there flooded for the morning commute. the rain overnight was heavy, sometimes even turning to hail multiple school districts were closed because of the severe weather and another set of storms is expected to hit the area later today that is your cnbc news update at this hour. kelly, back to you >> yikes thanks very much here's what's ahead on "the exchange." >> coming up how lyft is trying to get back in consumer's radars on uber's ipo day. as the new tariffs go into effect, the lobster industry is getting hit hard in more ways than one and what uber's ceo says is its ultimate competition i'm working to make each day a little sweeter.

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welcome back let's catch you up on a few stories that should be on your radar in "rapid fire." here is their takes and breakdown of the headlines, simo modi, bill griffith and kate rogers. what a day it has been so far. >> yes it has been you want me to fall on my sword. monday i said i thought uber's

ipo would be immune to market conditions, i was wrong, okay? i'm not totally convinced that market conditions caused a lot of this selling today for uber. >> i don't think it has. >> let's not forget the ipo itself was five times oversubscribed ben lyft's was ten times oversubscribed and plenty other unicorns are higher in terms of oversubscription the interest was not as strong for the ipo as anticipated >> you said it was immune from market conditions. tell me, i don't see the evidence, just because it didn't trade well today the market has gone a little bit with the market. >> market conditions didn't help the market was down 350 points when it opened it's come back and so has the stock. >> in lyft, too, it is down. it was down almost to 50 a share. >> it did hit 50, all-time low >> and one of the interesting nuggets is even as this whole thing has been playing out in public about the ipos, people have been getting promoted

discounts from lyft senior producer maria bowden got this on her phone, andrew ross sorkin himself. it says you have an offer on your account by the way, take our service instead of uber's. >> i would say enjoy that discount given the market's larger obsession or fixation on this path to profitability, uber and lyft will have to squeeze down their costs and offer fewer discounts. >> and also, i actually anecd e anecdotally did get a discount on my uber, which applied right to the ride. why shouldn't they why not grab some of the attention, get a new new riify s >> every time you get the discount the money is coming out of your other product. the business models have to find a way not all enticing to us >> that was marketing 101. >> i agree let's talk about how retail could take it on the chin with higher tariffs

we have names like dollar tree, big lots, american eagle and five below who could be the most vulnerable the stocks today are kind of shrugging off the tact the tariffs went up at midnight. how hard will the consumer or these companies really get hit >> it depends on where the company gets its goods obviously. the big guys we had a retail analyst on that other show i host >> "nightly business report" saying the walmarts and the targets and costcos will not be affected olive tree and others they don't. >> i think what you're seeing in the market right now, people are not paying more attention to the companies quietly started to decouple from china, and move their production outside to other manufacturing hubs like a vietnam or taiwan. they over the last five years have been slowly reducing their dependence on china and suddenly vietnam has become this footwear

king, so there's a lot of companies that have been taking this proactive approach. the question is which ones are they that will be a big focus now >> if you wondered, kate, you'd wake up the first thing i checked this morning, did it actually happen. oh it happened what is the market doing not that much. >> i think there's hope that it gets settled and this isn't forever. another interesting piece we talk about is the consumer sentiment in china toward u.s. brands i focus on it a lot within the restaurant sector and mcdonald's and starbucks did not have bad performances starbucks in particular comps up 3% in china this past quarter. mcdonald's opened 90 new restaurants, acknowledged it was a tough competitive environment. the chinese consumer is not shunning the brands. we heard apple and softness in sales. >> we're not getting a big response today this has been the worst week of the year for the stock market for 2019, so leading into this it's already been discounting somewhat

>> one place that is getting hit hard is lobster. the increase in tariffs not just hitting retailers here on the land but those lobster catchers at sea we bring in contessa brewer in northbridge, massachusetts don't get clipped, contescontes. >> reporter: i've never heard them called lobster catchers lobstermen >> there are no women. >> reporter: well, you know what we use it like mankind, bill, come on now. this is the lobster mesh that goes into the traps, right riverdale mills where i am supplies 85% of the mesh that's used for lobster traps in north america and steel costs nearly doubled when the tariffs went into effect last march they say there's no way we can pass this cost along we're competing in a global marketplace with china and europe and they're not paying tariffs on this steel they're bringing in. instead they absorbed the cost and looked for efficiencies, they've reduced their workforce by 25%

on the lobster side these guys were just opening the market in china, they were thrilled about it, and then they were slapped with retaliatory tariffs of 25%. the market has all but evapor e evaporated you know who is benefiting, the canadian lobstermen are loving this >> this is bad news, in other words with everything else we talk about is speculativspeculal see, we'll see, but in terms of lobstermen, it's already a job killer >> reporter: it is a job killer and in fact, if you look at this region, 200 people worked at this plant before tariffs went into effect. there's 150. they haven't laid anybody off but 50 jobs fwh thin this area a lot. if you don't have the money coming in from china, you're not buying new traps and paying for this, instead you're repairing them so it's a multiple whammy >> how far are you from home from ho

>> reporter: from home i am but i'm from massachusetts and you can't get there from here >> she's far >> i understand. that would be a long uber ride >> yes >> contess a brewer, thanks ver much, in massachusetts for us. that was a fun angle it's true, that was their big market and now the door's kind of slamming shut let's talk about uber's ipo not what the company was hoping for. the lowest the stock was down 8% but we could turn positive, down about a percent right now. andrew ross sorkin sat down with the ceo earlier who identified a surprising competitor for the company. listen >> the ultimate competition we think is car ownership the car is this ultimate transportation bundle. you use it to get grocery or take your kids to school, et cetera, and we and our competition are slowly debundling what i call the car bundle >> bill, the debundle? >> i love that, calling my car

the transportation bundle. you're not unbundling my car i'm not going anywhere >> the greatest thing that happened to me in the last year and a half was getting back to the burbs and getting a car. it is hot stuff. >> do you uber to the market >> i will uber back to my apartment because i don't want to carry two big bags. >> you got to get a cart >> i don't want to be that person on the sidewalk -- >> i don't have to prove anything to anyone i was a cart person. >> the cart contends on getting up and down the sidewalks, going around people the right way. they're cumbersome and tricky to deal with. >> i could get more from trader joe's. if you're a sima and you live in the city, uber is fantastic and you don't necessarily need a car. i travel all the time for this job and some places i go in the middle of the country, 20, 30

minutes to get an uber and i always rent a car because you don't have the access. >> however, we're talking about an urban area where, that's a finite geographic area and you'll hit a ceiling, a growth ceiling at some point. to continue to grow t you either have to diversify the revenue stream which they have done, getting into trucking and all that, but to expect a complete unbundling of the transportation bundle there, where those of us in the suburbs are going to take an uber to the doctor or to the market whatever, that's not going to happen. >> it's a pain they talk about total addressable market there's a difference between dense areas and ones that aren't going to change let's not move on before we talk about a tough story or party city it turns out there's a huge helium shortage. this has been true for a while it's causing this party supply chain to shudder, 45 stores across the u.s., because balloon sales have deflated and it's more than just party balloons.

helium has medical uses, being a key part of mri scans so the industry is asked to prioritize it for health obviously and not for balloons >> i learned something today >> me, too >> same. the importance of helium >> it's not a renewable resource once you pop the balloon and away goes the helium, it's gone and there's only so much in the ground in there, so i'm all for doing away with the balloons and using it for medical or whatever >> i almost got one of these at the grocery store the other day. i had no idea that i would be drawing on something that was in such short supply. >> certainly and party city ceo said they closed between 10 to 15 stores a year this is a large amount of stores i agree with the prioritizing of the resource and what it's being used for i had no idea we were facing a shortage >> maybe we have to get creative how we plan our parties and decorations. >> i wonder if some alternative i'm sure people would know to filling balloons with helium or coming up with some other way. that would be a trade talks

break-through if they can solve the balloon shortage guys, thanks appreciate it today. shares of uber are down but only slightly now. what market tea leaves could investors read from this debut we'll talk about that coming up. stay with us global markets,eat of 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 to "exchange. yelp is falling 15% after issuing unique guidance and sending visitors to its desktop and mobile sites declined in its first quarter earnings report. shares of wynn are down cited a drop in casino action in las vegas and macau. it's a different story for zillow, shares holden on to a 6% gain after beating on the top and bottom line last night the company also reporting a quarterly increase in home sales of nearly 200%

some have already been using a work-around to skirt taxes jane wells is at a port in california with more jane >> reporter: yes, kelly, news flash, it's raining here, but what happens when prices go up people find a way to make them go down. coming up, we have new trade numbers which masuri yy rpseou and a country that is benefiting, which is neither the u.s. nor china, when we come back

welcom welcome back to "the exchange" and check out this turnaround right now some positive trade comments from secretary mnuchin we briefly turned positive half an hour ago, a tweet from china's global editor in chief, saying trade talks didn't break down and the u.s. and china agree to meet in beijing in the future not just a tweet but a report. the dow is now positive by a point. 350 point turnaround tariffs on goods from china did increase at midnight but importers had been already coming up with clever tactics to work around them jane wells out of port at san pedro, california, with how. jane >> reporter: new trade war numbers and a couple of surprises. first the negatives.

chinese are still not buying our stuff, partly due to a drop in recyclable material but u.s. exports to china down 19%. a $6 billion drop with a hit to u.s. gdp of 0.04%. hmm. but i want you to take a look at these numbers. i find them more interesting overall, container traffic here at the nation's busiest court complex is up year-to-date because imports are up, meaning tariffs are still paid look at this across the country, despite the drop in u.s. cargo to china overall, u.s. loaded exports are up 0.3% and somebody is buying our stuff and our american consumers paying a price for the trade war? depends what you buy but inflation over 2%. companies doing a workaround so they don't have to pay tariffs at all. >> the chinese factory might own a production site in vietnam they simply move the production from china to vietnam. the chinese factory still makes the profit, but the u.s.

importer is not taxed because the goods coming out of vietnam. >> reporter: his fortune 100 companies are paying more for goods and walmart, amazon paying a billion in tariffs not china, walmart and amazon. these new higher tariffs meaningfully impact them stay tuned. >> i think that's interesting. when you say workarounds, do you basically mean, sure, it's still made in china but they send it to vietnam or some place they do a little bit of work or maybe they don't even but they stamp it from there. >> reporter: or maybe they even outsource and have it made in vietnam. it's all of this gamesmanship. didn't have a port of call in the mainland but it came from taiwan all of these companies have been planning, either front loading their imports or planning ways, but it costs money and takes time to refix, to fix your

supply chain if you do it. >> meanwhile, so the port, if it's just worried about losing business overall from this you're saying not so much. >> reporter: oh, no. ports of traffic are coming in and out. >> thanks, jane wells in california. shares of uber are slightly lower in the first day of trading. the real news is they've priced lower. we're off session lows but we'll talk about one of this mega ipo with a top in the silicon valley race to go public. michael santoli and dom chu weigh in on that next. all in one place. because when it's decision time... you need decision tech. only from fidelity.

welcome back uber opened at $42 a share below its ipo and back up around 44 and what does this debut and joining me are michael santoli and dominic chu. all right, mike, i need the hot take from santoli on this open today and ride hailing to some degrees.

>> reporter: i wouldn't say sentiment towards the nasdaq or necessarily ipos if you look at pinterest, totally different kind of business model and similarly anticipated name it's traded very well. i think you need more than one deal to open soft before you basically say, you know, silicon valley was yesterday's news. and prominent example of the ride sharing business model. >> so here, i would say what mike said and go one more step beyond that and i would say that the conversations i've had throughout other folks in the business today is that it's not so much an indicator about

sentiment in the marketplace and mike said specific to uber, but i would say the market sentiment is not as affected by uber but trade tariffs 4% off the highs but much more about what people saw with lyft so well ahead of lyft, you would not have seen seen this price action but maybe one or two years ago, and then 100 plus billion dollar range >> what conclusions to draw other than the fact they don't like this business model, any others and are we talking about airbnb?

>> whether it's new ipos or existing companies, these magical software driven platforms with network effects not the messy stuff of moving stuff around or moving people. and arguably old business trying to pretend they're something new and doing it with a lot of leverage that might be its own animal though >> totally >> not just that, if you look at p palentier, if you look at a stock like pager duty. i mean, significant lly smaller but an understandable business model even though people don't know exactly what it does or how it does it >> right, security >> the security aspects. >> and working with the u.s. government a good long-term business to be? >> absolutely. we've seen that kind of thing.

parsons is a good example about the government contractor as well as we talk about this bifurcation in the market, it does come down to whether people feel comfortable with a non-disruptive business model. >> thanks, great stuff dominic chu, michael santoli see you for more in a bit. that's it for "the exchange. i'll join bill and deirdre for "power lunch" that starts right now. >> thank you, kelly. i am bill griffeth deirdre bosa is with us this hour new at 2:00, stocks bouncing back despite the u.s. slapping more tariffs on china and speak with the man until two weeks ago was the white house lead negotiator about whether a trade deal can still get done. for investors, it comes down to what it means for the market and the economy. break that down for you as well. uber trading as the public company below its ipo price. where the stock goes from here coming up. "power lunch" starts right now