footprint very defensible. >> have a great weekend. >> colgate, unusual call activity >> okay. following the options activity >> illumina, this stock is up. i think it's going higher. >> doc >> loved you in sons of anarchy. "the exchange" begins now. thank you, scott hi, everybody. here is what's ahead this hour what a wild week it has been everyone saying tariffs could be an economic disaster, but the markets are now telling us maybe that won't be the case we'll talk about who has this right. there is one place that is really taking a hit, though, and it's america's farmland. we'll go into the troubles hitting deere and how tomato and avocado prices are being affected could endless content options and rights create a big problem for the industry we'll debate that. we begin with today's markets and a big turnaround seema mody has the numbers

we are off the worst levels of the session with the dow returning into positive territory. pacing for its fourth straight week of declines, that would be the first time in three years for the do you we'll see if it returns in the green. s&p 500 and the nasdaq still trading in negative territory. part of the equation has to do with earnings, lackluster numbers from deere comments around china, and that's sending a number of its peers lower. 3m, caterpillar and dow lower by around 1% to 2.5%. utilities are higher for the week as are the consumer staple sector today up just about 0.1% for the week higher by 1.2%. kelly, back to you >> thanks. and welcome to "the exchange." i'm kelly evans. big developments on the trade front today. the white house officially

saying it will delay its decision to impose tariffs on imparted cars. the eu still rejects the notion their car exports are a national security threat. sources telling cnbc the white house could lift steel and al aluminum tariffs today u.s. consumer sentiment today for may surged to its highest level in 15 years. bob pisani is down at the new york stock exchange. bob? >> reporter: and we're holding on the good economics you talked about and the trade talk hopium. we had word from the white house they were delaying auto imports tariffs. after all these trade disappointments it's getting tougher to do the trade hopium sell look what happened, we're not getting the bounce from the industrial stocks.

seema mentioned this, all these stocks aren't doing anything today. normally they would. now they're not. intel had an awful month on very, very poor guidance overall. that's been a problem here one of the trade sensitive groups that's had an awful week is finally bouncing but the damage is done macy's, kohl's down 2% to 4% gap down 8% this week even with the move to the upside we saw today. kelly, luckin coffee going public opened at $25. priced at $17. still at $21 one store 18 months ago. today 2,300 with a market valuation of $5 billion. how does that happen in 18 months >> it's mind-boggling. bob, we'll have more on that later. bob pisani we've been hearing all this doom and gloom over the trade war with china all week. the market is telling a different story. the major averages are barely even lower for the week now. so the question is how damages are the tariffs going to be? let's bring in the ceo of zoey

financial. president of james investment research and head of investment strategy at aerial investments welcome to call of you charlie, i'll begin with you as bob said, we have done a lot of damage. parts of retail are down 6% to 8% parts of sector down more than that this week the trade talks have completely collapsed and here we are sitting higher and no one seems that concerned what do you make of it >> i think the general view, which i happen to agree with, both sides want to get a deal. you wouldn't be at the table, you wouldn't have so many people spending so much time on this if both sides didn't know it was in their best interests to get a deal donald trump wants a better deal but he's on this point not a dummy. he knows that trade is important to the u.s he knows farmers need to sell dwoodz there are a lot of farmers

the next couple months could be very bumpy >> you're saying it's not because they don't think there will be damage but people think there will be a resolution barry, do you share that optimism >> well, it's kind of twofold, i guess. there's inflationary and deflationary pressures that come like kohl's would have to raise prices 2.5% to offset the tariffs. we've seen a fall in the area of the major exports from the agriculture area there are pockets that are getting hit hard including cops like intel it's a hard thing to really pick

which stocks will do well. it's best to avoid those things that have a major china impact and focus on the states. >> as you try to game this out, do you think we are still headed for a deal and so investors have the hopium bob pisani has been talking about, or is it they're saying, okay, even if these stick we've already reprised for that >> if you look at the market, we're flat before this monday's blood bath the market is saying the probability of something going wrong is the same as last friday from that perspective it doesn't make sense to me the risk goes up the risk did go up i often look at what not just the equity market. the equity market has bounced back more strongly than the

credit market. i'm looking at what other assess classes are doing. >> you see the drop in bond yields pointing to more damage than equity. >> i do tend to see if the bond markets are following and i think the bond markets read it more as i would. the probability of success has dropped a bit. >> charlie, do you think he's right in that and what about the idea the president has more and more support taking a tough line with china if they're not -- if we know they're not going to change behavior and a deal will not have elements of it, it's probably not a deal worth having if the president maintains a tough line it doesn't sound like that is a great sign for them coming to the table. >> i'm glad you brought that up. jim cramer was on this morning saying he's hearing from ceos

saying they want to stop trade and that's not what i'm hearing. there's a lot of support in the management community that we need to fix some things with china. they have been an aggressive trade partner. someone called them a predatory trade partner. i think there's a lot of support in the business community for a relatively tough negotiating stance because, frankly, we have a very strong economy. consumer confidence the highest level since 2004, low unemployment now is the time to take a tougher stance >> is that really going to result -- i think it's interesting because if you still think there's a deal, i don't see how it includes one that changes this behavior we're talking about. >> because we are their biggest customer this is like, as i said last night on another program on cnbc, we are china's biggest customer we're like walmart to coke if you're somebody's biggest customer, you can make some requests sometimes you can even make some demands. and that's what we're doing right now. somebody who is very important

to china >> barry, you have some stocks where you said, look, if you, as this is playing out, look elsewhere. even a stock like kroeger, it would seem to me, would be severely impacted by this, right? >> it could. maybe in a positive way. kroeger could improve their margins. it's selling fairly cheap. they've been buying back shares aggressively there are a lot of things to like about a kroeger i like verizon the sales are here it's a cash generating machine and with huawei getting a kick in the pants, if you will, there are some students for verizon. >> and charlie, you like the nonindex names >> we like kkr and blackstone. blackstone is convert to go a corporate structure so everybody can buy them

great businesses we love the alternative. >> finally on this what do you think the damage has been and where does it leave us as we go back >> as i mentioned the last time on the show i think we are going to see a recession, that it will be self-inflicted. if we see a recession it's not going because because of the china trade tensions it's something domestically. somebody mentioned here that portfolio companies are saying, you know what, we agree with the idea of going hard on china. watch for a lot more earnings guidance saying, you know what, the china situation is hurting our earnings this year as a way -- >> to be super conservative. guys, thank you all. great stuff. appreciate it. have a great weekend here is what's still coming

on "the exchange." coming up -- oh, deere. the farm equipment company falling as the trade war hits its bottom line. is this a warning sign for investors? a lucky opening for luckin a look at this new ipo and the threat it could pose to star backs. and as our attention spans get smaller and our options get bigger, are we go to witness the downfall of live sports? we debate. this is "the exchange" on cnbc ♪ lower calories. ♪ higher expectations. the light beer you've been waiting for has arrived. corona premier.

welcome back one place that is certainly feeling the effects of the trade war and tariffs are america's farmers. tomato growers are one of these impacted groups. jane wells is live with more on this story jane >> reporter: half the fresh tomatoes we eat come from mexico the rest come mostly from florida. florida blames mexico for dumping tomatoes illegally they have reinstated an old 17.5% tariff mexico says, prove it, we're not doing that it's suing the commerce department and saying they are no longer shipping north because their operations with not afford the cash bond while this issue is being decided what does this mean for you?

tomato prices are up 2% since this started companies like chipotle buy millions and millions of pounds from mexico. they say so far since we contract out we're not expecting it we don't plan to raise prices. the commerce department and mexico are trying to hash out a new deal no luck there yet. >> we're talking about the big trade deals that may or may not happen and whether tariffs are coming off today as a result of that this has been totally under the radar and had a huge impact. we wouldn't have even known about it it tells us there are so many of these issues coming up, aren't there? >> so many >> reporter: this isn't even part of nafta. this goes back to the '90s

particularlytomatoes now florida claims mexico is not playing fair and so we have mexico -- here is an interesting thing, kelly unlike china where the president is saying the tariffs are going straight to the treasury, not in this case. they are being paid for, covered in a cash bond in escrow until the situation is divided if a court rules that the tariffs aren't needed they get reimbursed plus interest it is such a complex issue it's hard to explain without getting into the weeds, so to speak. >> no weeds. i will be looking more closely at my tomato prices. thank you very much. jane wells in l.a. for us. let's stick with trade and farming and shares of deere which are down today after reporting an earnings miss for the second quarter the company lowered its guidance for proved and equipment sales a machinery analyst at jpmorgan downgraded the stock on tuesday

to underweight and cut her price target ahead of today's results. that's always dangerous, welcome. >> yes, it was dangerous but timely we thought at the time. >> what gives you such con vision >> we started with the trade tariffs. i think what investors missed was this notion that tariffs might disappear and all things would be okay again. we're going to be left with almost a billion bushels by the end of this marketing year and then compounding that you have the south america growing a record krob whether it's beans or corn and a strong dollar so when you put everything together and add on top of that the wet weather in the midwest, things are not looking so good above and beyond the tariffs

>> some have said maybe they can use the soybeans in the u.s. and we'll get them at low cost but i can see your point that doesn't really help the farmers for all and for deere sets them for the whole calendar year. do they just have to wait this out? >> that's what they said, they have to underproduce repail in the back half of the year because their dealers have too much inventories and they have no visibility into 2020. we don't know whether things will be right size because there's so much uncertainty out there. this is when things should be seasonally strong. >> you do like adco? >> adco does not supply much of the crop sector. it's more of a south america play we felt it had gotten thrown

out -- the baby with the bath water kind of thing and the valuation was not as leveraged to the u.s. crop >> thank you for joining us. coming up, a tale of two plunges. bitcoin suffering its biggest interday decline and baidu on pace for its worst day in over a decade a closer look at what's behind the losses plus, it's a generation that was supposed to give the housing market a boost that boost may never come. we explain why ahead at's a targ? 529 plan? a 10-k? what's an etf? an ipo? 401(k)? where do i start? empower yourself with the free tools and resources on investor.gov. before you invest, investor.gov.

more than $27 billion of gold to their holdings in 2018. that's an increase of 74% compared to the previous year. in times like these, it just makes sense. gold is considered the world's oldest store of wealth. so, when the concern is that stocks and bonds may start losing value, smart money managers and world banks often look to gold as a hedge, or safety net, to protect a complete portfolio loss. and this is just one of the reasons that many experts predict the next gold rush is just beginning. you know, there may never have been a better time to start diversifying your assets with physical gold and silver, and right now it's easy to get started. just pick up the phone and call u.s. money reserve. with more than a total combined 500 years of experience in the precious metals industry, u.s. money reserve is america's gold authority. philip n. diehl is the president of u.s. money reserve,

and he's widely recognized for the innovative coin programs he created while serving as the 35th director of the u.s. mint. among those programs are the 50 states quarters, and the platinum eagle. - if you bought gold in the past, or would like to learn more about why physical gold should be an important part of your portfolio, simply pick up the phone and call to receive the complete guide to buying gold, filled with new and exclusive information, including the official precious metals guidebook, the diversification strategy guidebook, and perfecting gold ownership, which will provide you important, never seen before facts and information you should know about making gold, silver and platinum purchases. - pick up the phone and call america's gold authority, u.s. money reserve. with nearly two decades in business, over a billion dollars in transactions, and more than a half a million clients worldwide, u.s. money reserve is one of the most dependable gold distributors in america.

welcome back to "the exchange "here are some of the movers this hour. shares of tesla are sharply lower by 4.5%. the ntsb saying the company's autopilot system was engaged during a fatal crash of the model 3 on march 1 making it the third fatal crash in the u.s elon musk saying he will scrutinize expenses in an effort to further cut costs under armour is higher to overweight from neutral at jpmorgan, this on the heels of their meetings with the ceo and management team which they said emphasized focus on innovation and a stacked pipeline shares up nearly 8% now. applied materials on both the top on bottom line now to sue herera for a cnbc

update >> here is what's happening this hour officials are getting a better look at a crash site where a plane crashed into a warehouse on thursday. the pilot who ejected and 11 others on the ground were injured. >> anytime you have an incident like this we have to make sure that we secure the area to protect those that are working in the area and those that are working to recover the aircraft. >> according to a south korean newspaper, samsung has solved issues with the foldable screen that delayed the launch of its galaxy fold smartphone it was scheduled to be released last month the company is expected to announce the new release date in the coming weeks and the internet celebrity grumpy cat, the face of countless memes, has died. her owners confirmed she died on tuesday due to complications from a recent urinary tract infection.

grumpy cat shot to fame in 2012 due to her permanent frown she had more than 2 million followers on instagram grumpy cat was 7 years old you are up to date that's the news update back to you. >> rest in peace, grumpy cat thanks for providing us seven years of entertainment and diversi diversion. sue, thanks. let's take a look at baidu and bitcoin. bitcoin wiping out $21 billion in market cap the past 24 hours. baidu on pace for its worst day in more than a decade. seema, starting with baidu, 15.5% drop for the google of china. does this tell us about what's going on with the chi? >> it's interesting because the data out of china is not always that reliable, the market tends to put a lot of importance into these chinese tech companies that have such large penetration across the country it is the largest provider a company that misses expectations is a big concern. the company also talked about in

their earnings call which i had to read this morning because it started at 9:30 p.m. for us in new york, but talked about how they're scaling back on investment until the second half of the year when they expect china and the government to unveil new efforts everyone is waiting to see what the government will unveil, whether it's an interest rate cup or a tax >> this has been the faang trade. is baidu alone in this stumble >> baidu down significantly today but it's brought down a number of its peers, all significantly down today they've had a good run except baidu has been the big underperformer government restrictions indirectly hurt baidu as well. the medical industry in china is starting to scale back on on line advertising >> they have issues. let me ask you about bitcoin what happened with this crash? >> bitcoin always generates this

debate between the believers and the naysayers. this is profit taking after what has been a monster run up 40% in the month of may and up 100% bit stamp is an exchange that basically brought down the market with it resulted in $200 million in liquidations the concern there it's just one of another example of how bit stamp among other exchange have to evolve and create more mechanisms to ensure this level of price fluctuation doesn't happen they haven't gotten there yet. >> it's the name of the game you want to get in, get out, this is volatile enough. seema, thanks. here is what's still ahead on "the exchange" -- coming

up, losing pinterest the stock crumbles after its earnings what went wrong? the multimillion dollar battle for last-mile delivery california back tracks on suing over your personal data. and desperate times call for desperate measures in hiring it's all ahead in "rapid fire.

dear tech, you've been making headlines. smart tech is everywhere. but is that enough? i need tech that understands my business. i need tech that works at scale. dear tech, dear tech, dear tech, we're using ibm blockchain to help make sure food stays fresh. we're exploring quantum to develop next generation energy. we're using ai to help create more accessible health care. we're using iot to create new kinds of digital wallets. let's see some more headlines about that. let's expect more from technology. let's put smart to work.

welcome back, everyone let's catch you up on a few stories that should be on your radar today. it is time for rapid fire. welcome. first up, pinterest sinking after reporting a wider than expected loss. kind of a fun story -- not fun for pinterest, the worst session since going public but a great ipo performers the low end of the forecast came in below expectations. we were down 15% last night and now down ten it was up 15% from the ipo before this. >> we had seen significant gains. i think what is really interesting is the fact international growth is so strong it seems this is a company that will live or die by its growth

this is a company showing such dramatic growth overseas and we see there's still room to run internationally. that will be crucial >> julia is bullish. >> we'll see how it does over the long term. >> i don't get it. i still don't get it >> if i say i'm off social media but still use pinterest -- >> i think if you're public. you can make your boards private. >> i need to pick a paint color. >> when you're looking for recipes as you're always telling me >> how do they grow you beyond what you said, your new house, your wedding or baby shower, how do they keep you coming back for more >> what analysts will tell you, they need to increase engagement other platforms use direct messaging but they aren't doing

that right now >> that's exactly it peeve are coming on to pick a paint color but they're not necessarily staying over the long run the question is whether they can turn it into something like a magazine. >> the most useful thing is make it easier to buy the stuff i see on pinterest i saw this mirror i wanted, black with rounded corners the lengths i had to go through. >> they are working on that. that does seem key the advertisers would benefit if they could make it easier. >> we'll probably pique pinterest when bill gets on. >> that will definitely be the pique. >> be sure to tune in because jim cramer has an exclusive interview with ben silbermann around 6:00 p.m. eastern time. amazon is backing startup deliveru and leading a recent funding of half a billion dollars. it brings the total raised to

1.5 billion. door dash just three months after it raised money, $7 billion valuation. >> the information says door dash has surpassed uber and has a 30% market share it has this partnership with chipotle, walmart, their business continues to grow and grow the question is if and when they start making money >> i'm impressed they're still able to raise this money so quickly. >> the list we unveiled on wednesday, a part of that is they have such broad reach to 8% of the country it seems the reason they're raising money is not because they have to but because they are raising money to fuel their growth there's a little bit of a land grab going on now.

there are so many rivals and it's important that we try to lock down the restaurants and even consumers, making sure that's the app they have on their phone. >> still, we've been here before, bill we saw the same rush with uber and and the early competitors. >> delivery is what it's all about. it's not what you sell, it's how you sell it and deliver it the local dry cleaner we've used for years just changed hands at the end of last year and the brand-new owner just this week implemented a new service. guess what, they will deliver and pick up your laundry >> we have that service, and i think it's the best thing since sliced bread it's wonderful >> i have it, too. >> it's an easy fix but he's looking around saying, delivery, it doesn't have to just be fast food other products can use it as well >> i am all for it everyone, you can jump on this boat a proposal that would have expanded the ability for consumers to sue companies for violating the state's new data

privacy law. consumers can file complaints over alleged violations of privacy rules but can sue over a data breach. is this a way of protecting these companies, julia you spoke with facebook earlier. >> i think this particular ruling today -- or the fact it was a slight win for the tech companies but i think this issue is small compared to the other issues going on now. we are expecting legislation in part because it will be so hard to deal with the patchwork of so many different privacy rules and the ftc and potentially implement oversight. >> first blush they should not allow individual people to sue the facebooks on the data breach

situation. we already have enough litigation out there this is a failure of regulators out there. if you want an aggressive attorney general to sue on behalf of users, that's one thing where you can consolidate into a class-action suit to allow individuals to sue i think complicates things >> what did sheryl said? >> she said they would do a number of thing things her message was they understood this wasn't a priority in the past and they will give up near term revenue because they understand they have to preserve for the long term. >> sheryl sandberg, the ceo, what caught my attention is the very first thing about the survey monkey results.

take a listen. >> a senior man is nine times more likely to hesitate to travel with a woman and six times more likely to hesitate to have dinner with a woman and the problem with that is women already weren't getting the same mentorship, particularly women of color and no one has ever gotten a promotion without a one-on-one meeting. if there's a man that doesn't want to have work dinners with a woman, he shouldn't have them with a man group lunches if that's how they feel >> is that the answer? group lunches for everyone this seems like the movement is backfiring the way to solve this is to have more women in leadership roles how do you get there if you can't have a one-on-one meeting? >> she is saying if that makes them uncomfortable don't give men preferential treatment men are refusing to meet one-on-one or mentoring because they're afraid of repercussions.

she pointed out you can have lunch in a public place with someone and not have to worry about that that men are overcorrecting, that is really bad for business at the end of the day. >> i traveled for years, power lunch. we would take it on the road and i often had a woman field producer with me at all times. this was way before me too the mentoring issue is an important one whether it's a man mentoring a woman or a woman mentoring a man. >> it might be overcorrecting. i think you have to take it upon yourself to ask yourself are you one-and-ones you need to offer the same opportunities. i think that's what sheryl said. group lunches seems to be a good place to start

>> this should not be fear of recrimination should not be something that keeps men from mentoring women or having meetings one-on-one with women. >> that's my bigger concern if you want to advance women in the work place if you can't talk to them. >> exactly >> this is a fun one, with the tight labor market, restaurants are getting creative mcdonald's, starbucks and chipotle have tuition programs taco bell is hosting hiring parties. >> that's right. they had 600 of these across the country. they basically said they saw 41% increase in in-store applications year on year. they know the labor market is tight. they want a fun and interesting way to attract new applicants to the brand and really quickly -- >> what are these parties like >> they're just breakfast, coffee, taco bell executives -- >> what do they serve? >> they have full breakfast menu >> morning parties

a taco bell with pulsing music -- >> it was not a club setting i also talked to a dunkin group that created its own training. it cut its turnover in half from over 100% to just about 60% or so >> a story you'll see on nightly business report. >> there's the plug. thank you all. have a great weekend bill and julia kate, we will see you in just a moment language learning app can teach you how to speak french, spanish, and even bill know what is that is but i don't it's a "game of thrones" thing we'll talk autbo how learning has led to their success that's next. ing. you're right sir... everything. no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir. always three steps ahead. six steps ahead. sixteen. so many steps. you done? a million steps ahead.

servicenow. works for you.

onmillionth order.r. ♪ there goes our first big order. ♪ 44, 45, 46... how many of these did they order? ooh, that's hot. ♪ you know, we could sell these. nah. ♪ we don't bake. ♪ opportunity. what we deliver by delivering. welcome back duolingo is one of the most popular learning apps and gamefying every lesson it's the top grossing education app in the u.s. and worldwide and is free.

the growth propelled the company on to our disruptor 50 list coming in at 28. joining me now is the ceo and co-founder luis, welcome. >> thank you for having me >> tell me how you made -- married addiction with learning in a good way. >> well, learning a language is a lot like going to the gym. everybody kind of wants to do it but it requires a lot of effort doing so and sticking with it so what we did, we decided to make the app feel as much like a game as possible when you use duolingo there's a lot of gamefication aspects. it gives you points every time you use it each of the sessions, each of the lessons, takes about three minutes. it's very short and there's a lot of different aspects of animations that makes it feel like you're playing a game it keeps people addicted >> are we going to see this in the classroom? do you think this approach to learning could go beyond your

app? >> it already is about 25% of the language classrooms use duolingo in one form or another. i think that's already happening. the purpose is not to replace the teacher but instead of doing homework they would use duolingo for like 30 minutes. >> how do you make money >> one of the key things that we did early on we wanted to make duolingo free for everybody. we wanted to make it so anybody who wanted to learn a language could on duolingo. about two or three years ago the first thing we did we put an ad at the end of every lesson that ad actually gives us tens

of millions of dollars and then we added a subscription you can do a few other things. one key thing we're most proud of it's now the top grossing app in the education category in the world but we don't charge for the content so you still can learn anything for free and even then we still make more money than the other apps. >> this all sounds high brow and helpful until i hear there are more active learners "game of thrones," is this a gimmicky move here >> we added high valyrian. the only native -- the only fluent speaker of high valyrian

decided to help us add the language to duolingo is not the only constructive language we have we have klingon from "star trek" but high valyrian is popular of late and i don't know what to think about the fact there are more people learning high valyrian than irish >> i'm going to stick with spanish for now. that's all i can handle. luis, thanks very much congrats >> thank you lichtensteig luckin coffee 5 it's come back down-to-earth at $21 now. it's the latest company like that to go public. we'll talk about what the first day of trading means for starbucks in china and the broader ipo pipeline next. get it.

get it. get it! get it! crowd chanting: get it! get it! get it! (crowd groaning) (crowd cheering) narrator: give your town a reason to celebrate because every goodwill item you bring home, brings job training and more to your community. goodwill. bring good home.

listen to your mom, knuckleheads. hand em over. hand what over? video games, whatever you got. let's go. you can watch videos of people playing video games in the morning. is that everything? i can see who's online. i'm gonna sweep the sofa fort. well, look what i found. take control of your wifi with xfinity xfi. let's roll! now that's simple, easy, awesome. xfinity xfi gives you the speed, coverage and control you need. manage your wifi network from anywhere when you download the xfi app today. welcome back, a nice debut for luckin coffee, shares are surging in its public debut trading well above the ipo price of $17 per share with just around $21 right now it's the rival to starbucks and is the largest u.s. offering by a chinese company this year. for more let's bring on leslie picker

a new 52-week high, trading around $85 a share is still up >> they call china home, right? >> second home market. one day, it should surpass the u.s. in terms of the number of stores they have about 3800 or so locations there but luckin is said to pass them if all plans come to fruition this year because looking under $5,000 by the end of the year. starbucks have been there for 20 years. >> so how much capital they've raised, leslie >> $614 million in proceeds. that includes the private placement and this ipo i actually have a theory that what's good for luckin may also be good for starbucks because here you have a population of a billion people traditionally tea drinking group of people, and i was talking to one source who says on average, the u.s.

consumer drinks 300 cups of coffee a year, so there's very low penetration, but as we know, coffee is quite addictive. if you can bring them in at a lower price point, it could be good for starbucks as well. >> this cutback, interesting straw hole that made it kind of hard to drink. it's the drinking spout, but a little big. >> analysts say these are two different offerings. one compared to like a dunkin donuts model a lower price point. and building out mobile order and pay. delivery partnership with alibaba and offering two different things and one doesn't necessarily need to be successful while the other fails. >> did you hear some of the offerings they have? americana with orange juice at

luckin coffee. so when you're there, i want you to try it. >> anything with orange juice is pretty good in my boat. >> drink them both for breakfast. just put it together major media companies pouring billions of dollars into live sporting events but increasing social media ckg le orns, is the clock tiinonivspts we'll debate that next ) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade. i cowe can do theyour screening at her house. hi.

this is the man that's going to check your eyes grandma. cognizant ai solutions are helping healthcare companies advance diagnostics and prevent blindness in patients with diabetes. everything looks good. you have beautiful eyes. ♪

80 years ago today, nbc sports broadcast the f televised sporting event in u.s. history. a baseball game between princeton and columbia princeton won 2-1 in the tenth, by the way, for you college baseball fans. fast forward to today, i love that old footage, but here's the new, the now, the pga championship under way drawing millions of viewers over four days of play and spending millions on rights for sports broadcasts because they depend on them for a large enthusiastic audience to tune in live are the boon for live sports coming to aenn end? he said the clock is ticking for live sports and george pine, founder of sports capital and

thinks sports will stay king hi guys. since you're the antagonist here, why do you think live sports, as you say, is about to decline? >> i love live sports. i watch formula one religiously, but the direction and force of the trends we see don't make the margin model sustainable anymore. you have the seismic shift in the way content is consumed and demographics in the last two decades, we've got 15% to 20% increase in the average age of viewership. 50% of our time on smartphones and e-sports, gaming, short form content and not only cheaper to produce but accelerating, taking consumer mind share. so what happens. >> hold your response for one second breaking news on trade kayla tausche, what's going on >> the official joint statement between the u.s. and canada on this deal that was reached to end steel and alum nuinium.

canada will end its retaliation against u.s. products, the two sides will drop all lawsuits brought at the world trade organization on this specific metal tariffs issue and canada will have an enforcement mechanism to block the transshipment through its country from places like china to the united states and if there's an issue of oversupply in the future, they could potentially open up new consultations or negotiations on this matter. this is a significant cease-fire between the two countries. the tariffs have been in effect for close to a year and it is expected to be the road block that's removed that, allowing the usmca deal to go forward. >> thank you, kayla tausche. and george, if there was a

decline in live sports, it would be a disaster for the traditional media companies, right? >> that's right. but still right now, the top 100 programs, sports is still highly valuable >> it might be highly valuable the question is, i guess k they continue to drive eyeballs or advertising dollars? is there some reason you think it won't, james? >> the trends you're seeing, the whole model predicated on the customer fees and advertising. now those markets separated. content specialists and advertising specialists like facebook and google. with the separation of owers, essentially, it's difficult to be able to aggregate the kind of content and viewership that you need to keep driving those numbers. >> what about facebook and google, george if all the advertising dollars are going to these internet platforms, does that mean it's because where the consumer is and that's, in there, sometimes you hear the rumors they want to get involved in sports >> $70 billion on live sports is

significant. so yes, it will be a change but it will evolve and won't be a revolution look, major league baseball made a big deal with fox and nfl did with fox and wwe, all had major increases. the next three to five years, nhl, pga tour, all going to market and in my guess, they'll do quite well. so yes, it's going to be a change and aggregates live audiences of engaged consumers in a way nothing else does. >> what about an example of a new streaming app that, for boxing, maybe a few other things, it's just now getting traction >> it's a little early to say but huge rights for boxing paid $300 million for short form content for baseball so the value there is in sports, the distribution channel is going to change. the economic model will change and i think unclear how it plays

out. >> thank you both. appreciate it. james, chuck that does it for "the exchange." i'll join bill and courtney in a moment for "power lunch" which begins right now. >> thank you, kelly and we'll see you in a moment. i'm bill griffeth. courtney will join us coming up. a fluid situation right now. we'll get to that coming up here investors brushing asidie negative news about trade talks with china and positive headlines coming out of dc but are investors being too optimistic now, if you're wondering what to do with your money in all this volatility, watch ultra wealthy. they are moving to cash levels, not seen in years. but there are five stocks that they love right now. we'll name some names and amazon is going after uber in the delivery area making a massive investment what it means for uber and everybody else "power lunch" starts right now >> welcome to