controls here. thank god. >> we've got to bounce. >> i'm going to give you yelp. i'm seeing june upside calls. >> csx, i talked about rails earlier. >> black stone, c corp. >> spy, don't fear index funds. >> great see you final trades, we did that. "the exchange" begins now. ♪ thank you, scott hi, everybody, here is what's ahead. bankruptcies are coming, and analyst warnings that china's tariffs will spark thousands of u.s. store closures, even threaten the existence of some shopping malls we'll look at the companies most affected by that. and the street's love for tesla as you just heard is stalling out big time. it is not a pretty picture for this stock could tesla potentially be cut off from the capital it desperately needs? and what then we'll ask. plus what do garlic, a "game of thrones" and hiring engineers have in common, that's coming in rapid fire today when we begin with this rally and dom chu is here. >> i cannot wait to hear what

all of those things have in common we do have a market rally on our hands. you can see green across the board, a half to a full present gain at the major indexes. the dow is up 195 points, so we're not far from there, still though a nice risk on rally. the s&p up by about 9/10 of 1%, the nasdaq 1 full percent here two stocks to keep a close eye on a very retail focused week first of all, home depot is up near the highs of the session right now. it was down below 190 bucks a share is right where the 200 moving average is. we are above that now. home depot, home improvement retailer same store sales disappointed a bit there take a look at this, though, another retailer down big but off the worst levels of the day, 9% of the downside for kohl's. this department store chain was down about 14% earlier today on some disappointing numbers from its earnings and same store sales also cut their forecast as well still in a week of heavy earnings, lows tomorrow,

nordstrom after the bell today, you can tell why the consumer is in focus the markets are still in the green despite kohl's's disappointing performance. >> we'll have more on that in a moment welcome to "the exchange." i'm kelly evans. a major development on brexit. theresa may offering lawmakers the chance to hold a second brexit referendum if they approve her latest deal. her previous offers had been rejected three times new reports now say the labor party won't even support this brexit deal. we're watching the british pound and other markets. back in the u.s., home sales fell in april despite a big drop in mortgage rates. sales were 4.4% down year on year that's the 14th straight month of annual declines let's get back to these markets, bob pisani at the new york stock exchange. >> today is proof the china trade story is the marginal mover of the market and has been all month after the trump administration delayed the huawei restrictions, all the trade related sectors trading up look here, semis, china stocks,

metals and mining stocks, industrials, these are all trade related names. they're all the leaders today. the top percentage gainers on the dow, they're all trade related dow dupont, caterpillar, intel, apple, what a ride apple has been on. it's a 15% swing from the high to the low in the last three weeks. a whole year of trading in three weeks. the big issue for the markets is this is this huawei order banning u.s. businesses from doing business with them final or is it negotiable as part of a larger u.s. china trade deal if it's final, would the chinese be so incensed that it might kill a trade deal? remember, huawei is practically the apple of china it's that important. for the moment the expectation of a trump xi meeting in june is keeping the markets up kelly, back to you. >> that you're always talking about. as investors weigh the effects of a trade war, the retail sector could be one place consumers feel the pain.

tariffs could cost retailers $40 billion worth of sales and put 12,000 u.s. stores at risk of closure joining me now are jay sole the retail analyst with ubs and our own courtney reagan. great to have you both here. jay i'll begin with you. how many store closures would we expect anyhow in 2019, and how many more do you think we're going to see >> first, thanks for having me i think in a normal year without this trade war we'd be expecting about 2,000 to 3,000 store closures that's been the run rate over the last four years. the ubs evidence lab has a proprietary database where it looks at 524 soft line retailers which encompasses 115,000 stores what we've seen is it's been increasing about 2%. the store count rate is down about 2%. >> which already feels like a lot. that includes ones like gymboree obviously and different things the last couple of years it's already felt like a lot you're saying the pace would go from 2 to 3,000 to potentially

12,000 >> what people might not realize is the year-over-year change in the store count rate is negative 5.3% we've already seen a huge acceleration this year i don't think people are realizing, people don't realize how much pressure retailers were under before we've even seen these tariffs. >> what are all of the reasons behind that? i mean, is it just amazon and the changing economics around shopping the interesting thing is this morning kohl's, one of the best performers in retail, i mean, absolute banner of how to do things right they have amazon returns i mean, the stock moved today and what they said about the year does strike you as pretty odd given what we thought we knew about them. >> there's so many things going on in retail amazon of course is a pressure it has been for a while. it's changed the way every retailer has to play the game to satisfy consumers. owe also have retailers that are unhealthy. look at asee na retail they're shuttering dress barn. they've already gotten rid of maurice's. they're not operating very well.

they have to get leaner and leaner you've got bankruptcies that are happening because they took on too much debt. they were part of an lbo. >> like toys"r"us. >> exactly that big cycle that happened about ten years ago. there are so many factors at play if you want to invest in retail stocks, you got to do your homework and you've got to do your stock picking the scenarios are going to be different from retailer to retailer even for kohl's that quarter today came out of left field >> if you're talking about thousands of store closures are they going to be a little bit from everybody or do we expect that the weaker links are the ones we expect to go in other words your coverage includes nike and lululemon. those are companies people often raise as examples of ones that should be relatively immune, strong brands, a lot of director to consumer. would you share that point of view, and if so where would the pain fall? >> when we think about soft lines retail there's about 73 publicly traded soft line retailers, and you know, if we think about the bottom 15 in

terms of the ebit mar begin, 15 of those have ebit margins less than 10% those are the retailers that would be at the most pressure if we had tariffs, not nike and lululemon. >> i could offer some guesses. do you have some examples of who those are? >> i'm sure they're going to offer a couple ideas they're not necessarily household names. i didn't even mention the private companies. obviously there's a lot of private retailers who have low margins, those companies would also be at risk of having to close doors. >> because i know you cover them, would gap, would american eagle fall into that territory of being at the bottom of the barrel or no >> american eagle would not, and gap is a big company with old navy a very strong profitable retailer and obviously the gap brands, you know, the company doesn't disclose what the ebit margin is but the consensus view is it's probably negative. gap's already closing a lot of stores this year theoretically they could consider closing more. >> the main issue from the tariffs is the cost of goods >> the main issue is the increase in the cost of goods and the inability to pass on the

cost to consumers. apparel cpi is down about 3%. >> very inflationary category, difficult for retailers to pass on that cost. >> that could affect some c class shopping malls, you know, we thought we were already coming through the worst of this, and it sounds like we aren't even near the worst of it. >> exactly some of these retailers are on weak and shaky ground. you add up to 25% costs and that fourth round of tariffs if that comes opt apparel and shoes, forget it. >> absolutely. thank you, jay sole, courtney reag reagan appreciate it. let's move on to shares of tesla that are bouncing back a little on morgan stanley's decision to slash its worst-case scenario of the stock to $10 a share from 97. they're citing concerns about demand for its products in china. tesla's shares are down 40% this year and are on pace for the worst quarter ever let's bring in our own phil

lebeau and charlie great from "the wall street journal." we were speaking about china's tariffs. that factors into this note today, doesn't it? >> it does if this tariff war continues between the u.s. and china, how much does that weigh on tesla or continue to weigh on tesla as they work towards opening up a facility, a final assembly plant in shanghai. they say thaef l they'they'll h ready by the end of this year. whenever you see these auto plants being put together, they rarely open on time. how much does that impact potential sales or delivery in china, and then separate from that, if this trade war heats up, kelly, is that going to further hurt demand within china for tesla vehicles, or does it lead the government to take actions that could hurt tesla, maybe hurt other automakers as well who are selling vehicles over there, just a lot of unknowns. >> charlie, wall street is

losing faith in tesla, this is adam jonas bear case scenario. you explain, tesla is trading about 30 times earnings per share of about 6.50 so if they get a toyota multiple, that's a $59 stock. >> and we were at 11 bucks per share to start the year. now we're at 6.50. i don't know how you can anchor this thing based on that, and you know an additional problem for teslais that they just issued all this stock and in the past that has sparked a share price rally because the funding, you know, the dreams that are years away seem to be a little more concrete. well, this time people who just funded the latest round are sitting on a big loss. if tesla needs to come back to the market, guess who they're going to be asking for money >> sure. >> same people who just took a chance and lost.

>> what about the retail investors. this is a stock that's widely owned by a lot of people out there who love elon musk and what he's doing, love the cars, frankly. we talked about that yesterday they're fun to drive a big part of the appeal, is that investor base still there or not >> they are, but there's a limit -- there's a limit to how much patience mom and pop can take i think the adulation for elon musk in certain quarters is as strong as it's ever been the balance sheets of mom and pop are not the same as you know, bailey gifford, fidelity. >> exactly and t row and fidelity have been scaling back significantly. >> one of the questions that's now coming up to the point charlie was making, if tesla needed capital, where do they go if that source were cut off, does elon musk look at spacex and kind of say, okay, well, i have a -- i can do something with that company in order to help out tesla and the way he's sold tesla in the past to help fund spacex, or what about his own personal financial tie up? >> let's talk first off about

the loans that he has taken out from three banks totaling $507 million at least that was the exposure last year according to the latest prospectus from tesla when you look at that in terms of those loans, they are backed, backed by elon musk's shares, so what if there's a merging call at some point, and we don't know where it would kick in as shares of tesla move lower, but the company says in the prospectus, look, this could lead to elon musk having to sell some of his stock which would put further pressure on shares of tesla. it's just one of the dynamics that are fl there. in terms of whether or not they could go to the capital markets in the future, it's going to be tougher to do that i think we're a long ways from seeing elon musk say you know what, we're going to tap into whatever help we may get from spac spacex ting there i think there's a lot of other scenarios that play out first.

>> we'll leave it there. phil lebeau and charlie grant. here's what's still ahead on "the exchange". >> coming up, while all the focus has been on china, tensions are starting to flare-up in iran we'll look at what's at stake as president oba pompeo makes his way to the hill to explain our strategy. plus the state of social media, online publishing and silicon valley twitter's cofounder joins us live. and as the first hurricane of the season is named, we're looking at ways to build hurricane resistant homes, and it's cheaper than you think. is"the exchange" on cnbc allowed me to go to work full time, run my catering business and be a mom and parent.

when i reached this accomplishment, it was like, it's here, it's happening, it's now. we at southern new hampshire university are the ones who succeed. we are the ones who break through.

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xfinity lets you find your favorites with the emmy award-winning x1 voice remote. show me the best of amy poehler, again. 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, iran is now threatening to quadruple the amount of low enriched uranium it produces. further stressing relations between it and the u.s. and with tensions at a fever pitch, how should investors navigate this cnbc's own hadly gamble as well for a special treat. welcome to you both. you said that people are not appreciating the seriousness of this crisis. the oil price does not reflect the gravity of the situation. >> no, i think people in the market right now look at what's

going on with iran, looks at the attacks they've seen on the tankers, the pipeline attacks and say it's low level nothing has been sunk. there's been no major supply disruption it's all noise, and i look at the situation and say we haven't seen these type of attacks in a while, we haven't had a situation where the iranians have now restarted their nuclear program so the really key thing to watch is they're basically doing low level enrichment now the question is what happens on july 7th they've given the europeans a 60 day deadline to provide some type of economic relief. if that is not forthcoming, the iranians are likely to step up their nuclear activities. >> this is awkward for the europeans because it's clear that the relationship between the iran and the u.s. is completely frayed. europe was trying to keep this deal together but now that it's falling apart and iran's increasing its enrichment where does that levave them. >> the iranians are demanding and setting deadlinesment we can't fold to that, but at the

same points the united states is saying the same thing. what's incredible is what's happened over the last 24 hours. no one really in the market is responding to because what we heard from president ra ha knee, he's essentially said he wants executive wartime powers he says it's an economic war being waged against iran. >> people in economic war maybe is the way to put it people have argued iran has no interest to stage an actual conflict because they'll lose. it will be terrible for the economy, et cetera the interesting thing is how this comes down to president trump who everybody agrees and it's always dangerous when everybody agrees, that he doesn't want a military conflict so they say hey, there's no way the president would get involved with something like that. >> i would say this, after 9/11 when we were engage ds in hostilities in afghanistan if you had said in that moment people -- president bush had basically campaigned against nation building. he was not for middle east entanglements. i think if you could have an escalation, it's a fog of war situation. we're not actually talking to the iranians at this point

so as we ratchet up severe economic pressure akin to economic warfare today secretary of state pompeo was talking about assisting the iranian population that could be read as regime change talk inside of iran the question if you're the iranians and you're not getting a better offer from washington in this moment, do you have every incentive to step up the pressure on washington, on countries supporting sanctions to try to get us to reconsider our position as they ratchet up we will have to respond you can get into a tit for tat escalation. >> how many oil are they producing now? where is that going to is that some lever of influence? >> the key thing to pay attention to is iran was exporting 2.5 million barrels a day. they are likely to be down to 500,000 of exports this is a significant sanction we've imposed a whole host of other economic sanctions including on the revolutionary guard. >> tit's a huge drop. >> we are crushing their economy, so the idea that

they're going to basically sit back, do nothing, the iranians may not want to respond head on, but they will respond asmetically. that's how the iranians have been waging their campaigns since the '79 revolution. expect more issues around key waterways. look for issues in terms of iraq, the eastern provinces of saudi arabia i don't see the iranians have any incentive to back off. >> right in the persian gulf, what i think is extremely interesting, the last 24 hours the british special forces have arrived to be with the fleet in the persian gulf we're seeing more and more pieces of military hardware going into this waterway, and it just ain't that big, guys. >> and everybody says nothing is going to happen. great stuff. appreciate it. cnbc's healthy returns conference is also going on today with big names making big headlines including strong comments from former fda commissioner scott gottlieb. that's where we find tyler

mathisen. >> kelly, thank you, it's been a very interesting morning we kicked off as we did last year with an interview that me a conducted with scott gottlieb, now the former commissioner of the food and drug administration one of the topics that comes up practically every time we talk to him are the e-cigarettes and how the fda responded to them and what he thinks is going on there. it was a very interesting exchange. >> gottlieb made tobacco a signature issue of his two years as fda commissioner and one of the things that he talked a lot about was providing e-cigarettes or making sure that e-cigarettes were an option for adults who already smoke and could potentially move off combustible cigarettes onto e-cigarettes but at the same time tried to balance that access with the idea that youth might try their first nicotine product in an e-cigarette. i asked him if he struck the right balance by doing that as commissioner, and he said no, that was something they got really, really wrong. >> they got it wrong, and he said very candidly, it's one of the reasons we think scott is

such a wonderful communicator, is he says what he thinks. he said that the worst day of his tenure was when his head of tobacco came to him and said that youth smoking was up. >> with e-cigarettes. >> was going way up at the same time that he was trying to balance it and that they missed threading that needle a little bit. very interesting stuff also interesting jim cramer talked to the head of novartis, and he asked the head of novartis as you pointed out, what kelly, would you do if you were the head of the fda and he said i would go after tobacco because that is the most preventible cause of death, and he said i'd go after the food companies because diabetes a killer as well. >> that's right. ahead of a big pharmacy and go after big tobacco and big food >> exactly. >> not us. >> we have morecoming up. >> yeah, not us. coming up more from healthy returns, i'll see you next hour. >> sounds good, guys, great stuff. i love the anecdotes

me meg tirrell. semiconductor names bounces back as the u.s. abruptly changes its tune easing some of the restrictions on huawei what that means for trade talks is ahead. plus, if your child has ambitions to be a youtube star, apparently you're not supposed to quash them because there's now a summer camp for that good idea or a step too far? we'll be right back. i'm working to make each day a little sweeter. ♪ to give every idea the perfect soundtrack. ♪ to fill your world with fun. ♪ to share my culture with my community. ♪ to make each journey more elegant. ♪ i'm working for all the adventure two wheels can bring. ♪ at adp we're designing a better way to work, so you can achieve what you're working for.

welcome back to "the exchange." here are some of the movers this hour shares of auto zone are getting a boost. its comp store sales rose nearly 4% and the shares are up about that much. polaris is in the green saying the worst case tariff scenario is baked into the share price rebounding about 3.5%. shares of molenkrat are sinking after a new rule that would hurt sales of one of its key drugs. shares down 26%. now ev williams has a long history in the tech world, he cofounded twitter, and then launched online publishing platform medium. after all those years in the tech world, he's come to a conclusion, social media, he says, has become toxic

let's go out live to the conference in toronto with mr. williams, deirdre. >> thank you very much for that. it is a pleasure to have you here. >> thanks for having me. >> i want to get your thoughts on social media. let's start with medium, and i want to ask you about one of the most famous medium posts i must be talking about bbezos did you know that was going to happen >> we did not. we were surprise ds as the rest of the world we saw it a few minutes before he tweeted is this real it sounded like him when you read it so yeah. >> has that done anything for the platform raised its profile >> over the years we've had a number of high profile, maybe not as many that got that many stories, but i think medium has become the place where it's neutral and if someone wants to tell their story or perspective, we're sort of the go to place. it helped with that. it was one of many really. >> do you have any insight as to why he chose medium. >> people have said should he

have put it in "the washington post." that probably doesn't make sense. it was a personal story. i don't know, hopefully we were the best option. >> i wanted to ask you how you think about going public is that something that you eventually want to get to, and how close are you watching this year's current crop of unicorns going public at a very quick pace does uber and lyft give you any pause? >> well, i think it's been a long time coming for a lot of companies, so i think getting some liquidity into these companies is a good thing. for medium, it's not something that's on our immediate radar. fortunate enough to be an early investor in beyond me, very happy about how that's gone. and so -- >> just to be clear for our audience, you lead series b. >> that's right, myself and partners got involved in the company early. we've just been tremendously happy about the response to that. >> what do you think about their ipo? their value has, i believe, more than tripled at this point from

that ipo price was there money left on the table for the company and do you think about things like that >> that might be what that means, but the thing i think about is that the world is responding to this plant-based protein company in a way that is really exciting because it started with seeming like a very niche product, and seeing this kind of response is the exciting thing. >> are you sewurprised by uber d lyft that they haven't had a great reaction. >> i don't know, i haven't thought about them too much. >> i want to get to your views on social media. you've called it toxic before, and you are the cofounder of twitter, and you were ceo for a long time too. i know that you have stepped away, but how do you think progress has been and how do you view social media right now? >> look i don't think social media is all toxic at all. i think there is people forget there's a ton of great stuff that comes from social media i think everyone having a voice.

there's a will tlot of movement happen from social media that wouldn't happen otherwise. i think what we're seeing on social media has really become humanity and there's really good and bad aspects of that. the technology is still involving. i prefer to be an optimist and say we'll get through this period and figure out better ways to have a conversation as a society. >> does it need to be regulated and what does that look like >> i think some regulation eventually for the internet is going to make sense, but i don't know what that is. i i think you have to approach it carefully just like most massive industries are regulated. >> does it come from the government, though, or does it come from the tech industry itself >> we shall see. >> thank you very much for being with us. enjoy the conference, enjoy toronto. >> great stuff a pleasure to hear from ev williams, really appreciate it. speaking of social media, don't miss an exclusive interview with former facebook president sean parker today at 3:00 p.m. on "closing bell."

here's what's ahead on "the exchange." coming up, "game of thrones" and garlic we'll tell you what the two have in common. the movie subscription service isn't dead after all plus, youtube star camp is coming. and the surprising stock that's up for five straight months and up 107% this year that and more ahead on "the exchange." uh-oh, looks like someone's still nervous about buying a new house. is it that obvious?

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welcome back, everybody, i'm sue herera here's your cnbc news update in a major concession, theresa may offering lawmakers a chance to vote on whether to hold a new referendum on the country's membership in the european union, but only if it backs her thrice rejected brexit agreement. >> today i'm making a serious offer to mps across parliament, a new brexit deal. as part of that deal, i will continue to make the case for the conservative party to be united behind a policy that can deliver brexit >> celebrity chef jamie oliver's british restaurant chain filing for bankruptcy protection partly

due to increased competition and escalating rents in local commercial districts all but three of his 25 locations in the u.k. are closing. it will leave 1,000 people out of work. poland's first sextuplets were born yesterday in krakow. there are four girls and two boys the smallest weighing two pounds and the biggest almost three they were delivered by cesarean section in the 29th week of pregnancy. it was one more baby than was expected, a surprise to a shocked mother but she's doing foin fine. and she's going to be very busy. that is the news update at this hour, kelly, back to you. >> you have four speechless women back here just going, oh, my gosh. >> one of the babies was behind the other so when they did the ultrasound they saw five but not six. >> if you're prepared for five, though, what's one more? >> exactly, ladies. >> easy for us to say. thanks very much let's catch you up on a few

stories. it's rapid fire time, here today are leslie pick ert, contessa brewer, welcome one and all. the fallout from tariffs in china, it's piling out interesting cross currents great for garlic growers, sales for one producer up 15% because now it's more cost competitive, not so hot for hiring if you're a chip maker the approval process has reportedly come to a crawl said the journal today, and just when you thought it couldn't get worse, hbo also telling the journal the series finale of "game of thrones" was scrubbed in china due to the trade dispute. tencent which airs the show says it was due to transmission problems hbo said it was not. >> so you have all of these chinese fans of "game of thrones" who are furious and apparently threatening the company with yanking their $3 subscription monthly, and i'm like wait a minute, they're only paying $3 a month. >> you going to put in the chinese address? >> there's something wrong with

this picture, and also, i mean, i get it, this is one of the things we've been talking about with chinese retaliation if they've already maxed out the tariffs, they can put on u.s. imports, then how -- they're going to make it harder for our exporters to get through the ports. the inspectors are going to get tougher. i have to tell you, there's some consternation about whether we're going to keep seeing the chinese tourists here and whether they have availability >> imagine for the retailers. >> and you know what i was thinking about you have the nba finals about to start, hugely popular. >> very popular in china >> that's a really good point. >> even as all this is happening, we're backing off a little bit with some of the huawei stuff i don't know, you can see the levers they'll start to pull. >> if it's true, that's creative, right? i mean, that is a creative way to retaliate and a way that really em passioimpassions peopt are in the "game of thrones." >> it's over now can we just move on. >> i'm glad to hear that a

garlic grower is getting some good out of it most of the farmers i've been talking to about tariffs have their heads in their hands trying to figure out how they're going to make ends meet. >> yeah, soybeans, corn, those crops. it's only because it's more expensive, so it's $60 for a 30-pound box chinese garlic was around 20 in the past, now it's 40. california garlic is a little more price competitive for that reason let's move on and talk about gm, which is pumping the brakes on its car sharing business called maven. they're going to wind down the 3-year-old service shifting operations to concentrate on markets with the strongest demand in growth potential. a couple of interesting things about this, it does work in some markets. it reminds me so much of uber and lyft here's why, in the dense urban markets where there's a lot of demand for this kind of mobility, fine, you have a business model it's not necessarily replacing car ownership. >> i think you could replace the words uber, lyft, maven with any of these platform models where you basically kind of outsource

your work force, and then they find, you know, a consumer to participate. it's clearly one of those things where in the urban markets it just works so much better whereas the rural markets are more difficult also, how is this really that much more demonstrably different than just renting a car. >> zip car or something. >> they actually are in new york city, too. we were members and we got a notification that it's no longer available in new york city we don't have a car and we live in new york city, for us to be able to rent a car per hour or day was something we were interested they had newer cars, they were a little nieccer. >> was it cheaper? >> it depends. that's probably where it gets tricky if you want the car for an hour to pick something up, it makes more sense, but if you want it for a full day, it actually probably makes just as much sense to go to hertz, avis, one of the more traditional services we were bummed when we got the e-mail. >> i'm surprised new york is one of the places they're ending it. you'd think that's the no-brainer

if it's going to work anywhere, it's going to work there. >> if you can make it here. >> if you can't make it anywhere else, that's the new one. move over movie pass, amc is the number one movie subscription service in the country with over 800,000 sub skri scribers to its a-list program that's beyond their programs they thought it would be 500 k by the end of the first year movie pass has imploded. it has lost more than 90% of subscribers in less than a year. got to hand it to amc, if you can't beat them, join them and beat them that way. >> amc gets to control the price of the movie tickets whereas movie pass ran into all of these issues because i don't know if you read these stories but people would basically use their movie pass to go in and go to the bathroom and not see a movie. and meanwhile, movie pass is paying full ticket prices for each movie its users would swipe. if you're amc, you basically control, you know, how much people are paying coming in the door theoretically

you want to make some kind of margin. >> and their pricing was more rationale. amc i think is around 20. >> and 23 in some cities. >> so you go once or twice, if you're not going regularly. >> they could have gone three times per week do they even make enough movies that you're interested in seeing three. >> it's just one more subscription that you add onto your list of subscriptions whether you use it or not. >> wells fargo, chaser somebody says we'll help you go through all your subscription services and find out which -- >> i was like that's a scythe geist. all with their parents permission this was contessa's idea companies hosting these camps say they don't help campers make their own youtube accounts parents can decide whether or not to upload them you'd sign the boys up >> i'm ready to host a summer camp it could be my side gig, you know what i'm saying

you know video, you know how to do tv. my 5-year-old already thinks he's a youtube star. he made a spectacular video for the tooth fairy, begging her -- here he is first, tooth fairy, even though i lost my teeth, meaning i actually lost them, can you pay me the money anyway, and also they're worth -- i mean, he's a star in the making >> a delicious shish kabob. >> he's going to give her this in exchange. >> and it's going to be right on this plate, and that's going to fix it >> did it work, though did he get the money >> of course he did. you think that youtube is going to turn this kid down. no, she does not. >> controversial question, do you worry you put him on youtube like that and all the creeps watch the videos. >> we just put him on cnbc, that's even better >> no concerns there >> no, i mean, in all honesty we live in a new and different world. i'm not worried about some creep watching my kid. they could do that in new york city i think it's brilliant, and it's

changing -- coding camps, robot camps. this is the way that our kids are going to succeed in the new economy. >> no contessa, i'm sticking with ultimate frisbee, baseball, soccer, maybe lacrosse >> we'll see who turns out more ready for this world i have a feeling it's not going to be mine anyways, guys, thank you all leslie picker, contessa brewer and courtney reagan. the u.s. abruptly changing its tune on huawei, easing some of the restrictions on the chinese tell co. what does it mean for trade talks going forward? that's next. ♪ ♪ memories. what we deliver by delivering.

if you need any proof that markets are following every development on trade, look at the semiconductor stocks after the etf fell nearly 4% yesterday, it's making a comeback today as the u.s. has backtracked and said it will allow some companies to do business with huawei for more on this abrupt reversal, let's bring in fred

kemp, a cnbc contributor along with our own seema mody. this allows just a couple of companies in what situations to do business? >> yeah, it seems like it's the big semiconductor companies that sell a number of components and chips to huawei. what's interesting about this sort of about face we've seen the last 24 hours, is that it didn't seem like wall street or washington fully understood or appreciated the size and scale of huawei and its reach into the u.s., so once it was understood that u.s. jobs were at stake, you started to see this 90-day deadline, this temporary reprieve come out. >> fred, where does that leave us in this leverage game who really has it? >> as you know, i think we've been living in this illusion that this is a trade dispute and you can negotiate your way out of it. we're going to be in a decades, two, three decades competition owe earlier talked about "game of thrones" not going to china this could be a new global "game of thrones" that we're watching

yonlt s i see as more dramatic the message we've sent to u.s. suppliers and to china i've been following a tweeter in china who is the editor of the global times which really speaks for the company's party, and he said u.s. cutting off huawei supplies completely woke up chinese society. china will face difficulty short-term, but we will devote independent r&d and abandon any illusion this is a real turning point of the u.s. semiconductor companies gradually losing the chinese market i think that's more right than wrong. >> but emphasize on gradual, fred as we learned yesterday, u.s. companies are the semiconductor market, the even the components, the suppliers. it's going to take years for china to build out industry of its own if that's where they're going. >> this is going to hurt huawei a lot. 1/6 of all of its components come from overseas it's hugely depend on google and

all the google apps, so there's no doubt this is going to hurt huawei, and these waivers, we do a lot of waivers when there are sanctions we did it with the oil sanctions on iran. the waivers are more of a stay of execution than the fact that the execution is not going to take place we're in a long-term competition with china just one last thing, i was at lunch with some koreans. their trading partner number one is china their trading partner number two is the u.s this is samsung's country. 20% of their network and their systems is huawei. if we try to make them -- make a choice, this is not just going to be an issue with the u.s. and china. >> fred, before we go, can i ask you real quickly about brexit. these headlines from a few hours ago that suggest theresa may is going to offer to give a second referendum suggests that there's -- they're open to overturning brexit, now, i don't -- it's a gambit it's her last gambit

is it going to backfire? >> yeah, so kelly, i think you know my bias on this i think brexit has been one of the worst things possible for the u.k. economy so i would welcome this direction. i think what we've seen is fascinating politics, and it could be brilliant politics. the last vote on whether to have a referendum on a theresa may deal against her 292 to 280 so only 12 votes with 66 extensions i think she thinks she can swing at least that many votes because now the waivers can either vote for her deal in order to vote for the referendum, or they vote against her deal and they could get boris johnson who goes for a hard brexit. so i think this has a chance of taking us to a second referendum, which i think the u.k. voters deserve. >> and remember, brexit still matters outside of trade brexit is still the most commonly cited concern among multinationals here in the u.s. >> we've been dominated by garlic and "game of thrones. guys, thanks, and huawei

fred kemp, seema mody, appreciate it. coming up, one stock has doubled this year and is on a record winning streak we'll tell you that, plus the red hot ipo that's having its rsdaev, wot y erand a look at today's big movers and shakers today's big movers and shakers right after this. man: stand up if you are a first generation college student. stand up if you're a mother. if you are actively deployed, a veteran, or you're in a military family, please stand. the world which we live equally distributes talent. but it doesn't equally distribute opportunity, and paths are not always the same.

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welcome back here's a quick look at some of your movers. shares of snap are higher after the company said it completed its leadership overhaul, the stock is on pace for its fifth straight month of gains and is up 108% this year. beyond meat is now falling and on pace for its worst day since its ipo and stock supis up 200% still which is extremely good performance and tata motor shares saw weak demand in its home market of india those shares down 2% today coming up, fortifying your home against the next big storm a look at what some are doing to protect their properties with hurricane season just ou tarndhe corner first named storm today. thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory.

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june marks the official start of hurricane season in the u.s. recent storms brought record disruption and that has some looking at how to fortify their homes against the next storm diana olick looks at the possibilities and the costs in the latest in her series "on the rising risks to real estate from increasingly extreme weather."

>> reporter: hurricane michael was breathtaking but this one image had homeowners and builders alike in awe. one home left relatively unscathed on florida's mexico beach. >> total devastation for miles in every direction >> reporter: russell king built this thouse two years ago not just with hurricane winds in mind but every aspect of the design sits 12 feet above the ground and anchored 28 feet into the ground >> i felt like a better chance of surviving the storm. >> reporter: 12 months later, it is not enough. >> the storms are, in my opinion, from what i've seen, getting stronger >> reporter: he learned from michael and his upgrading his home yet again. >> all this cross bracing is new. it wasn't there. that happened last month all these light fixtures here, they're all going away every one of them. we're making this to put in something else, probably pavers.

where we don't have concrete that will shift against these columns. >> reporter: king is fortifying the house well beyond any current building codes his next door neighbor built to the highest local code two years ago but the home is a total loss new mandatory building codes after hurricane andrew improved hurricane resistance in florida's new construction nationally, the insurance institute for business and home safety created a hurricane fortified standard a decade ago, meant as a guideline for builders and owners. but so far, only 8,000 homes have that designation. those that do sell for 7% more, according to a university of alabama study. the technology to fortify homes has advanced dramatically but the demand for it actually really hasn't. and that may be because homeowners mistakenly believe it's wildly expensive. >> i wouldn't describe it as cost-prohibitive we actually focus on low to moderate income homeowners and

this has built balancing that along with safety. >> reporter: lance is the local executive director with habitat for humanity which has built 81 homes in the panama city area. habitat builds beyond the latest hurricane codes and can do that even on the lowest-priced homes. >> we have this, the rest of the things talking about is almost negligible >> reporter: there are levels of protections just as there are categories of strength the latest with hurricane michael but r michael, but russell king isn't taking any chances >> do you think there's any such thing as a hurricane proof house? >> no. >> reporter: it's impossible to

put an exact price tag on what it takes to fortify your home but $3,000 to $5,000 would go a long way to getting to those standards and kelly, first named storm today, andrea. >> that money goes a long way with 7% more as well great stuff. thanks very much that does it for "the exchange." i'll join melissa for "power lunch" which begins right now. thank you, kelly see you in a moment. tyler mathisen with the healthy returns conference, join us in a moment new at 2:00, the smart money betting the sell-off is over and the correction has run its course are the hedge funds right and what do you do from here china digging in to heels on trade talks signaling a long road ahead plus the new risk emerging in this trade war and tesla at $10, a new call on the worst-case scenario. that stock down 40% this year at the lowest level in 2.5 years. where's it go from here and when th