>> bob, still a good way to play trade talks. >> ford motor company. letter f >> good stuff. dow right now is up about 90 points that does it for us. "the exchange" with kelly evans begins right now >> thank you, scott. hi, everybody. here is what is ahead of us. have you heard this before treasury secretary mnuchin said the trade deal with china is 90% done how much stocks should investors put in this comment. if you air it, will they still watch. as we gear up for tonight's democratic debate, media stocks are suffering a politics hangover a look at how worried investors should be at this fatigue. the $100,000 pickup truck and making bitcoin more successful all ahead in rapid fire today. we begin with these markets. dom chu. >> still something and we're

seeing the dow jones industrials up by 89 points and up 189 points at highs and gearing more towards the upper end of the range. s&p 500 up and nasdaq up by over 0.5% a lot of semi conductor stocks helping that move. on the macro front, we're watching what is happening off its highs and still off 2.5% today. gasoline futures up by over 4% that philadelphia, philadelphia enterprise refinery is now going to shut down that is confirmed by the mayor of philadelphia adding prices to pressures. and then the stock of the day. a stock that has been on a tear from the consumer staple side. we're talking general mills. it was up 48% from the lows back in december to the highs now now we're dipping here after an earnings report that came in better than expected and sales dropping and snack food weakness

the story there. general mills moving to the downside kelly, back over to you. >> dom, thanks very much order for big ticket durable goods falling 1.3% in may. that is the third drop in four months aircraft orders saw the steepest decline. this after authorities grounded boeing 737 max planes. meantime mortgage applications did jump last week this coming amid super low interest rates the ten-year yield hovering around 10.23%. let's drill down more on these markets with bob pisani down at new york stock exchange. it's been a very concentrated rally. >> i have been emphasizing that. the s&p is up more than 3% this quarter, but a super big capo l caporaly the s&p, as i mentioned, 3.2%. but look at the midcaps. up 0.2% and small caps down for the quarter and the biggest stocks are really pushing the markets around look here, five stocks

microsoft, facebook, amazon, disney and apple 30% of the gains for the whole s&p. microsoft alone accounts for 14.8% of the gains for the whole s&p. that's amazing whole of the triumph of indexing a small group of companies have gotten so big they have essentially become the stock market when they do well, the stock markets do well. here's a simple way to look at this suppose the top 50 stocks were all up 1% on the quarter and all the rest were down 1%. now, you would think that with 50 stocks up and 450 down, the s&p would be down, right that would make sense. but you would be wrong the s&p 500 would be flat. that's how powerful the biggest names have become. really, the top 20 stocks are the ones that the most important to move the markets around back to you. >> bob, thanksvery much. treasury secretary mnuchin spoke with cnbc this morning telling hadley we were about 90% of the way to a trade deal with

china and adding there is a path to completing a deal but we heard this kind of optimism before. >> we had very productive meetings >> we made a lot of progress >> we're making great headway. >> our hope is that we are in the final weeks of an agreement. >> i think we are pleased with the progress >> very good chance of it happening. >> very productive >> i think it will be a very strong day, frankly. but we'll see. >> so, what are the chances we get a deal at the trump/xi meeting at g20 i'm joined with enterprise institute. the treasury said we were 90% of the way done on this and the 10% is the hardest part. do you think that is the same situation we find ourselves in today? >> no, i think in retrospect he's wrong it was a surprise to most people the chinese blew up the talks in early may because they did not want the enforcement mechanism

that we wanted that's huge because without an enforcement mechanism, any agreement they make on intellectual property is hopeless and the intelectual piece is being purchases and tariffs. no way you gett 90% of what the chinese did and he really means we have to get somehow back to where we were before the chinese decided they didn't want the deal >> you're saying we're only 50% of the way there and we were never further along than that. >> in retrospect that's true that is not the way it looked when they went to beijing. they said no deal is done until the whole thing is done. that's fair. but it looked like we were close. it no longer looks like we're that close because not only do we have the same problem on ip enforcement that we had before, but time is running out for china to make those purchases that the president wants every month that goes by, less time for those purchases to make an impact. >> also interesting because we

have gotten a lot of headlines over the last few weeks about bob lighthauzer as we sit here and talk about what happened last time, do you think there is a change in attitude in terms of what they are willing to accept and, if so, what side do you think that will be? >> you don't see it in public. the propaganda since early may is unbelievable. the worst i've seen in 20 years in terms of insisting on cliches associath thed wite greatness of the communist party and so on. on the american side, we had the president say today, you know, china better give us a deal or tariffs going up and after china, i'm going after vietnam he has the same idea of trade deficits and the chinese have the same idea of their sovereignty and other such high-profile concepts. in private, i think the negotiators know that they felt they were close in april and the question is whether the leaders

will allow them to go back to where they were in april or stay with these public positions where there wouldn't be a deal >> will there be a deal without enforcement? >> well, i really hope not i don't think ambassador would step forward and have what he thinks a weak enforcement mechanism. i think he would object to a deal you know, people can differ over whether an enforcement mechanism is strong. but, for sure, chinese promises on ip without enforcement mean nothing. they have been stealing and coercing american ip for years, maybe even decades if you don't have an enforcement mechanism, you don't have a deal worth signing. >> always good to talk with you. derek scissors, thank you for joining me today those comments from treasury secretary mnuchin giving the market a boost earlier today but we're off session highs. how much weight on these comments let's bring in barry james and chief strategist of bny melon.

alicia, i don't feel very positive after hearing what derek had to say >> so, i have to say that i kind of agree with derek on this. you know, if the comments came from robert loilthhizee and it has not panned out to the way the extent the market was excited about his comments. >> we rallied this morning on these comments we're very sensitive to this barry, what happens if there is no deal or, i guess, we could imagine that the markets wouldn't like that but what happens if there is a deal with no real teeth or enforcement. are we going to get a sugar high rally? what have we gotten in the long run? >> well, i think the market is looking at this kind of like a horse race and it's betting on a trifecta one is trade deal will get done. also that we won't have a recession. and that interest rates are going to come down those three things

and so if they don't happen, then that would be negative news i think, you know, a deal with china is priced in and to be honest with earnings being as poor as they are and cfos being as worried as they are. almost half of them expect a recession in the next year, we would tend to say it's better to be prudent right now, not be overly committed to the, market because this could fall through. >> they are always gloomy those cfos they have to offset, right, barry. listen, you have a couple picks despite what you're laying out here you're not necessarily saying it is a bad time to be in the market, verizon, why these kind of names >> well, in our fund the golden rainbow we like to buy companies that are relatively cheap and have good earnings and good earnings and rising in price these all kind of meet that criteria they're more stateside focused

in some cases, buying back debt or buying back shares and, you know, obviously, verizon being more the unilitility with a reay nice yield you can hold them regardless of which way things go with china >> alicia, you can get a 4% dividend yield on verizon right now or 2% on the u.s. tenure and basically be penalized for any sovereign debt right now >> ultimately some positive for the market so, it's true that there is serious event risk ahead of us in the next four to six weeks but with yields here and probably going lower if you look at it technically, yields are probably going lower. nothing else but equities. and an argument to be made a sea of liquidity coming. first of all, financial conditions are easy. we've just seen a 40% increase in mortgages year over year because mortgage rates have come down and on top of that, the market is expecting two rate cuts at

least by the end of the year with that, you're going to ease global financial conditions and it kind of is a nice set up for equities here. even with the market expecting a trade deal >> the only sort of item in her that no one is expecting is, what happens if the data shakes this off if the third and fourth quarter isn't as bad as everybody seems to think >> well, that would be very good for the market because, you know, uppearnings are going to e zero this quarter and the, mat market is running, running, running. it is a strange thing right now. the generals are running and the big caps mentioned just previously and the smaller stocks are in the tank they're not even close to reaching a new high and they've been down in the last couple of months so, we need to see the small guys come along and if the economy recovers, it will be the small guys that benefit the most >> got it. that's a great point to watch.

all right, thank you, both appreciate it, guys. alicia and barry here is still what is ahead on "the exchange." coming up, a failure to pass the millionaire's tax. anger over salt. and an unsigned budget we'll speak with new jersey governor phil murphy about that and more plus, countdown to the democratic debate. a look at the big issues at stake that could impact your money. and why the loss of "the office" for netflix should make investors nervous. >> no! no ♪ >> this is "the exchange" on cnbc ♪ lower calories. ♪ higher expectations. the light beer you've been waiting for has arrived. corona premier.

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check it out! now you can schedule a callback or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not. welcome back new jersey is looking to jump start some much-needed innovation in its economy. once fifth in the nation in total venture capital funding by 2017 it had fallen to 15th well behind states like florida new jersey governor phil murphy joining me good to have you here. >> good to be back >> let's just talk first and foremost about what happened in this state and why. i mean, it was once pretty good on this measure, but no more >> you could make a very cogent argument that it was silicon valley before there was silicon

valley health care, life sciences, telecom. we let a lot of our edge go and the venture capital piece which you mentioned is a big one and you know this, if you're not in the top five in venture capital, you might have been 45th, never mind 15. we proposed a new incentive program where big companies with tax exposure would buy tax credits from the state and then the proceeds of that along with the care and feeding of those big companies would go down to the start-up community invested by professional venture capital firms and the only requirement is the investment has to be in new jersey we're very excited about it as jump starting. >> it's a clever scheme and it reflects you have a background in investing you worked at goldman and you know the private sector well some would say, why not make the state more competitive lower taxes, better cost of living >> this is not either or and both we try to do that every single day. so, new jersey, i think, on its best day is a good value for money state.

you and i both live here and you pay a premium to be here, but you want to make sure that premium is fair and you get a rich basket of stuff back. publiceducation and transportation that works. i inherited a mess on that front and we're fixing it, but it takes a long time. health care that is accessible and affordable we inherited an economy that was stuck in the mud. >> sure. >> so, it's both of those. getting incentives that are smart to bring things like venture capital money in and also making this an affordable, fair state to live in. >> why the fixation on the millionaire's tax. this i find so interesting is a tell about the mood of the country right now. your democratic legislature is saying no. >> that's right. >> you don't think that is right. why are you so fixated on this and why don't you have support, even ton the left. you'll hear a lot about this tonight on the debates but on the ground with the people who are very close to the population here, don't do it. >> they're not as close as you would think, honestly.

it is overwhelmingly supported in new jersey. 72% of folks asked in the last poll, including a majority of republicans, support a millionaire's tax. i think it's simple. we are the quintessential middle class state. even the wealthiest among us get that they realize that as the middle class goes, so goes new jersey so, if the proceeds of that millionaire's tax is going into public education, transportation, direct property tax relief to the middle class, folks say, you know what, that is a fair deal i'll sign up for that. the legislature feels like they're out of sync with that right now. >> we had former florida governor rick scott on a couple days ago and florida is a state that has taken a lot of population from new jersey, new york and connecticut his philosophy and approach couldn't be more different he said, you know, he got up there and said we cut taxes 44 times and the state had a surplus going and it was business friendly and they're winning. the strategy seems to be winning. >> yes and no.

they're not winning in public education and not winning in climate change new jersey is rated as the best health care system in america. number one state in america to raise a kid. i have nothing against rick scott or florida but if you are working full time and a kid in school that you want to get educated and care about the environmentt and values more generally, i would put our case up against anybody. >> there are great schools and hospitals and i know we inherited a little bit of that, like you said. the question for a lot of folks, what is the business climate going to look like in another five or ten years. another big pharma deal that could mean loss of jobs here the venture capital funding is, obviously, a good way to target some new start-up industries and maybe get people excited newark made some great strides but how do you get industry to new jersey when they can go to the south and the west and so many more business friendly

parts of the country. >> yes and no. they can i think if you're a one issue voter, either a family or a company and all you care about is your tax rate, we may not be your final if you care about the broader spectrum new jersey has the highest concentration of scientists and engineers in the world, not just the united states. if you believe in talent, diversity, location and a business making a decision similar to you would or i would in terms of where is a good value for money location to be, which is safe, which is both good value, but good values. i'd put our case up against anybody's. >> on the budget front what is the plan there i believe also the leader of the democratic legislature had recently proposed a move towards more 401(k) plans instead of traditional pension funds for some government workers. are these the kind of things that could get the things on a path towards fixing that imbalance? because it's huge. >> it is huge.

but it's manageable. you and i are speaking at a very opportune or pregnant moment june 26th and our budget is due june 30th. how this turns out in the next couple days, it's too early to tell i have a constitutional responsibility to make sure that budget i can certify it and believe in the expenses and believe in the revenues and we're in that process and i'm a believer in tax fairness as we already discussed. i don't think you can balance your budget or get to salvations by making cuts that affect public sector employees when they did what they said they were going to do and new jersey the state on both sides of the aisle did not. >> for future workers is that lau logical? >> the savings are not clear a big sugar high associated with the concept of doing that. i want to meet our obligations to regain our trust to work with our public sector employees. we actually, our budget that we put forward has over $1 billion

of real year over year savings and most of it through health care not making the employee pay more or take less coverage but be smarter about delivering that health care. >> sports betting. where we're going with legalizing marijuana whether we're going to have a shut down here in a couple days. >> god willing we won't. but we'll know sooner rather than later >> thank you for joining me. governor phil murphy of new jersey. coming up, the home builders are teaming up with investors for one very good reason we'll tell you what that means and what it means for the broader state of housing. will you pay $100,000 for a pickup truck chevy is betting you will. whether it is a good play by the automaker. automaker. "the exchange" is back in two. ny family, please stand. the world in 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 to "the exchange." here are some of the movers this hour micron is up 13% after a solid beat in its earning report the memory chipmaker also expects demand for its chips to rebound later this year. investors applauding that. fedex up 2% and warning that ending its contract with amazon will hurt 2020 fiscal results, as will the ongoing trade dispute with china fedex is suing the u.s. government over trade export restrictions those shares, again, up about 2% shares of slack up 5% after a bearish call by beard. they're calling it the new h2o

for organizations. the analyst behind that call will join us at 2:00 p.m slack up 30% since its debut last week. now to courtney reagan for an update. a house panel voted to subpoena kellyanne conway to testify as it looks into allegations that she violated federal law. conway did not show up at the hearing after the white house said it would not allow her to appear >> ms. conway violated the law dozens of times by using her official position to criticize democratic candidates and support republican candidates. obviously, that is against the law. >> saudi arabian crown prince meeting in seoul their talks were expected to focus on economic cooperation and bilateral ties and target is going head to head with amazon prime day this

year by debuting an event called deal days. the online sale event will last 48 hours on july 15th and 16th the same time as amazon's shopping holiday target stressing that there is no membership involved to participate. at the cnbc update at this hour, not the last of the competing deals. >> i love it bring it on. this is my birthday week, i'm going to go all out for it >> we know what to buy you a long list of deals >> courtney, thanks. here is what is coming up on "the exchange. ahead, nbc takes its first jab at netflix ahead of its streaming service. a $100,000 pickup truck. apple makes a big bet on autonomous vehicles. and why some say they regret their college degrees. it's all coming up on "rapid fire." is where people first gatd to form the stock exchange which brought people together to invest in all the things

that move us forward. every day, invesco combines ideas with technology, data with inspiration, investors with solutions. because the possibilities of life and investing are greater when we come together. ♪

welcome back let's catch you up on a couple stories on your radar today. it's rapid fire and bill griffe griffeth, contessa brewer and phil lebeau is in the house today. welcome one and all. he looks like he has something up his sleeve.

the battle for streaming content is rolling onwith nbc saying i will remove "the office" from netflix once that contract expires so it can add the sitcom to its own streaming service it launches next year "the office" according to nielson netflix's most watched show last year, accounting for 52 billion viewing minutes and disney, meanwhile, has approached netflix executive for its new streaming service. n netflix shrugging off today. >> it went off six years ago i realize there are people who like to watch it and this doesn't end until the end of next year. are people still going to be watching "the office" at that point? >> what about lag time if you're a person who has not seen "the office" you're going to rush to binge watch it and anybody who is going to make a

$100 million worthwhile. >> watch it because it's nice to have on. >> they're trying to memorize it >> it's kind of the go-to wallpaperish kind of content and that's what a lot of netflix is. you're not going to go for the original show once a week or whatever >> i think this is a really good idea, mr. burke. okay just want to get this out. >> as soon as the figures went out, it was clear that if "the office" is one of the most watched shows it is going to be a risk if it goes away and another most watched in 2018, "friends" which is a warnermedia and "grey's anatomy" from disney and "ncis. so, this is all we got >> this is similar to reporting on tesla, trust us we have plenty of orders how many do you have that's for us to know. if you don't have a third party

independently corroborate this people look at it and say, whatever >> if it's true that over two-thirds of the viewing time is spent watching these library shows instead of the original content, they made a big investment, netflix has to get up to 30%. it sounds like they'll have to spend a ton of dough to make sure they're not vulnerable to losing this content. >> everyone seems to agree. >> we're with you on that one. should we take a vote? we all agree >> chevy is working on a new version of its silverado which could become the first u.s. pickup truck to cross the $100,000 price tag this even as new auto sales have dropped 3% or so this year but truck demand remains strong. what is so special about this chevy? >> i want to hear about this thing. >> if you trick out the highest end pickup truck out there very few people are going to do that very few people are going to -- >> what does it mean >> top end in terms of all of the amenities within that

vehicle, then you could possibly get up to $100,000 i know this headline will catch a lot of attention the reality is very few people will be paying north of $90,000 for a pickup truck but, the broader issue is people don't realize how much pickup trucks have gone up in price the average now is $50,000 and nobody bats an eye if you talk to people out in middle america how much did you pay for that pickup truck 50, 55 no big deal. that is because -- >> is the flip side of that coin financing. this has come up in housing lately a friend of mine who is making the case we should have a 50-year mortgage saying, look, it's worked for the auto industry. they went to longer loan terms they're seeing higher sale prices and better sales. it sounds like it could end poorly, but for right now it seems to be working great for everybody. >> there is a level of loyalty with pickup trucks that exceeds anything in any other vehicle. there are chevy people who are like, i have to have the latest chevy. i love it. my family always had a chevy

pickup truck and they will pay north of $50,000 >> by the way, ford f-150 it's 97,000 and change. getting close anyway and a few years ago i test drove, i was going to buy, no lie, a king ranch. right. >> what is a king ranch? >> it's a ford tricked out and it was used so it was like $50,000 but it was $50,000 used it was like driving a sofa it was fantastic but then i thought -- >> fantastic to drive a sofa. >> where am i going to park this thing in manhattan >> this has to be an out of town only kind of car >> i can be a country girl >> what is it called >> the king ranch. i have a lot to learn. let's talk about t fafacing a delivery bottlenic the company delivered only 49,000 vehicles in north america this quarter as opposed to the

90,000 plus deive alivered last. elon musk said it has enough to set a quarterly record but the cars are just not all in the right locations yet. tesla has gotten creamed but a strong rebound by june. >> we will get their numbers first few days of next week, likely by tuesday. by wednesday quarterly delivery numbers. i think what you have to take away from this is we constantly hear about bottlenecks in terms of deliveries. whether or not they can reach certain destinations they're deploying people so they can make sure the vehicles can get where they need to get a quantum leap being a niche manufacturer in anything but specifically autos to becoming something closer to main stream or more widely spread like tesla is so, look, i want to say the number is next week. these reports that come out, hard to really readmuch into them they're mixed messages

constantly >> i'm fascinated by how fascinated we are by elon musk and we follow every zig and zag. every e-mail every tweet. everything did you ever see the movie "tucker" remember that. >> yeah. >> 1998. i'll fill you in here. this was a project of francis ford coppola and it was a true story about a guy named preston tucker after world war ii who decided to take on the auto industry and develop the perfect car. and it's called, the movie is called "tucker the man and his dream. >> a bad sign i never heard of the car. >> i won't give the ending away. you don't see tuckers on the road they're in museums right now i read the other day of the 51 that were ever made, francis ford coppola owns two and george lucas owns two >> at least they crossed the -- >> it's happening again with elon musk right now. >> he has gone further than anyone else.

you have to give him credit for that he has delivered for the most part on his promises in terms of developing this company. the question now for investors becomes, can they hit certain benchmarks and that is why next week's numbers are so crucial. >> yeah. like you said, with this stock, it all becomes about the speculation of can they hit them or not as we saw, a nice rebound into those numbers so far finally this a new poll found that two-thirds of americans are kicking themselves over their college degrees. 66 p 66% of employees said they regretted something about their education. top regret, no surprise, student loans. area of study, humanity majors reported the most regret the s.t.e.m. were fine they were actually the most satisfied with their degrees no surprise. >> what are you looking at me for? >> also because there is a split in who feels satisfied baby boomers feel more satisfied than gen xers.

the thing is mycollegeguy.org. if you want to major in a liberal arts subject, go for it. the practical stuff like getting a job will work itself out what i mean, college costs are outpacing wages right now. there are so many choices that are not practical. they're not a good return on the investment and where are the college guidance counselors who are standing up and saying so or for that matter, the parents >> my joke in college. i had this joke when i graduated from college you know, my engineering friends there were career days career days in the sciences and things i was a journalism graduate. the journalism department closed before the end of the school day. a sign that said, you thought you were going to get a job with this but, you know, if i had to do it again i would probably study economics or political science or something that could be applicable >> there are plenty of warning signs out there. you know where i stand on this you sign the dotted line for the loan, you took out the loans,

you major in philosophy, you knew what was going on when you signed those loan papers do not complain. no, if you don't know, well, it's, i'm sorry. i don't feel bad you shouldn't be studying philosophy and shouldn't be signing up for thousands of dollars in loans you know what you were taking them out for and you knew what the market is out there if you were a literature major. >> this comes a lot because four-year degrees are lotted and they're pushed for kids in college and two-year courses of study, vocational tech that all gets to the side although that is where the jobs are with the salaries that could pay for it >> the only thing i worry, journalism was a pragmatic major. i am doing a job-focused thing but if you lose that in college, where are people going to get it i am not impressed what is going on in high school education wise where are you going to get that exposure to literature and history? >> i agree

>> that is my concern. >> why can't that be part of other degrees? >> exactly >> it can be part of other degrees. >> that was part of our journalism degree. you had to have some english and other things part of the whole degree >> i studied ballroom dancing and it comes in very useful at weddings >> the footage from that is still, no one should ever see. thank you, all phil, a pleasure >> good to be here >> phil lebeau, contessa brewer. a bigger slice of the family rental market. time builders are now taking we'll have more on that story we'll have more on that story ahead.. t want any trade minimum. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums.

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welcome back to "the exchange." investors going after the single family rental market now they want brand-new homes and builders are shifting gears to cater to them diana olick is live in washington with more

>> a florida builder is in manhattan shopping his business to investors offering private shares in a soft ipo hoping to raise $100 million to build more than 1,000 new rental homes across florida. the homes will be sold in bulk to big investors >> these homes will be sold the day they're complete and that is pretty nice for a development company like ours. >> the build to rent business is exploding. several companies including big names like toll brothers and lennar are dipping into it no repairs, multi-year warranties and the rents for single family are growing fast 4.5% annually now compared that to 3% year growth for multi-family apartments and much less turn over in single family and it is much less volatile than the new homes sales market. kelly? >> in the florida case that you mentioned, does that mean typical buyers, regular buyers who wanted a house like that are going to have to wait.

i guess, i'm saying, are they crowding out demand for those who want to buy a house? leaving them with only rent as an option? >> no. i mean this builder is specifically homes for people who want to rent and people who want to invest in rental homes builders building homes for the regular buyer. we have more supply than demand and we need builders to ramp up that supply, but this is just another category >> and it's such a hot one diana, thanks very much. fascinating stuff. coming up, the first democratic presidential debate kicking off tonight. it's already, look, happening. what are inesthavers hovestors hear from it we're live in miami where the final preparation is under way. here is a look at the top tickers trending down. micron, apple and crude oil drawing interest today we're back itwn o. hey! i'm bill slowsky jr.,

i live on my own now! i've got xfinity, because i like to live life in the fast lane. unlike my parents. you rambling about xfinity again? you're so cute when you get excited... anyways... i've got their app right here, i can troubleshoot. i can schedule a time for them to call me back, it's great! you have our number programmed in? ya i don't even know your phone anymore... excuse me?! what? i don't know your phone number. aw well. he doesn't know our phone number! you have our fax number, obviously... today's xfinity service. simple. easy. awesome. i'll pass. welcome back we may be 495 days away from the 2020 presidential election, but the first presidential debate is upon us.

elan is live in miami. what are the key things and issues to listen for >> well, kelly, all of the candidates are promising to take on the trump economy, get rid of the tax cuts and shake up wall street but is that really what voters want to hear according to the latest poll, the economy actually took a back seat to health care on the list of issues that democratic voters want the candidates to address over the next two nights and when we went out and talked to voters ahead at the debates, we found they were really focused on kitchen table issues. >> how are they going to help benefit the social security? keep it running and how they're going to help other people and getting people back to work and getting back to normalcy not all this stock market stuff' everybody doesn't have stock market. >> americans generally believe that trump is doing a good job of handling the economy. 51 to 43% from real clear

politics kelly, what democrats are going to have to do over the next two nights is convince voters that that number is not good enough back to you. >> thank you, ylan the 2016 elections drew viewers to cable nominee trump now media companies face a bit of a conundrum audience interest in the president is slumping. so what are news networks to do with 2020 looming, given all the time and money they have invested in covering the president. here to discuss that, axios reporter, neil rothchild great to have you here and neil, you outlined this. just give us some of the numbers about -- we're using tv as a proxy, but seems interest overall in the president or maybe in politics generally is declining? >> yeah. so we're seeing a few different trends play out. it's not just cable news it's not just web, it's not just video views. we've seen web traffic kind of from the first six months of his presidency to the most recent six months it's down 29%. if you look at the interaction

rate on trump's tweets, a metric for how potent they are, how much interaction each is generating based on the size of the audience, that's decreased from .5% around his inauguration down to around .17, .18 most recently and also my colleague, sarah fisher, spoke to media executives, saying they're seeing less interest in politics so there's a few trends going on that seem to be pointing in the same direction that -- the interest in the trump bump that we saw in the last couple years seems to be dissipating a bit. >> and porter, in this story they talk about how the show being is wearing off at the president's style. we know what he does, what he's like they say accusations of treason hardly raise an eyebrow any more the policy priorities are all on the table. you know, if this -- discussion were about the president's re-election hopes, i guess that would be interesting but what does it tell you for the media company? so what does this mean now

>> the media companies, particularly the cable news networks, we're basically a new branch of the federal government for the last two years and what's happened now, it's overkill nothing can shock the public they're exhausted with the political back and forth news has become more opinion than news. and basically, it's the demographics that are killing the ratings, because the average demographic is in the 60 to 74 age bracket. it's the next generation of viewers, they are not watching television whether it's news or politics or entertainment. they're going over the top to streaming. >> so if i'm an investor in these companies, what do i want to see them do in order to make me feel better about owning these stocks >> we've had such consolidation already in the major media

companies. among the major media companies. and it's going to continue but they're all going over the top. and basically, we are looking at a declining medium in terms of cable. maybe ten years from now, there will be no cable everything will be streamed and over the top but all of the -- you have disney coming out with their streaming and they're already there with espn. you've got your company, nbc, is bringing a major streaming network later this year. at&t and time warner are launching theirs and there will be more so the old legacy media, the broadcast world that we know for the last 50 years, is rapidly disintegrating and disappearing. >> at the same time, neil, it does seem as though a lot of the interest, especially the democratic side right now, is coming from the younger population so it doesn't sound to me like what we're saying is, hey, they're all on netflix, they're all streaming disney movies, they're not interested in politics how does this interest play out,

neil, if not through these traditional channels >> well, i think what you're seeing is, you know, it's not like the appetite is completely going away right? it is just going to be migrating it different places. the candidates, you know, that can be the most authentic to who they are on channels where we're seeing, like, instagram, snapchat, if you can promote a presence that feels, you know, true to who they are and not kind of canned and manufactured -- >> right. >> and focus group tested, that's when you'll start to get a true connection where, you know, you get a true match between who the person is, who the channel is, and what the audience is looking for. >> all right so porter, social media is the new media. >> social media is really important. but also, the producers and broadcasters have to realize that 18 to 34, that key demographic, they want it short, fast and straight.

five minutes is a maximum time for a story. three minutes or two minutes -- they also want it mobile they are not going to sit in front of a big screen and watch news and entertainment it's got to be mobile. it's got to be quick, fast, axios brought some of the over the top news networks. they're the ones that are going to thrive. and basically, the traditional news networks are going to compete and be there, as well. so will the print media, like the "washington post" and the "new york times" and "wall street journal." they're -- the "new york times" has 8.5 million subscribers to their digital side they never had more than 1.2 million in print. >> although that's cross words and cooking. we'll see how this plays out beginning tonight, especially. thank you both, porter bibb and neal rothschild. bitcoin, whether the rally can continue we'll be right back.

welcome back this rally continues hitting the highest level since january of 2018. let's bring in seema mody. we're watching this at 13,500

now. >> they said the factors behind bitcoin are very similar to gold so the rise in trade tensions, lower rates. investors in general trying to diversify their portfolio with stocks near record highs since tuesday of last week, bitcoin gained 40% year-to-date, now up over 250% so that's prompted the larger debate is this rebound in 2019 different than 2015. is are there more atms and retailers using bitcoin, no. >> i didn't think so i rarely ever see it >> institutional investor participation, that has been on the rise if you talk to fidelity, which has some $7.2 trillion in assets. one of the few asset managers that allows clients to trade bitcoin on their platform. they will tell you, pension

funds, as well that is different -- >> pension funds. >> this year versus 2017 and another thing i would say, the market structure is also developing you had ledger x getting the approval from the ftc. >> crazy we'll keep watching. seema, modi, thanks. that does it for the exchange today. i'll join tyler for "power lunch," which begins now. >> kelly, thank you very much. we will see you over here in just a moment. i'm tyler mathisen welcome, everybody, to "power lunch. new at 2:00, president trump heads to the much-anticipated g20 summit to meet with china's president xi will we get a trade deal signals of progress, whatever. treasury secretary mnuchin sounding bullish today. and slack up 40% since its debut last week. a bullish new call saying it's going higher the analysts join us. and the 2020 democratic presidential debates kick off tonight. see if you can list all of the people who will be on the podium tonight. see if r