>> beat on earnings, cut expenses like the stock that really focused on the mexican trade. i think that's going to be a winner >> john. >> fti this is tech nip it's basically an oil place like it great one. >> by the way, cleveland on the closing bell today "the exchange" starts right now. lissa, thank you very much we'll see you in an hour so here is what ahead. it is the politics versus the data versus the market which one will the fed listen to most as the president and investors ramp up the pressure to cut interest rates? maybe by a full half point it is not just affordability and lack of homes that is becoming the issue vacant properties, abandoned properties can soon take a big toll on the market as well new plus, another competitor for netflix. it is the consumer versus the transport, and here come the

mopeds in brooklyn, maybe coming to a neighborhood near you that is ahead in "rapid fire." but we begin with today's market >> i love a vegemite sandwich. you mix it with a little bit of butter i will love it >> they are in the green right now. vegemite market. the dow industrial is almost up 100 points so we are having a good today the s&p 500 just about at that 3k level, 3,000 watch there. again as we try to broach that level. gold prices on the macro side of things take the highest level since may of 2013. as you can see, we're down just marginally here in that trade. but take a look at that trade. we got to go all the way back to march of 2013. and, remember, we're talking about a 12% move as people

factor in the fact that maybe the fed is going to ease conditions and then the stock of the day we'll give a big gold star over here to microsoft. still up 1.5%. that's a record high level that we are seeing currently. a short move higher ever since those december lows. and microsoft, tyler, just for your own edification, $1.06 trillion in market cap over to you guys >> all right, dom, thank you very much. welcome to "the exchange." i'm tyler mathison i am in for kelly evans who's enjoying a few days off. the new york fed walking back its president market-moving remarks of yesterday saying john williams was just giving, quote, an academic speech when he said that policymakers need to add quickly as economic growth slows. federal reserve widely expected to cut rates at its meeting later this month but now the big debate is just how big the cut should or might be rick santelli joins me now with

what the bond market is saying we were talking about this the other night, and you said you've gone from believing a quarter point. but now you even have to consider a full half point >> yeah. i think you have to consider a half point i don't know that i would personally bet on it but the real issue is how low the glide of our interest rates and the global interest rates are. they are touching historic lows for this cycle and the real issue i think this. that you've talked about politics, data, and the market i don't buy it i think there's the fourth issue, which is now the new third pillar, and i think that's global, global and i think the walkback is absolute horse hockey. okay they are surgical about every word we have investors that count statements i just don't buy the fact that he throws this out there, the new york fed president williams, talks about things about rates below 1%, and doesn't believe that this is going to somehow

affect the market. of course it's going to affect the market you can't unring a bell, but ultimately, tyler, i think the issue is that when jay paul went to paris, he really changed his views in a way i think the ecb is about ready to embark on even more stimulus. bigger inversion in the curb i think that sends a negative message. i think the fed's trying to get in front of that it's a losing battle >> all right, rick santelli, thank you very much. president trump commenting on the debt ceiling just recently let's take a listen. >> thank you very much i can't imagine anybody ever even thinking of using the debt ceiling as a negotiating weight. when i first came into office, i asked about the debt ceiling, and i i understand debt ceilings and i certainly understand the highest rated credit ever in history and a debt ceiling

and i remember saying to senator schumer and nancy pelosi would anybody ever use that to negotiate with they said absolutely not that's a sacred element of our country. they can't use the debt ceiling to negotiate and don't forget, president obama during his eight yea, he created -- he doubled the debt you think every president, every president if they doubled the debt he doubled the debt, not a million, but a billion but president obama put $10 trillion and doubled the debt it went to 10, it went to 20 it went to even above 20 and some of it was attributed to him. so, when they start talking about using the debt ceiling as a wedge to negotiate or things that they want, they are told very strongly they would never use that

that's a very, very sacred thing in our country, the debt ceiling. we can never play with it. so i would have to assume we're in great shape but just remember also the previous administration doubled the debt in our country. you take all of the presidents that came before, doubled the debt it's a pretty big statement. and certainly it's a big statement to be talking about for that party to betalking about using the debt ceiling and i don't think they are it's been mentioned but i don't think anybody would want to play that >> what do you think about the prime minister - >> the president is having a gaggle in the white house about the debt ceiling on what i suspect is a very, very hot friday afternoon. >> it sure, tyler. the president there making a differentiation between himself and president obama, his

predecessor. but the irony is he wants the same thing that barack obama wanted back in 2013 which is he wants capitol hill not to use the debt ceiling to demand additional concessions from the white house. president obama said that he did not want to negotiate on the debt ceiling in those days the rules were entirely in reverse. you had democrats in the white house and republicans on capitol hill because they know it's a must have initiative. in this case we've got a republican in the white house saying he doesn't believe that the democrats on capitol hill are going to use it to negotiate. we'll see. these negotiations have been ongoing behind closed doors for some time now. the president saying he believes that the democrats won't use it to negotiate with. we'll see whether that turns out to be true or not. >> thank you very much following the story for us from washington the market's breaking a three-day losing streak as stocks creep back to record

levels while some investors may be nervous about the high, he said on squawk box today that people are playing it too safe. >> we saw people derisking still. i think this is going to be a mistake. people are along to invest in equities and you're starting to see corporate earnings are coming in pretty well, you know, we still are constructive on the world. let's bring in rich weiss at american century and jim, cio of u.s. concentrated growth of ab jim, let me start with you are people being too cautious about risk, or are you getting more cautious? >> i think people are being too cautious you look at money flows and tons of money is flowing into bond funds and out of equity funds. a lot of people have missed this rally. when i look at it when i look at

where equity prices are versus bond field yields, equity is still pretty attractive to me. i assume that in a market that might be a little topee, you as an active manager would say active funds might have some advantage. >> absolutely. look at this week alone. you had netflix really disappoint and microsoft in and out of the park within the railroads. you had csx disappoint so being selective, being active right now is really what you want to do in our opinion. >> rich weiss what, do you think? are investors being too cautious or should -- is their caution well-founded >> well founded no question. the stock in fact is clearly speeding off of interest rates even with a 25 or 50 basis point cut around the corner, valuations are still not

compelling other markets are watching out for. i think it is prudent to be cautious the market is very topee it's a little early in the earning season of course right now. but earnings growth, marginal in the handful of companies that have reported so far on average negative surprises on the top line of revenue growth so i think you really need to be cautious here. we are not selling stocks, but we're certainly not throwing money at the stock market. >> jim, speak directly to rich >> i think that if you're selective, you can find some great growth companies right now. they raised their organic growth for the year microsoft numbers just off the chart. even charles schwab, their expectations of what's going to happen during the next two quarters, well above >> so, rich, do you quarrel with

jim's point of view? or do you not quarter yell with say and -- but overall it's time to be cautious >> overall time to be cautious don't quarrel with jim, though we do have pockets of opportunity. but i dare say we're on the other side not growth, large growth has been the play over the past ten years, but, hey, that's like driving the car looking in the rear view mir are yo you're likely to go off the cliff with that one. value stocks which have been out of fair for quite some time, equity income funds. this is where we're more safely positioned and in particular in the u.s. we've been overweight in the u.s. for some time >> i want to give you a quick final rejoinder there because he said growth is rear view mirror stuff. >> if we can find a portfolio which we think we can that can grow revenues high single digit, that's attractive in any

environment. >> get through the weekend, guys it's going to be hot rich, jim, appreciate it thank you. all right. here is what else is ahead on "the exchange. >> coming up, it's not excessive purchases or big loans that can cause the next housing crisis. it could be empty homes. we'll explain. plus, some investors may be worried about the state of the economy. but it looks like consumers aren't everything from fast food to credit cards to clothing stocks continue to hit new highs. so where's the disconnect? and the big business of children's sports. the massive complexes to year-round tournaments year-round tournaments it's now worth $17 billion this is "the exchange" on cnbc

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when it comes to housing, affordability and lack of homes often seem to be the most talked about issues but there is another problem that many are overlooking in the market right now to discuss it let's bring in kim hart, managing editor at axios kim, the problem that you have put your finger on is vacant or abandoned homes, not just in urban areas but in all kinds of areas in different cities around the country. how big an issue is it >> it's bigger than a lot of

people think, actually, tyler. and when you hear the words "housing crisis" in cities like san francisco and washington, d.c. and new york, it's usually talking about how expensive it has become to own or even rent housing there. but when you get outside of those housing bubbles, if you will, the opposite is true you actually have some cities, some smaller cities, even rural areas that have really high vacancy rates upwards of 20% in some cases where abandoned houses can sit for sometimes years, and it becomes a real drain on the local government to try to get a handle on them. >> i can think of two -- i've driven through pennsylvania and there are lots of towns that were once manufacturing centers, some heavy, some lighter, where there's a lot of abandoned homes. but in larger cities, i think of detroit, i think of baltimore, i think of gary, indiana am i right >> that is absolutely right. you're seeing the vacancy rates being fairly high in mid-sized cities in the midwest and along

the upper northeast where, like you said, they were once manufacturing hubs, they were once where very prominent mills were that employed large numbers of people. and as the industrialization has happened and those plants have shifted to other places overseas and population has been lost in some of these areas, a lot of these homes have fallen into foreclosure. it was really high during the foreclosure high of the late 2000s. and while that's leveled off nationally, it's still pretty high in those mid-sized areas. >> so what's the solution here what are some of the programs that either governments have come up with, are these properties investable in any sense? what are the solutions >> yeah. that's a great question. so you see a place like gary, indiana, for example, that has one of the highest vacancy rates of single-family homes they first took it on themselves to figure out just how many homes there were and then they have gone up through and come up with a plan

to demolish as many as they can in order to be more appealing to developers to come in and get large swaths of undeveloped land where they can build in new townhome communities to appeal for, for example, millennial generations who want to come in and find more affordable housing as they are priced out of the largest cities >> is the simplest solution to demolish the house >> well, that's usually the first step in places where houses have been vacant for years and are beyond repair. a lot of cities are finding that it's food to have a fresh slate, and that's more attractive to developers it costs about $10,000, and that's probably a conservative figure to demolish a single-family house. when you have a city like gary, indiana, which found that it had close to 7,000 properties that needed to be demolished, that's a significant drachblt that can be $70 million problem that a city that's already strapped for cash has to deal with. you have other cities like

baltimore that have come up with creative ways for the city to take possession of abandoned or near-abandoned properties in order to either fix them up themselves, rehabilitate them and make them available for first-time home buyers or to demolish them and bring those developers to the table and have more incentive to spend the money to come in and redevelopment them themselves. >> all right, kim, thank you very much. have a great weekend still ahead, plans to hold an analyst day on july 31, but its aeo just made a comment that might signal flagging confidence in the company but first an american has not walked on the moon in, believe it or not, 47 years. but as the public and private sectors work together, that could be changing in the next few years. the future of america's space travel, coming up.

welcome back to "the exchange," everybody here are some movers this hour crowd strikes soaring today after the company reported better than expected quarterly results. revenue beat estimates, also issued strong second quarter and full-year guidance that's one of the reasons that stock is up 15.4%. amc climbing more than 14% credit suiss still sees some

risks on the horizon including media consolidation and fewer people in the theaters that's always a challenge to theater owners and shares of boeing leading the dow after giving some details on how much of a hit the company will take because of the grounding of those 737 max planes and let's get some more details from phil labeau >> hi, tyler a little bit of certainty about how much the max will be costing boeing, not only for the second quarter but over the next couple of quarters over the next couple of years it plans to see a reduction in its q2 earnings, about $5.6 billion it's going to take an after-tax charge of 4.9 billion. all of this tied to the problems with the 737 max they remain parked they've been that way since they were grounded in mid-march though, boeing did say yesterday it expects the 737 max to return to service in the fourth quarter for the three u.s. airlines that have grounded maxes, they've been unable to fly

remember, southwest joined united and american in saying we're taking it off the schedule at least through november 2nd. i should also point out, guys, there are many in the airline industry who are questioning if these planes will be flying by november 2nd still, take a look at shares of boeing it reports q2 earnings before the bell on wednesday. guys, this is called getting the information out there, especially with regard to the max. and, tyler, that certainty, that's the reason that investors are saying we have a little better understanding of the max impact on the bottom line. >> i was thinking, phil, why are you wearing a sweater today in chicago? then i realized that you're not in chicago [ laughter ] >> it's a little bit of that morning chill out here and it's not much of a chill i'm going to be taking this off shortly. >> we'll see you little later, phil to meg tyrell now. >> here's what's happening at this hour. the world health organization says that the congalese woman

who died from ebola did not travel to rwanda >> essentially for the rest of the world, the main recommendation is support and don't panic. do not shut borders, do not put on travel and trade restrictions do not panic >> more women are using marijuana before and during their pregnancy. that according to a new study. its researchers surveyed 277,000 pregnant women marijuana use during pregnancy has been linked to low birth weight and the nfl announcing it will not suspend tyrek hill for allegations he abused his three-year-old son saying they believe a crime was committed but could not determine by whom. and that's the cnbc news update this hour. >> meg, thank you very much. and here is what's ahead on "the exchange. >> coming up, even more competition is coming for

netflix. don't count the consumer out. and are mopedr about to take over the road? it's all ahead in "rapid fire. prevagen is the number one pharmacist recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.

let's catch you up on a few stories that should be on your radar. it is time for "rapid fire" here here first up, two of britain's biggest broadcasters teaming up to take on netflix in the uk britbox. it'll cost $7.50 a month, and unlike netflix's basic plan in the uk, it'll let subscribers watch tv show as cross multiple screens and devices simultaneously the news comes after netflix missed big on earnings everybody's getting into this business >> the land rush is on there is no secret about that. so everybody's going to try and see. but the key is do you have the content for this and right now the scouting report on britbox is they don't have as much content as they're going to need. they may have to pair up with some other european broadcasters as well who have more content so that they can compete on a level

playing field with some of the other streamers out there. >> sure. it'll be curious to see if they invest as much as netflix has to kind of build out that programming lineup yet another subscription the price point is a little lower than netflix, but what's another $7.50 when you've got hulu and spotify >> but they do have the original "office. >> they must have downtownn abb. >> and until cable companies offer ala carte service, people don't want those channels at like the 200 level that they've never seen and don't carry about. >> well, good for wilfred frost. among the names are mcdonald's, starbucks, rosters how many of those have i patronized in the last week?

railroad giant csx, however, sounding the alarm on the u.s. economy along with several other transports so could this be the tale of the two economies? the consumers versus the industrials in which, kate, is a better telltalle, not of where the economy is but of where it may be going. >> we are just about to led into big restaurant earnings next week which i'm very pumped for ceos felt really good about the consumer and even earlier than that when the government was shut down, they were still saying that they weren't concerned and that they weren't seeing any shakiness in the consumer show up in their earnings or their bottom lines it'll be interesting to see what they say next week starbucks up 40% mcdonald's up 20 chipotle up 75%. i mean, it looks like consumers are doing pretty well. >> exactly so we just had a big week of earnings for transports. one of the things that a lot kind of went under the radar is the nation's largest trucker

actually lowered their guidance for the rest of the year also warehouse space is at 5%. that's really low. so that kind of signals that a lot of things aren't going to be coming in. or where are they going to go? they might even cost more. it's not a great environment long-term. all of those companies you named, that's what people buy when they want something >> consumer's good, manufacturers not, and i blame the tariffs. i think that's where they are feeling the heat where the consumers are not because the job market is as strong as it's been in 50 years so they are feeling confident. they don't mind going out there even if the prices go up a little bit some of those companies do have pricing power. they've taken advantage of that. and they're able to pass on some of those higher tariffs but not everybody can, especially the truckers and the rail companies. the csx ceo said this is the weirdest economy he's seen in 40 years. >> and i think that's part of the reason i think it's the tariffs that are taking the toll. exvq manufacturers are holding back >> that word uncertainty that

jerome powell keeps using. a lot of these are fast food stocks, not a very high price point, but obviously still expendable income. >> if you've ever opened up a safe deposit box at your local bank, you may think that nothing can go wrong but you may be surprised to learn that the bank may not be obligated to cover the full value of the box's content this is one of the things i never thought i needed to worry about. >> they are not covered by fdic insurance. when you think about it, it's not part of a bank's traditional business they are chartered as a lending operation. they're not there to be a safekeeping operation, per se, unless you're talking about a safe deposit account so, people are learning the hard way that the stuff they put in there is not -- number one is it's not insured and number two, if it gets lost,

banks have a cap on how much they are liable for that >> and it varies bank by bank. jp morgan may have one and bank of america another >> it was ten times which was paid to rent which i think is $246 so what are you putting in there? safe deposit box goals >> but the risk here is not that the boxes themselves are unsafe but that with all of the consolidation as bank branches move and close and those -- your box may not be on bloomfield avenue and north fullerton street anymore it may be in clifton, new jersey now. and they may not know where you live anymore >> can i bring up one other thing about safety deposit boxes? a lot of times you put things that are priceless, photos, so that outweighs any type of reimbursement that you would get from the bank anyway and i think we all thought these were safe places to put things

>> don't think like that anymore. >> speaking of things that may or may not be safe, electric mopeds they are moving into brooklyn and queens, but is new york ready for the next wave of ride-sharing mania that's where we will find rahel soloman. i saw you riding earlier today, rahel. >> looking very steady >> you look great. >> yeah? okay that's a good thing. okay so, yeah this company started in brooklyn really taking brooklyn and queens by storm. so you got to download the a, it starts on the app before you can get approved to ride one of these mopeds, you have to send a picture of your driver's license as long as you're over the age of 21, you don't have any duis, a clean driving record, you should be good to go so these are all over the place in brooklyn queens the company behind it, revel, they started with just a pilot in late may they expanded to a

thousand emopeds since late may they've had over 200,000 rides. they are seeing about 750 users sign up each and every day the average person riding this is about a millennial, about 27 to 35 years old. also the average trip is about three miles. and 75% of the people who drive this and ride this are men >> but they supply helmets, but do most people wear the helmets? >> so, tyler, that's a really good question. when you download the app and when you start a trip, the back of this does open. so it's an incentive and a reminder to put on your helmet but of course they can't monitor everyone but, yeah. you are supposed to wear a helmet it even has it right here, helmets required i suppose if they catch you, they can suspend your access that's what the ceo told me. but i rode it earlier, and honestly i wouldn't want to ride it without a helmet because it's a motorized vehicle. it can go up to 30 miles per hour and you can't ride it on

the sidewalk you have to be on the street so you should wear a helmet. >> thanks, rahel and i want you to motor on out of here just for dramatic effect but one of the things is i guess you just leave it and park it there on the street wherever it is >> what could go wrong >> what could go wrong in brooklyn i don't know or any major urban area. dd roy did a similar story in san francisco and people were vandalizing these scooters these, by the way, are pretty large. those are more like motorcycles. >> i rode the bird in nashville downtown first of all i have a little road rage, which i have shared on the air before, so these aren't good for me because i need to have hands-free so one arm to wave or do whatever to my fellow drivers i am from new jersey [ laughter ] but i was on the bird, and it was a little risky downtown. i'm an aggressive driver and i felt intimidated >> i am going to follow up on what kate said

i've been in nashville, too. and i don't know if these are micro mobility, but they've actually just clamped down on it they are going to get rid of half of the operators in town, limit the hours. a lot of people are complaining about it there was someone that was badly hurt by it >> l.a., chicago, a lot of complaints about it. so this whole model where you can leave them anywhere seems to be getting a lot of pushback so i think that's going to be one barrier for growth >> thank you >> you and road rage >> i would never rage at you guys on the road don't you worry. >> we are number one sign. it's been 50 years since the moon landing and an american has not walked on the moon since 1972, but that could soon change a look at america's modern lunar travel plans next. woman: my reputation was trashed online.

i felt completely helpless. my entire career and business were in jeopardy. i called reputation defender. they were able to restore my good name. if you are under attack, i recommend calling reputation defender. vo: there's more negativity online than ever. reputation defender ensures that when people check you out, they'll find more of the truth, not trash. if you have search results that are wrong or unfair, visit reputationdefender.com or call 1-877-866-8555. this weekend marks the 50th anniversary of the "apollo 11" moon landing morgan brennan has a look at how the space program has changed

since 1969 and american's new plans for lunar travel >> reporter: 50 years ago, the first humans stepped foot on the moon the historic "apollo 11" mission sinched american's dominance in space, it wayned after the cold war's close. now that's changing. companies like elon musk's spacex pioneer reusable rockets that cut the price to go to orbit, ushering in a new era of billionaire-backed space exploration that gives the u.s. more options as it rethinks its strategy for the final frontier. >> now has come the time for us to make the next giant leap and return american restaurants to the moon >> reporter: nasa's new lunar program is artemis, named after apollo's twin sister, the greek goddess of the moon. it would send americans back in five years, a feat that can only be achieved with the help of the private sector chad anderson, the ceo of space

angels says we're in an entrepreneurial space race >> we've gone from a dozen privately funded companies in the world to now 476 companies today. they've raised 22 billion of equity capital >> reporter: one start-up space angels has invested in, astro-botic which builds robotic landers has almost $100 million in contracts, including recent awards from nasa >> we offer nasa a much more affordable opportunity to regularly fly payloads to the surface of the moon, and that's going to open the doors wide open to scientists and explorers and technology developers all over our country and all over the world to begin to understand the moon in much better ways >> reporter: it's just one example. companies are focusing on everything from rockets to moon mining to habitats jeff bezos' blue origin spent the last few years designing its own lunar lander, the blue moon. a space station which would

orbit the moon including sierra nevada corporation are competing to build >> the purpose for that is for nasa to support space exploration on the moon and eventually other locations >> reporter: but it will all take more money. up to $30 billion over five years according to nasa for si err va nevada's lensia, it isn't a matter of whether it goes mainstream but a matter of when. >> i want to someday walk into a school and say, hi, i'm steve, i'm an astronaut, and the kids say, big deal, there are a gazillion of those that's my goal >> morgan, i get the idea that going back to the moon is going to require the private sector to be involved. but my more fundamental question is why do it what is the attraction to go back >> so here is the way nasa and, quite frankly, entrepreneurs like jeff bezos who's very keen

with all of his efforts at blue origin this is how everybody's thinking about it you go back to the moon this time to stay, this time to learn, and basically use it as a testing ground for life on another world. also, you have water there, you have other potential materials, resources, and it could become a weighstation for further deep space exploration and to our travels to mars. >> all right, morgan, thanks very much. >> that's really how nasa is thinking about it. >> they are thinking about it as a permanent installation on the moon >> reporter: yes and by the way, the rocket that is expected to take us there is the sls. it is a nasa rocket. it's being built by boeing just to give you some context on where i'm standing right now, this is launchpad 39b. this is where that rocket would launch when it is ready in the coming years so it's in the not just these new space companies but also the incumbents like boeing who are involved in this as well

>> morgan brennan down in florida. youth sports is a booming business, but it's also got a dark side that poses health risks toou yng players we'll explore it in two minutes. with all that usaa offers why go with anybody else? we know their rates are good, we know that they're always going to take care of us. it was an instant savings and i should have changed a long time ago. it was funny because when we would call another insurance company, hey would say "oh we can't beat usaa" we're the webber family. we're the tenney's we're the hayles, and we're usaa members for life. ♪ get your usaa auto insurance quote today.

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if you've ever gotten up at 4:00 a.m. to drive your child to a soccer or baseball tournament, hockey tournament, hours from home in another state, you're not alone. youth travel sports today is estimated to be a $17 billion business that keeps on growing, and the explosion is catching the attention of a number of states and towns hoping to benefit. joining us now is dev, he is the founder and ceo of sports facilities advisory, a company that advises cities and towns as they build fields, tracks and other venues for youth sports. welcome, good to have you with us i saw on an hbo sports piece, which i believe you were in, mind-blowing numbers about facilities that are being at least partly financed by localities in an effort to spur growth tell me about how common these things are these are places with a dozen baseball fields and a half dozen soccer fields and indoor gyms and all the hotels around them

>> you got it. tyler, thank you for having me today. there is a development boom that's been taking place over the last seven years in particular it's all related to the youth sports travel. as you said sports tourism marketplace where tournaments are driving players into markets that they would not otherwise visit, on a date that they would not otherwise be there, and the result has been these large mixed-use developments and tax-increment financing and opportunity-zone incentives and others put together by towns to attract big tournament operators and proven operators who can bring tournaments to their communities. it's hundreds of millions of dollars spent annually in the travel segment alone >> who are the big tournament operators? who are the big real estate developers who are taking advantage of these tax incentives and putting their money to work? >> well, we're certainly one of them, but there are other big players. and the baseball marketplace group called perfect game is the largest scouting organization in

the country. they'll have a thousand golf carts at a single event for scouts and recruiters because they put those scouts and recruiters in front of the talent they want to see. perfect game is creating developments developments around the country, a major development in hutto, texas, an $800 million development centered around perfect game it's everybody you expect. there is turner construction and traditional in other sports and local developers who are partnering with sports organizations. >> my son was supposed to play in a baseball tournament at a facility that is a related facility something came up and it didn't end up going there are hotels and multiple fields and replicas. my question is this, the growth of travel sports is important for parents and families are we creating a world with

players who would like to play but their parents cannot afford the cost of travel, the cost of the gear, just can't do it and are we creating a second class citizenry? >> there is no question about it the only good that's come out of it and what happened is we defunded school sports no child left behind was an consequence. fundamental skill building and physical education strike those skills -- when those skills disappear, kids get older and can't play and try out they sit right? the private sector stepped in and it's what has been driving the great things that are happening in youth sports. there is a segment that needs access to facilities we have an access program in them and we're seeing that elevated there is a continue role for the

spector to play in participating and good developments and public-private partnerships include that the private sector participatin and creating access for all. >> thank u yo. appreciate your time thank you for educating us with so many kids playing travel sports and specializing in one sport, there is a growing worry that we're doing more harm than good to a lot of athletes. baxter holms a is senior writer for espn saying these kids are ticking time bombs, welcome. why are they ticking time bombs? >> this is the opinion of some in the nba that assessed and evaluated players coming in and see serous issues from players that specialized in basketball and played year round, some from ages as early as 7 up until they reach the nba and in those instances, a lot of them have

seriousish sh issues there are many young players in the league who are suffering injuries that typically older players used to get and in a word, they are breaking down much earlier than expected if you want to use an afnalogy o a car, the cars might be great but have a ton of mileage and put them in the nba against the size, speed and athleticism is a recipe for disaster. >> these are basically repetitive stress injuries you're doing the same thing running up and down the court jumping and so forth in baseball i've heard it said kids who come into the pros because baseball is in many parts of the country a year round thing, whether it's the north or south or wherever, they have thrown thousand more -- thousands more pitches than kids did 25 years ago at a similar age. >> yes, absolutely i think you've seen there are

skyrocketing numbers of tommy john surgeries for kids coming in and an interesting point people in basketball will make, while there say pitch count in little league, there is nothing of the sort in basketball, which is the most popular youth team sport in america with more than 10 million boys and girls ages 6 to 17 playing it so there is no real regulation and while the nba and usa basketball announced guidelines for how much basketball they think certain kids of certain ages should play in a given week, it's almost impossible to enforce such a large and unregulated landscape. >> so there is -- there is two arguments to be made give kids or enforce more time off between seasons for kids, that's going to be hard to do but probably also an argument that there ought to be more cross training, in other words, don't just play basketball, go ahead and play soccer, play lacrosse, play something else so that you're not using the same muscles over and over again. >> yes, and there was a particular point members in the

medical community would site to me over and over again they would say way back when, actually, not too long ago, kids would play a particular sport in season and when that ended, they would move to another sport and what that did physically is give certain parts of your body a chance to rest and it would build up other parts of your body, be a more rounded strong athlete than pounding on the same bones and joints and tendons and muscles year after year, day after day, month of month. a lot is in the pursuit of reaching the major leagues and fame and fortune it can bring but is it worth burning yourself out on the way there. >> yeah. baxter, got to leave it there. thank you. appreciate it. we works chief executive making a move ahead of the ipo details of that coming up and tune into closing bell today, the boston -- it's been a week boston fed president eri

eric rosengren will have an interview at 4:30 p.m. don't miss that one. yeah, that too. i don't want any trade minimums. 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. and yes, it's all at one low price. td ameritrade. ♪

the we works ceo cashing out more than $700 million from the

companion ahead, yes, ahead of its ipo. this as the company announced an analyst day for wall street banks on july 31st there will be questions, leslie picker, won't there? how bad a look is this the guy is cashing out right before he goes public or maybe not technically cashing out? >> i mean, he is cashing out essentially. over the past few years, he's sold $700 million worth of stake according to the "wall street journal" report. that is cashing out. there are side bar stories to this and that, you know, some of the -- he's also taken out loans he is using his stake in the company as collateral and levering himself to this company. it's a risky company no matter which way you slice it piling on more debt, they have skyrocketing losses, which we should hopefully see as soonpers any bit of news showing a founder who is definitely invested and no question about

that but selling this much in stock and debt before an ipo should give investors a pause. >> all right leslie, thanks very much leslie pick r er reporting fromh new york stock exchange. i'll be on "power lunch" that begins now. i'm melissa lee. the latest comments from the fed have investors scratching thei head about rate cuts ahead the president giving his two cents on the subject, too. plus, we works ceo cashing out over $700 million ahead of the company's big public debut is this a bad sign for the ipo later, a top gun reboot taking the internet by storm as "the lion king" live action movie hits the silver screen but if hollywood is out of fresh ideas, is the box office in the danger zone "power lunch" starts right now ♪ ♪