>> tiaa and it's a restructuring story. i like them with new management team. >> good stuff. >> it's great to have you back cincinnati financials, cnif, it's an insurance company, 17 billion. >> good stuff. that does it for us. thanks for watching. "the exchange" begins right now. thank you, scott, hi everybody. here's what's ahead of us today. the storm never came that's what one ceo said about the storm clouds that were gathering earlier this year. were investors misguided in their fears about an economic slowdown and an earnings recession or is it still looming? we will dig into that. washington's deal on the debt ceiling has one major investor sounding the alarm. why he calls it obscene and says more people should be pushing back on it. and two bachelorette sweethearts are using their passion for real estate to transform some very unlikely locations into short-term rentals. they'll join us as their show premier fo premier tonight on cnbc.

we begin with the markets. dom chu is back with the numbers. >> it sure seems like a cash pad. all we are seeing is green across the board on the major markets. cash pad happening tonight on cnbc prime dow industrials up by about 60 points this has been fairly stable in terms of the trade so far today. marginal positivity, a quarter of a percent to the upside for the dow, similar amount for the s&p and the nasdaq up about 1/10 of a 1%. it may not seem like much but after yesterday's marginal gains we'll take those one place we are seeing decent activity is within semiconductors we've been watching this as an indicator for the overall health of the market. the semiconductors are up about 2/3 of 1%. we're almost here back towards the record highs we saw back in april. remember, this has been up until this point since late march about since late may a 22% run for the semiconductors a big move there, and then we'll end with the stock of the day, the best performer in the s&p

500, and that is hasbro, all fun and games up 8%. we're going to put a little star right by here. that is a record high for this stock. the results being driven by better earnings because of strength in some of its partner franchises, think "avengers: endgame" toys, fortnite nerf guns. >> thanks. welcome to "the exchange." i'm kelly evans. existing home sales falling 1.7% in june. that was more than expected with high prices and low inventory weighing on the market, and the richman fed manufacturing survey posting its lowest reading since 2013 order backlogs were the lowest since april 2009 and the euro is sinking against the dollar after the election of boris johnson as the new prime minister of england. it's a better story for corporate earnings let's get down to bob pisani at the nyse. >> if you combine a deal on the debt ceiling, which we got

overnight, with a surprising rise in guidance from key companies, we had a positive day. what impressive about this recent rally is the extent that the cyclicals like technology stocks, materials, consumer discretionary, the financials, they've all led the rally since the market bottom. the market bottomed on june 3rd. this is a sign the markets believe the global slowdown will not be as deep or as prolonged as was feared exactly three months ago in the last quarter defensive sector, consumer staples and health care, they're up, but they have lagged the cyclical stocks in this whole same period. these defensive names, they were the leaders, market leaders earlier in the year. not only is technology essentially at a new high, so is a lot of other -- the defense, consumer staples and utilities look here, they're only about 2% from an historic high. here's the bottom liberne, kell. this is a very broad rally we're seeing, and it's broad despite the fact that we have flattish earnings, despite some very

lumpy economic news, despite the geopolitical concerns. it's really quite remarkable the extent of the rally. >> absolutely. bob, thanks. and it is the battle of the forecasters today. the i mamf lowering its global economic growth forecast saying risks remain to the downside at the same time like bob was talking about, korcorporate gias are sounding a brighter note united technologies, coca-cola and lockheed martin bead on tt e top and bottom lines and raised their guidance this morning. let's bring in alisa levine, and charl charles. i haven't seen you in a couple of months. i just have to ask, what do you make of these insanely low bond yields we're looking at around the world and the fact that stocks are at all time highs would we have one without the other? >> remember, they got even lower

a couple of years ago. the ten year got down to 185, toads we're at 205 i think the fundamental fact is that people have been very negative on the outlook for the economy in the u.s. and around the world and things are coming out better than people forecasted there were a lot of people talking about an earnings recession and people talking about second quarter earnings were going to be down. expectations were very low, and that can be a very good time to be an investor. >> what about the back half, charlie? you know, this constantly happens. no one thought we were going to get a 3% first quarter gdp but they say there's going to be giveback next quarter. no one thought we might avoid that kind of dire earnings situation for the first half of the year, but they say well, just wait until the back half. >> people are saying that for ten years. people have been saying this rally is overrun it's been going on too long for long time. remember all that new normal lower for longer. >> secular -- >> stuff we used to hear and the

inverted yieldcurve that's never been wrong in predicting a session. hey, it's going to be wrong this time fundamentally the u.s. economy is growing we have record low unemployment. we have wage growth for the first time in a long time. we have a better regulatory environment. there are a lopez t of positives the people pointing at negatives are talking about reduced growth rates in china, from 8% to 6%. that is not the same thing as negative growth rate we're doing all this and i'm sorry to be so enthusiastic, we're doing all of this in the face of a very strong dollar that's actually depressing earnings from what they actually would be in local currency we've just got a very good earnings outlook. >> the reason i think this is so fascinating, we're talking about this now being the backdrop. we've already gotten the economic data for the month, largely better than expected the earnings data is coming in i hate to use the term better than expected there, it's a little different, but it's not the negative, you know, the numbers that we thought we might see, so yet, we're talking about

a fed that's going to cut interest rates next week is there really an emergency that they need to respond to out there? >> that's a great question because the truth is the fundamentals don't seem to really call for a rate cut, and what's really happening is that the fed is letting the market lead it to a cut, so there was the opportunity for jay powell to push back against market expectations, and he chose not to, and so therefore in a sensuous the fed is in a box and has to cut, and the reason that the inverted yield curve is not going to be predictive this time is that the fed's going to get rid of the inversion on the front end by cutting rates you know, we expect a 50-point cut by the end of the year probably not july, but certainly by the end of the year in order to get rid of that inversion. >> it's more of a you think they will as opposed to you think they should. if nothing else, do you think they're just responding to the yield curve and saying oh, we're going to fix that? >> i think they should now i don't think the fundamentals of the economy necessarily required it here, particularly

the data we got for june certainly shows that whatever soft spot we had in april and may really turned around and picked up a bit in june, and so the trajectory and a bit different, globally as well by the way. so it's not clear that fundamentally it's required, but the markets need it right now, and to the extent that the fed has let that go on and not pushed back, the fed has to cut. >> finally for both of you, charlie real quick if you can, what are your picks? what do investors do here? i assume you tell them to stay away from fixed income >> yeah, you stay away from bond institute stocks because interest rates are historically low. don't own roo-- i think there at of cyclical stocks trading at 10, 11 times earnings that are a great value. >> i know you like cvs and viacom >> you go cyclical here. the semis are tilg you there's a cyclical uptick coming you go with tech

you go with consumer discretionary. also stay away from the high dividend paying stocks and also health care. it's in the cross hairs politically, republicans and democrats, you can buy some of the high throughput genomic stuff, but that's it the biotech companies, the pharma companies are in trouble. >> all right, still some opportunities. guys, thank you both really appreciate it alicia levine and charlie labrisnskoy. hard line brexiteer boris johnson set to become britain's new leader he struck a very different tone than his predecessor in his victory speech. >> already pointed out that deliver, unite and defeat was not the perfect acronym for an election campaign, since unfortunately it spells dud, but they forgot the final e, my friends, e for energize, and i say to all the doubters, dude. >> let's bring in our chief british dude wilford frost

you know, we're calling him a hard line brexiteer, but actually, people aren't really sure if he means it. he has to keep promising that he'll leave so that the public who wants that actually believes him. >> yeah, we'll have to see exactly how he abocts now that he's won this leadership election that is a key question it's true to say that the new prime minister has promised to leave on october 31st, come what may, but what hasn't changed is the makeup of parliament where the math remains very much against a no deal brexit here are some of the key dates to be focused on tomorrow he'll become prime minister, and we'll begin to see who he picks for cabinet and parliament goes into summer on thursday. in august he'll meet european lead skpers try to renegotiate that deal, and he'll also meet president trump at the g 7 if not before then. if he miraculously improves the

deal on offer, perhaps that brexit deal is passed by parliament in the fall if not, if he's really set on leaving without a deal on october 31st, then it's likely that the parliamentary math will need to change, i.e., a general election, where he calls for it or whether it is forced upon him. now sterling's down a little today but clearly much weaker in recent months as it became clear that theresa may would be leaving and boris johnson likely arriving, which was confirmed earlier today. >> and what do we know about the relationship between him and president trump? pretty strong or -- i'm thinking also vis-a-vis the pound trump has made it clear he thinks a lot of other countries have a currency that's too low that's been kpas baexacerbated l this week. >> it's certainly been exacerbated a lot in the u.k. over the last three years. they spoke last week they spoke on the phone. the president's already made some comments today, he was speaking moments ago, and he said he expressed his support for boris johnson and added

quote, they call him britain's trump, but that's a good thing they like me over there, which has grabbed a lot of headlines listen, the one country that president trump is speaking positively about on trade has been the u.k., clearly professing that he wants to do a big free trade deal with the u.k. there's a lot of skepticism in the u.k. whether that would materialize efficiently and quickly. that will definitely be on the agenda for the new prime minister and quite possible he'll like to make a trip out to see the president sooner rather than later. >> that will be something to watch. great to see you, we really appreciate it. >> here's what's still ahead on "the exchange. coming up, amazon dips its giant toes deeper into the real estate business. plus, nasdaq makes a bet on sports gambling. and after seeing clouds on the horizon earlier this year, the ceo of one of the biggest companies in the world says the storm never came

iss "the exchange" on cnbc

welcome back to "the exchange." shares of real estate listing giant realogy, they're the parent company of cold well banker and other brands. they are soaring on news of this partnership with amazon. they're up more than 16% right

now. diana, they're dangling some lucrative goodies here. >> absolutely. it's using the power of the amazon website to get home buyers to realogy. potential home buyers can now go on amazon's turnkey portal which takes them to a page where they enter information and are then connected with a realogy brand agent, that includes cold well banker, century 21 and others. once the buyer closes on the house, amazon home services steps back in with up to $5,000 up to free services like painting, cleaning, hanging your tv as well as products like the ring doorbell. re realogy's stock surged 25% early this morning it is staysifacing stiff competn from newcomers in the market i did ask realogy's ceo if the plan is to put listings on

amazon his answer, we've never had that conversation with amazon kelly. >> sounds like not yet >> stick around. let me bring jason del ray in as well he's the senior correspondent at ricode, land of the giants the rise of amazon you know this company inside and out. why are they eyeing this space >> i think on one hand they want to be a part of any type of consumer transaction they can, whether or not it's the end transaction or not, they want to be a place where you think about every type of commerce the most interesting part for me is about smart home products that they're basically getting installed and subsidized by a real estate company. my -- my next week's episode of this new podcast series is actually about what they want from being inside our homes with alexa, and they basically want to be the tech platform of our homes, and so that's the most interesting piece for me right

here is the buildout of smart homes for amazon by a real estate company. >> let me make sure our viewers know what we're talking about here amazon's saying if your home purchase price is between 150 and $400,000, you get a thousand dollars worth of amazon home services and products, so things like the echo dot, the echo show, the ring doorbell and services like unpacking, cleaning, handyman services, carpet cleaning, furniture assembly if you buy a home over $700,000 you get that package worth five grand. how do i find -- do i google it? is this an app, especially if you're saying they're trying to compete with these other platforms? >> it's through amazon, through the turnkey portal itself. we did a story last year about lennar, one of the biggest homebuilders in the nation they were putting amazon products in lennar homes in their show rooms as part of this show and sell strategy amazon really trying to get into

that home services and that home technology business with the builders and now with the real estate agents. >> and jason, if their goal -- and look, we talk about this a lot, how the the next battle is the battle for your living room, to be the smart home platform. guess who else wants to do that as far as i can tell, apple, google, what moves are they going to have to make in response if amazon's going aggressively into partnering with real estate services? >> amazon already has something like two-thirds market share when it comes to the voice assistant in your home, so they have a big, big lead, you know it's still early days, but with these partnerships coupled with just the consumer demand that they run through their website for all these other products, it feels like it's going to be tough to battle. apple on one hand, they're going to focus on a different type of consumer that wants different things from the smart home, right? the quality sound. that's why they're pricing on their audio equipment is much higher the google and amazon fight,

that's where i really see sort of a head to head battle. >> diana same question to you, would you expect them now to say i guess we have to ramp up our efforts to get in the home taking whatever portal we can find >> yeah, absolutely. i mean, that's what it's all about. if you talk to millennials who are now the big home buyers, they're all looking for that smart home and smart home technology it's more important to them than the size of the home, even than the location of the home in some respects if you survey any of them, they say it's the smart home they're looking for, and they want that installed even before they move in. >> wow guys, thanks it's fascinating news today. diana olick, jason del ray, good luck with the podcast. >> thank you so much. the nasdaq is making a bet on sports gambling as it looks for new ways to expand its business we'll have the details. plus, from the bachelorette to flipping homes with a twist, cnbc's cash pad premiers tonight. you don't have to wait that long, the show's two stars join us live straight ahead

. welcome back to "the exchange." here are some of the biogen is jumping after strong earnings, boosted by sales of its multiple sclerosis drug. shares up nearly 4% as a result. stanley black and decker also jumping after reporting better than expected earnings per share. the stock is on pace for its best day since 2015. it's up more than 4%

and sherwin williams up more than 7% on pace for its best day since january of 2017. the paint maker reported an 18% jump in earnings year on year, said u.s. sales rose 5%, and you can see the big move in their shares today now over to sue herera for a cnbc news update. >> hello kelly, hello everyone by a 90-8 vote, the senate has confirmed army veteran and former defense industry lobbiest mark esper as secretary of defense. this ends a stretch of seven months es per will be sworn in later today. israeli prime minister netanyahu meeting with energy sector rick perry in jerusalem he says it's important to keep up pressure on iran to stop its nuclear capabilities >> sanctions have begun to work. it's important that they continue to work it's important to keep up the pressure if i had to say what are the

three things we have to do in the face of iranian aggression, it is pressure, pressure, and more pressure. new satellite images show the british oil tanker in the iranian port of bandar abbas where it has been held since being seized by iran last week iran says it was seized because it was violating international law on safe passage in the straits of hormuz. you're up to date, that's the news update this hour. back to you. thank you, about 30 minutes to go until "power lunch.." >> it's really an edition of what's for lunch seema seema's having what for lunch, spinach salad? kale and spinach salad. >> i was too lazy to put on a tie. walmart's thriving, nordstrom is diving we're going to take a look into what's wrong with the great multiline department stores in america. it used to be the destination for most people to go shop you could get everything from clothing to shoes, in some cases

house weawares and now they are struggling, nordstrom, despite my efforts, my favorite place i'll tell you. >> we're looking forward to that obviously. speaking of ty's favorite things,down who we have coming up >> we have the winners of one of the seasons of the bachelor, jordan rogers, and jojo fletcher i am a closet or not so closet "bachelor" and "bachelorette" fans. >> not anymore. >> i may be one of the only people to watch it on the big screen and a hockey game on the other. keeps me in touch with my inner animal. >> you kind of have a little bit of i'm watching because she's watching. >> it's a guilty pleasure. it's family entertainment. my wife and i watch it and my son watches it, my 13-year-old we kind of get hooked on it. we kind of get hooked on it. i want to ask about in every one of these things, there is a moment -- there's a lot of

bikini wearing there's a lot of this stuff. there is a moment in every one of these shows where the young woman jumps into the arms of the young man. >> okay. >> of the beau i want to know whether those are spontaneous or scripted. i expect you to ask that question. >> i will put that question to them. >> i want an answer to that. america needs to know. >> thank you, we will see you soon. >> and that is coming up with so much more on "the exchange." coming up, will betting on burritos continue to pay off surprise, facebook's kid messenger app had a flaw. at subscription model for uber and the coke ceo has an uplifting message. it's all ahead in "rapid fire. woman: my reputation was trashed online.

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welcome back let's catch you up on a couple of stories that should be on your radar today it is time for rapid fire. here to break down the headlines are kate rogers, bill griffeth and meg tirrell. i want to talk about these macy's plates. let's try to get there >> are we going to start there >> we're going to start with coca-cola. the shares hitting an all-time high the ceo was on squawk on the

street earlier and talked about their positive momentum heading into the back half. >> at the beginning of the year we came out with some guidance you were just talking about, the macro environment. we saw some clouds on the horizons, too, but the storm never arrived. >> quote of the day. they reported 6% organic revenue growth for the quarter, said they're releasing their first alcoholic beverage nationwide in japan after a test run could be a preview of something that's coming. >> very smart guy this guy they really transformed a one-trick pony into a massive company that's nimble and it's able to tailor its products to the different regions of the world, this alcoholic beverage, this lemon fizzy thing, it's only going to be sold in japan because that's -- it's a taste over there that they like. the coffee, they just bought the company. the deal closed and they already have a new product line they're introducing in great britain they're doing a really great

job, and the zero sugar line they've sold here in the u.s. is still selling at double-digit growth. >> also again just overall, i know we talked about this earlier, the fact that he said they're not as worried about the storm clouds anymore that they thinkwe're kind of getting through this period. we heard that from a few other companies as well. >> it's interesting that these companies are comfortable giving higher forecasts for the year. it kind of goes against some of the fears we've been talking about on a more macro level. the fact that other companies too are not hesitant to do this, it kind of is a little bit of a cog five dissonance. >> a 5% move for coke. >> chipotle is actually going to report after the bell today. we'll see if they confirm or deny some of the narrative that's taken shape today, and that stock if you haven't seen it, it's up more than 70, 7-0% it has more than doubled since brian nickel took over the company. it's at 732 today. >> it's unbelievable, you

mentioned 130% gain nearly since brian nickel took over last year he said when he took that role on, i'm here to remind people why they love chipotle digital's been massive last quarter they reported 100% growth in that area. it accounted for more than 15% of their total sales they don't break out what portion of that is delivery, if and when they decide to do that, analysts will be keen to hear how big a piece of the pie that delivery metric makes up but they offered these digital first things like these lifestyle bowls. >> specialize, yeah. >> they launched a rewards program that had 3 million members just about a month or so into the quarter last year i mean last quarter, so we'll be curious to hear how many people signed up this quarter they've got the mobile order and pickup shelves, they're testin so many things in digital. >> do you guys think they're back >> oh, yeah, i think so. >> i realize i'm a little late asking that question if you're an investor, but in terms of the general public, when everything hit them a few years ago, you had to wonder was this just a one time flash in the pan kind

of thing >> i think brian nickel is just as smart as this guy quincey is at coke now. he's very aggressive he caters to the customer. he goes to where they are. they're able to buy the way they want to buy. it's more about how you sell it rather than what you're selling, and he's doing a great job. >> brian is associated with being healthier, even though if you look at the calorie counts on the burritos, they're ridiculous. >> uber is reportedly testing a new monthly subscription model i love this story. it's $25 a month here's what you get for that a discount on rides, free delivery through uber eats and free jump bike and scooter rides. pilot program is being tested in chicago right now. it makes a lot of sense for uber as a business model ultimately but is this price point going to entice people? >> you've got to be a big user of uber. >> that's the thing. >> it does make sense from the company's perspective. if you've got a bundle of offerings and you're trying to

decide between a lyft product and an uber product, and a customer has paid for the monthly subscription, you're going to go for an uber product. >> sticky customers are good customers. >> the entire world is going to a subscription model uber is struggling to convince the public it's a good investment. >> and you may be more enticed to use the bikes or the delivery if you're paying that all in one price. i don't know that i would necessarily use it enough for that to pay off. >> that's a lot -- you have to not have a car at all. i have a car and i still use uber. >> urban area users are going to have to pony up on this one. >> we'll see if they start rolling out different tiers of price points >> don't you think that would pay off in new york city >> if you don't have a car and have no other way to get anywhere else. >> i think people don't want to admit they'd spend $25 a month it might be you're spending the equivalent if you just tell me it's $9.99

is that an easier way to get me to sign up. >> i hope the restaurant knows the food's being delivered. >> oh, wait. >> did i say that out loud >> next up, a flaw in facebook's messenger app for kids reportedly let thousands of children enter group chats with unapproved strangers it's unclear how long the bug was present in the app facebook says it has fixed the issue. it only affected a small number of group chats messenger kids launched back in 2 20717. the point was to allow 13 and unders to chat only with a list preapproved. the group feature got around that. >> my stomach is hurting, and my kid is only 7 months old the idea that there's an app for social media from facebook that's distrirected to kids undr 13 there are better controls, you have to log in through your parents' account, maybe it's better in some ways you can talk about this as a gateway into social media and into facebook and a

bigger way. >> which i'm sure is their goal. they want you in the ecosystem in an approved way that wasn't so approved. >> i don't believe this was a bug. i don't think they thought it through. i'm serious, you know. wait a minute, yes, you can't chat with somebody who's not been approved, but the other person can set up a chat room. >> and invite people. >> with somebody that wasn't approved for you that's not a bug you didn't think it through. >> if you're launching something for kids, you have to think it through. this is another huge misstep for facebook. >> you know who has to think it through? >> mothers >> it's freaking me out. my kid already plays with my apple watch. he's only 7 months old. >> does he know how to swipe >> let's face it, you're going to have a very intelligent child. >> thank you bill. >> and a long 13 years ahead of you. macy's says it's removing a series of dinner plates from shelves at its concept stores after facing backlash online twitter users -- of course it's twitter users -- were apparently

outraged over these plates that have a fat shaming message here's what it looks like. they feature three portion control circles. the smallest portion circle says skinny jeans, the larger one says favorite jeans, and the largest one says mom jeans the they have a whole line of kitchen ware with similar messages the outrage began with a single tweet. >> what did that tweet say >> i have no idea. >> oh. >> was it a lot of f-bombs >> fifa profane tweet i'm shock. >> anyone who has mom jeans knows those are the most comfortable jeans. these are wrong, these are also sexist i agree with the backlash. where the dad jeans with the big servings this is ridiculous i get what they were going for they totally missed the mark >> i think snark has eaten itself. >> who's going to buy these things anyway? use them once and then what?

>> are you giving them to someone? they're not funny. bad gift. >> if you look on the company's website, they do have some alcoholic beverage glasses which i did actually find a little funni funnier. >> you really want those don't you? >> i like the one that says begin agin and tonic. >> a lot of people are talking about eating disorders and body shaming and 4% of teenage girls according to the nih will have an eating disorder at some point. this is not a trivial issue. >> no one's forced to buy these. >> think about where they're marketed in macy's. >> the glasses i get, the bowls, the plates, that's silly >> it's a variation, when you sign up for a program that controls your eating portions, for example. >> yeah, but you've signed up. >> you choose to buy the plate >> this continues that smaller and thinner is better. i think they were going for something that's funny but took it to a place that's not funny.

>> there was a bug in this, wait, they didn't think it through. >> they should contact facebook. >> my new line of the day is snark has jumped the shark thank you all, kate rogers, bill griffeth and meg tirrell. from roses it real estate, they became a couple on the bachelorette, and now they're partnering up to remodel some unlikely properties, the new stars of cnbc's "cash pad" join me next. all in one place. because when it's decision time... you need decision tech. only from fidelity. whoa. travis in it made it. it's amazing. oh is that travis's app? it's pretty cool, isn't it? there's two of them. they're multiplying. no, guys, its me. see, i'm real.

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welcome back to "the exchange". a news alert on bed, bath and beyond, as part of the company's ongoing transformation they have announced cost cutting actions including eliminating about 7% of the corporate work force and the chief operating officer role, which means that eugene castagna will be stepping down as of today. >> courtney, thank you

america was watching when jojo fletcher and jordan rogers fell in love and got engaged in the bachelorette now the pair are traveling the country helping homeowners "cash pad" tonight in the premier episode, jojo and jordan partner with a texas couple to turn an empty cottage into a one of a kind vacation spot starting with a few attention grabbing perks. >> this hot tub is what i like to call a marquee investment. >> i'm honestly so impressed by this when i ordered it online, i didn't expect it to look this good. >> or this roomy. >> it's big. >> yeah, it's great. >> it smells good. >> smells great. >> do you want to get this thing up there >> yeah, yeah. how do you make over 10 grand in profit on a $4,000 wooden hot tub? for starters having one allows you to increase your nightly rate by 20 bucks. >> this thing is so cool >> this whole thing is so cool. >> and at a conservative 50% off, 20 bucks a night will

generate $15,000 over four years, so that is money well spent. >> it's a good hot tub. >> that is a good hot tub. >> jojo and jordan join me now welcome. i love the numbers the way you ran through that, scribbling it down you can turn the hot tub cost into what that means -- how long have you guys been doing this? >> well, i've been in this industry for like the last ten years, but my focus has always been sort of the long-term rental i buy and i hold, and when jordan and i got together, this craze of the short-term rental market airbnbs were all toff th charts we were trying to figure out how we could scale a business like this. >> that's fascinating. what is the business model and how much competition are you guys going to face i watch a lot of hgtv and that fundamental premise hasn't changed in 20 years. it's buy, renovate, and sell you guys are doing a renovation partnership in order to lease. can you explain to us a little how that works

>> for sure. we saw the niche of the short-term rental market long-term you have a little bit more consistency, but there's a lot more upside in the short-term, so our business model, we partner with homeowners we take on all the financial investment so we invest anywhere from 30 to $70,000 into these properties. we have a four-year contract we baseline our homeowners a set amount every month they make the first dollars that come through the door, and we guarantee them that, and then we keep the profits on top of that after we make our money back, which we like to try to get our money back in about a year to two years at the most. then everything we see there through the course of the contract is profit for us. there's a lot of numbers that go behind it, and we've got to do it right in every aspect of the renovation, or we're not going to make our money back. >> jojo is this something that like anyone could say okay, i'm going to do this on my own property, or does it only work at scale how lucrative can this be? do you have to be big? >> no, and that's the thing. with "cash pad" we really want

viewers to look at this and say hey, wait, i might have this shed sitting in my backyard, i may even have a room i can make a couple extra bucks on. we want people to watch this and say hey, i can do this myself. it doesn't take hundreds of thousands of dollars you can do this at any level you want there's ways to do it, and we teach you guys all of this on "cash pad. it's business and education meets design. >> i want to ask you about money more broadly one of my favorite questions to ask people is what the biggest money mistake they've made is, and i'd love to know you guys have so much experience between reality tv and real estate now and other things you've done with your lives. what's your advice what's your personal biggest money mistake been >> i think the biggest money mistake is not estimating correctly the investment of the things you don't see, the the electrical, the plumbing, the heating and air. those are things that they're not what wow you it's the design, it's the things that attract you, but the things that are most important is making sure you don't have upkeep and maintenance costs

that go through the roof every year so that initial investment into the stuff you can't see is so important and often when you're calculating your budget, you're like i want a hot tub and i want a cool bed and you forget about the stuff that really matters. >> jojo i was also thinking about, oh, i blew too much money on clothes or college. i don't know, like does anything for you come to mind >> i think when you're talking short-term rentals or just rentals in general, you never want to blow your budget on things that need maintenance, so don't put the most expensive hardwood floors. don't do the most expensive countertops because those have to last you a while, and there's high traffic areas in rentals. find things that are more cost effective that still look beautiful and don't take away from your design. >> jordan does it get awkward if i ask you about your brother your brother is aaron rodgers. what's with danica, can we get any inside gossip here >> we're always looking for free

labor on "cash pad". >> if anyone wants to help we do all these properties in seven days we need all the help we can get in doing these properties. >> that's a hard no. my co-host tyler math southern who -- mathson, that moment in every show where the girl jumps into the guy's arms where they leap is that premeditated or spontaneo spontaneous? be honest. >> it is not premeditates, i think it's a subconscious thing where you're like i see this all the time, i need to do this. i look back all the time and i'm like why did i do that rk, you know. >> what was your take away from that whole experience? i know you're sort of in it now. was it just a great opportunity to be on >> an unbelievable opportunity gave us the platform to do these sort of things "cash pad" came from it because people got to see us on that show they fell in love with our love story. now to be able to take them into this world of what we do

professionally is so much more rewarding. it's so fun. it's just different. we're looking forward to that. >> congrats again, i know you guys have a -- you know, your nuptials you're working on right now. you just bought a house, jordan. big congrats on that. >> thank you. >> thanks for joining me, guys good luck with the show. >> jordan rodgers and jojo fletcher, the new premier of "cash pad" premiers right here on cnbc. treasury yields on the move after a debt deal that one major investor is calling obscene. we have those details next stocks hitting session highs on reports that u.s. negotiators are heading to china monday for face-to-face talks dow is up 146 points we'll be right back. moving is hard.

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welcome back a deal on the debt ceiling was reached last night, but not everyone is happy about it including noted investor stanley druckenmiller, who says, quote, the obscene budget is just arth example of an unintended consequence of global central banks canceling market signals politicians, he says, will continue to engage in myopic policies until the markets revolt and the bigger bill we leave for

the next generation. let me bring in rick santelli. we have been talking a lot about the distortions here we have the ecb meeting this week we have the fed maybe cutting rates next week. what do you make of it all >> a picture is worth 1,000 words. let's look at a chart of ten-year yields. the far left, 2000 you notice 6%. as recently as 2006, 2007, 5% plus now we're hovering around 2% the all-time low from 2016 is 1.35%, and all this comes at a time where global debt is exploding. global central banks muscles are exploding. and growth is just going down the tubes. it just sounds crazy because sooner or later, we're going to have to pay the piper. and every 50 basis points rates go up, servicing the debt, in every country including the u.s., is going to get somewhat stifling consider this, kelly, okay,

you're beginning a family. anybody beginning a family out there, you had your last two guests on. every baby born right now comes with a price tag of $70,000 of debt on their head, and that doesn't include state and local debt, which is in some states, you know, i live in illinois, can be extremely large the moral of the story is he nailed it. why doesn't the market adjust for these? why isn't the cost to borrow money for two years versus ten or 30 years so much wider? i mean, would you lend your money to uncle sam for 30 years for, what, 80 basis points more than for two years or on a ten-year note, what, 20-something basis points for the difference of eight years. it's crazy >> it feels like that, rick, and we have to wonder how much it's distorting all of these deals, the dent ceiling included. i live in new jersey so we're no better off over here thank you, sir rick santelli. keeping an eye on all of this for us coming up, the nasdaq's latest

move to expand its business, and it involves sports betting we explain next. (lively music) - [student] my degree from snhu has helped me tremendously. the flexible class schedules allow me to run my catering business and be a mom and parent. breakthrough at snhu.edu.

welcome back the nasdaq is betting on sports.

scott is the head of new markets and nasdaq's new technology business the football index basically allows me to buy shares of players and get paid a dividend based on how well they do, right? >> that's right, yeah. it's essentially a market but in a different industry from what we're used to. >> go ahead. ia guys are doing more and more of that, aren't you? the fact you're part of their new markets division, you have done things with horse racing, we're talking about a reinsurance platform where can this technology go >> i think it can go almost anywhere people know us as a marketplace operator, but what they don't realize is the extent we provide technology to the world's markets. there's over 100 markets overseas to whom we provide technology what we're seeing in a range of industries like insurance, like gaming and wagering is technology is disrupting them in a way that is bringing them closer to what we know and do. so a lot of the technology that

we deliver to traditional markets in the financial space is now becoming relevant in other strindustries this has become one of our fastest growth areas >> i wonder, if i'm in the u.s., do you think with sports betting becoming more legalized, we'll see more markets like that in this country >> i think it's possible in the u.s., the legalization is a slow march and it's regulated state by state, so each regulator is looking at doing things their own way overseas that's a good preview of what you might find here, because you have well regulated markets in europe and asia that are very mature and using a lot of more sophisticated technology even they are getting disrupted in ways that makes our technology really relevant to what they're doing as they see transaction volumes explode and the need for real time data becoming so much more critical >> it's fascinating. anything we might see from shipping to insurance to gaming and wagering scott, thanks for joining me appreciate it. scott is the head of new markets

for the nasdaq with a big partnership with the football index today. that does it for the exchange thank you for tuning in. i'll join tyler for "power lunch," which starts now >> all right, kelly. we'll see you in a moment over here at "power lunch." welcome, everybody i'm tyler mathisen here's what to watch that is new at 2:00 on "power lunch. dodging an earnings recession. monster week for results and so far the biggest names are delivering will the euphoria fuel that record rally we'll debate, and stocks are, as we point out, moving higher right now. plus, retail on the clearance rack the stocks of some of the biggest department stores getting nailed this year is it time to hunt for bargains or time to shop somewhere else and football is coming to the house that babe ruth built we'll talk to the ceo of the soccer giant liverpool champions league champs about the last leg of their american tour yankees stadium tomorrow, and much much more "power lunch" kicks off right now.