and they are buying the $22.50s during the show. >> great hour, thank you all for doing it and thank you for watching have a great weekend "the exchange" begins now. hi, everybody. here is is ahead. markets almost touching all-time highs. if we get a trade deal, how much higher will stocks go or will it be a buy the rumor and sell the news event we'll debate that. plus new york, london, d.c., chicago and all of these cities, we work oig is the largest office tenant. what happens if the company can't pay its bills. we'll ask as ipo prospects keep dwindling. and the fed meeting just days away and a major rebound in global interest rates. with markets still demanding a rate cut that is all ahead of us. and we have a relatively calm market today, a bit mixed

dow industrials up about 40 points at this stage the s&p still about half a percent away from record highs and nasdaq down by just about 0.2% one place that has been leading the market higher, in some way, the aerospace and defense industry because that particular industry is reflected in this etf. the reason why it is important here, that level there, put a star next to it, is a record high for this particular etf and those shares moving sharply higher since the lows that we've seen about 41% since christmas eve. another star for this particular stock, because that is a record high for jpmorgan chase as well

financials a key focus watch that >> and a lot of things on watch. thanks welcome to "the exchange." i'm kelly evans. big moves in the treasury market, ten year yield hitting 1.87% today. it has surged by the most in any week since 2016, the move helping to reach the banks and retail sales came in twice as strong as expected. the increase was driven by a jump in vehicle spending and let's drill down on the markets now with bob pisani. a lot of potential headlines here >> yeah, that u.s. consumer, that retail sales very important. we're saving the world dow on pace for its eighth straight gain. that is quite a move s&p 500 on track for a third straight weekly advance. remember the big drivers, better

u.s./china trade headline, lower geopolitical tensions, expectations of more rate cuts and most importantly, a strong u.s. consumer. august retail sales both beat. u.s. consumer is saving the world economy right now and that is result willing in cyclical sectors you see here banks, transport, retailers and energy, they have all rallied nicely this week. and other rallying again today finally another strong ipo, web security firm cloudflare just went public, opened at $18 still strong right now $18.53 software is a big sector, but recent ipos are down for the week kelly, back to you >> makes it all the more remarkable thanks very much in the span of less than ten hours yesterday, we got reports of a possible trade deal with china and followed by an absolutely not the from the white house and followed by an i'd consider it from the

president. so what is this all really tell willing us eamon javers has the latest. and this morning more trade news on china about their ag purchases. >> yeah, that's right. a bit of a wild ride yesterday and now we're seeing the chinese side signaling maybe a bit more openness in terms of the willingness to buy agricultural products yesterday we got the reports that officials here were discussing the idea of a possible smaller trade deal where you don't remove all of the tariffs but some of them in exchange for some chinese concessions. and then a senior administration official telling me that the president was, quote, absolutely not considering a smaller trade deal implying that it was all or nothing. and then we heard the president last night on the south lawn answering a question from a reporter about an interim trade deal and he said the following thing, pay attention to the

words "i guess" because white house aides are saying that there is no misunderstanding about the president' e's intenth does not intend to pursue a smaller trade deal listen to this >> i see a lot of analysts are saying an interim deal meaning we will do pieces of it, easy ones first but there is no easy ohard there is a deal or there is not a deal but it is something that we would consider i guess >> so the president there saying that he would consider it, i guess. ultimately aides are suggesting that there is no miscommunication, no mixed messages being sent by the white house. the president was asked about an interim deal and he said he wanted a big deal and then sort of hypothetically theoretically said i guess we would take a look at it and aides saying that was a throwaway comment and not the thrust of what the president was trying to convey the president wants tbig deal still. so bear in mind there are

different factions inside this warehouse. if you look at it on a continuum from maybe a steve mnuchin treasury secretary who is seen as more eager to get to a deal everyone if it is a smaller deal and then robert lighthizer u.s. trade representative seen as more hawkish the question is where on that continuum adoes the president stand and that is what everyone is trying to figure out. >> and we had a study in contrast last night with the democratic debate, there was a lot of talk about raising tax z to pay for medicare or other various proposals. and the president meantime floated the idea of a middle class tax cut. have we learned more about how likely that would be >> yeah, a lot of people's ears perked up when the president said that, the idea a this they might pursue another middle class tax cut. what i'm told is that there is no plan for a new middle class tax cut this year or next despite what the president suggested last night, that is they are working on some ideas for what they have called tax cut s 2.0 ths 2.0 that will be f

the rhetoric next year the president will campaign for re-election on the idea that if you reelect he me, we will go after more tax cuts for the middle class in 2021 but as far as 2019 and 2020, aides acknowledge the political reality which is that nancy pelosi is the speaker of the house, and nothing is likely to come out of a democratic house that they support in terms of tax cuts and they are pushing it all forward to the campaign season next year >> and i'm sure we'll hear more about it then. thank you very much. and a look at stocks climbing back to just under all-time highs the dow up 45 points, the s&p positive, the nasdaq negative. and by the way the dow hasn't had an eight day win streak in overa year and we have that potentially today. and there is the ten year and we've climbed to 1.891 as we look at it right now wil contin we'll continue to track that for you. if a china trade deal

materializes, will stocks rocket to new highs or will investors sell on the news let me bring in paul christopher for more on all of this. and also chief investment officer from bleakly adviser group. and let's start on the bond moves. if this were a stock, its chart would be -- it would look like the best ipo of the week what is going on with bond yields >> i think two things. it really started a few weeks ago when we started to get a sense that there was pushback within the ecb even though what we saw what they did, there is a mini revolt going on also in japan, the bank of japan and some members within it are actually getting concerned that interest rates will falling too much so here you have what i think is a potential monetary end game in the extremity of this easing and if you say that negative interest rates will basically stop here and that the bank of

japan actually wants rates to go up, that that creates a rise in interest rates and then the potential for a trade deal >> so three legs of the stool all of a sudden. bond yields moving higher. the data has been supportive and the trade deal you put all that together, and what are the implications especially for the stock market whi today is taking it in stride obviously sectors will do better than other, but we're almost touching all-time highs here >> and you have to remember the stock market has been tripped up twice this year when optimism turned pessimistic and so likely some people sitting on the sidelines still caucus we're among them so, yeah, a small deal would be positive for equity markets.the question is how long does that last because you still have to

keep talking and all the big rocks are still there to move. >> there are some sometimes where you can look at things get to such an extreme and say it only starts a little bit of something to start the fire. and what we saw in august with bond yields is that very thing so the big question now, how much higher do they go from here we'll call it 1.9% now what is the next stop? >> well, an interesting dynamic when you have negative interest rates because a negative yielding bond is no longer an asset, it is a liability the ultimate hot potato. so let's just say people are becoming convinced that yeah, the ecb can't go negative because of the revomt insidlt i. maybe the fed will only give us one rate so if you have people out of the door out of negative yielding bonds, who knows how quickly that can move. and u.s. ten year, you can do

all all the an naalysis, buttal it l go with the german ten year will go >> and you have task cctical wao play this market peter, you like cruise lines and ag related stocks. >> and i appreciate the move to value from growth over the past week fertilizer companies, cheap stocks it has been an awful planting season i'm expecting a much better one next year and large demographic tail wind of aging population going on royal caribbean >> and paul, i see that you like financials and telling you think that they can do well? >> as growth continues to slow, debt will become more of a concern and we think that people will migrate towards companies with good cash flow and good cash to get. >> i don't usually hear fertilizer to you. so a good reminder >> i try to find spaces that are

overlooked >> gentlemen, thank you both here iwhat is still ahead -- >> coming up, knock, chicago, d.c., and london we work oig is the largest commercial tenant in all of those cities so what happens if the economy goes sour or the housing market takes a big pause? plus a look at why next week's meeting is you been like any we've seen and a rental property you may have never seen and is nowhere near your own home we'll talk to a company benefiting from this trend in real estate. (classical music playing throughout)

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welcome back david faber reporting today that wework's ipo valuation could slide as low as $10 billion to $12 billion. that is it dramatically lower than the $47 billion that they reached in funding earlier this year and impact may be felt well beyond silicon valley. wework is the largest commercial tenant in new york, chicago, washington and london. they have millions of square feet of office space let's bring in scott crow at center square investment management and also robert frank

is following this for us closely. robert, these are just the biggest cities that they have a presence but you your point is as we look to its cash needs, to its profitability going forward, all of these cities are exposed. >> and i looked at the systemic risk whatever happens with the ipo, is it just isolated to wework. and if you look at new york,off 5 million square feet of office space, there are at least 18 buildings where they make up more than half of the total space in those uildings. and when they lease a building, they do it through a special vehicle. it is not wework itself. wework only guarantees 11% of its leases they have $34 billion worth of long term leases so when you spread it out over all the millions square feet, you wonder what happens to the developers and the lenders to those buildings. so there is a lot more at risk here than whether wework comes

in at 47, 20 or 10 >> a great point it does though affect how much money they can rise at the ipo, how much money do you think would calm some of the concerns? >> i think that the big problem with wework isn't the concept. i think that wework is a fantastic concept that has revolutionized how people use office our london offices are in a wework asset but a couple problems. the valuation at $47 is absurd that is equivalent to the value of marriott which owns 4,000 properties around the world and trades at nine times ebitda. so no wonder that you are getting push back from the market because the problem with wework's business model is the structural risk of having long term liabilities which are 10 to 15 year leases that they have to pay and they chop it up into short term receivables their average lease term is only about 15 or 16 months. so what happens in a downturn, we know what happens

their receivables go away and -- >> that's exactly what i was going tosay. regis which is animal animal gis went belly up. >> it went belly up in the early 2000s i believe. and wework is different than regis. it is a better model they have a network effect 20% of their revenue comes from things that aren't just rent so it is an excellent business model but at the heart it is more similar than different. and in a downturn we know what happens with long term liabilities. >> and he is highlighting that is cou make existing landlords more vulnerable down tu during down turns as well. and a perhaps the next layer of focus -- again, this isn't just to say how the ipo goes. this is to say what are the new risks in the commercial real

estate space >> and back in 2009, everyone was saying if that goes under, not a big deal what we missed is the ecosystem that were built around these companies including in california all the office space which just cratered because we didn't realize how dependent all these other companies, media, office space, were built around the infrastructure of these companies. so not just wework, all the lenders to those buildings that are vulnerable >> and you think the ipo can go fine if the valuation is reasonable enough? >> well, wework needs the money. they are burning $2 billion a year in expansion. so they have to do something by memorial can day next year i agree with robert and i think that the early 2000s is a very good analogy of how this could

play out if we go into an economic downturn. you had all the shadowy vacancy because the tech companies had leased too much space. so i think that you will see a similar thing happen in the next downturn so if you look at the publicly traded reit market today, it is pricing offices at a significant discount because they are pricing in that concern. >> guys, that ca thanks. appreciates. coming up, smile direct club taking the frown and turning it upside down. a bad debut yesterday, but up you 8% today we'll talk about what went wrong with that ipo and where the stock goes from here and plus would you buy a rental rot online and sight unseen but with a 30 day return window? more and more millennials are doing it and say the process is as easy a buying shoes a lot of questions for this one for e o thceof the company making it happen joining us

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doprevagen is the number oneild mempharmacist-recommendeding? for $399 a month for 36 months. memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. here are some of the movers this hour. shares of web security company includedflare had an ipo and it is soaring opened $3 above where it had priced and eithtsy is higher on new

initiatives. the bank also positive on the company's marketing push as it launches into the holiday season shares up 3.5% >> and shares of altria are lower, juul coming down sharply in value in the secondary market philip morris bought in around $250 a share, but according to david's reporting the shares now trade privately for about $225 to $230. and most shares down more than 3% now to sue herera for a news update >> here is what is happening the u.s. says it has placed sank sanctions on three north korean hacking groups, it says they are responsible for malicious cyber activity on critical infrastructures.treasury department says the hacking groups linked right back to north korean weapon and missile programs. at least 11 hindu wo worshippers drowned.

were rescued from the lake. justice department says u.p.s. must pay $8.4 million to settle allegations that the company was overcharging the federal government for package deliveries justice alleges u.p.s. failed to abide by terms of its contract with the general services straks a yoe charged from 2007 to 2014. and ford is recalling more than 300,000 of its 2017 ford k3 procedu explorer vehicles because of a sharp seat edge and there have been 31 reports of hand jifr injuries you are up-to-datethis hour. back to you. just about half an hour until "power lunch" and i'm joined by tyler mathisen >> and this afternoon among other things we'll take my least favorite phrase, a deep dive, into the home repair and improvement stocks several of which are roughly at

or above all-time highs. home depots, lowes, restoration hard wear and others as the home repair and remodeling boom continues to take hold, thank house and garden television among others >> do you know anything about the home remodeling boom >> we'll give you and you complete update on the mathisen kitchen remodel which i'm pleased to say is picking up steam. >> finally >> even as we are here today it is very interesting to me, we talk a lot about the big box retailers in this space. but there is still a lot of business being done at small local retailers, building supply stores, brick seller, stone companies. >> that is my experience as well dwl so the big guys don't own this they may indicator more to the do it yourselfer, but the contractors are still patronizing a lot of the local merchants. >> and that may be more of a good thing if the big guys can get --

>> we had hoped to have photographs of of the mathisen kitchen, but unfortunately, i couldn't reach my wife if she is out there listening, which she probably isn't, send me photographs >> pics or it didn't happen. tyler, thank you here is what is coming up -- ahead, smile direct club investors are frowning goldman makes a bold call on apple. atupthe battle against big tech hes that is all coming up on "the exchange." that's why your cash automatically goes into a money market fund when you open a new account. just another reminder of the value you'll find at fidelity. open an account today.

welcome back let's catch you up on a couple stories. leslie had to sneeze and now that is on my mind >> look at the bright lights >> let's catch you up on a couple stories on your radar it is time for rapid fire. here to dig into the headlines are dominic chu, leslie picker and bill griffith. welcome back, everybody. first up, smile correct cldirec a rough ipo.

the worst debut selling at least half a billion dollars worth of shares since 2000. it plunged nearly 30% at the bell and rebounding about 9% today. a better story for cloudflare hanging on to a nice gain of about 23%. and as it was pointed out, this after the software space has been caught in kind of a violent rotation this week it is hanging in pretty well >> and the idea here is which do you want to accentuate, the pots or the negative. some would say cloudflare is more indicative of the general -- >> but what was wrong with smile? we have talked about the big high profile ipos. smile direct felt like it could have been another one of these like hey, levy's again >> and for me that is a consumer story. targeting the strong consumer about. >> exactly >> i did a little work on this, but what do you think of smile

direct >> i will say it was surprising. because they did price above the range. so it is really rare to see a couple price above the range and then trade down. especially -- >> they misread the demand >> exactly and bankers along with the company who make the decision on pricing. but in behind cite and talking to -- in behind side, it washinn which is a very easy peer that is currently traded -- >> and better known one. >> better known one. but align is only at seven times. so that is three times higher and market was basically just saying that is not the kind of premium that you want. >> and i did a side by side comparison of align with smile direct if you want to invest in this category, who is the better candidate. one is profitable, smile direct

is not debt to equity ratio, 102% for smile direct for align technology, they have virtually no debt. it is 0.04%. and the cash flow is much better however, they are not the best company overall either of the stock down 53% in the last year. so not sure that this category is that popular right now. >> and we talked about the meal kit category and whether -- >> this is a repeat of that. >> and let's not talk about what it means for wework. >> and let's talk apple though bearish call from gold man today. in fact making them the biggest bear on thestreet, goldman cropping its price target from $187 to $165 and shares are at $217 today analyst says apple's accounting method for tv plus trial offer there are have a material negative impact.

>> essentially the way they will do it, and it is not illegal, but if you buy an apple iphone 11, you get one year of apple tv plus >> valued at 60 bucks. >> and the revenue then doesn't go for what you paid for the iphone because you are not paying anything for the apple tv plus however, the revenue -- the recognition will go to the services side. so apple is trying to beef up their services revenue >> it is proportional. they have taken that $60 and allege low indicate that between how much goes to services like $4 and change, the rest of it goes as a discounts to the phone itself so it squeezes the profit. margins go -- all of that stays in-tax so basically applying a multiple on a lower earnings per share base >> and goldman may view it that way, but will the shares actually trade that way or on this idea that, no, this is a step that will put the stock in a better foot goiin

step that will put the stock in a better foot goiin for the lon run. >> and i think that is the key question how do the rest of the analysts on wall street look at these accounting issues as goldman would point out. do they take issue with tbundle or say this is just specific for the iphone 11 pro, we'll give them this time to beef up that side of the business and then you know, we'll take- >> and they say this is a one year thing and if it goes beyond a year, they will have to revalue. >> and if they are right, that is a lot of down side. so catching plenty of attention today. another one flying the coop, sources say that carl icahn is moving hedge fund to florida he is the latest in a long line who have fled high tax states like new york, new jersey and connecticut for income tax free florida. and it is not just the power players that catch my attention, it is the mom and pops who are

doing this every day i hate hearing these stories. >> and i was up in connecticut a couple weeks ago and the amount of for sale signs -- i mean dom sees it every day. >> tom is like thanks a lot. >> but you go around these neighborhoods and everyone other house has a for sale sign in front of it. connecticut of course is a big home for hedge funds >> and what is interesting about that observation, there are certain jurisdictions town-wise in connecticut that do not allow you to put up a for sale sign. including the town that i live in so you have to go through a -- you have to look it up it is a way for them to say you don't see for sale signs everywhere because you are not allowed to have them up. so probably understating even how many houses are for sale >> and you have to applaud florida and rick scott and everybody else who set it up you can't just take it for granted that people are leaving new york no, this was a tactical move, it has taken a decade to play out

and it is catching momentum. and they put up a sign that says congratulations with a high school graduation and next to it is the for sale sign when you ask where they are going, they are going south. >> they are going to disney world. >> why is it always florida though they never move to texas >> south carolina, yeah. >> it is always florida. >> well, it is about taxes it is the free market. it is the smart money making move to try to preserve capital. that is what it is all about >> for the investment business, you have to have a this nucleus. enough of the service, they have that now it is competitive. we are all on notice next up, house judiciary committee is asking facebook, amazon, alphabet to turn over documents. part of the inquiry focuses on emails about their acquisitions, they want to know how the companies described the competitive threats. and my question, is the request different for a demand for

emails >> they are asking all the right questions i think. of each of the companies they are asking different questions of each company as it pertains to competition. my question, how far are they willing to go with this investigation, are they willing to break up facebook because they bought competitors to squelch competition, are they willing to force google to change the algorithm on its search engine to make it more fair same thing for amazon against the competition. will they make apple change their app so that it is fairer and less expensive for those app developers who want to put an app on their app store i mean, that is what you would think they are heading toward. are they just heading towards a photo-op with a either ismentse some kind, i hope not. >> once you start getting emails out there, you start wondering about individual executives. listen, i'm sure they are a little nervous

emails in general always turn up, some turn a phrase or a way of describing it that just casts everything in theworst possibl light. and investor would probably be worried about the risk too so are they just going to turnoff what they want to turn over or a lot more >> i think that the laws on the books as it relates to antitrust didn't really cover this area. >> it is gray. >> yeah, it is gray and historically if you go back hundreds of years, it is really all about just prices for consumers, back to the trust busting days is this raising prices for consumers based on monday on that police tick activities. so facebook, google, they are not raising prices.on that police tick activities so facebook, google, they are not raising prices is the laws, does it need to be rewritten. >> and the question, do the emails 46-would they break current law or would they break future laws that have to be written. >> and here is a way to look at it there used to be a time when that was considered foresight business-wise to be a to look at

where yo competitors were and fight them off put the mote arouat around you. so treated that way in emails, maybe it is not so bad but it just takes colorful language >> i agree and finally, dimwiddie bonds being offered by brooklyn guard based on the nba ontract the bonds will be offered in the form of a digital token that gives buyers a contract with the nets plus interest in return for him getting the smaller lump sum payment up front >> so this immediately when i saw this story reminds me of the fan text days. and only reason why i was a big reader of the story is because one of the first guys that came out with that securitization deal was then san francisco tight end vernon davis who got $4 million up front and sold away a 10% slice of his future

rights, endorsements and everything else. to me it never seemed to gain any kind of ground >> and he's basically saying this is like if any of us offered up our salary and said i have a contract, i want the money up front and i'll return to you with interest my question is what is the coupon on this, how is he sure -- is the money guaranteed to investors and if so, all the risk is on dimwiddie. he now has to invest it in a three year time span, make enough to return it and cover that payment to make it worthwhile >> and go back on 19 9d'97 and bowie securitized the rights on his albums at that time. coupon was 7.9%, a ten year bond and it did very well did exactly what it was supposed to do. but when you have the shaky vulnerabilities of some of these contracts of professional

athlet athletes, you have to problem. and sdidim dimwiddie is a very t kid. he had me until digital token. whatever the heck that will do >> all i know on a three year time basis, whatever people are investing for, just go get a money manager to -- you don't need to go through spencer dimwiddie to do this >> if it has an attractive enough y50e8d, then it will did well >> spencer, tell us the coupon thank you all very much. have a great weekend coming up, millennials getting priced out of their local housing markets are turning to the internet to buy properties sight unseen. we'll talk to the ceo of 9 enth internet platform making this happen next.

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competition from deep pocketed investors are pricing millennials out of their local real estate markets. but one company can is his help get back into the game it provides investors with data analytics, property management services and a 30 day money back guarantee. one user says it is so simple like buying a pair of shoes. joining me gary beasley. how many people have bought a house this way >> a couple thousand actually. i don't know if it is easier than shoes, but it is easy >> we talk about how hard it is to get a mortgage. how hard is to get a house in another state? >> it doesn't really matter. the lender is looking at the borrower and collateral. and so i think some lenders like the fact that borrowers are buying across different markets. >> are most buying one house and

have never been homeowners before or buying multiple properties >> yeah, so it is close to two properties per investor right now. about 75% of our users of our buyers are first time investors though >> so first time investors >> not necessarily first time homeowners >> exactly how old are you guys, how long have you been around >> been around four years. >> so as it becomes more common to look to real estate for income, which sounds like it is a lot of what is happening right now, you are alare launching ne features >> and as you said earlier, the majority don't ever see the home in fact almost nobody sees the homes. 93% of our buyers buy out of state. so when r when my co-founder and i launched this, we didn't know

if people would buy sight unseen that was a big bet but it turns out that we turned on the site and people started doing it at real scale and i think it is just a desire to get exposure to the biggest asset class in the world remotely >> and now credited investors can purchase just shares of a home for at little as $5,000 you have it in four cities if i go on your website, do i see the total of for sale housing stock in america or are they specially selected properties >> no, these are principally our own listings that we have curated. and we do select differencely pull in other homes that we feel are good investments and put it into our system. so you can do the undertrying a -- underwriting and do different assumptions. and we do provide that 30 day guarantee as well as a rent guarantee if homes are vacant when i buy them. >> and how do you guys make

money? >> we make money, we charge fees on transactions. so for mortgage, we just help arrange them, we help connect people with good lenders for us, it is all about creating a great customer experience. that is how the market places work be. if we can deliver a high level of customer satisfaction, more people will trust us and use the site >> and it is fascinating gary, a real window into what is going on in the country. tha thank you for joining me. >> happy to be here. coming up, autoworkers could go on strike this weekend, but at just one automaker. the details next and shares of apple are now at session lows following goldman's price target cut, worst performer on the dow, right now down 2.5%. (classical music playing throughout)

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welcome back developing news out on the united auto workers union. the labor dispute with the auto makers phil has the latest. >> it's decision weekend we have news regarding the

negotiations between the uaw and the big three within the last half hour. the uaw has temporarily extended the contracts with ford and fiat chrysler that was expected as those companies are waiting to see what happens between the negotiations that are going on it comes down to this. what are the two sides looking for between these contracts. gm wants lower health care costs and the workers to pay for a greater percentage of their health care costs and job flexibility. the uaw wants a pay hike they see the properfitability a general motors all of this is overshadowed by the ongoing and widening corruption investigation the federal government is conducting into the leadership at the uaw gary jones, the current president, is implicated in the latest criminal complaint. there was an arrest that was made yesterday of another uaw officer. as you take a look at shares of general motor, keep in mind they

have about 11 weeks worth of inventory. if there is a strike, it doesn't mean that sales stop many the showroom they have plenty of vehicles for the near term. >> it's been a long time thanks very much next big decision on interest rates is less than a week away. this one coming with reports of fed infighting and a prominent official suggesting the fed should get political what can we expect that's next. every curve, every innovation, every feeling. a product of mastery. lease the 2019 es 350 for $379 a month for 36 months. experience amazing at your lexus dealer.

welcome back the fed is heading into next week's meeting in a situation unlike any other we've seen. we know fed members tend to agree, in the past much of that is played out behind the scenes. this time it's happening very publ publ publicly at one point two members gave completely opposite views in terms o what to do the president lashed out against the group and fed chair personally going so far as to calling him a bone head. greg, unlike any situation we've seen in quite some time. how will it affect the koutcome

next week? >> i think it is definitely the case we haven't typically had to deal with fed officials described as boneheads. i've always admired their ability to shut out those distractions i don't think it would be that different. you're right to say there's a division within the community about wa they should do next it's what you see sort of that turning point. my own view is they will probably go a point. what i'd be watching with interest will be the dots that tell us whether there's a strong sort of like consensus for going again at their meeting after that you might see a dissent from jim bullard in terms of wanting a

greater cut. it's not a bad thing if you're jay powell to have people on both sides of you wanting to go in opposite directions it makes your policy look for reasonable >> you knew about it in the past because you with so plugged in with these guys. you really had to read between the lines to figure out what was going on that's not the case anymore. is that because the data has been confusing is that because we have different types of policy makers people have seem almost happy to compete for head lielines and he duelling points of view. >> it is the times that we live in i've seen fed officials go

public and seen in the last few years. you see a lot more fed officials to discuss their point of view as a journalist, i'm all in favor of government officials with great influence of our lives like talking about it, talking to the public describing what's going on. there's not anything wrong with that the bottom line is does it get you to a better discussion if we're hearing the public discussion of the factors internally, nothing wrong with that >> what do you think about the op ed? i can't help wonder if bullard is catching the president's attention for the next fed chair appointment, something like that >> i think it caught a lot of people off guard it surprised me. what i think is almost -- what i'm fairly confident of is this former fed official saying the fed should consider politics and not cut rates. we'll have exactly the same influence with president trump telling them cut rate which is

is to y zero these folks, i mean they focus only on unemployment and inflation. >> even that the picture has been murkier than normal. that does it for the exchange every one. thank you very much. we'll see you in a moment. welcome to power lunch for a friday here is what's new at 2:00 we're on record on high watch. stocks within striking distance now of record highs as the market looks to close now for a thinker straight week of gains we'll tell you what can keep this rally moving upward basic tech und big tech under fire. a house panel demanding e-mails from four big tech giants as it ramps up its anti-trust investigation. valuation dropping by the mi