final trades here. >> verizon. >> l 3 harris. >> netflix. >> the impeachment will happen on twitter >> fedex it's cheap >> there you go. great job. thank you very much. a lot of breaking news in that hour as well i'm sure that kelly and the team at "the exchange" will pick it up right now take it away >> brian, thanks very much hi, everybody and here's what's ahead. the dow is down more than 200 points right now we'll have more on what's driving us lower at this hour. we're also at a key inflection point from the transports to the chip names to the value stocks we'll talk about whether this is all signaling a breakout or a breakdown. that's all coming up in the first couple of minutes. plus, what france can teach the u.s. about free markets, that's right, france, the author of a new book making that argument is here to make his case. and we'll talk about the netflix breakdown that keeps going on and whether that's plaguing the market today some high-end housing problems, a massive space contract and facebook keeps making

acquisitions we begin with market moves >> good afternoon, kelly here is where we stand at 1:00 eastern. stocks reversing earlier gains we were up 129 points right around 10:00 a.m. eastern. but currently down triple digits, nearly 200 points for the dow and s&p 1% and we're sitting at session lows. we seemed to lose steam right after president trump's speech and we're also waiting house speaker nancy pelosi's announcement later this afternoon and the move into treasuries is notable. bonds around two-week lows we're seeing gold, seeing a little bit of buying here, up about.65% and the volatility back up above 17, just about 16.6% on the day all of this coinciding with a relatively sharp drop in oil prices just in the last four you can see some of the major energy players like marathon oil, hal burton, all down

between 4% to 6% lastly, i want to take a look at shares of micron dropping about 2% after president trump mentioned the company during his u.n. speech in relation to chinese stealing intellectual property you can see when that speech was made and right around there, that's when the stock hit session lows and now down nearly 2.7% and that's also weighing on some of the other chipmakers. kelly. >> thank you very much markets are at a nice edge here with some major sectors, like the transports, the chip names we've had breakdowns in some big momentum plays like netflix, even as bond yields have stopped rising and are reversing are we on the cusp of new leadership or a reversal let's bring in bill smeed and commander in chief investment officers for merle and bank of america private bank welcome to both of you there's so many headlines just

in the last couple of minutes here i just want to begin by asking you about them chris, we have people watching speaker pelosi on some impeachment talk this afternoon that may or may not continue to pick up momentum you have the president talking to china at the u.n. this morning and now you have the ten-year yield down and a dow down a couple hundred points does that make sense to you the way the markets are reacting >> at the noon hour there was a lot of talk about various things as it relates to liquidity and are markets fragile. markets are fragile on the basis of they're waiting for the catalyst to say it's okay. we've been waiting for a long time. >> we're never going to get one, right? by that time bill will have made all his money. >> and that to a point is why we should go to new highs. >> climb the wall of worry. >> climb the wall of worry as soon as you get a reprieve on liquidity, and liquidity, the dollars available to do something with are larger than

they are now and the all okay in terms of the shortage isn't there, then you go into a new earnings growth cycle next year and that's what rallies markets in our few. >> sure, if you see the fundamentals kicking into place. bill, is there any reason to take down multiples or to watch the transports and chip names and all of these macro sensitive parts of the market because you think the president was talking tough on china this morning? >> the markets are not here to instruct us. everyone acts like there's some kind of worldly professor, like the stock market is the robert shiler of equiti so let's put it this way the market is always going to do what it takes to frustrate the most people. so we spent the last five years shoving people into revenue growth stories and now, thanks to we work and all of this, everybody is waking up and going, wait a second, these businesses are five or ten years old and they don't have any

profit i started in the business between '80 and '89. they wouldn't take a company that wasn't profitable public and we were considered a rogue firm. >> by the way, to your point, we've had the high-profile issues with we work and we'll have the latest in just a minute on that. you also have netflix which has gone from being 40% year to date to down. and on tf all that, the ipo basket had been up and it's starting to show a loss of momentum. >> we started a piece called battle royale. that's a bad industry. that's a bad business. there's a battle royale right now in scripted television and scripted movies because of streaming. >> but you still like discovery. >> we like discovery this is unscripted we like this we own comcast we like unscripted television because it's extremely profitable >> if you say so, from your lips

to god's ears. so you're sticking with wells fargo, which we've spoken about. >> the rates are down and that's great for the home builders. every time we get scared and the rates go down, there's 35% more millennials coming for a house. >> and wanting the affordability. so chris, we saw the ten year back up to almost 1.9% to bill's point that caused a lot of pain over the last couple of weeks after we got to such extreme lows how do you figure out which way it's going to break now? >> we've got so many waves going on we actually think we're in the fourth mini wave of this little expansion that should have taken place over the summer but was stalled by the fact that the fed was too tight and liquidity was too tight. to bill's point, this whole rotation, we get these episodes, one, two, three-week episodes, this rotation from ultra-defensive, field proxies and equities, seems to have legs

to it rotating into the more value, into the more cyclical oriented. >> is that goi to ta the whole market to new highs? >> this is the key it takes the market slowly to new highs because it's a more diversified way to invest, versus one sliver of the market driving the earnings growth. so as we go into next year, sure, there's worries. politically there's worries everywhere. >> people forget in the '03 bear market whereech stocks got slaughtered, 80% declines were the norm, the average stock went up the non-tech stuff went up in that bear market and again, from the extremes we saw in the last year or two, you could see that for two or three years because they've got everybody trapped in the same stuff and -- >> and now maybe looking for a way out. >> they'll have to rotate, but you don't rotate into those, you get scared and sell. >> you sell everything before you rotate

agreed to have your wisdom switching gears to we work, let's get you the latest adam neumann is expected to step down as ceo. he will remain as chairman the company has shelved it's ipo plans. cnbc is now reporting on how soft bank is safe from a devalued ipo because of an obscure protection potentially worth millions of dollars for them joining me now is cnbc kate and alex sherman alex let's start on the departure. >> the board meeting just ended and i'm told it was not contentious, he's placing down as ceo and he will be replaced by two people that have been at we work for a little while at this point adam will stay on as nonexecutive chairman, so he will not be removed completely from leadership. >> and he still owns the

company, controls the board even that's making these decisions? >> that's right, so you would have to imagine he sort of saw the writing on the wall here we've reported in the past 48 hours that soft bank had been pushing for this soft bank the largest external shareholder in we work so i think adam sat down at the board meeting, figured out what the temperature was and -- >> because even though he controls the company, in effect soft bank does as well they own so much of it and their involvement is key to the ipo. >> and this is all tied toward the last several weeks of this company trying to go public, the valuation not being there to go public and potential investors in the company and the current investors realizing the way the company was run, a change needed to be made if this company wants to go public down the road. >> it's interesting to note, we went from the headlines of them kind of dropping up the ipo to them get lg cold feet and saying we need some changes.

>> right and if they go forward with it, and we're not clear on exactly when that will happen. there are some claes, renaissance capital had a clause that would protect them from some downside. it's called a ratchet and it's common square used it this would be the largest in history because the difference between the valuation that soft bank had, which was $47 billion, versus where the demand is for the ipo, that valley is so wide that if they were to get this protection it would end up being the biggest, they'rest magt $400 million in shares that would go to soft bank. >> so it kicks in a whole other allocation to them which gives them more ownership, but a diluted point of view. >> but to be very clear, this was clearly not the plan when we work wanted to ipo there was a line in the s-1 itself that says if adam neumann is no longer the ceo of this

company, you can expect an adverse effect that's written right there in the s-1. >> it could ill still be true. this is a company that he created and got to this point. the valuation has gone up in smoke over the last couple of months, but that could be because soft bank was willing to pay a price that no one else was willing to pay and the information is reporting that they've discussed with bankers laying off a third of the work force. >> one of the things they've talked about is coming up with ways to slow down your growth rate so if the company does go public down the road, it means maybe the company will needless capital because that way it can stay private for longer and maybe doesn't need to raise quite as much private capital. the irony is that the son has been a big champion of adam neumann's for years. he's the type of guy that adam would get along with all about expansion, big ideas so it wouldn't be his choice, per se, to have adam step down

as ceo, but i think the writing was on the wall with everything that's happened over the last couple of months. >> so soft bank is in the position of needing this company to raise the additional funds through the ipo process, so in other words, the clock is ticking is something that everyone is pushing for that it needs to happen unless they can come up with some other way of covering their pretty high cash levels for the next few years. >> and even if they go public, it wouldn't make up for all of the losses they would have to write down some of those losses $400 million is nowhere near the amount that soft bank would lose it's a miniature protection in the entire scheme of things. although, like you said, it's not clear if and when they are going forward with it. >> at this point we've heard maybe still at some point in the next few weeks or months, but if they're making these changes it sounds like they're trying to get the company in as good as shape as possible. >> sources close to soft bank have told me that they want to make sure this company is right

and in order before they go public so we'll have to see publicly we plan on going public this year, and yet soft bank has said privately we don't want this company to go public this year we want to make sure this company is in better shape from a governance standpoint and this is obviously a huge step in that direction. >> if they don't go public would soft bank be able to pony up the additional funds >> that is a question and there is a loan. >> kenny:le on them going public that gives them billions of dollars. that loan would need to be redone and they would work with goldman sachs in order to revise the terms of the loan. >> some major changes coming out of the board meeting today thank you both very much for more on we works future, you can go to cnbc for full coverage here's what else is ahead on "the exchange. >> announcer: coming up, national renewal that was the president's message to the u.n. in his call to

reform international trade the details ahead. plus, it was once a darling of wall street, but investors have lost their love for netflix this year a look at why and the bold call unanalyst made today and what france can teach the us and what france can teach the us about free markets this is "the exchange" on cnbc y. voya helps them to and through retirement... ...dealing with today's expenses... ...like college... ...while helping plan, invest and protect for the future. so they'll be okay... without me? um... and when we knock out this wall imagine the closet space? yes! oh hey, son. yeah, i think they'll be fine. voya. helping you to and through retirement.

but we're also a company that controls hiv, fights cancer, repairs shattered bones, relieves depression, restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. from the day you're born we never stop taking care of you.

a lot of politics driving these markets today. president trump was speaking at the u.n. general assembly today talking pretty tough on china, and once again homing the message of nationalism aimen is there live with the latest for us. the markets did appear to turn lower after his rhetoric. >> that's right, and one of the questions is whether or not the president's tone on the issue of china was what the market wanted to hear. the president was, as you say, very tough on china. criticizing them for a host of violations of international economic norms the president also sought to put the china trade war in a broader context of deglobalization which he said has gone too far over the past generation of leadership over the world. the president also focused on iran, not giving us a lot of new specifics on the issue, but specifically blaming them for the attack on the saudi arabia

oil facility so that was something that he was able to pin down in terms of specifics and then also on social media companies. it was fascinating to listen to the president talk about social media companies and media companies more broadly saying that they have to up hold freedom of speech, saying that the social media executives are telling people what they can and can't say. the president seemed to view that as a threat really to freedom of political discourse around the world so a lot on the president's mind, but in terms of the markets, i think it was the focus on china and then also this question of the politics hanging over all of this as the democrats get set for a meeting at 4:00 today up on capitol hill where they're going to talk about the possibility of impeaching this president, kelly. >> absolutely. that is what everyone is chatting about right now appreciate it, thank you, sir. while the president was giving his speech, as aman alluded to, democratic leaders were meeting on capitol hill to discuss his possible impeachment that also pushed stocks down let's bring in managing director at capital alpha partners and

contributor. james, let me just start with you, what is the scuttlebutt you're hearing this afternoon, the significance of some of these moves? >> the impeachment story is a story where we simply need to get the facts first. we've been through this circus multiple times already the facts will emerge. >> the way politico put it earlier is speaker pelosi's months long effort to contain the impeachment has crumbled in the face of the issue with trump and the ukraine call do you believe that is the case, that we might be on that path? and if so, what is the significance >> so she tried to hold this off for a long time because she thought it was a real political loser for the democrats to pursue impeachment it's unclear whether it's just pressure, increasing pressure from members of her party that she's doing this or bowing to them or at least having this meeting, or if she truly believes that plaerhaps the calculus has changed

to james' point, we have to see what are the facts president trump has referred to releasing the transcript of this phone conversation with the president of ukraine that would help clear up a lot of things. so that would move things forward dramatical, i think. bottom line, though, i think the market would be far lower if you thought that actually the president could be ousted. but the impeachment process can happen in the house, but it's not going to get through the senate. >> before i move off the topic, the last thing i was going to ask you, is like michelle said, if the house does the impeaching, there's no necessary event that comes of that, only if the senate then advances the cause for his removal from office, correct? >> look, i'm more worried because pelosi may need a reason not to do usmca and this could be it. the house could of course have an impeachment vote but it would go nowhere in the senate and then finally dragging this controversy out is not going to help joe biden, who is going to have to explain the activities of his son, hunter, no matter what

so i think that biden and pelosi should be careful what they wish for. let's see the facts first before we speculate and i think no one should jump to conclusions. >> including the market. but i like your point about the usmca. you can understand if there's a sell-off about that uncertainty. kind of to that point, that brirngs us back to what the president said about china that sent the markets lower some tougher talk, but what do you think they're reading into this >> well, he reiterated a theme, which is china is the second largest economy in the world and yet when it comes to the world bank and the world trade organization, they have this developing nation status the two don't seem to make sense. there are more ferraris than any other country in the world and they're still considered a developing nation. so as a result of that status, they great breaks at the wto and loans at the world bank which is geared for poor countries.

so that's a theme that he has been pushing on and you've seen with his appointees. so i think that's partly what's going on here, is he's trying to send a megsage that their status has to change and china doesn't like that. >> sure, because they get more perks this way, james. but how would you rank these issues, the rhetoric with china and the status of the trade talks relative to the mexico-canada agreement that you just mentioned >> well, the president has used the speech and he said that every country needs to deal with its own people first, dealing with peace and pro pert, dignity and justice at home. he made a striking critique of china's trade practices, as well as his position on democracy and human rights this is something the president has soft pedaled before. i think it probably does point to a slowdown in the u.s./china

trade talks, but the reality is that calling china out for its bad behavior, calling iran out and venezuela, these are the ways to get a better deal in the long run but clearly we have a signal today that the markets will need to wait for resolution on trade. >> and they have to reprice that great stuff. thank you both really appreciate it still ahead, facebook's new acquisition, the tech giant keeps growing despite lawmaker's concerns about big tech getting too big. is this a good move for the company? plus e-cigarettes are under fire on capitol hill today as vaping related deaths and illnesses rise ahead we'll talk to the ceo of one company developing a new product to test for harmful vaping substances. and take a look at the dow we're down 223 points after all of this drama that we've just been discussing. the ten-year yield it was below 1.6% and now it's slightly above the levels and it's only slightly above the

two-year note as well. "the exchange" is back in two. usaa took care of her car rental, and getting her car towed. all i had to take care of was making sure that my daughter was ok. if i met another veteran, and they were with another insurance company, i would tell them, you need to join usaa because they have better rates, and better service. we're the gomez family... we're the rivera family... we're the kirby family, and we are usaa members for life. get your auto insurance quote today. as a principal i can tell you this. when one student gets left behind, we all get left behind. this is a problem that affects each and every one of us. together with ibm, we created a whole new kind of school called p-tech. within six years, students can graduate with a high school diploma,

a college degree, and a pathway to a competitive job. you know what's going up today? my poster. today, there are more than a hundred thousand p-tech students around the world. it's a game changer.

doprevagen is the number oneild mempharmacist-recommendeding? p-tech students around the world. memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. >> welcome back to "the exchange." we mentioned markets are right near session lows right now. let's check in with bob pisani >> we sort of had a three-strike hit to stocks today. we started positive, but began weakening just after 10:00 when we had the consumer confidence numbers a little bit weaker than expected strike one

remember, the u.s. consumer is helping prop up the world economy so that's not trivial. then president trump began emphasizing the negatives on china trade in his u.n. speech that was about 10:20 or so, saying that china had not adopted promised reforms and it consistently stole intellectual property that's strike two. finally about an hour ago, we got louder impeachment talk, speaker pelosi said the announcement might be made later today, although we don't know what the announcement is going to be. this is a very volatile day in what has been a rather unvolatile month we've been in a very, very narrow trading range for the last several weeks now really small ranges. we haven't moved in a 1% range for three weeks. that's going to be broken today. predictably, if you take a look, stocks lagging today include banks socks like jpmorgan, the industrials like caterpillar and

3m energy stocks have been lagging for several days now we mentioned procter & gamble and walmart both at historic highs and we've seen moves in mcdonald and rer viverizon as w. it's kind of a toxic stew, kelly, of china, consumer and now politics back to you. >> bob, thanks very much bob pisani down at the new york stock exchange >> here's what's happening at this hour. president trump meeting with british prime minister boris johnson at the united nations. trump dismissed british opposition demands that johnson resignfter the supreme court ruled he acted unlawfully in suspending parliament. johnson repeated that he disagrees with that decision. >> let me clear, we respect the judiciary in our country and respect the court. i disagree profoundly with what they had to say.

we need to get on with brexit. that's the woeoverwhelming viewf the british people. >> an earthquake hit northeast pakistan today it collapsed highways and damaged dozens of homes and businesses and the fda has expended its recall of a widely used blood pressure drug. the announcement targets an additional five lots of the generic job losartan it contains trace amounts of a chemical that has been linked to cancer you are up to date that's the news update, kelly. i'll send it back to you. >> sue herera. here's what's still ahead on "the exchange. >> announcer: coming up, netflix calls from grace, facebook doesn't seem to be concerned about dc pressure as it makes an acquisition. the high-end real estate market is hitting a road block, and space, here we ce.om that's all ahead on "the exchange."

i'm embarrassed to even say i felt like i was going to spend my whole adult life paying this off thanks to sofi, i can see the light at the end of the tunnel as of 12pm today, i am debt free ♪ not owing anyone anything is the best feeling in the world, i cannot stop smiling about it ♪

welcome back let's catch you up on a couple more stories that should be on your radar today it is time for rapid fire and here to break down the headlines are rob frank and morgan

brendan. let's talk facebook. they did announce the acquisition of control labs today. it's a new york startup that specializes in allowing people to control computers using their brain. they do it through a wrist band. the largest story is the acquisition is happening as facebook is under investigation for anti-trust practices, specifically whether their acquisitions stifle competition. they don't appear to be slowing down at all this year when it comes to making bids for more companies and getting into more lines of business. >> that's what a ceo should be doing. they shouldn't allow the regulation and all the uncertainty out of washington to stop them from doubling down and putting money into new investments. i think this shows facebook's ability to try to expand beyond social media into hardware virtual reality and now a noninvasive way to track the brain. i want to see what it means for oibs and end users like myself >> not much of anything at this point. it is cool technology, but i

think because it involves the brain especially, it feels sort of nefarious because everybody had a panic about their plans with cryptocurrency. >> let's see what this company has already done with our data, our privacy, what are they going to do with the neurons that come out of your spinal cord? >> i'm sure the idea is, look, there's a lot of rhetoric and a lot maybe coming down the pike they would have whole committees reviewing their acquisitions in the future they might as well do it now. >> and it's a small acquisition, it's somewhere between a half billion and a billion. >> this is not central or fundamental to their main money making business model. the idea of mind reading machines and brain tech is something that the company has been working on since 2016, so it will be willing to see how it fits into the hardware piece of things but my initial feeling on this was, oh, this sounds creepy to

me, the idea of the electricity that's generated by the neurons running through my spinal cord being pushed into digital signals that allow me to control computers. but the more i think about it, if you have some sort of disability or issue, this could probably do a lot of things in the coming years as it gets developed. >> why are we assuming the worst? >> this is more consumer oriented. >> we have a surprise break-in rapid fire story because there's more breaking news on we work. what's going on, alex? >> we work has officially come out and made a statement now saying that adam neumann is stepping down as ceo a couple different headlines to note, these are still coming in sort of as we speak. one, adam neumann, corporate governance concerns around this company lowering the voting powers to three to one, that

will help assuage potential investors down the road that he doesn't have so much control over the fate of the company i'm also told by two different people that an ipo is highly unlikely to happen this year logic dig that's true. the company doesn't have a full-term ceo at this point. it will have a search for a ceo. they have two that will take over on an interim basis as ceo. >> alex, to your point about his ownership of the company, would this leave him with less than majority control >> yeah, so i was told that he will still have majority control over the company but there's going to need to be some math done exactly here to make sure that that is in fact the case but needless to say, a huge sticking point among investors, and also soft bank, the largest

external shareholder had consistently felt ignored by adam neumann i'm told over the past few days on a variety of issues so this will help get soft bank more say over the future of the company. and if you look at a variety of the different vision fund investments soft bank has made, their influence over the company and sort of what they do is a big reason that they invest. they want them to work together with other companies that are in the family, potentially do certain mergers within the family so eliminating neumann as the ceo and putting someone who is more favorable to soft bank's opinions is another part of the story. >> what do you think >> the problem is not adam neumann, the problem is where we are in the cycle skpl if you can't make money in this cycle with the business model, you're not going to do it later. >> give them a chance. >> all they have to do is keep growing. but i think he was an asset. he was the guythat was selling the business model

he's still going to be part of the company and a chairman, so it's kind of the worst of both worlds his energy and involvement on the day-to-day stuff, you remove that, unclear whether someone can really step in and take the leadership role. >> i just want to mention the price of their debt has dropped after him leaving so that is not necessarily the market saying we are going to shape up this company. they're going, okay, our founder, creator, our leader is out. >> robert just hit on the very crux of this debate, which is how much of this is the business model and how much is the man. two thoughts on that the first is presumably soft bank, if the company is not going public doesn't have to take a write-down. but secondly, who comes in longer term permanently to replace adam neumann he's been held up as a tech guy, a guy that is real estate tech savvy, for better or worse, there's certainly a debate to be had there. >> how does that change the

valuation of the company if the whole idea is we're not just regis, we're something different, we have whatever the pitch is, do they bring in somebody they have to who can continue to make the case or else the valuation might stay where it is. >> that's a great point. maybe someone who has a background in real estate, but also technology that can comprise the work that we work has done and their expand across the u.s. and real estate in many different cities and try to use that to their benefit ahead of the ipo. they still have a company that wants to go public and a lot of invests that want to see the company go public. >> what's important also, the idea that it's official, the ipo probably won't happen this year at all, maybe next year. this is a company that needs cash, and i don't know how long they have to keep burning cash like this. now this is off the table, soft bank may come in with interim financing. they're going to need money. >> that's exactly what's happening with the market,

interesting as well. sherman, anything else for us? >> just reading through the statement as i'm getting it here, various different comments by adam neumann and also by the interim ceos and also by a board member from bench mark mostly sort of platitude-ish language, it's saying what a great job adam has done over the years. as you sort of take a step back here from the breaking news, you do have to realize again sort of the sweeping nature of how unexpected all of this has been. it was a surprise to come that we work was going to even ipo at all this year. i have been talking to a lot of people earlier this year and they said it's too late. and then a lot of this came together quickly and as the various demand for this ipo dropped and dropped and the valuation, public valuation of the company got lower and lower, to go from adam neumann as this visionary and this company has a $47 billion valuation and putting a line in the s-1 saying

he was essential in the success, and now him stepping away. now, the two biggest tech ipos in recent memory, both losing their ceos before each company went public. >> and both of those companies had benchmark as an investor. >> and soft bank. >> so what kind of role do you think that that plays here was the template used at uber do you think potentially implemented here with this >> certainly they were aware this was possible but certainly the circumstances were different and this was far less contentious than the uber situation, which of course was a big fight. trav travis clonic, adam realized the writing on the wall and said i don't want this to get ugly and i still need soft bank for future capital, so i want to have a good relationship with them going forward. >> how much does this hurt soft bank's reputation, if at all, do

you think? >> well, it's probably not great. i think there's going to be a lot of scrutiny around vision fund two moving forward as soft bank has all this capital and i think the big scope realization here is maybe the stakes they were taking in these companies were just too big for the public market to digest we've seen uber's ipo struggle, slack's ipo struggle obviously we works ipo struggling to the point where they can't go public is it possible the strategy is too much money too quickly and the public markets are not ready for these sizable investments in these companies that may take 20, 30, 40 years to flour issue. >> it was fascinating to try to watch the companies try to distinguish themselves with the regulatory crackdown already headed their way great reporting, alex. thank you, sir that's rapid fire for today. that will definitely do it >> we rapidly fired. >> he was rapidly fired.

the death toll from a lung vaping disease related to vaping is now up to nine. up next we'll talk to the ceo of a company that's trying to protect cuoms omsterfr dangerous additives. "the exchange" will be right back eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

tv aas many safety features powas the rx, the new...... the lexus rx has met its match. if they're talking about you... you must be doing something right. experience the style, craftsmanship, and technology that have made the rx

the leading luxury suv of all time. lease the 2019 rx 350 for $399 a month for 36 months. experience amazing at your lexus dealer. welcome back we've got a lot of movement in markets and in bond yield, especially this afternoon. les get out to rick santelli who is watching the action for us what's going on? >> you have to remember and you know this quite well, viewers, traders are a very nervous bunch and then you add in there's a lot of automated trading going on and that's very trigger happy as well. early this morning there was lots of talk, and it's been in the news, let's all face it, pelosi announcement, impeachment, what's going on with regard to the president and some of the issues regarding the ukraine. and it's definitely taken a bit of a toll in the markets now, if you look at the enter-day dollar index, you can

clearly see right around noon eastern the drop that the market had. and granted, we're already drifting it really exaggerated as you look at two-year notes and ten-year notes and should we close at these levels, they'll be low closing yields. traders don't necessarily believe politics is going to have a lasting effect, but these things can get a life of their own, so we want to be very cognizant of the fact that they are monitoring this story and its effects seem to be melting rates. >> rick, appreciate it thank you very much. mr. santelli watching the bond yields as we continue to watch the markets this afternoon as well nine people have now died of vaping lung injuries cnbc health care reporter is there with the latest from capitol hill angelica, what is the mood down there? how tough are they being on them >> lawmakers are angry they really want to know what is making people sick and the cdc

can't say yet. they say it's too early to pinpoint a specific brand, product, substance and it's too soon to rule anything out or name a culprit. >> so if they're being very careful at this point not to do that, if you're juul and some of these companies, is there an opportunity for you to still make your case and get a lighter regulatory touch than some of the all-out bans that are being announced. >> of course the companies are going to try to blame counterfeits, however the cdc was very careful to say that it's too early to rule anything ou, including e-cigarettes so you can try to make your case but the cdc is saying it's too early to say for sure. >> we're about to speak to one company that is trying to figure out what is really harmful here. did the cdc shed any light on what is the specific cause of these lung illnesses and deaths? >> some lawmakers did press the cdc on this today and they've

said that it's still early they've heard of reports of substances and the different additives, but they're saying it's too soon. they did say that it appears that it's a chemical exposure or exposures, so that could play a role but again, too early. >> so of course in the meantime with everyone being so concerned, there's a lot of caution about using these products angelica, thanks very much. >> thank you. >> as i mentioned, for more on the house committee's hearing, you can go to cnbc for full coverage joining me now as you just heard, the cdc has not found a consistent pattern behind the hundreds of vaping illnesses our next guest is taking matters into his own hands they've developed a procedure to test for products that may be making people sick joining me the mr. brandon they were a cannabis is now a vape additive testing lab. brian, first of all, what do we know about what's harmful in

vaping >> thanks for having me, kelly really excited to be here. like your previous report had mentioned, it's tough to pick out a specific cause of a specific element that is causing these illnesses and deaths but due to consumer demand, a lot of people are worried about vitamin e as tate so we developed a test for that and we're continuing to broaden the spectrum of what we test for for other additives that people might want to see that could potentially be in the vape products. >> are people trying to avoid exposed ur to this overall and tell us how this test works and what you're able to show people about that information >> sure. right now the big demand is for vitamin e acetate testing. that's been clamoring for demand right now. but we are developing that test further, adding more fillers and additives to that that people want to see. >> are you working with

companies like some major manufacturers or anything like that is this more a tool for local regulators or even more consumers? who can use this product >> the regulators haven't quite reached the point where regulatt reached a point are they're asking for this test yet we're working with large brands. right now most of our demand comes from the cbd and thc side. >> you had developed way for people to have more security about what's in those products, and by the way, some of what may be causing the damage with vaping could also be those harmful materials. what are you able to detect and pick up on >> what we test for in this typical cannibus are pesticides, heavy metals, residual solvents we don't know where the sign is

quite yet and what really is the cause. people like the cdc can help us get to the bottom and make sure we have products in the legal supply chain don't contain these. >> it's fair to say both were for cannibus and then for vaping >> we're all about transparency. we think there should be transparency throughout the supply chain >> how much does one of your tests cost >> it depends on the type of test it's about $125 for the vape fillers. it can be up to $900 >> thanks for much

thanks for joining us. >> agreed. >> ceo and co-founder. congress is taking aim at businesses from big tech to big banks from both sides of the isl aisle. is the u.s. no longer the land of free markets? the new champion might surprise you. i knew about the tremors.

but when i started seeing things, i didn't know what was happening... so i kept it in. he started believing things that weren't true. i knew something was wrong... but i didn't say a word. during the course of their disease around 50% of people with parkinson's may experience hallucinations or delusions. but now, doctors are prescribing nuplazid. the only fda approved medicine... proven to significantly reduce hallucinations and delusions related to parkinson's. don't take nuplazid if you are allergic to its ingredients. nuplazid can increase the risk of death in elderly people with dementia-related psychosis and is not for treating symptoms unrelated to parkinson's disease. nuplazid can cause changes in heart rhythm and should not be taken if you have certain

abnormal heart rhythms or take other drugs that are known to cause changes in heart rhythm. tell your doctor about any changes in medicines you're taking. the most common side effects are swelling of the arms and legs and confusion. we spoke up and it made all the difference. ask your parkinson's specialist about nuplazid. great riches will find you when liberty mutual customizes your car insurance, so you only pay for what you need. wow. thanks, zoltar. how can i ever repay you? maybe you could free zoltar? thanks, lady. taxi! only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪

welcome back to the exchange here is a check on the nasdaq which is the worst performer of the major averages here are some the laggards, tesla, netflix and mylan both of those have been an issue today. the enemy seems to be anything big big tech, big bank, big pharma the flaws may be too little competition. joining me is an economist at new york university stern school of business.

the market you can free market and inspired american regulation in the 1990. what's changed in france the last 25 years? >> i came to the u.s. 20 years ago. 20 years ago internet service, cell phone plans, airline ticket, all of that was much cheaper here than in france. today it's the opposite when you fly around the world everywhere the services are much cheaper than in the u.s. >> you pointed out the french used to pay 17% more now they pay 27% less.

the idea, the business model of the cheap airline, local time that's u.s. idea it's an american idea. it doesn't exist here anymore. there's no nothing to speak of we have six or seven one of the things that give me pause is even though you point out it's to help competition, the french economy is not more dynamic than america your unemployment rate is 9% now. they are trying to go on after this tech tax. the middle class is taxed out and the gdp numbers have not been that great. it's not translating to the same kind of economic power as america has even though you would say our markets are less competitive. >> oh, yeah. you look at the big picture, opportunity is one of them

that gap has narrowed over the past 20 years. >> what does this tell u.s. regulato regulators they just allowed more consolidation and phone services but there might be more competition coming to that space. there's questions about how to regulate them there. >> you look at the remedies, i think they are too weak. they should be much more forceful big tech is another story. it's very interesting.

they are the easy target i don't think the guys are always there >> retail. >> the retail margins have not increased that much. >> you wouldn't even be going after big tech, per se to your point about price, a lot of these products are free the traditional way of evaluating whether they are driving up pricing is kind of out the window that's because they are putting it on the supplier side. we don't see the suppliers get squeezed there's case for these guys. they are the only offender of competition. there's many others. >> you still not totally convinced me that we can learn from france when it comes to

competition but perhaps they are doing it better than we are right now. >> the irony if you look at everything, almost all of it is the u.s. play book from the 1990s. >> thank you very much good to have you hear. the book is called the great reversal that does it for the exchange. i'll join melissa on "power lunch. ". thanks see you in just a moment here is what's new at 2:00 the drama in d.c. hitting the markets. stocks falling sharply as impeachment gains steam among the democrats. just how bad could things get. wework ceo adam neumann is out. is ipo now off the table lawmakers in wa w about to kick off a hearing to address concerns around the dominance of google and facebook. we have full