offering will be well received and lower health care costs are going to be a big theme. >> the farmer. >> northrop grumman woman getting good contract news pullback today provides an entry point. >> josh brown. >> disney, stay long. >> have a good week. "the exchange" starts now. thank you, scott hi, everybody, here's what's ahead. markets sharply reversing lower and giving up today's gains. this on reports that the white house is discussing to limit or block u.s. investment flows into china we'll talk about the massive impact this could have if the president advances it, ahead. alibaba is tanking on that news today is softbank losing its midas touch? we'll look at the implications it could hold for future ipos. and preventing a financial future we'll speak with a retired all pro who's helping rookies avoid making mistakes. dom chu is here with the drama.

>> the drama is red across the board. it didn't start off that way we had marginal gains to start the day. we looked like we could close out the week on a high note but those headlines drifting markets to the downside. the dow industrial is off almost a percent. the s&p 500 below the level. the nasdaq off by over 1%. a number of factors why that is important. one of them is this. take a look at the movement in some of the chinese internet-related stocks. one of the etfs that tracks that market is the crane share csi internet etf a lot of the big names there, all of them in this echltdtf you can see from when that announcement came out, this has lost about 5% just intraday reflecting some of that negative sentiment. another reasonposite is pacing ,

micron cited the china trade war. those shares off 10% the worst performing stock in the s&p. that's carrying over to lamb research the etf that tracks them off by 2% in today's session. a lot of red, china related, back over to you. let's get the very latest on all of these reports and head straight to the white house where we find eamon javers what can you tell us >> reporter: we saw those headlines crossing earlier today. my understanding is those reports are accurate my understanding is there's a deliberative process going on inside the white house to consider how or if to block u.s. investment in chinese companies. that could include blocking all u.s. investment in chinese companies. but, but, but this is very early, no decisions have been made there are a lot of options on the table, so it's not at all clear where this is going to end up that said, this issue of chinese companies and their reliability for american investors has been discussed in washington before take a look at this list of

co-sponsors in the senate of the equitable act which would delist chinese companies that don't live up to a full transparency standard marco rubio of florida has been talking about that over the past several months here's what he said. >> the fundamental question on this and on various topics when it regards china is how come their companies, their firms and in this case those companies that are publicly traded, why don't they have to meet the same standards as american companies have to meet or other companies have to meet >> reporter: so, kelly, the buzz word you hear here at the white house in this is investor protection the idea is protecting u.s. investors from investing in companies that they might not have a full understanding of sort of what's under the hood, kelly. >> it's fascinating because on the one hand that's a totally different issue on a totally different track from a trade dispute with china protecting investors because there's no chinese oversight on

these companies. if you lose money here in the u.s., there's virtually no resource that's something that's been an issue for a long time. are we to look at it together or separate from the trade talks, which kayla reported last night. we're looking at that october meeting and things are advancing along. in the lens of the trade talks, this would be a very aggressive stock, wouldn't it >> this is an additional pressure point and the white house is looking for pressure points to force the chinese to come to the table and agree to a deal this is a massive one. whether they do it or not, all that is still tbd. when you're engaged in high-stakes negotiations you're looking for all the leverage you could get. naturally you'd imagine they'd consider options like this up to and including all u.s. investment in these companies. >> it's hard to imagine like you said that these have nothing to do with one another. eamon, thanks very much. eamon javers at the white house

there. if the white house decides to take drastic measures like these, what would it mean for our markets, for the economy and for china? let's bring in the chief economist and cnbc contributor joining us on the phone is patrick, chief strategist at silver crest asset management. welcome to all of you. patrick, i'd like to begin by asking you how seriously you take these reports and the possible options, which would include delisting chinese companies or preventing u.s. government pension funds from investing in china >> there are two issues here one is the delisting of chinese companies listed in the u.s. that is an issue that's been a long-standing dispute between the u.s. and china over oversight of audits of these companies. and chinese companies are technically out of compliance. the u.s. could wake up tomorrow

and say you can't be listed in the united states because you don't meet the requirements. the u.s. has not done that because of the collateral impact that that would have on a lot of investors, but it's a very real risk that investors have kind of ignored for a long time. the second issue is this idea that there would be some kind of restriction on portfolio investment in china. that's a broader and also more vague issue. the problem that that raises is that a lot of chinese stocks and bonds are now on -- are part of a number of international indices that investors use to benchmark. to so if they're not able to allocate to that, that puts them at risk. they're not a large part of those benchmarks but they are a part of those benchmarks so that's the immediate question that this issue would raise in any investor's mind. >> nick, it's interesting because we're talking about a relatively small piece of the

overall u.s. dollar flows into china. a lot of it comes from u.s. companies, even for the chinese listed companies, there's 156 of them on u.s. exchanges with about a trillion point 2 dollars of market cap. that's not nothing but there's other ways if the u.s. wanted to to say to corporate america, we're not going to let your investment dollars flow to china either how big a step would this be as far as you're concerned? >> i think it would be a big concern. as we've gone to global growth, it's going to put a tremendous strain on a lot of the indices that we see on a global basis. >> the msci, others that include chinese stocks joe, what is sort of -- how do you think through the economic impact as we discuss what possibilities may be on the table? >> those looking for a short-term trade deal obviously would be disappointed with this news i've thought all along there won't be a deal of any sort

until the fed has moved rates significantly down, and they're still on my mind going to reduce rates. therefore, any type of deal won't occuruntil next spring, let's say, in which case what we're seeing now is the pressure points that you allude to making it perhaps more willing for the chinese eventually to come to the table. there won't be a deal until the fed moves lower. >> they're going pursue that first. >> if you get a deal now, the fed may not move because the fed has been pretty clear they think the trade deal is a big risk to the economy and will continue to cut if that remains the case so a deal would obviate the need to cut further >> patrick, let me bring you back in here how do you expect the chinese might respond to this? it's hard to deny that their companies have -- lack the oversight that you're talking about when it comes to their presence in the u.s. market. we're seeing a lot of names like

alibaba sell off pretty hard here. >> yeah. obviously it puts pressure on them because it would harm chinese companies, but it also comes with a lot of potential collateral damage to u.s. investors if it's not -- if it's done in a very abrupt way. so that's -- all along there's sort of been an attempt to come to terms between the u.s. and china on this without some sort of really destabilizing event like mass delisting. >> nick, this news obviously has hijacked our broader discussion about the markets here, but as we just look to close out the quarter with a little uncertainty as well, is there anything to change what you're advising clients >> i think it's important to have a real defensive posture right now. as long as the market is climbing, a wall of worry will be okay. but when it becomes a wall of fear, it's a different situation and all bets are off

as we've seen how rapidly the news changes the overall environment. making sure the allocations are in line, you're not out of balance as far as howyou're positioned so you're not over the tips of your skis, so to speak. >> we'll leave it there. glad to have you all with us today. the chinese internet names including alibaba but tencent and many others are falling on the back of this news. the semi conductors are also getting hit. micron already warned last night the trade war had cut its sales to huawei. micron down as much as 10% on the back of that there's alibaba down about 5%. t tencent down about 2.5%. baidu down nearly 4% as the white house reportedly is considering delisting chinese companies from u.s. exchangeses as it looks to limit u.s. investment dollars into china. joining me for more is tech

strategist and managing director at wolf search great to have you here today, steven first and foremost, what do you make of the impact this news could have >> well, it's a little bit off the rails relative to the trade that we've been mostly focused on there could be some collateral damage here. i think you have to step back and look at the bigger picture the white house has clearly taken a hard line with china as a tech analyst, i have to support that because we've seen china take intellectual property over the years, put a number of u.s. companies out of business there is a long-term battle going on the chinese trying to create their own business we're holding back semi conductors so i think this is part of a bigger picture in a long-term battle that's likely to continue for some time. >> alibaba and tencent are a couple of favorite names but what is the impact for investors? do they have to consider limiting their exposure to those names? should they think about not

playing along with the trade war? >> if this continues i'd be a little bit surprised but it's a real issue you know, the chinese names are particularly prominent in the internet space so that may be a place that over time we have to pull back from there may be other names to play. >> we'll just have to see how it plays out with what the white house plans to do. but those names that i mentioned are squarely in what you guys look to as the goldilocks area for investment we've seen a lot of ipos have a pretty rough go and netflix is having a pretty bad year in the internet space, tell me what your favorite names are here today. >> we still think faang has some attractiveness the regulation may limit upside over time but what really gets the leading companies is disruptive technology and that's still a number of years away from what i can tell when you look at the new a.i. who's the leader

it's microsoft, google and so forth. so we think that those do have more upside. >> twitter i see shows up here as well. >> it does to be clear, as a strategist, i don't have stock recommendations and target prices but this is a screen that we ran looking at return on pital and revenue growth versus p.e. and these came out as being more attractive. >> you mentioned faang as well and microsoft, but mastercard, adobe, some of these have been momentum-driven names where people might be concerned about the valuations at this point but you say it still looks attractive to you? >> my colleague has a buy on mastercard when you look at things come into the financial space, they haven't disrupted it so so far they're playing with the way we've been doing credit cards and that plays to visa and mastercard's strength. the p.e.s in the 20 to 30 range seem to be the most attractive, which sounds a bit on the high

side you can get into value traps in technology these are the more sustainable names. we are underweight semi conductors you're seeing with micron some of that beginning to play out where people have basically been discounting the improvement next year and those stocks over the last three to four months have separated from the rest of technology we think they have gotten ahead of themselves. >> but it's not a bad sign for the rest of the economy or the space? >> the economy is slowing. when you see p.e.s and earnings begin to collapse it's a concern not only for technology, it's one of the reasons we're only market weight in technology. so software has pulled back >> steve, great stuff, really appreciate it. steve joining me from wolf research appreciate it. >> thanks. coming up, some of softbank's ipo bets are not playing out as planned what does that mean for softbank going forward and for ipos

we'll talk about that. plus more and more ceos are leaving. a look at what's behind the mass exodus. and a former nfl player is teaching players how to manage their money. patrick kerney joins us live, ahead. announcer: this is "the exchange" on cnbc. corner of your growing business. from managing inventory... to detecting and preventing threats... to scaling up your production. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. great riches will find you when liberty mutual customizes your car insurance, so you only pay for what you need.

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welcome back softbank's spending spree across silicon valley is coming home to roost. they took big stakes in wework, uber and slack wework just postponed its public listing altogether what happens if softbank takes its foot off the gas when it comes to investing big-time cash we bring in peter eavis and deirdre bosa peter, there's some wonderful details in this story today. if people are turning sour and the investment dollars nor longer flowing, what happens >> it's already happening perhaps at wework. you're seeing a retrenchment there, and softbank may have to put in more money. we don't know if they'll put in near as much as the company was hoping to race in the ipo and through its step financing that's going to have immediate impacts on the commercial real estate here in new york.

we workbiggest private tenant in the city so almost immediately you'll see that happen >> and there's going to be fallout as they pare back. when it comes to their success, people still talk about alibaba. he built a $20 million position into a $120 billion stake right now. you look at the track record with a lot of the companies lately and it's hard to come up with other real successes. you talk about flip cart but that's not moving the needle. >> right but you know as well as i do, kelly, you can have somebody who makes an amazing trade once that makes them, you know, a billionaire many times over and then everybody expects the next thing to be as good. >> yes. >> and we saw that after the financial crisis. >> exactly >> and so this in a sense is a little like that what's different here, though, is mr. son has an even bigger dream. he's trying to change the world

with his investing and that sets him apart from somebody else who did a good trade once and everybody is hanging on their every other trade. >> it also gives him a long leash. he talks about having a 300-year vision. >> he talks about having a 300-year vision. he's been around for a long time remember masa made a lot of bad bets during the dotcom boom that didn't work out. all he needed was alibaba to give him this amazing track record and presence as an investor that could happen again. he could choose one of these companies here that could be the next alibaba he is known for making investments on gut instinct. with adam newman at wework, it was a 28-minute car ride where they shook hands andthat's where that all started so i think masa works on instinct but the story is far from over. it does not look good where he's

trying to raise another $100 billion for a second vision fund. >> no company is going to turn away money, especially if it postpones making difficult changes to corporate governance. of course they're going to take it, right? i don't really blame the companies, but you have to wonder if wework has done more harm than good for the ipo culture. >> that's the big paradox hanging over this whole -- over softbank and its investments everybody who claims to be an expert in entrepreneurship and startups and peep in silicon valley itself are saying this is terrible for the ecosystem it is turning good ideas into ideas that can't work. and yet of course you're going to take the money. so i don't know how this plays out. you're right, everyone will take softbank's dollars if they can get it but it could undermine the company in the process because what it tends to do is spur these very rapid expansions before you've really worked at how to build a business.

>> the last syllable to you. >> i'm not sure every company would take money from softbank i think there are some that are well capitalized and don't want to give up that much ownership and don't want softbank meddling around. >> it's like if you have rich parents. the kids sometimes, you know what i'm saying. guys, thank you both appreciate it very, very most. peter eavis and deirdre bosa. ahead, could apple be coming to a theater near you? plus tackling finance. a former nfl star is trying to help rookies better manage their money through a financial boot camp we'll speak with him about that and how the season is playing out, next. it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives,

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p-tech students around the world. it's a game changer. welcome back to "the exchange." we saw markets move to session lows we're down 80 but the nasdaq again underperforming with a more than 1% decline let's check in with bob pisani tracking this for us at the new york stock exchange. bob. >> we were having a nice, quiet closing friday session near the end of the month and here we are all of a sudden right in the middle of the day, there's that big decline there. on reports, nothing confirmed here, that the white house was considering limiting investments in china stocks that are listed down here that are chinese stocks of course, some of the big names like baidu and alibaba, immediate lly plunged rather noticeably some other names also dropped.

there's a lot of debate about whether the white house can call up the nyse and nasdaq and tell them to delist the stock it's not clear that they can do that that's being debated right now as for the month, kelly, we were all concerned there would be a horrible situation where we would drop it hasn't really happened. we're off the highs but still up 2% for the month why are we up? thank bank stocks for that the market turned around when we saw interest rates finally starting to lift there's your 10-year treasury right there. bank stocks lifted with it and that's why the market lifted overall. bank stocks are what we call value stocks right now that's why that value trade happens. thank that nice rise in the financials for why we're up. kelly, back to you. >> bob, thanks very much. now let's get to sue herera for a cnbc news update. >> hello, everyone here's what's happening at this hour secretary of state mike pompeo sitting with u.n. ambassador

kelly kraft as he prepares to meet with russian foreign minister sergey lavrov he declined to answer reporters' questions about rudy giuliani's efforts with the state department on ukraine. hillary clinton criticizing president trump for putting his own personal and political interests ahead of the american people she made her comments while attending an awards ceremony at georgetown university honoring working women. >> he has turned american diplomacy into a cheap extortion racket he has denigrated, and let's be honest, stabbed in the back the career foreign service officers who serve bravely and selflessly no matter the politics of the administration that they are working under. and keeping a positive attitude could help you stay healthy and even live longer that is according to a new study from mt. sinai hospital in new york it tracked 230,000 people for about 14 years and found that

optimism was associated with a lower risk of heart attack, stroke and early death another reason to keep a smile on your face. >> sounds great to me, sue. >> i know, it does you're always happy. people don't know but we sit right next to each other she's always happy. >> sue is the one with the best attitude. >> thanks, kel. >> thanks very much. here's what else is coming up on "the exchange. ahead, peloton's rough ride continues. another warning for the vaping industry. apple wants to own the big screen. d anif sitting next to a baby on a flight is your worst nightmare, one airline has a slougs -- solution. om natio because national lets me lose the wait at the counter... ...and choose any car in the aisle. and i don't wait when i return, thanks to drop & go. at national, i can lose the wait...and keep it off.

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welcome back let's catch you up on a few stories that should be on your radar today. it is time for rapid fire. here are the headlines are dominic chu, meg terrell and robert frank it's the week of the busted ipo. peloton continuing to drop it's the second worst unicorn ipo this year. down about 4% right now. this of course after wework had

to postpone its ipo and endeavor pulled its as well last night saying it would continue to evaluate the timing as market conditions develop. >> you can probably go all the way back to lyft and uber to talk about the ipos that have been so highly anticipated that when they come to market, there was almost a sense of underwhelming that they kind of go public. the wework fiasco, and i say that not in an editorial sense, but the ceo has to step down, there's questions about the valuation, and all of those things are giving investors such pause that even underwriting banks are having a hard time pitching to that their clients they're saying we don't know what to do with this. >> it's business model we talked about endeavor yesterday. full disclosure, i'm a client. so i understand the talent piece of the business, but the entertainment business >> that's what they're trying to pitch more of. >> so the economics of that and putting all of those different business lines together feels like the market is very

unreceptive to business models and doesn't see a path of profitability. >> they need to understand it's actually a business, an existing one. >> there was a broad whether it's a myth or conventional wisdom that the private market was the smart money and retail was the dumb money maybe it's not reversed but just the private market underestimated how smart the public market would be particularly at this stage and the memory of the last crisis is still fresh and they're skeptical of models that like endeavor don't make much business sense on the face of it or just continue to generate losses in a very strong economy. if you can't make money now, when are you going to make money? >> it does seem like it might be a broader theme going on in the market i look at biotech and you think about risky assets biotech is down 5% this week when you think about risky investments that you're making, people are not really interested in that. >> it's not just the ipos, but

the worst performing ipos have largely been biotech ipos. we're seeing upwards of eight or ten names -- >> talk about companies that don't have profitability for a while, hello, biotech. >> you think they're sitting on some blockbuster drug. next up, the cdc is providing an update on the vaping-related lung injuries more than 800 cases now across 46 states and one u.s.y. meg, we're learning more about what's some of the ingredients, i don't know how to describe them, in these products, what they might be. >> there was a hope we might learn what the common ingredient is and the headline from the cdc call is they still don't know. what it does look like is the majority of people who have fallen ill have vaped thc products, although some reported exclusively using nicotine so you can't point your finger there. there was national data looking

at that and also an investigation from wisconsin and illinois which reported out today which said still, there were tons of brands being used and most of them in terms of thc were obtained from a dealer at school, from friends or family e and associated more than others about two-thirds of people used a brand called dank vapes, which i never thought would be words i would say. so they're trying to figure out what's going on. >> but the elephant in the room is juul. >> juul didn't come up per se and juul is not made for vaping cannabis and thc they are talking more about these thc cartridges, which are not supposed to be used with juul some people talk about configuring devices to be used. >> got it. it'soo bad they can't pinpoint it because we had a guest on the other day who developed vitamin e testing sort of kit. it's not clear that that's an issue. >> vitamin e was one of those things they were saying could be

in heavy doses. >> pesticides as well. fungicide. >> nbc news did their own investigation into that and it's f fascinating to read the article about the illicit cannabis things they tested some of them when vaping can become like cyanide. >> a lot of black market stuff, would regulation of the legit stuff do any good. >> now that the genie is out of the bottle on vaping, it's going to be hard to prevent people from accessing these products somehow. >> so cdc tells people you should not vape right now and particularly don't vape thc products folks who have switched from combustible cigarettes are using it this could cause some people to go back to regular cigarettes. >> it's like there's no good outcome here, no matter how you

look at it. moving right along, let's talk some apple. they plan to release feature-length films in theaters before making them available on the streaming service. the strategy is more what amazon has done giving movies that three-month window before going online as opposed to the netflix model. it would be in stark contrast on netflix which does push to release them in theaters and online simultaneously. apple obviously chasing some awards >> they're doing this with sophia coppela bill murray. >> they know their audience. >> the best way to become a millionaire is to become a billionaire and then invest in hollywood. >> rich people humor. >> exactly the idea that this is in some way not their future, because obviously apple has a lot of different possibilities, but the idea that this is going to be part of their future is to make movies, i just -- you know, as an allocation of capital as

where that company could be headed, it's just a little disappointing this is where they're going to put money there have been companies for so long doing this for ages trying to find hits, trying to make money. clearly it's a part of sort of getting the hardware platform to grow faster as opposed to just on its own, but it's tough. >> one thing they all seem to want is attention from awards to help drive attention to their offerings generally speaking is that even worth it? no one watched the emmys when it was just on. >> there's a reason why apple shares have stalled out and it's to this allocation point this is a company with a quarter trillion dollars in cash lying around the world whether or not you can actually do something with that now, the counterpoint to robert is the amount of money, however many millions they're throwing at this, is a tiny, tiny drop in the bucket for the resources apple has at its disposal.

they cannot move the needle in any way, shape or form this is not a moon shot but a way for them to say, hey, if we can hypergrow this, kind of like amazon hypergrew cloud services -- >> remember when sony dominated hardware with the walkman and they started to get in movie production, and that was it. >> it was over for the company okay, they all better tread carefully. with apple you can say they can afford to lose the money good luck to them. finally, my favorite story of the day, if you're tired of flying next to crying babies on a long flight, one airline can help you avoid that. japan airlines is introducing a baby seat map. i love this. it lets you know where young kids will be sitting on your flight with a little seat icon in the articles about this, people were outraged why should i be shamed about my kid. what you should know where the babies go and then you can choose whether to sit next to a kid or not. >> we're all parents here and

all of our children are small or have been very small at one point. i remember the rant that andrew ross sorkin went on with regard to flying in a certain class of airplane and having to sit next to kids. as the father of a sometimes crying 2-year-old now on a plane -- >> do you take them in business? >> listen -- >> this isn't about first class versus business. i think it's a brilliant idea to give people the information, meg, and let them say, okay, if you want a seat next to -- >> nobody is going to choose a seat next to a baby. >> what it's cheaper? >> even better with yowhen you fly with your kids why stop with babies how about an overtalker icon and smelly food icon. >> there are a couple of other airlines pursuing strategies where airasia introduced a quiet zone, eight rose proting kids under 10. an indigo has a quiet zone for

kids under 12. great. there's a real service to let people sit where they want to sit. >> how about a zone where you can't recline your seat. there are a lot of things that annoy people on planes this does stigmatize parents traveling with kids. if your family lives in california like mine does and i feel bad enough. >> wouldn't you want to know going into it that you have a kid -- >> it's just whoever ended up with that seat at the end of the day, planes are crowded enough i don't think this solves a problem. >> i think they should push all the kids and parents into the back of the plane. >> you go to the restaurant with a kid, okay, we're going to the kid section and you ending up way in the back corner. >> last night we took my dad out to dinner and wound up next to a table with young really loud kids let's quarantine everybody any case, on that really

conscientious note, thank you all very much. dom chu, meg terrell and robert frank. don't sit next to any of them on the plane. coming up, he used to tackle his opponents on the football field and now is helping players tackle their finances. patrick kerney is here in studio we'll see if he flies next to the young -- >> and he's huge. israegooeds some ext l rm. th story is next read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪ a new kind of credit card. created by apple, not a bank. with a better way to track where you spend.

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welcome back hard to believe we're almost a quarter of a way through the 100th nfl season already a lot of rookies, including daniel jones, making a big impact on the field. but off the field former pro bowl defensive end patrick kerney is trying to help jones and other rookies tackle finance. just last week kerney held a money boot camp. he joins us now. it's great to see you. you're doing this for free what is the main thing you're trying to teach these guys

>> really i want them to recognize early in their careers how to leverage this opportunity into what it really should be. historically for our fraternity and for them moving forward. >> i've read the stats 15% of nfl players go broke within a couple of years after leaving the league what is the main thing you have to convey to them to change that outcome? >> i think that they have to empower themselves through education. going and finding an advisor because he advisers a former college teammate or the superstar on their team that is not enough criteria for the biggest decision of their lives. >> how would any 23-year-old know how to pick a financial advisor? >> it comes with understanding what you do on your own. i often advise guys to read a couple books one being "the common sense of investing. you know, you learn what the tide sort of does from an ebb and flow standpoint and what can be done. at that point find an advisor

and are you competitive with this historically for more than a yoear or not >> do you have a success story that comes to mind in working with these guys? >> probably the best ones have been emails from these presentations four or five years later where a guy will say, look, i read the books you told me to read they have changed my life. my family is better off for it. >> do you think the nfl is changing or is it early days to kind of trust in the future these guys will be better about investing the money, being smart about the people who surround them because we do have a lot of people who are working on these initiatives. i just wonder if it's bearing fruit yet. >> it's tough because you're dealing with a group that is young and full of testosterone and pride. they always want to peacock i guess is the term in terms of dressing nice -- >> and the watch. >> the $6.4 million watch. or the opportunity cost of those dollars spent early. there's definitely more

attention being paid to it examples of how not to i'm certainly more about the how to. >> i know warren buffett is someone you got very interested when you left the league every time i turned the game on last night, someone was down on the field and taken off on stretchers it's really getting hard for me to watch is the nfl facing an existential problem here >> i think so long as it continues to reward people for that risk and the way it has, i don't think the pipeline will dry up any time soon the demographics of people getting funneled into that pipeline could easily change, but it's a great opportunity i had 11 surgeries in 11 years and still say i'd do it all over again if i could. >> 11 surgeries in 11 years. so you think college athletes should be paid as california is proposing? >> yeah, i've heard about that i think they should be paid in a deferred compensation package. sort of contributing to a 401(k) for them get them to understand the time value of money.

>> you're telling me a guy is going to stanford because they're going contributing to his 401(k) >> if it's a uniform payment to all athletes i think it would be valuable and a great introduction into getting them interested in how that money will work for them over the long term. >> excellent point patri patrick, thanks for joining us we're glad for the work you're doing. patrick kerney is a former defensive ending and founder of kerney insurance agency. you can go to cnbc.com/investinyou nbc universal and comcast are investors in a corns. we had three big ceo departures this week we'll talk about what's behind that, next thanks to you, we will. aw, stop. this is why voya helps reach today's goals... ...all while helping you to and through retirement. um, you guys are just going for a week, right? yeah! that's right. can you help with these? oh... um, we're more of the plan,

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welcome back in check out marks the dow lost a 121 point gain today it's down 110 points we're pretty close to session lows that's a decline for the dow the s&p is down almost twice that the nasdaq is down 100 points for its part the stock is on its worst week of trading for 2018. we remember how poor a month that was when it dropped 13.2%

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. welcome back wells fargo announcing its finally hired a ceo after a six month long search. charles scharf will lever his position on october 21st he joins a growing list of ceo's leaving the company. last month saw the highest number leaving on records. what is driving this joining me is the ceo and founder of the network let me ask you, you have tallied this up. how ma ceo exits are we talking about and what's behind it >> we saw 159 ceo exits in august that's the highest number we have recorded. over the first eight months of the year we recorded 1,009 ceo

departures the highest eight-month total we have seen. it's a time where it's difficult to be a ceo. there's a lot of departures coming very quickly. there's a lot of different reasons behind that. certainly that is -- >> i'll ask you about that real quickly first, how long have you been keeping track of these? >> we've been tracking this since 2002 that includes 2008 data. the recession years is the second highest time we have seen this many exits and now is the highest time >> wow we have surpassed that one more thing that i cut you off you're about to explain why this is happening. sounds like what we're seeing at wells. some poaching going on >> yeah there's certainly part of that. it's a tight labor market. companies are looking for great talented people to lead their organizations especially where there's a lot of predictions

global growth slowdown and companies need new leaders need new plans to move forward and that type of environment we have been seeing them making moves. >> tom, what is your perspective on this sharply higher number of ceo exits this year? >> you have to remember just the when o ceo, if you take one from one company and he or she goes to a new one it opens up another one. the question is are you beginning to pro mote from within or bring a fresh set of eyes what's going on is coincidesing with this and i don't think it's by accident. it's called accountability more companies are demanding results. more of these opens are due to termination that we have seen in years aft the ceo level. this isn't counting small and mid capsize companies versus the largest wuls, the juuls, the ebays where we have recognizable changes in ceo and now the wells fargo one.

i think we're seeing this that we want results as shareholers and the board of directors are being held accountable to make the changes. >> you're saying because it's we're kind of late sicycle. we had this play out for a number of years now. maybe it's moderated or people are looking for okay give me the vision, give me the strategy what's going to drive pmps from here >> most definitely we're looking at a board of directors that are saying are we going to be reactionary when there's a recession and it gets soft and make the change are we going to do this in advance and start to get things going before there happens to be dip and we hit the next cycle. it's very telling that people are saying we're not thinking we're in the late innings, we are in the late innings. >> can you tell us about what industries we're seeing this be at a high level? >> we saw a lot of these departures come out of the

technology sector. some of those headline ones, ebay, wework and some ways in that sector. we have seen a lot of departures coming out of health care and hospital companies where there's been a lot of merger and acquisition companies. that leads to lots of changes. >> do you think it's deal making in mergers will continue to drive this going forward >> we're in a ten-year bull market it continues to be consolidation and growth we're seeing it's a time when new companies have been able to come in and develop technology, compete against large legacy organizations like an automotive where we are seeing autonomous driving that's forcing the largest companies to think about their sea suite and make changes. >> thank you both for explaining

what's behind it appreciate it. that does it for the exchange. i will go join melissa in a moment for power lunch that begins now this is what new at 2:00 we begin with the markets taking a big dip as the trump administration considers pretty radical tactics in dealing with china. the dow is down. it's been a september to a we ao enter fall of worry. 2019 was supposed to be the years of the ipo but it's turning into the year of the ip oh no. peleton is down again. that's not including the wework mess power lunch starts right now welcome to power lunch stocks seem to be stabilizing after the white house considers limits on u.s. portfolio flows into chi b