this is intuitive surgical edward life sciences good etf. >> all right you see there's the medical devices having a very big day. to your point, cramer was talking about this earlier today. dow right now. got our eye on facebook in d.c. as well. zuckerberg still there "the exchange" starts now. thank you, scott hi, everybody. here's what's ahead of us. from libra to china to the elections and privacy. facebook ceo mark zuckerberg is facing tough questions from regulators right now is he fighting a battle he can't win? and is the stock now stuck in purgatory? we'll debate that. plus, boeing's bounce back why are they so bullish today and should they be we'll dig into that. plus, an exclusive interview with chipotle ceo brian nickel we're going to talk about the stock's meteoric rise. but we do begin with the market

today and dom chu is watching that for us. >> the gains right now are somewhat muted but they have been all day very much in the green. you can see dow industrial is up just about 12 points at the highest, we are maybe about 108 pointswe'rkind of hov lows still, though, some modest gains. s and p hovering just below nasdaq earnings reports dominate the headlines today. let's take a look at two here first of all to start. shares of snap up 91% over the course of the last year. but down today and then boeing shar shares off 3% as well. both earnings reports sending those stocks moving. and then another one to watch here, as well. what's going on with names elsewhere in the earnings mix. talk about texas instruments and norfolk southern as well those shares moving as well because of earnings reports. do they signal anything different about the earnings environment? we'll take a look at those obviously throughout the course of the day i'll send this back over to you.

>> thank you, sir. and welcome to "the exchange." i'm kelly evans. let's dig into the continued battle over where boeing goes next a chart pretty much sums up the story today from a 3% drop to nearly 5% rally to now just about a 1% gain after the company's earnings this morning. while almost every metric missed estimates, boeing says it still anticipates the 737 max will return to service next quarter joining me now are david gellis with "the new york times" and phil lebeau. welcome to both of you the earnings were missed by a mile, as you have been reporting on are investors simply taking them at their word that this plane is getting back in the skies? >> well, i don't thinkthey're taking them at their word. i think there are enough indications out there that what boeing believes will happen by the end of this year, which is certification by the faa there is a decent chance of that happening. and if it doesn't happen by the end of this year, a lot of investors are saying, look, it's likely going to happen shortly after the new year which means, a, they can ramp up

production on the 737 max and all of those maxes that are parked that have been built but not yet delivered that they can start to clear those out and so they're looking down the road at late in 2020 when this company will see real juice in cash flow as they ramp up those deliveries. >> david, i appreciate your thoughts here. as long as the return to service is this quarter, boeing you can see they're past recovery but if not, then what i mean, we've seen this timeline slip so many times before. >> they're cutting it real close, kelly last quarter, they made a really dramatic announcement just before earnings where they said if they weren't able to get this plane recertified by the end of this quarter, they might have to shut down the max production line now, we're right in the window where they're still on the right side of that equation. but if even one more delay happens, we could be on the wrong side of it and that would have drastic economic consequences. that would impact suppliers. it might further impact gdp.

it would have real consequences for boeing's work force, as well so we're right at the edge there and i think everyone's watching very closely to see if there are any more delays. >> you're right about the macro impact which we haven't really talked about yet because it does show up. industrial production and a whole host of other readings as well what about this turnover the head of commercial aviation leaving. why now? why do it as you guys first reported before the earnings, before the ceo was set to appear on capitol hill? why not wait until after those events >> last week, we reported that kevin the head of boeing commercial airplanes was under intense scrutiny inside the company not only for his handling of the max crisis but also for some of his relationships with customers the board, i think, finally needed to have an answer when people asked, is boeing doing anything to hold senior management accountable kevin obviously left replaced by stan deel who is a well respected head of boeing services and now dennis mullenberg the

ceo has an answer when he testified in front of congress next week as to what, if anything, boeing is actually doing. he has something to point to. >> phil, you agree with that >> i do. i do we increasingly heard people saying who is being held accountable here because prior to kevin mcallister being relieved and being shown the door, nobody had been fired nobody had been put out there as, look, these guys were in charge of this and they messed up and they have to go so this does give dennis mullenberg something he can point to on capitol hill but beyond that, it also is a chance for the board to say we are holding people accountable for what went wrong. >> yeah. and we'll see if that is effective in terms of what congress is looking for. but also obviously for the stock today maybe trying to hang on to these levels thank you both appreciate it. phil lebeau and david gellis from boeing to chipotle now. up more than 80% but shares are

down about 4 1/2% today despite their big earnings beat. company actually posted an 11% rise in same store sales but chipotle is facing increased cost around delivery and the company is pushing back some store openings kate rogers joins me now along with the company ceo brian nickel and, kate, it looks like this store openings in focus maybe for the slide today. >> chipotle said some of its openings may shift into early 2020 because it's seeing success with his chipotlanes so those tend to have a little longer construction time so that's the reason for some of them shifting into 2020. but of course, we want to get right over to brian. brian, thank you so much for joining us. >> yeah. thanks for having me good morning. >> so you've had seven straight quarters of comp acceleration. i'm curious to know in your opinion what's been the single biggest driver of growth during this turnaround? >> well, i am really proud of

our leaders and the results that we've been able to achieve you know, we set out with i think really straight forward strategies around making the brand more visible on our point of difference, which is our approach to food and the culinary commitment that we have we said we wanted to become a much more digital business we said we wanted to become a more reliable, consistent, fast operation. and then obviously, we said we wanted to build a great culture with great leaders and all of those things are occurring. and then because we now have i think the right leaders with the right culture, we've also been able to use this stagegate process to start bringing forward some innovation. and most recently, we just had a new product on the menu where we demonstrated the organization now has that muscle as well. so really proud of the team. really proud of the results. you know, 11% comp with 7.5% transactions it was -- it was a terrific quarter. we're really excited about what we've accomplished but i am just energized about what we're going

to do going forward. >> and you mentioned sales increased by 88% now, more than 18% of sales. i'm curious if you think there is actually a ceiling for digital here and what will continue to drive that growth moving ahead. >> yeah. so the digital business has been just a tremendous story. you know, we heard early on that our consumers and customers wanted more access to the -- to this business, to our food and the way they wanted that access was through digital access and so we've done that i believe there's still a lot of room for growth in this space. you know, we just launched a rewards program. we're really in the early days of our app business and our web business and as we talked about on the call, we're seeing now great success with our lanes which is just giving people another access point through digital access you order ahead and literally you can just drive up and grab your food and go it's the fastest way to get great culinary food i think in the restaurant industry. >> i don't know if this is on your radar yet but there's now

some cities and towns pushing back against drive throughs saying they cause obesity and they continue to climate change. i don't know if that's something -- look, obviously, you guys would be least affected by this compared with the fast food giants out there. but is that something that's on your radar at all? >> look. what we've really focused on is as a business, we want to be doing the right things for, you know, the planet, the community. we -- we have a purpose around cultivating a better world so a lot of those things are front and center to us all the time really, what the lane is is just meeting the consumer's need of asking how can i get chipotle's food without getting out of my car? because i was like, look, it's already really fast. when you order ahead, you park, you run into the restaurant, grab the food off the shelf and go i was like that's really fast. as i've learned, it's even faster if you don't have to get out of your car. >> i'm bullish on the drive through. i'm just wondering if there is going to be more push back but i want to ask you something kind of related to that. it's never been easier for

people to order food to them they don't even have to get in the car and pick it up delivery is a huge thing i had my chipotle delivered on monday. >> oh, good. >> what are the fees like? what is the cost like associated with this? because we know the lot of restaurants are losing money on this business. >> yeah. you know, this is where i think chipotle's uniquely positioned we have a second makeline, which we call our digital makeline so we are able to provide basically the culinary experience for all of our off-premise business whether it's delivery or order ahead and pickup and the good news is that is an even more efficient way for us to run our business. it requires less labor than our front in store line. so we start from a much higher place when we arlfilling a off-premise order, whether it's for delivery or order ahead. so for us, the economics have been, you know, continue to be and have been really good. and the delivery occasion is continuing to prove to be very incremental. so we're not struggling with the economics with it. obviously, it's a fluid thing as

we work with doordash and other companies in doing the delivery business but today, we're very pleased with where the economics are and we're very optimistic about where this can go going forward. >> so brian, the labor market is very tight turnover is typically very high within the restaurant industry how are the things that you've put in place like these second make lines and the chipotlanes allowing the company to be more efficient when it comes to labor? >> well, two things. one, we want to provide an employee value proposition where we attract the best to work at chipotle and then stay with us so that's why we did this program around debt-free degrees. that was just a new addition because we want the employee to understand that we care about them beyond just what they do for chipotle but we want them to grow personally. and that's a big piece of the puzzle then obviously the other thing we're doing on the business is we want to be efficient in every way possible so that's all the way through the supply chain to how we ultimately make people their great burrito or great bowl.

as i mentioned, the digital make line, the orders come in ahead we queue it up then we're able to use fewer people to make those burritos and bowls. and it completely doesn't interfere with the front line where people that are coming into the restaurant get a great experience and we can move them through quickly as well. >> you talked about the stage gate process for testing out new items. obviously, saw a lot of success with carne asada it was mentioned last night you might run out. people have really been responding to it well. how much are you taking into account what customers are asking for versus what's possible in stores i know breakfast is something that dcomes up all the time. but what can customers expect coming down the line from chipotle >> i'm glad you asked about this you know, our stage gate process is one where we want to make sure we've got the right culinary execution in the restaurant it gives the customer the right experience in the restaurant and then obviously we want to make sure it makes sense financially. and so carne asada is a great

example. it's worked wonderfully. we've executed really well and the response from our customers has been tremendous and we're in the midst of still trying to figure out if we can get more supply to make it go longer as of right now, you know, it's always been planned as a seasonal item. but if we can make the season of carne asada go longer, we're going to do everything we can in the supply chain to do that. but we want to stay committed to our food with integrity principles so the only way we can extend this is if we can get access to the right type of steak that meets our principles and continues to deliver on the premium experience that people are loving so that's what we're balancing. >> real quickly before we go, can you tell us anything macro that you see with the consumer are they trading down? are they trading up? just a quick pulse check. >> yeah. you know, we're seeing is the consumer continues to be very strong you know, you mention the labor market's tight wages are up and what we see in our business

and when we talk to consumers is, look, they want to be associated with companies that have a purpose they want to be associated with companies that are consistent with their values. and, you know, chipotle is nicely positioned for that and we continue to see a really healthy customer and a really healthy consumer going forward. >> all right 11% comps kind of speak for themselves brian, thanks very much. >> thank you. >> brian niccols ceo of chipotle. kate rogers on that story for us brian will be back with us next month with the summit in los angeles joined by the ceos of walmart, activision, blizzard, and more now, here's what else is coming up today on "the exchange. mark zuckerberg on the hill as the stock continues to suffer, is today's hearing moving the needing in the company's efforts to gain capitol hill's trust plus one oll smostees followed apple analysts say stock could rally another -- and what earnings are telling us about the shift from momentum to value. we're back in two.

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exchange." facebook ceo mark zuckerberg testifying before congress today. the hearing which is still ongoing addresses the proposed digital currency libra but lawmakers have essentially put facebook on trial.

zuckerberg's wide ranging testimony everything from the problem's plaguing his company to doing business in china take a listen. >> we want to do something that strengthens america's leadership but i just think that we can't sit here and assume that because america is today the leader that it will always get to be the leader if we don't innovate. there may be some people who don't want to use it because they -- they don't trust us or don't like us and that's one of the values of having an independent association where there will be other competitor wallets and other approaches, too. i probably ten years ago, would have been more optimistic that trying to work in china could have contributed to making a more open society. and today, it seems that in some cases, working in china not only does not do that but compromises american companies' ability to promote our values abroad and around the world. >> here to react and break down the testimony, chief technology correspondent at axios

welcome, guys. so ena, i found his china comments fascinating absolutely fascinating and facebook doesn't do business there so they can kind of just wash their hands of this one but more to the point of for investors who are watching the stock and hope ing it gets backt all-time highs, what do you think zuckerberg has accomplished today or do you view anything that happened as a setback? >> well, the china comment certainly is designed. i mean, this is the current boogie man if you're under fire for some practice or you want to do something controversial, the way to get it done is to say if we don't do it, china will. so it's not sprieurprising that' using that language. i don't think that alone is going to be enough and it clearly hasn't been so far. he's gotten quite the grilling and i think anything facebook does at this point should be subject to scrutiny, as it is. and certainly, adding such a powerful capability to facebook is worthy of scrutiny and i think they're getting scrutiny they're getting scrutiny not

just for libra but also for other practices. >> on libra, ena, explain to us what lawmakers are so concerned by i mean, this has been dominating the headlines. the pushback is going so far as to even send crypto currencies like bit coin down today mark zuckerberg clearly tried to say us and libra are not the same thing but what do you think facebook's original intentions were for this and where do they stand now? >> well, i think facebook wants broadly speaking another way to make money and libra is that it's a way to fund a bunch of different things that today don't make advertising money so if you have encrypted messaging and facebook said it wants to move that way, you're not going to make a lot of money selling ads in an encrypted messaging where you have no idea bh who is talking and what they're talking to you can open up peer to peer payments so i think they see that as a potential financial engine i think their concerns are many. some are facebook-specific what does it mean to give

facebook this additional power and some are just concerns about any sort of crypto currency that makes it harder to track where money's coming from, where it's going. now, proponents of not just libra but other things would say that facebook and crypto currencies are actually more transparent to things like money laundering because it's digital versus cash and other things. >> so, thnancy, on that note if facebook does press ahead with these plans, it's about opening up a new revenue stream, especially in the age of encrypted messaging. are they -- i mean, zuckerberg was asked what happens if the u.s. doesn't approve your participation here and he basically said, well, then they're going to do it without us. >> yeah. it's interesting he -- he mentioned again and again this idea that we're not going to move ahead without u.s. regulatory approval. it seems on its face sort of a blunt clear cut statement but it's really not. there are a ton of regulators who might have a bite at this different apple and the ways you go about getting approval, as one of the members in congress mentioned, you can look at some of the existing statute on this. point to this loophole

say this agency is not objected because of that loophole and, therefore, we have some sort of approval on this so i think he left himself a lot of room to go ahead with this. >> and this is all happening as almost all the state attorneys general are moving forward with plans to crack down on facebook. interestingly enough, california is still quiet on whether they're part of this probe or not. how is that potentially going to collide with other efforts to crack down on facebook here? >> it's interesting. i'm going to say something that i would love not to say. we don't know how this -- the probe that -- as you now mentioned, there is now 47 ags that are probing facebook. we don't know how that is going to turn out. and we actually don't know this idea of california not participating participati participating in that probe and we're not clear why yet. the possibility is california has its own probe. could pose as big a threat for facebook as these other 47 attorney generals. >> protect one of their own. but we know california too well.

probably thank you, both. really appreciate it shedding some light on to what's really going on on capitol hill today. nancy scola and ena. >> thanks, kelly. >> coming up wework rescue deal coming not a minute too soon. look at how close the company was reportedly to running out of money. plus, starbucks has dominated with its mobile payment app but no longer. we are going to look who is leap frogging the company tta to kehe top spot when "the exchange" comes back in two. rk. but when a recall happens, perfectly good food goes to waste. now, we've got away around that. looks good. we're on target. blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. it's used by some of the biggest retailers everywhere. a nice wedge. so more food ends up on your table, is that daddy's lettuce? yeah. and less food goes to waste. ♪ ♪

welcome back to "the exchange." here's some of the movers this hour take a look at shares of irobot, which are down more than 10% the company had earnings it beat on the top and bottom line but delivered a weaker than expected outlook for the holiday season that was in part due to u.s. tariffs on its vacuums and some trouble it's been having with pricing pressure eli lily, losing more than 2% today. the drug maker delivered a mixed quarter with revenue coming in below forecast and sales of the company's key diabetes drug were strong but analysts said that was in part due to steep discounts. and finally, check out shares ever smile direct, which are getting hit hard after last week new regulations in california. the stock seeing some buying today. it's up more than 6% and now, to sue herera for a cnbc news update hi, sue. >> hello, kelly. hello, everyone. defense secretary mark esper meeting with iraq's defense

minister in baghdad. the minister says u.s. troops will leave iraq in four weeks reversing esper's previous announcement that u.s. troops would be allowed to remain in iraq to fight isis police in southeastern england made a grim discovery. 39 people were found dead inside a large cargo truck believed to have come from belgium the truck was found by ambulance workers at water glade industrial park around 25 miles east of central london my melania trump was on capitol hill to mark the one-year anniversary. she attended a meeting to talk about the success of the act, which is aimed at addressing the nation's opioid epidemic and the body of the late congressman elijah cummings arriving at morgan state university in baltimore this morning. a public viewing will take place all day with a tribute celebration set for this evening. he will lie in state in the

national hall in the cap tomorrow you are up to date that's the news update this hour kelly u i'll send it back to you. >> thank you very much coming up, after a massive 22% pop yesterday, shares of biogen are coming back down to earth today. we'll talk about the moves there. was the street to bullish on its alzheimer's news we'll dig into that. plus, a look at what caterpillar's numbers might be llus about the global economy and why the stock isn't lower. that's all ahead on "the exchange." no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir. always three steps ahead. six steps ahead. sixteen. so many steps. you done? a million steps ahead. servicenow. works for you. or trips to mars. no commission.

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let's catch you up on a few stories that should be on your radar today. it is time for rapid fire. here with the headlines are contessa brewer, seema mody, and meg. meg, we're picking up on yesterday's big story. biogen move. one day after his stocks soared on that nuancemeannouncement thd seek experimental -- for its alzheimer's drug still, plenty of skeptics about all of this. here's what the ceo had to say. >> it was a thorough engagement and the evidence came over time. we collected tremendous and -- and complex set of data, including bio markers and

imaging. and the fda dedicated a lot of time to engage with us so that we come to the second meeting. as a ceo, i'm reasonably confident that this can lead to the market approval. >> so talk us through some of the -- i mean, the controversy is a little bit around -- you pointed out yesterday the analyst community not as excited as the investing community necessarily. they're like we don't know if this path of treatment, if we want to resurrecis and go down this route again. >> yeah. so there is a lot of skepticism around alzheimer's drugs just because they've been so difficult to develop and this approach toward removing these plaques in the brain has never worked people became more skeptical yesterday as more information came out biogen presented some slides gave some more information about the studies. and it just kind of confounded people it's a little confusing. one of the studies succeeded the other one didn't succeed so everyone's looking for more data at this alzheimer's meeting in december. he talked with a lot of investors who said we're not necessarily extremely bullish on

this but we can't not own this right now because if it does succeed, it will be huge for biogen but the next thing is going to be michelle there, the ceo of biogen saying he's reasonably sure this will potentially get fda approval well, will it get paid for by insurers if the data are not extremely strong that this drug really works, insurers are definitely going to push back and i've been talking with analysts who say biogen will likely price this wherever the market will bear he puts an upper limit on that of $50,000 a year. think about the millions of people who have alzheimer's disease. that's a huge bill. >> yeah. yeah that's a big number. it also appears that the -- in the trials, when they went back and looked -- kind of looked things over, they had just increased the amount that they had given people and that contributed to the efficacy going up. >> so basically, they said over time when they got more data, it had just been continuing with those trials between when they looked a

look at these two slices more patients had been on a higher dose of the drug in the later snap shot of the data and that's how they described why it looked better later than earlier. >> any trial lessons from eli lilly? initially, had promising data but ended up failing in 2016. >> some people are wondering if this is going to potentially resurrect old programs with this same approach targeting amaloid data in the brain. whether the drug actually targeted it in the right way or even got into the brain enough in even older programs, people said those people didn't even have build ups of plaque in the brain. so there is some question about whether a lot of these programs will get revived and people will over again spend billions and billions of dollars. >> because there is a lot of desperation where it comes to this. >> absolutely. and if it does -- i mean, obviously, if it does work, great. but the back and forthright now is fascinating again, about steady after yesterday's big gains. next, what looked like a really bad sign from a big earnings bell were caterpillar results

this morning stock initially fell almost 7% after missing on profits and sales. that's the trifecta. it's up 1% now texas instruments last night who also gave weak guidance. >> so a big resersle versal in s of caterpillar as analysts and investors took a second look, i think the idea was, well, we already knew that this slowdown was happening. if you take a look at the past three earnings reports from caterpillar, they have disappointed then the company and the earnings call, ceo, talked about how there is weakening demand from dealers for their big machinery goods and equipment that they specialize in. but it's not because they are dealing with financial distress. it's just because they're waiting to see where the global economy goes from here it's that uncertaintarnd the trajectory that is having them kind of sit tight. saying we're going to hold on to the inventory we have and see how things play out before making some of these big purchases. >> yeah. i also think it's interesting

when you say, look, we're expanding our offerings here we're going to focus on our digital platforms and see what could happen there to round out our coverage so that we're not so reliant on how much inventory the dealers are stocking that's also a piece of -- a glimmer of good news sort of a carrot to hold out in front. >> yeah. i think we're trying to see whether technology and the progress they're making there will actually impact their bottom line or help them with cost cutting initiatives, which is actually something honeywell has been trying to do as well, another player in the industrial space that actually came out with much better than expected earnings another thing i would point out -- >> that stock didn't move up much on it. >> yeah. one thing i'll point out on china is that continued pressure in china some of it has to do with pressures from local competitors in china just becoming much better at specializing in excavators of some of these other big machinery that typically caterpillar would win that business. and now, there is that growing competition on the ground in the country. so it's not so much the slowdown of the economy. >> who do you think is going to win in the long run?

ultimately, if the chinese say, given the choice, i'm going with caterpillar. i mean, come on. that's why it's interesting for these companies to try to strike while the iron's hot so to speak. even for caterpillar just about nine days away from the launch of apple's tv plus. morgan stanley is bullish enough to look for a 20% upside on this stock. katy is raising her price target on the tech giant all the way to $289 about a $40 boost. she says apple tv plus could boost services revenue growth by 2 percentage points in fiscal 2020 apple has hit an all-time high again today. it's been -- while faang has kind of struggled, apple is doing really well and her call around apple tv in particular was much more bullish than the rest of the street. >> well, i think there's so much skepticism here about how much the streaming is going to add to apple's bottom line. but here you have analysts really digging into those numbers. they're making an assumption

that they could have one out of every ten apple users subscribing to apple tv. they said, look, it's five bucks a month. it's really insignificant when you look how much apple users spend on the hardware itself and then they say by 2025, there could be a $9 billion revenue business with 136 million subscribers and that's not even their bull case. their bull market case is 175 million subscribers. >> but we don't even know what content is going to be on there yet. >> but we do we have trailers out there that show they are pulling in big names. when you'rlling oprah winfrey and jennifer aniston and reese witherspoon. big names we know. when i've seen the trailers, it looks good to me so, you know, i just think $5 is a price point most people see as that's a coffee at starbucks if you like the high-end offerings. >> and it's lower than everybody else right knew. one way to always stand out is to be low price. i think they're giving the first year free, right, with new

devices. >> if you're such a late player in the streaming space, price is one day you can undercut your competition. but i do wonder how this tie between disney and verizon exchanges that story. >> oh, my gosh now verizon saying you get a year free of disney plus anyway, speaking of appl according to emarketer, apple pay is over taking starbucks as the top mobile payment app in the u.s. starbucks mobile app has about 25 million users right now. even though you can only use it at starbucks apple pay is going to have about 30 million urs bits end of this year. so a 47% share that's according to research firm emarketer the interesting thing about this story was there anything more starbucks could have done to take advantage >> that was my takeaway. like, how is starbucks the second one behind apple? that just shows the power of starbucks. how many people use that platform i didn't think it was surprising apple would be number one given how easy it is to use everywhere and how everyby has an iphone. >> starbucks had been number one

forever. apple has overtaken it i'm no expert on this front but it just seems to me like there was an opportunity for starbucks to become the player in the mobile pay field. >> that's what i'm wondering. >> not just at starbucks but at dunkin' donuts. >> wouldn't they have to be a totally different kind of company to do that and maybe that's fine but do they really want to be a payments company and a coffee chain? >> i mean, this is a departure for what apple's main stream was too and look at amazon amazon used to be a book seller. >> right. >> isn't every company going to be a tech company in like ten years? >> yes you can't find an industry where that's not the case. >> it also has to do with who is accepting it so now, all of a sudden when you can go on the subway in new york city and pull out your phone and pay rather than to go through the hassle of pulling out a card, of course it's going to make apple pay the easier go to. it's going to -- it's going to encourage adoption. >> but the interesting question is can they keep it? so we were talking earlier about chase pay, for example, and

the -- there's other companies coming for this space. the ones who have traditionally won there. the interesting question is going to be does apple stay number one >> i think a lot of the success behind starbucks is the loyalty program. that's one of the reasons you use it because every ten coffees, you get something free. i forget the exact term. >> my mom this morning she's like i got my free one finally, before we go, it turns out banning you from checking your work e-mail after hours can be more stressful than letting you check it all the time. there is a new study from the university of sussex saying these policies could be doing more harm than good. that strict e-mail policies could harm employees with high levels of anxiety and nur neuroticism. >> why don't we just try it? >> i know. let's just see. >> well, new york city the reason -- the research -- you got to take every study with a grain of salt. but new york city is one of the places that has floated this idea of literally banning, you know, employees, government workers, from checking e-mail

after hours. >> i see the point about the flexibility, though. because i think it does reduce some stress. you say you need to go pick up my kid or do whatever i need to do and if i can't get something before i need to do that, at least i can do it later. >> totally that's given rise to the modern workforce practically. >> i think we all know getting off our phone and being less on e-mail is a good thing but it's the mechanism that's being used here. i think maybe having it as an option and maybe encouraging it versus saying you must be off your phone would work better for me. >> the experts say there is no one size fits all policy what works for some people to say we're going to make this policy so that you don't feel obligated to check in during family dinner may not work for other people who are using that five to seven period as their let's really turn it out and get it done. so i'm just not into anybody else telling me when and where to do anything. >> more about creating a workplace culture of trying to encourage unplugging when you can than about mandating it. >> and look, we're in the news business you're never going to say to us

you're not checking your e-mail at all sorts of hours. >> hi. >> but for -- for a state worker, if there's somebody whose job doesn't require that, look, you can change stuff internally without having to outlaw it. you know what i mean there is a lot to be said for the recognition of like maybe i don't need to be e-mailing or expecting people to write back at 9:30 or 10:00 p.m. >> but we can do that ourselves. when i say to my team, hey, if you don't get me on e-mail when you need me, text me and oh remember you can call me too and say i need your attention on this right away don't expect my attention on e-mail all the time. >> contessa's like i don't just want an e-mail i want a text. i want a call. >> i'm just saying there's stuff i can get to tomorrow. there's stuff that maybe requires my attention tonight. and then there's like hey i need you right now. >> there is a hierarchy of communication these days and now, we've got the apple watch. but that's a whole other story thank you all. contessa brewer. seema mody investors are pouring into value names. is the rotation out of growth going to continue?

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welcome back the ishares value etf is hitting a new all time high today as the three major averages have been alternating between gains and losses for eight consecutive days now are we in the midst of a real rotation into value? for more, i'm in by bill he's ceo of smeed capital management bill, i'm not just teeing this up because you're hewee teeing happening and you happen to be here this is what you've been seeing for a long, long time. but is it going to have legs is it for real what's changed is it earning season because the banks have been great but what do you think is really going on here >> well, it's -- it's always going to be a marathon, kelly. right? you don't -- you -- you don't expect or want it to play out in 12 months. here's the statistics. over 68 years measurement, growth is about 65% over valued

compared to the average of those 68 years and value is about 6% cheaper than the average of the last 68 years. which to me is an astounding statistic because we're ten years into a bull market, right? the old addage used to be all boats float. yeah all boats float unless they're value. and so -- so we're talking about a very gradual process that will take a long time and people are not going to give up on their growth very easily. >> right. >> what -- we wrote a piece this last week called "risk blackout." when you've done really well on something, let's say you owned costco for a long time or you've owned visa or mastercard for a long time or you've owned facebook and google for a long time, you get blacked out to the risk because you've had such a good experience that you can't -- you know, you're not going to give that up easy. >> yeah but that said, rich, people are waking up to the fact that faang has not really been working well lately. these stocks are still down from

all-time highs apple all time high today. but j.p. morgan all time high today. so, you know, we've had interest rates back up a little bit again, some earnings dynamics. but is there something changing here and if so, what is the catalyst? >> i think there's very much something changing here. and so to the gentleman's point, value's been in a drought here for, what, ten years give or take and this comeback, is it a head fake is it for real i think it's for real because the markets in particular style value versus growth, they're seeing a sea change here an economic sea change you have global economic deceleration. >> but shouldn't those things favor the traditional growthy names? the momentum names i mean, that backdrop had been good for faang for a long time why not anymore? >> well, it could be good for faang. you know, talking about apple for example, is it a growth stock or a value -- >> which i don't include apple you know, this is just the faang with just the amazon but yeah. >> but yeah. any one of those tech stocks it used to be in the old days, you would have to declare growth

or value by sic industry code. but the academic research is so-called pharma french factors, look at it in terms of price the book in other metrics so you could be style fluid today. >> kelly. >> all right go ahead, bill. >> well, kelly, you kind of have to go to diana olic's world to figure out what's going on the millennial buyers and the millennial people, their life is starting to coalesce in their 30s now, right the -- the peak year person in that a group is 29 so we do have a critical mass of 30 to 35-year-olds right now and they're getting married, buying houses, and doing their thing. and so you're starting to see a significant pickup in the home building, in the home buying, and buying the vans to get the sliding doors to get the car seats in and out. >> right. >> and that's a completely different spending dynamic, number one number two, houses and cars, many times, are a borrowing dynamic. so one of the big value groups

that we own -- the -- the -- the big banks. wells fargo. bank of america. j.p. morgan and american express. they have been waiting patiently for a group of adults that are about six or seven years behind in their use of borrowed money that's where it was.>> a that wg pressure onraits over the next 10 years there's 90 million millennials when 90 million people borrow money from 60 million people the price goes up. you're going to make 10 or 15 years from now, no one cares about, what are you doing for me lately >> the accidental. quickly, two or three names where you would put people

>> sectors, clearly equity dmk funds is a sea change. >> you guys agree on that for sure appreciate it, gentlemen thank you. richard weiss and bill sneed talking through these markets today. check out shares of beyond meet they are getting burned plummeting over the past two months and dipping below $100 today. how one ipo became overcooked and why there could be more pain ahead. ♪ where others see chaos, we see patterns. ♪ connections. relationships. ♪ when you use location technology,

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beyond meat is getting burned stock dipping below $100 today it's down 30% in two months. inside one of the year's most successful ipo's there could be more pain ahead that's a day after its next report too it will release 48 million shares of the company's outstanding units. down almost 8% below $98 this afternoon. soft bank bailing out we work, justdays before the company was set to run out of money. now we're hearing big layoffs could be ahead we'll have the details next. eh, it just feels too complicated, you know?

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we knew the company had 2 1/2 billion dollars it ran through >> super quickly >> how much does that change what we knew about the financial situation previously >> basically what they did, they were planning on getting this $3 billion ipo, plus a $6 billion credit facility. they were doing capital expenditures as a company that was planning for an excess of $9 billion in cash. a lot of that had to do with opening up new office spaces and renovating new office spaces, things that require a lot of money up front and then you get the revenue later once you get the tenants in the door paying rent no longer do they have this passion future coming in to fill the hole with all the money they've been spending. and planning on doing this ipo

>> they don't have headquarters any more, this will be rumor 34i8ed out for a while but it seems like layoffs are coming is it true in a way they couldn't afford the layoffs previously >> they didn't have the money to pay the severance. from what i understand from people on the inside, so many managers have left or been fired. and people underneath them are worried they won't get their severance. it's so much less than it was a couple months ago. they're not even showing up for work any more. they're saying, i have no reason to be here, my boss isn't here, my boss's boss isn't here. my equity is worthless, i'm probably going to get fired anyway why show up in the first place, which, of course, as you know takes some time to work itself out. >> if you're marcello, you have

a huge uphill battle that's more clear than this after today. >> i think that's one benefit to a company owning, taking control. >> sitting out, trying to clean some of this up. >> you try >> good luck thank you, we appreciate the reporting. that does it for the exchange today, power lunch begins right now. thank you very much, kelly here's what's new at 2:00 on power lunch. mark zuckerberg in the hot seat over plans for his crypto kroenscy earnings divide. some players are getting hit and it could be a major warning design the american dream killer. leon cooper is exploding on elizabeth warren as she rises in the polls. we'll bring you the incendiary comments, as power lunch begins right now.