let's move forward >> okay. joey. >> mks instruments, mksi is the ticker sem -- symbol off of lamb research strong stuff. >> dow is up thanks everybody "the exchange" with kelly begins now. thank you, scott hi, everybody. here is what is ahead. deals and more deals a deal that could open the flood gates for retail and go beyond to a bigger deal we'll discuss that. and plus five key days as the s&p hits new highs investors have a full doct the fed decision on wednesday and the mighty jobs report on friday we have your game plan and a look at the early winners ahead. and are we seeing the death of the duopoly in the ipo world and an apple triple play and the revival of two stocks and that is ahead in "rapid fire.

dom chu has the answer for us. >> we did hit the high of the s&p right above the bell and the old mark 3027 and now above that but for the dow industrials we've given up half of the gains so we'll see if the momentum slowdown continues but green across the board for the major indices and one place they are outperforming is the small cap stocks this is the vanguard, ticker vtwo, that fund is up 1% the dow only up about a quarter of 1% at this stage so that move higher is playing catch-up and we'll see if the bulls could cling on to that and the stock of the day so far and breaking news in the last couple of hours, fitbit shares off the highs but still up 23% on the day. now just for some context, go back to the post ipo highs, this is a massive stock over here it lost about 90% of the value

since the ipo, at one point it was almost $11 billion stock and today it is worth about $1.5 billion to $2 billion and keep in mind and about 13% of these shares of fitbit are held by short sellers so we'll see if the squeeze is part of the story. >> tnd as a great story. we'll have more on that, dom thank you very much. welcome to "the exchange" and i'm kelly evans. and the dow and nasdaq less than 1% from their records. meanwhile we have a bunch of deal talk. lvmh and fitbit and tiffany and virgin galactic is moving higher are these bullish signs for the market joining me now are bob pisani with jerry castel anie, it is and great to have you both here. jerry, we ask the question because when things look this good, investors get nervous and say well we've deals and we have

ipos of companies that barely have a business and we have all-time highs, would you be fading the move today or does it please you >> actually i feel good and i think we're just getting started, quite frankly there is three important points to look at as an index or in this case a broad move upwards eclipses an old high and the fact that we're worried about it in the first place if you go back in the early years of the rally people would celebrate each time you made a new high now it is more of a time of questioning. and number two, you could see that portfolio position and people still own utilities and defenses and other things that are reflecting a caution on the part andin some spite of the fact there is a handful of ipos broadly, most of the names and particularly the cyclicals are still acting as though a recession is very close and nearby and that is just not a sign of enthusiasm or over-optimism.

>> would you be an owner of the cyclicals here, jerry? >> absolutely. think first of all of the financials there is no question these are cheap valuations and balance sheet for the big banks are the best they've ever been look at industrials that have been slaughtered by the trade war conversation along with brexit and the slowdown in the economies. those are good solid companies and look at the way they're reacting just in of the last week to mediocre earnings. the stocks are pushing forward which suggest there is something better coming. >> and bob -- i'm sorry. >> finish your thought. >> and the energy stocks are trading so the price of oil will drop to $25 or $30 and so little evidence for that. the stocks are yielding 4%, 5%, 6% in some cases this is a wonderful opportunity to look at these things. >> and bob, i think jerry hits those points well here it is interesting to look at the market today and you have the

value with all time intra day highs and semiconductors and tech those are odd bedfellows. >> semiconductor is the symbol of global growth and the market is defensive so why are we at highs feds cuts rate for the third time this week and consumers holding up well. i reviewed of the transcript of all companies reported so far it is remarkable how the u.s. consumer is holding up well and i look for recession talk. i didn't see any of it and it is typical, ceo of zion's bank corp we don't see a broad-based recession on the horizon and we heard that many times so i think the market is comfortable with slower growth next year, maybe 1% to 2% gdp but that is the key and no recession and i agree with jerry. >> and so your picks are valero and jp morgan and caterpillar

and apple. any others in the basket >> the names i gave you, i think it is for somebody who has still some lingering doubts. so if you want to play the break-out, take the big names and the names that might not go up 20% in three months but these are the leader names as we come into this. so take the best of class and the most consistent performers go down into more volatile names under them but right now why don't we lean into this as we break through. by owning the better names and the more consistent performers in their sector. >> apple is at an all-time high for over a week hitting it day after day. and j.p. morgan up there thank you both talking about the markets. now talk about one the biggest deals, louis vuitton and tiffany are talking about tieing the knot shares are soaring after they received a takeover bid from lvmh worth $120 a share, well

below the tiffany all-time high. the announcement came as a surprise and could it trigger a wave of consolidation in the retail sector? joining me now are cnbc courtney reagan and susan anderson at b. reilly fbr so susan, first of all, does the tiffany price need to move up for this to be done. >> i don't cover tiffany but we're seeing retailers that offers have been made at, they're just not willing to accept the prices. they know the stock is undervalued at this point. a lot of them have gone down with the rest of the retail group so a lot of them still believe they are worth more than some of the offers are being made for >> are they in denial, susan or is it reasonable to think this is a price i've traded at within in the past year or so i should get a premium to that? >> i think it depends on who you are looking at other ones where sycamore made offers was taylor or chico's and those were pretty dirt cheap

offers, just over $3 for the chico brands which a couple of years ago traded in the high teens. so i think that it depends on who you are looking at but a lot of these where there is not a bankruptcy in sight or in reason to sell, and they know that eventually consolidation will happen in retail and valuations will come back, i think it makes to sit back and try to get a higher valuation. >> and tiffany's is the takeover name and while they are in transition, they are not the beatendown retail stocks of which there are plenty to pick from and is this likely to take out the stronger or weaker candidates >> it all depends. i know that is not an easy answer but it depends on what the portfolios need to look like when you talk about the acquiring company and what they're looking to build look, you have these sort of american premium houses, i won't call them luxury when you look at tapestry or coppery holdings but they're trying to build up

their portfolio. tiffany doesn't seem to go with them but lvmh is looking to build out jewelry and with the name that is very u.s.-focused so i think susan is right, it is all going to depend on the circumstances and the retailer i think of course some of the weaker players it may make sense to sort of team up and then on the flip side if you look at a stronger player like a tiffany it doesn't have to sell if it doesn't want and we talk about the price and if $120 per share was offered, it is undervalued because it is $129 now. >> that is right you cover gap and elle brand and this is described as the retail apocalypse so how could more consolidation figure into the end game here. >> i think with the multiple formats we could see breakups. we saw gap now spinning off old

navy potentially elle brands could spin off bbw and it is the value out of the stock they feel they deserve so you could see breakups but it makes it easier for someone else to come in and buy parts of the company but they don't want a whole company but part of the company. also it is tough because all of them have so many stores so we're seeing a lot of private equity pick up bankrupt companies where they could pick and choose which stores they want. >> so four year coverage universe, are there stocks on consolidation or a breakup wave or we could have a whole rejuggling you would call in terms of ownership and portfolio of the major retail names that emerge here. >> we live the child's space we had gymboree and others shut doors and go bankrupt which is benefiting players like children's place or carters. they are benefiting from fewer players out there so those are

two names we like and we like l brands for the value play. we value the bbw format at $34 which is well above where it is trading. and i don't think that vs is worth zero so lb is a longer term play and we have to see that play out and potentially get the value out with the spinoff but i think that a lot of these are undervalued right now. >> that is super interesting so consolidation and breakups. and the kids space is winning by losing participants i guess. thank you both appreciate it. joining me today, susan anderson and our courtney reagan here is what else is coming up on "the exchange." >> beyond meat after soaring ipo, beyond meat has seen the gains cut in half will tonight's earnings get it back on track. plus the california wildfires rage on. and the governor is now asking for one big investor to deal

with one of the biggest issues pg&e and the second largest mortgage lender in the country tells us what is ahead for the housing market >> announcer: this is "the exchange" on cnbc. woman: my reputation was trashed online. i felt completely helpless. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com.

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more than quadrupling since going public but the company is getting ready to report earnings after the bell and concerns are rising the stock is down 54% from the all-time highs this summer and investors are sell ago head of the lockup expiration date which is tomorrow. joining me now is john baumgartner with wells fargo and le leslie picker following this john, what are your expectations for the earnings today or lack, are though going to post earnings tonight >> we think revenue will be strong they've been increasing production capacity and doubled the points of distribution in food service and in retail over the past year or so. we look for about a 200% increase on year-over-year growth and we think the revenue is strong. >> and you have a market perform and equal weight on the shares explain to someone how you could justify the valuation here >> it is hard. it is not your typical food company. it is a tech stock it is double that of netflix and

facebook so there is a lot of secular growth built into the valuation here and we think part of the concern is competition popping up in the short-term with larger food companies getting involved in the space and the processing over the immedia medium and long-term and there bumps on the way so we are more cautious on valuation. >> and investors were concerned for weeks an we did see the shares go below $100 and how much of the float could hit the market tomorrow and what is the expectation around that? >> so 48.8 million shares are eligible to hit the market tomorrow that is about 81% of the float according to renaissance capital. as lockup expirations will sell, not even close it is a small traction of investors looking to capitalize on some of the recent gains since the ipo. that said it is notable that the

54% decline since the july peak because people are selling into this lockup expiration and we see this with every ipo that people do tend to sell the weeks leading up to that calendar event and studies have found that following that calendar event it may dip tomorrow once the lockup expiration happens but following that calendar event the shares do tend to rise a little bit after that. so some of the air has come out at this point in time and we may see that big overhang. >> after we move through tomorrow's lockup date, would there be another catalyst like that on the horizon or is this the main hurdle in terms of the ipo process to get through. >> this is the main hurdle some companies do have stair step lock up expirations and alibaba had one because that deal was so big they needed to stagger it out but this is the main lockup expiration date. and another thing more

technical, 50% of the shares are out on borrowed to be short so any kind of upside surprise could send the stock higher -- yet again or could bring more short sellers into the mix. >> whether it is earnings or the lockup or any positive news you could see why the stock might be so prime to move higher. john, even though it is down from the peak, some people will compare it to the high-flying cannabis stocks and where we see the exuberance followed by a drop of 80% or 90% what makes you think that beyond meat will level out as posed to falling further? >> i think a lot will hinge on the competitive environment. in the last couple of months we're seeing conagra and tyson and food based coming in with plant-based of their oeb and there is pricing and in food service tim horton in canada scaled it back to just ontario and british columbia and a lot

is just the scarcity value but this is the only pure play in plant meat out there and demand from esg and the investment funds underpinning the valuation. >> so you like silk owner, nomad, if people want exposure to the space. >> we like nomad and it is close to $2 billion and over the next five years we think plant base will drive 45% of the revenue growths it is a global story and not just the u.s. market you have silicon and others and so we prefer that for plant-based exposure, and beyond meat hanging above $100 and thank you both coming up, the world's king of luxury is courting tiffany and he wants to put a ring on it a closer look at what they would get out of this acquisition. plus getting into multiple stores with one bird

all birds that is. the retailer expanding its physical footprint good idea in this day and age? the ceo joins us live. and take a look at some of the all-time highs you heard about j.p. morgan and crofe but also the tech names, miost and lam research and united technologies as well. we're back in two. rather than worry about how to pay for long-term care. brighthouse smartcare℠ is a hybrid life insurance and long-term care product. it protects your family while providing long-term care coverage, should you need it. so you can explore all the amazing things ahead. talk to your advisor about brighthouse smartcare. brighthouse financial. build for what's ahead℠ brighthouse financial. - stand up if you are first generat(crowd cheering)ent. stand up if you're a mother. if you are actively deployed, a veteran, or you're in a military family, please stand. the world in which we live equally distributes talent,

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with esri location technology, you can see what others can't. ♪ i'm not really a, i thought wall street guy.ns. what's the hesitation? 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 welcome back to "the exchange." the california governor declaring a state of emergency as high winds are fuelling

multiple wildfires that continue to ravage parts of the state millions are without power now hundreds of structures have been damaged. and more than 162,000 agers has been burned. jane is in healdsberg for us. >> i see a destroyed winery but the vineyard acted as a fire break but if you come around here, this winery soda rock is a complete loss. one of the almost 100 structures destroyed in the kincade fire that doubled overnight and the news is there is another fire on the west side of los angeles in brentwood along the 405, one of the most congested freeways in a congested city wealthy residents like lebron james and arnold schwarzenegger were forced to run from their homes before dawn. >> this is a fire that quickly spread it is now over 500 acres but we luckily had a lot of amazing heros that were in our

fire stations who rolled out immediately. we have over 500 firefighters that are on the line right now and some of the most challenging topography of los angeles. >> reporter: it is amazing so far nobody has died but this is such a california story, the l.a. times run into a guy trying to flee the brentwood fire and didn't know what to do and he said i'm trying to figure out what to do with my ferrari clearly the power outages are not preventing some fires but are they presenting any. and here is the map of the pg&e power outages affecting 2 million people and that will continue and southern california edison said the current outages and they could increase to 300,000 more people as winds pick up edison reports earnings tomorrow after the bell and pg&e which is bankrupt will report earnings a week from today before the bell. >> it is tragic that these power outages aren't preventing the

powers but it is difficult to distinguish cause and effect and you mentioned lebron before 4:00 a.m. local time said had to emergency evacuate my house and i've been driving around with my family trying to get rooms. no luck so far and then about 20 minutes later said they finally found a place to accommodate us. if the biggest star in the world is having trouble getting a hotel room, what is else everybody doing? >> reporter: um, well, i think that was a little bit tongue and cheek. you walk into any room or hotel and anywhere in the world and you're lebron james and they'll kick me out of my room and give it to him. so we don't know what has -- this fire may have been caused by a power line. but many fires may have been prevented by the deenergizing. and i want to point out, the trees behind me were burned but you could see the whole place was destroyed and the trees back there right by the power lines which were turned off. those power lines were turned off and the trees are green and

the houses back there untupped fire is such a weird, weird thing. very difficult to predict. though they're spending money trying to figure it out. >> and we're going to continue to follow it and see what -- as i said the losses that this is becoming more routine and more tragic thank you, jane. jane wells fargo in california for us. now over to sue herera. >> hello here is what is happening at this hour. former deputy national security adviser charles cupperman did not appear for a scheduled deposition in the house impeachment inquiry. he asked a federal judge whether he should comply with congressional subpoena or the white house order that he not testify. adam schiff calls his absence unfortunate. >> he was compelled to appear by a lawful congressional subpoena. just within the last few days of course the district court has ruled that the impeachment

inquiry is perfectly valid witnesses like dr. kuperman need to do their duty and show up. >> rocky police firing teargas to disperse thousands of protesters in baghdad. young iraqi students joined the protesters calling for reform and regime change. and the world's oldest natural pearl has been put on display at the louvre museum's location on the persian gulf and estimate the pearl is 7600 years old and it was discovered two years ago on an island off the coast of abu dhabi you are up to date, kelly. that is the news update this hour back to you. >> sue herera, thank you very much. here is what is ahead on "the exchange. >> announcer: the apple triple play price target hikes, earnings and apple tv is just five days away.

and investors are betting that space will payoff. the world's king of luxury wants more luxury and going against the grain. the ceo of all birds on why they're actually onipeng more physical stores. they'll join us. woman: my reputation was trashed online. i felt completely helpless. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555.

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let's catch up on a few stories that should be on radar on this monday it is time for "rapid fire." here are dom chu and rahel sol man and george frank and a ton of news on apple and it is only on monday they are set to report earnings after the bell on wednesday and the apple tv plus begins streaming on friday. ahead of all of this, j.p. morgan and credit swiss and others raised their price target in the past 24 hours and then news according to sources that apple is looking to renovate the smart home business and i think they launched new air pods today and this is the favorite, the stock hit an all-time high every trading day since october 16th. >> wow >> what can you say about it >> so what i love about this story is the idea that everyone is taking up their price target. the rates have maintained and

been the same. but what is curious is the research reports you read and many site channel checks for the iphone 11 and they survey retailers and the stores out there and count the number of customers going in to see the dynamic for those phones i have probably seen just as many bullish channel checks as i've seen more bearish ones or ones that say maybe -- >> meaning you think it is split. >> so all of the price targets are going up even though i'm seeing the prevailing narrative become neutral with regard to whether or not people are very bullish going into the holiday season for iphone 11 sales or whether or not they're more tempered about the expectations. >> and maybe just not a decline is the new up for apple. you look at to your point all of the revenue estimates are calling for flat revenue and declining earnings so what other stocks would get such a lift well, it is not so bad but again apple is this debate over are they no longer an

innovative company and therefore they fall into disrepair or are they going to continue innovating i don't think it is either of those. but i think investors are happy to maintain and add a little bit on the -- >> quickly on that point we've been talking about how faang has not been momentum at all lately and the original fang does not include it is just fang. and the fact it is a value stock next to jp morgan and we have the value etf at intser day highs and tech up and and semiconductor and is it seen as a value stock? >> here is what i would say. apple is still a technology stock. but if you look at the communications services stocks which encompass most of the faang names, the top three communication services stocks over the last 12 months, they are cable or satellite companies. they are not google or alphabet or facebook. it is literally ischarter and

at&t and comcast, the parent company of this network. so to your point about the value side of things there is a tilt more towards that over the course of the past year-to-date period and it is playing out. >> and one last thing, the iphone 11 counts for a little over a week of this quarter. so -- >> of the current -- >> of the previous quarter. >> so what we need to know about the iphone 11 is the following quarter, the end of our year quarter. >> the holiday shopping. >> so this doesn't tell us much about the 11. >> we'll see if they say anything about it in the earnings and the next piece, all of this is happening so this is sort of odd bedfellows on a day when sir richard branson virgin galactic went public and this is the space tourism company and at last check trading above the opening price so instead of tangling with the ipo process, they are doing a direct listing with the help of chermoff habitat that have a special

purpose acquisition. morgan brannan sat down with him to go this route and instead of the traditional ipo process and here is what he said this morning. >> i think these kind of transactions and processes are the future and that traditional monopoly run by morgan and goldman, those days are numbered. >> that is what caught my ear today. >> this is a bold statement. for companies with a lot of name recognition that are big brands and don't need the cash, there is a certain appeal. exactly. but smaller companies are -- exactly, huge founder. but for smaller companies that didn't have name recognition, it is trickery. >> and the ipo becomes a marketing vehicle. and zoom said we won business because of the marketing around our public offering and how well it did but from the underwriter themselves they got them to try the product and adopt it. >> i would say technology hassen aged this and i don't say it

cliche-ish but the idea you could get a message out there and tell a story without the road show where you pitch a book or a pitch a book to investors trying to get them to buy in the process. if you do have a situation where your name is out there and get your story out there to investors and build hype then a direct listing maybe a smack type of situation works but if can you not you still need to share the stock to clients and that is what jp morgan is there for. >> and the toll takers, which they've served a lot of different roles, this is another area where the banks can't any longer insert themselves just because take a huge fee and say you need us because you need us. >> i agree if this continues to trade well. meantime excitement in the luxury retail, lvmh approached tiffany with a $14.5 billion bid and they are controlled by

berna bernard around ault and this is savvy because it is below the tiffany two-week what do you think he's after here. >> and if you ask who is the third richest man in the world, warren buffett but no one would say bernard arnault because they can't pronounce it and this guy took a bankrupt textile company and turn it it into a $200 billion dominant player in luxury. >> and he's good at luxury brands that are the top and well respected in their space and executing those around the world through expanding the brand and collaboration with designers and just great execution and his incredible relationship in china which type is struggling with and that is the source --

>> and that is interesting because they said tiffany doubled down on china at the wrong time with the hong kong exposure. >> it is not they doubled down at wrong time, they were late and had the wrong approach and we're going to serve the chinese and europe and they are buying their stuff in china now so tiffany has 35 stores it is not enough and it wasn't fast enough he could ramp up that growth and execute. >> and so here is what is curious about this deal is bernard arnault has been very closely focused on the brand and the family aspect of his business he likes having all of his employees family and if you are -- >> and some of them are. >> exactly right so if you are looking for a kind of vision as to who bernard arnault and go to ube and the profile of the big risk takers over the course of history, he is one of them so go to youtube, just search

cnbc and his name and there is a 26-minute documentary of him in his own words and blankfein and others describing him. >> and despite that success, apparently sources close to tiffany say they're likely to reject the deal. >> from a shareholder perspective, the shareholders are i think a little bit above their skis today because this share price is now over $130, around $130 and his offer is $120 the one thing about him is he does not overpay it is a rich company and he's the richest guy. he's very disciplined about price. he feels like he's being cornered or going to be forced to pay something, he'll back off. and then where is tiffany going to be left >> the less type shareholders like it, you think he is on to something. and before we go, alphabet has made an offer to acquire fitbit in an effort to get into the smart watch business so on the one hand you have

luxury and fitbit shares which have been cratering and they are soaring 30% today. the stock hit an all-time high of $51 in 2015 and it is $5.5 given the competition out there. is this another opportunistic play for a hard-hit name >> i wonder if it is too little too late at this point apple has so much global market share in the wearables and the -- >> like their watch. >> i hate to be wearing the watch at the very moment but i mean, when you go to the gym, everybody is wearing an apple watch. that is a strong suit for them and so you wonder forfeit b fitbit you don't hear -- >> and why would alphabet with cutting research and development and is this saying instead of building it we'll acquire it and then maybe enhance it -- >> acquire it on the cheap. >> super cheap at the peak market value it was a $10.7 billion company. with today's move it is closer

to $1.5 billion to $2 billion so you're buying it at the lows and what is curious is we talk about google, data company they love data and if you have fitbits or tracking all of this type of stuff is there a way to collect all of that and then harvest it -- >> does google even have a watch right now? >> they did. they tried and they pulled it. but they have a great operating system so they need something to put into and fitbit needs a -- >> i have an apple watch and it is the favorite thing i've ever owned. >> i know. >> and so i could see why google must be looking at this and saying we need to get in here now. i was going to say a foot hold, they need a wrist-hold in the space. thank you. dom chu and rahel solomon and robert frank now expanding the brick and mortar footprint we'll talk to a ceo about the strategy and a potential for an ipo and take a look at shares of the s&p etf.

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welcome back to "the exchange." shoemaker allbirds was born and raised as an online retailer but they will expand a move contrary to where many think the retail world is headed and so why now and what does it tell us about the consumer tim brown is the ceo and co-founder of allbirds it is good to see you. >> good to see you too thanks for having us. >> absolutely. so tell us how many stores you're planning to open and where mall-based retail can work >> we've got nearly 15 stores at the moment 14 soon to be 15 and we'll add 20 stores next year. many of them are in the states we have some overseas in the china and u.k. and new zealand

and we're hugely excited about the channel. we're seeing it is a great opportunity for pop to touch our product and try or product and to learn about the materials and the material innovation. and we're extremely bullish about the potential of growing the channel. >> do you think there is any limit on a direct to consumer company because you've had skirmishes with amazon over copycat products, is that a governor on your growth at all >> i don't think so. we're in a competitive space in footwear but there is 20 billion pairs of shoe on average and we're still very tiny. we have enormous potential to grow and continue to grow but to do that we have to continue to innovate and continue to be good and the retail expansion is part of it. as is international. but at the core for us it is about product and it is about material innovation and we're till -- and we'll continue to

use sustainable materials for our key differentiator and we have a runway to do that well. >> people love your product so much i'm sick of hearing about it but that is the ultimately differentiator in the long run i want to asksa you grow and look at the market how you consider your options for an ipo versus a direct listing which reportedly i hear you are profitable in 2016 and 2017 so maybe something like that could be an option we have a special perfect acquisition company, a big space wave going public. how do you weigh the different methods of maybe ultimately getting this company in the hand of the public markets? >> the short answer is at the moment we don't and i'm flattered by the question. we're still not even four years old so it is very early days for allbirds and what we could achieve and the team we are building in san francisco and overseas but it is premature to think about that one day down the road possibly, but at the moment we're focused on execution and growing our

business in a really sustainable way. we've been profitable from the beginning. we've been careful and measured in our growth and we've raised some money to fuel that growth and we'll continue to be very, very careful and methodical in the way we build the business. >> what about those who love the product and say but i want to be an early investor. look at what happened with uber and others all of the good growth and the early age stuff we couldn't access that and we were shut knoll it was too late and the excitement was gone. >> well, maybe one day soon is what i would tell them look, i just think we have a long, long way to go and it is -- it is something we're not thinking about at the moment our thoughts are occupied with taking our goods to china and continuing to grow in europe we're seeing great success as we touched on the retail stuff is really important and maybe that happens to us one day and maybe it doesn't sat the moment. it is not smog -- not something we're talking about. >> and i know you are working on

socks and apparel. >> look, we started with socks and had an amazing reaction to that it is the beginning of what we think could be a larger sort of story around apparel and we're building to that and hopefully 2020 will be a year where we could start to roll that out more i think the other key thing for us is continuing to innovate around the topic of sustainability that feels more important now than ever and we're a s corp and showing you could be a profitable business that is thoughtful and kind to the environment at the same time is a big part of our story and hopefully we could be an example to others, amazon and the like, that making things in a better way is a important thing to do. >> i'm just impressed you pulled off the transition from professional athlete to ceo. and a successful one so far as that tim, thank you very much tim brown is the crowe founder

and ceo of allbirds. >> coming up, argentina has a new president with a familiar and controversial face can they bring the country back from economic crisis we'll have the latest and what it means for investors next. and take a look at shares of spotify on pace for the best day ever the company posted a surprise profit and better than expected monthly active users shares up 14% nearly we'll be right back. servicenow put our workflows in the cloud. this changes everything. you're right sir... everything. 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.

welcome back to the exchange stocks are down now after getting a nice bump earlier today following the country's election over the weekend. this is the country in an economic crisis. the question is does the new president have the right tools to fix it? >> critical election that happened over the weekend. alberto, fernandez, a 60-year-old law professor is the president of the country and he inherits a country in the middle of an economic crisis. it's really telegraphed in country's currency he needs to renegotiate a deal with the international monetary fund

the next installment of $13 billion is due in early 2020 think are playing hardball they are saying argentina get your economy together. reduce spending and the deficit or we're not going to get you the next installment >> is the right leadership now is this the right team to do it and what about the hedge fund exposure >> a number of u.s. hedge funds that had exposure have it this time around. how does he restructure the country's bond does he issue a haircut or extend the duration of the bond. that will be a big story >> yeah.

either way big ramifications thanks appreciate it. coming up, the second largest mortgage funder in the country is having a record year. what does that tell us about the state of the housing market? lk y street of dreams ♪ ♪ here i go again on my--- you realize your vows are a whitesnake song? i do. if you ride, you get it. geico motorcycle. 15 minutes could save you 15% or more. if you're on medicare, remember, the annual enrollment period is here. the time to choose your medicare coverage... begins october 15th and ends december 7th. so call unitedhealthcare and take advantage of a wide range of plans with a variety of benefits... including an aarp medicare advantage plan

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welcome back sales of existing homes dropped in september when realtors blaming a combination of low supply and rising prices typical existing home price jumped by nearly 6% last month that's the biggest surge since january of 2018. all this despite mortgage rates remaining under 4% is the housing trend looking robust or still a little uneasy in. >> good afternoon. thanks for having me it feels robust to us. a number of folks applying for mortgages in the fall and first time home buyers has been really strong i would say it's looking good. >> how much of your success because of technology? how significant is that in

taking shares? >> that's been really our secret sauce. our culture and team members and technology and it's not the speed the close. it's the certainty whether we're working within a client on refinance or real estate agent with a purchase, they want the be certain they will close out the mortgage. that's where the technology getting the information that we need to get a full loan approval i think that's what rocket mortgage is how it separates it from a lot of the other experiences out there. >> that raises some questions about the underwriting process especially because '08 still loom it seems to be this push to get mortgages to more people when you bring data in from

employers or from banks, the amount of fraud is greatly reduced which is helping to strengthen mortgages, actually keep rates low that's a good thing. when talking about overall housing, should we look at the guidelines differently is there a way to think about additional sources of income, air b and b, people are running out in their home. can we use that income as the economy changes, it's important that guidelines change be for the people taking part. >> appreciate it very much thanks for your time today >> thank you that does it for the exchange.

time to join tyler and melissa for "power lunch." we'll see you over here in a moment welcome to "power lunch' record highs today the s&p 500 at an all tie high the dow just a percent away. nasdaq close as well can anything get in the way of this rally clash of the cloud titans. microsoft using its force to use the $10 billion jedi contract over amazon. we'll tell you what it means for those two stocks the online resell market is heating up you've heard of the company poshmark, the payoff has doubled. the ceo will be here to weigh in on that.