lot of consumer news next week i think it'll do well. >> big news we'll be looking forward to it. good to see you as well. farmer jim, what do you have >> caterpillar's performing really well. going back to the beginning of the show, i do think you'll find a rational outcome in china/u.s. trade talks. >> good stuff. "the exchange" begins now. thank you, scott hi, everyone and here's what we've got. a better than feared jobs report manufacturing data that had some promising signs and a market at all-time highs is the recession off the table and how much longer can the expansion going? we'll ask. plus, all eyes now on the house market will higher interest rates -- and tiktok is getting caught up in the u.s./china spat pinterest sinks. berkshire struckless and apple tv hits the small screen that's all ahead in rapid fire today. but we begin with breaking news from the fed and steve liesman has that steve. >> thanks.

speaking in new york city saying the current stance of monetary policy is lucky to quote remain appropriate. if that sounds familiar because it's exactly what fed chair jay powell said on wednesday so he's now out along with vice chair for bank supervision really saying the same thing saying this fed will respond to material changed in the outlook and the fed rate cut was insurance against ongoing risk now, why did the fed stop? well, because they provided what he calls meaningful support to the economy and the rate cuts will continue to provide support for the economy, says the u.s. economy's in a good place, growing at a moderate space. but there are risks and he lists them they include weak global growth, brexit and trade, disinflationry forces remain, he says, and negative yields abroad could reduce u.s. yield. kelly, basically, the blackout is over for the fed to start talking and now top deputies of the fed chairman are out there explaining the policy. >> steve, this is interesting because clarida, who is seen as

probably the most authoritative voice on the fed other than the chairman himself is coming out after the jobs report this morning and able to, you know, respond to that for the first time kind of speaking on behalf of the fed now so what do you think his message here is? is it we're done it's going to take a lot, you know, a big increase in inflation for us to do anything now? >> i think that's right. i've known richard for a very long time. professor at columbia. one of the world's leading monetary pole monetary policy experts. when he says -- when powell says that it'd take a lot to bring the fed back in, i think that's right. and i think today's jobs report, they feel pretty good about, kelly. in that it was stronger than expected you want to maybe think about adding back in those gm workers, adding back in the census workers who left and, you know, we may be at a 150 to 175 run rate and that is just fine. it's just that the weakness we've seen in the economy and it has slowed down has not really slowed the job market very much. >> right all right. steve, appreciate it very much

thank you, steve liesman and welcome to "the exchange" everyone i'm kelly evans and markets certainly in rally mode today. dow's up 239 bob pisani. >> we have gone from fears of a recession in 2020 to a belief that the global economy would just be slower in 2020 but today's data is starting to take the edge off of even that slowdown narrative we've come to expect so look at the october jobs. better than expected ism, weak but better than feared and that new orders number did not slip china manufacturing also was better than expected as a result, we are seeing some breakouts, not just in the s&p 500 but even overseas. seen europe at a new high. that's the ufa hear in the u.s., new highs in the nasdaq, new highs in the semi-conductor etf, healthcare etf, and communication services as well. so what's missing from the picture? what would make the markets move

up say another 10% in the next few months three issues first, higher bond yields would move money out of bonds and into stocks next, trade, we need to take the december 15th tariffs off of the table. and finally, there's earnings. that's the biggest potential mover. the slow growth narrative. that's flat to mid-single digits but if we get better economic data across the board, it will force traders to re-evaluate low earnings growth for 2020 and that's when you'll really see the market move. kelly. >> appreciate it thank you, bob pisani. and we're going to talk more about this rally right now we had a much better than expected jobs report that bright spot within the manufacturing data also giving investors some hope. we may be all clear on the recession front. for more, i'm joined by craig callahan he's president of icon advisors. john is portfoliomanager at miller value partners. welcome, guys. joe, how much of a game changer is this? >> it's not a game changer,

kelly. it's more of what i've been thinking, which is you've had really weak manufacturing. i mean, these numbers are the softest since the recession. yet, the broader economy's held up so it tells you the u.s. is pretty resilient we're seeing that in the data. my fear, though, all along is that the fed now with some of this better data might make another communication snafu and in my opinion, they made a mistake this week by not being even more dovish because i need to see the treasury yield curve steeper. >> let me wrap my head around this so you're saying everything's looking better in terms of the outlook but the feds should have been more dovish >> yes, absolutely we still have a high dollar, we have low commodity prices and we still have pockets of the yield curve inverted so we're moving in the right direction. the equity market senses that. the surprise next year is much stronger growth but we still need help from the fed. >> i should say bill has been having a great year. >> yes. >> i don't know if you chaock it

up to stock picking to just kind of looking at leaning against consensus. i mean, let's remember we've had newspaper headlines talking about a u.s. recession since last december. okay it's now november of 2019 and it's still not here and it doesn't look like it's around the corner. >> don't forget we have 70% of the people think we're going to have a civil war we have 25, a war on presidency has a -- i mean, a stock market decline of 25% so you have a lot of negative headlines. >> yeah. >> you have a historic pivot by the feds since last october to this october where they said they weren't close to being at neutral and now we have -- possibly four by the end of the year. >> that's true. >> so i think that's a huge thing that, you know, if you look at who is the speakers. i mean, i watch obviously clarida, right, and i think those guys are really the guys to concentrate on going forward. >> so what you're saying and this kind of what joe hinted at is we have had a big change

since last december and it's instead of the fed continuing to hike interest rates, they've now cut them three times and there's nothing else on the horizon. so has that been enough to support the economy from here? and what kinds of stocks do you maintain exposure to now >> well, value is at a 20-year historic low to growth and momentum trading so we're still -- portfolio trade ten times earnings the s&p trades at 17 times earnings even though our portfolio holds amazon, restoration hardware some really higher multiple names. but as we go forward, that -- we saw a pivot in late august/early september from growth and momentum to value and we were up 13% almost in the last month. >> and you think that -- or that rotation continues >> well, the rotation has to continue because what you're seeing now is a lot of the quantities that got blown out which nobody seems to want to acknowledge but we did have one, have actually shut down. right? so now, we're seeing more research that's leaning towards

this pivot from value -- to value from growth. and what you see then is that you start seeing portfolio managers starting to look at value stocks more and more. >> okay. >> and you might seen -- you're starting to see inklings of certain etfs that are pivoting towards increasing their value type exposure and -- and -- and actually coming out. >> and, craig, i know you've been looking at some of the unloved parts of the market like industrials, for example, and saying financials and saying that's a place that investors can be but you had some concerns about monetary policy and -- and are those concerns alleviated now? i mean, tell us how you would characterize the stock market here >> we're value investors and we measure stock prices on average right now to be about 17% below our estimate of fair value so all year, we've been bullish. we haven't tried any short-term market timing. we've minimized cash and value is pulling us toward technology, industrials, financials, and consumer discretionary. actually, the same leadership of

the last ten years. >> hmm i'm surprised that mastercard's on your list and adobe because those have been some of the best-performing stocks of the best past decade. >> well, we still see mastercard is about 25% below our estimate of fair value. we have 16% long-term earning growth and over the next couple years, they can post 17 to 18% year over year growth in earnings so it's a very impressive company. >> just, just trickle back to you and give you the final word here what do we need to watch for to make sure the fed doesn't screw things up? >> no, i mean powell's done a reasonably okay job. i mean, he didn't make a mistake which is good. but we've had a lot of communication snafus over recent history. to me, again, the market's up on the good employment numbers, the lack of positionsing on the equity side. i'm going to be watching data and my guess is manufacturing's bottoming here and you're going

to see corporate sentiment improve. obviously, china -- >> how much longer can the cycle keep going >> australia's going since june of '91 the economy hasn't ripped the last ten years it's gotten better but again, i always worry about the fed because the fed has the ability to slow this economy if it so desires. >> all right gentlemen, thank you all appreciate it today. craig callahan, joe, and john spelianzo. >> one of the strongest parts of the market is anything cybersecurity related these days kate rogers in washington with a look who's hiring there and what exactly they're hiring for kate. >> hey, kelly. that's right some 2.8 million people work in cybersecurity roles around the globe but there is a shortage of about 4 million workers needed to properly defend organizations against threats. now, that number includes about half a million workers needed in cybersecurity roles right here in the united states firms like tdi where we're live today are looking for both developers to create security programs, as well as analysts. the company has competitive pay

and benefits but unfortunately, not all applicants have the right credentials. >> we have a position posted and there are specific qualifications someone might be presented to us or come to us with, you know, fewer, maybe half, the years of experience that we're looking for. or a fraction of the total qualifications >> reporter: another unique issue that's cropped up in this tight labor market tells us sometimes people actually ghost the organization they'll say they're coming in for an interview, not actually show up, and then sometimes people have even ghosted them after being hired. can you imagine getting a job saying you're going to take it and then not actually showing up for work back over to you. >> yep, there especially and i can't imagine it but i'm glad that -- i'm glad in a way that things are so strong that's happening. kate, appreciate it. kate rogers for us and now, reuters reporting that the u.s. government has launched a national security review of social media app tiktok. for the very latest, amy joined by julia boorstin.

julia, tiktok owned by china's. >> that's right. chinese one billion dollar acquisition which it then turned into tiktok is reportedly under review by the treasury committee on foreign investment in the u.s. just last week, chuck schumer and tom cotton called for a national security probe of the company on concerns about its collection of user data and the possibility for directive censorship on the platform it's worth noting the tiktok app is one of the fastest growing social media platforms it's been downloaded over 110 million times in the u.s. alone since relaunching last august. tiktok telling us quote while we cannot comment on ongoing regulatory processes, tiktok has made clear that we have no higher priority than earning the trust of users and regulators in the u.s. part of that effort includes working with congress and we are committed to doing so a treasury spokesperson tells us that it does not comment on

information regarding specific cases. but it's certainly going to be a hot topic as tiktok faces all this regulatory scrutiny kelly. >> any chance it will get shut down for u.s. users, julia >> well, tiktok has been very adamant. you know, we've talked to them about this in the past it's been very adamant that it praetds separately here in the u.s. it's gotten so popular so quickly, i think especially with all the scrutiny of facebook and twitter and all the different issues whether it's around speech or privacy, it's not surprising it's drawing this kind of scrutiny especially, considering the trade war with china so i think what's going to happen right now is it tiktok is really going to try to show it's operating separately than bite dance. >> we'll see again, julia, thanks very much jul julia boorstin with that news for us here's what else is ahead on "the exchange. coming up, leon cooperman goes after elizabeth warren over her attack on billionaires and says she's warping facts and misguiding but is his anger playing in her

hands? plus, apple's streaming service officially launches today. we'll talk about the one luxury apple has that could spell trouble for netflix. and berkshire hathaway is underperforming big time this year and some big bets aren't paying off ♪ this is "the exchange" on cnbc ♪ ♪ ♪ ♪ ♪ ♪ ♪

welcome back the war of words heating up between billionaire leon cooperman and democratic presidential candidate elizabeth warren cooperman got in the first shot a few weeks ago on squawk box warning her presidency would sink the stock market. then warren hit back on twitter. now, cooperman has written an open letter slamming warren for her class warfare saying however much it resonates with your base, your vilification of the rich is misguided, ignoring thing -- joining me now is former new hampshire senator judd greg. and cnbc's political finance reporter brian schwartz. >> she went back to her favorite go to to have statements against billionaires and basically, she went back to the same old statement she's been saying to mr. cooperman, which is to pitch in more. and now, you could argue the

next response came just the next day, which is this medicare for all payment plan. >> that's right. this morning. >> right where she is now calling for the wealth, you know, millionaire tax. she says she's going to double that in order to pay for this medicare for all plan she argues will not raise taxes of the middle class so it's kind of like a dual response in a way for senator elizabeth warren. >> right and to show here's what my tax plan would do for everybody else senator greg, i'm curious who you think has the tone and atmosphere of the country right here i mean, is it elizabeth warren who, you know, people -- even people who don't -- who would agree i'm trying to say with leon cooperman would warn him and say you're playing right into her hands now, she can wave this letter around and say, look, another billionaire upset with my policies because they know people probably won't take the time to read the whole thing. >> i don't think either of them have the tone of the nation to be very honest with you. i mean, elizabeth warren's running as a socialist and this medicare for all plan she

estimates at $20 trillion. the actual estimate, the honest estimate's about 30 to $35 trillion and there's no way you could pay for that with taxes on everyone at a very high level and, in fact, if you look at how much -- it's interesting -- if you look at all the taxes raised in the united states since we started collecting taxes in 1789, it's about $40 trillion. so she's basically suggesting a program which is going to exceed half of what we've raised in taxes over 230 years or 250 years. >> and yet, senator -- >> it's incredible. >> -- she's arguably the front-runner right now that doesn't happen for nothing, right? i mean, is it just the nature of this stage of the campaign or is she going to be like trump was in 2016 where people said, well, there's no way this is going to be the candidate and not only was he, he won. >> i think the issue is that she is the front-runner because she

has caught the popular sway, which has great antagonism and anger as trump did on our side of the aisle but i don't think that -- and she may get the nomination but i don't think america's a socialist nation yet i think it's still a pretty centered nation. >> brian, the one thing people keep watching for is if she does become the front-runner, if she becomes the candidate, how will she soften her positions you're right that today is a really interesting case where when placed under scrutiny and under a direct broad side from the other side of the aisle so to speak, she doubles down on her medicare for all plan, which is one of the most controversial parts of her policies. >> that's right. it doesn't look like she's softening her positions any time soon i mean, that's just based on all the things she's been doing in recent weeks, including today's medicare for all plan. let's just be clear about a few things i mean, you know, wall street and big businesses were afraid of another candidate back in the day and that was donald trump. they thought when he was going to come into office, you know,

he was going to shake things up and it would hurt their businesses including election night when the market tanked for a bit and came back. in the letter that leon cooperman sent to elizabeth warren, he mentioned another billionaire. he said came from the ground up and that was karl icon and he on election night actually bought shares and made a lot of money so there's been -- there's been -- you know, with different candidates, it seems like there's always this reaction from wall street more of the establishment class. >> right. >> and elizabeth warren is basical basically shrugging this off and saying, oh well. we're going to keep pulling ahead here and the question -- the question from, you know, donors and investors who keep an eye on these things is, is she ever going to kind of turn to the middle a little bit if she gets the nomination and it just doesn't seem like she wants to go there. you know, and i don't see it changing anytime soon. >> all right senator, we got to go. but who do you think, if neither one of these people in your mind does capture the mood of the country, who does right now?

anybody? >> well, i think you've got some thoughtful people running the democratic primary i'm not a democrat so i'm not supporting them but people like amyklobuchar, mike bennett, even the vice president. these folks aren't way out there. they aren't suggesting that we basically abandon our market approach to the -- to the way we do our economics in this country. they're not giving up on america's prosperity or america being the land of opportunity. obviously, they have very liberal views but they're rational liberal views so i think any one of those candidates is a much more -- much more viable candidate than elizabeth warren is. elizabeth warren may be one of the few people that donald trump can beat. >> well, we'll see certainly, the other candidates are not leading the polls right now but there's still a lot of time senator greg, thank you. leon cooperman's full letter to warren is on cnbc.com and you don't want to miss lee cooperman on the "halftime report" on monday at noon eastern time. let's get straight to kayla tausche. >> well, telly, there was a

principals call. said that the two sides reached consensus on principles. it said the two sides discussed the next consultation arrangements from china's side, the call was notably conducted by hard liners from the ministry of commerce, the central bank, as well as from the reform commission we're also getting a statement from the u.s. side from the office of the u.s. trade representative who simply said that the call made progress in a variety of areas and that the two sides are in the process of resolving outstanding issues. so a little bit of a difference in language here the u.s. tr statement says discussions will continue at the deputy level and calls today's call constructive. kelly, the news we still don't have is where exactly that meeting between president trump and president xi will be held. as recently as yesterday, president trump said they are on track to sign this phase one deal. >> markets hangening on to near session highs here kayla, thanks very much. kayla tausche. dow's up 254 points.

coming up, the race for 5g heating up with china's next gen networks launching ahead of schedule today can the u.s. catch up? plus, pinterest is on pace for its worst day ever on a revenue miss and a disappointing forecast are investors overreacting or does the company have a major u.s. problem that's all ahead we're back in two. but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine, no matter what. it's unbelievable what you can do in the prius. toyota let's go places.

welcome back to "the exchange." let's get to sue herera for our cnbc news update hi, sue. >> hello, kelly. hello, everyone. here's what's happening this

hour capital one experiencing technical troubles today in a tweet this morning, the bank said some customers were experiencing an online outage preventing them from accessing their accounts and impacting direct deposits. capital one said it was actively working to resolve the issue and apologized for inconvenience heavy rain and strong winds in buffalo have caused wide spread damage and forced evacuations. some people had to be rescued from a flooded viaduct and firefighters pulled a man and woman from a pick up truck julian castro says he has reached his $800,000 fundraising goal 12 days ago, he warned that he needed the money by the end of october or his presidential bid could be finished. the campaign raised more than $1 million from 50,000 donors and the washington nationals are headed to the white house. they return from texas last night to a appreciative fans after beating the houston astros in seven games to win the world series president trump will host the

team on monday you are up to date kelly, that's the news update this hour. back to you guys. >> thank you very much and here's what's straight ahead on "the exchange." >> coming up, investors are fleeing pinterest today. berkshire's under performance begins to draw investor attention. starbucks launches a tiny store. and did the u.s. just fall 5gy behind china in that's all ahead on "the exchange." le, not a bank. with a better way to track where you spend. a new level of privacy and security. daily cash you get back every day. and no fees. not even hidden ones. oh, and if you happen to be somewhere that doesn't accept apple pay yet, there's this. nice.

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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 to break down the headlines. and first up, some pinterest the shares are plummeting today on a revenue miss and weak full year guidance. on pace for its worst day ever since going public earlier this year at 19 bucks a share and that's roughly where it's round trip to now. just under $121 today but the u.s. user count is what has everybody a little concerned. >> i actually covered the earnings last night and one analyst told me essentially

investors were looking for a bigger top line. so even despite all the things you said, apparently now investors are a lot more concerned about earnings and not just how much revenue you're making. >> they want profits what is wrong with these people? >> they do feel less forgiving of the ipos now. don't they after everything that's happened the last few months. >> absolutely. there's been a huge sea change i mean, this is what 37 or 40% growth of sales in the quarter. they've got this terrific plan to monetize, do shopping to get small businesses which i think works so well for prin test if they can get that going. >> in fact, as a user, i've been -- >> i know. i want to buy something and there's nothing to buy so i think, like, everything else is great and then you look at the plan for a loss this year and investors want to see earnings. >> not profitable. >> yeah. i looked at the numbers because i thought the shares are down so much, it must have been terrible and it's like, well, wait a minute the revenue missed by $1 million. you know, the -- the -- the full year outlook was basically in line and the average revenue per user

was 90 cents so yes, i understand it's u.s. users in particular that dropped 8% and maybe everyone's worried about but this was hardly the disaster of a quarter on the surface at least that we've seen from other companies. >> i had the exact same reaction to the numbers i was like this doesn't look bad. but when you have a whisper number out there and you don't meet it, coupled with the fact that there is an impatience for companies that aren't making money right now across the board, the company's in a bad spot today obviously. >> yeah. they want to see more. especially, on the u.s. side well, it's up to them. roll out that shopping more quickly. me and robert are ready. >> we're ready to pin and shop. >> we're ready. >> next, u.s. pharma giant amgen announcing a big deal today to expand its pipeline in the world's second largest pharma market drum roll please it's china meg, you've been following the story and everything u.s./china related to me these days bears close watching. >> it's really fas fas nighting. i spoke with both the companies yesterday and the reaction from the bio tech industry has nothing to do with u.s./china relations or anything like that. they are just focusing on the fact that china is a huge market for drugs and it's growing

and every company wants to have a bigger presence there. and there's a couple reasons why china's becoming more appealing. it's not just because there are so many people there but they are changing the way they do clinical trials. they are trying to get more internationally plugged in so that you can use data you generate in china potentially overseas to file for approval for drugs. plus, they are starting to update the way they reimburse for novel medicines. new medicines. not just generic drugs every year so they're adding more and more drugs to the national reimbur reimburseme reimbursement list and that is extending the reach of these novel medicines to more and more people in china and not just the 1%. >> so if you're amgen, why is it -- what are they looking to do here by this 20% stake? is it to directly get its drugs into the hands of the chinese market is it just to kind of have a seat at the table for some of the investments that you described? >> all of the babove. >> yeah. >> beijing is an established company in china they have a partnership to sell cancer drugs and they're entirely cancer drug focused so this deal has a couple parts. they're going to be selling

three of amgen's medicines in china and then they're going to work together to co-develop medicines. >> there was kind of a creepy side to this that i wondered is it easier to do masculinecs clil trials in china because they don't care as much about the impact on people as it is in the u.s. and therefore, is that data, the ability to do human trials faster and a larger scale, is that attractive to companies? >> that's a good question and i think joining these sort of international consortiums would aim to alleviate concerns that there would be lower rigor. >> but in the past, has it been easier for drug companies to do trials in china? >> china isn't one that i heard talked about like that it's some eastern european countries sometimes people raise questions about. but you also don't hear about using data generated in china. >> yeah. >> and now, that could potentially be changing. >> yeah. i don't know for them to be going this route in a time when there's big

questions. we talk about u.s./china decoupling and yet amgen's clearly not worried about decoupling they're coupling they're consciously coupling. >> they are coupling. >> said they've been following the trade talks very closely but this is not about that this is purely about solving cancer. >> interesting all right. then this. warren buffett's berkshire hathaway on pace for its worst year since 2009. it's about 5% compared with s&p's 29% game he grew tired of buffett sitting on his massive cash horde. are people questioning or does this raise questions because the oracle is in his advanced age, robert, and now a lot of these choices, right, are probably reflected by the next generation of leadership. >> i think it goes back to the old warren buffett saying, which is when others are greedy, be fearful. when others are fearful, be greedy and look, we've had 11 years, 12 years, whatever it is of people being greedy, making money, markets going higher

valuations going way beyond the comfort level of any value investor and so he's sitting back and saying there's nothing worth buying plus, he's been bitten by the kraft heinz deal, which once he has admitted overpaying for that, it's really tough to work up the courage to then do something as big and move the needle -- >> and the rails i mean, rails been the weakest part of the economy. >> investments have been tough there's not a lot of the sides of his business doing well right now to offset this cash that's just sitting there investors either want him to buy back shares or buy something big. to his credit, we may look back two or three years from now saying that's why he's warren buffett because he didn't go out and buy something overpriced right now. >> this is not quite like the late '90s. i mean, remember he was under massive fire then. he said bankly i'm out i'm not participating in this dot com mania. it took him years to be proven right on that. but in this case, he owns apple, rahel.

he talked about how he kind of wishes he had owned amazon from the start. >> i think one other thing that's also really interesting is the insurance state seeing it's become a little more of a lit jus environment. now, i haven't been in an accident in a long time, i also don't own a car but, you know, just interesting that people are getting a little bit more litigous. >> so you're right he's feeling blow on a number of fronts but all right we won't call it existential just yet finally, starbucks newest store apparently leaves very little room for disappointment or much of anything else actually. the company announcing its first ever starbucks pick up store opening in new york city on tuesday. here's a look. there's no menu board. no pastry case it's only 300 square feet of space for customers. n now, it actually is kind of similar to its rival coffees blueprint in china this store, which we are going to see more of across country is just meant for customers to pick

up their online orders and head right back out starbucks says it plans to open similar spots in boston, chicago, l.a. >> i love it i want my coffee as soon as possible i do not want to hang around. >> but here's where they copped out. we all talked about this this is so exciting. you don't have to stand in line where the person in front of you says, well, do i want a macchiato? but they are allowing walk ups to this. they copped out. >> i mean, you can't not you got to go all the way. >> go all digital. no wait. >> starbucks around the corner that will take you at the counter. >> it's totally like the hair salon, right you have to have an appointment but you can't completely turn away walk-ins. i mean, that is turning away free money. >> at least at the hair salon, he can this say we're full you have to wait a while i think it's interesting to say what if things were just complimentary -- almost like if you have a grocery store and the wine store next door i mean, could you pair them. you're right, like if you want to go walk up, you can walk up

they could double their store count just by opening these in and out spots. >> you have so many starbucks locations,ively like they are well conserserved this is part of star buck's overall strategy to bring people exactly what they want they're pursuing delivery of coffee i'm like how do they keep their coffee hot to do that? as a suburban person who bought my first car last year, i love starbucks drive through. >> it causes traffic jams in our town by the way. no left turn signs cones everywhere. >> trying to shrink the store size and shrink the staff. you do that with small stores that are just digital, on the phone. that's why they're trying to get rid of the whole physical store presence and i think the only way to do that is just say, look, for this store in particular, there's another one three blocks away. but this one is just your phone. >> that would cause pandemonium. that would cause so much chaos. >> okay. the first time you have to wait behind someone ordering venti whatever, we're going to see if

you change your mind thank you guys apple tv plus goes live today with offerings from the likes of reece witherspoon, jennifer aniston, and jason momoa will their premium content be enough to take on netflix sheer volume of offerings? take a look at oil now -- on principals after trade talks. hanging on to a 260-point gain right now. we're back in two. t cover every- only about 80% of your part b medicare costs, which means you may have to pay for the rest. that's where medicare supplement insurance comes in: to help pay for some of what medicare doesn't. learn how an aarp medicare supplement insurance plan, insured by united healthcare insurance company might be the right choice for you. a free decision guide is a great place to start. call today to request yours. so what makes an aarp medicare supplement plan unique?

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a medicare supplement plan may help pay for some of the rest. two: this type of plan allows you to keep your doctor - as long as he or she accepts medicare patients. and three: these are the only medicare supplement plans endorsed by aarp. learn more about why you should choose an aarp medicare supplement plan. call today for a free guide. welcome back once again, broken record. apple shares are hitting a new all-time high today. they're now up 78% since cutting their first quarter revenue guidance way back on january 3rd. and with apple launching its new streaming service today, it could end up having a pretty good head start in the streaming wars says apple could sell 285 million products next year remember, any new product will come with a free year of apple tv meanwhile, our own alex sherman is reporting that nbc is now

leaning toward making an ad-supported version of its peacock streaming service that would now be free to everyone. for more, i'm joined by trip nickel, a reporter at the wall street journal who covers apple. along with julia boorstin. trip, i thought it was interesting given that massive device count, you know, customers that they would have getting apple tv for free. you think they're starting as the underdog here. why? >> you know, they're not quite the underdog but they are behaving differently than apple has historically, right? they're coming to the -- to the streaming wars with fewer shows. and a lower price. i mean, when have you ever seen apple be the low-price provider in any kind of competition and so it just reshapes the way we have to think about apple and what it's offering and -- and what it's offering is 900 million iphones and getting this service in front of as many people as possible. >> and, julia, it's interesting to tally up now and, you know, i need a flow chart here and a spread sheet to follow which

services i get for free with what so amazon prime video. okay i get that with my prime subscription apple tv plus. okay i get that free if i buy some hardware disney plus. i get that free if i'm a verizon customer peacock. i guess i'll get that free next year but it comes with ads hbo max. do i get that free anywhere? >> it depends if you're already subscribing for hbo and already an at&t subscriber i think it's worth noting apple is taking unique strategies. so many of these players, netflix, hbo, they're focused on the library of content having a real depth of volume of c content. apple's launching with only nine titles but the intention is for all those nine titles to be super premium, high end with big hollywood names. at the same time, they will continue to add more -- more content over the course of time. but i just want to mention what you said, kelly, about peacock now considering being free for everyone with ads. this is such a crowded space, as you just mentioned in terms for streaming video on demand.

to add to the equation offered for free would show nbc universal, nbc's parent company, deciding to go in a really different direction. noting that this -- this space for paid subscriptions is so crowded. >> is full yeah. >> why not offer it for free and zig where others are zaging. >> how much does this mean to apple? let's say next year people are basically not paying for this. they must be operating at some kind of loss how deep are their pockets how much are they willing to lose to build this business? >> apple has the deepest pockets in tech. i mean, they have $100 billion in cash on hand. so there's -- there's no shortage of cash to help offset some of this there is going to be increasing scrutiny on cost for them. we've seen profits go down all four of the most recent quarters and that's going to, you know, catch some investor interest at some point presumably. the one thing i did want to mention about this, though, is that the more contenders, the better in some ways for apple because they're not only looking

to offer their own shows, they want to syphon 15% off of what people pay for hbo, for some of the other offerings out there. and so -- so their shows kind of serve as a magnet to get people to come into apple tv the app and then subscribe to others as well. >> sure. and julia, we know that even netflix, which is, you know, if you were to say, okay, well, is there a pure play that doesn't have deep pockets? you know, to lose money here it is netflix. and even reid hastings has said he thinks the competition is good because it just means that consumers on mass are moving away from old tv on to these new platforms. but he better be right about that i mean, they have a very high debt load and you've got needham out there saying they're going to lose 10 million subscribers next month, netflix is if they don't offer video on demand choice in the 4 to $7 range. >> yes consider adding advertising, which is something reid hastings has said they don't want to do

they don't want to do sports and they don't want to do advertising. but i think what you're raising here is this idea that netflix may have been first to market but now it is an incredibly crowded market what hastings is really hoping on is that all these new entrance accelerate this push to direct to consumer options maybe that means more cord cutting. but the question is, if people are going to be creating their own bundles and piecing together their own packages, whether it's netflix plus a couple other things or maybe it's disney plus hulu plus espn plus. how many people will really want to subscribe to? and at some point, they're not going to be able to subscribe to everything the question is if netflix is the one that goes or one of the other ones. >> for all man kind got much better ratings than the morning show thank you, both. appreciate it today. trip mickle and julia boorstin mortgage rates meantime hitting a three-month high and they could be heading higher after today's data one of the fear of higher rates noll drive people to buy or t buy? we'll big dig into that next

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take a look at markets which are at session highs the dow up 272 that's a 1% gain we're seeing similar increases

across the averages. positive china trade headlines say talks between u.s. and china went well. driving the extra gains we have seen in the last hour or so. the better data which is not only helping the tstock markets rally, it's pushing mortgage rates here they are hitting a three-month high touching 3.86%. they are still a bargain but would they be headed higher on back of better data and jobs report will that jolt people into the housing market or driver them aw away with me is the chief e ceconomis at redfin. how much are rates now we made a big comeback since august >> make no mistake they are still pretty low as we look at them historically. we did see a big jump up in the last couple of weeks and the highst level than three months every time we see rates pop up a

little bit, that drops several million people out of the refinance population that's because so many people already have low interest rate lows when you talk about people who want to save money, this is knocking people out. even the small moves higher. >> daryl, how sensitive to you think buyers will be to a slight increase in the mortgage rate. very sensitive or not at all >> homeowners have a lot to consider when it comes to buying a home it's what they think about their personal income, employment situation and how likely they are to find the home that's right for them while mortgage rates impact a little bit i think what's more important is the fact the economy seems to be doing better than people expected and that matters more to people. >> dana, you agree with that in the trends overall speaking are positive we know there's been a shortage of housing and pent up factors can that keep the good vibes going? >> i think another problem that you have to consider is that the

low mortgage rates that we've had over the past year have really reduced home prices when you have mortgage rates going higher and home prices heating up again we saw the increases in home prices gain rather than shrink last month we're seeing the acceleration in home prices. if we see mortgage rates are moving higher that will knock a couple of people out or make people look at lower price homes or say i'll get in some before rates go higher. the affordability issue is still a big deal in the market today wil when you see that rates go up you'll really knock people out >> is it helpful many the longer run because higher rates make take wind out to have sails but that's the only way people can continue to afford housing >> when people think that rates will go up that might give them the push to lock in that home now before they go up higher it can be good in the short

term most of demand is for homes that are affordable that competition heats up, that pushes prices even higher. >> right i guess i'm just saying maybe because take a little bit of that wind out of the sails if you want to people to afford them we'll see how these higher rates do play out. housing has been one of the better part of the economy the last couple of months. thank you both talking about the state of housing for us china's three mayor wireless carriers offer 5g services and are poised to spntri ahead what it means if china wins the 5g race is next. and there are things we wouldn't. ♪ when work is worth it. work is worth it. work can be closer to home... pay more...

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no matter what. it's unbelievable what you can do in the prius. toyota let's go places. available to customers and could soon be pulling ahead of the u.s. in terms of 5g offerings. joshua joins me with this story and the implications >> china has hit that 5g switch. it's three big state owned wireless carrcarriers. china mobile, telecom and downcome making 5grk services available to customers that means if earlier adopted,

china had 5g enabled hand sets that should mean faster access from everything to video from games to vr applications investors focussed on 5g too mitch steve says names that capitalize on that trim would include qualcomm, marvel steve says analog devices would be his top pick. this week i asked tim cook if he seen any availability impacted demand for his phone cook telling me he has not calling the 5g market in his words, nascent it might not be for long there's going to be 120 million 5g subscribers in china by the end of 2020. back to you. >> got to give huwei a big competitive advantage. >> it's interesting. you would think it could benefit the big tech powerhouses like

huwei. one question is will they be able to secure the products they need to meet demand now that they are on the american blacklist. >> thank you josh lip ton on that big day in china. that does it for the exchange today. i'm going to have baby i'll see you in march. first i'll see you in power lunch which starts now i was going to say you got an hour still. we will see you in just a moment i'm melissa. here is what's new stocks are off to the races. the session highs after a strong jobs report wiping off yesterday's losses and then some will it be a november to remember american airlines flight attendants are fighting back saying they will not fly on boeing 737 max even if it is approved for take off. we'll tell you why boeing could be stuck in the eye of the storm for quite some time. carson block slamming the nba and lebron james for not standing to ining up to china.