rogers >> we talked about a lot of things >> gwre. staying long >> okay. the dow is up 58 thanks for watching. the exchange begins right now. roy rogers welcome, everyone. here's what's ahead. the markets may be at records but just 10% of the s&p 500 stocks are hitting all time highs and the technicals are not paining such a rosy picture. we'll speak to the ceo of charles schwab about the future of the company and the industry. and taking off the first analyst to cover virgin galactic says this stock is set to head out of this wore. he'll join us to make his case we begin with another record day on wall street >> i do have the numbers i will clarify, i did not know if you were talking about the restaurant or the coca-cola drink with grenadine poured into

it it was a record high for the particular stocks on the dow also the nasdaq composite, a high as well those two made those highs at the high of the day, the dow industrials. we want to focus on the groups uber having a really rough day shake shack, a hot stock the renaissance ipo, the ticker ipo is up about 12% over the past 12 months just about in line with the s&p 500. however, we have seen a convergence as you can see here. very close to total performance. we have outperformance in the overall at 1 point over the course of the past year so it has narrowed quite a bit we'll watch that in light of uber and then stock of the day. you heard it before. shake shack shares on pace for

almost a 20% decline this is a stock that went public in 2015 at $21 a share it got as high as $105 and change at its record highs a couple months ago. shake shack, a huge downturn we'll see if that sticks >> all right thank you. welcome to the exchange. the markets continue to hit new highs. cnbc talked to some of the biggest heavyweights about where we are and what could be ahead >> the consumer, 70% of gdp is quite strong how is it in short supply? credited quite good? the business side, you know, it has dropped dramatically camp x has drop. so how they should invest and slow it down and probably slow down the economy a little bit. >> i don't think it looks like the will be a recession in 2020. i think there's enough strength in the economy to go past 2020 >> you can't lower interest

rates anymore. there's been a lot of principling of money and as a result investors are very flush with money so they're taking very low returns and they also are buying dreams rather than earnings and stocks. >> let's bring in marianne, portfolio manager, and liz, director of market strategy. ladies, welcome to you both. i'll start off with you. it sounds like you think the market is pricing a whole lot to go right at this point >> hi. thanks for having me >> i do think the market is pricing in the expectation of a minor trade deal we're pricing in the expectation of an earnings recovery. the big risk here is that some of the expectations don't actually document fruition as we bottom probably in earnings growth in the third quarter, we need earnings to come in stronger in the fourth quarter. we need to it stay put or get

better >> you know the bond market is sending a risk on message when it comes to yields right now, 1.86% german bonds are the highest it's seen. do you believe these signals do you think liz is being too cautious >> no. i think liz is correct in talking about the concerns however, we do think that the earnings improvement is there. we think that it is coming overseas as well in developed markets and emerging markets that's why the risk on trade is moving to the overseas markets as well as away from just the u.s. large cap growth stocks that have been working most of this year. >> and you like emerging markets at this point. >> right i do think that the actions by the central banks are starting to improve the economies overseas and it is the germans as well as the emerging markets so it's a good part of the total

global situation and that's where we like the emerging market bonds probably the best we do think that those local currency bonds are going to return more than just the stated yield. we think the currencies are strengthening against the u.s. dollar so you're going to get that currency contribution as well. >> it sounds like you're cautious but at the same time you're still buying into the rotation that we've seen some of the underloved areas are really catching bids in the last couple days like energy, materials, et cetera but you like everything. can you explain the strategy >> through the point of this, up until the point of this year, we've seen a lot of the defensive sectors come in and shine. that's been because investors have been waiting for the next shoe to drop in the economy. we've been positioning for recession. now here we are with less than

two months to go and there's been no recession and no solid signs of a recession now you're seeing the cyclicals and some of the unloved sectors come back in and play catch-up and i think they could continue too that through the end of the year the important thing is that even though there are down side risks and we think that the down side risks have increased, you have to be present to win and it's okay to own cyclicals here okay to own growth and value but i think you have to be in the market to take part in it. >> what do you do with the defensives list like the staples, utilities that some may say are overvalued at this point? >> i think you still own them. what we expect to happen in 2020 is a little uptick in price volatility some of those defensive that's pay a dividend will help with that volatility. still kick out a little return but they give more protection on the down side. >> all right thank you.

>> thank you to the latest in the 737 max fallout, getting a vote of confidence from the company's chairman the shares taking leg higher on that news. calhoun spoke with our report here joins us now. that seems to be the real message. >> they're emphatic that mullenberg is not going anywhere with you they had some news that they shared with us. dave calhoun, he said, look, dennis mullenberg has waved most of his compensation. be only for 2019 but beyond. last year he made just over $23 million. now, almost 90% of that was through the performance bonus as well as stock awards he's not getting those for 2019. and then he's not going to take them until the max deliveries are caught up which may not be until early 2021 here's what dave calhoun had to say about their feelings about mullenburg >> from the vantage point of our board. he's done everything right

from the beginning from the beginning remember, dennis didn't create this problem but from the beginning, he knew that m-cast should and could be done better and he's led a program to rewrite it. to alleviate all of those conditions that ultimately beset two unfortunate crews and the families and victims no one was hiding anything it was a set of engineering decisions that ended up boeing wrong. our job is to make sure whatever jobs we have, that those processes never allow for this to happen again. that that assumption just because history suggested it, just because history and the records suggested that turned out it wasn't right and we have to test that every day >> make no mistake dave calhoun and the board of directors, they are well aware of the feelings not only on

capitol hill but also how many investors feel their focus right now, getting them back in service it likely happens in december and then after that, you have all of these planes that have been grounded and parked they need to be delivered. and it will take some time once certification happens, if it happens by the end of the yeartion for all the planes to be delivered >> i understand intellectually that the company stands by dennis mullenburg. i think that congress will call for his resignation in some way. when you look at past scandals and jim hall raised this in an interview on power lunch, they saw five ceos sxom go during that time per. dave calhoun and the strong performance on squawk box with you this morning seemed to me almost like, hey, if there is a transition ahead, it will be smooth saying. this guy has got it. >> i think so. let's be clear here. this was 100% emphatic, dennis

mullenburg is not going anywhere if that changes in a month or two because there are more hearings on capitol hill, and there may be more hearings on capitol hill, then they'll address that at that that's what they're looking to hear he was very forthright saying, i hear what they're saying >> yes that was a strong performance. here's what else is ahead on the exchange >> coming up, zero commissions, fractional stock buying and a pivot toward advising. we'll look at the future of charles schwab with the company's ceo. plus, to infinity and beyond the analyst that says virgin galactic will rally 107% he'll tell us why he's so bullish. and the indices are at all time highs. the number of stocks following

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charles schwab's client assets hit a record high now totalling more than $3.77

trillion last month it joined the race to zero stop charging commissions for all u.s. stock and addressed plans to allow fractional investing in a bid to draw more clients. live at the annual impact conference, and she joins us now. sharon >> thank you we are here at the schwab impact conference and 4,600 people here. 2,200 advisers a big conference that everyone is talking that and everyone is talking about the commission-free trading. where do we stand one month into it >> it has been a positive reaction, of course. i think when we look at our strategy of zero commissions, we measure it in years and even decades. not just months. the markets reacted in a positive way and i think even those who follow our stock realize, this was a move that made a lot of sense for clients but also long term for our stockholders. >> the advisers are talking about how they believe it is generating more activity is it generating more activity

as far as you're seeing? what is the impact on revenue? >> we are seeing a pick-up in activity among investors we'll look at this from a long term standpoint. this was a decision that has been borne out of 20 years of planning this was nothing we did out of a snap type of move. we're giving up a couple percent of revenue but we're a very well growing company. no real impact to us from a financial standpoint that we think has anything in the long material >> there was an initial impact on charles schwab's stock. announcing commission-free trading. the impact now seems to be a recovery as people understand more and more in the marketplace doing this >> well, i think there's a history here of schwab consistently disrumming the marketplace on behalf of the consumer every time we've done that, it has led to more growth and successful it start 45 years ago when others were charging hundreds of dollars for a trade and chuck came out at $70.

we'll keep disrumming as long as we can do it in a way that is good for the investor. >> and now allowing people to buy a fraction of the stock. they can't buy a full share of amazon they buy part of it. what was the impetus to announce that and when will it take effect >> we want to open investing to it's many people as possible many companies have allowed their stock prices to grow without splitting shares something that may have been more common in years past. so oftentimes, newer, stronger investors struggle to invest in the companies they want to invest in. so fractional shares is along the line skin with the strategy. opening up investing to asle people as we possibly can. >> let's talk about advisory business a bit there is a question of, now that there is loss revenue from the commission trading, what is happening in terms of other areas and the push toward the advisory business? will we see higher fees in that area to make up for this what's happening there

>> that's not our plan we're here to serve independent advisers and help them grow their business successfully, serving a noont and network investors. we have no plans to extract more economic value we want to help them be more competitive. help them grow even faster and wednesday zero commissions helps in that cause. >> and you have another announcement that you made last month that affects that investment adviser community that's with the marketplace. what is that when will that launch and who is affected >> sure. alternative investments are part of the network they compete with firms who often have alternative investments on the show. so what we want to do was create a best in plastic opportunity for these independent advisers who serve as a fiduciary to their clients to have access to great product that is in the alternative space. >> and in accept, we have to

talk about this. you did announce there would be 600 layoffs. where do we stand now? >> there's nothing that i will have to sign off on that is more difficult than the decision around layoffs it is in no way as difficult as the people actually impacted by that we had grown our work force quite substantially. doubling it to over 20,000 employees. when the federal reserve made the decision to reduce rates from a traming ektory where we thought rates would be going up, we had too many people and too much expense relative to the revenue that our clients were generating we had to make that difficult decision fortunately, i think we're past that and we don't anticipate revisiting that in the near term >> all right thank you very much. i appreciate it. thank you for being here and having us at this conference as well joining me here at this san diego convention center.

back to you. >> thank you very much coming up, the consumer may still be spending in many areas of the economy when it comes to travel, it's a different story. i'll look at how big of a problem that could become. plus, the cnbc investigation how real items really are. por nge weluas we could you be down to the big event. k. just ok? tell him we need this merger. it's happening..! just ok is not ok. especially when it comes to your network. at&t is america's best wireless network according to america's biggest test. now with 5g evolution. the first step to 5g. more for your thing. that's our thing.

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you see a mixed bag there, pretty much hugging the flat line the s&p 500 just off fractionally 7 points off the record highs that we saw yesterday. beyond the record highs that we've been riding, a much broader breakout could be just around the corner. >> only 10% of the s&p is at a new high but that could be about to change. a significant number are 3% below the new highs. close enough so a broader move could produce a big expansion. so big name including the well known names in the pharmaceutical space you see it here. big discounters, walmart and ross stores also are just very short of new highs as well elsewhere, home improvement

names like home depot also very close to new highs energy has also had a big rally. semiconductors also. just 2 or 3% some of this may be due to tax law selling. we've had a nice rally in energy stocks in the last couple days you put it all together. it means the market is rotating. the big cap leader is fading they're off their earlier highs. they're replace bid a new crop banks, energy and small cap stocks this is classic value play that we're seeing right now >> all right thank you. now let's get to sue herrera >> hello, here's what's happening at this hour turkey says it has captured the elder sister of slain isis leader abu bakr al-baghdadi. she was detained near the town

of azaz. a turkish official said she is suspected of being affiliated with isis. at&t has reached a settlement with the fcc over claim it misled consumers. it will pay $60 million for charging for unlimited data plans while reducing their data speeds the money will provide refunds to customers who signed up for the plans. at least one person was injured in a traffic accident involving a philadelphia school bus. it was rear ended by a passing suv earlier this morning firefighters had to work to free the suv driver from that vehicle. and more evidence of what is good for the body is good for the brain. a study from mass general hospital tracked 8,000 adults and it shows people who exercise more were less likely to be diagnosed with depression. physical activity was even protective for those with a high genetic risk for depression. so we all have to get up and move that's the news. >> good for so many reasons.

here's what else is coming up on the exchange ahead, facebook wants to take over your tv. the bad headlines continue for juul forget a math or english tutor how about a fort knight tutor? and the one sector where the consumer is arngstti to show cracks that's all ahead on the exchange staffing a small business is challenging.

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welcome back it's time for rapid fire here with their takes, our first topic of the day, uber plunging and hitting a record interday low. now down 37% from the ipo price. the company beating estimates but record quarterly losses of more than $1 billion uber ceo telling cnbc, it is targeting profitability by 2021. the lockup period ends tomorrow. that lockup period will be huge. up to 90% of shares outstanding are eligible for trade according to some estimates. >> even though stock is nowhere near its ipo of last may, it has gone down. this is all short term noise from my perspective. i don't know

am i in the minority i think uber is on track it is doing the right thing. >> but a loss of over $1 billion? we talk about unicorns which are companies valued over $1 billion. what do you warm to call a company that's losing $1 billion? >> i think it is interesting the shift they're trying to make to make it more fish. trying to get people to walk somewhere to have a more convenient pick-up or to wait longer. >> isn't that called a bus >> it's a car pool there's a whole conversation about how to make uber more efficient without having to make consumers pay the cost financially. maybe get them to pay with their time and i think that's how they'll have the service going forward it is only the third biggest loss 5.2 billion was the loss last quarter. >> one interesting thing, more in my world. it broke out in uber eats and uber freight should it just be a pure ride share company? they say they can be profit has

not just doing that. meanwhile they're investing in delivery grub hub and door dash already have two-thirds of the market so they're trying to enter a market with amazon. if amazon can't succeed, why do you think you can succeed? >> i would use amazon as a prototype for what uber is going through. how many years did we say they're losing money, losing money, when will they become profitable in the meantime, they continue to grow. the other divisions are growing very, very well right now. freight, eats, some of the other divisions. >> they're losing money. >> but they have to grow somehow. >> isn't there a sense of how they might work together drop off a customer and drop off food at the same time? >> it smells like chicken fried rice >> i don't know if that's a bad thing. >> topic number two. facebook is coming for your television the social media giant has begun shipping a portal tv camera.

streaming apps like amazon prime video and facebook watch so what is the end goal for this device >> well, this is a $150 device focused on communication this is about face timing from your couch there is a camera on this device that watches you, it will track your movements around the room and our colleague gave a rave review he said it really made him feel like he was talking in the same room with his family this is about facebook moving on to a new platform. trying to convince its users that they want to access facebook services on this new screen on the biggest screen in your house. down the line that could really be about accessing this advertising market on connected tvs and that's a real money maker. >> so they make money by selling it right now i don't see how they'll monetize this an ad in the corner when you're talking to mom on the television >> they want facebook to be your home screen for everything just like on the facebook app,

on your phone, you can do facebook watchful you can watch videos eventually if you're watching facebook watch on tv, there could be ads in there. or etss ltlet's say you'll be tg and remember, even though this is down the line, mark zuckerberg has talked about eventually they want to figure out how the monetize messaging the same way they monetize the news feed. don't worry about ads in this experience now but down the line it could be potentially very valuable. >> i'm not sure. i'm skeptical. this reminds me in the '90s in the dot com boom, coils were coming up with answers where there was no questions was there a chance to begin with i don't know she said it is about face timing people apple already does it. why would i pay $150 for something that duplicates something that i already have? >> such a big screen in your living room. >> i'm more concerned about the privacy worries. what happens with that little camera in your living room when

you're not using it. call me paranoid topic number three troubling new data out today on the use of juul and another vaping product by kids as young as 11. this comes as reuters puts out a major investigative piece about what juul knew about teens getting hooked on their products the stats are insane in terms of the usage. >> i think the most startling stat is that middle school usage has grown over 100% in the last year this is last year where we've seen headlines all over the place that vaping is dangerous and addictive and we're seeing people die from it and there's a chance that people were dying from it before we didn't know how to record it. i think this story is very interesting. a deep dive into it but not a new accusation that juul was taking a page out of the play book of big tobacco. it is not a new accusation this was a whistleblower lawsuit last week that pretty much said the same thing it doesn't look good and i think we'll see juul's valuation under pressure >> 25.7% of middle school students say they've vaped in

the past month >> to me that's upsetting, they were looking at a way to engineer these e-cigarettes so there would be a limit in how much tobacco you could have. like a cigarette burns out over time ned technological ability and they did not include it in the final product. they just wanted people to be addicted that's so gerng the intention of the juul makers. >> the fda fell asleep this. that's very cheer. i was thinking wait a minute we're ringing our hands over the 27% who are smoking today. what about tobacco how many more are smoking regular cigarettes and i looked at the statistics are you ready? 5.8% of high school students are still smoking cigarettes compared to the 27% right now. and last year it was 8.1% smoking cigarettes so that's going down while the other is going up. clearly, that's where they're going. >> and it sounds like it is so much more dangerous than cigarettes >> the fda should know about this before they allow it to be put on the store shelves

right? how simple could that be that. >> i don't want to speak about regulation too much but they will to have pass an fa certification by may of 2020 they have on submit their application. so this will be an opportunity for the fda to decide if these products should stay on the market all right. topic four a fun one. if you're looking to bump up your fortnite skills, you may want to get a tutor. video game coaches whose rates could range from $7.50 an hour to thousands of dollars for blocks of sessions >> this reminds me anybody who plays golf for a living, they were not good enough to play on the tour so they become a teaching pro the same thing is going on with the video gamers one of the stories we were reading this morning they quoted a retired professional gamer there are already people retired from gaming professionally >> a young person's sport.

>> they're too old or not good enough >> the esports market is so enormous what struck me as so funny why would parents want to give their kids a coach maybe they want them on get a scholarship to college and there are 200 u.s. colleges offering around $15 million a year in esports scholarships and that's a dramatic increase that trend is only going higher. so this might be a way to get, your kid might be not so athletic on the field but a little potential just good enough to get this >> you want your kid to be better at math, tennis, you get a coach. same thing with these sports, right? >> this is not the future. this is a way for parent to occupy their kids' times esports is a huge industry a $1.5 trillion industry in 2020 >> it could be a profession. what's wrong with getting a tutor early? >> i see a lot of kids in the gym. their parents have them doing basketball training and shooting through cones. i don't think many will make the nba. the same here.

>> this is 650 million esports viewers expected in a couple years. maybe we need to be training our kids because everyone will be watching >> need is not the right word. >> okay. thank you. let's take a look at shares of wa walgreens which are halted right now. >> thank you reuters is reporting that walgreens is considering going private. the stock has been halted for volatility walgreens, of course, has been one of the one stands alone while cvs acquired aetna to create a more vertical streamlined managed care and retail health system we are seeing different providers to try to leverage the ability for stores for health clinics and other health services as that front sales

situation. they halted on reports from roiters that the company may be considering going private. >> thank you coming up, virgin diplomatic particular down 23% since the ipo a week ago my next guest says the stock is about to rlyal more than 100%. he will make his case. that's next. edule. 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. robinwithout the commission fees. so, you can start investing today wherever you are - even hanging with your dog. so, what are you waiting for?

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take a look at shares, the stock down nearly 5% as the company grows quickly, is it sacrificing quality in the process? andrea day has the investigation. the real question.

>> our goal is to deliver a tremendous value for our new investors. >> she's the founder and control of of the real, real reselling luxury goods like pre owned bags and cartier watches julie wayne right's 8-year-old company went public in june. >> the total opportunity in the u.s. is $200 billion >> most of the businesses online with three retail stores to date >> now we're just, how big can we get >> and growth has been rapid merchandise volume up 48%. revenue up 52% in the first nine months of the year still, company financials show it is not profitable >> everything is up indicated. >> the real, real's promise? >> then indicated by our experts. >> with an expert behind every item we ensure everything we sell is 100% real. 100% authentic >> there's no fakes on our site.

>> that's key to the real, real's people and has helped drive growth but has it grown so fast it can't deliver on its 100% promise? >> just ask the celebrity designer she recently called out the company on instagram for selling a fake version of her shoe >> what's up, you guys >> and hundreds of fired up customers like the one posting on youtube >> it looked like this was scratched by a cat >> after speaking with nearly three dozen former employees and obtaining these internal company documents, our investigation uncovered a different reality inside the real, real. >> did you actually see fakes make their way on to the site for sale >> yeah. >> she was a copy writer for three and a half years in secaucus, new jersey she said the team she managed did more than just write about

designer goods theyauthenticated them, too. >> do you think they had enough training to authentic indicate these luxury bags? >> no. i don't think anyone had enough tring authentic indicate anything >> and the real, real's expert >> only some items >> that's been happening cynic i began at the real, real. >> she worked as a luxury manager. spending most days with consignors but says a 2015 company tour of the warehouse in new jersey left her questioning the business >> most pieces were being handled by the copy writers and only very, very high value items were being authenticated by the actual lead authentic indicators it was very surprising because i was under the impression even as an employee that every item was then indicated by an expert. >> hello i'm graham >> graham has been the chief authentic indicator and very public face of the real, real. >> this is truly amazing

>> what exactly did his team authentic zmat cnbc obtained this chart from 2018 sent to copy writers saying what was to be processed and what copy writers were to handle based on this, anything chanel went to the authentication team. but fendy bags, no prada bags only leather and gucci belts and shoes? both nos according to a 2015 world customs organization report, some of the most do you meaner fitted brands in the world including chanel and gucci >> some people don't even know the difference between real leather and fake leather how are they going to authentic indicate an item >> top authentic indicators are trends but tiny details in designer bags like the number of stitches in the iconic quilting pattern. chanel is suing claiming they sold counterfeit bags on the site they said it is harassing with

meritless litigation and the case is pending. according to parchment, when fakes and mistakes were discovered on the site, they were added to a list to be corrected. >> how many of these corrections were happening every day >> too many to count >> did mistakes happen >> absolutely. yeah all the time >> emily worked as a copy writer at the secaucus warehouse more than a year and. she was tasked with then indication >> i sort of had an idea of how to then indicate a handbag i would go in and do it myself praying that it was authentic. >> do you think you had enough training to know what's real and what's fake inevery category >> i would not say i had enough. i obviously had some bags that i published that were fake, trying to figure out if the bag is real enough is not the top priority >> so what is the real priority? >> just do as much as you can. >> this document lists the specific daily quota for 20

scene and 2019 saying copy writers are expected to consistently reach their daily quota. and copy writers are subject to disciplinary actions >> the way that we are expect to work was like a machine from julie herself that we had to get in these numbers by the end of every month in order to please the investors. >> she said she left after three years to work for a competitor the real, real sued her for taking its clients which she denies the suit was settled we sifted through 1,400 reviews of the real, real online and in public records the top three complaints include fakes, damage, and customer service. >> everything we carry is real it is so important to us, we put in it our name >> but this big name is now gone chief authentic indicator graham >> the vel crow, love that >> he says i won't discuss why i left the company when asked about his departure after nearly seven years, he denies it was related to our

story. and when it comes the copy writers authentic indicating items, he would not comment. the company declined our repeat request to go on camera. instead, sending this statement saying in part, we stand behind our then indication process and will always work with our customers to make things right and if there is a question that t authenticity of an item purchased from the real, we will always work with our customers they only say that this is our final statement. >> we should note during the airing of this segment, the stock hit session lows down about 9.5% this sounds like a classic case of growth at all costs is that in the real, real's case is authentic indicating the goods >> then indicating the goods and who is to go this authentication so interesting in the earnings call yesterday on the earnings call, the ceo

finally talked about the authentic indication process saying, well, the process as it relates to copy writers saying they do take part in the process. this is first time she said that we've been asking over and over for a response during our investigation and they never acknowledged that. that was the first time we've heard that >> these copy writers, these the people who write the blurbs about each item. they're not experts in gucci bags or fendi belts or anything like that. >> that's true the copy writers say they did have some training they did not feel they had enough training to authentic indicate things to that degree and they are also dealing with that they were dealing with authentic indicating things, writing through little blurbs about a dress or some shoes. plus they said they had quotas they had to meet every day at the end of the day, if they didn't meet the quota. i said what did you do

we just pushed it up on to the webb just to get it on so it would be done. and i said then what we just prayed >> a fascinating investigation thank you so much. the real, real shares are down right now about by 7.7%. coming up, shares of virgin galactic getting its nerve yags with a buy rate of a big price target and take a look at shares of walgreens and food alliance. a claim the company is looking into a deal. when you look at the world,

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mpl mplgt. shares bouncing offie iningl time low the company expect to begin early yex year with hopes of turns a profit one analyst says he sees the stock doubling great to have you with us. >> thanks very much. great to be on

>> what is the most important thing the stock needs to do to hit that target. is it hitting the profitability target by 2021 >> well, no. i don't think so in the near term i think what people, what investors will be looking for over the course of the next 6 to 12 months really i think is threefold. the first is the company has to demonstrate as they restart ticket sales probably around the new year that there is actually sufficient demand for that i think they did take many, many orders they sold many tickets in 2014 they stopped selling tickets. they will restart their sales activity when that takes place investors will be looking to make sure people are signing up to go and

that they are achieving add keie pricing on those sales the second thing they need to do is fly their system. the system will be moving down from its current home in mojave, california they haven't flown for a while they need to do something in the range of five additional test flights in order to collect data and start commercial service which will be around the middle, the third quarter of next year they need to demonstrate a path for the margin from the flights. >> i'm curious because your an airline analyst and so when i think about what the comp should

be for virgin galactic, how do you think about that >> i don't think it's an airline. i guess i characterize it as a space line with sort of like an airline only with space. if you look for space companies there aren't any that are publicly traded. we do have very detail ed, high frequency data available to us on space exprivate market valuatio valuations we have used the latest to help bankers.

>> we got to go. thanks for your time appreciate it. >> you bet thanks for having me coming up, consumers are packing it in when it comes to traveling. a look at the impact on the hotel industry and the broader economy, next. ♪ ♪ 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 from unitedhealthcare. it can combine medicare parts a and b, which is your hospital and doctor coverage... with part d prescription drug coverage, and more, all in one simple plan... for a low monthly premium or in some areas,

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consumer may be going strong but there's one sector where the consumer is starting to show some cracks. travel what's beginning going on here? >> the u.s. consumer is strong and resilient but the latest earnings from hilton and marriott suggest the consumer is responding to the macro economic backdr backdrop profits fell 23% the data shows that in terms of the consumer, you're seeing shorter duration so they are taking shorter trips they may be traveling but looking for cost effective

options but staying shorter opinion that don't bode well >> thank you that does it for us. i will join power lunch that begins now we'll see you here in just a minute here is what's new at 2:00 billionaires under attack. every one from lee yooe yoon cot jamie dimond taking a stand. elizabeth warren is not backing down shake shack gets grilled the stock having its worst day ever after the burger joint warns of slowing growth and grub hub is to blame. the profit is here marcus will be with us for the whole hour to talk the economy and consumers. power lunch starts