we got to keep it going and we will drop at the u.s. air force academy at 6:00. 6:00. >> all right we look forward to that. jim cramer out at the air force academy. thank you so much to our studio audience today all of our veteran guests and most importantly to veterans all across this great country of ours and those of you abroad, as well very thankful we are for what all of you do. and for all of us here at cnbc, happy veterans day [ applause ] scott, what a wonderful hour on hollowed ground in arlington, virginia welcome, everybody this is "the exchange" and here's what's ahead. the tariff tug of war after trade optimism fueled stocks to new highs, the president saying today he has not agreed to roll back any tariffs we're going to look at where we stand and what investors' next

move should be plus, michael bloomberg may be getting ready to jump into the presidential race and president trump says there's nobody he'd rather run against he's already got a nickname for him. what impact could the former mayor have on this race? and the gap can't seem to find its footing as sales sink, the ceo leaves, and the stock craters. can anything save this retail icon we begin today as we so often do with the markets and dom chu. >> tyler, what we have right now is a stable session so far if you look at the dow industrials, off by just about 32 points. even those headlines earlier this morning about president trump saying we actually don't have a trade agreement to roll back tariffs, didn't push the dow by that much still, though, the s&p 500 still just about flat but above that 3,000 level for sure and the nasdaq composite moving to that side, as well. if you take a look at the overall picture for one of the places we're watching closely, the interest rate complex, specifically the difference between two year and ten year

u.s. treasury notes or bonds that yield differential has been creeping higher and higher and that's perhaps a good signal, especially for the bank stocks, financials, by the way the best performing sector. up about 11% on their own. we'll keep an eye and see if the interest rate differential kind of normalizes even further by the way, the stock of the day, a dow component, a really big performer. we're talking about a 3% gain in shares of disney that's off the highs of the session. but this is a stock, remember, that hit a record high earlier this year. a massive move higher from the december lows and fallen by about 10% through yesterday's close. a big move on disney of course, a lot of that has to do with the anticipation of that disney plus streaming service coming up on tuesday i'll send things back over to you. >> dom, thank you very much and welcome to "the exchange." didn't i just do that a minute ago? anyhow, welcome back to "the exchange." at 1.9%, it's been a while, hasn't it, since we've been at

that level rick santelli. >> tyler, you really are looking in the same crystal ball as i am because not only has it been a while, it's been exactly since september 13th on a closing basis. and that really is the context of what i want to talk about look at a july start for tens. 190. where are we sitting 191ish 192. >> it's very important if we continue to see the momentum or you want to look for momentum in higher yields, you got to close above that for the third-year bond, that number is 238. we're hovering two basis points above that if you look at high yield from barkleys on the spreads yield to date, these spreads are collapsing we're on a risk on mode. many investors reaching for yield feeling confident. finally, boon deals, they're pretty much doing the same thing. we want to pay a very close eye on whether they can continue to hold above minus 35. tyler, back to you. >> rick, thank you very much bonds and stocks, they have been

following trade closely and it's been an interesting 24 hours of headlines. first, china announced there was an agreement with the u.s. to roll back tariffs and then larry kudlow said there will be tariff concessions if there is a phase one deal that's a little more conditional. the president, however, had a different take today >> they'd like to have a rollback i haven't agreed to anything china would like to get somewhat of a rollback, not a complete rollback because they know i won't do it. >> all right how should investors square these different trade narratives or should you wait until it's all done with us, matt maily, market strategist at miller patrick is chief strategist at silver asset management. did i get that right >> yes, you did. >> investment officer. welcome, good to have you here bond, let me start with you because you got the hardest name to pronounce and i don't want to say it more often than i have to but how important is trade to the long-term direction of the market and i -- i get the idea that

we're captive to the headlines and it's going to move in the short-term but how important long-term is this >> i think it's very important right now, it's as important as things like earnings and interest rates if we have a situation where we can't reach a deal with not just china but all these other partners we have around the world, that will get rid of these tariffs, i think that could hurt international trade tremendously, which would have a big impact on u.s. companies, especially those that do a lot of business abroad and a lot of companies in the u.s. that buy things from abroad. >> patrick, i don't mean to sound cynical here but the idea that we would go from, oh, they're going to roll back tariffs. yesterday, those were the headlines. to today's back pedaling on that on the part of the president it felt like i've seen that movie before that we've been here and we've had this kind of stuff my question, though, is a phase one deal is really a baby step,

isn't it and what the -- the harder issues to solve are the ones having to do with technology transfer, intellectual property protections, subsidies for state-owned enterprises, and that feels like a 2020 or beyond problem. >> we have seen this movie many times before in the course of the past year or so. so that's why i think markets should take a step back a little bit and focus on the bigger picture. you know, to the extent that an interim agreement, and you're absolutely right, this is really more of a ceasefire rather than the resolution of any of the underlying issues that led to the trade war. but to the extent that there is a ceasefire, that would be good news in the sense that it avoids further escalation an escalation of tariffs was something that was really hanging over markets and it was hanging over a lot of companies. and if that goes away, well,

then that 's a positive thing. the problem, though, is first of all, a trade deal will not stop china from slowing china is slowing it's slowing for reasons that pre-date the trade war it has to do with overinvestment, overreliance on credit expansion, mounting bad debt so a trade deal, even a full-blown trade deal, which we're not looking at, would not change that picture for markets. the second thing is that the u.s. and china are still on a collision course on a host of other issues and particularly, on the issue of technology and security and i don't see that going away anytime in interim trade agreement. i continue to see a bumpy path ahead for that relationship. >> so let's assume that we've exhausted the treasury discussion here and i want to get to a -- to a sort of area of interest of yours, and that is emerging markets we had a guest yesterday who similarly said emerging markets are a good place to put money now. why do you feel that way what's the catalyst?

>> well, it's interesting because one of the catalysts hasn't been working the last couple of days and that's been the lower dollar you know, the dollar got down to low end of an upward band it's been trading at for a while and then bounced but the thing is, it's something that's not just been working the last couple of weeks the emerging markets, em anyway, em etf has been outperforming for almost three months now. it's not the only one. we're seeing europe doing the same thing japan. south korea. some other markets outside the u.s. so i think the -- the -- the other guests, what they're talking about is very true the -- i -- i -- i kind of call it an economic cold war we're in with china it's going to last a while it's going to create head winds. and, therefore, we want to look out at other areas rather than just the u.s. and the u.s. may not continue in that outperformance it's had for almost two years now not saying you should dump the whole u.s. but look outside because there are other opportunities there. >> let's go quickly here, vahan,

we've got about six weeks of trading left we're now on pace for the fifth straight week of gains for s&p 500. is it your anticipation that the market, let's say the s&p, will end higher than it is today? roughly where it is today? lower than it is today >> i would say i think it's going to end roughly where it is today but i think that depends on a number of factors including whether we have a trade deal or not because that could really impact the market in the short-term and that's a relatively short period of time. i do expect some areas of the market to do better, though. >> which >> value stocks. i think value -- >> looks like the move is moving there. it certainly does. the value stocks and they would be what >> oh, i would go with some energy stocks, for example i think there are some retailers that i think are still like tremendously oversold. i even like ibm, a technology company that i think is still very cheap i think stocks in the auto sector are still -- >> been a value play a long time. >> that's right. i'm not saying they're going to be doing great in the next five weeks but this is where you

should be thinking about r rotating. >> this is a group on a technical basis is just trying to break out but also we need to note that we don't need a big rally in crude oil for the energy stocks to rally because they've been lagging behind crude oil all year i mean, start from the december lows of last year, they're up half as much as crude oil. so the group is very -- is -- is very -- sorry -- oversold. it's very under-owned. so if it starts to move on the upside, those institutions are going to pile in in a major way for performance reasons and it really could -- >> patrick, quick final thought to you favorite sector? least favorite sector? quickly. >> well, you know, i think that you need to be diversified right now and -- and investors need to have a very realistic idea about what's -- what's coming. the sober view because the u.s. economy's slowing. it probably will slow further in the fourth quarter earnings have been flat. they're actually likely in the

third quarter to be down 3% for the s&p 500 earnings per share you know, there are -- the good news is that there's low inflation, which means -- >> so what's the sober place to put my money right now >> you know, there isn't and the fact is, is that, you know, what we have told clients is there's -- there's a tendoeny to pull money off the table. but even though yields have come up, risk off is still expensive right now. so this is the kind of thing you just have to ride out. >> patrick, got to leave it there. thank you very much. patrick, matt, vahan thank you. shares of disney up more than 3% after beating on the top and bottom lines and ceo bob iger's bullish comments julia spoke with mr. iger following earnings yesterday julia, and he's not worried. he is the calmest man i think

i've ever seen in the ceo seat. >> well, right now, he seems pretty confident ahead of the launch of disney plus coming up on tuesday iger also announced they plan to bolster hulu with all the shoes from fx, also new originals coming from fx so i asked iger if he's concerned that disney's big investment in streaming could cannibalize his core business. he said they are not damaging their core business of television but rather expanding viewership and establishing a path so that if the traditional business model is drastically disrupted, they will be prepared now, as for competition, i asked iger about focus on younger viewers, as well as the launch of apple tv plus. >> we're not focused that much on the competition we're focused on making sure that the product we're bringing out is both successful from a bottom line perspective but also successful from a consumer perspective. we've got something that's incredibly unique. >> i asked iger about reid hastings saying the measure of

netflix success should not be just subscribers but also viewership iger said they will be focused on subscriber count for disney plus, as well as individual consumption and of course profitability. iger admitted that he does subscribe to netflix he also said that he got a free subscription to apple tv plus because he had bought a device guys, back over to you. >> i bought a device, too, and i want to get that free subscription i got to cash in on that. >> you can do it. >> all right julia, thanks. >> you can sign up, tyler. >> thanks very much. julia boorstin here's what else is ahead on "the exchange" for friday. >> coming up, another iconic american retailer is treading water. with the stock down 56% in five years, we'll look at what went wrong at the gap and what can be done to save it. plus, how serious is michael bloomberg about running for president? and how disruptive could it be and lyft has a bold, new plan to attract new customers.

this is "the exchange. on cnbc ♪ ♪ ♪ ♪ by the way, she's the it wasnext mozart.g day. as usual we were behind schedule. 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,

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welcome back to "the exchange." we have a news alert on vaping dom chu has the details. hi, dom. >> tyler, u.s. health officials are saying they are making a break through in finding the possible cause for the deadly vaping illnesses they are narrowing in on vitamin e acetate as a possible cause.

they collected 29 samples. all 29 had that as a factor. more so than thc, marijuana relat related -- back over to you. >> all right thanks very much, dom chu. pli michael bloomberg reportedly preparing to enter the race. president trump saying today, there's no one -- no one -- he would rather run against and our own brian schwartz just spoke with the billionaire mr. couperman who said he would support bloomberg. remember he got very emotional on half-time when discussing the state of politics right now. >> these people cannot only see the emotion on your face but hear it in your voice when you talk about this, lee, why? >> i care. that's it. >> joining me now to discuss is

ben white, politico's chief economic correspondent and a cnbc contributor and brian schwartz, cnbc.com politics and finance reporter welcome. good to have you both here let's start with mr. bloomberg a billionaire with many, many billions. >> 53 of them. >> may well jump into a race on a democratic side where the theme has been to vilify and bash billionaires. >> right strange development i think. >> stranger things very popular show. >> yeah. indeed he's been toying with this for a while now, you know, you guys have reported thinking about doing it now, has not quite made the decision but is moving in that direction because he sees vp biden perhaps fading, not the guy who can be the moderate centrist pro-capitalist version of a democratic nominee. and that, if you don't get biden, then you get warren or sanders who would blow up the capital of the system, do all the things leon cooperman is worried about. i think personally and i have

talked to a lot of people on wall street today who think it's a crazy idea for mike bloomberg to run for president. >> it's a very narrow eyelid in the needle the thread. >> what's really interesting to kind of bounce off that point is the amount of interest in mike bloomberg potentially running in this race after 24 hours of his aides coming forward and saying he might run you know, leon cooperman, he said he would back mike bloomberg. there are other people on wall street i've spoken with, private equities and people in the big banks who maybe they're not all into mike bloomberg yet but there definitely is an interest there keeping an eye on him as that potential moderate candidate. but they all say, except for even mr. cooperman, they've mostly said it's going to be -- >> a moderate candidate in a party that seems to be leaning left what is bloomberg's baggage? >> well, the 53 billion is baggage. i mean, that's baggage a lot of us would like to have. >> i would love to have that kind of baggage. >> but this is not a party that is moving towards, you know,

lionizing billionaires and people who have made enormous amounts of money it's moving towards wealth taxes. it's moving towards medicare for all. it's moving towards green new deal higher taxes on the rich not sure that's the bloomberg area. >> some people liked him some people did not like him. >> well, the stop and frisk was -- >> the policing issue is a -- was a big one. >> and that's already, again, coming up in different circles of the democratic party that there are some concerns if he does get into the race, that will be brought up yet again with mike bloomberg. stop and frisk things when he was mayor. that was controversial at the time and continues to be on his record that could be a big problem for him if he entered the race. >> and he has the reputation, a very smart man and a -- a -- a sensible one there are those who criticized him for creating a kind of nanny-state culture demanding that calorie counts be put on menus in new york city taxing big gulps or whatever it is we have a tweet. when do we not have a tweet,

guys we have a tweet from elizabeth warren and here is what she says the wealthy and well-connected will always have each other's backs. we're building a movement to change that. we're building a movement for big structural change. the battle is joined, brian. >> yeah. i mean, this is -- this -- this endorsement by leon cooperman and maybe down the road, there will be wall street people coming saying we will back bloomberg just goes right into elizabeth warren's hands this plays in her hands every single time. >> does bloomberg take more wind out of the sails of joe biden? >> it does i think that's the big problem and what wall street worries about is that you get into a competitive primary with bloomberg syphons votes from biden, perhaps someone like pete buttigieg who people on wall street like too, and puts those votes in the pockets of warren, sanders. then bloomberg has essentially destroyed what these people

want, which is something other than warren. >> it gives an advantage to warren the finance people's worst nightmare. i mean, that's all the kind of thought process of where this could be headed for mike bloomberg and the democratic party if he does eventually end up in this race. >> good to see you leon cooperman will appear today on the closing bell in an exclusive interview at 4:00 p.m. eastern. he will discuss his support of mr. bloomberg's potential presidential run you won't want to miss that. and coming up, a closer look at why gap can't seem to close the gap with other retailers and what it will take to turn that company around plus, friends and money may not always mix but it's a growing trend in housing we will explain. ahead. ricans during the recession. so, my wife kat and i took action. we started a non-profit community bank with a simple theory - give people a fair deal and real economic power. invest in the community, in businesses owned by women and people of color,

in affordable housing. the difference between words and actions matters. that's a lesson politicians in washington could use right now. i'm tom steyer, and i approve this message.

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their own customers. we see a massive opportunity in the years to come, and as we celebrate today's milestone, we are even more excited about the future. congratulations datadog. exchange," everybody here are some of the movers this hour shares of stamps.com up 15% on a big earnings week with revenue also coming in higher than expected the ceo making bullish comments on the company's new partnership with ups and good news for planet fitness. the company adding more members in the third quarter, announcing more store openings, including an expansion into australia. revenue beat with earnings in line, the news has sent the stock higher by more than 9% and how about dropbox? initially higher on better than expected earnings but losing ground today on widening

accounting losses from a year ago. let's go to sue herera for a cnbc news update hi, sue. >> hello, everyone here's what's happening at this hour president trump talking to reporters on the white house lawn this morning. he says he is considering releasing the transcript of an april call he had with ukraine president zelensky >> now, they want my first call. i have no problem giving it to 'em other than i don't like giving calls to the media when i'm dealing with foreign nations. but i will give it if they want it >> roger stone was back in court today. a comedian and former talk show host telling jurors that stone pressured him into backing up lies that he had told to congress randy -- said the political operative pressed him to go along with the false account of stone's contacts with wiki leaks during the 2016 presidential campaign and on a happy note, take a look at that little guy. that's a baby giraffe who made

his first public debut at a northern czech zu 12 days after being born is thought to have fewer than 2,000 still living in the wild so that is one important little guy. that is the news update this hour ty, i will send it back to you. >> sue, thank you very much. sue herera here's what else is coming up on "the exchange. ahead, online home flipping appears to be taking off lyft has a new plan to convince you to sell your car michael bloomberg considers a run for president. and apple's new morning show program has a new co-star. apple dggaet it's all coming up on "the exchange." my parents never taught me anything about managing money.

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thank you sofi. sofi thank you, we love you. ♪ never enough time for rapid fire let's catch you up on a few stories that should be on your radar in rapid fire. here with their takes, bill griffeth, kate rogers, dom chu welcome, folks let's start with the online real estate company zillow. it's doing something i didn't even know they did it's soaring up today 10% after reporting its home flipping business would generate more than a billion dollars of revenue in 2019. it has been moving beyond its

advertising and business services model and into buying, renovating, and selling homes. flipping, bill, goes digital i didn't know they did this. >> well, they only started it last year. but this may be a game changer for them because i mean this is a stock that's gone nowhere since it came public by the way, it has the ticker symbol z which used to be -- anyone come on. woolworth. >> it's a jeopardy category. >> their annual revenue right now without the flipping is $1.8 billion they expect house flipping to contribute $20 billion in annual revenue in three to five years that's huge if it happens. it's very ambitious sounding but this could be a game changer for them. >> are they making money at this >> i don't know. it sounds like a top to me i mean, this used to be the b s bastian of people. play the photo, do some renovations, make the quick buck

on it t on it. >> but if you have another information, your timing is good but you have enough funding, it's not that speculative. >> because you can put all those listings out there and then advertise these houses for sale, which costs a lot of money for people to go do on their own but the whole idea of a company doing this feels to me like it could be one of those situations where spreads start to narrow. i get that projections are made by professionals at these organizations but it doesn't seem like when you get a lot more entrance into there -- >> you're going to be carrying a lot of inventory on your balance sheet one way or another. >> absolutely. >> but they're moving into los angeles, they said so they're in 21 domestic markets now. so if they're successful there, they could -- yeah. >> hook up with him. all right. topic two, lyft is teaming up with the online auto retailer carvana in an effort to get people to still their cars if you sell your car through

carvana, you will get $250 in credit on lyft rides plus a three-month subscription to lyft's pink service. that service gives lyft customers 15% off on rides, plus complementary time with bike share and electric scooter programs my initial reaction here is that obviously you get a bonus here but there's nothing free here. right? i mean, you're paying for this one way or another. >> well, i guess if you sell your car to carvana, you get the money from that. lyft doesn't get any money from that deal. when i found so interesting about this is that lyft has always said this is where the trend is headed. we think that people will move away from car ownership. but now, they're actually taking an active position here and encouraging you to get rid of your car and team up with them and get three months free of this subscription service and $250 credit. so if you were already considering doing that and you're open to it and you're in a big city where there are a ton of lyft rides available, i mean this may actually make you think twice about it. >> here's my thing i'm thinking of this from a

broker, dealer, or trader's standpoint these are all about spreads. carvana makes money by buying cars from somebody and selling at a higher price. what i'm thinking is the monetary value of this lyft promotion is $310. if i was to use carvana to get a level price for how much i could sell my car for and i could find a price that was $310 better than that, then why wouldn't i just take the $310 better offer and get the cash up front? >> there's ways to do this without having to seem like i'm getting rid of my car. i can just sell my car and buy another one and take the money. >> but the strategy is classic merchandising in that you're getting the customer in the door assuming they're going to sell their car. but you're then making them sticky to your products by offering this entree into this monthly subscription thing which gets you a few, you know, the scooters and all those other things they offer at the same time so making a customer sticky. having a monthly income of some

kind, that is usually a -- >> yeah, if it appeals to you, do it. but to your point, really you're talking about a $310 credit. >> correct a credit. >> that you get. if you like lyft and you want to do it, i rode a ride share last night. so i mean, i use these things. it'd be nice. >> the only thing i'll say is this whole promotion seems like it's targeted towards a younger demographic. >> may not have a car to begin with. >> exactly so are they already car owners because a lot of people that may be looking to get rid of their cars may be the older generation. >> it's interesting you should say that because my first thought was this is for the older crowd who may not want to drive anymore. and this would be a way that they can get to and from the doctor's office. >> do they live in a city? are there enough lyfts available? >> there are still old people that live in the city. >> i know that i just mean you have to be in a highly lyft populated area. >> let's go to number three. written a letter to management asking for humane treatment during upcoming layoffs. the letter also asks for a seat at the table as the company

addresses issues, including compensation, accountability, diversity. the workers also taking a shot at the former ceo adam newman pointing out that he is leaving the company with $1.7 billion in severance, plus a $47 million a year consulting fee. saying we are not asking for this level of graft, their words. >> strong words. >> these people are hot. they have reason to be. >> absolutely. >> progressive, right? i mean, think about the company you're talking about it's a very a van guard technology/real estate company presumably, with a lot of younger folks who have a vision for how they want to pursue adam newman's vision without being adam newman. so what you're looking at is a lot of politicians on the left these days are asking for a corporate governance to be overhauled so that workers have a place at the board of directors table. that, you know, unions or other people have a certain kind of ownership stake in the company this kind of takes that theme and puts it out there in a more solid format for a company that's not yet as scrutinized because it's not public yet. but it could be more so if it

ever does become one. >> well, i think wework also hit the market with a lot of lofty goals and visions for what the world should be like and making it better. and the employees that work there clearly bought into it so now, they're hoping that continues without adam newman there. and i don't think they're necessarily wrong to point out how much money he made off of this he's the founder but he walked away with quite a chunk of change and they have devalued stock options. they're wondering what their severance looks like they mention the cleaning crews that are now going to be working for a contracted company and not wework i know knnewman butted heads wih them in the past. >> the classic relationship between company and employee will always be employees want guarantees, company wants flexibility. >> flexibility freedom. >> this is a company even it's not technically a startup, it's nine years old should know its way around but it doesn't because it's been screwed up and they're losing money still. hand over fist they can't afford to maybe pay

the kind of severance and so forth that these employees are after. so they're in a tough bind right now. >> the new ceo marcello from softbank has his work cut out for him. >> sounds like a good guy. he sounds like he's open to being humane but he is also a businessman and he's got, you know, mr. son looking over his shoulder watching this. >> apple has said many times in the past that it doesn't pay for product placement in its tv shows and movies but now that the company has its own streaming service, some eagle eye viewers have noticed that apple products are front and center example, the morning show. according to a report in the wall street journal, apple products are visible in an average of 32 camera shots per episode. this is great. and an apple logo is visible in about one-third of those shots i guess everybody's -- if you're going to be on apple's show. >> i love this. >> it's hilarious. hilarious. >> this is such a great thing to talk about you got so much product

placement in those shows this is -- this is how it's supposed to work this is synergy i guess is what it comes down to. >> that's the term. >> but don't overdo it. >> what was it >> 32 per episode. >> now that it's been pointed out, if it was subliminal, that's one thing but now it's been pointed out. >> now, it's in the culture. >> now, everybody is looking for that throttle it back a little bit. otherwise, it could backfire on you. >> but the article had commentary about them taking off their jacket and not putting down their iphone. or like arguing with a colleague. but think about how all of us walk around the building with two phones in our hand at all times. and what are they supposed to be carrying of course, it's going to be apple. >> i haven't seen the show yet but apparently someone's father in the episode doesn't have an iphone he's got the old -- >> flip phone. >> yeah. so there's reverse product placement as well. >> i'm susceptible when i see thoese, i remember al the product placement for certain alcoholic beverages or certain car models lot of audi shown in some of

those. there are certain things that resonate with folks out there. >> got to leave it there, folks. kate, bill tgif you bet. have a good weekend everybody. shares of gap falling after earnings missed and sales drop and the ceo leaves that's a trifecta of trouble we're going to talk about the future of the company and whether it can survive if so, in what form. that's coming up but first, we will head to the air force academy in colorado where jim cramer will ecin us live ahead of a very spial edition of mad money "the exchange" we'll be right back quadrupled their money by 2012? even now, experts all across america predict the real gold rush is just beginning. u.s. money reserve is the only precious metals company lead by former director of the united states mint and is one of the largest u.s. gold coin distributors in the country. u.s. money reserve have proudly served hundreds of thousands of clients worldwide. there may have never been a better time to start diversifying your assets with physical gold and silver.

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>> it's a place of honor yes, it is i mean, my father served and saw people who are -- naval air force. they've separated this -- the philippines for the first time i love this place because these people are all here to protect us and we have to help them too. once they're done in service, jeez, you don't get a lot of time figuring out how to be able to save, how to be able to invest, how to be able to grow like acorns. so we're trying to do our thing. these are the real deal. these are guys -- i saw some guys jumping out of planes earlier. tyler, i was offered that opportunity but i had to -- i defer. i deferred for a moment. >> i'd have been with you. you know,i was watching scott's show an hour ago from arlington cemetery my parents are both entured there so when you have a personal connection to people who serve, as so many of us do, it really means something. i know one of your guests

tonight is the ceo of starbucks. they are big on trying to find job opportunities for veterans >> they sure are you know, i talked to bob iger earlier today. they've done a great job we talk about jamie diamond. but when you talk about the commitment to be able to hire military in order to be able to make it so they can even be a unit can they stay together so they can help each other, which is something they do right here well, that's what kevin johnson's about. he isn't just about earnings per share. he's about impact per share. what he does for the military is good for the nation and good for starbucks share holders. they don't have to be mutually exclusive. you know, it's not like this place is -- these men and women are doing an unbelievable job protecting us but there is a life after and we got to help protect them. >> you know, let's talk a about a couple of stocks if you don't mind that have been in the news. we just had a rather animated conversation about zillow. i did not know that they were in the house flipping business. what do you think of zillow and what it means?

>> you've got to listen to conference call. you listen quarters ago and you would have thought they were nuts four quarters ago, you would have thought they should fire everybody. but this is working. the ability -- they talk about a marine veteran who was able to sell his house in a couple days to a zillow partner and then buy a house in a couple days this is radically transforming real estate. i know people were involved in real estate, including my life who works at -- zillow's new business model is actually resounding in a way that makes me think, you know what? i've avoided that stock for years. we have to kick the tires, tyler. they're doing a good job. >> let's talk a little bit about a company thatwear going to talk about in a few minutes i don't mean to catch you off guard here but their ceo just left it's gap what do you think there? is this a company that faces some sort -- not an existential threat but -- but -- but maybe a

restructuring of some sort or another? >> you know, i was going to go with the existential line. i think gap stores has a ray zone debt if i was in france they literally don't know why they live. now, last night, i had this fellow jim taylor from a giant 400 strip malls and he was saying the world's divided between irrelevant stores and relevant stores. gap is irrelevant. >> that is a strong indictment of a store we all grew up with one way or another it was such a hot property under mickey drexler and others. it was where you went to shop and no more. >> my mom got me my chinos you weren't allowed to wear jeans. i always felt i was dressed proper properly when i went to gap. they have some nice stuff but the problem is everyone's kind of given up on them in a mall.

no one wants to go to the mall to begin with. and then to fall into a gap at the mall i would rather fall off an airplane at the air force academy. >> let's talk a little bit -- >> i would be like hugging the person. >> i would, too. i would too and i'd be saying pull that rip cord, will you at any rate, let's talk a little bit about trade and i said earlier that i felt like i've seen this movie before where it sounds like we're -- we're falling in love. we're hugging the chinese. we're going to get a deal. and then something happens and it's not going to happen what do you make of all this and how can you -- how can you invest under that? >> okay. you have to invest when talks break down, you buy because then talks come on again. i mean, i think people forget -- look, i'll tell you i know more about the president from being on the apprentice than this president xi seems to understand about him. you've got to give him something. you can't just say, listen, we're going to execute one fentanyl smuggler. they want -- the president wants to see the end of fentanyl

coming into jfk airport. they want to see a commitment by the chinese to stop fentanyl and then they want to come to the peace table. it's like you remember the days of the paris peace table talks in vietnam the president doesn't want to say, hey listen, we're gung ho no he wants to hear that they're gung ho. and until they break down and say they are in concrete steps, forget it. there will not be a phase one. the phase one is for people who are trying to convince the president to go their way and they're not going to win trust me they're not going to win the other wing is the winner >> jim, thank you very much. brilliant. thank you so much. we'll see you tonight on "mad money. tune into jim's special salute. >> salute to the troops. >> salute to the troops the salute to service. a very special edition of mad money, that is tonight at 6:00 p.m. eastern jim cramer always strong thoughts coming up, call them friends with mortgages more and more single-home buyers are buying homes with friends. are buying homes with friends. the details straight ahead

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exchange would you buy a home with your friends? new housing data shows more and more single buyers are doing exactly that diana is live in washington with more this is interesting. people willing to go in together on properties. >> very interesting, tyler increasing debt as well as high home prices are likely behind this shift the fear of first time buyers purchasing homes with friends is still very small but it doubled in one year from 2% to 4% according to the realtors new annul profile of home buyers >> in grad school i lived with three other women and that was fun. it was later down the road and it was the right place and price i would want to do that. >> reporter: today's young buyers are saddled with not only student loan debt but increasing credit card debt sharing the cost of an investment makes sense some are skeptical >> it's an interesting concept i would like to see when thi-- a

happens when things don't work out like legally. >> i think it's great. i owned a home with my husband before he was my husband >> the social generation is also comfortable getting social with their investments. would you do it? >> i wouldn't. i'm very leery of mixing friendship with money. if i was in a romantic relationship with somebody and i expect to spend my life with them maybe that would change things say you and i were friends, i wou wouldn't want to mix our money and our friendship >> if you had contracts and all legally spelled out, it could be something.

>> i didn't subpoemean it to sod personal that i wouldn't do it with you i probably would do it with you. >> i'm very hurt shares of gap falling nearly 35% this year. now the ceo has been removed, can the retailer turn things around with new leadership we heard from jim cramer maybe we will play that piece of tape when we return. as a principal i can tell you this. when one student gets left behind, we all get left behind. this is a problem that affects each and every one of us. together with ibm, we created a whole new kind of school called p-tech.

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shares of gap down 12% after disappointing quarterlies. it announced plans to split with old navy, gap stock has been on a rapid decline. is the company joining the rank of other iconic dying retailers. stacy, we just talked to jim cram cramer, i asked him is gap facing a crisis. hi says they don't know why they

live gap is irrelevant. is this a fatally ill company? >> here is the best example of what's been going on gap has only been positive once out of the last 15 quarters. banana republic has only been positive four times. with have a brand problem and we had a management problem the problem with the brand s they have been promoted for quarter after quarter and the consumer refuses to pay full price. that's a very difficult thing to change >> that's a difficult formula. it erodes margins.

is that a good idea or a bad idea >> that is a bad idea. a couple of things going on here you tend to see companies make big moves and big gestures when business has peaked. 80% of the profit of this company when their margins peaked they decided to spin this off to value at that very time, the margin stargted going down and they started promoting and business turned negative here the other thing is you're seeing expenses almost of a billion dollars in order to separate these companies. this makes no sense here going forward now that there is some management change, i think what the street can hope for is we keep this company together and that we get marketing synergies, cross marketing synergies and perhaps not have to spend close to a billion dollars here >> you look at the stock today down almost 7% thank you very much for being with us.

we always appreciate your thoughts >> thank you that does it for the exchange i'm going to move over and join melissa on power lunch in a few seconds from right now see you in a minute. >> see you soon. just when you thaug it was safe to get back in the water, the trade war turmoil rears its head again as president trump says he's not agreed to roll back china tariffs. silicon valley is turning into the valley of sin add linkedin is the latest to come under fire with former spies infiltrating the platform mpl michael bloomberg is reported to jump into the crowded democratic race but is he too rich to run we'll explain. power lunch begins right now let's take a look at the markets. mixed bag after the trad