insight. incy oncology, delaware-based bio pharma. >> sticking with the financials, usb. ubs -- or usb. >> u.s. bank corp. i'll see you tonight at 5:00 that does it for us. we'll cover cisco, as well as walmart. "the exchange" begins right now. >> thank you, melissa and welcome everybody. i'm becky quick and i'm in for kelly evans. fed share j powell telling markets the new -- lower inflation and lower growth around the globe so how do you profit in this environment? plus, there's one sector in the market where nearly every stock is up more than 40%. i'll tell you what it is and if there are still opportunities to buy. plus, they've got search, maps, e-mail, youtube, home devices, smart devices, health data, and now google is getting into banking as well. we've got the details on that. but we begin with today's markets. seema moody is here.

>> good afternoon, here's where markets stand at 1:00 p.m. eastern. no major fireworks from fed chair powell we're up -- record high territory for the dow. we have s&p 500 sitting at 3100. stod, it's really about -- if you look at some of the consumer staple and consumer discretionary stocks, those are two sectors -- clorox, p and g, coca-cola. but are sitting on double digit percentage gains for 2019. another big name that we're watching is certainly disney jumping to session highs on news that the company's streaming service that was launched yesterday has already surpassed 10 million subscribers now, just for comparison, netflix has about 60 million paid subscribers here in the u.s. so it pales in comparison to some of the other streaming players but certainly wall street sees it as a good stock stock is higher by 4% and just

2% from hitting tsz record high. back to you. >> 10 million a day. that starts to add up. anyway, thank you, seema our top story today, fed chair jay powell testifying before the joint economic committee saying the central bank is unlikely to move on interest rates right now. what caught some investors eyes is his definition of the new normal right now he's talking low inflation, low growth, all over the world julia core that dough, she's the founder, also kenny polcari who is senior market strategist and welcome to both of you. >> thank you. >> look, the market turned around today we had been coming into today with a rare batch of red arrows thinking, okay there's nothing he can really say that can move things up but what he said was a mouthful. >> yeah. he has a very dovish bias when it comes to the labor market and he has for a long time this setting gave him full opportunity to express that. he said the data should -- we should just watch the data for

indications of full employment no signs of overheating. the bottom line message is, you know, they're very unlikely to take these insurance rate cuts back anytime soon. >> and it was soothing almost to listen to him. it wasn't -- it didn't have that sense of attack. >> yes. >> maybe, right? >> we're used to in other arenas. >> i think that actually helped. it made some sense because we're teasing the highs so you get this churning back and forth it's still questions over trade. it's still questions over what he was going to say. and now, the impeachment hearings which i don't think add anything to the equation at all because it's not going to price stocks in the end. but what powell said today i thought was great actually. >> yeah. yeah. >> and to the point you made where he was talking about low inflation going forward and around the world and low rates, i think just helps boost the sentiment. >> right. >> so it doesn't matter if they don't cut again because what they are basically telling you is they're not going to raise for a really long time. >> that's true he did say they're going to do whatever it takes to keep the expansion on track so for now, they don't need to do anything. the market doesn't look for

anything from them but if there were some bad news, they would be willing to react to it because the goal is to keep the recovery on track. >> very mario draghiish, right i'll do whatever it takes. i think that's what the market wanted. >> i got a big bazooka in my pocket maybe i'll pull it out i'm kidding. you don't like the idea of negative interest rates, though. >> i don't want to see them cut. i didn't actually think we needed a cut the last time but we did it. i think part of that almost was forced but what have negative rates done around the world to the places that have them? look at germany. look at the eu look at japan. all negative rates we're the strongest economy and we got positive rates. they all got negative rates and they're all struggling i hope we don't go negative. i don't think we're going to go negative. >> i mean, all the fed speakers seem pretty united that is not the direction that the u.s. is going. i mean, we have a different structure to our financing system that makes that a little bit problematic. >> but trump must not understand

that because all he did yesterday at the economic forum was scream give me -- it's a little bit frustrating. >> powell didn't react to it today. >> no, he was very cool about it. >> i actually thought that was part of what was soothing about it he completely, completely stayed away from it wasn't even going to deal with it. >> he didn't even take any of the debate or election year issues do we get an investment pothole? ted cruz asked him about that ahead of the election. wouldn't touch it with a ten-foot pole. >> right. >> what worries you if it's not going to be the fed? if the economy looks pretty good right now, earnings have come in pretty decently, what would be something that's out there you still looking at trade talks potentially as something >> yeah. from a macro standpoint, i still see the trade war and sort of the stabilization in china as, you know, whether we get it or not, whether it continues or not, as the key risk to the

global economy and, therefore, to the u.s. economy. >> i also think kind of the destabilization that trump seems to be creating amongst allies, amongst u.s. allies, that's a little bit concerning. and then you got the 2020 election, which is certainly going to create some nerveness and angst. who's rising to the top and what's it really mean? >> kenny, tell me a few of the picks you really like right now in this environment if we're looking at low rates. >> stocks. >> just anything >> listen. no, listen and this might be crazy but i think energy is a place that people should really -- deep value for sure but i think there's a lot of opportunity you may see some consolidation in that space. and look, if you get a democrat that's making some moves, you could get this whole conversation about them wanting to stop fracking and bring the u.s. down from being an oil producing company to somebody that becomes dependent again and then the price of oil starts to go up. yeah

i think he's absolutely right so i think -- but i also think if you're nervous, you got to play a little bit defensive, right? some financials. i think you have to look at even some utility names, which certainly have had a great year. they've backed off little bit now that things have calmed down but if i think you're starting to get nervous. >> not pg&e, though? >> no. >> where climate change starts taking a toll. that's a great example. >> julia, it's great to see you. kenny, it's great to see you and we will talk to you both very soon. >> thanks. >> thank you. >> ought right let's bring in representative don buyer. he's a democrat from virginia he just questioned powell moments ago. congressman, it's good to see you. >> thank you very much. >> you asked a couple very pertinent questions. you asked first of all about the pressure from president trump to cut interest rates and then you also asked about this whole idea of negative interest rates and what that means. what did you think of the answers you got back from chairman powell? >> well, i think chairman powell is among the very best people that ever testifies before congress because he's so direct and he's so clear.

and he made it like abundantly clear that he doesn't pay attention to any political pressure that they're looking to statistics, they're looking at the theories they're looking at what's actually happening in the real world. so he basically politely blew off the president's comments. >> you felt good about that, i take it. >> i did he did what he i think he was supposed to do exactly. >> in terms of negative interest rates, why did you bring that question up to the chairman? >> well, i was just in gee knee have a couple weeks ago and talked to a friend who just went to borrow $10 million to expand his footprint and they gave him a negative 0.3% interest rate. basically, giving him $30 a year i asked the chairman about that and he just said he didn't see any situation where that was relevant for the u.s. economy. even in small economies like switzerland, they might be doing more to prop up their currency because growth is so slow. >> you think the policy comes back to bite some of these other countries at some point? >> it may well

in fact, my follow-up question to the chairman was rates are already so low what kind of monetary policy tools do we have when we affect -- when we get our next down turn? and he said they're scrambling trying to develop tools. but he acknowledged typically we would use up to 5% interest rate decrease, which you can't do when they're trending at 1.5% now. >> so it's hard to not at least pay attention to what other central banks are doing around the globe because we are judged relatively everything in life is relative, including interest rates and the dollar has been so much stronger because we are at higher interest rates than anybody else in the world. >> yeah. and with remarkably -- you say muted expectations about inflation. and -- completely destroyed my economics 101 relationship between money supply growth and inflation. so many different tools developed, it's no longer relevant. >> let's talk a little bit about a proposal that you have rolled

out. this is something you've come up with with senator chris van hollen this is an idea that there should be a 10% tax on anybody making over $1 million for couples, i guess it would be $2 million this would be income that's coming in but if they're making anything off the stock market, dividends, anything else all their income together tied up in this so first of all, why anything over a million dollars and why 10%? >> well, the driving force for us both is, number one, the more than $20 trillion public debt we have there seem to be very few fiscal conservatives lift on capitol hill so i think senator vand h holle wanted to say look there's concrete things we can do. it is $635 billion so it's only one-third of what we've given to those same folks through the tax cut and jobs act it's also a very small step

towards overcoming the income and wealth inequality. and we made it on both capital gains and ordinary income because you're driven by all the research that shows that the return on capital is much greater than the return on work. you get more off your money than you do off your labor. so this -- this is what equalizes that a little bit too. >> is this instead of the wealth tax that's been proposed by senators warren and sanders and others i mean, this does affect a larger portion of the population i realize it's still a small part of the population but you are starting to reach down to numbers people aspire to. >> but it's an alternative i mean, i'm no constitutional scholar but you keep hearing that the wealth tax is going to have a lot of gaming problems. you know, people will be able to creatively avoid it. that'll be harder on the surtax, which is just on the adjusted gross income, which pretty ungainable also, there are no constitutional problems with it. we've had things like taxes and surtaxes for a long time. >> what support do you have from

your colleagues? >> there's a couple of us so far. but we only rolled it out last week when everyone was gone. so now, we'll begin to talk to people that care about the budget deficit, that care about paying what we're actually giving to ourselves. >> okay, congressman we're out of time but we'd love to have you back thank you for your time today. don buyer again from virginia. by the way, here's what else is ahead on "the exchange." listen up. there's one sector where nearly every single stock is up at least 39% this year we'll tell you what it is and if there's still time to get in plus, nike says good-bye to amazon wait, what someone said no to amazon? and a day after announcing it's going into healthcare, google may now be going into i'm happy to give yo banking. the details ahead.

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welcome back, everybody. take a look at the dow today a big turnaround that happened to coincide with when jay powell was speaking but what's happening with the dow today could be a little less about what jay powell had to say today and more about what mickey mouse had to say today that's because disney shares have been on fire. take a look at disney shares, which i think have doubled their average volume over the last 30 days today that stock is up sharply dow component up about 4.4%.

that comes after disney -- how many subscribers came in the first 24 hours way more than anybody anticipated, including disney. also, on fire, the home builders they've been scorching this year take a look at the home builders etf. itb. it's up about 50% so far outpacing-let major averages katy home. hortons up 58% and lenar both up 50% this year. so can these stocks keep building up gains? let's bring in kenneth, home builder analyst for key bank capital markets. our own diana is here as well. dia diana, give us the broad overview on this. >> it's all about mortgage rates, becky you see very specifically that when mortgage rates go down, the builder stocks go up and when the builder stocks go up, it's

because mortgage rates are down. and so that's what we saw. mortgage rates fell this year pretty dramatically. we're down over 1 percentage point from a year ago. we were over 5% on the 30-year fix. now, we're just around 4%. that's why these stocks are really soaring. >> so based on what we heard from jay powell today, good news because he doesn't see these rates going higher any time soon. >> right, great news for the builders look, they've got a very low supply in the existing home market. >> kenneth, wauks us through some of these things now that we've seen the stocks already run like this, is there still time for investors to get in or have we seen the heyday of this at this point >> hi, becky we still like the group. we are being increasingly selective. so we're focused on earnings momentums stocks like kbh or companies that have a really distinguished operating model like dhi in our opinion. fy 19, returns were predicated partly on the pressure the group faced last year as rates went up first half of the year was

really the feds not tightening and the second half of the year i think was a u.s.-centri kr rate group which kind of brings us to where we are today. >> the group in general has just been on fire but not everybody's up by as much what about toll brothers what explains why not all the stocks are quite as high >> that was to me, correct, becky? >> that's right, ken. >> so i think the toll brothers has, you know, it's the higher end in general but i also think in part it's the regional exposure they had. so to california's disproportionate sales in ebit it's a bit of a lag. but, you know, it's a stock that's trading at a attractive relatively -- but we still think the earnings momentum there is going to lag other names we've been focused on. and that's a primary driver for the stocks in our opinion. >> hey, diana, if interest rates are looking great and if chairman powell says they're not going to go higher anytime soon, what do people in the industry start looking around saying okay this is what we need to worry

about? >> it's price, becky it's definitely price. i mean, you talk about toll brothers not doing as well as the other stocks that's because you're not seeing nearly as much demand on the high end and toll brothers has exposure on the east coast where you have the tax issues there for the higher end buyer so when you look at the builders that are really on fire, it's dr horton with that express homes entry-level product. you're seeing other builders like taylor morrison which just acquired william lions homes which is going to grow its footprint and have more in the entry level. it's going to be about the price point and the buyers and what range, whether you're entry level or perhaps the down size baby boomers. >> and kenneth, just pick one stock. your absolute favorite here. >> we still think kbh has the most earnings momentum going into fy20. predicated upon people underestimating the order momentum in the last quarter partly on an easy comp last year is our view. >> kenneth, thank you very much. diana, great to see you. >> thank you. >> when we come back, nike says

no thank you to amazon good move? or is the company shooting itself in the foot get it we're going to debate that question plus, when it comes to investing in retail, one of my next guests says go local and he means literally local. he did it himself. personally visiting six of them. he says that should be part of your portfolio he'll give us the names d anthe retailers that he visited. that's coming up in just a little bit "the exchange" will be back in two minutes. have you ever worked with dr. francis? oh yeah, he's ok. just ok? guess who just got reinstated!

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welcome back to "the exchange." let's get you caught up on some of the movers this hour. shares of smile direct club taking 18% after a quarterly loss of 83 cents a share since the company went public. that loss was narrower than expected but investors reacted to the fact that the company sees losses continuing amid increased expenses and again, that's a big dropper today. also, shares of luck and coffee up by 13% on a smaller than expected loss on the bottom line and revenue that beat expectations the starbucks rival also forecast better than expected current quarter revenue. and then check out shares of data dog that stock's up 16% on better than expected earnings and an upbeat out look for the current quarter. right now, let's get to the other big event on capitol hill today with the first public impeachment hearing today. elon's been there. she joins us with the headlines so far elon, what can you tell us >> becky, republicans have begun their questioning of the

witnesses. the ranking member devin nunes and the staff attorney have 45 minutes for cross-examination. nunez came out swinging right from the start >> i'd like to briefly speak about the core mistruth at the heart of the democrats impeachment drive. they claim the president tried to get the ukrainians to quote, manufacture dirt against his political rivals this is supported by precisely zero evidence. once again, the democrats simply made it up >> so far, republicans have been focused on trying to poke holes in the credibility of the two witnesses. bill taylor, the acting ambassador to ukraine, as well as george kent, one of the top officials at the state department they focus on the fact that neither of these witnesses have direct knowledge of that now infamous july 25th phone call between president trump and president za lielensky. and also that neither of them was involved in this call either before, during, or after it was

made however, today, bill taylor did tell lawmakers one of his staffers overheard a phone conversation between president trump and the ambassador to the eu in which president trump mentioned quote, the investigations, and the ambassador to the eu said that ukraine was ready to move forward. becky, you can expect that that is going to become a focal point of the investigation over the next few days. back over to you. >> right i guess that all puts it to the point of when they begin getting witnesses that maybe were on the call as well. >> witnesses that maybe -- we do know -- who overheard the call that's right we do know nbc has confirmed that the staffer in question will be testifying in closed session on friday before the committee. >> okay. elon, thank you very much. covering everything that's been happening with the impeachment right now, let's get to sue herera update on what is he been happening in the news outside all of this. >> it's great to see you, as well, becky. hello, everybody here's what's happening at this hour roger stone arriving at court today. the testimony part of his trial

ended on tuesday with closing arguments beginning today. stone has been charged with witness tampering and lying to congress some mixed news on skin cancer researchers from fred hutchinson cancer research center looked at rates of melanoma between 2001 and 2015 they found the overall number of cases increased in adults ages 40 and over. but new cases in adolescents and young adults declined sharply. this is probably due to younger people using more protective measures, like sunscreen italian police releasing video of venice with several areas still under water. after that city was hit by heavy floodi flooding overnight the mayor blaming climate change for the flooding, which reached the second highest levels ever recorded and the 2020 calendars featuring images of russian president putin have gone on sale in russia the calendars feature putin in a range of poses one month illustrated him talking over the phone another, shows him deep in

conversation with president trump. apparently, this year, there are no shirtless poses which i think may be a blessing. >> that's not the onion, right, sue? >> it's not. it definitely is not he did pose with a cheetah and he did pose with a puppy. >> with his shirt on sue, thank you sue herera all right. here's what else is coming up on "the exchange. ahead, as the divide between the haves and have nots in retail continues, one analyst says it's time to go local the race to going electric in the auto world amps up why the apple rally has more room to run. and google gets into banking it's all coming up on "the it's all coming up on "the exchange." value like this, there are zero reasons to invest anywhere else. fidelity.

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and another way aag is working to make your retireme... better. don't wait. get your info kit now! let's get you caught up on a knew stories that should be on your radar if they're not already. it is time for rapid fire. joining us today is leslie picker, robert frank, and seema modi everybody's here first topic. nike's going to be announcing it will no longer sell clothes and shoes directly to amazon remember, back in 2017, the company launched a pilot

program. in exchange, amazon promised stricter policy on counterfeits and restrictions on unsanctioned sales. well, couple years later, nike says it is now -- anybody thinks this comes as a surprise >> i think it's a great reminder that as great as amazon is, not every apparel brand has to use it to sell their product i mean, we're talking about n k nike it's not some brooklyn selling soap and i think for nike with 30% of its sales already direct to consumer, there is really an opportunity to build on that and by the way, great move for john donahoe. >> that's what i think is probably the most important here john donahoe knows what happens in this world and he says wait a second, we're taking back control of our brand. >> there's no surprise on the order there. you hire john donahoe and then suddenly that's the first big move interestingly, there was announcement by data weave in

february 2018, they found that there were more amazon product listings for nike than any other clothing or footwear brand and six months later, it dropped to the 11th most listed brand. now, i don't know if that is because nike was starting to slowly pull their own items off of the site or if people were just -- >> or if they were getting rid of the counterfits. >> yeah. getting rid of the counterfeits. getting rid of third-party sellers. >> that's the part that will still be there, right? they still wholesale a lot of stuff. presumably, some of those retailers that get wholesale from nike will still be able to sell it. now, how much of it's counterfeit, will amazon still do work against counterfeits but i just find shopping on the nike site to be just so much easier as a guy than going on amazon when you're trying to find something at nike, you want to go by category. and you go on amazon and try to find something, and you're just bombarded by so many other products it's easier. >> seema, i think you have the right point, though. it's going to take somebody big like nike who can actually turn

amazon down. >> i guess to that point, becky, are there going to be other apparel brands or other brands in general that follow nike's lead out the door and say maybe we don't actually need amazon. >> watch and see how nike does first, right take a lack at that. >> well, the stocks are showing us amazon down a little built today. nike up today. >> topic number two. google is planning to offer checking accounts next year. the search giant has confirmed this to cnbc the project is code named cash the accounts for the project will be run by citi group and the stanford federal credit union. they will also brand the checking account with financial institutions names rather than google's own name. i guess the big deal here is this is the next step on the way to world domination after we heard about the health data plans yesterday. >> it's all about the data, as you mentioned, becky they say google does not intend to sell customers' data. that's what they've been on the record saying in our cnbc.com piece today. but when it comes down to it, there is a reason why all these tech giants are getting into the financial services world and

that is because the financial services transaction level data is above and beyond way more lucrative than any other type of data that's out there right now. >> so you think they ultimately will sell it >> i don't know if they'll sell it but there is some sort of opportunity there once they glean those insights. >> even if you're not doing it all the way down to a direct marketing to consumer, is that the thought on this? or can they somehow go ahead and actually do that >> well, if you look at facebook's launch with libra, which you could call a disaster, the type of reaction invited from washington. watching google and how it tries to pursue this strategy in -- well, but being a bit -- setting the bar low by saying we're just going to unveil a checking account. all right. we know that's not the big goal here for google. they have many bigger ambitions they're going to try to build on this but i think the fact they're doing it in a quiet strategic way, that may not invite the type of reaction that facebook got with its libra project. >> you watched apple do this too, right

>> yeah. why would any of us want to open a checking account with google what would be the reason to do that i mean, i could -- >> mad at your bank. i'm mad at mine right now. >> but there are other banks legitimate banks in an era where we're all worried about privacy and data. >> i guess it depends on the rates and benefits. >> maybe it's all in the same place. maybe you've got your google docs, you've got your gmail. >> and your money. >> yeah, absolutely. apple makes sense because it's in so many devices that we use all day. right? google, i just don't see what the incentive is for a consumer to say, yeah, google is where i want to put my money and all the data that they collect on the rest of my life, i want them to know all about my finances, too. i just can't see why a consumer would want to do that. >> unless it's free. right? >> yeah. but most checking accounts are free anyway. >> not always. if you don't have enough money in them or if you don't have enough direct deposit or things that are going into it, those charges can add up quickly. >> but i agree with you. in order for me to move my money

there, there has to be some type of financial incentive to say i'll give you a shot. >> topic number three. rbc capital markets. outperform rating. and a $295 price target. the analyst saying apple has avenues for deeper integration into its customers' lives and the balance sheet strength to return significant cash flow to investors. the report did reference some risks, including the ongoing trade war. stock hitting all-time high today. by the way, apple shares up 67% this year. robert, this whole idea of they kind of own your life. you're in their world. >> yeah. that idea of deeper integration, you look at the share price and say yeah i could see it. but as a person, everything i buy now when it comes to electron electronics is part of the apple wall garden because it's so much easier and you couple that with the incredible cache they have they're already purchased $250 billion worth of stock they got 100 billion more to go. it's hard to see why long-term this is not still just a massive company.

>> unless you look at the potential for the trade war getting worse. that's the one sort of addendum that, oh, yeah, you got to wait and see how that goes. >> but you got to give it to tim cook maintaining production, opening up plants in india and they're doing this all as they are also seeing slowing growth in iphone sales. they're still building out services and now they have the streaming platform as well so they've really done a good job at diversifying their revenue base and i think that certainly has been working for the stock. by the way, i would also say it's trading at around 20 times forward looking earnings you would think that is expensive but if you compare that to the s&p, which is also trading at around 19 1/2 earnings, you would say it's kind of in line with the market. >> apple's such a big parkt of the market these days. not too surprising it'd be similar. the rbc analyst puts the valuation at these levels. a lot of these things we're talking about are kind of already priced into the stock. so if they can just be innovative, which apple supposed to be. >> no problem in the past.

>> yeah. right. then there should provide some upside from here. >> and a dividend. i mean, i think it's like 2% so it's not hefty. but it is better than other tech companies. >> big return. all right. topic number four. door dash is adding another $100 million to its estimated $2 billion haul according to reports, comes from advice by -- which had not previously invested in door dash the new fundraising gives that company a valuation of nearly $13 billion. but this comes as morgan stanley puts out a note saying the market for online food delivery has led to cash burning competition. >> these guys are killing each other with low prices. just today, leslie and i actually ordered in from playa bowl. >> oh, yeah. >> so we had three of these giant bowls. >> what did you call it? >> acai. >> it's yummy. >> from five miles away, delivered three big bowls.

$4.29. that was the delivery fee. >> what? >> how can anyone make money at these rates? and they're just killing each other with these rates. >> unlike other types of platform companies, they have three constituencies, right? you got the deliveriver. you've got the restaurant. and you've got the customer. whereas like an uber, you just have driver/customer you don't have the restaurant to factor in there. so at each stage of the game, you know, you want to incentivize customers to buy in by giving them low prices. you want to incentivize the drivers to participate by giving them some kind of incentive. >> and the restaurants are getting killed by this too these things have been very -- have eaten into restaurants' profitability on some issues too. by the way, was it cold? >> it was. it was quick it was cold. yeah. >> go ahead. >> i was going to say and door dash raising i think $100 million. so there just seems to be no stoppage and no truce in saying we're just going to keep lowering prices. and i just don't see where you make money in this model right now. >> it's tough because it's also

an increasingly crowded market door dash, grub, uber eats at the same time, they continue to reduce their price but competition is very high i think subscription seems to be an avenue of growth for a lot of these companies. likepostmates. they unveiled unlimited delivery for $10.99 a month in order to maintain their customer base. >> so we need oh gto get daily bowls. >> what if one of the restaurants you really love decide to go with grub or uber eats >> no problem. what would that thing be >> i could think of about 12 things all right. finally, guys, a special bonus topic today. we are thrilled to announce that kelly evans has added a new member to the family her son. >> yea. >> yes baby boy here. mom, dad, and baby also his older brother are all happy and healthy. and we cannot wait to meet him. >> that face so cute. >> he looks like a big boy already. he's ready to go. >> so cute

oh, yeah. >> anyway, thank you, guys leslie, robert, seema. it's great to see all of you and we'll check back in soon all right. in the meantime, the hong kong offices of citi group and j.p. morgan warning staff to cancel meetings and stay safe while luxury brands like canada goose and faragamo are saying local sales have been slashed. a look at the wide ranging business impact of the unrest in hong kong. that's ahead right here on "the exchange." >> that was fun. >> that was fun. you gdeveloping technologyt.pene to help the visually impaired. we are so good. we built a guide that uses ibm watson... to help the blind. it is already working in cities like tokyo. my dream is to help millions more people like me.

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taking charge of her money, making it happen. she's - not going to be happy about that pillow. it's time to do money, so what are you waiting for. download now and get your first stock on us. robinhood. welcome back, everybody. november marks the fifth straight month of pro-democracy protest in hong kong and it is impacting businesses that count on hong kong based consumers today, canada goose falling as it warned on its second quarter earnings call the unrest had a significant impact of the quarter. other brands sighting a bottom line impact include faragamo,

starbucks, and disney. joining us to talk about all this is hong kong correspondent for "the washington post." i know you're in washington today but you're based in hong kong what's been happening there over the last five months or so >> yes so obviously, the protests have, you know, not ended as many people have predicted. but actually, intensified and gone on much longer than anyone really could have expected i think, you know, what we saw in the beginning was the protests primarily being, you know, confined to the weekends but now that they've -- they've extended into the workday as well, i think that's posing sort of new challenges for businesses as well. right? because their staff increasingly being affected by this you know, offices having to close early. a lot of the protests are now, you know, right in downtown, right in central hong kong so i think things are really sort of fraying in hong kong. >> yeah. it -- it -- it seems like they've gotten much more complicated. i think the police yesterday started warning that the city's almost on the verge of collapse.

is that overestimating things? or is that really where you would characterize it too? >> yeah, i mean, i think there's a definite impasse here, right i think what we can say for certain is that the protestors are doubling down. i don't think that, you know, the anger in the city has quelled and the crackdown from the government and police hasn't worked as well and i think it's important to remember that the protestors still by and large have the support of society as a whole, right? so in that kind of environment where you have office workers coming out, you know, at their lunch break sort of like cheering on these sort of more front line radical protestors, right, it doesn't seem like from that end, it's going to stop anytime soon so the ball's really been now thrust in the court of the government and authorities in beijing as to how they are going to respond to this right? that will really change the dynamic in one way or another depending what they do from here on out i hink. >> you know, it seems like such an intractable position. do you see any way out it seems that both sides have really gotten pushed into a

corner at this point. >> yeah. i mean, i think -- i think that there are certain things that the government and authorities in beijing could do to sort of mitigate this or quell the anger on the streets i think -- i think if you -- if the government does decide to open a fully -- fully-independent investigation into the police force, i think that will go some way to -- concerns, right? that they're acting with total impunity and there's no accountability i also think hong kong leader carrie lam right now is just so widely detested by all parts of society, right whether it's the business community, as you know has been seriously hurting. whether it's sort of the protestors or the pro-democracy camp, everyone sees her as having created this mess and i think that if a few heads do start to roll, i do think that, you know, it would go some way. but the question is what will china allow? right? what will beijing allow to happen here? >> in the meantime, focusing on the business community, are there certain businesses that are being targeted on one side

or the other >> sure. i think the really interesting thing about these protests is that if you get caught on either side, you know, the implications are huge, right? you mentioned starbucks. starbucks in hong kong is owned by maximus group, which is seen as being a sort of pro beijing business, right? so starbucks has been, you know, vandalized their stores have been smashed up there's calls for boycott. so that's one end of the things at the sort of protest end on the other end, you've seen sort of chinese companies like café pacific that has caused a huge fallout, right, obviously with the resignation of the ceo and the chairman and the sort of the replacement there of basically all the top management of café pacific over concerns that they weren't doing enough to stop their staff from, you know, participating in the protests and so that was the chinese pressure on the other side so i think in this case, if you sort of fall on then wrong end of both, you have problems, right? one way or another. >> thank you very much it's good to see you. >> thank you. >> shibani who is with "the

washington post. when we return, the race is on volkswagen pouring billions into building electric vehicles but will that move pay off take a look at shares of amd they're up 2% today and pacing the gain for the tech sector right now, by about 2.9% 3777's the last trade. amd hitting its highest level since march of 2006 and is it now the best performing stock in the s&p 500 this year. "the exchange" will be back "the exchange" will be back right after this long-term care product. it protects your family while providing long-term care coverage, should you need it. so you can explore all the ings ahead. talk to your advisor about brighthouse smartcare. brighthouse financial. build for what's ahead℠ brighthouse financial. we believe in education built for all people.,

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welcome back, everybody. check out the dow jones industrial average it's now sitting at an intraday high we started off this morning with the dow in triple digit declines you're now looking at the dow up by triple digits gain of over a hundred points to 27,793 again, this is an all-time high for intraday trading for the dow. we'll keep an eye on it as we get closer to the closing bell meantime, pouring into electric vehicles. something the ceo of rockwell automations addressed yesterday. he was asked what percentage of sales he thinks electric or autonomous vehicles will be in

20 years >> i would say electric vehicles within that 20-year horizon could easily be the majority of vehicles on the road and we're not just talking about passenger vehicles we're talking about trucks and buses. >> now volkswagen is joining the race to try to build electric vehicles phil lebeau is following that story. what can you tell us >> i want you to put on your thinking cap and answer this at the end of my report take a guess at the end of my report how much money in billions the industry -- the auto industry will pump into electric vehicles over the next four years while you think about that, becky, let me outline what volkswagen today did in tennessee. they announced they are going to be building soon their vehicle breaking ground on a plant down there. $800 million investment. the first electric vehicle will roll off the line in 2022. by the way, they already have a plant down there what they're doing is expanding

that plant this is what all the automakers are doing. ford yees uaw agreement means they're adding ev models to several plants and the gm lordstown plant is now owned by lordstown motors. they will build electric vehicles in that plant in ohio in the next few years. in terms of how investors look at this, tesla is all they're really interested in when it comes to electric vehicle investment now take a guess how much do you think by 2023 the industry will spend on electric vehicles? >> got my thinking hat on. i would say $255 billion >> close >> i know. i've got google too. >> $225 billion. >> that was my google. >> a quarter trillion dollars over the next four years >> that is huge. >> that's how much the industry puts into r&d together, worldwide, in one year and now they're going to pump that into evs over the next four

years. >> what are the sales in these things >> slow. slow very slow. less than 3% here in the united states and that also includes hybrid electric vehicles as well. >> all right, phil thank you. great to see you when we return, our next guest says if you want to buy retail stocks, you should shop local. he'll gi yveou six names that should be in your portfolio. the exchange is back in two minutes. and whatever this is. available to the public... never. smartdogs are not the answer. but geico has a simple tip. turn on "do not disturb while driving" mode. brought to you by geico. their medicare options...ere people go to learn about before they're on medicare. come on in. you're turning 65 soon?

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welcome back, everybody. retail store closures are on pace to top 12,000 and to set a new record by the end of 2019. but despite that, my next guest says there will still be winners in retail and he's found a bunch of them. right now with the load of retail names is jan kniffen. jan, people say go local when you say go local, what are you talking about? >> i'm talking about something that el foos like it's local we always want to go local because we know that local is outgrowing national in the last six years, mastercard will tell you that data says local businesses are thriving. why? they're for me, environment tally friendly, all the things, you know, you felt really good about. and so the customer wants to

feel good about retail right now. >> you went on a journey to go find these locals. >> i did >> you toured the midwest, went all over the place and came back with names that you think are great growth prospects some of these i've heard of, some of them i haven't but why don't we start with casey's? >> it's really a convenience store, but it thrives in towns of 5,000 to 10,000 people. i saw that in a town of 10,000 people and that seemed like a really small town but they really have tried to focus on 5,000 and it's a pizza shop. you buy your gas there all the convenience stuff. it's the brightest, friendliest, most well trained people you'll ever deal with and it feels like it's your local hometown and they belong to the local chamber of commerce and give to the local charities. and they have gone out of their way to feel like you are my store and people in the town will say that i'm going to my cas casey's. >> that stock by the way, up 31% year to date you think there's still room for growth >> absolutely. they are only in a geographic

area and they're trying to expand they passed up buying 700 stores from kroger because they thought they were too expensive. but clearly they want to have a lot more stores. >> we're going to talk about more in a moment, but i want to get you caught up. we just told you the dow had been sitting at a new intraday high for trading right now we are seeing some of those gains kind of go away at this point dow industrials still up, but only by about 27 points. there are some headlines that are hitting right now that says the china trade talks have hit a snag over farm purchases you know that's been a big issue. the farm purchases that china would supposedly be buying that they agreed to in terms of agricultural buys on this, that's been a sticking point it's been something that the chinese sounded like they had gone along with it it's been something that we've heard promised again and again from the administration to see what's going on. nasdaq also dropping at this point. it's also down by about 18 points dow jones industrial up by 36. trade talks obviously the huge issue that they've been watching so much.

jan, we are about out of time right now. very quickly, boot barn. you love that stock too. >> i love boot barn. i showed you my boots when i walked in. western is really going to be big. boot barn is a really strong player and they own the marketplace. they don't have any competition. >> jan, thank you. that does it for us today. right now time for "power lunch. great to see you thank you very much. welcome to "power lunch. i'm tyler mathisen it's going to be a busy hour of power. fed chair jerome powell, he has just wrapped up his testimony on the current state of the economy saying this is the new normal, folks. and we'll tell you what it means for you and the market plus google coming for your data the tech giant will offer checking accounts to consumers and that's one day after it revealed it has been collecting health details from millions of americans. and later, nike dumps amazon as the new ceo and former ebay head john donahoe makes his first mark on that company