tv The Exchange CNBC November 26, 2019 1:00pm-2:01pm EST
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>> adi i talked about it, december 15s. >> remember what i told you about housing. calm down. thank you, scott welcome to "the exchange." we have a big tuesday for you. can't stop, won't stop, markets again at new highs nearly ever sector is up how long can a rising tide lift ought boats or stocks. plus the $6 million burrito? one analyst says chipotle is better, faster, stronger, you the investor will be rewarded. and foxconn, two years later, not so much. a new study says the state coul be in shock.
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back over to you >>dom, thank you very much so if you're looking at these record high parks, you can see they have not had much of an impact, but not so says dallas fed president kaplan here's what he told weak business investment all relate to uncertainty kaplan is not alone in that view best buy, dollar tree and pvh all says tariffs are indeed putting downward pressure on the business
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are the new round the tariffs going to kick? does anybody have any idea what will happen after two years? i think the issue is they don't know thank you for saying that. with all due respect, everybody really is just guessing. >> yeah, i think the president doesn't know i think the chinese officials don't know do we get the new round or release this back-and-forth, maybe ease the tension a bit >> i think they're posturing to show that things will not improve. this is just signaling that they're still having a decision but the entree might not be what we see until next year.
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until this point, the market investors, companies, you see industrials going up, right? so companies were not sure what to expect, and they were planning for this massive spectrum of uncertainty that looked like a recession on one end and a full, you know, deescalation on the other. i think of the down side scenario is not as likely. i think people i think bo xi and trump have legitimate reasons for moving forward all kinds of things, so i think we have a fast forward i think exactly critically what happens between now and then, this would be a week deal,
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anyway. >> i think what's confusing is the stock market is supposed to be a predictor, what they call a discounting mechanism. stocks keep going up, even some of the data, which is still decent, is starting to weaken just a bit how do you explain it? >> i think it's turned over. i think a lot of what we're seeing in ism manufacturing numbers, i think that we've hit that weakest point q3 earns, on what we expect 2020 and beyond one of the things you mentioned is a really interesting point. in financial media, the conversation about the predictability of an inverted yield curve is too intense i haven't heard anybody talk about that since we've had the fed come in and make clear where they are and there's global and supporting accommodate we were also talking about the fact before we got on air that we talk in states at least about the u.s., the federal reserves
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insurance policy mechanism what we haven't talked about is over 50% of the world's federal reserves are accommodating, so just as we're looking at u.s. growth and global trend, that also is pushing 22% higher in global markets as well this is not even just a u.s. phenomenon >> central banks have to save us will they save us? >> they already are. >> do we need saving >> well, that's to be decided. i think lower interest rates definitely have an effect not only on sentiment by multiples. long-term interest rates do matter
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in future real was 3%. multiples mike actually be cheaper. >> thank for joining us. they may beginning to take a toll it's softening just a bit. those who say jobs are plentiful are declines what this this telling you about the holiday shopping season? joining us is steve oddland, the president and ceo of the conference board steve, two ways to look at this. yeah, we've had a decline for four months in a row but also the number at 125 is still doggone good we've had little ticks down.
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but we're sitting here at very, very high levels the worry is that the job creation is starting to slow down, not that jobs will go negative on us that's typical at this point in the cycle. we're at near full employment anyway, so there aren't great gobs of people sitting on the sidelines. the good news is the expectation index is quite higher, going into 2020, their expectations are the economy will continue to grow that syncs with the conference board numbers. so all in line with our projections. >> not terrible, either. i wonder, steve if job creation is a bit of a false flag there's 7.5 million open jobs? america. there's not enough workers you can't create a job if there's nobody to take that job. how much should we look at that indicator? >> well, that's exactly the
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point. therefore, when you see a consumer confidence come down, because people think there will be lower levels of job creation. what does it matter? you're almost at full employment, you've got more job opening. i agree, i think what you just set is right, that that's not the indicator to look at the indicator is what are people saying about the community >> it is all good. how accurate do you think it is. the consumer can be fickle, say one thing and do another >> if there's a tweet that sets, you know, i think you have to look at the overall levels that's what you started with
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and near history highs so i think that sell we'll have a. >> between thanksgiving and christmas day, which everybody is apparently freaked out about. >> it used to start on black friday now the biggest growth day is thanksgiving day you'll see a huge shift to e-commerce, but mobile is going to see a 30% increase. half of all e-commerce will be done on the phone this year. it doesn't matter where you are. all of that has started and it's all under way.
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>> i know that friday is like a big day, and they use that term "black friday" and it's a big story and will be on friday, but i've got to ask you this, don't tell anybody, does black friday matter anymore just between you and me, no. you have mobile cyber-monday is as big as black friday it doesn't matter anymore. this trade stuff doesn't affect the season everything's been in the stores. it was on the water early summer. >> it will, but the tariffs start to impact seen dollar general said that, you know, six cents of the 27 cents forecast miss was directly related to the tariffs. >> we're going tore the very first trillion dollar season so there will be a lot of big winners. you'll see the best buys of the
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world, targets, amazon, of course, you have the winners are lining up here we have good trends coming then you have the people in the middle getting squeezed, the from a additional retailers like macy's this is going to be big, it's good. we have a news alert right now, dom >> what we're watching is shares we have off their session highs, on my right-hand side. a report saying that a mystery
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firm was competing against google to buy fitbit it appears that that party was facebook, and according to the sources, the best offer they were going to provide was 7.30 that ultimately left out in the cold that particular deal for the 7.35 transaction that ultimately sealed the deal there was a sense in the stock there could be some bidding left to do, but sources say facebook is no longer looking to proceed a bid with fitbit. the story is on the website front and center. there's so much left to do here on "the exchange. here's what else. ahead, the $6 million burrito call. >> better, faster stronger. >> that's what one analyst says about chipotle plus global blood therapeutics new drug is approval three months early.
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the price tag is raising eye browse the ceo will join us it is nice. his haircut is "nice." this is the most-awarded minivan three years in a row. the van just talked. sales guy, give 'em the employee price, then gimme your foot. hands-free sliding doors, stow 'n go seats. can your car do this? man, y'all getting a hook up and y'all don't even work here. don't act like i'm not doing y'all a favor. y'all should be singing my praises. pacificaaaaa! with employee pricing, get $4,107 below msrp plus $1,000 bonus cash plus 0% financing for 60 months on the 2020 pacifica limited step up, please. empty your pockets. looks like you're all set for that business trip. you've got your smartphone, laptop, your other smartphone... woman: is this all the devices you have? your tablet... seriously? smartwatch, your backup tablet, and... woman: anything else in your bag? ...whatever that is. (beeping) this isn't working.
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one of their ideas for next year, raising the price target to 970, another 20% of up side from here, my friends. joining us is andrew charles, covering the restaurant space. i guess the first question is, isthe consumer trysting chipotle after a couple health scares >> thanks, brian, for having me. the consumer is trusting which i policy lay more. i think it's because they have done the right things to regain truth. i think that will help in my view the fact they are focusing on digital, pushing people down that venue is the right thing to be doing
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>> they have something they're coming out with called the chipot-lane. they're placen a lot of optimism on it. why is just driving a car to grab your taco going to change their business >> you know, it's a well-done reinvention that's game changing this is going to be something with a new access point with the consumers, with a third-party courier. i think it's something that enhances convenience more importantly really drives up side to chipotle's cash on cash returns typically they gather about a 40% cash on cash return for new stores so the facta hits better for the income statement as well, gives them permission to grow faster.
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>> have you seen it? what's different than a stats fast-food drive-thru >> you place your order on the phone. >> i was a passenger in uber when i did it, but regardless, you could do it, pulling over, whatever the situation might be for safety the important thing is you pull off, i'm here for my burrito, and they pass it off to you, and it takes less than 12 seconds. >> wow, don't do it while driving, by the way. is there any risk of burrito burnout? people want to move on to another food trend, or is chipotle really a super long-terms play? >> i think it is these are fresh ingredients held to a higher standard, based on
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data we look at, they have greater interest eating thing that are% perceived, if you will so really regardless of the cuisine, some of this could have a great impact you know, i think this is something that obviously expands beyond mexican as well combined with the fact you have improving economics as well, does argue better, if not more. >> good stuff there. andrew charles, appreciate that, upgraded stock today and it is moving thank you. >> you bed. 13,000 jobs, five so-called innovation centers foxconn promised all of this to wisconsin more than two years ago. it still hasn't delivered. we're going to dig into what went wrong.
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and impossible foods, possible valuation, what the latest news says autbo burgers, as we go beyond the meat, next . . no two patients are the same. predicting the next step for them can be challenging. today we're using the ibm cloud to run new analytics tools that help us better predict and plan a patient's recovery. ♪ ♪ ultimately, it's helping thousands of patients return home. and who doesn't love going home. 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,
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several are among the companies that have received subpoenas the probe is yet another focusing on whether companies allowed opioids to become too widely available let's get a cnbc news update sue? >> thank you so much, brian. here's what is mapping at this hour 20 people are now dead with more than 600 injured after an earthquake rattled albania earlier this morning, knocking down apartment buildings and hotels as people slept. after 36 years in prison, three maryland men have been cleared in the death of a baltimore teenager the three men were teenagers when they have sentenced to life in prison back in 1984 a storm grounding hundreds of flights in and out of denver on tuesday, as travellers prepare for bad weather that most likely will
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interfere with thanksgiving plans. the storm is making its way to the upper midwest ahead of the wednesday's big travel day. heavy winds could stop the balloon at the iconic macy's thanksgiving day parade from flying sustained winds could come to new york city thursday more. officials say sustained winds of at least 23 miles per hour would ground the balloon let's hope that doesn't happen that's the news update this hour back to you. >> random but interesting. i was a rope handler about 15 years ago. >> so cool. >> it was windy. i'm going to tell you something, this was hard to control the balloon. that's a lot of mass up there in the air. >> they're wondering whether or not they can keep them very low, but there are strong restrictions. >> the kids love it. things of the children, sue. >> exactly, brian. >> exactly
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children here's what's ahead on "the exchange." >> announcer: coming up, why dick's sporting goods should thank kanye west the defense secretary talk tiktok. >> grand hoppers, silk wrorms and crickets pack up to five times more antioxidants that a fresh swede glass of orange juice. >> announcer: we'll explaining, it's all ahead on "the exchange." when you shop small you help support your community - from after school programs to the arts! so become a regular, more regularly. because for every dollar you spend at a small business, an average of 67 cents stays in the community. join me and american express on small business saturday, november 30th, and see how shopping small adds up.
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hi, morgan. >> hi. sportsing goods, a chinese spy threat, baked meat and real bugs that you eat. these are the topics we're going to digest? "rapid fire. welcome, one and all first my apologies in advance. dick's sporting goods raising its guidance as well stocks soaring when you dig through the numbers, it all kind of makes sense. boosted by apparel and
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footwater. bill griffeth, they seems to be firing. >> this would be breakout for the chart watchers this is a stock that has gone nowhere for the last few years this is taking is back to levels we have not seen and dick's sporting goods is the only publicly traded pure sporting goods out there this has been a sector that's suffered in retail. >> how is the easy sneaker. >> i think it gets a lot of buzz i believe kanye partnered up with adidas in the past. the 6% number is huge. they were also reducing than
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delivery time, we talked about retailer restoration hard war is one of them >> this kind of goes, morgan remember last phone. they decided to stop telling ar-style weapons they got criticized. the stock is up 46% since they made that announcement in other words, pulling back from those types of guns has not hurt the company if anything, the stock has responded. >> i think there's a traction gain around esg. you can make the argument that a ceo making a deciding like that fits into that esg model, that more investors seem to be flocking too, and not only that, but millennial and gen-z consumers do care about it going back to the easy factor, though, this is a company that just a couple weeks ago held a
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fashion show with a-rod. >> he's everywhere. >> he's dating j. lo or a-lo or j-rod before we go on to the next, can we throw up that picture of the easy sneaker is that a good look sneaker? >> where is it >> uh, i'm going to say thumbs down probably they are comfortable. >> i look comfortable in sweatpants, but nobody wants to see that. >> i'll spend my money on the -- >> it looks like a carvelle ice cream cake. >> fudgy the whale let's talk about tiktok. lawmakers having calls for more scrutiny, because tiktok is owned by a chinese company
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earlier today, you suppose with ryan mccarthy about tiktok here's what he had to say. >> the army ceased the utilization of tiktok immediately when it was brought to my attention. we began a review with army cyber-command, and the vulnerability. >> the army wassi utilizing tiktok. >> senator schumer sent a letter, saying what is going on? why is this involved in recruitment efforts? there's two things to keep in mind here. the first is the army has launched a new marketing campaign, and they're looking to recruit. it is like they have quotas to -- going back to the gen-z comment, and i think it speaks to how the u.s. government is
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thinking increasingly thinking about data now you see it with tiktok. >> i just wonder i'm going to -- i'm going to sound like a really old man, i know that. >> you can't by any older than one of us. >> bite dance not fully a part of the chinese government, but we know they semi-control some of their companies and wields outside influence. imagine if a representative from the chinese government showed up at your house, and we'd like to put a microphone or camera in your home, or your children's bid room that's what i think the senators think is going on here they ask for data. >> and facial recognition of your kids. who knows how it's being used. >> what happened to vine this is such a popular app right
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now, and this is what vine used to do, appeared twitter go the rid of vine three years ago. so why can't there be some competition that we don't have to worry about national security for, right >> i diplomat know -- didn't know what tiktok. >> it used to be called music leaf. >> i get it in that sense. you know what i'm saying >> that's the concern. >> that is the concern you're going to facially recognize people's kids, because they're doing this in their room do not miss the director the creator community on "closing bell" today at 4:00. i'm sure there will be a lot to discuss there. >> i would also plug that interview with army secretary ryan mccarthy. we covered quite a number of topics
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>> who was that? morgan brennan >> yes, one ms. morgan brennan next up -- >> we're still off the rails, right? impossible foods is launching a new funding route. they're seeking a possible valuation of $5 billion. they reached $2 billion back in may. in order to reach that current valuation, impossible sneeze to raise about $400 million for this round the news helping on the rival beyond immediate is the hype as fake as the protein? >> i think it's interesting we saw what impossible did for burger king. a lot of people thought the miss -- and one of the reason they thought it was lower than expected is because they didn't have a plant-based alternative
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meat it would bless interesting to see, this talks about a -- how it trades in tandem with beyond meat it would be interesting to see if they live up to the right this market is going larger and larger you have to be in the game. >> but they better hurry, has anybody looked at beyond meat lately it was the hottest ipo so far and it's coming back to earth. >> which is still not bad. >> realie is setting in. >> here's the question we don't ask. is it good do you like it >> somebody does. >> i had the sausage, and thought it was all right salty. >> my dad, as we no is a burger king franchisee, so i sampled
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the impossible whopper it's great he says it's increased foot traffic in the store. >> they also gave them out at investor day, and people couldn't really matter bugger for dinner. people are starting to put them on the menu for sustainability reasons. jane wells has the bug story from out in oakland, california. >> hello, jane. >> brian, hi, guys, it's almost guaranteed the first thanksgiving somebody was eating an insect. hmm, coconut brittle now nearly 400 years later i'm going to show you, this is a beeting bungalow the planet's population is exploding, there are concerns. are we finally ready in america
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to eat insect protein? look at these. barclays predicts the insect protein market will grow to $8 billion. there's almost 2,000 edible species. why aren't we eating them? they use almost no water, so you may sea ew, but demand is outstripping supply. the only cricket farm, the play where i'm at is a vertically integrated operation, really the big thing is, can you get people in this country to eat this stuff? not live, of course. the hope is that millennial and gen-zs are more adventuresome. what do you think? you don't eat them live. >> how long do you think before we see a bug-mac
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>> oh, wow. >> i will tell you this -- >> i've been waiting to say it all morning. >> n >> necessarily's -- the fda does not have crickets as an acceptable dog food. >> so, jane, thank you to you and your producer. we've got chile lime cricket and chocolate crickets here on set, and all of us will sample one. >> it looks like a marijuana bud. >>. >> you put chocolate on it how bad could it be? >> chile-lime is good. >> yeah, great the chile-lime takes like -- >> reporter: they have a bit of a nutty taste.
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>> i love how jane is trying to wake one up when its doom is assured. >> besides the nutty taste, these are actually the beetle parents that give bird are birth to what goes in the snacks these mealy worms. they call them mealy worms, but they're really beetle larva. >> oh, no. >> that looks like a hotel bed i stayed in a few years ago. >> bon apetit, everybody. >> the chock las was okay. >> jane wells always bringing the heat >> why is it still moving? >> ew. >> thank you, morgan brennan homebuilder stocks jumping today despite a slight drove from september we'll tell you what's behind
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new from at&t. we have a news alert off washington, d.c. >> the trump/pence campaign suring a statement blasting google for proposed changes that google put in place last week that would affect political campaigns. google will change the way that political campaigns are allowed to target audiences through the google service and also on youtube. the trump campaign not happy about that, blasting that, saying they should reverse that i decision in the press release here, they're also take a shot at twitter, saying much has been made of twitter's equally
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concerning decision to suppress speech, but because advertising on that platform is ineffective and only a tiny percentage uses twitter, their impact is insignificant. google, however, the trump campaign says here is massive, the reach is enormous, therefore the decisionser significant. democrats have also voiced opposition new home sails fell in the month of october, but that may by hiding the real story diana olick joins us with more. >> reporter: in october compared to september, the september number was revised much higher, so this really doesn't mean mao that much.
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dr horton, le nard, and k.b. were already up, about you it looks like there's still room to grow now price games for existing homes are heating up again, according to case-shiller. as demand is clearly on the lower end. builders are trying to pivot, but they're still up against higher costs for land, labor and regulatory compliance. >> thank you, diana. investors making effort, the new drug got approved three e.ndays ahead of schedul the ceo will weigh in on that hot stock, next.
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more world wide. our drug is to make the goal available free for patients in tus and make it affordable for patients around the world in india, africa. that's something we're working on the first mission is to get the drug approved in the u.s >> thanks. look forward to hearing more >> thank you so far all it's brought is mntntoime itight get even worse. that story is next
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the trade off is three billion in incentives. they pay as they grow. that's a good deal >> that was former wisconsin governor scott walker in 2017 touting the initial deal between the state and fox conn to build a giant facility the 3 billion dollar was 3.6 billion in subsidies the subsidies like those could cause more economic harm than good michael, welcome first off, what did your study find about subsidies and the economic growth they often promise? >> we find they generally don't work they don't create the economic development they promise in the case of fox conn the likely effect is for the plant of their currently building that
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fox conn's gdp will decrease over the next 15 years because of the subsidies >> we're not going to pick on wisconsin. it's great state got a lot of friend there is every state does this. everybody is tripping over themselves to offer more to companies to move their particularly in states that may be need a little bit of help because they don't have 365 days of sunshine. where does this end up >> it ends up in kind of a race to the bottom where every state is trying to offer subsidies to sway companies to locate in one place or another it's a problem that's been happening since the 1930s when mississippi offered the first subsidies to try to sway manufacturing firms to locate there. the problem is that the studies that claim such amazing benefits of these subsidies never actually look at the cost of taxes and the economic impact of taxes that need to fund the subsidies. as a result, we look at the 3.6
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billion that wisconsin has promised to fox conn and find that could reduce the state's gdp by about 20 billion dollar a loan >> i guess you would agree to reject amazon's bid for the second headquarters? >> absolutely. amazon is really good example of where these kind of deals go wrong. virginia and new york city and every other state in the city didn't need to offer subsidies amazon was very clear in its announcement of the decision that it was all about having talented tech work force not about the subsidies. in the case of virginia was having great business climate. the only reason that amazon expanded to new york city and kind of split hq2 into two places is they were worried that virginia didn't have enough workers to satisfy their demand. if amazon had gone to montgomery county maryland just across the d.c. area from arlington, they could have earned as much as
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eight times as much subsidies as they got from virginia it's pretty clear that subsidies didn't matter to amazon's decision >> how much of this is second derivative impacts they do build this whole thing at some point, what about the other things are there other immeasurables about people moving in >> that's often the argument that's made. as i was saying earlier the academic research finds after the fact when you measure the impact after these subsidies these cities and states don't seem to fair much better and in some cases they fair worse than places that did offer the subsidies. the only beneficiaries are primary beneficiaries that are found from these subsidies is the subsidizes company themselves >> very quickly do you see them trickling off or do you think this trend will continue >> it's going to accelerate like it's been accelerating already
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>> all right outside of the aforementioned. all right. that does it for the exchange. i will join tyler in a min on power lunch which begins right now. we will see you in a moment for an all virginia addition of power lunch. welcome, everybody tyler mathison here. here is what's new at 2:00 for a tuesday. stocks are climbing to record highs. evening bigger market boom or is the bubble about to burst. plus cashing in a top analyst says square's cash app is about to send shares of the company soar and gave the stock the highest price target on the street he will be here to make his case later, the visco inferno wall street using this hot pho
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