sundar and what this company has the capability doing going forward. i like it. >> joe >> pick a financial but the best one remains j.p. morgan. >> there it is 135. everybody, have a great weekend. you as well. "the exchange" starts now. . >> scott, thank you very much. we welcome, everybody "the exchange." i'm tyler. here's as when here's what's ahead. we started with major fears and worries but now we got a jobs jolt good vibes on china. and a major rebound today. so we'll debate what is next plus, netflix and thrill newnumbers on that epic the irishman and will they be enough to boost the stalled streamer. netflix. and the under the radar name that will have you cheering for more and more holiday shopping boxes to land on your doorstep but we begin with today's rally

and it's a big one seema modi has the action at the nyse hi, seema. >> hey you said it. we had a rough to the start week but now we are back in record-high territory. 3154 is a level to watch on the s&p. a trifecta really driving the rally today. that's stronger than expected job reports that we got this morning. plus, china is saying that it will waive import tariffs on some u.s. soy beans and pork raising hopes of a deal being secured before that december 15th tariff deadline and consumer sentiment data resurrecting that strong consumer narrative that has really been front and center this year. and that's really providing strength to a number of retail stocks the breadth of this market rebound is also notable. financials, staples, small caps, even energy all participating in this rebound the stakes are high going into next week. we have the fed and ecb policy meetings that uk election which could have implications on a brexit deal

plus, the looming tariff deadline just nine days away for now, though, tyler, the s&p sitting on 50 new highs. >> seema, thank you very much. seema mody at the nyse that blow out jobs report keeping investors smiling this morning. 266,000 jobs added to the u.s. economy last month that number beating even the most optimistic estimates. with strong job growth and low inflation, is there anything, anything to stop the bull's stampede let's bring in gus he's chief economist at pnc financial services group and simon, head of investment strategy at pro shares gentlemen, welcome let me start with you. these job numbers just keep getting better and better. how big a surprise was this even if you take out the gm workers going back to work >> yeah. this is pretty big as you said, even if you take gm out, it's a big number and the thing that you said in your intro was spot on we also have low inflation it puts the fed in that spot of there's nothing they can do. they got on the wrong foot last year because i think they looked at the unemployment numbers. but we've got 1.3% on the pce

deflator that's well below 2%. so they can't hike even though inflation's low. but the consumer's so strong that it should be able to continue to help the economic expansion even with the weak manufacturing. >> gus, is there a knit to pick anywhere in this jobs report >> no. i mean, i've been looking it over i've been talking with my colleagues we had strong job growth in november upward revisions to september and october. unemployment rate declined wage groewth was good so this was about as very good a jobs report you can get with really no red flags in it. >> simeon, for the market, as you look ahead to 2020, you just hit on something that -- that -- it's really important. reasonably slow growth and a little bit of inflation and good jobs numbers, a strong consumer. it doesn't get much better than that for stocks, does it >> it doesn't. now, the fair point is if you take pes in the context of low inflation and low yields on treasuries, you have to admit

the s&p 500 is somewhere around fair value the potential deals, though, however, on mid and small cap stocks which have drifted down over the last decade from parody valuations to large. somewhere around 60 cents on the door and we've seen small -- in particular start to outperform large in q4. >> gus, do you -- do you -- do you quarrel with the idea that the environment for stocks is about as good as it gets low inflation. modest growth. low unemployment a strong consumer. >> no, i don't and, in fact, i do expect to see growth slow a bit in 2020. we are going to have more drag from trade and slowing global economy. and then the labor market is getting tighter. at some point, job growth will have to slow simply because there aren't workers out there so i think we will see a bit slower growth next year. and so that may be a bit of a weight on stock prices but still i think the conditions right now are quite solid.

>> how, simeon, does trade play into all this? on any given day, trade headlines are moving the market one way or another up or down but over time, over this year, the market is up 25% or thereabouts. despite persistent trade worries. >> well, it's actually, i think, contributed to being in this sweet spot because we -- the sweet spot to some extent is because we have tight labor markets but lots of manufacturing capacity capacity utilization is under 77 that's way below any sort of tightness in that market and that comes from the uncertainty. so in some paradoxical way, a little bit of uncertainty in trade has actually left us with excess capacity. >> you know, simeon talks about the small-cap area, mid-cap area gus, what do you like as you look ahead to 2020 in terms of sectors or market cap, et cetera >> you know, i think consumer

industries will continue to do well in 2020 it's the strong job growth and the good wage growth that's really pushing the economy forward next year. and then also, home building has enjoyed a bit of a rebound lower mortgage rates they're down by about a percentage point over the past year or so i think there is pent up demand for single-family homes. and so i expect home building will be a driver of economic growth in 2020. >> gus, if you had to point to one thing that could trip this market, what might it be >> i think it would be greater trade tension between the united states and china we've seen some hopeful signs recently but it could certainly dial up again and i think that that could put the -- the global economy and the u.s. economy in significant risk. >> simeon, same question to you. is there something out there -- he -- he tagged trade. so you think of another one. he got it. >> if interest rates spike too quickly, we've got up on the ten year about 40 basis points since august if we drift in sort of a straight line to 3, 3 and a

quarter percent. if that happens in one quarter, that would be a hiccup for the market. >> thank you, gentlemen. we appreciate it gus, thank you very much have a great weekend, guys appreciate it. let's talk about where the jobs are with just 18 days left until christmas. and the holiday shopping season in full swing. i can't believe it's 18 days left my god retailers have been hiring at a brisk -- maybe even record -- pace and kate rogers is here with the numbers. hi, kate. >> hey, tyler. after a sharp spike in 2014 and really a leveling off through 2017, retailers have spent the past two years staffing up in record numbers as you can see, approaching nearly 800,000 seasonal workers this year alone. now, you can thank, of course, amazon for a lot of that growth. the retailer is more than one quarter of the big number. they hired 200,000 workers that's twice the amount of worke workers it hired labtd year. macy's also adding additional 80,000 workers as you can see, kohl's adding another 90,000 seasonal workers.

target adding 130,000. many of those workers also become permanent fixtures. target says that last year more than 40% of its seasonal team actually stayed on board after the holidays ended gap added 30,000 workers that's half as many as it added last year. the company neaims to make up tt difference by offering additional hours to current staff. that's something walmart is also doing. it's really a smart move in this economy where we all know workers are in low supply. the trend has caught attention of lawmakers in washington senator elizabeth warren released a bill earlier this week that would require companies to offer current employees more hours before hiring new workers and would give part-time workers access to benefits like pensions and family and medical leave tyler. >> kate, come on over. i know that you've been out and about and shopping a little bit. you spent black friday at target. >> i did. >> what did you buy me >> well, i can't tell you, tyler. i mean, 18 days left till christmas. you'll have to stay tuned for that but it's interesting to see a

lot of these retailers have shifted some of their hiring strategies to delivery fulfillment. same-day order and pickup. so target actually allocated twice as many workers this year to same-day delivery partnership with shipt and also curbside pick up. so there is a lot of people working in the stores. the stores look beautiful. the customer service is going well the stores were emptier than i think they were in years past. you saw more people come in around 11 or 12:00 in the afternoon normally, black friday, there's big lines out the door. >> yeah. >> that's not something i saw in the target i was in this year but you can see people running out for curbside deliver. >> go back to that point you made earlier about the percentage of the seasonal workers who end up sticking as full time employees. >> so at target, they said 40% last year wound up staying on after the holidays are over. which is really interesting. and then the other trend that i thought was so interesting is what we saw gap and walmart. going to your current workers and asking them if they want these hours before you go out

and try and find workers in this tight labor market and then spend the money to train them. right? it seems like kind of a smart strategy. >> dance with the people that are there first and then go out and if you need more, do that. kate rogers, thanks very much. >> thank you. >> all right good here's what else is on "the exchange" this hour. coming up, a huge provision in the new nafta deal could be on the chopping block. and it could have a major impact on the tech companies. we'll explain. plus, a chicken sense of urgency. that's what one analyst is saying about the fast food industry so who will win? and the millennial mismatch and the millennial mismatch in home building what do advisors look for in an etf? and the millennial mismatch in home building i tell clients, etfs can follow an index, this is "the exchange" on cnbc it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term?

my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

exchange," everybody busy news day in the world of media and technology and here to break it all down for us is julia boorstin julia, welcome first up, let's talk about the "irishman" and netflix and what the numbers say about the -- the pop that netflix got from it and explain to me how netflix monetizes this property. >> well, tyler, it's all about drawing and keeping subscribers. and "the irishman" reached over 17.1 million unique u.s. tv viewers in its first five days of streaming that's according to nielsen. on its premiere day, wednesday,

over -- before thanksgiving -- over 750,000 viewers completed the 3 1/2 hour film. now, that's an 18% completion rate, which is the same first-day completion rate as bird box despite that film being just two hours but "the irishman" rating was nearly 4 million lower than bird box's. still, martin score saysy will reach many more viewers with "the irishman. now, in theaters, "the departed" sold 20 million tickets. think about how many the irishman reached it just 17 days -- i'm sorry, 5 days. 17 million in five days. >> if you took that number and you put a ticket price on it, what would it amount to? >> well, tyler, you have to be careful here because 17 million people may have watched part of "the irishman" over thanksgiving weekend but you can do that on y your couch

so i would guarantee you not all 17 million people would have gone out to a movie theater. but if they did, it would have been $155 million box office so pretty significant. but we have to remember it's kind of apples and bananas. >> i don't mean to catch you off guard and -- and please forgive me if you don't know the answer. but do we have any idea what this movie cost to make? >> well, yes it has been reported that the budget was as much as $200 million. it's sort of the 150 to $200 million range. but remember you have some very big-name actors. all that technology to make those actors look younger. you also have a huge marketing budget that was spent here and with movies, you often give box office bonuses depending how the movie performs with this, they had to pay everyone upfront because there was no international release schedule everything was all just about streaming and what it did in terms of drawing subscribers to netflix and making people feel like that subscription is really valuable. >> it's fascinating to see those actors today and having grown up with so many

of them. de niro. let's move on to tiktok if we might. the popularity continues to grow so does the scrutiny it faces now from capitol hill. ceo heading to washington to try and get ahead of some of these issues and the issues are much different than those that facebook faces explain what's going on with tiktok >> well, that's exactly right, tyler. in part, because tiktok is a u.s. division of a chinese tech giant byte dance now, breaking down all the issues first, regulatory missteps beijing byte dance did not get clearance from the committee on -- which it turned into tiktok in the u.s. now, the government has launched a national security review of that acquisition. second, censorship tiktok has based criticism for removing content that's critical

of china third, a lawsuit accuses tiktok of transferring u.s. user data to china tiktok denies it fourth there is the issue of collection of kids' data tiktok settled with the fdc over violations back earlier this year and then this week, settled another lawsuit alleging that it collected and exposed children's data and then fifth, we have this question of the security of the platform senators have raised concerns that it could be susceptible to manipulation by foreign influence operations >> so there are a lot of questions to be answered here. how hot is it likely to get? i mean, is it going to be adversarial? or -- or sort of inquisiteorial? >> the review is currently ongoing. there is this question of whether they should be forced to -- to spin off this company or spin off those assets that were required two years ago. but i think this is really a multifront war here. it's not just the question of

the sifius review. it's really is this app a u.s. security threat? and there have been a number of senators who have said it is i think the fact that they've already had to settle a number of issues in terms of violations of these regulations that protect kids' data means they've got a lot of different issues to handle here. so to say that the ceo will be playing defense is -- is -- cannot -- you know, be an understatement. >> let's move on to another one that you're going to have to explain to me, julia and it's house speaker nancy pelosi pushing to keep a key legal shield for tech companies out of a new trade agreement with mexico and canada the move would be a serious blow to the likes of google, facebook, and twitter. it's called section 230. what is it why is it so important and why are the tech companies fighting this move >> well, tyler, you're right section 230 has been absolutely crucial to the growth of facebook, youtube, and twitter because what this rule does.

it makes these companies not liable for the content posted on their platforms. so a number of lawmakers recently have raised concerns that this protection has enabled the spread of fake news, as well as offensive content so the internet companies are lobbying to include this new -- this immunity that's helped them in the new trade agreement but if nancy pelosi succeeds in stripping it out, it could be a key first step in removing that legal shield here. >> so it's in there now. but -- >> yes. >> -- but speaker pelosi would like to see it go, which would be a real precedent, wouldn't it >> it would be a real precedent. i think it's one of these things that this has been talked about by regulators for a while now. particularly, over the past year there have been a lot of questions about, you know, the livestream shooting on facebook. whether youtube is adequately pulling down offensive content and the thing that has protected these platforms during all of these scandals over the content on their -- on their -- that they're serving and that they're

distributing is section 230. now, remember, tyler, that the tv networks, the broadcasters, they are held to a very different standard and if you removed section 230, then it would hold the internet companies to the same standard as -- as other content distributors so it would really be a very big deal yes. >> julia, have a great weekend thanks very much. >> you too, tyler. >> good to see you coming up, it's a perfect storm of record online shopping and china turning away our trash it was one of the big imports from the united tates. but there are companies that are benefitting now from america's cardboard crisis the ceo of republic services, the stock up 23% this year will join us live. plus, nordstrom taking a cue from ant colonies. yes. ant colonies for faster delivery. we're telling you how they're doing it ahead >> deeper data at cnbc november rail traffic fell 7.5% versus the same month last year.

year to date, rail car loads in 2019 are down from last year's levels 4.6%. no one likes to feel stuck, boxed in, or held back. especially by something like your cloud. it's a problem. but the ibm cloud is different. it's open and flexible enough to manage all your apps and data securely, anywhere, across all your clouds. so it can help take on anything from rebooking flights on the fly, to restocking shelves on demand, without getting in your way. ♪ ♪

welcome back, everybody, to "the exchange. markets still in rally mode big time following a blockbuster jobs report earlier today. dow now on pace for the largest one-day gain since early october. and here are some of the movers at this hour ulta shares continuing to move up on the back of strong earnings

up more than 13% right now and on pace for their best day in, get this, three years since march of 2016. more than three years. shares of tesla up 2% after morgan stanley raised its bull case price target on that stock from 440 to $500 that's based on the potential of the new cybertruck and a new optimistic scenario over in china. apple up 2% and hitting all-time interday high today. it is now positive for the week. and on pace for its tenth positive week out of the last 11 take that streak anytime now, to sue herera for a cnbc news update. >> hello, ty here's what's happening at this however. four people including the shooter were killed and seven others injured in an attack at the pensacola naval air base in florida. a u.s. official says the suspect was an aviation student from saudi arabia and authorities are now investigating if the event was terrorism related.

>> we're a military town our hearts and prayers are connected to all those that serve us every day and certainly, the expectation that this would happen here at home was unexpected. but i can tell you that all of our sympathies are with the men and women who are out here on this base. >> the navy sailor who fatally shot two people at pearl harbor before then killing himself was unhappy with his commanders and had been undergoing counseling the sailor also faced nonjudicial punishment for minor misconduct more than 140,000 people around the world died from measles last year that's according to the world health organization and the cdc. the majority of those deaths were among children under the age of five. there were nearly 10 million total cases. a 170% increase since 2016 you are up to date that's the news update this hour ty, back to you. >> i think the sickest i ever was, sue, was when i had measles when i was about 7 years old. >> you were young?

yeah it's a terrible disease. >> before they had the -- shows you how old i am before they had the -- the inoculations against it. >> well, you're lucky you survived and we've got you. >> yeah. good stuff thanks, sue. >> uh-huh. >> here's what else is coming up on "the exchange." ahead, uber voluntarily publishes safety issues at the company. and some say that's a good thing. one digital bank is quadrupled its valuation in less than a year. and the under-the-radar way to play the online shopping boom exan cinupn he"t chge." at fidelity, online u.s. stocks and etfs are commission-free.

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a few stories that should be on your radar it is time for rapid fire. here to break down the headlines, robert frank, meg, and bill griffeth. first is uber. releasing its long awaited safety report. it is the first of its kind from a gig economy company and the details are disturbing deirdre has those details and they really are changing deirdre. >> yeah, they absolute will are. let me give you a few of the highlights 515 incidents of rape or attempted rape last year 9 people murdered.

58 people killed in crashes. now, over the full two years that it tracked these incidents, nearly 6,000 reports of sexual abuse. but let us show you another screen because this is really, really difficult to put into context. these numbers are grim they're appalling. but we really don't have a lot to compare them to tyler, you said that first of its kind from a gig economy company but really this is the first of its kind in many ways we don't have even a taxi company's numbers to compare them to. we do have the national average of traffic accidents and fatalities, for example. and it is much lower but what this really tells us is there's so much we don't know about what these gig economy platforms are doing. uber rose to ascendness by letting almost anyone with a car get on the platform. now, they have to police it. now, they have to make sure that the background checks are adequate enough. and i just -- i brought this to show you guys. actually, an intern searched far and wide for physical newspapers this is a "wall street journal." uber taking out a bunch of advertisements in newspapers

across the country this is "the san francisco chronicle. and here's "the new york times." it' it's in many others. >> they say -- say in those ads and -- and my notes indicate three to four million individual trips a day within their system. so we -- but it is -- >> billion, isn't it >> 3 to 4 million trips per day. >> i thought it was worldwide. i thought it was 3 billion no >> so it's 2.3 billion rides completed during the two trips that is a certain number of million every day. this is an enormous amount so these numbers, yes, they're extremely high they're extremely grim but as a percentage of the trips that uber has taken, they represent 0.0002%. >> yeah. yeah but tell that to the 6,000 people who were sexually assault assaulted. by my math, that is more than eight assaults a day tell me another business where

their customers are sexually assaulted, eight of them, per day. >> not customers so that's drivers and customers together. >> do we know? >> either way. either way, you're right that's astounding. name any other business. >> as deirdre points out, taxis don't put out statistics as well. >> it does seem impossible to put this into context and i think tony west, uber's chief legal officer had an interesting quote. uber is a reflection of the society it serves. and this is a hard conversation to have but i think what troubled me more reading this was that the companies, uber and lyft, don't have in place practices to share the findings of researching driver background checks that come up as troubling. they don't share that with the other company. they say they plan to but don't have a date for when they're going to do that when you don't have things in place that keep safety first and foremost like that you have to worn,nder why it can't be a competitive advantage to say we don't share

the background. >> i'm surprised the stock is not down more. but i think we should applaud them for releasing this to your point because lyft will have to follow through now and maybe new york taxis will have to follow through and maybe all the other companies people have been asking about will have to match it. >> yeah. and robert, not just the ride hailing companies but gig economy platforms as a whole we know that airbnb has had issues with safety. but i think that the next question to ask here is what happens to accountability? uber, remember, at the end of the day says it's just a platform its drivers are freelance contractors. so are they actually going to be held accountable for these incidents? remember, there was a "washington post" article a few months ago saying those acting for uber are trying to make sure they don't pick up liability for these incidents. is that going to start happening? in that sense, this is a big step forward and it really does expose uber to a lot more steps to follow. >> they should be held liable. come on. i mean, who cares if they're contract employees they're part of the platform. >> yeah.

>> they should be held liable. >> yeah. if someone here is a contractor. they're still here they're an employee of this -- of this company. deirdre, thank you very much deirdre bosa pop eye's. lighter topic. >> lightly battered. >> i better watch out. mcdonald's is expected to enter the chicken sandwich wars with its own offering starting next year the fast food giant's crispy chicken sandwich and biscuit has advisor groups darington feeling peckish and it's going to be a big hit in america we -- i guess we need -- >> what are they going to call it that's the most important thing. mcdonald's has got to have a clever name. >> here's the interesting thing. it sounds great. they're doing a -- they've already got a chicken sandwich this is going to be better but -- but they advertise it as having a full-muscle chicken breast what are we getting otherwise? and then are these chickens that are like bench pressing all day?

or what is a full muscle chicken breast >> isn't it an origin of the old saying parts is parts? who cares what part you're getting. i've been long a fan of the wendy's spicy chicken burger chicken sandwich which is terrific. and you're seeing this more and more the pop eye's chicken sandwich incredibly popular and of course, we've got the one that says eat more chicken chick-fil-a. yeah it's really who they're going at. >> i think we're heading to a golden age now of chicken sandwiches. >> of that and social media around it. i mean, it was really the twitter wars that led to the chicken wars monicker here and i think bob darington in this 15-page research note about chicken sandwiches that i did not expect to be reading this morning when i came to work. he said he is looking forward to seeing mcdonald's buff up yo tweets that is in this wall street research note. >> is that right >> yes. >> we'll have to have a taste-off. let's do that. i don't think it's out yet. >> it's being tested in two

markets. tennessee and texas. >> advisory groups bob darington will be on power lunch shortly we will have him recite all 15 pages of that research report about the chicken fight. for dominance over the chicken sandwich market. let's move on. you readyfor some mind-bogglin numbers? digital bank chime has quadrupled its valuation in less than a year. the startup now worth $5.8 billion raising plenty of capital after a rough year for the ipo pipeline this is a -- i guess a non-bank bank, right? >> yeah. it's one of those fin tech banks that doesn't have any brick and mortar and it -- you know, in -- in many ways, i think it's the future obviously it attracts millennials. that is their method if -- if you can do all your banking on your iphone, i think that's -- that's the way to go and there have been some winners and some losers in that category and chime seems to be the one that's emerging right now. >> it's -- it's 20 times revenue in terms of valuation. so you really have to expect a

lot out of this company. you also wonder in a downturn, here's the company that's offering free checking, no overdraft, early direct deposit. so they're making it super attractive to take cheap capital from investors and buy customers for now. but over time, are -- are those gonna be good, profitable banking customers? that's going to be the big question. >> fdic protection and the whole thing comes with it, right >> you would think. >> if they got a bank charter, it has to. they have to have it. >> still, i think the -- the business model of the future is going to be they're going to have to have some brick and mortar somewhere when there's a power outage of some kind or servers go down. >> they had outages. they had three since july where people were stuck without being able to use their cards. >> how much do you folks use mobile banking apps? do you use 'em at all? >> yeah, sure. >> deposit checks with 'em >> yeah. yeah absolutely. >> i do too. do it all the time love it. >> even baby boomers do this apparently. >> even us. >> when's the last time you walked into your bank?

>> up to the bank and used the atm. but i have not been inside of the bank -- >> when's the last time you were inside a bank? >> i had to take out a big check to buy something very large about a year ago. >> yeah. >> really interestingly, i think what this says more broadly is companies like this, some companies like this, are still able to do really large funding rounds in the sort of post wework time, some companies can still raise $500 million i mean, it is pretty interesting and pretty reflective. >> amazing valuation for such a young company. >> i think i chew gum more than i went into a bank. >> i think that's true i think the last time i was in there -- >> vitamin b gum. >> it wasn't really even for banking. i went to get something notarized i think. >> don't need a bank for that. >> yeah. you don't need a bank for that. >> exactly we got people here that do it. >> oh, now he's going to call me oh boy nearly everything is on its way to being automated, including the way we shop.

and one store is taking some of its cues from the insect world in a bid to modernize its shopping experience. cnbc.com retail reporter lauren thomas is going to do the beautiful walk in right now. lauren, come and join us explain what nordstrom is doing and why. >> yeah. so if you're in retail today, you're probably trying to do one of two things. which is cut cost, obviously and get as close to your customers as possible. so nordstrom is the first retailer to bring together these technology from two startups atabotics which actually builds the system based on how ants store their feed it was really cool to go out to california earlier this week, i was out there and was able to see this in action. so nordstrom has teamed up with at&t abotics and tompkins robotics it's currently testing at one out in the san jose area and essentially, what nordstrom can do, the huge selling point here is they can reduce the size

of their warehouse by 90%. so as you know, you cover real estate normally, companies to save money, they plant these warehouses out in the middle of nowhere. and then it just takes even longer to get, you know, your online order to a shopper's home but these kind of micro-fulfillment centers now can be smaller and closer to customers. >> i would -- if you would have given me a list of 100 retailers doing this, nordstrom would have been the last one. i mean, target i could see walmart i could see. >> you think low volume, higher end, right >> but i haven't thought of nordstrom as a cutting-edge kind of retailer ever. >> agreed. i feel in many ways, the department store sector at large, macy's, jc penny's, kohl's, a lot of these companies don't typically speak to their supply chain like you said, it's the walmart and target and amazon and best buys of the world that have really been on the forefront of some of those innovations. i think they're making a big bet. they told me they're doing this right now at one center but they're planning to bring it to more down the future and they've got these smaller format stores in l.a. and new

york they plan to use these service. >> i see how it cuts down inventory for them what is the benefit to the consumer >> sure. well, hopefully, you will a get your order faster is see i mean, nordstrom now is offering same-day delivery in more markets and it's using the center on the west coast they're actually doing all their beauty assortment there. so it's all your makeup. all of your -- if you buy makeup on the west coast, chances are it's coming from this one fulfillment center now and the other big selling point nordstrom told me is they're just getting better at packing more items into one box. i think in retail right now, you hear about cardboard waste the proliferation of that. >> i'm waiting for the startup that stops you from having to get things shipped in cardboard. >> yeah. >> that's going to be huge i hope. >> i agree. >> talk more about the cardboard waste issue in a few minutes what really excites me about nordstrom is they have a martini bar in the location in new york city now. >> but can that be same-day dlidli

delivery >> thanks, everybody we appreciate it we should note that comcast ventures, which is a division of cnbc's parent company, is an investor in at tabotics. folks, thank you very much have a great weekend millennials are set to be the next big group of home buyers. i'm hoping to sell mine to a millennial at some point somebody from brooklyn but builders are not keeping up apparently chhind the millennial mismat in housing we'll explain all of that next

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welcome back to "the exchange," everybody let's get a quick check on the markets right now. it is currently the best day for the s&p and the dow and for me since october 11th favorite day since october 11th. all 11 s&p sectors are higher led by energy financials and industrial so a good day all around there millennials are expected to be the largest single cohort of

home buyers next year. but the nation's home builders apparently aren't keeping up with that demand diana olick joins us from washington diana, what's the story here >> well, tyler, while the majority of both single and multifamily home construction is in millennial-dense counties, actually lags the rest of the nation when it comes to meeting demand counties with elevated millennial shares account for 62% of the entire u.s. population but they account for just 59% of single-family home building this according to the national association of home builders not just in urban areas either counties where more than a quarter of the population is millennial include big markets like california, seattle, boston, portland, and d.c. but also rural counties in ohio, kansas, and missouri but still slower than the national pace. all this to say that the builders are not doing enough to alleviate the nation's severe

housing shortage tyler. >> all right, diana, stick around for a moment. as we bring in ken leon, home builder analyst at cfra. ken, welcome what's going on here and why isn't the supply keeping up with the population or the demand among millennials for housing? >> it's catching up with a great trend, which is millennials. they're 42% of the population. medium age is about 36 so for many of them, you know, student loans is less of an issue. and once they get to two children, then they're looking for single-family homes. unfortunately, the disconnect here is that they're not in convenient live, work, and play locations in urban areas it's usually 60 miles outside of phoenix, arizona and that's where land is available and where it's reasonable for a builder so i think part of this is just a timeline situation but millennials are coming

many home builders have shifted their strategy betting entirely on entry-level or first move with millennials. >> diana, i mean, millennials as i -- the -- the popular thought is that millennials want to be in close in urban areas, multiuse, which as mr. leon points out is -- is -- the land is expensive it's hard to build in those areas. right? >> absolutely. yeah but they are starting to move out into the closer suburbs and even some of the farther out suburbs because they want more space. they want the good school districts. they're starting to have children it took them longer. the issue again is the builders high cost for land, labor, and especially regulatory compliance when you're building closer into a city and you have a lot more zoning issues so that's really the problem the builders timeline is a lot longer because of that labor shortage so it's just a question of getting the builders to where the millennials would want to be i would not say the millennials

are all super urban. they are starting to move out. >> ken, are there any builders that are particularly well-positioned with respect to the millennial population? in other words, they serve where the millennials are and what they want? >> there are and right now, also, the macro, there's a ratio looking at homeownership to rental. homeownership ratio looks very attractive we would look to -- even though there are top ten builders but they're mid-cap stocks companies such as mdc holdings, meritage homes and then taylor morrison tmhc very different strategies how to be in front of millennials the first two is organically growing, as diana says, by land acquisition. taylor morrison has made an acquisition of william lion. 85% of their book of business is entry level. so that's where you want to be the larger builders.

some will pivot theirs others will not. simply because they're just bigger. >> ken leon, thank you very much diana, thank you as well diana, go get warm, will you >> it's not that cold. >> not that cold all right. good thanks, guys appreciate it. have a good weekend. okay so will removing a prime social media currency actually encourage users to engage more facebook is working to find out. we have the details next everyone, look at your phones. the design thinking, the digital engineering, security, blockchain, and we will be first to market! yes. when we do we launch? unfortunately, in 2 or 3, hours. why the delay? cognizant is helping banks use digital technologies at scale to advance speed to market.

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welcome back online retail bigger than ever now. with cyber monday shoppers spending a report $9.4 billion the booming e commerce industry coupled with china no longer taking most och our trash has created a recycling crisis our next guest is a ceo trying to deal with this crisis the stock is up 60% in the past three years. welcome. good to have you with us >> good to be here >> all roads seem to lead to china and china has stopped taking other countries recycleable products for which they used to pay money what has that then done to the price you get for the recyclable product you collect? >> the market for paper goods,

recycled papers has dropped dramatically over the past several years. it's caused somewhat of a crisis in the wage recycling business what we have done to respond to that is one we've worked harder to clean up the material and talk more about that in a minute but we've had to renegotiate contracts with customers and help them to understand they need to kind of pay their fair share for the service and share in the upside of the material. we worked through 35% of our contracts to date and we're getting a lot of participation for our clients across the country and trying to create a lot more awareness and how we can resolve it and still do a good job >> put some numbers on the growth in the amount of corrugat corrugated cardboard that's recycled you pick the time frame. my guest is the volume of boks and packaging is way up versus

the volume of what used to be the main recyclable product in papers and that was newspapers >> you're right. newspaper volume has gone down cardboard has gone up. it's now 13% higher component of our overall wage stream than it was ten years ago. of course, if your opening you talk about the amazon effect e shopping on demand economy, we're seeing net net even though there may be fewer brick and mortar stores, certainly the e commerce has overtaken that. the fa-- >> you mentioned the problem you and others in your field face is a lot of the recycled product is contaminated in one way or another. i can dispose of a cereal box but i probably need to take the plastic liner out of that cereal

box to make it recyclable. i can dispose of certain kinds of cardboard but a greasy pizza box i can't dispose of >> that's correct. e would invite everybody to go to our website recyclingsimplified.com. take a few minutes to educate yourself you can have nine out of ten recycle correctly and contaminate the rest of the hard work that every one has done we have done a good job many this country in making recycling easier what we haven't done is made recycling more intuitive

it's easy to contaminate good paper. >> all right have a good holiday season that does it for the exchange. power lunch begins right now you can bet i'm looking forward to that. here is what's new at 2:00 on power lunch. a blockbuster jobs report setting the market on fire trade, recession fears evaporate right before our eyes. is this as good as it gets? mcdonald's is about to take the chicken crown. later the road to $500 we'll tell you why one top analyst thinks tesla could be about to rev up big time power lunch starts