joey >> key side technology, 5 g play enterprise space >> last but not least, stephanie. >> johnson & johnson, 14 times earnings, great pipeline and great management >> thanks for watching "the exchange" beginsnow thank you. yes, and welcome to "the exchange". to two market gurus sounding the alarm on one market metric, we'll look at it the competition is growing and netflix started to feel the pressure what to expect in tonight's earnings and if netflix should embrace the ad model >> luxury losing some of its luster and boeing needs more cash that is ahead. we begin with today's market with the numbers >> only off the lows of the session, we were down about 112 another the lows currently down 27 for the dow look at the nasdaq we're back in positive territory

at 93.9. travel and leisure, the concerns about the coronavirus spreading and the impact on tourism. spees especially after china said the virus can be spread through human contact. royal caribbean has the most exposure to china with the customized sailings. that stock down over 3%. travel related names in china under pressure as millions of people in china prepare to travel to celebrate the chinese new year back to you. >> all right thank you very much. the federal reserve is getting drawn into a battle between those who want more rate cuts if they're even possible and those who want the central bank to save their ammo for a rainy day. here's what two people said at the world economic summit in davos today. >> i'm looking for faster

growth i think we're going to get three this year. the fed change policy, that was very important >> if you get a downturn, and there's a -- a good probability in the next term you'll get a downturn and you don't have efgtsdive monetary policy, and you have people at each other's throats -- >> let's talk about this along with a political wild cards that are dangling out there right now with dan clifton what do you think, dan are you on the side that the fed has shot the arrows out of its quiver, and if that dragon of a slowdown comes out, it's helpless and we're helpless? >> i look at it differently. i look at it as a fact that the trade war tightened financial conditions that forced the fed to have to act they cut raised three times. raised their balance sheet by 4$400 billion did they take away arrows?

absolutely but what we monetary policy has about a six to nine month lag. the fed expects a maximum hit around the second quarter of 2020, and if larry kudlow is right, you should see growth accelerate, the trade deals reduced the uncertainty, and then eventually the fed gets back to normalization sometime in 2021. i really don't believe the fed is going to have to act decis e decisively further to the downside, meaning more interest rate cuts. they should be on hold and growth should accelerate they should give them a little bit of time to build up resources for that downturn. >> the fed sounds and clearly seems frustrated it's got that foot on the gas pedal. in my jeep, it's not going to go more than 67 that's pretty much it. we're not getting the inflatio run rate and do you think this time this brick on the gas pedal will finally deliver a little bit of that inflation the federal reserve has been looking for

>> well, i think there's two factors that are important the first is we did a big tax cut. started to see see growth accelerate the tariffs slowed inflation down what we've seen since the u.s. and china announced their phase one deal in early october is you've seen the dollar weakening, especially relative to the chinese currency, by that extension you should get higher prices, higher food, higher energy prices. i know you're an expert in energy space and the inability for prices to go higher, but we should see faster economic growth and yields go higher, and again, i don't think monetary policy should be the tool for where we get economic growth from it was needed while we had that faceoff with china now that's been pushed to the side and i think you're going to see normalization happening in 2020 >> whatever normalization means now. i want to switch gears in fact let's talk about some political wild cards obviously it's day one of the impeachment trial beginning in the senate it's probably going to stretch

on for a long time depending on what radio station you listen to, it's either everything or nothing. how does the market view it? >> that's right. well, the markets have been going higher because earnings and interest rates and everything else seems positive and the question is what can happen in election year that can lead to a pullback after a pretty big runup it. i would argue in impeachment if new information comes out, that could start to delay the impeachment trial or start to make it look like the president's going to be convicted, that would be one issue. but i think the betting odds this morning are around a 10% probability of the president being convicted and senate with 67 votes. >> listen, 10% is not nothing. >> that's right. >> stranger things have occurred >> that's correct. >> what happens if though it's highly unlikely to you and everyone else we've talked to, the president is impeached and removed, what happens? >> it's unchartered territory. we've never impeached a president right before an election it would be the uncertainty around the president going away,

and i will tell you that most of our violents believe that donald trump is going to get reelected. we had a conference here in washington last weekend about 75% of our clients expected those are institutional investors, expected trump to be reelected. it would be an abrupt change in expectations it would raise the probability of a democrat winning. i don't think democrats are bad for markets but the market is worried about tax increases if a democrat gets elected. joe biden who has the least i would say aggressive tax plan is about $4 trillion over ten years so the market will have to grapple with the return on equities going lower in that instance it would lead to a market sell off temporarily. >> good stuff, dan we'll see more of each other in the coming weeks and months. >> thank you now to the other big story we referenced from capitol hill. the senate impeachment trial of president trump is about to get underway we are live on capitol hill with

more on what should be a long and contentious first day of many >> senators are preparing for a historic day as they convene as jurors in the third impeachment trial of a president john roberts will be presiding it starts with the senate sergeant of arms reminding senators they have to remain silent during the trial on pain of imprisonment. >> we are expecting the trial to begin with the rules that govern the trial over the next two weeks or so. that will get two hours of debate and then the top democrat in the senate chuck schumer will offer a series of amendments that will also get an additional two hours of debate for each amendment. he's going to start with an amendment that would request the senate to subpoena any white house documents related to the president's phone call with the ukrainian president. he'll also offer amendments on

calling additional witnesses, admitting evidence, and also on rewriting the rules to more closely resemble those during the clinton impeachment trial. now, do remember, brian, that it is not going to be the senators who will be doing the debating that will be handled by the democratic house managers and the white house's defense team this will be the first time that we have seen those two sides square off against each other, so that interaction should set the tone for what this trial looks like in the next few days and weeks. back over to you >> we should should be a long -- quick question do we have any idea what the shortest or longest version of this trial might look like >> the shortest the trial would wrap up would be the middle of next week. that would be an aggressive time frame. mcconnell wants to move quickly through phase one of the impeachment trial. any number of things could delay the timeline it's more likely to last at least through the end of next week and if witnesses are called

it would take longer >> thank you very much all right. the dow downright now. a lot more ahead here's what's up on "the exchange". >> coming up, two major market heavy weights have a warning for investo investors. we'll tell you what it is, and debate if they're right. plus, a six-week winning streak. a 27% rally this month and hovering near all-time highs the name and whether you should buy this piping hot stock right now. and the streaming giant no more we'll talk netflix earnings after the bell

welcome back the death toll is rising from a mysterious flu-like virus that originated in china but has spread to other countries in the region it's scary it's been a topic in davos with a billionaire investor addressing the coronavirus earlier today. >> i would say we've got a curveball with this coronavirus. i think that's a big deal. >> i hope not. >> i mean, it is if you look at what happened in 2003, it was estimates ranged .5 to 2 % of gdp for china.

stock markets sold off double digits >> our beijing bureau chief joining us for the latest. what do we know about the coronavirus right now? >> well, what we know, brian, is that this virus has confirmed cases to the tune of 323 with six dead the coronavirus is similar to the sars virus, if you remember in 2003 killed nearly 800 people the various was traced to a seafood city in wuhan. the authorities have confirmed with symptoms like fever, breathing difficulties and lung lesions. the new illness is mainly in mainland china though, today, taiwan confirmed the first case, a new york, san francisco and l.a. have all joined other international airports in screening travelers from wuhan, and wuhan itself has

taken some new measures in order to try to get control of the situation, and that would include banning tour groups out of wuhan and also, brian, something that's big for the city, and that is cancelling all the lunar new year celebrations which from a chinese context, or, say, the u.s. equivalent would be as if the u.s. decided to cancel christmas. so the top health authority in this country has also said that it's going to be giving a briefing, a regular one, and the first one is going to be tonight at tuesday, 9:00 p.m. u.s. time. >> scary stuff thank you for joining us late in the evening in beijing appreciate it snmp at davos, views being shared this morning >> all markets have gone up dramatically over the last few years. i guess the s&p is somewhere around 19 times, and if you pay

a premium to that, that's pretty high >> we're just, again, in the craziest monetary fiscal mix in history. it's so explosive. it defies imagination, and i don't think anything has changed. it reminds me a lot of early '99. >> so along with that, what else should be on the minds of investors as the markets hover at record highs? let's bring two chief investment officers welcome. to the topic of the day, do you change your investing outlook given some of the scares that we are seeing in china like sars a number of years ago? >> not necessarily right now we'll see how this plays out over time. i believe 2020 will be a year marked by two halves the first half we see more up side potential in the stock market thanks in large part to a

dovish federal reserve that's likely to do nothing outside of balance sheet adjust s and the fomo among retail investors that has money continuing to come into equities overall. toward the second half and the political season ramps, we believe there's pouts of volatility and as a result diversification. >> jeff, are you worried about valuations or anything else right now? >> you know, certainly it's not as cheap as it was going into 2019 when pes were 13.5 times. it's not overly expensive right now, and we do think that earnings growth will accelerate and pick up in 2020. and actually, pes at these levels are not all that abnormal for low inflation, low interest rates. if you look at the equity premium, if you look at the yield on earnings yield on

stocks versus bonds, it's actually quite attractive. we think they're fine, and think can hover at these levels and benefit from the earnings growth we think we'll see later in the year and it's certainly not 1999. i think that's a huge overstatement when you had 27 time forward p.e. and on a napkin no revenues and valuations it's certainly not -- >> i'll follow up with jeff. what's interesting when i hear that is you're recommending three natural resource plays you're recommending the gold etf, a silver mining company, and albomoro, one of the largest lithium producers in the world why are you digging in the dirt for some of the stocks >> we've made a lot of money with the blend of growth and value. and we've owned the fang stocks and lululemon and marriott and visa and we continue to hold those positions. all we're doing is trimming back a little bit and taking profits on some of those names still owning them but trimming

back and getting exposure to compliment what we have. right now in a period of uncertainty, you get the volatility the other guests are talking about. gold does well during periods of policy and certainty pause is a great example of a silver, the number one silver mining company with great reserves demand for silver is up. and lithium is a play on the electric cars. as a largest lithium producer in the world. we're balancing out. it's the blend you have offense and defense and it's just blending out that portfolio for balance. >> do we still play offense given we have an election this year from i'm told, first day of an impeachment trial starting. and 75 % of the institutional investors believe donald trump is going to win. will people too complacent right now? >> i still think there's growth opportunities at least for the first half of the area in areas

such as bio tech, consumer discretionary in the strength of the e-commerce section income, prefrds look good. invest in preferreds themselves. >> what's the benefit of a common stock >> you have a preference shl treatment in the event of a bankruptcy and it pays a higher dividend yield and right now much higher than the ten-year yielding about 1 .8 % >> what's the downside >> they don't have a defined maturity don't you don't have as much volatility you have an up side as opposed to common stock. we like preferreds and municipals. >> thank you both. i like it. you brought new ideas. preferreds, lithium, pan am, silver better than pan am airlines. thank you. on deck, digital publishing is doing something it has not

done ever since the dawn of the internet plus in need of money and told to drop the 737 max brand we have the latest on boeing has the crisis wears on. and as a reminder, watch us or listen to us live on the go from anywhere on the cnbc app, the exchange back in two minutes. hey, saved you a seat.

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china concerns and a rare upgrade for victoria secret. tesla, new street research surging the price target from 800 a share from 530 they thi stock two is two tocks las vegas sands scene wynn lower. coronavirus raising concern about consumer travel and spending and l brands slightly higher victoria's secret up from a owner weight to sector weight. it's likely to engage in value creating transaction all right. let's step out of the world and money and business with a news update >> here's what's happen agent this hour. nato's chief says the alliance must beef up the military training operation in iraq to ensure the member countries are not drawn back into combat

there. >> the issue we're looking into is not whether we can launch new combat operations. the issue is whether we can do something that prevents us from being forced into new combat prevention is better than intervention >> venezuelan opposition leader meeting dominic rob in london. guaido is recognized by nearly 60 countries including the u.s. as the interim, but he has failed to unseat maduro. sports books in new jersey are the first offering movie buffs the opportunity to bet on the oscars to prepare for the night, play usa has created a rundown of the oscars at its website. that's the news update this hour brian, back to you >> have you seen the movie 1917? >> no. i hear it's --

>> it's universal. it's one of the 20 best movies i've ever seen i have no idea how they filmed it i don't want to know it was magic run, don't walk. >> i heard it's fabulous and the fact my teenage kids want to see it is amazing. great buzz >> tough to watch. >> absolutely. of course. >> i won't give it away. you're in for a treat. here's what else is ahead on "the exchange" >> coming up, less plastic but more plants. a look at starbucks new plan speaking of coffee, a look at luckin's coffee massive run >> a scandal hits best buy >> and the list of competitors for netflix is growing a look at what to expect from the company toghnit. that's all coming up on "the exchange". park city,eled landscap or the famed peaks of whistler,

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best buy's worst case scenario maybe more plants at the coffee shop and google says tech has to face the music it's time for rapid fire here to break the headlines are kourtney reagan and robert

frank. best buy investigating ceo for alleged misconduct in an anonymous letter she's accused of an inappropriate romantic relationship with a new former senior vice president of best buy before she became ceo mary has been an important part of the retailer's turn around story. best buy has grown by nearly 40%. this is not the first time a best buy executive has behaved inappropriately. the former ceo resigned in 2012 for engaging in similar conduct based on the formerstory, this is a company who has no trouble with cutting ties with ceos who acted inappropriately. >> i would imagine this makes it more sensitive this is always sensitive but the history that best buy has with this in 2012 when brian dunn resigned. his at least we found out had a little more layers to it of complication the female was very clearly

entord nant. >> he was the ceo at the time of the alleged relationship >> he was. >> neither of these two folks, apparently were -- corrie was not ceo at the time. >> that's right. >> it may have been a lateral relationship in terms of their position of authority inside the company. >> potentially she was cfo before she became ceo, and he was an svp. there are many details we don't know the board confirmed they're looking into these allegations, and there is an outside law firm i can confirm is helping them to do so, but the law firm won't say what else they're looking at >> the question is what made it inappropriate? they grew up together -- >> if there's an imbalance of power. >> exactly >> that would be the definition of inappropriate >> it would be, number one they grew up together in the company. he was a senior vice president first before she was it's hard to see where that

dynamic might have been changed. the other question is did they use corporate funds? were corporate funds used and secondly, are you required to disclose a relationship like this regardless of what the power structure is we don't know -- they said inappropriate. but we don't know why. >> still a lot of questions we're trying to get answers to but in general, and maybe this is a naive point to make, but the fact that certain ceos and executives feel like they can get away without disclosing an inappropriate romantic relationship where social media exposes people is surprising >> a lot of people meet their spouses at the office. >> like me >> we spend a lot of time here you don't know -- maybe nothing will come of this. we'll find out let's talk about starbucks the coffee chain is giving up plans or adding to plans to become more resource positive in the effort to prioritize stainability it includes shifting away from reuse ablepackaging and making a push to more plant based food.

shares of beyond meat are jumping on this news kate rogers talking about starbucks' goals does this mean the sausage and cheese is going away >> they didn't announce any partnerships like with beyond or impossible by 2030 starbucks says it plans to cut the carbon emissions in half by the direct operations and supply chain to replenish or conserve half of the water taken for operations and reduce half of the waste sent to landfills. as you mention the company said it would be offering more plant-based option the on the menu in order to become more resource positive. it did add dairy alternatives earlier this month and they got a pop on the news tim whartons has a sandwich in this category. dunkin' donuts teamed up analysts have watched to see if

and when starbucks would get in on the game. more broadly the company furthering the commitment to the environment in this big announcement today >> i'm more interested if resource positive is the new catch phrase we need to start adopting >> yeah. that or plant-based diets. >> i've heard that i'm not familiar with resource positive >> as kate points out, the fact that starbucks is getting in into this space, whatever they want to call it, con first names this is no longer just a trend or fad this is a movement and taking hold and consumers are responding >> i will never be resource positive i consume so much food every day, but what's interesting is not so much the meat, but the packages to cut their landfills by half, i'm curious how, and to reuse the water. i'm interested in how they're going to get this. these are big targets. >> as far as my limited knowledge about this, i think making coffee or harvesting the

coffee beans is really water intensive. >> yeah, and they do have a big move into ethically sourced coffee that's been important to the company for quite some time. ly say to robert's point about the packaging, they have made pushes in the past to try to get to you use reusable cups and they give them to you early around the holidays. you get a discount and they made a big announcement about using plastic videos and getting rid of those by 2020 >> i know. and let's also -- you have to tell the whole story it's like electric cars. talk about the batteries mobile apps, cell phones use huge amount of power and mobile apps probably encourage more people to drive and leave their cars running as they idle while they run in and get their food there's got to be a total wholistic view in some of those things. >> some of that is beyond their control. >> some of these things are beyond meat. >> yes next up the coronavirus that is really concerning china is impacting stocks outside of that country.

in particular, luxury stocks take a look at lvmh, and the fear here is that consumers in china and elsewhere won't go to the mall or stores because they don't want to be around other people who might be affected >> and/or tourism will get cut down, and tourism is a major part of these markets. i think this happens when you see the outbreaks and there's an immediate pullback and a lot of fear until we get more information. we were all talking before we started here we don't exactly know a lot about this virus and how it's inc incuba incubated. right now there's a lot of operations out of fear these are really important markets to the players >> yeah. luxury, the luxury -- the good thing is the chinese are buying more luxury in china than they used to. the bad thing is the chinese are also traveling more broadly than they were during sars. >> there's also h-5 n-1. sars was a $40 billion hit to

the economy. $7 billion hit to the u.s. the stock market fell 16% during the sars epidemic. given how quickly it's grow, we don't know the incubation period, but up to 200 cases. >> a year of tariffs that happened and months to go, and by the way, hong kong has been off the front pages but it's far from being settled china is facing a lot of issues at one time. >> a laundry list of things facing the leadership. and now the outbreak, and the timing could not be worst. the chinese lunar new year, millions of chinese travel either home or overseas across asia for the luxury companies, one-third of total luxuries spend is from china despite the slowdown these companies, they've been really successful inside china does that continue amidst this outbreak we'll see. >> we have news on this right now that appears to be impacting the markets.

stocks are losing some steam right now. the dow is now down 70 points. it dropped 50 points the last couple minutes there is now a report from the cdc they have the first u.s. case of the coronavirus. airline stocks also moving lower on this headline american airlines, southwest and delta, again, no other real information other than the cdc confirmed there is at least one case in the united states of this coronavirus we don't know where. we don't know how long this has been known but it is impacting the equity markets. the dow dropping about 50 points in the matter of a couple -- it's in seattle. i'm getting word in my ear this case was confirmed in seattle. a big travel hub coming from asia as well all right. we'll get you more, of course, on that story as it develops the dow down at 70 last but not least, rapid fire, alphabet ceo weighing in on facial recognition he's actually for a temporary ban on it.

speaking at a conference, he said it is important to be clear-eyed about what could go wrong with the technology and urged regulators to take a proportionate approach to governing it he quoted about a waiting period before thinking about how it's used i think taking a jab at china. tiktok and a huge user of facial recognition technology >> it sounds like they have the technology but they're holding back until there's a consensus to the regulations, but clearly, states are going to be able to use this to their advantage and companies unless we figure out a broad policy of how -- the technology has gone much faster than the government's ability to keep up with it or understand what it's used for >> it was interesting in the op ed by the senator. he talked about his upbringing in india and how every technology has an impact on his family and the ability to have a better life. fast forward to now as the ceo of one of arguably the most powerful technology companies,

he's in a position with understanding the benefits of artificial intelligence but recognizing the risks without proper regulation. he said the regulation should be customized for sectors electric cars or medical, they shouldn't have a blanket ai. >> kourtney, i'm old and cyni l cynical. no company tracks your movements more than google >> i know. >> i mean, assuming you use google products. you have no google products, they don't google maps knows when you stop to get a cup of coffee they know where you stopped. they know what you're writing in your emails. suddenly now we're worried about facial recognition >> it was like that in depth reporting about data and how we've all allowed all these companies access to our innermost private data points of our lives and just trusted they'll do the right thing with it and i think that is just very, a very scary thought

we were so excited about the technology and how it improves our life it wasn't an afterthought until later. >> facial recognition, in the age of the beginning of deep fakes. once they scanned all our faces, somebody is going to be able to make a perfect replica of robert frank. >> and it will be much better than the real thing. >> it will be like the movie x machine. it may end the same thing. >> it does feel like a sci fi movie. >> but it's here >> i know. thank you all very much. speaking of stopping to get a cup of cough knee, shares of luckin coffee on a tear. and a top analyst says luckin ses they have more room to run next we see patterns. relationships. when you use location technology, you can see where things happen,

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this round's on me. hey, can you st me? come on in. find your place today, with silversneakers. included in most medicare advantage plans. enroll today by calling the number on your screen or visit getsilversneakers.com there is a coffee battle brewing in china it looks like luckin coffee is a bit of a home field advantage. right now shares of the company

up 140% while starbucks is seeing single digit returns. this is the secret recipe to success and how long can it last we're joined by an analyst at key bank capital markets >> thanks for having me. >> interesting day for the call on luckin, because of the coronavirus. anything related to china, the consumer is down today you have to re-evaluate based on the headlines? >> i think these things happen every few years in china one of the things we looked at was yum china. go back to 2002, you saw a two or three week period of time where the same store sales growth decline bid 20 % to 30% but post that outbreak in a short period of time, trends recovered instantly. you did see trends recover quickly. >> so if this goes hopefully, doesn't get to the level of sars or the avian flu, if it

progresses with what history suggests it might, we could see a two or three week period of weakness, concerns, people staying home, and then they get the all clear and it goes back to business as usual >> that's one major brand that had the issue in 2003. certainly we'll have to wait and see and watch to see what happens over the next few months but it's something we'll watch >> so other people are the concern. ironically, part of your bullish thesis on luckin is this opportunity for unmanned stores. >> sure. yep. absolutely so there are plans to open up 10,000 express coffee machines and another 100,000 more traditional vending machines and if you think about this company's valuation, in 2021, we believe it will earn 1 .80 in the core business. the 10,000 stores open between now and then if you take 1.80, we think you can get another $1.50 or so in the unmanned retail locations. >> we did a piece with unius luckin was cheaper than

starbucks. is there a home field advantage here >> certainly it is much cheaper. they have advantages in digital. they have 40 million users of their app. 12 million of those are active users. the average cup costs of a cup of coffee in china at luckin is -- >> a buck and a half u.s. dollars? >> correct and starbucks is 30 to 35. >> wait. three or four times the price? >> three times the price, that's the effective price, not the list price >> why i can understand 10% why is it 3 times? >> it comes down to digital advantage. this company has 40 million users of the mobile application. the users don't need to find -- they're -- it's not if walk-by traffic. starbucks might be on the high street paying the expensive real estate, there's ten people working the store. luckin stores are generally in the lobby of an office building where you can walk down stores you order it on the app. pick it up, go back up to your desk they're not paying that high rent that's where they get the

advantage on price >> and you have overweight and a 56% target >> thank you the grounding of the 737 max has stretched into its 11th month and could cost the company twice what some are estimating how much they might have to borrow next listen to your favorite parts of the show you might have missed signp unow. ♪

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welcome back the grounding of the 737 max now doing on the 11th straight month. it could cost boeing more than originally thought as the costs rise we have breaking news. leslie, i know you literally ran on to the set. >> still out of breath >> it's all good chill. we' we're good >> boeing is telling airlines they expect the plane will not be pack until the summer that's when regulators will sign off. and in you'll remember, boeing recently did an about face and said they're going to have to

require pilots to take simulator training this means airlines are going to probably be one more summer, one more peak travel season without the planes >> is this boeing is this boein summer or the faa? because from what i understand, the ceo might have lost his job in part because he wouldn't stop talking about b things he shouldn't have been talking about like return to service dates. >> right and boeing of course certainly now after happened with with muhlenberg losing his job, the estimates, sorry the beginning of 2020 didn't happen, boeing's actually -- about this. i don't think they want to give a firm date, but they want to let their customers know this is potentially going to be another summer that they won't have the plane ready for any sort of curveballs that might come up. >> i know you came on to talk about the debt storiment but this is breaking you broke it by the way.

is this a situation where boeing is saying it won't be until the summer or they saying it's going to be in the summer? >> they're saying don't expect regulators to sign off on it until the summer and what -- >> west dabest case. >> they have to give some sort of estimate. they're not giving a firm date and they saw how that bit them before and i don't think they're going to do that the airlines i think a dozen or more times have pushed back that return to service. you have american, united, southwest, big max customers in the united states pushing back when these planes will be returning to their schedules this is early june, so this can go on for the rest of the summer another thing to remember is that it gets worse as time goes on only about 3 to 400 plane during the ground iing in march i can't believe that was a year ago. >> thir still sit iting there air lease has come out said you've got to change the name nobody cares, but we've done these polls on twitter and stuff

and i've had about 50% of the aud yenyens say they would thin and getting on a 737 max no one's talking about what happens to the airlines when and if it returns to service what happens if half the people booked on the flight say i'm not getting on that plane? now united can send them away and risk ticking off customers what happens if they want to be rebooked this is a bigger problem b from the airlines >> they're thinking about that already and southwest said we're not going to force anybody to go on any aircraft. united said similarly then os r oscar -- >> so if you have a plane that's sold out but half the people won't get on it, that's an unuseable plane. people don't want to get on it give me my money back. >> it's not clear that travelers are going to be doing. we've never had a grounding like this in the era of social immediamedia. never had a hash tag unground. >> your apps show what kind of

plane you're on. 757. a 320. >> i think they prefer people to do that before they book instead of getting to the airport and the telling the gate agent they don't want to go on there. >> thanks. what digital media companies are doing that they've never, ever done. stick around (gentle music) - did you know that americans that bought gold in 2005 quadrupled their money by 2012? and even now, many experts predict the next gold rush is just beginning.

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your big earnings of the evening is what else netflix, those numbers out after tonight's closing bell and this will be the first quarter. we're going to see the end back of all the new streaming rivals that are out there for more, we're joined by sarah and julia. is baby yoda just going to crush netflix when we see their numbers tonight? >> well, look. there are two stories for netflix. the domestic story where growth has been slowing we even saw subscribers decline in the earnings report this summer, so we expect the u.s. numbers to be much smaller than international numbers. internarnl internationally, netflix is expected to grow about 7 million new subscribers and i think

there's going to be less of an impact globally because disney plus is only really launched here in the u.s. it doesn't launch in western europe until the end of march. so i think there will be two different stories for netflix. international growth as international subscribers are less valuable, but it will be interesting to see how the numbers play out because for the first time, netflix is going to be breaking out the success of different regions and instead of just reporting the u.s. numbers separately, they're going to bun l together the u.s. and can adah >> sarah, i want to talk about something else because from what i understand during your fine reporting, some of these firms are actually gasp, making money? are we going to see profitable profitability for the first time in the internet'sry? >> i think so. you have a lot of big media companies that have struggled like buzz feed, vox and vice these are companies that have gone under enormous pressure,

big layoffs in order to finally hit profitability. executives telling axios they're expecting to hit it in 2020 and we're sarting to see some companies finally hit it in 2019 those include some subscription media companies like the information as well as other more advertising based companies like business insider at axiso and politico >> it seems like good news, julia boorstin, so i wonder does that influence your beat does that make, could netflix suddenly embrace the ad model? you're halfway through stranger things and an ad for deode rant pops up. >> there's been a lot of speculation that networks need to add model to offer a lower price subscription tier. netflix has e it rated they're not interested in getting into advertising. many of these digital media publishers are not just doing

traditional advertising, they have subscription models or podcasts, which is a new revenue stream in terms of advertising for podcast. not with netflix embrace its advertise model, but would these companies start to embrace as well >> is the athletic and information, are they working, are people paying their 20, 30, 50 bucks you know a year or a month for these sort of sites to dig in a little deeper in their topic of choice? is that working? >> it's working. i mean if you think about the athletic, they say they're very close to hitting one million subscribers worldwide. that's a huge number for a primarily text base journalism product that's around a niche, around r sports. as far as information goes, especially around wall street. adding off of what julia said are you going to see these successful journalism outlets

now start to produce such riveting content that they could sell or license to netflix it really comes full circle here the one example -- >> i apologize cutting you off we got five seconds. that does it for us on the exchange "power lunch" begins with special guest marcus lamonis take it away >> thank you very much welcome, everybody i'm tyler mathisen and here's what's new at 2:00 for a monday. actually, a tuesday. what am i thinking the billionaires are out in force at the world economic forum in davos paul tu dorr jones call iing ths stock market crazy we've got those details. plus, president trump says the economy is in the midst of a blue collar boom and the u.s. consumer is roaring and soaring. can the good times keep rolling on and weigh in on all of that and more as brian just mentioned, the profit himself is here in the studio for the hour. and he will join us