rally. >> sorry thank you for being here josh brown >> mastercard staying long. >> health peak >> what do they do >> health care reit. >> thank you for watching. "the exchange" starts now. thank you, scott surprise welcome to "the exchange." i'm bill the coronavirus continues to grow with more cases now being diagnosed here in the united states we have got the latest numbers for you, the markets are jittery. and the reaction with all of this and why one expert says this the timing of this is going to be very difficult to try and control. also, your credit score is about to change. maybe for the good, maybe for the bad. ready to tweak the model and who could get a bump and who may not be real happy about the changes. mike bloomberg is not just

flooded the air waves with campaign cash, he is also dolling out big bills to get people to join his team. seema mody with the numbers right now. >> great to see you in house watching the markets closely we started the day higher, the dow quickly reversing gains here now down 129 after the second u.s. case of coronavirus confirmed, plus further delays at boeing. s&p 500 holding on to 3303 nasdaq down just about 50 points fears over the possible economic impact of the virus continuing to pressure oil prices now on track for the worst week since may down about 7% and with that pulling down a number of energy producers diamondback, cabot, concho down double digits just this week and worth noting this earnings season, energy is only sector expected to see a decline in earnings growth now, speaking of laggards, the

china etf posting first negative week since november. down about 6%. optimism around trade has helped chinese stocks outperform over the past two months but certainly a different story as we focus in on that virus. bill, back to you. >> thank you we'll see you next hour. we begin with our big story, the coronavirus outbreak, 911 total confirmed cases including 2 in the u.s. and may have heard about 26 deaths in china so far. unice yuhn the live there with the latest and meg terrell here in the u.s eunice, good morning. >> reporter: good morning, bill. well, you know, the number of confirmed cases has now ticked up to 926. and the chinese government said that it is now restricting travel for 16 cities so that's 45 million people. the focus now is on whether the

chinese government is going to be able to manage this situation on the ground. does it have enough resources and the ability. there have been several reports out of wuhan, the epicenter, hospitals lacking doctors and kits to diagnose new cases. the military sent in some top medics tonight and wuhan building 1,000 bed hospital from prefabricated materials in the next several days. this is supposed to be finished by at the latest february 3rd. beijing is also taking other extreme measures in order to try to contain the virus and make sure that people don't go outside. as of this weekend china is closing 0,000 movie theaters, travel agencies cannot sell tour packages for domestic or

overseas travel and parts of the great wall as well as other tourist attractions, especially during a lunar new year holiday, are popular in the holiday, have been shut. disney says that it's also closing its shanghai theme park as of saturday this park would normally see a lot of people, hundreds of thousands of visitors, during the lunar new year holiday. >> did you say 1,000-bed facility will be ready in about, what, 10 days? that is amazing! >> reporter: yeah. that's right yeah they're making it out of prefabricated materials. they did this before, back in 2003 with the sars outbreak. right here in beijing. and wuhan wants to do something very similar and the idea is to pool all the medical resources for these affected patients and to keep all of these coronavirus affected patients away from some

of the others in the hospitals because currently the patients are in designated areas but they're not all in the same place. >> eunice yoon live for us there in beijing, thank you. to the u.s. and meg terrell. what do we know this time around >> the numbers are significantly lower in the united states. >> so far. >> we have news this morning that the second patient here in the u.s. has been confirmed to have this coronavirus, a traveler from wuhan joining a man in the 30s in washington state confirmed who had traveled from china the cdc says 63 patients are under investigation for potentially have this vie russ in 22 states they confirmed 11 negative patients so far and they are trying to speed up testing by seeking approval to have their tests be done by states rather than having to ship the samples to cdc which is what they have to do now and why it takes so long and what we know about the patient in chicago, she's a woman in her 60s she had traveled from wuhan, a

resident in chicago. currently she is in stable condition. and it doesn't sound like she had much close contact of penal outside the home since she was back and not symptomatic while she traveled and cdc expects potentially more cases here in the u.s. but say they believe the risk to the u.s. right now is low. >> two quick questions how soon before we get a rapid test >> well, they can do the test in a number of hours. the problem is that they have to do it at cnbc headquarters and samples shipped there and once they distribute that to states is a big help and more diagnostics would be helpful. >> all right ask the other question when we get into the interview here because is there any way for the u.s. to keep this from spreading here at home bringing in michael osterlo from infectious center research and policy at the university of minnesota, also served as a science envoy for health security on behalf of the u.s.

state department michael, thank you for joining us today. >> thank you for having me, bill. >> what do you make of this so far? reminiscent of sars? how bad do you think this could get here in the u.s. >> first of all, i think that the u.s. will have a double impact you might say we're surely going to see more cases and i think the people that come from china are easily identified as potentially at risk people. the concern will be when they actually get here and transmit to other u.s. citizens who don't have travel histories and that's when we can expect to see this virus move more in the u.s right now, this virus is moving much like a flu virus in terms of transmission which we think about that we know that it's very effective the second thing, though, that i think is really relevant to you and this show here and the impact we all worry about long term is that many of the critical products that we use every day such as medicines, medical devices are manufactured in the areas of china being shut down these are just in time delivery

systems for which we already have drug shortages in this country from chinese-made drugs, that's just one example. i worry that the economic impact will actually lead to serious health consequences as this particular event goes on let me just say we are in basically the first week of what i would call the chinese corona winter and we got a long way to go before getting out of this one. >> what has to happen for the situation do get serious enough that you see a disruption in the supply chain like that as you point out could affect manufacturing and supply of the important materials from china, but if it got that serious would it be affecting other industries iphone manufacturing, anything that's manufactured in china >> well, there are two aspects to the manufacturing process you have to have people. and you're already talked about many, many millions of people right now that don't have access to public transit to get to work so factories even if they wanted to run have a difficult time

second of all, china obviously has a number of different diverse industries not all located in this area near wuhan but it is the transportation capital of china which connects basically bay individual, hang high and hong kong and shutting it down is like shutting down new york city, washington, d.c. for rail service and assuming you have east coast rail service so i think that's a big challenge. part of the problem we are going do see right now is not going to happen today or tomorrow but every company who has any manufacturinging capacity in china right now better be looking very carefully at the supply chains where its various ingredients, active pharmaceutical compounds or other parts are coming from and i think that this is something not appreciated. the response to chinese using right now is questionable from a public health standpoint and i can say with certainty it will have an impact on supplies of critical products around the world within days to weeks.

>> all right we all have our fingers crossed. let's hope it doesn't get a whole lot worse but we remember what happened with sars and the other previous issues in the past michael, thank you for joining us today. >> thank you. >> meg, keep us posted. >> of course. >> i know you will. here's what else is ahead on "the exchange. >> coming up, the market continues to climb despite growing concerns about the coronavirus. are we in an irrational bull market plus, big changes are coming to the way your credit score's calculated for some it may be bad news. and what's in a name apparently a lot when it comes to getting funding it's a thirteen-hour flight, that's not a weekend trip. fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board.

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welcome back so stocks have given up gains after the cdc confirmed that second case of the coronavirus in the u.s. but not before the nasdaq set yet another record high earlier today and seems the rally is not over despite the occasional dips like we are seeing today and with the 10-year treasury yield on track for the biggest weekly decline since last november and bank of america today called this an irrational bull phase. today notwithstanding, i guess is there a case to be made for the markets?

joining us, kim forest from boca capital partners, charlie is the head of investment group at aerial investments i'm hearing some money managers and others saying that this time it feels like the -- around 1999 era. we know what happened after that are you sensing that we are getting frothy in the market here >> first of all, good to see you, bill. >> thank you. >> rumors of your retirement are exaggerated. i would say it feels 1996-ish, which is when things started to get very expensive the quote about irrational exuberance came out back then but we found that the market can remain irrationally excited, particularly about tech stocks, for a long, long period of time. in that case it lasted for four more years so that's where i come down here i say tesla is overvalued, a lot of the fang stocks overvalued

and can't say what stops it and i don't have any reason to believe it ends this year. >> kim, a stock people pointing to in this time is intel it's up another 8% today after the earnings came out s. that an intel smile on your face do you feel like we're getting ahead of ourselves here? >> well, i think there's always stocks that you can look at and say that one's overvalued but i think in aggregate i don't agree with that or about intel either. they have clearly a lot of buyers or enough buyers of main product which is for the data center and we're moving to the cloud and data center people that build them like to have very consistent chips that work a certain way and they know how they fail and that's why intel is inning. >> but is it worth -- i mean, amd had a stellar 12-month period up 160% is that reflective of the

fundamentals out there >> i would say there's a chance that amd doesn't reach the heights that everybody who's buying it today might think but i do think that they've had a great turnaround and deserve some price appreciation, maybe they're a little ahead of themselves now. >> charlie, you don't like tesla and the other frothy stocks, what do you like what's getting your attention? >> it's value stocks, low pe stocks this has been for the last 100 years value stocks have beaten growth stocks for every 10-year period except for the ten years ending in 2000 and ten years ending last year and so value stocks are just very cheap compared to growth stocks so there's some names like we talk about goldman sachs trading at book value. we talk about lasard

trading 11 times earnings. media, of course, is extremely cheap. so there are pockets of value where things are still attractive overall market we would call fairly valued to maybe overvalued. >> kim, how much longer do you hang on to intel >> well, i would hang on for the foreseeable future because i think that demand is only going to grow for chips and they're a reliable maker of the garden variety sort of chips that are going into the cloud so that's one of the reasons why we like them. >> all right kim forest, charlie, good to see you both thank you. >> thank you. >> thank you, bill. this retirement is working out pretty well for me, charlie. that's for sure. see you latter. all the attention was supposed to be on boeing's 777-x today getting ready to take the first flight but just hours before that launch cnbc learned that it is considering another cut to the 787 dreamliner

production phil lebeau is live in washington where the new plane is on the runway waiting for liftoff there for takeoff, phil. but, you know, trying to decide which airliner we are supposed to be focusing on today, huh >> reporter: and we'll focus on the 777-x in a little bit. it is down the runway. it is going to taxi down here. if the conditions are just right in terms of tail wind, the ceiling cover, then it will take off up here momentarily n. terms of the other story, bill, what we are talking about is 787 dreamliner sources confirmed for us that boeing is considering a production rate cut further from what they have already announced. just to bring everybody up to speed, boeing is currently building 14 787 dreamliners per month, dropping down later this year to 12 dreamliners per month. don't be surprised as the company looks at potentially

reducing production further in the future that we see it drop down to 10 or 11 per month, not confirmed. when we said to boeing are you considering this, the company said, look, we are always looking at production schedules, we adjust them as necessary. so no confirmation from the company at this point but our sources tell us that this is something boeing is considering. is this going to be a huge move to the bottom line probably not but it is certainly people will keep their eyes on as the wide body market as you look out softening a little bit over next couple of years and again we will see the 777x taxi past me in a few minutes bill >> i'm told we are outside the two-minute window and take a quick break. if they do decide to take off in commercial, if you wouldn't mind jumping on the tarmac and hold it back for a moment so we can see it live when it happens. >> reporter: sure. >> appreciate that very much phil there in everett, washington, where amazingly it's raining. imagine that in washington

big salaries, new iphone, just some perks that candidate bloomberg is offering to woo campaign staffers. smart strategy or waste of money? we debate. plus, it's not a boarding house. it is co-living in luxury. and it means big business for a start-up details on that story coming up. you can always watch us or listen to us live on the go, on the cnbc app "the exchange" is back if tn tw minutes. hey, saved you a seat.

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welcome back quick look at the markets today. moving lower right now the dow down nearly 200 points at the lows of the session slightly above that level right now. the nasdaq the worst performer down nearly a percent after having hit an all-time high earlier in the session so little volatility today sue herera with the news update this hour. >> great to see you. everyone, two people died after a massive explosion leveled a warehouse in houston damaging nearby buildings and homes. houston's police chief commenting on the investigation into the cause >> we have no reason to believe, we have no evidence at this point that terrorism was involved we don't have any evidence that a criminal, intentional act is involved having said that, when you have this kind of an incident part of

the protocol to always conduct a criminal investigation the flu season shows no signs of slowing down. the cdc says the flu is still widespread in every state except for oregon and hawaii. 37 states report high activity up from 34 last week. nfl wide receiver antonio brown granted bail after spending the night in a florida jail he will have to pay a bond of $110 thousand dollars, surpder his passport, receive mental health evaluations and pass random drug tests. he is accused of attacking a moving truck operator. you are up to date, bill thank you. >> thank you, ma'am. see you next hour. the impeachment trial of president trump continues today as the democrats prepare to conclude their case. ylan muey has the latest. >> reporter: we are in the home stretch for house democrats, right now wrapping up the

arguments on article 1, abuse of power, then they'll turn later this hour to article 2 obstruction of justice adam schiff said that the president's refusal to let the officials to testify erodes the checks and balances. after today is over, the white house will finally get its time in the spotlight but president trump is not happy that the team has to start on a saturday over twitter he called it death valley in tv because of the low ratings so there had been a lot of speculation, bill, that tomorrow's session would be somehow cut short but majority leader mcconnell confirmed that the trial will resume tomorrow and that it will last for several hours. back over to you. >> thank you very much. we're going to take a quick break. here is what else is coming up on "the exchange ahead, disney, movies and

hamburgers, the coronavirus is impacting more than just travel stocks changes are coming the fico score and for some it won't be good. the highest paid nfl athlete hangs up his helmet. what's in a name apparently a lot it's all coming up on "the exchange." we made usaa insurance for members like kate.

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welcome back boeing 777x is officially ready to take off in washington. our phil lebeau is there yes, get bob out of the way so we can see you >> poor bob. got to wipe the water off the lens. >> reporter: making a debut eventually on national television boeing stock on session lows but everything is selling off except intel. tell us the significance of this particular jet. >> reporter: well, the 777x is next generation of the 777 which is that boeing's very popular wide body. they have been building this more than 20 years and it is a larger version of the 777. it is powered by new ge 9x engines and when this plane takes off, it is hard to get perspective.

these engines are massive. and the reason that they have been built for this plane, better fuel efficiency, better efficiency overall for the airplane, these engines are so wide or big in terms of circumference you could stick a fus raj of a 777 inside of the engine on the ge 9x for perspective how large they are for the 777x they're promising 10% reduction in costs per seat for the airlines that ultimately will fly this plane. and that's huge when you're talking about the distances that this plane will cover. passenger load, depends on how it's configured. about 350, 360 passengers. if they do a stretch version of the 777x then you could see potentially get up to 410, 420 passengers as bob once again wipes the camera there we have to in a bit of a rainstorm in everett,

washington. >> why do we care about the test flight is this -- is this a reminder by boeing that they have some positive things going for them right now? >> reporter: no. no whenever you have a new aircraft, the first flight -- it's not just a big occasion for the company that manufactures the plane. it is really the beginning of the test flight sequence that the company will go through with the faa, with whatever regulator who is approving that plane. so this begins what will be a series of test flights for the 777x they believe they get the plane certified by the faa whether it's latter in this year or early next year and then first deliveries on the 777x beginning next year. and just as a point of reminder, behind schedule of originally planned. they thought they would have first deliveries this year, now pushed back to next year so this is the beginning of the test flight sequence of event that is will happen over several months. >> all right well, we must move on, my

friend so hopefully this thing will take off. >> reporter: you'll be back to me this plane will take off. >> we'll miss the whole thing. phil lebeau there in everett, washington thank you. so -- let's get to my favorite time of the day. rapid fire and here with their take, we have got robert frank, captain america himself, rahel sullivan and look who's in the fat seat today, eric chemi. >> he is not fat obviously in great shape. >> unflattering seat on the set, yes. >> good to see you all here. first, though, not a happy topic that coronavirus, sickened more than 900 people leading to various shutdowns in various chinese cities and the disney theme park and 70,000 movie theaters in china. julia boorstin's stepping in with some of the latest

developments there this just tells us how significant this is already in china when you're shutting down some major businesses over there, julia. >> reporter: absolutely, bill. this is a huge deal for disney shanghai shutting down the park. disney says it's working to reschedule guests or refund guests and lunar new year, how important the season is, both for parks and theaters disney already sold out tickets. making a big deal for the year of the rat calling it year of the mouse for mickey mouse and investing a lot in the season so they're going to be losing revenue there and disney only owns 43% of that park and then movie theaters, 70,000 movie shuts down and expected to be a massive lunar new year season at the box office expected to bring in as much as billion dollars in the box office and there are no u.s. movies that were scheduled to open and then canceled only chinese movies that have

been canceled for that big box office season. >> julia, thank you. this is -- >> it is major and also starting to see american corporations take notice, as well mcdonald's shutting down locations in five regions where this is becoming concerning and outside of the five regions that every employee at an mcdonald's in china will be tested when they come in for the shift to see if they have a high temperature and if they do, they're sent home. it is alarming. >> dr. scott gottlieb was on this morning saying it's unclear whether the lockdowns will really work given what he called the golden window which is the early incubation period is long gone and so yes you're locking down 30 million people and may not be good because the people dispersed. >> usually it goes away. zika, swine flu and then one day we didn't talk about it anymore. that's it. >> they do usually until they

don't like sars. >> what's significant is if somebody gives that virus to somebody else when they get back here to the united states. then you've got a problem on your hands. >> right. >> so far just the people who have been to china, come back to the u.s. and they start showing symptoms here but you have to wait to see if it becomes a bigger problem there next up, at home dna testing company 23 and me cutting 100 jobs amid a sales slowdown not the only one feeling the pain meg terrell just spoke to the ceo of illinumina. >> the market slowed down last year and had a few years now of very strong groetd in the 15, 16, 17 time frame and then last year with a slowdown. >> a business with which i'm familiar. >> your book too successful, bill that's the problem too many people read that and were worried. >> i told kelly she shouldn't have done that genetic test.

>> did she get it back >> yeah. they track all the data. i know a lot of government employees told do not do this. >> military, yep. >> not good from a privacy, data safety standpoint. you can only buy it once how many times do you get a genetic test my dad wasn't my dad. >> you can get -- there are other genetic tests. >> you have to use it right. >> why do you think it's slow? >> two things. one privacy. i think that's number one by far. we hear about these -- >> the data sold by the companies? >> given to the cops >> there is sort of a -- >> which it has been in the past, of course. >> not a tangential feeling but the fear of the dna in somebody's hands you don't want them to know about it. right? ancestry owned this market for a few years and not surprised 23 and me is cutting employees

because ancestry by far has the biggest market share in this business so companies like 23 and me, family tree dna and others, my heritage, i'm sure have seen a huge decline in the number of dna tests taken. >> executives said they think if there's fears of the economy slowing down that people may not want to spend a couple hundred dollars on the tests i wonder if it's more of the privacy. >> the price is coming down, though so you can't always point to that i'm on record saying the day is coming because right now it's too expensive to try to do a whole genome but the day coming when insurance companies will require you, eric, to take a dna test. >> people find that scary. >> then why have insurance average it out we know what it is then what's the point? >> will have more data, though more data. you are mr. data. >> too much data is a problem. >> oh. >> other people's data's good, not your own. >> and then this two-time super bowl champ eli

manning hanging up the cleats today. i wonder if thigh ter matheson will do a tribute to him deaf ears. addressing fans and the media at the practice facility, do you know believe it or not he is retiring as the nfl's highest earner of all time >> look who's next to him. >> raking in $250 million over 16-year career and yes, brother peyton is number two. >> check back in a year from now. >> i was going to say. >> may not have to wait a year. >> who will pass him first >> brady or brees? >> rodgers after him, brees. he is going to drop down out of the top five in a couple years roethlisberger on the list. >> what's brady going to get paid a year next year? >> less than 20. rodgers is less than 20. >> quite a bit of money is endorsements. >> that's the value. >> most marketable brothers in

the nfl right now and peyton after he stopped playing for the broncos, he was like a god in denver and then all of colorado he's such a marketable star. >> peyton truly great. eli is average other than the two great postseasons and the value of being the quarterback of the new york giants, that's when he got his money. pretty good as the giants qb is money. a secret live. >> already there, yep. doing well. >> a quarter billion it's quarter billion. >> we're moving on. >> i know. >> getting wound up. finally, the latest iphone, catered meals and more than double the salary of competition, a few of the ways that presidential candidate bloomberg is trying to poach staffers from other campaigns, according to a report and following this story and this is the m.o. for years. >> yeah. >> when he was building the business years ago, right? >> that's right. he said he'll spend whatever it takes and when you have $60

billion, that's a lot. outspent donald trump and the other candidates almost combined with $200 million in the campaign look it is a business politics is a business the best minds in politics if you're going to get paid twice as much and gate free iphone and ipad pro and all this stuff and free meals and an amazing workspace and by the way, the people i know who worked on the campaign,there's no budget when you go to them saying i want to do this project in iowa, california - >> okay. >> okay. what's the budget? >> whatever it takes we have never seen that in politics. >> does it work for everyone right? we have seen in certain reporting that some people who have been approached and work for other presidential campaigns feel like it's aggressive, excessive and may not -- me hay not align with the values. working for someone, young, gritty, want to be with a campaign that matches your values then the money may not be enough. >> may not work for bloomberg. this money has gotten him up to

9%. >> project enlds at the end of the year right? money ends, come election year, this is all over go back to the regular job. >> that's how that works gee, this is fun. >> been great. we're not complaining. where's phil >> still standing out there in the rain and bob is wiping off the lens. >> there we go. >> oh television. >> there you go. pollock is at it again roses by any other name may smell as sweet but a top analyst argues that's not the case for technology companies and we'll have some fun with that when we come back. ♪ i've been a caregiver for 20 years. 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.

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moving lower and on pace for the worst day since october. this is the 10-year, as it continues to fall. copper sinking down nearly whatever percent it is there this week it's worst week since november of 2014 wow. and you know how economically sensitive copper is. wonder what that means right now. so what's in a name? that which we call a tech company by any other name would it be as successful? according to wolff research, the answer apparently is no. while a novel idea or concept might launch a brand, a great name may determine the long-term success and joining us, the guy thinking a lot about this, steve, the manager director and tech strategist at wolff research good to see you. welcome back to. >> thank you. >> names matter, don't they? >> they do and it's true of any company, but in particular of tech, so

much focus on the product an the capabilities which are clearly important but it turns out that what you want to do is create a new search like search and be the brand in the category and to get the top ladder in the mind is the name. the name essentially becomes the brand over time so we think names which are often overlooked are important. >> i think about this quite often. google means nothing by itself. but it has become a brand name and, in fact, it's become a verb when you want to do a search right now. it's been that successful. how do you do that how do you achieve that? >> i think there are rules to good and bad names a good name is a proper noun like a google opposed to a garden.com or wine.com which i not what you want to do. establish the category and then create a brand name within it or you have a name that's linked to a benefit like die hard battery. a name that sounds good like

caress we think about the -- we sound them out in our mind sounding them out in our mind. as opposed to you don't want to be common or sound kind of bad like maybe unum and actually initials generally aren't boom ibm, dxc people use shorthand but starting out people say what that does that stand for it's 40% less memorable. >> with brand companies change the name i think of google which became -- had to have this parent company alphabet and then priceline becomes booking.com. you have to kind of remind yourself again who that is but yet, those are pretty good names but you don't like them. why? >> not too much. booking is very generic. priceline is a little bit better google we think is a very good name alphabet what does that stand for, right?

i think that confused everybody. it is the holding company and investors understand that and google is well established but you really want to have something that's memorable, that makes sen. ideally, tied to the name and it is not just the word over time but it is a visual can you create a visual, a logo or something like the famous coke contour bottle which screams out coke and reinforces the brand. >> indeed. your last name is not a bad name either. >> actors simplify but a schwarzenegger through, people remember it. once you learn it, you remember it. >> carrie snodgrass said would i change my name to snodgrass? what do you think? >> smucker's, it's got to be good. >> steve, thank you for joining us. >> thank you. a new start-up promises homeowners looking to rent out the house to both find tenants and maximize their rental income that's coming up and etfs are commission-free.

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welcome back in case you're wondering, that boeing jet is still on the tarmac right now and phil lebeau's getting drenched in the rain in everett, washington the weather is getting worse

but hope springs eternal we wait for that takeoff there there is a new start-up that is looking to disrupt the roommate-finding process while also giving homeowners a big payout diana olick with that story. >> reporter: alex redding and abbi sanka were complete strangers when they first toured this house over a year ago >> how was your day? >> good. >> reporter: but they promptly moved in together, along with three other strangers. >> it was perfect for me because i was just moving down here for grad school and i didn't really know anybody. >> reporter: they found the home through a start-up called bungalow, which rents rooms out in single-family homes they work with landlords, renovating the homes and furnishing the kitchens and common rooms each renter is on a separate room contract, and the sum of those rents is more than the average rent on the whole home. >> basically, we're able to capture 40% to 50% higher rents. and so, what that allows us to do is then work with homeowners, so we can actually create a higher revenue stream for them. >> reporter: bungalow takes care

of the maintenance, cleaning, lawn care and utilities and renters pay one monthly fee for all of that. bungalow also helps roommates prescreen each other by sending them to happy hour >> i think bungalow does a good job of, like, building a community of like-minded people in the same sort of age range and sort of experience. >> reporter: last fall, the company announced $47 million in new funding, bringing total funds to $68 million collins expects that will help them scale to more than 12,000 residents by the end of this year. >> fundamentally, we're looking to solve housing affordability and loneliness in community. >> diana joins us now live how does this pay scale work for tenants, by the way? >> reporter: well, it depends. so, you've got five tenants in this house, and they each pay anywhere from $800 to $1,100 a month, depending on whether you get, you know, the master suite or the basement bedroom. and then, of course, there's that extra fee that they have to pay for the maintenance, the

lawncare, the wi-fi, all of the amenities in the house, but it's a pretty good deal for folks who are looking to get a lot for a little >> all right, diana. diana olick with the latest on the tight housing market and the ways people are dealing with it right now. the company behind the fico credit score is making changes to its ratings system and millions of consumers could see their scores change. we have details on that when we come back. >> announcer: deeperdata @cnbc the american trucking association's truck tonnage index rose 4% in december. that's the biggest monthly increase since july. a golf course is designed to be difficult. to challenge your thinking and test your execution. but great minds are driven to seek out the complex. they see what others don't, from an angle others won't take. they learn that embracing those challenges is what sets them apart. i am justin rose, and we are morgan stanley.

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welcome back while we were in the break, all three of the major averages hit their session lows here with the dow down more than 250 points. health care and finance are the big losers today they're leading to the down side intel semis have done very well. intel was up more than 8% for a time on its earnings, and it has just been on fire lately but the rest of the market going south today. meantime, changes are coming to your fico score fair isaac corporation, the

company behind the credit scoring system, is going to put more weight on missed payments and rising debt levels imagine that as a result, the gap between consumers with good and bad credit is probably going to grow wider. joining us, ted rossman is industry analyst for creditcards.com. why are they doing this now? >> some of this is an ounce of prevention is worth a pound of cure lenders are worried that there could be a recession ahead fico's promising 9% to 17% declines in defaults under this new system, and they're looking at trended data for the first time basically, what have you done for me lately? they're trying to identify these new patterns. >> so, i'm somebody, i've got a couple of credit cards, maybe i missed a payment, one payment in the last year or so. i make my mortgage payments, i make my car payment. is my score going to go up or down, do you think. >> even that one late payment is going to hurt you. here's the biggest thing that's changing let's say you and i both owe $5,000 on our credit cards

under the old system, that part of the formula would view us the same nowadays, though, maybe you've been making a lot of progress. like you used to owe $10,000 and you've paid it down to $5,000. you're moving in the right direction. maybe i didn't used to have any debt, though, and now i have $5,000, so i'm moving in the wrong direction. so, now i would be penalized, you would be helped under this new formula. >> and they're mindful that there are a number of young people out there who are unable to get any credit, you know, get their credit life started here in some ways, this will help them, won't it >> it's kind of neutral on that front. what will help those people are new programs like ultra fico and experian boost, where you opt in, you let them look at your bank account experian boost has more than a million people who have done this, and they're looking for on-time cell phone and utility payments 60% of people who opt in are seeing a benefit the average boost is 13 points that's a good thing for young people. >> you know, you and i were talking during the break i remember when they had changed

the rules another time a few years ago, where if you added a new credit card to your portfolio or added more debt in some ways, your score went up. they welcomed that, right? but that's not the case now. >> and you know what's especially changing there is people who take on personal loans for debt consolidation and continue to rack up credit card bills, they're going to be hurt more under this system trying to close that loophole, basically, that used to exist. >> so, the best advice >> pay your bills on time, keep your debts low, don't apply for too much credit all at once. if you do that, regardless of the fico system, you're going to come out ahead. >> and by the way, it's not guaranteed that all lenders are going to use this new fico score, right >> great point the most-used system is still fico 8, which came out in 2009 fico 9 came out in 2014. and now we have this new one it's just like iphones, right? you might still have an iphone 6 or 7 not everybody has the latest and greatest >> it's all so complicated

just pay your bills. stay up to date as much as you can. ted rossman with creditcards.com, thank you for joining us today. >> thank you. >> that does it for "the exchange." i'm going to join seema mody now on "power lunch," which starts right about now. i'll give you three extra seconds, seema. >> bill, looking forward to it we will see you in a moment. good morning, everyone, i'm seema mody here's what's coming up on "power lunch." more than 900 cases of the krona virsion confirmed worldwide and two of those cases of coronavirus are here in the united states. one expert says we are in an age of epidemics he'll tell us how bad it could potentially get. plus, big tech stocks preparing for earnings next week, facebook, microsoft, amazon, the name wall street is most worried about. and boeing at lows of the day, the stock falling as the company says it may make additional production cuts of the 787 dreamliner we are also awaiting the takeoff of the test flight for the new