i have talked about this last couple of weeks as a final trade, a company that's in the index business, removing thermal, coal and oil sands revenue exposure from the indexes. >> intel everything of semis larger is writ large. >> good stuff. thank you. thanks for watching. have a great weekend "the exchange" starts now. thank you, scott welcome to "the exchange," everybody. i'm kelly evans. where the jobs are, labor secretary scalia joins us. we'll talk about who's hiring, firing and why wage growth overall is still a little anemia the anatomy of a parabolic move. the forces that led to the spike in tesla and where the stock is headed next. and here comes fang u. should you rent or buy we'll have all that for you. we begin with the markets and dom chu here with the numbers. >> i'm curious of the education at fang u. that's just me today, the first and only day

this week of red for the markets. it was a four-day winning streak for the dow, s&p and nasdaq and you can see we're off from .1% to .25%. we were down about 239 at the lows so tilting towards the low end of things. keeping an eye on this first and onlt negative day so far this week take a look at the week played out because it's very much a risk trade happening the s&p 500 over the course of this past one week is up about 3.5% not too shabby technology, the best performing sector up 5% and the defensive oriented utilities, down .1% that's the theme looking for that ipo story this week, it's got to be casper the friendly ghost maybe not the friendly ghost but mattress company it is down 12% the reason why is important. $12. that was the ipo price

we are at $11.86 trading below that price opened at $14.50 first day casper sleeping. investors may be losing just a little more sleep going into the weekend. >> thank you very much. we begin today with the jobs report blowing estimates out of the water with nonfarm payrolls increasing by 225,000 in january and the unemployment rate ticking back up to 3.6% but in part as more people reentered the work force joining me to discuss that is labor secretary eugene scalia. welcome. >> great to be with you. >> what do you think is most noteworthy about the jobs report today? how would you explain what's going on with wages in this country? >> well, kelly, like you said, it was a blowout jobs report really great numb boer, the 25,0 more jobs in january and the estimate going in right around 1258 or so and we beat that by nearly 50% so very, very strong number there

you know, other things in that report i certainly like. you mentioned wages. wages going up 3.1% year over year another good number. at or above 3% for a year and a half or so >> here's what ms. pelosi had to say. our workers have lost 12,000 manufacturing jobs wages struggled to keep pace with the soaring cost of living. the farmers suffering and farm bankruptcy reached an eight-year high last year. >> there's so much good news in the report and focusing on all the indicators that people ordinarily do it joois terrific. the addition in jobs, wage growth we are beating inflation, seeing real wage growth we are seeing higher wage growth for lower income workers as the president emphasized in his state of the union it really is a blue collar boon.

and then as again the president emphasized, we are seeing record low unemployment last year and still record low territory for african-americans, hispanic americans, asian americans and then on top of that, we have got usmca now which is great news for manufacturing and i think that and phase one of china put us on a very good footing headed into the year. >> yeah. >> so it's very hard to put a sad face on this news -- jobs report. >> one of the major topics around here, because everybody in the market wants to know, everybody who now senses the expansion going on for quite sometime says can it keep going? what happens does it continue to drop do you think more people can come in from the sidelines how low can it go? >> more people can and they are coming in from the sidelines but let me make a couple comments about that first, one thing it's true when you talk to business

people, their biggest concern for a lot of people is just finding workers. and then so that's a real concern. we are going to address that through job training programs but what a great economy when we have got such high employment now that so many opportunities for worker, chances to try to go to a new job an that's good news we'll meet that demand and we do see that the labor participation rate continuing to go up that's good news unemployment ticked up lightly to 3.6% but it was for all the right reasons. we still -- more people getting into the workforce and the enof last year we filled 75% of the jobs we did with people coming off the sidelines and look, we have millions more to do that and can be optimistic on that front, too. >> you know, i wonder if you could tell us your plans as lab labor secretary because it is an odd thing to be running a

regulatory body of as part of an administration with a deregulatory stance to it. >> it is a great thing to be running this agency now when the president is so committed to deregulation which has been one of the principle reasonsfor th job market we have right now it is tax cuts, deregulation and the trade deals. that's why we're having this record performance as the president mentioned, back in 2016 in the summer of 2016 the estimate was that by now we would be at 4.9% unemployment and that we would have added in that period of time just 1.9 million jobs we have blown that out of the water and the reason to change direction economically is because the president changed the direction of policies. so i think the deregulatory emphasis of the president is good news. that said we certainly continue to have a strong enforcement program at the labor department and recognize how important it is to workers and business that

we do the best possible job with our training programs, involving american businesses in those training programs and we do that partly through apprenticeships which the president put emphasis on and addressing other issues like opioids for the first time in 30 years we saw deaths by overdose go down that's good news for so many americans. in their personal lives but it also is hopeful news from the perspective of the job markets and being able to overcome this opioid problem and bring more people back into the workplace. >> do you see a shift of where people are working an living in other words, are we moving from cities like san francisco and parts of the northeast, especially after the tax cut and jobs act to places further south, second, third tier size cities and things like that? what's the most notable migration effect playing out so far? >> there's different patterns and a nice thing of this job report is growth in a number of

industries and we had some good news on the ism manufacturing index earlier this week which as you may have mentioned leaped into positive territory again for the first time in a few months so i think particularly with usmca we are looking for growth there, too. >> in manufacturing jobs, firefighter rest of tfor the rest of the year >> we are optimistic it was a principle reason the president ran for office was to undo nafta which he did not regard as a fair trade deal and it was the loss of manufacturing jobs it was a principle concern so i think we have protections in there that are going to make it better for workers in those industries in the coming years. >> labor secretary scalia, thank you for your time, sir >> thank you so much, kelly. stocks are sliding despite the strong jobs report why? the market is looking at coronavirus. the fed this afternoon said that the coronavirus is a new risk to its outlook in the latest

monetary policy report for more, i'm joined by barry james and jason brady. great to see you both. barry, you want to pick up on anything you heard from the labor secretary? the jobs numbers underscore a strong economy and the hit from coronavirus might be larger than we thought. >> well, it is a concern in the short run. market watch did a great study going back to the '80s on about 12 different epidemics and within 6 to 12 mornnths the markets are up and could be positive for investors to do some investing coming the labor report, the thing that is we try to look at are things predictive and a thing is the length of time it takes to get a new job and it's way below the level that you would see over the last 20 years and so that's a good predictor of the job situation continuing to improve the other thing we like to look

at are number of jobs created versus adults coming into the population, the workforce population and we're exceeding those so both of those are really good. we just need the one thing that's the fly in the ointment is that participation rate at normal levels of the participation rate we would have a 5.5% unemployment rate rather than a 3.6% so there's a lot of room for people to come in and hopefully starting to see that with this report. >> where would you be in this market as the dynamics play out? >> around the coronavirus fears, i certainly agree. look no one should or can minimize the traffic dick of loss of life in china but the reality is this is not what's going to cause the market to go up and down there's themes to play online shopping particularly in china but looking at economic indicators that we're talking about from this morning, i'll take a bit of a different tact yes, the participation rate is

lower historically but look at 25 to 54 we are back on highs there for me, when you see unemployment at these levels, jobless claims at these levels, yes, it is indication of a great economy that's going very well i completely agree with the labor secretary. but those typically are not times of additional tailwinds of further growth and markets work on the second derivative how are things changing again for the better i fear we pulled forward expectations for growth. the fed in this context as an example not cutting rates. this is a good economy. >> okay. barry, respond to that and explain why a name like pioneer natural resources interests you here. >> well, i think you got to go places that aren't in the popular vernacular right now pioneer, oil and gas, they're cheap on a long-term basis, earnings better than peers an don't have a lot of debt and we like some companies like radian in the financial area with home

ownership. i think the wage increases and so forth very positive there and then we also like mastec which is kind of infrastructure and we think that there will be something done this year in terms of infrastructure in washington and that's a positive we own all of those in the golden rainbow fund. >> you will have to wait for a long time for that pot of gold not much to show for it. jason, your picks are in china alibaba and tenson why now? >> they're beaten up and you see a lot of adoption further acceleration of adoption of the services gaming's a clear trend online shopping. that's just something the adoption rate there accelerates with the fears an because people are confined so just look for that to continue to go. >> both of you taking the long-term view thank you. good to see you. don't go anywhere. here's what's still ahead on

"the exchange." >> coming up, china is coming under fire from its own citizens for ignoring early warnings about the coronavirus. the details and the fallout. plus, forget manage. now it's fangu an looking under the hood of a tesla rally. [ sigh ] not gonna happen.

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welcome back china is in crisis mode following the death of the doctor reprimanded for sounding the alarm of coronavirus. the chinese people voicing their anger on social media and within hours the top trending hash tag of i want freedom of speech was not searchable on weibo. bill bishop says this is as close to a crisis for xi and the party as i think we have seen since 1989 joining me for more is michelle caruso cabrera why is this seen as posing such a challenge to the leadership? >> let me say first i read bill bishop's article for years what he's saying there is this is the worst threat to the party

since tiananmen square this is a huge crisis, those that cause a crisis of confidence in the government and a 2008 earthquake that the government highly criticized for and don't know how many thousands of people died, a high-speed train incident that also really got to the creditn't in 2011 of the bureaucratic system there but those are isolated in places and to certain sectors of society what is happening with the coronavirus is the entire country. is shutting down every single person is affected. and now, have this event with the doctor that died that tried to warn everyone, shut down by the government, krcriticized by the government you have a face to this. it reminds me of, say, the arab spring which started in tunisia with a face of the fruit seller so upset

how would you say? >> set himself on fire. >> right because he is -- his fruit taken by a bureaucrat. that was a face that really cat lized a protest. >> still it feels strange to talk about a challenge to the communist leadership which has solidified and concentrated the power since xi came to power in 2012 people spoint to the response to the outbreak of the flu saying the government knew there was something spreading, let the massive celebrations going on, still let people leave this city and this province before they really -- spread it and the world before cracking down so i guess for a communist party that prides himself on competence, this seems to particularly undermine that message i just don't know how you could possibly talk abouta challenge to the power that they hold on this country. >> it is almost impossible to know from here right? also impossible to know, they're completely unpredictable when they happen. people have been predicting the downfall of the chinese government for a long time and they have managed to survive

is this finally the moment no when you hear china watchers that don't say the things very often, clearly this is significant. >> what kind of response should we expect now from the leadership in order to indicate to the people there, to the world, other than the typical censorship moves, how might this play out >> it's beyond the borders i know someone that lives in hong kong, a former producer we stay in content there are now empty shelves in hong kong where people are hoarding rice, they're hoarding toilet paper, tissues. et cetera. this is because there's panic about the supply chain happening in all of asia yes, china controls hong kong and up until recently it was one of the most free marketplaces that you could find in asia and the fact that you are seeing this kind of panic in places like hong kong, in mongolia, they have shut down the border now that they're worried of

whether or not they have food throughout the winter. you have a large impact across that region that i'm not sure the chinese government has the ability to handle and the bureaucracy has the ability to handle remember how we struggled in the wake of hurricane katrina. >> sure. >> a much smaller area right? in theory with an organization that existed fema presumably to do only that and still couldn't manage it. >> this strikes me this is not as difficult an issue as sort of the illnesses and the loss of human life but the bigger threat to china long term is dislocation to the supply chain to other parts of the world and a supply upset by interruptions and delays because of the trade talks and the tariffs, now comes this new threat and i wonder if that adds insult to injury and makes people say i better make sure i'm sourced out of china. >> yeah. i think distributors long thinking about should there be redundancy in the sup play chain

so they're not in trouble like this but they discovered there's not many choices not a lot of capacity in vietnam, for example bangladesh does not have the know-how with high quality manufacturing so really stuck in a hard place if the supply chain is shut down for a listening time. >> thank you we appreciate it coming up, luxury retailers feeling the fallout of coronavirus. we'll look at who's the most impacted and how much worse it could still get. ill lumina, what they're don and where we stand on that front. you can always watch or listen to us live on the go on the cnbc app. "the exchange" is back in two. legendary terrain in telluride,

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welcome back to "the exchange." here are the movers this hour. pinterest up nearly 13% after they beat on the top and bottom line average revenue per user coming in stronger than expected. ebay shares under pressure after intercontinental exchange said it is not interested in the platform shares of winn lower on an earnings miss. the company expects to lose $40 million in macao over the next two weeks. and now let's get to sue herera. sue?

>> thank you so much the defense calling its first witness in the rape trial of harvey weinstein cognitive psychologist telling the jurors as memories fade, people become vulnerable to post-event information including media reports that can distort what they can remember. trees on top of houses in south carolina as the national weather service investigates whether a tornado touched down the crews on the ground today surveying that damage. french president macron advocating a defense strategy of france that bloc's only post-brexit nuclear power would hold a central role setting out the country's nuclear strategy addressing military officers graduating in paris. university of michigan researchers polling over 1,000 adults in their 50s and 60s, more than a quarter said they were worried about being able to afford health insurance in the

coming year and increased to half when they looked ahead to retirement you are up to date that's the news update this hour back the you. >> okay. thank you very much. here's what else is ahead on "the exchange. >> ahead, canada goose is losing some of its feathers forget fang. it is all about fangu. the chevron ceo makes his case for why his industry isn't tobacco and now illumina is helping to find a cure for the coronavirus. chalcongp "e th exange." mike: anyone hear the slogan,

'mike will get it done?' ok, let me tell you what the 'it' is. as mayor, i expanded healthcare coverage. as president, i'll build on obamacare because healthcare is a right. i created nearly 500,000 jobs in new york city. as president, i'll build an economy that delivers good jobs with higher wages. i'll take on the gun lobby and save lives. and i will stop trump's assault on women's reproductive rights. i've got a record of doing things. i've got the resources to take on this fight. as mayor, i held myself accountable for results. as president, i'll offer common sense plans and i will get it done. so let's stay on the offensive, and let's win.

i'm mike bloomberg and i approve this message. yard signs are very polarizing let's catch you up on a few stories to be on the radar today. it is time for rapid fire. here now with me dom chu, kate ronlgers and robert frank. first up, a double hit for luxury today burr berry said the impact they had to close a third of chinese stores canada goose said it will erase any hope of growing the bottom line this year

now expecting flatness and for the whole sort of handbag, clothes, luxury sector, chinese buyers 35 of the spending on handbags, 2% 20 years ago. >> i don't think there's any part of the economy as tied to asia and china as luxury you know, lock at the luxury watch companies down 11% last year they're getting clobbered in hong kong, the largest swiss watch market in the world. >> ferrari down in q4? pre-coronavirus? >> the slowdown in china due to tariffs and generally what was happening and see what happens in the first quarter and the high-end companies are tied to china and the question not just that but the supply chains, where i get my shirts made are made in china by a new york tailor i ordered the shirts, usually come in a week, a month and a half delayed and don't know when

that factory will come back online. >> the subtle point about the canada goose earnings report is that, yes, the earnings are affected because of the coronavirus but they specifically mention the fact that none of their supply chain was impacted by this so what they're trying to do is delay -- >> they can get there. >> the growth is not gong to happen revenue-wise there but think' not debilitated by the supply chains. when it resolves itself, humankind will move forward, these guys will be ready to put more product out. >> they may wind up holding up better than the restaurants because if you are going to make a big ticket luxury purchase when things clear up, will you go out and do it they probably will but the missed meals at starbucks or yum restaurants -- >> totally perishable. >> next quarter will be so interesting an trying to say that the stores open post-lunar

new year holiday saw drops between 40% and 50%. >> especially around chinese lunar new year a commerce sector holiday. >> i don't know if we have it but the footage of talking to michelle at the last block and hong kong shelves are empty because everything is sourced from china and it is just not there. i mean, i don't know what refills the shelves. you are talking about people reacting to the sense of they're not gong to have product and potentially creating a situation. >> i would say - >> not anything for weeks 0 i the argument for the counter point is that if supply chains are not being impacted by this, this is strictly a sales issue -- >> but i think they are. i really think they are. certain categories. >> could be a pushback effect. so that all of the stuff not happening now will be made up for once the production ramps up and then a boom again. >> if you don't get it - >> comparables are easy with a situation like this.

>> it is multiple quarters of figuring this out. but let's move along and talk about uber with earnings and should it be added to fang that's what tech analyst from rbc capital markets thinks up 10% right now after the better than expected results, best day yet as a public company. the ceo sat down this morning with an update on when he expects uber to turn a profit. >> if you look at our plan for 2020, for every dollar of revenue growth especially from q4 to q4 we expect to drop 50 to 55 cents to the bottom line and doable to get to profitability by q4 but at the same time make the kinds of investments we wan to make. >> you're joking fangu or fangu. i think it should replace netflix and make it foggy. >> i guess if you want the look at the additions and deletions to this quasi whatever index we

talk about with fang - >> an etf now. >> fair enough, there is but this notion about what is going to be driving the sentiment or the feel or connotation, there's no doubt there's a point because uber is a company indicative of a new company, a new paradigm. >> a terrible investment this is so fascinating like one good day and then suddenly the biggest investment of the decade? >> it is encouraging to hear how disciplined of the strategy. i think we all use uber and we would continue using it if it was more expensive an ability to flip that switch is not easy but doable than we thought maybe six months ago or a year. >> he's talking about the food delivery sector and where i pay attention to uber eats and you

see mcdonald's moving beyond because they need to work with doordash and whoever it is to continue to grow and do need to grow and consolidate in the sector and thinks it's a company to be left standing. >> survives. >> didn't rule out like he said we'll be number one in that sector or not -- i have an idea. starbucks i think is a technology company how about -- google is now alphabet. >> what's the acronym? >> snafu. >> i like that. just personal opinion, let's talk nsg it's come under fire as the biggest u.s. sustainable funds in energy companies according to the journal. we say this why? because chevron ceo michael worth responded this way of investors' concerns comparing oil to tobacco this morning. take a listen. >> the reality is the world runs on the energy system that we

have today and i think the comparison to tobacco is not an appropriate one at all if tobacco were -- use ceased today, i think the world would be just fine if we cease to use all of all hydrocarbon products today, the world would not be fine. >> smokers would disagree with that. >> yeah, right. >> here's what i would say a lot of this, the interesting points, we interviewed kate richard, a great, young energy investor here in the sector and one of the things to point out an rightfully so in response to jim cramer's rant is that tomorrow you cannot just shut down use of energy people will still fly. people will still drive around even though, yes, electric cars are part of the picture but tesla making a 0,000 cars a year compared to gm makes in a day. >> it's a false choice the question is, as an investor, is this wo where you want to put your capital

i think more and more particularly younger investors, not where they put their capital and look at parts of the energy sector that have been so dependent on capital, the fracking companies, this free money and you just start to wonder who will happen to industry if the capital flows slow down. >> here's my thing bear with me if you have -- people of means who are choosing not to invest in cheap oil and gas that raises their cost of capital, arguably raises the cost of doing business and the cost of oil and gas and for the lowest income people in this country it is less affordable. a big problem. if you're saying i'm choosing to die vest from oil and gas, thereby making it more expensive for that somebody that depends on the cheap energy sources, not an exact cause and effect but it is going to play out some way because unlike tobacco you don't have a choice to not use oil and gas. >> guess how much that costs you. >> especially the lower income

side. >> there's a point made right now that the investment side of things, this is a singular focal and angle. some people look at it as an income stream. >> yep. >> pipelines do that kind of -- they serve a purpose and that purpose isn't going to go away in a year or five years. >> people stop investing and it is so interesting to see what the real world effects and probably trying to prevent that. we must move on. let's talk back to the jobs report this morning. gangbusters as you saw and talked about the eshissues in china. furniture manufacturing making a comeback in this country and facing a problem of more jobs than workers available, kate so again, this is kind of like every macro trend coming together in a big way. >> since the year 2000, number of workers in furniture manufacturing in particular basically cut in half but started to tick back up, particularly around certain

things like custom upholstered armchairs or sofa so we went to north carolina, hickory in particular, the furniture capital of the world and basically trying to recruit younger workers to come and do this work and so there's the furniture academy and basically you go there for nine months, you learn a skill. they have graduated over 300 students, they have a 100% job placement rate make up to $30 an hour with experience but part of this larger story that we keep talking about is changing the perception of modern manufacturing and something the national association of manufacturers made a push into half a million open manufacturing jobs in the country. this is just one small part of that but it's all about getting younger kids involved. >> how much does it cost for nine months? >> $600. >> $600? >> wow. >> return on education investment. >> seriously. >> sign me up. >> seriously. >> that's fabulous. >> and the academy is basically five legacy furniture companies

in that area teamed up to work with the school to design the curriculum the community college fell out of favor with no jobs, especially in the recession. now as it made a comeback they have more jobs than workers and a good and bad problem to have. >> sure. i know $600 that beats 60 grand a year. >> a year. >> making nothing. >> get your furniture job. >> some of these people get jobs before they graduate bassett furniture had a graduate that hadn't even graduated. >> thank you the novel coronavirus has infected more than 31,000 people we get an inside look at the race for diagnostic tests and vaccines next. heading to break, a look at the top ticker symbols right now tesla hanging on to that gold medal position uber in second place the 10-year and apple round

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while our competition continues to talk. ♪ talk, talk welcome back to "the exchange." let's take a quick look at the markets with the dow down 233 points today and it is the underperformer with that decline. the s&p down only about half that much and the nasdaq do down .3% the death toll of the coronavirus tops 630 people and more than 31,000 cases worldwide. the hunt of diagnostic tests and vaccines is under way and meg tirrell joins me now. >> companies are jumping in across the board to work on potential drugs, developing new vaccines and rapidly working to make more diagnostic tests available. another key task is helping to better understand and track the novel coronavirus and where illumina can come in saying the sequencers used to identify the

profile of the cry sus which is the first step to developing diagnostic tests and vaccines and technology could play a role in detecting new mutations in the genome and testing where tests are inconclusive they said they're working with china to help with testing protocols and training joining us with me is illumina's chief medical officer to help us understand the role the company can play in china. doctor, tell us more about what you're able to contribute here >> thanks, megan it is great to participate today. as you said, it is remarkable within a month of the first case being reported to the w.h.o. the full sequence of the genome of the virus was published in the new england journal january 24th this lets entities identity the virus, be able to develop

diagnostic tests to be distributed broadly to really the understand the pace of the virus spreading, understand when's infected. sequences can have multiple impacts first on patient care, understanding if a patient confirming positive cases with definitive evidence and also if there are other infections going on we are in the middle of influenza season and help public health officials track this virus. is it changing changing in a way where our anti-viral theories or vaccines may not work finally, work flows to understand broadly viral infections because this type of epidemic unfortunately is just something that we have to be ready for now. >> you said last week you were working with folks in china, public health labs there to help them use your technology even in the last week things

changed dramatically how can can you get boo the country to send things into china and actually make headway there in helping >> yeah. well, it is fortunate in that china has a healthy install base of the sequencers and access to the technology and they're working quickly to make sure that they have the resources and the -- what we call the consumables, the materials to run the tests and our team in china has been helping them make sure they have full access supply chain has some potential challenges but through being proact i, making sure we had enough materials sent into china as quickly as possible and then through finding continuing channels we are making sure that the public health officials have what they need to understand this infection and do their best to control it. >> doctor, what we do do we knot how dangerous coronavirus is not just the doctor that's the

whistle-blower died of this but he was a young man of good health and prime age should we be alarmed about this deadliness here or not >> i think we know about the sequence and still early in understanding exactly how dangerous this virus is. you know, we see the numbers, the number infected as meg said over 31,000. the number that passed away over 600. the majority of the information coming out of china and dependent on that information. so i think it's still very early. what do we know is that we have seen young individuals die the death in the philippines was a 44-year-old gentleman. we know that was a complicated infection r infection. also had a bacterial pneumonia involved and are people dying of the virus or of co-infections? it will take more time to understand that. >> can you help us put in context the importance of

knowing whether a virus mutations? the world health organization says there doesn't look like there's evidence of it changing. >> that change can lead to more, greater infecktivety or virulence and more people to die of the virus and it also has implications on therapy. did the anti-viral medications work are mutations in the areas that the vaccines recognize will they become less effective? it is incredible in that we see global sharing of genomes. i saw 66 complete novel coronavirus gentlemomes shared seems like some changes, that's always going to happen but we haven't seen changes in the areas where the virus enters the cells or in the changes to change the response to therapy but again it would stress it's rlly and we have a lot to learn

before we're fully comfortable that's the case. >> additional complication of china. thank you. meg tirrell, we appreciate it. tune in to "outbreak: coronavirus" live tonight at 7:00 p.m. eastern. up next, we'll get under the hood of tesla's huge rally and talk about why it may t stnola when "the exchange" comes right back but inside every etf... there are untold hours of careful construction... infinite "what ifs?" and contingency plans. creating funds that help target gaps in client portfolios. tap untapped potential. and strengthen confidence in you. flexshares. powered by over a century of investment expertise 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.

tesla's wild rally has c captured the imaginations of every investor, but what has propel led the stock to these dizzying heights and can it keep going? john, welcome. this has been just a phenomenon across the street. so you have several reasons why it wasn't just a short squeeze what are the factors here that you think has pushed tesla up so much the week? >> there's a lot of factors. the earnings cash flow doubled really hated stock we had democrats floati ining i about a national ev. charging grid. we had obviously lots of shorts.

people were not believers for the long time and the interesting thing about this move and we had big option open interest after the earnings report, which was early february see the options chart. which meant as the stock went higher, those who were short options had to buy more and more stock and there wasn't stock out there to buy coupled with the shorts so we saw a lot of retail interest the whole way up u and then it seems like retail started to sell when we got up to like $8900. >> so this i want to zero in on. this is suh u per interesting and we haven an deck doe tall efld that sofi said there's a ton of retail interest on is app. it surpassed apple has most traded stock but you're saying overall retail investors were sell iing tesla to high price institutional masters? >> they were more sellers on the way up if we look at lock, trade flow and money flow, we see retail,

there wasn't a lot of locks going into the end of year then we saw a lot of locks. you started to happen blackrock, you started to get the esg push. so therefore what's the best esg stock. probably right now tesla would have to be in that in that bucket then you start to have the between that, the option guys, the shorts and the fear of missing out, not meeting your benchmark index, that all kind of let it, it fed on itself >> it's important for people to know, it's usually not one thing. the la la pluz effect. does the spike tell you that a collapse is next or how do you think about the stock from here? >> we have the options pricing today's close, plus or minus $10. it had a similar move. again, everybody hated it. went to 300 and retraced back to

150 then strayed in a trading range for a little bit really, we were at 900, 950, if we were to trace back 450. >> would you be a buyer? we had been b a buyer in the bonds. it's the type of technology we like network effect huge short interest. s3 had a lot on it so it's the technology that bill kind of likes to look and watch and follow and we'd be following it >> we'll watch to see if that 450 level is next. john thank you so much for unpacking this for us u. as home prices kopt to climb climb, the should i wi or rent question is getting harder to answer we'll take a look at which strategy to use and why and some of the hottesteaeste rks,ext. rl ta

f. rates are rising, too, so it's getting trickier to know what's the best alternative. diana? >> mortgage rates are very low but the competition for homes and rents are not easing up so the cheaper option depends on where you u live the top 50 metropolitian areas

are almost evenly split according to a report from cj patrick company. itted at costs of renting and owning and for the own side only, looked at the lowest quarter of the home price scale where first time buyers would be memphis had a month hi rental cost of $914 almost twice what it cost to own. oklahoma city, tampa, st. louis, atlanta and new orleans, all cheaper to own cities in the west dominated the markets where it's cheaper to rent because home prices there are so high. california claimed four of the top spots also salt lake city, portland, providence, seattle and denver new york city about the same as denver >> i'm moving to memphis got to be pretty inexpensive housing, diana >> yeah, absolutely. it's all based on the median prices of home, but you have to look at the rental stock we're seeing so much more come on and so much more demand for rent that's what's really changing the equation we thought rents would come down, they haven't yet

>> thank you so much as always with real estate, it's local and thank you for joining me here on the exchange. i'll go join tyler for "power lunch" which starts now. good afternoon, everybody. thank you u, kelly and we'll see you in a moment's time welcome, everybody here's what's new at 2:00. the rally taking a breather and stocks down with an now off 250. after a better than expected jobs report. we'll tell you why it could be a bad thipg for the market plus, the number of cases of coronavirus jumping now past 30,000 as businesses in china deal with the new reality. we've got the details on that and later, the bitcoin boom. the crypt o currency climbing back to $10,000 or there abouts and there's one surprising factor behind the surge. we'll explain what it is as "power lunch" starts right now >> yes, welcome to