because we didn't have time zplp s >> see what i did? >> yeah, who's left, carrie? >> american waterworks, akw, it's underperformed and we think it's attractive here >> good to see everybody here. thanks for watching. kelly evans picks it up now. thank you, scott the dow down about 85 points right now. the s&p and nasdaq also negative dow was down 200 or so at the lows it still remains on track for its biggest weekly gain in six weeks. something to keep in mind today as we continue to see these declin declines it's been a tug-of-war over two big headlines. the bu bulls listening to new york governor cuomo talking about improving coronavirus numbers.

>> kelly, you're absolutely right. there's a pull and tug here, let's just call it, between the bulls and the bears today. let's just take a look at the s&p 500, because we're down a little bit right now, but i still see evidence of the market broadening now let me show you the intraday on the s&p 500. see that dip in the middle of the day? that's when we start getting headlines, beijing threatens u.s. with sanctions. this is a big market mover reopening, stimulus, treatment, china relations. those are the big four things that move the markets and you have one of those we're talking about today. but overall, let's look at the sectors today. i still see evidence of a rebalancing. aed by more broadening out in the markets. look, the russell 2000 up again today. industrials have been a laggard. banks are relative outperformers. energy is the one thing that's definitely underperforming the overall market, although that's been better recently megacap, i would say, not a big factor today, although i see facebook as another new high just keeps on going. but everything else on the flattest side there.

retail having a good day i like reading tjx's report. this is the t.j. maxx. but sales were a lot better than expected and some of their overall sales, their comp store sales actually were a lot better than people anticipated. move up there and we'll see ross we'll get that after the bell. ross stores. >> and coastkohl's we bounding o after its earnings report. let's get to the latest. those stunning numbers in the housing report today existing home sales in april dropping to the lowest point in ten years, nearly, as the market got a one-two punch from inventories and prices let's get to diana olick with all of the details for us. diana? >> yeah, kelly clothes sales fell nearly 18% for the month. and believe it or not, that was a little better than expected. the bigger shock was supply, which was already really weak before the pandemic, but fell nearly 20% annually to the lowest april reading ever, as

current sellers pulled their listings and very few new sellers entered the market even though mortgage rates jumped in march when most of these contracts were signed. and ending tightened up. so competition among whoever was out there was clearly fierce and one really interesting stat in all of this, condo sales fell much more sharply than single family, leading the realtor's chief economist to suggest a potential long-term trend of people fleeing the cities and heading out to the 'burbs. kelly, i know we've talked about that a lot >> yes, near and dear to my heart. diana, thanks. i've seen it play out in the neighborhood we'll talk more about this now, what is going on in the housing market as bad as april home sales were, was that the bottom? and how quickly should the market recover joining me now to talk about the path forward for real estate is ryan gorman, the ceo of caldwell banker real estate, with more than 94,000 agents worldwide ryan, welcome. must have been a very stressful period the first month or two of

this my neighbor's house was for sale right when this all hit, so incertaini certainly know how anxious it can be but talk about when you think the market bottoms and some of the new tools that might help the market rebound >> some of our tools show april having be a bottoming out. we saw some information from the national association of realtors this morning that was just referenced that seemed to point to that as well and we have seen week-over-week increases since that time. >> one of the most stunning things i heard from diana already this week is that mortgage applications to purchase a home are only down 1.5% from this time last year. that is stunning is there a little bit of catch-up, almost accelerating housing demand going on, ryan, because people are trying to look for properties that are more stable, maybe outside of the urba renting? >> i think there's a lot of truth to that. when i look in the data, the

highest correlation i see between activities in the housing market and more general activities, it has to do more with the state orders. as the states lock down to try to keep us all safe, what we saw was listings not able to come on to the market, because for instance, we had trouble getting photographers into homes and saw buyer demand really bottled up now, as we see counties, cities, and states lifting some of those orders, we're seeing listings come on to the market much more quickly, trying to catch up to that 20% deficit, as well as buyers getting into properties as quickly as they can a lot of the virtual tools we have made available to view the properties are wanting to get in there themselves before they want to make a final offer >> we have a video, i don't think we have the music with it, but it's a neighborhood tour that one of your real estate brokers had taken to kind of show the prospective buyer not just the house, but the area around it, and it had drake going in the background. and i've seen you guys have these videos on tiktok could you talk a little bit about what the market segment is

that you're trying to reach that way. i mean, how young are these buyers, or is it that, hey, drake listeners are older than we think they are? >> sure, it's been a tremendous transition we have entrepreneurial agents all over the country and all over the world caldwell bank operates in more than 40 countries, and they're leveraging a lot of consumer tools as well as caldwell banker proprietary tools to try to bring those list skpings and the neighborhoods to life for clients. it's not just millennials that are open to this 60 to 70% of all buyers we're surveying are looking at different areas, properties, and even potentially making offers on properties, having only seen them virtually right now, which i think speaks a lot to the pent-up demand i don't think the long-term trend will be that everyone will only look virtually at a property to make an offer, but i think they're valuing their time and safety trying to use some of those virtual tools to take a look at a property, weed out some, and make an offer. >> because certainly getting a real walk-through with a camera

is much better than just a slide show that we used to see for the most part. i'm also curious, a lot of people, it's important that there's a home office or some kind of dining room or maybe extra bedroomthat can serve as that is the sort of features that the people are looking for, is that change qumg and can you also speak to the price points? the high price point has been a chronic feature of this housing market, and i wonder if you expect that to come down or go up >> absolutely, i'll speak to both the top three trends right now, number one, no surprise, is home offices. that's always been a lighter demand and we're seeing it rise to the number one most requested item, as we all figure out how to work from home. i'm currently in my middle school son's bedroom at the moment so having a home office might work out well for folks. the next two trends we've seen before, but moving more towards rural areas for the primary residence, if you can work from home for a little bit office, and for that secondary or vacation residence and the private outdoor space has always trended very highly, but is trending even more highly

most recently. that speaks a little bit to what we're seeing on the high end, as well caldwell homes else more homes valued at $1 million or more than any other brand in the market we see a lot of this and one of the biggest trends we have seen initially is folks who had listed their secondary residences, oftentimes a beach place or a mountain place, they moved into that property and took that listing off the market that constrained the listing inventory and rose some upward price movement as well and we're seeing those listings come on back on as a faster rate than lower priced listings so obviously, the market is trying to seek an equilibrium and trying to get listings on the market >> maybe that's a hopeful sign for everybody if they're moving out of the mountain house, maybe things are starting to normalize. >> fascinating, and the bedroom looks great. i don't think the middle schooler keeps it that clean, but if so, congratulations >> if i tilted the camera, you would see the value of staging >> exactly you know it better than anyone ryan foreman is the ceo of

caldwell banker real estate. to the markets now where stocks may be taking a breather after rallying over the past week, but when you go inside the averages, some sectors in particular have been knocking it out of the park. the retail etf is up 40% over the past two months. the dow jones internet etf is up 42% and the energy etf is up nearly 60% have investors missed their chance or are there more opportunities ahead, brian belski is chief investment strategist and chris toomey with morgan stanley private wealth management great to have you both here. brian, i don't know how passionate you are about investing by sectors, but are there places right now that still have a lot of value or would you stick with the places that have been outperforming >> a great question. thanks for having us on, evans i think the thing you have to think about is we have a huge weighting in amazon.

the amazon machine has clearly dominated the performance of consumer discretionary but i'll remind everyone, back in 2008 when i was at another firm, i came out with a strong overweight recommendation of consumer discretionary you always want to buy consumer discretionary when the economy is heading into recession. typically and historically, consumer discretionary is the number one coming out of recession. the components of consumer discretionary clearly are different, kelly, with amazon dominating like they are but also, too, think about this. you have situations like hotels and restaurants that are more value contrarian names that are going to clearly, some of the leaders, clearly are going to have a huge recovery as well we have exposure in some of the portfoliostha th s that we run o capital wealth but i think the bigger theme in discretionary is lifestyle and one of our biggest positions has been lululemon we kind of look at lululemon as

the next levi's. as the next jeans. we're wearing them from home now, because we're not going to the gym. >> it already is the next levi's >> yeah, this is one of the -- that's great story to think about, a stock that led prior to covid, during covid, and coming out of covid same thing happens with respect to the apple, amazon, google, microsoft. these are names that led before covid, during covid, and we think will lead after. >> chris, let me turn to you on that note. i know you have a lot of the same clients what kind of investments and places are you putting their funds to work? >> i agree with brian. i think the strong will continue to get stronger as they have been through this crisis we're seeing small caps starting to outperform large cap.

the area that's providing real interesting opportunities and the things you need to be paying attention to is what's going on in the bond market i don't think most people are talking about how expensive the bond market is but the 30-year this year has returned almost 25%. which is amazing, given the environment that we're in. in addition, i think there's a lot of opportunity, select opportunity in high yield. we would also be looking at areas in the preferred market -- >> sure, but just to be clear, chris. the 30-year has returned 25% does that mean that you would avoid those parts of it and be buying more of the high yield. is expensive a good thing or not? >> expensive would not be a good thing here right now if you look at the ten-year, we're looking at two-thirds of a percent return we just changed our expectations for fixed income over the next 20 years to be about 1.5%. and one of the things we're

particularly concerned about right now is inflation picking up as we start to see the economy get back, and demand potentially outperforming supply, we could start to see inflation starting to pick up we saw, as you mentioned earlier, energy prices going up 50%. and as we all snoknow, inflatios a killer with regards to fixed income investing we would be look at selectively adding municipals, but we would be very careful with regards to investment grade credit. >> one other area that you are kind of tiptoeing into the best bottom fishing candidate is the big banks is that name independent or just the sector as a whole, you think, might have some value >> we think the big banks in particular, kelly. so for instance, jpmorgan, morgan stanley, goldman, bank of

america. we think those will be the ones in the united states to lead the way. it will be really difficult going forward with the nim being crushed with respect to the regional banks and they don't have the scale. and i think just because of the strength in the balance sheets, they're going to b and underbid these commercial loans. if you're looking at a 1.5% return and the mythical inflation we've been looking at for 38 years, i don't think is going to come anytime soon and the key thing that has to happen is we haven't had this big rotation out of bonds into stocks yet in 2019, more people were buying -- i'm sorry, more people bought bonds than stocks at the end of the day, we still have a massive rotation still sitting in money markets we've talked about this network, but also fixed income assets coming back to equities. and that's why high-quality u.s. equities will be home for the next five to ten years >> i see you jumping off the seat just talking about it points taken guys, thank you both

brian belski of bmo. tune into the closing bell for an exclusive interview with rafael bostonic. that will be at 3:00 p.m. eastern time we just got the fed minutes, so a lot of questions for him about negative rates or capping interest rates and the outcome for the economy and so much more coming up, oil is now on pace for its best month ever some of these names are up 40 to 60% in the case of halliburton we'll talk about what's behind this move in particular. and tensions with china have been heating up concerning the coronavirus. now the u.s. is escalating the battle, trying to de-list chinese companies. we'll look at what's at akste and what it will mean for investors. "the exchange" will be back after this

welcome back we have a market flash on facebook julia boorstin here with that news for us. julia? >> that's right, kelly mark zuckerberg right now talking about facebook's commitment to the business of workplace communications, saying that he projects that up to half of employees will end up working from home. he announced that workplace now has companies paying for more than 5 million monthly active users. that's 2 million more than back in october it's still just a fraction of the size of microsoft teams, that just reported 44 million daily active users and smaller than slack, which announced 12 million daily active users last year zuckerberg also announcing the

introduction of workplace rooms. that's a video calling space similar to zoom for up to 50 people, and an expansion of the consumer tool they announced last month also announcing oculus for business, which will enable compani companies' i.t. programs to program those oculus vr headsets also important as people work from home. zoom shares down over 2% on this >> whoo! yeah, again, this is a major entry into this space. and i'm reminded of how the online sort of shopping names reacted after the facebook shopify news the other day it was this other headline here that caught my eye not so much as what it says about facebook as what it says about the workplace, broadly speaking they say they expect eventually about half of their employees will work from home. that's a big number. it sounds like he means that half of them will work from home for good >> yes, no, i think that what zuckerberg is talking about, right now he's speaking on his facebook page, is the idea that

there's going to be a total shift in the way that people work people will be working from home who never thought they could be working from home before this is going to be the new normal i think these tools really trying to address that, while generating new revenue for facebook >> we appreciate it, julia boorstin let's turn to crude oil now, which has mounted a serious comeback it's up 80% this month and tracking for its best month since 1983 the u.s. gasoline etf is up nearly 70% in a month. and all of these big moves aren't spilling over to the energy giants. exxon and chevron seeing returns of only 9 and 12% over the past few months i'm joined by jim yoiuorio, a cc contributor. what are investors telling us about, hey, this rebound isn't going to do enough or get us interested in these energy

giants >> the 80% move has to be viewed in the lens of that a little over a month ago may debacle, where we traded down so that whole thing was about storage problems so the 80%, we've moved higher some of those have been alleviated there was a little bit ofa drawn cushion, which means to me that the market is being a little more creative to solve storage issues but at the end of the day, the most important thing to me is that we were then pricing in basically the end of the world economically, and the market's job is to overprice things in. it seemed to me that that was exaggerated. probably not by much so, yes, we've seen an 80% rally. i see 35/85, as being a very important point in the august contract i moved up to the august contract, because i don't want to have to worry about those storage issues like we did in may before but again, it's a good thing that we're rallying. the fact that the big integrateds aren't following too

has to be viewed in the fact that the futures contract was absolutely pummeled by issues that really didn't involve those big companies back then. >> so you would be a buyer of this space, or do you have to wait and test those price levels >> i think we're going to test -- 35/85, i think is okay we've come 75/80%. so to see a little bit of a pullback mirror that level seems very doable right now. but the story is getting hard to argue. things are reopening restaurants in illinois are reopening. those are big things and if we want to now see some real-life demand pick up >> all right, jim, thanks. getting right to it, as always appreciate it and i love the artwork. >> thank you very much >> jim yoiuorio coming up, as the world races to develop new vaccines, experts are starting to question the safety of moving so quickly. we'll look at the risks it's

posting. plus, working from home has become the norm for millions and it's a perfect situation for hackers. how much would it cost a company to secure all of these home offices? a lot. >> we're back in two thanks for sharing your savage moves, and especially your awkward ones. thanks for sharing your cute kids. and your adorable pets. now it's our turn to share... with the geico giveback. a 15% credit on car and motorcycle policies for both current and new customers. and because we're committed for the long haul, the credit lasts your full policy term. so thanks again. one good share deserves another. that's why working together ist more important than ever. so thanks again. at&t is committed to keeping you connected. so you can keep your patients cared for. your customers served. your students inspired. and your employees closer than ever.

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and i said, "look, we can do this." - [narrator] take advantage of some of the lowest online tuition rates in the nation. find your degree at snhu.edu. welcome back now to the very latest in the coronavirus pandemic over to sue herrera. sue? >> thank you very much, kelly. here's what we know at this hour, everyone italy's death toll and new coronavirus cases both slightly declined today from yesterday. the country's total death toll now stands at over 32,000. that is the third highest in the world after the united states and britain. some startling new disease modeling data from columbia university suggests tens of thousands of lives may have been saved had the country practiced lockdown measures just one week earlier. researchers say if lockdowns began on march 8th, 36,000 deaths would have been avoided

the research has not yet been peer reviewed. and new york's mayor bill de blasio said today that the city is on track to begin phase i of reopening in the first half of june, which would allow for curbside pickup, in-store drop-off at retail stores and the resumption of construction and manufacturing jobs you can always get more on states reopening by going to cnbc.com kelly, back to you >> all right, sue, thanks very mu much as the world races to develop vaccines for covid-19 at a record pace, there's still a lot we don't know about the virus and that combination of speed and uncertainty is raising safety concerns. meg terrell is here with more. meg? >> when it comes to vaccines, the safety bar is even higher. because, remember, these are medicines being given to healthy people to try to protect them against disease. and of course, in a pandemic, the scale on which the number of people are going to get these things is massive. the main safety issue that experts are talking about is one

known as immune enhancement. and right now experts tell us this is really a theoretical issue. it has not been observed in any of the vaccine candidates as of yet. what it means is that the vaccine could potentially make the disease more severe. and this is a phenomenon observed with the dengue virus, that if someone has encountered it once before, the next time they encounter it, it might be worse. it was also seen in rsv vaccine development and it set that field back for 30 years. we talked to dr. stoffels from johnson & johnson about how we can stop it. >> it is a ds enhancing problem, which a vaccine could have when it is not correctly developed. >> so it's obviously very scary and the way to avoid that, kelly, is to make sure you do giant clinical trials to assess

safety, even in short timelines. these companies are talking about tens of thousands of people being tested in the phase iiis, kelly. >> although, who would they test you know what i'm saying if we want to test everybody before we give it to anybody, that seems like a bit of a catch 22 >> that's the issue with clinical trials in general, but it's fascinating to talk to people about the structure of the clinical trials. they have to go to where the outbreaks are. and dr. gottlieb has talked about this doing cluster vaccinations, around people that you know who came into contact with somebody who is sick, that's how they proved the ebola vaccine works and it's a good way of showing efficacy fast >> and i see the little paw in the background, too, meg >> sleeping dog. >> our meg terrell coming up, tensions with china are flaring up with fingers being pointed on coronavirus, as some members of congress want to send a bill to china for the pandemic how bad could the escalation

get. plus, the nasdaq is just 5% from all-time highs. are valuations getting too rich? d est tter we'll debate that. ♪

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welcome back quick check on the markets, about half past the hour we've hasselved the losses. that's a 4/10 percent decline. the nasdaq is down a little more than two-thirds of a percent in terms of sectors, energy and utilities are the big laggards we're only talking about declines of about 1% industrials are the only sector in the green it's a really mixed bag oca-col

those are the names most weighing on the dow. another 2.4 million americans filed for jobless claims last week and that brings the total to over 38 million in the past nine weeks while we're facing historic job losses here at home, millions in china have also lost their jobs or income, and that's putting pressure on the chinese government to come up with new policies to boost growth eunice yuan joins me now live from beijing with more on that hi, eunice >> reporter: hi, kelly compared to the u.s., china looks like it's in better shape with the official unemployment rate at just under 6%, but some economist believe that the actual number could be not only double, but triple that number so we went to a nearby factory zone to see just how bad things really are factories in this industrial zone in beijing ship products out to the world not so much these days, because the coronavirus is dealing a

blow factory here employ hundreds of thousands of people. but some managers tell us only 40% of their workers are back due to weak global demand. fewer factory workers has meant fewer customers for this canteen owner. we earn less than a quarter of last year's sales, she says. prior to the pandemic, her place drew in a large lunchtime crowd, pulling in $100 a day. she had 12 employees no more. >> i can only afford to keep less than half the staff, she says other mom and pop stores here are struggling, too. cigarette shops, convenient mattress and restaurants not only are there fewer factory workers coming, but they say they don't want their workers to go out much to eat and shop because of the virus he lost his job two months ago the former waiter is looking for work it's more difficult to find a job, he says, and so hard to earn money now

true for china and the rest of the world. >> and ensuring employment will be a top priority at the national people's congress that opens in just a matter of hours. president xi jinping had chaired a meeting about it recently, and as you know, kelly, maintaining stability and jobs is very, very important and seen as related to each other here in china >> they've tried so much over the past several years to do so much spending, all the ghost towns, building thoings try to keep people employed, while then trying to pivot to more of a consumer-driven economy. what tact do you think they'll take now what's the easiest way to guarantee that people will be able to work >> well, that is a very good question i think one of the criticisms of the chinese government has been exactly what you had said, which is that a lot of the policies don't necessarily directly tackle the fact that china

doesn't have a very strong safety net but instead is more about infrastructure spending or trying to stabilize big companies in order to allow them to hold on to their workers. so there has been some discussion about more unemployment benefits or at least in some way, making it easier for people able to claim the unemployment portion of their benefits, but stills a big question mark as to exactly how far down that road the government is going to go. >> yeah. eunice, thanks it's great the see you appreciate you sticking around for us eunice yoon in beijing let's stick with china and talking about tensions between the two countries, ratcheting up over issues surrounding the pandemic and both sides are pointing the finger on who's to blame. not only that, but the senate just approved new legislation that could ultimately bar many u.s. companies from listing on u.s. exchanges what does it all mean for our trade deals and the markets, joining me now is patrick.

good to see you. so i guess, i wonder to what extent the public will blame the president or blame china >> everybody wants the public to blame somebody else. that's partly why coronavirus has accelerated the already existing tensions between the united states and china. and there are a lot of observers who say the relationship is at its lowest ebb since, well, at least 1989, the tiananmen crackdown. and some say even more, even worse than that, because there are so many different fronts of confrontation opening up >> yeah, so where do we go from here if i'm an investor and, for example, i've been investing in alibaba. is there a real chance they might have to delist, even for a while? or is that senate legislation part of just posturing back and

forth with china right now >> it's difficult to say how much of this is bark and how much is bite, you know obviously, there's a dynamic here where politicians in both countries want to deflect what they worry will be blame for the way that the coronavirus has played out and its economic impact on to the other country and that's heating up some of the risk but there are, like i said, long-standing issues between the united states and china, that there's been a shift in d.c. not just over the past few months, but over the past few years, towards a much-harder view of china and the challenges that it presents it's been a bipartisan one it's not just been led by president trump. >> absolutely. >> and there's also been a hardening on the other side in china where they view -- they have the view that there's much less to learn from the west and they are much more confident in confronting the united states. >> they've figured it all out and now they have the heft to

throw become our way i think it's interesting when i think about the dependence on corporate america on china, in terms of growth, manufacturing, and so forth you say and you write here that there's literally a view towards happening a shift in a view towards china not as a difficult partner or rival, but as an enemy. how should american companies feel about doing business with a company whose leadership we feel is an enemy of the united states >> it's going to be a real challenge. you had senator hawley get up in the senate yesterday and basically say that and a lot of companies are going to have to make choices. it's going to be different for different companies. you know, if you're in a technology space, you may have to decide whether you can do businesses with companies like huawei, either as a customer or a supplier if you are based in hong kong, the news has come out now that china is going to impose, you know, new laws on hong kong, which may call its status into

question and how the united states is going to respond to that is an open question there are other tensions relating to chinese companies that are listed in the united states, as you mentioned that has actually been an issue for many years, but it's kind of an off the front burner. and now these tensions have brought it back on the front burner and raised a question over to what that status will be >> and it's a potent -- >> if you read a prospectus of alibaba, you would be aware this issue was out there, but it's kind of been not a live issue for the past several years >> absolutely, but it's definitely a potent tool and that, since i'm not surprised it's being used right now, my final question to you, when we see these headlines out of china, talking about how they might retaliate against the u.s., depending on if we move forward with the delisting or other things right now, what is the most likely form of retaliation that they have and are willing to use, do you think? >>, you know, i think when it comes to delisting, there's going to be a movement and there was back when this was

an issue a couple of years ago, a movement to just delist chinese companies and list them back in china, which is now more plausible than it might have been in the past so chinese -- and, you know, in the end, that might be a solution, it might be a good thing. not every chinese company necessarily belongs on u.s. exchanges if there is an issue with them complying with u.s. securities laws. but the question will be, how disruptive will that process be? will it be a cooperative process, which i think it could be, or will it be more about politicians throwing bombs at each other, and then with investors being in the cross fire >> but anything you think we should be, you know, thinking about, if we do move forward with that move people throw around things like, they're going to sell our treasure -- they're not going to sell our treasury, but what do you think might be more likely >> buckle up it's unlikely that china is simply going to dump treasuries. i've argued in the past that

that is not really a plausible option for them. the united states has been threatening to selectively default on u.s. treasuries in order to claim reparations from china over coronavirus i don't think that's really going to happen. but, you know, there might be talk about that. and it might raise some questions in people's minds. so the big concern here is how much of this is rhetoric and positioning to a new relationship between china and the united states and how much of it is actually going to be translate into actions and things that create negative economic headwinds a at time when the global economy is really fragile >> exactly like you said -- >> and we already saw last year the trade tensions between the u.s. and chooip have a negative effect on the u.s. economy it wasn't anything compared to what we've seen with the coronavirus, but it did put a lot of business confidence on its back foot and manufacturing sector went into contraction

so if we see that come back again, if,for instance, the cease-fire, the u.s. trade deal between the united states and china falls apart and we go back to escalating tariffs, you know, that uncertainty comes back at a time when the u.s. economy and the chinese economy is a lot more fragile than it were. >> and the world economy patrick, thanks very much. patrick talking through how this might continue to play out today. coming up on "the exchange," san francisco giants square and twitter all saying they'll let employees permanently work from home we'll look at the consequences that could have for the city and how the working from home trend could cost companies millions in security all of that when "the exchange" comes right back

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permanent arrangement for many companies, the ripple effect of the new normal is far reaching eamon javers is looking at the cost of companies as they try to keep home systems safe from hackers. kate, let's start with you >> reporter: hey, kelly. we're seeing a wave of companies going remote and depending on how many tech giants follow suit, could have some big implications for silicon valley. facebook ceo mark zuckerberg just saying that his company would allow most employees to request a permanent change to work remotely. he expects, quote, a substantial shift towards remote work in the next decade. we also had shopify ceo saying just now that after next year, most employees will work remotely, as well. he says, quote, office centricity is over twitter and square were the first u.s. tech giants to announce permanent work from home according to a new study out today, a bulk of those tech workers are willing to pick up and leave the barrier. two out of three people or 66%

of respondents would consider relocating if given the option to work remotely the firm called blind surveyed more than 4,000 people nar and this week, visa, mastercard, and spotify were the latest companies to extend work-from-home orders through the end of this year a lot of buzz, kelly, around the possible fallout for real estate in san francisco leases here are often month to month, making it easier for folks to pick up and leave >> oh, i did not realize that. we'll see if it accelerates. i'm sure a lot of other communities would welcome the influx kate, thanks kate rooney in san francisco now let's get to eamon javers who has a story that it's not all roses working from home. a big problem for companies. >> reporter: you just heard kate talking about the fallout in terms of real estate the fallout in terms of security is also significant here for a lot of companies which basically in the space of about five days in march moved millions of workers out of the office and into a work-from-home environment. you can see, i'm standing in my living room right here doing

exactly the same thing part of the security problem for that is you've now got all of this company data that's now traveling over family routers for the internet that were never designed to have this kind of security problem they were dealing with you have a lot of company data now flowing over the same routers that your kids' wi-fi son, your kids' video games, your kids' social media. one security expert told me that is a witch's brew for security risk how much would that cost to fix if you would to legitimately secure all of those seats at home in terms of the corporate standard mike cupertino ran an estimate for me and it's wide ranging here, but he says somewhere between $247 and $1,755 per employee, depending on what their home internet set-up is like and exactly what improvements they may need but you're talking about potentially $1,000 a seat for

companies to secure all of that work-from-home technology and separate the kids' stuff out from the parent's stuff, the corporate data from the family data all of that very tricky to do. and especially at a time, kelly, when i'm told a lot of the corporate security guys were deputized during this rush to get, they were just helping to send laptops out to people and get wiring up and running and make sure that the wi-fi was functioning in everybody's home. they were doing i.t. jobs not security jobs just at a time when security was the most vulnerable >> and the other thing i wonder, going forward, would it be cheaper for companies to, you know, to spend on having people working from home than having them in the office i could see the argument being made in either direction >> yeah, look, the bottom line here is that work from home is not free and not everybody can do it. you're going to have to spend some money as a company to make sure that people have the security, that they have the tools that they need a lot of people are going need office space, desks, furniture,

all of that. if this is going to become semi-permanent, companies will need to spend some money behind this and that's money that they haven't really spent right now, because the assumption was that this was going to be a temporary situation. if that becomes permanent, you're looking at a big spend there. >> and in an odd way, maybe that's good for the economy. although i'm sure it will hurt margins and so forth eamon, thanks. it's a really important point. ae mont eamon javers with the corporate securitying an coming up, the dow jones internet etf is up 40% in two months what about valuations? have they gotten too high? one analyst says no and the f.a.a.n.g. names could rally another 25%. that's after this. and it's definitely not "close enough or nothing." mercedes-benz suvs were engineered with only one mission in mind. to be the best. in the category, in the industry, in the world.

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welcome back we're getting breaking news headlines from larry kudlow. he's saying it's possible the u.s. unemployment rate could be in the double digits in november he believes extending unemployment benefits would be a disincentusecentive for workerso 'lturn to work wel debate where tech goes from here. 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. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪

woi felt completely helpless.hed online. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555. take a look at the past two months for some of the biggest tech names

facebook, maicrosoft, amazon are hitting all time highs at what point do their very welluations start to get out of hand welcome to both of you dan, i'll begin with you you think these companies could double the returns they already made in the past couple of months talk about why those continue to be strong. ecommerce, social immediate, cloud and in this horrific covid-19 pandemic, the stronger are getting stronger i think you're seeing more investors focused on the secular growth names which is why i think we're still in the middle innings. we see these stocks up another 20 to 25% over the next six months >> steve would you also see that kind of upside >> probably a bit more cautious.

the secular trends are fantastic but a lot of these stocks have benefitted from the short term trends in terms of covid with always argue that momentum is more important. a lot of the small and mid size cap stocks are up 10 to 30%. >> it's an interesting point that if we accelerated two years of development, why haven't we accelerated two years worth of gains for these companies. >> you're seeing an accelerated growth cycle pulled forward 9 to

18 months in terms of what we're seeing with enterprise it's a more narrow rally i think it will pred to more clouds, cyber security as well as on the social media side. on the other side is dark valley the stronger getting stronger in terms of fang names. that's why i think you'll start to see some new paradigms in terms of valuation on some of the parts despite anti-trust worries which continues to be the lingering risk oiut there >> where are you on anti-trust amazon has gotten a lot of press lately could jeff bezos be the first trilli trillionaire how might you expect washington in the years ahead to respond to that if they can't break up these companies? >> it's going to be tricky

i think the general view among investors is that the pandemic is probably helped these large companies. for the most part they have been helping the government get through this we have seen with apple and google and android and ios i felt while regulation could cause problems, what gets you when you get to the top of the hill is disruptive technologies they're the leaders. it does suggest these large platform companies have another good three to five years ahead of them. >> dan, we talked about how you see the kind of upside for the next couple movanuouple of mont. if you have to start to think about what it looks like beyond that, does your view start to change and moderate? >> look, i think a lot of its really going to be cloud especially when you look a names like microsoft and amazon. i think those are seeing considerable strength. i think when you look overall at

anti-trust on the other side, it's going to get a lot hotter in the 202 area code for these companies. it's a lingering risk. most likely it's fines although there's many twists and turns this can take. fundamentally, take a step back. i can tell you talk about this whole pandemic, it comes down to the secular growth trends and the valuations rerating. that's what's happening here >> on hardware are you still cautious >> we are. it's an economically sense tiit area one of the places that's being hurt is computing. we're still over weight internet

we're under rate hardware. >> a lot to think about especially if this a rally keeps going. thank you both that does it for the exchange. thanks for tuning in i'll see you over on "power lunch. thank you very much. we'll see you right here at "power lunch" right here in a minute we're serving more of that wonderful banana bread today stocks are lower but all three major averages are on pace for their biggest weekly gains in a month half all three have been up four of the past five days facebook, one of the big contributors the stocks soaring now to all time highs extending its reach further into shopping now into workplace communications we will go inside the rally. all that plus the ceo of royal caribbean. will cruise lines ever be the same what's cruising going to be