veterans, as well. and you and your families please have a good, long weekend. have a look at the major averages the nasdaq is modestly in the green. barely the dow, s&p and russell all negative that does it for us. have a good weekend. see you on the other side. kell kelly evans picks it up. >> thank you, scott. welcome, everybody we have milestones to consider stocks in doinger of giving up the may gains today. the dow a fraction away from turning negative on the month. the dow down 97. it by far the underperformer of the group. the s&p is down just a tenth of a percent and the nasdaq turned positive by about ten points it's a relatively strong start to the week and we're still on pace for the best in six let's dig in to today's moves with robert pisani

bob? >> kelly, you're right for the month but for the week it's been pretty good. the s&p up almost 3% we are on the flattish side today. there's a tug of war between two different issues, china, positive comments by mr. fauci on the update of moderna and a tug and war and i want to point out we have had nice breakouts from banks, from industrials, from some of the retailers, broadening of the market which is my main theme today on the flatter side. just on china, remember, this is a thing, trade with china issue issues with china, moving the markets, imposing new national security laws potentially in hong kong. down 5% over there abandoning the annual growth target and see the china stocks down alibaba with the earnings revenue guidance on the weak side but that's down also the effect of the china on energy with oil down about 3%. all the energy stocks giving up

a good part of their gains for the week all on the weak side finally just with an n't to close to note the ipos coming in here we had a good one yesterday with select quote inari medical, $19 was the price talk huge open just about an hour ago over on the nasdaq and i'm waiting for more to come in the next few weeks including maybe albertson's. back to you. >> i look forward to it. the led zeppelin poster is just slightly askew and will bug me. >> i'll fix it i change them every two days and sometimes they - >> i do know i think people watch the show to see what's behind you on any given day. >> i will change it. that's a very famous poster. i'll change it and make sure

it's right. >> please address that. >> thank you. >> we appreciate it. see you soon. let's get to an important developing story out of hong kong protests erupting after china's government proposed a new security law aimed to bring hong kong under full chinese control. for the very latest eunice yoon is up for us in beijing. how are things looking >> reporter: not very good, activist joshua wong accusing b beijing of silencing dissent in the city the chinese leadership today had proposed this new legislation at the national people's congress which is ongoing here in beijing. now, the chinese officials described hong kong as a defenseless city in need of this type of protection under these new laws the -- they would target cessation, terrorism, foreign interference and allow beijing back

intelligence agencies to set up in the city and overall would, quote, improve the one country two system style of governance allowing honk congress to operate relatively freely from mainland china as hong kong returned to china control after the uk they can circumvent the authorities to impose the new law and go into effect in about a week's time from now so this is at the end of the national people's congress. now, the secretary of state mike pompeo issued a statement calling the proposal the death knell for hong kong's autonomy and urging beijing to reconsider a special status it has with the u.s. that in theory could be revoked by the u.s. if it doesn't feel as though hong kong is truly autonomous now, the hong kong lawmakers

have been quite concerned about what they were seeing. some of them describing this as a turning point for hong crokono end of hong kong as we know it and concerned of undermining civil liberties and you could see that playing itself out in the stock market today, down by 5% also very hard hit were real estate stocks and i think that just goes to show how concerned people are about the residents there as well as money leaving the city. >> i was curious the response would look like. is it muted so far i wonder if the protests were so strong when they felt like they had a chance and i wonder if the move by china suggests it is over. >> reporter: no. i don't think it's actually muted at all it is still right now, you know, just the first day of it all but

the activists community has been very motivated about what's going on there is also a lot of frustration after the hong kong authorities had extended social distancing and pandemic restrictions for public gatherings to june 4th which, of course, as you know is a very important anniversary of the crackdown of teen mean square and they usually just mark, commemorate that time but there was quite a bit of frustration when those pandemic restrictions were extended and so i think that right now we're at a point that a lot of people in hong kong as well as here are concerned about where all of this is going to head for hong kong. >> yes absolutely people here, too

eunice thank you. being tough on china is one thing that both parties seem to agree on right now former joe biden and democratic democratic candidate we assume calling on the u.s. to take a stand. take a listen. >> i'd be at the u.n. with my u.n. ambassador and insisting and calling out with the united states has always done, overwhelming violation not only of an agreement but of human rights silence on our part has been devastating for people around the world. all it does is encourage thugs and dictators. >> pretty strong language. where do things go from here joining me to talk about that is derrick scissors and bill bishop really great to have you both here bill, i'll start with you on what's happening or not happening on the ground in hong kong and do you anticipate the

protests to each another fever pitch or is there a sense that it's becoming futile >> great question. i'm not in hong kong so i can't say with any certainty i think though that this move by beijing is really the death knell for hong kong as we know it and expect a lot of protesters, folks protesting before the pandemic hit and the restrictions came into place will want to take to the streets again if they're able to because what else do they have to lose at this point in. >> derrick, i guess that's the question and a lot of investors thinking about the future of hong kong, whether it loses the special status, the hong kong dollar and futures markets is hoeing a l showing a lot of weakness. if people pull out then how existential of a threat is that for china and why should the american public care >> two important questions

i think it is agreeing with bill an existential threat for hong kong the question is whether it's quick or slow. with the national people's congress approves the proposal and almost always does approve the proposals you can have ministry of state security investigators pulling hong kong residents out of their homes in ten days that is not an exaggeration. when the safety of protesters is in question, when hong kong is just another place of no rule of law you get investors saying why should i locate here i'll do the business through shanghai or less business with china. as to why americans should care, a lot of reasons we should be standing up for human rights senator mcconnell is a long defender of hong kong and has to care about this latest proposal and i don't mean to be too alarmist but this is true, this is a step by china to say to taiwan, you know, that whole one

country two systems offer we were making you is not real and won't protect the civil liberties and you uniany case of china and taiwan is more likely to be violent than it was two days ago and that is something all americans should care about. >> china has even dropped the peaceful language in reference to the situation of taiwan whose leadership is just elected so i can think there's implications for investors often, derek, they say buy the defense stocks look to us having to bolster taiwan's defense this is about so much more than that you raise the issue of human rights there are many -- look at syria, look at russia many other countries where there are civil rights abuses we don't always stand up for and should it be up to us or a lod by like the u.n. to step in here >> well, i think the u.n.'s not

going to do anything of any value. there's a bigger challenge the senate, the congress passed a bill in november trying to protect hong con akong and it'sn ignored. it calls for a u.s. action now i certainly agree that there are broader implications than just this is a good time to buy defense stocks as you know very well, there's a lot of broad tension in the u.s./china relationship. it is holding on by in my opinion by the virtue of the phase one deal this is more pressure to get president trump to say this deal isn't worth it anymore and if he were to do that you could have a wide variety of action against china. >> i want to come back to that but, bill, also like to talk through the measures going on here there's a bill for the forced delisting of chinese stocks and could have some traction it was proposed i believe by the republican senate and the

democratic house looks like it would back it. china has hinted at retaliation if stuff like that moves forward. whether it is that bill, revoking hong kong special status, what steps do you expect they might take if we go down those paths? >> well, first on that bill, it is absurd for china to threaten retaliation. all that bill is doing is asking chinese companies to play by the rules everyone else plays by and perfectly reasonable bill that's been an issue that's been out for years and previous leadership didn't want to take china on so china really has nothing constructive or credible to criticize over that bill. in terms of what steps they may take, they threatened last year to launch an unreliable entity list to list companies and individuals unreliable or did things to hurt china they -- some of the mouthpieces have been threatening that again and, you know, i think they're

kind of stuck because if they push -- go too hard against a u.s. business person or u.s. corporation in china, you know, that's going to really hurt wha they see as an imperative to make the country to suck in more foreign company and keep the company there is to stave off the decoupling and get as much money in the economy as they can and what kind of measures to take that are quite painful? you know, as derek was saying if they think -- if sort of a last threads of the relationship have fallen apart and there is the bottom fallen out then you could see nasty moves against the companies but until then going after a big u.s. company like apple l would probably hurt china as much as apple. >> such a great point. it makes me think i don't know why it rises to belligerence but

what does china think they have to gain? >> the hong kong protests went on for a long time and no mirror protests in china. this is just an embarrassment to xi jinping and significantly but what we're hearing from the chinese is we don't need a threat to the party in order to go back on our word, to go back on agreements signed by previous party secretaries endorsed previously this is political dissent intolerable in china and that is worth risking u.s. trade relationships and global condemnation and of course harm to the people of hong kong so xi jinping wants a message. you can't embarrass me forget threat to party rule. there suspect one. no disseptember is tellerible and worth the cost and projecting a very tough image. >> thank you both today. bill, did you want to quickly say something? >> to derek, the point is

excellent and xi's office saying what can you do about it i can act with impunity. no response from the u.s. and the eu, he is right. >> yeah, yeah. exactly. it echos the silence and goes back to what joe biden was saying bill, derek, thank you for your analysis today talking through the hong kong china situation and the stock market down sharply overnight is. let's get to u.s. housing numbers. diana olick is here with the latest diana? >> reporter: as of this week, 4.75 million homeowners in government or private sector mortgage forbearance program that's 9% of all mortgages outstanding. while the number of new borrowers opting to defer the payments slowed black knight found a surprising twist of the homeowners in forbearance end of april nearly half of them

actually paid their mortgages anyway but as of may 19th less than a quarter made their may payments this means delinquency rates which made a historic jump in april will be even worse in may. some borrowers may have used it as a safety net but it goes along with a new survey by lending tree that found just 5% of those approved for mortgage forbearance said they would not have been able to pay their mortgages without it about 1 in 4 said they could have paid the mortgages and would have needed to skip other bills but nearly 70% said they got forbearance to ensure sometime off from their normal payments kelly? >> still trying to figure out how that will work out in the longer run still, diana, we appreciate it going to take a short break. there's one part of the market outperforming all three major averages and over other sector what it is and if you should

play it. retailers are running to reopen and turns out consumers are somewhat eager to get back into the stocks. e ich stocks stand to benefit thmost stay with us on "the exchange.

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what is it tells us? i'm joined by brad mcmillan and david lefkowitz. david, let me just start with you. usually, right, this is like a high beta, more value oriented segment of the market tends -- cyclical, outperformance in some kind of rebound times, what do you make of the comeback of the russell 2000 this week >> exactly smaller companies are more cycl cyclical and what's interesting is if you look at the performance of earnings for smaller companies, they have really underperformed earnings for a large cap and i think the underperformance makes sense but as this economy gets back on the feet and see the economy begin to broaden and gain traction i think smaller companies are poised for some catch up hoar. we just upgraded mid caps

yesterday and we think there's an interesting risk/reward there. >> brad, if the small caps outperforming does it continue does it imply the underperformance of the nasdaq >> i think it does continue and possible for both small caps and nasdaq to do well at the same time small caps typically smaller companies, smaller markets, more locally dependent, the better they do the better the u.s. looks like it will do. >> right so would you be betting on that to continue and would you get tactical about it? company by company, sector by sector owning the russell 2000 versus the others >> i think you want to be in the small caps because i think when you look at -- when you look at the economy reopening right now everything's going well and seems to be some momentum there so what do you do?

consumer discretion anywhere within that makes sense. homebuilders are an interesting place because we just saw mortgage applications go back almost to the level of 2016. even as supply is cratered so there's a real interesting opportunity there for some of the smaller companies to step up and do pretty well. >> all right david, where would you be looking for outperformance >> yeah. i think you want to be very tactical the think xeconomy's going to b opening up in fits and starts and not every part of the economy is going to get back to normal until we have a vaccine so you want to be very tactical and very selective in terms of overall sectors, we still think health care is a good place to be in the large cap space. we don't have specific recommendations in small and mid and communication services but i want to reiterate i think that getting into smaller companies

in general, mid caps is our preferred way to do it. >> again, this could be a hopeful sign for the rest of the economy. and the rest of the smaller businesses thank you both talking through these marks as we try to finish out a strong week and keep the gains for the month. would you volunteer to get infected with coronavirus if it sped up vaccine trials that's an idea discussed and debated right now. that story is next. plus, the first big virus content deal was announced after a bidding for a home grown show. watch or listen to us live on the go on the cc p.nbap "the exchange" is back in a couple that's why we're expanding your range of choices. many dealers now offer optional pick-up & delivery and at-home maintenance, as well as online shopping with home delivery and special finance arrangements. so, whether you visit your local dealer or prefer the comfort of home you can count on the very highest level of service.

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welcome back to the very latest in the coronavirus pandemic, over to sue herera for the headlines. >> hello, kelly and everyone new york governor cuomo says if positive trends continue in the long island and the mid hudson

regions and if those areas get their contact tracing online they could reopen next week. for more on individual state cases and they vary a lot, head to cnbc.com. the u.s. department of health and human services says it will distribute nearly $5 billion in nursing home facilities to help those facilities curb the spread of the virus. and the united kingdom says starting june 8th it will require all overseas travelers to self isolate for 14 days. though some airlines including ryanair warning that measure will devastate their industry. you are up to date see you next hour. back to you. >> thank you very much. in the race to develop a vaccine some experts making the case for infecting healthy volunteers with the live virus but there are serious drawbacks to that approach meg tirrell joins me now with more meg? >> hey, kelly. it is unsurprisingly a

controversial idea this idea of infecting people with the live virus in order to speed up efficacy trials of vaccines that is the pro side saying this could speed up trials potentially several months they also say this would give them an opportunity to test the potential vaccines for efficacy even in a scenario where the outbreak has died off because that can sometimes happen with epidemics. they say they would be testing this in young, healthy volunteers whether there is low risk of bad side effects but on the con side are those potential side effects or death. it is a deadly virus to some the other cons, of course, there's no rescue drug remdesivir not being a silver bullet and the results of young healthy volunteers may not translate to results for older, more vulnerable populations so it is not a perfect idea but it

is one considered at some of the highest levels more than 30 members of congress wrote a ledder to fda and hhs comparing the situation we are in right now to war where they say there is a long tradition of volunteers risking their health and lives on dangerous missions for which they understand the risks and are willing to do so to help save the lives of others and encouraging the bodies to consider whether these trials might make sense you might think nobody would want to sign upfor this but there's a group called one day sooner saying they heard from more than 24,000 people who volunteered for the potential challenge trials. >> wow we'll see if they go that route and you spoke with dr. fauci and asked him about the controversial moderna vaccine trial. what did he have to say about that >> yeah. you know, everybody wanted the hear from dr. fauci because they're partnered with moderna on the trial and didn't hear

much from him today. here's what he told us. >> not only is it the right antibody, but the tighter of the antibody induced was good with the standpoint of predict to be protective so even though it's a small number of individuals and the first step in a multi-step process, it was still very encouraging. we still have a long way to go, obviously. >> scientific lang badge but high enough levels potentially of the antibodies to make sure that they have protection from this vaccine if that pans out in the rest of the klein call trials, kelly. >> thank you very much appreciate you bringing that to us coming up, the sports world is looking to reopen but with the host of new rules and procedures a play by play of how and when to come back to life. and eye popping stats of the

state of employment in the u.s we have the numbers for you next

welcome back to "the exchange." nasdaq is up right now dow down 82. let's check that in the big movers with dom chu. dom? >> you have the marginal losses and gains. the dow down about 120 at the lows 180 at this stage. s&p lower by 115 it's the real estate, utilities and communication services sectors that you can see leading the charge you have got the biggest laggards, industrials, financials and stocks and keep

an eye on those. a few individual items today you have shares of foot locker, worst performer in the russell 1000 and suspended the dividend payments to help conserve cash and splunk surging the company reported mixed results and said it expects more demand for the cloud services and ending on pool corp., kelly, keeping an eye on. fractionally lower on the day after hitting the record high earlier. the distributor of pool chemicals and supplies a beneficiary of the pandemic as people spend time at home in the pools and have a new pool constructed. i'll send it back to you. >> i listen to the talk and i'm telling you everyone are talking -- >> neither am i. i can imagine a lot of people spend time there. >> can't go to the public pool or the beach we'll do it our way. thank you, sir. >> you got it. >> i have neighbors who invite

me to theirs. we have staggering new figures of the labor department with a look at state of unemployment in the u.s., literally state by state today grim data. unemployment rates rose and total employment fell in all 50 states, 43 states the highest unemployment rates in record and highest in nevada at 28.2% michigan and hawaii next keep in mind you have casino industries, tourism, auto industries kind of explains some of those major, major moves lowest unemployment rate in connecticut. maybe you can imagine a lot of that population still working from home maybe doing city jobs but on the laptops california, new york and texas saw the most job losses. well, we are not only working from home these days but creating tv around it. viacom, cbs buying some good

good news. is it the start of a new content wave we'll debate that.

welcome back reality tv in the '90s unscripted, cheaper to produce, more authentic or something? during the pandemic homemade and shot from home content is getting the 15 minutes of fame julia boorstin is here with a hollywood star cashing in on the new craze. julia? >> that's right. the star is john krasinski with a deal of "some good news," the homemade show broadcasting on youtube for eight weeks. this subscription service will be the first to air the show which will be produced by john and have a different host. sources tell me that a flood of offers came in from digital and traditional content platforms, the appeal of the concept even without him hosting speaks to

the growing value of content to be made quickly with a low budget and how ever streamer and network facing delays with production stoppages apple tv bought the rights to a podcast turning into a limited series starring paul rud and will ferrell and investing in more original podcasts to be turned into tv series. back over to you. >> i'm surprised this landed with cbs all access. i thought maybe a better fit or apple tv or something like that. does that speak to how much they're willing to pay how many subscribers are on the platform these days? >> i think one main reason i would say likely with viacom cbs is because there's an existing relationship with that media giant. you have his movie "the quiet place. there's a sequel that's being released that's through that paramount and then you have the fact that he stars in the jack ryan show which airs on amazon but it

actually is produced by paramount and viacom production facility and a big star, he has a relationship with a company already and this is another way that they're broadening and expanding the relationship with him. >> you wonder why they had to pay him for it in that case. could have said, great, we'll take the show. i want to talk to the media reporter ed lee, and is there more demand for this content or do you think once the pandemic is over people will want to go back too the slickly produced type of scripted series they watched more of in the past? >> i think there's always to be desire for the professionalized content and whether it's going to be sports or big productions like a "game of thrones" at the same time and what we are seeing here is that you know what we are finding new forms of content based on the lockdown

that people like -- they like sort of a rawness of what he's done here. i think it's intimate and familiar and yes that looks like my home and i think that there's a definite appeal there. there will be a place for it going forward. this deal is a bit of a head scratcher for me though, i have to say i think part of why people are tuning in is again there's nothing else and it's an ease of access it is there on the internet. once you gate it behind a sub jip subscription you lose a lot of that audience. >> he's not going to be the host of it. >> right. >> replacing him with someone else why do people think we need good news there's a lot of good news on tv i don't know where this concept is coming from. >> tune in to cnbc come on, right >> and the drumbeat. >> it's counter programming.

it's brilliant and speaks to a krask kraskinski's permit and it's just authentic and i think that's the best of the internet. youtube sort of founded on an idea of authenticity and it's huge and it's big and has a huge audience and fractured so i think he was smart in terms of using the format in the right way in the right venue but when it comes to sort of more professionalized content the bar is higher. the's always room for good news and more to be had and more of a format and a timing thing i think. >> we have big fans who -- my producers and others watching the show and brings the kids into it. julia, john krasinski has huge

appeal. >> they could replace him with a comedian with a following and seeing with the stars broadcasting from their home is whether it's john legend doing concert on instagram or miley cyrus broadcasting a talk show from her house, they wanted to get out there. they wanted to do something to connect with the fans. this was a great opportunity for krasinski not only to entertain himself but to build and secure the fan base and i think what will happen going forward is people will still want that feeling of intimacy and connection with the stars and also going to want to see the big budget stuff that's escapist and different and talking about the big budget shows which are on hbo but i think that they will expect more in terms of connectivity and sense of i want macy that ed mentioned when we get out of this. >> it might be a one off with just him and the case remains to be determined.

thank you both today ed lee and julia boorstin. up next, the sports world getting ready for actual action this week. from phil and tiger to nascar to ramped up talk about the nba and major league baseball, some details on how the pros and colleges starting to plan to get back on course, on the track and on the fields. ne "the exchange" is back in two.

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we've always believed in the power of working together. that's why, when every connection counts... you can count on us. welcome back sports fans rejoice. not only is there a big celebrity golf match this weekend but movement to the return of several other major sports eric chemi is here with more.

>> that's right. there's a golf matchup of tiger woods, phil mickelson, peyton manning and tom brady, featured across many of at&t's turner media platforms, the company's bleacher report division is focusing on gambling related content surrounding the event because as more sports come back the hope is that people will of course want to watch and bet on those games. across the sports landscape we have already seen the return of nascar this past week and the pga begins in three weeks with a very lengthy set of health precautions and certainly no fans present the nba is working toward its own comeback plan that may see teams group together in some sort of bubble environment current reports have practices starting in june with games beginning in july. major league baseball is trying to work through the list of health and financial issues but a lot of star players voiced their concern about taking a lot

less money to play in less than ideal conditions for baseball. kelly? >> so many questions whatever a bubble environment means for the nba, eric, but also the distinction why in baseball they're dragging the heels and revenue from people in the stadium and with basketball may be happy to try to get the season going. >> the basketball, bubble environment to figure out, how do you keep the players and team officials and keep them on site without them going off because if one guy is sick he could get the entire team sick and then if he doesn't play, what if lebron james isn't playing for the lakers that's tricky to watch the at gate for baseball, we're going to lose a lot of money paying full salaries to players and without fans in the stadium and the players are like i don't think so so that's why they have more of a money fight than the nba right now. >> interesting in college we just got the

headline from the s.e.c. conference where they're saying they'll permit voluntary in-person athletics on campuses at the discretion of each university beginning june 8th. i assume it's primarily for football practices. >> they allow voluntary practices for basketball and football because that's the money sports but whatever colleges went to allow it. will there be a season played? estimated $4 billion in revenue at stake in the top 65 football programs including the s.e.c. ho sta ohio state, working on concepts of fans in the stands but at less than capacity and one team trying to figure out the s.e.c ncaa will allow this but in s.e.c. with football, the

voluntary practices are anything but voluntary, kelly. >> on the $4 billion mentioned that's kind of at stake here over the football season is that tv revenue they just play the games and fine and does that have to kind of take into account whether anybody's in the stands? >> that 4 billion is total revenue for the main five conferences so maybe a billion of the four is probably from people actually showing up to the games whether that's the tailgating and the tickets and that and certainly a mixture athletic fees of students, donations, media contracts and the tickets themselves. >> all right so i guess some golf on tap this weekend. >> start with the golf. >> i hear that peyton is very funny. that's what they say very funny eric, see you later. as stores begin to reopen some are seeing more demand than they thought will it lead to more stock gains? who will take the lead we'll ask right after this. as we head to a quick break,

taking a quek look at the dow 30 heat map as the dow remanes in the red for the day and about nine stocks are bucking the trend moving to the upside for the most part two to three decliners outpacing decliners. decliners outpacing decliners. we're back in a couple but cdw will assist your needs and implement a dell emc unity xt all-flash unified storage platform. it delivers speed and effici.cy, while providing simplicity and flexibility. for unified storage platforms, you need dell technologies, and it orchestration by cdw.

welcome back as retail stores begin to reopen across the country, the way people shop is changing dramatically we got an inside look at one of the first macy's to reopen in at lan tap a and the museasures the put in place

>> reporter: one of america's oldest department stores will have to create a new way to shop >> is this going to feel different for customers? >> absolutely. >> reporter: in addition to masks and social distancing measures, new procedures for dressing rooms >> i can come in and try on a dress but it's not going back on the rack >> that's right. we'll hold it off the floor. everything that goes into fit ling, room, we hold it and put it out at a later date. >> reporter: same with returns >> in april, retail sales across the board dropped by more than 16%. macy's had to furlough many of its 130,000 employees. now the chain is doing everything it can to bring shoppers back. >> reporter: some of the biggest changes. at the make up counter >> i'm looking for a foundation. can't try it on, how to we make sure it's the right shade. >> i can give you two shades that i think will be right for you. i would demonstrate to show where to put your eye liner on your eyes.

>> the same thing you would do on my face. >> on the pad and you get to take it home also. >> reporter: macy's and other traditional retailers were struggling before coronavirus. they were planning to close 125 stores over the next three years. >> how do you convince shoppers to actually come back inside of a brick and mortar store especially now >> i think coming back into our stores is also source of entertainment but convenience. hour customers still still want to look and see the product available. >> reporter: today macy's has 180 stores up and running with all expectations open by the summer >> ifascinating. some retailers that have opened

doors are seeing more positive outcoming. courtney reagan is here along with matt boss where does macy's fall >> as a whole, retail is coming back strong. stronger than any sector anticipated. tjx are opening doors at over 100% productivity. there's pent up demand out there and there's stimulus there's also the sense of

getting back out and reinvigorating at brick and mortar we're in the seeing a slow down so far there's going to be changes in the department stores. before the pandemic, the department stores, different parts of brick and mortar were under consolidation. we thought it have probably a 5 to 7 year material shake out, particularly mall based brick and mortar that's also accelerated and probably now maybe two to three year type of a consolidation you're going to see a bifercation that accelerates out of this. off prices, bhengsed and

discounters could emerge stronger as value and convenience are really king. >> it's fascinating to see lululemon is up 20% this year. this stock just kept performing. the demand has been stronger than anticipated >> i think that's a good point with lululemon the winners we saw before are continuing to win. the losers are going to continue to lose. the stores that were starting to roll out these pick up services saw them really pick up much more so than they anticipated. everything got pushed forward, got juiced up from what we had seen before. is it a new normal going forward? we're not sure

if people go out shopping to keep their kids at home or have to prevent the mask wearing for a little kid, what does that mean does that mean you buy more or less in. >> more. there's all sorts of a new normal we have to figure out >> absolutely. >> if you're are retarial and there's an out break, are you worried about being held liable, accountable for that.

>> i think a key point has been the overall budget for consumer goods, apparel, footwear is unchanged. the biggest change is how and where are the consumers going to get the goods. stronger brapnds. we're seeing that mind share right now and you're seeing the same thing at the brick and mortar side with the burlingtons, the tjmax's and ross stores. these were the winners before the pandemic i think they're positioned to take additional market share coming out >> thank you both for your thoughts today

we appreciate it exploring what's going on with retail as we reopen. that does it for the exchange today. thank you for tuning i'll join tyler mathison for "power lunch." yes you will we'll see you in a moment. i'm in the kitchen "power lunch" starts right now welcome. stocks are lower to end this week that is despite rising tensions with china putting chip stocks right in the middle of the cross hairs. top analysts will break down the names with the most risk and the least. dr. anthony fauci saying he is optimistic about mod everyonea's progress on a vaccine after what's been a wild ride for the stock this week. there you see it on the chart. up 2% today. we have a special report on the state of v