play i like the rotation. >> still like gm, huh? all right. kevin o'leary? >> shop ify, shopify, shopify. >> all right i appreciate you guys. thank you for being here and watchling. check out where the markets are right now. take a look at where we're trading if we could put up the major averages kelly picks up the picture now thank you, scott welcome, everybody despite the unrest across america the reopening, the seeming disconnect of priceses and the real economy plus retail's road to recovery stalled. could this lead to more bankruptcies facebook is facing backlash over the content policies will all this pressure make mark zuckerberg change the tune will more advertisers vanish

but first, we pop over to dom chu with a look at today's markets. >> our socially acceptably distant 12 feet from each other, kelly. we have a mixed picture. dow industrials posting a solid gain 152 points there the s&p up 8 points. and just marginal declines for the nasdaq off the session lows there. an industry and sector group in focus is energy. oil price is a huge story in the first half of the year but for this particular etf, xle, a roughly 39% gain justso far this quarter today putting on pace for its best quarter ever since inception and then look at a stock in particular. zoom communication zoom video that big ipo from last year, remember, $36 a share is now up 154% in a year and reports earnings after the closing bell and just so you know, the options market right now is currently pricing in what could

be a 10% move in the stock higher or lower, it could be a volatile day after the closing bell. >> dom, not confusing but we have zoom info going public this week and then zoom technologies and three zooms now. >> it is like the block chain of this year, right >> trying to be. thank you very much. see you later. just as businesses were beginning to reopen following the pandemic, many forced to shut down due to the riots steve liesman has a look at the impact on the broader road to recovery. >> thank you, kelly. it's a serious challenge to the nation and to the economy, as well the data show the high frequency data we have been following show that there's been some success on the road back and some recovery looking at the apple mobility data, indexed to february, you see that we have been coming back both on a driving standpoint and walking this is looking at searches for directions for driving and walking but not necessarily in

trend. some seasonal adjustment problems and people probably doing that as the weather improved and not really seeing the rebound at all when it comes to the public transport. now, looking more at you don't ask for directions to go to work or school so what about rush hour traffic tom-tom tells us that. it's a difference from normal epa higher number is worse and averaging 20 major cities and not seeing much rebound at lunch hour in terms of traffic congestion to this point there is something of an evidence of the demonstrations showing up in the data here. here's minneapolis search for walking directions. and you can see that spike that just happened over the weekend that could be related to the demonstrations the open table data had come back steadily. still awful. this is the percent of normal and come back to awful and had improved in just the last couple

of days and ticked down and a potential challenge to the recovery concern of people going out again and also again that issue of a second wave of a virus that may come from these gatherings and protests. >> steve, if it is not from the protests, if it's parts of the country spared what else would account for the shift in momentum for the reopening >> yeah. you want to be careful nobody has ever used this data to the extent it's being used now to see what's going on in the economy so there could be all kinds of stuff if you notice what we did with the first graphic, we took a seven-day average to smooth it out. it is all over the place people do stuff differently on friday or saturday and sunday and watching this to see if that open table goes back down and look at the local data it could well be explained by that and want to be careful not saying that the recovery is off because of this but challenged. >> you know investors are watching it super closely.

steve, thank you. the slowdown of the reopenings is a potential head wind of the market add china and second wave of covid-19 but we continue to climb. the nasdaq which is barely lower right now is 3% from the all-time highs, 3% away from the record highs is there a disconnect in the market or are investors looking past this maybe at a year out? let's bring in ryan dietrich and elanda hernan do ryan, you are the stat man what is forefront of your mind today? >> thank you for having me back. it is the truth. the economy and the market are so different look what happened last month. we had 340,000 tests per day in the united states, nearly double the testing per day in month of april. look how many positive yesterday of covid-19. only 4% of the tests, all over 400,000 tests yesterday, 4%

positive the bottom line, the stock market is a forward-looking mechanism. it is saying there could be better times ahead and covid-19 we are not seeing the major spikes here and more testing, yes, those concerns are real and what's happening in the communities is real but the stock market saying there could be better times ahead on the economy and that's why like you said the nasdaq all-time highs and the s&p down 5% for the year. >> i understand kind of a connection between the market and the real economy if you remember that we plunged 40% in a couple of weeks going into this comeback we have never had a stat that bad since the great depression basically. so yeah, a rebound from one of the worst stock market crashes over a couple of weeks but kind of makes sense, don't you think? >> yeah. quoting the words of graham in the short run the market is a voting machine and long run it's a wave machine

the market is looking forward. in march we did have that huge plunge that you mentioned and that cleaned out and squared out a lot of positioning and a much better alignment in terms of positioning, marginally better news and unprecedented central bank stimulus to propel the markets higher we have to mention that there has been a shift on investor interest and perception of the structural issues highlighted by the pandemic looking at the s&p, only down 4% to 5% on the year, 25% of it is technology while if you look at small cap index, russell 2000, it is down still around 14% this year so i think they're key differences that we need to make sure that everybody is really deep diving into and i think investors will have to be focused on them to capitalize on the solution of these and other issues that are becoming aware

for the market. >> i think it's a tricky decision to figure out -- not that we can ever figure it out but what's the path for the market six to 12 to 18 months. can we stand a trajectory like this seems unlikely are we going back down you know do we just kind of churn around here what's the rebound going to look like one hand you have those that say the rebound could be pretty strong the fed did a lot to support it and then those focused on the corporate overhang. >> yeah. with the 35% balance, look at the put to call rations with the option market and people are excited here that makes sense then the fact of june. this is just a seasonality stat but at 2000 june is worst month of the year for stats. this could make sense for summertime consolidation and tend to see in election year and another stat that's fascinating is earnings this month dropped 28% for the s&p 500.

25 years worth of data never seen earnings drop that much best is 2009 obviously that was an end of the world it felt like scenario. stock market doesn't care where the bar is but low and earnings cut that much, the most ever, that's a low bar and another reason to think that if we avoid the asteroid and we think we will, the bar is so low it could be a bullish upward trend before the year is over. >> finally, a look at the asset classes that you like, i see gold, fed backed asset classes, everybody is buying into those what about inflation linked bonds and many say there's no inflation other than the cost pressures, temporary cost pressures on the horizon why do you think investors should be exposed to inflation linked bonds >> the most important thing navigating something so uncertain like you have mentioned is so many risks still

on the path forward. right? not only the uncertainty on the recovery shape but also what are tensions between china and u.s. going to look like the potential of having unemployment up to 20% on that lasting longer inequality et cetera. i think all investors should prepare and have a diversified portfolio to function in different scenarios. inflation link bonds added to the portfolios in the drawdown in march just to get portfolio prepared for when the demand ticks up >> got it. okay thanks so much >> thank you. >> we appreciate it this afternoon. going to take a quick break. one of the most iconic retail locations suffering from break-ins and looting last night. we have a live report from the store ahead. we're going to speak with a former retail ceo and an industry veteran about the path

forward in the wake of the pandemic and the unrest. stay with us "the exchange" is back in two. what'd we decide on the flyers again? uh, "fifteen minutes could save you 15% or more on car insurance." i think we're gonna swap over to "over seventy-five years of savings and service." what, we're just gonna swap over? yep. pump the breaks on this, swap it over to that. pump the breaks, and, uh, swap over? that's right. instead of all this that i've already-? yeah. what are we gonna do with these? keep it at your desk, and save it for next time. geico. over 75 years of savings and service. we're committed to making college more affordable., that's why we're keeping our tuition the same through the year 2021.

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now that's simple, easy, awesome. transfer your service in minutes, making moving with xfinity a breeze. visit xfinity.com/moving today. welcome back to "the exchange." nationwide unrest continued last night including in new york city where despite a curfew destruction and looting took place and macy's a store most

impacted where we find nbc's ann thompson live on scene with the very latest. hi, ann. >> reporter: hi, kelly i'm here at macy's in herald's square and doesn't look like the macy's we know it is a natural landmark but today it is boarded up because last night through those front doors looters went inside, a whole gang of them certainly close to 100 it looked like in the video and went through and they stole stuff out of the store they lit two trash cans on fire and as a result this morning we have seen crews here boarding up these windows, the doors again and fortifying the plywood defenses now because of that looting incident and others throughout new york city including in downtown manhattan and up at rockefeller center, mayor deblasio has changed the curfew here in new york city and instead of 11:00 p.m. tonight it

will be at 8:00 p.m. tonight and it will extend through sunday. now, the fact that there were so many looting incidents in the city of new york last night has led to yet another war of words between mayor deblasio and new york state governor andrew cuomo, cuomo saying bluntly today that the mayor and the new york police department did not do its job last night. he said he is outraged and disappointed at all the looting incidents that happened. in a press conference today, he revealed that he is offered the help of the state police and the national guard but mayor deblasio refused that help because he thinks that the new york police department can handle it. in all, 700 people were arrested last night we'll see what tonight brings. >> ann, it was interesting to listen to the governor saying he didn't think that the naegsal guard trained for urban

situations like this even if they were sent in and nypd better equipped and then asked if he would overrule the mayor, the only way to do that would be to remove him from office. >> reporter: he did and then raised that issue and then tamped that one down, too, batted it away saying it would only make a bad situation already worse. but what he was very forceful about is suggesting or basically telling the mayor and the nypd to do their jobs to stop these looting incidents from happening and to do a better job of protecting the city and its property kelly? >> and it remains day by day ann, thank you so much good to see you. we appreciate it nbc's ann thompson. the rioting on top of retailers reeling from the pandemic let's bring in jerry storch. if retailers like macy's and

others can't rely on police protection, will they have to go to a private security? >> i don't think so, kelly retail will come back. but we have to set our priorities first moral imperatives come first. we need to condemn the violence against george floyd, all retail ceos to show that they stand on the right side on this after that, we need to look to safety, for our people, employees, our customers stores are closed. where they need to be and they'll stay closed, hours shortened, whatever needs to happen meanwhile if history is any guide the current social unrest will not be a long-term problem for the operation of retailers then we need to worry about covid again and, you know, we were making great progress on reopening the economy. most of the retailers i spoke to were pleased with the numbers to see with the reopening and felt like there's momentum and need to ensure the safety of the employees again and the

customers but this time ve vis-a-vis ovid whatever we have to do and then if the numbers are good, we don't control that, you know but if the numbers are good in terms of outbreak and people infected, then i believe retail can make that road back towards a true come back things will change but it will come back. >> it was interesting, jan niffen pointed out in the strip mall type of centers that traffic at 110% of last year maybe helped by the relief checks that people got and who's to say whether that lasts but maybe a sense of pent-up demand as the stores started to reopen. >> i think if people shop that will last. what we are seeing is a tremendous acceleration of the trends that pre-existed the pandemic so it was the players winning. malls have been in big trouble

department stores are in trouble. apparel stores, think of those in the mall in real trouble. walmart is a winner, target, home depot, dollar general all off the mall players and of course, amazon has picked up tremendous market share and likely to continue to do so. >> let me circle back. if a client said, jerry, do we need to worry about -- as you mentioned the safety of the employees, worry about security at our urban locations, what would you tell them? >> obviously we do the best we can and mostly if it's a location that's in danger for employees and cust mores we have to keep it closed. certainly at night, that's why you see reduced operating hours. in these kind of high traffic locations, locations that might be more vulnerable we talk about enhanced security and why it's expensive to operate in these locations and i'm sure that's

beefed up for the safest possible operating environment and the retailers cannot substitute with armed troops of their own for the workers, the police and for the goodwill of the dmoen stremonstrators >> target, nordstrom, closed many of the stores in the country. was that out of abundance of caution? was there training and preparation to go into the reopenings >> it is just what we do you have to do it. safety of employees and customers come first no way to take that risk it is much easier to close the stores a lot of demand, again, this isn't a monetary decision. it really isn't. but much of that demand will come back later. when you look at the companies, target over 1,800 stores and closing 200 is 10% so for most of the chains not like they all shut down. what i worry about is not the

big companies. they'll be survivors they're well capitalized and can be leaders in the social justice movements of the future as they embrace the change that's required here but it is the mom and pop, it is the independents, small chains that won't be able to weather this kind of storm, particularly a store struggling to reopen and now looted or burned it will probably never open again. there's a massive trend towards consolidation in retailing that was happening already along many of the names that i mentioned previously an enthat previously and that's accelerated tremendously >> good point. thank you so much. appreciate it today. >> thank you. coming up, there's backlash at facebook. employees staging a virtual walkout protesting the policies of policing content. will there be changes and will advertisers turn away? are we seeing a awth in the

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welcome back to "the exchange." let's check on markets at this hour dow's just off the highs of the session. we are up 197 and blue chips are outperformer nasdaq only just got back in positive territory look at the sectors. that explains the leadership how it's rotating today. you have energy, materials and industrials all leading with gains of 1.5% or more. technology just barely positive on the session communication services which are also a lot of those high-flying tech names are lower today checking on the individual movers, we have shares of restoration hardware well higher by 14% the company often seen as a win from the suburbanization trend and expanding margins to expand

in 2020. the stock also got an upgrade. and what about 1-800-flowers i just used that for mother's day. they cite falling consumer confidence and floral gifting declines in recessions only down about 2.5% today finally shares of square on pace for their let's see highest close since october of 2018. mkm partners said it's in the reopening bucket and will continue to benefit and square at the point to point merchant sales, smaller businesses finally getting the path to reopen shares are up 5% today let's get over to sue herera for a news update. >> hi, kelly, everyone civil rights leaders who spoke with mark zuckerberg monday night said they're disappointed and stunned by the facebook ceo's explanations for allowing

president trump's when the looting starts the shooting starts post. even as twitter put a warning label on that post you can head to cnbc.com for more on that controversy. e pass call bishop budde condemning the photo-op at the church of the presidents saying president trump did not offer the moral leadership the country needs right now. >> it served as an instrument of his own forceful presence and in the nation and it did not address the grievous wounds that we are dealing with and the agony of our country. >> you are up to date. i'll be back in an hour. back to you. >> all right thank you so much. coming up, the country's most expensive city. lots of eyes on corporate america to see how leaders step up to the challenges

are they responding the right way? we'll explore that. astronaut bob behnken with a look forward straight from the international space station earlier. listen. >> there are no boundaries or borders really observable from space for the most part. you see a single plan wet a shared atmosphere. it is our shared place in this universe and so i think that perspective as we go through things like the pandemic or we see the challenges across our nation, across the world, and recognize that we face them together hopefully the astronaut experience and a ltlite bit of perspective is being shared by the rest of the world right now. an estimated 54 million americans will struggle with hunger. ♪ with 200 food banks and 60,000 meal programs,

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welcome back to "the exchange." as america faces civil unrest across the nation what role should executives and corp. rations play outgoing at&t ceo randall stevenson gave a stark assessment about that this morning. >> the african-american community is viewing this consistently and it's a pervasive view and so all of us ceos have large african-american employee bodies that we owe it to them to make sure that we're speaking to this and asking the policymakers to step up, asking the political leaders to step up and recognize and just say it. we got a problem. >> my next guest says the solution isn't so simple and that ceos should tread carefully. let's welcome in ron christie of christie strategies. ron, it is good to see you we have heard so much in the

last 48 hours. what stands out to you good or bad about the rhetoric of corporate america? >> good the see you, kelly i look at this in two ways i'm horrified with the events across the united states, the burning, the looting that harkens back to the civil rights era. on the other hand i look at what corporate responsibility should look like. i believe that ceos have an obligation to be clear with the employees that racism is not tolerated and the particular community nor should it be but hearing day after day of systemic racism in the country that's where i think we need to be careful where we draw the line. >> you say we have elected a president obama to two terms, i remember there's talk about post-racial society so how would you diagnose the events of today? are they -- what do they tell you about the sort of lack of progress, the regress, the culture wars going on right now?

>> look at this in a couple ways number one, certainly the days when my parents grew up in the 1960s are not 2020s. i have a vocation, exist in society a lot easier than people from just one or two generations ago. so the notion that we haven't progressed as a country i find to be a little bit misguided on the other hand, any time that you have people of color who are fearful of walking down the street, fearful of the police it indicate there is's more work to be done. my view is honesty and candidly conversations out of one's comfort zone to make surethat we recognize our motto, out of many, one. >> what would your advice be to corporate leaders saying they want to be part of the solution? what should they do? >> they could have town halls with employees they should talk to their shareholders and say in days

past we did not want to tackle difficult issues dealing with race and sexism. now we've noticed that this is something that's very important to consumers, important to employees and we as good corporate citizens want to have that conversation and have a constructive path forward. rather than ignore the problems in front of us >> what happens with policing come to a head especially calls for police reforms and national standards to be put in place but as the end result is police kind of on the back heels and same time you see footage of protesters and police on great terms, you see plenty of people taking the protests turning them into violence and nothing to do with the racist movement that you're talking about at the core of this and the police themselves seem to be kind of lost and not even sure how to proceed in this environment. what should we do about that >> i worry about the police departments and many of our major metropolitan areas

here in washington, d.c., new york, san francisco, los angeles where they're getting mixed messages folks at city hall and the mayor's office saying we stand with you, the protesters, and almost condone anti-police behavior, condone the rhetoric that puts so many of the men and women in blue in fear of their lives trying to do their job i think we need to stand shoulder to shoulder with law enforcement as elected officials, as citizens, the governed to say we need a way together but looting and violence is never the right solution dr. martin luther king had it right where we had peaceful protests and here in the 21st century that's what we need to do once again. >> what do you think happens of the urban core of this country where for various reasons people, millennials, wanted to leave the city and now vie rens,

unrest, the pandemic and of course showed people the appeal of the suburbs what happens if the people that can leave the communities leave in the next decade >> i believe they will what's going to happen, of course, we'll erode the tax base the tax base pays for the police, infrastructure, education and if we have a migration out to the suburbs or even beyond i think a lot of our urban cities and communities around the united states will suffer for it. we need to find a way to balance the millennials who want to be in a position to be in an urban environment and those that want to leave and that if we have a massive migration to the suburbs then we will have more problems with safety and security than we do right now and that is a frightening thought to me. >> finally, ron, what message would like to see from the president? >> president of the united states has an obligation to unify the country. he's the president of all americans. not democrats. not republicans. not independents based on the

political affiliation but citizens i want to hear more of a soothing tone, more of a comforting tone and project leadership to move the country forward and we simply in my view have not heard from him. he needs to do more. president obama did a good job to unify the country and president bush after 9/11. i want the same from president trump to bring this country together to heal together. >> ron christie, thank you for your time today. >> great to see you. >> we appreciate it. coming up, facebook employees staging a virtual walkout to protest the stance on controversial comments mark zuckerberg met with civil leaders. and are we headed for a rare decline in home prices we have got the latest numbers coming up. - [announcer] if you've tried college but never finished,

snhu let's you transfer up to 90 credits toward your bachelor's degree. - [woman] it doesn't matter how old you are, you can do it. you can finish. - [announcer] finish your degree at snhu.edu. welcome back the nasdaq lagging today and facebook is a reason why shares are down more than 1% today. this as facebook set to hold a company-wide meeting at the top of the hour.

let's get to julia boorstin with more julia? >> reporter: that's right, kelly. facebook's mark zuckerberg hosting this meeting for the employees starting in just a few minutes and this meeting is private but we do expect a substance of the q&a to leak out. what will be in focus is company's decision not to flag president trump's post including, quote, when the looting starts the shooting starts, that decision prompted a digital walkout of hundreds of employees yesterday. sources tell me that employees are working on a list of specific demands for the company. last night zuckerberg and cheryl sandberg spoke with leaders of three civil rights groups and said they were disappointed and stunned by the explanation here's what color of change's robinson told cnbc this morning. >> this is a representation of work that we had thought we had done together and then when the crisis hit some of the things we had achieved, the policies we

had moved, have been thrown out the window >> reporter: facebook responding, quote, we are grateful that leaders in the community took the time to share candid, honest feedback with mark and cheryl. it is an important moment to listen and we look forward to continuing the conversations we'll have to see what comes from this meeting starting at the top of the hour. >> julia, thank you. moved up by a couple of days what should facebook's next move be here? i'm joined by alex stamos and casey newton great to have you both here. casey, start with the specifics of the facebook situation. what would happen if they said to the employees that staged a walkout, you're fired? >> that would be tough to do because the issue is about freedom of expression. right? facebook elected to keep some posts from the president up and some facebook employees have decided to post about that publicly so i think honestly in that narrow sense the employees

forced facebook's hand here. >> in general the issue with mark zuckerberg seems to be that he's pro political speech and not policing it and does it have merit as we see with twitter trying to go after political speech i think they flagged another senator or congressman's tweets over past 24 hours but slowly and case by case does facebook want to wade into that >> no. is the answer. right? we prefer to live where the elected politicians not threatening violence on the social platforms and most surprising thing and deserves the most attention but different platforms make decisions of where are the red lines that cannot be crossed and as you know twitter has been more willing to weigh in on this than facebook has and the fact that twitter weighed in i think that has galvanized the facebook employees to see their employer

take more action. >> alex, it was interesting because a thing that mark zuckerberg said if twitter thought it's enciting violence they should have got rid of them altogether and they have a policy inciting violence you are not allowed to post that so they're saying in other words they think twitter is trying to have it both ways. >> i don't think that's a good argument for facebook. facebook does mark things as disput disputed and they do make people click through to see certain posts in certain circumstances and i think twitter's approach is appropriate there's a bigger problem here which is that you can't de-platform the president of the united states. everything he says is newsworthy this is a struggle that the social media companies dealing with and traditional media the big "the new york times" article criticizing facebook for this also reposted the facebook post right? you see him being -- trump criticized for clearing out people from lafayette park, a totally appropriate criticism

and then they play that clip over and over again of the photo-op he wanted to get and i think people are struggling with how do you allow speech and report on things without amplifying it? i think twitter's approach is appropriate. >> a broader question is the president's response which is to say i believe at one point tweeted repeal section 230 what is the wider implications of removing that status? or, what categories would you have to put all of these content platforms under? >> this is a very complicated topic. almost every politician talking about section 230 gets it wrong. section 230 of the communications decency act is a fundamental law that basically says that platforms are not responsible for the speech that people put up on them with some specific exceptions. those exceptions being copyright issues, child pornography, other like really bad issues but for the vast majority of stuff posted if you don't like

something you have to sue the person that wrote it section 230 is completely irrelevant to this speech because this is core first amendment protected political speech so if there was no section 230 facebook would have no liability for carrying the president's words or probably face liability for taking it down and less understood at this point. threatening 230 is something politicians do because it's an important law but it's not really relevant to political speech it is like threatening cnbc on a health code violation for your building to try to change the editorial policy there's not -- the law isn't relevant so you'll see trump and democrats say it i think what's going to happen is that the trump administration has announced a bunch of different investigations of tech companies, they want to have ftc investigations and so actually changing 230 is unlikely and what they can do is use the incredible power of the

executive branch to try to convince these companies - >> another way. >> to never use the first amendment rights to mark the tweets as disputed. >> casey, back to the meeting to start in about 15 minute's time then, if zuckerberg is facing the questions, what could he say today or is he ever going to be able to get this right >> the thing that he said on friday was that they were going to reexamine some of the their policies that allow for the kinds of posts that trump made on friday, ones where he suggested he was going to essentially use his own military against his citizenry. that doesn't seem to have mollified the employees that walked out yesterday but it's at least a concrete step that you could take at the end of the day, at the highest levels of companies there is a real commitment to enabling the broadest range of expression and this is one where they have really dug in their

heels. frankly, i think they're heartened by the fact that 400 people max walked out yesterday. right? come parred to the google walkout where i think 18,000 googlers walked out so i think for the moment they think it's one to get under control. >> do you get the sense that advertisers, advertising is already down with the small business customers who have been hit hard by coronavirus could they face a wave of people leaving as they did in cambridge analytica? >> hard to say if it will blow over without knowing what's going to happen over the next few days to the extent this has had any business impact on the stories i've read suggest it's in the six-figure range and nothing to get facebook's attention but if proctor and gamble reconsiders the advertising on facebook i will pay attention. >> absolutely. thank you both today talking about facebook's challenge here. coming up, we'll talk to

online therapy company talk space, a more prominent reaction to facebook doing here, they have ended the partnership with the social media giant after they refused to moderate the post from president trump and the ceo will join us to talk more about that. coming up here, as the economy is reopening, the ipo market is, too two names set to go public this week. san francisco most expensive rental community in the world last year and 2020 could be different as prices start to plunge that story is ahead. interest ba. i just discovered sofi, and i'm an investor with a diversified portfolio. who am i?! i refinanced my student loans with sofi because of their low interest rates. thanks sofi for helping us get our money right. ♪ woi felt completely helpless.hed online. my entire career and business were in jeopardy.

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be daring. and whip up a new dish. i love the combination of gummy bears and meat. you can do video calls for all of your important meetings. what? sorry. or just have some fun. ok, not that much fun. now, this does not come naturally to me. but, try to be kind to each other. this is a tough time for everyone. so that's it. stay home. stay healthy. and remember, we're all in this together. what? but totally separate. you know what i mean. yaaaaay! as markets have come roaring back, the ipo market is back up and running with two large companies planning to go public this week and just like everything else there's a new

normal on ipos and leslie picker would be across the table but she is across the newsroom welcome back. >> thank you, kelly. >> you look great. >> closer than we have been. but that's exactly right the process has changed. think investor now have covid-19 as their very first risk factor. warner movie group and zoom if phone, no relation to video conferences zoom a planning deals this this week a source tells me that demand is healthy given the amount of cash investors have stashed on sidelines. zoom info already raised its price range by $2 this morning on strong investor demand.

if these deals do go smoothly, ipo advisers say changes to the process may pave the way for other companies to go public as well. plenty of coffee here. i'm in good hands. >> we have to go no more talk about the babies. great to have you back still ahead, san francisco and the bay area are plunging as companies layoff employees and

as big tech companies allow them to work from home. we'll dig into numbers coming up, he's had the close more than 70 of his restaurants due to the ongoing civil unrest tilman joins us to discuss the impact on his businesses stay with us (upbeat music)

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that's a sharp increase from the 4.5% jump in march

by april of next year, home values will actually be downtown nationally by 1.3% and national price drops are rare the last one followed the sub prime mortgage crash a decade ago and before that, not since the great depression locally, philadelphia, which may be seeing an influx of residents relocating from new york city saw the largest price jump in april. nearly 11% annually. houston, saw home prices increase by just 0.7%. tourism heavy in las vegas and miami are seeing a hit from the coronavirus. prices there will drop 7.2 and 4.4% respectively by next year some amazing numbers. >> before the mortgage crash, people said they would never fall again and here we are talking b about it >> never say never thanks very much

while home prices may have jumped in april, rent prices especially in the bay area are going in the other direction rental search search engine saw double digit drops which held the title as the second most expensive rental city in the world. oo i'm joined by the ceo of redfin. are you seeing signs of this as well do you think this flight to the suburbs could have legs? >> it's a massive migration. we're seeing a great dispersion of americans across the country. why would you pay the tax to live in san francisco, seattle, los angeles when you could have the same job but be in grand rapids, michigan or south carolina we see people refiguring where they want to live. they want to spend more money on their home but don't want to pay the tax to live in an urban

area >> you need ten big things to come together. those would include the high cost of living prior to this the coronavirus pandemic showing the appeal of leaving. on and on, just all of these different factors. this is about people leaving silicon valley it could boost the secondary urban cities do you see that trend playing out or do you think it's people just going to the suburbs period >> no. i think it's very strong in the bay area. because the affordability crisis there's new urban anxiety because of the protests. i would say the pandemic did not

rattle home buyers very much there was a few weeks where people were worried about it the protests are having a more fundamental effect that making people feel like something deeply wrong might be going on with america we just see less demand, significantly this week, especially in urban areas. >> it's potentially seeing more of a seizure in this week than it did during the pandemic >> in pandemic last week of march demand was very low. that was the point in which people had reached their maximum level of anxiety it's where you saw this unemployment we had recovered from that and now it just feels like a second blow that there is so much unrest and obviously the housing market is not the primary concern here we should be worried about whether it's fair country for every one. i do think that's having an economic impact. >> finally, we just spoke about how home prices could be headed lower over the next year or so

one of the companies looking to relocate out of the bay area, stitch fix that says it would give people the decision to either go with the company out of california at a lower pay rate or not. what do you think happens to home prices if people can't keep their big city income as they move out of the big cities will that put more pressure on them in. >> it's hard to say what's going to happen to san francisco home prices because that market is different than any other real estate market in the united states my sense is that there's going do be less upward prices you had. facebook and google trying to build their own housing for their own employees and that was peak madness you have plenty of companies saying you can work from where ever you like and see people leave. you're having other companies say we're getting out of damage. i think it's a real issue for san francisco. it will be a real issue for every city we had years to

affo address the affordability crisis and now they're just going to go if we haven'tsoevered that problem by now >> now it's too late thanks so much for your time today. >> thanks for having me. >> you're welcome. >> that does it for the exchange i'll see you over on power lunch with tyler and melissa thank you very much. glen always leaves you with a smile on his face and yours. welcome everybody to power lunch. welcome back to the kitchen. good to have you in today. markets in rally mode on hopes of the economic reopening. fil filtering in but gliding toward those fears of unrest that glen talked about all around the country. the s&p up a staggering 40%. yes, 40% from the march lows cities implementing early curfews. we'll talk with the mayor of cincinnati, ohio about how protests are impacting the reopening