i own calls and stock in this name and has a lot of upside from here. jenny? >> iron mountain saw the management yesterday solid as a rock. >> megan, five seconds. >> u.s. large cap growth, usually an either/or conversation but they could have share long term. >> thank you for watching. kelly picks it up now. thank you, scott hi, everyone rally on the dow crossing the 26,000 for the first time since early march. s&p higher fourth day in a row and the nasdaq calling in on all-time highs has the fed art feshlificially d the market tough talk on china. we'll go inside the new cold war with china. and the growing demand to get away as some covid-19 fears recede, the new trend heating up. we begin with the zooming market, zoom included i guess. >> it is i think. >> dom chu here with numbers.

>> let's talk about what's happening with the markets because for those folk who is are still watching to see what social unrest and the covid-19 pandemic is doing to the markets it is pretty crazy dow jones just off the best levels of the session. up 395 the s&p up about 1%. the nasdaq the laggard up half a percent and i would note as kelly pointed out the nasdaq composite is just 2% away from its own record high that we saw back in february, something to watch there for sure also speaking of those internet type stocks, this particular e tf of fdn marginally lower on the day but did hit a record high in trading today, big names of amazon and then check out these names because they have something in common. one thing is all home improvement. the other thing, too, one point today they get gold stars because they all hit regacord

intra-day highs. back to you. >> thank you. from coronavirus to an economy on brink to now a wave of unrest that some compare to the late '60s, this market had everything thrown at it but since the bottom in mid-march it's marched up. is this rebound back to the highs warranted or is it artificially induced by trillions in fed stimulus? chris harvey is head of equity strategies at wells fargo. it's good to have you here what do you say to those that say this is fed stimulus >> partly due to fed stimulus. it is partly fed stimulus, it is partly with regard to the fiscal policy and then a management of covid-19 the health care system did a good job of getting on top of it and then ultimately is looking forward in time and what we're seeing is we think numbers in 2021 will be better than 2020. and then in 2022 better than 2021 so we do see longer term growth

and ultimately we think equity markets do go higher. >> as you said, you think the fed is one part of it. i think this is an interesting angle to explore you have more and more people believing there's nothing fundamental about the rebound, just because of the big government response and suggests different takeaways saying to look to alternative currencies, this is a rally built on san and not lasting and so forth what would you -- how would you respond to that? >> a few things, kelly very simply, what we see is equity following the vix, the vix is following credit and the credit is following the fed so yes. what's going on? what's happening the credit markets are liquefying tough names that need access to capital are getting it once they get it, what does that do to the companies? makes them less risky. we should see multiple expansion and what we are seeing second thing we talk about is

this is not -- some cases we argue this is like '08, '09. the big difference we see is '80s, '09, too much risk in the system the credit market seized up. bank balance sheets upside down and backwards and bad decision making and ultimately here what we have is an exogenous shock and not bad. the capital markets, the economy was okay banks are much better than what they were before you add significant amount of monetary fiscal policy and again withthe health care system or health care system that really did a great job on confronting covid-19, you have a much better situation. we think that numbers will ultimately go higher and what we have been telling people is to buy on the lows and now what we are telling people is pain trade is not so much higher equities but it's rotation into value. >> rotation into value

i want to end there. so you guys have been rotating into value since early friapril. and now you're rotating as this plays out into small caps called the new big thing. so for anybody who missed this historic rebound off the lows, you think there's plenty of opportunity over next six to 18 months for the small caps and where else >> that's right. so we think there's great opportunity with small caps. if you look at small caps they underperform on a 1, 3, 5, 10-year basis and find valuations in the space. getting back to the credit markets aen the fed, you are seeing a lot of liquidity which is good for the smaller caps meaning more risk on and ultimately driving these things higher and see earnings revision in another six, 12, 18 months. many of the companies are tied to the economy the economy will come back as these are the ones to benefit the most

where else do we find? opportunity across the board but really it is just with smaller cap, value and opportunities and very beaten down names >> all right chris, great stuff thank you so much for joining me today. >> thank you. meantime, local governments are reeling from massive losses first from the coronavirus shutdowns and now violence and unrest many cities are waiting for the money. ylan muoy joins me with more hi. >> reporter: hi, kelly it is a tale of two cities with federal aid. the biggest cities tapped into the $150 billion fund. that includes places like los angeles, phoenix, chicago, new york alone got $1.5 billion. the rest of the money went to the states which were then responsible for passing it on to smaller jurisdictions. but in more than half of states, 28 of them, that's not happen

yet and leaving thousands of municipalities waiting in limbo. one of them is greenville, mississippi. this week the city began furloughing workers in the midst of a $3.5 million revenue shortfall, stopping work on construction and sewage projects and cutting back on overtime for police officers and firefighters at a moment reeling from the national unrest. but, kelly, local leaders have been very careful to separate the cost of the pandemic from the price of the protests. they say that there is a bipartisan push for more aid from washington in order to make sure that they don't jeopardize the political waters. >> no, those budgets will be under so much strain, especially if people start to leave the cities for the suburbs ylan, we have headlines about the federal reserve's backstop for state and local governments. a couple of interesting things, saying governors can designate two bond issues in the state for

revenues for public transit, airports, utilities. what do we know about the fed's plans here >> reporter: yeah. one of the concerns around the fed's municipality liquidity facility around this c.a.r.e.s act and that it is only available to states and to the biggest players and part of that was simply administrative. the fed and congress and treasury were working so fast to try to get the programs started that they couldn't handle influx of applications from the smaller towns and cities and countys that are out there so they started with the big actors and a lot of concern on capitol hill and amongst the state and local governments that simply was not broad based enough and something that chuck schumer the lead democrat in the senate has talked directly with jay powell about, the fed chairman, and something we're seeing the fed take into consideration trying to get the money into every corner of the economy. >> makes sense because the rules

guarantee that all states have two cities or counties regardless of population interesting. thank you so much for that we appreciate it we have got a market flash on snap. julia boorstin here with that. julia? >> reporter: the company saying it will not promote the president's comments in its snapchat discover platform with a statement right now saying that it does not -- we are, quote, not currently promoting the president's content. will not amplify voices who incite racial violence and injustice by giving them free promotion. we stand together with all who seek peace, love, equality and justice in america snap shares trading down looks like down about 2.5% back over to you. >> no surprise considering the memo earlier this week i encourage everybody to read it, really fascinating it goes through a deep able sis of what he thinks is done with

the culture and this move fits with what he thinks different yates snap from the other social platforms. thank you so much. go ahead what were you going to say >> oh no i was just going to say what was interesting is sort of putting evan's approach in contrast to zuckerberg and dorsey. spiegel taking a stand in terms of need in change in corporate america. he talked in a lot of detail of many different things to be done in terms of taxation to address racial injustice. >> gdp, everything julia, appreciate it taking a quick break coming up, the tensions with china heating up again flight restrictions now. we'll look at the shutdown with a reporter recently kicked out of the country. we'll look at the economics of returning to sports and what's holding up up. crisis in america, a first

african-american ceo of a fortune 500 company, franklin raines of fannie mae stay with us i got an oriole here.

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airlines from flying to the u.s. beginning on june 16th if not sooner as the transportation department says beijing is preventing delta and united from resuming service between the two countries saying we'll will allow chinese carriers as they allow ours in other words, none there's a deep dive into relations to see how we have reached this tipping point for more i'm joined by the reporters behind the book, bob davis and lingling wei it is so great to have you both here anything know about journalism i learned from watching you two way back in the day. it is a pleasure and congratulations on the book. bob, let me start with you can we call china an enemy what is this issue with the flights at this juncture tell us especially in the wake of coronavirus. everything going on. what is going to happen with the trade deal where are we at in the relationship do you think? >> yeah.

i mean, i think the flights are just one more irritant on top of irritant on top of irritant. i wouldn't call them enemies i would say we are to the point of adversaries certainly you know, the trade deal had -- created a truce in the trade war but it was quickly overtaken by covid, by hong kong, by on thing after another. we are at a point now where the two economies are disengaging from one another not quite going to the decoupling that people talk about but definitely disengaging. >> it is fascinating in the book to read about how i think it was your grandfather marching with chairman mao and you become a u.s. citizen and give up the passport and go to beijing and kicked out of -- what is this

experience been like for you and how does it feel between the two countries? >> thank you, kelly. great to be on your show yes, for a long time i've always looked at myself and people like me, you know, who live examples of how the close relationship between the u.s./china can benefit individuals. i remember in early 2011 when i went to the chinese consulate in new york applying for journalism visa in order to go back to china to practice independent journalism you know the visa officer just look at the application and said something like that, oh, we have never seen applications like ours because he was -- she was referring to my chinese background so anyway there are a lot of people who are like me because the years of engagement between the two economies whose straddle between the two countries.

but by now, you know, i have become the collateral damage of the worsening of the relationship many people in china call people like me today -- which means bomb ashes >> wow. >> it's quite, you know, for me personally, it's just amazing experience i looked at the history but i also, you know, it is heart breaking to leave china but i also felt very fortunate in a way that not only lived the history but being able to write about it and, you know, just -- in this book also just part of the reflection of what we individually have been going through over the past few years. >> the reporting is phenomenal you go into meetings in the trade negotiations over the trade deal on the chinese side explaining some of the caution and where it came from on the u.s. side.

it is really fascinating stuff bob, you have also -- reading about your dad and how he -- it was a patent of a garment bag, right? an original american manufacturing in brooklyn. that's taken away from him he didn't necessarily have any bitterness about it but what do you think the next chapter of american manufacturing looks like in this disengaging from china? >> i think, you know, the fundamentals of the manufacturing remain u.s. is a high wage country. going to be high wage country. some companies in china will expand production outside of china. they were starting to do that before the trade war it is accelerated with the trade war and again with covid and i wouldn't expect to see much of that come back to the u.s. maybe things like pharmaceuticals seeing particularly dependent on china for essential materials but there aren't many of those many

kind of companies so i think you will see continuation of companies expanding, not necessarily leaving china but expanding outside of china and not expect to see them coming back to the u.s. and certainly not going to see a garment industry in brooklyn again. >> right so last thing, bob, what message do you want investors to take away from reading this book? how should they think through the relationship between the u.s. and china and so much of the rest of that. >> i think they have to just be aware that this isn't a trade war that started with donald trump. it's not going to be a trade war that ends with donald trump. you know we are in a long-term period of the countries disassembling from one another, derailing one another and that's something you have to just factor in that's a new reality. >> yeah. it is fascinating and both of you kind of walking through that experience, too. thank you for joining me good to see you and congrats

again. >> thank you. >> thank you. still ahead, the road to recovery seen more traffic the ceo of vacation rental company said they're seeing a pickup in demand already plus a sweet tune for investors. warner music shares up 15% we'll look at what it means for others in the wing. you can watch or listen to us live on the go on the cnbc app and take a look at shares of square rallying again today up more than 4% we're back in two. - [announcer] if you've tried college but never finished,

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and your local community food bank. ♪ welcome back to "the exchange." let's take a look at the markets and we have a rally on our hands today. the dow up 417 close the highs of the session 1.6% gain and the blue chips, industrials, outperforming the others s&p up about 1.5%. 35 points.

3116 nasdaq up, respectable, approaching all-time highs here's a look at the sectors it has a rotation to value feel to it. financials up almost 4% today and the 10-year treasury yield rocketed and industrials are up 3%. real estate higher health care is only sector in the red. let's look at the strinlg movers we have a chicken price fixing issue on the hands pilgrim's pride was halted after news that the industry executives including the ceos of the two companies have been indicted for price fixing. you have tyson down 6% pilgrim's pride down 11.5% finally american eagles shares soaring after they said traffic is exceeding expectations and let's leave on amc volatile session the company saying they have

doubt about the ability to continue through the coronavirus pandemic down about 1% today. you can shares at a low level about $5.50. over to sue herera for a news update. >> hi, everyone. george floyd's family visiting the memorial where he died in police custody their attorney expects the other three officers involved in floyd's death will be, quote, put behind bars by tomorrow. earlier minnesota governor tim walz and his wife visited the site where he added the message justice now. reuters reports the officer already charged has a new lawyer replacing one who withdrew for health-related reasons. thousands of protesters are gathering outside uk prime minister johnson's downing street office today after marching the hyde park to parliament square in a black lives matter demonstration hsbc says a top executive in asia has signed a petition backing china's imposition of a

national security law on hong kong putting the uk headquartered bank on beijing's side of the fight of the future of that territory. lots of moving parts in the news today. that's the update this hour. see you again in an hour. >> should be an hour-hour news update. >> i'm all for that. >> sounds good we'll see you later. professional sports leagues face challenges around how and when they can return to play but when it comes to the nba houston rockets owner says that day is coming soon >> we are going to play basketball at the end of july, and i think that's -- everybody knows that it is out there. it's going to happen is it going to be 16 teams or 30 teams or 22 teams? which we have a discussion tomorrow or friday to discuss all this and come to the final conclusion of exactly what we are going to do. >> and indeed the nba's closer

than many other leagues to return where's baseball bring in eric chemi with the latest. >> so tillman had it right on, the nba leading the way with an actionable plan to restart there was a report of laying the restart plans with 22 of the 30 teams going to orlando to get ready for the season to restart in late july that will be followed by a full set of playoffs ending around mid-october. nascar is another example, they have already held races in the last couple of weeks and researching ways to bring fans back into the racetrack. pro golf about to restart next week a key theme with the leagues is better unity with the economics. on the other end of the spectrum, you have major league soccer, baseball fights over money have been rampant and caused huge disruptions to getting started soccer was on the verge of a lockout a couple of days ago but earlier today they seem to have come closer to an agreement to

start. baseball is at risk of losing the entire season. they're all bickering, leaking emails to the press, blaming one another for the impasse. baseball and soccer more reliant on stadium revenue, more so than basketball or football so baseball in particular while they have a salary cap like the other leagues and bitterness of baseball owners and the players union. you don't see that in the nba and the leagues on the way back. baseball still stuck in the dugout, kelly. >> less likely than more that the season happens at this point? >> it is a possibility normally 162 games and then saw a version of half the season and then the players said 100 and something games and the owners said 50 games. close to zero with baseball. so there's a lot more problems there, very different than with basketball as you have seen the players and the owners finding a way to work together to get going. >> fascinating nba, weeks away? >> first game should be july

31st and will get to orlando real soon and start the training camps. >> thank you very much. coming up, as civil unrest continues across america we'll speak with the first african-american of a fortune 500 company and what he thinks corporate america has to do now and former microsoft owner steve b ballmer shared his thoughts. >> it is up to the ceo community to lift that up. a big issue has been it's all been black leaders talking about the issues and it is time for white leaders to stand up and really speak and encourage action

welcome back a lot of action in the bond and foreign exchange markets today rick, the financials up almost 4% and bond yield's, the 10 year's up multiple basis points. >> yes, absolutely as a matter of fact back to early april on 10s close to two-month highs up half a dozen basis points and if you look at bund yields intraday zoom, zoom, zoom. below minus 40 ecb meets tomorrow, this is within heck of an important meeting especially since the euro currency popped over a three-month high against the greenback. back to you. >> those are the headlines thank you, rick. meantime, america's ceos are speaking out about equality as protests break out across the

country. earlier bank of america ceo brian moynihan said here's what still needs to be down. >> things aren't going to quiet down, they should n't quiet down in the core social progress to make sheer if you go back 50 years ago when the united states was in very tough circumstances around these similar issues, 50 years later, twice as many people working, the united states made great progress and still we haven't fixed the issues and it is time to fix them. it is not enough money and we need money from other people and it is a meaningful change and the trajectory of what we were doing in health, jobs traning, scaling and small businesses and housing. >> joining me now is franklin raines, former ceo of fannie mae and president clinton's office of management and budget director great to have you here, sir. welcome. >> thank you. >> you know, this was a point that don peebles made the other day looking at the fortune 500

there's very, very few african-american black ceos. what would you say are the steps to ameliorate that >> it's a microcosm of the issues of race and corporate life and public life and that is that they make too few opportunities for african-americans the rise to the top, to have the opportunity to serve in leadership positions and this goes back to the origins of the issues not just for ceos but for average people and that is that we come from a history, 150, 160 years ago majority of white americans believed that african-americans were less than human believed that white supremacy was the way of the world believed that white privilege was well earned and deserved so we have made progress since then but that progress is still left us with millions and millions

and millions of people who harbor those same views and to -- we have to deal with that by confronting it directly. >> what would that look like across companies there's that aspect of it and then public investment and the nature that could take. >> it takes both private and public investment. at the corporate level four thing that is we did when i was at fannie mae and that we think made a difference. one make changes in your business we made particular outreach to a minority community to raise the home ownership rates we had a corporate judicial system that allowed for the adjudication of any grievances on a very rapid basis. the third thing we did was training we didn't bemoan the fact there weren't specialists involved in the secondarymortgage market we made them

the entire classes for minorities in tech who had been undergraduates and we made our own tech workers by investing in them and the last and maybe most important is making sure that you audit your decisions to make sure that they don't reflect bias go back after you made the compensation decisions and check to make sure there's not implicit bias reflected in the decisions. >> i'm curious of the housing market today a lot of those gains in home ownership eroded and some say unsustainable in the first place. what do you make of the landscape today? >> i think it's very inhospitable to not only african-americans but to average americans. owning a home's the way that most people develop wealth it is the way that for years and years and years people have been able to pass something on to

their children or pay for education. but we learned a wrong lesson i think in the housing crisis. we blamed the poor and we blamed minorities for the housing crisis when the loans that went bad predominantly loans to investors who were speculating in housing, not living in the housing but speculating in housing. people who were taking their capital out of their housing, not people who were putting capital into housing and so we need to rethink those policies because when you undercut housing you not only deprive people of a place to live but you also deprive them of the single best way for them to be engaged in savings and investment. >> we have been talking about the pattern of migration that's starting and probably will accelerate of people to leave the cities, leaving them after they have been through coronavirus and now some of the violent protests what would you -- your concerns be about those migration patterns, you know, the whole eye of white flight may be

coming back to the fore. >> it is not just white flight the kind of violence that we have been seeing is also frightening the black middle class. so those who have the means are looking around to see should they leave and i think that this violence is going to leave a scar on black communities and urban areas for years to come. it took 20 to 30 years for washington, d.c. to recover from the destruction in 1968. so this has got to be met with significant improvements in life in urban areas years ago iworked with cities and states who were in deep financial trouble. cities where people thought we'd never come back. city of cleveland was given up for being lost but by investing both private investment and public investment in the city we were able to reattract people to the city and i think that can be done again and private investment and

public investment, we have got to get away from this notion that somehow we are overinvested from the public standpoint in our cities and in our people we are way under invested and that is reflected in some of the problems that we see such adds in flint, our education systems. we need to invest in people, invest in the physical capital and we need to invest in the environment. when we do that cities will again become the attractive places that -- to live that they've been for the last ten to 15 years. >> you know, that really makes me think if it takes 20 or 30 years for washington to recover from the '60s and hopefully not that degree this time around thank you so much. we appreciate it. >> thank you. coming up, the flight from the cities to the 'burbs is picking up and vacation rentals seeing an uptick in demand

and as we head to break, look at jd.com at 52-week highs today. "the exchange" is back in two. (upbeat music)

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- i did this for my children. i am very proud of myself. - [narrator] finish your degree at snhu.edu. welcome back travel and hotel bookings picking up the question is could civil unrest derail that trend or could it accelerate? seema mody joins us with more. >> vacation rental bookings down 60% year to date and a recent rebound up 40% in the last week of may compared to the same week last year, that data according to suntrust. demand is particularly strong in nonurban markets, about 60 to 80 miles from big cities. prices are starting to go up in select markets, the average daily rate at a vacation rental in beverly hills about $1,000 a night compared to $450 in may of

2019 a rental in the berkshires up to $171 a night come parred to 113 last may is this a lasting trend? bring in matt roberts, interim ceo of vacation rental platform and former ceo of open table welcome. >> thank you. >> why do you think demand is increasing when stay-at-home orders are being lifted? >> yeah. i think there's several factors. one, everybody is eager to get out and to travel again. they really want to get out of their house and they want to be in a home just not their home. a there's flexibility with remote working right now. kids activities canceled and really a preference, a share shift if you will to professionally manage vacation rentals because cleanliness is emerging, drive to rural destinations is a strong

consumer preference. >> what do you make of the civil unrest playing out across the cities, matt does that accelerate the shift of cities to suburbs >> it is incredibly sad what's happening right now and i feel very sad that we are still talking and having to deal with this, this stage in our society. i don't know if it's accelerating the demand. we have seen this for last few weeks in terms of the surge in vacation rental demand i think in general people are just looking to get away and to connect with other people. >> so what do you think then happens to cities like new york city and las vegas that are so dependent on that tourism revenue? >> yeah. i think that the trend for the near term is challenged for the major cities we're seeing, for example, we are seeing four-time spike in vacation homes near lakes. people want remote destinations, drive-to destinations and the

drive-to is down, you know the distance that people are even driving is down sort of 27% year over year. so people are looking for that very close proximity and for some remote destinations. >> yeah. demand is so high that now prices are going up in select markets which we just showed everyone, especially in beverly hills, parts of new york does that make sense to you, matt, that prisces are going up and when unemployment is high and living in an economic recession? >> it's an innate need of people to travel and connect and that need is going to be there. we are actually seeing may was just a great month for us with 562% year over year increase in our revenue per home and so we're seeing that surge in demand, as well and the breadth is happening, as well the start of the crisis we were

in around 357 cities and now up to 740 different cities most recently so the demand is the pent up and it's happening for us which is great. >> what about the duration of stays? are these just weekend rentals or starting to see people book houses for two to three months at a time? >> we do more short-term rentals and not seeing the monthly volume but an uptake in midweek bookings again with the flexibility of remote work and allows people to get away and work anywhere. and so they're just choosing to go with their families to some of these fantastic destinations that we offer, some of our more popular places right now are in panama city beach, florida, gulf shores, hilton head and examples of locations. >> yeah. interesting perspective on that. thank you for bringing it to us.

kelly, back to you. >> thank you. >> thank you. >> we appreciate it. still ahead, shares of warner music group up about 15%, 16% now in the first day of trading. we'll look at why they went public now despite the challenges of the covid-19 ndic at nt.paem derek, seems like your team is operating just fine remotely. yeah, everything is running smoothly with the now platform. (bling) see, incident resolved. how did you... gotta enjoy the small wins. you keep being you, derek. keep being you.

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so you can count on a deep soaking experience. are you seeing this? the kohler walk-in bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. everything is installed in as little as a day by a kohler-certified installer. and it's made by kohler- america's leading plumbing brand. we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. ask about saving up to $1500 on your installation. welcome back the ipo market is getting a boost this week with warner music and zoom info going public shares of warner music up about 16% on the session and julia boorstin is looking at why the company decided to go public now. leslie picker is here with what you need to know about zoom info julia, let's start with you. >> warner music shares are

surging today and that increase is driven by the boom of streaming music on spotify, apple music, amazon music and others helping the company's revenue grow 50% over the past 5 years saying in an s-1 quote in addition to paid subscribe growth we believe over time streaming revenues will increase due to pricing increases as the broader market further develops. with live concerts on pause, goldman sachs projecting revenue to drop 75% this year. warner's strength in streaming outweighs the limited exposure to merchandise sales the good news is wms predict that is the number of streaming users to quadruple in a decade and warner music's market cap over $14 billion, that's about $11 billion more than what the company was bought for 9 years ago. >> thank you very much now let's turn to zoom info, the other, other zoom, leslie.

trading slated to start tomorrow we have news on pricing? >> yeah, that's right. zoom info raised the price range yesterday morning if you recall and i'm hearing of two sources to aim to price $1 above the new range and the ipo to come in about $21 a share. above that new range. that means the ipo would come in about $21 a share, raking in about $1 billion final decisions will be made after the market closes. zoom info is not to be confused with the zoom video conferencing service. zoom infoep uses artificial intelligence to process data that can help support sales and marketing teams and their customer outreach. the company is backed by 21 capital, none of which are selling shares in the ipo at this time. henry shuck is the ceo and started the company while he was in law school by putting $25,000 on his and his cofounder's credit cards so, it seems to have paid off. regardless of what the pricing

will be, it's definitely a multiple of $25,000. >> yes not to encourage credit card borrowing, you know, but i love those stories, i really do let me ask you something a little bit out there do you think it's possible that zoom info will benefit from the fact that zoom is doing so well? i mean, is it just possible that they're like, you know what, maybe not a bad time for company with zoom in its name to go public >> anyone that kind of follows market psychology would tell you yes. we saw what happened with zoom technologies when zoom video conferencing went public last year so absolutely, it's possible, if people start seeing the momentum take place with zoom info. they've been using zoom, they think it's the same thing. this one is ticker zi. zoom, the video conferencing that people have been using, that's ticker zm for those of you out there watching, just make sure you can distinguish between the two when you look at the markets tomorrow >> absolutely. and we look forward to see how that one does. leslie picker with the details there. and with public offerings making a comeback, we'll talk to

the ceo of silicon valley bank about this boom, about falling rents in sfrauan francisco and whether he's worried about companies leaving silicon valley en masse stay with us knowing we're prepared for the future. surprise! we renovated the guest room, so you can live with us. oooh, well... i'm good at my condo. oh. i love her condo. nana throws the best parties. well planned, well invested, well protected. voya. be confident to and through retirement.

welcome back to "the exchange." the parent company of shriilicon valley bank are on pace for their best quarter in nearly four years, but still down about 10% on the year, even as the barrier rebounds from the pandemic, will looting and unrest add to a wave of people leaving for other parts of the country? for more, let's bring in greg becker, president and ceo of svb financial group and the ceo of silicon valley bank. greg, great to have you.

welcome. >> great to be here. >> let me just start it's kind of been the theme all week, this idea of people leaving places like san francisco, maybe even places like silicon valley, taking their companies elsewhere. are you worried about that >> for us, silicon valley is a key part of our market obviously, based on our name, but we're also all over the united states and around the world, as well so we think some of that is going to happen, right some of that is when you hear the twitters of the world, the companies talking about having employees locate from anywhere, the same can be true with start-ups themselves so we expect some of that to happen, and if it happens, i think in a lot of ways, the cost of living will go down in silicon valley and still allow it to be a robust market but if it goes to other parts of the united states, we have offices there, as well so for us, that really won't have that much of an impact. >> would you, yourself, ever be part of that like you said, you do operate in other parts of the country and

there might be people who say, i can't afford to live and work here >> we've had a lot of discussions, as most companies have had, about what is this situation, what is this environment that we're living through right now, working from home and what does that mean for the future of our business and so, do i expect to see in the future that we're going to have more remote working at svb? the answer is, yes, we will. we've been having a lot of discussions about how much that will actually be but, i think it's going to be a significant amount and i think a lot of companies are having those conversations and i think it will be good for a lot of communities, including how companies operate, the need to attract talent from all over the united states is going to increase in ways that it wouldn't have if this didn't occur. >> yeah, for sure. let's ask -- talk a little bit about these public offerings, which have all of a sudden picked up this week. you guys obviously have a lot of clients in this space. wife dig into it from your point of view. why now is there a sense you have to go while the market is

good, or is it, this is just the beginning of what could be a much bigger flood? what do you think? >> still, it's a very small number of companies when you go back and think about 2019 or other periods of time when there was a lot of activity, right you can only look at the tech side, just less than a handful of venture-backed tech companies that have gone public or planning to go public so far in the very, very near-term on the health care side, we also are in that area, there's been a fair number of ipos this year. we're counting around 20, if you will and they have actually performed well once they have gone public. so we kind of look at it in the tale of two cities health care doing really well or pretty healthy right now, and on the tech side, it's probably going, momentum is going to build. you need a little bit more time for markets to stabilize, a month or two longer before you start to see a bigger wave of company. so we're paying attention to that and we certainly hope that occurs >> interesting we're much more at the beginning, which makes sense

we've had two high-profile ones, anyway a lot of companies have been speaking out about the social unrest this week you guys among them? >> absolutely. first and foremost, it's a horrible situation what happened to george floyd, being killed in minneapolis and, you know, really, we're all talking about this and how we hope this is different. how change really will occur we certainly think about it in three ways one is, what we can do as a company to support, you know, black organizations around the united states, whether it's the naacp, and so many other ones, we're supporting them. secondly, we think about it from the standpoint of what we're doing internally, and it's not just one thing we've been doing it for a while, but this just reinforces the fact that we have to double down on that. the third part is we're working on what we call access to

innovation, which is bringing more individuals, young adults, minorities who don't typically get exposed to the innovation economy, and we certainly think it's the best place to be and we want to give more exposure to that we're doing a lot in that area and we only expect to do more. >> are you concerned about the kind of -- i say this in the direction of san francisco setting, the way streets have become, the way people don't feel safe. some of the more violent nature of the protesters also brought that kind of home for people >> you know, it's tough, right a lot of people have spoken out about violence and clearly, violence is not the answer, on one hand on the other hand, i think it's understandable that when you see this for so long where nothing has changed, it's a little bit of what do we expect is going to happen it's clearly not advocated for

violence, but i'm hoping last night, we certainly saw that things had calmed down a little bit, more peaceful protests and certainly that will continue >> greg, thanks so much for your time today >> absolutely. >> greg becker, presideceo of sn valley banks earlier, i said the tyson food ceo was indicted, that is not correct. he is not mentioned in the indictment that does it for "the exchange." "power lunch" starts now >> indeed it does, kelly thank you so much. and we will see you in a moment. i'm tyler mathisen welcome back to the kitchen and welcome to "power lunch. stocks in rally mode right now with the dow near the highs of the session, folks, as investors shake off any economic uncertainty fears and folk on the road to recovery in america. and check out that v-shaped recovery thanks to big technology, ladies and gentlemen. the nasdaq now just inches, inches from a record high and the largest software and