dividend i like it. >> farmer jim? >> caterpillar we didn't go deep into it but that was a good quarter. a good holong-term hold and a go entry. >> pete? >> i love ups. i've been in it before and it's an absolute monster. pinterest up 20% i like pinterest >> thank you for watching. kelly, it's all yours. >> thank you, scott! hi, everybody, here's what's ahead on this friday tech is still rocking, so should you be knocking? apple, amazon and facebook crushing it after earnings, apple surpassing saudi aramcoto become the most valued company in the world is there a time to ride this rally? plus, staying at home and do-it-yourself if you own a lot of shares in this, you're a happy camper.

and a jumble-sized mortgage problem. dom, a better picture than this morning. >> it was a better picture, but some of the key detee detear -- detedeteriorating. the s&p 500 holding off two-thirds of 1% we'll keep ahold of that nasdaq trade on the upside. one thing that's happening in the sectors. we have seen human discretionary, the outperforming sector so far, and utilities the two leading sectors of the s&p 500. meanwhile, no surprise, energy, oil prices it's tough to be in the oil

business right now those oil prices really lagging and that brings us to three different stocks that will be in the news today, caterpillar and chevron. two of the biggest laggards here so far, and merck also ups its guidance for the year. so the strength here in drugs. >> thank you, dom. we'll keep a close eye on those markets. meanwhile the dollar is hovering around two-year lows today and it's on track to post its biggest monthly drop in a decade let's get to rick santelli rick >> there's so many strange things going on whether it's the dollar or the conditions driving gold let's find out exactly what is going on with the dollar index look at this chart this chart goes back to 1979 you see the all-time high there around 160 plus. it's started to deteriorate. you could argue it's been in

deterioration mode ever since. conditions are so different. look at gold this chart starts in 1979. i was in the pits then gold traded up over $800 the problem is we had to wait 27 years to take a profit it wasn't until 2007, gold took that price out, and you see that gold really is a religion. open up the chart to present obviously the left side disappears even with this high prices realized whether it was the dollar or interest rates, look at tenure rates from 1979. they're at 12 and 13%, on their way to 16% i guess what i'm saying here is whether historic lows for interest rates, dollars are on the slide. gold goes up because the conditions that make it religion can change on a dime be prepared for many changes if you're one of the precious metal holders, especially given how conditions can change with fundamentals kelly? >> they've been burned before, i think, is your warning there, rick thank you very much, sir meanwhile, let's turn to

tech investors are piling into big tech following their stellar earnings apple and facebook hitting new all-time highs apple the biggest company, over 1 trillion in its all-time highs. why is there so much focus on these four big names it's amazing to see facebook at 7% even though it slipped a little this afternoon. amazon, facebook and google have 18% of the s&p 500 and they are 40% of the nasdaq 100. amazon is 25% of the consumer discretionary etf, the xly and the communication services etf, 21% of that one and apple is 22% of the total portfolio. just to give you an idea of how big apple is, the company's cash

pile is about $194 billion right now. that's about 24 bucks for every person on the planet let's talk about these market denominator right now. neil, what's striking is all of this is takes place after the big tech hearing the last time it marked the end of their dominance >> i think that's the reason these tech companies wanted to have a hearing before their numbers came out they knew they would have big numbers and they didn't want them to say, look, your pandemic d domineers. i think we're seeing that hearing accomplished exactly what they wanted it to accomplish, it put a lot of documents on the record. we're seeing how much control these digital economy companies are. as we all live at home, work from home, stay at home, i think we're seeing even more money going through these companies, and some changes are going to

come but for now they're firmly under control. >> steve, what do you say to these investors? is there any reason they should slow down at this size >> tech has a very large multiple and it looks like it's rising in general, but these names are still fairly well priced compared to the rest of tech, and the common theme here really is platform powers. the academics would say platforms invert the company you're creating more outside the company than inside the company. that means network effects, program interfaces the thing that gets you on tech is new companies coming along. i don't really see that yet. these are the leaders in ai and autonomous driving and all the new technology so yes, there's regulatory risk, but i think you still have another three to five years of good growth with these names

>> three to five years would suggest $2 trillion cap growth neil >> the theme of that hearing was you're so big and you're using your platform dominance and power to make sure you crush competitors. so specifically facebook, it was a lot of mark zuckerberg's e-mail saying, i'm buying instagram to neutralize the competitor that was documents congress was able to put on the record. i think the danger they're focused on is, are these companies going to quash disruptive competitors in the future so i think there is a through line in what their opportunities are in new fields and whether or not they need to be regulated such that other competitors can't come in and create value for investors and consumers. >> and we everyone, steve, from tiktok to expedia say, yeah, there are ways that make it harder to compete. it's a complete sea change for

kind of the way we used to do commerce all of that said, there is one thing about crushing competitors, there is another thing about monopolistic practices. pinterest is up 30% today. does that tell you there is room for other competitors? >> i think there is, and recently horowitz, the d.c. firm, has a list of market complacent companies if you narrow your focus, you can have an impact here. clearly the companies have the power and there were some embarrassing e-mails at the testimony. some of them are abusing their power. i think there are ways to deal with that. sensenbrener says we don't need a change in laws, we just need to enforce them better i don't know that that's the case, because it was more about companies dominating the supply side these companies dominate the demand side, so we may need some change in the laws, but i think it shows that people are voting

for the products and services these companies are providing, and we don't want to lose the benefits of that >> eli, you did say you saw some hints where regulation and new laws might be going after listening through that six hours. tell us what you think that might be and weather investors should view it as a threat to their positions in any of these names. >> i think that's absolutely right. we're going to see proposed change to antitrust law to suggest dominance on the demand side that was a big hint. there was a reason cicilline quoted them there. i think we're also going to see some proposed regulation for digital marketplaces to prevent companies from playing in their own marketplaces on unfair terms. that was a very clear through line for both apple and amazon and i think we'll see a very strong referral to the ftc and doj to look at spinning out some of these companies, in

particular facebook and whats p whatsapp >> we appreciate it. after the all-time highs and after the run they've had, where else can investors be looking for opportunities right now? let's bring in blorina and craig columbus it's good to have you both here. blorina, what railroare you tel clients? >> we tell clients if you think this is a risk to take, that's the worst in the market up and down the worst thing you want to do is take action when it's not time to do so. >> but are you waiting for big tech, are you tactical more stock pickers? explain what's happened with the market caps that we've described does or doesn't affect the type of advice you would give >> so specifically to fixed

income, we tend to have our fixed income be very high quality, and we have remained that way we're not looking to generate yield by taking additional volatility or risk with fixed income the reason for that is just because we don't feel fixed income is as highly rewarded as equities would be. that being said, we stick with very high quality fixed income the yield was showing 76 basis points the equivalent nominal amount we're getting is six basis points why take that risk to your portfolio? you want the risk to behave very differently from your equitable portion so you have the ability to balance the down markets. >> that's a good point it's amazing you get barely any compensation for a completely different product. craig, let me bring you in kind of the same questions

what's your advice to investors these days and do you hear them concerned about the size of some of the market caps here in big tech >> sure. i think there are two real dominant themes. one, tech and biotech medical devices, you're looking for slow growth in a growth world tech gets that in the benefit in work-from-home, one-time stimulus payments were very important to that consumption boost we saw on some of the big tech names we need to find a way to get 60% votes in the senate. the other thing i have liked is the weaker dollar. the supply of dollars have gone up so much, you no longer have the yield advantage in the u.s., and you don't have the growth differentials. i think weaker dollars is a longer term theme, and you say what benefits from that. that's a cyclical group that has

outperformed the other cyclicals like financials and energy and industrials, or you could look at things like the emergent where china also benefits on the weak dollar and things like gold and tips >> it's good to hear you tie to back to the weak dollar, because that has been more of a focus. do you think the whole trading thing you outlined, that could be a paradigm for quite some time >> i do. when you look at weak dollar periods, they tend to be multiyear periods, and i see no the fed anchoring rates with the supply dollars continuing to go up on the fiscal side, if you think about it, we are running stimulus that's 13% of gdp versus the chinese which is, say, 5% of gdp i do think we're in a multi-year trend of weaker dollar topping the stronger dollar, so i think it's a multi-year trend. >> thank you, both

blerina and craig columbus, we appreciate it. coming up, homebuyers are taking advantage of low record interest rates, but those who want good prices aren't reaping the same rewards plus, away from home is dominatido falling while staying at home dominates again. we'll dive into both, coming up. save hundreds on your wireless bill

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switch and save hundreds. xfinity mobile. record low interest rates are helping homebuyers lock in years' worth of mortgage savings. it turns out pricier homes aren't seeing as big a benefit it's now more than .4 of a point higher than a normal conforming one. let's bring in greg mcbride. he's chief financial analyst for bankrate.com greg, it's nice to have you. this is peculiar what's going on? >> you're right, it is peculiar. this is the first time we've seen this kind of phenomenon for about seven years. for six years, jumble rates were running lower than conforming rates. when they started buying

government-backed loans, the rates for those loans plunged. jumbo rates, not so much so at the beginning of the year, jumbo rates were lower than what we see on conforming now, as you noted, more than .4% higher on average. they are higher rated in high priced markets if you're close to that threshold, i think it makes sense to looking at making a larger down payment so you can borrow the entire amount at the lower conforming rate. many of those rates well below 3% >> do you think there is any sort of problem with availability of these jumbo mortgages? anecdotally, you hear some banks say -- i think wells fargo might have been one of them kind of examining the product. any reason why buyers of kind of those mega dollar homes might need to have a little extra time

or concern about getting that mortgage >> definitely fewer lenders in the marketplace. you know, without a viable secondary market and with the federal reserve basically making the government-backed loans the only game in town as far as investors are concerned, lenders didn't want to get stuck with a hot potato, so a lot of lenders stopped taking applications for jumbo loans, simply because they weren't so sure they were going to be able to sell it. however, the credit is still available. you're just going to have to search around a little bit more. not as many lenders are offering them look at local community banks. we see a lot of very competitive rates offered in that case, and they hold those loans in their own portfolio oftentimes, so they're not dependent on selling that to somebody else. >> i've heard investors kind of saying that as well, that those local banks like some of that exposure no one is crying for people who are buying a million-dollar home and facing a higher mortgage rate i'm sure they've all sort of come down, but is there as much dysfunction in the market that it would warrant some kind of

fed response or intervention >> i don't think we're there when you look at jumbo rates, they're still low. they're still well below 4%, still in the mid-3s in some cases. rates on jumbo have come down, they just haven't come down near as much as the lower conforming rates. in the financial crisis, these spreads blow out it took five years for it to normalize, so this isn't something that's going to fix itself overnight >> we spoke with diana olich last week about how 2.5% could be the next stop what would you tell people who are thinking about a refi or a purchase >> we are seeing rates trending lower. when you look at the treasury rate right now at 50 basis points, or whatever it is, that bodes well for mortgage points the uncertainty and weakness in the economy and the uncertainty about what the virus is going to do with to the recovery, all of

those rates are dragging it lower. >> but you're not committing to 2.5% you're leaving the door open >> well, there are 2.5% rate quotes out there that are available. if it goes lower, you'll definitely see more of those i think the odds are in that favor. but, again, no guarantees. >> absolutely. well, it's a discussion i know many, many people are having, trying to figure out just how low it will go greg, thanks we appreciate it >> thank you, kelly. coming up, was it all talk a slew of companies reversing course and returning to advertising after boycotting earlier this month we'll debate what that's telling us about facebook's power. a company becoming a charter bank opening the door for silicon valley players we'll tell you what that means for traditional banks. remember, you can listen to us live on the cnbc app. "the exchange" is back in a couple what do you look for when you trade?

i want free access to research. yep, td ameritrade's got that. free access to every platform. mhm, yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work.

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welcome back to "the exchange." we are keeping a close eye on markets now. as dom laid out at the top of the hour, we were coming back from the lows today but struggling to hold there good news, the nasdaq has turned back into positive territory 22 points a quarter of 1%. the dow is down .9 of a percent. think of how that would look without apple. the technology-oriented ones are again leading the way. that includes discretionary in leadership up 1% today worst performer, as i just mentioned in the case of chevron especially, energy second day running now. that sector down almost another 2% let's get to sue herera for a cnbc update now. sue? >> hello, everybody. here's what's happening this hour dr. anthony fauci told a house panel this morning that he's optimistic a safe and effective vaccine could be available by next year. >> we feel cautiously optimistic

that we will have a vaccine by the end of this year, and as we go into 2021 so i don't think it's dreaming, congresswoman, i believe it's a reality. and will be shown to be a reality. former ku klux klan leader david duke has been banned from twitter for breaking the company's rules on hate speech the company didn't say exactly what he tweeted to provoke the ban, but he clearly broke the rules on hate speech conduct, end quote. regis fill been was laid to rest at university ofnotre dame the prooivate ceremony took pla on the school's campus he died one month before his 89th birthday. he was a great guy and will really be missed >> absolutely. i love seeing that old footage, too, in everyone's outfits and

the hair it's a reminder of how many different eras he was popular through. >> he was basically a man for all seasons. he did so many different types of television and entertainment and news my husband actually worked for him in news out in los angeles where he started so there you go. >> well, rest in peace, regis. sue, thank you very much >> you got it. in a landmark move, one fintech company is branching out and getting approval for a national bank charter. could mean big changes for the banking industry overall kate rooney is here with the details for us hi, kate >> hi, kelly they were approved by regulators to become a full-scale bank. il it's a landmark case and could pave the way for other finance companies to do the same dozens of finteches have popped up with banking products, robin hood, sofi, venmo.

critics say it's unfair. if it walks like a bank and talks like a bank, they should deal directly with their regulators add volunta-- advocators say its great, though. square has a traditional approval for an ioc or loan charter. i spoke to ceo collin walsh this morning, and he said this is the way for them to lower costs and that other tech companies might be emboldened, but he says there are no shortcuts, it is a lengthy process. so words of warning there from the ceo. back to you. >> also words of warning from the whole banking industry you mentioned square, kate that's the one i was thinking that went down this path how quickly can we expect them to be on the scene >> they're looking at 2021, and

they have conditional approval they'll have to get a couple more steps in there. square would be the biggest, bear is a smaller startup, but square could get into other areas. it improves the economics neefo these guys >> kate, thank you very much kate rooney with the latest there. coming up, the nba kicking off its season last night, betting that its orlando bubble won't burst and using lots of tech to make it a better experience for viewers we'll look at their plans and if they can avoid a bear-like situation. we'll talk about the surprising demographic that's boosting growth, next. up 32% for pins. back in two. ♪ [ engines revving ] ♪

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welcome back let's catch you up on a couple stories that should be on your radar today. it is time for "rapid fire," and here to take on the headlines are seema mody, eric chemli and julia boors stin thank y -- boorstin. global monthly active users surged almost 40% year on year to more than 40 million, so the stock is up more than 30% today, easily its best day ever julia, you spoke with the ceo, right? is this sustainable? >> unfortunately, i did not get to speak with the ceo, but i did list ton the earnings call and the ceo had lots of interesting things to say. here's the thing, kelly. in july they saw 50% revenue

growth, and for now they project that in the third quarter they'll have 30% revenue growth. there are two things at play here number one, they are benefiting from the facebook boycott. they're saying they're watching to see how much of those increased advertisers and increased spend is due to the boycott, but they've been taking this it as an opportunity to talk to brands about the fact they don't have that messy political ad conversation on the platform, and also they're seeing a surge in younger users. they're seeing twice as much growth in users under age 25 under age 25 and over age 25, people using it for home projects, crafts, et cetera. >> is it true men are using it, too? >> it might be i'm not using it, but i can see if you're working from home, there's nobody around, maybe pinterest is kind of a guilty pleasure that you're looking at to try to figure out how to get that home gym going or some manly projects in the house.

i can see how that might be helping in that growth more with the guys than only the ladies. >> we talked about people's awareness of it, especially younger users, but these are so unique, i wonder how sustainable they are >> the company says on the earnings call that while people are spending time at home, their interests in arts and crafts has increased and they're spending more time on pinterest i wasn't a big fan of wipintere, but i will say that's changed now that i got engaged i'm collecting those ideas mostly for my mom. she has very strong opinions on where it should be and what i should be wearing. but either way, i was looking for a platform where i could consolidate all those ideas. really, it's pinterest >> julie, i will say this, but for wedding parties, i used pinterest a ton.

in the last several years since then, i really haven't done much with it. >> i'm a perfect example of somebody who has been using pinterest since coronavirus. there's many recipes on there, home projects. internationally many more menus pinterest than they do here, and a huge growth has come from overseas if you're looking for home improvement, if you're planting a garden, those are the kinds of things pinterest is incredibly useful for >> eric, we'll get you on pinterest for a home gym analyst. expedia today, here's one stock that's not popping it's no secret travel companies have been hit hard by the pandemic the ceo didn't mince words when describing the damage to expedia's earnings he said the second quarter showed the worst quarter in the travel industry and expedia was

not spared they did have some areas that were a little bit stronger >> in our conversation today with steve of "squawk on the street," he said, yes, we're seeing a lower platform, but he did disagree with brian chesky a couple years ago where he said the shift from vacation home rentals is permanent and not temporary. steve kerr win pushed back today and said, i do not agree with that when you look at gross bookings, expedia still makes a lot of its bookings from hotels, from air travel while growing still a small piece of the pie that seems to be a big opportunity for expedia to grow that platform. and how do you incentivize more home buyers to list their homes? that's something they're trying to work on >> anecdotally around here, more people are kind of discovering vrbo for the first time. and on one hand he's saying to ai

airbnb, no, people will use our platform, but yet vrbo he's kind of encouraged. >> you have these diversified portfolios, so if one isn't doing well, the other isn't doing quite so well. i think this goes back to normal when covid goes away it's hard to make these projections in the future when we're still in the middle of shutdowns. you can't even go to the office. your travel is very weird. there are ways you can travel by driving than flying or goes on cruises. >> i think they're probably right that we'll go back to something more like normal, it's just going to take a while >> absolutely. i think there are two different things we're talking about here, kelly. maybe it's 18 months from now or two years from now eventually when things return to nor

normal, inc. there wi think thee pent-up demand for travel. i've used vrbo and airbnb, and i think there will be people saying i haven't tried this before, i'm trying it now, because right now it's my only safe option. then how many of those people are con vertverted, and to seems point, will we see more people rent their houses on those platforms because they're more controlled >> next friday after they report earnings, we'll see if he agrees with chesky or airbnb. >> we mentioned facebook advertising companies. they reported their slowest revenue growth since ipo in earnings last night. the stock is on its best pace since march and is looking to lock in gains of 50% this was all in a quarter where big companies boycotted facebook and chose not to advertise on a platform, but fast forward and

some of those companies are returning, julia we saw it with cambridge analytica. we're starting to see it again >> what we saw here, kelly, was really the biggest boycott facebook has ever faced. it was really intended originally only to be in the month of july. what facebook told us was in the month of july, their revenue growth of roughly 10% was consistent with what they saw in the second quarter, and they expect that to be consistent throughout the third quarter facebook really indicating if they are feeling an impact, it's not meaningful they made a big deal on the earnings call about facebook strength being at small businesses, and now they're tir hundred largest advertisers represent 16%, down 20% from a year ago we're starting to see those advertisers who boycotted in july make a return they feel like there was a productive movement going on there. some of the other ones say they're going to extend the b

boycbo boycotts until august, so it will be interesting to see how they sway the return of these big brands >> eric, i think they remind everybody they might be one of the biggest companies in the world but they're promoted by small businesses in advertising. >> millions of small businesses. direct consumer play, a lot of local businesses on there. you've got your community right there in a lot of community-based groups, so if anything, you're not going to see these guys boycott because this is a main channel a lot of them have. if it's not facebook, are they going back to the church bulletins, the local newspapers, if those things even exist they may not get a chance to boycott. maybe they're looking at yelp if they boycott >> again, it goes back to pinterest and the sustainability of their strong earnings is not just on the user on the demand side but on the advertiser side and the boost they got for people who might have temporarily left facebook. >> it boosts facebook's platform at a time when companies aren't providing any guidance

what stood out to me was they said revenue in the first weeks of july was in line with the growth rate of 10% again, a pretty optimistic picture there. >> again, finally, with everything going on in the sports world, we have a couple different narratives emerginemeg basketball is back the nba restarted its season last night julia, do we have any ratings numbers yet? >> i haven't seen anything official yet, but we expect there to be huge pent-up demand here, kelly. people have been waiting for so long we saw a huge surge in ratings for baseball now the popularity of basketball is expected to steal some of those viewers over from baseball obviously it's very unusual to have so many sports overlap like this but i think when it comes down to it, the big question is what's going to happen with football >> for sure, but even before we go down that path, erica, it was interesting to watch the games last night where they had those virtual fans, and i think i read today those fans can be get, quote, unquote, booted out of

the stadium. >> that is a microsoft teams call you could basically say to your season ticket holders or certain fan groups that are really loud, hey, you're going to be in our 320-person group we're doing a teams call and you've got that virtual background that looks like a seat, so you have to behave nicely let's not get x-rated, let's keep this basketball appropriate, and we've got moderators who are generally team employees they'll bounce you from the room, they'll get a guy from the virtual waiting room to take your seat if you get out of line that's what you were seeing yesterday. it's a giant microsoft teams call in the background >> it's interesting,i think basketball so far, it's been a day, but they're trying too void what happen -- avoid what happened in baseball and they're having outbreaks what's that going to do with baseball and the nhl >> the nhl is doing a bubble in

canada today, the mlb is doing a baseball they can do games every couple days the problem with baseball, you're playing a game every day. so baseball and football, it's hard to do it in a bubble. where do you have 15 baseball fields and football fields of professional quality all in the same place that you can play all at the same time that's the problem for those two sports it's not like they're trying not to do a bubble, they literally have no place they can do it dr. david ho, who is an nba advertise es advertiser, we know his work with hiv and aids, he says, i don't know where they can play in a bubble. if 16 teams out of 30 aren't playing today, we're running out of teams here within a week of baseball >> yikes i don't think seema is one of those virtual fans yet >> you think i'm sold, kelly i think it seems like a virtual, futuristic experience, and i think i've watched everything i

want to watch on netflix at this point. i'm actually waiting for the u.s. open. >> i appreciate it, guys take a look at this mystery chart. the stock is up 120% this year it's not a home trade but not a tech trade they detected 30% of the home's rental units have expired. it could cause a new housing crisis in america. 'll explore that next.

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during the pandemic, estimates say a total of 40 million people faced potential

eviction add that to the expiration of the enhanced unemployment benefits, and you can imagine the damage could be far worse. economists say there will be a wave state-by-sta by state, couy county the ceo of lending tree is here. is there any thought that the county is going to extend this moratorium >> i'm not sure. it's very difficult to say what the fed is doing hopefully they get their heads right and get it together, because this could really be catastrophic it extends beyond just the rental industry, it could affect the single family housing market and the economy as a whole >> of course so now that it's expired, do you already see movement on this front, or do you think people are taking a wait and see approach >> i think there are evictions already in process, right? what happened in many states is even though there was a

moratorium on actually evicting somebody, you could actually proceed with the court case. most states you need a court case to evict somebody so there are already evictions in process some of those would have been probably happening without covid, and it's not clear how many of those are covid-related. so yeah, they're showing evictions in process with the end of the moratorium, people are getting kicked out of their houses >> how do you think the economy will be? it's one thing to evict somebody to get another tenant in, but we face a difficult time, i would imagine, for them to find other tenants right now. >> there is not great data around this. there are some anecdotal things i have come across where some landlords are being helpful to their tenants and some are not but certainly, if you kick a tenant out, i don't know where you're going to get a new tenant at this time this is why, you know, this can create a bigger crisis it could morph into a financial crisis, because the renter's

payment is the landlord's payment that they pay the mortgage with. that could lead to a decrease in home values even in the owner-occupied market, because these markets have gotten more intertwined since the financial crisis >> it's a great point, not to mention just talking about something of this scale will have more ripple effects what do you think could happen at the biggest scale >> that's not something i've looked at in detail. i really think it's a national problem so it needs a national solution from the congress we have seen in different locales, obviously people have different laws here in new york. there was a moratorium put on by the governor, and in every state and every city, there is a patchwork of different, you know, kind of laws that people are using. so, really, it's necessary that we have a federal plan just like we didn't get a federal plan to deal with the actual health care crisis, we need a federal plan to deal with this rental cries

or it's going to get worse >> and this moratorium was meant to get us through the worst of the coronavirus and it's renewed spread that puts us more at risk, right? we're not through to the other side yet >> absolutely. a lot of measures that were put in place by congress, by the fed, was supposed to be kind of this bridge, right, to a few months later when hopefully we would manage the health care crisis a little better unfortunately, that didn't happen we put the most consequential decisions in the hands of the least capable people, people have suffered and lost their lives. people will lose their livelihoods, people might lose their homes. it's really tragic when you look at how well other countries have handled this crisis that the united states has failed some dismally it's sad i don't know how else to characterize it. i hope congress gets it together we need these unemployment benefits extended. we need a new moratorium on evictions. people need a lot of help out there or we're all going to be in trouble we're all in this together and really, you know, we need the

government to step up. >> and the house just canceled its august recess, so perhaps this will be part of the action that we expect is still come og that front tendayi, thank you very much, we appreciate it. >> thank you chief economist at keeps more people in their houses for longer, the home decor store at home have seen sales surge. we'll talk to the chairman and ceo about this phenomenon next stay with us

welcome back. if you're one of the many people who worked from home and realized many this room needs an upgrade, the pandemic helping

the at home group see a 42% jump in sales the stock soaring on the news it's up 40%. it's more than 770% since then with me now a at home group ceo. it's good to have you here welcome. >> thanks for having me. >> cwhat exactly are people buying who are your customers you must be winning share from somebody >> we're taking share with 51% growth we're grateful for the customers that are coming in we have a lot of new customers as well as existing customers coming in. they are buying seasonal but a lot of every day think about home office. we're all stays at home as well as cooking we're all cooking our own food now as well. everything else for the home because you're look around your house a lot more and saying this is what i want to update we're grateful they're coming to our shore. >> what's the share of physical

versus digital >> up until january we were only in the stores. we started an e-commerce test in january. when we saw traffic decline traumatically the first week of nar ch becau march because of covid crisis, we went to buy online and be in the store and we added delivery as low as $10. we know some people didn't want to leave their home. that's a large portion of the offering now i would say stores have opened they are a lot more comfortable in store our stores are large you can easily social distance they're 100,000 square feet. we now offer all solutions to buy. >> you are based in texas. i would expect you would see more of a head wind that the south and west have had spikes recently where we saw ours week months ago.

>> we have stores in 40 states we have over 30 stores in texas. we have noticed from texas, georgia, florida that case counts have grown, our business has slowed a little bit but we're still double digits. solid double digit in those states even through the month of july in july we had over 40 comp for the total company. >> let's talk about the business model for a moment >> what do you expect your balance sheet to look like as you come out of this crisis? >> we focus on liquidity we wanted to make sureliquidity. we really did a great job. we generated well over 280 million in liquidity

>> what happens when people have gone i pretty much did every room in my house i don't want the look at anothe pinterest post or look at a hammer for five years. are you prepared for what it looks like >> we file like it will last for some time. we're not sure a vaccine and when does it happen. there was a multi-year benefit for our industry wee feel that will be the same for us as well we'll be taking more share >> how big do you think you can get? >> we're at 219 stores we think we can get to over 600. we have a lot of head room >> interesting you've come on the scene in a big way this week especially with the earnings and with the rally since the lows

it's quite a turn around story we appreciate your being here. thanks so much >> thank you let's do a quick check on the marks before we go where we're continuing to trim our losses watching the nasdaq as well which turned back into positive territory. coming up in next hour of power, these are the spoiled dogs of the producers here on the exchange and power lunch as people keep spending on their animal, pet stocks are soaring. we'll talk to the ceo of petco about that how they are weathering the pandemic and so much more. i'll see you on "power lunch" on the other side of this break stock slices.

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welcome to power lunch we have a split decision tr the market big tech and stay at home are taking off should you keep pile sboing in look elsewhere for opportunity we're all stuck at home with our dog, cats, fish, giant bunny, maybe a snake or two. that's driving a spending boom on pets and pet is supplies power lunch starts right now.