i think it's coming back it's my go trade >> okay. n najarion, what do you have for us thanks for watching. "the exchange" with kelly starts now. >> thank you, scott. hi, everybody, on this friday. here's what's ahead. the jobs report was better than feared after that bad adp earning. will it take the onus away from a stimulus deal? nancy pelosi is meeting with steve mnuchin any moment for more talks a big loss for the quarter and massive marketing cuts investors are sticking with booking holdings we'll speak with the ceo ahead trump tackles chinese tech main street says no thanks to

the fed and ready to take on their industries dom chu with the numbers >> the confluence of numbers and the economic data is why you're seeing modest losses for the indices here we're trying to figure out why the market is at near record highs for most indices the s&p hovering above 3300, off about 2/3 of 1%. it has been the upper performer as of late what's happening with retail stocks specifically? not necessarily the large cap ones, but the spider retail ticker is up in an otherwise down day this also treats some of the smaller retails on the same level as some of the bigger ones out there. this has been a 93% run since covid, and this etf, six straight weeks of gains so far

and the stocks of the day, plural, look at transportation specifically ups and fedex both of those shares higher today after ups says, kelly, it's going to start charging a surcharge for certain types of delivery packages and high volume ship ppers carrying fedex along with it ups a key focus today, kell. back over to you the july jobs report was better than expected with non-pharm payrolls increasing. this was despite a resurgence of covid cases across the country the debate comes as washington continues to debate the next stimulus package with jobs a major sticking point nancy pelosi and secretary mnuchin are meeting this hour. we'll bring you any progress we get. joining me now to discuss is secretary scalia

happy to be back with you. sdp >> thank you for having me >> we could be below that point next month >> that's right, kelly i was projecting that i believed we could get below 10% unemployment by the end of the year that was perceived as optimistic, aggressive we're more or less there right now. so this is a very encouraging report on the heels of excellent reports for may and june as well we're ahead of where virtually anybody expected us to be, and as you noted, the july jobs report included a period where three of our largest states, california, texas, florida, were having to put in place some restrictions because there were rising cases and hospitalizations we were facing some headwinds, but nevertheless, we posted some very good numbers.

let me add we have work to do, still. there are still too many americans out of work. we want to support them and get them back to work. >> there is one major headwind and that's the explanation of those jobless benefits this is several million dollars' worth that was going into the economy. we don't know what the next bill will include do you have any sense of what impact that has on the labor economy? >> the $600 benefit was something congress did back in march with the president as we were closing the economy of course, we're in a different place now. it was agreed at the time to have that expire at the end of july the republicans, as you know, kelly, actually have been trying to keep that benefit in place. they tried to have it in place this week while negotiations continued. the democrats declined to leave it in place for this week, stopped a motion that would have kept it in place while all negotiations were ongoing. i think long term, as important

as it was to have a very substantial benefit when the economy was closed, i think with the economy opening the way it is, that number is too high. massachusetts, on unemployment with a $600 a week benefit, you're getting $75,000 a year on an annualized basis. in oregon it came out to $65,000 a year on an annualized basis. we would like to see more stimulus we don't think that benefit over a long period of time is the right way to deliver it. >> it's a generous benefit, but again, it was intended to be, and we're in this odd period now where the spread of covid has been worse this summer than anyone thought, but at the same time the economy has more momentum than even a couple weeks ago we might have imagined i want to talk about the fact that the unemployment rate for blacks is about 14.5, for hispanics 13%. there's been a lot of focus on the employment gap and the wage gap. we have congress want to go add

this we have joe biden talking about making this the feds' accountability in the future what do you think should and can be done to narrow these gaps >> kelly, i want to underscore how inclusive president trump's economy was through february when the virus came. it's not just that we had an extraordinary number of jobs being created, 7 million since he took office, or unemployment that was at a 50-year low. it was also an economy where we saw all-time lows of unemployment for african-americans and hispanics and we saw a rise on the wage scale. that was an economy that was delivering incredibly well for african-americans, hispanic americans. we're going to get back there. that is the goal the same policies that delivered that of a light tax burden, eliminating unnecessary regulations, that's what's going to help those populations more than any other thing

yes, the african-american unemployment number did come down .8%, which is a good reduction, but there is work to do on that front, too. i think a lot of those workers were among the last hired and sometimes the last brought in are among the first that, unfortunately, get laid off. but we do see people coming back to work now in record numbers, and i think that record is going to continue to go down along with the unemployment rate for other populations. >> the final question, and it's more on the inflation side let's talk about wages more broadly. what do we see in this report, and you guys also do the cpi, the ppi reports. those levels have been extremely low lately there are certainly no inflation pressures now, but on the wage side of things, are we seeing any evidence that there might be some shortages or labor pressures developing as odd as it seems to ask at a time with so much unemployment, what signals do we have there? >> it's a good question, though, because the economy is so dynamic right now.

changes that might have played out over a longer period of time are happening in some cases in a more compressed period the numbers that we've put out would indicate that wages are higher now than they were a few months ago, kelly, as you know, but that's just a reflection, i think, of the composition of the labor force, that it was lower wage jobs that were lost that's why that $600 a week benefit ends up being a bit of a distortion because it's the lower wage jobs that end up being lost i don't think we're seeing any signs at this point of inflation in the wage stock. >> secretary scalia, thank you for your time today. >> thank you let's turn now to broader markets. look at the reaction of the news going on today the s&p and the dow are having their best weeks since june. allen boomer and julia coronado. welcome to all of you.

nancy, first to you. how much of the jobs number, the kind of stronger -- the better numbers we've seen on that front sort of so far this week, how much of that is already priced into the stock market? it would seem the answer almost has to be 10%. >> ke -- 100%. >> kelly, thanks for having me we saw the futures, but what's driving the market at this point, in our view, is liquidity. you're still seeing 4-1 investors putting flows in bond etfs over equity etfs. money markets are up 26%, so every time we start to get a selloff, you see buyers coming in and driving the market further. which is not to say it's not based on fundamentals because earlier season was better than expected, and the guidance being provided when it's being provided is pretty good, so i'm

optimistic i think we need a correction, which is just a correction, but i also think that this rally could have legs, and we wrote a piece with that title a couple weeks ago. >> it's a good point about the money supply, with m2 up 25% year after year, that's a powerful boost alan, do you think the gap between main street is closing >> today was a good number i think the market is selling off a little bit today because, you know, when the numbers are good, when the data is good, that means that the stimulus that comes in the next round might be a little less i do think the market has gotten well ahead of the economy, although i do agree earnings have been strong, revenue, you know, has been strong for public companies. it's just that i think the market is pricing in a very rosy v. they priced in a vaccine, i think they priced in that the

vaccine will be widely accepted and used i think the market is pricing in school openings going smoothly so i think, again, there is a lot of optimism that's priced into the market, but it makes me a little nervous today >> that's why you're avoiding airline energy banks, sticking with some of the tech names, i know julie, let me turn to you. as you just heard from the labor secretary, he thinks it's all kind of going along more strongly than we would have realized, even through july. is there a risk that we see a big sea change in august >> yeah, the risk is definitely tilted in that direction it was a solid report for july but it was a loss of momentum as well and if we look at the sectors that saw the biggest loss of momentum relative to june hiring, they are the sectors most exposed to social distancing, most impacted by the resurgence in the virus and the renewed restrictions and the slower pace of reopening so we're still very much in the thick of this. some of the high frequency

measures actually one track by st. louis said predicted it very well is showing a slight decline in august so far we only have a couple weeks of data but i think the risk is definitely tilted toward this loss of momentum so to extrapolate today's report forward, especially if it derails the stimulus talks and leads to less support, even as the virus is raging, i think that would be probably a mistake to make that extrapolation >> and that, nancy, is the quick last question i want to get in what would happen to the market if the stimulus package doesn't come together or is significantly less than expected what kind of market impact do you expect it would have >> i think we would see a selloff, kelly, and actually, i think that would be good news. we still have insurance on our clients' portfolios because we're well aware the election

calendar is also looming and volatility is likely to increase while it wouldn't be good news for individuals, it would probably get the market, prune it back and give it an opportunity to grow and move up from there >> interesting we'll leave it there and look forward to more news on that front from d.c. maybe this hour or next. nancy tengler, allan boomer, julie coronado, thank you. >> thank you booking holdings which also owns kayak has taken a huge hit. it had a 91% drop in total bookings this latest quarter but stock is up today and steadily climbing over the past three months the ceo joins us next. and ford replaces its ceo and falls behind in its ambit n ambitio ambitions. is it time for the ford company to take the company private? and climbing the wireless ladder with verizon. that's all ahead here on "the

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only with xfinity mobile. call, click or visit a store today. welcome back to "the exchange." shares of booking holdings are slightly higher today after the company reported second quarter results that were better than expected, even though they included major drops in gross bookings and room nights booked

due to major decreases with the pandemic seema mody, it's good to have you here get us started >> on the earnings call, you said it could take years, not quarters, to get back to pre-covid levels but your stock is up about 60% on its lows with the hope of a vaccine hitting the market walk us through your working model. what happens when a vaccine hits the masses how soon could we see a rebound in not only corporate travel but leisure travel as well >> i think that's important to say, because when a vaccine is approved does not mean immediately everybody gets it. the experts say it's going to take time once it's approved to again be distributed you're talking about hundreds of millions of billions of vaccines that will be needed, probably. so this is going to take a long time even though the experts are

saying hopefully, hopefully we'll have a vaccine maybe before the end of the year, certainly they hope by first quarter, that doesn't mean everybody gets their shot tomorrow and then feels safe to travel, which is why we say it's not going to be quarters, it's going to be years before a recovery >> i want to get your take on vacation rentals big debate taking place there. we're seeing explosive demand as you saw as well in this quarter. is the shift away from hotels to vacation rentals temporary or permanent? i spoke to a ceo of expedia las week he said it's hopeful you'll see a return for demand in big cities what's your opinion? >> first of all, hotels are not going away about 40% of bookings were hotel accommodations, which was an increase from previous periods, but the fact is we don't expect hotels to go away. here's the interesting thing,

though we've seen this trend for a long time of more and more people interested in alternative accommodations which is why we've gone out and got more supply in that area, because we're realizing people are seeing that as an attractive alternative. certainly the pandemic accelerated that trend, so we brought forward in the future that type of accommodations. but after the pandemic, you may have people saying, i'm going back to doing it the way i used to do. i think people are thinking, gee, i'm going to include that in my possibility set. in addition, with people now working away from the office so much more and comfortable with that, if you're working from home, you can work from a cabin by the mountain, by the lake, you can work from a beach, a condo or something there, so

they work on a friday, but they're working from home. that's not more comfortable tha dual occupancy hotel room. >> you said you think this will be years, not quarters, of a rebound. when do you think you might need the pre-covid levels of employment that you once had, if ever >> well, kelly, that's a very hard thing to project. we're not trying to make projections that far out we are building our business, resizing it, for not only the business today, but what we think is in the predictable future that's really what we're doing you saw those numbers in terms of the drop in our business, but we're certainly not cutting the employment levels anywhere near that, and that's because we are anticipating we will have recovery over time but i can't give you a projection in terms of how many

people by when what i can say, i am very confident that in the years we will have a recovery and we will be doing better than 2019 at some point in the future i just can't say when. >> glenn, as the u.s. administration takes aim over companies like tiktok, are you rethinking your strategy you've certainly invested a lot in companies like adidi and others >> no, and this is not something that's come out of the blue. there have been a lot of, shall we say, tensions between countries for a long time, and we've been talking about a splintering or fracturing of the internet in different areas. from our point of view, though, that's detrimental to the efficiency of what we're trying to do. you know, to have to put together different types of apps for different types of regions

because there are different rules are just more expensive and makes for more friction. obviously, we would like everyone to work cooperatively together so we can all operate in an area that's easier, but we don't make the rules, we just follow them. >> we'll see if that narrative changes. all eyes on washington and beijing right now. glenn, appreciate you joining us today to talk all things travel. glenn fogel. >> thank you both for bringing that to us the president in a tech battle with china, saying he'll ban tiktok what do ford and citigroup have in common we'll look at the quiet climber. ba ia up ckn cole

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let's check in with sue herera hi, sue. >> hello, everybody, this is what's happening this hour the uso has put sanctions on carrie lam the sanctions freeze any assets of those officials and generally bar americans from doing business with them president trump imposed the sanctions under an executive order last month to punish china for imposing its newest security law. cnbc.com has more on the political strains between the u.s. and china pfizer has agreed to manufacture and supply gilead sciences enviro drug remdesivir. pfizer will manufacture the drug at its mcpherson, kansas facility software company atlassin has told 500 employees they can work from home indefinitely.

all the companies' locations, including its headquarters in sydney, will remain open for when employees want to come back it joins a growing list of companies exploring work from home options that's your news kelly, back to you thank you very much. we're looking at pegasystems the company doesn't get nearly as much attention as its widely known competitors, microsoft, ibm, oracle. its customers include everyone from the government to citigroup to google to aetna it has 500 employees and the stock has no sells on the street it has a market cap of $9 billion now. it hit a yearly low of $29, but it's climbed back up to 2016 that outpa dsoutpaces all of itr

competitors. now ford announcing a change at the recommealm this week kce hacker being replaced. they said it could be time for the company to go private, especially if they want a shot at tesla for more i'm joined by john stahl, the business columnist at the "wall street journal" and jim lebeau john, make your case >> he's the billionaire founder, he's a visionary, and there is no doubt that he was way ahead on a lot of things that were going to happen, not only in the auto industry but business in general. he was talking about green facilities, the green roof on the rouge was fast

not first, but fast with hybrids. bought an electric car company in early august. so bill, who remains the chairman of this company after 20-some-odd years, has not transformed from a motor company and the business model is still the same when i started covering it in the year 2000. trucks and suvs provide most of the profits. we haven't seen a real change in the other products and in the portfolio that ford offers investors have been a big part of this story. clearly the ford family owns a big chunk of ford, but not all of it, and this company has been caught in this cycle for decades trying to please everyone but the chairman >> does the family want that remember, the b shares that the family owns, they spin off a nice dividend and have for a long time, and when you talk about a multigenerational

company like this, you've got can you say ins, dozens of can you say ins arou-- cousins, not the detroit area, that benefit even though the stock hasn't done anything, they still get a nice benefit and have been for years. it would have to be bill ford convincing the rest of the family, look, we have to pony up some cashier because we have massive debt and this will pay off in the long run. i think people will sit there and say within the family, is that really going to happen? is that the smartest move at this point >> and i saw where you spoke to general managers where they said they don't want to just beat tesla, they want to lap it i have trouble not laughing at that >> it depends what you mean by lapping tesla. if it's in the technological sense, yeah, it's a big leap for

them to have products as reputable in the green space and the tech space as tesla. if it's the size of the balance sheet, the ability to throw off cash by building highly desirous suvs and pickup trucks but being able to put that in a sustainable business model, that's where the company thinks they can move quickly. they have the model e on the deck here to bring out i don't think they're looking to go all electric, i think they're looking to be extremely well regarded in the tech space, the sustainability space and eventually the private space you can pay the family in ways other than public equity right now, and phil, as you know, the family is asking bill to buy their shares from them in large quantities >> you bet >> he is eating up an enormous amount of that class b that he could then convert into some other entity with private

investors. a trillion plus dollars on the side with private investors that would be happy to take that. you can then say to the family, look, we're going to do this a different way. >> phil, let me ask you, we don't have a ton of time left, but if ford wanted to do something really big and splashy, why not buy nikola? >> the question becomes what do you get if you buy nikola? you get a business plan. they have no revenue right now they have ambitions and they have a business plan for building high fuel semis as well as a battery electric pickup truck, but otherwise, if you're ford, you're going to be making an electric f-series so you don't need the pickup truck from nikola and do you want to get into the hydrogen fuel semis nikola is really an energy play more than it is an automotive play i would think there could be other places that ford could

invest their money if they wanted to go that route. >> buy chargepoint and use that as a vehicle to go public in four years >> maybe they just need to change their name. john, i wonder if a name change is not in order, given everything we're discussing. >> no. >> i think the ford name is a huge equity. >> on the cars themselves, but as more of a holding company, yeah >> i think a narrative change is what's needed. do not change the name of the company other than to take it from dell computer to dell technology, but he needed four years to change the story. that's what they need to do. they need to change this old story into tech leadership >> i love this discussion and this debate. i've gone way too long but it's been a pleasure. thank you both very, very much john stoll, you can read his piece in the "wall street journal," and phil lebeau.

secretary treasurer steve mnuchin is saying right now the democrats' proposal is a nonstarter we'll bring you more headlines the market has weakened considerably in the past 30 minutes or more. we're watching the diaw about 24 points right now coming up on "the exchange," the president is also beginning a tech battle with china the feds' main street lending program is kind of a bust. after 100 years amc is shifting strategies and trying to shift to streaming more pfible anrotath ever. we'll tell you who in "rapid fire" right after this

welcome back let's catch you up on a couple stories that should be on your

radar right now. it's "rapid fire" and here to break down the headlines are vera debosa. the president is threatening to ban tiktok and the owner bytedance. tiktok has a bunch of video game connections and things like that it's the latest step in the deteriorations between the u.s. and china. we're glad you could bring us more context on this reportedly this falls after the failu failure. >> it's amazing that wechat has fallen under the radar it's similar to tiktok but the

implications could be much broader. it's a nearly $7 billion market cap company and its investment portfolio is bigger than that of soft stocks. it still has stakes in universal music, tesla, snap, many other american companies, so the implications of this are extremely broad, and you can't just sell off wechat the way you might be able to do so with tiktok it also serves more purposes a lot of chinese americans use it to keep in touch with friends and family back home >> micah, i believe wechat was also banned in india they're looking to ban tiktok as well facebook is up 3%. i think it was up 5 or 6% yesterday, so this would seem like another win for them. >> that action yesterday, i don't know if there were some indications this might happy i'm not sure whatsapp could be

allowed in china, but it definitely seems like it would be the obvious substitute, coming in the same week that facebook introduced its tiktok competitor as well, so maybe by default it would cruise to the benefit of facebook. i think one of the interesting things is what theoretically it might mean for apple if you had to take wechat apps off apple devices. that's the portal to a lot of different things in china. what would it mean for market share over there i think a lot of people want clarity on when this all means >> deirdre, wechat isn't over there, is it >> this is a company that went to a food delivery company the margins, the take rate are not as good at all in terms of profitability from the food

delivery space if they can make food delivery profitable eventually, if that can ever happen. >> exactly exactly. that's absolutely a point well taken. we'll continue to see what more of the fallout may come from this, but still a big move from the president today. meanwhile a new report from the fed shows just how little reach its mainstream spending has had so far the 6 $77 million facility was supposed to make loans it made eight loans, kate. i'm obsessed with this because it was this huge announcement, this unprecedented announcement by the fed they wanted so badly to get it right and it's basically doing nothing at all >> the demand is certainly not what it was for ppp which ran out, as we all remember, in less than two weeks but the program is very different. these are not grants, these are loans to midsize companies

they cannot lend to large companies that have big debt loads, that were struggling before the pandemic set in, so the companies that need it the most would not be eligible for this also the fed said the demand might not be there right now these companies might be going to traditional banks on their own or they may not want to take on the debt because they're not looking to invest in a way they would otherwise. a few different things at play here also some banks did not sign up initially, there could be lender fatigue going on definitely a different program than ppp >> they said we have no incentive to get involved in this to use brooks'example once again, they said, i wish there was a way we could get through this >> a lot of sensitivity to the idea the fed should be buffered to any whisper of a hint there could be credit losses down the road a bigger point, kelly, is that a lot of the fed programs that

they rolled out and thought maybe they were going to have to be spending all these trillions around the economy are not very highly utilized, whether the corporate bond ownership piece, really not a lot of that has been implemented, the ownership part, too. maybe it's good news that parts of the economy were able to stay afloat otherwise, but if it was too narrow a window that the fed opened up to access nomoney, that's not a good idea >> i'm just looking to expand ppp or do something to kind of ameliorate it. ceo adam aaron admitting on the earnings call that he does expect video on demand to be the industry standard for hollywood moving forward here's where it gets super interesting. amc recently signed a deal with our studios to share profits of online rentals their stocks have been battered. their revenue is down 9% year on

year, the stock is way down. but kate, i just find it interesting that they've found a way now to profit from us streaming these movies in our homes. >> of course >> it's amazing. >> they've got to find a way, i think everyone, both consumers and analysts, will be looking at how "mulan" does with disney plus in that model but these companies had to get creative i think it's going to be a while before consumers really feel comfortable going back to movies at large movies are not what they were years ago in terms of going to the theater because we do have streaming options at home. i think this makes sense for an industry trying to figure this out in realtime. >> amc had banned universal after a while. i think "trolls" didn't go to theaters so what kind of toll would it take on user streaming as a

result >> it's such an about face they took such a time to shorten that window to say, okay, we're going to take what we can get. personally i'm part of the population that would pay 20 to $30 and watch it in the comfort of my own home i would have done that before the pandemic, but certainly there are more and more people feeling that way it's a small move on amc's part. perhaps if they had done this earlier they could have gotten more out of such a deal, but they'll take what they can get right now. >> kelly, so much of the box office these days and the small number of films that really do get a big rollout are within the first couple weeks, anyway it's so frontloaded and for people to go out and see it in the first two weeks, it's got to be an event movie. i know the analogy has been made many, many times that it's more like a theme park ride in my younger years when i viewed going to the movie as a

way of stealing two hours of air-conditioning in the dark, people don't see it that way anymore. >> i just wonder why investors aren't more excited. the toll this takes on streaming is amazing my guess is it's a small toll. >> really, selling popcorn to people in the theaters is still a draw there is a new number two in the world of wireless. t-mobile has officially taken over at&t as the biggest mobile carrier. the ceo says we're watching the number one spot on the horizon shares in 2020 are up nearly 15%, verizon down 5% >> this was the rationale for

this merger that was long in the making and had a lot of false starts it was a counterpoint to the industry, well, you're only consolidating it into three big players. the noises out of t-mobile is not that it's going to be less competitive. at&t still has a lot in terms of revenue, but not subscribers it seems right now in a slow or no growth market, there is still a lot of jostling which is probably good for consumers. >> they carry a wireless hot spot as a subscriber where at&t didn't, so it might not be completely apples to apples. >> right, and there's been some debate on those numbers, but to mike's point, it's so true i think some of the big questions when the t-mobile merger was happening, will they be as scrappy. there wasn't a lot of competition and relative to

other countries, we did not get great deals on our network, so i hope the scrappiness continues for our consumers. >> but sometime the gig is up. >> that's true i was curious how they would weather the coronavirus then they were pushing free scam protection and the 5g consumer rollout that consumers seemed to really be responding to. >> this is why i love you guys always bringing the info for "rapid fire. thank you all very much today. we appreciate it coming up, is mobile sports the answer to the financial crises we'll tell you whether it works and whether new york could be next

welcome back states are trying to find ways to dig out of the covid budget crisis some think mobile sports betting is a solution. contessa brewer is live in

weehawken, new jersey. hi, contessa >> hi. they pulled in dollars on mobile sports betting why? rural areas don't have mobile sports betting you can cross the hudson river and bet on your mobile app they have now drafted a mobile sports betting bill. they'll hope governor cuomo will reconsider his opposition concerning new york's $13 billion budget shortfall ohio, nebraska, vermont and hawaii have bills pending. south dakota and maryland will get a referendum this fall let me show you states that have legalized sports betting spor sports betting in particular, they have about 20 states that

have legalized it. not all of them have mobile sports gaming. online or online casino games could add another stream of revenue, but right now only six states offer it. pennsylvania took in almost $100 million in taxes from mobile offerings the first year who else benefits? the companies offering the plats forms, of course we're talking penn national. draft king and fandual mgm and others are investing heavily trying to take a piece of this action >> they better come up with another rationale. they'll need a lot more gamblers thank you. still ahead, small learning pods are becoming an increasingly popular option with parents across the country some say it will cause a major rift in educational advantages r lower income students. we'll dig into the pros and cons, next

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new york announcing that schools can open in this fall but in chicago and elsewhere, it will be online only. some feel this is inadequate and up and downed to form pods at home will this widen the achievement gap? welcome to you both. jessica, tell me why you're worried about this >> i'm worried that pods are going to increase inequality by pulling resources out of public schools especially if parents are using these as an alternative. those dollars will follow the students that will leave the schools an

students left behind with fewer resources than what they currently have pods are not equally accessible. not all families can afford to pay for private teacher or private tutor and even if the pods make available scholarships for some families to join, many families may be excluded if they are not able to follow pod rules. for example, because they have to work outside the home and have exposure that other families won't tolerate. >> jason kind of kicked this off when he was looking for, he said the best sixth grade teacher in the bay area to teach two to seven students in my backyard. he said we're going to offer merit based scholarships so others can join us too a lot of parents have to make this choice about what to do with their kids in the fall. are they not expected to try to get the best educational outcome? it seems obvious to me that if the school says we're not going to open they will say we'll come

up with a plan b >> right this is a really good argument for why dollars should follow children to education options of choice low income families, even despite new york's announcement today, most low income families across the country will not have access to in-person learning this fall. parents are incredibly concerned about the potential for learning loss we know that it can be particularly acute for children from low income families they are banding together. they are forming these pandemic pod, these collaborative settings for children to learn together if we want to make sure every child has the same type of access to these new and innovative options, we should do everything we can to have policy catch up with parents and have dollars follow children to these options. >> in other words, you can keep your tax dollars at home this year which would be a compelling argument for a will the of people this is the -- the teachers

themselves have to realize what's at stake. there will be teachers who accept these better paying offers and plenty who don't want the go back and contributing to the lack of other options for people in public schools right now. >> i understand why teachers would want this safer option i think we have to think about what are the long term implications for public education system the reason we have a public school system is it's because it's cost effective. many parents can't provide the kind of educational quality we expect students to have in the u.s. education system. it's only going to allow the privileged families in the system to further increase their advantages over the students whose families don't have that same kind of access to resources and support to provide their kids with high quality learning opportunities at home. >> jessica, the final word here. i wonder if this is all a glimpse of the future. this is way bigger than covid. it's people realizing their are

alternative options. lindsay, i meant to give you the last word. >> it's true that right now low income children are the least well served by the existing system public education exists to educate the public it should not prioritize district assignment of schooling which has underserved low income children for so long we have got to do everything we can right now to ensure educational continuity for all children that requires funding the child instead of physical school building >> fascinating thank you both very much for being here today >> thank you >> that does it for the exchange i'm join tyler for "power lunch" t oeridofhishort break. stay with us

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good afternoon welcome to "power lunch. stocks are lower across the board this afternoon pacing to snap now a five-day win streak as washington stalls on its stimulus deal talks and tensions rise between the united states and china it's the big risk to big tech right now as president trump bans the chinese app tiktok and we chat from operating in the united states in 45 short days what will the backlash be. where is the off ramp? the u.s. adding 1.8 million jobs in july that topped expectations but it's way down from june's number is the economic recovery slowing a bit. we'll talk to former new orleans mayor. mark rorial joins us he will join us as