to recover from where it was they reported a great quarter because someone is way too optimistic this stock will follow the path of ups and fdx >> joe teranova. >> a small cap bargain, an essential and non-essential retailer ollie's, olli >> good stuff. bill griffeth and "the exchange" begins now >> it's true, i am bill griffeth in for kelly evans right now 1 and a half billion dollars and still no talks to capitol hill to reach more stimulus in a covid era. stocks are in a rally mode again today. we seem to be in the same spot we were yesterday, the dow up three and a half points at its high, the s&p inching closer to a new intraday high. are we set up to keep this rally going or could we see another selloff like we did yesterday?

we have both stories coming up in a moment here how about some vertical veggies? a company backed by jeff bezos it's a vertical startup called plen plenty wait until you see how this works. also coming up, roku's 14 billion hours of constant streaming. can anything put the brakes on electric car stocks, and mic microsoft just lost its halo effect dom chu joining us here. it does seem like we were here yesterday until that final hour. >> yes, and we were talking about how the nasdaq had just turned green you were talking about farmers and green chutes and everything else 228-point gain for the dow, the s&p at 33.37 at the high, it was 38.33.

remember, the record close for the s&p, 33.86 and the record intraday, 33.93. those are the levels to watch to see if the s&p 500 gets to that level of rarified air. very kind of strange the mix between cyclicals and defensive. technology and utilities are leading the way higher in the s&p. when is the last time you saw very cyclical, a very defensive sector leading the way higher. then you have financial energies now down 1.5% despite cyclicals climbing higher. we're still watching what happened with tesla after announcing that 5 to 1 stock they were up, and that's just a

hair below the combined equity values, yes, with toyota motors, general motors and ford combined we'll have more on "rapid fire," i know you guys will, in the next hour. >> the new normal in the auto world. thank you, dom we have better than expected earnings, stocks not fazed by the stalemate in washington. are we going to keep this rally going? steven whiting is at city private bank, brad mcmillan is chief investment officer at the commonwealth financial network good to see you both, thank you for joining us today steven, i know your feeling is the bounce we had economically after the collapse in march and april is over. so now what? >> well, look, over for the moment we'll probably have no job gain, close to zero, for august employment but for the coming year, for

2021, we revised up our u.s. global work projections. we can glow by a full 1% by the end of the year just to keep up this demand pace when you look at what happened over the course of the first and second quarter, we had a record collapse, we ended the second quarter with enough momentum to have a 25% gdp gain. but with covid still raging in the united states, it's flat so this is all the small picture. the big picture is that we will, in fact, have a meaningful global cyclical recovery where we get past this covid shock one way or the other >> and, brad, here we are. we already established how close we are to all-time highs for the major averages yet again, but in washington the talks about stimulus have stalled. there is no talk going on right now. is the market whistling past the graveyard, or what's going on here >> i think the market sees a lot

of tailwinds here. i think we have a situation where it's not that we didn't -- that the economy hasn't continued to move ahead, we have seen a slowdown. remember, we had a material second wave, we had an acceleration, and the recovery continued to hold about where it was. that to me says there is a lot of resilience there. then we have corporate earnings coming in. we have companies figuring out how to make this work. unless you assume there will be no stimulus, we are going to get some aid eventually. i think we have more upsid upside ahead >> steve, you're the global guy. the u.s. aside, which countries do you see growth in right now >> it's an increasingly wider recovery asia has been able to cope all along, but what you see in asia, particularly in china, is that technology companies, those that have adapted to this covid economy, have performed so well already. when you take a look at europe,

look at gdp readings that were down so much in the united states and the united kingdom in the second quarter, for example. but being in a better position, having covid slower for the moment, and most of the stimulus will hit in 2021 basically, like a lot of cyclical companies around the world, if you take a look at the lag that we had in small companies behind nasdaq, it's almost 30 percentage points. it's not that they will be the best long-term growers, but there actually is something to rebound from in a lot of these markets. >> brad, back here in the u.s., what do you like, sectorwise >> i like housing, bill. i think the trend of people moving back into houses is big i think financials are going to benefit from that in the recovery basically, i think you need to fade the recovery on this one. that's where it's going. >> steve wieting, brad mcmillan, good to see you both thank you for your thoughts. appreciate it. a lot of paper was auctioned

off and the big one was today, the 10-year auction. rick san ttoli, how did it go? >> lower yield, higher price it priced very aggressively. that's why it had such a high a. remember, this was 38 billion. by far the biggest the next closest was 32 billion, and in terms of that yield, the all-time yield was the last auction, and that was in july of .653. we missed at about two and a half basis points. the recovery was really light but a small amount everything else was indirects, directs, better than the 10-point average and the dealer takes less than the aggressive they complete 112 billion of u.s. government supply back to you. >> as long as the demand is there, we're okay. thank you, rick.

we'll see you later. >> brad mcmillan mentioned housing. he likes it. we'll talk about that where mortgage demand jumped last week, but we could be in for a change our diana olich has changes on that diana? >> we're watching mortgage applications closely right now they did move up 6.8%, but now they're moving close the average fell 3.6% last week compared to 3.4 the previous week both of those were record lows the 15-year, even jumbos that caused refinance applications to jump 9% over the weekend. that's the smallest average gain we've seen for a while the average home buying rose 2%. by the beginning of this week, rates began to rise. yesterday they rose sharply, hitting the highest level for two weeks, and i just checked

today, they are up again for today. given how high home prices are due to tight supply, higher rates could hurt one sector of the economy that are doing so well bill >> you talked about this rush to the suburbs and the impact it's having on the housing market are you hearing anything about the builders themselves picking up the pace on construction to try and eventually meet that demand >> you know, they talk about it, but we have not seen it in the numbers yet, not in the starts, not in the permits, not to meet enough of the demand that's out there. when you talk to the builders, they say, we would love to, but the problem is they have supply chain issues when things shut down, they had labor issues which they had even before the pandemic, and they had other issues, not only getting their prices down to a place where people are able to buy if we see these mortgage rates go up again, that takes away purchasing power, and the builders at this point don't want to lower prices, they want to keep them where they are.

>> like opec with oil. keep those prices going higher diana olich, thank you see you later. on the democratic ticket, the race to the presidential election is heating up we'll look at who is ahead in the critical battleground states and what impact biden's vp pick could have on business and the markets. plus, what do softbank, jeff bezos and eric schmidt have in common they're all backers of that vertical start-up i mentioned called plenty. the company announced a major deal don't go away, "the exchange" is back in two minutes. our retirement plan with voya gives us confidence... ...we can spend a bit now, knowing we're prepared for the future. surprise! we renovated the guest room, so you can live with us. i'm good at my condo. well planned, well invested, well protected. voya. be confident to and through retirement.

lookentertainmentour experience: xfinity x1. it's the easiest way to watch live tv and all your favorite streaming apps. plus, x1 also includes peacock premium at no extra cost. this baby is the total package. it streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. yup, the best really did get better. magnificent. xfinity x1 just got even better, with peacock premium included at no additional cost. no strings attached.

welcome back the countdown to the presidential election is on. we have just 83 days to go where do we stand in the battleground states right now. ylan joins us with that. ylan >> reporter: our research shows that democratic presidential hopeful joe biden is still ahead. after lagging behind last month, we found 48% are backing biden while 44% are backing trump.

biden had been up six points in the wake of the george floyd protests drilling down into individual states, you can see biden has the decisive edge in wisconsin, michigan, pennsylvania and florida. in arizona it's a squeaker biden is ahead 45-44 in north carolina he is down 47-48. but the tight race in both of those states means that the results are still within our margin of error. the state we are looking at very closely right now, though, is florida. biden has doubled his advantage there since the last time we did this poll. he now lhas a six-point lead, 50-44. it is likely voters in florida more than any other state say they are concerned about the economy and the coronavirus. back over to you >> i'm sorry, you said it at the top and i missed it. were these polls taken before kamala harris was chosen or not? >> oh, absolutely. these polls were done over the weekend, so this does not

reflect any type of impact of the vice president's vp pick, so we'll just have to see how that plays out. but certainly one of the big questions there is intensity, right? turnout is going to be very important in this election picking someone who is black and south asian, that could mean a lot toward the democratic base >> very good ylan mui, thanks see you later. if you see that in this rally after joe biden did pick kamala harris to be his running mate joining me for key takeaways, brian gardner is a research analyst at k.e.w and steve sphere is here welcome to you both. >> thank you, bill >> all wall street cares about is the impact the campaign will have on it in terms of regulation or anything else. jim, it's seen that kamala harris is a centrist and she'll keep joe biden in the moderate

camp do you buy that? do you believe that? >> no, i don't think that's quite the case kamala ran on her life story, which is that she's a younger, articulate woman of color, a very attractive candidate, rose to be a.g. of california and then to be a u.s. senator. in this campaign she has gone straight in a progressive direction and she's actually very strongly aligned with the rest of the party just as joe biden is strongly aligned with the rest of the party and taking a more progressive stance than he has in the past >> brian, what do you think? >> i agree with jim. i mean, so senator harris comes out of the establishment she came out of a prosecutor's office, she was the attorney general. her tone is not that of the sanders-warren link. she's an established person. it doesn't mean she's a centrist when you look at her voting records and issues that she pushes, she comes from the left

wing of the party. you know, going back to your question about what it means for wall street, she's not elizabeth warren i think the elizabeth warren candidacy would have been the most alarming for investors, especially in the financial sector, and harris doesn't bring along that history so that's a bit of a side relief, but i think it's wrong to call her a centrist >> however, you guys are both saying that she may be a little more progressive than the credentials of being a centrist. brian, does that mean for wall street higher capital gains taxes? all the usual mechanisms that are identified with the progressive party's platforms. >> so let's hypothetically say that biden wins and democrats sweep congress and it's a unified democratic government in 2021 there is going to be tremendous pressure from the left wing base of the party to push for tax increases, and that includes a

capital gains hike senator harris put out a proposal in her medicare for all plan, a finance plan which would include a financial transaction tax. biden hasn't come out in detail on that, but he has been saying sympathetic things it's an idea that is gaining traction within democratic circles. so for years that we've heard this idea of a financial transaction tax, i think most of us have dismissed it i have but it's starting to become more of a mainstream tenet within democratic circles i think capital gains, financial transaction taxes and higher corporate tax rates are certainly on the table if there's a democratic sweep >> jim, if you agree with that, wall street can't be happy about any of that. >> well, i would agree with that, but i'd focus on something else, which is the senate filibuster harris comes from a law enforcement background as an a.g. she's been on the senate judicial committee and she's

come out like joe biden has come out for elimination in the senate filibuster which would really clear the way for a tax agenda on all the topics we just mentioned. probably the first bill that comes up next year will be some sort of police reform, and if the republicans block that, harris will lead the charge for a filibuster that will clear the way not necessarily for a transactions tax but certainly for major corporate tax increases as well as higher taxes overall and a more invasive regulatory policy. >> and, of course, the pandemic is still in place, the economy still suffers as a result, unemployment is still at very high levels. what do you think a biden-harris team would try to do to fix that that would be different, brian, from what president trump has tried to do? >> i think the tone would be strikingly different the substance in terms of aid

for states and taxpayers wouldn't be radically different. look under republican rule we've spent close to $3 trillion and we're still looking at another phase 4 bill there would be more of the same. i think the major difference is on style, less on substance in regards to the covid pandemic and stimulus and economic relief i think there is actually less of a difference there on substance than on other issues >> all right brian gardner, jim lucier, thank you both for your time >> you bet coming up, as the race for a covid vaccine does continue, so does the race for drugs and treatments that be can be used until we get that vaccine. we have more on where things stand on that. plus nikola, tesla, workhorse, car stocks just keep climbing can anything stop them we'll have a debate on that,

believe it or not. and a reminder you can always watch us or listen to us live on the go on the cnbc app "the exchange" is back in two minutes.

welcome back to "the exchange." yes, we're starting to lose some altitude here on the dow, especially the industrial average had been up more than 300 points at its peak early on, but now a gain of just about 177 points boeing has been the biggest drag on the dow it's been down more than 3% in today's session. and we're hitting lows for the day there on boeing, as a matter of fact, so we'll keep an eye on all of this as we head toward the close of trade today in the meantime, rahel solomon has our cnbc update for us hi, rahel. >> hi, bill. here's what's happening at this hour federal authorities are charging two men who have accused r. kelly of abuse

one man set a car on fire in florida. another one agreed to pay the victim money to keep quiet r. kelly has pleaded guilty to several sexual assault charges in several states. new zealand reports its first covid-19 cases in more than three months. they are recommending residents to stay home, and the outbreak has impacted four members of a family and cleanup continues after the deadly explosion in beirut they continue to remove rubble from the port which was once the base of their economy. >> i feel up to date thank you, rahel see you later. so as we mentioned earlier, moderna has struck a $1.5 billion deal with the federal government to produce 100 million doses of a covid-19 vaccine that it's still working on, trying to test and research.

that stock showed up on the news by more than 12% before losing those gains. but it's still up more than 250% so far this year of course, we don't know when we're going to get avaccine, but until then, the race is on to develop so-called bridge drugs and treatments meg tirrell takes a look at that part of the story. >> reporter: 44-year-old jason barton had just returned to arizona from a family trip when he got a pounding headache testing revealed he and his whole family had the coronavirus. >> it was mostly just headaches 24 hours a day for two weeks straight >> reporter: barton entered a clinical trial for a new kind of drug to treat covid-19 >> this was a class of drugs that works by giving people antibodies that will help fight the virus. >> reporter: in development from regeneron and eli lilly, the antibodies are derived from people who have recovered from covid-19 and regeneron revived

those antibodies in one of its labs while the drug is used for a different kind of disease, a trial has started to see if they can prevent it in people who have been exposed. >> there is a lot of reason, a lot of evidence to suggest that if you treat before infection for most of these diseases, but including covid, you can entirely prevent the infection >> reporter: april stewart enrolled in one of those trials after her son was diagnosed with covid-19 >> this whole thing is scary i was thankful that nobody else in my household had come down with covid >> reporter: the prevention trials are being run in partnership with the national institute of allergy and infectious diseases. regeneron's is enrolling housemates for people with covid-19 while they will go to nursing homes with outbreaks >> when will we know, do you think, if these drugs are effective at all >> bill, it all depends how

quickly these trials can enroll, so the researchers told us they're really desperate to have patients who qualify to come in and enroll in the trials but regeneron has said we could know by the end of september at least initial data about how well these drugs might be working. >> and do we know, do we have enough of them if they are effective? >> we probably don't, bill i mean, given the scale of the pandemic around the world and the limited manufacturing capacity that these companies have, they are looking for other ways to scale up manufacturing, including potentially having other companies make the drugs for them so this is a unique situation, but of course everything in this pandemic is unique >> yes, i have yet to see anything where it's not precedent setting, that's for sure meg tirrell, thank you >> thanks. roku racks up revisewreview,

more when "the exchange" comes back

it is time to catch you up on a few of the stories that should be on your radar. it is time for "rapid fire" and here with their takes on these stories, mike santoli, deirdre bosa and one robert frank. good to see you all. the streaming player roku higher after being a buy, they got a 50% market share in the so-called connected tv market as well as growth potential in the u.s., ad revenue as major tailwinds exist for that

company. it comes as roku logged nearly 15 billion hours worth of content that was streamed on its platform in the second quarter of course, the stay-at-home trade in full effect here. talk about being in the right place at the right time, dee >> right place at the right time, but i was surprised, bill, the stock is only up 12% year to date perhaps it is an opportunity that's certainly what deutsche bank believes. what's interesting about this company, when it went public a few years ago, we knew it as a device company, but increasingly it is shifting over to that higher margin software streaming service, has its own platform. this is a roku tv behind me. i was playing around on it and it's incredible what it's become i remember when i first got a roku tv a few years a there wage was no apple tv, but it's slowly adding these platforms

hbo max was added, so i think there is a question of when it gets its own the hardware business is a lot lower margin, so we'll see if this stock has more room to run. >> you stole my question from mike santoli a company that is in such a sweet spot as roku, and it is up only about 13% year to date. why do you think that is >> it's struggled to grow into valuation that was afforded it pretty early on, and i think the market really saw the opportunity. i think the company has demonstrated it has something of a better mousetrap and a bigger opportunity in terms of gaining market share away from linear tv and advertising. but it trades at 14 times revenues i looked back. netflix never really got up to that level, spotify is not that expensive if you want to look at other kind of digital context type plays i think it's the matter that it's not profitable at the moment and it's all on the com, and the evaluation already seems to reflect some of the bigger opportunity.

>> robert, i would ask what you ask your kids are streaming right now on roku. okay so it's not just me. we can't hear robert right now y'all can talk louder or something. let's move on, shall we? shares of tesla soaring after announcing that 5-1 stock split that is set for later this month. tesla says the move will help make stock ownership more accessible after shares have surged more than 200% so far this year. u it's not just tesla enjoying this run the workhorse group is up more than 400 this year they raised that stock to $20, implying 30% upside from here, and don't forget nikola, however you say it it's up 20% in the week alone even though it doesn't expect revenue from cars until next year they call themselves a

pre-revenue company. mike, what do you think? is stock splits going to become a thing again on wall street >> i think in isolated cases, bill, such as tesla and netflix, where there is an energetic and very loyal retail fan base, when retail investors -- even though it's purely cosmetic, even though there's nothing substantive in terms of it creating more value, psychologically people like the idea of having a lower entry point in terms of price, and that's despite the fact that there is zero commissions on any size trade right now from most retail brokers and you can buy fractional shares. i do think the psychological boost is what it's mostly about, and tesla is always going to play to that fan base. i don't think any of the gains attributed solely to a split really should be trusted in terms of being real. but this is the way the game was played before and seems like it's coming back in instances right now. >> i'll believe it's a deal when warren buffett splits his stock. that will be the thing dee, i'm surprised the electric vehicle market, all the sizzle

is about these new companies, the startups and everybody we're not talking about the legacy automakers anymore, at least now. >> no, and i'm shaking my head, especially when you were talking about nikola stock price, because we must separate tesla from the other ones. you said it, nikola doesn't even have a product for a few years out. i think you have to differentiate between those companies. my brother is one of these retail investors that doesn't want to invest in etfs, he wants to make stock picks and has been pretty successful doing so so back to mike's point in that this is a psychological thing. this sort of build on that retail investor momentum, i see that as a very real thing, particularly with people that i know in this space so the run has been incredible also the bull indicates this is not just a bet on tesla, that is, but the future of energy so it's incredible to me that it's trading above $1500 a

share. but who knows how far it will go >> not for long. testing robert frank, testing, testing. >> i'm back. >> there you are will electric vehicles ever become collectible, what do you think? >> they could. i don't know if you want to go to that story first. just a quick thing on evs. >> go ahead. >> you've got fiskar, you've got lordstown, you've got nikola yes, a lot of it is based on promise, but they are each ka k carving out a niche in this commercial space you've got nikola with garbage trucks you've got a focus on delivery vans for the post office i think this is a niche that tesla doesn't want to play in that could be very profitable just given the number of vehicles that are involved >> let's move on to the next

one, microsoft said to launch its new xbox console in november, but it will be without one of its flagship gains. the industries said they will be ending due to a blow from the pandemic gaming made up 8% of microsoft's total revenue in fiscal year 2020 this has to be killing them at microsoft, not to have this at a time like this, when if you're not streaming, you're playing a game right now, right? >> yeah. i mean, halo is considered one of microsoft's most valued properties you look at what microsoft has done in the consumer space, and really their success lies in s xbox the fact that's being delayed could hurt sales of that

potentially microsoft's position, you mentioned playstation is coming out with its latest console as well and this all happens ahead of the holiday season i would maybe, bill, extrapolate from this and say if microsoft isn't able to put up halo at such a critical time like this, how can it manage another big consumer name like tiktok? perhaps this raises some questions. >> mike, it raises the issue of isn't it a smart thing that they got into the cloud business to smooth things out when you have the unpredictability of the gaming industry? >> you would think they might be able to level this one it reminds me of the studio that can't deliver the big expected blockbuster on time because of production snags but probably even if it is a bit of a hiccup in the console sale market share story later this year, i don't know that it's necessarily an investor issue, even if it is coming at a pretty bad time, as you say, because video game hours are exploding

right now everywhere >> finally, let's get to robert's story this is the biggest week of the year for the classic would you be at pebble beach right now? >> i would be. >> auction sales have not seemed to be slowing much by the pandemic no pebble beach for you this year, robert >> no, not this year, bill it's interesting because everyone wondered how classic cars would sell online you know, you can't go and kick the tires, you can't drive it, you can't look under the hood, so would people spend seven figures on a collectible car they can only see online the answer is yes, in a big way. so we just saw a ferrari last week sell for $3 million that was a 1966 car. this week bidding has just started on a 2001 ferrari that could sell for between 3.8 and 4.8 million. that would break another record for the most expensive car ever sold online. so even though there are fewer cars being sold, demand for

classic cars through covid being purchased online is much stronger than anyone expected, and part of that is because the wealthy still have money, and also because you can drive your car around it's a fun thing to do it is socially distanced and it's a hobby that takes you out of the house right now and that people can still enjoy >> what's the big deal about the 2001 car you just mentioned? why would it go for that much? >> it's one of only 12 built it was a racecar, and in the early 2000s, it won a lot of races. so for collectors, having the car that won a lot of races is a big status thing, and that's why it could sell for so much. >> mike, we usually look to the collectible market and the art market to determine sentiment and where we are in the scheme of things, and here we are with record prices going for cars >> yeah, i mean, to some degree it lines up. i do think there is a bit of a grab for assets perceived as being scarce right now

some people are even saying that's reflected in some stocks. i guess it probably fits along those lines. i'm just trying to recover from the idea that we're defining a 2001 as a classic car. i'm glad to hear about the back story of it, though. >> yes, i was intrigued by that, but i hear cars from the '90s are hot right now. how many of us are still driving a car from the '90s? i'm not, but i'm wondering if anybody else -- >> i'm waiting for a 1990 gmc pickup to be worth something because i happen to have one >> when did you buy your first car? >> i lived overseas for a long time, so i had no reason to drive, really, until i moved to san francisco. always before that i drove my parents' car bill, it's a whole new world out there. people are buying homes after virtual tours, they're buying expensive cars on platform what can't be bought online? >> 1978 here when i bought my

first car. anyway thank you, all, mike santoli, deirdre bosa and robert frank. softbank starts up plenty. it uses vertical veggies for land usage, and one investor has largely taken notice as we head to the break, a k eck on the markets back in two minutes. drop the taco, get in the car. does this sentra feel like a compromise to you? wait what? the handling, it's good right? no compromise there... nope. watch this... brie brie... (sfx: rab beeps) rear automatic braking. so if this nissan sentra isn't gonna compromise why should you? you're right! that a girl. the all new nissan sentra. with more standard safety features than any other car in its class. ♪

welcome back agriculture technology start-up called plenty is turning the process of growing veggies into, well, side, and it's got plenty of big backers and now a major partnership to its name as well. adidi roy joins us this is a whole technological scheme to create natural veggies out there. >> it's such a fun story

i've tasted their produce. it's delicious this farming kwquorum made a bi deal with albertson's. they have a commercial farm in san francisco. under the deal, plenty will provide produce to 430 albertson's stores in california the ad tech unicorn says it could take up to two years, though, to meet that extra demand and to do so the company will rely on a new fully automated farm in compton, california. it's unclear when that farm will open high-profile backers include jeff bezos and eric schmidt. the company's last race brought in 175 million, bringing its valuation to just more than a billion dollars. that's according to pitchbook. ceo matt varner joins us now good to have you with us, matt, and congrats on the deal

i want to start with that deal you're currently in about a dozen albertson's store in the state. you're adding hundreds of more stores to your list. how do you scale up when you're not sure when that farm will be up and running >> we've been working for this moment for a while now, and we're excited that our farm has proven how producing it is, and we're excited to build the company and scale it out we're excited to get our farm underway and serve the people of california through albertson's >> and do you have any more guidance in terms of when you can expect that farm to reopen or when you would be able to reach up to the 430 stores that are in that portfolio? >> well, we are already serving albertson's stores now, as you mentioned, and we'll increase the stores we're serving early

next year and then start serving more california stores through that l.a. farm in 2021 >> you mentioned to me that this partnership came about because of and not instead of the covid pandemic how are you able to produce on your farm given that it's indoors. >> we brought the farm indoors so we could focus on flavor and really bring in agriculture that wasn't possible before, certainly not on the farm i grew up on. albertson's bought in because of how our greens taste, that farm flavor when they came for a taste test, they were blown away they put us on their shelves as a result because they have prejudgment as to what their customers love we started flying off the

shelves in an industry leading case, and then covid hit, and that severely shocked the food chain. distribution centers were closed in some cases. there were instances where plenty was the only thing on the shelf because there was such disruptions in the supply chain and other supplies couldn't get there. as we were able to prove, you know, the extreme reliability of our farms and of that, you know, short food chain with our local farms, you know, that really sealed the deal, if you will, and, you know, we've signed this agreement, this partnership with them that we're excited to get working. >> matt, i'm still trying to get my arms around how you do what you do i heard about how you, quote, tweak some of the vegetables to improve the flavor how do you do that what role does technology play in this? do you use more water, less

water, a fertilizer? how does this work with these indoor farms you're developing here >> thanks for asking once we brought the farm inside, what that allows us to do, with the farms aand technology we developed, it brings a lot of stress, water, nutrients the climate along with stress are huge drivers of flavor when we do all of this with that amount of control, it's also very resource efficient. so we use less than 1% of the land, less than 5% the water, so what that means is in the space of roughly a big box store, we're able to produce 1500 acres of farmland, supply of a farmer, and save millions of gallons of water a week so just resource efficiency while producing an amount of

control but producing this food that tastes such that it surprises people once people buy it, they can buy it at a rate that's uncommon because they're not used to experiencing that kind of flavor in their fruits and vegetables >> i know that you have you also have some competition in the area trying to disrupt agriculture. how is plenty different from the rest >> well, you know, we really have focus odd flavor. we focused on doing it at grocery store scale. everything we have done is, how do we get people flavor and security and shelf life they value so much? >> thank you so much, matt we have to wrap it up now, but we appreciate hearing from you, and all the exciting news.

>> thank you for joining us as well investors have poured is $19 million into muni bonds, but that demand ou sshldoon dry up is there a muni mess ahead or not? we'll find out signed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit tdameritrade.com/learn ♪ ♪

all we do is hand you the bag. simple. done. we adapt and we change. you know, you jui figure it out. we've just been finding a way to keep on pushing. ♪

. so the latest show that investors have made monster moves into the muni market municipal bond funds saw inflowing of $19 billion in just over a few months.

this week a flurry of munis mature as the budget chasm widens for cities and states you could see investors shirk riskier debt, at a time when they need the most >> tom, good to see you. there is so many headwinds. >> you know, right now what we've been seeing is investor complaint build. and really there's -- if there's a supply and demand imbalance, it's not a lack of demand, but a lat of supply right now. issuance is about 50 billion higher than we saw last year,

but that's a bit misleading. but will the risk go up? considering the shortfall that they generally have experienced, because people aren't using transportation right now they're not working for the most part and there are other areas i'm going to bring up in a little while this is a pretty tight time for them right now for sure one of the things that's interesting that we haven't seen is the downgrades. it depends on sector to sector the s&p put the municipal airport sector on, and one of the things i'm expecting where state and lot governments are concerned, i'm expecting overall at the end of the year, we will see downgrades, one of the

things we saw coming out of the great recession last year, that was slow to develop. there is going to be some pressure that could end up happening over the next year or two. >> a story that's developed this week alone with the big ten saying they're not going to play sports this fall, college sports have a big impact on the budgets of municipalities around the country. >> there are five or six times when they have home games.

and not only the local economy, but the regional economy it's pressure to the regional economies as well. >> so are we say that municipal bonds are -- if downgrades come next year or not credit really matters. it's going to be easy for them to go through this uncertainty they'll have to end up cutting probably than others might otherwise would have we've already seen a million job cuts. in fact through just april, state and local governments cut more employees than in the

entire week during the great recession. >> tom, appreciate your time >> thanks, bill. that does it for the exchange next hour, the prime minister of st. lucia will discuss reopening the doors to americans melissa lee joins me on "power lunch," after a quick break. stock slices.

for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50 instead of paying thousands. all commission free online. schwab stock slices: an easy way to start investing or to give the gift of stock ownership. schwab. own your tomorrow.

♪ ♪ [ engines revving ] ♪ ♪ it's amazing to see them in the wild like th-- shhh. for those who were born to ride, there's progressive. welcome to "power lunch. i'm melissa lee. we start off, where else