the faang names. >> this is suggesting he's a visionary which we will never forget wir weiss, give me a name. >> keys will trade up this afternoon. >> mr. 29, what do you got >> if i were to sell something, it would be eli lilly and i would buy adv. hi, everybody, here's what's happening this hour. apple is across the $2 trillion mark, the first company to ever achieve it this with the nasdaq and s&p hitting all-time highs nasdaq is within 14% is the market too top heavy? we'll ask. plus, towering timber as lumber prices soar to new highs, we'll tell you the stocks to benefit. and more drama on college campuses and welcome back to the fanny pack

it's all on "rapid fire. we begin with the markets and dom chu sheis here with those numbers. >> i think i have a fanny pack somewhere in my basement you can see the dow industrials, modest gains 43 points for the dow. still up .2 of 1%. those two notch record highs today in today's trade, so watch the overall market there also watch what's happening with consumer discretionary stocks. the sector a key watch this week the big one today, of course, is target shares. those are surging. you'll talk a bit more about that, but this is important because the sector sits at a record high, thanks to some of those earnings reports this week one to watch then we mentioned apple. the $2 trillion mark finally hit. we can say, hey, we hit that mark now what does it mean for valuations kelly, you mentioned the 4%

waiting. what about the s&p 500 where it's almost 7% waiting if you own the spyders for the ticker spy. apple now trades at around 34 times next year's expected earnings the overall s&p 500 trades at 23 times next year's expected earnings, so that valuation premium for apple certainly growing right now into that $2 trillion valuation we'll see if it can stay that way. >> that might be the number i'm most obsessed with out of all of them dom, thanks, and we'll see you shortly. that 2 trilli$2 trillion map makes it bigger than brazil, canada and russia. to me the valuation is the important part of this story when people say, why is apple suddenly worth $2 trillion people are giving it a higher price for its earnings

>> it's really largely symbolic, this milestone, but it is important, kelly today, as you mentioned, apple did hit that cap of $2 trillion. it's the first u.s. company to reach that milestone, doubling valuation in just over two years. apple first reached $1 trillion in august 2018, 500 billion in 2012 remember, tim cook was named ce oh back in august 2011 the stock has surged higher this year, now up about 60% in the past 12 months, it has soared more than 120%. what explains that run of course, there was that earnings report in late july that blew past expectations, but analysts will mention other broader trends, too. one, they'll say that cash is king in uncertain times, and apple, as we know, has a lot of it with a net cash position of $81 billion. two, apple does benefit from the work from trend home as well, like the mac and ipad. plus many investors clearly

betting here that apple is well positioned to benefit from the trends and digital health. kelly, back to you >> and what caught investors' attention as well was its growth in the service business to well just short of revenue, and is it short now? is that why the multiple deserves to expand one piece of that that will be so important is what happens with this fight over the app store? it services revenue in the growth trajectory there. a lot of it is partly the app store, isn't it? >> that's right, kelly, they've been aware of that segment, and the big driver of that segment is the app store, and we know now the app store is facing these challenges there is regulatory scrutiny, there are headline-making

lawsuits, epic games the maker of "fortnight," but still the outcome there is very much uncertain, kelly >> it's a maze to go mazing to e the power shares just surged past that. apple has now become a huge part of the s&p 500, the nasdaq and the nasdaq 100 we have head of equities at bemo asset management barry, ibm was a similar waiting for the s&p 500 in the '80s, so the system can sustain for a while, but would you want to be a buyer of apple here? >> yeah, if you look back at the 1972 list of what was called the nifty 50, you had stocks like

xerox, burrows and all of them are diminished or gone now part of it with technology is they have a short life cycle, so putting apple in a short life cycle just doesn't add up. that's one of the drawbacks on this current market. it's bubbly for repressed interest rates and it's forcing people to speculate on companies that really don't have that long of a life cycle. >> let me ask you, though, about this changing business model, because i totally take your point about how technologies changes, but at the same time if apple is trying to basically be trying to take a portion of everything we spend on its phones, the subscription model they're looking to roll out, even a bigger subscription model, and as you know better than anybody, look at adobe, look at microsoft, all these names at unheard of valuations are doing so because people don't see a reason why they shouldn't just continue to take a share of gdp

>> it's a great story now. it reminds me of a book i read about 30 years ago called "bar bear y barians to bureaucrats." you go from an aristocracy that starts from within and collapses on itself. we saw that with ilm in the mainframe business as the pcs came about, and you'll see it in the industry that's one reason you don't want to put a high multiple on technology stocks. they go through these life cycles a little bit faster than an auto company or something that's going to be around for a while. >> i've got the book up on amazon now lawrence miller. maybe it will get a little bit of a boost as a result of this conversation ernesto, let me turn to you and talk about what your advice to investors would be here. if you think there is a valuation with tech companies right now, you're basically saying to people you have to take it out of an index fund, and that's a difficult thing to

do >> we're not investing in those furn funds, we're actively managing our portfolios and we're looking for companies that given their fundamentals we think are underpriced relative to those fundamentals companies, for example, such as target which reported today great numbers, we have them in the portfolio, and given the strength of the fundamentals, we don't think target is overpriced at its current multiple. that's the trick when you find the market at these lofty lefrllefrl levels, is to focus on pockets of opportunity and investing in those companies. at the same time, we think there is a potential for a downside move here, and you want to make sure you protect downside moves with lower risk stocks such as target, for example, costco, sprouts farmers markets, other defensive type stocks that in spite of that still have participation in the upside of

the market with downside protection >> we're showing a number of those names on the screen right now. that's your strategy barry, what's yours? are you bearish on the overall market >> i think it's about 10% overvalued in between now and october, i think it could pull back on a correction we got some structural damage to the economy. personal services businesses are probably not coming back any time soon, all of these unemployed that think they're coming back fromfurlough will not be coming back unemployment will settle in in the high, high single digits that's going to be very high compared to history. banks are going to have problems on their portfolios of commercial real estate they have enough liquidity for it but it will affect lending activity, and the baby goes out with the bathwater when you have that kind of crunch. you'll see corporate spreads and all of that will become evident. >> it sounds like we have 30 to 40% downside >> maybe later but right now it just looks like it's a little ahead of itself.

most of those stuff comes about in mid 2021. in the short term, it could pull back a little bit. >> thank you both for your perspective today, especially historically speaking on an important day for apple. barry bannister askand ernesto ramos. rick santelli with the results of the auction rick >> it's only the fourth day of the auction, so i'm basing a three-day auction instead of a ten. 20-year bonds flood the treasury and new investors at a yield of 1.815. it's really trading about 17, 17.5, so it didn't price exactly right, and the bid to cover was the lowest out of the current four options now

the only thing that was average of 62.6. dealers took 26.2, which is the highest amount they've taken in only these four auctions, so i gave it a d-plus, a d-plus it could have been better. what's really interesting, and i know it's an apples to oranges, kelly, but about eight hours ago the german's auction, 1.5 billion euros, $1 billion worth of their 30-year bonds had a yield of minus .05 and they had more to cover than they've ever had in a boom auction. i bring that up because the scuttlebutt is what makes the dollar weak is what's affecting the sentiment and pushing more sovereign investors into other countries like the eurozone in germany. >> thank you, rick, for tying it together, as always, rick santelli let's go to lumber

how can you own a sector without owning a forest? scott is here with what you can own. he just raised price targets on several of the lumber companies. paul, it's good to have you, because sometimes high commodity prices hurt the companies trafficking them kind of depending on where they sit. explain what's going on with the surge in lumber prices and who stands most to benefit >> yeah, it's not just lumber, it's lumber -- all building material prices seem to be up but lumber is getting a lot of attention. osb hit record prices, same with plywood. what's causing this is really three factors. we had extremely strong repair model demand right now, and that's driven by covid, everyone staying at home, everyone building a deck or an addition you can sort of see that strength in the results that

home depot had yesterday that was up 25% in q2 year over year. lows came up this morning, they were up 35%. so remapair and remodels are don exceptionally well, and we had some shuts on the canada side which started last year, so you came in the year with low lumber inventories and then you had this robust demand and that's why we have the record in crisis >> people thought it was because the borders were shut down over trade, they thought it was because canada needed the lumber in their country tell us the names you think investors can bet on even after the run-up that we've already seen >> yeah, sure. what's interesting about this rally in the commodity crisis is mostly stocks are linked to that commodity price and they generally go lock step

the way to play it first and foremost would be louisiana pacific. we just raised the target to $34 on that. also warehouser and potlatch they both have lumber businesses when you see lumber prices move up, so does log prices and they get the benefits on both sides >> maybe investors are saying, we don't know if these prices will sustain i could see them piling in saying we're taking advantage of this doubling because it might not persist. why do you think it might? >> there's just not enough inventory out there. i think the high prices are ooer eventually going to slow down construction that marginal home you're going to build is now uneconomic at today's lumber and panel prices. but right now there is not enough lumber in the inventory

channels if you talk to the bulls out there on the trading site, and i talked to lumber traders all week long, they would say because it's so scant in the distribution channel that people are not going to be able to build inventories by the end of the year, then you'll go into the 2021 building season and it will stay high as well i do expect prices to come down from these levels, but they're going to stay high everybody's order is almost to the end of september at this point. q3 is in the bag, it's almost q4 >> it's true the shortage is everywhere and people are trying to figure out what to do about it paul quinn, thank you so much, we appreciate it, on some investment ideas in the lumber space. coming up, there is a lot at stake for corporate america in this election, especially for which mega deals will get done over the next four years we'll have more on that, next.

plus walmart credited stimulus checks but target surged 12% right now we'll tell you what they think drove their massive quarter and if it can last and a heat area of the bond market we'll break that down ahead. stay with us as business moves forward, we're all changing the way things get done. like how we redefine collaboration... how we come up with new ways to serve our customers... and deliver our products. but no matter how things change, one thing never will... you can rely on the people and the network of at&t... to help keep your business connected. now you can trade stocks and etfs for any amount you choose

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welcome back dealmakers have always paid attention to presidential elections, but the stakes are especially high this year. "axios" said unlike other elections, trump will no longer be a passive bystanders on whether a deal will be done. trump weighing in on the action again last night >> i think oracle is a great company, and i think its owner is a tremendous guy, he's a tremendous person. i think that oracle would be certainly somebody that could handle it, yeah. we gave them until september 15. >> for more i'm joined by don premak he is the business editor for "axios." good to have you, don. what if biden were elected >> the big obvious one is on the tech side when it comes to antitrust policy, right?

you've already got investigat n investigations into google, amazon, facebook it would seem to be probably harder for those companies to make acquisitions, and you could see that kind of go through the entire ecosystem for example, anmy klobuchar, sh objected to google buying postmates. >> i guess antitrust is one thing, and it's often somewhat after the fact, although in uber's case it sounds like people were pretty involved during the negotiations and making clear what was and wasn't acceptable sewell of this would be much stepped up from what we've experienced over the last kind of 10 or 15 years, where dealmaking was largely left alone or dealt with afterwards, right? >> correct, and for the last 10 or 15 years, probably pre-trump, right, because president trump has been fairly involved in it dealmakers have always known a new president or new person in

congress will mess with the trade policy, but this is much more, for lack of a better term, activists in the trump administration we've seen tiktok an obvious example of it and extortion from anybody who buys tiktok. clearly in addition to the big tech stuff, really anything relating to china. >> right let's talk about tiktok. how does this play out they don't have a ton of time left is it down to microsoft and/or kell -- and oracle >> i think it's down to microsoft. i don't see oracle except for president trump trying to maybe push microsoft along a little bit. oracle could certainly do it it doesn't seem to make a lot of strategic sense, at least on the surface, and then there's also a timing factor. microsoft spent the first several weeks of the initial process really just getting into

the politics of the white house before it went into discussions with bytedance there isn't much time. they do have very tight relationships with the white house, so maybe they could get through that faster than microsoft could. >> this is a whole new era, isn't it when was a president involved in this >> not in my lifetime. nothing close to this. there have been individual transactions, but the tiktok thing is truly unique. i don't think we've ever quite seen something like this ever, and it's not to say there haven't been deals like antitrust actions with the doj has tried to block or get divestiture tied to it, but this is a whole different animal. this is really out of thin air there is no particular reason for 45 days as opposed to 60 or 90 >> yet there seems to be not a ton of pushback from the public, would you say, and i wonder what

that opens the door to in the future >> there's no pushback because tiktok is still on everyone's phone and it's working when day 45 comes and if microsoft doesn't have a deal with bytedance, i could see some pushback it's unclear whether he would follow through with that threat or not it would be a pretty bold move to take off a social media app loved by hundreds of thousands of americans just a few weeks before an election >> right, and it being an election tool no less. dan, thank you so much dan premak with "axios." the trade war is having consequences for schools as they shift to online learning we'll tale you who could be impacted the most. plus this stock is the fourth best performer in the s&p since its march lows it's up 140% and it's the latest addition to our overcrowded kings segment. we'll reveal ahead back in two. woman: my reputation was trashed online.

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welcome back to "the exchange." let's check on your markets right now which have been generating so many headlines over the last couple days. the s&p yesterday closed at a record all-time high we're already above the record high, so at this point anything above that is gravy. the nasdaq today is up 31 points or a quarter percent, and again, apple's strong performance crossing the $2 trillion mark for the first time is now a major part of both averages, about 6% or 7% the dow up several points, the high was about 50. technology, communication services in the leadership today, but also the industrials are up there financials are positive as well. your laggards include rate-sensitive areas, utilities, energy, real estate, real estate down 1.4%. some of the users today are buyer marin that will delay its

gene therapy treatment for eh e hemophilia until 2022. on goodyear, they wanted a ban on maga hats, make america great again hats they're down about 10% a share also southwest airlines had a cash burn rate in july, and they think they'll burn less than in third quarter. we know people have been flying a little more lately let's get over to sue herera for our cnbc update. sue? >> thanks so much, kelly here's what's happening at this hour, everyone the u.s. is formally terminating three bilateral agreements with hong kong covering extraditions and tax exemptions

that is in response to china's imposition of a sweeping national security law that the state department says has, quote, crushed the freedoms of hong kong residents. a man known as the lottery lawyer has been arrested jason curran has been trying to steal millions of dollars from lottery winners who hired him to protect their money and from scam artists bioluminescent plankton light up california beaches. it happens when the plankton gather in groups i have actually seen that firsthand when i lived in california it's a beautiful sight a little eerie sometimes >> a lot eerie, sue. thank you so much. what target ceo just said sets that company apart from

walmart. the state department wants universities to divest from china. netflix is testing a shuffle button and the fanny pack is at a th'sll up ahead in "rapid fire" right after this

. welcome back to "the exchange." let's catch you up on a few stories that should be on your radar today. it is time for "rapid fire." here with us are robert frank, les bee pilie picker and frank d target reported second quarter earnings and basically crushed every possible estimate. they had a record 24% growth in same store sales the share price reaction is even

more interesting because we saw the home depot report, 24% target shares are at 12.5% ceo brian connell attributed it to the covid lockdowns themselves take a listen. oh, i'll tell you myself exactly what he said, frank holland. and he said it was specifically spending on vacations that weren't happening that had people spending in target instead. >> you know, kelly, stimulus checks are a factor. i think everybody can just admit that you put cash in people's hands who own homes, they'll spend it on their home at least in part today lowe's also had a blowout quarter. i spoke to their ceo he said something similar. stimulus checks are a factor, but aging stock in lowe's case there are a lot of reasons people are spending more on

their homes. one is stimulus checks, and the other is what else can you spend your money on? it's hard to leave your house safely >> leslie, there is something else with this, too. target was allowed to be open during a lot of shutdowns because they sell essentials guess what, they didn't let the non-essential stores stay open and much of them across the country were forced to be closed >> they took 5% of most of their competitors from mom and pop stores and competitors, big box retail stores. you're right, there were winners and losers in the second quarter, those businesses that were essential that got to stay open we've seen lowe's, home depot walmart, target all clearly benefiting from being able to stay open. the e-commerce business did well there is no question that people are continuing to shop there, even online, but i think being

open and deemed essential, they were beneficiaries of that >> $5 million, robert, is a big number the other thing you wonder about is, is that going to be sustainable, so maybe taking a market share is somewhat sustainable if a competitor goes out of business. but once people start taking vacations again, you're not getting the same discretionary spend. >> yeah, and they also need more stimulus the reason the ceo was telling becky quick on "squawk box," they need more stimulus from the government the physical stores got help from the government in terms of the checks and in terms of being sdee deemed essential here's the number that struck me 5 million. that's the number of new digital customers they had in a quarter, 10 million new digital for a year there was a reason today that amazon was down in the morning i think the online piece here, which was the majority of the percentage point growth for target, was the story, is the story, and will be the story going forward. those are just huge numbers in a quarter when they were already

doing well digitally >> yeah, it's like maybe amazon isn't a monopoly after all, then i see the share price at 3300. you're like, well, it's still pretty big let's move on and talk about some news on the netflix front they will make a shuffle button. it's supposed to make it easy for people to find something to watch and netflix hopes to make it a permanent feature anyone here think it's a bad idea >> yeah, terrible idea two words. womp, womp other things they've tried is a bad idea your watch feature creates things you like and don't like, it's really unnecessary. it's a future with a problem >> i think it's funny netflix is trying to get us to watch more netflix at this time i feel like i've never watched more online television as i have during this pandemic when everyone is home

ifr i have a theory and i joke about this with my husband that the pandemic actually waited until we had peacock, apple, apple plus, disney plus, all these options to watch i guess disney is just making sure we stick with them when we watch their shows. >> robert, i'm not a huge user, but to me it would be a no brainer move they need some better options. >> yeah, look, curating is a tough thing. there is so much to watch right now, it's so hard to figure out what you should watch. i would worry if they had a shuffle button, they would put things they want to promote in the shuffle as opposed to things that would fit my views. clearly i don't watch much streaming because when i turn it on, it's overwhelming, i don't know where to start, as opposed to spotify which is a three-minute song. it's like, do i want to start this series? it's daunting.

>> frank, what's your strategy if you have this clearly figured out, tell us and everyone else >> i watch what i want to watch, i don't watch what i don't want to watch and i'm done. next up, another hit to chinese stocks these days. the state department is now asking colleges and universities to divest their earnings they asked them to shed these investments to warn potentially strict measures. college foreign investments total were about 13.9% those more than a billion dollars. robert, would be the practical significance of this >> this is huge. look, we've already seen the gi beginnings of the splinternet where we have the split of the

chinese internet and the u.s. internet you have a u.s. capital system and a chinese capital system, and this is a dangerous sign where the government is telling universities, do not invest in chinese companies even if it's listed in the u.s. it's tricky because they probably have a fiduciary duty to pull out of these stocks because they've been warned. on the other hand, they probably want to participate in companies like alibaba that are strong goe companies and may be a good investment politics is starting to get involved in markets. >> they're overlooking a derivative fact that they also invest in hedge funds. hedge funds don't always tell their lps, being endowments, what they're invested in that does put endowments in a really tricky place on that

front because it's unlikely they'll get the hedge funds to tell them exactly what they're invested in at all times, but does that put them in a tricky place from a hedge standpoint? >> that's a good point for anybody who wants chinese holdings who they're invested in will have to come up with ex-china offerings. there is an incredible story in the "wall street journal" that details what's happening on college campuses where they are using code names for students in chinese courses because the chinese students are afraid of basically kind of -- i want to say consequences -- of what they say in class with the chinese government if it doesn't comply with what the chinese government wants. we're talking about places like princeton, and because they're doing online learning, they're basically afraid that online class is going to be hacked and

eavesdropped and used against them it suggests the politicization on chinese campuses, that's a much bigger issue than divesting from chinese stocks. >> it is a huge issue when you look at the cultural battle that's happening right now the cultural battleground is happening in universities. it started two years ago when the administration made it more difficult for chinese students to come to the u.s this is a huge source of revenue for the universities and colleges that have grown dependent on this money from chinese students and you have the difficulty now of not just sort of a hostile environment for many of these students in class and universities, but also allocations by the government that they're stealing research in the labs and also difficulty in finding a job after university so the universities are the battleground where this culture war is starting and playing out, and it's just starting >> you're absolutely right on that front sticking with higher education, colleges and universities are seeing way fewer students in general this year, no matter

what form their education is taking harvard announced that 20% of its first year class has deferred enrollment. meanwhile, an "axios" poll today shows that of all four years of college, 20% of students, frank, are planning not to enroll this fall, and look what's happening at notre dame? even the ones that showed up might be sent back is it too late for them to defer? it's such a headache what do you do >> certainly a headache. number one, it's not a crisis, though people are still able to learn online it's not ideal personally i really enjoyed my college experience it was great to be in the dorms, it was great to take part in college activities like that. 27% of schools are online, only 24% are to be determined, so it's not that crazy for 20% of harvard students not to be enrolling this fall.

great a.c.t. scores are not a cure for covid-19. >> they were looking at the colleges and yoouuniversities t were still taking students, people are looking into going to california where they can get tutors for their kids because they might need to pull out. there is something huge for things different this fall >> yeah, and there will be a lot fewer slots, not just at harvard but all these universities, for the graduating seniors of 2021 all these effects that will crowd out -- i don't think it's a tragedy, as frank mentioned, but i think there are all these secondary effects that make it really tough for high school and college students right now >> frank, i totally take your point about the learning aspect of it, but most kids want to get

out of mom and dad's house they want to go to that college, they want that experience. i guess in harvard's case, they'll just wait a year, most of them. finally, guys, before we go, we have to mention this important faction story everyone needs to know about. the closet is full of lululemon and fanny packs because people are abandoning their purses for the hip huggers. it can carry your mask, phone, et cetera. today's fanny packs are a little more chic than you might remember, leslie but we've all had this experience there's so much more to carry now and you need your hands to deal with opening doors or putting on masks, et cetera. there's one for $35. i might order one right now. >> that's a really good deal i will say this, we're kind of living in an era when you go to the grocery store and the drugstore and you're carrying a big bag with all your stuff and you accidentally bump into someone, can you imagine the amount of purell and alcohol you

would need to put on your purse to make sure it's okay with a fanny pack, you don't have to worry about that i'm one person in the camp that is excited these things are coming back. i think they're great. >> the thing, robert, we've been hearing about the return of the fanny pack for years we keep hearing about it, we keep hearing about it, and finally with covid it's arrived. >> in 2017, sales tripled. the next year they doubled so this was even happening pre-covid. i don't understand it. i guess it's the yoga pants thing, because when you're wearing yoga pants, you don't have pockets anymore so you need something and you don't want to carry a handbag. but now more than ever, you have a lot of stuff to carry. i just don't understand why people are rejecting handbags because they do still have a lot of stuff to carry, maybe even more you got the sanitizers, the gloves, the masks. why is a fanny pack cooler than a handbag? i don't get that >> robert has been modest.

he's been wearing a mers for months now >> i thought he would have a louis vuitton one or something >> no, no, anti-fanny pack >> i appreciate everyone joining us today, thank you all. robert frank, leslie picker and frank holland for "rapid fire. a search for online learning and a pursuit for higher education has left college dorms empty and that has big implications for the housing and bond markets remember, you can listen to us live and on the go at cnbc.com

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

♪ w♪ i keep working my way a way tback to you, babe ♪ ♪ with a happiness that died ♪ i let it get away servicenow. the smarter way to workflow. welcome back to "the exchange" with more university shifting to online classes only. demand for dormitories are falling and that leads to more online growth. >> typically in august students

are start to go move into their dorms and make last trips to ikea to fashion their rooms. but now that we are expected to pivot to online, it could lead to a decline in occupancy. chapel hill's decision to go virtual means requests for reimbursements for housing is growing. t people could go into debt after taking out funds for it. studenting housing reaped american campuses for its worst year since 2004, down 32%. and the credit rating s&p is

certainly taking notice of this trend. >> and now a raft of defaults. we appreciate it we'll talk more about this now i'm joined by randy girardi, head of municipal strategies at wells fargo securities randy, it's good to have you how do the dominoes continue to fall here? what do investors need to watch for? >> thanks for having me, kelly we were already cautious with the higher ed space coming into 2020 we certainly think moving to online learning, the hybrid model, as ramifications for student housing as mentioned i think there are three things students need to focus on, location, location, location where these facilities are located, being on campus versus off campus, amenities will be the second thing to focus on and the ability to reaching student interests in changing preferences, like not sharing dorms, for example, showering that has a bit more privacy, et

cetera, in this new age of covid-19 >> i'm going to ask you this from the college point of view even though you're the investing guy, but what happens once colleges default on these payments presumably they want students to come back and fill those properties in the future >> one municipal financial, usually you see an ability to continue to move forward as an institution. while these projects may have challenges, we they the universities will largely remain intact so i think if they can, you know, develop a situation where they downsize their inventories, make their inventory more palatable to their student structure, we think there's an opportunity for investors to continue to invest, and recoveries may be able to be gained if we can get through this patch and get to a more adjusted learning structure, where you have a hybrid and traditional model together

do you think this will rep some kind of permanent shift? not just because of the pandemic, but because of all the trends and forces that were building up against the proliferation of all these colleges and universities prior to this? what is your guess about how that shakes out? >> sure. i think, you know, small liberal arts universities that are, you know, in a high le competitive market with students already the demographics were moving against colleges and universities we think there are chances of private universities shutting down, but beyond that, state and local pictures, the large state universities, we also look to states for aid we think given the challenges that the state and local government level, we think stay tuned aid will also be pressured. so they're feeling it on both ends in terms of the push on the business model that was happening before covid-19 we think this just accelerates

that trend there will be winners an loser for sure we think there needs to be an adjust to the overall market. >> so we have talked a lot about the loser, candidates were starting to see already give me a name or two, a way to invest on who might be a winner here. >> sure. we think the up quality trade makes sense, the a universities with strong docume with endowments, where we're most concerned is ball liberal arts universities that engage in speculative products for growth they thought would happen. that's certainly curtailed we think higher education offers a decent at the tiprospect and given the strong technical environment we're currently seeing in our market. >> we haven't even gotten into

your orel specialty in stadium, maybe we can do that another time. >> randy girardi is from wells fargo. sticking with education. at a time when tech is critical. s, the trade war is having unintended consequences. ylan mui has more. >> this story takes you from the muslim weers in the far west region in china, to students here with distance learning. a chinese company got blacklisted over human rights violations bitland is a supplier to lenovo, so the sanctions ended up colliding with a crush of orders from school districts who were trying to gear up for virtual learning now these districts are telling us their orders are getting seized during shipments, and it could take weeks, even months for them to be replaced.

with you districts in missouri said they have had 645 laptops received in indianapolis, another district sis it's waiting on 3700, and in denver, as many as 12,500 laptops could get hit kelly, we did reach out to lenovo for comment they did not respond, but schools tell us it is working with new suppliers >> you probably have experienced this as well, ylan, the scramble for any type of laptop, and people are now learning their kids might now need more laptops. >> that's exactly right. thereof 7 million students whoa do not have a device at home to use for virtual learning the real concern is equity how many kids will not be able to complete the schoolwork they need to do because they simply don't have the technology available to them. that's creating a huge back backlog to ensure there is that one-to-one ratio

>> i have a laptop each not been using, so maybe it's time to wipe it and get it into the rights hands we'll reveal the stock next. a quick programming note national economic council director larry kudlow, will be on "closing bell" today at 3:00 p.m. eastern time. you won't want to misst. i

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whirlpool is the fourth best performers the blue line is the current stock price. purple is the 50-day moving average. even more so than toll brothers yesterday, this is 24% above the 50-day moving average. so rsi is 83 the higher it is above 50, the higher that gauge as far as traders are watching it. remember, yesterday with toll brothers we were more in the mid 70s. the average analyst estimate is still 10% below the current price. this stock is up 24% this year, up 187% from the 52-week lows, and by the way, you get a 2.6% dividend yield not bad. that does it for "the exchange." coming up with notre dame the latest to move to online classes after a covid outbreak, we'll look at the future of in-person

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