under here, it's had a good run of getting back over 100 i remember you saying that on a number of occasion. >> pete, last but not least. >> c.h. robinson edan prairie, and i think we saul some call buys to the up side. >> good to see everybody thank you for watching "the exchange" starts now. >> thank you, scott. buckle up. there's a lot today its a make-or-break day for ridesharing. lyft announced it's suspending services in california we're going to speak with the mayor of san jose about this huge story and the impact it will have on california. plus the two-speed recovery. we may be at record highs and unprecedented market caps. over 290 stocks in the s&p 500

are still negative for the year. down 23% on average. we'll dig into the disparity verizon makes a bold statement where cash really isn't cash, and taco bell redefines fine dining. the low is at the open, that's the good new, but flattish in the middle of the day. when you don't know what to do, buy megacap stocks that is basically the story. i see only ten new highs the russell, though, 10% above the old highs. there's your megacap tech stocks apple is up 10% this month alone, now safely back over that $2 trillion market capitalization level we keep an eon. anything around technology, so people are interested in buying cloud computing. there's an etf for that,

internet stocks that has a lot of good movement that's getting a lot of traction. everybody else, look at the bank etf. people keep asking the same about it mini rallies 31 to 35, back to 31, all in the space of two weeks that's very typical of what happens with these cyclical sectors like banks, industrials. just no sustained rally in any of these what we call value names. guys, back to you. >> bob, thank you, sir turning to uber and lyft, with lyft just announcing it will spend ride hailing in california at midnight when a court order takes effect, forcing the company to treat drivers as employees uber is fractionally positive right now.

it has not made a formal announcement, but warned it would do the same. dierdre bosa, what do we no? >> reporter: both companies have been warning over the last week they would have no chose it would be an enormous change, however the writing has been on the wall for these companies the gig economy law, on which which all rests, that became law in january instead of working to change driver classification, uber and lyft said the law didn't apply to them. the state legislature saying it does apply, and they're digging in so we're not at a standoff, with

ridetwharg effectively likely shut down the companies before had played high stakes back and forth, but not to this extent. there's so much uncertainty this time around. >> why do you think that lyft is going ahead and suspending rites? is it a political gambit the next potentially way is where voters will have a chance to allow uber and lyft to operation --, this is why i say this is expect ed when they fild that preliminary injunction that by today they had to adhere to ab-5, a gig economy law.

is there is still a chance that the judge says, okay, here's a stay, and a judge could say we're going to grant you a stay until that's sorted out. that's looking increasingly unlikely as we get to 10:00 a.m. here on the pacific coast. those changes could take effect at midnight, so we're just waiting for uber to do the same thing. perhaps they're hoping that something does come through, but it's pretty remarkable tomorrow morning, more than 100,000 drivers in california that rely on that incomekucome amid this recessi recession. >> deirdre, great reporting.

thank you. let's talk more about the share price reaction both have you had a rough rice whether happens now as they exit this new -- he's senior research analyst. what do you think about the move here >> well, i think the stock price moved today basically reflects, 16% of rise in the second quarter versus uber. having the draft of the different portions than ridesharing. i think that explains the

difference reactions and stock price today? >> what happens, let's say that uber also suspends ridesharing, but as we understand can continue to operate ubereats what happens to the companies? oy they wading for public pressure so as far as ridesharing goes, both companies will experiment alternative models there's news reports about both companies exploring franchising opportunities to allow them to generate potentially some revenue in the state of california, its between now and the prop 22 vote, or potentially over the langar -- longer term

i think the major issue will be getting prop 22 passed we think there's a large and vocal chorus on the drivers, and probably will be visible the biggest question is can they convince the broaderwhat happened happen -- at a high level, you would see costs go up potentially by as much as and you could see a hike in prices.

there would be fewer cases where it would make sense. maybe we could still yield a profitable business over time. certainly the whole vision of the ridesharing industry, transportation as a service, that would look pretty i think tough to achieve if they're forced to classify drivers as employees. >> tom, thanks very much for your time today. we appreciate it again, lyft sharing down 4%. uber fractionally higher they're slightly less exposed. yesterday mayors issued a joint statement. the mayors are saying california had implement solutions to lead the economy or to be led by others, especially with 1 million gig workers hanging in

the balance. sam liccardo, mayor of san jose, is joining me. what happens >> i'm actually the mayor of -- >> you know that's how you know i'm an east coaster. >> of course the mayors of two of the three largest cities in the state we have a hall million driver for lyft and uber it's a disparate moment we don't want to see more people sitting with an outcome. one that can enable on-demand platforms. the. >> so let's talk about that. as employees with benefits, or

to treat them, what would this third option produce these benefits >> well, we need to clearly move beyond this ridge i had dichotomy to this third way. essential it would be paid into by the companies throughout the country they are looking at this very solution. the dollars would stay with the driver or with the worker as they go from company to company. many drivers are -- they may be delivering for doordash or uber, and either way the dollars stay with them. they can use it for health care, paid time off, whatever they choose, but they have the flexibility and they keep the dollars. in addition, there have been other kinds of offers being made out there, anywhere to portable benefits around collective bargaining, around commitments,

around safety. let's got to the table and negotiate this so you're left -- or maybe going to voters in november, and basically an exemption, neither of which would solve the fundamental problem and leave ought other industries affected by ab-5 without resource what happens if there's no change this would be an opportunity to offer that third option. it just doesn't look like that's on the table anytime soon. >> in it doesn't happen here in california, i'm confident it would happen in new york or illinois it will be a shame sing we are the birthplace of the innovation economy in many ways, we would have to see the innovation start somewhere else we simply can't have an on-demand platform that provides

ubi ubiquitous service you can't serve those peak moments when you know the football stadium is emptiying out or when the bars are emptying out you're not going to be able to serve the suburbs and rural areas. you just can't serve a lot of geography outside of dense urban areas. the question is who's going to move there first >> i appreciate you drawing some attention to the issue, especially with this hanging in the balance today. >> i believe the while wild fires were threat -- by the way, in a year in which they budgets are almost under so much stress. >> yeah, the only thing we haven't soon is a sharknado here we have a quarter of a million acres that are in flames, and close here to san jose

obviously a lot of folks are concerned. we have evacuated a lot of people we'll have a tough summer ahead with wildfires and high heat >> mayor, thanks again for joining me we'll see what happens >> good to be with you. a group of state attorneys -- we'll back to california's attorney general be ser becerra. we're look under the hoot, next. it's finally here. after more than a year of speculation and talk, airbnb files for an ipo

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jobless claims last week the nasdaq is leading the way. the other major averages just about unchanged. the rally overall is continuing despite concerns about the economic recovery. 295 companies are still negative for the year what's causing this disconnect between the haves and have-nots? joining me are kim forrest, and mike at kushma, and steven stanley. of 1 it's agrees to have you guys all here. kim, i'll begin with you how is the market overall continuing to march forward, given that >> i think investors have said we're going to look beyond what's happening in the areas we know are not doing well.

we're going to focus on growth, and it's rewarding growth tremendously if you have any of those huge momentum stocks, you are hip hip hooray if you're not, you are waiting for your day, i guess. >> steven stanley, let me turn to you and ask's well, does it have a broader setback >> i'm skeptical they were down 500,000 over the prior two weeks, and then we retraced about a third of that today. i think there's more volatility in the claims numbers than there actually is in the overall labor market we're seeing gradual recovery, still very high unemployment, but i do think we're make propping it's just tough to get a good read because of all the craziness going on with the benefit practical. >> michael, it's interesting that the bond yeels remain so

low. why do you think that real yields have been at such low levels, even though the economy has had somewhat of a have -shaped recovery why is the bond marked ticks to be so moribund >> i think you're right. we are coming out of a recession and the q 3/q d4 should be stronger the question is why is it happening? >> i this it's that the fed has changed their game plan relative to previous years and decades, and they are incredibly trying to boost their inflation rate in the country and incredibly so far, the market believes them that they will not change interest rates for several years. so we run relative to models

based on the and things like that, and ten-year rates do not look out of line with those fundamentals if you truly believe the fed will keep rates down at zero levels for one to two years in the future. >> steve, do you expect more monetary action? do you think the market is demanding that or not? >> usually monetary policies remains cyclical impetus, but really it's been fiscal policy that's been most effective this year i think what is more needed in the immediate future obviously with congress kind of bogged down right now, we need to see congress come back and extend some of these main programs, the unemployment benefits, the ppp, maybe even another round of stimulus checks the fed has done its thing i think it's likely to stay where it's at, which is

incredibly easy, but not much more that needs to be done in terms of new initiatives. >> kim, that brings us back to your investments you're sticking with technology. do you think there's other areas that investors can turn to and rely on growth >> i think tech is easy. it's the short-term iat-home trade, but also out further into time where you have trends like 5g, where that is holding -- or should hold up the revenues of technology so that's where i'm going to stake my bets, and tell you you should too. >> you're planting your flag on the tech moon, so to speak thank you all for talking about the markets in the economy today. we appreciate it let's dig more into the weekly jobless claims figures.

the president promised unemployed americans an extra $400 in benefits, but where you're unemployed right now makes a big difference where you get any of that and when. >> arizona on monday became the first state to start making those payments 11 states have been approved 19 have applied, south dakota the only state to say it will not apply, at least so far, the governor citing the state's quick job recovery, on the assistance programs is part of a fema grant and requires at least $100 a week in state's employments. that's why states are finding it difficult to roll out. arizona's minimum is more than $100, so anyone currently unemployed qualifies, but consider colorado, where the minimum is $25, so officials have to sort out who qualifies, who doesn't. they tell us that would take

until mid-september to start paying another issues for states is how modern their systems are some may have to build a system that pays this benefit, further slowing payments, so some labor economists and experts say this fragmented roll-out is creating an unfair unemployment sum pass nating as to why arizona is able to do it more quickly with the somewhat arbitrary threshold. rahel, thank you very much big alcohol companies have been struggling, the delivery service drizzling has seen an upswing. this stock is up more than 300% it's the next mena in our overcrowded kings segment. we're back in two. woman: my reputation was trashed online.

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let's check in with sue for our update. hello, everyone. colombia's president is asking for the -- he is currently in u.s. custody after being convicted of drug trafficking. man mancuso's lawyers are asking for deportation to italy, where he also faces charges. most recently he and his wife sold one of their new york estates for $3.3 million they also listed one of the manhattan properties for $37.5 million and a bay area residents for $27.5 million. experts are recommending people wear masks in public barthelmes, because, get this, flushing not just totals, but in

and out urinals can release inhallable particles into the air. it can generate an alarming upward flow of particles that travel faster and fly further than particles from a flushed toilet ew. >> okay, was anyone not wearing a mask that's the first place i would wear a mask. >> i think we need to move on. today crowded king is plug power, ticker plue here are some of the stats that tell you how crowded, how much momentum this name has it doesn't look like a huge amount here. it's actually 60% above the

50-day moving average. its r.s.i., 75 levels above 70 generally indicate overbought. here's another gauge interest on robin hood, even though this is a $5 billion market cap company, it is number 13 in the top holdings how has the stock performed so far this year? how about up 333% year to date and up 570% off the 52-week low. so more than sextupled flood was at $2.06 back at the lows at march. still ahead we will speak with california's attorney general about the potential lawsuit against the postal service, and lyft's decision to suspend service in the state tonight.

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time for rapid fire. here to break down the headlines, welcome one and all first up airbnb has confidentally filed to go public in all years, it's been a rough ye

year what do you make of it, robert >> well, look, this was the story of the cupback that will be their narrative things looked dire in may, it looked like no one was traveling, so the whole airbnb concept looked like it was going to suffer, and then they came back people couldn't fly, they wanted to stay close to home, so they've been doing well post-july. now they're going to take advantage of that with an ipo. my question is what the appetite will be for investors for a company that doesn't make a profit in the first nine most last year they lost something like $100 million, they're saying revenues will be half of last year. i just don't know whether investors are going to really care or say this is a new business model and it's here to say.

interesting think, there seems to be a deadline, because so many employees have stock options as to expire in the fall, basically will be worthless if they don't get it out this year. >> peter thiel, one of the early investors, and the next story as well, they want to get paid. let's forget what you learned in montessori school. sharing is a brad news airbnb hopefully will shift their model, but here's the thing. you did it on the lyft story as well, don't underestimate the regulatory risk. if california is basically shut nour lyft and uber, the hotel lobby is huge. there's some regulatory risk here, and maybe the model doesn't work in every city >> you think they have a solid future >> i do.

what they're seeing is while bookings you are plummeting, they're increasing in rural areas. we have a woman who hosts two sites outside of austin said that initially now she's booked through october. she's even been raising her prices to try to slow down demands. i think while people aren't necessarily traveling as much to nor or san francisco, they are wanting to get away from the city to maybe more urban or rural areas. >> and the ceo has been insistent that this that this is going to happen. palantir is moving to denver, colorado alex karp slammed the monoculture of silicon valley, but it's not clear --

>> first off, alex karp haven lived in. >> caller: >> caller: he livers in a barn in the middle of new hampshire. i was born and raised in california, but it's not what he calls the monoculture. it's the cost of housing they pay their employees in equity, it's hard to make rents. you have heat waves, blackouts, record droughts, fires, pg & e california trades on the weather. when the weather goes haywire, it loses a lot of its attractiveness california, i love you, i grew up there, but you've got to fix this >> yes, you came to new jersey where the financial profile and weather is solve better. >> i went to virginia, kelly, your home state, which i still love, the old dominion. >> shenandoah valley, you can't

beat it. >> the average cost of a house in palo alto is $2.75 million. the average in denver where they're going to move is $460,000 the tax rates in california is 13.3, in colorado it's 4%. enough said. the cost of living, cost of housing with remote work right now, you can go anywhere >> still, a better move to denver my sister lives out there. it's quickly becoming mini-california, pricewise, culturewise. anyhow that hulu, disney plus, and by doing so, they're making the statement that the economics of the old pay tv, which they have with fios no longer makes sense. one executive saying the current chain is not working, it's broken rahel, ouch. >> i'm so amazed how fragmented

media is i learned about one of my own companies. apparently with t mobile you now get netflix for free this has been an enlightening rapid fire for me. it's hard to know even nowadays what comes with what it's just all too much >> i totally agree you have to figure out where you can find it first, if you have the app and how you subscribe to it. >> i miss the old days. >> hold on, hold on, let me jump in. >> if they had all these channels into one priced package. go ahead, brian. i was going to say let's not get all in love with the press release. these not free they love to use that word it's only available on their two most expensive plans, play more and get more if you want a cheap eer verizon

plan, you're not getting it. that plan is only -- >> it tells you -- robert? >> it's only $45 for the premium plan so it's really a $30 plan. so it's pretty cheap you're getting a ton of stuff. i don't know if it drives sales. look at at&t and hbo max i don't know that that's really driven sales do people really keep subscribing to the stuff after the free period runs out disney plus is typical ivity verizon unlimited or whatever -- my neighbors when they realized we got disney plus for free, they were like, share the wealth i do think it's a driver i do think it tells you that the world is shifting, but speak of which, instagram's new feature suggested posts. here's how it works after

scrolling through your feet, you see an alert saying you're all caught up, but now they're going to use that for suggested posts to use, including ads. >> i've never seen that come up, either but apparently once you get to the bottom of 48 hours, it says you're done. kelly, what is interesting, this could be taking another page out of tiktok. we know they recently launched reels. it's an endless amount of contact. for instagram it's a win-win more space to monetize, more space for ads and another hint-hint hit at tiktok. >> brian, what would you say >> robert frank and his facts and stats knocking me down he won that round. [ laughter ] >> number two, i'm not the guy to ask about instagram

i just post music recommendations. i have a great music library, check it out. >> i didn't know there was an end to the feed. that was news to me. edge apparently it will be ads s with more drive-thrus as he pinch nenly shifts two company-owned locations, but brian, this tells us the fast-food experience

>> you might remember about a month ac you have a readily smart guy remember that when you could have the drive-thru only now we have the double-decker drive-thrus. everybody has about 50 cars in it. >> i was through a couple chick-fil-a drive-thrus. the other i was in for so long i started crying i went for breakfast, ordered for breakfast, but didn't get -- i was there, but i couldn't get to the -- >> to brian's point i will cede he wedbush upgraded shake shack,

so on this offoccasion maybe we're seeing more restaurants start to install the drive-thrus. >> to me, robert, what's interesting is the cost of doing this these are major, make overhauls. and that's why taco bell is calling them consequence years of ages concierges and bellhops. if this was a double-decker drive-thru, how does it work what did double-decker even mean >> it's not vertical it's side by side. i know you're in a penthouse in manhattan and your driver has

never been through a drive-thru, but let me be clear in breezewood, pennsylvania, i swear i saul 500 cars double wide at a mcdonald's, and same thing happened, at 10:33, they stopped serving breakfast. >> i'm not too proud to admit, i cried an then got some chicken nuggets. thank you all very much. coming up , threatening to sue the postal service he joins us toisss dcu that and more happenings in the big state of california. stay with us

welcome back to "the exchange." a multistate coalition

threatening to sue the postal service after controversial changes were announced dejoy has since backed off the changes. is it enough to satisfy this group of attorneys general joining me to discuss what is next is california attorney general javier becerra are these still planned, these charges? >> we're moving forward. we have to believe it's the deeds that count, not the words. the words were scarier enough, but the deeds are still outstanding. below it's in person or by mail? >> should we expect it to be filed? we are joining with the state of baba and several other states.

whee essential making sure that the federal government, the administration abide by the law. postmaster general dejoy pretty much admitted what he was trying to do was against the law and we want to make sure he will follow the law. >> let's talk about the issues surrounding mail-in ballots for this election. this is the states saying that usps is dropping the ball. the usps and other critics who have said the states have said the deadlines too close to election day so should your partner states all be moving back the decided lines to both question and return a mail-in ballot? >> kelly, let's remember first and foremost the constitution gives the states, the right on how to set the elections, not

the federal government remember, too, the states have relied on the normal course of business that the post office has operated until for decades for example, california, you can dismiss your ballot, so long as it's postmarked on election day, even if it arrives a couple weeks after that states make accommodations, but the only entity making a change here, unlawfully, is the u.s. postal service the states have acted according to law and according to the constitution. >> especially for a presidential election, in california's case like you said, you could receive the ballot up to 17 days after the election and have it count what if the country is waiting for 17 days for the outcome of a presidential election? >> we did that in 2000 we want to make sure every vote is counted so long as every valid vote has

can be counseleded, so i think what counts is we know we have a process that's fair and has integri integrity. everything else is beyond the point. again, the states have a determine how they will go about that process the federal government should not be changing the rules of the game midstream to try to impact that that's why i believe mr. dejoy had to back away from what he did. the plain illegality of what he was trying to do was staring him in face. >> do you expect other states -- why not move those deadlines up to request these mail in ballots and get them returned earlier. is there -- do you think it's unfair for some people to be sending in ballots earlier than others >> you need to talk to the legislatures and governors in those states i know many states like california, we're doing everything we can to accommodate our voters so they can vote any number of ways so they get their

vote in on time. some legislatures have made it difficult for governors who want to accommodate because of covid-19 so they can go ahead and submit their vote by mail. it's been difficult because in some cases, mainly republican legislatures, for example, have been th warts the efforts of democratic governors to try to make it easier to get the ballot in, if you mail it, get it in on time we have to make sure every one is accommodated where possible and you get the process as accountable as possible. >> since every california voter will get a mail in ballot, we moved into our house in new jersey three years ago and i still receive the mail in ballots from the person who previously lived in there. there's nothing preventing me for sending it out >> there is something stopping you from sending it in you don't wantto go to jail. if you're not registered in a

particular state and you cast a vote, you're likely going to go go to jail that's what keeps us honest. there's no record of active and abundant voter fraud in this country because we have good neck nic mechanisms to provide for accountable. a lot of people move what we don't have are records and documentation and massive fraud of people trying to vote when they shouldn't. >> there's so much about this that we haven't experienced. we really appreciate you joining us to talk about this and your plans. >> thank you for having me still ahead, alcohol delivery service is getting another round of funding we'll hear from the ceo about that next and remember you can watch our listen to us live on the go on the cnbc app we're back in two. this selenite grey is so pretty isn't it? wow. jim could you pop the hood for us?

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welcome back to the exchange big alcohol stocks continue to be under pressure as many bars and restaurants are being closed because of covid it's been a story for drizly that has seen its sales increase 350% >> online alcohol marketplace announcing today it closed a 50 million dollar series c funding round. the money will be used to scale up its operations as consumers look to e-commerce to limit virus exposure while they buy their drinks investors include tiger global a backer of rihanna's clothing

line they are forecasting as much as 25% of alcohol sales will be made online compared to 2% today. continuing to use e-commerce even after the pandemic. >> the promise of e-commerce, largest selection compares in pricing, the convenience and delivery within half an hour and having retailers compete for the benefit of the end customer, that's what drizly can bring that's not going away. >> currently, the marketplace model captures about 10% of online alcohol sales it competes with instacart as bars and restaurants sales remain impacted by the virus, drizly provide alcohol company crucial intellectual property. >> when you think about what e-commerce can do, what this consumer likes and how that translates, we can provide a

level of depth there that cannot happen when you get to do that, you think about as you go forward, what do you brands represent and how do you get them closer to the consumer >> the money raised to support its online cannibas delivery as well cannibas market was estimated to be about $36 billion this year before the pandemic. still trying to figure out if alcohol and cannibas should be market and delivered together. >> is this like a parent's worst nightmare? >> it might be a parent's dream. you can get alcohol and wine sent to your house instead of having to go out because your kids are at home >> that's one way to look at it. thank you very much, sir we appreciate it that does it for the exchange today. coming up on power lunch, we'll talk to an early air bnb investor as they prepare to go public i'll see you with that after this short break i am totally blind.

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good afternoon welcome to "power lunch. all three of the majorindexes are higher the s&p and nasdaq below their all time highs that's as jobless claims for last week went back above a million. the gap between wall street and main street is growing while the market hits the all time highs small businesses around the country are suffering. many in jeopardy some have gone out of business we have details on the great divide air bnb filing to go public despite the coronavirus pandemic hitting itsbusines