see a call buy today >> mr. weiss >> xpo ready to push new resistance and get to new highs >> and liz >> invesco s&p >> very interesting. >> zoom. >> that's it for "halftime." the "the exchange" begins right now. see you tomorrow >> tiyler, thanks, and we'll se you again soon the nasdaq and the s&p jumping to new highs today as the bulls remain fully charged, but the bulls are flashing warning signals, the same we saw with that market top in january 2018. plus a miss on the jobs support today. but the numbers aren't telling the whole story. we'll tell you what recruiters are saying about the rate of job growth and where that job growth is it might surprise you.

$84 for a biking app good luck getting a bike these days >> you need a bike but you don't need it to ride higher because the market will do it for you these days kelly evans, green across the screen it wasn't that case earlier on in the session the nasdaq was actually showing, believe it or not, some weakness on the day, but the dow industrials are just about 2.5% below their record levels. not just there yet, but still 28, 28,903 the s&p 500 and the nasdaq, both of these hit record intraday highs. a weakness in technology stocks was taking that nasdaq in negative territory by one point. one place that was not negative within the nasdaq is the computer industry, semiconductors vaneck vectors is up 2.5%.

they continue to outff nvidia and others hoping to drive that trade today. talk about these momentum names. apple, tesla, zoom video you can see all of these fairly deeply in the red. apple is gaining some ground here all of these are off the lows of the session. still, they've been real outperformers as of late, still in many cases considered overbought by certain measures, but we'll watch to see if those momentum trades continue to move to the downside. that will be something key to watch there, kelly and for that -- >> you're a market guru and you need to step aside for a minute. >> i'll be socially acceptable >> we were talking about what dom was just outlining in a couple stocks today, but there are some parallels for the whole market that hearken back to

2018 here's s&p year to date. the purple line is the 200-day moving average notice what this is here that is a pretty stark gap we are now 14% above that 200-day moving average so again, levels we're seeing that go back to what we saw at the market top in january of 2018 it's actually worse for the nasdaq no surprise given the run we've seen there look at this gap we're now 22% above our 200-day moving average for the entire nasdaq in case you're wondering, the rsi for the nasdaq is now 71 anything over 70 usually indicates overbought if you're looking for some technicals to back up the trading action we've seen, this can kind of give you a sense that the numbers are getting pretty stretched can the momentum last? let's bring in aerial investments charlie briskoy and the founder of zoe international. it's great to have you both here, charlie, especially for

you. you've been pounding the table for this rotation. is it finally about to happen? >> who knows you're right, we have been pounding the table what we say is we know you can measure a bubble, you can see a bubble, you just can't tell when it's going to get pricked and you know that value investing works, but you just don't know when i will admit it's something we've been calling for for a while, but in the end, overvaluations can last a long, long time. eventually stocks go where their cash flow say they shouldgo. >> and i thought it was interesting on "halftime" where liz said think about owning the s&p liquid rate. if you want to vote on not one or the other but the concept there is some catch-up here, do you think that strategy makes sense? >> i think the beauty of having a passive approach on the markets is that the winners become a bigger part of your proef portfolio. you don't have to do your home

work apple has done great the last 10 years, 15 years, and that's why it's one of the biggest professi businesses in people's portfolio. that question is when, when will the markets have a significant crash or downside? but the big question of when is when do you need your money back because if you're an investor and you're day trading, obviously that's a huge question when where he going to see a huge downdraft if you're investing to retire ten years from now, that question of a downdraft becomes less important relative to whether the market is expansive or not, where are you going to put them? you at least can get 2 or 3% annual returns >> what about the investors who say, my investment horizon is when tesla trades lower. when i start to lose money, then i want to get out. that's the tricky thing. >> that's the point. i think a lot of these moves in

names like tesla, i think tesla being the most dramatic example of this is people seeing their friends making easy money and thinking they can make easy money and putting more and more money into that trade of the person they're watching. this happened in 2007 when the housing markets went crazy, when people saw their friends buying second homes with virtually no money down and they said, i can do that, i can flip a house, so they tried making money, and that kind of greed eventually pricks. when it starts to go that way, it can go that way in a hurry. >> some of your original stocks, charlie, you would recommend both warner, viacom and bbs. if you're into some of these stocks, here's charlie bobrinskoy, here's your one piece of advice. what's the best strategy right now. >> it is to be greedy when others are fearful and fearful

when others are greedy right now people are being greedy on some of these names. don't buy the names that have outperformed the 300-day moving average. that's just a sign of momentum invest in things based on the intrinsic value of those securities, and that's not that hard companies have predictable earnings in many cases, so the names you just read are all training for less than 12 times earnings, and avoid things that are overpriced, like long-term bonds. bonds are almost as big a bubble as growth stocks and tech stocks right now, so invest in intrinsic value. >> and the last word here. would you echo those thoughts or add any others >> the model i would use is if you're going to be greedy, be long-term greedy rather than short-term greedy. what i mean by that is if you're going to own stocks, own it for the next ten years try to make a quick buck on tesla's earnings >> you sound like a very old man, andre and you're not you have the wisdom.

>> this one works in the long term ask warren buffett >> but you still have the hair >> gentlemen, thank you very much for your opinions today, an dress garcia amaya and charlie bobr bobrinskoy the cdc's vieviction moratorium from the coronavirus. diana olick is here. diana? >> some say this does not go far enough, but the trump administration delayed most evictions through the end of this year. tenants must make less than $99,000 a year or up to $198,000 they must claim they are unable to pay due to covid-related financial hardship, and if they

are evicted they would likely become homeless or have to move into unsafe settings the cdc order specifically said eviction moratorium can be specific to help fight the disease. you can definitely expect some lawsuits there is fraud, though, by tenants who don't have to provide any hardship or prove it critics say this sorely lacks the rental aid needed and provides a debt for tenants and landlords that could have a significant effect on the entire housing market going forward kelly? >> is there anything in here for landlords, diana, to compensate for this fact? >> reporter: not really. on a call with trump administration officials last night, they said there was some money in some extra hud funding, community development bloc

grants, but they said most of that money is gone already and remember, landlords have to pay their own mortgages, their own taxes, all kinds of expenses on these properties, ask fnd for many of them, it's their own compensation as well >> thank you for checking in with us, diana olich for the first time health care is not one of the top industries what is it it might surprise you. from classrooms to smart buses. schoolrooms could look different this fall. the ceo of trek joins us live aadhe introducing stocks by the slice from fidelity.

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welcome back it's a pivotal week for the labor market weekly jobless claims are out tomorrow, and then on friday we get the all-important monthly jobs rompeport. a new report from recruiter.com gives us a look at where jobs are cropping up right now. here to talk about it, ceo and chair of recruiter.com evan, welcome back it's good to see you >> thank you so much for having me back, kelly >> your survey ticked up a little this month, but it's interesting to go back to july even when you saw it tick down just a little, the labor department was very strong so it would seem you're picking up on some strength both in july

and august in the labor market in general that for whatever reason the adp survey is not picking up in the same way, or perhaps it just kind of speaks to that not all of this discussion about hiring is going to show up right away in terms of the job numbers >> that's right, and we had this theory when we launched the recruiter index really at the beginning of the pandemic that recruiters can really serve as the air traffic controllers for the hiring industry and give a really good sentiment. last month we reported that the acceleration had slowed but not nearly the cliff that wall street was reporting >> so let's talk about what you have here for this month so in august you've even seen your sentiment tick up we're talking about a move from 3.1 to 3.2 every metric in august saw recruiters in july with more confidence about the job market and prospects over the next 30 days the top industries, computer

software and i.t. not surprisingly, but tell me about manufacturing. >> i think there's been a real push to bringing manufacturing jobs back to the united states and we're seeing that from the recruiter sentiment and the demand that they're seeing from those jobs >> it's incredible, because that's a very long-term trend, but there's clearly a post-pandemic rebound effect that's also at play. we saw in the ism manufacturing survey yesterday, a very strong headline number, a very strong new orders number, and that would suggest this is not a fluke, that there is some strength in that industry right now, yes >> i would absolutely agree. so we're certainly seeing that, and our data suggests that the 1.1 million that's being forecasted is really not a stretch. we do see, and we start to look at data year-over-year workloads, and they are down from last year we're down about 26% from the workloads of august 2019 it's actually an improvement we were down 32% in july 2020

compared to july 2019, so we are seeing that gap, so to slowly return to normal, we're going to keep a very close look at that trend to see whether that continues. >> tell me about health care which is, for the first time in april, not one of the three most optimistic industries. in a way is that good news that they're not scrambling to deal with covid right now >> so one thing, if you just stand back and look at last year's numbers, the jobs report for august 2019, they added 130,000 jobs in 2019 so even the most pessimistic reports today are three times, more than three times last year's numbers so we're certainly making a lot of progress. i think it really points to the challenge of hiring faster, and we're seeing first in june where lots of jobs came back rather quickly, and now we're seeing how do we bring on more people on a month-by-month basis, and health care could be one of those areas. i have job openings for nursing but i have to go find those

nurses, and we're seeing those sort of challenges facing the health care industry >> just anecdotally around town, i've been surprised at the number of restaurants that have help wanted signs up, because they're operating at much reduced capacity, yet they still seem to need people. i don't know if that's because they're not comfortable going back or what the story is, but when you talk about needing to hire faster, tell me about that and whether that's a new thing or do you think something is changing about the way we hire people >> internally we call it the great rehire how do you take these millions of people who have lost their job and get them rehired that's going to take a new process, a new technology, a new way of thinking. think about we added -- even on the pessimistic numbers, 400-plus thousand that they're talking about on the pessimistic side that's a tremendous increase from last year think about the workload and getting those people on board. something is going to have to change for us to bring these millions of people back to the work force

>> what might that be? >> we're probably going to start looking at ai technology and different screening technology you know, every interview that we've all done for our jobs were done in person that's going to change so we really need to think about hiring in a different fashion. you know, your first interview is not going to be done in person probably your second, probably your third so things are going to have to change screening out people how do you do that quickly and faster and that's really become really a mission of mine, is how do we help people get back to work quickly? >> yeah, it's like a giant matching problem, which, you know, in many ways economics has solved really well in other industries and maybe now can do for this one, too. >> i'll give you a great example. you mentioned that restaurant before that restaurateur posted a job ad for an employee that restaurant owner will be bombarded with hundreds and hundreds, if not thousands, of applicants that also creates an issue, when you have this influx of people looking for the same job

how do you figure out who the right person is and how do you move that process along the way? frankly, we don't have the time to take the same amount of time to take on board employees as we do today to get the economy return to normal >> 100%. evan sohn, thanks for joining us >> thanks, kelly like he said, maybe 1.1 million not a stretch. the dow climbing to 300 points, the nasdaq trailing at half a percent as some of the big names have struggled coming up, school will look different this fall and maybe forever. the new way of teaching as a result of the pandemic is next plus, momentum stocks are falling behind today is this just a temporary slowdown as you see tesla, zoom and salesforce all in the red, wna ould this be the start of doward trend we'll explore that, coming up.

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welcome back to "the exchange" where it's session highs pretty much in the markets right now. here's a look at what's going where it's pretty much a strength for the dow and the s&p in the broad market, but not so much the nasdaq. a different feel we've seen in the market the last couple months s&p is up 37, 1% gains the nasdaq only up half a percent, but it's up 12,000 which is remarkable to see behind me are the sectors, and utilities are in the leadership today. that just tells you what kind of market this is it's almost like they read the barron's piece the only sector not up is technology, but energy is up strong, if that makes sense. it's up half a percent a number of names like apple and tesla moving to the downside today.

here's some other movers for this hour including smile direct club which followed nearly 2 million share purchases by some of the executive team, including the ceo, who bought nearly 3 million shares they are up to about $9.35 amc is higher on the news it will open another 140 theaters this week and plans to have 70% of all theater nz ts in the u.sn by this weekend. and finally peloton is higher. so much for all the momentum names. peloton not dropping today it's now at 105, the street high, noting that current delivery delays aren't optimal but they bode well for ongoing demand tesla is up 2% year to date. now to sue herera. sue? >> here's what's happening this hour, everyone amtrak will furlough at least

2,000 workers as part of cutbacks for next year they will delay or suspend service on most long dance routes miami-dade public schools are being targeted by cyberattacks for the third day in a row they have caused complete outages and prevented students and teachers to be able to access the district's servers. unilever to eliminate fossil fuels in its cleaning products by the year 2030 the chinese diplomat to get approval to visit u.s. campuses. the move comes as tensions between the two are heating up about espionage activities you're up to date, kelly back to you. >> sue, thanks very much we've seen big gains with march lows with chegg leading

the way up 150%. the only thing we do know about learning this year is a lot of it will be done online what's less certain is what exactly virtual classrooms will look like. for more on that i'm joined by ylan mui ylan >> reporter: kelly, the pandemic is forcing schools to shift to an online classroom, and some of those issues will outline the coronavirus. the coronavirus is changing america's classrooms in some concrete ways, like socially distanced desks, sanitation stations and stockpiles of ppe other changes are less tangible but more fundamental as the pandemic turns the old model of education upside down. >> one thing we've learned along the way, we've got to think differently about creating a new normal within education. >> reporter: across the country that means embracing virtual learning despite the ground's appearance and teachers.

the virus is speeding up the technological corruption in our schools, maybe permanently >> we were marching a certain direction, leveraging software, leveraging the digital medium for teaching and learning. what this did was really accelerated our path >> hold on let's review >> reporter: she uses the same technology that others do using this avatar amir ay. once the pandemic is over, technology wouldn't need to be a replacement for school but an extension to it. the virus has exposed the digital divide in schools. now they are racing to provide schools with laptops and wi-fis, even buses that double as hot spots. >> we've had to change what we do structurally in order to

provide that connectivity and also provide road bus experiences every single day >> reporter: hillsboro has already spent $7 million on road devices for students it's expecting to spend another 17 million by the end fortunaofe school year. >> how do you think we'll do school in the way we get to school, do school that you think will permanently change as a result of all this >> reporter: i think one of the interesting things here is that hybrid learning has really come to the fore as a potential bridge between what you can do at home and what you can do in the classroom. and i think that teachers are also getting really innovative about how they deliver that instruction online there are all the fancy tools that we talked about in the package, but also i just got off the virtual orientation for my kindergartner's own classroom and this teacher had the idea of a play bucket where all the

virtual tools were there for them and they could build things across the platform. so you'll see innovation by the teachers themselves and also widening within the virtual space. >> ylan, thank you very much coming up, michael jordan's new job, credit card rewards and sin city's new sense all of that ahead in today's "rapid fire," after that constructing funds that don't simply follow an index. but explore new terrain. helping you fill portfolio gaps. connect to client goals. and strengthen confidence in you. flexshares. powered by over a century of investment expertise. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

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welcome back let's catch you up on a couple stories that should be on your radar today. it is time for "rapid fire."

we have dom chu, contessa brewer and howard frank con assetessa in the middle of w somewhere. good morning, everybody. mobil gaming company and skillz, with a z, is going back. that's a trend that's picked up a lot of steam this year bumble, the dating app, has a valuation between 6 and $8 billion with a b contessa, is this a sign that it's too frothy or is this a sign of the times? >> i'm in kingston, new york right now, just to be clear where i am if a spac is the way to get you into the public, if you can save some fees and generate some excitement, why not do it? take skillz, for instance, this

company had 206 million users. now it expects to be valued at more than $4 billion that values essentially each of these game players at more than $1600. it's a very expensive way to look at mobile gaming, and you have to wonder, how much more can they grow from here or what ways can they use their technology to expand in new fields and start to bring in that cash? >> the executives behind this company also brought draftkings to market. we'll talk about that in a minute, dom, but they do have a track record for me skillz is not exactly a household name what do you make of bumble >> the idea that you can do this kind of offering, whether it's the practice ditraditional kindg like for skillz, it tells you there is a time that investors will tolerate the kind of

investing we've seen it's just richly valued compared to the last couple months, last couple years, however, what it does tell you is that with the market at record highs, there are parts of the market right now that people still want to flock to and people still have ipo fever when it comes to a good name. you asked whether or not it's froth. i think it's a little bit frothy, but i don't know if you can say it's a total bubblicious market just yet. >> the new york stock exchange's plan is to let companies go to the direct listings. i think slack used it, a number of big name companies have gone public this way, but now the nyse's plans are on hold after council ilinstinv filed a complaint saying it lets them

invest for investors perhaps a backlash here? >> i think we're in this rare window with the market where investors are a little less discriminating, shall we say, about what they're bikuying, so we're seeing spacs, we're seeing direct listings where in the past they might have been a little more cautious and markets might have been a little more cautious about approving these things anything that disrupts the racket of ipo with the a lotments and the book building very expensive i think anything that simplifies this but still gets the information and disclosure to investors, i think that's the key. they served s-1 component of the ipo. as long as you have that, i think it's fine to go around wall street and get it directly to shareholders. >> although, dom, it was interesting because a lot of the direct listings, there's been a

lot of analysis about whether they are just as expensive as the typical ipo. and certainly the spac option would seem to be more costly >> if you're talking about why there is a little bit of pushback against this idea of direct listing, if you're going to use the thesis that it doesn't protect investors as much as the scrutiny around a traditional ipo process, i'm not sure i buy into that as much the reason why, if you're a retail investor out there, not many retail investors actually get allocations to some of these hot ipos who does get allocations are mutual fund managers, other large institutional investors and hedge funds who presumably can do the amount of legwork and home work that's required to scrutinize these companies before investing in them i'm not sure it's a big deal on that front, kell >> contessa? >> dom, i'm just kind of wondering, the council of institutional investors who is protesting this kind of alternative to the ipo at the new york stock exchange, they

represent pension funds and foundations and those large institutional investors. could there be a reason why they want to elbow out the competition from these, say, retail investors, if someone from robinhood wants to get in on the ground floor, they can't really do it on regular ipos >> nobody can, but the idea of having institutional investors be in the program on this, i don't buy into it as much if you're a fidelity or portfolio manager at vanguard or anyone, but if you're an analyzer who scrutinizes stocks, i don't feel like you're as exposed to this as someone like myself who might not do the due diligence of getting an ipo, so i'm not sure it resonates so much with me >> they're like, we want to protect the little guy, but the big guy, good luck to you, you're on your own i mentioned draftkings

earlier. let's circle back to that, because the big story today is that the greatest basketball player, one of them -- i don't want to get into the whole argument -- is it lebron okay, it's jordan. the greatest basketball player of all time is taking his talents to the sports gambling world. michael jordan is taking an equity stake in draftkings in exchange for being an equity adviser to the company they're up about 8% right now. draftkings has gone from a less than $1 billion cap company in april to an almost more than $14 billion company today, robert. >> yes setting aside basketball, michael jordan is the greatest of all time in wealth recreation from sports. there is no one else even close. >> shaq? >> he added $800 million to the market of draftkings, 800 million just by adding his name to the draftkings board.

setting aside that this is a guy who can sell his old sneakers for $600,000, he's worth somewhere between 1.5 and 2 billion. there is no one even close to michael jordan when it comes to creating wealth and value. >> even shaq, robert >> how about tiger woods >> not yet look, you add in the sneakers, his ownership of a team, jordan has taken it to a level that no one else is close. >> another thing that's interesting about this, contessa, it shows that online gambling is like the leading story in the business world. >> the owner of a professional sports team is going to be on the board of a gambling company. >> yeah. >> i mean, the kind of ent intertwining of these businesses is amazing

and draftkings probably said, are you kidding? how cool is that there is some pushback from the analysts look, you've got draftkings, as you were mentioning the valuation here draftkings is now, in terms of market cap, bigger than mgm resorts, bigger than wynn resorts, so you have to question how much room is there to run when they're not making the money yet. and is michael jordan going to be the magic touch that turns that tide? >> i think you make a good point, we have to move on, but this is a major basketball player on the board of a gambling company let's say hello to delivery and takeout because a new piece in the "wall street journal" today looks at credit cards as they scramble to update their customers' benefits to more pandemic-friendly business offerings. one said she saw a cardholder cashing in her points for hair dryers and golf balls. >> changing paradigms.

remember how many times we've done stories at our friends who used to valuate these credit cards, and a more specific credit card was geared towards you because it was better for dining miles, airline miles or ways you can redeem points for vacations and things like that now you have to adjust these things with cards, what i'm finding curious is this particular pandemic will then converge many of the benefits for these cards together, because you cannot offer some of the outsize benefits for travel. i'm curious about whether the commoditization for credit cards and points will go farther maybe it doesn't do as much for you because you can't travel >> robert, what do you think the

perk should be >> i like that they're offering points for the free meditation app. >> that is definitely a perk finally before we go -- that's the sound people want to hear when they're in vegas playing slots. but there are a lot of people pinching pennies there is a really bad coin shortage in vegas, isn't there, but it really only affects the smaller casinos, is that right >> you would think, because the coin slot machines have gone the way of, say, a coin parking meter. now when you go out and park, you can find these parking meters that also you can pay with an app and it leaves you -- if you only have pennies, fine, i'll just pay with my phone. in las vegas, they are still having a problem with coin shortages because when you go to cash in your ticket, you don't usually get it rounded to the dollar you have some change left. and the casinos are coming up

with innovative ways to find enough cash, coins, to pay back their players. for instance, boyd told us they have piggy banks where people can dump their coins and get paid for that. el cortez, one of the oldest continuously running casinos in las vegas, used to be owned by bugsy segal, said there is a real problem they ordered $400,000 in coins. people who want to hear that change dumping into the tray can hear it at el cortez, and here they have to take away that fee on the coin reduction machines >> we have casinos asking people to bring in their piggy banks.

so mom and dad are going to your piggy bank to empty it out to go play the slots >> if you're a casino owner out there and you have a robust food and beverage operation, here's what i would say develop a scheme, some kind of system, where people can round up their change into vouchers for food and beverage. that way you never have to pay out any of that cash, all you have to pay out is whole dollar amounts, and this is going to drive a lot of activity toward these reward cards that a lot of casinos have, because then you can bank those credits and use them for a free buffet i'm a buffet guy, so i would take that change and use the buffet >> i don't know, it's post-pandemic. might have to think about that thank you, all stocks seem to move only in one direction lately, up but are the overcrowded trades finally starting to crack? that's next.

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welcome back if you're standing right now, you might want to sit down for what i'm about to say, because believe it or not, tesla is lower today. it's down lower than 6%. it's its second down day today apple is down and shed a boeing in the market cap. and the new dow darling salesforce it's also in the red and this is only its second down day in two weeks. while it may be too early to call it a trend, what are all these declines telling us about the broader market for more let's welcome in cnbc markets commentator mike s santoli. let's start with you you said it's crowding but

extremely growthy. how? >> it's crowded but how many futures owners do own stocks today it was at 8,000, and the estate fee is really a reason these are at question. it's an ongoing change that is going to change the story about why investors like these stocks. really, valuation has been the single biggest issue for most of these names, yet we continue to see them outperform because the fundamental story is still intact >> and what is that fundamental story, real quick? >> from a macro perspective, it's a continued backdrop of interest staying for a long time, it's a lack of stocks in the s&p 500 who are only 50 or

60, and so it's not going to change investors aren't going to change >> michael santoli, let me turn to you i think what kantrewitz is saying, people want growth because they're not confident where else they might get it, but is that piece of it starting to change? when you see the surveys, hear about the industries hiring? >> it's starting to change, kelly, in the sense that the only game in town may only be these long sector growth stories which have these caps that are valued much higher given the fact we have corporate bond yields at 2% it's actually broadened out a bit the last couple weeks, if you look at consumer discretionary outside amazon compares to consumer staples those things have been trending in a positive direction, just not as dramatically. they're not capable of piling on the market cap that huge growth

stocks are, and let's face it, they don't captivate the public, the excitement you have around a handful of names that really drove them to extremes you know, the setup you had for the segment presuming everyone always figures these stocks are always up every day. that's why they're not up today. >> what happens now? it's one thing when you say, hey, virgin galactic was up. it's a tiny name in the grand scheme of things, but when tesla, mike santoli, is the eighth biggest stock in the world at this point, what happens if that one reverses and gives up the majority of its gains? >> well, we're seeing a small experiment in that right now it's off the highs you know, the rest of the market -- in fact, if anything, the weakness today, this reversal that you've seen to the downside in some of the momentum stocks, it's incredibly localized at the moment. it's apple, it's tesla, it's zoom, it's the stocks that was complaining about were up going into today, and we have an

overall market that's up you do have a safety net underneath it. it can't last forever. that choreography, of course, might fail at some point where you have the sort of rotation and this rebalancing in other areas of the market. but i do think the fact that apple can be dow that even much of more of a pull-back. extremely normal like we've had multiple times in the past few months i like your points about how apple can be down as much as it is and the rest of the market marches higher for now, thank you both very much talking about mo some. o in this market. still ahead, trek has seen record sales the cfo on why two wheels are so hot right notice you can always watch or listen to us live on the go on the cnbc

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as the pandemic changes the way we commute, people have been scrambling to buy bicycles particularly trek bikes. the surge in demand coincided almost immediately about the lockdowns. it's not showing a lots of signs service stopping with me is chad brown, cfo and vice president of retail at trek good to see you, bike theft, by the way, is up big time, because people are trying to get their

hands on this stuff. >> when you buy a bike, also buy a lock. >> yeah, exactly before diving into that aspect of this, tell me, first of all, we've had talked about how amazon basically every day is prime day, or appearle says last quarter it was like every day was christmas. >> the bike business has been doing well for a couple years now, really up through the first two weeks of march, things were up 10%, 15%. as an industry things were going well, and then the bike season starts about march 15th, so like christmas eve things started shutting down. as bike shopping were deemed essential retail, very quickly we saw some really unique shopping patterns, and demand that first couple weeks in april just took off. for us the inflection point was easter weekend, that april 12th

date we look at what was happening in the market, and it was just soaring, so it's been a rocket shall up since then. >> i imagine some people may be using it as an alternative way to commute if they don't want an uber or mass transit a lot of it is recreational. we've seen bikes constantly streaming through the -- and we tried to get a bike with the ride-along thing for a toddler, and we were told by the local bike shop, don't even bother coming back for a couple months, because there's no supply. why is the reply up bikes totally unable to keep up with the demand >> i'm so sorry you would have that experience. i would love to have you in one of our trek retailers. the boom happened in really early on we saw, like after everyone bought the toilet paper, they bought kids' bikes and entry-level mountain bikes as the supply got tight, it

worked its way up. from our per spect stiff, we took a wait-and-see approach, as both the pandemic took hold, as well as the surge in demand, and, you know, we're still shipping occupy tens of thousands of bikes every week. i promise, call your store, reout to your trek retailer, there are bikes available and there are more on the way. you know, the early shut down in asia, part of this year, did have a bit of a hiccup in the supply, but i promise you there are a lot more bikes on the way. >> the only options we had, you could get an oddly tall one with high handlebars, they had a couple, but not anything great to pick from how do you think this sets you up in the future if now every household has purchased a buy, does that mean we'll have a big hangover and things become unusually slow for a period of time >> you know, we're still seeing -- when we look at indicators look foot traffic,

call volume, we're still seeing a lot of pent-up demand. there are empty slots on some of the bike shop floors, but there are a lot of people who have bikes on orders. a lot of the bikes being delivered are maybe already spoken for, or that the shop has an idea of who might already be interested in that there are a lot of bikes coming. i promise you, come christmastime. if a kid wants a bike or you're looking for a friend or something, there will be bikes available. we're looking at this as an amazing opportunity. there are all these people on bikes now. whether they're using it for recreation or transportation, or just as a way to associate distance, it's such a great opportunity to get people outside, off screens, and enjoying the bicycle the message to me is there's a lot of bikes on the way. head just south to our store in

edgewater -- >> they're a little too upscale for our needs, but chad, a pleasure >> thank you. that does it for "the exchange." after this, the beige book don't go anywhere.

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good day, everybody. welcome to "power lunch. we start with record highs on wall street, and the dow is up 300 points the federal reserve about to release the eagerly awaited beige book we'll bring you the details as soon as we get them. plus wingstop flying