saying. >> and burgers >> pete. >> i'm going for the one with the gold on the bun. >> either way he's a winner, right? i'm going to give you -- i think there's material space ready to the up side. >> he's eating a burger, no matter what. it's whether he's buying it. everybody, thanks for watching q. the exchange" begins right now. >> thank you, scott. hi, everybody. they're taking the lead from technology with the nasdaq languishing down 10% from its highs. can this new group keep the market going forward

we have all of that and more ahead. we do begin with the markets. seema? >> we've soon an onset of new companies. some of the incumbents have come under pressure in recent days. that's led the nasdaq to trade down as much as 10%, currently down about 2% on the day as we said, some of the better performing names within technology currently down around 2% to 4% names like facebook and amazon trading down as much as 17% from their respectively high, but both those names still up about 30% on the year. now, one question that has come up is whether the pull back in technology names will result in a shift to cyclical sectors. worth noting, nine out of the 11 sectors currently trading in negative territory one of the sectors in the green instrumental, general electric now from the positive comments

from ceo larry culp. kelly, back to you. >> definitely a different mix than we're used to it's been a tough september for tech apple, am op sand facebook are down more than 15% in that time. why this sea change? and how deep of a reset should we expect? joining mess is james mcdonald, and bryce dody welcome, guys. james, i'll start with you i know there's a lot of tech themes you like, but would you say that the pullback in the big-cap tech names is telling us something more broadly >> it's important to understand context. august had a 30.po 2 average p.e. ratio as we know, that's dominated by tech that was 9 highest average p.e.

month in years. i do think there's continued down side so we'll have some tepid growth, but when we get a pullback, we'll go in and buy. >> you say it's because of weakness in the make roe environment and problems with covid. a lot of people are thinking it's because of the economic rebound, because people are finally rotating into some of these other names. they say i can find growth elsewhere. what would you say to that >> let's put or thinking caps on

what happens when supplementary benefits run out and what happens with the great bull market of ten years and the fed where the smartest people in the world they're going to hold rates until the end of 2023 at the earlier there's going to be ramifications from what we have seen the bounce has stopped, and we'll see that across the sectors.

>> so, bryce, let me turn to you. >> i think the timing that he's talking about is kind of critical in the near term, usee some hits but the vaccine trade is alive and well. so the market is looking out past that. in bonds we're focused mostly on some of the reits, and hedge

yearself with some tips because the fed is not going to stop inflation. if it continued, the cpi would be over 5% i think the market is confused by that you'll see a lot of opportunities. >> but, you know better than anyone, the market is not extrapolating this into the future the ten-year is sitting at bare le two thirds of 1%. the fed itself yesterday said it basically doesn't believe it would get to 2% above inflation for the foreseeable future, despite that being its mandate.

>> just starting to warm up to high yield again, the amount of money that delta or some of the other airlines have been able to raise, will be enough for them to be sustained throughout the downturn, so high-equaled investment-grate names are still there. now, reits, it's a minefield stay away from office reits. they all have certain kinds of leverage if the fed will keep rates super low, their borrowing costs will be super low

you know, you can get a reit that still has some air on it. it's not risk-free, but you can -- >> it's got a little hair on it to get any return these days we'll leave it there for now, guys thank you both. redfin is out with a record that home prices were up 11% year on year, the biggest gains. in a housing market that's running red-hot. this means home buyers are facing a median price of nearly $330,000 welcome to you both. daryl, i will just start with you. what jumps out the most about

this home price appreciation that we're seeing? >> it's just remarkable how strong the housing market is when the rest of the economy is in turmoil i think it's because of how different this pandemic recession is from other recessions in the past and we're seeing this with music at chairs where people are swapping homes to get what they really want. >> are you seeing these gains across the country are those concentrated in the suburbs? is there an offsetting effect? >> it went up in every single metric we bush but the suburbs and more rural areas are much hotter than some downtown areas. the weakest are in san francisco and new york city. >> yeah, that makes sense. diana, as you know, we've been reporting on this for a long time how high can home prices go? are we going to look at this as a one-time surge

because there was a huge flood of people looking for housing as quickly as they could as we start to see more supply hit the market, which hopefully we will if the home builders continue to ramp up, then you'll see prices start to cool off a bit. the supply is down especially some some of the small to hid-size cities like oklahoma city or nashville, where you're seeing a surge in buyers there other cities are still see a lot of demand within the city as they're as they're residential neighborhoods. this area is incredibly hot.

you have outdoor areas that's what people still want, to be close to the usualing core, but have that kind of space. does it seems to be acting in the normal way, which is to turn people off >> i don't think you're seeing a bubble so much, but also in the last case, ten years ago people were pushing home prices higher, because they were using faulty mortgages. that was no money down, very poorly underwritten. anybody could buy a house. that's absolutely not the case right now. so the finances are much stronger than ten years ago. you also have a tremendous amount of home equity in the market trillions of dollars collectively that people are

just sitting on because home values are so high i don't think prices can get out of hand, but as long as they are well underwritten and you have these low mortgage rates, you will sigh prices go higher until we have more supply. people are say there's a massive am -- but in some cases even that are you seeing that this is a contrain far from standards being as loose as they were so the people who have the most

money down, all-cash offense, who can waive contingency, they have an edge >> talking about the latest trends, thank you both very much coming up, it's not just software stocks popping this year ahead we'll speak with the ceo of one of the big -- it's amwell we'll take a closer look at which names are driving the rally and if it can last that and more, ahead on "the exchange." ♪

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welcome back to "the exchange." telemedicine has become the primary 34e6d of monitoring or health one company is going public, just began trading on, at about $25 a share versus the ipo price of 18% with us is the ceo and chairman of amwell. it's great to have you here.

namely providers, there's a consumer aggregators and innovators. we'll get the resources we need in a way that aligns our shoulders with or mission. while they've been terrific, one of the great benefits of going public is making sure the only thing or new shareholders care about is the success of the company.

there's it made a lot of sense >> you also are facing teledock to increase the size and scale it's pretty amazing to take the month of april, your visits were up to 40,000 a day. how do you take this and keep it going? like many things in life, nothing is as good or as bad ago it seems it's terrible with the pandemic. dough individual forced a lot of people to be locked in their homes. they tried telehealth for the

first time i also mean doctors. so many doctors tried telle held for the first time we knew for many years when they actually do that, they usually like it that's very important. we are already beginning to see when people get used to the new normal, if anyone can get used to it a certain point. they do want to wear a mask and see a doctor in person whenever possible it may not be continuing in the same case on you gold is not to -- they use it as their main kpi. our performance indicator we

simply believe your doctor will connect sometimes in person, sometimes online there are many barriers and complexity, which is what we do the good news is we see other changes in covid that we believe would be very strong tailwind for the implementation starting with reimbursements. the fact that cms is -- we see more and more payments in parity, which of course would be the method of for their time, there is no real different our

goal is simply to allow or parents, or grandparents to age gracefully in our home, and allow us to connect to the existing health care system and that will take years to develop. doctor, it's been a pleasure having you here. it's interesting that you say we need more parity in treating these visits the same as in office congratulations on your first day as a publicly traded company. >> thank you very much, kelly. ticker amwl. could snowflakes's ipo prove that the process is flawed if so, how do we fix it. as e-commerce grew, so does

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welcome back to "the exchange." the dow briefly turned positive today, in fact we're down 255 points right now. 33.36 is the level there the nasdaq has been the weak spot all day, in fact all month. so a quick check on the sectors gives you a field for the market you see technology along with consumer discretionary, all of those tech-heavy parts of the market down in the meanwhile, the only sectors in the green today are industrials and materials. what a stalwart materials have

been lately. here are some of the individual movers we begin with dave & buster's the company may have to file for bankruptcy if it fails to reach a deal with the lenders. again, one of the vaunted business models of the previous many years, now just having an awful time throughout the pandemic a tough session for play today meanwhile, shares of perigo are down with a recall some units may not dispense due to clogging, finally shares of ford are higher. the automaker revealing plans for the upcoming all-electric f150 pickup. they say this new pickup will be a work and not a lifestyle pickup, despite the fact that it's electric.

how majority whip james clyburn blasting attorney general william barr for comparing the coronavirus pandemic shutdowns to slavery. in an interview with cnn, clyburn called barr's remarks tone-deaf. here's what barr said last night. >> putting a national lockdown stay-at-home orders is like house arrest other than slavery, which was a different kind of restraint, this is the greatest intrusion on civil liberties in american history. >> clyburn saying slavery was not about saving lives, but devaluing lives. an italian airline, with passengers only traveling from rome and milan if they can prove they have tested negative for virus within 72 hours of flying. they can also be offered tests

pre-flight with results in 30 minutes. cubs are celebrating their first birthday staff at a panda research center in southwest china threw a party for the cubs on wednesday. oops >> they look drunk. >> who knows what's in the fruit? there's a cake in the box. i know that. i looked at the tape earlier i thought it could make you smile. >> i needed it thank you so much. a quick break, and whether we come back, how much does the snowflake ipo leave on the table? and possible surcharge coming to new york restaurants and we're back in a couple

welcome back let's catch you up on a few stories. it is time for "rapid fire." leslie picker, "new york times" reporter, ed lee, with his -- not -- they've got a wire, ed. it's a bad look. >> really? come on. i thought it was -- because my wife was telling me the air pods made me look weird. >> no, we are delighted to have you here today along with our own deirdre bosa >> send me an ip.

>> we can give you ahard time this way. >> we are very, very glad you all are here we're going to start with the big story today, a fast-moving story. it's all about tiktok. sources are saying that president trump is expected to decide on tiktok's fate in the u.s. in the next 24 to 36 hours. let's bring in julia boorstin. >> expected to be in the deal that it's not final yet and we don't know what percentage of this company of tiktok that walmart would be owning, but i am told assuming that walmart does participate, walmart would get a board seat and that it's possible that walmart could actually get a

bigger percent much the company than oracle, but both less than 20%, because it's not a majority u.s.-owned company it would be majority china owned. so i think it's important to note here that's why there would be a maximum of 20% for either walmart or for oracle in order to maintain that china ownership there. we till don't know what percentage it will be, and we do expect this to be resolved >> stay with us for one more moment, if you will. so, ed, you in particular, if this is not going to give the u.s. majority control, it sounds like that's a major sticking point, unless now it's not >> trump set the terms, right? he said it needs to be majority

u.s.-owned he's used to changing his mind on the fly that's not unusual the other calculus is larry ellison, a good friend of the president, he stands to lose a big cloud deal with this it's not just the investment they become the cloud priefer for a fast-growing social network. there's money no it for oracle and larry ellison. the degree to which ellison can coach trump that's the other up calculus. >> so deirdre, perhaps oracle is trying to convince the president it doesn't have to be majority owned and kind of flagging if they're doing something they're not supposed to be doing, but unanswered is the question of

china's involvement, majority or n not. >> there's also the big question of beijing's approval. we still don't know their thinking they don't talk this on the regular. are they ultimately going to approve a deal that allows their technology to be used over here in america i keep going back to that comment from a big gates many weeks ago, calling this deal a poisoned chalice this seems so apt right now. oracle, what are they going to get? is it going to be a lot of trouble for them they have to prove that they can keep data secure, that they can keep their privacy controls in there, and all the while, and this is just looking more and more like a mess the further they go. nothing was certainly. i want to highlight the beijing side of things

julia, before we let you go -- you're saying that less than a 20% stake. is that for either oracle or microsoft? or even combined. >> i'm not clear on how much less i am told the walmart percentage is being worked out. it will be interesting if walmart had a bigger piece that oracle and oracle has the strategic interest as well, but it will be interesting to see the kind of role that walmart could play effectively as a partner, especially with a board seat, in trying to make sure they use tiktok as a tool for e-commerce. i think we should hear more definitively what this looks soon

so let's move on, talk about the ipo of the week, snowflake the shares are falling yet the price at $20 a share surged as high as $319. so now people are wondering, leslie, how much money they left on the table by doing this, and does it speak to issues people have with the process more generally? >> it absolutely does. we pulled somedata, and found that the $3.8 billion that snowflakes left on the table where it did yesterday actually ranks among the top most amount of money left on a table going back at least 12 years to visa's ipo. that company left about $5 billion on the table it surpassed the amount of money

left on the table ever list inned in the united states that's because alibaba only sold a minority of the company. so that's certainly noteworthy >> i don't know, ed. i just wonder if this is more emblem -- it's such a hot ipo. lessee said it would be a strange november richard bronson so should we -- or is it just emblematic of where the interest is? >> i think it's more the interest i think, you know, the backdrop to all of this is we are now living in this super

low-interest rate environment. that's changed the calculus everywhere that cede pop that snowflake had, look, i want po pricing has been more everiage alchemy than science anyway it shows you the hunger that investors need return. that's going to stay there for a while. chairman powell set the table for that there's hunger for this. spacs are market making in reverse. so it's more the circumstance. >> it was a funny coincidence to of it go public yesterday. i like that line, market making

in reverse let's switch gears and talk about one of the major stories, dining out in new york city could get pricier after the city council approved legislation to allow restaurants to charge customers a 10% covid relief fee. they can charge it up to 90 days after full dining resumes. it can't be added to takeout or delivery a small step meant to help the restaurants out. leslie, you know, again, i think it's a delicate dance between the restaurants to make sure they're not going to turn customers off with this charge the ones who choose to do it as a customer, i thought, okay, so

here's one way to help i hope people don't see that and think that's the tip and take money away from the servers, but as far as a gesture to help keep restaurants in business is great, i think but what i don't want to have happen, we haven't seen additional stimulus, so do consumers start to be more stingy in terms of dining out? do they see this 10% increase? maybe they'll do takeout instead? i don't know, but at least for, you know, from my psychology of eating out, i thought it was a nice thing. >> deirdre, what is it like out west right now is this a common practice? >> well, you don't even have indoor diningy et in california. one of the questions i had in reading this story was a 10% surcharge, is that really going to help restaurants? sure, of course i wouldn't mind paying that surcharge.

i hope many customers wouldn't, either, but does it go far enough instead of the fees you add on, there's a question of stimulus, too, relief for small businesses do you need something bigger i'm just skeptical that a 10% surcharge will actually solve a lot of the problems. >> i think this is a way to placate from local government. to deirdre's point is federal funding, help, relief. are people going to be dining indoors anyway my wife and i are not going out much, but we're ordering in and happy to tack on for the tip

it's more a question of where is the federal relief that is the fees that these restaurants are paying for the delivery companies. we've seen caps in some cities with regards to takeout and delivery from the uber eats, the door dashes, et cetera there you could argue it's a much bigger problem, so perhaps that would make a difference finally, kind of we're talking about whether you're going back to the restaurants blackrock's ceo larry fisk fink just made a bold statement about work from home

he says -- maybe 60 or 70%, maybe that's a rotation of people, but i don't believe we'll ever have a full cadre of people back in the office. leslie, i can see the pros, the cons of this, but it seems like a big number to say, hey, 30% or 40% of our workforce is basically never going to be back that's a lot of office space they may or may not be need. >> i've been inside blackrock's offices. they had signed a lease to move to hudson yards, a $1.25 billion lease over 20 years. they were moving there to have a open plan, a tech-like feel, to have more of that culture within their ranks of course the pandemic hits. they're supposed to move in may 1st, 2023, so it's still a long way off, but it's just amazing how things are completely being rethought in this new world,

especially with companies that have already planned on renovating and redoing their workspace. we've got to go, but i want to give you the last word, because i started by giving you a hard time. the journal is running an op-ed from a pr firm saying we're bringing all our people back do you think we'll be back, we were all joking, we'll be all be back -- >> i think mr. fisk is correct, pretty much for all corporate america. workspaces have changed. the thinking around how work as changed. life under pandemic has proven you can still do it. a lot of businesses haven't lost much of a beat there, so they figure great, less office space, more flexibility for workers, that's what it is now going forward. thank you all solve on this

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well khem back to "the exchange." the nasdaq selling off again today. meanwhile, the transports, industrials, material sectors are up about 4%. they're utperforming again today. joining mess is the portfolio manager at miller value partners we had a guest at the top of the hour who said the pullback was about fears about the economy. you think something different is going on, right? >> yeah, i think that a lot of times we hear on obviously on the air waves that the market breadth is too narrow, too few stocks are leading us. as soon as the market corrects a bit appeared the leadership

broad edges out to more lower valued -- better valued stocks, in terms of growth, then people are like, my god, it's 1999 again, it's 2008, and we see a lot of fear. right now with the fed meeting, there was obviously a bit of digesti digestion. and jay powell suggested yesterday he kind of slipped and said unemployment back to 3.5%, lower for longer, inflation will stay low that really favors, actually, the industrials, the materials, the transportation stocks. you just mentioned stay-at-home, larry fink, people will need things delivered to their home yesterday we saw the stay-at-home stocks sell off a bit, including even stocks like

camping world. ge was the leader yesterday and today. >> i'm curious, john, the trillion dollar question for everybody, can materials be the new leadership will this power the whole markets forward? we go back to the big picture, don't short central banks and don't short technology going forward, obviously we have the election, and, you know, 100% gains, ear going to take some off the table and move into less -- lower p.e. stocks than what you had 100 times sales so it makes sense, right we have this big unknown in the future in about 45 days, which is the election. nobody knows what's going on happen one thing we do know will happen, whoever wins the election will do infrastructure, some type of mmt, right?

a big push on both sides of the aisle to continue the stimulus as jay powell said so what we saw at jackson hole, he said he's going to do his part now the fiscal side has to do their part. >> yeah. >> if you have ice-cube coming >> all right >> a lot of things get sovd when unemployment goes dun and people's income goes up. even if you look at bernie sanders, some of the things he said, even no i'm not a huge fan, some of that is coming into mainstream thinking. >> people will listen no the rotation is for real it doesn't mean tech will crash. it does mean that kind of things

are on the right track and fiscal could kick in especially with infrastructure. >> home builders and banks >> housing in there. financials too thank you, sir a pleasure >> thank you still ahead, it's not just hand soap and bikes that are out of stock a key part of the whole supply and delivery chain is in high demand othyou can watch or listen to usn e cnbc app we're back in a couple our retirement plan with voya gives us confidence.

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welcome back the pandemic has pull forward ten years of e-commerce option into the past three months that's been a huge boon for

warehouses as a surge in packages and one day shipping has created a huge need for space. it's estimated an additional one billion of warehouse space might be needed in next five years just to keep up. our next guest is helping retailers meet that need >> carl, good to have you. welcome. >> good to be here >> you're like the sales force of warehouses meaning you give companies the tools to scale up and scale down quickly a retailer might realize i need extra space. where do you have some i can use. is that right? >> that's exactly right. >> flex providing highly escapab scaleable e-commerce solutions we make that available on pay as you go basis the fix costed that can be

barriers to scaling don't exist with our model that lets our clients be very agi agile. >> i'm curious because it would seem a warehouse and we can look to amazon's recent announcement it's adding a thousands closer to neighborhood so it can do one hour delivery. this would be a permanent i vestment do people do this as a precursor or why would they need a lot of warehouse within day and not need it the next >> that's right. flex provides flexibility but it provides reach and scale put this in perspective as you move into, amazon announced a thousands more warehouse locations across the country that's on top of 200 they already have other top ten e-commerce providers in the u.s., best buy. analysts say they have ten locations. home depot has four with plans to add more. through flexe we have over 1500 locations because their

technology platform allows customers the plug into this massive network of providers it's not just scaling up and escaping down. it's scaling out >> in the quick couple of seconds we have, why not an ipo this year? >> covid has been tough for everybody but it's been great for e commerce and created huge tail winds for our business. >> thanks so much for joining us today. >> thank you we have some more breaking news on tiktok we have the details. >> sourcing telling me that tiktok global plans to file for an ipo in about a year on one of the u.s. stock exchanges

this sort of changes the equation of the investment we're expecting oracle and walmart to make in the company a big headline >> they're not saying we're going the take the u.s. unit public which is one option for getting out of the this whole thing. they're saying as an offering we would take tiktok global in the u.s. and that's some sort of carrot >> the global tiktok property which the usps is a key part of would be what would be taken public >> okay. we'll see how that goes down in this whole process thank you very much. that does it for us. i'll see you on the other side

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. welcome to "power lunch. right now, i'm standing closer to kelly evans than i have in six months we are still socially distanced, follow me mr. camera >> can't even joke about it. right about there. >> let's get back to the purpose of this broadcast. that's to tell you what stocks are doing. they are lower across the board. the dow industrials down 220 points nasdaq down by one and two-thirds percent 184 points and the s&p sfliting

the