most diverse employment. >> shannon >> accenture >> xpo logistics >> walmart bought it last week. great stuff. good luck, everybody "the exchange" is now. >> thank you, scott. hi, everybody, and here's what's ahead. throwing down the gauntlet the u.s. will block tiktok download starting sunday, and sources tell us that wechat is dead in this country we'll find out if any deal will come together to avoid this outcome. plus, with apple shares down 20% from recent highs, should you throw in the towel on big tech a portfolio manager says there is big tech and he's got some names. we talk to the analysts who

just downgraded lows at home dep depot. dom chu with the market numbers for us >> the market continues to focus on the technology sector overall. the reason that nasdaq trade has been a volatile one, and even today we started out with modest gains and losses, and we've seen some of those losses accelerate into this early afternoon trade. right now the dow industrial is down 1.5%. the s&p declines and about half declines in the nasdaq trade this week's trade has played out with volatility in certain names in particular. we mentioned communication services, technology issues, the worst performing sector so far in a one-week basis. the s&p 500 down about 1%. meanwhile energy showing some kind of oversold bounce. it's up 3%, that sector spider

etf trading best among the big sector spiders then the ipo train continues unity soflt watware, a video ga platform maker, is up about 30% at the highs of the day. we had about a $76.77 top pick that's big because that represents a 48% gain over the $52 ipo price on this particular one. so following in the heels of snowflake, we are now off their $68.71 that's a big one to watch now between snowflake and unity. software very much a key in today's trade. >> we'll talk to the ceo next hour, don. we're very much looking forward to that. the consumer showing some resilience the university of michigan index shows 40% of consumers are seeing positive economic developments and that's the highest level in six months. but what if there is no more

stimulus on the way from washington goldman sachs out today warning if d.c. fails to pass meaningful stimulus, they'll downgrade fourth quarter estimates would that prove to be a major stumbling block? we bring in hugh and jamie it's great to have you both here hugh, before i dive into that, what do you make of this big tech soft patch we're moving through here what does that tell you about the market overall >> we've come very high very fast from the march lows 53% on the upside, that's a 106% average annual rate. common sense alone tells you that's awfully high. if i do the numbers, quite frankly, kelly, we've gone from being significantly undervalued in march to being about 16% overvalued now the reason we're having a problem in the overall market right now, investors know that we've come very far very fast, they have a sense that we're

overvalued as i do the numbers, we are overvalued, and as true as that is for the stock market overall, it's also true for technology, and of course those big names that we're always talking about just about every day it's a valuation problem plus let's keep in mind there are additional significant risks right now, the risk of the second wave, which is a real risk, and then, of course, the perception that the democrats might win the election, and some investors associate that with fiscal restraint that's an unfounded association, but nevertheless some believe democrats lead to fiscal restraint. i don't think that's true. but nevertheless, those are two big risks. these are all big risks. >> let's go back to what you said about the market being overvalued you said 16% overvalued for the whole market, overvalued for technology then the selloff thing would be a welcome thing, wouldn't it >> oh, yes >> at some point you don't want

it to keep going to the moon >> no, no, you're absolutely right. i've been waiting for this, quite frankly, looking for this kind of selloff for over a month now. you bet of the i thi i think it has to get down to 16%, a level where i can feel comfortable buying stocks. that's true in the overall market but certainly true in technology, so you're absolutely right. bring it on because i don't feel comfortable buying stocks at current valuations i really do need that correction >> i know some of the names you do like are verizon, mastercard, caterpillar. caterpillar has been at two-year highs. veron, let me turn to you. are we going to see rates go up given everything the feds are trying to do here, or will we be parked in this range >> everything tells me we'll be in this slow environment for a while. chairman powell said the

expectation is not going to reach 2% since 2023. since that 2% has to be on track for quite some time, along with maximum employment, in order for the feds to lock ok at increasig rates, in our opinion, we'll be in this low rate for a long time even looking at where the treasury is or where the secret corporate index is, there's really not much reward for extending in term or taking any additional credit risk as we're going from a quarter basis point in the five-year treasury to 1.44 in the 30-year treasury where the equivalent 5 and 30-year corporate is 79 and 2.69 there's not much reward there, and everything is pointing to fixed income rate. we'll stay in this environment for quite some time. >> what matters if we don't get a stimulus for quite some time

we all thought this was a done deal, the economy needed it, and the market what happens to the economy in its absence? how big of a toll would it take, do you think >> in our opinion, that's already priced in. we are looking at low odds of that happening, especially with year end, and with elections coming up, i feel like each side is going to play that to their advantage and the democrats might stall this as long as they can until after the election are over so that's already priced in that low probability for sure >> but if it's already priced in, that means there's no downside if the market is already pricing in no more stimulus, then what you're looking at right now reflects no more stimulus. it's hardly an unpleasant surprise around the corner quick last word. >> i will caveat this with until year end

things could change probably after the election, but we expect some volatility during the election and possibly some stalling from the democratic side >> absolutely. yeah, that's its own kind of headwind to get through. thank you both very much for setting us up today. blerina hyse and hugh johnson talking to us. the clock is ticking on social media's tiktok and wechat after the company announced this morning it will ban business apps on sunday it includes no longer allowing consumers to download them we have team coverage on this saga today julia boorstin is tracking impact on tiktok and the status of its proposed deal with oracle, and julia bofa

kayla, what's the latest >> the treasury secretary, steven mnuchin, who is the biggest proponent of a potential deal has been working around the clock to try to salvage the transaction, while other advisers are not convinced that the deal has improved. beijing still blocks the deal even after the white house reaches a deal that it feels comfortable with i'm told by a source with knowledge of the deal that the ownership structure was not sufficiently majority enough for the white house, but the question is, can you negotiate a full spinoff of tiktok without china looking weakened in the process? you may remember back in 2018, the trump administration paved the way for a merger between qualcomm and msp semiconductors only for china to block the deal and keep the transaction from going forward. president trump does not want to appear weak-handed on china head

of the election. a recent executive order set november 12th as the deadline for any potential tiktok deal, but a senior official noticed that after this weekend, the user experience of both tiktok and wechat will be degraded with software updates and app transactions having gone dark. users of tiktok and wechat can continue to use them, but we are told that wechat specifically is dead in the united states. kelly? >> that's pretty strong language, kayla. stay right there for how this weekend's deal with tiktok could cause an abortion, julia. will people rush to download it before that deadline >> people are rushing to download it. we've been in contact with the censure tower.

they will ban it for new users, update for current users and ban it for everybody november 12th tiktok saying it disagrees with this decision, saying, quote, we've already committed to unprecedented levels of additional transparency and accountability well beyond what other apps are willing to do, including third party audits, verification of code security and oversight of security. they said, we will be depriving the people across the u.s. a significant platform for both a voice and livelihood vanessa pappas tweeted this morning that the ban would be bad for the whole industry she invites facebook and instagram to support tiktok's litigation kelly? >> julia, stay right there will the tiktok ban work like on

wechat of which officials said are dead we turn to deirdre bosa for more on that. deirdre, the whole company depends on it. >> the ban only applies to downloads and functionality in the u.s. where there are just 19 million wechat users versus 2.2 billion users in china cutting it off from the android app stores in china, that would be catastrophic on many levels, and they didn't go there but, of course, that senior official telling me that they are dead, not that 10 tencent would be open to that, anyway. but they do rely on it to communicate back home with people in china. these are american businesses, and the ones likely to be

affected are small and medium-sized ones, not the large multi-nationals that operate over there and are so far unaffected like starbuck's, mcdonald's,android or google they did not see that worst-case scenario it was interesting to see the different statements, saying the restrictions are unfortunate, using much softer language than what we hear from tiktok >> we reached out to bill baruch for his thoughts on this they said china most likely won't do anything on tiktok. they didn't do anything on huawei after we killed it off, and they may be waiting until after the election if they'll be bargaining with this administration or kind of have to start all over again with the biden administration if that's the case, the u.s. has a lot of leeway here to come up with some kind of last-minute deal, at least in the case of tiktok u.s., unless we should expect a more muscular response from china >> kelly, tiktok or wechat which one did he say

>> he said they likely won't do anything on tiktok >> that's interesting. that would surprise me, because tiktok is a national champion. and china, to have a company that succeeds over here so few and far between, alibaba and tencent aren't even at that level, which made me wonder if he said that about wechat. wechat represents such a small portion of tiktok's business, but americans want this technology, american businesses and users want this technology it's a big deal, and i would be very, very surprised to see chinese policymakers sit by and potentially not put another wrench in this deal, if you can imagine. >> and i wonder, julia, where this leaves the prospect of cobbling together a deal, still. so even the official that spoke with ayman said, look, there is potential for a deal before

sunday, certainly before that deadline where does this leave other contenders >> i think the fact that the final deal date was pushed out until november 12th leaves a while for this to be worked out. one thing the president could push on in order to make it appear as though he has secured a key compromise is the idea that bytedance might have to sell more of its stake to u.s.-based companies already we're talking about with oracle taking 20% stake and walmart taking an additional stake well over 60% of this new tiktok global company being owned by u.s.-based global companies, but that may not be sufficient he wants to see a less than one-third stake owned by chinese companies. what kind of stake would the president be comfortable with the chinese company owning

another thing is tiktok would plan to have this tiktok company go level with the exchange in about a year, which would further dilute the chinese ownership. so a lot of different pieces in play, but the tiktok-oracle people feel like they came up with a plan that should comply with everything that the government wanted. >> we are going to hear from the president on this next hour. not on this issue, i don't believe -- i was going to ask what the goal is at this moment or how we should read the politics of it >> kelly, the president has not shied away from saying where the process stands when he was asked a few days ago he said he would be briefed in the morning by his team. we still do not have an update on this. as i reported earlier, the key dilemma here is that the president politically will look weak on china if he accepts

anything less than a majority stakes transfer here in the united states. the problem is china will appear weakened if it ceases control of one of its digital champions to the united states. that therein is the tug-of-war here and that's what they're trying to negotiate so delicately the president is on the both sides of zte, a $1.4 billion fine the u.s. government reshuffled the entire board of directors. the commerce departmental loud that transaction to go through and freed up a ban however, with the qualcomm deal i mentioned before, that was in the middle of a trade war, but china still banned it even after the u.s. government had blessed it >> thank you all very much for bringing us up to speed this hour, kayla tausche, julia bo s boorstin and deirdre bosa. one analyst says be prepared for a post-pandemic reset that could put the rally on hold.

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welcome back lowe's and home depot have been huge beneficiaries of the home improvement boom during this pandemic now home depot is downgrading, saying they're due to a post-pandemic research during a sales surge. joining me is steenior retail analyst at oppenheimer, dave are all these companies going to benefit from a permanent shift to higher demand, or is there going to be a hangover what kind of hangover do you see coming >> that's the key question as you know, we talk about home depot a lot on your show and on the network and they benefited significantly through the crux

of the crisis. my concern, though, to use your word, kelly, it's a hangover where do we go from here i've got to think at a minimum we have difficult comparisons. so the middle part of 2021 will be cycling past some historically strong sales. that will be difficult i'm also concerned there will be some type of pull forward in demand, meaning consumers will do more than they normally would during the crisis and that will move forward in future periods >> i can give a couple examples from my own life i tried gardening, brian this gardening is very difficult. i'll give it another go, but this was the year, and i realized, i don't know that i have it in me. between that and some of the projects around the house you're not going to repeat, i hear what you're saying. let's talk about the comps for a moment we saw home depot put up 20 and 30% comps.

next year they would have to be postally maybe double digit declines, right? >> it's a simple mathematical exercise i followed regional stocks for a long time, and it's interesting to me how this dynamic can trip up these stocks. like you said, a 25%, 35% gain phenomenal second quarters comps will be down to negative that's usually a problem for the stocks, at least in the short term >> this is not a major downgrade we're talking about here on home depot you're dropping your price target to 305 from 320, on lows from 190 to 185. what would it have to do to justify these valuations, and is it that this cycle of home buying does unleash a period of people spending more and more on these chains >> it's a good question. i would be wrong on two potential fronts one, just exactly like we're talking, the consumer has

actually been fully retrained. going forward even after the covid-19 crisis passes, even after we get a vaccine, that's one area where the consumer continues to spend an awful lot of money on their homes. the second is that the market looks through this because i spend a lot of time playing with my models assessing the long term with the company '21 is going to be a weak year, we don't care. i don't think that happened. it sounds good right now, but i usually see what these types of names do once we get in the thick of it, the market gets very worried, and a negative narrative takes hold >> you're not downgrading all of retail your top pick are lululemon,

karavca carvana, car maximum, way fair, nike why not a downgrade of those brands >> home depot and lowe's were a big one due to the pandemic. i think consumers are more and more trained to buy online i think that sticks. there is also more competitive fallout within that home furnishing space, so as we emerge from this pandemic, the kris, i think wayfair will have less competition >> fair enough, and it's up another 5% today brian, thank you for your time we appreciate it >> thank you >> brian nagel from oppenheimer. we're joined with some smaller tech names plus unity software company hits the tape today, and they

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welcome back to "the exchange." markets have been weakening so let's take a quick look. the dow is down 270 paints that's a 1% decline. the s&p is holding at the 1.48% level. nasdaq is also down 2% here are the sectors behind me, though the only one in the green right now is financials. so, again, some of the least loved parts of this market have been hanging onto the relative leadership here. down in the bottom position, technology is down 2.5%. discretionary sfervices are also among the weakest. apple is down almost 20% from its intraday highs

it's down 3.5% now it is the worst performer on the dow. it's not just apple, though, look at alphabet, amazon, microsoft and qualcomm qualcomm down 3.5%, but even apple down about that much the one name holding up is tesla, which is a little higher today, on a couple test hikes. tesla is up 2.3% today it's at 4.33 here's what's happening at this hour, everyone. a second death from hurricane sally. officials from alabama say it is somebody involved in the cleanup, but they did not provide further details. in florida, the coast guard is looking for a kayaker who went out the day of the storm and is now missing in southern alabama, long lines are forming at the few gas stations that are operating amid

widespread power outages the storms just keep on coming tropical storm wilfred is forming in the east atlantic ocean and tropical storm alpha is next. they begin running through the greek alphabet as all the letters are used this season confirmed cases around the world are now above 30 million for covid-19 that's according to the johns hopkins count which also shows total deaths approaching 1 million. you are up to date, kell i'll hand it back to you >> and i assume we've never run through all the greek letters. >> let's hope not. although it is 2020, so you never know >> sue, thank you very much. sue herera let's check on the fast food stocks chwhich have had a good 2020 some have more than doubled and some chains are targeting one demographic in particular. kate rogers has that story

>> i'm travis scott. this is my mcdonald's order. follow me. >> mcdonald's doing something it hasn't done in decades last week, unveiling a new meal and merchandise line with grammy-nominated rapper travis scott, the first celebrity meal addition since michael jordan's mcjordan in 1992 scott, whose label is called captain jack, is popular with young millennials. the company said in a statement, it's been so lit some of our restaurants have temporarily sold out of some of the ingredients in the meal. but mcdonald's isn't the only brand leading into gen-z marketing. dunkin' entered into a deal. tiktok made an ad this weekend,

looking for five families to give free burritos to. so why this about gen-z? food is gen-z's highest priority dunkin', mcdonald's, chipotle and chick-fil-a. >> gen-z's household spends about $600 a month about $210 on that is on delivery and dining out. that's quite a bit of money. mill len yennials spend a littlt more, about $260 a month we're all kind of tongue in cheek, laughing at these videos, but they have a really wide region these are billions dollars' of

streaming business, and they'll only continue to grow. if you can tap into them now, acquire them as new digital customers and hang onto them, it's a no-brainer. >> kate, thank you very much kate rogers with the latest for us jp morgan said his meat rally has gone too far he'll tell you why and one city that could be hit the hardest? it's not new york, and it may surprise you welcome aboard this flight is going nowhere "the exchange" is back in two. ., knowing we're prepared for the future. surprise! we renovated the guest room, so you can live with us. oooh, well... i'm good at my condo. oh. i love her condo. nana throws the best parties. well planned, well invested, well protected. voya. be confident to and through retirement.

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welcome back and let's catch you up on several stories that should be on your radar today.

it is "rapid fire. here with their opinions we have dom chu, contessa brewer and kate rogers. unity software, a video game company, is surging at $69 unlike the other high-flying ipos this week, they're letting investors cash in on this run-up they can sell 15% of their vested shares, dom, i think is a great move i don't know why other companies don't allow for it, and it's certainly not hurting the performance of the stock today despite what a down market we're in >> it's interesting because you talk about this idea that there are so many folks out there who have a vested interest and they're looking for this liquidity event. lots of times you don't want to see employees selling this stock because it really doesn't sell well you can't tell the story and say, hey, we want you to invest in this company because it has a great future, yet you don't want

your employees to stick around for the long term. as an investor, you might want to see these folks keep their shares, at least for a little bit here >> in my old age, i come to realize that a lot of these ipos don't make a lot of money to start with, their wealth might be tied up in that stock, they might want to buy a house or something, and this is the chance to do it. >> sure. ipos are largely liquidity events a lot of these rules such as lockup agreements that we normally see in an ipo, it's a reminder they're just kind of customs and habits and protocols. they're not rules. there's not one way to do these things if there is enough demand to people who own the business, they don't necessarily have to see these employees who have been compensated in the equity and hold on and pray that the stock goes up. >> it's often the weakest.

mike, i also want to ask, while we're comparing the ipo performance to the other software names, can you talk about why this continues to do so well in a market throwing out all big tech names with the bathwater? >> yeah, it is i think there is still a craving for the next new plname to play the dominant themes where there's cloud-based software or gaming also the fast way the companies can now scale in these areas, we already kind of know the big, dominant players and we believe in their franchises, but they're not really about growth and capitalizing on things in an early stage. that would be my guess i think people have visions of the next shopify, for instance >> i love that shot that you showed that the ipo is up about a percent. we're going to have the ceo, john riccitiello, on "power

lunch" up next, so stick around for that wiremember when beyond meat was the ipo darling? that was last january. that firm is saying their 2% rally in the past six months aren't supported anymore, the competition makes them leary about the valuation. contessa, this is what's interesting to me. beyond meat did so well, it was such a darling last year, you would have thought it lost 90% of its value and it's kind of hung in there. >> i think it's important to point out, look, there is still a huge potential in the global market for an alternative to meat beyond has some room to run there. it's also, they say sa, well managed by an executive team that well markets this product but the stock price has gotten ahead of where the company is performing, and not to forget that impossible foods is giving it a real run for the money and

has provided some stiff competition. >> dom, mike, would you guys disagree i've been impressed by its staying power. i mean, i understand that jp morgan, dom, is saying the valuation is still a concern, but for over a year now -- this is not cannabis. >> no, it's not cannabis, but when i first saw the note early on during my "squawk box" morning for early time users -- >> the haze. >> -- yes, the haze, what i learned was jp morgan analysts were the first ones to come out and give them a bullish rating, talking about the massive size of the whole addressable market there. it just shows you that at some point there are competitive elements brought in, and it shows you that at a certain valuation, it really gets up there. there is a time when the stock is not worth the prospects it has, at least in the shorter term >> that is an interesting kind of arc, that they were among the first to go big on them and now a little bit more cautious

let's stick with the food ipo theme because analysts are trickling in since they went public in a spac merger. they had a buy and a 21% target today. with 40 years of uninterrupted sales growth, the shares are up about 10% since the last ipo it's a little weird they wanted to use the spac as a way of going public, but here's a name that has nothing to do with software, okay, and has had a pretty good run so far >> i think the key also to the bull case is it's a company with a record of long-term growth but also very limited in terms of its regional scope and its penetration of the overall industry so the idea being, look, they can take on freeito-lay across e entire country right now that's not the easiest thing to do, but they do have this management team through the

spac, which would be their explanation as to where they did it this way. you have an interesting savvy to this spac that has bought and sold interest in this company before also a billion-dollar market cap is a viable company down the road, most likely. >> yeah. contessa >> then you have the executive saying we just didn't want to be this plotting company known for 8% annual revenue growth per year it sounds pretty good, right it's interesting because i'm reading about rjr na businebisc all this enthusiasm about buyouts in the '80s, and one of the big attractions then was it allowed founding families to keep control over the companies they found you've got the families here that will pertain a 90% stake in utz as they try to make headway into florida and improve their market share nationally. >> it just goes to show that pretzels and potato chips can do

well in this market as a software company a growing number of airlines due to the pandemic -- get this -- are offering flights to nowhere. quanti quantus is offering a 7-hour flight that departs to sydney and returns to sydney with no stops along the way. it goes at low altitude so viewers can see something like the barrier reef it sounds charming, but there are people saying, this is horrible for the environment, and how can you take a flight to nowhere for no reason? >> to tackle the environmental impact thing, the environment has gotten, arguably, a little bit of a break over the last five or six months because no one has been driving or flying or doing anything travel related whatsoever, so there is maybe a mean reversion there but i applaud this notion that you can come up with an idea to make up for some lost revenue. i can't imagine this is a very robust business, but still, if

these companies find a way to do this, it might save money on jobs and get them back when the pandemic is over i would take advantage of seeing the greatbarrier reef, though i'm not sure of being on a crowded plane. it depends on the spacing. >> my producer paul said, are they still going to lose your lugga luggage? >> what luggage? >> they should call it an air crews. hopefully there is real food and beverage service on these flights and not just lockdowns >> yes, which apparently people are craving but it is odd, contessa, that the most least attractive thing to do in a pandemic is no more attractive now. you wouldn't do an air cruise, how about a sea cruise >> i'm just wondering at $3700 a pop, can't you just charter a plane and go look at the great

barrier reef if you want to see a monolith hire a private pilot to do it without all those lovely, disgusting people breathing on you? no, thank you. >> i don't know what the going rate is to charter a plane, dom. >> kelly, there is no more buffet on the lido deck after midnight >> am i supposed to understand that >> if you're a cruiser, you do >> thank you all for "rapid fire" tonight. the big cap darlings once again leading the declines we're going to talk to goldman sachs and he'll give us names he's watching in the tech world. you can always watch us on the go on the cnbc app we're back in a couple ♪

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♪ ♪ welcome back to "the exchange." the nasdaq selling off again today near session lows and on track for a third week of losses

it's down about 10% since the all-time high on september 2nd and big tech are leading my next guest says there's more opportunity now in smaller tech names. joining me is brook dane he's the manager of the morning star four-star rated technology fund they're up 25% so far this year. brook, it's great to have you. it's been the best of times and the worst of times what do you do now in the world of tech? >> hi, kelly, and thanks for the time today it's great to be on. the thing we're talking to a lot of our clients at goldman about is the fact that indexes and people's portfolios have become so overweight in mega cap names that they need to be looking beyond that cohort of companies and try to broaden out where they have investments. if you think about what's driven

tech over the past five years, you have two big waves that's created this opportunity the first has been the u bick with -- ubiquity of smartphones. more people have a smartphone in their hand than own toothbrushes this just unleashes a whole wave of opportunity and the second is how they've impacted the names, but it's generated a whole new wave of software companies to come up around them. the price to start a company and grow a business is so much cheaper now than it has ever been in a period of time when we look at the opportunities set, we just feel like there is this whole next generation of companies coming up, and people need to be sure they have exposure to them in portfolios and identify the right long-term disruptive tech stocks they can own and derive in their portfolios.

>> i love the way you laid this out, but one name that immediately jumps out to me because of what's happening in the news today with tiktok being potentially banned is snap chcht snap is not one i would expect to be on your list, anyway, is it because they're a tikto ban? >> this idea that tiktok and snap chat are mutually exclusive or competitive with each other, we think that's wrong. it's much different than the entertainment use cases that tiktok has large by been used by the demographics are different they have this incredible opportunity in front of them to close the monetization gap they have underlevered themselves to the advertising market

>> that makes sense. they're not necessarily competitors. they have did i have use cases let me go through some of the other names here as well hub spot king dee which is a chinese software company why? >> not only has tech innovation moved down market cap but it's moved globally unless you have exposure to some of these new emerging leaders in the emerging market, you're missing opportunity. they are a software company based in china providing erp software to local companies. one of the things that has us excited is it has the best underlying tech staff. it's a clean set of code base. it's a big opportunity one of the larger risks in tech is the geo political tension between the u.s. and china finding a pure play domestic

chinese software company that trades at an attractive valuation is a good idea at goldman, one of the huge advantages we have is this global team. he's based in congress knows this company well. he's providing the local expertise to help us have confidence in a company like this >> my final to you is what happens if this big cap shake out kind of ends and it resumes its leadership and you're underperforming because you moved funds into these smaller names. i can imagine that would be frustrating. you probably dealt with a ton of scenarios like this before how likely are those odds? >> one thing we talk to clients about is moving incrementally. the idea you'll be able to pick the tops or bottoms around these sectors are hard to ever believe and no unever does we always talk to people about setting goals. the same would be true between

allocations between these big megacap names. you want to have exposure to both and you want to move increme incrementally in the direction we're talk about here. take your time pick your spot and have plan and stick to that plan in terms of how you invest >> all right it's been a pleasure to check in with you thank you so much. >> thanks for the opportunity. it's been great. coming up, hotel delinquencies are on the rise if one part of the country. it's not just because of the pandemic we'll tell you why and where it is might surprise you. that's next. ♪

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it's not just covid. it's falling oil prices that have put the industry in a pretty bad spot in places like houston. >> analysts are calling it a double crisis. the pandemic and fast falling oil prices have strained hous n houston's real estate and lorjilor lodging market 70% of hotels have defaulted on their loans. it's one of the highest rates in the nation developers descended upon the energy capital of world. houston opened more hotels than any other u.s. market in 2019. even more than hmanhattan.

one hotel owner manages five properties he checks the price of oil every day. not because he owns energy stocks because it's so tied to his business and occupancy rising >> are we seeing that scenario >> a couple of different options they are faced with if they cannot pay the loans that they owe to their lender or bank. they default and over time if they do so, they will brs foed to hand over the keys. that leads to foreclosuureforecs i'm shocked it's that bad. that does it for us. we'll speak o to ceo of today's hot ipo. the stocks up more than 30% in

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good afternoon back home again. stocks are under pressure across the board. the dow now in the red for the day and for the week the s&p 500 on track for its third down week in a row that hasn't happened in almost a year plus, another day, another hot ipo. shares of unity software began trading hours ago and they are up more than 31% as you see right there. the ceo of that