a>>ppreciate that shannon? >> pepsico buy it because they're going to continue to make strides >> mr. weiss >> xpo logistics staying with it. >> been with that one for a while. all right, jon najarian. >> target stores, scott. bought it today on unusual activity >> thank you, everybody. thanks for watching. "the exchange" starts now. thank you, scott hi, everybody. here's what's ahead this hour. a new stimulus package is being floated in d.c. as they try to forge forward with talks can it get the rally back on track or not we will ask. plus palantir's pricing. weekly valuation is climbing will it prove to be a major turnoff? we'll ask. and rapid fire loves betting

and spotify. >> i have no idea what you're talking about on that front, but i'm sure we'll be talking more about it on "rapid fire" later this hour. you can see green across the board. at one point today we did see marginal dips into negative territory, but for now the dow industrials up one-third of 1% the s&p 500 still above that 3350 area. they're still up one half of 1%, and the nasdaq continuing that, leading to the downside and upside trade, up 1% in trading so far today one part of that trading in the nasdaq that's been getting a lot of attention is software and cloud computing. this ticker tracks those cloud stocks having a very strong day, up about 2% if you take a look at the last week, it's up 3% right now a lot of people have put these stocks on the shopping list, but look at the context over time,

the last year-to-date period, and you can see it's gained 110% on the lows we saw back in march up until the highs now, and we'll kind of see what happens there. but then let's move on to the next one here, because we do have stocks today, notably norwegian cruise lines, carnival and royal caribbean all up massively, 6 to 10%. norwegian year to date, down 73%. carnival year to date, down 71%, and royal caribbean, year to date down 52%. big moves today but still a lot of ground to make up i'll send things back over to you. >> absolutely. dom, thank you very much let's turn to washington where democrats are pushing a smaller but still massive covid relief bill. how far apart do the two parties remain ylan mui has the details for us. ylan >> reporter: democrats are hoping to bring their new plan to the floor for a vote possibly

as soon as next week we're told it will include funding for ppp, enhanced unemployment benefits, direct checks to airlines and we're told there will be money for state and local governments. that is something that's been a priority for democrats but that the white house and many republicans have resisted. overall the total price tag is expected to reach about $2.4 trillion that is the same top line number the democrats had offered the white house previously, but it is a number that is still well above what republicans have said that they are willing to accept. now, this number, then, is unlikely to bring any new house republicans on board, but it could help quell some of the frustration within the democratic caucus who have been pushing for individual votes on things like ppp and those unemployment benefits. the treasury secretary and the house speaker have said that they are willing to continue talking about another relief package. this new proposal could at least keep the window for those negotiations -- keep it open

back over to you >> ylan, this comes on the heels of the republican effort the last couple weeks to advance its own bill which ran into stumbling blocks so should we read this as now each party is kind of taking a step forward and we're going to get to some kind of conclusion here, or what do your instincts tell you >> reporter: yeah, my instincts tell me these are two sides that are still pretty far apart here. again, this is something that the democrats had previously put out in terms of the top line numbers, so the starting point is already too high for the white house. but i think you're also seeing both sides try to test the waters what will their caucus accept? what can they get passed so that is going to be something important politically, it's also something important from a policy standpoint to understand where are the limits on both sides. >> good point. ylan, thank you very much. ylan spmui, thank you for reporting for us let's bring in michael

faroli and eaton patel i want to start out at top level because you guys put out this note yesterday that really captures the moment. you say in the absence of any more action, it's a big change to your growth projections, right? >> that's right. i think we agree with you that the odds look like they're tilted against getting anything before the election. we had anticipated we would get stimulus of 1 to 1.5 trillion. back in july that seemed like a pretty reasonable thing to expect a lot of commentators back then saw it almost as a done deal i think as time as passed, we've been reducing odds on that happening, and i think in the latest -- over the last week or so, it really seemed to diminish to the point where we really kind of took that support down a bar. not an outlook for growth, and i guess -- i wouldn't totally

throw out hope for a stimulus, but the calendar is moving away such that we don't have much time before we get to the heart of the election season >> you're talking about a 2.5% gdp for the fourth quarter, which would be ho-hum at any rate, but certainly coming out of the depths we're in is not that encouraging the big change you see is kind of in disposable income as well, and that goes back to the stimulus checks. from what you see, are the checks to the households something you would be watching for in any bill? >> that's right. in mid-april once those checks went out, you saw consumer spending turn around pretty quickly. where we'll see another round of stimulus checks, i think that would give a pretty substantial fill to household incomes and financial spending in the fourth quarter. without that, we do think the economy pulls out positive growth here. we don't think we're in for a double dip even without the stimulus just because the

momentum we're seeing in the other indicators looks pretty favorable, but as you pointed out, kelly, we would like to see more robust growth given the high level of unemployment and there is still a pretty deep hole even after an impressive third quarter. >> i want to talk to you about some of the signs we're seeing in the credit markets or the so-called chunk parts of the market we were talking about this on the show yesterday as well, but there's been more defaults lately what can you tell us in conditions about part of the market that the fed itself is supporting, so you thought it would be kind of taking this in stride >> i think a majority has been in the non-rated place and it's been concentrated in a few sectors. these are nursing homes and group places what i think the conception is that there is going to be an

increase in defaults in the investment grade among states, among cities and we don't think that's the case while defaults are on the rise, more of that possibly going on a curve in the next 16 to 18 months, a majority of that will be fragmented amongst those heavily concentrated sectors where we've already seen those default. unfortunately, additional fiscal stimulus may not always feed through to those types of ent y entiti entities, nursing homes, charter schools, retail type of strip malls being built out. >> it's fascinating, though, because nursing homes are obviously one of the most vulnerable parts of the economy because of covid you would think they, of anybody, would qualify for more support than they seem to be getting. i know there is a long history there. let me ask you as well, because you mentioned this, and i think this is also important for mike the importance in many ways comes down to those household stimulus checks. for you a lot of it comes down to state and local aid, is that

right? how important is it that there's money going to states in the next bill? >> yes i would say a few months back, states and municipalities were fairly hopeful that the next round of fiscal stimulus would include a pretty decent package, and that's why these states are at front lines of fighting covid, as a result of the fact that health care costs have gone up but it does, unfortunately, seem less likely that they may come above it, and as we were discussing before, there is a pretty low probability a lot of states and cities have already positioned themselves to not depend on any federal aid, unfortunately, and try to make additional cuts. all of these states, as they release their budgets for next year and the year after, in 2022, they're also positioning themselves to make additional cuts perhaps furloughing workers, decreasing funds to in-state

programs so we've already seen that in the past few weeks i think we will see more of that if this bill does not get fast-tracked >> we have to go, but mike, i'm curious, i know it's top concern to the muni market, but is state and local top concern to you as well >> it is i would say it's not a near term concern, so i think those stimulus checks would have helped the fourth quarter outlook. i think state and locals threaten to be a drag on growth in 2021 and 2022 we certainly saw that after 2008 after the hit to finances then, which is quite significant to subtract from growth for about three or four years after that recession. i think that's the concern, not the state and local will drag on the economy but that it will be a persistent wait on both spending and job growth over the next two, three, four years. >> that's a great point. guys, thank you, we'll leave it there for today. michael feroli and nisha patel

on growth over the next week there was $25.8 billion in outflow funds for equity we've had more feds calling for stimulus if we get more on that track and what happens if that movement halts? we ha we have phil makatelli and margaret patel how much weakness might we still expect to see in the markets >> that's a great question, kelly, and it's great to see you today. the fiscal stimulus, we believe, has been postponed, not canceled for a number of reasons, including the calendar mike and nisha were talking about in your last segment

however, this does not change the fact that we are on a sustainable recovery this is not a double dip this is not a death knell to the recovery, kelly, we are investing with both overweight to equity, which we've reduced a little bit as we head to the election, but we're still overweight, but more importantly, kelly, this is a really good environment for credit as long as you're picking your credits actively, and you talked about some of the sectors in that last segment. less has to go right for you to be right on the credit trade and i think that's really important right now for investors to get as much carry or yield in their portfolio as they can to wait out the volatility and then to get back on the recovery story. >> it certainly argues for picking carefully, like you're saying, phil so margaret, i ask you if you share this optimism about the markets and believe that the recovery will remain intact. >> yes, the market is clearly

indicating that the economy is moving ahead we've rebounded very nicely in industrial production, and if you look at sectors that are federal interest rate sensitive, autos and housing are on fire. they're going gangbusgangbuster that's not the economy that is on the edge, so we're excited about the economy. >> where would you but investors, margaret, because a lot we've seen in the economy reflects that. >> i think you have to stick with companies that have growth sectors sectors, technology, health care, i think those have played out. we really don't see the value play coming in here, because many of the sectors that have been depressed, we think, will continue to be depressed in earnings until we have a lot more strength in the economy we're still sticking with higher equality, larger size, growth stocks >> larry said yesterday in our

interview that there will be more growth than ever, and you're painting a picture of saying depressed phil, what about you >> we think you need to see a move higher in rates that's sustained. i want to be clear here. nobody in our careers have seen what a recovery looks like after a forced recession we've never seen anything like this so as much as everybody wants to predict and prognosticate, there is no real telling what happens after the u.s. election if we see the uptick in rates. remember, the fed last week upgraded their growth assessment by the end of 2020 by 3% and upgraded their unemployment assessment by 2% these are gigantic adjustments that people are making on the fly. we wouldn't add to growth here, kelly, however, in order for value to really get going, we need to see some uplift in rates, and the fed is doing whatever they can to keep their transmission mechanism really

clear to keep ten-year treasu treasuries in a range which, by the way, is really good for the u.s. consumer in interest rates and housing rates and all those things that have been working the past six months. >> we have a rise in housing, but it's a good point on the value of trade thank you both, appreciate it. phil camporeale and margaret patel on these markets they are said to go public next week and valuation is said to climb ahead of that plus, wall street continues its love affair of draftkings. its market is now bigger than every u.s. airline we'll dig into the numbers and spotify wants to get into the tv business those details and more ahead on "the exchange.

welcome back investor anticipation around palantir is building ahead of its expected debut they can week the software maker could open with a valuation near $22 billion at $10 a share that's above the $7 palantir was getting in the private markets with us is marine farrell and

she helped break that story. marine, it's great to have you here, and are you surprised its value is climbing like this? >> it's been interesting to watch. it's climbed during the course of the year, but one reason it's surprising is we were curious if there would be an investor pushback on corporate government in answer. when we started looking at palantir, it's one of the most extreme examples of the founders keeping extreme control but also putting in place a structure by which they could sell out of most of their holdings, the three founders, and still keep effective control of the company. so i think that was the biggest question, were investors -- we saw that last year among other things really flipped out investors. they don't seem to care this year with regard to palantir >> do you think they respect the founders in this case and their necessary involvement in this company more than they would have in adam's case at wework?

who are what were the validations? >> that has to be one part of it that's a very fair point on the other hand, i think there is something about this market backdrop for it. there is this real excitement about all these stocks and about new ipos and kind of a willingness to overlook and not pay too much attention to things like this. you know, it will be fine. i think it's those two things, the market, and as you said, kelly, the management team >> it's a good point if they were bringing wework public, it would probably be a different story. let me ask you about the public markets' sort of route they're choosing why not a direct listing why not an ipo do you think that has to do with the company wanting to go its own way, or with many of the other direct listings, it's a sign of, hey, this is a profitable company or they have other advantages going that would make that a profitable

attraction >> they're not profitable. they've been in business 17 years. they're still not profitable it's clearly on the horizon, but they did just raise money before this ipo, so it seems like it's a more straightforward path. one of the differences, obviously we've only seen two direct listings before palantir. but they can give guidance we just saw guidance earlier about where they would go next year you can't do that in a traditional ipo. you can't talk to investors, you can't -- i can't go on and watch them do their presentation to investors. anyone right now could just log in it sort of breaks down some walls with investors >> yeah. >> yeah. >> it will be interesting as well to see how long it takes those shares to open next week, just that that's been one kind of minor technical part. otherwise it's been fairly successful i want to go back to the structure for one more second, because in the case of their

president, stephen cohen, he could effectively own the company by just half a percent of shares. that's extraordinary >> it's completely extraordinary. we've seen a covered snap, if you remember when they hold shares at zero to investors, but the big difference with snap is steve cohen and his cofounder had to have a number of shares and keep them, and if they sold them, those shares would go away they have taken real extreme steps to have this special class of founder-controlled stock through all these different mechanisms people can drop out of it and then it gets to a point where they can each own so little and still have this 49.9% control. and, you know, which is effectively control of the company. and then the founders who drop out of this class of stock and sell down, their shares then convert to stock that's 10 to 1

voting stock >> wow >> it's pretty incredible. i've talked to a number of people about that. they've never seen anything like this structured so much so that they could really get out and have such little economic stake left in the company. >> it's so palantir in a way i would think they would say, yes, of course, we've figured out how to do this, take it or leave it maure maureen, thank you so much appreciate it today. we'll join deliveringalpha for its tenth year on september 30th also with us this year, steven mnuchin, steven schwartzman, carla harris and more. you can visit deliveringalpha.com to learn more and register. why tiktok downloads should be banned. what happens if the case isn't sufficient or they don't make it at all

extend america is turning to colleges as a w urnesoce of revenue. we'll talk to ceos about that and the stock's big turnaround, after this

i felt like... ...i was just fighting an uphill battle in my career. so when i heard about the applied digital skills courses, i'm thinking i can become more marketable. you don't need to be a computer expert to be great at this. these are skills lots of people can learn. i feel hopeful about the future now. ♪

welcome back to "the exchange." let's get a check of these markets, about half past the hour the nasdaq, the dow and the s&p all down today the nasdaq is sti dow is down as technology is leading in terms of the sector board today. industrials and technology is next communication services with some of those big cap tech flames, as you kno -- tech names, as you know, is one of the worst performers.

energy has been dogged with difficulties in the oil price and demand environment it's down about .4 of 1% let's talk about some of the individual movers we're also watching at this hour, and we're going to start with costco the company put up a nice quarter. it's moving lower despite a big earnings beat. they beat on earnings and revenue per share, and they also reported a 91% annual jump in digital sales, so a pretty good quarter if not the best day for costco how about novavax which is up about 9% after it began a late stage trial of their covid-19 candidate in the uk. 10,000 participants are expected to be enrolled finally peloton shares are on a high. it's at 26% for the month, it's at 9% for today. if you consider it a state home trade, maybe not best for the economy, but it doesn't mesh with the story the rest of the market is telling it it seems to have a mind of its

own. it's almost $97 a share. let's get to sue herera now for an update. sue? >> hello, kelly, hello, everybody. here's what's happening at this hour lawmakers bid farewell to ruth bader ginsburg as her casket left the capitol. ginsburg is the first woman and the first jewish woman to lie in state there. she got a personal tribute from her personal trainer of 15 years. brian johnson honored his long-time physical client by dropping down and giving her push-ups sfo florida restaurants and other businesses can now operate at full capacity after ron desantis expressed doubt of reducing the spread of covid-19. local governments will not be

able to impose stricter mandates on businesses going forward. according to the world health organization, the global death toll from covid-19 could double to 2 million before a vaccine is widely available. you're up to date, kell. i'll send it back to you have a cocktail on quantity us in your own home. bts is teaming with fortnight and "dradraftkings is above all airlines that's ahead stay with us for skin that never holds you back don't settle for silver

#1 for diabetic dry skin* #1 for psoriasis symptom relief* and #1 for eczema symptom relief* gold bond champion your skin

welcome back let's catch you up on a couple stories that should be on your radar this friday. it's time for "rapid fire" and it's a bcs edition

dominic chu and deirdre bosa and mike santoli all join me tiktok was supposed to have a ban on the app set to happen this weekend is the sale of tiktok, deirdre, even going to happen, and what can we expect this afternoon, do you think? >> even if we get some kind of action here in the united states, there is still the big question of beijing. over the last week we've certainly seen editorial as that are firmly, firmly against this deal, so there are so many pieces to be put in place. i thought it was interesting, kelly, what tiktok is saying, the threat of this ban has really damaged their reputation with users, with creators, so

you have to wonder, what is oracle and walmart getting what is this doing to tiktok if this is really the best competitor against the facebook goliath? what will they be valued by the time this is all said and done >> it's interesting, because in many ways their profile hasn't been higher. all the attention might have helped with people going, what is this tiktok oh, yeah, now i know >> but the thing is, the attention to privacy and what they're taking from you has put me off from trying to download it and get in with the kids. i do wonder if there are some revelations coming forward after the court's demand that might put some minds at ease and make people more likely to download tiktok as long as it's legal to do so. on the other hand, i wonder, what are we getting out of trying to approve this deal? it doesn't seem like there's enough for them to give a stamp of approval. >> it's interesting, dom, we talked about it a few weeks ago

with -- maybe it was bill bishop, saying, they haven't really cracked down like huawei has, but not getting a ton of blowback out of it >> you can argue that reason is for pr purposes, right the chinese government is trying to say these are independent businesses within china and the government doesn't have, per se, control over any of these companies. with china and the government coming out and saying explicitly that they are kind of overriding doing these types of things, blessing, not blessing, saying yes or no, implies they have direct control over what happens with bytedance or tiktok this is not what you want to hear as an investor or user when the government is saying, we're saying these things because we actually own tiktok and this is what's going to happen i understand there are fundamentals behind this story, but there's also a reason why the government is saying, the more we say about this, the more it looks like we control

bytedance and tiktok >> so quick final question, contessa if this kind of a sale -- or this move to a partnership with oracle and walmart happens, would you download the app then? would you feel more secure about it >> i suppose that would make me feel more secure, but a 20% stake in a company that's still controlled by bytedance, it still leaves me with questions personally whether this is an app i would want to operate in my household it also leaves me with questions about how much control the u.s. government has over american governments to be able to shut down a company like this and force the sale i mean, if it raises questions about how much influence and power the chinese government has, i certainly would have those questions about the u.s. government as well >> deirdre, go ahead quick last word. >> don't feel safe unless the u.s., these companies, get access to the algorithm and the source code. this is not about data that's one piece of it but a much smaller one compared to that algorithm which i think gives the ability of bytedance

to censor content or release propaganda to u.s. users >> in that case i need to work on my dance moves. >> start your own app. let's move on to draftkings. the fantasy sports platform has a high on its platform it's at 430% from its 52-week low. it's market cap is now bigger than delta airlines, dom, in fact, all the u.s. airline carriers >> it goes to show you about the changing paradigm and the acceleration of certain trends that were happening before the pandemic and now really with the pandemic if you take a look at the online gaming segment, everyone is always going to talk about the total addressable market, the tam. that's what all the bankers like to talk about, right if you look at the way this is shaping up, there are huge

assumptions about just how big sports gambling can be it almost makes the assumption that you'll have the vast majority of the american population in this country out betting on sports. i'm not sure if that's the case. i know people who will go on there and play every once in a while, but i'm not sure this becomes part of the american fabric and dna, and for a lot of these companies, that's what it comes to in the valuation size >> i bet it does not me, contessa, but i bet it does >> you have to remember that the part of the goal is to lure people who are already playing daily fantasy sports and luring them into sports betting that conversion is a lot easier if they're already online playing on a phone and draftkings has the lion's share of the market on that. it's a lot easier to convert sports gamblers on line to casino players on line, and if you look how big the illegal sports betting market still is, far outweighing the sports

market, there is still people going to offshore states, dom. as the states move forward, there is a big assumption they're going to legalize sports gambling, online gambling, online sports betting because they need the tax revenue that it brings people to the table on that front i want to point out it's not just draftkings that are outstripping the big casinos if you look at penn right now, it's up 430% it is now bigger than market cap in wynn resorts. we had results of caesar's making a play on william hill alongside a separate offer from apollo why? because they had made such extensive headway in sports books in the united states, and they think it will only be bigger

should we be surprised, though, that gambling stocks attract m gamblers >> here's the food of thought i'll leave you with. is it easier to convert casino gamers and gamblers to fantasy and kind of sports betting, or the other way around my point is if the tax revenue pie is only so big, you're cutting it with that many more people out there, so i'm not sure how much more it gets bigger let's skip ahead and talk about quantity us. remember tho -- qantas? they put the actual bar carts from their boeing 737 planes up for sale they went in minutes, and they took this route because they were retiring those boeing 737

flights. it's starting to feel a lot like cash, deirdre. >> i certainly could not get behind the flights to nowhere, but those bar carts could be good collectors' items, particularly the way flying is going right now. why not make a little extra cashier? but the picture you showed me, kelly, do not have a lot of frills on it i think you have to make it more of a collectors' item to get people to buy them >> you guys are missing the point. the thing was filled with alcohol. you get all the stuff inside of it, too. that's the big deal, right >> i have a feeling you're paying more for that alcohol than you would at the store. >> dom, i also wonder, we just talked about how draftkings has a bigger market cap than any of the airlines, and now qantas is selling bar carts to nowhere if that doesn't sum up 2020, i don't know what does >> there was a time we used to talk about american airlines and delta and united being the

captains of the aviation industry around the world. i think american airlines is like an $8 billion market cap company at this point, and qantas, i don't think, is as big as american is it just goes to show, i guess. >> it's shocking contessa, quickly. >> you could just put it right next to your stadium chair from the old yankees stadium. >> i know. they're going to be selling all the stuff they can in an effort to raise money this year before we go, if you don't have any plans this friday evening maybe because you can't go to a sports game, bts, one of the biggest -- we call it k-pop, right? all right, all right, one of the biggest bands on the planet, it's debuting its brand new video to "fortnight. we brought in our bts fan. he is actually the biggest fan of k-pop

josh >> this is going to be a brand new music video on fortnite's popular island that's where folks enjoy all kinds of entertainment it makes sense why the band wants to do this, by the way the audience can be massive. they boast 350 million registered players it is one of the most popular titles ever. it's available as a download on pl playstation 4, switch, xbox one, pc and android it will not be available on fortnite they removed the game from the app store after they detected a mechanism inside the game, violating store policies those two sides have a court hearing on monday. kelly, back to you >> deirdre, what i understand about the appeal here is they'll be doing their dance in the video, okay? so how big of a test case is this going to be for this whole

content to go out there into the world and not be on apple? >> it is incredibly smart on the site about the games and fortnite they'll creating this buzzy event -- it will make apple look more uncool than it does in this whole saga i'm wondering if we can get josh to either confirm or deny that he is a huge k-pop fan i've been working alongside him for about four years now, and i really need to know if i can play k-pop through my major speakers now, josh, when we all get back >> yeah, and to be honest, i'm much more of a johnny cash fan, maybe a little zz topp. a hipper, younger man filled me in on how big this group really is >> for any folks out there who want to up your social media

game and blow up your mentions, all you got to do is mention bts on instagram or facebook or twitter, and your entire stream blows up with all these bots and everybody yells welse who gets n the k-pop regime mention bts, and i guarantee you won't see any tweets against you for a while. >> last word to you, ms. brewer. >> you can see it on youtube, so even if you have an iphone, can't you just go on youtube and watch it there what's the big deal? >> deirdre >> later on youtube, i believe you can't get -- if you're a diehard k-pop fan like josh lipton, you got to get on it in realtime >> i imagine there are skins you can use to play the fortnite game with and all these extras they're adding as well we'll see what happens with that

court fight that happens next week thank you to contessa brewer with the viability of keeping schools open, it could disrupt the housing market at colleges in a big way. we'll seek to extended stay america about this i'm hector. i'm a delivery operations manager in san diego, california. we've had a ton of obstacles in finding ways

to be more sustainable for a big company. we were one of the first stations to pilot a fleet of zero emissions electric vehicles. the amazon vans have a decal that says, "shipment zero." we're striving to deliver a package with zero emissions in to the air. i feel really proud of the impact that has on the environment. but we're always striving to be better. i love being outdoors, running in nature. we have two daughters. i want to do everything i can to protect the environment to make sure they see the same beauty i've seen in nature. my goal is to lead projects that affect the world. i know that to be great requires hard work. at cdw we get you're always yeah. i'm just not sure my goal is to lead projects that affect the world. office drones were the way to do it. [ laughing ] drone voice: l-o-l. our market share looks good, but...

drone voice: where are the bagels? well, cdw can help you modernize your company the right way, with a scalable infrastructure from hpe, making you more efficient and secure. great. oh. [ drones buzz angrily ] let's find a different room. for transformation that works, you need hewlett packard enterprise and it orchestration by cdw. people who get it. welcome back extended stay america, the lodging rate, is partnering with more than 20 colleges to offer off-campus housing to both students and staff during the pandemic ceo bruce hauser will join us in a moment, but first let's see seema mody about this move seema? >> extended stay america is one of the hotels that have outperformed with an occupancy rate of 81% in august compared to the actual average of 49% the company is trying to disrupt

the student housing market that's been hit with defaults and temporary closures they're hoping their hotel rooms that come with with a kitchen will look attractive to students bruce hauser from extended stay. bruce, welcome you've already partnered with several universities will students live here? >> we were an early mover in this area. we saw that there was demand way back in march when dorms closed rather quickly many students didn't have a place to go. we really thought our product was a perfect fit for the needs of these students. it's been well received, as you mentioned. we've had partnerships with 20 universities and we continue to reach out. that's been welcomed and we can imagine the revenue in millions

of dollars at this point >> you've been very aggressive you've been building out more hotels across the nation i've been reporting a lot on kelly's show about the distress we're seeing in the hotel market, rising defoughts, faultl closings are you looking to buy any of these hotels >> we don't really have a plan to get into the student housing business what we have is a product that really fits the needs in the current time it fits the needs for these students, it's completely flexible, we have no long-term leases but they get what they need they get a furnished studio, they get a kitchen, and they get wi-fi to resume dlaclasses and y in touch >> it the colleges end up footing the bill, or however that works, i'm wondering if it

turns off other people staying in your hotels >> no. to our last point, we've really had fantastic luck in that the kids we've had at our hotels have been very respectful. we haven't had a problem with that at all. we generally keep them on a certain floor of the hotel the students we had have not been disrupted at all. we're happy to have them >> here in the past, you've told us your hotels aren't necessarily for leisure travel it's people facing some type of distress in their lives through losing their job or their house and looking for a temporary solution as the economy shows signs of strength, what forward looking tell us about demand for fall/winter season >> we're different from the average hotel. our business customers are not typical business customers they need to be folks at a location to do their job our leisure customers are on

personal business. they need temporary housing. that's a very flexible business model not just in bad times but in good times. we love the business we think we demonstrated through the pandemic the worst downturn in the history of lodging that this business model out performs pretty well. we're back to pre-pandemic occupancy levels fall is always a bit slower. we're optimistic about that particular niche going forward >> that's telegraphed in your stock. i'm curious how you would classify air bnb to your company. is it a competitor or a partner? >> we don't see them as a competit competitor ta are shore term. our footprint during overlap very much. >> bruce, we'll leave it there we thank you again for joining

us thau up next, millennials got made fun of for living in their parents basement the next generation is doing the sam thing. you can always watch or listen to us live on the go on the cnbc app. the exchange is back right after this

♪ ♪ ♪ ♪ ♪ you can go your own way ♪ go your own way your wireless. your rules.

only xfinity mobile lets you choose shared data, unlimited or a mix of each. and switch anytime so you only pay for the data you need. switch and save up to $400 a year on your wireless bill. with the carrier rated #1 in customer satisfaction. call, click, or visit your local xfinity store today. welcome back this pandemic is having a big influence on the way that gen z are living and spending. the influence could have long term impacts bertha coones joins us now >> this is really a crisis for

young adults in their early 20s. unplo unemployment for 18 to 24-year-olds hit great depression levels and were maimed at 15% last month while many have moved back home with family, they are still feeling real financial stress falling behind on rent and credit card payments having to borrow money 40% have loaned others money according to generational research firm cgk. as a result, about half of gen z say they are putting off major purchases like cars, vacations and new homes. their banks that money just over half say they have saved more since the start of the pandemic with nearly 40% say that have opened an online bank account or online investment account this year. for those who have lost jobs or hours at work, the individual payments helped a lot.

cgk says this experience is setting a new expectation for this generation about the role of government when something like this happens in the same way we saw back in the great depression >> what do you think that might look like in terms of attitude about the government's role? >> i think for them, i know i talked to my millennial relatives and pay were interested in when the stimulus payments were coming they have a sense that there should be a sense of justice and people should get help when they are times. it's a very different look like their great grandparents 90 years ago, they are very in tune with saving and being frugal it's going be a very different kind of moving forward for them, perhaps. perhaps we'll make them more financially resill yent early in your career, it shapes the way you think about your finances. >> are these the later gen z

will the youngest still will in high school. >> the youngest gen zers are around 10. this generation is mostly living at home. even those at college or home bound. the ones in their 20s who may have had jobs rescinded have had the stay home even if they wanted to move out >> back during the financial crisis there were a couple of bad years when you graduated college. this time around we realize it will be the same thing it will take time to catch up. thanks very much for that today. we appreciate it that does it for the exchange today. coming up, online bank chime is now the biggest consumer fintech company. it has a higher valuation than robinhood. we'll talk to the ceo about the fin tech boost and what's next for chime. i'll see you on the other side ofhiquk ea ts icbrk. the lexus es. every curve, every innovation,

every feeling. a product of mastery. lease the 2020 es 350 for $359 a month for 36 months. experience amazing at your lexus dealer.

but a resilient business you cacan be ready for it.re. a digital foundation from vmware helps you redefine what's possible... now. from the hospital shifting to remote patient care in just 48 hours... to the university moving hundreds of apps quickly to the cloud... or the city government going digital to keep critical services running. you are creating the future-- on the fly. and we are helping you do it. vmware. realize what's possible.

good afternoon welcome to "power lunch. glad you can join me in the backyard once again. stocks are near session high with the nasdaq leading the way turning positive now for the week the dow on the other hand is still on track for its worst week in about three months tiktok on the clock. the government has 30 minutes now to postpone its ban on tiktok or announce a deal with the chinese owned app. we have the latest details on that as breaking news is sure to happen this hour a former tech executive and investor will join us to talk about the spak explosion