yield and the businesses they serve of are not ones impacted by the pandemic. >> michael farr, need a name here. >> donaldson, dci, filtration systems, i think it will continue to benefit. i'm buying it. >> jim lieberthal, a name, quick? >> alaska airlines. >> good weekend, everything. "the exchange" is now. >> thank you, scott, and hi, everybody. we have several developing stories to watch this hour the president raising his stimulus offer as house speaker treasury and house speaker pelosi had set to speak again this afternoon the latest on washington's twists and turns and oil and energy stocks soaring this week. is it a short-term rotation, or is this a real crude comeback? and disney drops theaters? apple tv freebies, pandemics, startups and the cruise ship to nowhere. all ahead of us, but we do begin with the markets and dom chu is

watching that for us. >> solidly in the green, looking to cap off a pretty nice week overall but one with volatility. the dow industrials were up over 100 points, up 165 now right there are some questions circulating around about whether or not there's enough support within congress to actually pass this proposed legislation for covid relief, even up to that $1.8 billion by president trump so the dow industrials up off their highs and the s&p off their 3,400 mark here, up almost 1% and the nasdaq outperforming as well. we'll get into why the nasdaq is outperforming with some of the elements coming out sector-wise and industry-wise because there are groups hitting record highs today. check out what's happening with home construction. so far this year up 34%. retail is up about 19% and 32% gains for the semiconductors all of these guys here have hit record intraday levels for these particular etfs. is that reflation or a cyclical focus on the economy that could be one of the reasons

why and specifically for that semiconductors trade, look what's happening with psi linxid there's reports that amd could be getting close to making a $30 billion or so offer to buy xilinx, a big, big merger in semiconductors, driving the entire industry higher we've been watching the semiconductors as a possible leading indicator of the overall markets. i'll send things back over to you, kelly. >> that would be a super exciting deal if it does come through. thanks very much. now to the latest developments on the covid relief front. so far we've heard from senate leader mcconnell and chief economist larry kudlow and the president himself. now the president weighed in just a few moments ago and ylan newi is here on the very latest of where these talks stand right now. ylan >> reporter: well, kelly, a person familiar with the negotiations tells me that the white house is raising its offer to $1.8 trillion for the next

coronavirus relief package now, that is up from the $1.6 trillion it had previously put forward but still short of the $2.2 trillion that the democrats want they are moving closer to a number with economic adviser larry kudlow saying the president has signed off on a broad-based plan and the president himself said code of relief negotiations are moving along. go big, but in kentucky today senate majority leader mitch mcconnell tried to tap the brakes on expectations of a speedy package even if there is a deal. >> i think the murkiness is a result of the proximity to the election, and everybody kind of trying to elbow for political advantage. i would hike to see us rise above that like we did back in march and april, but i think that's unlikely in the next three weeks. >> kelly, the treasury secretary and house speaker nancy pelosi are set to speak again this

afternoon. we'll keep you posted on what we find out back over to you. >> still, ylan, it's ironic to me that after the president is saying go ahead with the $1.8 trillion stimulus which seemed like it was out of the question, market off its high. maybe it's buy the rumor, sell the fact, but i'm just surprised, curious if there's anything you would add on why instead of seeing a big rally on what seemed like big news it was kind of a shrug. >> yeah. kelly. you know the markets better than i do, but what i can say is that murky is a very good way to describe the situation on capitol hill right now the top line price tag is not the only issue in question there are still details of the deal -- of any deal that would have to be worked out. so there is still some ways to go in these negotiations but certainly movement on the top is a positive but this is not a done deal just yet. >> all right, and we're going to talk more about this question right now.

ylan, appreciate it. thank you. ylan newi in d.c. while it seemed like a choppy ride in the markets, with all the twists and turns on covid release, the dow is having its best weekly gain in a month now and it's already erased its september losses the nasdaq is having its best week in three months and it's a broad-based rally that my next guest says will continue no matter the relief package. joining me now is the involveser and robert teeter with silvercrest asset management good to have you both here nancy, i'm going to throw you the same question. the president comes through with a $1.8 trillion offer as it sounds and market sells off the highs. what do you make of it >> yeah. thanks, kelly, for having me i think many investors like us are looking past the election. it's not clear though we should get something to help individuals who are suffering through this it's not clear that that's going to happen and so many of us are looking past the election.

we're focused on three secular themes which is manufacturing in the u.s. is on the rise. don't fade tech and global synchronized growth is making a cameo appearance so we're positioning our portfolios for that, and liquidity in the market could be attributed to the rises that we see on a daily basis after the nice correction we got last month. >> all right well, gsg. haven't heard a lot about global sink sized growth lately bringing it back, i like t.robert, let me turn to you and ask about today first and then we'll broaden out from there wouldn't you extent about, if i just saw that headline on panchlg the president says go ahead on $1.8 trillion of a relief bill, i would expect we were up 500 points what do you think? >> well, the stimulus talks have been on again, off again for quite some time so investors are a little apprehensive about buying into it too much and i agree as we look forward into next year there's a lot of positive tailwinds and that will

continue, stimulus or not. >> so the tailwinds that you see, are they the same ones that nancy sees, robert in other words, are you saying to people, you know, it doesn't matter what happens with this relief bill. it doesn't matter what the outmany could of the election is >> well, one things that we've seen and it's pretty common to notice that is that in an election year the news is typically very negative as you get into a presidential election cycle, a lot of negativity, track this through a monitor the san francisco fed has put through and after the elect cloud of negativity tends to dissipate and the focus turns more from political sound bites on to the fundamentals and we see an improving fundamental picture. with interest rates as low as they are, valuations have a chance to go higher, particularly after we get through the election. >> all right nancy, i want to ask you we'll be speaking about energy in the next segment and whether the 10% rally that we've seen over the last few days is for yield. i guess the question to ask is about the industrial plays you

like why do you think there will be deals? >> no matter who gets into the white house and we can debate whether there's a sweep or not and even if we get a sweep we'll see infrastructure we know companies are moving manufacturing jobs back to the u.s., and the multiplier effect of those jobs is compelling and powerful, and we also know that -- that these companies are beneficiaries of cap "x" spending that has been improving since the obama administration and we expect to see continue so we like cyclicals in the near term and like tech for the next three to five years because we think the multiplier effects there are compelling as work situations change and all behaviors. >> and i should note that the nasdaq is well outperforming today, up 1.2% to the dow's half a percent gain nancy, on that point are you kind of excited at the prospect of this amd/xilinx tie-up, and

what implications would it have? >> i'm sorry i didn't buy xilinx i had it on my watch list and i missed it. that's the nature of this business, in a perpetual state of dissatisfaction always, and i think the m & a activity is important to some of the companies that have -- that you don't have the growth potential on their own and can be much more powerful together so, you know, the lower interest rate comment is absolutely correct and also the fact that these companies are growing the top line exponentially in many cases and so they have the cash and the wherewithal to acquire and add on to their business model so i think that this is a great deal for amd wished i had been on the other side of it, but i'm not. >> i love that the perpetually dissatisfied robert, i'll turn to you you don't have to comment on that but, you know, the three sectors that you call out, consumer discretionary, industrials and materials so you're really betting on the recovery trade, is that right?

>> that's right. one of the things with covid it's created a massive cycle in the area some areas that aren't cyclical there's a lot of click callity with earnings improving and reasonable valuations there will be a lot of gains to be had there. >> all right good stuff today, guys thanks to you both, teeter and tengler, sounds like a law firm or grocery store or something. >> tag team. >> appreciate it. >> dow is up 165 coming up, a blockbuster move from disney that reveals what's working and what isn't in the post-covid media landscape halliburton, occidental and petroleum up 10% this week as oil jumps. is this a real crude comeback or a short-term bump? we'll ask right after this

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welcome back to "the exchange." oil prices are down a bit oday but tracking pretty higher lately both crude and brent are up more than 10% in the past week, and billionaire investor carl icahn is one person seeing better things ahead in the energy sector saying last night, quote, if you look back in three years

you would have said geez, i could have bought the energy stocks that's when you buy something, when nobody wants it, icahn says joining me now to stalk about whether the oil moves are sustainable is dan with pickering energy partners. explain, first of all, the move we've seen over the last couple of sessions. >> sure, kelly, good to be here. i think if you look back, september was a terrible month for the market but energy was even worse or we got a nice little recovery coming off a pretty terrible september. moving crude from the high 30s to the low 40s also helps and then you've got the thematic trade that's going on around cyclicals and low interest rates forever, so i think you put all those three things together and energy is having a nice october so far >> we were talking, dan, about why energy was sitting out of the rebound trade for a while. it just seems like, well, it has its own problems it has supply issues and you name it. if you're somebody watching this who thinks, you know, i'm going to bet on the recovery

i'm going to bet on the rotation should you pick up these energy names or not >> i think the answer is yes if you've got a reasonable time frame. i mean, trading-wise they have been all over the place. crude is not going to make a massive move to the upside any time soon. feels like it's a bit trapped in this high 30s, low 40s area, but the reality is that energy stocks could double and still only be flat for the year. they have been so tough that there's real value there, so the answer is yes, if you can take this volatility and have a reasonable time period >> yeah. exxon which i think is one of the names would you recommend is down 50% this year with a 10% dividend yield chevron is up around 7%. are those dividends safe or simply not that attractive because investors are so concerned about the capital losses >> i think people are worried about the energy transition, they are worried about oil prices and, you know, energy has not been a good place to be so

you just sell the biggest names, i don't know if exxon's dividend is safe, but if they cut it in half i bet the stock goes up the market would like to see sustainable numbers from these companies so my guess is that exxon is going to protect the dividend that's going to pay you while you wait i'm going to borrow to pay that dividend, one of the juicist highest leveraged names for prices recovering because if price gets better that dividend gets safer so i think they are reasonably safe and even if they cut them i think the stocks are still interesting. >> well, what you say reminds me of what dan loeb said about disney this week where he preferred them not to pay the dividend i know exxon doesn't like the optics of doing away with the dividend and they have a lot of investors that that's very, very important to, but are you saying they would be better off with it >> not that they would be better off without it, but i think there's an overhang on the stock

right now. in the short term if you took that overhang away you would probably get a lift. it hurts the democrat in the near term and the income but i've got a sustainable income on a dividend basis i'm not advocating that, but if they did you might wind up with kind of a surprise move to the upside in stock. >> and i'm just curious, dan, before we go, we have carl icahn and sam zell in the last year or so with another person, and, of course, he's famous for looking at distressed assets and saying he was looking at the energy patch. what does that all say to you? >> well, it tells me we're six years into a downturn. there's good value there i think those investors are making a play that isn't necessarily the next quarter or year, and it says when you buy three or four times cash flow on depressed cash flows that your opportunity to make money is pretty good, so you've got to be patient, but there are value

players and there's value in the sector i think that that's what that is telling you. >> all right dan, thanks for joining me today. it's good to sigh. appreciate it. >> thanks, kelly. >> you bet. >> dan pickering coming up, microsoft takes a bold social distance on working from home. will it backfire we'll explore that, and as work began drying up during the pandemic some americans decided to take matters into their own hands and start a business it the turns out startups are surging this year. that story is next this is decision tech.

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welcome back to "exchange" and let's get a check on markets right now. dow is up 139 points it's been a fascinating couple of hours the president has seemed to agree to support some kind of $1.8 trillion stimulus plan and yet the market is off the highs after those comments there's a lot of different reports out there about whether he has enough support, especially on the republican side in the senate, even in congress, to move forward on a compromise plan with speaker pelosi we're going to hear potentially from pelosi and mnuchin after they hold talks this afternoon, but all of that gets you a dow at 139 or half a percent this year it's a lagard. the nasdaq is up 1.2%. let's take a look at the sectors where discretionaries and consumer staples are your movers

and energy is coming off a really couple of strong sessions but still a lagard zoom shares are higher after a buy initiation they are calling zoom best of breed when it comes to video conferencing zoom is up about 3%to 493. the stock is up more than 600% this year. meanwhile, shares of ge are getting a nice lift after goldman reinstated the stock with a buy pointing to management progress in creating a leaner and more productive company. the shares are up 3.7% and draftkings falling on news that the new york jets team was sent home after a presumptive covid-19 positive test shares on track for their worst week since march draftkings down 4% right now. since the pandemic started weekly jobless claims have been above 800,000 every single week leaving more than 25 million workers on some form of unemployment and while congress debates more relief anxiety over additional job losses is rising,

especially for airline workers seema mody brings us the story of one woman living this reality right now. seema? >> kelly, the back and forth in washington is fueling anxiety among americans who have either lost their job or been furloughed meet connie who recently celebrated her 20th anniversary as a flight attendant for united air. she opted for a company-offered leave of absence from may to july and then started to fly in late summer only to be told on october 1st she was being furloughed >> it creates a difficult time for me i don't feel like i can go out and find another job at this time because i don't want to do that for another employer, have them hire and have me put in time and effort and say in a month i'm going back to my airline. the that's not fair to them. >> connie has already gutted her 401k and hopes she doesn't have to dip into her pension which

would make it difficult for her to retire. over 25 million americans remaining unemployed first-time claims totalled 840,000 last week, higher than expect pedestrian and the stimulus talks have coincided with a number of layoffs kelly, it does seem as we've got a lot of layoff announcements lately are people tying it to the bill or is it because we're long enough into the pandemic that companies are right sizing and know what the workforce will look like? >> reporter: a number of companies and even americans we've spoken to the last couple of days that are unfortunately dealing with the unemployment situation do tie it back to this government aid running are out and that's why so many people are on edge watching this stimulus talk to see how things pan out between the democrats

and republicans and how large this relief package will really be to ensure that they are also included in that, and i think that's also the sense of anxiety, kelly, that so many people who are furloughed are facing it's really in contrast to a musician from broadway that i spoke to this morning that said, all right, now i know that we're not going back to business until june of next year, but at least i can spend the next nine to ten months looking at my skill set, seeing how i can reapply it to perhaps another job versus being furloughed and not sure if you're going back to full-time with your company. it's a precarious situation to be in. >> yeah. now we'll talk more about people in that position right now seema, thank you despite or because of this year's mounting job losses, some brave folks have decided to take matters into their own hands and launch their own business. the number of new business applications for likely employers is at its highest level in more than a decade as of mid-september and way above what we saw in the last recession and what's behind this

startup surge. joining me now is an economics professor at the university of maryland and the former chief economist for the u.s. census bureau great to have you here there's a lot of skepticism about these numbers with people going it must be any possible explanation except people really launching new businesses what would you say >> i would say a couple of things this new applications data is really high quality data from the census bureau. if you're going to be an employer business, a necessary condition for being a new business is you've got to apply for ein so this is literal lit universe of applications for new eins that we're tracking on a very high frequency base miss and ss-3 is the form, an online form so it's basically automated so there's sort of no association with this being a backlog or anything like that. and also various check boxes on the form that provide information about why you're applying for a new ein, and now

we've seen a surprising surge in new -- in applications for new employer businesses. i have some thoughts about why that's the case but you're also right to note that in the great recession this same series plummeted. >> yeah. so i also want people to know that there's a broader series that would include freelance workers, independent contractors, gig workers, that's running up 18% higher than a year ago and we've actually stripped that out so this is really just focusing on startups among likely employers people that are going to hi, and as everybody knows this is engine of job creation and this engine totally stalled after the last recession, for years actually, so if you think that this is a real phenomenon, what's driving it? >> i actually think the covid-19 contraction is going to be more of a restructuring contraction that doesn't mean that it's a good thing we've having the contraction. it's terrible. you just had the story about

individuals and facingoffs, and we recognize that the new economy and the new norm al is likely to look different and i think covid is the is accelerating trends already going on so if we want to ask ourselves who are these new businesses i think, unfortunately, census does not yet release the data by industry, but i think once they do we'll begin seeing that the u.s. economy is pivoting not surprisingly to any kinds of goods or service activity that -- that a new business can promote remote activity and online activity and -- and essentially what's happening right now is there's obviously lots of existing businesses that are working very hard to pivot themselves but not all of them are well-positioned to do so and that actually opens up market

opportunities for potentially new businesses. >> yeah. it's fascinating, like you said, a restructuring here there's something very different going on from after the last recession and we hope more promising. john, thanks so much for your time today. >> sure. nice to be here. sets >> get to wil fred frost for our cnbc news update. >> here's your update at this hour as election day approaches twitter is taking spreads to slow the spread of misinformation including a prompt encouraging users to add their own commentary before re-tweeting a post the company says it hopes the extra friction as it describes the additional step will help people think about why they are amp filing any particular messages. in 2016 as his campaign was running short of money donald trump got a $21 million cash infusion from transactions involving a las vegas hotel he co-owns. that's according to the "new york times" citing trump tax records that's obtained. the paper quotes experts saying

the maneuvers raise legal questions. the white house accuses "the times" of politically motivated hit pieces about what it calls a standard business deal. and the chairman of the board new york yankees pitcher whitey ford has died at the age of 91. he won almost seven of every ten games he pitched, the best winning percentage for any pitcher in the 20th century helping yankees dominate baseball in the 1950s and '60s kell, back to you. >> thank you very much sir will fred frost. disney throws a curveball and apple extends disney plus for free and napa valley is on the brink and would you take a cruise to nowhere. it's all coming up after this quick break. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.

welcome back let's catch you up on a few stories that should be on your radar. it is time for rapid fire on this friday. here to break down all the headlines are john fortt, julia boorstin and dom chu it's great to see everybody, and let's start with disney delaying yet again another big-budget film, the release of the pixar movie "soul" has been pushed back a month to christmas day and won't premiere in theaters

it will debut on premiere plus and no charge to subscribers the movie theater stocks, as you might imagine, don't like this news, slipping lower amc and cinemark and disney in the green today. what's also interesting is they won't charge that $30 they did for "mulan" which reinforces the notion that that was kind of a flop. >> i think "mulan" was also very unique in that it was so big budget and that disney had spent months and month, remember, it was delayed several times, months and months during the theatrical marketing campaigns which meant they were perhaps even spending $100 million on marketing "mulan" so there's a different sense of how much they needed to get back from "mulan." this is different because it's targeting kids and a perfect example of what disney plus does market it as a christmas gave

the, maybe people who already describe as feeling worth wyle and they will use this to get more people to sign up for disney plus. >> i would imagine marginal subscribers for disney plus are far more valuable for shares than charging people a doll to watch the movie. it may even be replacing the traditional box office economics, maybe. >> if that were "toy story 49" would they do this either "soul" is the so-so or disney plus churn is bad or "mulan" didn't do that great, and i -- i tend to lead towards maybe "mulan" didn't do -- i saw, it by saw it the at somebody else's house, julia, and i kind of thought, oh, well, it was fine. i'm not going to go back and watch it again maybe -- maybe they kind of tried it and know that christmastime it will be nicer to give a gift than demand one. >> but also just remember, john,

putting it in theaters doesn't make a option. this was supposed to happen in november if you can make the money, unless your churn is a be pro and you say, boy, after charging them for "mulan" we need them to stay or sign up so let's give them this. >> dom, we'll give you the last word on this. >> this is econ101, the company disney trying to figure out if there's an equilibrium point for which you can charge i'm a disney plus subscriber i was not going to pay the 30 bucks to have "mulan" streamed into my disney plus subscription i'm happy to wait for three or four months for it to be free with my subscription but to jon's point, there will be a price where you can set it and maximize the amount of revenue. disney is trying to figure out what they can charge for these types of movies.

it may not be 30 but it's certainly not free somewhere in the middle is probably is. they need to figure it out disney is figuring it out. >> kell, i just have to say everyone knows what it is, that it's an animated movie and people don't know what "soul" is. >> fair enough i didn't find about it now speaking of stream, apple will extend free trials of apple tv plus for three months so if your trial was going to expire before february you get three more months at additional -- at no cost apple-tv has added hits like ted

lasso "are there an extra take or people are warming up to disney plus? >> in terms of oernlg programming, i've watched things on apple tv plus whereas on disney plus there's stuff the kids like. we're kind of in there all the time part of of it is "the simpsons" watching things from back in the '80s and '90s when i was a teenager but this speaks to apple might not have enough new content particularly in the pandemic to keep people churning so figures why not push this out three months, get the new slate ready and then we'll be okay letting this thing roll off. >> dom, we do know they have a bunch of new things coming that people seem excited about, and obviously extending it -- a free trial for three months is not a sign of strength, but, again, if it's kind of going to work for the long run then who cares, right? >> this comes, again, back to the price point issue.

the two properties i think in our household just anecdotally that have the most traction with regard to original content are netflix and to a certain degree amazon prime we do watch a lot more amazon prime than netflix because of the original series as opposed to the libraries that they have. if people at large are looking for that inventory, you have to figure out a way to ramp up that kind of programming. for apple my wife watched the morning show and i watched a little bit of see and that's all it's been since i've had apple tv plus so they need more in terms of content an maybe they can justify the cost >> julia, what would you say >> i think that they are very strategic here in terms of extending the window a little bit longer until perhaps they are selling bundles of services. remember, might be a lot easier to get people to pay for apple-tv plus if they are paying for other things at a discount

at the same time and when they launched apple tv plus the bundle was not part of the conversation so they are also delaying to see if maybe they have hall lite bit of a library with more of their originals, it's not luke when they lunch but it's worth selling it and three or four months they will have a lot more content from where i'm sitting. >> what was the name of the apple bundle, apple one i think is the bundle, the workout stuff and the music and the tv so it makes sense to use that whole suite of offerings this story i want to hear everyone's perspective on. the tech giant will now allow employees to work for home for less than half of their weeks from now on an can gain permanent approval to work remotely and you can work from anywhere, but compensation and benefits will vary depending on microsoft's own geopay scale

nearly half, 44% of employees would take a pay cut to live somewhere less expensive john, i have a friend at microsoft who has had new team members from new jersey who are literally working in their parents' basement and you wonder what those going to do for that workplace culture going forward. now, maybe that employee is able to go to seattle as soon as they can and they go in and maybe the parents all stay home. what do you make of it >> i have the opposite take from a lot of headlines i see from this can you not work at home less than half a week means two days a week or one that's the only way that you can slice less than half a week. i don't think that you can work from kalamazoo an have the same career trajectory you would at a tech company's headquarters. sure, maybe you get on board plus are you going to raise through the rankses and in

denver you're making 18% less. can you make 22% less if you move to the bay area because there will be a bunch of people living with their co-workers and their families live in denver. that's how they game if. >> that's why people would think i'll take less to live somewhere else but i'll have -- i feel that this is a great exercise in scaleability for the workforce in if a company like microsoft a -- what you're looking for is this equilibrium os pect where people want to settle where they want to be some people don't want that career trajectory. some people are okay working the 9:00 to 5:00 job and collecting their paycheck and doing things outside their own lives. you don't need to put everybody on the same track for the same promotion or pay and i would say

this also. if you're looking to game some of those situations, how long can you actually say i'm going to work in a different time zone from my family, telecommute or commute and make it work >> we have to move it along. >> kelly, i think that the real question -- >> sorry, go ahead. >> i was just going to say the real question is when are they going to force people to make this decision? i can't decide anything right now because my kids are still at school at home so you have no sense of maybe you would want to spend a couple of days a week at the office so i think it will be really interesting to see if people can go back and forth and i'll opt to take up or two days at home or maybe not six months from now. >> totally agree, totally agree. talks about flights to nowhere and cruises to nowhere and

crazes that simply circle singapore is runningch they are going to test hygiene capacity vice president pence is holding a call with cruise executives at 2:00 p.m. today. dom, this isn't just a flight of fancy, toe to speak, it's helping them gear up for what could be the post-pandemic cruise industry and get people more comfortable with it and many people want to sign up for in. >> what i sign curious is whether or not the price point is premium because some of the report we've been seeing say this is going to be thousand of dollars in terms doing it. if this was a trow dry run and getting the cruise industry to get people more comfortable with the idea of going on the cruises again you might want to say, hey, we'll give you a discount fare you won't go anywhere. you'll get to see what it's like, get with the protocols and get all of the food and beverage options that you have in a different capacity

there won't be all you can eat buffets there for a while but that's what you're looking to do if you're looking away to get there, i'm curious what the price point is they cannot get away with the ultra peoplium price point just to go around circles in singapore. >> i thought you might be openp to it. the thanks, everyone, for this edition of "rapid fire." >> this miss fry stock has climbed 30% this year and jim cramer says it's a buy more on that next. you can watch live or on the cnbc app we're back in a couple

♪ ♪ ♪ ♪ ♪ ♪ ♪ welcome back our own jim cramer laying out seven sectors of opportunity in the market right now and used auto stocks are among that group as people remain wary

of public transit or air travel due to the pandemic. lithium motors, car max, autonation the whole group has seen a meteoric rise and in lithuania's case up 400% and carvana up 850% from the lows and the company is benefiting from its online focused approach as dealerships have been shuttered by the coronavirus. a 16 boston rise in net used vehicle sales an went on to project record-breaking revenue for the current quarter and carvana's market cap was below $5 billion before the year and now it's bigger than automakers, fiat and ford and worth more than $35 billion still ahead here on "the exchange," wildfires ravaging california's wine country. here's a large short the charles crew where the parent company has allowed pg&e to set up field

operations to deal with these buyers we'lspl eak with the ceo on future of california wine right after this when i was in high school, this was the theater i came to quite often. ♪ the support we've had over the last few months has been amazing. i have a soft spot for local places. it's not just a work environment. everyone here is family.

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california wildfires have taken a big toll in napa valley, making it the most devastating season for california wine country ever aditi has a closer look for us >> every wine maker is facing unparalleled challenges between the pandemic and wildfires a recent wildfire destroyed more than 1,500 structures. wine makes are now face three big challenges first, assessing the damage. dozens of wineries were damaged by the fires i just talked to one wine maker yesterday who said they're still trying to dig out and figure out what needs to be rebuilt two, deciding whether or not to harvest, a big question. those wineries which were not impacted directly by flames face smokey air sitting on their grapes for weeks many are deciding to skip the harvest. those this that category face

the challenge of keeping enough inventory to satisfy their customers. fortunately there has been an oversupply of grapes over the last years so a smaller crop could help balance things. judd, thank you so much for being there. we see the pg&e trucks behind you. they're using the vineyard as a base camp after you reached out to them. what was the reason behind that decision >> the decision was pretty simple for us. when the fires broke out, first first step was to make sure all of our sftaff and family were safe it's a really tight-knit community in the valley. we have a good connection with pg & e and they set up base camp here >> you mentioned that it was in tact after the fire but with so

much smoke in the area, how are all of the mondavi wineries deciding whether or not to make wine from those grapes >> this is the original mondavi family the only estate, only winery is charles krug, the oldest in napa fa valley, still owned by the mondavi family we have a very large footprint, 850 acres stretching from down in the south up to hollow mountain fortunately most of these fires were in the northern part of the valley and so much of our fruit is in the central part of the valley so our decision is very simple we are picking all of our fruit. we'll make wine out of it and determine at that point in time whether or not that wine will be fit enough to sell or bottle we won't bottle anything that won't be fit for consumption

we're quite confident we'll make a pretty good wine 2017 is a good example, there's a ring of fire all through the valley and we still made fantastic wines out of that vintage. >> it's kelly here my question is if these wildfires do become chronic, will the wine industry still have a future in california? >> oh, absolutely. the win industry e industry is most resilient industry around we've been through multiple years of fires, earthquakes, world wars, recessions, economic depressions and most importantly rather back in 1919 through '33 we went through prohibition when it was illegal to have alcohol so we know we're going to survive and thrive this will be a setback but we're passionate people about wine it will continue >> and, judd, talking about the

long-term effect, long term there's resilience but what are your thoughts about the 2020 vintage overall for napa and sonoma how will it look volume-wise and how will it taste? >> it's going to be a very -- different pockets there's different areas of the valley. sonoma is well known for pinot noir and remember that all of our whites were already in so we're going to be fine with our whites the question is going to be with the reds and cabernet is incredibly r incredibly resilient and thick skinned. depending where are you in the valley or the sonoma valley, there are pockets where there will be real greatness or there's going to be real problem. >> cabernet grapes so iconic in that regions

some are looking to grow research blocks and figure out a way to grow heartier grapes that withstand higher temperatures. >> we're looking at different regions in napa valley it's about 80 miles long and five miles wide. it's very cool in the south. if that's warming you, maybe that's more of a cabernet area down there this is generational type of thing. we're in our fourth generation with the first on the way. so we're here generations and we will continue to do any kind of research we need to do to evolve ourselves. at this point in time we're very much dedicated to the cabernet grape and think it's going to continue to thrive here in nap ars vnapa valley >> kelly, thank you so much. back to you. >> that does it for "the

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