margin i like goldman sachs right now. >> josh brown? >> i think farmer jim is going to make money with general motors gm looks like it's headed higher no real resistance until about 41 or 42 it. i would buy it here. >> steph, you got a quick name for me >> marriott, it's a reopen stock. have to have patience but i like it. >> good stuff, guys. we'll see you. "the exchange" is now. ♪ >> thank you, scott, and hi, everyone there's a lot ahead of us. the doj is suing google and asking the court to address what they say is google's grip on search what could they do, and how much will it matter to the company? we'll debate and get into that plus, checking it twice. the number one retail analyst on the street for the seventh time joins us with the names on his shopping list this strange holiday season. and here comes netflix the hummer gets electric and is tesla having trouble in california it's all ahead, but we begin with the markets dom chu has the late for us.

dom? >> it looks like we'll try that recovery trade from yesterday's late day selloff here. stocks are broadly higher and to a decent degree. 250-point gain for the dow about 1% upside. the s&p 500 still very much above that 3,400 area. that's an area that a lot of traders are looking at as a pattern of support there possibly for the markets up 1%, and the nasdaq, believe it or not, is underperforming, only up three-quarters of 1% as well so the nasdaq a key focus there. if you take a look at some of the things that traders are watching from a more macro perspective. interest rates, especially longer term ones are a very key focus here we don't show the 30-year long bond very often. we focus on the ten-year more but that move to the upside has taken that 30-year long bond beeld 1.592% above its longer term trend line or the 200-day average yield for that particular interest rate 1.52% is the level to watch there. that could have reverberations on the financial side of the market also then check out these

particular stocks because they are showing a broad-based indicator. we got better than expected housing data throughout the course of this week. d.r. horton shares up nearly 2%. same for lennar. home depot and home improvement ant mohawk industries, do flooring, all of the housing and building-related stocks, kelly, moving to the upside so interest rates a key focus. watch the housing data that's helping to propel that market to the green as we're seeing today i'll send things back over to you. >> yeah. leading us out of or through the recovery, we hope. dom, thank you very much. investors are continuing to watch washington as the clock ticks on house speaker's pelosi's deadline to make a stimulus deal. moments ago, in fact, the house speaker says she has hope a deal could be reached by the end of today. despite all the back and forth we've seen though, markets which have been having a rough time with some of these headlines and generally don't have a great october in an election year, well, they are not doing so bad. the nasdaq is up about 4% this month. 3% for the s&p and 2.5% for the

dow. my next guest thinks this market is due for a pause joining me is jeff crumpelman, the chief investment strategist at mariner wealth advisers jeff, good to have you you were somebody who told people to stay invested all along, so this is not, you know, hey, the sky is falling kind of thing, but you do think we're due for a pause now. why? >> well, i think just it would be normal after an historically swift run to newer highs for the market to take a pause after a 35% pullback in one month in which we remain contrarianly positive. we thought and we maintained our target of 3,500 in the s&p we've just been surprised that it has recovered so swiftly, so after an historically swift move to newer highs, to have a pause would make total sense to us, but there are some worry items that are out there, the

election, the stimulus bill that's yet come to fruition, and it's continued to -- to be debated. those are some of the areas that could cause a little bit of angst and keep us in a trading range after a really hard run. >> yeah. i mean, this is kind of the pours that everyone has been waiting for, but maybe you could count september, but it hasn't really materialized, and i guess that's your point. markets like to climb this wall of worry. >> let's talk about some of the kind of tactical recommendations that you have here because, number one, we're talking a lot about growth we have headline trouble for big tech today, but you think there's elsewhere that people can look for growth other than just the faang names, so to speak. where is that? >> yeah. so, to be clear, what i'm saying is we'll have a short-term pause, longer term looking out over the next 12 or 15 months, we're biassed to want to take our price targets up, and that gets it to some of the areas that we're focused on because we do have vaccine development on the horizon. we do see improvement in earnings in the economy and the

data is very solid leadership remains in the cyclical growth areas of the market, and i think it's misadvertised that it's just all about faang. we have a very broad participation in the stocks within technology. it's just not faang within technology, so there are a number of names outside of technology that we've done extremely well, and we expect to continue in the software area. you know, splunk, salesforce are good examles, 26 which makes silicon carbide used for 5 guy transmission so pockets of technology we continue to like, and we think it's much broader than advertised, and then consumer discretionary i've mentioned before on this telecast with you, kelly, that i've spent a lot on lululemon as have a lot of other folks in the midst of this covid, so lulu is

a great example of benefits from covid and fedex, federal express, wonderful quarter, 17 times earnings with 20% plus growth in e-commerce really executing at this point with the industrials those are -- those are good examples of stocks that we think that we'll do well, and i'll end it up by saying more with lithium minor and distributor. they are supplying lithium for this move towards electronics so those are areas that we think are right for continued good performance. >> then would you say to investors, jeff, that any pause that you're anticipating should be a buying opportunity? >> yes i think the nuance every pullback that we've seen going back to 2009, all we've said buying on dips, buy on dips our mantra was in march and continues to be hold your ground, and i do think that

we've raised just a little bit of cash after this historic run to be redeployed, an absolutely if we saw a pullback here as we move through election and get more information about managing covid, yeah, i think that we're biased to say buy on the dips, absolutely >> always clear, jeff. we appreciate it a lot of good names and recommendations for people as well thank you, sir we'll check back in soon >> thank you. let's turn now to the other big headline out of washington, the doj along with attorneys general from 11 red states are filing an antitrust lawsuit against google the suit alleges google has monopoly over search, locking competitors out of the market through exclusive contracts with distributors while also stiffling innovation googling firing back calling this lawsuit deeply flawed and says people simply choose to use google instead of available alternatives joining me now to discuss the ramifications is a former antitrust attorney for the federal trade commission it's great you have to here, and

how realistic and what remedies do you expect to come out of this >> so, i think this lawsuit is, well, certainly it's very significant. the department of justice hasn't brought a monpollinization case of this magnitude since it sued microsoft back in 1998, and as you know that was a huge case that went on for years and years. i would expect this case also to last for decades so the possible remedies, it's a whole range possible remedies could be, you know, google is prohibited from pre-setting or having agreements to pre-set or block competitors from being on mobile platforms that's one possible remedy goingp could be broken up. i think the most likely remedy will be some sort of settlement. i think it's a difficult case, and it will go on for many years. >> yeah. difficult case that will go on for years. we're looking at shares of

alphabet up 10% today. they have of they have shrugged off the headlines all along and should they be changing any business practices should investors be worried about any dramatic changes, or is this way, way down the road >> i believe at this point it's early for investors to be worried about changing any of their investments, and i think that google will have a fairly strong case, so looking at the -- the complaints which i'm still working my way through, but looking at the complaint filed by google and just keeping up generally with the investigation, it's clear that much of the case is going to be based on witness testimony which would be competitors complaining and documents produced by competitors as well as google. the difficulty or part of the

difficulty in this action is that google is offering its product for free, and so because the product is offered for free it will be difficult or more difficult to get economic arguments and typically the way that you win most antitrust cases in the last 20 years or so as you would have economic models that show how consumers are harmed as a general rule the u.s. antitrust laws protect consumers. they don't protect a particular competitor, and so while google's actions may harm other companies in the search, in the general search category or the advertisement category or even other companies that would like to be on people's mobile devices, it's difficult to say at this point that there is -- what is the value of the economic harm because it's offering its products for free,

so then you're sort forced to have a model that talks about what would the model be like if these constraints weren't in the market, but you don't really have an economic cost, maybe consumers would have more choices, perhaps some smaller competitors would have more market share. >> yeah. >> but it's -- it's not a clear case, so i think it's a very difficultcates, and i think part of it is, you know, many of the attorneys at doj working on this case felt that it was filed too soon and moved off of project, so i -- i think it's premature to change your investment strategy at this point >> fair enough, and that certainly seems to be running through investor minds as well we'll see if this kind of novel approach, similar to microsoft but kind of with a different set of circumstances what that does bear out in the years to come. thanks so much for your time today. >> oh, you're welcome. >> we appreciate it. still coming up on "the

exchange," the pandemic will have a huge impact on how consumers shop this holiday season so which retailer will come out on top in the number one retail analyst on the street tells us ahead. plus, millions of students across the u.s. are learning in their kitchens instead of in a classroom. could this unexpected shake-up lead to an evolution of the education system we'll ask the former u.s. education secretary arne duncan coming up. >> and move over lululemon, here comes kohl's we'll tell you what they are up to in when "the exchange" is back in a couple i'm searching for info on options trading, and look, it feels like i'm just wasting time.

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is. welcome back the coronavirus is transforming education as we know it and shedding light on some of the structural issues that our education system is facing remote learning has shown that the country has an educational divide and is lacking resources, especially teachers that it needs. so what is the path forward for school looking like? let bring in arne duncan, th former u.s. secretary of education. he joins us first on cnbc ahead of his mill kin conference panel. appreciate it, mr. secretary welcome. >> good afternoon. thanks for having me you know, i think one of the significant but small changes that will probably come out of all of this is a big rise in home-schooling certainly a lot of parent have

sent their kid now to private and parochial schools who wouldn't have done so in the past, and public schools who once kind of had a lock on education, you can kind of feel that slipping this year as a result of everything that's happened what's that going to look like if we spin the clock forward five or ten years from now >> yeah. i'm not sure ifity agree with that long-term trend it's been obviously an extraordinarily difficult time for kids, for parents, for teachers we shouldn't be in this situation. this was a natural disaster that morphed into a manmade catastrophe. at the end of the day kids want to be in bricks and mortar schools and want to be around their friends. parents have never respected and appreciated what had teachers do more than during this time so at some point, and it may not be soon very honestly, but at some point as we get past this covid epidemic, i'm hoping the vast majority of children will be able to return to bricks and mortar students and enjoy the academic part and all the social and emotional learning and

benefits that go along with that >> yeah. certainly understand, and some of the parents i'm referring to who have gone to private schools are doing so precisely to have that experience because they want their kids to be around other kids, especially their younger kids you know, one of the other innovations that's coming about this year are the learning pods and from the teacher's point of view it's opened up a whole different kind of way of doing business you know, i don't know what the lasting power will be of that long term, but what -- what would you kind of say about the phenomenon of teachers starting pods and kind of reinventing the way that education is disseminated >> that's a great question i've said all the time that for me the goal is not to go back to quote, unquote normal whatever that was because normal didn't serve too many children well enough and we have to really use this time to try to reimagine and reinvent education, and so there are a couple of sort of fundamental things that we should be thinking through that we've always done that maybe aren't in the kids' best

interest just to rethink and give you a couple examples of that. one is rethinking the school calendar we have so many kids around the country so far behind right now. we always have had the summer office because we, you know, kids working in the farls. that's not true anymore, and there are a lot of kids that -- that need to catch up. they need help so we have to rethink that secondly, i would love to see a national tutoring program to very intensively reach the kids who are behind and help them catch up whether it's physically, virtually or both and third i think we should move from a competency form of education. pass algebra when you know algebra but not after passing class for nine months and just to stay on the algebra exam. let's say you have an amazing algebra teacher at your school that normally teaches 100, 125 kids in a day. what if that ticci was able to teach all of your freshman in

the high school algebra and do that using technology and other teachers could use the rest of the day for office hours and for small, you know, small -- gruel groups of students and individual tutoring, sort of that pod-like concept that you talked about, so it's really a time, again, with all of the lack of leadership at federal leaders, local leaders are working so hard to try to be innovative and creative so hopefully we can come out of this with something much better than what existed before. >> yeah. to your point, it's making people think why should it be the best local algebra teacher, why not the best in the country or the world, right, who speaks our language i do think it's kind of opened up this whole new frontier, and as long as this can also ameliorate the digital divide we've seen this year and not exacerbate it that's the real focus. arne, i know you have a big panel to get to but really appreciate your time today thank you, sir. >> thanks so much. have a great day. >> arne duncan, the former

secretary of education talking about the future of schools. coming up, netflix reporting today, and expectations are high in fact, it's had four price target hikes this month. we'll deliver and explore that ahead. l-brands and the gap are a few retail names that are practically left for dead a couple of months ago could their huge return be a sign that retail could be headed 'rba ia nd-end rebou wee ckn couple tax-smart investing, what's new? -audrey's expecting... -twins! ♪ we'd be closer to the twins. change in plans. at fidelity, a change in plans is always part of the plan. this was the theater i came to quite often. the support we've had over the last few months has been amazing. it's not just a work environment. everyone here is family. if you are ready to open your heart and your home, check us out. we thought for sure that we were done.

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welcome back markets at session highs after positive commentary from speaker pelosi after positive talks of a possible stimulus deal up 331 rounds, up 1.1%, pretty even gains across the cows and nasdaq and s&p slightly outpacing that and all 11 sectors in the green consumer discretionary leadering the way and financial, industrials and communications services up there as well, all gaining more than 1% less get to sue herera for our cnbc news update sue? >> thanks so much. kelly. here's what's happening at this hour house speaker nancy pelosi says she is optimistic that she can reach a deal with the trump administration to get more covid-19 relief out by election day, but she tells bloomberg that more work needs to be done on state and local assistance and also liability protections goldman sachs will reportedly pay $2.8 billion and add mitt wrongdoing to settle federal charges connected with

its role in raising money for a corrupt malaysian government investment fund. it will not, however, have to plead guilty to criminal charges as part of a deal with the u.s. government that's expected to be formally announced later this week and take a look at this little guy. cute alert this is a baby pugle he's being treated at sydney's zoo after falling 15 feet from a tree into an apartment building in new york city he's gaining wait and even though he doesn't look like it, it it look like he's growing a little fur you're up to date. kel, what back to you? >> what is an akidna pugle i've never heard that in my life. >> i've seen them. i know about the akidna pugle but it's nate i have to australia. i'm not really sure too much more about him, but he's awfully

cute kind of -- he looks a little platypusy. >> if you say so. >> yeah. all right. sue. thank you very much. >> you've got it. >> sue herera with our baby animals update for the day by the way, markets are also at session highs and positive comments from the fed's charlie evans in the last few minutes. let's talk a little retail, shall we, because covid has wreaked havoc on the u.s. economy and could lead to less spending in the holiday season bertha coombs is here with the details? >> reporter: americans are feeling anxious about physically going into stores during holidays because of covid, but a lot of folks are also anxious about spending according to the deloitte holiday retail survey, 38% of consumers say they plan to spend less over the holiday disease, most because they are worried about the economy. now, that's the highest reading in the deloitte survey since the great recession in 2008. that's when people scaled back

and retail sales actually fell more than 7% over november and december, and that's how much less on average people say that they are going to spend this year most expect to spend nearly $1,400 and nearly $500 of that on gifts and cards that's down about 5% from last year they expect to spend 34% less on travel and entertainment away from home, and those savings will go to non-gift purchasers, ie a little more self-gifting. kelly? >> bertha, thank you very much we appreciate it bertha coombs. let's talk more about how the changes in consumer behavior limb pact retail this holiday season joining me now with the winners were and the losers is matt boss, head of jpmorgan's retailing department stores and specialty teams and today named the best analyst for the seventh time in this sector. like a boss, matt, welcome back. >> thanks for having me on.

>> let's start with the winners that you see here. you know, is it because of covid? is it independent of code of who do you think is best positioned for the holiday period >> so fundamentally i would say there's three factors. it's value, convenience and innovation those were actually the fundamentals factors we were looking at pre-pandemic to determine winners and losers i think what comes out of the pandemic is you see size and scale become a much more important factor i think that the changing of customer behaviors and the market share that some companies have been able to garner during this period can be sticky. if you look at the dollar stores, whether it's dollar general that's been reporting sales gains much higher than pre-pandemic the question is how much do some of the changing traffic behaviors stick? i think some of the categories that you'll see health, wellness and outdoor has legs post-pandemic, and the other dynamic would be home, so you just cited it with some of the

holiday spending which i think continues beyond whichsy think you will see travel and leisure on hold for a continued period as we move into 2021 but i think consumer could factor pretty well whether for the upcoming holiday or through the next half of next year. >> yeah. you know, i've seen some other tabulations about how c consumer-free cash flow is at a high point you do have a couple of names like l brands and aeo, i believe that's american eagle, gap, turnaround stories, and you think they are going to bear fruit? >> yeah. what we're looking for is a combination. i think you have best in class names that come out of this stronger, so that for us would be a nike, a lululemon, a vf corp, dollar general and then to the flip side i'm looking for value opportunities but the value opportunities with embedded growth. if you look at l brands it's really the bath and body works

concept that i think was validated during the pandemic and comes out of this period stronger similar if you look at american eagle, it's the aere brand that focuses on the casual and the loungewear coming out which i think casualization is a clear mega trend coming out of this, and, third, would be the gap which you have the old navy value concept if we see a more recessionary backdrop beyond the pandemic, and secondly you have athleta which factors into the health and wellness scenario. >> absolutely. final question, because you do have the off-price retailers here there's been a little back and forth whether they are overly affected by the closure of stores, maybe some wackiness with inventory this year you think they are still well positioned >> so i think the inventories are in a much better place today. i think they will even be very sizable ben fish rivers all of the disruptions rpts closures

and t that settle out of all of this there's burlington, tj maax and ross stores and i think the opportunity then becomes how much mark share can they take out of this meaning i don't think anything has changed with their value proposition, and i don't think anything has changed with their local convenient model, but i think what has change said lot less brick and mortar competition coming out of this and more market share from the multi-year perspective >> that's a good point i mean, an unfortunate one again would suggest that the rest of the landscape but investors will be reassured matt, thanks for joining us, congrats. >> thanks again. >> matt boss with jpmorgan coming up, is tesla losing momentum in california we'll talk about that, plus not a pretty picture for revlon. bmo says it's new time to play and the new player in athleisure that's all coming up in rapid fire on "exchange. who's supporting prop 15?

joe biden. biden says, "every kid deserves a quality education and every family deserves to live in a safe, healthy community. that's why i support prop. 15." vote yes. schools and communities first is responsible for the contents of this ad.

who's supkamala harris.5? harris says, "a corporate tax loophole has allowed billions to be drained from our public schools and local communities. no more. i'm proud to support prop 15." vote yes. schools and communities first is responsible for the content of this ad. welcome back let get you caught up on a few stories that thud be on your radar. it's time for rapid fire here do break down the headlines are dom chu, leslie picker and

michael santoli. let's start with tesla apparently seeing troubling times out in k.tesla vehicle registrations in the state dropped 13% in the third quarter from a year ago due to a steep drop in model three registration tesla is california's largest market investors see this as a bellwether shares down less than 1% dom, what do you make of it? >> so, there's got to be a point here when the upside momentum in tesla stock kind of takes a bit of a break and we know that there's been a lot of talk about whether or not tesla's overvalued at these levels and certainly given the run that we've seen over the course of the year that now comes down to whether or not we see that penetration for market in tesla permeating beyond states like california. now, i know anecdotally where i live if you see an electric vehicle out there it's more than likely a tes larks but can you say that besides other market besides the new york metro area and california that remains to be seen. in this earnings report we'll be

looking at that and whether or not we see any kind of sign that the momentum is slowing down for them and whether profitability becomes more and more of an issue for investors out there. tes larks already a big deal big at least from a market cap perspective so, yeah, those volumes, big, big deal. >> mike, do you add it all up and say, okay, they did the price cuts they have had a few of the eyebrow-raising headlines lately does that all point towards softening demand or no >> the signals they along with everyone else struggling you would think there would be pricing umbrella that there would be pricing so long and the industry is not giving many incentives but they operate as a separate mark. do i think that because tesla reported bigger volumes a couple weeks ago takes a little bit of a sting out of this california number but certainly accentuates how riasat ali khan and the rest

of the world will have to be the longer term growth story on track for the half a million units, talking about it for next year next year is supposed to be up 40% from there that could become a big question if in fact they are losing momentum now >> all right >> go ahead, leslie. >> they have been chasing some of their policies changing their seven-day return and pared back their used car policy and some are talking about cannibalization of model y versus s and in the backdrop you've got all these strict restrictions in california because of the pandemic that makes it more difficult to buy a car, even a used car, and then people just don't have the wallet share that they did a year ago. >> the stock is teflon though. unbelievable we'll see if anything changes with earnings. still, keeping an eye on all of these trends.

>> let's talk some revlon. this one is pretty fascinating things, unfortunately, are getting pretty reugly for the beauty company they are hoping investors trade in their bonds at a steep discount because otherwise they could be worthless revlon shares down 73% and market cap has dwindled to a paltry $300 million and need 95% of bond holders to participate in this exchange in order to stave off prints and that's just for now, leslie. how dire is it >> it's a pretty dire situation. 95% participation from the bondholders it is now small number they have tried this in the past and they haven't gotten that participation, so a lot of people are looking at this including the credit rating agencies and say if they aren't able to exchange the debt and in this case it's about a third of the value, then what's going to happen is there's going -- it's going to trigger an acceleration of a lot of the remaining debt on their balance sheet to be payable november 15th and the credit rating agencies say this could cause a liquidity crisis,

a debt krunchlt peopcrunch people are even talking about the need of the company to file bankruptcy if that needs to take place and that's why it's imperative for revlon get now have bondholders to trade in their bonds despite the big discount they sent a letter saying even though it's a big discounts your bonds could be worth nothing if you don't do this. >> how did we get here for revlon >> decades of being used for financial engineering and piling too much debt on it's not the business so much as it is the capital structure. if you look at something like estee laudering at all-time highs and either other brands, they are certainly victimized by some trends in terms of away from department stores and all the rest of it, but really it's just about the fact that it's been, you know, used as a vehicle, you know, round after round of extra leverage and that's where we are right now with more than $3 billion in debt on a $300 million equity

market cap, you know it comes town to a game theory thing at this point which is that the creditor has to say what do i think my probable recovery is perhaps in a bankruptcy situation and what's the chances it's going to have to go? it's obviously not a good set of options, but you have to choose among them. >> and listen, i take your point. look at estee lauder that's what could have been for this company instead, this is going to be a sad ending no matter exactly what plays out here. let's move along and talk about bmo making a big bet on the recovery the firm upgrade the dave aumf buster's to outperform and raised its price target to $26 that's 50% more upside they say the most encouraging sign is that sales in regions where dave and buster's have reopened are almost 100% recovered. that's where they have opened the longer and shares are now actually up four times from their 52-week low, more than 300% up 70% to date, dom, but you would still think that this

would be the last place that people would show up now with you as they have reopened they are starting to get the traffic back. >> i was surprised, and just to be honest, i -- you used term bellwether before to kind of -- to kind of talk about how tesla in california is that kind of a theme. this is an interesting one with regard to whether or not people actually feel better about the economy amidst the pandemic and feel safe enough to dine out dave & buster's it's like an adult game, play games, joy sticks and all, sit on motorized bikes, goes have some dinner and everything and you do so in an area where you're among other people as well if the this is truly a case and you're seeing a recovery in some of those markets this is a big deal because it could pore tend and be good for all at other restaurants and bars and everything out there i'm a little bit more kind of concerned about whether or not these kinds ever trends can last into the fall or into the winter given the flew concerns, burks i mean, that's a big deal if dave & busters can get back into business the way they have

pre-pandemic. >> i agree still down 50% year to date so we won't get ahead of ourselves but that's a dramatic recovery off the lows finally we know athleisure has been the big winner from 2020. kohl's today is announcing the launch of flex, its new private label athleisure brand and will be available next march for men and women but investors are already buying into the idea you saw the stock is up 8% on the news that kohl's made during investor day mike, it's amazing to me that a trend you and i have been talking about as over for like a decade >> exactly. >> here comes kohl's as a new entrance into the space and shares run 8%. >> no reason for you to be so generous about that. i've been the one that's been handicapping the end of athleisure or at least making a gambit in that direction for a few years now and obviously i underestimated the fact that people would have no trouble walking out in public looking as if they are going to go to the gym at all times now the private label move is probably smart for a popular

product line for any, you know, chain department store, but i would ask you are you closer to the beginning or the end of a trend when all of the discounters decide it's time to have their own brand >> leslie? >> yeah. i agree with that. i agree with that. i mean, when you hear march, i was hoping by march i might maybe get back in my jeans again or be buying some regular clothes. i don't know maybe i'm being too optimistic here, but it seems like the only new purchases i've made in the past seven months have been athleisure so by march, i don't know, i feel like my drawers are full of yoga pants and i don't know how many more yoga pants i can fit in there. >> 100% agree, dom i wish they were coming out with with a work formal line. kohl's, we're going back to work and back to school in march and we're all wearing pleated pants and blazers with what are they called, shoulder pads? i mean, give us some hope here. >> it all depends on what kind of athleisure you're talking

about, because it could be yoga pants or could be sweats and hoodies but also -- i just bought a lululemon abc pants, right, these kind of pants that they have that are great for traveling, that kind of look like suit pants just in and of themselves i love those pants i keep on buying them because i can go out they look like normal work pants and feel kind of like comfy sweats or loungy type wear so it all depends on whether or not you kind of get that trend moving that direction as opposed to say, hey, i'm going to wear sweats and hoodies all day that's a different kind of athleisure and one that may be kind of going a little bit more away, but people will want to be comfortable and buy those types of clothes that make them feel professional and comfortable at the same time. there's a happy medium to be had somewhere. >> when this line comes out i want pictures of what's in it, okay, and if there are professional pants you wings, and if it's all sweat shirts and sweatpants then we win. >> hopefully kohl's is paying attention. >> what do we win? >> hopefully kohl's is paying attention. >> as i wear my university

clothes stretchy pants right now. what will would a good prize be for the pandemic a face mask you? know we're all going to have a bonfire of the face masks next year hopefully already decided in our neighborhood, throw them all in and incinerate them, but anyway. >> i like that. >> that's how we get through times like these guys, thank you all. appreciate it. dom chu, leslie picker and mike santoli in our "rapid firech". market sessions at fresh session highs. down up 354 points and consumer discretionary in the lead and financials are up there as well as we await more details on a possible stimulus deal. >> netflix and other key factors to watch in today's earnings release. that's next. before money, people traded goods.

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netflix turning higher minutes ago.

shares are now up about half a percent. now the company is forecasting the addition of just 2.5 million subscribers, though analysts expect them to add 3.3 million joining me is young kim from piper sandler and sarah fisher is the media reporter at axios welcome to both. sarah, i'll start with you so a deceleration quarter for netflix? >> yeah. that's what it's looking like. we saw the stock go down way much in q2 because they forecasted a lot of slow growth and the reason being, kelly, people are no longer stuck at home lockdowns are started to be lifted also some increased competition. new streaming services like peacock have launched. consumers have options and are no longer stuck inside the tv. >> young, what are your thoughts on the quarter and the company's share price performances this year what's priced in >> you know, i think the covid-19 stay-at-home scenario is what's priced in at this

point. i think the major concern is what happens when these stay-at-home rules ease. i mean, we've run our number of surveys show far that show consumers are very adamant about staying with netflix, even after the stay-at-home rules ease so i'm pretty comfortable with where the numbers are right now and i'm looking forward to seeing what happens next. >> yeah, young kind of sticking with that theme. one of the big debates in the market is about whether to stick with pandemic winners or not because they have -- you could argue they pulled forward a lot of demand and, on the other hand, you could say this is the new normal for the way that people consume contempt. for netflix they are on top of that possible price hike do you want to see them raise prices, or do you think they would risk losing subs over that >> i exabout pect a price hike and that's whether they grandfather in their current subscribers as well. i do think it's a fair concern about whether a price hike would dissuade other people from joining the service, but what we're seeing right now, although

i think part of it is an acceleration of trends happening before covid people were already cutting the cord and switching from their traditional cable tv to streaming services so i don't see this as terribly unusual and a pull forward slowly but an acceleration as well. >> yeah. what's your price target, young, on the shares? >> i'm currently at 534 and that 60 times my 21 eps estimate of about 890. however, i -- i think it's important to note that the five-year historical multiple on the next 12 months is around 70 times and the ten-year is around 120 so i still think i'm still being pretty conservative. >> wow, it's wild but can trade that way for as long as it can by the way, the shares are at 53030 so right below your target sara, the larger question for netflix as swell how do they continue to fare amid so much competition? this is not five or ten years

ago. nothing unique about their offerings except for the literal unique original series and that sort of thing that they have so how are they going to naff gate this increasingly crowded landscape? >> well, it's really crowded in the united states and in canada, so where they are going to look to growth is overseas is in international markets, and they have international markets and they've been pretty clear about that's what their ambitions are. the other thing to think about with competition is that they don't just see other streaming services as competition. reed hastings has said for forte night, tiktok, they're not only going to have to optimize programming, they're going to have to continue to be a mobile success so people can watch on the road, on their ipads, et cetera >> and sleep is their biggest competitors as well, he said always look forward to hearing his commentary on the call thank you guys for now on

netflix today. still ahead, general motors is going electric. the details and its hotly anticipated vehicle next and join cnbc on november 10th for a summit with executives who are embracing change and transforming the future. we're back itwn o. ♪ ♪

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let's check out some of the movers this hours. shares from logitech international, demands for mice and keyboards are strong, up 6% today. albertsons revenue beat helped by a 243% surge in digital sales. and parsley energy is reportedly in talks to be acquired by rival pioneer according to people familiar with the matter who spoke to the wall street journal. the two sides are said to be discussing an all-stock deal that could be completed by the end of october it was said to watch parsley

energy and shaers res of gm are higher about 8%, the company doubling down with its electric vehicle plans today and a new hummer reveal tonight, resurrecting it as an electric truck, an sut i think they call it, a sport utility truck. >> some are going to call the hummer a modified pickup truck it will get a lot of attention when general motors shows it to us tonight the company announced it's making a substantial investment. this will be $2 billion. the biggestchunk will go to retool its tennessee plant, where they're going to build the cadillac lyric, an all-electric cadillac that will be coming out next year. this is what they showed us of the lyric when they unveiled it back in august it's one of 20 new ev models coming from gm by 2023

this is all we've seen, this teaser video for the new hummer electric, gmc hummer electric pickup truck they'll show us tonight. i hear a lot of people say general motors stock has done nothing. i'm comparing it with the s&p 500, which it has outperformed, as well as tesla i know tesla has had a heck of a year so it's not going to catch up to where tesla was. i think gm shares have had a really nice move, especially the last three months. after the hummer is unveiled tonight, tomorrow morning we're going to be talking with the president of general motors, mark royce he is one of the leaders that is spearheading the effort to convert general motors into not a completely electric portfolio of vehicles but -- larger presence in the world of electric vehicles >> but can that new hummer fit three car seats? >> we'll find out. >> is it on the analyst upgrade?

>> the stock moving higher to y today? >> yeah. >> it's moving higher for a number of reasons. a number of analysts have been saying more positive things about general motors in turns of the ev portfolio i think the move is a combination of the investment announcement they now will have three plants and in anticipation of the hummer unveil tonight. >> yeah. all right. phil are tha phil, thank you very much, sir that does it for "the exchange" today. stick around for "power lunch" and pat brown will join us to talk about their latest product. teth qckren john ford for that afr isui bak

welcome to "power lunch. i'm kelly evans. here's what's on tap stocks are rallying but off the highs of the session the dow is up nearly a 1% gain this hour. plus, the tech crackdown is here the department of justice filing