the stock has sold off by over $20 from the october high. that seems like a lot, and they still do a lot of great work with sovereign wealth and endowments, and i think this is one to buy here at 36 and change. >> got a name for me, quick? >> caterpillar tractor. >> big shock thanks, everybody. "the exchange" is now with jon fortt. >> welcome to "the exchange. stocks are in the red following a very wild week investors getting more anxious about growing covid-19 cases worldwide and the approaching election of the right now the dow is down just over 325 points let's call it. more than 1% the s&p down 1.5 and the nasdaq down a little over it.5 which takes us to late july levels on the dow, late september on the s&p and nasdaq for the week it's not a pretty picture. the major averages all down more than 4% with the dow leading the

declines, down 6.5%. they are all on pace for their worst week in seven months it's going to be the second straight month of losses for the dow, s&p and nasdaq. the dow having its worst month since march. let's get more on these markets now with bob pisani. >> bob hello, jon, the markets have got two problems, a macro problem and a little bit of a tech valuation problem. let me describe the macro problem to you very simple police there's an investment equation that's worked all year, and it's not going in the right direction. the investment equation is virus fears are increasing, plus no stimulus out there equals an earnings expectation and that's the simple equation why we've been down so much this week. the macro problems are very real that are out there right now on top of that, we've got some particular valuation problems with the tech area growth stocks have been notably on the weak side there you see the investment equation i was talking about,

but growth stocks also have a rallation problem. you see most of the big names are down today were the numbers that bad for them, apple, amazon and facebook, no, but a lack of guidance from apple was a big problem. that's a macro problem that the company is having, but the simple fact is most of these companies are really expensive right now so right now apple is trading at a forward multiple of about 30 times 2021 numbers. that's really high a few moments ago it was trading at 19 times earnings historically it will trade 19 ims too. it's really expensive right now, these stocks same thing with amazon and facebook meantime today other parts of the market aren't really down that much. value, for example, these are a lot of banks and energy stocks and consumer staple names like colgate, humana, halliburton and u.s. bank corps. put up the value chart, you can see they are all holding up. not guys like we saw on wednesday when everything was down 3%ch the market is distinguishing here between some

of those growth names and some of the more reasonably priced value parts of the economy guys, back to you. >> all right thank you, bob, and, yeah, just four days left until the presidential election, and the wall street predictions on who will win and what impact it could have, that would make your head spin, so dom chu went through all of this, through all the research notes, the strategist predictions to see if there are any common themes developing dom, what did you find >> reporter: all right the projections, the predictions, the odds, the handicapping, they run the gamut, but there are some similarities with regard to the vies on how certain parts of the market will be affected in certain key scenarios. first of all, everyone has got a prediction on the probabilities of certain outcomes happening, but for this one here we'll use an example for raymond james came out with a note saying the chance of a blue wave, a big win for the white house for democrats and in the senate with control staying in the house with the democrats stands at about 55%. that's kind of like their big

kind of call here about the blue wave if that were to happen, various analysts and strategists on wall street tend to kind of congregate around certain views and certain sectors. they feel as though communication services and media might be a relative dictum in in that kind of scenario. meanwhile banks, industrials, technology, materials and utilities may do better. ain to of analysts weighing in what happens if you have the status quo, president trump stays in the white house, republican senate and the house says the same. that's a 30% chance. and one other one to kind of keep an eye on, a 10% chance happening, says raymond james of a potential biden presidency and then a republican-controlled senate 10% chance, they say that means media com services is a relative outperformer and

retail underperformers and technology could do better as well as health care. now, again, a lot of people with different views out there. however, if you want to know more about this story and all the notes that kind of went into, it go to our friends at cnbc pro it's a premium subscriber service are. you can log on there and check it out you'll get a free trial, and those notes and everything else is right on there for you to kind of take a look at back over to you. >> you are saying they got to pay so it's good work. i'd be willing to. sounds like a lot of it comes down to regulation how much do you care about that, how much various industries would be affected by it? >> yeah, and this time in the weeks leading up to perhaps what we would call a normal election, we would be looking at many so of the tries that might benefit in a more kind of traditional philosophical presidency, right? do they tend to focus more on infrastructure for that reason do you look more towards those types of construction plays mayor they are more geared towards health care reform

do you look at certain outperformers or relative performers in health care? those play out a lot more in a regular election, but this one so contentious that a lot of folks are finding a very large amount of difficulty i would say trying to figure out whether or not there is any kind of a scenario where certain places really do outperform i guess you'll have to wait until we know who is going to win the election before they make any kind of calls there, guys. >> hope that's sooner rather than later, and looking forward to the days when perhaps we have less contentious elections, whatever that might mean dom, thank you. >> you got it. markets continue to lose momentum as we wrap up a red october. the dow is now down 5% for the month. the losses coming with the presidential election, again, just four days away. for more on what to expect as we head into november, i'm joined by jerry castellini of castle management and john augustine is with huntington private bank happy friday, guys jerry, you seem to be coming from the perspective that it

doesn't matter so much who wins for stocks here, even though we're talking about these percentages, even a blue wave isn't going to have a strong effect why do you say that? >> yeah, so two things first of all, we've been able to see in options prices and all sorts of areas over the last six to nine months how much professional investors have priced in at least the 50-50 odds and more now like a 60-40 that there's a new administration this year so people who run portfolios like we do and our organization, the way we break down risk, we've been evaluating this every day now since this winter. it's not new to us the chance of some big event is probably well priced the more interesting thing, and, dom went through this, used the example that there's a one-third probability that the president trump administration stays in office, one-third that biden comes in and -- and adopts a

completely radical program, and one-third that he just does the kinds of things that the market expects. well, under those conditions, there's really only a one out of three chance that something very negative could happen post next tuesday, and even that a lot of folks have prepared for. the just there's a lot of -- people don't see the effects of portfolio managers that are always trying to hedge different risks different ways, and a lot of that has happened right now i think what we're seeing this week is really just the sell on the news of the technology earnings which are phenomenal and the simple risk of the covid cycle coming back. >> well, what if we get, john, another 2016-style surprise despite everything that has been priced in? are there areas that you think, whether it's industries or specific stocks, that could see a move that traders should be aware of >> well, we started getting ready for this election, john, back in august where we took

diversionification efforts in august and then secretarily we also know that investors tend to overplay elections that's what we've been seeing internally now to your point in 2016, a lot of the opposites of what was expected happened. if you remember that night, futures started way down. >> oh, yeah. >> but then the stock market turned and went way up, so markets tend to do the opposite of what people think we started to get ready in august for this. the market actually, john, has more to us of a post-recession setup because if you think about this will month, small and mid-caps are up and higher yields are leading in the bond market so we understand the emotion. stick with the fundamentals, they are looking better. that's what's on our mind right now for our customers. >> john, i wonder if overplaying elections tends to be what happens? what about covid the is there any sense on whether if there is a new administration that means more lockdowns which might be bad for the economy or whether it means

actually getting this solved in the near time frame which in the medium term might be good? >> we don't know if a new administration or a different administration could help with covid. to us that's a vaccine story, and we are all watching europe right now and hope that works out okay in europe now a lockdown, we've gotten a lot of questions about what if there is a lockdown 2.0. well, what we would say in a lockdown 1.0, we actually -- the first thing on our mind was to rebalance. that worked. now we have better treatments and lower mortality rates. we'd probably be thinking of rebalancing again under a lockdown two scenario. >> jerry, i think a lot of the country didn't lock down 1.0 at all sitting here close to new york i know that we did, but give me your final take about the movement in big tech it seems like there's questions about the weakness of big valuation, but the actual results from them are pretty

good what does that mean for investors? >> well, it certainly means that there was at least in this environment today, with potential risk viewed of the economy and covid, that they were taking money -- they are taking money out of those names as we speak, but they aren't taking it out because there's a disappointment any of these business models, in fact, across the board, each of them, have given us the exact thing we as fundamental long-term investors care about which is that the running room and everything from cloud to different device and 5g applications over the next five years, that's just expanded from here. >> yeah. >> and as an investor this is an exciting time for us to know that we can walk back into some of these names, you know apple is down five points on its multiple right now, and it's -- for our money it's a really attractive entry point and we would love to buy more of it down at this level. >> down at this level even though it's up 60% for the year

so it's all relative. >> but look at cash flow that this thing is running at. >> a lot of cash to be sure and an iphone 12 out there as well jerry, john, have a great weekend, and we're going to continue talking about tech, the big driver behind today's selloff, apple, amazon, facebook, reported strong earnings last night, but investors found company-specific reasons to be disappointed can't keep alphabet down though. it delivered a monster quarter, and it was kind underestimated heading into this print last night, but let's look at the big picture. these four names seemed unstoppable this year, but look how far they have fallen from their 52-week highs. apple has tumbled into, well, what we would call a bear market if it were an individual stock i don't want to mike santoli to come over here and slap me is big tech's strength waning? let's bring in ross gerber, ceo and president of gerber technologies you wrote in twurnl that the numbers tell a big story about

whether or not big tech is impossible i think it's a big calculation if you look at fundamentals, they did pretty well. >> i agree, jon, they did pretty well you hit the nail on the head when you talk about this is a market where that's countries had strong expectations are really through the roof on a lot of these you mentioned apple a few minutes ago. still at a record high valuation ahead of the -- they weren't really confident enough to put a specific ref knee -- i'm sure it's going to be abig cycle bu what expectations are getting home you're seeing a comdown to realism. >> i wonder about apple not

giving guide as here it's weird they can see what demand is in calendar q4. they almost always can't make enough phones to meet demand surely they must have an who do you do with apple and how much. >> i think a lack of guide happens is -- with covid kind of flaring up gnld, is it at the name now or even goes to get worse wore in. >> this is about value as is apple has been trading at 32 times earnings now, and you look at apple, actually higher than that, and you look at the fact that they bought back so much stock to boost earnings while revenue has only grown a little

over the years, but actually now they are if i think a much better position than they were in than like a year or two ago because of the pandemic. >> yeah. >> and they are focused on services, so for us it's just a valuation thing. no change in our feelings for apple. i'm super bullish for apple over next year with the 5g cycle and serviceables and wearables doing so well. i think the manish sue if you're going to pay -- you can't buy back stock at 35 times earnings. >> true, true. well, dan, what do you do going back away from apple for a moment here to the internet and specifically social media stocks, what do you do we're going to talk a bit about this later, but steve liesman will bring us data talking about how people don't trust social media, but, boy, are they using it, right, because the revenues are through theroof. we're talking for a while about the tizzer boycott that was nothing the advertisers aren't boycotting it. if anything the users are taking a step back. is that really the fundamental

al issue we've said -- we've seen a blip on that. i think what we're seeing on mirabelia media where we've seen that with why. the politics where politics takes and, again:with all at advertising and e-commerce there's a lot of upside drivers of businesses trying to reach customers where they are at and that's great i think for almost anybody in on the advertising at the moment. >> ross. what do you do with facebook here know you own it. on the one side adobe is projecting a monster holiday season for e-commerce, twice the

growth that you -- that you normally get in a year, and those detailers have to to -- in order to get those users to show up to them do you die them or sell them or hold tight >> facebook's numbers were much more impressive than apple and their growth is amazing and their cash position and certainly instagram continues to dominate social media. our studies are showing kids are use social media more than ever of, using new platforms like tiktok and lot of platforms like youtube are doing very well. we saw that with google's numbers so facebook has nothing to fear other than tiktok really, and -- and the government you know, facebook is a stock that i really don't like actually we own it because we look at it

the like rig let's you have to sort put your more or less in your pocket if you're going to buy those stocks. if you don't care about those issues facebook will be in a prime position for a long time, and oculus is really starting to ref up and we're more positive on vr over the next couple of years as well. i don't lost company, but can't argue with its success. >> and tiktok, wasn't that supposed to be danned? whatever happened to that. >> that was facebook's goal. >> ross, dan, thank you. >> sure. >> coming up, our new all-american survey, just talking about it, shows almost every demographic is united in one thing. they don't trust social media. we've got the details, plus brands known for paper mate and sharpies up today and we'll talk to the ceo on the state of the consumer we're back after this.

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of time on social media but doesn't mean they trust the industry steve liesman joins me now with the results from the latest cnbc all-american economic survey steve? >> reporter: jon, yeah the trust of the american public in social media is, well, it rates at the very bottom of the list of companies that we asked about. take a look at that list, and you'll see sort of towards the top there, they like their online retailers they like the local restaurants. this is the percentage of the 800 americans we asked who said that they have a great deal or quite a bit of trust in the industry finance not doing too badly compared to how it did back in '08 and '09. national news media and social networking right at the bottom maybe we could have done them both better if we asked about lawyers, but, anyway, 13% of the public with a god deal of trust in them and looking at demographic, straight across everyone seems to dislike them the top line was about social

impact on policy 68% say mostly negative and 11 boston says mostly positive. and then when we look at that question no differences between gender an men and women. 77% say that it's negative only some difference there with older americans age 65 plus. they are more not sure than they are negative against it. john, i'm sorry to say i think you have two strikes against you. you're one of the national news media covering social media so -- >> yeah, that's true we finally got somebody else in that category with the news media that -- that is at the bottom of the barrel of trust. >> that's not cnbc, of course, we're trusted by overall, the other news media, by wonder here, i mean, the social media

companies revenue-wise did great. restaurants. it's kind of a mixed bag i wonder if this calls into question how much it matters, how much you like or trust it. >> i think you make a good point, and think julia also when we talked about this at 11:00 made an excellent point that the revenues coming income the advertisers see it as a good way to meet people to get their message out to people and people are using it especially facebook, obviously. more than twitter. where i think it may matter is it could open up the competition if someone could figure out how to do this in a way without negative biasses the second thing is i think it does open the door for political regulation, john i think if the public is with the politicians when it comes to creating more regulation in this industry, i think that helps the process along so i think of the two areas where it matters the most. >> do they trust social media less than congress that might be the question for next survey, steve

thank you. >> congress' numbers are low as well you're right about that, john. >> coming up, counting the votes. every state has different regulations for early voting, and with just four days left we're going to look at how things stand and how the final tally might play out. >> will the selloff bring some of these high-flying stocks back to earth, and if they do come back to earth is there a chance to explore we'll be right back. before money, people traded goods. tools, cattle, grain,

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welcome back to "the exchange." markets right now still in the red with major indices inching back towards the low the dow down more than 350 points right now the s&p down close to 2% the nasdaq now down close to 3%. let's check the sectors. all of them in the red right now with consumer discretionary and tech your biggest losers real estate energy also not doing so well, down more than 1% here are some of the movers this hour another ev stock making its public debut today fisker automotive up more than 8% in its first hours of trading following completion of its back deal this is the second eb stock to go public following lord's down motors on monday meanwhile shares of mgm lower following a miss on the top and bottom line. uncertainty over a las vegas recovery and the convention business

continued headwinds there and shares of columbia sportswear lower following an earnings and revenue mission. store traffic is well below prior years. analysts also pointing towards supply chain constraints due to covid. now let's get to sue herera for a cnbc news update sue. >> hello, john hello, everybody here's what's happening this hour as he left the white house for a campaign trip to michigan, president trump told reporters there will be what he calls a tremendous covid-19 economic stimulus package immediately after the election but senate majority leader mitch mcconnell does not appear to share that timeline. today he said in a radio interview he thinks new stimulus, is quote, something we need to do right at the beginning of the year, end quote. meanwhile, the nation's covid count is rising are at a record pace with more than half a million new cases in the past week almost a third of u.s. counties have hit new highs pressuring hospitals in many areas. and actress lori loughlin is

starting her two-month college admissions schedule after reporting ahead of schedule today to a federal prison in northern can you're up to date, john. i'll see you in an hour. back for you. >> sue, thank you. every state has different regulations for how and when votes are actually counted in the election scott cohn joins me now with how things look and what to expect come tuesday scott? >> jon, it's definitely going to be beyond tuesday. it could be days or more before we get a reliable result because those laws in the states vary so widely and so does the way that people are voting this year. for example, in battleground north carolina, sheila bum gardner considers herself an indvent and voted this year by mail for joe biden. >> i'm very positive about the whole situation. i think all of our votes will

count. >> here's the trick repart n.north carolina, according to our later nbc news/marist poll still out 76% of those voting by mail say they support joe biden, but of those who are going to vote in person on election day 67% plan to vote for president trump, so almost a mirror image. north carolina is one of the 21 states and the district of columbia that will accept mail-in ballots that arrive after election day as long as they are postmarked by november 3rd, though that is the subject of ongoing legal challenges in states like north carolina, pennsylvania and minnesota some states will be able to get a jump on counting those mail votes. notably arizona, iowa and texas, all among those that can start counting ballots, counting them actually before election day so we should see full results there pretty quickly, but here's where the logjams could come in. in seven states they can't even touch the absentee ballots, can't verify signatures, take them out of the envelope or even

count them until election day or the day after and that includes the crucial, crucial states of michigan, pennsylvania and wisconsin. bottom line, jon, we almost certainly will not know the result on election night. >> and certainly not in those states so let's focus in on those three that were pretty crucial michigan, pennsylvania, wisconsin. what are they saying about how long it might actually take to count those mail-in votes? >> and crucial this year as well wisconsin is still saying they think they can get it done in a day. michigan, they think they can get it done in a week and pennsylvania very much an open question because that state is so closely contest and so rich in electoral votes that's the one may keep us up for quite a while. >> yeah. i know i will be up covering it as will you. scott cohn, thank you. >> sure. coming up, this stock has rallied more than 1,000% from its low this year as it benefits from americans working from home we've got the name and we'll

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big tech earnings are in the books, and, season is more than halfway done, so let's take a look at some of the biggest takeaways so far and check in with bob pisani. bob? >> well, the important thing here is we started out great, and now we're in trouble in the fourth quarter that's the issue, but let me just show you how the third quarter was. john, they are just killing it the numbers are way above expectations 85% are beating, and the average beat is 20% above what the analysts are speaking. normally there will be 3% to 5%. this hasn't changed the whole quarter. it's remarkable how conservative the analysts have been and how big the beats have been, but here's the problem wall street doesn't care they have been yawning since the day earnings season started, and that october 13th, a few weeks ago. the s&p is down 8% since earnings season began. there is a problem there's two problems number one is the macro problem. there's no stimulus, plus a virus uptick and that means macro uncertainty.

we don't know what the earnings are going to lock like and the send, as you know, jon, lofty tech valuations. those two things are putting a lot of pressure. when you've got a company like apple and ups both saying, sorry, we can't help you on earnings guidance. we're not sure what's going on that's a problem now, remember, look at the fourth quarter number. this is the fourth quarter just like the third quarter the fourth quarter numbers are on the downside. the hope, is as we move through the quarter, they will get closer to positive this is exactly what happened in the third quarter. okay they are still down here, but what happens here. how can you move the numbers forward when you've got the be ales and the ups' of the world, some very big companies and other big industrial companies saying we're not sure what's going on because of the macro environment. i think you get my point here. this is why the stock market is having a problem it wasn't pricing in the idea that suddenly we'd have at least massive slowdowns in the economy, maybe not outright situations where we've got lockdowns, but lockdown light, whatever you want to call t.earnings were not set up for

that, and that's the problem that the market has been having all week guys, back to you. >> thanks, bob let's zero in kind of back to basics, the home office and a the kitchen cabinet. newell brands moving higher on its earnings beat. the company saw growth in almost all segments, but delayed reopenings of schools and offices hurt their learning division joining me now is the president and ceo of newell brands which owns some of the biggest consumer names including coleman, rubbermaid, sharpie, paper mate, elmer's glue, a lot of brands. robbie, thanks for being with me first of all, how has the, i don't know if you want to call it a lack of back-to-school season or a shift in how it's operated, how has that affected you? >> jon, pleasure to be back on cnbc, and, yeah, definitely writing is a very important for us, and this time the

back-to-school season has gotten elongated and so we didn't see the surge that you would normally would in july or august but, yeah, we've seen actually consumption started picking up in september and even through october, and there are pockets for that business that are doing well our pen business, we just launched a great innovation. in fact right here, my sharpies gel in pens, market share up 900% in the gel segment and up in pens as a whole our labeling business, a lot of small businesses are using, that and that's surging very well so while there has been some softness, but, look, the important thing is that the new portfolio, the diverse new portfolio helped us weather this and we actually delivered 7.2%

for sales growth, organic sales growth, and what's important, jon, is the 7.2%, first time since 2017 pretty incredible. >> that is pretty reincredible, and my big question for you has to do with the direct relationship with the consumer, because i can't think of any stronger brands in today's economy that don't have to my knowledge much of a direction relationship you've worked very well with partners over the years, but a lot of strong brands these days are trying to go direct. i can imagine subscriptions to -- to rubbermaid, to sunbeam, things like that is that something you've thought about, or are you sticking with your partners to maintain that relationship. >> so, jop, great question look, our whole thing is about being omni channel so clearly we enjoy a pan fastic partnership with our retail partners, our mass business and e-commerce

business up dramatically can i think i said on our earnings call our e-commerce business year to tate and in the third quarter is up about 40%, but what's more that our penetration of net sales reached 21%, jon, 21%, double that of 2018, so online becoming very important we're translating that more directly to your question. we do have pockets where we go direct -- where we have a direct to consumer business which is yankee candle. great business on yankee candle and, in fact, having that business helped us in the second quarter when all our retail stores were closed for yankee quarter, and that business made up half of the decline of the retail business. >> so do you keep it there do you keep it kind of isolated -- i don't want to say it isolated but focused on candle or in brands that are in the kitchen that are in the

pantry do you take more steps towards the direct relationship perhaps using your yankee candle playbook >> we're -- today we're direct-to-consumer also on market and our baby business also has as direct-to-consumer business so clearly this is one other channel for us but there's a direct to consumer in the sense that you have to make sure you get your supply chain right so it's an important business, but for us our mask retail partners, our online business through pure play as well is a the retail amazon.com, those are the principal drivers of our business sorry, jon, one quick thing. we're doing a lot of re-platforming of our websites and improving our technology because it gets to the point you were looking at what we want to

do is create platforms where we can have very strong one-to-one relationships through personalization with our brands because i think that's the future. >> so, tell me, i want to slip one more question in when it comes to digital advertising, even social media, are you leaning into that because of those relationships, because of thosish initiatives that you've got, or are you leaning away >> absolutely. we used to be a few years ago very much traditional tv advertising, et cetera we have dramatically shifted, in fact i would say a very significant part of our spending goes into e-commerce and into social media because we feel that is the future because if you're not digital today, you're dead. >> yeah. >> so to us that is -- we -- compared to most cpg companies, jon, our 21% is really on the

high side. we made a big bet on e-commerce but we want to take that further to omni channel. >> okay. >> because you've really got to be where the consumer shops, when they want to shop and be available and create amazing brand experiences. >> looking forward to having you back the ceo of newell brands, and certainly that trend that he was talking about when it comes to spending on social, reflecting some of the earnings that we've seen this week. coming up, could the reaction to this week's earnings reports, especially from apple and amazon, be a sign that there's a valuation rethink going on in the markets? one strategist says yes. he's going to join us next what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity

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you can rely on the people and the network of at&t... to help keep your business connected. welcome back stocks are on track for their worst week since march and we remember march big tech, once the darlings of the recovery real, all dropping on weak earnings results, include what i would call not

big but middle-sized tech, twitter down more than 20% so is this a sign investors are fed up with sky-high stock prices my next guest says maybe let's bring in peter boockvar, chief investment officer ant blakely group and cnbc contributor. peter, happy friday. is this really the end of this valuation matter thing or is it valuations matter a little >> i think valuations are beginning to matter. good afternoon, jon. i thought the earnings after the october 13th close that led to a 30% decline the following day was potentially a canary in the coal mine in terms of the markets paying attention to valuations, and that paying 45 times sales maybe is a little extreme, particularly when a company which had a good quarter but had sort of needs ker guidance, and i'm not questioning the fundamentals of any of these businesses, it's really a question of what do you want to pay for that business? because we have to keep in mind

that an earnings multiple or a price-to-sales multiple that goes from 20 to 30 is a 50% increase in the stock price without any change in the fundamentals. >> yeah. >> and vice versa to go to 30 to 20, the stock is down 33% without any change in the fundamentals. >> so how much do valuations matter because at beginning of the year, pre-pan democratic and all of that, apple was like at 60 and now even despite it's dropped, it's still over 100 now, so if valuations matter, then we were way off at the beginning of the year then. >> well, yes, relative to where we are today, but look at apple. apple's history was a mid-teens multipast i mean, obviously that was because viewed as a hardware stock and now it's more of a hardware/software services stock, but for a company whose earnings were up 50% year over year and the pe multiple doubled, well, that just shows you that a lot of the gains in these tech stocks are more so multiple expansion rather than

underlying earnings or revenue growth ref now growth still has some of the other names but multiples matter a lot. >> quickly, if you can, any stocks that see upside from here if valuations matter in a way that they didn't before? >> well, on the flip side, valuations are actually beginning to matter for value stocks because they have begun to underperform and maybe investors are beginning to pay attention to cheap stocks and putting a bid to them and -- and paying more attention to being more discriminating when it comes to the very high multiple stocks and not being as tolerant for those type of names. >> yeah, let's keep an eye out to see if that continues peter, thank you. >> thanks, john. >> all right coming up, redecorating returns as more people work from home. they are deciding it might be time to spruce things up a little bit the ceo of at-home group is going to join us to talk about the company's blowout sales and the stock's massive rally. it's up more than 1,000% since its lows of the year, and a quick check on the markets we're trending lower again

down about 1.5% on the dow the nasdaq o bffy about 3, the s&p down 2 be right back. it's a thirteen-hour flight, that's not a weekend trip.

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welcome back one bright spot in retail this year has been home decor it's true to its name. home group has rallied more than a thousand percent since its april low. the stock is down 26% in the past two days despite record growth in same-store sales is it a simple case of profit taking, the beginning of the end of the stay-at-home boom i imagine stimulus might have something to do with it. when people have money and no place to go, i imagine they want to make things look as nice as possible and it doesn't look like we're getting stimulus any time soon. >> we continue to deliver great results regardless of the stillestill le -- stimulus package we're seeing great momentum in the business whether there's a

stimulus check or not. >> most people only have one house. maybe there's only so much can you do in it if people are focusing now on making their home space nicer and they're coming to you for that, are there ways you can extend that relationship or extend your offerings or services so that that commercial relationship continues >> sure. the sector is, there is a nesting trend going on data says 7 to 10, 15% and we're up 47% so customers are careful with their money, we're in a recession right now. we're an every day low priced player, we have the lowest prices out there, lower than our competitors' sales prices. we're a one-stop shop where people can come and find everything they need in a socially distanced supportive store, and now that we offer

ecommercia e-commer e-commerce, people can buy it on, curbside pick up or next day home delivery. that's how they're able to outsize perform a market, which is actually performing well, too. >> you can be hard to socially distance on black fridays and the days after how is your play book hope for the crucial q4 >> we see the customer shopping earlier. for halloween, for example, halloween and fall sales were early for us september is the best month we've had. same for christmas, october, november and early december will be stronger for us and black friday and thereafter. customers feel better when there's less people in the store and we can do that better. >> we had the ceo talking about omni channel, a very important buzz word in retail. what are you doing in that area,

in that arena? how much are you interacting with consumers bringing theirs into stores in. >> we will continue to evolve our offering, improve our user experience, we'll have ship from store next year. so we'll continue to offer more services that way. we see customers that not only free shop but feel more comfortable buying online. we believe the combination of bricks is the most profitable, most sustainable model if it doesn't quite work out, they can return it to the local stories iie storie easier >> meanwhile, we got a news alert on the cruise lines. let's get to seema mody. >> high, john. breaking news here the cdc saying companies can

restart once they prove their covid-19 protocols some of the larger cruise lines like norwegian and caribbean outline a number of protocols, having a medical staff on their cruiseline, fewer passengers a critical time this announ announcement is coming the cruiseli lines have been halted for several months. >> very important update from the travel stocks. that will do it for "the exchange." "power lunch" is next.

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welcome to "power lunch. stocks are selling off this afternoon once again today we are watching some big numbers this afternoon first, 2,000, roughly how much points the dow is down thi