>> the meals more so than the stock, yes. >> i hear you. jason? >> d.r. horton mfor me, and they had a strong quarter with the pre-tax up, and stay long here. >> stephanie, i need a quick name. >> carrier global, by the dip. >> okay. good to see everybody. "the exchange" is now. >> thank you, scott. hello, everybody, i'm brian sullivan and we will call it the wall of winning. stocks, oil, commodities, cryptos, metals, and all rocking in the free world, and can this commodity boom continue to blast off or will it turn to be a big bust. and saving youth sports and maybe a coach's sanity we will speak to the sports great russell wilson about his

venture. and make sure that all of you kids are greats. and also, we will talk about getting vaccinated. and also, how madison, wisconsin and not austin is maybe the new silicon valley. lots of work to do, but we will begin with the new markets and the things are looking up in 2021. no, that is not an opinion. because the price for nearly every single asset class is up in 2021. of course, most of you follow stocks, so here is how the year is shaking out. dow up 2%, and the other indexes are up 9%, but the real star is the small caps, the russell 2000 is up 16% this year, and up nearly another one percent today, but it is not just the stocks making a lot of investors a lot of money this year. look at our wall of winning. this is just this year. ethereum is more than doubling.

and bitcoin is up 60%. everybody loves crude, and oil up nearly 20%, and hot rolled steel as opposed to cold steel is up 20%, and corn sup 15%, and it is popping and platinum is u 11%, and those numbers are just this year, and basically six weeks of trading. everything is up. so the question is, where do we go from here we have a lot of year left. joining us is john augustine, the chief investment banker at huntington bank, and this is a continuation of what we saw last year, and we got good news on the vaccines and great cases in the hospitalizations coming down, and the stimulus is coming, but did you expect the year with all of that to really start off like this? >> we did, brian. and hello the you. it is good to see you, even virtually. we did. and we started to make the moves

into the small caps and emerging markets and in general last august and again in november. we did see it coming, because we had faith in the vaccines. to us, this all changed on november 9th, and continuing the stimulus is continuing. there are some laggard areas that we can still go into that our investment strategy team is looking at, but brian, yeah, we did kind of see it coming. >> well, good for you and your clients, but i want to buy low and sell high or buy high and sell higher as joe terranova may say and wrote about, and give us the preview of where the investment team is seeing is perhaps some underpriced assets? >> well, kind of three areas. dw you talked about all of the areas up in the stock market, but there are sectors, and always going to be stocks and sectors providing opportunities.

and staples sector and utilities and industrials sector. the team is looking for opportunities there. and so that is three sectors somewhat lagging, and we are looking in each one of those for ideas. the second area is the area that is arguably had the most virus management issues now which is europe. that index there is lagging noticeably, and maybe it is going to be able to make up ground in the second half of the year, and we don't know yet, but it is virus management there. and the third area to us is bitcoin has a giant vacuum cleaner out now over gold. so we are actually looking at gold. we use the gold and silver in combination for defense, but now that the relationship of the two is getting as such, gold may be an opportunity as this money growth potential and money inflation is coming at us. so three areas, brian, that we are looking at middle of the year or the second half of the year.

>> okay. good stuff there as everything is booming, and now, bringing in allan boomer on the phone comin in from momentum advisors. and what are you looking at the wall of winning? >> well, yes, it is a lit bit of euphoria, but where i am looking is the stocks that missed the party. i am looking for the companies that did not rally much last year that have not rallied much this year, but where i think that there is a lot of value like when i am looking to buy the earnings, and the earnings growth, i don't want to overpay. i want to buy the companies that are overlooked by the market. so one area that i am looking is that pharmaceutical companies

not involved in the covid drugs like bristol-myers-squibb, and that is a company that is involved in a lot of important drugs, but they are not as sexy today. they are involved in prostate cancer drugs and drugs around blood clots and arthritis and drugs that are not getting attention today, but it is a drug that is trading at 13 or 14 times earnings and they pay out a quarter of the earnings, and they have a 3% dividend earnings yield, so i love bristol-myers. >> and you have regions financial, and by the way, a competitor to john's competitor huntington bank, and are you encouraged by the yield curve or the rise in tenures or the rise in the economy or d, all of the above, allan >> it is d, all of the above. thinking about the banks, they were beaten down in covid, and especially the regional bank. and the view that a lot of the

customers and especially the commercial customers were impaired because of the leases, and because of, you know, business being slow, and you think about the regional banks, for one, they have already made adjustments in the form of the way they estimate the losses, and the losses are going to be a lot, and not as bad as what they have accounted for, and so a lot of the regional banks are trading at a discount to the book value or right at the book value, and historically trading at a premium, and i love that they have a 4% dividend yield and i love that the stock has not done that well, and really in the fourth quarter, it started to rally, but last year, it was a dud for the bank, and so i like regions. >> allan boomer and john augustine, we appreciate your view on the wall of winning. appreciate it. now, for a different take on the short-term take anyway,

analysts say they expect a correction of 5 to 10% for the first quarter, but any correction would be a buying opportunity for investors and for more on that call go to cnbc.com/pro. all right. outside of the business world, most of the nation's eyes and focus will be on washington, d.c., today for the second impeachment process of donald trump began a few moments ago and it began with a debate and a vote on the overall constitutionality of the trial, and for more of what to expect, we bring in eamon javers. >> yes, a live look at the united states senate where history being made this is the first time where we have ever seen a senate impeachment trial for former president of the united states, and they got under way a few minutes ago, and this is what we know right now as to what to expect. the aides to the house impeachment manager said they

have secret new evidence that nobody has seen before that they prepared to present in the course of the trial, and no indication of what that evidence might be, and a lot of speculation in washington that a lot of people are anxious to see what that might be and whether it can sway some votes here of what is a largely unswayable vote, and that is twhi former president donald trump has been telling the aides and allies that he expects an acquittal as do everybody else in washington, d.c., and joe biden and others say they are not spending a lt of time focusing on the impeachment trial, and they are focused on the rescue trial, and the economy and covid. so what will we see for the rest of the day it is debate on constitution a a constitutionality. and the arguments will go for

two hours on each side, and the trial is going to be dismissed. but ultimately, this trial is going to be expected to continue largely because we have seen some republican senators vote on this side of the constitutionality before, and they will get over that threshold, but the betting is not over the 67 threshold needed to convict the former president, and the question is if he is barred from future office if convicted. and so those are two more difficult threshold for the democratic house impeachment managers to make, but they are bringing the case now and proceeding through the afternoon and the rest of the week, brian. >> eamon, if the vote does not pass and goes away, the vote does pass, you will get a simple majority to go on, and how long could this stretch on theoretically? >> we expect this to go through the weekend and much quicker than last year when the former president was impeached for the

first time. this time, both sides have a reason to rush. the republicans want to get it behind them, and the democrats want to move on with the biden agenda as quickly as possible. so this is a speedier proceeding. they were expected to take saturday off, but now it does not look like it is going to happen, so they are going to be working right through the weekend and wrapped up by earlier next week, brian. >> all right. eamon javers, thank you very much. all right. coming up on the exchange, youth sports is anything but child's play, and it could become a $77 billion business in the next decade if not sooner, and all of you weekend coaches, listen up. after the break, we are going to speak with the nfl great russell wilson and ben sherwood about their new app launch called mojo. and plus, austin has a new atherton, and madison is the new mountain view? why the money is fleeing the

golden state. and are malls being dead is greatly exaggerated? that is coming up and more.

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all kids permanently drop out of youth sports by the time they are 13 years old. sometimes because their experience is only as good or as bad as the coaching they get. that is why a new app called mojo aims to provide better coaching for kids aged 4 to 13 and why not because the global youth market is expected to grow to more than 77 billion in the next five years. here now is nfl great russell wilson, the pride of the collegiate cougars and go richmond and the pride of the award of the walter payton man of the year award and the top disney exec ben sherwood, and thank you both for joining us on cnbc. russell, talk to us about mojo, and right now, right now, it is primarily focused on soccer and i know that you are a pretty dog gone good baseball player, and how big can mojo get, and how big can it get

>> i am super fired up, to be on here with you guys to talk about mojo. mojo has a chance to bring the mojo globally, and we are excited because the reality is that what the parents do love is to be the parent of three awesome kids and who love the sports and active and everything else, we know as parents, you have to get the kids outside and involved. over the experience with covid and everything else, the reality is to be on the phones to give them technology, but for us parents to know how to teach the game. so we are starting off with soccer, and of course, we will have some american football along the way here, and other sports, and we are fired up. i am excited to partner up with my partner, and ben sherwood, who has, you know, so much knowledge of technology and everything else and more, and i'm really excited about what we can do globally to bring some global sports stars here with mojo. >> yeah, ben, i think that this is a surprising pivot for many for you, and this is one of the top tv executives in the united states, and abc and harvard and

all of this stuff, and then the pictures of you and your son with all of the angels' gear on, and long time fan, and you and i are the only angels' fan, and this opportunity is so big that you would stay in the regular media world? >> well, first of all, i'm a dodgers' fan, and little league gets you to do anything, and the only thing that would get me in an angels' uniform is because my son was an angel, and point of clarification, and nothing has made me happier than coaching my boys will and charlie in four different sports. so when i left the walt disney company, and what do you do next the answer is that youth sports is broken and problems. and anybody who has tried to coach knows it is hard and intimidating aggravating and the resources out there are kind of frustrating. and so, we put together an amazing team with russell and with great technologist, and my partner and partner reid

schaffner and set out to try to fix what is broken in youth sports with soccer first, and then scale to all sports, basketball and football and flag football and russ is pushing us to india to cricket, and so we have big plans, and you are right, the market is huge. there are 40 to 50 million kids in the u.s. who play organized sports and another 500 million around the world, and as you mentioned around the outset, that global market is going to reach $77 billion by the year 2026, and so we are going after the parents who coach, and then parents who are on the team, and we think that there is a big opportunity here. >> yeah, you get the free product, and the premium product, and ben, one more quickly before we go back to russell, what is the different on the paid product, and the $20 a year, and versus the free product? >> the free product available on the app store right now is for a

season of soccer, one team, one practice. when you upgrade to the $19.99 verse, mojo plus, you have unlimited number of practices a week, and coach unlimited number of teams and unlock additional features and premium content, and a bunch of the additional tools so that premium version, you will get more, and this is the basic version, everybody can play, and you go right in there and download the app and you can start coaching a season of soccer right away, and one team, one practice a week. >> you know, russell, i want to pift to football obviously, the current sport, and i'm sure that you watched or maybe you didn't, did you watch the super bowl >> well, yeah, i think that every, everybody watched the super bowl, and every young kid. my kids were watching and i was at the super bowl and fortunate and blessed to win man of the year this year, and what a blessing. walter payton and i know that my dad loved him but i think back

to watching the super bowls and kids all over the world watching it. but yeah, i was able to watch it. it was a game that tom obviously -- >> because of the walter payton man of the year, you were in the box, and that is -- okay, with the mask and they clipped to it, and hard to know, but congrats and awesome award and humanitarian award and one of the nfl's biggest honors, and this year, you have seen the numbers and you were there, and i did watch and ben probably watched, but the overall tv ratings seemed to be down big, and the lowest in more than 15 years, and do you believe that as an nfl player or do you think that, and this is a good question for ben as well, with the streaming and everything else that has changed in the media that the interest in the nfl is still just as high, but the metrics may not reflect it i think that the interest in the national football league is growing like crazy and never before and i'm also the chairman of nfl flag, and it is growing

like crazy and wildfire in a positive way. it is an amazing thing to be a part of nfl flag. when you are thinking of the youth kids and thinking the of everybody who is participating and who wants to watch, and nothing better than the young kids wearing the nfl team low goes all over the world, and i'm fired up to be part of nfl flag and thinking about the game growing and i remember coming into the game 9 1/2 years ago, it was a lot different and not all of the aws stuff going on and paper sheets, and now everything is on surface, and the technology is so different and that is why it is so great to be on mojo and partnering up with the great brands and athletes around the world, but also great coaches. and that is why mojo is a intriguing thing with the youth, and nfl flag has a chance with the mojo and so much there around the world in technology now that is everything. so that what our team with mojo has done a great job with, and

as an nfl thing that is what i am excited about with the game growing in every aspect. >> if i can add there -- >> ben, jump in there, do you think that the ratings are in there for super bowl >> i am past commenting on the rate, but russell is totally right, if you want the people to watch the nfl in the years ahead, and you want people to watch baseball and basketball, the most important thing and the commissioners know is to make sure that the people play the sports. because if you play the sports as a kid, you will watch them as a adult. so the direct line between them. so you want to get out there with the moms and dads and it is more enjoyable to coach, and more kids have fun to play, and bring the magic back, and develop the lifelong fans and the lifelong habits that come from plague sports and watching and watching on tv and going to games and buying the tickets and

the buying the merchandise so we are part of the important ecosystem that starts really at the age of 4. that lifelong fan starts at 4, and we track them from mojo at 4 to 14 and hand them off to the bigger brands and the bigger businesses that care about you from 4 to 34, but if you are starting early, you will build the fans for life, and that is what we trying to do. the fans of sport will benefit, and it is an amazing teacher. >> russell, maybe build the family for life. and before i go, i will have a chance to give you a shout out to anybody in your past, and what was the best coaching experience that you had, and moment that stuck out to you and maybe when you were a kid playing the little league or the pop warner football in virginia and a coach out there that made a difference >> you know, i have had amazing coaches in my lifetime, and this is why i am so excited about mojo and the process. when i reflect back on my youth,

i go to three people who affected me. two in the family and one outside of my family. but when i was young, my dad and my brother, and i distinctly my dad hitting me ground balls in the hole, and throwing the it back and visualizing myself to be derek jeter and throwing it over and over, and throwing post routes to my brother deep route from the right to the left to the goalpost for touchdowns and practicing and repping and repping, and my dad used to wake us up at 5:30 in the morning to hit grounders and the work ethic that we had. so my dad and my brother were instrumental in my success and what they were able to teach me. they played the game, and they gave me knowledge. the other guy is a person who is no longer living, but boyd sandval and he was a great coach. and the last person to shout out is coach mcfall who is my head coach in high school. he loved the game, but he loved

the players, and he let us play free and go for it it is one of the best things that i learned. those four people, i have to shoutout. they got the mojo. >> and brian >> there you go. >> yep. >> i just want to say one thing. >> go ahead. >> you go ahead, ben, wrap it up. >> yeah, just we think that there is a great coach inside of everybody, and we think that every mom and dad who wants to be out there on the field should have the tools and the trust and the resources to get out there to find a coach inside of them and have more fun with their kids and maybe one day they will have a russell wilson and man of the year, but there is a great coach inside of everybody. >> they certainly will, and well said, ben. and great shoutout to your coaches, and collegiate cougars and i still don't understand

cricket, and i will try to check it out on the mojo app. thank you, guys, and have a great day. >> thank you. and on deck, we just talked about it, and the headline said the lowest rated super bowl in years, and is that the whole story? that may not be the whole story. and the race for the vaccine, and the latest numbers where we stand right now, and don't forget to download the cnbc app if you not already. and look at the dow up 18 points. check it out. testing them and fermenting. fermenting? yeah like kombucha or yogurt. and we formulate everything so your body can really truly absorb the natural goodness. that's what we do, so you can do you. new chapter wellness, well done.

hi, this is margaret your dell technologies advisor to listen, is to hear more than what's being said... and offer the answers that make someone feel truly heard. i understand, let's get started call a dell technologies advisor today.

all right. welcome back to "the exchange. it is time for the daily vaccination update and where we really stand for the race for the shots and the numbers are pretty good. 42.5 million doses have been administered with 32.3 million americans getting at least one dose which is even with one shot remember it does reduce risks. doing the numbers, and that means that 12.5% of american adults over the age of 18 have had at least one shot. and though there has been a lot of stories out there about the supplies and the shortages, that is starting to ease. pfizer and moderna are ramping up the production, and the white house about an hour ago says that they should deliver about 5% more vaccines to the states next week as this week, and this week was raised from last week. there is the real vaccine

numbers. now, to wilford frost with the cnbc news update. >> at this hour, police say that multiple people have been shot at a health care clinic at buffalo, minnesota. one suspect taken into custody. canadian prime minister justin trudeau says that the government will not charge income taxes on the covid support programs. and president biden is going to wisconsin for the first trip beyond his home state of delaware. and the most powerful teachers union is trying to get people back into the classroom that is safe for everyone. tune into shepard smith to hear randy guyton, the head of the american federation of teachers to explain how it should be done. that the cnbc news update for this hour, and back to you. >> all right. wilf, see you on "closing bell." thank you. we have much more coming up on "the exchange." and boeing is warning the white

house over covid testing, and the malls may be bouncing back faster than expected. and did viewers of the serup bowl get bored of brady and doordash that is up next. this is during hurricane harvey. the water was like a river. - when you talk about nasdaq, people don't think about insurance or catastrophe risk but that's a product they offer. we have 12 companies that build these models. for example, we have fathom. they are experts in building flood catastrophe models and we get it through our nasdaq platform. so insurers would be able to provide the right guidance to janice and people like her project forwards the risk and actually use that to advise the policy holder where they buy their house or where they buy their next commercial property. - now we have this predictive flood modeling

that we can go to and find out if it's gonna flood there or not. and if it's not, then guess what? we get to sleep easier. we get to go on a vacation. we get to grow.

boeing's warning to the white house, and simons says profits, and doordash on the salad-making robots and it is all here on the rapid fire and all here on the takes, is julia boorstin, and bob pisani and courtney. and now, executives at boeing saying that requiring negative tests on the domestic flights could be an economic disaster not just on domestic flights, but a letter that was obtained by reuters, and to demand negative covid tests for international tests and doing it for domestic tests could have a ripple effect across the entire economy, and is this boeing whining or some existential

financial risk here, bob >> well, maybe some financial risk, but they have a point. they are saying, why are you picking on us? what about the restaurants where everybody gathers or the hotels where everybody gathers? they have a point if this new strain is out there in a big way, there could be real issues with the transmissions, and it is not the airlines, but it is where you gather that matters. so, brian, if we are getting the good rapid tests, maybe it is a less of an issue, and show up to the pharmacy and have the test, and you go to airport and have your test, and that is going to mitigating the problem, but they have a fairness question here. >> yeah, maybe, and by the way, if you think that the debate over the vaccines is hot, wait until the debate of cheap at-home orapid tests are effective. and i went out to get the test yesterday and get the results tomorrow, and i know that i am

flying thursday, and so i did it to make sure that everybody around will be safe, and would it make you feel better if everybody had to test before getting on >> yes, brian. i have not gotten on an airplane since this pandemic began, and the testing would be reassuring, but this whole other thing is the vaccine. what if you don't get a test, but you show that you have had the vaccine and another thing that people would be showing on the cell phone with the boarding pass proof of vaccination. that is a whole other thing to consider here in addition to just testing. >> yeah, and it is actually, julia, you may be interested to know that clear may be experimenting with, you know, the security system with the biometrics with putting the vaccination records in that, so that they would know automatically if you have been vaccinated, and i'm flying thursday and i will let you know. topic two, and simon says profits. the nation's largest mall operator predicting higher

earnings for 2021 after seeing the improved rent collections and the signs of recovery in the retail. si simon property group received second and third quarter net rents as o90%, but don't forget it wrote off $80 million after tenants struggled, so simon has the greatest collection of the high-end malls and at least most of them the united states, and tenants rich and probably doing okay, but is this the simon thing or the death of the mall overall has been greatly exaggerated? >> so, i think that you are making a good point overall, talking about the simon property malls, because they have the strongest portfolio of malls of all of the major mall chains one thing. yeah, they are seeing improving rents. are things perfect no. occupancy is a little bit over

91%, and that is not bad, but it is certainly not as good as it once was, and simon is doing some interesting things. they have bought 80% of talbot, and they have bought some authentic brand groups and bought aeropostale first, and then ended up buying jcpenney, because it was an anchor, and they did not want the stores empty, so it is going to be interesting how it works out for them. >> yeah. >> i don't know if the death of the mall is overexaggerated, but look, we will need some considerably fewer malls than we need now, but looking at the operators that simon is probably best positioned, and anecdotally, my brother said that he went to a mall in ohio and not a simon mall, but brookfield mall and he said it was more crowded last weekend than he has ever seen a mall even at christmas. >> yeah. wow. >> that is nice they got 90% --

>> and bob pisani, have you been to the king of prussia mall lately to the sofa love sac store there? >> no, people are stir crazy and they are going out. but nice to have 90% of the rent collected and the bankruptcies and the rent they had to write-off against the uncollected rent, and here is the issue. and can the real estate portfolio recover to the prior levels and the declining rates and we are going to hang out at the malls all of the sudden, because that is a tall order. the stock in the last five year, they hit a high in 2016, and hit 230 and going down since then, and it is about $100, and the reason is that the businesses are declining and terrible they have really difficult time with the rent cuts and store closures across -- look, i don't think that people are going to go roaring back to the malls necessarily, and they online business is doing very well, and i think that it is hopeful. i hope they do well, but look at

the trend, folks. >> well, there might be that biometric vaccine check going into the restaurants and the malls, and not saying that i heard anything. but just saying before this is all said and done. topic three, the super bowl shuffle, and you remember that well, how about the super bowl slump, and cbs announcing that this year's championship game attracted 96 million viewers and be clear, that is a gigantic number overall, but for the super bowl, it is the lowest number since 2007. it is perhaps a silver lining in all of this. this was of course the most streamed game ever, and averaging 5.7 million viewers per minute. it was a 69% jump from the high set last year, and julia, more and more people are going to be streaming. do we trust these numbers and why so hard to figure out in this day and age why so many people are watching a sporting event? >> well, one thing for sure, more people streamed it than

ever before and this is a result of a number of facers to, cord cutting and the fact that cbs made this game available with the nfl made it available on more platforms than ever before, but in terms of why overall ratings were down, is because they were down, cbs pointed to the fact that there was that 22-point margin of victory which was actually the second largest margin of victory for a super bowl in the last 18 year, and they were saying that it is because people wanted to tune out once they figured out who was going to win, and it was not that exciting of a game that is part of the excuse. >> yeah. >> wasn't this the second time in three years >> bob, it was not a good football game, and tampa bay has a lot of issues with the coach's son and emotional things going on there. >> and second time that it did not hit 100 million viewer there, and not out of the blue. the world is more diverse, and i

did not watch the game, because i was on tiktok watching the taco videos, and they have amazing recipes there, on tiktok, and you know that, brian? >> is that a real story, bob pisani. >> julia, you are laughing. and she knows about the tiktok recipes. and she is on the cutting edge of everything. >> i am laughing because bob pisani is watching recipes. >> and the videos. >> i will send you the link, brian. >> and this woman is amazing. >> i am yelled at by the producers. okay. fine. here we go. picante pisani, and we will get you a tiktok name. and chime in on this one, the salad making vending machines, and no, so it is not a ray bradbury novel, but it is the real doordash, and it is called chow botics specializing in robotic food prep, and a salad

robotic and her name is what else other than sally. and technology to help the restaurants to expand the menus without, you guessed it, hiring actual humans and allowing them to have freestanding location like bus terminals, and it may not happen, but doordash shares are spiking today on the news, and courtney reagan, and bad news for humans, but good news for robots unless the salad makers are going to make the robots and service them, and let me ask you this, as a marathoner, would you eat a salad that is coming out of the airport vending machine that is of questionable service date >> you know, not my favorite things are prepackaged salads are not the best, and they don't taste the freshest, so i would want to know more of the process, and the salads and the carrots and the cucumbers have been sitting in the silos that we showed. i hope this is not going to make

doordash more experience. we had an experience in ohio ordering for the family and all of the sudden looking at the total we thought that is a lot of money, and like 40% of the total was in fees for doordash and we went ahead and placed the order over the phone, and picked it up. maybe you could call us cheap, but like to say parsimonious, but i would say shocked at the fees. if they are buying more business, i don't want the fees to be adding to the orders. >> novel concept, get in the car and go to the store and pick it up yourself. julia, we have to go, and bob and julia and i go for half-off sushi and 50% off and nothing better. i can't wait for bob's sushi making videos to pop up. julia, and bob and courtney reagan who definitely won that round. guys, i appreciate it. i don't know what to say, and that has never happened to me

before. coming up on "the exchange" as we roll on from hero pay, and vaccinations as grocery chains are making sure that the workers bpasafe, but why do they have toe id to get vaccinated stick around.

all right. welcome back to the exchange. grocery store workers have been at the front line of the pandemic, and not all have been afforded the protection or recognition, and now we look at what is being proposed and how companies are responding. sarah? >> brian, in the height of the pandemic, stores like kroger and albertson's were giving the employees hazard pay, but now that the programs have ended a number of west coast cities are considering hero pay to make it law that they pay their

employees more pay. and long beach, california s the first to do, and mandating $4 per hour extra, and the result is that kroger, decided to close two of its stores. kroger telling me that those stores were financially already underwater and adding a nearly 30% increase in costs coming to labor pay only made them untenable from a profitability perspective. obviously, the union that represents the grocery workers called out kroger going after them hard after it, and saying that they were trying to scare other municipalities and called it a ruthless attempt to make a chilling effect to discourage them from doing what is right. and we talked to saveway who said they are keeping the store open for now, but looking at changing the operating hours and staffing where the ordinances are being enforced and translation, more job cuts in the industry could be coming this is not the only city that

is doing this. and seattle and l.a. are moving forward with similar mandate, and in seattle, no specified end date making it impossible for those in the grocery business to be able to plan for what comes next. bottom line, the grocery stores are a notorious low-profit margin business and while they did reap big money in the pandemic, billion dollar profits, labor is still a huge expense for this industry, and just like the cbo warned this week that a federal minimum wage hike to $15 would boost americans out of poverty, it would result in more than a million job losses and these municipalities trying to reward the front line workers may be threatening their jobs. >> so we have to recognize these peoples as we were scared to run into the stores, they were there for hours on end to working to make sure that we had the supplies and a huge shoutout to every single one of them, because i would not have been brave enough to do it. sara, thank you, and important

story on the grocery stores and look forward to seeing more on "closing bell. thank you very much. >> thank you. and coming up, why madison is the new mountain view at least when it comes to the billions in venture capital.

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welcome back 2020 was a record year start-up technology firms in california's bay area. making an interesting prediction for this year. silicon valley, center of that universe they see a share of deals shrink below 20%. here now to discuss this and where deals are going, facebook analyst, kyle, welcome to the program. what have your studies found, is this a permanent shift or that rich vc move to the ranch in wyoming for a couple of months to wait out the pandemic but ultimately return to sand hill

road >> the bay area, produce a wide area but this is a trend we've seen growing the last five to ten years. there's been a concerted effort by the industry to get capital into areas outside of the bay area not because the bay area is declining or is not what it used to be, but because great companies are being developed and growing everywhere that being said, we do believe that the bay area is going to continue to be the center. $100 billion raised by 900 funds in the bay area. the capital is not going to immediately disappear. we do think it is overall --

>> bay area will continue to develop and grow those companies. if you look at the track record of the companies that have exited over a billion dollars, the majority of those are still in the bay area. the other eco-systems to really grow and develop and above their weight, they're going to need to come and have those to draw more investors and develop local capital to say we'll support those eco-systems. >> is it that there's so much money out there and everyone is sitting home and bored and why not invest in something but really and truly that many new great companies that deserve

that kind of investment? >> well, if you look at kind of what's happened to that top end of the market, companies are staying private much longer and extending their growth in the private markets. that's drawing a lot of the public equity managers that are traditionally in the ipos and investing in public markets into the private markets and they have a lot more capital than traditional bc firms when we see these mega deals being closed at 320 last year and we expect probably more this year as well a lot of it has to do with the non-traditional investors investing in the private markets and making sure they're able to capture some of the growth happening there. we look at ipos, average years from the company at over 90 years. and that's continued to be growing and extending these private lifetimes of the companies. >> yeah, they can ensure more profitability for the early investors and maybe a little bit less for the moms and pops

buying the actual equities interesting data pleasure to have you on. thanks very much >> thanks so much, brian >> you're welcome. well, that does it here for "the exchange." coming up on "power lunch," bill area tilman fertitta, accepted two and a half years ago first interview since going public again via a spak. i'll join morgan brennan on "power lunch" in the next hour ngafter this quick break. break. we'll see you then lease the 2021 is 300 for $359 a month for thirty nine months. experience amazing at your lexus dealer.

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welcome to "power lunch. i'm morgan brennan brian sullivan will join us in just a moment. the bitcoin boom is on crypto currency hitting $48,000 and even billionaire tilman fertitta a crypto bull plus the battle of the billionaires in space. elon musk versus jeff bezos. we'll tell you which one took a small step while the other is taking a giant leap. later, twitter hitting a 7 year high even after banning former president trump we'll tell you why the stock is flying high ahead of