tv The Exchange CNBC February 11, 2020 1:00pm-2:01pm EST
remains double that of white unemployment now the fed began raising rates in 2016 even though inflation was still below target and when rates go up, the unemployment does as well. did the fed consider how raising rates without disproportionately impact those trying to secure employment, like communities of color, immigrant neighbors >> i would say that unemployment has gone down since we began to raise rates in -- at the end of the 2016 actually, the end of '15. >> but again, did the fed consider how raising rates would disproportionately impact those who are already struggling to secure employment? >> i think our consideration was really that the right thing to do is to get monetary policy back toward a place where it reflected an economy that had recovered quite a bit for the benefit of all people. including low and moderate
income people, in -- >> a lot of people are recovering now you're new cutting rating is it possible you began to cut rates too soon >> i think history will judge that we have to make the decisions in realtime we have -- we have learned something since then and that is that unemployment can be lower than most people thought with inflation. >> bearing that in mind, would you still have supported raising the interest rates when the philadelphia did >> i did support it then i think you have to judge the decisions on what we knew at the time. >> would more americans have jobs today if the fed had not increased rates over the past three years? >> i don't know. we're at a 50 year low it's a fair question. >> thank you >> thank you >> i would like to thank chairman powell for his testimony today.
without objection all members have five legislative days within which to submit additional written questions for the witnesses to the chair which will be forwarded to the chairman for his response. i ask you to please respond as promptly as you're able. without objection, all members will have five legislative days within which to submit extraneous materials to the chair for inclusion in the record thank you all and this hearing is adjourned >> all righty. there you see the closing of the committee with chairman jerome powell discussing the position on interest rates. powell is saying that the economy is resilient and he said there's problems with
coronavirus and on the rates he's content with the current stance unless economic conditions change and that the fed will continue liquidity injections into the markets but will transition away from the active use of repo during the testimony, president trump criticized powell which he has done rather repeatedly tweeting quote when powell started his testimony today the dow was up 125 and heading higher as he spoke, it drifted steadily downward as usual and is now at minus 15 germany and other countries get paid to borrow money we are more prime but fed rate is too high. dollar tough on experts. let's bring in a chief economist, a senior market strategist at slate stone wealth and cnbc's steve liesman is here as well. i'm going to begin with you, steve and get you to sum up what
you heard the chair say. he sounded more dovish than not. he said nothing about the expansion is unsustainable that's a beautiful use of the double negative i think it means things are pretty good and he seemed -- but nowhere did he suggest that we were going to go close to or into negative interest rates >> no. i think you have to think about where you were -- where the chairman was or the fed policy was before going into this it was a policy that was on hold and thinks that the current policy of 1.5 to 1.75 is appropriate. to the extent they're leaning dovish he mentioned the coronavirus is a potential risk and trade is getting better other risks on the global economy. think of it this way, tyler. if 90 degrees is straight up neutral, beyond the 45 degree mark is leaping to the -- i think it's short of the 45 degree mark.
they're leaning to the cut if the coronavirus has a sustained downside risk to the economy he's not ready for that conclusion yet. >> joe >> i agree with steve. we don't always agree with steve. but he makes great points. the fed isn't cutting is because the economy is strengthening in my mind. the coronavirus is a risk in the short term and q1 can be affected and it might be more adversely affected by boeing than with the virus. i'm bullish on growth and i think that the economy can do because productivity is strong there's still a lot of labor slack we can get into if you want to talk about but the economy looked to me very held they that's the reason that the fed won't cut. >> the u.s. has become the safety play? >> yeah. in the last year the equities were up. the dollar is slightly higher. it's hard for the dollar to go
down if u.s. growth prospects are as good as i'm projecting. >> kenny, interest rates need to come down? >> no. no i don't think they need to come down i wasn't in the camp that he needed to make the last cut that he made. i actually thought he should have left them where they were, but that being said, in an election year the last thing that the fed wants to do is appear to be partisan on either side although he's leaning dovish i think you have to leave that door own in case coronavirus turns into something bigger than it is. i think the rates remain unchanged. >> don't you have right now you have the chinese economy shut down >> for all intents and purposes, yes. especially a key part of the supply-side economy and the potential knock, the worrisome thing out there is what are the components that china provides us that --
>> nissan can't get hurts. >> i heard they can't get hockey sticks in the nhl. that's a potential real problem for some people. those are the sorts of -- obviously hockey sticks are not the thing that will shut down the economy but there's that piece of it. joe mentioned the boeing shutdown taken together we did a survey over the weekend 1.2% is the going number for a consensus for gdp in the first quarter. a that's a weak number it would appear without any additional evidence or downside risk the fed is going to look straight through it. they're going to see the other part of the forecast which is for a rebound in the second quarter to 2%. >> the only thing i want to add though, i said that the fed isn't going to cut that's different from saying that the fed shouldn't cut on the growth side and the models that the fed uses, the things of that sort, the fed won't cut rates because unemployment is going to stay low. look at the yield curve the fact that the whole curve is trading
through the midpart of it is a problem. and the fed should be cutting rates but i don't think they'll do it. >> you think they should stay roughly where they are. >> i didn't think they should make the last cut let alone another cut. yeah, i hear what you're saying. it doesn't make sense logically. >> we need a steep yield curve. >> thanks, guys. we have to leave it there. all right. we have a news alert on the airlines and the coronavirus phil lebeau? >> tyler, you were talking about the chinese economy being shut down or is it essentially shut down well, there's certainly not demand for fights between the u.s. and china american airlines postponing when it plans to resume flights from the u.s. to china now pushing it back to late april. previously, it was going to resume flights between dallas-ft. worth, the hub and hong kong on february 21
that is moved to late april then you have the flights between l.a. and hong kong as well as all the other flights to mainland china they were supposed to resume on march 28th no, now april 23 and 24. not a surprise, given the fact they're seeing extremely depressed demand for flights. >> phil lebeau, thank you. phil reporting on the airlines here is what else is ahead on "the exchange." coming up there's a lot riding on tonight's new hampshire primary as the democrats continue to search for leadership the state of the race, the state of fund-raising and what's at stake. plus no signs of slowing down the staggering new numbers that showed the sky is the limit for streamers. and a look at how the shorts were left holding the bag on tesla. this is "the exchange.
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some surprise write-ins for bloomberg and a surge for klobuchar and now we await for the big tallies to come in polls close in about six hours a lot of progressives are doubling down on bernie sanders and others are torn between pete buttigieg and klobuchar. the name that didn't come up, joe biden. he has since left new hampshire to get a head start in south carolina but the top three candidates have been commanding extremely large crowds sanders drawing 7,500 last night but they still pale in comparison to president trump's rally in manchester. capacity at 11,000 seats some 40% of the voters are independents they and a lot of the moderates we have been talking to are on the fence between klobuchar and buttigieg. take for example a woman who runs a fifth generation manufacturer and as of yesterday she hadn't made up her mind.
>> i think the economy is strong for certain people but for the people that we're employing, trying to make rent or trying to pay the bills, the economy is not strong at all. >> that was a refrain we heard over and over from voters regardless of who they're voting for. the economy is generally good. unemployment low, but the cost of living is really, really high. >> all right, thanks very much there is more on the line in new hampshire than just delegates. the outcome could have a huge impact on fund-raising momentum. sources are telling cnbc that mayor pete buttigieg is seeing a surge from deep pocketed executives let's bring in been white from politico and a cnbc contributor. so the money is chasing mayor pete >> for now these have a lot of up decided business executive s you have david heller, he is starting to surge to pete
buttigieg. he's the preferred candidate as are others. >> is mo'ney tilting away from joe biden and to buttigieg >> i think so. it looks like we're on the brink of that if he cannot pull off success and form of success in new hampshire and nevada and south carolina. >> and biden has pulled out of new hampshire, he's gone he's already gone. he didn't wait till the polls closed to go to what many are saying is biden's last stand, south carolina. >> right last chance saloon for biden in south carolina i think it was a smart move to leave the state and be on the ground in south carolina tomorrow because his finish is going to be poor how bad will it be can he fall to fourth or fifth >> can he sustain another fourth place finish >> certainly he can't if he doesn't win south carolina
he needs a win under his belt and delegates under his belt that's why he wants to be on the ground running no sense in being in new hampshire when you're getting your butt kicked an you have unhappy supporters at the party. >> fairly strong last time. >> even more - >> he's running this time. >> exactly. >> everything in the cards that joe biden was not going to win new hampshire but the way he's going about falling now. he was the self-proclaimed front-runner he would be in top two or three. fourth or fifth could be a big problem for him, just from a donor and a voter perspective. >> but he's no longer the front-runner right? as you look at the latest -- a monmouth poll out today has sanders in with 26, bide within 16 warren with 13 buttigieg with 13. if you look at the real clear politic, biden is 19.8
warren 14. bloomberg 13 so he can't claim to be the front-runner nationally. >> sanders is the front-runner at the moment with buttigieg really surging and the donor thing is -- big donors have liked him for a while because he's kind of a moderate and a centrist but the question is is he too young to make it happen this time around? biden is no longer the front-runner and after sanders it's wide open between klobuchar and bloomberg. i think his rising numbers are taking away from biden, a real problem for biden. if he's losing support to bloomberg -- >> you get a long forgotten podcast surfaced of a speech he gave -- whether bloomberg that is at an aspen institute event some years ago in which he said some things about minority neighborhoods and the incidents of crime that certainly are not going to endear him to african-americans
or people in poorer neighborhoods. >> right prior to today, prior to the video coming out he was doing well with african-american voters so it's going to be interesting to see how that plays out going forward. is somebody like bernie sanders going to jump on that tape an use it to try to counter this bloomberg momentum i don't know bloomberg is making his wayly to super tuesday states will that be an impact, i'm not sure. >> so people are clear an this, i'm going to quote 95% of murders, murderers and they fit one m.o they're 16 and they're in the inner city and he was using this as a defense of the stop and frisk policy which he's backpedaled from some say too little too late.
>> this is a real problem for him. stop and frisk was already a problem for him and he was getting hit on it from the left from a lot of the progressive candidates but as brian said he was doing well among african-americans who appreciate the business success and see how we he's done this is stating some of the things that maybe were the rationale for the policy, but which can be used to say, look, this guy was fundamentally wrong and fundamentally outside of our values. >> i'm going to say something crazy but a maybe it resonates with you i think bernie sanders in the sense that he has an extraordinarily strong core is rather like donald trump who has an extraordinarily strong core. >> you're right. he galvanizes the base ala donald trump he says things that are kind of out there. right? and he gets his supporters to come right through and back him. that's why we see a surge right now. >> go ahead. i was going to ask you, what are
the odds if you were to say right now that the democratic convention goes to the convention without a clear winner. >> yeah. i think the odds are rising and the rising significantly i would say 25% chance right now. maybe going up from that because it is still bifur kated and delegates can get in in super tuesday over the states. we have -- we love to fantasize about it every reporter's fantasy we'll see if we can make it happen. >> in that type of situation, superdelegates can play a role on the second ballot not on the first ballot. but the second ballot, here comes the business guys deciding >> good stuff, guys. appreciate it. all right. it says kelly, but she's not here new data suggests when it comes to streaming, viewers are just getting started. who is trying to court more eyeballs. and plus manufacturing
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final hurdles for the deal which cannot close until the california public utilities commission approves the transaction. the home construction etf, the itb closing in on all time high. and despite the concerns over the coronavirus, the china large cap etf, fxi, it's up positively now to sue herera. >> hello, everybody. here's what's happening at this hour the defense resting the case in harvey weinstein's rape trial. relying on just a few witnesses to testify on his behalf weinstein chose not to tell his own story at the risk of having prosecutors grill him on cross-examination. the world health
organization named coronavirus covid-19 it is promising vaccines to help stop the spread. it's killed more than a thousand people. >> this outbreak is testing us in many ways it's a test of political solidarity whether the world can come together to fight a common enemy that does not respect borders or ideologies it's a test of financial solidarity here at home, residents of tiny dixville notch voted first in the new hampshire primary former new york city mayor michael bloomberg received three of the five votes cast bernie sanders and buttigieg got the other two. you are up to date. >> thanks. here's what's else is coming up
on "exchange." >> will lyft'sing nears keep going? uber suffers a blow. and money versus exercise. a new study has the answer on which one will make you happiest that's up ahead on "rapid fire." or the famed peaks of whistler, you've faced the hassle of lugging your gear through the airport. with ship skis, you're just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. with unrivaled pricing, real time tracking ship skis delivers, hassle free. ship ahead and go catch those first tracks on fresh snow. ship skis. your skis. delivered. apps except work.rywhere... why is that? is it because people love filling out forms? maybe they like checking with their supervisor to see how much vacation time they have.
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let's catch you up on a few story stories, here to break down the headlines, let's start with lyft. investors are going to focus on whether or not lyft can navigate the way to profitability it's had a rough ride, the shares are down 25% since it went public. uber stock is lower by only 8% deirdre bosa has more on lyft. what should we be looking for and what will the commentary likely be? >> yeah, so i think that everyone from the ride sharing companies is just looking for this path to profitability that
we have been talking about forever. the markets are focused on uber. last week moved up its time line will lyft do the same today? i think what's really interesting too is the regulatory impact. remember that word adjusted is very important they're going to take into account their own costs and the new time line didn't take into account regulatory changes because of course guys they're facing a lot of upheaval and potentially massive existential changes to the lat form here in california with that ab-85 gig economy law. >> there -- we'll talk about a lot of companies that have gone public that aren't making money. here is one that's having trouble. how soon do they need to do it before the market is going to exact an even bigger price than it has >> the writing son the wall. the signs are already out there. this idea that there's a
paradigm shift that puts an emphasis on that profitability or at least showing people that you can get there at some point. some finite amount of time in the future we have seen ipos that have come to market, hey, we don't care about the profitability just yet. the issue now is that almost every company that becomes public is put under a different lens it's not sitting well with the company executives or the board members there as well. >> and the revenue growth catches everybody's eyes >> and that's been for a long time but as deirdre pointed out, hey, guess what, we'll get to that profitability point sooner than what many had expected. i think that was a pretty big mile stone and i wonder if lyft, you know, investors are hoping to hear the same thing if they don't, what happens? >> let me ask deirdre a dumb question which you know the
answer to. why don't lyft and uber make money? what is preventing it? >> they are in such a fierce battle, some of the biggest costs is insurance that's one to certainly look out for tonight when lyft reports because those costs have been increasing they may not have the costs such as the cars in their actual balance sheet. however, they have to insure them and they have to process all of these payments. when their s 1s came out that was shocking to the public market investors there were so many costs in the asset light business model and they're spending a ton on marketing, promotions those have scaled back i think it's important here to note that what is adjusted ebitda profitability mean for the riders it means that your costs and they have said this, the costs oft your rides and we're seeing this in california are going to go up. we're the ones that will pay for that - >> we're seeing it in new york as well. >> i think that's right. what is the solution when your
costs are as high as they are, you're going to raise prices tactually what you do. >> or you stop offering discounts that's been an issue. >> everybody knows what uber and lyft are why do they need a bunch of marketing? i don't know when you need a bunch of marketing when you're already othere according to dow jones, airbnb has swung to the loss as the costs climbed sharply. they're raising questions about the valuation and now the timing of its much anticipated ipo. profitability, deirdre, was supposed to be airbnb's edge does that take away in it? i can't imagine that it doesn't. >> you know what, we have to make a -- it's been ebitda profitable for the last two years and in to 2017 and 2018. this is one quarter it lost $320 million let's put this in perspective.
uber lost net last quarter a source very close to the company tells me that it's still on track for the ipo in 2020 the big question here is how is it going to be received by public markets will even a little -- not a little bit because there's still more than $300 million in losses in one quarter but will that throw off investors or change the valuation view even though it may be still a very different business model than the other -- >> last funding round was $31 billion in 2017. there's some history here with wework and high vaultiations that are no longer there should we be prepared if this company becomes public that the valuation is going to be a fraction of $31 billion or what? >> i think there cease many uncertainties and other things spooking investors is the coronavirus. one investor close to the
company is saying that china is an important growth area for airbnb and they have to push off their ipo until the coronavirus stabilizes a bit so it provides more certainty for this very important geographic region for the country. there are questions for this perhaps ipo -- >> an angle i hadn't thought of. how big they are or were in greater china. deirdre, thank you so much great to see you next the fallout from the aforementioned coronavirus showing up in several retailers' quarterly results. under armour reported disappointing stocks off 19% and they gave weak guidance warning it can lose as much as $60 million in sales from the coronavirus. hasbro delivered a stellar quarter. and the cfo deborah thomas said that it's challenging to quantify the magnitude of the virus and that the company is reacting to the situation. these companies join a growing chorus of retailers already citing the coronavirus as a threat to future earnings.
courtney, obviously with hasbro it's a manufacturing issue in part. >> that's right. that's right. >> i suspect it is the same with under armour they must manufacture some in china. >> yeah. on the call, look, they sort of went through it can be a supply issue. it can be a logistics issue when it comes to getting goods in and out of the country and i can also be a demand issue for selling two customers in a country where many people are quarp teened at hope, they're not going to work. it could be 50 to $60 million in a revenue hit in that asia-pacific region in the first quarter. they like hasbro gave themselves a bit of room, that's what we see right now. saying -- things could change. so i think everyone having to be a little bit careful about how they're couching it. i want to make it clear that the shares of under armour are under significant pressure today though for much than that. the company is having a hard time getting itself back on
track. particularly when you're looking at the guidance the street had hoped to see a small gain in sales for the year they're now forecasts low single digit decline. coronavirus makes this even further complicated. >> thoughts? >> i would say that the -- for the under armour the reason why we have seen as sharp of a falloff as we have today is because there has been some growing optimism as of late. that they are better positioned to compete against the likes of globally or nike globally or elsewhere around the competitive landscape for athletic apparel and leisure wear this is one of the missteps. it shows you that they want them to be perfect in terms of execution in order to show they can compete with nike and adidas but i would also point out that with under armour, this is very much a hyper competitive environment. it's almost becoming a duopoly in this world. under armour has to fight that much -
>> a duopoly between adidas and nike in my son's group it's nike. >> i think it's a tough space to be in china with the coronavirus. we have heard it from some of the cosmetics makers, l'oreal said they're saying a hit because people aren't shopping in the airports because flights aren't going to china. >> but their stop didn't drop 12% -- >> because there's much more than the coronavirus with under armour. >> get this research by yale and harvard suggested that exercise makes people happier than money. how much happier according to the study published in "the lancet," physically active people feel just as good as sedzentary folks who earn about $25,000 more a year. so i guess that says that -- >> that's why i'm not happy?
not as happy as you guys are >> no. >> you're relatively happier than i am. >> my legally blond fans you know what i'm talking about. you come out and it's something you can control. you work out a little bit. you're sweating and glistening so you feel better about everything else. things seem a little less -- >> but also if you the live in this this area of the country you have to be rich to work out. do you know how expensive gym memberships are in new york city >> and they found that exercise in moderation makes you happier. they found the opposite of people who exercise to an excessive amount are actually unhappier than people who don't exercise at up i think everything in moderation makes you happy. >> what do you do?
>> i do yoga four to five times a week and i got a peloton i really like it but i'll tell you the thing that is my biggest gripe. how can the instructors be so happy when i'm so miserable? i almost put an expletive in there. >> it gets better. keep pedaling. >> yeah, they're happy. >> $25,000 or want to work out three times a week >> yeah. all right, guys thanks very much i appreciate it. and coming up if you think american's appetite for more apps and services to stream more content has peaked, we have new details on that next
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welcome back to "the exchange." the number -- the amount of time that americans spend watching content on their smartphones or web is not slowing down. it is quite the opposite julia boorstin is live in los angeles with the details hi, julia. >> tyler, we are consuming far more content than ever before. in fact, american adults spend nearly 12 hours a day connected to media that's as of the third quarter, an hour and a half more per day than the year earlier quarter. so the big question is what are people doing when connected to media? live tv has gone down. and the growth though is in the time spent on smartphones. time spent using an app or the web. nearly an additional hour an a half from the prior year most video viewing is happening on streaming but up 10% from a year and a half earlier.
of that streaming time, netflix is in the lead with about a third of it. now, these new numbers from nielsen comes as the information reports that youtube is looking to take more steps to be the base of consumers' streaming, video bundles is looking at a idea of giving people the ability to sign up through youtube for a wide range of different apps i reached out to youtube they had no comment it makes sense they want to grow in that arena as well. >> you'll stick around as we bring in steve coe advantage what youtube wants to do is be the gateway i suppose to other kinds of streaming services and channels for a fee. >> yeah. apple started to do this last year where you can a la carte what i want. hey, if i'm done with "succession" season two i can cancel hbo without a contract and sign up again when season
three starts but if you bundle it all together and add it up for apple and in apple's case it's 100 bucks a month. so it's approaching that cable bundle pricing already so youtube is seeming to take a page out of apple's book amazon does it too on prime video. this idea that everyone is trying to create a new bundle. who can become the next streaming cable service. >> i guess the idea here, julia, or the appeal i'm creating my own custom bundle as opposed to a bundle than has been curated to use the effete word of the hour by another provider. >> exactly i think, you know, steve just mentioned apple and amazon and what apple did was a big first in kicking off the business. because amazon offers 200
different streaming services they want people to think of it as another channel to watch through amazon prime video in's a huge amount of money to be made because you subscribe through an amazon or an apple or in fact a youtube you would be paying a fee or part of your subscription fee would go to that platform. so they would generate revenue from that. and they also would have the added benefit of you wanting to go there as a place you'd go to find all of your content so amazon wants me to subscribe to showtime. all and hbo through them you can understand why youtube would want to do the same thing because there's a big advantage to people saying this is my main platform the home screen for where i find all of my streaming video content. >> julia, thank you. we have breaking news out of the ftc. elon moi has the details. >> ftc has sent notices seeking information about the small acquisitions that were not reported to regulators
the special orders essentially carry the weight of a subpoena and they were sent to amazon, alphabet, apple, microsoft and facebook they're required to report the deals over $90 million but worried they could make acquisitions of the nascent competitors. they want information on the noncompete clauses and how product development, pricing and data were handled after the deals were closed. now this is not a law enforcement action it's a study but ftc chairman told reporters that could it inform their decisions an he said if the ftc finds something problematic. coming up from the latest coronavirus numbers to the stories behind it, we check in
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the number of coronavirus cases keeps climbing with more than 43,000 now worldwide including 13 here in the united states the number of deaths stands at 1,016 and with many factories across china still shut down, the disruption to businesses and supply chains goes on and on we spoke with one business person whose motorcycle factory on the outskirts of beijing was just ordered to stay closed a little longer. >> the continued spread of the virus has stalled production lines across china and we spent the day with one beijing manufacturer who's concerned the disruption of the supply chain could last until april sebastian expected to reopen his motorcycle factory today instead, it's 10:00 in the morning and he's home with his dog. >> it's nice to be home, but this is too long like most businessmen in china, he was planning to start
production after the lunar new year holiday but because of the virus, he's stuck trying to manage the business from his apartment. they've depended on these wo workers to build the motorcycles for the past two years from here, the bikes are shipped all over the world, including to the u.s. authorities here have imposed prevention measures like install showers, isolation rooms and staff to monitor worker's health >> you have to have it or you don't open the doors chinese workforce, migrant workers and majority of the workers comes from the places like wuhan, harbaen and so forth and those guys won't get here tloes until the end of the month. >> in the meantime, he and his partners had to delay the launch of a new motorcycle they planned for this month when do you think you're going to reopen? >> fingers crossed friday, but you never know
>> the virus is now affecting his business planning. they have a facility in india, but they're now considering shifting senior staff to india and accelerating their plans there. >> thank you very much there are a few companies that have announced in the last 24 hours they will open their facilities caterpillar reopening most of its chinese operations the company saying they continue to follow government direction on the remaining openings. honda telling investors it aims to restart at most chinese plants on monday it added some of its workers have returned at five of its plants to take steps to ensure the safety of employees in order to resume work mercedes has restarted its china production but says it is still assessing the the impact of the virus. coming up, i got my butt kicked. how one tesla short seller described the stock's enormous rally, but just wait until you hear how much money short
bearish investors lost as shares of tesla more than doubled. since then, the stock has fallen b about 20% but some are still feelinging the short squeeze and bha for quite some time. for more, i'm joined by greg zuckerbe man greg, how much pain are these short sellers in. >> pretty deep it's red the big investors, like david einhorn, hedge fund type traders, but individuals, too. we spoke to a bunch of them who have been skeptical for a listening time some are throwing in the towel others say hey, at $750 a share,
it's more of a short i haven't seen anything like this that showed on a battle in a single stock in a generation at least ten years >> some of the big short sell n einhorn, isman and others are known for many things, but one thing is the able ility to endu pain right? >> yes some can handle it a guy like cha noes says it's about 2% of his firm's assets. their poss i po he sounded calm and confident in his position and he wasn't really talking about adding to it, but didn't seem like he was ending it soon, but many even bigger investors aren't in position where you can hold it forever and that's the thing b about being a short seller t really difficult as the stock goes up, you feel pressure these guys closing out their positions and you get a short squeeze. not the only reason, but part of it >> this is a stock that's volatile heavily traded
$55 billion worth of shares traded on tuesday of last week alone. there was a time to short this stock about a year ago, right? >> yes and there were reasons to think that the stock was going much farther, lower listen, you could make all kinds of bearish arguments the stock, the company isn't known for its profits. it's in a really competitive business this isn't like amazon back in the day when it wasn't making money, but it had aspirations, interesting plans. you can make the argument that people like bmw and porsche are coming out with electric vehicles that are equally attractive to tesla and the bulls will counter that by saying elon musk is unlike any other executive. he's got ambitions and the track record of the last six months or so where he's been improving their production they've got a crossover coming so you can make the argument >> i suppose so and quickly, he loves trolling the shorts,
doesn't he >> right unlike any executive we can recall in the last few years, baits them, trolls them. he has talked about how shorts should be outlawed it's been part of the game part of the story. is the short sellers >> all right thank you and that does it for the exchange i'll head over and join contessa on "power lunch" which begins right now. >> here's what's new at 2:00 on "power lunch." the powell playbook. stocks hitting record highs before retreating as jerome powell lays out the biggest risks to the market and the economy. we'll tell you what he said that has all of wall street talking plus facebook takes a hit as one analyst is warning about a potential ad pock lips that could hurt the stock and later, the epic tesla rally taking a breather today and a top technician says look out
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