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tv   The Exchange  CNBC  July 8, 2020 1:00pm-2:00pm EDT

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genetics, sgn, biotech >> same thing, i think there is a lot of innovation to come. >> steve weiss >> i think it's the worst instrument out there, vix. it's so cheap, you might want to get some >> that does it for us "the exchange" starts right now. >> welcome, everybody. i'm john fort in for kelly evans. the airlines are fading fast as hotels see big drops what it could be telling us about the next move for the market plus, apple continues to rally. up 40% in just three months. is this name unstoppable or should investors be cautious of a stock that continues to hit all-time highs and one retailer is down 58% this year. but bank of america says it's time to buy. the name and the analyst behind that bold call is ahead, but we
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begin with today's markets major indices kind of olding on -- holding on by their fingernails. bob pi sani, you got that. >> a relatively depressing scenario day after day, and it's all about semiconductors and nothing else lease look at the sectors. again, technology outperforming midcap semiconductors. we've been largely in a trading range in the last week or so the s&p 500 have been hovering a little around 3100 for a while now. take a look at some of the sectors here tech, industrials, materials, banks. notice techs outperforming day after day after day. industrials, materials and banks, cyclical stocks, are generally underperforming day after day. that's been an issue for the markets for a long time now. mega caps again today, you got
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apple doing well, you got microsoft, google, amazon doing well those big five stocks have been empowering the s&p 500 forward for several weeks now. elsewhere it's been a story for a while now. the tech stocks in july keep holding up, not just apple and microsoft, but your salesforce, all your software companies are doing well and your semiconductor companies like nvidia elsewhere, if you look at the banks, they just keep sinking day after day. you got all sorts of problems like loan growth and loan delinquencies out there. just a few trading days we're dealing with, 78% decline. industrials, there's a bit of a split here, because you have the packaging companies like fedex and ups doing well because they're delivering packages for consumers.
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deliveries are not doing well, you see the airlines not doing well and cyclicals like textron and lockheed you can't have a market with just five stocks and a dozen other semiconductor stocks and software stocks pushing the market up day after day. at some point you've got to get some of those laggards start showing some life. don't have that today, though. back to you. >> don't know when that will be, bob pisani as more states pause or roll back their plans, casinos have not fared very well with stocks down 20% united and american airlines down big, while k.b. holmes and toll brothers are struggling to find their footing if the open trade stalls out, will those funds just end up back in the large cap high growth names for more i'm joined by
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industrial strategist and chief wren good afternoon, guys >> good afternoon, john. >> hey, john >> jim, when we look at the rise in coronavirus cases and the way we've seen the impact in some of these travel and hospitality stocks, how do you factor that in as an investor from here? do you keep money there, do you put more there, do you move it somewhere else what's going to happen >> it has increased our concern about the outlook for stocks in general, because consumers are starting to, in the wake of the rise of the coronavirus cases, you've seen it in a dropoff of airline bookings, you've seen it in a dropoff of restaurant bookings the evidence is indicating that not only are individuals being more cautious, but companies are also being more cautious at
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bringing people back into the office >> we've got kind of a catch-22, don't we, scott? on the one hand, rising cases might stunt the economy on the short term on the other hand, the vice president this morning saying in-person classes have to resume this fall. i've got to think part of that might be because america can't completely go back to work if kids don't completely go back to school but there's a concern about this rise in cases. from a market perspective, what do you want to see happen? >> well, john, of course we're trying to focus on hospitalizations here, and i think that's really the number to watch, because if you look at the seven-day moving average, we're well over 600,000 tests a day. there is a lot of testing going on it seems to be younger people that are getting these more recent infections. but this is something that we want to watch for sure now, as we look out through year end, we're not expecting a lot
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we've got a little bias to the upside 3250 is our target year-end s&p we're looking to touch 3500 for our clients, we're telling them you want to stay in tech, you want to stay in community discretionary, you want to stay in community services. those are going to benefit from the environment we see, but we want them looking out beyond what we think will be a range trading with a little upward bias over the course of the next six months so we think the market is going up there is going to be some uncertainty here on the virus front between now and then we think these big down days or big down weeks are opportunities to step in so we want to make sure our clients have a plan, and then when they get the opportunity, we want them to pull the trigger and execute that >> but scott, you're telling them to rotate out and into health care and out of treasu
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treasuries what should people get out of beyond that? >> small caps typically early in a cycle, they do better. we've had that position on for a long, long time. it's worked well but clearly small caps have performed better here. we're getting interested in high yield. what we don't want our clients doing, especially after these big bounces here, you mentioned real estate. we don't like energy, we don't like industrial ds, which is usually a later cycle type of strategy to follow so, you know, for us we think things are going to improve. we don't like materials, either. they've had good bounces off the lows but we have to think about some of these sectors that we don't like, materials, industrials, energy. they need inflation. they need tight capacity they need robust global growth we don't have any of that going on and i don't think it's going to happen any time soon. >> jim, you say the market is
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overestimating the growth rebound. reducing the margin of safety for investors. what's the right response to that i mean, if you think the market is overestimating that, what do you do >> well, we've been paring back our equity exposure in the last two months and the area we've taken from are things like real estate we've pared our nutri weight at the sector level, we do like some technology stocks primarily in the communications area, and we also like health care where we think earnings will be more durable and virmenvironments are more attractive than those that got overdone >> jim mcdonald and scott wren, thank you. now, one stock that has continued to outperform amid all
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the market volatility is apple that stock continues to hit all-time highs it's up 70% since march lows those records have some on wall street a bit wary, but not enough to tellin' ve investors y away joining us is jerry from deutsche bank. jerry, welcome >> thanks for having me. >> my take having watched apple for a long time, they tend to launch things on time, maybe not in the volume people hoped, but i don't know what the demand is going to be like when people go out to stores this fall, anyway. how does it look to you? >> it's possible the product could be delayed i think that's definitely well understood by the investor community. in the last three cycles, there
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has been twice when a product has been delayed a month to two months the iphone 10, the iphone 10r. it's not unprecedented that the product could be delayed one of the risks we did highlight in our note is that people may be less willing to go to stores to buy the phone they may have smaller pockets due to unemployment and the present situation, given lower spending it's definitely a risk that we're worried about as it gets out into november and december >> tell me now about the price target hikes, though correct me if i'm wrong here, but on june 9th you were at 350, on the 22nd you were at 380, now you're at 400. it looks like you're chasing it, and it makes me wonder, when is too high you're at 400 now. is 450 at the end of the month what's going on? >> it's a great question, and i think what's interesting about the present sell side bios for
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price targets are the ratings are actually below where apple is right now despite raising to $400, there is only one or two analysts who have a higher price target than i do at present. i think 400 makes sense, and here's why the stock is at -- mine is based on 25 times $16 in 2021 earnings at this point in time, i think that's fair when you compare to peers. i consider peers largely fang and microsoft. where the multiple peers fare at this time is fine, but when it pushes beyond will cause investors to become anxious. >> i wonder when it causes you to become anxious. the comparison to peers is what i wonder about, because yeah, when they're all up, the comparison to peers says this one should go higher but then eventually, if they've gotten too high, it and all the peers end up falling where do you peg it?
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where do you kind of fundamentally say, all right, the peers might continue to go higher this stock might be better than that one but it's all too crazy. i've topped out. >> yeah, so ultimately apple is attractive for many reasons, i think. increasingly investors are beginning to understand that the core customer base is very entrenched, especially if you add on music and disney plus, and apple is likely to buy more iphones going forward. i think that's kind of increasingly being valued correctly. at some point i do think the valuation could expand to a point where it outstretched the value of that annuity stream in terms of profits, and i think that's the point where we need to be more cautious. i don't believe we've reached that point yet
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>> i got to tell you, when we look at back to school, i don't know if parents are going to be buying kids as many clothes, because who knows if they're even going to be going to school five days a week across the country, but technology, i don't know anybody who is saying, maybe you don't need that new ipad this year if you're using it for school, because my goodness, the stress on the parents in the home, right >> yeah. i would agree with that. i think work from home and learn from home scenarios have really brought to life the value of tablets and pcs, especially. even iphones to an extent as well and these are products that are really at the core, the heart of what apple brings to the market, so i definitely agree with you from that standpoint >> we'll see what happens with the holiday season for that launch time. jeriel ong, thank you. >> thanks. coming up, a market moving call on retail
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bank of america says it is time to buy why? we'll ask the analyst behind the call plus, why disney plans to go ahead with its reopening plans despite rising coronavirus cases in florida and we'll tell you why harvard is suing the government. we'll be right back. when you walk into an amazon fulfillment center, it's like walking into the chocolate factory and you won a golden ticket. all of these are face masks. this looks like a bottle of vodka. but when we first got these, we were like whoa! [laughing] my three-year-old, when we get a box delivered, screams
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welcome back the nation's largest public school system might not fully reopen this fall with new york city mayor de blasio announcing today that classroom attendance could be limited to a max of three days a week per student. these kinds of decisions are having many ripple effects, including on back-to-school shopping prospects for more let's bring in courtney raegan courtney >> many districts are still not sure what back to school will look like with covid-19 spreading. it makes it a little surprising that the deloitte forecast for back-to-school spending for k-12 will be on par with last year with $529 per family for a total of $28.1 billion expect it to grow 28% over last
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year while spending on clothing and traditional school supplies could fall 20% and 18%, respectively mass merchants will still get the advantages of spending at walmart and target online possible pickup options are gaining ground for parents when you compare the survey results from last year 66%, though, john, of parents are anxious about back to school in general 76% point to concerns about health 43% are worried that the abrupt end to last year's school season simply left their children unprepared for the fall start, and 38% are highly concerned about finances we know there are many job losses that have happened already. there certainly could be more. back over to you >> courtney, that shift to spending on technology certainly makes a lot of sense to me i wonder about the impact on certain kinds of retailers, the ones like your kohl's, like your
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ross, like your burlington where the idea is to touch a bunch of stuff and rifle through a pile of things other people are touching to find that deal is that going to work in this environment? are analysts talking about that. >> yeah, john, i think it's going to be very difficult, and i think retailers themselves are a little worried about even having crowds at stores. my gosh, that's usually what you want, but now you're a little afraid of that because of what's still happening with the virus spread look, if kids aren't going to school, do they really need all those new outfits? to some degree if they grow out of it, right not all back to school is discretionary. i think that's key when we're talking about back to school versus holiday spending. but you make a good point, those malls, those clothes stores could be in trouble this fall. >> yeah. you have to shop with tweezers this time. courtney, thank you. >> thanks, john. the pandemic causing major damage to almost every area of
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the retail industry. just today brooks brothers filing for bankruptcy, and asena, the parent company of ann taylor, expecting to file sometime this week meanwhile levi's announcing layoffs after reporting a sales drop of 62%. despite the worry, our next guest is making a bold call saying now is the time to buy kohl's joining me is senior retail analyst at bank of america securities good afternoon, lorraine >> good afternoon, john. >> i love a bold call, so let's get into this one. i understand the idea that it's sort of maybe the best of the pack, but what if they're all bad? >> well, look, the stocks have been all bad year to date, they're all down about 60%. if i were to highlight two key themes that we see coming out of this pandemic, iltt's, number o, a shift away from the mall, and number two, a shift toward
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e-commerce we think kohl's will stand out in both of those online is much more comfortable for shoppers to go, and number two, e-commerce. that spiked to 45% in the first quarter when many of their stores were closed i really think kohl's is set to be a key winner post covid, and the stock has not been differentiated by investors versus a macy's or nordstrom >> is this maybe payoff from that experiment they did with returns from amazon? have they become associated with e-commerce in a way and has that taught them something? >> they certainly have as you know, they accept amazon returns in their stores. it's been a great traffic driver i think there is still a lot of room to go to convert that customer into a kohl's customer,
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and that's what they'll be focused on i think it's interesting that when they reopened their stores post-pandemic, the amazon desk went somewhere besides customer service to present some distance, and for that mom to walk into kohl's to bring her amazon product back, she'll have other things to look at she might want to pick up from kohl's >> i know that surfaces are not seen as a major vector of transmission for virus spread, but in general, people are just concerned about this type of thing. is that something that a retailer like kohl's can address in a way that appears to be better than others, whether it's organization, whether it's cleaning is there any strategy that you've seen here in retail that makes you more or less heartened when you look at these players >> look, they've all been taking a lot of precautions they're limiting the number of people in the stores, they've
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stepped up the cleaning in a big way, some have fitting rooms closed, they'll keep the product aside for 24 hours after someone has tried it on or returned it there are plenty of precautions in place i think some of the most shocking data points we heard coming out of first quarter earnings is how well the brick and mortar stores have done after they've opened we see lines outside the store people are really interested in going back >> i'm going to sneak one more in for you how do you buy a retail stock if you don't know how black friday is going to work do you know? >> nobody knows, but i think, you know, when you look at the customer's wallet, right now it's pretty healthy, and one of the big themes for years before covid was the shift toward spending on experiences. vacations, nice meals, wine tastings those are all canceled so if you have a little bit of discretionary money, maybe it's a nice year to buy some more
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christmas presents, buy yourself clothes. there will be a big shift back to some spending on material goods just given the lack of other options. >> let's say there is, but government stimulus has had a bit to do with that, and i just wonder about the logistics of lining up its stores, how many people can get in -- maybe that makes your e-commerce case, hey, if i can't line up at the store, i'm going to buy online from kohl's because it's better than the others i don't know what do you say? >> i think black friday has become less and less important for the industry as the deals have stretched much longer online inc. they'll do it this year, maybe offer discounts earlier so they avoid crowds at the stores. i think most people will shift their spending more toward e-commerce this holiday because they want to avoid those crowds, and i think kohl's is poised to win there. >> you won't see me in line. thank you, lorraine hutchinson, with bank of america securities. coming up, nickel shares
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it's ridiculous. so ridiculous. with paycom, employees enter and manage their own data in a single, easy to use software. visit, and schedule your demo today. welcome back to "the exchange." stocks are mixed this hour with the dow turning negative after being up 219 points. the s&p about flat, the nasdaq still positive here are some of the movers this hour twitter shares jumping after posting a job listing saying it was building a subscription platform under the code name griffin. twitter has since edited that posting and it no longer contains that information. sources telling our julia borsten that twitter has nothing jobs oriented. there is a restructure deal that
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would help it avoid a near term bankruptcy and biogen higher after submitting a treatment for alzheimer's. they said it would be the first treatment to steer the course of the disease. sue herera >> hello, john, hello, everybody. here's what's happening this hour there appears to be a battle this afternoon over how to safely reopen schools this fall. the cdc says it will reissue guidelines next week after the president slammed the agency's current guidelines as impractical and expensive. the cdc is working on its own set of guidelines as they insist that schools must reopen in the fall the federal government has downplayed the resurgence in 36 states >> the federal government still insists on perpetuating myths,
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and the federal government says, well, the cases are going up because we are testing more. that makes no sense whatsoever hospitalizations are going up. that is the indicator. >> reporter: and firefighters are working to free some people who are trapped inside wreckage after a huge crane collapsed onto a construction site and surrounding homes in east london and that rescue effort is ongoing. you are up to date that's the news update at this hour john, i'll send it back to you >> thank you, sue. and coming up on "the exchange," more people getting their kicks on route 66. rv and boat makers expecting a record 2020 despite covid concerns, or maybe because of them plus, colleges are fighting back against a new rule on foreign students that could potentially cost the u.s. economy 4$45billion. we've got the details.
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well, it's about that time let's catch you up on a few stories that should be on your radar today. it is time for "rapid fire." here with their takes are robert frank, julia borsten and bill griffeth first up, facebook shares turning around despite an audit of its policies finding that the platform, quote, created significant setbacks for civil rights, unquote. this comes as civil rights leaders called yesterday's meeting with the company's management disappointing facebook also dealing with what could be the biggest advertiser boycott in its history julia, you've been following this story facebook is less than 2% off its all-time highs
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the biggest boycott in its history wouldn't be that big should investors be taking this seriously, however they might feel about it? >> it's interesting, john, because you had the results of the civil rights boycott come out this morning and very much echo the criticism that's been levied on facebook by the nearly 1,000 brands that are boycotting and the organizers of that boycott. what i think is meaningful about today's news and the fact that facebook is positive is that facebook had this audit, they opened up its doors for this audit, they commissioned this audit, and i think facebook is more likely to take recommendations from the auditors, also civil rights leaders, than they are the boycotters they don't look like they're responding to advertising pressure, but it's hard to deny the recommendations made over a two-year audit of this company >> that's the thing, isn't it, bill this is the thing that facebook practically asked for, and it comes back with a pretty
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mediocre grade at best i guess you could say it's not like the other social networks got a grade so we don't know what to compare it to. >> i'm not sure i understand mark zuckerberg's motivations right now. he doesn't want to be pushed around by his advertisers, but why doesn't he try to go to the forefront and do something about the social issues that we face these days in terms of misinformation, the election coming up, racial justice and so forth? it's like he's digging in amidst all the pressure when, let's remember, after they came public, there was tremendous pressure on this company to develop a mobile strategy that they didn't have, and guess what they came up with a mobile strategy this seems like he'sgoing the other direction at this point. i don't understand his motivation next hour on "power lines" we're going to have a former facebook executive, and i'm going to ask him -- he had a front row seat he got to watch mr. zuckerberg
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operate. i'm going to ask him what he thinks the motivation is now >> a power lunch on "power lines" >> absolutely. >> i think this is totally different than mobile strategy they're under attack from all sides. this isn't just about advertising, this is about their role in society. >> julia, it's always about money, it's always about the bottom line. they're being hit by advertisers. that's the bottom line issue of course ilts the same thing. it's just a different, you know, different names, different stories, but it's still about the money. >> speaking of different names and bottom lines, let's talk about harvard and mit suing the trump administration over a new immigration rule that bars international students from living here while taking online-only courses. robert, tell us about this brewing battle and the enormous financial stakes for colleges that have really come to rely on foreign students >> yeah, john, this is also about morality and money
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the morality side of it is harvard and mit both suing the trump administration for basically saying unless you are taking some physical course, you cannot retain your student visa in the united states so those who are in the united states who are taking all online classes, like those who attend harvard, will either be deported or they'll have to transfer schools. so harvard's president larry backhouse saying today this is reckless, this is illegal, and he will fight for the international students but really what's on the line here is the $45 billion a year that international students spend in the u.s., and at some universities they account for more than 20% of the total tuition. this has been the financial lifeline to so many schools, more important than ever right now as states are cutting their budgets to colleges and as more families are cutting back. this is about the morality of this and the students, but it's also about it is money >> as some of you guys know, my daughter is a grad student at
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that ivy league that robert just mentioned, so she has a number of international students she's been attending classes with, or did before they shut down in march. i give her credit, she made a good point, i thought, this morning at breakfast after we heard this story her point was, why kick the students out of the country because they have to work remotely why not also, then, kick employees out who are working for companies in the united states who have a work visa of some kind? why single students out, necessarily, when you could go after all people from international countries? >> they're certainly trying. they're trying >> julia, i was going to go there. i want to hear julia's take on this, because, i mean, everybody is working -- not everybody, but so many people, especially with a college education, are working from home right now. why is the trump administration so hot on everybody going to class? it's like hall monitors all of a
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sudden get in class, physically is that where we are is that a good idea? i don't know >> i don't know. i mean, it doesn't seem like it's necessarily a good idea for a number of reasons. i've seen those reports for fraternities and sororities, things are a hotbed for the virus being passed around. but think of all the rip teple effects of those college towns that will lose so much revenue from the pizza shops and the restaurants, and if you're going to send them back home, it's just various layers of economic implications from that >> true. international students like pizza, too >> what about the marijuana stocks, guys >> all kinds of reasons to do that, i suppose. disney says it is still moving forward with reopening of parks in california and florida despite coronavirus case spikes in both states disneyland california will go through its phase of reopening
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in the downtown district of anaheim tomorrow, while in florida, walt disney world will reopen the magic and animal kingdoms on saturday despite more than 7,000 new cases just yesterday. now, julia, this is cases, not hospitalizations disney has an enormous amount of control over how things flow, how things go in their parks is that what gives them, do you think, confidence to move forward the way they are >> well, look, i think it's really worth pointing out, john, there are two very different situations california is moving very slowly they're only effectively opening up part of the mall that's outside the park because the california government is really taking things more slowly here in contrast, the florida government is saying full steam ahead. they're ready for the park to open so i think that's why we're seeing the actual park open in florida, which is a much bigger deal, many more people, people
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getting on rides, not just getting takeout food i think it will be an interesting test to see how it goes, and also of consumer demand there are going to be so many different steps the park will be taking whether it's handing out hand sanitizer and masks and taking temperatures. we'll see if the lines are longer because people will have to be more spread out on rides this is a very different situation in florida, and we'll have to see whether people will want to show up. >> admittedly, i'm not a disney fanatic so i may not be the most objective person in all this, but for me, going to a park like that is supposed to be fun and leaving behind the troubles of the world. how much fun is it going to be when you're still confronted by all of the onerous restrictions and procedures put in place in retail stores? >> where else are you going to go >> i just don't think it's going to be that much fun. i will be interested to see what kind of demand there will be for not only the florida location
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but for disneyland as well certainly there are going to be enough fanatics out there that want to go back, but i just wonder how much fun it's going to be. i don't think it would be. at least for me. >> it's going to be a lot of fun, bill. graded on a fun curve, right, robert frank this is not fun. >> just think, you go on the spray ride like 50 times while you're there they're going to spray you down just like the water ride >> i'll wait in line two hours each time, too >> yeah. well, i don't know, the lines might be short don't say spray. that reminds me of aerosols. we all have to be careful. guys, thank you. thank you. that was "rapid fire." next, shares of electric truck maker nikola are rallying on an upgrade to j.p. morgan the stock is starting to look attractive the company shutting out key
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reliefs. they don't expect to have any revenue before next year we're still in "rapid fire." bill griffith, you love nikola >> i didn't say i love nikola. you said you love a bold call. this is a bold call for j.p. morgan tesla is one to compare, and i'm not talking about the mania that's going on right now. >> no, it's not. >> hang on, hang on. right now nikola is five years old. it was founded in 2015 here we are in 2020 and they still haven't produced a truck yet, no revenue, and yet they went public and hope to have revenue next year. tesla founded in 2003, its first car, the roadster, came out in 2008 at the height of the
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crisis, no pandemic at that time then it went public two years later and it had a high revenue two years later and doubled the revenue last year. there's has been a better journey financially where it seems like nikola put the cart before the horse a lot of wishing at this point, i think. >> julia >> but let's get the story straight this is a hydrogen electric company, so we talk about hydrogen vehicles. you're talking about the massive infrastructure in capital needed to build out a huge number of hydrogen fuel stations across the u.s. one of the reasons for this upgrade is that they're rolling out perhaps in a more accelerated way in the uk, but the amount of money you need for hydrogen vehicles versus electric is a totally different story. >> really, julia, this time. i still don't stand corrected.
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>> this is important take a step back and look at who is buying these shares this stock is so volatile, and if you look at the fact that this stock is popular with investors who tend to be younger on the platforms like robin hood, it indicates people are more gambling with this stock and looking at the moves of tesla, as bill said, and thinking about this as more of a short-term play. this is a company that is so pre-revenue, it's hard to make bets on what actually is happening, it's about people trading. >> and there's another big difference nikola doesn't have elon musk, either love him or hate him, he is a visionary. >> i guess, robert, the founder of nikola needs to get busy on twitter? >> exactly i call him the mini musk and there are people trying to draw that parallel. i wouldn't necessarily write him off just because millennials are buying the stock, but this is a stock that's gone from ridiculous to unexplainable in terms of the upgrade
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it's still hard to fathom. >> but so is tesla these days. >> so is apple, some people would say. that really was "rapid fire. that was great thank you, robert frank, julia boorstin and robert griffith we're going to hear from the mpen md leading rv an coontsaker that's next. re. but a resilient business can be ready for it. a digital foundation from vmware helps you redefine what's possible... now. from the hospital shifting to remote patient care in just 48 hours... to the university moving hundreds of apps quickly to the cloud... or the city government going digital to keep critical services running. you are creating the future-- on the fly. and we are helping you do it. vmware. realize what's possible.
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come on in, we're open. ♪ all we do is hand you the bag. simple. done. we adapt and we change. you know, you just figure it out. we've just been finding a way to keep on pushing. ♪ welcome back to "the exchange." while the pandemic has been devastating to many industries, it's been a boon for what i'll call the rural loner trade, rv and boating manufacturers. will that continue let's bring in frank holland for more frank? >> that is the question, will it continue here's what we know so far, shares of leading rv maker thor
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and winnebago also outselling the market in the last few months while people buy alternatives for airlines and hotel stays. lipton says rv makers are saying to him that rv sales could potentially top saelles back in 2017 >> our gauge is listening to the dealers out there in control of retail demand, products flying offer the shelves right now and dealers can't keep inventories their inventories are really low. >> lippert's stock selling at 40% for rvs, 10% for marine.
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we've also spoken to boat sellers like yamaha. they are reporting record sales in may and june. may alone, boat sales were up 80% year over year lippert says he expects sales to stay high in the third quarter >> our customers are ramping back up very quickly, so we're gearing ourselves to be able to ramp the component supply up to supply all our boating manufacturers that are probably going to be building record numbers this summer. >> if you're looking for another sign of investor confidence, just take a look at camping world. the biggest rv seller in the world also sells boating equipment. its shares are 350% higher over the past three months. >> cnbc knows that well. i wonder, what are the broader sort of outside factors that might have an impact on whether this recreation rally continues or stalls out?
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>> you know, john, it's kind of like the best of times and the worst of times for rv makers, especially right now millions of people out of work, but when you look at the other side, the ten-year, a fraction of what it was back in 2017, gas prices just about the consumer confidence, i think it's about where you were. those are the three big factors makers look at when they talk about their industry the ten-year right there very favorable conditions to buy the rv, if you have the money. >> frank holland, thank you. up next, the ceo of a company that went tro tracking fitness to tracking covid-19 symptoms, and how they are helping the pga to keep pro golfers fesa "the exchange" will be right back
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the golf industry announcing today it's going to reschedule the ryder cup and presidents cup, as these figure out the playbook,ed pga tour is turns to whoop to monitor and detect covid warning signs in golfers joining us, will ahmed, ceo and founder of whoop there he is. welcome. >> thanks for having me. >> tell me, how does this work yeah, we know about apple watches, things out there, but your differentiator is having more sensors and monitoring more things how do you monitor for covid-19 symptoms is. >> yeah, we build wearable technology you can see it on my wrist,
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lightweight sensors, metrics like sleep, recovery, strain, more recently and most importantly we've been measuring a statistic called respiratory rate it is really important, because we have seen that an elevated respiratory rate can be a predictor of covid-19. respiratory rate is typically a very boring statistic. if you look at a year's worth of my data, every single day you see the same number of breathing per minute we measure it while you're sleeping yet what we have seen and done a lot of research on this, jon -- what we have seen is when someone covid-19, as early as three days before feeling symptoms they'll have a dramatically elevated respiratory rate it just jumps off the screen 14, 14, every day, and then boom, an 18. >> that's interesting. does that also work -- i don't know if you know this, for people who continue to be
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asymptomatic otherwise or does that tend to be for people who eventually show symptoms >> shall shows up for people who are asymptomatic as well you mentioned the pga tour nick watney, a professional golfer tested negative for covid-19 two days later, he wakes up with this dramatically elevated respiratory rate on whoop. hess baseline was a 14, all of a sudden he wakes up with an 18, he nose something is up. he feels no symptoms he goes and gets a covid-19 test, and he tests positive. if he hadn't seen that elevation in his respiratory rate, he would have been playing all weekend with the best players in the world. so the pga tour learned of this experience, learned of this story, and took decisive action to roll whoop out to every player, caddie, administrator, staff, media, you name it. >> there are lots of different venues that could potentially
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take advantage of something like this, but i wonder, what is the false-negative rate effectively? how many times does someone not have an increased respiratory rate but end up coming down with covid-19 even if they're asymptomatic is there a way of knowing that >> we've been studying this since early mar, we partnered in collaboration with cleveland clinic we collected about 2,000 data points on this we have since submitted research that includes 271 participants what we found is that the respiratory rate indicator caught 20% of cases two days before symptoms. so that's really powerful. that will profoundly prevent the spread it caught 80% of cases by the third day of symptoms. so that gives you a sense for the accuracy of this i mean, i don't want to overstate -- you know, there needs to be a number of solutions in place, but what we have seen is that whoop and
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measuring respiratory rate in particular can be part of that solution. >> and then quickly, if you can, how broadly cost-wise could this be rolled out? could companies adopt this to determine when it's safe for people to come back to work or try to catch symptoms early? >> so we are working right now on a back-to-work business leverages the -- we have about five corporations signed up for this it's moving quickly. we want to do everything we can to help. at the end of the day, everyone should be fighting together to beat this virus. >> well, will ahmed, very interesting. ceo and founder of whoop, sports technology, able to detect potentially early signs of covid-19 that does it for "the exchange." coming up, lowes hotel's howard
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welcome back, everybody. "power lunch" is under way first, a mixed bad for markets appear the steep sell-off into the close, the nasdaq once again leading the way, just off records highs, but earnings season could be about to rock that boat. plus, facebook feeling the heat as it deals with the fallout. that's with the election just months away. we're going to speak to a former executive, in fact he was head of security at


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