saying how excited can't believe, said i'm looking forward to every day -- >> so excited. >> this week really nice. >> ipo -- >> i mean being on here with -- >> and that. >> and that other stuff. and that other stuff. >> give me this, straight to the bank. >> flying. make sure you join us tomorrow "squawk on the street," coming up right now good tuesday morning welcome to "squawk on the street" i'm carl quintanilla with jim cramer, dave faber at the new york stock exchange. big show ahead ceos of ge and raytheon tech, earning from the industrial sector like 3m and u.p.s. roll in apple, google microsoft on deck tonight. home prices bottom of your screen and futures off the early lows as the major indices are on a five-day win streak. road map begins with tesla the record quarter blowing past expectations

elon muck says the chip supply chain challenges remain key to continue growth. >> keep an eye on big industrials. ge, a cash load target on a road to recovery. >> right >> that chinese stock, hong kong's hang seng falling more than 8%, in just a couple of days jim, got a lot of kindling to work with. >> do we ever. >> just talking about the tesla call with andrew you said it would be cue key toe print? >> in the end, targets were raised, people liked it. making a lot of cars and would have made -- this is kind of the takeaway-would have been able to sell a lot more cars had they had more availability and people are going to say that, well, wait a second is demand as strong as he says jie says i trust him. had there not been a chip shortage he would have blown away the numbers david, what i didn't like about it, that's what all the car companies are going to say, and i would have thought -- no

reasr wizardry in the report. >> i wondered on "squawk box," about 6:00 a.m., negative on what he says is slow down to prou pr produce batteries. muck brought up the banken and robbins analogy. what he went on to say, baskin and robbins meaning fewer batteries available and, therefore, things are going to get delayed. >> a lot of what he was saying, difficult, moving parts. again, you know, carl, when i want to listen -- elon musk to tell me, pick-up, orders, and it's going to come in december, you're going to love it.

berlin let me tell you what it's going on in germany. china, i don't know what all the talk is about the slowdown none of that instead, hey, got a semiconductor shortage and -- then comp's tempt for analysts and love for the people, power to the people call you know david, he likes to do that let's have fan boys in and the fan boys ask questions my takeaway was, okay. it's hard to -- okay there you go, instead, jim, instead of the things you were hoping to hear he talk and chips. the more interesting sound bite is the one about apple, not necessarily calling the company out by name, but referring to their overall business model as his personal view of it. this is what he said -- >> our goal is to support the advent of sustainable energy not to create a garden and use that to bludgeon out kcompanies,

which is sometimes used by -- [ cough -- some companies. >> he's hilarious. an apple joke on him a company that knows ho you to make a lot of money. tesla knows how to make money, but anyone can use the charging station. i come back to the idea that you never want tesla to be another car company. because then the magic is lost. >> right i wonder if he does see apple as an eventual competitor when you walk into a car these days, the operating system, what you've got in front of you is as important as anything and the ease of use. that's only going to grow as we get closer to full automation. >> right. >> where, really what is it about the car that you care about? ar what distinguishes it >> well, look, you're right. >> you wonder whether apple will eventually make that move becoming closer and closer to the user experience with technology >> the king of intel is talking about doing amazing things with

mobile >> king of intel what you call -- >> the ceo he's the king. >> oh, he's the king >> he's the king. >> didn't know that. >> only of intel not king of chips -- not yet i like pat like to have a little fun with him but in the end, mobile might be real. promising me we're going to drive around new york driverless so maybe he's ahead of musk. maybe jim barley, related to chris farmee, maybe jim farley is ahead of musk when it comes to the mustang ev and lightning f-115 being the greatest selling pick-up, pick-up has a thing in the back. >> you think the population of would-be competitors is broader than european luxury >> exactly and maybe pick up a lucid fisker. >> $45 billion market value on lucid. >> everybody's -- prices are all wrong. united parcel really down 14 kidding me 16 what did she just say.

>> did i mention a $45 billion market -- >> it's high. >> some people are confused. 1.6 billion shares it's high. banking on them being a true and serious competitor at the high end. >> and enthusiasm. see what these things work until they don't i mean, for instance, amc. i happen to absolutely love amc. all right? and i think that adam is doing everything right, but -- >> thought you were talking american motors? >> oh, i like that the cars. >> suddenly -- talking movie theaters >> magic stocks, and magic until you get to what they actually do then, is it as $20billion stock? amc? they have very few -- eyeunited parcel is stunning. >> you're paying a lot of attention. beats, revenue up 14 revenue guidance, jim.

no eps guidance. >> revenue growth is sub-par 5.4% that's not what i was looking for. nowhere. and i intend to not commit suicide before i film. i do think when you look at that kind of drop it's the most, that's the most glaring drop, and i think, i was going to say it's upod, under promised, over delivered, but that's quite a stunner. for a company that's earned -- that -- you know what? you know what is a stunning thing? when you get a stock that's suddenly a strong yield and stock going down not what you want. >> no. right. to be fair it had a great move. >> it did. >> hard on the -- >> no. you're a fair person. >> of the strength of this business. >> right. >> but -- >> okay, let me go back to what i'm talking about with these -- even the meme stuff. like, say a ryan cohen, savior

of the gme -- in fact, like baskin & robbins, ice cream cones. looked at things and we can earn 50 cents next year 50 cents. >> right. >> that would be end of the whole meme thing. >> it would. >> and what if another comes out i absolutely love what we're doing. we won't make money until 2025 that ends the magic. what i'm saying is that elon musk ended the magic yesterday he sounded like another car company. just another car company making a few more cars. >> making a lot of cars, though. >> well, making a lot of cars but not compared to gm and ford. >> sell 1 million cars in the not too distant future pretty good for the year. >> play devil's advocate play lucifer fo a second. >> okay. >> i think the reason why i'm saying these things is because, see, the stock's up $6 not up $60 or $600

not the old days if we talked about the magic, it would be at 60 instead he's talking about earnings. >> right. >> and hurt a little by chip shortage and make as funny joke about apple. >> welcome to the oem business. >> exactly manufacturing is hard. tell that to ge, who's trying to get out of it. aerospace. talk about that -- >> i didn't need to hear -- >> i can go get a good tool and dye man if i want to hear how bad manufacturing is all right? >> we are going to talk to kulp. ge, 5 cents beats 2 cents. revenue ahead. nice swings in organic revenue and orders from q1. >> i like the cash position. i like what i think is a health care business that is a gem. that's reasserting itself as a gem. i think that, david, wind, not emphasized enough, i think

when we talked to larry, but aerospace, looks like that -- that the airlines have money and they want to make their -- they want to surface their planes because they got a lot of money from the government. >> they did. interesting. almost -- the numbers from all four businesses in terms of revenues were roughly the same av aviation, perhaps, used to, outweigh all of them $4 billion plus. right. they raised guidance. >> says that's a coincidence norc . >> no. how quelly weighted. my points. >> one of the great thing about health cares, mri, whatever, maybe z, but they're a dominant company. i like the fact that the company looks more and more like a company. you know >> as opposed to what? >> adjusted -- remember when they used to have like, a, b, x,

y, z. >> a great deal of complexity. a lot brought up by capital for many years. >> right. >> still a level of complexity here. >> what do you think that masked, david? >> excuse me >> what did that mask? >> always a question go back 20 years or more now. >> i like the fact ge beats a lot of other companies it's got free cash flow. talks about -- >> wants to be viewed that way here's quote, transforming to a more simpler, focused high-tech company. >> right >> it's a good message and we'll talk to -- >> talk is up nicely how it's not that hard to manufacture wealth, con the contrasted with musk talking how difficult it is. >> can we talk china a little bit? >> oh, thank god you brought that up. >> because i haven't had -- do that after the break we're saving that for the b block. i wasn't sure. >> your point about aviation,

pertains to ge raytheon. >> there. >> and jetblue, really didn't have the land mines you might expect. >> the delta variant, given that. >> and raytheon, same way. we talked to gray, going to say, listen, delta variant, we're not seeing it. ge's not seeing the delta variant. i mean, look what we're seeing delta variant. trying to tell us about the delta variant. unfortunately, if you have the delta variant. >> if you haven't been vaccinated. >> hmm >> you get the delta variant, you've been vaccinated, you might have agents bit of a cold. >> you getting political >> no. nothing political about it that's point he's making. >> that is the problem, everybody. >> don't bring up something like that and don't talk about -- >> who would have ever thought >> politics of life and eath very difficult here. >> and where we would be as a nation h. an inkling. >> you're anti-sickness, are you? anti-sickness. i have no room for that. when we come back this hour, we said. ceo doubleheader

jerry kulp and greg hayes joins us live. really important futures, five days up. if the nasdaq does it again today, longest sing july and august of last year. more "squawk on the street" in a moment. ves fast on market events. alerts that's decision tech. only from fidelity. ♪ ♪ experience, hyper performance

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year remarkable. >> it has. obviously, not all names created equal. go over there, some battery companies, for example down, but not down dramatically. conte con te contemporary, kun name hit trying to understand what is difficult to fully understand, xa c exactly what the end game is here does this go on and on is it reminiscent of previous sort of hammer blows from the chinese government where they back off eventually, jim, and then there's an opportunity. some people citing for example the move made against the gaming companies a number of years ago. looked like death blows at first. then they backed off and investors able to re-assess prospects, or is this a different dynamic at this point, where, you know, xi, the president for life, is basic lip

saying, i'm in charge. you're not listening, not raising caste over there as in the united states. you're a chinese company, we want full control of what you do and how you do it. >> well, i think when you look at, you make an industry a for-profit industry into a nonprofit industry, that's confiscation i sometimes wonder is he picking on the companies that have big positions in the united states? >> yes i think he is. to a certain extent, he is. >> i mean, yeah. so many different things somebody else saying, listen, trying to figure out what the benefit to society is of these new economy companies. some people, what we're doing here, too, sometimes maybe coming up with, not much. >> maybe they don't like the fact larry chen is worth, i don't know,s $25 billion $18 billion. now worth $250 billion i don't think they like billionaires it's a communist country billionaires are kind of blaring. did you see education called final toast? >> education companies are

basically going to be become not for-profit. >> did you see the price targets? one, gotu -- from 97 to $3 a reduction. >> absolutely crushed, carl and hopes, chinese will start having more children because it's so expensive to raise kids and trying to figure that out. >> who has the money their society is similar to ours amazing, because it's communist. if you have your money you can get your kid to have better tutoring than other kids kind of like our country they don't want it to be like our country. right? our country, the rich kids get tutored, go to the good schools. china, same thing. xi doesn't like that good for xi! >> and outside an education center having to pivot to corporate learning, and one-on-one tutoring rather than classical teaching. >> i need to know whether he's picking on our companies >> well i don't know listen -- >> you know, you and me -- tencent or alibaba, issues

you see an $8 stock after going public. >> and talk about how these are fantasy football names >> yeah. >> fantasy football, take that seriously. i mean, fantasy football is, it means these are not real -- they're not -- you don't own a piece of these you are -- >> right that's the vie structure you're talking about. that's another issue here, just trying to grapple with the idea of, okay is it ever going to be safe? or am i done >> do you cease making these -- these are no longer woodstocks xi's selling them hand over fist. >> five straight days. right? >> endless how much does -- >> raising capital -- >> look at that. >> in hong kong is not as easy a discount. >> yes. >> it's further closing the door between the two countries in some ways. >> i think very much aimed at us i think xi, talk to greg hayes,

raytheon, but this is, it's like a full-court press wherever we deal with, whenever we deal with xi. >> not recommending buying itty-bitty chinese stocks? i would say, take a pass. >> take a pass >> take a pass >> okay. when we come back, as jim said, live interviews with the ceos of raytheon and ge. a lot to talk about. cramer's "mad dash" and the opening bell in ten minutes. that building you're trying to sell, - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you can close with more certainty. and twice as fast. if i could, i'd ten-x everything. like a coffee run... or fedora shopping. talk to your broker. ten-x does the same thing, - but with buildings. - so no more waiting. sfx: ding! see how easy...? don't just sell it. ten-x it.

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all right. get to a "mad dash" with jim seven and a half or so minutes

before trading our viewers now you do not like -- >> well, yeah. if you have something -- you don't have to speak bad of companies. you just give the facts. >> okay. >> now, at&t report add so-called better than expected quarter last week, but the stock went down. so i don't regard that as better than expected. i search for reasons man searches for meaning very good book what i come back with, a piece today, excuse these, really having trouble with reading. and at&t to hold in anticipation of dividend cut as the company sets assets acquired in the last few years. management, the key, management has assured investors at&t will maintain a dividend in the 90th perc percentile the math just doesn't work. >> okay. >> that's the longest we ever got without a sound!

>> i think -- >> may be a record for you in general. >> yeah. it is. when you finish a shoot they say, we need ten seconds of room tone i always interrupt that. >> that made me very uncomfortable. >> that was the point. because, you know, david, people were in the stock for the dividend they were. >> you said that many times. we know the dividend, once the deal with discovery is completed, and spin-off of hbo and warner is completed, we know the dividend is going to be cut. we've been flewthrough that this is reflective of that. >> i was trying to explain why -- david, have you ever climbed k2 second tallest mountain. okay most dangerous right? the famous right side. what you've got, someone explaining, look, doesn't matter people have to get ready for the smaller dividend and after that, i have nothing but good things to say about it. i'm done. >> and hold the base to a certain extent conceivably make

them more competitive in the wireless wars, they are so-called between team mobile and verizon. >>net next thing they're going to get into the parcel business. >> you can't get away from that one. >> no, i can't you get stuck in the eye with a red-hot poker, it has an impactants jim will have a lot more on u.p.s. opening bell is moments away and joined by chairman and ceo of ge larry culp "squawk on the street," coming rit ckghba

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>> announcer: the opening bell is brought to you by -- working our way through industrials this morning talked about ge and raytheon talk to the ceos in a moment 3m is worth watching 259 beats 228 revenue ahead, organic up 21, jim looking for 17 they raised the guide. >> yeah. i guess people are looking versus 2019. look, i liked, sometimes, have to be on the call. stock up, looking great. and went over the numbers. numbers seemed solvent a lot of divisions doing well. obviously, some people interpreting what's said as

negative we've got to find out more i do think 3m has a lot of the visions that did not seem challenged to me, but i have to hear it. no different from when i read the u.p.s. quarter upgrade and on the call obviously, we find other things david? >> i haven't listened to the call, so -- agreed taking a look at earnings report -- >> great they looked great. >> not necessarily get a negative response. we'll see. haven't opened yet. >> and saying, with mike, seemed solid to me. the only one of these stocks that's really up is ge, because their ge did some things that genuinely made you feel better about how the company's doing against i don't know we got to talk about 3m and find out more about that. >> certainly, seems to be an air of you raised the guide.

because the first half was so strong maybe not because you're so bullish about the second half? >> right right. >> i think that there's a lot of american companies that are reporting, now dealing effectively with nothing actual. talking raw materials. raw materials interesting. talk to larry culp about raw materials but 3m is talking about raw materials, and covid respirators remain the slower -- i -- i bet you end day you're going to want this thing, and some overreaction overreactions. people just saying, i want clean. >> by the way, opening bell here at the msnbc realtime specialty chemicals company solutions at the nasdaq reautomotive celebrating a recent listing via spac, jim you mentioned cost pressures sherwin-williams sort of hops on

the ppg train talking input costs and slow down in do it yourself hasn't been a great quarter for paint. >> sherwin-williams had preajounp preannounced a lot of things saying the do it yourself people aren't doing it themselves as much as the professionals, who are thought to be home and garden, home depot why? because listen to what d.r. horton says and talk to home builder in general, we're at . building homes we're going to go to 2 million we go to 2 million you don't want to sell lowes and certainly not sherwin-williams, although there the real costs are not great. look, ppg started this all right? look where ppg stock is, you're hard pressed to see whether we don't find, ah, it's not as much of a killer. but 3m says costs are higher why do people freak out when that hear that, david?

everybody knows that it's called inflation. >> yes, well, because they think, perhaps, it's here to stay and they're not sure -- how much prices they can get in the marketplace and, therefore, marginseneder pressure. >> kay shiller just this morning. up 16.6 in a year. biggest increase since data began, in '88. >> i mean, can we accept the fact that the world changed? i mean, there's a lot of -- a lot of what i think is kind of -- closed-eye thinks. eyes wide shut we have a world where we suddenly don't have to go to th office am i boring you. >> not at all. >> why >> because you yawned. >> no, i didn't. sorry. i didn't yawn. >> maybe it was just a "ah." >> awh. >> when i have a world -- listen to me. >> i'm listening even when you're not talking i'm listening. >> that i like ed world change. now you can live in your house

>> work in your house. >> work at your house. what happens is -- you have to do it yourself, fix that house so you have an office. that's not going away. in our, the new homes will have offices but every older home is not designed for covid so why would you get off the -- the diy bus so early >> interesting xerox did have a comment about return to office this morning. they talked about page volume growing in q2 saying our plan assumes most employees will begin office work by the end of the year q3, most by q4. >> would be unbelievable meaning that dr. gottlieb was right and we're hitting peak covid right now. that would be great. >> that would be great >> that's right. >> that would be great. >> going political again >> i'm not -- >> the next guest. >> oh, my god. >> let's do the next guest this guy to my right just said,

shares of ge are up. seen that this morning you can see it right there about 3% the company beat earnings expectations analysts who follow it also posted positive free cash flow for its second quarter. joining us now, first on cnbc, larry culp larry good to have you feels like a while go to the big picture if i can a quote from you this is what you want people to focus on ge's transforming to a more focused, simpler and stronger high-tech industrial company that's what investors certainly want what can you point to in this quarter that says you're accomplishing that task? >> david, jim, good to be back with you david, there's a lot in the second quarter results the ge team posted today i think speak to the transformation. orders up 30% year on year services, which represent half of our revenue, were up 50% versus a year ago.

revenue's up 7 operating margins expanded 1,000 basis points organically and as you noted, positive free cash flow, which was something we weren't necessarily expecting just a few months ago. look at that on balance. i think the underlying improvements in the business and i would argue we've got improvements in every wone of o businesses helped drive that and think about the rest of the year this morning taking up free cash flow guide 3.5 to $5 billion in terms of free cash potential this year. a lot we're proud of the ge team had a good second quarter, a good first half a lot more to do with these businesses, no question. >> yeah. aviation certainly is one where people had been concerned for obvious reasons. you say, know, on the call, you said this is, well, you're confident in your path to recovery in aviation what gives you that confidence, larry? >> david, what we look at every morning are departures around

the world by region, by engine platform and what we've seen for early months here is the u.s. recovering you heard from all of our airlines, ceo, customers last week relative to those trends. we see europe slowly, gradually coming back here of late as well china is just off single digits from where they were in 2019 so the key markets for us around the world are improving. we see that knock-on affect in our shop activity. the core work we do in aviation services business. we saw shop visits improve sequentially in the second quarter compared to the first and we think we'll see continued sequential improvement into the back half. clearly lots of things we all have our eyes on inclooding the delta variant nap said looks like the leisure traveler is back, and business travelers are not that far behind. hopefully on balance gives us optimism and confidence about our aviation business. >> larry, it's jim when you talk about the business

traveler coming back, i'm not getting that is that -- look, i thought the quarter was good just want to follow-up on what you said i see that the regular traveler is on fire, though 2019 numbers are being beat, and what that seems to generate for you is a lot of cash can you talk about cash? >> well we talk a lot about cash today at ge, rest assured. clearly, the aviation business generated more than $4 billion free cash in 2019, that's a key part of our cash story that's largely in our services business, and as we see those departures accelerate, in turn or shop visits improve, that gives us an opportunity to increase our cash bailings to our customers. it's really that pay by, powered by the hour model. obviously, hurt us last year when planes were not in the air, but as the planes fly, that's good for us but it's not the only way in which we are driving

cash in aviation and frankly across the company we talked a good bit on the call this morning about the lean driven capital improvements we see. trying to be more official and disciplined with capital expenditures as were ela lot of small things, cumulative effect, jim, helps us drive the cash performance you see in the second quarter increase in the guide, for the back half. more importantly, that high single free cash margin we talk about our ambition over the next several years. >> a lot of that free cash margin, just seems like you're becoming better the what you do. not like, there are a lot more orders or aerospace is on fire seems you're a much better run company than you were? it's the gross margins generating a lot of this cash. >> a lot that goes into it, jim, but no question the teams, i think, have done a tremendous job the last several years really improving our operating discipline day in day out. it's the small things in terms

of reducing what we see in our aviation repair services reducing inventory in health care being quicker to collect a receivable with various parts of our power business all contribute to this improved overall operating performance, particularly with respect to our free cash. >> larry, some broader questions for you from me in terms of the supply chain, and raw material prices you know, you did deal with it a bit on the call, but, you know what are your expectations when it comes to electronics? when it comes to resins and when it comes to simply cost? >> women, david, we're certainly seeing, i think, what many other industrials are seeing with respect to semiconductors, resins and the like. we took measures through the first half i think by and large mitigating those head winds so that we can look at our margin expansion and not lay off too much of that to the

inflationary pressures we're all dealing with i think as we look at the second half we know we have to redouble efforts across the portfolio, because the shortages, which impacted more our deliveries than it did necessarily our margins, let alone the inflationary head winds are going to be there. but on balance, there's so much, back to jim's earlier question, improvement in the way we buy. the discipline with respect to the way we operate, that all of those cost reductions on balance help us mitigate that activity in addition, of course, looking to make sure we push price where we can, particularly in our short cycle and to a degree in our, some of our service businesses as well >> yeah. the, you know, china the not an unimportant market for your company. i wonder if you're concerned about just what continues to be rising tensions between our two countries? recent moves by the government in china, of course, to really tap down the ability of their companies to access capital markets outside of the home market is that a concern to you at all? >> david, it's certainly something we're watching

china is an important market for us nearly 10% of our sales come from china we've had a very strong first half of 2021 in our health care business in particular i mentioned earlier, departures in china have returned more rapidly. really more so than anywhere else in the world. good for our aviation business there. we're fully engaged, smartfully, smartly, thoughtfully, and as a local competitor, or a local company as best we can and want to continue to serve the chinese market to the extent that it's possible >> finally, larry, just wanted to ask a question about compensation almost a year ago. the board decides your comp. we all know that but your shareholders didn't seem particularly happy with it. almost a year ago, august, i think, 18th, they lowered your target performance share vesting from what wa 1240 to $6.67 a non-binding resolution shareholders opposing that what do you tell the

shareholders why they should not have done that >> well i think a year ago, david, the board extended my contract i was honored to have the opportunity to be on this team and i joined nearly three years ago, and obviously, delighted the board has confidence in me to continue to lead the company, into the future. >> all right >> a good last question to ask. versus, say, larry, the lead question, which set the tone >> great, larry, i get reviews of my interviews in realtime from my colleague! larry, we look forward to seeing you in-person one of these days and certainly appreciate you're always joining us. >> stock's going up big, by the way, because of a stock split. reverse. >> right >> all right, guys. when we come back, an exclusive with raytheon's greg hayes getting a lift and turning into a tough take. dow's down 216 all sectors red. all but three dow stock, red

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and turn this nasty tape around, raytheon technology is trading. remember the old utc, and beating estimate and raising 2021 outlook, it was clean joinings now, exclusive interview, raytheon's ceo and chairman greg hayes. we always love to see you on "squawk on the street." >> thanks for having me. yeah it's always nice to be able to chat with a friend >> called me a friend. >> yeah. >> dave is not a friend, but i'm a friend delve right into it. you seem to have an incredible aerospace business it's also as if the airplane companies, the airlines, are spending a lot of money. maybe it's the government money,

to be able to get the parts that they need, that is a pull-through versus where we might have had basically a recession of orders? >> you know, it's a -- an odd recovery here on the commercial aerospace side typically, we talked about this before where we see a recovery and revenue passenger miles or rpms. about six months after the return of traffic, the airlines, then had the financial wherewith all to start buying parts and overhauling engines doing all the things in es to meet the increasing demand. in this case what we have seen is a recovery in commercial aftermarket on top of even or even ahead of recovery in traffic. caught us a little by surprise a good news surprise it's accelerated a lot of aftermarket activity into the second quarter, but it is different. again, i would attribute it to two things airlines see the demand coming and just as importantly, the government support airlines had around the world allowed them to

be in a position to actually spend money to get the planes ready. that all bodes well thinking about the seconds half of this year as think recovery continues. >> well, talk defense. raytheon, a huge business. didn't think particularly at the time that well run, but when i look at, say, lockheed martin yesterday, jim, a real good hand, not a great hand why? because they're f-35, something you don't have that much involved with, your defense contracts are uniquely 21st century. if we do have a cold war or heaven forbid a hot war with china, can you tell us about how the war will be fought versus how we used to fight wars? >> i think what you have to understand is the war of the 21st century will first are fought in cyber space and then in outer space you won't see a land war in asia you don't need main battle tanks

or troops on the ground. it's going to be fought, first in cyber space and then outer space and then on the sea and then in the air. i think where uniquely positioned again, we are, i would say, platform agnostic. the best sensing systems, defectsers or missiles, the best com systems and we can play across all of the portfolio, whether on the navy side, whether it's for the air force, for the army it's all about protecting the troop on the ground. protecting those ships on the sea. again, we have unique capabilities, and it's going to change, though i will tell you. i mentioned this the other day, that, you know, we talked for the last 30 years ar stealth technology well, stealth is interesting, but with the new hypersonics, speed will trump stealth i think that's important to keep in mind and we are very focused on how to defeat hypersonic weapons? be that space based or lancs

land-based missiles. the technologies we have to defend the homeland and also ships at sea i feel very good about the portfolio and where we're making those big investments. >> greg, you said no land war but then a lot of this used to de defend forces on the land. i just want to fully understand -- no >> look, again, the reason you have this superior defense technology is to such a strong hand that no one would bear to do anything. we're talking about defending the continental u.s. by an attack via a rogue missile or some type of hypersonic attack we're talking about how you defend forward air bases, the army's responsibility.

talk about how you defend against any of the new weapon's systems. how you defend yourself from space. the goal is to take out satellites how do you replenish and protect those. those are the technologies we're focussed on. >> back to something less worrisome, but still a worry, business travel and aviation we had one of your competitors on he seemed sangon what about the commercial side >> leisure travel has come back, i think, faster than anybody expected but not surprising given the pent-up demand it makes up about 70% of the revenue passenger miles. business travel is the other 30%. we don't expect all the business

travel to come back before 24, maybe even 25. we've all learned to work remotely we've learned how to do that efficiently and i think that's going to keep a lid on business travel we need to be out servicing equipment and supporting customers. that path, i think, will come back relatively quickly as the world opens up but i think the other half is going to be slow to recover, as people have found different ways to be productive and -- the good news is revenue passenger miles are going to go up 5% a year you'll probably see the leisure portion of the travel become more than 70%, maybe 75 or 80% i think there's still going to be a demand for aircraft and

aircraft systems and we're well positioned there >> very quickly. you have a unique view on air bus and boeing it does seem they may be doing better >> clearly air bus has a good hand with the a-320 family of aircraft and they have been trying to take advantage of where they are in the marketplace, in terms of having a, i would say, more modern aircraft than the 737 737 was designed in the early '70s and hasn't had a new wing but does have new engines. boeing is at a bit of a disadvantage, especially given some of the challenges the max had. we expect max production will ramp back up i think they're talking about going to 31 aircraft a month

air bus is talking about going up to 70/75 a month. we're prepared to support both great companies. again, air bus today probably has a edge with the a-320, especially with the a-321, the extra long range, i think introduced end of next year. clearly airbus is doing well >> really quick. in light of what you said about corporate travel, does that have implications for what some hope is a graduation from narrow to wide body? >> clearly if you think of where the world is today the narrow body, which is where we play on the engine side, has recovered about 70 to 80% of where we were. but wide body is primarily a business-class market and that's the piece that needs to recover more quickly

again, that's why we're a little bit sangwin. >> thank you for being honest about business verses leisure. we keep hearing it's around the corner great quarter. thanks for talking to you. all the things, all around you... where you learn, work, and fly...

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i think we know who's on "mad" tonight. >> of course one of the great companies in the world logitech, the first time it looks like people are not liking it after what happened with hasboro here, you have to think we have something good cooking here. but i guess two out of three ain't bad. >> "mad money" 6:00 p.m. dow session was down 259 we're off of that.

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welcome back to "squawk on the street." live with breaking news. our july read from the conference board consumer confidence. the headline should be about 124. it's better. 129.1. this is the best number since february of 2020, which is precovid very, very solid

and remember, anything over 150 is good. 160.3. 160.3. best since march of 2020 right as covid was hitting and if we look at future expectations 108.4. anything over 100 is solid finally, manufacturing fed index, we're expecting 27, which is second best the high read was 29 and that was in october of last year. this is the next best. so, these are solid numbers. and this morning, on home prices, we're at record levels carl, back to you. >> thank you very much good tuesday morning, everybody. welcome to another hour of "squawk on the street. got a bit of a dip at the open dow session low early was about

260 points to the down side. we'll see if the consumer confidence number helps. >> nonetheless, we're 30 minutes into the trading session here are some of the big movers we're watching the fed policy maker is kicking off their two-day meeting today. we'll keep an eye on yields. they'll way monetary policy as well as jerome powell's news conference later today you can see the 10-year at 3.2% of that. and along side a full-year guidance boost still about down 2%. after reporting a billion dollars in net income for the first time -- actually, they're down about 2% now. here with a breakdown of the quarter. phil

>> and almost every analyst, they all use the same words "strong', "definitive quarter" "sets the second for the second of the half year." by the way, that's a 10-fold increase compared to the second quarter last year. net income of $1.14 billion. and gross margins better than many were expected and they came in at 25.8%. so, the analysts have strong commentary here. but it's the forecast for the rest of the year that people will be focussed on. you got to look at the cyber or giga factories being built one in germany and one in texas. and in texas, they get a little better guidance. they will start model y production in texas this year.

they will start production this year what happens after that? then they move into production of the cybertruck, after the model y. whether it's this year or early next year remains to be seen but the cybertruck will be built in austin. if they don't start this year, i'm not sure that's a huge disappointment in the eyes of wall street but something worth noting take a look at shares of tesla, verses general motors. last year tesla delivered just over 500,000 vehicles. general motors, 202,000 vehicles were how many were delivered last year. that number is going to be increasing for general motors. they're seeing a lot of success, particularly in china. so, you'll see the gap between the two close a little bit but shares of tesla down a little bit

we'll hear from general motors, by the way, when they report their 2q numbers >> thank you shifting from one company, transportation, to another and take a look at shares of ups. down 9%. thanks in part that ongoing surge in e-commerce deliveries and the health care shipments, things like temperature-controlled vaccines as well it said due to, quote, market uncertainty. despite the fact that we did see the international segment jump 30%, in terms of revenue that was boosted by europe. it was domestic. u.s. domestic unit metrics, which grew 10% in the quarter from a revenue standpoint, but missed in terms of domestic volume that's what's in focus right now.

given the fact you're seeing higher prices in u.s. domestic but lower volumes. and that's seen as a disappointment today, that said, company does seem to be making progress towards improving profitability towards its segment, sort of outlines what ceo has outlined as the bigger strategy and fedex is trading lower kind of reminds me of what we're seeing with the u.s. oil producers too. the focus is always on production, rather than prophetent with companies like u.p.s. and fedex, they said we're not going to put as many shipments and packages through our system and potentially sacrifice the service times. we're going to be much more disciplined, keep a greater focus on pricing and profitability.

in a sense, that is kind of what's happening here. >> the better not bigger has been controversial in recent quarters this is going to take you back too, essentially, late april in terms of price action. it does show how hungry the street is for any kind of guidance in the second half. >> and when it comes to ge guide nsz. some seem happy. the company did, as i said, increase guidance for cash flow. low end goes to 3.5 billion. we did talk to chairman and ceo the last hour on "squawk on the street." and he detailed concerns around supply chain pressures, raw material prices and the like and what that will mean the second half of the year >> we're going to have to redouble the efforts

let alone the inflationary head winds are going to be there. back to jim's earlier question, so much improvement in the way we buy with respect to the way we operate that they help us mitigate that activity >> overall, morgan talking, obviously, quite positively, in terms of orders and revenue returning to growth at the company in particular. >> a big focus certainly that recovery we're seeing take root in commercial aerospace. talking about after market taking them by surprise in a good way also the defense piece of that puzzle, i thought was interesting too. this idea of future wars, conflicts fought in cyber space and outer space. >> you may have heard that

before but a lot of people reacted to it on twitter >> this is a big bet by lockheed martin as well radar systems that are space based. these are the flash points and where you see future defense theres going to. even ge has a defense portfolio down the list. those are going to be more in focus, especially as we get the defense names. >> meantime, the imf releasing the world economic outlook today. hey, sarah >> hi g morning, carl. and good morning, gita >> thank you for having me >> so, you keep global growth, the forecast, at 6%. but emerging markets get a down

grade and economies get an upgrade. talk about how stark that is and how ishaping the whole economic outlook. >> that is the message, which is wide global growth is recovering and we don't have a change in our numbers for overall global economy. a sizeable upgrade for -- and in terms of the vaccine gap, we have about 40% of populations been fully vaccinated in advanced economies and in low-income countries we're in the less than 1 to 2% numbers. the other source of the big divide is in terms of fiscal support. while they continue to have fiscal policy, there's sufficient support in the pipeline for many emerging markets. that's been pretty much withdrawn this year and we're

not seeing that much come in for this year and next these are widening the goop. >> so, based on the path we're on right now and the slower rollout of vaccines and adoption of vaccines in the emerging world, what's your estimation as when they get to the pointed where they can get past covid-19 pandemic >> well, at this point there will be some emerging markets. countries like china, for instance, that's going to have plenty of coverage this year itself their target is to get to 70% coverage this year and so they will get there but for the vast majority of countries, and especially in africa, that is where we're seeing very small levels of vaccination and going to take until the end of 2022 to get to any decent levels of coverage. so, that's a long time period.

>> wanted to talk about the u.s. the consumer confidence number came out highest since february 2020, prepandemic. with your pretty rosy forecast, is it your assumption that we're four times the number of cases we were. does not pose a significant threat to confidence and the economy in the u.s.? >> our projection for the u.s. is 7% growth this year and 4.9% growth this year so, these are very high growth readings for the u.s and we've seen demand come back strongly and confidence in line. i'm not surprised with the consumer sentiment numbers that have come out. the uncertainty remains that we're not out of the pandemic yet. we are seeing cases going up pretty sharply, even in the u.s. but because anyone who wants a

vaccine can get access to a vaccine, the strategy has to be to push more people to get vaccinated at 50% being fully vaccinated, that is not enough to get anywhere close to herd immunity. again, as long as we're not seeing a big spike in hospitalizations or deaths, we think that it might have some negative effect on the economy, but not a reversal or a drastic slowing down but that is an assumption so far. >> you're also pretty optimistic about proposals from the biden administration i think that is why you res have your outlook from 2022 higher in the u.s. what are you expecting in terms of the number of stimulus and when because doesn't exactly look like this is taking off in congress >> a lot of uncertainty. and when we were making our assumptions, there is more

certainty than now at that time t was that there would be these packages in some form or shape in about the same scale as has been originally proposed so, we have the split up between the infrastructure and reconciliation bill. again, if these packages are put out, then we have about a .3% upgrade. that's growth. >> the u.s. this year. which is in our forecast this is -- has been kicked to growth numbers given the uncertainty and that the ultimate numbers could be smaller, there are down side risks. >> another one could be on the inflationary front you agree it appears transitory. you do note the risk that it might not be

so, i'm curious as to what that looks like if this does go well into 2022 or longer, what do you see for the fed and what's that going to do to the global market and economy? >> we're seeing really normal recovery in terms of this big pept-up demand that's coming out, at the same time we're seeing supply chain bottle necks. and the combination is feeding price pressures. a lot of this should be transitory and at least, when you look at wage growth, even though you're seeing sectors where wages are climbing rapidly, like in hospitality and so on. more generally, you're not seeing wide-spread wage growth and if you look at any terms of medium term number and going down to the end of

next year at 2.5%. if it turns out we have much longer lasting supply and that's keeping the consistent inflations are moving, that would require the fed to move much quicker than timelines or anything the markets are anticipating i think pretty damaging consequences for emerging markets that require financial conditions to stay sangwin at least for the foreseeable future >> i want to get your take on china, which is cracking down on u.s.-listed companies, its own companies, that is it's been tense when it comes to trade negotiations, human rights issues i'm wondering how much of a head wind you think that is, given the stand off only appears to be

getting worse between the two largest economies in the world >> the u.s. and china together make around 40% of the global economy. so, tensions of this kind, absolutely, pose a head wind we need everything going right to keep this recovery going, to get the whole world back out of this pandemic. this will be really unfortunate to have all these kinds of additional tensions popping up between the two largest economies in the world we need more trade, more intellectual interactions. all of that benefits the world yes, there are things that need to be fixed. the global trading system is far from perfect we need to make sure industrials are well regulated again, it's not very helpful for the world economy, when you have the two largest economies not really working together. >> that's enough thank you very much for joining

us to talk about the risks and outlook. we appreciate it >> sarah, thanks very much looks like we are going to get an update from the cdc this afternoon on masks hey, meg >> reporter: hey, carl, according to sourcing from nbc news, as well as us, we're hearing the biden administration is likely to come out with a change in mask guidance, recommending that even fully vaccinated folks, in certain areas, wear masks indoors. this would be a reversal from the cdc's guidance that anyone fully vaccinated doesn't need to wear a mask indoors and coming from new data suggesting that even fully vaccinated individuals may carry high loads of virus, high enough that they could be contagious to other people it's believed the majority of the transmission is being driven

by unvaccinated people but because of this new data saying vaccinated people can transmit the virus, we expect to see that giddance from the cdc and administration today we'll bring you any details that we get but this shows how much more of a risk the delta variant and how highly transmiscible it is >> as we head to a quick break, here's a road map for the next hour is crypto ready for the latest crackdown? and on the heels of strong results, pfizer joins us next. and finally, florida's corporate tax giveaway a look at how the sunshine state inng the corporate tax giveaway how? they have a better finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster?

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okay take a look at pfizer. raised its outlook for the rest of the year. joining us is the ceo of pfizer. been in that job almost exactly a year, haven't you, frank >> yes thank you. >> obviously off of a very strong quarter anyway you slice it, i think analysts are talking about any

number of different things that they like. what would you want to focus investors on, in terms of what you've been able to accomplish in this quarter? >> i think we came off of last year with double-digit growth. and we continue to grow very strongly i think the top line adjusted revenue growth of 20%, we had operating margins expand 5/10 basis points, operating income of 41% and eps growth of 47%, driven by a strong top line. and there's still spotiness and uncertainty in the world, obviously. but we feel our business model is definitely taking hold. we've made a bunch of announcements about the movement of digitalization and how it's in a manner it's never been

handled before so, we feel strong about the future too >> and your ability to try to compete with the likes of square clover, your business for small businesses what is the future there what do you like in this quarter? and what are the expenses going to be associate woud with the m you're making on square? >> we built clover from scratch with eight engineers in sillicon valley and now we have hundreds of developers all over the world contributing to it i think the main issue is we continue to invest in it we like to innovate. technology is the base of what we do. you see us talk about how surround solutions and at-marketplace so, we will just continue to grow clover.

i mean, our gpv growth was outstanding. continues to be very, very high. and with 184 billion of annual gpv, we think investments will pay off very, very well. we ship more clover devices this quarter than any other quarter before some of that is driven by new business formation and some by partnerships you can tell it's continuing to invest >> thank, it's morgan. the read through you have with your company and data collected on consumer spending, how sustainable is to think we're going to see consumers out making the purchases they are and at-levels they are >> we continue to see july perform fundamentally a bit stronger than june

and obviously last july was the reopening of people being able to get out so, a high year over year compared the real thing is the consumer yields strong consumer confidence i think, you know, there is the variant out there. so, if we have concern on the other hand, consumers with ecomand mobile and digital have figured out and business owners, which we have enabled many of them, small to fall. have figured out how to conduct commerce, even during times in a pandemic so, i think it's going to maintain the rest of the year. >> finally, what about new

business formation it seems to have been strong you seem to have got a lot of new merchants, which is why you've had a strong quarter. do you see that pace continue in the future >> i do. and i think you see it today in the u.s. but we're going to see it outside the u.s. also, as those areas, that haven't fully recovered, do. i think it continues to feel and everything we look at in terms of [ inaudible ] >> all right frank froze. i want to thank him for joining us from fiserv >> and not an easy tape as well, although off the low certainly on the dew didi global is down more than 40% since the ipo we have an update as the nasdaq

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time for our et sfrk spotlight. kwe brksz continuing the trend lower. as of yesterday's close, the five largest u.s.-listed constituents of the etf, j.d., netease, and baidu have lost a net since the beginning of the month, as they are calling on them to disclose the risk. folks the world's first fully autonomous vehicle is almost at the finish line today we're going to fine tune the dynamic braking system whoo, what a ride!

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about an hour into trading, down about 2% in a down market

they did beat q 2 estimateimates we're joined by oppenheimer's colin rush to talk about the print and response our colleague's take was it less about the future than the realities of the present has that taken the shine off the response >> i thought it was pretty forward looking, in terms of looking at the subscription model, as well as insurance opportunity. i think the real story is around the revenue model and how that will grow. that was our big take away lets of a consfrrn the stock >> where does that lead you to

your rating and target >> we're still very bullish on this company it's really innovating infrastructure and what's going to happen in the next two quarters, maybe three quarters, is the berlin factors are going to start to produce. 500 basis points from those facilities, really impacts the short-term numbers it's driving subscription and insurance. >> does all of the attention on regulatory pressure out of china, does this weigh on the name >> we have domestics bills out

of the shanghai community. that continues to be the trend we see here. and reports with additional capacity customer service isn't helping tesla. there's a real push for [ inaudible ] so, [ inaudible ] but not necessarily a real growth driver. especially if they introduce futures. >> what to you read into the fact that elon musk said he's not going to participate in earnings calls unless there's something really major and

newsworthy happening from here on out >> [ inaudible ] you know, there's been some concern from some folks who think we're going to have a little bit more focussed discussion on the conference calls the strategic vision and discussion -- but i think some of the elements that drive a stock will come into focus >> just one of the big names we're going to be working our way through on this busy week of earnings season. thank you very much. colin rush well, on a down day for the m major averages still hovering near record highs. so, what's ahead for the market in 2022, and what's ahead for the policy meeting steve.

>> thank you, morgan the stock market has clocked its gains for the years. and they think next year offers more promise, even amid rising interest rates, bond yields. and it topped out at 44/11 this year they see a 7% rise in 2022 while 58% believe stocks are over valued, that's down 72% in january. next year's stock prices comes with an expectation of higher bond yields. but someone wrote in saying, and i quote, the 10-year treasury yield is likely to move higher from the recent lowsads the conomy grows and should not impede long-term stock investors from continuing to grow.

and 2/13 next year is higher than the forecast in january and december but below the june estimates we had and most see a combination of technical and fundamental factors but the delta variant and lower growth ecpxpectations top the list and forecast for november, actual taper in january. the first rate hike in october 2022 do not hold your breath. >> all right i'll keep on breathing thank you. time for an olympics update. frank. good morning to you. simone biles now says her withdraw from a team competition today was not due to an injury it was because of a disappointing vault routine performance. she says she, quote, didn't want

to go on she now has to focus on her mental health and will take it a day at a time. without biles, russia won the gold with the u.s. team settling for a silver and the world's number two ranked tennis player is out. naomi osaka lost in three straight sets two months ago she withdraw from the set due to anxiety. and jacoby defeating her teammate who won at the rio games. she's the first swimmer to make the team from acing a. alaska. on a personal note, not a lot of pools in alaska. makes it especially impressive >> trained in a 25-yard pool amazing.

i compete in the old-man olympics short old man olympics let's keep an eye on raytheon today. the company did beat on the top and bottom lines and did raise guidance, thanks to recovery, to a certain extent in air travel and senator elizabeth warren has a new target a breakdownen the latest in crypto next. when a hailstorm hit, he needed his insurance to get it done right, right away. usaa. what you're made of, we're made for. usaa jerry is here! j! mate, how are ya!? it's so good to see you. good to see all of you, yeah! why is jerry so... popular? it's been like this ever since we started using workday. what do you mean? it makes it easier to develop great relationships with our suppliers. now everyone, everywhere loves jerry.

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averages long-time market bull warns wall street.

(sound of people returning to the workplace) (sound of a busy office) (phones ringing, people talking, meeting) the company we've trusted to keep us working remotely, is the same company we'll trust to bring us back together. safely. securely. and responsibly. so now, between all apart and all together, there's a bridge. cisco. the bridge to possible. welcome back to "squawk on the street." crypto coming under scrutiny with senator warren calling for more regulation.

and tether facing a possible criminal probe into bank fraud here to break down the latest, cofounder and ceo. charles, thanks for being with us this morning. all the regulatory back and forth we're seeing and hearing right now, whether it's senator warren, whether it's some of the commentary, maybe reclassify as an asset class because that will realize more opportunity for investors as well. how are you thinking about it this >> great to be on. there there's a lot of different things happening in this space i think certain types of crypto assets make sense to be called an asset because they're defacto in asset class. there's things like staple coins, where they're supposed to be very much following backing of dollars to a stable point in that case, it is a u.s.

dollar, but only if you built it correctly, if you regulate it and reserves are clearly in cash to me, that's the one we have now that moves around and has different properties that's an important innovation you have to dig into what is an asset meant to be doing and then i think everything flows from there. >> tether? is this a cunarrow in the coal mine, in terms of crypto currencies out there and perhaps the lack of regulation or is this a one-off situation? >> from the beginning we built it in a highly regulated way the mainstream adoption would never happen unless you have the right type of protections in place, regulatory oversight, which is a way of creating trustworthiness. i think when you look at a stable point and you have to understand what are the reserves

in are they safe? are they held in cash equivalence or not you can have a credit risk or interest risk. it's almost like a unregulated risk then you have to understand who's regulating it. we have a primary regulator. and the reason it's so important is because you know there's privacy con -- controls. if something was to happen, there were oversight, exams. so many things we built over time you never know when something that's unregulated might be operated in the right way or not the right way. that's the whole point is it creates defacto understanding and trustworthiness. >> what does that mean, especially as we've seen dramatic fluctuations in the

bitcoin and the like is that tied to prices going up? what does that look like >> so, this has probably been the most exciting time for us. we've built it when you need infrastructure and regulation. whether it's crypto assets or stable coin assets, it's about changing the way different assets can be moved to be always on and responsive. i can tell you large financial institutions, not just, for example, paypal and venmo, which are using us, but so many are looking how they can change their business they want to change how current products work and that's the promise and that's what paxos is offering as an infrastructure only firm. i think exciting things will come out that will really show

how paypal led the way and has changed the temperature in the room fundamentally for the industry >> sounds like cliff hanger for me have to come back and talk about those things as they become announced and public >> would love to thank you. >> tune in 8:00today's senate hearing that is titled cryptocurrencies, what are they good for >> that's going to be one to watch. yes. in the next hour we're going to talk some tech with one of the top analysts on the street as names like apple, google, microsoft get set to report. that's a big show coming up on "techcheck" as the nasdaq is having its worst day since may 12th

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welcome back to "squawk on the street." markets lower today with tech among the laggards ahead of a busy afternoon of earnings industrials are also underperforming. u.p.s. flirting with the worst day in over five years, and despite a beat on earnings and outlook raises from both stanley, black and decker and 3m, those stocks are trading in negative territory on the earnings call, 3m referencing raw material shortages and logistics costs impacting its bottom line and cutting its output of n-95 masks

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tax reasons, perhaps those retired. it is not just individuals robert frank joins us with more on lured to the sunshine state as well. >> from disney to goldman sachs to elliott management, citadel and black stone, a growing number of companies are expanding or moving their employees to florida and more than 8 00 people a day on average are now coming to florida. disney the latest notifying its employees of its plan to relocate 2,000 jobs from california to lake nona outside of orlando florida has no income tax and much lower housing and living costs than california. but disney got an added sweetener, tax breaks of up to $570 million over 20 years that works out to be about $250,000 per employee. florida granted over $3.5 billion in tax credits overall to companies in recent years the state will not reveal the

names of other companies that have received those similar tax breaks, but they haven't always paid off the tax program that disney used returned only 27 cents per every dollar spent by the states in the most recent year that is according to the state's office of economic research. florida has one of the lowest corporate tax rates in the country at 4.5%. and other programs that award up to $8,000 per new job created will move to florida the florida policy institute saying corporate tax incentives do little to boost the state or economy or foster shared prosperity but as you mentioned, this is an arms race on taxes and right now by the numbers florida is winning. >> yeah. we should point out obviously goldman or blackstone, the financial services companies, certainly i know well, you know well, they move certain jobs there. they're not necessarily going to be moving the bulk of their jobs

there, but it does go to the point where that's where the expansion may take place, right? >> yeah. and before it used to be hard to find really good talent there and now a lot of people, especially high income earners want to be in florida, so you talk to the financial firms and now they have the pick of the draw down there because there so much talent that wants to be there, that is already there after the pandemic that they can now hire that whole hiring landscape has changed. >> okay. yeah we don't see particularly interested in trying to keep companies here robert, as always, appreciate your time. thank you. >> thanks. just taking a quick look at the markets now, and what is a busy week. both in terms of earnings, two-day fed meeting kicking off today as well. it is a lot of red arrows. the s&p is down half a percent right now, 43.99 the dow is down 98 points. so still off the lows of the morning. but certainly earnings are in focus. we also have that robinhood ipo

later in the week as well. >> yes, yes. >> so just a lot for, i think, investors to digest here, keep in mind we are really hovering near those record highs that we hit for the major averages just yesterday. >> i'm still -- we're done with the show we're done with the show i wanted to talk to you about raytheon, so interesting those comments from greg ayes. we'll do it at day. >> sounds good big tech after the bell too. that does it for us. "techcheck" starts now happy tuesday. i'm jon fortt with carl quintanilla and deirdre bosa earnings season rolls on for big tech apple, alphabet and microsoft all reporting after the market closes today we'll have the key metrics to watch. tesl