and really focused on cash flow at boeing. that's been really strong and they continue to impress with their cash flow. >> the market is largely viewed boeing as vulnerable if there is a trade war with china, that there could be retaliation. first of all, do you buy that? and then quickly, ifhat's the case, do you worry about its future in the stock >>market? yeah, we're not -- i don't think we're as concerned as conventional wisdom out there in the market is on whe trade with china. china rolled out some proposa in terms of tariffs and the way they structured the tariffs on aircraft, it purposefully excluded some of the most best selling boeing airplanes into china so that 737 max 8, it was excluded because of the weight restrictions there that china putout. so we think at the end of the day there's going to be kind of a negotiated settlement between the u.s. and china, particularly when it comes to commercial aircraft. ly, china doesn't have any other sources other than boeing. airbus is at capacity and they're a narrow body

take a look at boeing.it's under pressure, not only is it airplanes that are built in the united states and then sent to china remember they also have a finishing center they are in the process of building in china will that potentially be impacted because of any kind of a trade dispute that will erupt between china. obviously, there is a fair amount of them the bottom line is this list for boeing. nothing is finalized here. there is nothing saying that chinese airlines will cancel their orders immediately when you start targeting specific aircraft. then you will get the attention especially given the fact that china is the number one mark in the world when it comes to new airplanes. >> that's good stuff we'll talk about a news update >> at this hour the leaders of russia, iran and turkey for talks on promoting a talk on syria. they say the territorial a reference to u.s. support for syrian kurds international trade service in france, one of the road's most traveled networks. some 86% of trains were cancell

stephen: a boeing spokesperson tells us, quote, "the safety of the flying public is boeing's primary concern, and any allegation related to safety is thoroughly investigated," end quote. the commercial airline cited in those faa records and in our report said they too work to make sure sups do not get on to their airplanes, but the cold hard reality is sups are making their way onto planes. you can read the entire statements from everyone who contributed to this report. just go to our website. go to nbcbayarea.com /weinvestigate. announcer: coming up, we investigate a landlord loophole some are calling a gateway to fraud. a loophole that may have led to hundreds of wrongful evictions in san francisco. lawmakers credit our reporting for spurring one of the city's largest housing reform efforts in recent history. but now we're revealing how landlords in oakland may have been using that same kind of loophole for years. and as we discovered, the cities still can't even tell when that kind of fraud is happening. josephine: this one too brings back memories. i think i had just had rasheed.

. >> boeing, boeing. >> ford. >> exxon >> all right "power lunch" starts now. >> scott, gentlemen, thank you very much. what a busy day we have got onnd that i'm tyler mathisen here's what's on the "power lunch" menu. earnings versus market rates a tug-of-war on the market who is going to win. >>> defanged $80 million wiped out. all of the fang stocks now down 10% or more on their 52-week high and mr. wonderful's favorite stock boeing crushing on earnings and raising its outlook. the stock is higher today. it is up 80% in the past year. can it keep flying "power lunch" begins right now ♪ big old jet airliner don't carry me too far away ♪ >> i'm michelle caruso-cabrera dow was down more than 200 points earlier, brief look dipping back into correction territory. yields are pushing higher again. benchmark ten-year note hitting 3.033%, the highest level since january of 2014. we have got the results of a $35 billion five year option moments away check out a couple of big earnings movers today. twitter is getting clipped the earnings beat, companied softened guidance. wynn posted mixed result

>> do that sand sell call puts in boeing. >> i think google is going to be very controversial i thinkng long premium into this one makes a lot of sense and sets the stage. >> looks like our time has expired. >> see you back here next friday for more options action. meantime "mad money" with jim cramer starts right now. the following is a paid program for traeger wood fired grills. sponsored by traeger. but be warned, it contains footage of delicious, wood fired meats, seafood, vegetables and desserts. you may find your stomach growling, your mouth watering, or that you have an uncontrollable urge to order your own traeger wood fired grill. what is traegering? traegering is this, that and those. traegering is fire and smoke, roast and grill, bake and barbeque. it's the rich flavor of american wood, sw

boeing never left. we're here we're looking forward to moving forwar forward. >> dispense spending does seem to be moving forward here in the u.s. and abroad. number of contracts -- competitions, i should say, afoot for the u.s. military. you're competing in them how should we think about how you're going after these contracts? what were you most excited about? >> we're very focused and deliberate you and i have had this conversation as well we have priorities tx, mq25 we spent the appropriate investment dollars to make sure we're offering a solution that will provide best value both to the air force and navy we're all in to win. we're excited. i have an amazing team of men and women who are giving their all every day and we look forward to delivering that capability to the services. >> a joint venture with saudi arabia what should we think about international sales and how are you looking to grow those? >> part of our defense portfolio, 37% is already outside the united states. we have been partnered w

. >> boeing shares are teetering in correction territory.ne of the traders says it is about to get a lot worse he will give us the trade. it is time to risk less and make more the action begins now. >>> let's get to it because next week is make or break time for tech and fang in particular. facebook, amazon, alphabet due to report earnings these stocks have been taking a beating lately, off their highs, and the options market is implying big moves for the group. facebook and amazon could see a 6% move in either direction, amazon could swing 5%. that could spark a $112 billion shift in market cap. how should you place some of these names. dan is looking at the alphabet. >> it gets kicked off after the close. you have alphabet reporting. a one thing interesting about the fang names, they're becoming increasingly intertwined in a lot of levels. we know the regulatory risks but they competing with public cloud. there's a lot of things going on here i think google is an important one, it is important to see how the company guides and how the stoc

. >> boeing shares are teetering in correction territory, and one of the traders says it's about to get worse he'll give us the trade. it's time to risk less and make more the action begins now. >>> let's get right to it because next week is make-or-break time for tech and f.a.n.g. in particular these stocks have been taking a beating lately, all well off their highs. the options market is implying some pretty big moves for the group. facebook and amazon could see a 6% move in either direction. amazon could swing 5%. that could spark a more than $110 billion shift in market cap. so how should you play some of these names heading into the reports? dan is taking a look at alphabet. >> yes, it all gets kicked off monday night after the close you've got alphabet reporting. one thing that's interesting about all of these f.a.n.g. names, they're increasingly intertwined. we know the regulatory risks, but they're all competing with like public cloud. there's a lot of things going on here so i think google is a really important one. it's important to see how the company guides and how the stock

boeing's the same. boeing volatility has virtually doubled from december of last year to now.nd we all know why. this is because of the president's focus on tariffs and what china's reaction is already. and what it might be going forward. so at 340 or so, i like the stock. at 2320, i would be a buyer. i think you can get it again if you're patient >> okay. i'm glad you mentioned the trade issue. kramer said something else interesting on the air today this is a quote. this president is more about trying to beat china than he is about trying to get the dow higher in other words, plays into what you're talking about these trade issues are not good for stocks like boeing >> nope. >> and if there's more of a focus on trade and kicking china's backside -- >> right >> it could potentially be bad for these big dow stocks >> let me talk about one thing thing, though. china says they may address the tariff they put on our imported vehicles to china the president has talked about it. they're talking about cutting that down to 10 to 15% in other words, bad short-term when the president do

boeing might be the most notable.t's a different story tan ge is the structure of the trade makes sense. >> listen, we talked about boeing it's the j.p. morgan of the space. j.p. morgan reversed 5% from the pre market, 6% or something like that don't think boeing -- they will hit their numbers in q1 if they guide down for q2. this stock will be on its way back to the low end of the range. it will take the whole sector with it. >> for everything "options action," check out optionsaction.com. while there, check out our news letter, don't be the only one fought reading it. in the meantime, here's what else is coming up. >> don't be such a skwa ir >> good advice, because square shares have been flattened from is one vent event that coud save it. tweet us your question at "options action. if it's nice, we'll answer it on air when "options action" returns. >> logical (indistinguishable muttering) that was awful. "options action" is sponsored by -- ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! y

would boeing be up $40 that day? yes is my answer to both >> think about boeing. let's take that as an example. if they came today and issued bonds at 4.5%, triple b investment grade which they could easily do, for five years. would you take that over owning the equity locking in 4.5% with some duration risk, but that's what santoli just said. he said move up the balance sheet and get 4.5%, but would you own the stock in a cycle where it continues to grow cash flow i would buy the stock. i'm getting a yield of half of that 4.5% right now anyway i look and say to myself, it's not a competitor yet to the equity >> again, kevin, don't look at it from the investor's point of view look at it from all the companies with record levels of corporate debt that have the 3% or whatever paper that has to be refnlsed higher. that's the process that's how it works its way through the aggregate kind of capital structure of the market. i'm not saying it's game over. i'm just saying that it's a little bit of an offset to the great news of tax cuts and record earnings. by the way, w

to and 3-m and caterpillar and ge but still double-digit for boeing and 3m. and many have significant exposure all on the down side so they move to positive territory but take a look at technology and revenues from china. micron gets half of the revenues from china and invidia and you might be surprised at other dow components that also have significant exposure in china. mcdonald's, 14% of their revenue in china nike, chevron, visa all double-digits. fisa up about 8% the key point about all of the big industrial and tech names in the last few weeks as trade war issues has emerged is compression of the multiples they are not trading as richly as they were even several weeks ago and that is the effect about the broad issues on earnings but largely about the china trade war issues dow is down 69 points. back to you. >> >>> you know what else is helping to turn the markets around, larry kudlow with his comments on trade this morning. let's get to kayla with more. >> reporter: the president's resident free trader joining the chorus of officials categorizing china

david: boeing stock --alix: boeing stock hitting absolutely pummeled in the pre-stock. boeing supplies most of china's planes. what will happen if this continues? you are president trump, and you don't want to hurt the industrial companies here in the u.s.. what do you do when he looks at it and says, market really getting hit here on boeing? >> i don't think donald trump's brain works the way many normal people's brains work. i think he can separate his views on trade this in china and how it affects the companies. don't forget, he has said publicly that these trade issues will all wind up being good for everybody in the next 60 days -- for everybody. days we could see talks emergency this all revolved. we know donald trump loves to make grand gestures and declare victory for what basically is very little. alix: more than 50% of the cars were lines in china are boeing airplanes, raising its 20 year forecast for aircraft demand. do we have to start rethinking the valuation of these kind of companies, or is that conversation too soon? >> i think it is a little bit too so

boeing added 40 points to the dow.an the indexes appear that's because 3-to-1 advancing declining stocks now take a look at the sectors tech has opened positive most of the big tech names opened on the positive side. here they went negative a moment ago. you can see. banks were doing a little bit better they just have gone negative but those are the two biggest sectors. you have a little more positive there. they tend to move the market up a little bit and energy taking break. consumer staples, again. another story here new lows there utilities also on the higher interest rates i want to show the boeing chart. the market turned around at 7:30 we were notedly negative and boeing came out at 7:30 and we moved immediately. we went from 328 to 335 in 30 seconds on boeing. one thing you didn't hear about with boeing the conference call is 10:30 eastern time. you won't hear the cfo talk about peak earnings. it's not going to happen they did 364 the estimate was 258 they blew it away there. the rest of the year analysts are g

. >> but after a toured run, boeing shares are hitting turbulence and it could spell trouble for oneroup of stocks. we'll tell you how to profit >>> plus talk about a bank job >> you put as many hundreds, 50s and 20s as you can pack into it. >> that's how bank investors felt today the result could spell trouble for one stock next week. we'll explain. >>> and -- >> it's happening. >> you bet it is, because netflix are set to report earnings on monday we'll tell you how big a move options traders see it having. it's time to risk cash and make some more. >>> bank earnings officially kicked off this morning with t citigro citigroup, jp morgan chase and wells fargo. >> it was a big week not only for those three. five of the top 11 biggest financials reported this week, it's not a good week for them and pretty assumptithe presumpts more to come let's put it in context, and i think it's important the absolute high, the 2007 bull market 2007, two lines. the market and the bkx i mean, imagine that more than a decade and your results, owning the bkx is less than 1%. versus, of course, the mark

boeing has demand from china to fill so it does make sense for boeing. plan is to develop its own aircraft company to rival those two. if you are getting involved in trade disputes about this, gets a confiscated -- it gets very complicated. guy: airbus does have a plant in china. it is mainly focused on narrow bodies. they are producing to aircraft a month from that plant. are the europeans more embedded in the china market and does that play to their advantage? you talk to people in germany at themoment and they tell you conversation flow between beijing and berlin at the moment is incredibly high. michael: boeing is opening a plant in china. china southern airways's chief said they need both companies because they cannot produce enough airlines to meet chinese demand over the short-term, the next 10 years or so. both companies are bank played off against each other by the chinese. it does not appear anyone has a specific event. the bottom line is china wants the expertise and to fill the hole for the time being and then essentially in the long run make

boeing up 4% after beating on revenue especially on earnings today.pillar down we talked about that yesterday the cfo told analysts it was a high water mark. joining us fast money traders. welcome to you i know we've had a lot of earnings and a lot of news here to think through but if industrials was supposed to be a leadership place, david, did boeing calm some of those fears today after caterpillar results? what do you think? >> it absolutely calmed some of the fears. i think they were blown out of proportion they talked about peak margins, not peak cycle the reality is i think both stocks here are a buy. i like boeing and the fundamentals it's a really sort of locked up story. cash flow story. i mean, they really have everything sort of working in their direction there. cat i think that be derisked after yesterday's sort of, you know, commentary from the company. i think it was a little bit misconstrued and probably a little bit overblown by press and media. cat is still an excellent level to step in and buy stock >> derisked is a polite way to put

start with boeing. because of all companies in the world that have a reason to worry about trade concerns, about steel tariffs and et cetera, it would be boeing but look what happened today. when you look at individual stocks supposedly affected negatively by trade talk and tariff talk and everything, you see how well they're doing, maybe the whole market should catch on to this? >> indeed, david. as you rightly point out boeing did close higher, struggling a little bit earlier in the session. the company exceeded expectations on the top and bottom line for earnings. and that is really what we're focused on. a third of the s&p is reporting this week. of course boeing really helping the dow. we're showing intraday trade, helping dow gain steam as we go through the day. i'm waiting along with you for facebook. david: yes, indeed. >> to see what the numbers show. but one thing i will watch as soon as these break really the amount of money mark zuckerberg says he is going to spend this year because we heard

as well as the graphic with the company logo boeing down 6% in the premarket.ottest stocks in the market last year so the valuation is there, we have a great team here, dedicated crew early in the morning putting together stuff as we develop it on the show we're looking at companies that may be impacted. we have ford, we have gm, we have fiat chrysler, steelmakers, ak steel some of these proposed tariffs include rolled pipe, iron products, adm. why are they on there? there's an ethanol issue with tariffs. bungea soybean producer. when you look at the list of products that get proposed, going both ways, and we've scanned the list, it's not as if it says we'll tax ford, we'll tax gm, it sometimes has complicated things where you have to discern what companies may be hit we're not seeing missiles and helicopters on this list that's why we don't know from the defense side >> that's the thing. there's so many unknowns here. so many questions. you have to start digging down into the supply chains for a lot of aerospace and defense companies, they're doing stuff on th

was it a tax benefit from the law changing what went right for boeing boeing says this is being driventh on the commercial side of the business as well as the defense side of the business they have a richer mix of airplanes they sold in the first quarter. and they believe that when you look at the tax benefit, it's a very small percentage of that beat again, boeing 3 -- >> again, that's phil lebeau giving us the update on the boeing numbers let's look at how the stock has been trading dow futures at this point are coming back a bit. off the lows of the session down by 58. that's a 1.5% gain >> $5 in a dow stock is worth about 35 points. yesterday boeing was down more soit may or may not at this rate kind of recover that i would point yesterday to lockheed martin's numbers. it was similar to caterpillar. very good numbers. good guidance. and the market kind of sold it off just because maybe quibbling with cash flow issues. we'll see if it changes. it's not always the case one type of reaction kind of carries through the entire earnings season >> or even through the entire trading day as

i think boeing -- no.strong demand as they continue to meet demand for new planes. there is significant demand for 737s especially in china and the transcontinental flights driving strong demand for 787 and 777. tom: i do not know if you had the privilege of studying with bodie up and boston university, but this is about finance. jamie dimon demands globalist america. tell me about the industrial companies and meeting after meeting after conference call and meeting, what do you see from american industrial managers as they confront the president and need to do business abroad? what is the mood, what is the sweat right now? ivan: i think the president's goal is a fairer trade policy and somewhat reduce the trade deficit with countries like china. industrialadvanced countries have trade deficits with pools of labor, countries that provide pools of labor. i think the demand of products for leading industrial products in the u.s., specifically boeing and caterpillar are benefiting from global growth. and i thi

i think boeing is expensive. i think caterpillar is expensive. i think they're really expensive in a 3% tenure not a big deal the most important thing for the markets has been a growth scare is a lot more damaging than an inflation scare. i think we had some growth scare whether it is trade wars or whether it was -- i don't believe. that i'm saying the market was concerned about it >> you isolated the industrial names that i would total agree with you i'm not talking about those names. the names i threw out there are more tech names. some are absolutely ridiculous i think when you come to boeing, people are saying look at the cash they're having people look at different areas because of the fact that pes are at levels that we've never seen before. >> i think people rightly say $24 a share in cash flow in 2019 for boeing is great. i think we may be saying the same thing what is coming out here, i think, is that the globe is in a better place we've seen a slightly better dat yachlt we've seen interest rates go better around the world we have taken

boeing was hit because 50% of the commercial fleet in china comes from boeing. i'd like to remind everybody they're not going to jump ship and start buying airbus planes. that's going to take years and years, when you have a part on a plane that potentially needs changing, you have to change all the equipment in your company. that takes time. we did see some of the suppliers get hit. spirit aerosystems provide the cockpit of some of the boeing planes. they're down, seeing a rebound with hexel corporation, they provide carbon fiber materials and triumph group. i read one analyst and said if anything china is likely to negotiate when it comes to the aerospace industry, we shouldn't see too much retaliation. now let's talk auto. ge, all of these guys got hit bad at the top of the day. ge, gm and ford have manufacturing plants in china. tesla has $2 billion in sales in china alone and so this potential tariff could affect tesla quite a lot actually, and it comes at a time when tesla has been struggling as of late. you had elon musk joke on april fools that the compa

from cars to planes now american aircraft maker boeing had a very good first quarter and delivered one hundred eighty four aircraft in the three month period that's a nine percent uptick from last year boeing has pointed to greater demand for its seven thirty seven short to medium wholly aircraft which made up the majority of the sales european rival airbus to delivered forty five aircraft in the same period one for every four of boeing's engine issues have slowed down the deliveries. and the trade dispute between china and the u.s. has kept global markets on edge but now china is calling everyone down chinese president xi jinping vowed to open the economy and actually cut tariffs this tuesday but few think will turn words into action. cars are a major sticking point in the trade conflict between the world's two biggest economies the us pays a twenty five percent tariff on cars it brings to china while china only pays two point five percent in judy's on cars it exports to the u.s. that's not the complete picture the u.s. sells six times more cars in china than the other way around but

and boeing is in their crosshairs.s. >> the stock is up 80% in the last 12 months. there was questions as to if this earnings report was going to be good enough to keep the stock flying high. >> maria: it's been a high flier. the ceo i was with us recently. he said look, the commercial airlines business is doing really well. but china's obviously a major customer. we want to turn to a landmark case for the supreme court this morning. justices will hear arguments today about president trump's travel ban testing the limits of the power of the oval office. the executive order restricts travel from seven countries, five of them predominantly muslim. joining us now is judge andrew napolitano. good to see you. what's the central he question here? >> is this a muslim ban or is this a proper exercise of foreign power. almost a fact question rather than a law question. the supreme court is not in a position to evaluate facts. so how do they make a determination like this? they look at everything that's been said about it. so if

american aircraft make a boeing had a very good first quarter it delivered one hundred and eighty four aircraft in the three month period that's a nine percent uptick from the same period last year boeing has pointed to greater demand for its seven three seven short to medium haul aircraft which made up the majority of its sales its european rival air bus with a forty five aircraft in the same period one for every form of boeing's engine issues have also slowed deliveries. now when it comes to the environment plastics are a real pain presenting health hazards to humans and animals but getting away from them is hard a recent report from friends of the earth europe in zero waste year found more than a third of all food sold in the european union is wrapped in plastic many in the food industry so they need it to keep food fresh that all other ways. it's hard to lead the world off plastics especially in the food retail industry such packaging pro-tax products during delivery it also helps prolong shelf life so that supposedly less food is thrown away and eaten at least that's the idea but

how many days in a row do i put on boeing? that's 50 points in the dow jones industrial average they're off of their lows. john deere gets about 10% of its revenue over in china. we have other big industrial names that just started breaking even today 3-m gets about 10% of its revenues from china and chevron of 11% or 12% and still down despite the rally we are seeing. then we have some companies you may not think about, for example, take a look at visa, visa is showing positive but was negative all throughout the day. visa gets 10% of its revenues over in china. >> the bottom line is market moves on every gyration of tariffs and trade war issues on friday, we are going to get all the information on the jobs as well assua wage growth it is sensitive and very attentive, all of this right now. >> back to you >> thank you very much for that. a fantastic turn around, we are over a percent the nasdaq is dipping in and out. bert bertha coombs. >> nasdaq biotech has really been the out performer today it is interesting despite the fa

boeing, boeing's grounded at this hour, currently one of the worst performers, down two and three-quarterscent, the industrial giant falling after russian lawmakers proposed a draft of u.s. imports that could be banned in russia in response to the latest u.s. sanctions on ole backers, on russian billionaires -- oligarchings. boeing saying it's still studying the possible impact of what the company calls, quote, anti-american legislation proposal. russia's not the only one playing the trade tariff game. president trump said yesterday let's revisit the trans-pacific partnership agreement with 11, many of them asian, nations. he was, of course, the first one to kill it in the first month in office. but next week we're expecting perhaps a much more dramatic trade tariff headline. the treasury department is formulating bans on chinese investment in u.s. technology companies whether it be through acquisitions, joint ventures, investments, and these bans could be permanent. "the wall street journal" reports that the white house is planning to escalate trade pressure on china, more than it already

dagen: buying a boeing dreamliner. >> not personal. >> not buying a boeing dream line ohr a domesticve -- >> the president called boeing a year ago saying the planes were too expensive. >> many are, and he is right about that look i think, in the end of the day, the stock market there is a buyer and seller so trades on each side we can't run the entire economy based on what traders are doing, you know, and their opportunistic by news happening making money losing. >> sell first think later they will wait to digest all this. >> i do. >> market the ozone layer you what is happening in the economy i worry about the economy, i worry about jobs worry about. maria: we just had adp report 241,000 jobs the month of march was that not better than expected not both well for friday. dagen: i worry about next month the month after the month after and next year. maria: you are a worry wart like dagen as well? >> i got to know. >> -- we will be right back. so, my portfolio did pretty well last year. that's great. but the market was up nearly twice as much. that's a tough pill to swallow. exactly.

. >> coming up, boeing ceo dennis mollenberg on the blow-out earnings report, and where the owant is seeing its next leg of we are back in a moment. your company is constantly evolving. and the decisions you make have far reaching implications. the right relationship with a corporate bank who understands your industry and your world can help you make well informed choices and stay ahead of opportunities. pnc brings you the resources of one of the nation's largest banks, and a local approach with a focus on customized insights. so you and your company are ready for today. >>> i'm scott wapner, big beats, little reward, that's how one company is describing it >>> plus, one analysts makes a big call on under armour he will join us live. >>> unusual dose of activity, j john and pete both joining us. see you in just a bit, morgan. >> looking forward to it thanks >> phil lebeau just now spoke with dennis muilenberg phil >> thank you, morgan we talked about where boeing stands, next leg of growth after the meeting he talked about the upward pressure this company is seeing when it comes to i

cars, machinery, big fears over boeing in big-ticket items.ly overnight the breaking news and folks who are just waking up this morning is that china responded overnight, announcing they will hit 106 types of different u.s. products with their own tariffs and to your point, aircraft was in there. soybeans, corn, things they export to china. watch names a caterpillar today. there we go, down four and a quarter of a percent. all of this escalation is heading with stocks in the premarket. but again, if the treasury secretary can go over there and start a discussion which is still on the table, don't you think they can come to some sort of agreement for the u.s. can get an upper hand on a $375 billion deficit. >> let's take one thing off the table right away. it's pretty difficult to start a trade work when you've been in one for the last three decades. that is what is happening here. but there are repercussions from the dangers. i'm not in the room so i don't have access. what this tells me as that was about 10 days ago, steve mnuchin save the ma

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and all i can say to that is that boeing was at $142 the day that this administration was elected.n after the volatility so, you know, sometimes things can be disruptive and we should be a lot more comfortable with the notion of disruption because whether google does it, when alphabet does it, when microsoft does it, when elon musk does it, people want to make them the fifth heads on mt. rushfor. but when the president and his administration try to do it, they g they get vilified. i respect the market's nervousness but i also respect the fact that trying to accomplish better trade and get all of our allies thumbs off their trade scale is a very important mission. >> right that's a good point. although, i mean, amazon is a disruptor and they're being vilified by a white house that is looking out for old interests like mom and pop retailers i'm curious, rick, you know fixed income -- >> by the way, carl, i'm not a big fan of the way he's zeroing in on amazon i would look at it if the post office getting a raw deal, we have the king of deals make a better one. >> rick, we've heard a c

boeing up by 1%.s, goodyear, northrop grumman also doing well on earnings. general dynamics now rolling over in the premarket. so who will end up winning? are we in a situation like caterpillar where you get some good results and then you have the conference call waiting on equities. david: it is clear investors are looking closely at these reports. they are really looking for problems. alix: a different problem for caterpillar. just,gh water mark was the first quarter earnings just may be the best we will see in 2018 does that mean we should be rolling over. a different interpretation. will the markets by it? david: two years ago, caterpillar saying that we would not keep on having them. alix: jim care discussing 3% yields and julian emmanuelle, his take on earnings beat and mrs.. that wraps it up for "bloomberg daybreak." this is bloomberg. ♪ >> i'm jonathan ferro, 30 minutes until the start of the -- the countdown to the open. jonathan: coming up, positive company earnings collide with pessimism ab

are not doing anything today lockheed martin, for example, down 6%, decent numbers, dragging down boeing on top of that, and then heaven help you if you give guidance that is unexpected or disappointing. 3m lowered a little bit, lowers high end of the guidance that's not a typo, down 7% that, alone, is 100 points in the dow jones industrial average. then there's the rates issue i want to change that discussion a little bit, make it an inflation issue. company after company, this morning and the last few days, has mentioned higher input costs, so 3m, for example, talked about higher cost for transportation, kimberly-clark talked about margins impacted by commodity inflation. procter & gamble said higher commodity costs affects them caterpillar said field costs were higher. this is a theme now. it's going to be an issue going forward. finally, another big issue, consumer staple stocks every single day, we're seeing consumer staple stocks hit new lows, pepsi, procter & gamble, all of them down 20% this year of course, brand issues are out there, and, of course, inability to rise prices and

yes, boeing is the u.s.' largest exporter to china, 50% of the commercial fleet in china is boeing planes, but it's not going to happen overnight where you'll have everybody switch over to airbus. these manufactures in china when they're fixing the parts on planes that takes a l of time to do and they're not going to start changing their equipment. we're seeing just on the screen so boeing did close a little bit lower was much lower today but overall, this is a big deal. i know we don't want to call it a war but to go for president trump to go from putting tariffs on two products to over 1300, that's a big change. david: it is. >> and china is just giving back david: but here is a line, i think there was a real game changer we heard from larry kudlow. i think it deals with the world trade organization. listen closely. >> there's no trade war here. what you've got is the early stages of a process that will include tariffs, comments on the tariffs, then ultimate decisions and negotiations there's already backch

and let's start with boeing. remember, in addition to making passenger planes, these guys had huge exposure. boeing had an epic run before the market wide peak this year this stock rallied more than 120% isn't that incredible? look at that but in march, the stock tumbled. and it went down, that is 15%. now, when boeing started bouncing back this month, marino points out that if it ran into a ceiling of resistance, at its 50-day average thinks this stock made a rounding bottom. you take the height of the rounding bottom and then add it to the ceiling of resistance and you can get a potential price target in a high 360s. this same pattern, well it could fall as low as 285 however, marino believes there is a good reason to be positive here and not negative. i want you to check out the chaikin money flow with my colleague bob lang take a look at this cmf. this is an oscillator that measures the buying and selling. despite all of this about china, if the stock rallies five bucks, watch this, because boom next up, take

southwest says the 18-year-old boeing 737 was inspected just two days before the accident. the ntsb now plans to look at its inspection history. >> they plan to roll out certain inspections of fan blades looking for signs of fatigue and fractures. >> the fan blade separated in two place. >> ntsb investigators believe one of the fan blades in the left engine of southwest's

look at this chart, boeing's flight to volatility, the top u.s. in the tariff debate. this chart shows changes of more than 1%, green being higher, you read lower -- red being lower. this is just as the tariffs and metals that they used to put together their jets, this is a big issue and everyone is waiting to hear what the ceo has to say as well as with the outlook might be. yvonne: it is interesting you put that macro thing like a tariff on micro-story like boeing, but growing that's that oil goes to $80 a barrel, oil getting very sexy again. su: we are seeing more money into oil related funds at a pace that has not been seen before. almost a record. let's go into the bloomberg and exxon is one of the big giants that reports. this is deutsche bank now. i should point out deutsche bank is one of the banks that will be reporting. we have talked about the different banks that have reported so far really coming in strong with cost-cutting and trading revenue. deutsche bank will be of particular interest because they have had the recent change at the

as well as the data we have seen this week, that is combining together to pass over the deal -- the boe's plans. carney,at we got from after the data misses, there maybe thishis sense tightening cycle will not be as aggressive as they said it out to be. matt: thank you very much,

go ahead, boeing and keep growing. liz: interesting timing, because we've been talking about the so-called trade war. doesn't seem to faze them, i don't think it's fazing the markets long term, there is so much concern and you share some of the concerns about a potential trade war, i do -- greg was on at the top of the show, wrote a very good "wall street journal" commentary on this a couple of weeks ago saying china started this whole problem and now we're dealing with it, but the reality is we can deal with it and it's about time that we dealt with it, and people should sort of, perhaps take some of these fluctuations with a grain of salt. what do you make of that? >> i'm fine going after it. i love the fact that mnuchin is going over there to talk with them, better than tweeting in the morning about $50 billion tariffs. if we can get something done, nothing but good happens, we've been behind the 8 ball for many, many years with china as well as many other countries. i see it as a good thing and great negotiators wi

. >>> also last week, mike said boeing could hit some tour bu lens on its report. >> we have obviouslyn it sort of start to level off here and even start to trend downwards a little bit. the valuation might be getting ahead of itself. you could sell the 350 calls for $9.75, but obviously to limit our risk we'll buy the 355 for 805. >>> the stock came under pressure so mike, how are you managing this? >> the operating results were great but we expected that. the market expected it. take a look at the valuation metrics. trading at 20% premium to long-term average. i think we stay. >> to not move higher on numbers like that, that's negative price action, stay. >> we've seen a lot of this in the markets. >> we talked about the xli last week. that was a disaster. the damage that was done in that space just this week alone, we saw lockheed, triple m, boeing not rallying a few weeks ago we did a short on-xli. >> when you're buying or selling securities, it's not the company, folks. boeing's a great company and they're doing great from an operating perspective. >> the defense contract was held

broke off during that flight sending shrapnel ripping through the plane one passenger died in the boeing had to make an emergency landing. now devastating news for the world of electronic dance music one of its superstars d.j. vici has been found dead in the capital of amman muscat the twenty eight year old swede produced one hit after another for his for song such as levels wake me up and a brother the cause of his death remains unknown. he produced hit after hit he won critical acclaim and he played to sellout audiences. at beach she had found fame fans and fortune but on friday the music artist whose real name was tim burgling was found dead he was just twenty eight. madonna who hired to ficci to produce her last album posted on instagram so sad so tragic goodbye ideas sweet him gone too soon. to be chief had suffered from health problems including pancreatitis caused in part by heavy drinking in twenty thirty in the underwent surgery for a ruptured appendix and applause. he spoke candidly about that time in an interview in twenty fifty. three it feels like going from being normal to

that's the boeing stock right there.d for it if you talk to the people at s&p, telling his earnings are headed higher setting a new record. my question for you, can this continue and will we see the companies benefit from higher earning? >> higher earnings are definitely part of the quarter it's just that investors sell a lot of the news. boeing sees the industrial complex on the heels of a tourist congress call from caterpillar to do before they wrapped the entire industrial air. boeing delivered on every metric that top line, bottom line. great stock yesterday. gerri: unbelievable. i want to talk about rising rates. the 10 year treasury revealed 3%. mortgage rates not for .60%. rates rising across the board here. can markets take this on in cannes may ultimately go higher? >> at the good news, bad news dynamic. you bring up a good point because americans are feeling it. the reflection that our economy is getting stronger effect in the 10 year treasury of 3%. certainly good news for americans feeling wages going up. tha

. >>> also last week, mike said boeing could hit turbulence on its report. >> bow has been on a tearr the past year. we have seen it start to level off here and even start to trend downwar downwards. you could see the 350 calls for $9.75, checking a nice bit of premium there but obviously to limit our risk we're going to buy the 355 for $8.05. >> the stock came under pressure how are you managing this? >> the operating results were great but we expected that, the market expected it, look at the valuation metrics, it was trading at a 20% premium so i think we stay on the short size. >> to not move higher on numbers like that, that's negative price action, stay. >> we've seen a lot of this in the markets. >> we talked about the xli also. that was a disaster. i think the damage that was done in that space, just this week alone we saw lockheed, mmm, boeing not rally to me there was a lot of bad price action and a few weeks ago we did a short on the xli. >> price action is the issue and it's always the issue buying or selling t ing thing the securits boeing is a great company. >> the defe

talk about trump's relationship now with lockheed martin and boeing. >> there were several tweets thatere very surprising to the business community. everyone did not know what to do at the time. however, here we are a year out and what those tweets were, criticizing carrier for moving jobs to mexico, criticizing boeing for the cost of air force one, criticizing lockheed martin for the cost of the f-35. these tweets became strawmen. and now these ceo's have falls criticism of the president and have been given this victory over that strawmen. the relationship looked very difficult at the time, but here we are a year on and he is about -- he is literally picking up the telephone and closing deals and becoming the high tech sales person that the art of the deal president wants to be. amy: i want to thank you both for being with us, bill hartung of the center for international policy. mike stone with reuters, your piece "arming the world: inside trump's 'buy american' drive to expand weapons exports." we will link to that. william hartung, we will link to your piece for the nation "donald t

talk about trump's relationship now with lockheed martin and boeing. >> there were several tweets thatere very surprising to the business community. everyone did not know what to do at the time. however, here we are a year out and what those tweets were, criticizing carrier for moving jobs to mexico, criticizing boeing for the cost of air force one, criticizingrtin for the cost of the f-35. these tweets became strawmen. and now these ceo's have falls criticism of the president and have been given this victory over that strawmen. the relationship looked very difficult at the time, but here we are a year on and he is about -- he is literally picking up the telephone and closing deals and becoming the high tech sales person that the art of the deal president wants to be. amy: i want to thank you both for being with us, bill hartung of the center for international policy. mike stone with reuters, your piece "arming the world: inside trump's 'buy american' drive to expand weapons exports." we will link to that. william hartung, we will link to your piece for the nation "donald trump is amer