we mentioned carl stanley and his 2019 email warning to stockton rush at the top of the program. i spoke to mr. stanley just before air. >> carl, if you can describe for us what it was like when you were on titan and the noises that you heard when you went down. >> yes. so stockton warned us ahead of time to prepare us. he told us that when he was down there that the submarine made many loud noises and that this was to be expected and it was not anywhere close to catastrophic. he also tested models at this point and he had -- he knew where the models fell so i didn't feel our life was really in grave danger at that point. i feel the real failure came with cracking over time and also with the joint and water getting in there. and another thing that happened was he can trolly sis because even carbon fiber is not a metal but sometimes it behaves like a water so the salt water in between there and the titanium flange over time would have caused even more delam nation with the carbon fiber. unfortunately i doubt there's enough pieces. >> you don't think it's -- you don't think it's a

abc news has obtained emails to rush from carl stanley , who went on a dive in the bahamas back in 2019. now after that dive, he warned rush of cracking sounds coming from the doomed sub. >> i would compare them to small caliber gunshots, i feel did everything i possibly could mean. i pushed and pushed and pushed until he was borderline rude with me. >> now rush did not reply directly to that email, but stanley says rush did make changes to that sub, including a new hull. >> now to san antonio in three police officers charged with murder for a shooting caught on camera. authorities say the victim was suffering an apparent mental health crisis. her family is now taking legal action. some viewers may find the images disturbing, saying we're learning more about three san antonio police officers charged with murder after shooting a woman inside her home. >> officers were seen approaching 46 year old melissa perez after getting a call that she had cut wires to a fire alarm at her apartment complex. this. hey, ladies, get over here. >> perez then ran back to her first floor unit. >> police re

where it did its dive, abc news has obtained a series of the most between submersibles expert, carl stanleygate ceo, stockton rush. stanley says he warned rush about flaws with the titan and ascribes his experience on that sub. >> i would compare them to small caliber gunshots. i am not a person prone to panic, nobody in that submarine was panicking. stockton played it cool, but it was discerning. julian: a team of deep-sea experts is now trying to recover as much of the summer civil as possible, but retrieving items from those depths is very tough. kumasi: secretary of transportation pete buttigieg is warning of travel delays next month if planes do not update technology. reporter: in this morning's gma first look, it is the big x factor that could stand in the way of your fourth of july flight. what is the airlines 5g deadline about? >> this deadline of july 1 did not come out of left field. reporter: on july 1, the nations wireless carriers will be turning on their 5g signals. >> there is a possibility of a bleed over close enough with this new 5g service this could cause greater -- beca

submersible expert carl stanley said after he went on an experimental dive in the bahamas in 2019 inn sub he exchanged e-mails with stockton rush with serious concerns. >> i had very serious concerns. not only that the hull was compromised and getting worse, but that his entire system was not dialled in enough to the point where he should be offering trips to the public. >> reporter: in one e-mail, stanley saying cracking noises sounded like a flaw/defect in one area being acted on by the tremendous pressures and being crushed/damaged. in another he wrote to rush, i think that hull has a defect near that phalange. will it fail catastrophicically it will only get worse. the only question in my mind is will it fail or not? >> there should never be a risk of hull failure. i did everything i could. i pushed and pushed. >> reporter: the lead investigator for the coast guard marine board said, quote, the board will first and primarily work to determine cause of this marine casualty and the five associated deaths. it can make recommendations to the proper authorities to pursue civil or crim

e*trade from morgan stanley >>> good thursday morning. i'm carl quintanilla with sara eisen.a pause. and the inflation data says hike the jobs picture continues to defy all kinds of gravity. what does it mean for the fed, a pause, a push higher we'll talk to morgan stanley. >>> palo alto network says we'll talk to him about his message to investor. >>> later on, a pulse check on luxury real estate the ceo of douglas elliman is

they double down or do they get perhaps a little bit more optimistic like carl weinberg did earlier this morning? morgan stanley's among those staying bearish, saying equities are facing a wall of worry which could fuel a sharp sell off. quote, the headwinds significantly outweigh the tailwinds and we believe risks for a major correction have rarely been higher. our target for the s&p 500 is 3900 for four of 2023. even though, as people have been saying, the underlying economy looks good for now. tom yeah, but there's 3900. but there's a lot of other people below. mike wilson mike's getting all the print, but there's some serious bears out there who, you know, they're being challenged right now to be polite about it. yeah, like greg waddle over at bnp paribas. yeah, absolutely. 43, 83 on rex right now, someone watching this is amy silverman had a derivative strategy. rbc capital markets. my head spinning. amy it's like the fifth cross moment. it's out worse than courtesy. and the rest of it over the weekend. how did you study the bull bear debate? yeah, obviously, you know, incorporated into the weekend was just

apple just last year in 2022, carl, guess how much they sold in iphones alone, over $200 billion so, this is still predicted, according to these analysts and morgan stanley a tenth of the iphone sales. we've seen this so often with products that have come out from apple post-iphone, sure, they sell in tens of billions, hundreds of billions every year but not at the level of the iphone this is still the iphone company, carl, despite the optimism about the ar headset. >> this sing is not going to be cheap. some analysts say it will be $2,500, $3,000. >> i've seen $4,000. >> whatever it is, it's very expensive in a time when consumer spending is strapped. is that coming at a time when everyone is talking about ai, do you think they get to -- they have the ability to change the conversation back to the excitement that once was around the metaverse and virtual reality? >> absolutely. apple hates saying the word metaverse. tim cook has been asked about it and other executives in his roster, and they hate using that word they don't like the term, metaverse. they see the potential of automated reality, the digital images placed on top of the real world. yes, thi

strong so far, carl >>> topping the tape, taking a look at fed fund futures because there's a cycle high being priced in, 77% chance we see another 25-basis-point hike in july morgan stanley saying the federal reserve will raise rates at the july meeting. we did get the hawkish comments from ecb president christine lagarde in portugal suggesting in that part of the world the hiking is not over strong data across the board, stronger than the market expected definitely puts pce in focus. >> new homes, faster pace in more than a year conference board, best in a year and a half morgan stanley, which just two weeks ago said the fed is done here now says the bar is maybe lower for a july hike than they previously expected. some of the housing numbers sort of lead you right to that point. >> we'll be talking about that a little more as well in the hour, but how resilient housing has been we've had a number of guests across cnbc in recent months who suggested, hey, maybe the bottom is already in on housing certainly with home uilders, what you're seeing with home builders specifically sort of bridging the gap to add more supply into this market. the fact there is demand there for

carl. >> just recently, he has written about what happens to tesla's economics if it becomes the gas station for ev's? the morgan stanley road yesterday that that sensitivity suggests that could be worth up to $78 a share, alone. >> if you look at just associated with tesla, absolutely. the only company that is not going to get an addition is the meta-platforms because of this death match, between mark zuckerberg and -- i don't know if you follow -- >> i know all about it. >> tell me about it. >> mark zuckerberg is doing jujitsu and has challenged a physical altercation and says he has the moves, it is called the walrus. he does this on somebody and doesn't let them get up. [ laughter ] >> this ultra billionaires talking about what they really care about. the two of the richest men in the world. by the way, that would be a pair for you that we would all eat up. >> i would actually like to be the announcer. >> would you? >> down goes frazier! down goes frazier! no, i think this is a very rare moment where we are being a little sarcastic but i will say that, short-term, the moment cnbc did the magnificent seven, that was

stanley. >>> welcome to another hour of "squawk on the street," live on the floor of the new york stock exchange, i'm carlgenda, famed economist, david rosenberg, why he says investors are coming around to the bubble that's been created and the one investment he says will give you returns and let you sleep at night. >> plus, new brand ceo, chris peterson, first interview since taking the reins, the stock is down 40% can he turn it around and. >>> norfolk southern's ceo, the company continues to recover four months after the east palestine train derailment and costs rise and volumes drop. >>> bu

that's why to your point, carl, the analysts say when you look at the auto sector you're looking for safety and any insurance policy ferrari is at the list. >> this was morgan stanley'sst year marketing wise, is it a challenge to convince a performance oriented driver to graduate to ev or not? they go fast. >> it's going to be a huge challenge. what is an ev ferre regardry l - ferrari look like and is it that much better that you're going to spend twice or three times as much ferrari is slowing that process trying to lobby the eu to get biofuels approved. if and when that day comes that's what they're working to try to tune the sound of an ev, to sound like a ferrari. how will that go that's going to be the existential question going forward. >> ownership is who? the key ownership? >> it's exor and the family heirs the largest controlling and then publicly traded as investors have enjoyed. >> it's great story. we'll see you in a bit. >> thank you. >> robert frank. close to session highs here as we're back in the hunt or the bulls are for 4450 don't go away. opportunity is using data to create a competitive advantage. ♪ it's raising capital to help companies change th