dropped and speaking of transportation stock, we've got our own phil lebeau on set at the nasdaq.ime ever at the nasdaq market. what's the future hold for the auto industry, phil? >> two things we want to talk about. we want to talk about electric vehicles and self-driven vehicles. let's start with electric vehicles. for all the talk about how these are the vehicles of the future, everybody is jumping into them, take a look at the numbers. 85 million this year. that's what the industry is going to make around the world. how many electric vehicles will they make? about 142,000. it's not even 1/10 of 1%. not a drop in the bucket. it's nowhere close to registering to half a percent. on top of that when you look 25 years in the future the expectation is you will have 8 million electric cars in the united states. boosting those sales, however, is going to require huge government subsidies. a continuation of what we have right now probably extended even further. in fact, m.i.t. says in order to get to 5% of new vehicles being electric vehicles by 2039 you'll need not only incentives for

fill la b phil lebeau with more on the knock on tesla including what the auto maker has to say. phil, that gentleman earlier today said he had one of these cars for about 15,000 miles, so he had time to break it in or for it to break. >> it's not just him, tyler. consumer reporter bought a model s with the specific idea, let's drive it for a year like anybody else would and let's see what people think. it's a number of members of consumer reports driving the model s and the minor problems they encountered were things like the door handle flushed with the frame of the vehicle. it's supposed to come up to open the car. it wouldn't come out a couple times. tesla was doing over the air software updates, which then allowed them to open the vehicle. one time the center koconsole wt blank so they had to do a hard reset for the model s. are these issues that stopped the people at consumer reports from driving the vehicle completely for days on end? no. every time tesla responded by fixing what was under warranty and getting the vehicle to operate as it should. however, these are nagging

phil lebeau has more. >> reporter: go to any showroom and dealers will tell you, business is booming. new and used auto sales are the strongest in eight years, one reason why, dealers are selling more cars and trucks to those with less than ideal credit scores. >> right now the subprime borrower is for the most part staying current on their automotive loans. we're seeing some increases in lateness but it's modest. >> reporter: experian auto says more subprime borrowers were a month or two late on the payments between april and june. at the same time, the number of auto loans that ended in default with cars being repossessed jumped 70%. while the percentages are still well below where they were during the recession, some are worried the push to sell more cars has lenders writing too many loans to those who can't make monthly payments. >> maybe some of the -- these people should buy aless expensive car or a used carver sustained a new car and having the transaction prices continue to climb when they maybe can't really afford them. >> reporter: the average price for a new vehicle tops $3

phil lebeau has more on the hot summer for used car dealers. >> reporter: name your price. at the mannheim auto auction south of chicago, hundreds of dealers are doing just that. buying and selling thousands of used cars. >> we'll have probably 3500 cars that we'll go through and a car will be sold every 30 to 45 seconds. i call it the daily miracle. this, of course, is the wholesale auction business here. >> mannheim is seeing strong demand by dealers due to a growing wave of used cars rolling into showrooms. three and four-year-old models built as automakers ramped up production coming out of the recession. >> there's going to be a lot more desirable used vehicles hitting the market shortly. and when that happens, there will be more interest for people who are still driving that old clunker. >> yes, even the old clunkers will be resold here. as will recalled models that have been repaired. but the real action is with models just a few years old. they can be turned around and sold quickly. >> the hottest thing we see today are certified pre-owned cars. a car that is two or

and what will the auto industry look like in 25 years, phil lebeau?> reporter: you know, scott, there's lots of talk about electric cars right now, whether it's the chevy volt, the tesla model "s." the bmw i-3 is getting a lot of attention right now. but did oes all of that talk translate? the numbers will surprise you when "the halftime report" returns. in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ so the magic shell went back to being a...shell. get live squawks right in your trading platform with thinkorswim from td ameritrade. and cialis for daily use helps you be ready anytime the moment is right. cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause a

phil lebeau has the details first here.hil. >> these are numbers that will get people talking about whether or not the subprime market is truly hitting a point where people are going to say, um, things need to slow down a little bit. this is from experian. this is second quarter analysis of loans in the second quarter. look at the repo rate, up 70%. 60 days late, delinquencies up 7%. the average default, the average loan that is defaulted upon, $8100. when you look at what's going on in this market right now the dealers are clearly selling more cars to subprooim. those with subprime kred did scores but 19.6% of all auto loans are subprime or deep subprime and that's below the industry average. we'll show you that in just a little bit. by the way the u.s. attorney is investigating subprime loans. earlier today there was a fine issued out of washington against one lender in texas for more than $2 million for supplying false information when it came to getting loans for subprime candidates. and here's what we're talking about.

phil lebeau, thank you very much. from subprime loans in the auto markets to new regulation that would prevent the same, a meltdown in the mortgage and housing markets. diana olick is in washington. >> in response, pretty much every federal regulator having anything to do with a home loans has imposed new rules, regulations and standards. the good news is we're seeing the most pretty steen mortgages today in the history of lending. transunion just reported that the dlingt wane rate fell to 3.46%, come down nearly 20% in just the past year. on the flip side, the cost of compliance, with all these new safeguards, and it would take me the entire show to explain them all is what lender i spoke with called insane. three wards of lenders surveyed said they expect their operational cost toss increase because of new rules, and 95% said overall quality control costs have increased in the past year. now, from the mortgage bankers association, total loan production expenses rose 15% in the first quarter of this year from the las

back to you. >> thank you very much, phil lebeau. back to that jobs number, the economy adding 209,000 jobs in july, the employment rate tibckd up to 6.2%. we are also coming off of a bad day on the broader equity markets, also some concern about flows out of high-yield funds although it seems to be on the shorter duration paper. a lot of reasons for yesterday, we could go through many of them -- >> the list was long. people speculated, it's russia, gaza, argentina -- >> portugal or the prospect of higher rates. we are confronted today with a number many would say is not too hot, not too cold -- >> like mark zandi said. so much of a faster fed. that was really the debate yesterday. the fed was doing to come in and raise interest rates faster than most people, including the markets were willing to accept. now you have to wonder whether all of that conversation is going to be reversed today because of the market reaction off that jobs number. it's somewhat stunning. bad news is good, good news is bad. back to that debate, i guess. >> w

phil lebeau in chicago with the details. phil, taken by surprise by this article in this review?no, because i think it's fairly balanced when you look at the review overall because they are praise worthy for the model s. they say a number of things how the staff enjoyed driving it over the last year. that said, scott, there are a number of issues that were raised by consumer reports and they chronicle what happened over the year of their ownership of the model s and they had a few problems. the model s, while it did have a number of things they enjoyed, had numerous quirks. part of the review, the center screen went blank. eliminating access to just about every function of the car, including popping own the charge port. the shop, a newly opened service center in milford, connecticut performed a hard reset that restored the functions and fixed a creek emanating from the passenger side roof pillar area, d disassembling and refitting trim panels. look, all of these issues were fixed immediately, they were covered by the warranty for the model s, and this is what happened whence you

phil lebeau in chicago to tell us more on what we need to know on all of this now. phil?ice pop for tesla this morning. stock at one point up as much as $10 a share. pulled back a little from that. clearly investors thinked what they heard on the earnings call yesterday. tesla beat the street earning 11 cents per share. 7 cents better than the estimate. revenue coming in better than expected at $858 million, and why is there so much enthusiasm this morning regarding tesla? it has to did with its 2015 production forecast. morgan stanley out today saying these guys are 20% higher than we expected them to be. tesla is weekly production at the end of next year, 1,923 vehicles per week. that works out to a production rate of greater than 100,000 vehicles annually. by comparison, at about 800 vehicles we are week now. you can see a major ramp-up coming from the model x hits the seam pli line next year. july auto sales coming in from all automakers today. these are good number, but not quite as high as many expected. basically between 1% and 3% below the estimates. and nobody is

. >> phil lebeau, you're going to leave with six cars, i can smell it already.fied preowned sales are on the rise. good news for used car dealers but even better for auto parts retailers. mike, you cover all these guys. who's the best of the bunch? >> hi, brian. good afternoon. pt best of the bunch we think there's two. number one is o'reilly automotive. just a fantastic executer. they are still expanding across the country and they're buying back their stock hand over fist. the other is advance auto. they recently bought the owner of car quest. there is a ton of synergy associated with that deal. it will create tremendous amount of shareholder value. we'd buy both of these stocks today. >> a moment ago we were talking with phil lebeau about the sustainability about this boon in used cars. do you think that as more and more people get back to the jobs market and more and more people keep on breaking down on the side of the road -- >> hopefully you won't break down in the road, but i think it is a great point. as the economy improves, what happens is vehicle mile

cnbc's phil lebeau is at a used car dealership in mattison, that's m-a-t-t-i-s-o-n. >> this is a placehere they buy and sell used cars that will eventually end up in dealerships. look at this bad boy right here. looking at a late model vw jet tax that's going to go down there. let's see what the opening bid is. i believe the opening bid, this is an actual bid going on now, tyler. they're going to open that thing, $1,700. that's not what it's going to sell for in a dealership. what you're seeing here, they're going to process 3,500 vehicles will buy and sell and eventually take to their dealerships or ship from their dealerships. what you're eventually seeing is the marketplace showing greater demand for used vehicles. in fact, the demand is so strong, that's the reason we've seen prices moving up over the last six years. in fact, since 2009, really, we've seen a big increase. going up to an average price of just over $12,000. there are 41.5 million used vehicles that will be sold in the u.s. this year. and why's the business so lucrative, so profitable, and so many dealers are here? be

phil lebeau, nightly business report, chicago. >> for more on what the future of transportation might look like, including the airline industry, go to our website nbr.com. that's nightly business report for tonight. thanks for watching. >> have a great evening, everyone. we hope to see you right back here tomorrow night. i really should be going soon. juliet will start to worry. and how long has she got to go? - two weeks. - oh! my mother said that first babies are always late. - we'll see. - mm. how's things going with your new step-daddy? not funny, dwayne. they're just friends. yeah, right. - dwayne, no. - one more. we're in trouble. (honks horn) you're late. and good morning to you, too. - well, that's not fair. - excuse me. i know i agreed to do more small talk, particularly in the mornings,

phil lebeau, nightly business report, chicago. >> for more on what the future of transportation might look like, including the airline industry, go to our website nbr.com. that's nightly business report for tonight. thanks for watching. >> have a great evening, everyone. we hope to see you right back here tomorrow night. >> welcome to "film school shorts" -- a showcase of the most exciting new talent from across the country. experience the future of film, next on "film school shorts." >> "film school shorts" is made possible by a grant from maurice kanbar, celebrating the vitality and power of the moving image, and by the members of kqed. [ answering machine beeps ] >> man on machine: hey, sweetie, it's daddy. i -- i just wanted to tell you that i love you. i...

phil lebeau, nightly business report, chicago. >> for more on what the future of transportation might look like, including the airline industry, go to our website nbr.com. that's nightly business report for tonight. thanks for watching. >> have a great evening, everyone. we hope to see you right back here tomorrow night. >> this is "bbc world news america." >> funding of this presentation is made possible by the freeman foundation, newman's own foundation, giving all profits to charity and pursuing the common good for over 30 years, kovler foundation, and union bank. >> for 150 years, we have believed a commercial bank owes its clients strength, stability, security. so we believe in keeping lending standards high, capital ratios

cnbc's phil lebeau has the story. >> i like that marketing line, tyler. when was the last time you saw an airline actually increase its food service, even adding them to? flights, well, that's happening with united airlines. yesterday in new jersey, the airline gave us a peek at what it's going to be offering in business class starting next year on those flights for those flying in business class or in first class on flights of at least 800 miles. in the past some of those flights did not have food service. now they'll be offering that and revamping what they're offering in business class later this year, adding salads, wraps, a number of new items as they try to spice up the menu. >> menu fa teak is probably the biggest issue. i'm already going to start weeping it clean, because we'll have to in about nine months a year reinvent the wheel and start from scratch. >> for years we've seen airlines shifting menu plans. it's basically down to here is a tray, take a banana, a bag the peanuts, that's what you get on the shorter routes. some have cut back their

phil lebeau, thanks for the vision into the future. look forward to more. >> why is that not surprising. >> i'm terrible, yeah. over to dom chu for a quick market flash on proctor & gamble. >> i like to be the driver's seat. but proctor & gamble wants to be driver's seat. one of the better performing stocks talking up news. reuters reporting the company which was reviewing up to 100 underperforming brans for potential die vesture is likely to shed duracell batteries brand and shaves are brand. that stock up towards session highs up a percent in value on the day. back over to you guys. >> a lot of speculation. >>> straight ahead, the chairman of eurasia group, david gordon will discuss what the geopolitical turmoil will mean for the markets. just take a closer look. it works how you want to work. with a fidelity investment professional... or managing your investments on your own. helping you find new ways to plan for retirement. and save on taxes where you can. so you can invest in the life that you want today. tap into the full power of your fidelity greenl

phil lebeau behind the wheel for us in chicago. hi, phil. >> hi, sue. i'm not surprised to see the auto stocks trading lower, and frankly, this is a sector that's not been loved for some time. that said, as you mentioned, strong numbers for the month of july in terms of what ultimate auto makers reported. here they are and what they did behind the month. the thing to keep in mind, these are very good, but they're not quite what many people were expecting, maybe a percentage to 3% lower than expectations, and a couple of these stories in here stand out. first of all, general motors. fleet sales jumped 26% in the month of july. 26% while retail sales were flat. a bit of a concern for some people looking inside the gm numbers. still a gain of more than 9% for the month. as for jeep, boy, these gees have been red-hot. jeep sales surged 31% in the month of july, the best july sales ever for jeep, and that stock, that company has been doing so well lately. it's reflected in what you mentioned rather fiat, the shareholders today did approve a merger for fiat c

and phil lebeau, the expert, says he doesn't think it's a big deal for them. as a consumer, though, the consumer reports gold seal of approval made me want this car. aspirational. boy, next time i get a car, i hope it can be a tesla, but if i can't open the door, if the screen's going blank, that makes me think again. this is a bigger issue, perhaps, than the fires. a pattern, though, for people to really feel it's more than just one or two cars. every car has problems. we'll see. >> i think you're the only potential tesla buyer going on the "consumer reports." this is a trophy asset. yes, want it to be reliability. more people have this because they want to be seen driving it than because they expect the door handle to work were. now, the door handle should work, but i don't think it's that seal of approval that necessarily is the make or break decision for people. >> kevin, do you drive one of these? >> no, but i'm seriously thinking of getting one, carl. i was in south beach recently. walked into their demo room and rather interesting experience. i love the

phil lebeau, thank you very much with that terrifying look at the next 25 years or am i exaggerating.anes? >> hey, kind of exciting. >> just as long as it's safe. >> with the panel before we go? >> hp sales, another important look at the enterprise. >> marcus? >> we'll tell you what happens with crumbs by thursday afternoon. >> you had your chance right here. michael? >> stay in dividends. don't sell yet. >> you have ten seconds. >> okay, fine. thank you very much to everybody for being here. that does it for us on closing bell. "fast money" begins right now. >>> "fast money" starts right now. live from the nasdaq market site in "new york times" square. i'm sarah eisen in for melissa lee. our traders are peat and guy adami. apple closing in on $100 a share. we've got the details on a new study just released ahead of apple's new iphone 6 launch. today's top story, the running of the bull. stock rallying on news out of russia and ukraine. oil falling to a near seven-month low. are there any red flags that could derail this rally? pete? >> well, i think the only red flags out there obvio

and phil lebeau, welcome. adam, you first. nothing to be disappointed in this report about?> it was a good report. i'd say they're kind of alignment of the telemetry of their ramp, the model s to the international markets, probably running about 20% higher than towards the end of this year and through next year. >> phil, your read here? >> the confidence you heard on the conference call. talking about production next year. they were careful not to make it sound as though, look, they were hedging bets saying we think we'll have full year deliveries above 60,000, but the production rate at the end of next year will be basically 1,925 vehicles per week, factor out 100,000 for the full year. they're at 800 right now. you could hear that confidence in elon musk talking about, yeah, i'm comfortable where we're headed and that the production, the deliveries next unique ultimately split 50/50 between the model x and model x. >> phil, heard you yesterdand m >> any commentary on the call about the giga factory? we got it, found out they broke ground. how significant? >> it's significa

. ♪ your ticket to a better night's sleep ♪ >>> phil lebeau, what are car sales telling us about thete of the consumer? >> they're telling you the consumer is very confident right now and is going back into the showroom, and has no problem spending more money than ever before when it comes to buying a new car or truck. the average transaction price is somewhat over $31,000, depending on which service you subscribe to. when you look at what people are buying right now, mandy, they clearly are trading up, because they want technology, they want connectivity and also stretching out their loans over a longer period of time, because they're trying to get a lower monthly payment or the lowest possible, typically under $3500 a month. what you're seeing is consumer confidence is strong, that's driving a lot of sales in the showroom. there's a direct correlation, as consumer confidence goes, usually that's the direction of auto sales. >> it's interesting, just a moment ago, we were talking about how tepid the u.s. consumer is with regards to macy's et cetera, but they're willing to open their

phil lebeau is here. we can -- i mean, i don't know if you're as exciting as anyway. phil?g kids are allowed on planes. you won't believe it. we've got the whole story coming up. "squawk box" returns. so what ya got on deck? skyfall. lean in, then some pinterest, you? twitter. minecraft and then some hunger games. boom. wow, you guys are all set, huh? oh yeah, new amazon fire phone. it comes with amazon prime - tons of cool stuff for no extra charge. really? it comes with amazon prime? yeah, there's so much to watch. i've been on this earth nine years, i've never seen anything like it. the new amazon fire phone, with a full year of prime included. exclusively on at&t. where the reward was that what if tnew car smelledit card and the freedom of the open road? a card that gave you that "i'm 16 and just got my first car" feeling. presenting the buypower card from capital one. redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac - with no limits. so every time you use it, you're not just shopping for goods. you're shopping for something great. lear

and phil lebeau, the expert, says he doesn't think it's a big deal for them.though, the consumer reports gold seal of approval made me want this car.

our phil lebeau flagged this.ire mccaskill introduced legislation if that passed, carmakers who don't recall their cars could face prison in some cases. how do you feel about this. >> clearly, we are very conscious of the environment we operate in, and safety is of primary importance. to that extent, i can't comment on others, but certainly from our perspective, we're very diligent in it, and should we sense there is a concern, we would take prompt and immediate action. >> i know that lindsey here has her economist hat on, even as she's enjoying the interior features of -- >> i'm a bit distracted. >> -- the car, lindsey. this being one of the places we're looking for demand, whether it's the luxury part of this economy or the car-buying group out there in general. >> we certainly know autos was a very important point to second-quarter gdp. we talk about consumption up 2.5%, but durables was up 14% because people were out buying cars like these, contributing about 0.5% to the headline growth. so, certainly a very k

car manufacturers have left hertz with limited vehicle availability and hertz rntal car revenue phil lebeaus from chicago with the story. things should be going for hertz, you would think. that's why it's a little of a surprise, right? >> well, they've got some intern am issues that are a part of this as well, joe. there is no doubt the recalls, which are a record level this year for the auto industry is hitting hertz and the out rental companies, in fact, i've seen this myself when i have gone on trips, increasingly at the hertz counter, hold on a second, we have to lower the full-year guidance, they've actually pulled their guidance altogether. >> that i have said, look, what we're expecting will be well below the hoest previous estimates in full earnings gains, they are also reviewing their 2011 to 2013 financials. they've already said in the last couple of months, they've already found about 46.3 million in accounting errors when they go back and look at financials the lead independent director announced he is leaving the board. what is getting attention is hertz is blaming the massive

phil lebeau joins us from the mannheim auction site in madison, illinois, with that story for you. to you, phil. >> good morning, andrew. this is an interesting day to be here. aside from the rain that's moving through here right now we are going to see about 3500 vehicles bought and sold here today. the auction is going to start up in a little bit. they're getting some of the cars behind me ready for that auction. this market, the used vehicle market, has been red hot over the last six years. in fact, take a look at the change in wholesale prices when it comes to used vehicles. you go back to 2008, 2009, you had used vehicle on the wholesale market selling for about $9,000. in july, they were selling for just over $12,000. the used vehicle market is red hot. and it's getting better profit margins than ever before for the users dealers. in fact when you look at the used vehicle profit margin last year it was about $2300 on the used market. you can compare that with about $1200 for new vehicles, and that's the reason why dealers are looking for those used vehicles. they're also seei

phil lebeau joins us with more. this is a good thing. upgrading food.ke that. >> we don't see this very often these days, becky. and this is something that i think some people who fly united airlines on a regular basis will say what? that's a nice change of pace, adding meals for a few more flights. here's what united is doing. really two changes. one is the fact that starting next year they will be adding meals for their premium customers, we're talking about people in the business class and those few flights, very few flights that have first class. those are on domestic flights at least 800 miles in distance. that's a little bit shorter than they were in the past. at the same time what we're going to see starting next month is united revamping its business class meals to include salads and wraps all in a hopes of freshening the menu, and adding a little bit more pizzazz to those who are really frankly tired of what they're seeing when they come to the meals in business class. >> menu fatigue is probably our biggest issue i think when you're flying. be