phil lebeau has more. >> it looks like airlines are getting the message. after years of overselling flights and dismissing it as the way business was done, carriers are changing their ways. in fact, the departmen the numb of people kicked off of flights in the second quarter dropped almost 30%. what's changed? after dr. david dau was dragged off a flight in april and it erupted as huge scandal, airlines did an about face. some like southwest said they would stop overbooking flights all while others like united said they would focus on dramatically cutting the number of passengers they bumped. a move showing the airline realizes social media has changed how airlines interact with customers. >> with regard to social media, it's something we have to adapt to, but overall, other than just being nice, we have to train and develop and nurture a more values oriented customer service policy. >> jet blue is also charting a new path with its passengers. the airline has hired gladly, a platform designed to improve how airlines communicate with customers. the key, con

phil lebeau, "nightly business report," chicago. >>> farmers are watching the talks. many have benefited from the trade deal, but they also have a wish list of improvements. aditi roy is in america's garlic capital, gilroy, california. >> reporter: harvest season is in full gear in gilroy, california. the bell peppers are shiny, red and in perfect shape to go to vendors and ultimately customers' dinner tables. has it been a good season so far? >> yeah, so far so good. you know, production has been good. the markets have been good. >> reporter: in a few months when they peppers aren't in season, yusigi farm owner says he relies heavily on farms in mexico to supply bell peppers so he can stay in big year round. >> there's a four-month window where we can't product in california, it's too cold, the days aren't long enough. it's a big part of our program. >> reporter: as the trump administration enters renegotiations with the mexican and canadian governments over nafta, some farmers are aingely awaiting the outcome. for added tariffs could in the short run affect up to a

phil lebeau, "nightly business report", chicago. ki of experiment is fly iing high. >> i'm morgan brennan in new mexico. holloman air force base is home to the 49th wing and where most are trained, but something else is here right now as well and that's something that could help transform the way military equipment is acquired. that's coming up next on "nightly business re >>> consumer report ss pulling its recommendation on four microsoft laptops. this after one survey found users were complaining about problems with those devices. based on the results, the magazine ple dikted that one quarter of microsoft's laptops and tablets would have reliability problems in the first two years of ownership. >>> the air force needs new fighter jets, but they're expensive. so, it's doing something unusual that could give smaller contractors a chance to build a cheaper plane. morgan bren p reports from holloman air force base in new >> in the middle of the desert, fighter pilots have been conduct testing in a new kind of experiment. >> we took a

phil lebeau has more on the summer slowdown in the showroom. >> summer is traditionally the big e time of the year for auto dealers, but in july, sales cooled off with general motors reporting a 15% drop in sales as the big three all reported weaker than expected business. toyota bucked the trend with positive sales. fueled in part by solid demand for crossovers and suvs, but in fact, edmunds.com says it took an average of more than two and a half months once it got to the dealership, the slowest rate since 2009. what's hurting business? in reality, americans have bought so many new vehicles over the past seven years, just not as much demand. meanwhile, there's a flood of cars coming off lease that pric especially on three and four-year-old models that have relatively low mileage and are still in good shape. as a result, automakers are wrestling with how much they can cut production and in some case, whether to phase out some slower selling models. for example, cadillac is rebalancing its lineup of cars to better meet demand. that will ultimately mean it offers one fewer model. there i

that sent shares of rockwell collins rocketing higher by about 7%, but as phil lebeau tells us, getting a deal done may be tough in this environment. >> reporter: after a five-year run with impressive growth and profits, rockwell collins has become one of the most lucrative and attractive aerospace and defense, aircraft interiors, to avionics in the cockpit, high-tech helmets used by f-35 pilots. all of which has drawn the interests of united technologies which has its own impressive list of aeropace and defense products including pratt & whitney engines. neither company will comment on reports of a possible deal, both firms hired bankers to advise them. owners say the combination is a distinct possibility. the limited overlap in products why a deal between utx and rockwell makes sense. combined, the companies would be powerful in avionics and aircraft interiors. and they would be in a stronger position to negotiate with airplane manufacturers like boeing which has recently formed its own avionics division and is increasingly looking to grow business in areas where suppliers have long m

phil lebeau, "nightly business report," chicago. >>> coming up, bonds, gold. with all the global turmoil, is now the time to get into safe havens? >>> s&p says the u.s. would keep its double a plus credit rating if the government does not default on the national debt even if it doesn't raise the debt ceiling, right away at least. last week barclays said not raising the debt ceiling could push the economy into a recession if the situation dragged on. the deadline is one month from today, but as ylan mui tells us you, that likely won't happen without a fight. >> reporter: conservative republicans in congress are starting to lay out their demands in cooperation for raising the borrowing limits. representative mark walker is head of the powerful republican study committee and he told cnbc that an increase in america's debt limit should be paired with reforms of medicaid. he believes tightening the work requirements to enroll in medicaid could save $200 billion over the next decade. >> we're just wanting something concrete as we go back to the people that we serve

phil lebeau takes a look at the updated all-electric van called the idbuz. >> reporter: it's a blastrom the past planned for the future. voke wagon's idbusz zz is an electric van hitting the streets. >> it also carries into the future with all the electrification and sensors which will make the car fully connected and autonomous. >> reporter: volkswagon may pack the latest technology into the idbuzz but hoping the new van will carry the spirit of the vw microbus. youthful, carefree, a reminder of when volkswagon was cool. these days, volkswagon's image is far from different. the passat or jetta are fine but not cutting edge. many were caught up in the rigged emissions scandal. in short, vw's image and sales in the u.s. have taken a beating. the company read admits while trying to turn the page. >> volkswagon is a brand which has a basis here. everyone knows the microbus or the beetle from the old days. basically, people love volkswagon. from t told dold days. we made many mistakes. we try to make it right from start. development over the p i'm quite optimistic about this year and nex

phil lebeau has more on the two new electric vehicles trying to make carmakers and buyers rethink what it means to go green. ♪ >> reporter: tesla has finally rolled out its model 3. in front of a throng of tesla employees at its plant outside san francisco, ceo elon musk delivered the first 30 model 3. >> we're going to work day and night to do right by the loyalty that you've shown us, thank you for doing that. >> reporter: now that tesla has delivered the first 30 model 3s, the real challenge comes. producing a half million vehicles next year. as tesla ramps up its production, its racing to not only fill reservations for the model 3, but also win over car buyers who traditionally look at a mercedes "c" class or bmw 3 series. >> tesla definitely can compete with mercedes-benz and bmw because it does have that elevated image. it doesn't necessarily have the product lineup that a mercedes or bmw has but in terms of people wanting to pay a little bit more, it could definitely capture more of those type of customers willing to pay extra to drive a car that represents how they feel about l

our phil lebeau in chicago when we come back, we'll go live to south carolina.are anxiously awaiting the total eclipse of the sun when qua"squawk alley" returns i was wondering if an electric toothbrush really cleans... ...better than a manual, and my hygienist says it does. but... ...they're not all the same. turns out, they're really... ...different. who knew? i had no idea. so, she said look for... ...one that's shaped like a dental tool with a round... ...brush head. go pro with oral-b. oral-b's rounded brush head surrounds each tooth to... ...gently remove more plaque and... ...oral-b crossaction is clinically proven to... ...remove more plaque than sonicare diamondclean. my mouth feels so clean. i'll only use an oral-b! the #1 brand used by dentists worldwide. oral-b. brush like a pro. ♪ >> an uncertain forecast is clouding eclipse excitement in columbia, south carolina our contessa brewer is live in columbia contessa, what's going on? i know a lot of people have gone down there to see this >> reporter: yeah, this place is packed they're calling this event

phil lebeau, "nightly business report", chicago. >>> coming up, what beyonce and jay z will pay to buy their dream house in los angeles. you won't believe the size of th. >>> we're mourning a lot. we're ip know vating. we're seeing what's portable. what we can continue with here. what we can put online with services. we're doing what we want to do. creating connection with our consumer. >> as of now, there are no plans to create the wellry and other stack stores. pieces may get introduced in the future. the department store is mum on traffic and sales metrics but seems to think it's on to s something. >> it's all about feeling better. the consumer is feeling better. like a lot of fashion and trend, it will take more time to take hold but we have a lot of momentum. we'll continue to learn what's important. >> consumers may be more into health and fitness but do they want to get their wellness fixed from a department store? for "nightly business report", i'm courtney ragan in new york city. >>> here's a story you don't hear every day. the power company and jay z took out a $52 million mo

not sure the politics favor that kind of chinese takeover >> that too. >> phil, thank you phil lebeaulet's get to seema mody at headquarters the european close >> sarah, just like in the u.s., upbeat day for european stocks take a look at the german dax. in rally mode. posting the best one day performance since july 12th and shrugging off a disappointing report on economic sentiment it is also a strong day for the miners led by bhp billiton they're announcing plans to exit the u.s. shale oil and gas business a move that has been pushed by activists and manage ment. they also did a jump in underlying net profit. miners also getting a lift from koerp prices which we've been discussing now at a record high. meantime, in currency land, the euro moving lower against the dollar they await the jackson hole speech not just by janet yellen but mario draggy mario draghi. he is talking about buying back that program the euro trading down from the 2 1/2 year high hit earlier this movement another reason stocks moved higher today and we finish with a plunge in shares of providence financial defini

phil lebeau join us from chicago with more. >> reporter: remember, this started because of reports overkend that united technologies might be interested in buying rockwell collins earlier today, dow jones reported that there was at least an offer made below $140 a share. we do know from our david faber that both companies have hired bankers to advise them but officially neither rockwell collins or united technologies is commenting regarding the discussions or what discussions might be taking place. on paper, this is why this deal makes sense and, yes, the defense side of the portfolios gets a fair amount of attention. you have to look at the general aviation or commercial aviation side limited product overlap. and they would be very strong, the combination of avionics, what rockwell collins brings to the table, as well as aircraft interiors, and you have to understand that united technologies also has sizable aircraft interior business, but together these companies under united technology's banner would be stronger when it comes to negotiations with the airplane manufacturers. they're t

phil lebeau has more on the vote and what it says about organized labor in america. >> it's voting day for 3800 nissan workers in canton, mississippi. their choice, join the united auto workers or remain independent. the uaw says nissan workers are looking to ensure greater pay and benefits. especially for temporary workers hired by the automaker. >> the discussions i have had with workers in canton, mississippi at nissan, they're all concerned about the temporary workers. they all feel for them, right. so, if they want to do something down there, the first step is to vote yes. >> but the uaw has a long struggle to connect with auto workers in the deep south. yes, it represents some employees at the volkswagen plant in chattanooga, but in s union free. partially because it's filled with rig states and many blue collar employees in those states have never felt compelled to join a union. a spokesperson for the nissan says they think that's still the case saying we don't believe the representation is in the best interest of the employees of nissan canton. meanwhile, after the three sh dow

develop more of that ourselves as opposed to saying, okay, yeah, we'll simply go to a supplier. >> phil lebeaues at boeing. >> so cool looking now i would wear those just to wear them they're great. i want a pair. >> phil, thanks so much. >>> when we come back, ceos dropping out of the president's council on the heels of the unrest in charlottesville. we'll check in with pulitzer prize nnwiing columnist jim stewart. >>> home depot dragging about 35 points off the index experience unparalleled luxury at the lexus golden opportunity sales event before it ends. choose from the is turbo, es 350 or nx turbo for $299 a month for 36 months if you lease now. experience amazing at your lexus dealer. >>> intel ceo brian krzanich becoming the third ceo to resign from the president's manufacturing council following his statements about charlottesville over the weekend. you touched about this back in february, risky business for ceos, an invitation from trump now we're seeing what it means to serve on these. and summers makes the argument that even if you're on them willingly, you're not maybe getting the

phil lebeau tracks both. he's live in chicago with the latest hi, phil >> let's talk about the auto industry and how the impact is going to be felt, not only in the houston area, but in texas and for the broader industry, overall, we've already seen citi bring down its estimate in terms of the sales rate for the month of august. and remember, we get those numbers on friday. citi bringing it down to the low 16 million range look at some of these pictures we've received from the texas auto dealers, who are saying, boy, it's bad. and depending on what dealership, look at this that is an auto lot, some of these cars are completely underwater now it's going to be a complete loss for some of these dealers whether they're in the used lots, as these pictures show, or in some cases, the new lots. we do know that some of the dealers tried to move their vehicles to higher water, but as somebody told me, when i talked to them earlier today with the texas auto dealer's association, he said, look, some of these dealers, the

phil lebeau, how did they look in. >> not great 16.73 million. that's the sales rate for the month of july. i think that makes the fifth straight month that we've seen a sales pace under 17 million vehicles for some comparison guys, july of last year, the sales rate was 17.81 million, so 16.73 million is the sales rate for last month. back to you. >> all right. >> certainly seeing that that in the stock reaction gm and ford down 2%, 3%. >> what a great time to buy a car. >> why, because other people aren't >> i bet you don't even own one. >> i do not own a car. >> never a good time to park in new york city. >> yeah. unless you can rent one of those parking spots. >> yeah, i guess even that's expensive. >> she's looking at me like where is this going? >> going to the closing bell exchange with the dow up 72 points, the chief investment strategy at jenny montgomery and steve grasso from post nine and rick santelli gheks from the cme in chicago. just from march to now, from 21,000 to 22,000, this market continues to move on. >> always have a big ben

, everybody, boeing boosting production in the hopes of easing the company's backlog of orders, phil lebeauat the boeing 737 plant in washington. hi, phil >> reporter: i don't know if you've had a chance to look at the percentage of the dow move this year that is responsible for coming from boeing, it's 560 points of a little over 2200 points that the dow has gained, 25% of the gain this year has come because of boeing we talk about the increase in production you can see it right here on the line in renton, washington thgs the 737 line. they did make 42 a month earlier this year. they've just converted up to 47 per month. that's where they are at right now. next year they go up to 52 per month and then in 2019 they go all the way up to 57 per month so a huge increase in production, part of the reason they are able to do that is because they are moving through much more efficiently. one of the planes here and they are in seven positions when they come in, they attach the wings to it. within a week it will be out of here this is a moving assembly line doesn't look like it but it is greater ef

phil lebeau is in renton, washington phil, tell us about this ramp up >> east all about the executionand we'll talk about the 737 in a little bit but first there a trifecta of good news. the company said that it was going to have operating margins north of 10% at the same time, it's expecting to grove its cash flow not just for this year, but over the next couple of years and it raised its earnings guidance for awful 2017 thousand abo now about the 37 they are in the midst of a dramatic increase in monthly production of it's monday popular plane. earlier they were building 42 a month. now they are building 47 a month. and next year they will go up to 52 per month and then in 2019, it will be at 57 per month how are they doing that? a little bit by trimming their payroll, getting greater efficiency from their workers, and adding in more automation. in fact we talked with one of the executives here, he said if we didn't have that all the nation, we wouldn't be able to build 57 a month or at least plan to build 57 per month by 2019 so again, it's about the execution, consider this, profi

back to you. >> thank you very much phil lebeau. here we go again, right?'s what those railroads were saying on those conference calls, saying this is going to be the problem for the second half of the year autos. >> what's going on what is going on >> a lot of people feel that everybody has an automobile that -- >> what you don't want to hear is layoffs. >> layoff production. >> they take -- inventories are high i'm concerned because i was really hoping that union pacific was being too negative in norfolk southern but what phil just said is that there will be no recovery in transports of cars, such an important part. >> transports have come way down. >> oh, my. >> few weeks ago. >> we did get an upgrade of united that conference call was spirit where they talked about how everybody else is cutting prices that was very bad. a negative call. >> we'll get gm in a few minutes. >>> meantime s&p will begin excluding companies that issue multiple share classes that takes effect today and does not impact existing members like alphabet and berkshire one company tha

as authorities and businesses continue to battle the impact of tropical storm harvey, phil lebeau reports on the impact to the airlines and auto industries >> while hurricane harvey has hit a number of businesses hard, two industries are going to find this week to be long they try to get up and running the auto industry. some auto dealerships in the houston area that look like this, the cars completely under water. we should point out of the 500 dealers in the houston area, many of them were able to move their vehicles to higher ground where they are not impacted by the floodwaters. sfi still, there are some who are facing catastrophic losses for the airlines, houston international is completely shut down until thursday afternoon and houston hobby is closed until further notice that impacts united airlines an southwest airlines which have a large presence there they say they are ready to resume flights once they are up and running but that may take several days >>> in other news, special counsel of robert mueller's team is investigating whether president trump tried to conceal the purpose

phil lebeau joins us with more details from chicago hi, phil. >> hi, melissa this is a big announcementnd mazda here's what they've announced. the plant is only one part of this it will get the most attention today. it is a joint manufacturing plant. $1.6 billion is how much they're investing. they have yet to pick a location that will happen over the next several months 4,000 workers building vehicles. 300,000 at capacity. half for toyota, half for corolla. mazda will have the other half of the vehicles manufactured there. when they made this announcement this morning in japan akio toyota and the c oe o of mazda said they're developing electric vehicles future technologies. that's part of the joint venture. the two companies are taking a stake in each other. at least a little bit of a stake to mention the commitment to each other you mentioned the trump tweets he was out tweeting this morning, remember what he tweeted oh, not too long ago when he was first elected. toyota motor said it will build new plant in baja, mexico. they're not building in baja, mexico, to build corolla cars for

toyota bucking the trend that was the only company to post gains for the month phil lebeau gets under the hood. >> reporter: summer is traditionally the busiest time of the year for auto dealers but in july sales cooled off with general motors reporting a 5% drop in sales as the big three all reported weaker than expected business. toyota bucked the trend with demand for crossovers and suvs in general, dealers are taking longer to sell new vehicles. edmonds.com said it took an average of 2 1/2 months to sell a car or truck once it got to the dealership the slowest turnover rate since 2009 what is hurting business? in reality americans have bought so many new vehicles over the past seven years that there's just not as much demand. meanwhile there's a dmrglut of s coming off lease driving down sales prices, especially on 3-year-old and 44-year-o-year-os that have low miles and are in good shape some companies are wondering whether tophase out slower selling models cadillac is revamping cars to better meet demand that means one fewer model one thing is helping automakers ride out the slo

likely destroying thousands cars, much like we saw with another hurricane five years ago, sandy phil lebeaus breaking down the effect actually, harvey's effect on the auto industry >> and here's the latest estimate we heard from cox automotive industry. they run auto auctions they said we've done math here there are about 250,000 roughly speaking vehicles that were scrapped during sandy. the estimate is that it could be as many as a half million vehicles that are scrap due to hurricane harvey and the flooding look, every video i've seen still picture that i've seen, it's been nothing but cars that are flooded all over the place these cars are trashed now, some might be fixed and could be reappear ng the market salvage, but that's a separate story. the bottom line is this. the used vehicle market initially is likely to see prices surge when you look at the value of used vehicles right now, they're at close to a record high according to cox automotive and the manheim used vehicle value index. probably going to spike a little due to the tighter supply in the houston area at least initially, th

shares of tesla rose around 8% in after hours trade phil lebeau has a wrap on the results. >>> shares of tesla moving higher after hours up more than 6% after the company reported a smaller than expected loss of $1.33 a share. revenues beating the street at 2.$2.7 billion most on wham street weall stree expecting 2.5 billion. most analysts on the call with tesla focused on the production of the model 3, which the company is in the midst of ramping up production. the company expects to deliver 1,800 in the third quarter and then 5,000 per week by the end of 2017. and then at some point in 2018 hit a production schedule of at least 10,000 vehicles per week here is elon musk talking during the conference call about the production targets and whether he thinks tesla can meet them. what people should absolute i will have is zero concern about, zero, is that tesla will achieve 10,000 unit production week by the end of next year >> one final note on the model 3, there was a new number for total reservations for the vehicle. the net number is 455,000 reservations for the model 3 there have be

>>> tesla is looking the to raise a cool $1.5 billion to get model 3 production up to speed our phil lebeaugo with that and some other little tesla tidbits this morning phil >> sarah, not a big surprise given the fantastic that elon musk during the earnings call last week said that the company was looking at the possibility of raising capital through a debt offering. here are the terms $1.5 billion in debt i mentioned the terms. we still don't know the specifics nor the interest rate. we do know that they're going to be maturing in 2025 and the cash, as you mentioned, will be funding production increases, primarily driven by the model 3. this has brought up the question of tesla and its cash position, how quickly it's burning through that cash. in the second quarter, the cash burn was $1.2 billion. it ended the quarter with $3 billion. and the second half of the year, the capital expenditures will be $2 billion so this will give them greater cash cushion at the same time, tesla is cutting the price of its model x luxury crossover utility vehicle by $3,000. that will bring the base price dow

. >> we have an actual jeep in the family now, a whatever -- a sahara >> phil lebeau syphius would bet's the committee that looks into foreign investments and whether or not. >> i'm thinking of the other guy sysifus. >> sore about that private label functions, let's get to courtney reagan she joins us with a special guest. hi, courtney >> good morning, joe we have some exciting things to talk about here. i'm with macy's ceo jeff gennette we're in your woodbridge store how long he's coming from ebay, taking over one of your titles and you're realigning merchandise how will all of this help macy's lift sales >> thank you for having me i think yesterday's announcement was all about how macy's is going to grow sales faster the first was hal lawton, and he's a great choice for macy's what he learned in terms of his retail experience, and now coming about, and then we made this other announcement about massively restructuring our organization we took three organization, collapsed it into one, and put an internal great leader jeff cantor to run that our consumer insights teams, we moved into

facing delays and cancellations across the country as harve continues to batter southeast texas phil lebeaus monitoring the situation for us >> we're going to talk also a little bit about what's happening with the auto industry but let's first of all talk about where things stand in terms of air travel into or out of houston and remember, there are two airports there houston international as well as houston hobby. both of them are shut down, and it's easy to see why when you look at some of the images that are coming out of houston. they basically say what few planes that were still there or were in position, you're not going anywhere in some cases, you have swamped runways, as a result, the aircraft is closed through wednesday, although this is fluid. if it improves, they could potentially open up before then. but nobody is expecting that a little over 1,800 cancellations today. the two airlines hardest hit, united, which has a hub at houston international, and southwest, which has a big presence at houston hobby. let's talk first of all about the number of flights canceled out of that are

lebeau. phil, let's start with tesla. >> it's all about the conference call this asp.en tesla reports earnings after the bell, the real interest will come when eli musk talks about an hour later. a couple things people will be looking for, first of all, what's happening with model 3 production where are they as far as increasing that production that will lead into guidance for 2018 production, and do they give us any commentary on potential new plants, as well as new gigafactories. the numbers do matter with tesla, but just for good measures, the company is expected to report a wider loss than a year ago. revenue will be increases, they're expected to top $2.5 billion. >>> hyper loop in a new test >> that's the video of the day this is the video of the day remember one day we had the hyper loop executives on the "power lunch" set about two, three weeks ago, they talked about building a pod, here's the video to show they did it. about a week and a half ago, they got up to 192 miles per hour in the development loop out in the nevada deserts. the target for them? 250 mile

back to you guys >> all right, phil, thank you so much phil lebeau.ning us now on the "squawk" news line is autonation chairman and ceo mike jackson that company has 17 auto dealerships, seven collision centers in houston and 1800 employees. mike, thank you for joining us what can you tell us, first of all, about the state of your operation there's on the ground and the people working there >> well, kelly, good morning looking at the images from harvey your heart just aches for what the people of houston are going through. but you also see so many inspiring stories. but not only the professionals who are working around the clock, but volunteers coming out on their boats to rescue people. it really is a demonstration of the american spirit. and there's no question in my mind about the resiliency of the texas people, and those in houston who will rebuild now as far as the state of the business, it's at a standstill we had our crisis management team prepositioned in texas with the mandate to carry for the well-being of our associates first and foremost,

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highs, reports that united technologies may be weighing a bid for the aircraft components maker phil lebeaulive in chicago >> we heard that the dow jones was reporting there was a bid for less than $140 a share from united technologies to rockwell collins. here what is we know there have been a couple of reports that started late on friday and over the weekend that there may be a bid for rockwell from united technologies we do know that both companies have hired banksers to advise them take a look at the portfolios. they fit together very nicely. they would be very strong in avionics and aircraft interiors and in a stronger position for negotiations with airplane manufacturers, airbus and boeing they may say they are a little too strong regulatory approval could be a hurdle as well as the rich price for rockwell collins if the bid is only 140 or less than 140, some have said that may not be enough to make it happen rbc capital says it is a 50/50 chance of a deal they think it is closer to $145 being the price point at which rockwell collins would make a deal, shares of rockwell collins gett

. >> phil lebeau had a great analysis today what happened with volvo when the chinese bought it versushen ford sold it just remarkable and a comment about the chinese government they want more sales overseas. imagine like truch smp saying, telling any of these companies, the communist party is not a democracy. they basically tell you here is what's going on. we are a democracy people lose sight of the fact that the chinese, who in my regard are the least fair traders in the world when you hear that comment you think about what dan damico talks about, former ceo of newport. you're playing with people who do not play they just dominate they don't play fair. >> you are sympathetic to the view that we're reaching a point where either you change how you deal with china or they become the dominant player? >> yes in health care if that chinese communist government decides to cure something, they have these hospitals with 500,000 people per hospital, national epidemic of respiratory diseases. if they decide to go to drug and health care we could be hurting in a leadership area i like the chine

. >> thank you >> we've got an update now on harvey's impact on united airlines phil lebeau has more details phil, this is one you highlighted as being heavily affected >> right unit's hub is in hues top, one of its hubs is in houston and because houston international is shut down. it's not just people who are flying to houston but allots in that area. they will be offering travel waivers for 15 pirpts, as far west as san antonio and far east as shreveport and new orleans and that's because so many people will fly into houston international and then catch a reason nal jet to one of these other airports if you can't get into houston international, you won't make it to your final destination and that's why united is pushing these travel waivers or offering these travel waivers for these 15 airports for travel through september 5th. guys, back to you. >> yeah. doing what they can can, i guess. phil, thank you. >> you bet. >>> less than 45 minutes to go here before "closing bell," and we've seen the dow and the s&p in pretty tight ranges all day long the dow down 26 points, but you're see

phil lebeau in chicago >> let's get back to brian one more time on "power lunch" in gavelston, texas >> reporter: hey, joe. you know, just to wrap up. i'll tell you what what phil says strikes home. root for houston you can't get out of houston the airports, as phil just says are closed people are stuck in the city we've driven around extensively. most of the roads are closed the interstate, as we showed you this morning from yesterday, a lot of it is flooded and here's two pictures today driving around, cars-ins pools of water and flooded gas stations it really is an isolated area. people are coming together, but it's an isolated area. root for houston we'll see you tomorrow. >> see you tomorrow, brian great work out there meantime, we'll be right back with more on the impact of this massive storm. stay with us this is not a cloud. this is a tomato tracked from farm to table on a blockchain, helping keep shoppers safe. this is a financial transaction secure from hacks and threats others can't see. this is a skyscraper whose elevators use iot data and ai to help thousands get to work

phil lebeau has been doing some reporting on this story for us phil >> reporter: no doubt they are interestedver in chip, and they have made it clear great wall knows it has to expand and it has an interest in fiat chrysler but i think it might be overstating it to say there's been a formal offer extended there was a report out of asia that great wall had contacted fiat chrysler and when we reached out to fiat chrysler the company said we've had no formal discussions with any automaker including great wall about jeep or any other asset in the fiat chrysler portfolio by the way, jeep is widely considered to be the most valuable asset owned by fiat chrysler because sales totaling about 1.4 million this year worldwide and they are just scratching the surface in china which is a huge suv market and only getting bigger, so who is great wall and what are they all about? it's among china's biggest automakers their sales last year in 2016 were up 44%. now, suvs and crossovers, they've been going through the roof that's one reason why greatwall is doing better, by the way, their main brand over there,

tesla the strongest performer after earnings were up 7% at last check phil lebeau has a little more todd. phil >> when you look at what happened to tesla in the quarter, a lot is focused on the cash burn and how much liquidity they have right now and how much it goes through in the second half of this year. here are some numbers to consider cash burn in the second quarter, $1.1 billion they ended the quarter with about $3 billion in liquidity and capital expenditures in the second half of this year as they continue to invest in production, giga factories, et cetera, about $2 billion and speaking of those giga factories, remember, they have one that's up and running. that's just outside of reno in nevada this video says it all this shows you how quickly they are expanding that giga factory. giga factory number two in buffalo, new york, that's expected to go into operation and open in the third quarter, and then after that get ready for more giga factories. >> we're also thinking hard about where do we put giga factories three, four, five and six. we expect to keep the majority of our pr

. >>> let's get to phil lebeau a news alert on tesla. >> reporter: as expected and this is not a surprise we knew this was going to happen there's greater than expectsed demand for the debts offering from tesla. in fact the company originally hoping to raise 1.5 billion. they will raise 1.8 billion through the sale of these bonds. the yield coming in at 5.25% so 5.25% is where it's at. again greater than expected demand to nobody's surprise when it comes to the debt offering from tesla back to you. >>> yeah i mean that's the way high yield bond off erosierings go. >>> let's stick to these markets here we'll get our closing bell exchange guys, thanks for being here. kenny, interesting market kind of taking this in stride trying to sneak into the weekend in a calm way after a pretty big drop yesterday. >> look what it's done the market has backed off. we were higher now it's almost flat you can feel a little bit of the nervousness although it feels to me that the market around the 50 day moving average is where it found some buyers. last time we broke now that being said i think everybody t

our phil lebeau is with us on more on how the trucking industry is changing do we know about tesla's ing on an electric semitruck. we can tell you that yesterday executives from tesla did meet with the california dmv to discuss their autonomous truck plans. there are other reports that tesla may be looking at platooning these trucks together when they are testing them on the roads of california and potentially in nevada as well. it'll be some time before tesla actually rolls out one of these vehicles that you'll see in use on the roads in a commercial sense. but by the end of this year, take a look at this vehicle. this is an electric truck by a chinese backed firm that will be rolling on the streets of california potentially by the end of this year the company is change. it is backed by a chinese official putting up a billion dollars. commercial work vans, urban customers are who they're targeting. backed by a $1 billion investment and the ceo says this is where it's going to happen in the future a combination of the silicon valley and china >> you need the technology and the innovat

and our phil lebeau is in chicago with the story for us. yeah, tyler, these are not pretty numbers from the automakers when you look at what happened in july generally speaking, they all reported weaker than expected sales with a few notable exceptions gm led the pack, as far as weakness, down 15.5% there you see fiat, chrysler and ford, big three all negative for the month. toyota bucking the trend most were expecting it to be down 3.5%. it was instead up 3.7% so what was behind the weakness in july? overall for the industry, a number of factors here lower fleet sales. this was a concerted effort by a number of automakers to cut back on sales, particularly to the rental car companies there's still no love for cars if you're looking for a mid size sedan right now, hey, folks, there are lots of deals to be made, because nobody really wants to buy them. inventories do remain high how high take a look at shares of general motors its day supply at the end of july, 104 days, to give you some perspective, most wanted to be closer to 65 or 70 days.

i'm phil lebeau. some breaking news regarding some of the airports in houston, houston hobby tweeting out that starting this afternoon, at 4:00 p.m., it will resume limited operations guys, i wouldn't expect a lot of flights going in there of course this is the airport where southwest has a sizable presence but it is certainly welcome news after being shut down for a couple of days houston hobby will begin limited operations starting at 4:00 p.m. this afternoon still waiting to find out how long houston international will remain shut down at least until noon tomorrow was the expectation. let's see if that changes as well guys, back to you. >> all right, thanks phil. >>> president trump set to speak about tax reform and warren cook, a company that would benefit from what the president is expected to propose. >> let's bring in our ylan mui this should benefit the middle class. >> that's right. he's out stumping for tax reform something he didn't do for health care and one reason that many believe that f

swiss franc and gold it's higher for the second -- for the second consecutive day we'll now get to phil lebeauh, i believe, for some market action bill, back for you. >> phil, bill, they both sound alike. thanks, seema. we're headed to the close here as we set lows let me just show you the dow it's just been a slow roll south here through much of this day, and we are setting these lows for the session. very quickly before i bring art cashin in. just some of the other markets, as they sold stocks. they were buying bonds so the yields were going lower. the last year i checked the ten-year it was at 2.19 and as rick santelli pointed out 2.13 was the low for the year we'll see if that can half gold continued higher. we're strengthening into the close there as well, up $11 now on gold to 293, so that's two days in a row that we've seen pretty good gains there and, of course, the vix is moving higher we're back about 15 now on the fear indicator i've got art cashin here with me, bob pisani also joining us as you were saying, you saw the market on close orders skewing tots buy side, but the market wa

very dovish, and there could also be concern about the trump agenda being derailed let's get to phil lebeau >>> a statement from gm's ceo mary barra regarding leaving the foruming we won't reed all of it to you, but general motors is about unity and inclusion, and so am i. recent events it can lay already those in shaltsville and its aftermath require that we come together as a country and reinforce values, including tolerance, inclusion and diversity. that's the staismt from mary barra on the disup and downing >> phil you very much. we have marc morial, former mayor of new orleans, mr. mayor, welcome. good to have you with us >> thank you, ty >> we've been talking about the news at hand, which is the disbanding of these two advisory panels, but i want to turn it back to one i know you can speak about in a most heartfelt way. you're the mayor of new orleans, a lot of confederate war statues. i'd like to hear you talk about thor symbols broadly and react to what i'm told was the response of the current mayor down there, mr. landrieu, to move many, if not all of those into a museum. is that a

. >>> hertz also out with earnings phil lebeau has those numbers. >> nasty looking numbers for the seconder from hertz, a lot worse than expected. 63 cents a share is how much the company lost, working out to $52 million for the secretary quarter. the estimate was for a lows of 20 cents a share revenue did come in as expected. a big driver behind those losses, vehicle depreciation increased 27%. we talked about the used vehicle market hand how that's weighing on the rental car companies. why are shares moving higher after hours in the company is saying it's made a lot of moves that it needed to make in order to shore up its losses, including selling the fleet, 1% of the fleet dropping its fleet total by 1% in the second quarter. guys, back to you. >> hertz up 3% and avis down 6% earlier. >> hertz down 6% in the regular. >> yes, it was, so it's coming back a little bit. >> going to take a break and get a cnbc news update and get an update with sue herera. >>> here's what's happening at this hour. during an opioid briefing at the bed minister golf club president trump responded to news of n

phil lebeau has more >> kelly, i've got a number that i think is going to surprise some people. this it is estimated that a half million vehicles, the vehicle that is you see on the street flooded with water up to the ceilings, sometimes, up over the hood, that they are going to be scrapped and as a result, what you are hearing from different people is that there's going to be a massive effort once the insurance companies move in, cut those checks and get people to go out and buy new vehicles, or useded vehicles, the interesting thing to keep in mind is that used vehicle prices right now, they're close to a record high, so in the near term, you're going to see tighter supply, especially in the houston market that could push those used pliss even higher. but there is also expected to be b a snap back in new vehicles sales. the bottom line is this when you look at some of theodis auto stocks here's a good example. sonic automotive it gets 25% of sale s in texas it's going to go through some short-term pain, particularly in houston, then a rebound. that half million figure is stunn

. >>> and tesla out with earnings after the bell today phil lebeau joins us with a little bit of whatrew, as much as we say it really doesn't matter what the numbers are, the numbers always do matter. it will be a wider than expected loss but the focus today when tesla reports its earnings after the bell will be a lot about where things stand in terms of production, not only right now, as they ramp up on the model three, but then going into 2018. you'll get a lot of questions for ceo elon musk about model 3 production remember, the first deliveries happened last friday the 2018 guidance will be in focus. and this question of, do we get any more details about possibility of new plants, whether it's in europe, or in china, or perhaps another one here in the united states. more giga factories. they have hinted there will be some news about that to come over the next six months to a year tesla's 2017 production, by the way, the estimate is that it probably is going to end up being about 115,000 vehicles we might get a little more guidance on that but the cash burn, as it always is, is in

volkswagen's bug-eyed hippy bus is making a comeback phil lebeau joins us with this story. >> this onefor joe because he remembers driving around boulder in a microbus back in his college days take a look at what volkswagen showed us over the weekend in pebble beach this is the id buzz. if it looks like the microbus, that's the whole idea here when they first unveiled this concept earlier this year in detroit, people said build it, build it, build it, so they are. it will go on sale in 2022 this will be all electric. it's part of volkswagen's goal of selling 1 million electric vehicles by 2025 the idea of tapping into the nostalgia of the microbus is one that volkswagen has toyed with for some time. for a long time people said you've got to do more with the microbus, it had such an iconic image, it was so popular in the 60s and the 70s. a lot of people always say there are millions sold. top sales, 574,000 in 1970 the krechceo says they're hopino tap into some of that iconic history. >> it is a brand which has a basis here everyone knows the microbus or the beetle from the old days, so

phil lebeau has more on tesla's report and ron baron is baby today, phil. >> i bet he is i bet he is. what you heard on the conference call and what you saw from tesla in terms of the second quarter now, let's be clear, they lost a lot of money in fact this is a company that went through about $360 million last quarter but overall, they beat the street, coming in at a loss of $1.33 compared to what was expected at $1.82. revenue stronger than expected not a surprise given the increase in production coming in at $2.7 billion. it's the outlook that people are focusing on. model 3 production reaffirmed for the third quarter all the way in through 2018. that was one area that people were focusing on also elon musk said during the conference call there will not be an equity capital raise they are considering a debt offering at some point, but as of right now, they're sitting at about $3 billion in cash and from his perspective, the focus in terms of production is turning towards where to build the next giga factories. >> we're also thinking hard about where do we put giga factories 3, 4, 5

later, shares of boeing have been flying high thanks to strong results and ramped up production phil lebeaus inside the numbers at boeing and tells us what could be ahead for the company. check out the futures this morning. strong again across the board. up 50 now on the dow, 20 on the nasdaq, just under 6 on the s&p. "squawk box"ilbeig bk. wl rhtac whoooo. looking for a hotel that fits... ...your budget? tripadvisor now searches over... ...200 sites to find you the... ...hotel you want at the lowest price. grazi, gino! find a price that fits. tripadvisor. >>> we're watching shares of dick's sporting goods under tremendous pressure in premarket trade. the stock is down 16.5%. this after quarterly earnings missed estimates by 4 cents a share. 96 cents a share is the number comp-store sales were up less than expected. company's full-year outlook is well below street forecasts. a lot of analysts were signaling that the liquidation sale of hundreds of gander mountain stores would impact dick's in the quarter. they're very cautious especially after a disappointing print from big five as well as

estimated that the port of houston is losing $350 million per day in total economic output and as phil lebeauas reported it is estimated that there are maybe tense or hundred thousands of cars, you know, new cars, that are being imported in you've got a lot of freight tonnage as well. some of that may be underwater so hurricane harvey, we know, is the biggest water event in the history of the united states in terms of rain may turn out, guys, to be the biggest economic event once all is said and done. it may not have to be in direct property damage. but in lost revenue, given houston's size, it is entirely possible this could be the most expensive storm all-in, ever >> so, you know, this is not about us it's not about you but you are amazing at this. i've just got to tell you that every single report, completely ad-libbed. i see other guys out in the field, at networks, they got one line memorized before they talk to a package and they usually screw that up. i mean, in every report's been different. but i mean you're like as good as any field reporter out there. maybe you should never anchor