phil lebeau.ard to that wilfred, what do we expect from the banks, the quick and dirty >> i have to say never have we seen a bigger focus on the commentary as opposed to the numbers. only 13 days since the quarter ended but so much has changed since then for the numbers there will be many things to watch provisions have risen again in q2 more than in q1 on the positive side, how big will the trading revenues be probably very big expectations sara as we've learned in the course of this show, economic earnings reversing trend, we will want to hear from the bank's management what that means for the outlook. the numbers might be all right and might see some gains perhaps after the numbers come out and we'll focus in on the tone the swing factor is important. will banks say this is a game changer for our outlook for provisions or outlook for earnings will they say this was already baked into our expectations? we'll look forward to that, 6:45 to 7 a.m. >> and, again, it's not just about the health of th

. >>> delta airlines posting quarterly results and phil lebeau joins us with the numbers just out hey, phil. >> reporter: we've talked about q2 numbers being ugly and not meaning a whole lot for the airlines that may be the same for delta and the peers. a loss of $4.43 a share. yes, that falls -- or that's worse than what the street was expecting with a loss of $4.07 keep in mind the 12i789s were all over the place revenue a little better than expected at $1.47 billion. the pretax loss of $3.9 billion in the second quarter, think about this, covid-related expenses and charges, $3.2 billion. those are the items directly related to covid-19. a couple of data points here q2 revenue the lowest since the mid 1980s for delta. its liquidity stands at $15.7 billion at the end of june that is enough cash to get the airline through the next 19 months if it doesn't raise anymore capital. the cash burn at the end of the month, $27 million a day to put that into some perspective. at the low point in the early to mid april days it was $100 million a day what they were losing so $27 million a day at

company beats delivery targets for the quarter and the stock up nearly 500% from its 52-week low phil lebeauns us with a closer look at the numbers hi, phil. >> tyler, this was a blowout quarter for deliveries no matter how you look at it nobody was expecting them to come in this strong. might have been an outlier but the consensus they were going to deliver 72,000, a number of analysts thought it might be closer to 80 or 83,000 they ended up delivering 93,650, the majority more than 8,000 being model 3 and ys they don't break it down in terms of country they were built in they have the factory in shanghai and plant in fremont. can they hit their guidance of delivering at least a half million vehicles this year in order to do that, they need to deliver 322,000 vehicles in the next six months. as you look at their market cap and i know we've talked about this over the last couple days, yes, it is the most valuable automaker with a market cap of $225 billion, but i find this more incredible, in the last year the market cap is up $182 billion. that's whacky stuff. $182 billion market cap improv

phil lebeau with the details hi, phil >> we're talking about the northeast.e tri-state area, boston, really the hottest corridor in terms of traffic here in the united states. when you look at shares of american and jetblue, the reason we're showing you both is because they have agreed to a code share agreement as part of that code share agreement it allows them to share passengers american can book a passenger, put it on a jetblue fight and vice versa here's the reason these two airlines made this deal. it allows american to have more options in new york city and in boston i thinks th there's 100 routes f jetblue they can put passengers on jetblue will have more access at laguardia and newark and when that foreign market improves, transatlantic flights that are part of the american system. this is really all about the new york city at the end of the day. look at the market share and where american and jetblue are relative to their competitors. delta and united dominate that market, laguardia, newark and jfk. so american and jetblue are looking to get stronge

there may be one or two that can get by with a few reductions >> phil lebeau, thank you. less than two minutes left in the trading day. >> they eroded quite a bit the new york stock exchange is up and down volume this was a little below even before now now 2-1 to the negative side things have grown a little bit more heavy throughout the day. take a look. we were talking about the relative performance of the internet sector. up a little bit. week to date and the s&p 500 banks down 2.6%. this is a dichotomy that persisted for some time in this low yield environment. the volatility index, some commentary yesterday while i was out, the vix was up. so it works against the idea that everybody is too complaisant. it says the market is still under a little bit of anxiety and stress >> mike, thanks for that just 45 seconds left gold is up $1800 it's up another 1% equities, of course, lower lower across the board dow is down 400 points plus. down 1.6%. the nasdaq composite also taking part in the selling is down 0.85% after a number of record closes the russell is down 1.9% in term

alone. 25% of cars are at least 16 years old, but in my family that was pretty new let's bring in phil lebeau for more >> what we've been seeing for a number of years, the vehicles on the road continue to get older and older, and the latest data show the average age of vehicles on the road in the united states, 11.9 years that is an all-time high even more surprising, one out of every four vehicles out there in the united states is at least 16 years old, and covid-19 is actually going to accelerate this trend because people are driving less, putting fewer miles on their vehicle and then they're going to say, i'll keep it longer. this is good news for a couple stocks in particular, autozone and o'reilly automotive. these stocks -- general motors, there's nothing happening for these stocks even though they're trying to make themselves into a growth story don't forget, kelly, tomorrow morning we'll be talking to eo of general motors. you do not want to miss that conversation we'll talk about her outlook for the rest of the year >> it's interesting, robert, because i thought we were going to be a

we got united airlines earnings just out phil lebeau with the numbers phil >> sayer yashgs we knew it would be a massive loss and it was $1.6 billion that is how much united lost in the second quarter we'll give ut earnings per share or the loss per share. $9.31. that is how much united lost in the second quarter worst than the expectation of a loss of $9.02. revenue better than expected coming in at $1.4 billion. the street expecting $1.3 billion three metrics we're focusing on from united, start off with q-2 daily cash burn. $40 million a day. that was on the low end of the guidance of the company provided for q-3, new guidance. $25 million a day is going to be the estimated daily cash berne burn previously they were guiding for a cash burn of $30 million a day. then liquidity as of july 20th this is a fresh number, united sitting on $15.8 billion. the estimate from the airline is that at the end of q-3, it expects to have over $18 billion in cash on hand. that includes by the way a treasury loan of $4.5 billion. they have not yet taken. but have been approved for finally in, terms

phil lebeau, cnbc business news, chicago. >> separately, a reduced pay period was brought into place during the virus pandemic. according to an internal email obtained by cnbc, for more on that, you can check out cnbc.com >>> ahead on the show, social unrest and a record surge in coronavirus cases in the u.s muddy the waters ahead of the presidential elections we'll break down how the upheaval may affect the race >>> jpmorgan will reportedly remove terms such as master, slave, and blacklist from its internal technology materials and coding amid efforts to address racism within the company. that's according to reuters. the move would emulate companies like twitter looking to eradicate language with racial overtones. it would make jpmorgan the first to do so in the financial sector u.s. unemployment fell in the month of june, but the gap in jobless rates in black and white americans has widened to its largest in five years. black men facing the highest joblessness since 2011 >>> racial inequity particularly in regards to policing sparked nationwide protests which have continued across

let's get to phil lebeau in chicago. >> reporter: the company lost $1.9 billion in the second quarter at 35 cents a share. that was far better than what analysts were expecting. they were expecting a loss of at least $1.17 a share. automotive revenue coming in a little better than expected, not a surprise given the fact that we knew there would be strong demand once the factories fired up again starting in early may, that's what happened there they ended q2 with $39 billion cash on hand they say even if there is a resurgence of covid-19, which nobody is expecting at this point, they have enough cash to get through that and the rest of the year this week they repaid $7.7 billion on their credit lines. that's a strong indication of how they feel about their cash position their guidance for the third quarter, a profit of between a half billion and $1.5 billion. part of that is because the launches expected in the third quarter, those vehicle launches are now in the fourth quarter. ford expects a loss in the fourth quarter because of those vehicle launches one of those vehicles that we'll

. >> wow phil lebeau, those are some rough numbers.hope, of course, that that can turn around for the sake of those employees and the broader economy. thank you, phil lebeau. >>> and it has been meanwhile one of the big winners among the stay at home stocks, slack shares are higher again today as it announces the acquisition of enterprise directory software maker. joining us is slack cofounder and ceo stewart butterfield. good morning. >> good morning. thanks for having me. >> great to have you i want to get right into the strategy behind this and what's happening in the collaboration space. it seems to me the battle space for collaboration platforms has moved over the past couple years from internal company communications increasingly to collaboration outside company. you were working on slack connect. how does this fit into that and the experience that you think is going to make your platform better >> that's a great question and i think it's obviously especially important right now, i don't think we'll be back in the office for a wh

today mike santoli is tracking all of the action meg tirrell has the latest funding for pfizer and phil lebeau has fresh comments from the ceo of united about what a vaccine would mean for his business >>> subdued summer choppy action the market holding up near recent highs the major takeaway from the action so far. the s&p 500 on a one-year basis, you could look at this and say we're laboring to make further upside from where we got in early june that is true this looks like relatively defined uptrend. the question is whether it will have to go sideways and return a bit before gathering up more upside energy or if we're due for something deeper on the pullbackside you see that sideways summer zone we were in last year as well, which i keep in mind nasdaq is different. it's more of an overheated momentum situation, well above the former highs that is now cooling off. this is way above things like its 200-day average. the market as a whole is absorbing what's been so far a little bit of this cooling off period of the major nasdaq stocks 22% of the s&p in those top five nasdaq stocks, 40% or so

jumping in the after-hour session, despite the staggering run into this report let's go straight to phil lebeau with all the details. >> a beat on the top and bottom line and the beat on the bottom line is significant. let's run through some of the numbers. much better than expected earnings per share and it's a fourth straight profitable quarter for tesla. $2.18 is how much it earned in the second quarter the street was expecting three cents profit revenue just over $6 billion as i mentioned, a fourth straight profitable quarter for tesla. we know the significance of that it is the last hurdle the company needed to clear in order to be included in the s&p 500. let's drill down some numbers within the report that are going to get attention operating cash flow, $418 million. automotive revenue was actually down it declined by 3.4% in the quarter, not a surprise given the fact that you had the freemont factory shut down for five or six weeks. but the automotive regulatory credits revenue, that's where they made it up. that was up $317 million the model y production, overall it is increasing remem

phil lebeau with details >> take a look at shares of tesla.almost 10% on the day yes, 10% for this stock means, what, $140, $145 a share look, $142 higher. keep in mind, there is no specific news that is driving this stock higher. fwhut but this is not uncommon before they report quarterly results. we've seen this in previous quarters, especially when they're expected to post a profit you see the stock move higher. tesla reports q-2 results and an expected profit for the second quarter, that's the expectation out there, that will happen after the bell on wednesday. so that's a little bit of color into why this stock is up almost 10% on the day guys, back to you. >> at $1640, the high touched on the 13th of july, $1775. a little ways still off. that phil lebeau, thank you. >>> the shanghai composite outperforming u.s. equities this year jumping 3% on this session china's economic is on the way to a v shape recovery. andy, good to see you. thank you for joining us let's start on that topic. are they experiencing a genuine v in the economy and ca

we have details on the increasingly heated rhetoric between washington and beijing phil lebeau has comments start us off with the broader market and tech especially not getting the love today >> tech is overheated. looked stretched needed to pull back. the question is could the broader market absorb that and have the money shift around to other places it has done a decent job of that recent days. today perhaps the weight of that tech profit taking selloff has become a little too much for the s&p 500 especially take a look here what is interesting is today's decline has got just about to those highs. remember we were talking about that and we broke out of the six week range can't say they had a little tough time getting real in gear. there is a potential selloff area we look at the market this year. this chart is making rounds. we talk about the other role that five big tech stocks whether we define them aztec s h stocks or not. this is the s&p 500 itself coming into today. this is the other fortune 95 lacki lagging things there is a concentration of risk also a concentration of earnings pow

of respondents said yes that sentiment ringing true as boeing shared dropped on missed earnings phil lebeau joins us now with more. >> and when you take a look at shares of boeing, nobody is surprised the stock moved lower. as you mentioned, the company did report an earnings miss. they lost $2.4 billion in the second quarter a wider than expected loss and obviously covid-19 shutting down at assembly line, fewer deliveries and that weighs on the company. three things came out today from the company as they were saying, this is what we're expecting, not only for the rest of the year, but as you look out over the next couple of years you have lower production rates or a slower ramp up of other models like the 737 max. that will likely mean or possibly mean, we should say, more job cuts. remember they're already eliminated about 16,000 to about 19,000 jobs this year. and then the airline recovery. the ceo david calhoun said i agree with what they're saying on the international level in terms of airline recovery is at least 2023, maybe 2024 nobody is quite sure and we're seeing that here in thi

when i listen -- phil lebeau knows this group so well trying to figure out how many millions is delta losing a day, something in the high 20s, but ford has all these areas, i thought that what ford was going to do was invest and then sell the products that people really want and not try to be ford to all people and all things all over the globe, but they haven't put that strategy in place and you still find, do you know what, it doesn't matter how good the 150 is or bronco, they are loezing money in places that you never thought they were. legacy of the old days when they felt they had to sell cars everywhere >> and supply chain issues, too, with some of the engines out of mexico. >>> speaking of transports, we will talk more about autos and we will get to delta a lot of information, ed bastion providing clarity on cash balances and further capital raising later as delta is one to watch this morning back in just a moment. experience the joy of a bigger world in a highly-connected lexus vehicle at the golden opportunity sales event. lease the 2020 es 350 for $359 a month for 36 months.

phil lebeau with a special guest. >> bringing in the coo of nissan standing in front of the new ariyaank you for joining us you've got a range of 300 miles on the new ariya is that enough in these days where companies are saying, look, we'll have at least 400 mile range >> aryia is the perfect fusion after years of nissan experience it is not a normal ev. it is much more. why, it brings the driving excitement, e force coming from our gtr sports car it can do 0.5 meters in 5.1 second it brings a comfort to the customer the cabin space and brings confidence because of nissan being a pioneer. making the driver more confident and comfortable and the joy of connecting it has the latest connectivity features on board and off board to connect that's why nissan believes with this value, we are going to explode the customer aspirations. >> is it enough to catch tesla china is the number one market for evs. the numbers don't lie, you are not in the game right now relative to your competitors >> for us, the driving range is the important but not the most important thing. number one, 80% of custo

features like goat, which is go over any terrain a tall order but not an impossible one >> phil lebeausla and ford watch out for those e-mails. >>> joining us now, jenny, let's kick things off with what we were talking about not the bronco but tesla does tesla matter for the overall market or is tesla just a tesla story? >> i think tesla for the overall market is the poster child for the irrational skuberance of 2020 phil just said something interesting. people have moved into tesla ahead of fund managers moving into tesla ahead of tesla being put in the s&p 500 that might be a way to trade, that is a rotten way to trade. not based on someone else doing something based on someone else doing something. it is important for this thought but not foregoi spogoing higher >> a wild stab, tesla is not holding holding your family or future college fund by vesting in tesla. >> i'm a long-holder investor and i would short it not that i have a strong opinion. >> that's why we love you. you would short it if you could. let's talk about the banks wells fargo has lost half its value. sitting on mortg

phil lebeau is sticking around at first blush, tim, it's difficult environment for everyone, but let me see you're not flying, you might be driving, and the average age of the car is pretty old. some of these automakers ought to be able to make a little bit of hay with the sunshine or no >> well certainly when you have auto production shutdown that's going begin to flow through the system, lower inventories. you've seen in at least the northeast significant increase in driving miles as people start to come out of their covid cocoon and not flying, not going to hotels. they are seeking vacations that they can drive to. leisure travel is starting to increase what that means for commuting travel and future car ownership remains to be seen >> phil, you want to get in and just ask some specifics about gm or we can talk boeing too. >> reporter: sure we have news coming from boeing in a little bit. but when it comes to general motors it centers around the question of you saw the shutdown in product and we've seen a bit of a come back in terms of demand for deliveries to dealerships. my ques

we'll get to more today with phil lebeau. to watch now, white house and senate republicans appear to break their week's stalemate on the debate >> senate republicans say they've reached a fundamental agreement with white house negotiators on how to move forward with the coronavirus relief bill. house speaker said the next package should get more money directly to americans. >> the third pillar is to put money into the pockets unemployment insurance, direct payments, employment tax credits and the rest in order to keep the economy going. >> now the comments come as the white house chief of staff mark meadows suggests an extension of the $600 a week unemployment payments will not likely happen. discussing extending this to the end of the year but reduced to about $400 a month or $100 a week the u.s. saw a rise of deaths above 1,000 cases. california reports its biggest one-day jump surpassing new york now as the state with the most confirmed cases since the outbreak began governors in minnesota, ohio and indiana issuing orders

higher than southwest, the daily cash burn so that's why it gets more scrutiny perhaps right now >> phil lebeau, thanks. >>> coming up, facebook says it will not bow to the current pressure to the advertiser we'll talk to alex stamos, he used to be the chief security officer. >>> plus the travel industry trying to get back on its family jonathan tisch will join uwhs y he's still optimistic about a rebound. more "power lunch" after this. (music) anncr: give customers access to precisely what they want, when they need it the most. with adyen, the payments platform that delivers convenience for all. adyen. business. not boundaries. >>> let's get to julia for the latest on the facebook controversy. >> the civil rights auditors finding that facebook has been too reactive and slow to take action on hate speech, writing that they, quote, watched the company make painful decisions, the decisions that are serious setbacks for civil rights and saying facebook has not devoted enough resourcesto this issues and the algorithms fuel extreme and polarizing content, warning that facebook could be weaponized to

let's get to phil lebeau with a news alert on united airlines. >> united under pressure today, announcing it's sending off warn layoff notices those are required to be sent out 60 days ahead of a potential layo layoff it says they'll be cutting about flight attendants will take the biggest impact, more than half of the jobs with the union airport operations there, maintenance, the pilots 2,250. so here's how it works they're trying to finish negotiating buyout packages with the unions almost all of these workers are in one of the major unions they should have it finalized by next week. then by the middle of august, they will notify the remaining number of people who may be losing their jobs, yes, you are actually being laid off come october 1st. that's when the job cuts take effect, october 1st. we knew this was coming, melissa. you're going to see this from the other airlines as well they'll all by dramatically smaller come october 1st. >> the degree to to which it came, phil, is that a surprise is does that reflect the ratcheted-down expectations of the second half? >> i would say the b

that's our phil lebeau in chicago. we're not nearly done wchl very the ceos of jetblue, ge, amd, and starbucks. lisa su, raising guidance. don't go anywhere. look here, it's your very own all-in-one entertainment experience: xfinity x1. it's the easiest way to watch live tv and all your favorite streaming apps. plus, x1 also includes peacock premium at no extra cost. this baby is the total package. it streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. yup, the best really did get better. magnificent. xfinity x1 just got even better, with peacock premium included at no additional cost. no strings attached. an army family who is always at the ready. so when they got a little surprise... two!? ...they didn't panic. they got a bigger car for their soon-to-be-bigger family. after shopping around for insurance, they called usaa - who helped find the right coverage for them and even some much-needed savings. that was the easy part. usaa insurance is made the way liz

let's get to phil lebeau with all those details. >> this is the second half of the $50 billion set asidehe airlines remember, 25 billion was to preserve the payroll at least through september 30th the other 25 was available if airlines wanted to borrow from the treasury department. yes, we do want to borrow and they have come to terms with the treasury department. american, hawaii, spirit, frontier and sky west. there are other airlines who have said we may need to borrow from the federal government. you could see more federal loans in some fashion. the end of the deadline as this has all worked it way out, people are saying we think most of the airlines have enough money to make it through into the fall and the beginning of next year. first of all, american airlines borrowing $4.75 billion from the treasury department. american's liquidity right now around $15 billion then you have the airline index. we're looking at this year to date we're showing this to you just how much capital has been raised this year, most of it through debt $46 billion approximately for the industry as you take

. >>> phil lebeau brought us gm sales a moment ago now it's time for toigt. hey, phil. >> we only have the june numbers. the june sales numbers for toyota down 26.7%. that was weaker than the edmunds estimate of decline of 20.9% a little later on today we will get the full sales rate for the second quarter see where that comes in. also i want to show you this, earlier today, tesla passed up toyota to become the world's most valuable auto maker with a market cap of $209 billion so again, tesla, just ten years old, as a publicly traded company, it has surpassed toyota in terms of market cap and is the world's most valuable company. don't forget, we're likely getting tesla q2 deliveries some time tomorrow, if not shortly after that deirdra, back to you >> yep, incredible milestone, phil we look forward to those numbers. thank you. >>> still to come on the show, down on brad street set to go public the ceo will join us immediately following the first trade. big show is still ahead so don't awhe. >>> our next guest is driving diversity in investing with a gender-ba

phil lebeau has more. >> reporter: the auto dealers don't make the money on the new ones they sell, they make it on the service. here's the latest data from ihs market they have been tracking all of the vehicle registrations at state dmvs, 280 million vehicles in the u.s average age of the vehicle is now at a record high ticking up 1/10 of a percent to 11.9 years. that is a record high. get this, one out of every four vehicles on the road in the u.st at least 16 years old. why do we have this aging fleet of vehicles out there? three things happening one, better reliability. starting around 2004, 2005, you started to see better quality going into these vehicles. they're lasting longer that's why people are owning their cars longer. unemployment is higher, people are uncertain about their job status and covid-19 has an impact, too. it's limited the number of miles people can drive their vehicles so they can hang on to them longer this is good news for two auto parts retailers. we're talking about autozone and o'reilly automotive. when you look at them, those stocks are taking 0off. used ca

. >>> thanks, andrew let's go to phil lebeau with american airlines quarterly numbers. >> reporter: slightly wider than expected for american airlines it's $7.82 that comes out to $3.4 billion revenue a little better than expected, $1.6 billion the estimate was for revenue of 1.44 billion we have three or four data points i want to run through liquidity at the end of the second quarter, $16.2 billion. that includes a treasury loan and it also includes a new debt raise that the company is announcing this morning. they are going to be selling $1.2 billion in senior notes the collateral on those notes, intellectual property and other assets that the deal is being run by goldman sachs cash burn. in june it was $30 million a day. what about for the third quarter or the fourth quarter? right now american is not giving guidance in terms of expected cash burn, daily cash burn for the third quarter. finally, 41,000, approximately 41,000 american airlines employees are taking early out offers, whether that's retirement, a leave of absence remember, we've talked at some length about these airlines beco

want to get to our auto man and auto exert, phil lebeau, he's got some new numbers to bring us on tesla terms of deliveries from tesla much better than expected total delivery is 90,650 vehicles the estimate was for 72,000 vehicles to be delivered last quarter. the model 3 and y, they don't separate them, 80,050 were delivered, most were expecting just 61,000 to be delivered. then when you have the s and the x combined, they delivered 10,600 in the second quarter, most on the street were expecting deliveries of 9,300. so overall much better than expected numbers again, 90,650, you combine this with the 88,400 from q1, they've delivered about 178,000 vehicles so far this year remember, the guidance for full-year deliveries is a half million vehicles with the increase coming in the third and the fourth quarter, certainly they're on their way there in terms of delivering better than expected numbers, and again, that 90,650 much better than the street was expecting, guys back to you >> thank you for that. we're going to see you back here in just a couple of minutes to talk more about tesla

phil lebeau is tracking the move for us phil >> sara, the pure electric vehicle play is the hot one fortors. can you make an argument about whether or not this is people just getting in on the euphoria over the possibility of electric vehicles taking off or whether or not these are smart early bets but when you take a look at the stocks, nikola and neo out of china and work house which makes electric delivery vans how good has this run been relative will the big three automakers no comparison at all the stocks up anywhere between 400 and 700% over the last three months the big three, down 19 to 35% n terms of tesla, they report earnings on july 22nd. if there is a profit, that will be the last hurdle that it needs, four consecutive quarters of turning a profit to get inclusion or likely inclusion into the s&p 500 in terms of gm and ford, yeah, they're making electric vehicles and they're coming and there's a lot of fanfare with those vehicles they're making big pushes into electric vehicles, guys. but so far, investors are saying give us the peer ev play right now. >> extraordinary perf

we got those production numbers, phil lebeau brought them earlier to us, 90,650 vehicles delivered duringhe second quarter of 2020 lower than a year ago, but higher than what many had anticipated. man, that is something to see, isn't it it's funny, the rich keep getting richer just a quick note ere, guys, remember larry ellison joined the board december 28 of 2018 he had bought 3 million shares, it's not clear exactly at what price but you can take a look at that 2018 period larry ellison, what's he made another billion dollars or so? >> why not have you ever been on his island in hawaii? >> no, i have never been on his island. >> his island is amazing, but you don't go anywhere. just go visit his island sometime >> okay. >> why not >> can we take a norweigian cruise there >> a billion is still a lot. a billion is still real. >> it's not -- >> which is what jeff bezos has made so far in year. exactly. now worth 176 -- no, $171 billion, highest ever. >> and he got divorced he got divorced and gave mckenzie a lot >> david, why that -- >> not half, but she did okay. >> why does that come up

ali perÚ, frankfurt although it's not clear if you are an american if you can go there, jim, and phil lebeauolor about travel trends as well. >> carl, two notes there is a conference call going on right now with united executives talking about the additional flights they are planning in august the near term note is this, they are saying that they are seeing a flattening in demand within the last week in terms of travel as the number of covid-19 cases has risen, as the number of states and cities have said we're either going to hit pause or we're going to pull back on reopening. so that's something to watch closely. not a surprise that people who were planning to take a trip, whether it's to florida, texas, wherever, have decided i'm not going to make that trip. that has happened, a flattening out in demand. with regards to transatlantic travel, not surprisingly because all the borders are closed down, what they're seeing on the few flights they have going across nonamericans going over to europe, americans who are in europe coming back over here we will be curious to see whether or not that

chinese currency is what is happening that is a red light for stocks we have a news alert on boeing phil lebeauus. >> take a look at shares of boeing reuters reporting in the last half hour and we confirmed through sources that boeing plans to delay the development and really the building of the first triple 7 x and the deliveries let's be clear boeing is not scrapping the program. but because of weak demand for long haul jets, there is a belief at boeing, let's slow down the plan to rollout this plane. it was just in january they had the flight of the 777 x. there is demand out there for this type of a wide body, long haul jet but not in this market there's not a lot of demand. and that's why boeing has made this decision. we reached out to the company. we do not have an official confirmation we talked with sources and, guys this is not a surprise that boeing would make this decision given the fact that international travel, transatlantic and trans pacific, travel around the world, it is dead in the water right now and nobody is expecting to come back any time soon. most of the major orders fo

we're listening to a lot of companies, phil lebeau has dave calhoun tomorrow we will have to listen toim talk about -- i don't know, does he have to lay off more people because the orders are not that good i think that we have tony sag netty on halftime today, tesla has been one of the brightest stars of this market i'm saying this is one difficult week and we are going to have to start lowering expectations about how this country is going to come out of this within the next three months because i just don't see it a magic wand waving from here to the election. david, you know that the -- that it's a flash point, moderna has become absolutely the football of this election they will give you october really really or is it -- how much insider selling they can do between -- let's see, monthly plan, you can do -- i'm sorry to be so part on those promotional guys. >> that's all right. you are not a believer but you've pointed out many times they're promotional. in terms of vaccine we want to focus on pfizer's earnings which i know we will get to as well a bit more after the break a lot of c

parker, see what he has to say, get his outlook on the industry >> and we are looking forward to it phil lebeauinging us the latest >>> meantime, the largest spak ever raised and how billionaire investor bill ackman is involved we'll explain it after the break. woman: my reputation was trashed online. i felt completely helpless. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555. >>> welcome back always a big mover, after-earnings results snap shares getting crushed this morning after seeing daily active users drop. a full breakdown of the quarter is just minutes away on "squawk alley," but as you can see right there, stock's down 8% today we're back in a moment hey! lily from at&t here. with some helpful tips. tip #1: you can currently get the amazing iphone 11 for half-off on at&t,

let's stick with autos and specifically used cars there's been a red hot ral ly o the used car lot phil lebeau has some numbers. >> when you take a look at the auto dealers you want to look at not necessarily the new vehicle sales. they're restocking after everything being shut down back in march really want to focus on the used market because the used market has been red hot when you look at the used car sales or that market, look at auto nation, group one automotive as well as penske automotive it's the pricing where you're really noticing a difference the average wholesale price $15,177. last year that was 6.7% lower. you go back four years, it was 19% lower. clearly there is demand there. when you go to the wholesale auctions, those virtual auctions show they're handgun ee're wil because people are looking for those used vehicles. sonic automotive have their franchise dealers and they also have echo park which is their own brand for used vehicle sales. both have been going very strong what a run sonic has had to go back to april. finally online is also doing well carvana. this is an exampl

phil lebeau has the details. >> the market cap considering this, you go back a year ago and look at marketwas about $42 billion. today it's much higher than that, up $164 billion and has now put toyota, put tesla past toyota in terms of market cap here is how the two companies stack up tesla with market cap of $208 billion toyota alt $203 billion. we take a look at tesla's deliveries over the last seven years, ep could in mind awaiting q2 delivery numbers, expecting that in 24 to 48 hours they never give an pact time when they come out don't be surprised if it's tomorrow guys, this is a company that's only been public a little over 10 years and is now the most valuable automaker in the world. >> truly astonishing phil, thank you for that cbs and dunkin brands facebook advertising. worked at facebook after the social media giant bought his company. he joined "squawk alley" on facebook's leadership during this time. >> zuck is probably going to do what's best for facebook of he's a sharp guy. whatever he does is going to make it as big and powerful and influential as possible. >> josh, why h

phil lebeau has the details. we knew that layoffs were coming, didn't we?we knew but this is a stark reminder of how bad things are in the airline industry united holding an employee town hall today and being blunt in saying that tens of thousands of employees will likely be laid off. warn notices will be coming soon when they do, the company will be dramatically becoming a smaller company. remember, those notices notify employees you could be part of a possible layoff 60 days down the road we all know october 1st is the date united and all the airlines can lay off employees in large numbers. tens of thousands are likely to be laid off at united. depends on how many people take any employee boyouy oubuyout prm how is the company under pressure a couple of things stand out newark near-term bookings down 84%. that's lower than it was just a few weeks ago. august capacity down 65% remember on july 1st, a week ago, they said that august would be down just 60% so it appears they're already dialing back their plans for august here's the reason why. covid-19 quara

exits >> it's incredibly -- southwest had very big buyouts today i think, look, i listen to what phil lebeau says i hang on his every word and his every word it is just a slower comeback again these are vaccine stocks you are looking at a list of five vaccine stocks and putting together the actual vaccine stocks the ones that people feel will double if we get a vaccine. that is not wrong. i mean, the problem is getting a credible vaccine which will probably take three shots including one being a booster is not something that is going to happen overnight unless it's j & j that has the ability to put out two billion vaccines within a very short period of time, which is kind of what we need what happened in polio in this country. they beat it by putting out as many vaccines as possible. >> that's certainly the playbook we'd like to see and still watching the tape for any news later this morning we'll talk to mike wirth about the company buying noble energy. biggest in the energy patch since the pandemic began. >>> along with disney, facebook a bunch of calls and price increase targets at twitte

phil lebeau with those numbers it is a smaller than expected loss from ford the estimate is for a loss of $1.17 a share. estimates are all over the board. automotive revenue coming in better than expected street expecting automotive revenue of just over $15.9 billion. a couple of notes within the earnings report for ford, end of the second quarter with $39 billion in cash. enough to get them through the second half of the year. even if there is another covid-19 resurgence and they have to shut down production again, they still have enough cash on hand to withstand that they repaid $7.7 b7.7 billio 7. credit line. they have expended $4.8 billion on a three year revolve credit line and for the third quarter, they're expecting to turn a profit of a half billion to $1.5 billion then swing to a loss in the fourth quarter when they have a number of vehicle launches but again, ford reporting a smaller than expected loss for the second quarter >> nice pop for ford this was a little bit of a tough setup as well in the last few months at least. ford rocketed higher along with auto sales still do

really quickly, mike, as phil lebeau was saying a moment ago, a new statement that bookings have moderated as these travel restrictions went back into effect, sending out warning notices to employees to be at least on alert for furloughs i wonder if you think airlines remain a fulcrum or a pivot point for that exact thing you were discussing. >> a psychological one, absolutely it also shows how fast the feedback is in terms of news reports to people's spending plans. it's pretty fragile. >> we are all for high frequency data like that, there is no question as we said earlier, uber's ceo will join us in a few moments. we will talk about the company's acquisition of both mates. ride sharing delivery and what they see for the future of the company when "squawk on the street" cos ckmeba hey! lily from at&t here. with some helpful tips. tip #1: you can currently get the amazing iphone 11 for half-off on at&t, america's fastest network for iphones. second tip: you can put googly eyes on your stuff to keep yourself company. uh for example, that's heraldo. he's my best friend. oh, sorry nancy, i f

>>> we've got some breaking news from american airlines and jetblue so let's get right over to phil lebeauil, what's happening >> reporter: becky, take a look at shares of american and jetblue. they have announced an enhanced code share agreement this essentially allows them to book their passengers on the other airline's flights. so if a passenger is going to a particular destination and american doesn't fly there but jetblue does, then american can book the passenger on that jetblue flight and vice versa with american. what's in it for jetblue it is designed to help jetblue better compete in the new york city markets, greater access to laguardia and newark as well as access to international routes through the american what's in it for snern greater access to the northeastern markets, especially out of boston, and for both airlines this helps them better compete with delta and united who also, remember, they have huge hubs in new york city. so you've got american and jetblue signing this enhanced code share agreement not surprising allowing them to do more with less as both airlines face

hoping this will give them a bigger piece of the suv market ford has a lot riding on the strategy phil lebeau joins us now phil, you know what i think of when i think of the bronco, right? >> reporter: yeah. originally they planned on unveiling this on july 9th guess whose birthday is on july 9th. i kid you not. o.j. simpson, that's why they moved it they are unveiling it tonight. this is an important vehicle for ford because the bronco is in a segment that ford really hasn't played in for the last two decades which has become much more popular yes, they have many more suvs. all of those play in the suv market but the off road suv market, the one we're talking about where jeep is incredibly popular, that's where they're targeting the bronco this will be a sub brand for ford they will have three versions of the bronco they're going to sell they're targeting jeep they have their work cut out for them the sale of jeep in the blue line, they blew past ford in terms of suv sales in 2013, 2014 they have not looked back since then fourth is in third place in the suv market share that is the jeep bra

the stock by the way sinking pre-market phil lebeau joins us with all the details. > reporter: melissa, as we have reported a couple of weeks and we talked about extensively yesterday in terms of bookings slowing down, united is telling tens of thousands of employees that they may receive a warn notice essentially saying that they may be laid off come october 1st. now let's put this into some context here this is not a surprise to anybody who works at united or in the airline industry. the airlines cannot fire -- not fire but layoff anybody until october 1st. that's part of the c.a.r.e.s. act, getting the payroll money from the federal government, however, they are required to give employees 60days' notice. what they are telling their employees is you may be affected by one of these warn notices you may ultimately be laid off all of this is contingent upon a number of factors, including how many take early retirement packages do the unions restructure their contracts so there is a lower minimum workload in exchange for not laying off x number of employees. this is al

phil lebeau? gets hot in chicago. chicago in july, phil. >> reporter: it is hot and muggy right now, joe and this schedules for the airlines, how is this for a transition they are getting hotter as well. united airlines is updating its schedule for august. united of all major carriers has been the most conservative in terms of adding back flights that will change in august total schedule is 48% compared to last year in month of july that schedule was closer to 25%, 28% the domestic route, 48% versus last year. a substantial improvement compared to july and june. adding 25,000 flights. as you take a look at shares of united over the last three months they are also adding or resuming 50 routes remember united, all of the major carriers there were a number of routes they said in may and june, we're just not going to fly, not enough people or demand. they are adding 50 of those in june in territorial of the try overall we're seeing an improvement in terms of passenger levels it's about 75% right now in terms of how much it

plant in texas making it one of the largest economic development projects in the city's history phil lebeaudeal and a big win for austin, texas. this is a contest for where the next tesla gig ga factory would be located that went on for several months it came down to austin versus tulsa, oklahoma. ultimately for a number of reasons they chose austin, texas, including the fact that it's a great place to attract talent they think they'll do very well there. this is what the giga factory comes down to down there near austin, not in the city and the video you're looking at comes from our affiliate, kxan they're doing work down near that location. the second final u.s. assembly plant for tesla in the u.s it will build the cyber truck as well as the tesla semi, model 3 and model y for the eastern united states. here's elon musk talking about the giga factory. >> the location is five minutes from austin international airport and 15 minutes from downtown austin. about 2,000 acres and we're going to make it i think a factory that is going to be stunning right on the colorado river so we're actually

phil lebeau joins us with the latest on that story phil >> reporter: andrew, we are hearing more aboutfrom people in the airline industry they were hoping that july and august would really see a big bump in terms of number of people taking trips, but what's happened because of the resurgence of coronavirus cases in places like florida, texas, california, you know, destinations that people maybe were thinking about going to, instead of taking those trips, a lot of people are saying, you know what, i'm going to hold off. i don't have to use my ticket until the end of 2021 in most cases. as a result, what you're seeing is a gradual increase not of a super snap back that we were expecting. we're still waiting on the fourth of july numbers the bookings are slowing, cancellations are rising covid-19 hot spots, this is part of the issue people may have had a trip planned for a particular destination. as cases surged they sat there and said, one, i don't want to get the virus. one, if i go there and a lot of businesses are shut down, why am i taking the trip? yeah, i want to get away but i don

phil lebeau joins us now with why that is. hey, phil. >> reporter: hey, joe.mbers in from the tsa. here's the news flash. not a good one but not a surprise last week the number of people flying in the united states declined down 4.6% it is the first down week in terms of air travel since early april. overall in terms of passenger levels, they're down about 72, 73% relative to where it was last year. the reasons for the air travel situation, it's what we've talked about repeatedly. you have the spread of covid-19, particularly in the sunbelt. anywhere from florida to texas out to the southwest that has people saying if i had a trip, i'm scrapping it there's the quarantines that are in effect for the tristate area, massachusetts, chicago has one that has people in the areas saying, look, i don't want to go through the whole hassle of quarantining i don't know if they're going to hassle me. i'm not going to make that flight you continue to have very weak corporate demand a couple of earnings to watch. we're getting five airlines reporting earnings let's start off

halt unite the expects its liquidity position to improve and forecasting a lower daily cash burn phil lebeaus now >> reporter: let's bring in scott kirby. we talked about the numbers. massive loss in the second quarter. no surprise. what's the state of the business right now? what your seeing and how either optimistic or concerned are you about where things are with passenger levels >> well, one of the strengths of united going through this has been to be neither optimistic, concerned, pessimistic, to be focused on being realistic that's important in a crisis and served us well so far as we've gone through this. the pandemic has developed really since late march. very close to what our expectations were going to be and it continues to develop in a way that we think is consistent with what we've been planning for. because of that we were able to match our capacity down 88%, the revenue down 87% but also by being realistic we found opportunity because the revenue super36% so that realistic approach has allowed us to really do the best that's possible. we expect demand has taken a step back war

industry and the prospects and that slow down now being reflected in united's flight plans and phil lebeau us that story with more. >> reporter: yesterdayunited paired back their august schedule plans a day after they warned their employees that look there's a possibility that tens of thousands could be laid off. they have not issued more notices to those employees those have to be sent out 60 days in advance. it's clear united is preparing to become a much smaller airline come october 1st which is when they are allowed to do mass layoffs. look at how the metrics are changing for united airlines in terms of near term bookings and we're talking about, you take bookings, minus cancelations, they are down 85%. it is clear that thing have switched in terms of the impact of coronavirus quarantines august capacity, it was supposed to be down 60% they pulled that back in the last week and said no we'll go down 65% in august they are not expecting to fly as many flights passenger levels says it all while we have seen a slight increase and now you're looking at levels that are down 72% to 75%, we'r

new orders from motor vehicles and parts up 85% shipments up 83% phil lebeau has been telling you this about the turn around in auto manufacturing. that's another good sign cars are tough to find that's a good sign for the economy. overall, we want to watch that capital spending will tell us how good to grow and productive in the future. that there is a turn around for some measure of competence that was not reflected in the main report this morning. we'll have to see whether or not this thing sticks around with the resurgence in the virus. these numbers are for june we'll have to see if they stick around for july, melissa. >> i was going to ask you about that for the numbers being so called goosed because of the reopenings that have been reversed in july >> sure. >> but you answered it stick around >> absolutely. no, absolutely this is a confidence thing sorry. you want to bring a guest. >> yeah, we're going to bring some guests in to talk about the reaction to this data as well as the expectations for the week. we have meagan green and stephanie link thanks for joining the panel here