phil lebeau.nner after they beat wall street earnings estimates forecast fourth quarter revenue for the three business units ahead of expectations. steve, microsoft reporting 46% cloud growth in the quarter which was also the same growth from q2. i guess not a big concern there about a slowdown >> there was at first. the stock immediately went negative when this report came out after hours and today we see what's happening but, yeah, that is the concern around azure anyone would love their business go growing 46 to 50%. that's not going to happen what they said on the call is a lot of the growth came from just this pandemic demand as more companies tried to digitize how they work and but they don't see that ending you anytime soon satya was talking about on the long term, we got like a decade to go of this digital transformation among businesses. so they are incredibly optimistic about the growth prospects for a z u russianre but the growth is still there. >> i agree i read that first answer on th

phil lebeau with the latest we did hear from jetd. >> we did and jetblue is putting on full-court press to tell investors and spirit that we think this is a better deal and you'll see this is a better merger than merging with frontier here's the offer from jetblue to spirit $33 in share comes out to $3.6 billion. it's unsolicited offer and jetblue saying it firmly believes its proposal constitutes superior proposal and represents most attractive opportunity for spirit's shareholders if jetblue and spirit were to merge would create the 5th largest airline in the united states as for spirit, well, they did confirm they received a offer from jetblue, the company says that, well, we're going to review that. remember just a month ago, february 7th, they agreed to be bought effectively by frontier in a $2.9 billion merger h here's the statement from spirit -- the board will conduct the evaluation of the jetblue bid -- and respond in due course. what about jetblue look at what shares are doing. spirit would owe frontier $94 million if it decided to break off the merger that both boards had agr

here's american's ceo speaking with our phil lebeau about what's driving the bullish forecast >> demandave had three years where airlines have been with no growth whatsoever. while the economy has actually increased considerably we have to make that up, and actually more. so i view demand as being robust far into the future. >> they are also bullish, phil lebeau why are they so convinced this rebound will last beyond just a couple quarters, as we catch up here on the pent-up demand theme? >> yeah, sara. a couple things they believe are going in their favor one, obviously people want to get out and want to start traveling more beyond the leisure side of things corporate travel is coming back and coming back stronger than many expected as you move to the summer months. the other aspect to remember is there is a limited supply of seats. we don't have all of the aircraft we had just a couple years ago. many have been retired we don't have boeing and airbus cranking up their production of new aircraft as they were a few years ago. that is a tighter market, so as a result, the airlines are lo

phil lebeau with david calhoun phil >> thank you, sara dave, they set it up perfectly you missed on the top and bottom line, had a number of charges in there. it was not a good-look quarter >> what do you say to boeing investors looking at shares moving lower and tell them that you believe you have a game plan for not only second quarter but the rest of this year? >> yeah, first, great to have you in south carolina and great to see some tails behind us on the production line. messier quarter than any of us would have liked familiar themes, supply chain constraints, covid, inflation have such an impact on our company in our fixed price development contracts we do with our defense business and they took a hit without a doubt. we had air force one, which was a program most people know a lot about. it took a hit. our trainer took a hit our mq-25. we love those development programs and we love the work we're doing and the performance of the airplanes, but the accounting proved to be difficult. >> inflation how worried are you act what we were seeing? we were talking before you went on the ai

rough 2022, at least since going public last november and still more challenges remain ahead our phil lebeau biggest challenge is production and ramping it up. when we went inside the rivian plant in central illinois last week, we got a chance to see where this company is right now. now, the good news is that things are improving though the chip shortage, the founder and ceo said, look, that will last into 2023, not just for rivian but the entire auto industry but he is feeling better as they gradually increase production. >> been challenging from a supply chain point of view with this environment but we're seeing daily records being set within our plant but really that's driven by how many components we can get, particularly in the semiconductor space, but a lot of really good progress happening there and we're excited for what's in front of us >> that's the story really for all of the automakers, not just for rivian we spent the day with rj their target 25,000 vehicles this year. they also, by the way, that production target also includes the amazon delivery van, which they have begun prod

. >>> welcome back jetblue stock falling nearly -- peeling back its growth plan, or phil lebeau is here with the jetblue ceo on a cnbc exclusive. >> thank you, melissa, thank you, robin, for joining us you had to scale back the remainder of this year er people confident this is it at least a base where we can grow from here, or is it possible you may have to scale back capacity growth beyond this >> as you know incredible demand for air travel, but a number of change in. >> where he got to april, and it was really a coninfluence of internal events like weather and traffic control programs, and all of those came together to create an environment where they really didn't deliver customers. we took a look at the year, made a significance reduction, and, you know, right now based on what we know, we family good obviously prices is -- demand potential in the back quarter of the year, but right now we feel good about where they have adjusted to. >> were you overly ambitious in scheduling flights, which led to the problems in april? >> we had ramped up very successfully through all of last yea

phil lebeau here with key numbers to watch for phil i have a feeling the conference call will be more> it will be, sara. look, aside from earningses and revenue, one number analysts will focus on is what tesla says when it comes to automotive gross margins. came in 29.2%. last quarter, fourth quarter expected to come under a little pressure in the first quarter. how much that remains to be seen on the conference call, what do they say about chip supply outlook? what's happening in china and most fortunately what do we hear from elon muck not only about tesla but twitter. you know he'll be asked about it back to you. >> oh, better be phil, thank you. phil lebeau. >>> two minutes to go in the trading day. what do you see? >> positive breadth most of the day. mentioned earlier, outperforming, mega caps dragging things down and 1.5 billion declining on the day. look at commodities index. proxy for it about 3% off highs taking a little pressure off this chart looks very much like any bond yield chart you want to see. slightly lower, but very strong uptrend and plenty momentum behind it lik

>> and american airlines just reporting and phil lebeau joins us with the numbers. rline industry q1 results for american much like their competitors better than expected. smaller than expected revenue coming in, about a half billion dollars better than expected at $8.9 billion the guidance is what's going to get people interest in america this morning the company saying not only did it swing to a profit in march it was expecting profit in q2 they haven't given guidance in q3, q4 expect them to forecast an a profitable 2022. they're looking at revenue up 6 to 8% in the second quarter. think about that 15%, you rarely see that type of an increase for the airlines when it comes to revenue per available seat mile but that's america's guidance for the second quarter, pretax margin up 3 to 5%. the ceo of american airlines this is his first quarterly earnings report. we'll talk to him not only about the numbers, more importantly about the guidance for the second quarter, the incredible demand out there now for people who not only want to fly but pay up when they're flying,

phil lebeau has details. > jon, it was not a whole lot more than what we saw from tesla in the fourth quarter, but it was a record quarter for deliveries 310,000 vehicles, just over that the consensus was for 317, though you did see some say the consensus was 312, 313, whatever it was just shy of consensus 95% being models 3 and y as has been the case in recent quarters but china in this last quarter it did impact production elon musk tweeted about that on saturday after the numbers were released elon musk tweeting out this was an exceptionally difficult quarter due to supply chain interruptions and china's zero covid policy outstanding work by tesla team and key suppliers saved the day. remember, they lost four days of production at the shanghai plant. by the way, they did not reach their production today what's curious is whether or not analysts now will up their year-end projections for total deliveries it currently stands at about 1.45 million vehicles easily about 50% increase compared to 936 last year. n

narrative opening its illinois factory doors to reporters for the first time since going public phil lebeau> reporter: another rough day for rivian when do we have confidence that the supply chain and the production problems are behind them, that they finally have things going in the right direction and are consistently increasing production. we did go to the plant in normal, illinois, in central illinois, where they have three assembly lines going the electric pickup truck, the electric suv and, yes, we did see the electric delivery vans for amazon look at their production it has steadily increased even though they have a guidance of 25,000 vehicles for 2022 which is well below what people were previously expecting them to build. when we talked to the ceo he believes that most of the challenges they're encountering they have eliminated them. >> it's been challenging from a supply chain point of view with this environment, but we're seeing daily records being set within our plant but really that's driven by how many components we can get particularly in the semiconductor space. a lot of rea

let's get more from phil lebeau. >> this is a testament how many people want to get out and go, whether leisure or business, they are traveling guidance is the reason all airline stocks moved higher today. look at delta's outlook for the spring and summer, very strong demand and they see more people when they're looking are not getting basic ticket more are going with the premium cabin option, that's why the q2 profit margin guide 12 to 14% way above what analysts expected they expected low to mid-single digits this why when you listen to ed bastian who said it is a great time for the industry and particularly delta as they head into the summer. >> the demand is phenomenal. we've never seen in our company's history demand for our products and services at the level we are in the month of march we had the highest sale in bo books bookings of any month in history. >> in march the revenue for delta topped monthly revenue since before the pandemic. not just it was pre-mandator it was better than months before the pandemic an indication just how strong the demand is right now. there are headw

here is what ceo ed bastian told phil lebeau earlier. >> the demand is phenomenal.ve never seen in our company's history demand for our product and services at the level we are we expect it through the first part of the summer into the second quarter only about 85%. partly it's because international restrictions are limiting what we can fly internationally. domestically about 90%. >> so for the june quarter, they see operating margin 12 to 14. street at 6. >> look, i listen to a man who can be critical and negative when it should be jetblue. there will be no merger. because pricing can go up big. >> yeah. i think we're both in the same camp on that as are many others in terms of opportunity to potentially get spirit to even listen to them. >> yeah. >> let alone agree to a deal yeah, overall are there they earning their cost of capital? getting close. >> that's what the atlanta airport is like. >> i flew delta. i flew delta from palm beach it was a cool wedding what was amazing was -- if you don't want to the go on that plane, they don't want you on that plane becaus

phil lebeau has all the numbers and details. phil. >> hey, he says he'll be on the call i think he has something to say, maybe something about twitter. we'll talk about that in a little bit the numbers they just reported much better than expected and that's the reason the stock is surging right now. a beat on the top and bottom line, check this out, earning $3.22 a share for the first quarter, street was expecting them to earn $2.26 blew it away by a buck and revenue coming in $1 billion stronger than expected at 18.76 billion and the final metric, the one i think, you know, the people who look at the numbers, think they'll be excited about, look at the automotive gross margins excluding government credits expected to come in at 28.9%, came in at 30% that 30% is an improvement on the fourth quarter when it was 29.2%. as you mentioned, the conference call starts in about a half hour we do expect elon musk to be on that call. he said earlier he will be on that call and a lot will be focused on tesla but you can bet, melissa, there

phil lebeau is joining us with more on the record quarter phil, cramer called it a tour deforce quarter of web bush, a cinderella-like delivery numbers and piper must-own stock and it's no wonder given what they reported >> look, when you look at the numbers, especially the numbers within the number, scott this was a sensational quarter by tesla, and it really shows the strength in terms of their ability to grow profit margins in an inflationary environment given the headwinds that they're facing -- >> go ahead. you still have me? no you're good. >> josh just lost his audio and they're trying to fix that it's live television we have a lot of people on at one time >> yeah. absolutely look, i have kids screaming in the airport here long story short, when you look at tesla, this shows that they are flexing their muscle right now and i expect them to continue flexing their muscle in terms of profit margins growing, manufacturing growing, sales growing especially here in the united states. think about this one stat from the first quarter, scott the sixth best selling vehicle in the united st

always good to see you, phil lebeau. >> you bet. >> a miss of 7,000 vehicles in a quarter riddled by supply chain issues and closure in china, karen, i think gm and ford would kill for that number. >> they'd kill for a miss of 7,000. they would not be happy with 309,000 though. >> right. >> gm's number is 510,000 off a terrible 20 some-odd but that was i guess what the street expected if you look at where they did build cars, they took whatever supplies away from lower margin. obviously buick was down a lot higher margin suv, trucks, those were all high-margin trucks. but they have to get it together the stock is sort of languishing at a mid-single digit multiple so i'm frustrated with this one, very frustrated. i would have thought three, six months ago we would not be looking at supply chain issues through the end potentially of '22 or maybe even longer. >> right. >> and massive input dynamicsth pricing and so i mean, that is the frustration of ford and gm they've not really gotten any credit for their internal combustion engines at the core business, which has never been run bette

issuing a pair of recalls involving 700,000 vehicles because of oil leaks and braking problems phil lebeau it any sign that the chip shortage is improving at all when it comes to auto production and sales? >> well, it's gradually improving. but that gradual increase is not enough to offset the fact that there's still a shortage so you will see things like production brought down at particular plants, next week, ford is bringing down production at one plant. gm at two other plants as it gradually increases, they have to replenish the supply, the inventory of vehicles. that's going to take some time what's the end result? higher prices. they remain high and here's one indication of just how high, sarah according to edmonds, the average monthly payment for a new vehicle in the first quarter hit a record high of $648. you know where it was a year ago? $575 don't be surprised, by the way, if that continues to edge higher over the next couple quarters. >> so is this the sort of thing where normally auto stocks would get hit when there are worries about consumer discretionary spending in a weaker

phil lebeau covers autos for us. you got to take the new electric hummer for a spin in arizona does it live up to the hype? >> it does it's an impressive vehicle look, it has the power, it has the speed. it's a true off-roading sut truck because it is a truck. it has a bit of a flat bed in the back, and if you are somebody who is looking for the ultimate, if you will, in terms of an off-road truck, the hummer is for you so they don't sell you short you get your money's worth for that $70,000, $80,000 up to $110,000 >> what about the crab walk? we have heard and seen so much about, phil? does that serve a real purpose or is it just a fun thing to do? >> some are calling it a party trick. look, there are limited instances where you're going to be able to use the crab walk legitimately you can only do it in small or low miles per hour you can't do it at like 30 or 40 miles per hour and if you're in an unusual parking situation, yeah, you might use the crab walk at that point. i think it's a smart move for them to market

it's a pricey ev, but an ev they believe can turn heads and they believe it has momentum. >> phil lebeau bell hightower's stephanie link is still with us. let's stick with the autos for a second if you look at ford, for instance, which is a really popular stock for retail investors, it lost so much of those gains, the ev hype gains it had over the last year. which just shows really how painful this correction has been we talk a lot about tech and the nasdaq and the index holding up. but take a look at a company like ford. just how much is priced in here in terms of tightening fed, weakening economy. >> yeah, they're always cheap. that's the issue with these companies, because they're very cyclical up until recently, they haven't been able to execute they're getting so much better at executing they have great long-term stories within ev, but that's more of a speculation kind of play, and that's not what the market wants right now sara, the big news next week, earnings and inflation so we have banks that report there are 30 rsis right now, down 10% to 20% year to date, like the setup there

i'm phil lebeau.th a range of 320 miles price tag, yes it's pricey at just under $120,000. but for bmw this is important. this is the continual expansion of electric vehicle, a market where they have struggled to catch up with the competition. but the ceo says they are in the right spot right now >> so we are coming at the right time, and that st. here to stay for -- for the next couple of years. on the contrary the other markets are vanishing immediately. so that approach we take kind of both handed is really the right strategy for us. >> they've got their work cut out. when it comes to electric vehicles it's about 6% of global sales in the quarter, so they've got a lot of growth potential there. right now they're not bidding any electric vehicles at their biggest plant in the country down in south carolina and in terms of the ev market share it still remains tesla's universe with a lot of others trying to nibble at their market shares tesla's market share going to come down over time, and bmw expect

phil lebeau joins us with a special guest. lta shares are higher largely because of the outlook for the second quarter let's bring in ed bastian. we'll talk about this in just a little bit coming off q1 what's your assessment of the market right now and the demand that is out there? >> the demand is phenomenal. we've never seen in our company's history demand for our product and services at the level we are in the month of march we had the highest sales in terms of bookings of any month in our history, period. >> highest ever, not just going back to the start of the pandemic >> highest ever and this is continuing in april. our people are out there doing their best to serve the surge in demand, but people are ready to go and are traveling >> as you ramp up how much of a headwind, if you will, is the ability to add staff so that you can add as many flights, as many crews as you need especially as we head into the summer schedule >> right now we're only operating about 85% of our schedule, and we expect that through the first part

. >> if you listen to let's say you step back and listen to the very neutral words of phil lebeau. >>>> no. those are ill advised. if you listen to phil lebeau, you know, there's not a tremendous overlap. >> right. >> there's not. >> no. there's not. it's just we have a different -- they have to get the reading of the room you have both cantor and cahn. they've been told, basically, the agencies are told don't go in i mean, it's like the agencies in oil they're telling you, listen, don't drill but drill. >> yeah. >> it's difficult. >> yeah. it's difficult >> the government is hard to read right now. >> it is the agencies are digging in because -- >> and cross purposes, no. >> the agency is digging in their heels because they're the ones that are going to be appointed and can be very liberal. >> all right the markets before we get to bob, give me your sort of wrap up the nasdaq down almost 2% now. the s&p down over 1% we talked a lot about the fed continuing its mission to tighten in the midst of what appears to be something of a slowdown. >> right. >> in growth by the way coming off i

last night we heard from g.m for this and more we want to get to phil lebeau who joins us. >> good morning. if you take a look at general motors t company posted better than expected earnings for the first quarter and reconfirmed its guidance for all of 2022 it's an interesting outlook. that's the most interesting news when you listen to the analyst mary barra and the analyst the chip is up fly is improving and they're able to offset those costs with a stronger power. a few are raising their estimates for general motors for 2022 lots to discuss with ceo mary barra. that's coming up first i know you'll be part of that interview as well. take a look at shares of boeing. they'll be reporting its q1 results in about an hour what are we seeing that's first and foremost in minds of memories we're talking about the p 37 max. is the production rate increasing as spectsed they're going to be purking out first deliveries, how much will it be. you have the 737 dreamliner. that's the plant we're at right now. we'll talk about that on "squawk on the street" with dash calhoun. lots to dis

let's go to phil lebeau for more phil >> reporter: we have heard from four of the six largest airlines and themes are coming true this is across the industry. not like one is outperforming everybody else record numbers from march going into the second quarter for the airlines all of the airlines with a loss for the first quarter. swinging to profitability in the second quarter strong demand they say the demand will stay like this for several quarters and corporate travel is rebounding here's the ceo of american airlines this morning on corporate travel. >> we are back 90%, 80%. as we get out there people are going to want to get out and visit. i'm a new ceo. people want to come and see me it' it's the same in the rest of the economy. >> reporter: let's walk through the earnings starting with american reporting before the bell today posting record march revenue heard from alaska. its first class revenues up 19% in 2022. paying up for premium. united seeing strong transatlantic travel demand. four more next week with southwest, jetblue and spirit and frontier the demand to see right now

phil lebeau and robert frank maybe you have some more thoughts, phil we'll start with robert.ut the power the take of under $3 billion is less than 1% of his total wealth or about 1%. he's still the richest man in the world worth about $273 billion. if you look over the past three weeks, he added $50 billion in stock fwrelt tesla this is an easy lift for him relative to andrew's question earlier, last year he sold about $16 billion in stock so 11 of that goes to pay the federal tax bill maybe 2 to 3 to pay the california bill. he has about $2 to $3 billion in cash left probably 23r last year's stock sales. >> phil, when talking earlier, have you been think abouting this is it all you can think about? are you obsessing? >> or the of [ laughter ] yes. nonstop. the other thing is elon musk is not like warren buffett in terms of taking stakes in companies and parlaying it and selling it at some point when he's like, okay, i made a nice profit off this he's never done that there's been chatter out there people saying, wow, he bought twitter at a great price he can ride it for awhil

let's go to phil lebeau for comments on the industry today hi, phil. >> reporter: hi. is clear confirmation that people are traveling again and willing to pay more. more than offsetting the rising cost of jet fuel look at the guidance from delta. looking at the fact that they expect double digit profit margins at the same time premium cabin. this is amazing. premium cabin is in so much demand it is outpaszing the growth of the main cabin people pay up and transatlantic bookings are improve jg here's the ceo. >> people have been cooped up for the last two years and concern and what will happen to demand down the road and inflation pressures, that is category that's prioritized by consumers and want to spend in terms of getting back to where they haven't seen people. >> reporter: when we talked with him he also was veryemphatic about the belief that it is time for the mask mandate to go he's not anlone many believe the mandate should not stick around cdc said today they'll extend the mandate through may 3. supposed to expire on monday and ed said it's time for the mandat

phil lebeau joins us with a special guest. hil. >> hey, carl bob jordan, ceo of southwest airlines good to be down here in dallas >> good to see you >> it's great to be here look, on a day that's busy, a lot of people coming in, new hire, we'll talk about that. paint a picture of the environment right now. you said we're going to be profitable this year how much demand are you seeing right now? >> first off, welcome to southwest airlines and our awesome training facility. this facility is packed. >> that's true it is packed >> thanks for coming our way the first quarter is a tell of two different halves of the quarter. january and february were very impacted by omicron. over half a billion dollars. but for that we would have been profitable in the first quarter. march really turned around, really strong demand in fact, march was our first month where we had actual operating revenues ahead of march of 2019. we've seen that demand continue basically as far forward as we can tell right now the outlook for the second quarter is rea

today. >>> and jetblue making a play for spirit airlines trying to leave frontier on the tarmac phil lebeauore hey, phil. >> hey, joe. you called this a spoiler bid. that's exactly what this is. here are the particulars of this proposed deal that was put forth by jetblue yesterday they came up with a deal that was announced by spirit and frontier last month. it's worth $3.6 billion and it would create the fifth largest airline in the united states in announcing the bid, jetblue says it firmly believes its proposal constitutes a superior proposal under spirit's agreement with froon tear and represents the most attractive opportunity for spirit's shareholders take a look at what happened with shares of jetblue after the offer came out again, it's 30% higher than the spirit/frontier merger agreed to on february 7th. it brought out a response from frontier, which an hour and a half after the proposal, frontier said, unlike the compelling spirit/frontier combination, an acquisition of spirit by jetblue, a high fare carrier would lead to more expensive travel for consumers, in particular an east

breeze airways hoping to capitalize on that by adding new transcontinental routes from new york phil lebeauore with ceo david. >> thank you you are joining us from hartford where you're busy adding flights and today adding transcontinental flights from white plains to san francisco, los angeles. what are you seeing in terms of demand right now for those flights? >> it's good air travel demand this summer is great. fares have gone up with the higher fuel prices but people seem to be ready to travel and see friends and family and new places. >> you have been around the block a time or two in your career have you seen a market like this with demand that fares rise as much as they have people are still saying i want to go and i will pay >> it's quite incredible it seems like there's an insatiable demand. i'm interested to see what happens in september and october. it's the same in brazil. it's off the charts. universal between here and brazil and seems like everywhere else. >> as you know a number of regional airlines had to cut back without the staffing that they expected to have because the i

this year for the first time since, you know, the pandemic here is ceo scott kirby speaking to phil lebeaut night. >> what changed is demand. i have never seen in my career such a hockey stick increase in demand business anald leisure demand we expect it above 2019 levels in a few weeks >> the second quarter, united forecasting a 10% operating margin and highest quarterly sales in company history rev-par up 17% first quarter results fell short of of estimates for sleep number. it is a mechanical bed apparently there are semiconductors in the mattresses that's random, but interesting >>> shares of csx are higher an led head of the open 3.4 billion expected something about a train. that's magic >>> perhaps your biggest mover of the day is tesla. that stock is rallying after the first quarter profit blew away estimates. revenue jumping 81% to $18 billion. thanks in growth to car sales. that's what they do. they sell cars higher average prices. that's even as the company says the factories are running below capacity because of supply chain woes elon musk, who was on the earnings call, was mum

black hat, sunglasses, phil lebeau has por for us. >> hey, david.ntrance for the official grand party, the opening starting of deliveries at giga texas by driving out in the very first tesla roadster that was ever built. this is way long ago in 2009, 2010. after he drove out, he got to the real issue that people want to hear about. the growth of tesla and the texas giga factory the plant's capacity, 500,000 vehicles annually. now they're not going to get there immediately. they have to ramp up production which is the plan for giga texas. you have the model y and they will be shipped primarily to the eastern half of the united states there is huge demand, pent up demand for the model y so there is no problem and then you have the tesla semi and then the cyber truck which is expected to come next year here is musk talking last night about his plans for the truck. >> it has been in a test a couple of years. but wore going to have this for you next year and it is going to be great and it is going to be one kick ass product after another starting next ye

julia boorstin has the late oes on the meeting phil lebeau looking at tesla leslie picker looking at whether he can pay for it and two guests on why twitter is an easy target we'll begin with julia big meeting today. do you have a sense of what will be said and the impact on the final decision >> twitter management is expected to be holding a meeting with employees at 2:00 p.m. pacific. twaes happening right now is elon musk is in a q&a session with chris andersen who is the curator of ted this is a big interview. very conveniently scheduled for today. so i think that twitter employees are probably listening carefully to what musk is saying and expecting it to be addressed in the meeting with the employees this amp musk was clear he cares about twitter being a platform for free speech, doesn't have the answers but important to protect the platform he wasn't sure how he was going to do it but take a listen to what he said. >> civilization risk is decreased if twitter -- the more we can increase the trust of twitter as a public platform and so i do think this will be somewhat painful i

first quarter results were in line with expectations let's find out what drove the quarter with phil lebeaust. hey, phil. >> hey, joe, let's bring in john lawler, the cfo of the ford motor company joining us from in front of the stock, change q2, when you guys look at this market right now, it's a red hot market in terms of demand out there. given the turbulence we're seeing in the economy, are you given any indication that that market is going to cool off at all? >> absolutely not. demand for our products is extremely strong the electric vehicles, and now the incredible f-150 helightnin. we closed march with a very strong order bank. so we're not seeing any sign of demand easing. >> you expect 4 billion dollars in commodity costs and increase of that much through the end of this year. where is the pain, if you will, when it comes to commodity costs? or is it across the board? >> from a commodity standpoint, our biggest suppose urs are aluminum, steel, precious metals, and now with the launch and ramp up of electric vehicles, the components that go into the batteries, nickle, lithium. we're

a big push behind an electric version which it thinks could be a game-changer so let's bring in phil lebeau more on the big electric hummer phil >> they started delivering the hummer at end of last year we had a chance just last week in arizona to put the hummer through its paces if you will. and yes, it does deliver what general motors said it would deliver. 1,000 horsepower and zero to 60 in roughly 3 seconds they have more than 65,000 hummer reservations but they're looking to increase production why? well if you order a hummer right now, listen how long it will be before you get it. >> you're probably looking at about middle of '24 at this point in time. but what we're seeing that vehicles are just beginning to get on the road and there is more media activity, we do more rowe motional work like an advertise featuring the crab walk for example we're seeing the reservations on an upward trajectory right now. >> and those reservations driven because of the ads feeting lebron james and the ad. you do the crab walk at low speeds people have said can you do that down the highway no, you can't

phil lebeau is here with ceo of alaska airlines. phil >> thank you, kelly. ben, you just came out of the analyst conference call. let's not talk about the first quarter. yes, a loss, but smaller than expected i think people are more focused on what you and your competitors are saying about this environment right now and this incredibly strong demand ever seen something like this in the airline industry where it has turned around quickly? >> it's been extraordinary, phil, and thanks for having me extraordinary demand and saw it starting in march. march sales highest in history 13% higher than any month in our history and continuing to double dump it by gains and unit revenue, double digit gains in read and predicting a double ditch profit in second quarter and a profitable year. it's been extraordinary, yeah. >> ben, every airline executive i've talked with in the last month says it's different because it's going to last beyond the summer. last several quarters maybe a couple of years. if you are in that camp as well, how are you convinced? how do you convinc

phil lebeau has it for us. ue, according to "the new york times," has made a bid to buy spirit airways for a deal that would be purchase price would be $3.6 billion. now, you might be saying, wait a second, isn't spiret already in a merger you bet, spirit and frontier have agreed to merge, so that is an agreement that would have to be unwound if spirit were to say, yes, we would like to be acquired by jet blue so unclear exactly how this would transpire or what this means. but there is already an agreement between frontier and spirit to merge. would spirit unwind that agreement in order to talk with jet blue accept jet blue's offer? remains to be seen we have calls out to all of the principals involved in that, but an interesting move by jet blue, making a bid for spirit for $3.6 billion. sara >> the stock is spiking, up more than 20% so just to be clear, phil. i don't know if there's any way to tell this is it a better deal, a better match, is it a better strategic fit for spirit to go with jet blue or for spir

motors and honda expanding their partnership to co develop evs with a more affordable price tag phil lebeauent is important because if the auto industry is ever going to get to mass adoption of electric vehicles, the prices are going to have to come down because most of them cost well over $50,000 here's what general motors and honda have announced they are agreeing to co-develop several lielectric vehicles over the next decade. production likely to start in 2027 and they're going to be targeting popular styles for example, think about a small crossover utility vehicle. 13 million more sold around the world last year. if you can come in with a low priced model at that target, it could be very successful the agreement calls for both companies to use gm's battery technology that will be important because it gives the scale, if you can do this around the world to bring down battery costs, and that's the key to selling the lower priced evs but keep manyin mind, these two companies are nowhere in the race when it comes to electric vehicles being sold in the united states. look at the first quart

snhu.edu >>> tesla earnings and it's under pressure trading below a thousand bucks as we said, our phil lebeaue now for the conversation so, phil, we got the deliveries recently, right? at the beginning of the month and they were at a record, but it's not like they wowed people, right? they pretty much met expectations. >> correct. >> and the numbers haven't really come down in terms of expectations now going into tonight, so put it into perspective. what does all of that mean for us >> i hate to say this is the case where the q1 numbers don't matter, but to a certain extent, unless something is wildly out of line people are not going to be moved by these number sfs what i mean by that, most of the analysts have baked in expectation for the quarter. the metrics to look for whether it's from the report or from the guidance or conference call to come down after this, gross auto margins and they were 29.2% in the first quarter and most expect it will be 28.8, 28.9% unless that's dramatically different and what's the situation when it comes to the chip supply and inflation. we know the story's the

pickup goes electric the first trucks are rolling off the line today in dear born, michigan fill phil lebeau is out there. >> reporter: thank you, jim farley, big day as you begin shipping the f-150 lightning you made a statement a few minutes ago on stage, you said this is just the beginning, ramping up production, accelerating production up to 150,000 a year can you make it to 150,000 in the next year? >> we can. we have to pull out this building we've upgraded the building twice, but it's all about batteries and raw materials. we have the batteries secured now, and we're in good shape. >> what keeps you up at night? >> for sure, a couple of things, batteries, raw materials that go in them and localizing that raw material chain in the u.s. and consumer credits we have to be competitive with china and europe and have consumer credits to help people. this is a $39,000 vehicle. we have to help regular americans get in this technology. >> with that $7,500 incentive. >> yes. >> here's the question, you know that we don't have localized materials for sourcing of batteries. it's going to take som

. >>> and the chevy corvette is going electric gm's president telling our phil lebeau, a plug-in hybrid version of the car will go on sale next year and that a fully electric vet is on the way. fans of traditional corvettes with internal combustion engines need not worry those models will continue to be produced go to cnbc.com for more details and with that full interview with the gm president. >>> nvidia one of the biggest laggers on the s&p for april now time to put your money to work in the name we will discuss after the break. stay with us if you have this... and you get this... you could end up with this... unexpected out-of-pocket costs. so if you're on medicare, or soon to be, consider this. an aarp medicare supplement insurance plan from unitedhealthcare. medicare alone doesn't pay for everything. and what it doesn't pay for, like deductibles and copays, could add up to thousands of dollars. medicare supplement plans help by paying some of what medicare doesn't... and making your out-of-pocket costs a lot more predictable. call unitedhealthcare now and ask for your free decision

period before the pandemic and please listen closely to ceo ed bastion and what he had to say with phil lebeauing. >> the demand is phenomenal. we've never seen in our company history for the demand at the level that we are. in the month of march, we had the highest sales in terms of booking in any month in our history period and this is continuing into april. consumers are ready to go. our people are out there doing the very best to serve, the surging demand but people are ready to go and they're traveling and there is great preference for delta >> it is been almost two weeks i'm still stunned by those words. best bookings ever in fact, the only reason delta is not on track to beat 2019 revenue numbers because the arm is only operating 85% of the pre-covid capacity as for the monster up tick in oil prices, bastion said they have no problem raising prices to pass the costs on to the consumer completely full plane. then last week we heard a similar narrative from a series of airlines. last wednesday united reported what seems like a less than stellar quarter if you only look at the headline num

delta's ceo ed bastain signed the letter he spoke with cnbc's phil lebeau on "squawk box" this morning. >> i feel very strongly the mask mandate should be lifted and individuals including our own employees make their own decisions and take personal accountability for their health on board our planes. candidly, it's time to let the masks go. >> it's worth noting ed bastian, whose name i mispronounced, made those comments hours before they extended the mandate the former fda commissioner mae scott gottleib i dr. scott gottlieb is with us of thht decision on masks? >> i'me story. doctor, good to see you. what do you think, right decision on masks? >> i'm not surprised they extended it two weeks. there's a surge right now in the mid-atlantic and northeast right now. i think we're further into that surge than we think. we're probably not picking up most of the cases that are occurring and we're probably going to see those cases decline as we head into the next two to three weeks. i'm not surprised they extended it i think they can reasonably lift it the scuttlebutt is when they lift it, i t

let's now get to phil lebeau who has breaking news. >> melissa, this involves unruly passengers and itt of transportation the two largest fines ever, one for 82,000 and the other for 77,000 for a cupouple of incides involving passengers the total fine for unruly passenger, $2 million. the secretary of transportation pete buttigieg has the quote of the day when it comes to unruly passengers if you're on an airplane, don't be a jerk. that summarizes it pretty good. >> that should be advice for all of life, phil. don't be a jerk. >> frankly, they should put that in the airport everywhere. >> yes, exactly. >> time for unusual activity what do you see in the options market >> they shouldn't have to do that, mel. secondly, jetblue's trading at a 52-week low and yet, you've got a huge buyer walking at 22,000 of the may 15 calls being bought the stock trading right around 12 and the 52-week lows and those options, one print 19,500 of those, 15 cents 15 cents up to 20 cents. that one stuck out for me and second, i have petrobras, totally the opposite is hitting 52-week highs and they're looking

royal elon musk fight for twitter and the potential impact on the growing empire he's building cnbc phil lebeauntends on doing phil, take it away. >> you think i know what is in elon's head. nobody knows what is in his head i heard that he'll be to tao distracted if he's running twitter. if you think he's distracted right now, he's added things over the year and he keeps on growing and having success starting off with tesla. and i'm suring you the stock back to when he was part of the ipo in 2010. i was there at the nasdaq that day. we interviewed him he talked about having a dream of growing the ev business since then the stock is up more than 21,000% why? take a look at the tesla sales annual deliveries and how they've grown. this year they're expected to hit 1.47 million so he's ceo of tesla but he's also the chairman of spacex he started spacex back in 2002 i remember people were like he's off playing with his rockets in the desert no longer are people saying that the valuation for spacex, $100 billion that is the estimate what about the boring company. starting in 2016. >> we were out in l

. >> phil lebeau, thank you, on the rivian story >> take a look at the major averages losing steam alldown about 120. dragged by the nasdaq right now is treasury yields continue to climb, down 84 we're actually making back a little bit of ground let's bring in peter, chief investment officer as long as rates are rising, is there a path higher for stocks >> i think it's a tough one. i think when you look at what the fed wants to do and what the bond market on the short end has priced in, combined with a rather aggressive path with the balance sheet, the fed is literally slamming on the brakes i don't think they have ever tightened this aggressively in such a short period of time. so not only is that going to have implications for multiples, but it's obviously going to have an economic impact and what that means for earnings so i think it's a tough road for investors while the fed is going through this >> but you do always wonder how much is already priced in. i'm looking at nvidia, which is strong today it's almost down 40% from the highs. so is that the right price for one of these hig

senior markets commentator mike santoli here as always plus, phil lebeau is here on elon musk's hugeet's start with the broader market stocks have been gaining steam the nasdaq up nearly 2%. if you look at what else is working today, energy is doing well, materials, industrials, financials the bottom performing groups are utilities, health care, and real estate it's kind of the opposite of what we have been seeing in recent days. pushing back against the recession theme. what stands out? why is nasdaq doing so well today? >> to me, the market is showing signs of being somewhat back in gear i don't think there's a specific why the big nasdaq stocks are working except this jolt of energy from the musk twitter purchase and the fact that there's been a big lag growth stocks had really lagged value and defensives for a while right now. so it makes sense there was a buy in here. what's interesting in terms as the day went on dynamics was you got buffered by the mega caps in the beginning of the day and the rest of the tape came around so it shows you signs of having a little more of that c

phil lebeau joins us with what was a kind of hectic yesterday afternoon, phil. >> yeah, because i thinke because initially all of this is because a federal judge said, look, the cdc lacks authority to implement a mask mandate nationwide. well, technically the cdc doesn't give the order to the airlines that technically comes from the d d.o.t. ultimately the tsa said you know what we're going to be suspending enforcement of the mask mandate, so you have people literally in flight saying take it off including the crews, and they did following the federal judge invalidating the mask rule take a look at the airline stocks this morning. we should point out we've reached out to every airline they've all suspended their mask rules when it comes to their passengers now, they all are saying it's optional, if you want to get on a flight and personally decide you want to wear a mask, feel free to do so, but they're not going to be enforcing it any longer united will be reporting its q1 results tomorrow after the bell, and after that report comes out, who's going to be talking with cnbc, scott kirby