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phil lebeau joins us is it still leisure travel or is corporate travel making a comeback >> reporter:ng most of the freight right now for the airlines we are seeing an increase in bookings it's not at prepandemic levels yet but is increasing. september and october where you see does most of the bookings and also helped the airlines when you look at what was heard from a number of airline executives, very upbeat right now. >> what are they expecting and then beyond that where the market is expecting a slowdown >> that's exacted in terms of travel that happens after the rush. you're going to see airfares rising from here they are going to go up. i think a strong fourth quarter for the airlines and i think that's what they're expecting at this point >> phil lebeau, thank you. if you look at a group like the airlines still 30% off the recent highs the fundamental concern about the consumer and slowdowns, what we might see in europe and the energy crisis. what expectations are baked in here after a surprise announcement from united >> pretty low expectations you have essentially had the hu

and we think tesla is in the driver's seat. >> let's bring in phil lebeau for more phil, we hear thisery month, every quarter, that is. >> yes, we do. >> all hands on deck so - >> i don't think that's the reason the stock moved higher today, melissa we do hear this practically every quarter we hear, everybody's got to get involved. we have to make deliveries we can have a big quart fer we put our efforts into the end of the quarter. that's fantastic it doesn't mean the quarter is any any better or any worse than what people were previously expecting. and oh, by the way, when it comes to third quarter deliveries, tesla is expected to have its best quarter ever i think that's part of the reason why the stock has been moving higher. >> phil, in terms -- it's amazing they still say, come on, everybody, help us with these deliveries when it's such a large company and they -- the numbers are so much larger than when they first started doing this in the parking lot in a tent >> sure. but i've had friends who have taken delivery near the end of a quarter. one friend in chicago had to go downs

phil lebeau is monitoring it all and we'll bring you their comments later on in the show.we head to break, a quick check on your markets. very kind of a sanguine day. dow is up 98, nasdaq is down a bit, about 0.4%. we've seen some selling heading l to closes. we'lsee if that continues, coming up. we're back right after this. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay. >>> all right. welcome back to "the exchange. we did it before the break, but if you're just joining us the last two minutes, let's do it again. here are the markets we've got the dow up, the nasdaq down about 0.3%. the high was right around here we're pretty much sitting right at the high of the day not very high, but as high as it's been today. here are some of the

the carriers managed through that time and how they're positioned for the rest of the year and phil lebeauat cnbc hq, i'm assuming you walked or flew >> they came in through labor day better than they focused and sept september october and october are better than the industry where we'll hear from a number of airline executives and they basically said it's better than a lot of people expected in fact, the terminology that i heard today describing september traffic, robust. business travel, it is improving and it's not a pre-pandemic level, but it is improving and capacity being trimmed helps the airlines as well and a couple of the carriers that we heard from today let's talk to ceo robert eisen as they look at september heading into october and united airlines out with an ak this morning where the company said that its revenue is a little bit better than expected for the third quarter, so that's certainly encouraging news all of this coming on a day when united says it may be pulling out of jfk if it cannot get more flight slots this is something that the faa is considering increasing the

phil lebeau joining us with that story. phil >> brian, are you a lease guy or a buy guy?y cash only. no debt, never >> there you go. if you're a lease person, and one out of every four vehicles sold every month typically were leased vehicles. but that's change canned dramatically in fact, the percentage of vehicles on a monthly basis that are sold or actually a lease is part of the sales, it's down to 17%. in short, the automakers and auto dealers have cut back leasing by about 30% in the last year three things are driving this. one, the lower production because of the chip shortage are, the supply chain issues that means there's a tighter inventory at dealerships and rising rates have also had people say, wait a second, does it make more sense to try to lease and find something to lease or do i just go taught and bite the bullet and pay for a new vehicle or a used vehicle? look at the monthly payments and how much they've changed in the last year. this is according to edmunds leasing has gone up to an average monthly payment of $581. still cheaper than buying but not muc

we go auto sales have been lackluster thanks to the semi shortage and august proved no different phil lebeau and that's not a surprise we know that the chip and the supply chain issues continue to hamper the supply of new vehicles as a result, when we take a look at these august sales results and we talk about primarily the foreign automakers here. we get ford tomorrow and we don't hear from gm until the end of the quarter keep in mind, these are in comparison of august of raft y raft year where the supply may have been up or down dramatically the average transaction price in the month of august, 46,259 and that's the estimate according to j.d. power and that is close to an all-time high and that speaks to the fact that there's just not a lot of supply out there. if you're going to buy, you're not getting the incentive and the pace of sales 13.3 million and that's -- you know what that does that brings down the pace of sales for this year below 14 million, and i bring that up because you've got to go back to 2011 to see annual auto sales come in below 14 million for an entire year and we are

phil lebeau covers airlines for us phil, what's the judge going to be focused on here >> well, you hit it right on the head, shep, when you said competition. ultimately what the judge is going to look at is what is the best system that's out there is it this partnership this northeast alliance? or having them separate jetblue and american look, jetblue and american say we've added service, 15 non-stops, and 17 more international routes and more frequency with some of the routes that we're flying, but today in court the justice department lawyer when talking with the ceo of jetblue made some strong points about the fact there is some revenue-sharing and there is some coordination in terms of service to those airports, and his argument is if you're doing that, that sounds a lot like a merger, and it's not very good for the consumer >> there is revenue. there is coordination, no doubt. the trial comes as jetblue is trying to buy spirit airlines for like $4 billion. does this help the doj's case? >> hard to tell at this point, shep look, that issue came up today in court the doj attorney a

to overcome any, i think, unfounded ang sfwlit they may have >> all right we'll leave it there phil lebeauyou mary barra, stephen scherr, it's great to have you here on that big announcement appreciate it. >>> we've had a little recovery here the dow is down 245, only 245. again, low of the day was down 553 points about an hour ago. we've come back a bit. the s&p 500 is now down a little less than 1% we're still seeing every sector weaker information technology is faring the best it's only down 02%, thanks to apple, holding up well tesla is one of the gainers. barclays is downgrading nike we'll talk to the analyst on the call in the market zone. don't forget to register for cnbc's delivering alpha. this is our big conference featuring top investing picks from some of the biggest names on wall street eronhecrigan the qr code rht the t seen to register now. we'll be right back. power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever yo

that way they can move the car around the airport wherever it is phil lebeau, looking forward to that3:30 eastern. closing bell i was speaking halifax time. phil, thank you. that does it for us. see you tomorrow "power lunch" starts right now >>> and welcome, everybody, to "power lunch." glad to have you with us i'm tyler mathisen along with seema mody here's what's ahead. historic high. nomura senior economist calls for the fed to raise rates by a full percentage point. he will make the case for that as the divide grows over what the fed should do tomorrow and then we're going to hear from, yes, power player jay leno he is with us live from his garage he met up with none other than elon musk, someone he calls the greatest innovator of all time he'll tell us what the

phil lebeau, thank you very much let's trade this now tim, you own ford.s already 42% off the highs. >> i own ford. i own gm if you look at ford on one-year, it's outperformed the s&p by 30%, through good times and bad. we know they had a great run towards the end of last year if you confirm the numbers, 12 billion, you're at 4.2 times where the market cap is right now on 2 '22 numbers this is a company thats is run differently than it has been they're going to free cash flow generative they raise their number. we heard the end of the second quarter about 35,000 incomplete unfinished vehicles. so this doesn't really surprise me and i guess the dynamic is we see that they have pricing power. they're the clear number two in ev and at this valuation, i can sleep at night i know it's not going to be easy here but again, i think these guys are running the company very differently than they have >> grasso? >> first of all, they all bounced off their june lows, all the car companies. we played a game would you rather, i would rather be in gm. i think they have a

let's get to phil lebeau this morning. hey, phil. >> hey, carl ford had an increase of 27.3%, people might say that's a huge surge in comparison to august of last year. sales were down 35% because of the chip crisis. there's a lot of bright points in terms of deliveries for ford, suvs up 47%. best month ever for f 150 lightning deliveries as they ramp up those deliveries, increasing with a total of 2,373 delivered. and speaking to the demand for the lightning as well as the other electric vehicles that are out there, the days to turn, david, this means how long it takes for a dealership to take a vehicle, process it, do the paperwork, get it to the customer, the days to turn for the f150 lightning, eight days in a normal market, you usually have a vehicle turning, i don't know, every 35, 40 days. eight days talks about how much demand there is right now for the f150 lightning >> wow that is fast phil, thank you. phil lebeau, ford shares you can see moving up a bit. we'll get a better read on that 14 minutes from now when th

second straight year the company's looking to attract talent as well as show-off some new technology phil lebeauas more on what we might expect hey, phil. >> hey, carl a number of technical updates are likely to come out tonight in the course of the discussion between elon musk, some of his staff members, as well as those who may be there participating in ai day. specifically what's the status with the d1 chip, also the dojo super computer and then there's the optimus robot. is there a time frame we might see the first iteration of the optimus robot. people might be parsing through anything he might say when it comes to the full software the expectation he'll probably talk about the expansion there by the way, he tweeted out yesterday this event is meant for recruiting ai and robotics engineers and highly technical this weekend we're expecting tesla to report its q3 delivery numbers and usually comes on the subsequent day of the quarter so expect that probably on sunday, though they have until monday, but i would expect it probably comes out on sunday. carl >> thanks. if you missed part of the s

. >> boeing adding about 41 points to the dow's rally today phil lebeau, thank you >>> netflix is alsor today price targets of $283. that applies an up side. saying the benefits of netflix are not currently reflectinged the stork. julia boorstin joins us. wall street seems to be coming around to the ad strategy. what are the persant risks here? >> well, look. it was pointed out there's significant fx risk. the overall sent mountains is it's very, very beneficial they believe in people trade down from the ad-free version to the lower cost ad-supported version people just simply spent so much time streaming on net flex, and they estimate that revenue per uses could be much more than what hulu gets and they're expecting that we could see this ad-supported version as soon as early november isn't is now that they woke up to that these lost their library as the other companies have tried to take streaming contend especially when people are on a budget that's how the conversations i've had >> it's so lard to the bill franchises that people are going to tune in for, or as these stream for i th

hard in the sell-off shares down 7% ahead of the ai day tomorrow and gearing up for deliveries phil lebeauomebody dressed up >> i have a tease video for you. let's start off before ai day what's expected this weekend they haven't set a date when to report the q3 deliveries most expect it sunday. second day of the next quarter after a quarter ends 364,000 vehicles delivered is the consensus. the majority model y with a ramp up in production in berlin and texas and the model 3 expected to come in 140,000 by the way this would be the biggest quarter ever in deliveries for tesla annual delivery estimate close to 1.45 million. they have delivered just over 565,000 so far that was the first half. and then add on the third quarter. shares of tesla and there's stories written how much is because it's a core holding for funds and therefore it is moving with the market. keep in mind they are ramping up production in texas and germany. looking at shares of tesla ai day is tomorrow night out in california that's where musk will be or starting at 5:00 p.m. california time what is expected to be discuss

our phil lebeau has more on that today. this has really hit the auto stocks, both the automakers as well as the suppliers. here's the news from ford. came out after the bell yesterday. the company saying it expects to earn just 1.4 to $1.7 billion in the third quarter for some point of reference here, the consensus before this warning was for them to earn almost $3 billion. here are the two problems. supplier costs coming in $1 billion better or higher than expected and they have 40 to 45,000 vehicles that they planned on delivering in the third quarter. they're built but they're going to be held why? because they do not have all of the parts and components needed. they do expect to sell or deliver those vehicles to the dealers in the fourth quarter. the parts shortages, we should point out, are not chip-related. that's one reason why you see the auto supplier stocks under pressure today as you take a look at shares of ford, the company is reaffirming its full year profit guidance of making between 11.5 and $12.5 billion. s

phil lebeau, appreciate it. >>> that does it for us on "the exchange," i'll see you at 6:00 p.m. for the fed factor special. in the meantime, "power lunch" starts right now >>> rollup windows, my son wouldn't know what to do with them welcome to "power lunch" along with contessa brewer, i'm tyler mathisen what tina to tara, there are reasonable alternatives. you just need to know where in the bond market to look to find the biggest rewards with the least amount of risk we'll show you where they are. >>> and the popular buy the dip trade. remember how that worked over the last few years it's backfiring now but it's not stopping investors from pouring in this hour a strategy in stock picks to help ride out, contessa, the volatility. >> hello, tyler. hello, everybody yields rising, the dollar surging, stocks have given up all of their earlier gain. the dow down as much as 429, now down 1.3%. the s&p off 1.2% the nasdaq composite down 0.50%. the nas dabl dak was up 4.1% at the high the treasury yields, two-year, highest, yielding 4.35 ten-year hitting 3.9%. the dollar index at a mult

phil lebeau covers the auto industry for us.ven the high prices for new models, how much are people paying every month on a typical auto loan these days? >> reporter: the average, according to jd power, is $716 for a new auto loan. think about that. that is every month somebody is paying 716. i remember a couple years ago when it smashed the $500 a month and people said well, this is unbelievable. how are people going to be able to afford this? now on average if you go out and you buy a new vehicle, because the price is so high, you are paying more than 700 a month if you take out a loan. >> is like an apartment. are automakers still offering incentives these days? >> reporter: there are some, but it is hard to find them. he will usually find them on the less desirable models. these days, that is the sedan. cars are not fashionable. people want suvs and pickup trucks. automakers don't have to offer incentives. there is so much demand and so little supply, there is really not much of a need to say, we will give you several thousa

nbc's phil lebeau, he knows travel and airlines better than anyone i know. a reality check on what wean c all expect. you are watching an extended edition of the news. each week night, 7:00 eastern, c nbc. >>> labor day behind us, the summer travel season is over. thousands and thousands of canceled and delayed flights, with staff shortages, weather, demand is past the weather. they were leveling at us. do they have their act together? is it better for the travel season? we should ask phil. he seemed to know this stuff. how are they doing? >> i think they are in connection to the fall. they have better staffing. they have better capacities. they are not flying with what they want. all of that will contribute to what they want with a smooth a couple of months. having said that, we get a hurricane somewhere, all bets are off to. >> it's fresh and new. they have still been kind of sake. >> is no defense of what they wanted for the holiday. they tried to overstretch. they didn't have the staffing. is a completely back to where they would like to be as far as hav

phil lebeau, thanks very much. the markets are still in the red and the dow down by 78 points. that does it for "the exchange." "power lunch" starts right now ♪ ♪ >> and it's great to have you for "power lunch." i'm confessa brewer in for kelly evans. the sector is feeling the heat from an inventory build and a top analyst for what's next on that sector. u.s. oil inventories are dangerously low. that's the call from citi's ed morse. we'll talk to him about the decline in crude prices and the biggest risk to supply, but first to tyler and a check on the markets. >> thank you, contessa >> welcome, everyone stocks are down for the fifth straight day and that puts the nasdaq on track for its longest losing streak since february the dow, the s&p, the nasdaq there you see it, there you don't, and .75% for the s&p and 1.7% for the laggard and the nasdaq two-year treasury yield topped 3.5% and its highest level since november of 2007 the dollar index nearing a 20-year high on the back of this morning's solid economic reports. there you see it 109.57 on the dollar oil trading around 86

phil lebeau was on the program last night and said nobody wants sedans anymore, but they're selling asla sedans. >> they are, tyler and the thing is the production -- it was just a few years ago we were going they're only make like 15,000 cars they're going to produce 2 million next year. and so that's definitely a positive so it's more of a hold for me than a sell. if you own the stock, i'm not saying to sell it. i do worry what's going on with elon musk and this whole twitter thing. it's a self-inflicted wound but he does have to deal with it and that's creating some problems. you had david rosenberg on earlier. i think we're headed for a recession if not already in one. that's tough for car sales and they do have expensive cars so that's going to be a little tougher there. the stock is still expensive if we're headed to recession, we'll probably test the june lows and i think we will some of these big cap names i'm afraid will take it on the chin once again you'll get a better opportunity to buy it six to nine months from now. >> share your perspective here on roku, which was a pan

will the unveiling of its all-electric equinox turn it around phil lebeau joins us with a look under hood but there's nothing under the hood >> reporter: the battery is what's important we'll talk about battery production in a bit. the equinox is critical in the push to overtake tesla in u.s. electric sales by 2025 here are the numbers within the numbers when it comes to the all electric equinox 250-300 miles. the target base price, this is their targeting base price, at around $30,000 which would be huge if they could come in close to that when it goes on sale in late 2023. and mary barr tells me they want to get these out into the showroom as quickly as possible. >> for the equinox it will ramp quickly. i think we'll be really close to full production by first quarter of 2024. the equinox is a very quick ramp with the products like hummer. >> reporter: pressure is building on general motors to catch up with the ev leaders in the u.s., and you'll see them here you have tesla, king of the hill followed by hyundai, ford, vw. mary barra says, yes, they can catch up, in part, as they ra

that way they can move the car around the airport wherever it is phil lebeau, looking forward to that big interview 4:30 3:30 eastern. closing bell i was speaking halifax time. phil, thank you. that does it for us. see you tomorrow "power lunch" starts right now >>> and welcome, everybody, to "power lunch." glad to have you with us i'm tyler mathisen along with seema mody here's what's ahead. historic high. nomura senior economist calls for the fed to raise rates by a full percentage point. he will make the case for that as the divide grows over what the fed should do tomorrow and then we're going to hear from, yes, power player jay leno he is with us live from his garage he met up with none other than elon musk, someone he calls the greatest innovator of all time he'll tell us what they discussed about the future of cars and, seema, space travel. >> looking forward to that, tyler. less than two hours left in trade and stocks are near the lows of the session ahead of tomorrow's key fed decision. the dow is down 524 points about 1.7% s&p 500 lower by a similar amount and the nasdaq dow

. >> maybe a little good news for buyers down the road phil lebeau, thank you very much that does it for the exchange. i'm join seema mody on "power lunch," oh, by the way, it starts right now >> yes, it does. thank you, brian "power lunch" begins now, i'm seema mody rattling everything from stocks to crypto. this hour we'll explain the fallout and have a list of defensive names that could work in this environment. and the housing trade, as rates rise, sentiments falling for the 9th month. we'll look at the beaten down builders, lenders and see if any are now good-byes. to brian with a quick check on markets. brian. >>> thank you very much. it's been kind of a choppy session with not a lot of big moves either way you can see the dow jones is down a whopping .06% why is anybody going to take a big position could happen tomorrow. either way the markets may be in a holding pattern ahead of the fed decision on wednesday. materials and industries are two of the best performing sectors if you want to call them that. health care and real estate among the worst. nothing is moving in that big

consumer demand, vehicle affordability, rising interest rates and a jump in operating expenses phil lebeau do these results mean consumers have hit their limit how much they're willing to borrow to buy a used car. >> potentially but let's be clear, there are specific issues specific to carmax that are part of the earnings miss for today but with regard to them saying, hey, perhaps we're seeing a softening in the consumer and notice definite softening in the second half of the quarter, keep in mind when you look at the monthly payment for a used vehicle, it has gone up about 18% in the last year look where it is right now the amount borrowed, almost $30,000 just under $29,000 the monthly payment, now over $500 and, look, we'll get the q3 numbers on loans and monthly payments over the next couple of weeks, i wouldn't be surprised if that monthly payment, sara, will be up in the 530, 540 range and have to ask yourself is that the limit? is that where people say with higher auto loan interest rates, it's too rich for my blood >> right, and keith lerner, the question is what does it mean for th

. >>> we have phil lebeau with the latest on the 737. >> joe, we are talking about the 737 max which and waiting for delivery to customers in china these planes built in 2018 and 2017 and 2018 before grounded. during that time period, they have a little over 100 built and ready to be shipped and out at the moses lake facility being held they can't be held because of what is going on with the trade relations with the u.s. and china. as a result, the company has patiently saying eventually we'll deliver them yesterday, a couple of boeing executives said maybe it is time we put new liveries on the planes and deliver to other customers who are ready to take them immediately yesterday, cfo brian west spoke at the conference in california. we delayed for a long time we cannot defer the decision forever. we will re-market the airplanes that were otherwise ear marked for chinese customers. boeing has been steadily increasing 737 production in washington you talked about ge earlier today indicating they are seeing challenges in the supply chain yesterday, ceo dave calhoun said the supply chai

manager farley speaking out about the economy here's what he said last night in an interview with phil lebeau the risk has gone up for a moderate recession certainly from all the indicators we've seen, certainly the inflation continues to grow. for us as a business, we see labor inflation, a lot of input costs that are going up. we're doing our best to overcome that in costs obviously, and we have a -- we have a big job to do on costs that's specific to ford anyway. our revenue is really strong right now, so it looks okay. but i think this is -- you know, the risks are increasing, given the inflationary pressures now. >> we'll hear more from phil's interview with the ford ceo. that's coming up in the 7:00 hour. >>> let's check on the markets, the trading day now. we have our guests now amy, i've been looking forward to your next appearance today on "squawk box" because you've summarized what's happening in derivatives and options and the vix. any positives you see in the underlying i don't know why that's my default position, but i guess everybody's asking that question any signs of a near-te

phil lebeau has the story next >>> a conference you don't want to miss.st powerful investment event of the year delivering alpha returning if pe in person on wednesday we will share risk and opportunities. scan the qr code to register we'll be right back. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq [watch: heart monitor connected.] technology makes it easy to connect to everything from your wrist. [watch: speakers connected.] but to connect to all your clouds, you need more than technology. [watch: 50 feet to pin.] well that's not fair. you need cdw to implement vmware cross cloud services. a portfolio of multicloud solutions. it'll simplify workflows, speed innovation, and secure all of your applications. how did you get here?! [watch: the backdoor is open.] vmware makes connected multicloud possible. cdw makes

as airlines ceos and leaders address on going staffing issues phil lebeau has nmore on that story. >> today and i think the topic of airline staffing will come up because that's the one part of the puzzle in terms of bringing the airlines all the way back from before the pandemic to where they are now that's one part. puzzle that needs to be filled in to give you a sense of how many jobs have been taking or added to the industry during the pandemic and then coming out of the pandemic, take a look at these numbers from the department of transportation the most recent numbers that we have for july up to 760,000 which is more than before the pandemic, but the important part to understand is that the key jobs we are talking about pilots, flight attendants, mechanics, so many of those involve training and moving up to different level of aircraft some of those there is a shortage there the airlines as we are heading into the fall travel season, as we expected, cutting back their capacity for september relative to what they were planning on flying earlier this year american, united and delta

we have to accept the fact that people haven't come back to work, the rank and file, listen to phil lebeauhis morning talking about problems in the auto business what stocks do i think are unaffected by this i think the -- unlike the autos, i don't think healthcare -- i think healthcare's doing well. i think the baggnks don't mind t there's a lot of industrials where they're just short parts and last week, there were things that happened that i felt devastating. new corps, which had been this incredible engine, largest steel company, just saying, listen, flat out, we have less demand and then we have a lot of the semis saying, look, the nand and the basic building block saying, look, orders are down. and then, david, we have a whole other thing going on where it's like, you know, if you're on an assembly line, you haven't come back to work i don't know the psyche. i don't know the psyche. i'm desperate. i ask everybody out here, what is the psyche of a person who can just stay home and usually, i keep coming back and hearing, they have a lot of money. >> so, people who worked on assembly l

phil lebeau is joining us now. can talk about the demand there it is the same old story, for the cars, the cars themselves. how is the supply of the ones that people want is it loosening up? >> joe, the cfo of porsche had sobering comments about the chip supply which drives the overall ability of porsche and other automakers to build more vehicles we'll talk about that in a little bit let's first talk about shares of porsche as it began trading in frankfurt today. it was a successful debut. interesting to say it would be successful on a day when the overall market in europe was lower. ipo completed with the $72 billion valuation. global sales down 4% and coming in at 145,000 vehicles you might say in terms of german luxury automakers and market gaps, where does porsche figure with ferrari and mercedes-benz it is below ferrari and below mercedes-benz and bmw. they are doing a public float of 10% of porsche as you take a look at shares of ferrari, the reason we show you this is we go back and show ferrari from the ip

phil, thanks. lebeau. what do you think of the autos here? go right to autonation, which i know bk is familiar with, although right now for some reason, i'll say this. look at the 135 level, the high we made in the fall. people think it's cheap on valuation, which is actually probably a warning sign, and if things start to move that way, names like autonation are going to get lambasted, i think. anecdotally, that's what i do. i got an email today from enterprise. they knew my name. they said guy, in all caps. we are lowering our prices on our used-car plea. i have not seen that in quite some time. just throwing it out, yes, interesting. so i'm throwing it out there. if you're on these stocks, specifically autonation, i think you take the money and run. >> a couple weeks ago, we were talking about, i think you just upgraded the stock here. if you think of these supplies, you know, demand, they're going to, they are going to benefit from that demand for used cars, in my opinion. phil just mentioned that, anecdotally, you know, the tesla market

phil lebeau joins us now with that story hey, phil. >> hey, joe.osion, and when we might see that within the overall market and now you're starting to hear more people say, yeah, we're seeing it, or the industry is seeing it. on the lower end of the market lmc automotive out with a new prediction in terms of annual auto sales this year dropping the forecast from 14.1 million down to 13.8 million and they say look, it is on the lower end of the market where you're seeing demand erosion, and it's easy to see why look at the three factors slowing down auto sales to a certain extent obviously, production is the driver right now there's not enough to meet the demand that's out there. but for some people, the record high prices, now the average transaction price over $48,000 that's slowing down their demand rising interest rates adds to the monthly cost, and you have low inscentives now there are very few automakers putting out rebates that incentivize people to come in and make a deal because they don't have to. they have enough demand in order to meet

phil lebeau is in the house and joins us with a special guest. >> it's good to be here. them, we won't see all four, but we'll see at least the jeep recon and some of the other models or images of what you're planning on rolling out by 2024. give us some perspective on what the game plan is >> good morning, phil. it's very exciting to be with you today. it's a big day for us. we're showcasing the technology associated with jeep it's a big opportunity it's a major, major opportunity for us it's a way for us to make the jeep even more jeep, even more capable, even more fun, and bringing in more freedom think about what you can do off road with a wrangler, doors off, top off, and almost silence. so a lot of opportunity for us, so once again, a big opportunity for us we've been showcasing that with the wrangler, which is the number one in america and in europe, our number-one lev a big, big success we have three cars -- yes, sorry. >> i was going to say, i want to talk about the capabilities in just a little bit about evs off road and the market for that but i have to ask yo

it's sort of -- it's a fascinating soap opera taking place here >>> tesla hosting its ai day and phil lebeauan expect. >> we're not expecting them to make any kind of investor update but there are going to be people who are going to read between the lines during the ai day presentation which doesn't start until 8:00 eastern tonight what can we expect to come out during this discussion it's going to be very technically oriented remember, this is a recruiting exercise for tesla they're going to probably talk about the d1 chip, the supercomputer and we will likely hear where things stand on the development of the humanoid robot. this is not a robot. this is from ai day last year when they had a guy in a suit come on stage to dance around to talk about that they're working on developing a humanoid robot that will be expected to assist at the tesla plants or in other manufacturing facilities for elon musk, the thing to keep in mind is he's using this to recruit. he's using this as an opportunity to say to people, if you're interested in artificial intelligence, we're the place where you want to w

phil lebeau joins us with more we knew there were supply chain issues out there, i think hearing thetive. >> becky, we've been hearing about this from a number of companies over the last several weeks and every time i would hear from somebody, they would say that's a one off, that's an isolated situation i think this is emblematic of what we're seeing from manufactures in a number of different industries here's the news from ford. it is warning that its q3 profit is going to be lower than what analysts were expecting and they're expecting in the range of 1.4 to 1.7 billion. the fact set consensus was 2.98 bill be. supplier costs $1 billion higher than previously expected ford says it has 40 to 45,000 vehicles that have been built that are not yet delivered and won't be delivered in the eartthird quarter? why? they need certain components to allow them to sell the vehicles to their dealers the expects to sell the held vehicles in the fourth quarter, but it also says that the issues with the supply chain, they're not chip related they are primarily other components, other issues within

boeing reaching a settlement with the 737 max phil lebeau is joining us. this is one more fine against the company. >> one more fine it is one more case where boeing is almost done with all of the litigation involving the 737 max. this is the settlement with the s.e.c. for boeing and former ceo. here is what was agreed to and announced late yesterday by the s.e.c. boeing and the muilenburg neither deny or admit about the safety and certification process. boeing will pay $200 million muilenburg will pay $1 million the chair of the s.e.c., gary gensler said they misled investors about the safety of the max despite knowing about serious safety concerns. 346 people died in two 737 max crashes in 2018 and 2019 boeing paid $2.5 billion already to settle the doj criminal investigation into the 737 max look at the shares of boeing you have to remember we are going all the way back to 2018 with this chart to show you the impact that the max crashes and investigation and everything that happened. it was grounded for 20 months, guys it wasn't until 2020, late in 2020