earnings in line with estimates, but also issued an upbeat forecast for the current quarter and beyond phil lebeauhe ceo at bastian earlier today and phil, i was honestly shocked at his optimism >> you can tell how optimistic ed bastian is. take a look at their guidance for the fourth quarter we knew that they would have a strong report for the third quarter with the summer, in line with expectations. fourth quarter, more than what analysts were expecting. a buck to $1.25. the street was expecting 79 cents heading into this morning. the revenue in the fourth quarter, that's higher, 5 to 9% than most analysts previously were expecting operating margin of 9 to 11% you don't need me at atlanta hartsfield international to tell you that this is a time where everybody wants to travel. the planes are full, there's no doubt that they are going to be seeing this for a while. cash flow positive for 2032, remarkable considering how they started the year the goal, being fully -- having capacity fully restored by next summer and the cost side of the equation, that's what a lot of people have been focused on. y

phil lebeau. >> you bet. >> phil mentioned the adam jonas note, da en dan what would you >> probablyford i think momentum around the ev models and their ability to raise prices twice, as phil just said and a handful of months here that speaks to demand for this product, when they get those supply chains back on schedule it should be fantastic for them moving a greater part of their fleet. vesz, let's say -- here's one thing. tell me where rates will be and we see what's going on here. twofold. right? the ability for people to finance the cars is an issue, and that cost greater for them just to own these sorts of cars especially with these increases, and ford itself, why does the stock trade where it was think of all the debt and ability to finance that debt with rates where they are. feels a bit like a value trap. down 40%, 50% from highness january. i'm not sfepi stepping in. back it out a few years, epic held and shoulders top right there. >> and bank stocks downgraded by atlantic equities. taking goldman sachs to underwait. morgan stanley from newt utral o overweight they're optim

plus, phil lebeau and deirdre bosa we have climbed here throughout the final hour of trading.has been strong all day now up 350 on the dow. energy about to go positive which means every sector is higher and the s&p is up 1.65%. not bad if you're stringing together a few days of gains seasonality is working in favor and things like the buyback window is starting to open but fundamentally has anything changed? >> i don't think too much has changed in a radical way in terms of corporate fundamentals. i do thinkthat, you know, we basically arguably priced in an awful lot near the lows. i keep saying that we're up 6 days out of the last nine more than 1% in the s&p 500. there was a sense of being underinvested if things weren't go to be getting worse in a hurry. i think the companies, you know, it is obviously a lot of give and take with the earnings reports. but there is not a sense out there it is spilling over the edge that you're seeing estimates for next quarter, next year there is an undertow for sure. you get down 15 times forward earnings in the s&p 500, it isn't like we we

phil lebeau joins us how tight is the supply and how quickly is inventory growing >> it's very tightot growing as fast as perhaps projection in the ubs note let me give you perspective. jd power says the current day supply, this is at dealerships, in transit, across the nation, 31 days, to put that in perspective normal for the auto industry is 65 to 70 days. by the way the low point was 25 days supply a couple months ago. it brings up the question, sara, will we get to over supply one of two things would have to happen you would have to see a rapid increase in production from the automakers and remember what they've said about curtailing production because of chip and supply chain issues. that's not changing any time soon okay so what about a big drop in demand you would have to see a huge, a massive drop in demand to the point where you've got about a million vehicles in inventory right now and need to see that go up well, well over 2 million in inventory jd power doesn't expect the market to get the normal until the end of next year and that's normal so there are a number of peopl

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thank you very much, phil lebeau >>> at&t surging today the telecom company rallying after beating topghlight, up more than 5%, but at&t's ceo warning prolonged inflation does remain a concern. >> that's not healthy for this economy, and i'm still concerned about that and there's pressure on those individuals who maybe aren't as flush with catch >> mike? >> certainly results that were better than this could have been pretty much across the board, in terms of some market share gains, thing like that i understand why the company would be concerned with inflation and the overall customer's spending basket wireless communications is not necessarily something with sustainable. i can remember in the global financial crisis, they were running out of the creditworthy postpaid wireless subscribers, we're nowhere near that, but clearly they would like for an economy that diplomat have prices of everything else going up >> i just don't understand where wire leave, i was looking at verizon andmobile. does it mean that they're st starting make a market play? >> they come from one another, it comes

phil lebeau joins us now with the latest phil, shares have been hammered going into this report, downr so far. >> and i think part of that people are unsure what to make of tesla is at this moment of time there's no doubt it leads the ev industry not only here in the u.s. but worldwide does that impact the profitability, because frankly when you look at the fourth quarter and the things to look at it comes down to a cup of metrics within the numbers one of them automotive gross margins. analysts expect it to be 28.5% what's happening at it factories in texas and berlin and for that matter what's happening in the delivery growth in the fourth quarter. they need to deliver i think 440,000, 450,000 in order to hit the consensus for all of 2022 which is 1.35 vehicles do we get any guidance in terms of what they're expecting in terms of delivery and demand as you look at shares of tesla keep in mind the average share price, the price being paid for a tesla vehicle right now $57,000, so they clearly -- and that's moving higher i think it was $5,501 last quarter or the second quarter. the qu

and a surprising number of people are ready, willing, able to pay phil lebeau joins us now with detailsrst time i heard about this, tyler, we had a few of these a few years ago, i thought, who are the people doing this well, a lot of people are doing this this is data from edmund's, look at the increase in percentage of auto loans that these respective months that included $1,000 a month. last month, 14% of those who took out a new vehicle auto loan said, yeah, i'll write you a check for at least $1,000. we went to adams toyota, in lee summit, missouri, out of kansas city, we talked to them and see what are you seeing in terms of taking out $1,000 loans, they said not only are they taking out the loans but increasincrea they want to spread out the payments as long as possible, even seven, eight, even ten-year loans. bottom line, more and more people are just comfortable with these payments >> i believe the average car sale last month, the car was about $50,000. so, you're talking about at least 50% of the people on any sort of sport utility, any sort of truck are going to be at $1,000 >

phil lebeau has more on the weakness we're seeing and of course why hey, fphil. >> this was a miss, yes, it was a record quarter in terms of the deliveries but the number fell shy of what people rr expecting, at least the analysts were expecting. total delivery 343,000 there you see the estimate of 364. the bulls will say the production was 365, they couldn't deliver all of them they point out they had logistics issues in terms of pushing the vehicles out to the customers. the analysts, here's their take on this. bern stee saying q322 production and dlifrp ris, a touch light. we expect bears to argue these results point to demand softness we know tesla continues to raise price. finally there's deutsche bank saying we remain impressed with tesla's operational execution in the face of large industry supply chain challenges. let's take a look at what we're expecting for the full year because this will be in focus over the next three months if they're going to hit their estimate of 1.36 million vehicles for all of '22, they're reques going to need to deliver 453,000 vehicles in the fourth q

a lot of questions about the future of the company and its ability to get through supply issues phil lebeau the key numbers to watch on boeing phil >> brian, they're expected to post a profit when they report their q3 numbers tomorrow morning. not a big profit, seven cents a share. the key thing people will be focused on is the optimism within the commercial playing unit it's not the entire story at boeing these three things have people believing they might be turning the corner in terms of the commercial airplane business first of all, increased commercial orders. we saw that at the farm bureau air show in the third quarter. dreamliner deliveries resuming last quarter and higher 737 production rate, up to 31 per month. lots to discuss with dave calhoun in a cnbc exclusive when we talk with him tomorrow morning on "squawk on the street." we'll talk about where he sees the commercial plane market and what he thinks might happen over the next couple months with the certification, not certification of the 737 max-10. that is the stretch version. a lot of eyes are focused on what happens over t

phil lebeau, what do you make of that call? did they highlight anything new?: they said if the interest rate is behind their call on the price target being slashed, but if you read the note it's pretty bullish from what they are expecting from tesla over the next couple of years. in fact, they raised their estimates between 23 and 26, so even though they cut the price target, they are raising their estimates and they point out the inflation reduction act is a tailwind probably best suited for tesla among all the companies trying to take advantage of the rotation fordsor towards electric vehicles here in the u.s. >> mike, tesla is down arc innovation which has tesla is down 5% and the nasdaq is down 3%, so clearly the rate story has more to play out here on this sector. >> right it's the rates and really it's just a matter of, you know, where the greatest, again, crowding and valuation premiums were in this market. tesla is sort of experiencing the recoil from exactly what spring it higher in that 2020 to 2021 powered do i think the results are pretty solid in

eastern time right here on this show phil lebeau, a great interview coming up there. be sure to stay tuned for that >>> let's now turn to the fixed income markets yields across the curve sitting at multi-year highs and showing no real sign of slowing down the ten-year treasury note yield hitting at a 14-year high, climbing 150 basis points or 1.5%, from its august 1st low of 2.6% it's been a pretty big line higher, you can see there. 4.19% the last trade there while two-year note yields sit at 1.6%. they've seen a similar trajectory from their august 1 close of just under 3% and we're now just shy of 4.6% the two-year sits near a 15-year high but bond king jeffrey gundlach thinks the route may be over tweeting yesterday, he sees yields peaking, saying there might be signs of yield increase exhaustion so for more on that treasury market trade, let's bring in brian weinstein, he's the head of global fixed income over at morgan stanley i wonder, though, 4% plus yields for not just the two-year, but the ten-year it sure seems attractive to somebody who remembers seeing 1.

always great to get phil lebeau's take on all these things >> when to pull the trigger, so right. >>hat's in general, yeah i mean, but we're not going to know >> you know, when you said that -- think about what you said about the ford downgrade being late well, when do you pull the trigger? is it ten? i mean, it was -- it's certainly not '23 where it was so i think we can't lose sight of the fact that people who now downgrade are not going to look as good as adam jonas at morgan stanley, who hated all the way down we haven't even talked about two. 3m and ge. these are core names >> we got to take a quick break, but we're going to have time to talk about ge, which we haven't in a long time let's give you another check on futures. we open in 15 minutes, as we've discussed. looks like here going to be down a bit, now it looks like we're going to be up we're also getting comments from chicago fed chair charles evans. overshooting rate rises as great uncertainty remains over how high rates must rise >> great >> interestingly, he will join us >> oh, nice. >> yeah. next hour. don't want to

we want more of you, phil. >> we want more phil lebeau. >> thanks, guys. >> see you in a bit. >>> we have other breaking news. it is official adidas terminated the partnership with ye immediately. the artist formerly known as kanye west the company reviewed and decided to end production of ye products it has been a long time coming you see the stock reaction down 4.1%. this is a partnership that is a subst substantial one for the company. 8.5% of the lineor revenue tha comes in from the yeezy products >> i was trying to think if they pull off some kind of -- not a compromise, but way for them to continue to sell products that either not branded yeezy, but looked like yeezy. >> that's what they are trying to do. >> and if anyone would buy said product. i'm fascinated to know walking into the foot locker these days if people are buying these products i bet people were, interestingly enough >> is this all revenue loss for why the stock is down or reputational damage? >> that would cumulatively over last few weeks look at -- >> i love wearing

that's not bad let's get to phil lebeau who is with the company's ceo they're not sitting. l. >> no, but i'm sure robert heard your comments earlier. we'll ask him about premium seats and how many they're planning to add. ceo from american airlines you beat on the top and the bottom line. give me your take in terms of what you're seeing in the market right now with demand and how strong it is right now. >> phil, demand is strong. we're really pleased, that's powering the results that we're reporting and also the forecast that we're giving as well. but you know what, it goes back to the couple things we talked about long ago which is we want to be reliable and profitable. it's taking us a little bit longer than i would like to get back to reliability. but we're on that track and positive about it. profitability, two quarters in a row, projecting in a third looking to the fourth quarter and it's all fueled by a tremendous comdemand environmen >> your q-4 guidance, going into this morning the expectation was 22 cents a share much better than analysts were expecting. what are pe

news it's recalling nearly ever truck it's ever delivered to find out exactly what is going on, phil lebeau details. it's like a loose bracket and then a steering column that sounds serious. >> it's a fastener that is part of the steering mechanism within the vehicle, and, look, this is a case where they believe it's a relatively easy check and fix in terms of all the vehicles impacted you say it's almost every vehicle that they have delivered. that's correct, but let's be clear, we're talking about 13,000 vehicles. it's not like they're recalling 3 million vehicles the issue is the steering fastener which could potentially cause people to lose control of the steering there's been no accidents or injuries, but the small thing to do is recall the vehicles and get them check they have build approximately 15,000 vehicles since the production started what the recall does is that it raises questions about that ability to ramp up manufacturing. they cut their production for last year. they already cud their guidance down for 25,000, which, by the way. they have been sticking with they say they do

phil lebeau has that next. >>> throughout hispanic heritage month, we are celebrating our cnbc contributorses. i'm glad you thought i never heard of javier bardem i'm glad you are spelling it out. ventures partner and master holdings partner i knew how to say javier >> i was born and raised in puerto rico and went to college in the midwest it opened my eyes to the world to pursue the american dream and hurdles exist for many why is america such an amazing place? hundreds of cultures and most dynamic economy in the world and hispanic success is american success. soon to be 100 million people. real productive. our heritage is part of the american story i'm proud to be puerto rico. lucky to be an american. >> announcer: executive edge is sponsored by at&t business at&t 5g is fast, reliable and secure d you'll get our best dea. nice, but i can't accept it. unless every business gets the best deal. on every iphone. uh, actually... we already do that. the plumber with the ascot! big bjorn, little bjorn, too! the caterer who really cares. every business should get the deal! we make a good team. ev

let's get to phil lebeau who joins us with the ceo. phil >> thank you very much, jon.et's bring in amnon shashua, who is the founder and ceo of mobileye then they were bought by intel in 2017. now you're public again. what is being independent once again free up in terms of opportunities that you may not have had an opportunity to pursue in terms of businesses as part of intel? >> first, phil, i'm excited to be here, excited to be back to public markets what we get from being public again is amplified attention in the past five years, have been working on building a great product portfolio, now being back to the public eye we'll be able to communicate the entire rainbow of solutions that we have and this attention amplification is very, very important for our business. >> a lot of people talk about you guys and say it's autonomous drive technology you and i both know we're nowhere close to fully autonomous drive vehicles being on the roads in mass quantities. it's more advanced driver assist systems, the steps needed before we get there where's the greatest opportunity

phil lebeau with us with breaking news. >> hi, morgan. e.d.start building batteries and evs here in the united states. here's the battery investment. $3.5 billion along with korea's lg energy solution putting a plant in south central ohio 2,200 jobs created honda needs to get into the ev game especially here in the u.s. they don't sell them in the u.s. now. the u.s. market is rampantly increasing 5.6% of the market right now taking time, however honda's u.s. ev production not scheduled to start until 2026. guys, back to you. >> phil lebeau thank you. >>> a quick check on markets major averages lower s&p down now 25 points about 0.7 of 1%. 35al -- 3586 the outperformer that does it for "squawk on the street." "techcheck" starts now. >>> good tuesday morning welcome to "techcheck. i'm carl quintanilla with jon fortt and deirdre bosa how much farther can things fall talk about it. plus hardware to sales events. big techs betting big on the consumer, but with meta down almost 5% and amazon not far behind behind, is that a good thing and plus regul

let's get more to phil lebeau with more on that in dallas. > hey, gordon ceo of southwest wow, talk about a quarter. record levels. paint a picture of what you're seeing in terms of the demand that's out there right now. >> you bet, phil thanks for coming to our network ops center this is where we run the operation with our terrific employees so well. no, it's a great quarter we've got record revenues. we've got record passengers. we tied for a record load factor if you look at our fourth quarter guide, that continues into the third quarter. >> you would add even more flights and be carrying even more passengers if you could have more planes as well as more staffing where is not the slowdown, is it staffing, getting pilots, flight attendants that you need or is it in getting more planes? >> it's really pilots/staffing in the other areas we're not perfect but we're nearly staffed. we are just, you know, short pilots to fly all of our air krampt our scclasses are full we are getting pilots. we are getting great pilots but our training centers ar

than, say, three months ago, but nowhere close to where the industry was before the pandemic >> phil lebeau, appreciate it. a lot of tesla owners are eager for that. >>> stocks are at session highs, dow is up more than 700 points every single sector is higher. coming up. stop stock picks but only if you leave it here on "the exchange. ♪ ♪ 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 your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire >>> welcome back happy monday the markets are happy. they're rallies sharp ly closing out their third straight negative quarter it's not happened in, what, 20 years. there is bargain hunting to be done one day does not a trend make. is there any sign the

phil lebeau sat down with the ceo of the company earlier this morning and has some highlights for us delta this morning is what i think we'll hear from all of the airlines as they report their q3 results and give us an outlook on the fourth quarter. for delta, it doesn't reflect it in the shares today, which are fractionally higher and trading lower on the day this is a company that basically reported in-line results for the fourth quarter 151 a share. a three cent impact from the hurricane. revenue roughly in line with expectations and then when you take a look at the cost component as well as their operating margins, operating margins stronger than expected and the cost, up 22.5% they expect that to drop in the fourth quarter it's the fourth quarter when you look at the guidance, that's why there is some optimism about the airline stocks not reflected in what the stocks are doing today. delta in the fourth quarter coming out with a buck and buck 20 a share 79 cents going into this morning. revenue is expected to be up 5% to 9%. and then an operating margin of 9% to 11%. when we talk

automakers today the company just unveiling its electric gmc sierra pickup truck with a hefty price tag phil lebeau story. hey, phil. >> let's take a look at the gmc sierra evdenali. the first edition, there's a number that will come in over $100,000 they hope to have the mass market editions when they start production closer to $50,000 all of this comes at a time when a number of automakers have continually raised the price of their evs because of the impact of higher commodity costs. the president of gm says that's not what they're planning to do here >> i don't think jacking prices in a time when, you know, people may not be able to afford things is always the best move. we've got -- our platform is a ground-up platform which allows scale and cost control, which our competitors do not have. >> he didn't say the name of those competitors. let's be clear he was talking about ford in terms of raising prices and his belief they're better positioned than ford and others when it comes to cost control. take a look at the u.s. ev market share gm is not on this list because it's only 3.9% but they still

let's see what they have to say on the call about where they are right now. >> phil lebeau, thank youu bet. >>> as we head to break, here is our roadmap for the rest of the hour including shrinking consumer savings one report saying spending may fall even further. >> plus more on netflix. we'll sit down with the company's former head of content acquisition. >> mortgage apps hitting the lowest levels since '97. what that means for home buyers when "squawk on the street" comes back in a moment - yieldstreet presents: alternative investing with kal penn and older kal penn. - oh, the stock market is doing that fun thing again. - hey news from the future, you're going to live through that about 10 more times. (laughs) - oh, it's no stress. i just discovered yieldstreet. they vet investments that don't ride the stock market rollercoaster. - ooh. i think some of my gray hairs just reversed. - yeah. you're welcome. - [narrator] become an investor today. yieldstreet: private market investing. >>> welcome back to "squawk on the street." despite rising costs and high inflation, the consumer prov

phil lebeau joining us with more on the ford story. i won't ask you to comment on the grem lynn. il. is not necessarily third quarter. remember, there was a warning back in september that costs will be $1 billion higher than previously expected. they're not going to be able to ship $40 to $45,000 that are built, because they don't have all the parts, because they have to get those they expect that in the fourth quarter. it really is, do they reaffirm the guidance for the fourth quarter quarter, which they did in september. and what do they say not only about inflation, the supply chain, but more importantly, the cadence of demand and what they see with the consumer, going into 2023, and then, hanging over all of this is what they expect in terms of ramp-up in production and that's really going to be crucial in 2023 and 2024 >> any sign of waning demand on that side, phil, for the lightning or the mach-e? >> no. at least not at this point they're not showing a drop-off in reservations. look, they just raised the price, an indication that they see enough demand there that they're te

cool off a bit they're not quite back to pre-pandemic levels just yet, but that could soon change phil lebeauh the numbers. hi, phil >> hey, tyler. this is the drop people have been waiting for new data from manheim auto auctions, they track the used car market and the pricing of the market it shows that when you look at the prices of used cars on a wholesale level from august to september, they were down 3% it's the first year over year drop since may of 2020 year-to-date, wholesale prices down 13% i say wholesale, because you have to understand how this works. dealers are buying used vehicles from other dealers at auto auctions, often online, but there are still a few that are happening in person. and what they're noticing is that the market is shifting a bit. new buyers are still making up a portion of the demand that they usually see in the used market the average used vehicle loan, it was up 8% last month to a little more than 31,000. if you take a look at those auto dealer stocks, that are primarily focused on the used market, we're talking about carmax and carvana, they're at 52-week l

you need to listen to what the ceo scott kirby said to cnbc phil lebeau on "squawk box" this morning.ten to this. >> hybrid work allows every weekend to be a holiday weekend. what we see in our data is there are tons of customers untethered from the office can work remotely one to two days and taking extra trips. >> lesthe's talking about hybri work i don't know if i can fully buy the argument but the fact he has so much conviction, tells you business must be going great tomorrow morning we'll hear from american airlines. that should be less than surprising all three major airlines are doing better than expected the strong travel market is very much with us and these companies sound pretty darn optimistic about the fau uture. i got to say, i'm becoming a believer are delta and united worth buying both stocks are trading at roughly seven times. i like them cheap. a classic sign wall street doesn't trust numbers however scott kirby is right about a new normal for air travel, the estimates may prove to be too low. union behavior changed post covid. travel including travel overseas to tak

phil lebeau, tomorrow morning, david calhoun, virginia tech hokeys go hokies. that does it for us on "the exchange." i'll join contessa brewer on "power lunch wash" which starts >> on that auspicious note, welcome to "power lunch. i'm scontessa brewer. goldman sachs president and ceo john wall drin joins us. we'll talk about deal making and the big reorganization big tech earnings on deck. margin contraction in focus. not stopping a fund manager from going ahead of their results we'll talk to them in just minutes. brian -- >> contessa, thank you very much those are individual names let's talk about the macro markets. they're looking good stocks overall rising for a third day. the dow, s&p and nasdaq, nasdaq up 1.7%. the dow on pace -- i know a lot of people don't watch the dow, but the dow is on pace for its best month since november of 2020 basically two years. here is what else is moving this afternoon. xerox shares falling after the company cut its full-year revenue guidance they blamed inflation. they blame supply chain constraints. by the way, weber is up

the news and news of a recall broke out at this point, are they a buy, sell or hold >> i defer to phil lebeaulutely the best reporter when it comes to autos and airlines he said it wasn't that meaningful of a problem, a recall fastener and therefore, the stock being down 8%, 7% today is an over reaction. i think you're okay. again, this is a concept stock and i don't like concept stocks but it's a darn good concept let's go to tyler in california, tyler? >> big boo-yah, jim. >> thank you, tyler, what is going on >> caller: alrel right. i've been -- a particular stock i like, i am wondering if this has been possibly the bottom since its earnings in 2020 it did really bad and since then horrible i want to know if this is a bottom on this stock or if this is the end because of a -- the pandemic and stuff ccl, carnival corporation. >> all right this is a great question i'll use it for a little instruction, tyler, if you don't mind i never liked to reach and find a stock that's not best of read. when i do, norwegian is more expensive but i have much better feel after speaking to frank del rio, the

the the company set to report third quarter earnings today after the bell cnbc's phil lebeau joins us with a look what we can expect. anything we can expect after the partial prerelease of the earnings >> i don't think so, frank i think this is one of those cases where it's not people will ignear the earnings as well as the revenue but it really has been muted by the fact in september we expect costs to be up by a billion dollars. we're not going to deliver 40 to 45,000 vehicles because of a shortage of key components and parts, and as a result everyone's saying, okay, we know q3 is probably going to be lower than expected but they didn't change their full year guidance so we need to focus on q4. it really is going to be about where the company stands not just in production of internal combustion vehicles as the state of the consumer is, inflation, et cetera. what's happening as they ramp up production of electrical vehicles and then there's the ev production that will also get a lot of attention not only in the report but also when we finally hear from ford executives about what the

assume that bodes well for the cruise lines >> it does that conversation tishgs her, with ceo and phil lebeau, talking about how there's appetite to travel this fall and winter, certainly positive for the broader sector where the cruise lines get hit is on pricing. united said ticket fares are going up and with cruise lines tending to appeal to a customer that is cost cepstive is going to take aim, especially for that family of five from chicago. they have to spend $1,000 per person to get down to miami and spend an additional amount of money to get on a cruise that's going to be tough to swallow. what the cruise lines are trying to do is bring more ships to the customer those of us in new york if you drive down west side highway you will see there are about one to two cruise ships docking in new york city per week that's something they hope that strategy will work over time. >> but this time of year you have to sit on the cruise ship for three days before you get to warm weather, like get me there in three hours. >> it's about less than 48 hours to get down to the caribbean. >> all right. >>

i think demand is higher it's at a higher level >> phil lebeau joins us.nced this is the new normal? he used to word durable when it comes to travel demand, clearly countering some of the market's demands that this is temporary >> first of all, there was the pent up demand from the pandemic and that's going to continue at least through fourth quarter and everybody within the airline industry believes it continues after the holidays in addition, their supply is constraint not just for united, but for all airlines their capacity is down about 9 or 10% compared to pre pandemic. that's not changing anytime soon boeing and airbus, they're not going to be able to ramp up in order to let these airlines add as many new aircraft as they would like yes, they will add them, but it's much more constrained pace then finally, you've got what could be a shift in travel patterns and you heard steven scherr talking about this. you have people who can work remotely so they may take a trip, leave on a tuesday and stay through the weekend to back it up, he says look at the lo

go, shares of united airlines are higher today ahead of earnings after the bell let's bring in phil lebeaull, we'll see big numbers for the third quarter. we're going to see that from all the airlines when they report their earnings results really what you want to look at is two things. one, will they give specific guidance for the fourth quarter? what do they say about demand growing beyond the holidays? we know that there's going to be a lot of people flying through the holidays what do we expect in the first quarter? and also the question of how do you grow in terms of trance atlantic we know they're expanding their offerings next summer, and what about expanding the fleet? especially when it comes to wide bodies lots of news surrounding united and a potential order with either boeing and airbus, either one, or potentially a split there. lots to discuss with ceo scott kirby. you don't want to miss our "squawk box" exclusive tomorrow morning. before that, we'll get the numbers after the bell we'll see what this have to say about the fourth quarter and beyond back to you. >> i'm sure we'r

chain lifted car inventory but car buyers are feeling the pinch of the rising interest rates cbcs phil lebeauople are stretching themselves in a way he has never seen. >> we still have people come in that say, and maybe hope that there is 0% available but it's not. rising interest rates and more expensive cars and trucks, pushing auto loan payment to record highs. toyota dealer in lee's summit, missouri. >> at least 50% of our customers are having payments over $1000 a month. when you include sales tax, sometimes property tax, it is even more than that. and that is just an awful lot for a car. >> reporter: and it has become more common. edmonds says 14% of buyers in september signed loans requiring monthly payments of at least $1000. and gone are the days where most buyers paid off their car over three or four years. >> when i first started in the business, it was 36 months, then 60, for a while it was 72. but there are 84 months and 96 month loans now. >> reporter: scott adams is evens in ten-year auto loans. all to keep payments as low as possible. after 25 years selling guard, adams is stu

the after hours, down about 3.5% for more on the actual numbers before the trade, let's bring in phil lebeau. >> let's start with the good news if you are a bull on tesla. they beat the street in terms of earnings for the third quarter earning $1.05, expectation ts we 99 cents the estimate was for $21.96 billion coming in at $21.45. then it's the numbers within the numbers that get so much attention. many people focus on gross margins, excluding zero emission vehicle credits. that came in at 26.8%. most thought it would come in around 28.5% that speaks to the margin pressure that they're feeling. operating margins coming in at 17.2%. total revenue up 56% compared to the same quarter a year ago. automotive revenue up 55%. what did tesla say about achieving its annual delivery goal of growing deliveries by at least 50% annually well, they reiterated that remember, for them to do that they will need to deliver, i think, 450,000, 460,000 vehicles in the fourth quarter. the estimate is for them to reach 1.35 million vehicles delivered for the year, which would be another 450,000, 460,000 vehicles

that's our phil lebeau. >>> wells fargo getting a boost today.that stock to buy from neutral, raises the target to 48. analysts say the bank has an under appreciated earnings growth story due to best this class revenue upside interesting call here, mark, because a lot of the research has been about operating leverage and which banks finally have a couple more levers to pull at least say on spexpenses. >> yeah, we know wells fargo has had many, many issues over the last few years and decades, frankly of the investigations and some of the amelioration they've done for some of the suits that they've come up with. i think -- listen, i think there's a lot of pessimism with the banks. obviously there's been a lot of fear about loan quality and loan growth and what's going to happen now a lot of it is probably baked into these stocks right now. i think you got to look at these third quarter reports. we saw some fear when jpmorgan and others reported their second quarters the earnings, the first ones to come out when the reports come out in the next few

14,000 fewer than expected an this guy elon musk surrounding his pending twitter deal bring in phil lebeauh the story and matt joins us with the trade. fu . >> what people will be focused on when numbers come out not just the tom and bottom line but the numbers within the number. automotive gross margins 28.5% is the consensus is it there or higher than that? that could give a boost to the stock. what's going on with the giga factory production overall, specifically shanghai, the big enchilada and then texas and berlin also ramping up production and that also feeds into the discussion about demand and what they're seeing, not only in the fourth quarter but potentially beyond that. i don't think they will give us guidance next year, but i think whatever commentary elon musk has about the market strength overall will get a lot of attention. he almost always says the same thing, great demand for the tesla vehicles we need something more tangible than great demand >> we'll see $6 a gallon gas in california they will have great demand. matt, what's the trade on tesla, if not the most important

how about $1,000 phil lebeau goes under the hood and tells us how that can be the few norm i would like pc "squawk box" will be right back. aren't we all just looking for the hottest stocks? (fisher investments) nope. we use diversified strategies to position our client's portfolios for their long-term goals. (other money manager) but you still sell investments that generate high commissions for you, right? (fisher investments) no, we don't sell commission products. we're a fiduciary, obligated to act in our client's best interest. (other money manager) so when do you make more money, only when your clients make more money? (fisher investments) yep. we do better when our clients do better. at fisher investments, we're clearly different. >>> it may sound crazy, but it's becoming more common for dealers to sell new vehicles to a buyer and it's financing the purchase with an auto loan that includes an auto payment of more than $1,000 if not, sometimes you see 8900 when you sign the purchase so it's one or the other a lot, lately things are more expensive. >> right it's a far different envi

shares are getting a boost after the company did report a better than expected third quarter profit phil lebeaue company ceo mary barra earlier today and has some highlights for us. >> when you look at the q3 report from general motors, every metric was better than expected better than analysts were e expecting. they beat on eps average transaction price, close to a record high, over 51 grand. the supply chain is improving. so, what do the analysts think of this report wells fargo says solid q3 beat across all three segments. jpmorgan, far better 3q profits and reaffirmed guide despite more challenging macro that macro also includes the supply chain, which has been weighing on general motors and all the automakers here's mary barra talking about the chip shortage and where things stand right now >> we've seen a steady improvement, and, again, very proud of the team we were able to clear 75% of what we had, you know, in inventory because of the chip shortage. i wouldn't say we're completely out of it yet. it's more volatile than i would expect at this point, but we're continuing to work through

. >>> united is expanding roots for next summer's international travel, continues to rebound phil lebeau david, this is a healthy expansion that united is announcing the second straight summer where it is increasing the number of flights from the u.s. across the atlantic to europe also expanding into the middle east as well here is what the expansion calls for next year. a 10% increase in transatlantic capacity compared to this year that was up 20% compared to pre-pandemic levels. it's adding routes and flights for the summer of '23. the three new routes is the most notable newark to dubai. they will have a co-chair agreement with emirates. you have newark to stockholm and then newark to spain the transatlantic capacity next summer up 30% compared to where it was before the pandemic in 2019 so as you look at united, keep t in mind strong demand started this summer, that pent-up demand continued this fall. they expect this to continue past the holidays into next year we will hear more from united ceo scott kirby when the company reports earnings next week and speaking of earnings we get t

. >> phil lebeau, thank you. >>> after the break we'll do a deep dive on twitter with former ftc commissionermpson along with tech's roger mcnamee. stocks trading above 50 bucks shar we're back in two. e hrv and rem, 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. - yieldstreet presents: alternative investing with kal penn and older kal penn. - oh, the stock market is doing that fun thing again. - hey news from the future, you're going to live through that about 10 more times. (laughs) - oh, it's no stress. i just discovered yieldstreet. they vet investments that don't ride the stock market rollercoaster. - ooh. i think some of my gray hairs just reversed. - yeah. you're welcome. - [narrator] become an investor today. yieldstreet: private market investing. >>> ukrainian of firms claim they're retaking more villages from retreating russian forces russian president putin signing laws annexing four ukrainian region

there, too >>> meantime, getting breaking news gm quarterly sales crossing the tape let's get to phil lebeaurter general motor sales increased 24%. that's just a smidge under the edmunds estimate of an increase of 24.6% keep in mind, the third quarter of last year, they shut down production in malaysia because of covid-19. they had a bunch of issues there. this is what we're seeing with all of the automakers. sort of lumpy results here these are coming in a tad light of expectations. but two pieces of news one, because of strong demand for the chevy bolt ev they'll be increasing production from 44,000 this year up to 70,000 evs. and because of the strong order book for the sierra ev, the pickup truck coming in the next year or year and a half, they are going to be pulling forward body work that's going to be done at the plant, factory zero, where they'll build the sierra they want to get as much as possible things moving as they ramp up ev production. back to you. >> phil, proo esht that. a lot of headlines today. >>> still to come, we'll talk about that defense deal between viasat and l3har

all new american greed focusing on trevor milton, an electric car company nikola you saw our own phil lebeauely episode closing arguments in u.s. versus milton are likely to begin today in a manhattan courthouse. don't miss the show. tonight at 10 p.m. eastern right here on cnbc stacie keech unmistakable voice is not could be confused with his brother james who vacationed -- >> i didn't know the vacation. >> poor little dog. >>> coming up, talk about unmistakable, we're going to get jim cramer's take on the trading day ahead and then our big interview with barry sternlicht, mike novogratz and robin hood's richard burry. follow squawk pod on your favorite squawk pod app and listen any time. we're coming right back. en centl to our client relationships and long-term perspective. it's part of our heritage. and it's the foundation for our future. pursue active investment strategies at federatedhermesinc.com 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 re

phil lebeau now joins us with a special guest. phil >> hi, andrew.w for earnings. q3, you blow away expectations all of the metrics within whether it's profit margin, whether it's revenue whampt did wall street not appreciate about the strength of the business >> first, the people of united airlines are doing a great job coming out of the pandemic it's on a surge in travel. the other thing is on the plus side for us, our results were obscure but we had this unique issue. 52 of our biggest wide body 777s on the ground. that had a huge impact on the operations and cost structure. now they're putting that in the rear-view mirror the core results are showing up. >> q4, what's your guidance? we know what your guidance is. in terms of bookings, is there any slow down. i think there is a headwind, there's three trends which we can talk about that are more than offsetting that economic recessional headwind they're doable i think travel demand for airlines is permanently higher it's at a higher level those trends are not just offsetting the other trends are t

. >> news alert on the rebound in air travel phil lebeau with more. one of the most aggressive airlines in terms of taking advantage of the increased demand for international travel they're doing that once again. they expanted how many flights are going to europe. they're going to be doing that again next summer announcing a pretty substantial expansion in international trans atlantic travel capacity will grow another 10% compared to 2022 nine new nonstops will be added. three new destinations those new destinations, one is dubai in the united arab emirate and then you have molliga spain. its capacity next summer will be up 30% compared to where it was pre-pandemic in 2019 and united is pointing out that for the second year in a row they plan to have the most seats of any u.s. air line across the atlantic over to europe. don't forget that we're going to be getting united's q3 results next speedweek it will be a chance to talk with scott kirby. he's long been one of the most aggressive in terms of developing a network and seeing what are new markets th

of 50 cents per share you don't want to miss the interview on "squawk on the street" later with phil lebeauate on the story we told you yesterday. tomorrow is the date to buy i-bonds. otherwise the rate will drop we warned you yesterday it was probably the day you had to do it sometimes it takes a day or two for it to come through if you haven't done it yet, it may be too late to make the purchase it has to be completed with the email. if you tried to do it yesterday, you may have run into problems the scramble to lock in the rates broke the web site treasurydirect.gov i tried to buy some last night you could not get through. it was because demand for i-bonds was unprecedented. they couldn't keep up. they are doing lots of things to fix this including adding to the server capacity it has no timetable to resolve it you broke the internet, guys well done. >>> coming up, shares of meta platforms are in we will dig into those. >>> later, we talk to thomas fanning over the likelihood of higher bills this winter "squawk box" returns after this. >> announcer: currency check is sponsored by interac

. >>> we have tesla shares that are sinking in the quarter we have phil lebeau with more.s about the actual process of manufacturing or delivering or what? what did elon musk say >> it is more the delivery and in transit process which is a miss for the third quarter here are the numbers for third quarter for tesla. the expectation of 364,000 the company delivered 343,000. 6% light of expectation. the bulls will say they produced 365,000. they really hit the target if you think about it they just didn't deliver them. why didn't they deliver? in the press release, tesla said it is becoming challenging to secure vehicle transportation capacity at a reasonable cost during the peak logistics weeks. the question is was it in transit in china was the problem or here in the u.s.? that is what analysts are waiting to hear. as the full year numbers are assessed today by analysts and if they bring them down, keep in mind tesla delivered 907,000 vehicles this year the estimate going into the latest report was for 1.36 million vehicles to be delivered this year. that means tesla has to

off this morning after the airline offers an upbeat forecast right now that stock is up by 2.9% phil lebeau ed bastian. good morning >> good morning, becky we'll talk about that forecast for the fourth quarter on a quarter where delta earns $1.51 a share. there was a 3 cent impact from hurricane ian. ed bastian joining us on "squawk box. let's talk about the third quarter, specifically the demand that you've seen it's not slowing down, is it >> it's not. thanks for coming down, phil before i start talking about that, i want to thank our people our people delivered an amazing q-3. the most difficult summer travel season on record and we, at the same time, delivered our all-time highest revenue performance for a quarter in our history. and even more importantly than that, we did it on only 83% of our scheduled capacity so the demand environment is really strong. the reliability is back. our team has done a lot of work to get the quality of service back over the last 45 days, and we're going to exude the three days that hurricane ian impacted us, we operated 120,000 flights on the mainland we