phil lebeau with the latest on the story. phil, thank you very much. will have much more reaction with two interviews today. he speaks with the american airlines ceo at 7:30 a.m. eastern and at 9:30 a.m., phil sits down with the ceo of southwest bob jordan two exclusive interviews here on cnbc. >>> coming up, tesla shares taking off after the quarterly profit beat. up almost 11%. we dig into the results and a very different story for ibm details on what is sending shares lower down 5%. we have much more when "worldwide exchange" returns stay with us when you're looking for answers, it's good to have help. because the right information, at the right time, may make all the difference. at humana, we know that's especially true when you're looking for a medicare supplement insurance plan. that's why we're offering "seven things every medicare supplement should have". it's your free, just for calling the number on your screen. and when you call, a knowledgeable, licensed agent-producer can answer any questions you have and help you choose the plan that's ri

that's our phil lebeau. mike, i turn back to you.nary asa sector is up a little less than 6%. tesla is a reason why. stock is up 16%. >> yes. >> amazon gets credit for that. >> tesla is up 40% since the early august low. it had this huge rip. obviously at some point it's sell the news. think of all the things phil said. it's going to be nip and tuck if they match the volumes. they come in and maybe short of the whisper and some of the street estimates. when people who care about the here and now fundamentals of the business sell to people who say robo taxi event is going to be an eye opener, restoring the magic of tesla as a forward-looking thing, you know, one of the price targets from the sell side, 280 bucks a share. 250 right now. how do you get there? it said 15 times 2026 calendar cash talk. okay, fine. 15 times, two years out, cash? that's -- the point is, there's a lot of stress on any fundamental valuations. so if it comes in on target. so, yes, it has been a big tailwind to the consumer discretionary. i am looking at things

for con particular, the street is at 1.75. >> phil lebeau, thank you very much for that.'s not giving a stock a boost, why? >> no. definitely not. down 4%. it is a smaller player compared to nvidia, but with an estimate 5 million chips it does seem to be an alternative to nvidia. that's probably the answer to your question, they're comparing the chip with the h200 with has been on the market for a few years and that could be part of the sell-off, but that does mean two amd chips on the market competing with nvidia. su, lisa su, will go from 400 billion in 2027 to 500 billion in 2028. the company also previewed their fifth generation cpu chip claiming they owned over a third of the cpu market which was once dominated solely by intel. gone are those days. much of this news, though, was largely expected. again, in answering your question, scott, was there no new customer announcement either and it could contribute to the shock of amd. the stock's run up double digits and neck and neck with nvidia since september 1st and much of that news has been priced in, and i would like

phil lebeau will tell us what's going on. leslie picker with her story.pushing 5800 on the s&p 500. we'll have a new record close for that and the dow today. >> yeah. the it seems like we're burning up some of that caution that really did set in place coming into october, this idea that so many people were braced for potentially more down side. i feel as if we're dealing with all of the known positives. an economy that seems like it's percier than we thought it was. fed might slow down the easing path, but so what. cpi tomorrow. yeah, there's some stakes involved there. since we've already gone into a place of listening to a potentially less dovish fed message, it doesn't seem like it's that dangerous. all that being said, we still have the vix at 21. people are still saying it's pre-election time. we can't just assume that it's going to be cutting loose to the up side in a real dramatic way from here, but we'll see. >> positioning will be interesting. >> yeah. >> you have good thoughts about the economy. fed's going to be cutting maybe a little bit less

phil lebeau. you're watching this one i know. >> sure.w, you imagine questions would come up in the context of are your attentions further split and might they get more diluted if you have some kind of a role in a new administration the other piece is i always view tesla as a little bit of a tell on the market's willingness to believe and willingness to gamble on the next huge thing. it's been a struggle around this price area for a while, the earnings estimates have been hacked away over the last year going to earn a little over 2 bucks a share this year, supposed to be twice that a year ago. obviously it's all about what's the next thing i do think it's been trading kind of soft, the implied move s you know, i don't now, maybe 4 5, 6% on the news. so we'll see, you know, if we sort of pre sold into the number or if there's a little more to absorb there. >> i feel like we'll get now as you inch closer to election day you're susceptible to more volatility as that day gets near. >> yeah, i think if only because anytime you present in front

it's just out with a new filing and phil lebeau is standing by in chicago with that news. . >> andrew, take a look at shares of boeing up 2% as the company announced it is opening a short-term credit agreement doing it with four banks. this is a credit agreement. they are not drawing on the agreement yet. they are setting it up. they have more options as they deal with the tightening liquidity situation. this credit line is for $10 billion. it gives them quick access to cash if they need it over the next several weeks or months, depending on how long the strike goes. four banks are behind the credit line. b of a, citibank, goldman and jpmorgan. boeing opening up a short-term credit agreement of $10 billion. guys, it's not a surprise. they need to have as much flexibility as possible as they deal with this machinist strike that shows no sign of ending any time soon. we are more than a month into this and, again, most people have said in terms of free cash flow, this is going to cost them more than $1.3 billion per month. so that's why they want to make sure thiey want to hav

we've got several transportation stories today, and phil lebeau is standing by. uthwest airlines whose shares are down 6% with that agreement with elliott to solve a proxy battle. phil, what gives >> i think that people are trying to figure it out. you would imagine that the stock based on the news would be up, because the activists with seats on the board could force it to transition quicker, but that is not the case. and elliott management group, and five of the people they put forth as possible candidates will be joining the southwest board, and that is going to happen next week, and one independent chair, the former cbs of chevron, and also, gary kelly, the former ceo and chief executive is out next friday. you can take a look at the shares of southwest, and we talked to bob jordan and he said, look, i am upbeat to work with the new directors and not just the ones put forward by elliott, but this board has changed dramatically in terms of a year ago, and in terms of the voices that you will hear from the board, they beat and what is good news is that elliott d

the stock off 2.1% we have phil lebeau with more on the story. hi, phil >> hi, becky this was an overwhelming rejection. when you look at the final vote here, 64%. 2/3 of the machinists voted said no this is not a good enough contract 36% said they would agree to the contract that is not good enough. the strike continues after 41 days late last night, this is what the president of the machinist union had to say about the vote. >> this wasn't enough for our members. there is a big gap that we couldn't reach, especially when it's been 16 years since we had a chance to bargain every area of our contract. trying to make all that up in one is very hard to do, but our members deserve more they've spoken loudly and we'll go back to the table to try to achieve those things. >> here's the refresher on the contract that was just rejected. 35% raise over four years. $7,000 signing bonus boeing also committed to putting a $5,000 one-time deposit in every machinists' 401(k) the annual bonus would be at least 4% that's not enough for the machinists and yesterda

let's bring in phil lebeau on what exactly to expect. . >> kelly, there are two things that people should be focused on tonight. first of all, let's talk about the robotaxi unveil and the discussion about the tesla robotaxi network, rideshare network, maybe they have a different name for it, but at the event tonight robotaxi will get the most of the attention. this tells us whether this is elon giving us something or elon putting on a show. specific operational details, something like cost per mile. this is our estimate and this is what will build the vehicle and what stands out about it and the timeline for a rollout and is it going to be specifically tied to the first half of 2026? early 2027 and there's got to be time line for people to say now we can game this out and the types of autonomous models and we are told that there will be a two-seat model and we heard that there may be more of a community ride model, if you will. those are -- that's the guts of what people really want to see in terms of robotaxi. keep in mind, the other par

let's get to phil lebeau to tell us a little bit more about this tentative with the iam. y, phil. >> it's a far-reacher contract, carl, that's for sure, that the machinists will be voting on on wednesday. here are the details of that contract. remember, they rejected an offer last month for a 25% raise over four years. that's not what they're being offered now. the tentative agreement calls for a 35% raise over the next 4 years. they've sweetened the ratification bonus by another 7 grand. they're also adding a one-time $5,000 deposit in every p employee's 401(k) plan. there's the annual bonus, which was not there. now it's in this offer, and not only is it in there, but it will be at least 4%. question is whether or not they can get this over the finish line. the machinist leadership, which recommended the previous contract, which was roundly rejected by the rank and file, it is not recommending this deal. it's not telling the workers they shouldn't vote for it. they're sort of taking a step back and saying, here are the details, you make the decision. these are the hurdle

phil lebeau has been tracking the action and joins us with the latest in the share sale there. pecting. remember, they basically got approval to go anywhere between 15 and 25 billion dollars. and most thought, oh, they'll probably do around 15 billion. the total, 18.9 billion. there's a stock sale that makes up 13.9 billion of that. then a convertible preferred share sale that's the other 5 billion. also, which we don't mention here, is there's about another 2.5 billion for over allotment, for the underwriter. you could look at something north of 21 billion. for boeing, this is all about getting as much liquidity and support for the balance sheet as it deals with a couple of issues here. the main one that they're focused on aside from the strike, which is clearly, they want to get it resolved as quickly as possible, they want to make sure their credit rating remains industrial grade. all of the credit rating agencies have said you're in jeopardy of going to junk status if situation deteriorates. total debt at the end of the third quarter, $57.7 billion. meanwhile, in terms of th

phil lebeau with the very latest on the boeing strike. &p estimate, $1 billion per month. i think it was, yes, in terms of the cost of the strike. ubs also had its own estimate, about a month ago, saying that a one to two-month strike would be a $4 billion hit to free cash flow, so, they're really feeling the squeeze at this point. >> november 25th, 1980, in louisiana, tim, i remember t this -- >> no mas. >> you have to say, at a certain point, i've been trying to make the bullish case for boeing for a long time -- >> thrown in the towel. given up. >> a little bit. >> abandon ship. >> bob bu by duran, against sug ray. but bobby duran did come back. he picked himself up off the mat. and that's the question here. even if they do a $10 billion equity raise, the question is, where does that leave you? it buys them time. they're going to get through this. equality as beaten up, in, probably more so than you on this one, but -- at this point, this isn't the time to sell it. the downgrade in liquidity crisis is something that we have not seen and

phil lebeau has the story on ford. phil? >> yeah. rough day for ford, dom.hen you take a look at shares down more than 8%, it's about the guidance. it changed in just three months. back in july, they said look, we expect to earn 10 to $12 billion this year. yesterday they said, well, it's going to be about 10 billion, which had been more than a few analysts saying, wait a second, what happened to 10 to 12, now it's 10? that's the primary reason why the stock is under pressure. there's also the issue of warranty cost. they believe they're making progress here. they didn't detail it and talk about it at great length yesterday, though it's still too high. they said it's too high. finally, there's higher inventory. though that is an issue that ford believes should move down. should be a little more normalized by the time you get into early to 25. take a look at ev market share. i get a lot of people saying ford trading lower because their not doing as well in ev snz they cut their losses there. the loss per vehicle is lower now than it was in the second quarter.

our phil lebeau. let's head now to home depot's disaster response center, also in atlanta. kelly mayhall is the president who is spearheading relief efforts. kelly, ian hit this area just a couple of years ago. i don't know how much experience that is able to perform about what you're doing to prepare now. >> yeah, thanks for having me, kelly. our number one focus any time we go through an event is making sure we're there for our community before and after a storm. so storm after storm, we continue to get better and better at what we're doing. ian was a highly impacted storm. we're just now coming back through helene. so while the stores are trying to support the customers in the current need, we're still supporting the communities from the helene catastrophes that happened just last week. >> how do you make the decision about what point to shut the stores down and send people home? home depot is one of the few places people can go to do make their storms more of a fortress against the storm, so helping people until the very last minute, what does that decision look like? >

phil lebeau joins us to break down all the action. phil? >> hey, melissa.t today for general motors, really three topics got the most attention, and these are also the areas that the analysts were focused on during the q&a portion of the day. one, has gm already seen peak earnings? gm says no. it expects roughly the same earnings next year as this year, and they believe they can grow beyond that. what's the ev path to full profitability? they believe they will hit variable profitability by the end of this year, and then full profitability not too far into the future, and finally, what's happening with restructuring operations in china? where they lost $210 million in the first half of this year. now, there's a board meeting in about a month with their joint venture partner. that's where we'll learn about potentially cutting capacity. but mary barra says some of the steps have already been taken to improve operations in china. >> we're already starting to see an uptick from a sales perspective. so, we're looking across the business, how do we right-size it,

now down about 1.9 boeing a drag on the dow today after its results came out let's bring in phil lebeauu spoke with the ceo of boeing in his first televised interview since he took the job. what did he tell you >> it's going to be a long turnaround that's basically what he had to say when we had a chance to talk to kelly ortberg the stock is under pressure today. remember these results for the third quarter were preannounced more than a week ago, more than $6 billion loss. so there's no numbers within the numbers that were released that put the stock under further pressure though there was some commentary during the conference call, we'll talk about that in just a little bit. in terms of kelly ortberg and what he told us and his game plan for getting boeing back on track, it's pretty straightforward, though not big on details at this point stabilize operations, improve the corporate culture, and rebuild key programs here's kelly talking with us this morning on "squawk on the street." >> i've said there's no silver bullet, this isn't going to be fixed in one fell swoop. we've got a lot o

its machinist union votes on a landmark labor package that could end a month-plus long strike our phil lebeau to the union's lead negotiator earlier today. what are the odds, phil? >> i think it's going to be a close vote i think most people, if you talk with them, who have looked c closely at the machinists, they believe the same thing here's what's on the table, 35% raise over four years. 7,000 signing bonus, 5,000 deposit in the 401(k). pension not reinstated here is the president of the machinists union, when we asked him about how the vote will go >> i think it's going to be a tight vote there's a lot of emotion tied here, there's a lot of history tied here, and, you know, we've been able to negotiate the best that we could, and we're hoping that our members will consider it, and that's where we're at. >> while the members of the machinists are voting on their own personal financial well being, there's what lot at stake for the financial bottom line of boeing current liquidity is believed to be $10 billion there's a possible capital raise of $10 billion to $15 billion. they're all set --

phil lebeau is in tennessee, and he has a little more detail, and a special guest, i believe, phil. >we talked to mary barra earlier today. you'll hear from her in a little bit. she's beginning her presentation with analysts and investors where she's going into greater detail regarding where the company stands on a number of key issues, and one of them that a lot of analysts want to hear about, what does general motors plan to do with the challenges it faces in china. we have talked about this for some time. this was once a steady profit driver for general motors, that's not the case anymore. the first half of the year. gm lost $210 million. august sales down 34%, compared to august of last year, and at the end of 2023, this is really kind of outdated market share. they were at 8.6%. it's lower than that today as sales continue to fall. they are going to be going through a restructuring. not a lot of detail from mary barra earlier today about what that restructuring will include. here's what she had to say. >> there's already tremendous work going on from restructuring perspective. wh

phil lebeau has those details. phil. >> hey, contessa. we had this news about a half hour ago. a huge surprise that the new ceo of boeing, hasn't been in the job that long, has made some tough decisions in terms of not only where the company is right now but where it is going. so let's run through all of the announcement in terms of the preannouncement for q3, a lot of $9.97 on a gap basis. we don't have a comparable estimate there but i should tell you that going into today, the core earnings loss estimate was $1.60, so about six times worse than what the street was expecting. boeing's revenue for third quarter shy of expectations, coming in at $17.8 billion. that's what they're expecting. the street was expecting $18.5 billion in terms of q3 revenue. operating cash flow, negative $1.3 billion. then announcement in terms of cuts boeing is putting in place in order to bring its balance sheet under control as quickly as possible. starting first off, 10% of the workforce from the most senior executives all the way down worldwide. those are going to be jobs eliminated. about 17,00

phil lebeau on southwest and elliott striking an agreement.ly as we approach the finish here s&p is good for about 16 points. >> as tesla has extended its gains, nvidia is riding along. you had a little bit of an improvement in underlying breadth. big picture, earnings have mostly done what you want to see. some big potholes. ibm is trading pretty sharply to the downside you also had treasury yields that halted their rise almost exactly where they had to to look like an uptrend it's status quo. we can hover near the highs. big picture, we keep saying credit spreads are narrow as can be all the inputs here, we hit 10 of 11 months higher. that's not the setup for the start of a bear market beyond that, it's all a matter of what you want to paz for the fex phase of earning growth. >> frank, ups, talk to me. >> ups shares up 5% as investors reward groelth and volume for the first time in seven quarters and they're considering if this company has right sized its business for the holiday peak and beyond results were solid overall top and bottom line

and phil lebeau looking forward to united airlines. michael, what's on your mind? well, scott, a proper shakeout at least at the index level and especially from the interday highs. it seems a few things moving together. one is this kind of re-inflation trade, the china revitalization trade did have a little switch-back and seemed to upset short-term crowded positioning. we do also as we're going to discuss, you know, semis looked like they were on the come back, and they were heavyweight on the in index. you have the overlay-up, and i mentioned this yesterday, what's a sloppy initial earnings reaction even though numbers have been good, outside the banks it seems like there's a little more room for disappointment or a reflex sell the news than not. all that coming together, i think after five straight weeks higher, and the market looking just a little bit short-term stressed, it has us in recent -- by the way, more stocks up than down. this is not a washout. it's much more a little churn. >> how do you think we'll assess the banks now that they've all reported? you

that's phil lebeau we've got about two minutes to go since we're talking autos, tesla is the big winnerously up 22% on this week. >> and it's holding it it's at a really interesting spot here in the 260 area for the stock even though it's well below its all-time highs, it's close to a one-year high it runs counter trend very ofte to the other ones. you know, the mag 6 as opposed to 7 but that one has had a big relief trade everything else i think is hanging in there in terms of nobody wants to get too negative on the big names they reset lower relative to the rest of the market the cyclicals, which have been core leadership coming into this week, we have the regional banks down 3% on the week, industrials down 2.5%, and of course home builders off by 7% all of them off a very healthy levels but it shows you just a little bit of a rethink based on where yields are going and just taking chips off the table in the economically sensitive stuff >> materials pretty ugly this week in fact, it's the weakest of the s&p sectors, down 4% >> yeah. so, again, it's one of those things, whatever did w

the stock is back in negative territory for the year our phil lebeau is with us to break down all the and phil, it's interesting, because all those estimates crept up, up, up into the numbers and then here we are >> yes clearly sell the news kind of day. and we've seen this in the past, when tesla has reported quarterly deliveries or either financial results, stock keeps moving up, the news comes out and it's not terrible. but it still sells this here are the numbers for the third quarter for tesla. they essentially hit expectations at 462,890. you can quibble if they were a few hundred shy of expectations, they were in line. 6.4% gain compared to the third quarter of last year by the way, first year over year increase in sales since the fourth quarter last year 95% model 3 and y. i've seen analysts bring up the fact we haven't seen cyber truck deliveries broken out yet. but the bottom line is this, if they're going to hit the estimate for full-year deliveries of 1.78 million, they're going to have to grow sales in the fourth quarter by 4%, 5%, they'regoing to have t come up with 485,

we start today with phil lebeau. >> let's start with general motors, a stock that took off today aftering the street by a wide margin how wide it's earnings for the third quarter tame kha nim 53 cents better than analyst expe expectations you have solid sales, strong pricing and north america, look at that, a 13% improvement compared to the third quarter of last year. yes, they lost money in china, that was expected. that's an ongoing situation. as you take a look at shares of gm they've already said they are going to have meetings with their partner in china they will eventually restructure those operations in some capacity but also lifted their guidance for 2024 full year earnings per share at least on the bottom end ge, take a look at ge, it beat the street by a penny. you wouldn't know it from looking at the stock today because it sold off despite posting really solid results across the board with all of its key metrics including q3 operating margin of 20.3%. it also raised its 2024 earnings per share guidance as well as its operating profit guide scott, when you've got a pe ratio

phil lebeau. interesting, they just gave guidance in july, so, this is a deterioration in a span of a few months here. guy? >> what's happening, i think, gm and ford are finally decoupling after a long time. outside of adam jonas and gm who has a $42 price target, you saw a lot of analysts raise their price target. so, what i make of it is, gm's actually operating better and ford not so much. you know, ford's been stuck in the mud now and gm is breaking out, so, that's how i read this entire thing. >> i tell you what, i think that decoupling has been all year. 51% performance year to date. and some of this is -- ford continues to tell us they need to restructure their business, there's a lot of things that have been wrong about how they have been set up. and we're still waiting for more of that. but back in july, $10 to $12 billion was the guide. so, from that, you were expecting $2.5 billion in the fourth quarter, now $1.9 billion. these are big, big changes from a time, if the problem is the com

phil lebeau joins us with the details of the proposed contract it's more than boeing wanted to spend.ds that the rank and file support it? >> great question, tyler look, 96% voted against it last time let's do the math. only 4% voted for the previous offer. they have to get to 50% plus one to approve this offer in order for the strike to be over. so what are the odds of that happening. keep in mind this is a richer offer they're voting on than the one last month 35% raise over four years. that's the big headline figure that's getting the most attention. there's a $7,000 signing bonus, richer than originally proposed and a $5,000 one-time deposit in the workers' 401(k)s what is not in this offer is a reinstatement of the pension program. now there is an increase in the multiplier for some of the older members who had a boeing pension but there's no new pension being offered to all of the machinists this is day 38 of the strike and the costs they're piling up by one estimate, this is costing boeing $1 billion per month. we're not going to get into the free cash flow implications. liquid

another report and another report by phil lebeau. general motors out with its numbers. back to d.c.gher after the company beat on a top and bottom line by a wide margin 2.96 a share q3 ren q3 revenue above expectations. you look at the numbers within the numbers. strong across the board. q3 margin of 8.4%. up from 8.1% last year auto free cash flow. 5.83 billion a billg increase from last year. q3 anorth america up from 3.52 billion last year. if there are two areas that will raise concern and get questions on the conference call, this is it in china, they lost $137 million after the profit of $192 million last year. gm is a place where they are losing money $383 million loss in the third quarter. that is an improvement compared to the last year gm is raising guidance for 2024, full year, to earn between $10 and $10.50 a share it was previously 9.50 to 10.50. previously, it was $13 billion to $15 billion free cash flow is going up expecting 12.5 to $13.35 billion. they clearly are maximizing their operations especially when it comes to vehicles and was they continue to grow with evs

let's get to phil lebeau. >> we do have it, carl.ometimes the numbers are pretty darn close to the estimates. tesla delivering over 42,000. we're not going to see a whole lot of reaction to tesla's shares today. this is the first time since the fourth quarter that tesla posted a gain, a positive year-over-year gain or an increase, i should say, in sales. last year they were roughly in line with where they were in terms of total deliveries. this is the number people were expected. 462,890, producing 870,000 vehicles. and we'll have the date when tesla will report its q3 numbers, which is on the 23rd after the bell. just a smidge, just a smidge more than the street was expecting. guys, i'll send it back to you. >> hey, phil, i'm going to bring you into the conversation we were just having. jim was bringing up the idea, at what point does the increasing number of evs start to affect the praise of gasoline? i don't know, we're still at very low percentages, aren't we? >> we're not there, david. >> yeah. >> worldwide, i mean, you definite

guys, we will send it back to you. >> phil, appreciate that phil lebeau with kelly ortberg jim, thoughts? >> yeah, i think that kelly has to watch what he says. they want to do the equity raise, as david says i do like the fact that to me twice they were asked questions about space. sounds like extraneous it's costing them a fortune. they moved headquarters from seattle to chicago, washington every one of those was wrong he has to go back to seattle this is ridiculous he moved to seattle. the problem is with the machinists the problem is with the culture. what is he doing in washington i think he has to -- he has to undo everything that was done in the last decade. everything. >> even his emphasis on next generation aircraft? >> he has half a trillion orders we'll be talking about data centers today. you'll see all the data center stocks down. one thing that's happened is we have tremendous demand insane demand. it's profit-taking right now, whether it be data center, nvidia, boeing, mcdonald's, insane demand. >> i still feel like there's lots of questions from boeing. >> i agree with yo

phil lebeau joins us with the latest. busy morning, phil. >> busy morning.m boeing, carl, we'll talk about. first of all the company announcing it has essentially opened a $10 billion credit line set up with four banks. they haven't tapped that credit line yet. the other moving boeing has announced is a $25 billion shelf registration. extends over three years. they've got three years to use this as the vehicle ultimately saying, look, we may raise equity, we may raise debt. they've got the moves in place now so that when they decide to tap either of these, they'll be able to move as quickly as they deem necessary. so, what they want to do here is to have the means in place in order to come up with the money to help out their liquidity. when you look at their liquidity, the end of the second quarter with $12.6 billion in liquidity. most believe they're now down closer to $10, $9.5 billion. they don't want to go much below $10 billion. they've said that's the bottom as far as the threshold, once they cross that, they'll have to look at raising capital in some

thank you for that phil lebeau. >>> the dow is coming off its biggest drop in two weeks.it kicks into high gear, our income guest says that while early reports for broader markets are promising the rotation trade joining us is lori cabesina. welcome, lori. what is this rotation trade? >> looking at the mag 7 and the maga cap growth and we run screens with the s&p moving from the bigger, safer, growthier stuff into the s&p and the russell 2000, kind of anything else, frankly. >> what is the latest evidence that you have that bodes well for that >> so, one stat that we watch really closely is the rate of upward revisions between the top names and the rest of the s&p. we've basically been seeing for the past year more upward revisions and we're seeing the gap is closing so the rest of the market is start tock gain on the top ten cohort if i get more discreet and more finite, when we look at growth rate expectations for 2024 and 2025 i am starting to see sectors like move upon we are seeing it move out pretty sharply. if i look ahead to 2025 it's areas like industrials other

phil lebeau has all the numbers. and margins were a stunner, phil >> they were, and that's the main driver here there is a lot to like in this q-2 report, both in terms of the numbers into q-3 and the outlook there. let's go first off with the earnings per share you mentioned 72 crents a share that's 14 cents better than what the street was expecting that's one of the drivers for the stock moving higher. revenue a smidge light, but this is not a miss by a wide margin $25.18 billion street was expecting $25.37 billion. and the automotive gross margins, if you include zero emission credits or exclude them, they are better than expected they were expected around 15%, they are coming in closer to 19%, 19.5%, depending on what exactly you put into the you a motive growth margin calculation. energy storage deployments more than doubling this year versus last year. and they also have given some guidance on the more affordable models that they have been teasing us over the last couple of quarters about, they will be going int

, as it has been so often recently exploring now a sale of its space business ceo kelly -- told phil lebeaubetter than doing more and not well let's listen >> we're going through a portfolio process right now to look at the overall portfolio and see what do we want to look like five years from now that may include streamlining certain things i haven't come to that conclusion yet i think our core business of commercial aircraft and core defense products will always stay with the boeing company but there's probably things that we can streamline and be more efficient. i would rather err on the side of doing less and doing it better than doing more and not doing it well. and i think there are cases we could do less and do better. >> boeing has their work -- either way they go here, they've got their work cut out for them. the next ten days are going to be very interesting. there is an election coming. >> oh, yes >> and there are five of the seven magnificent seven reporting earnings next week i'm expecting a very busy, volatile week in the markets >> absolutely. we have five of the magnificent

phil lebeau here so break down some of these rather ugly details, phil. >> yeah, the upside -- let'sn l loans, because people think, a few people do this -- no, it's a substantial part of the market. essentially 9% or 10% of all vehicles sold, when these people are going in, about 40% are trade-ins, of that 24% are upside down loans. and as you said, these people are owing, right now, a record high, this is according to edmunds. almost $6,500. and they're trading in vehicles, 3.6 years old. the average auto loan right now, as you take a look at the auto dealer stocks, it's almost $41,000. close to a record high there, and by the way, you will look at this, say, aren't the dealers impacted by this? remember, one way or another, they're going to get a vehicle, if it's new or used, and they're going to sell it. if it's used, upside down, whatever the case may be, they're going to make a profit on it. the delinquency rate in september, 1.97%. by the way, while that has increased, it's still within the historical averages. now, to the used ev price story. and the story here is that not su

but a lot of these rates did not really feel that downtick that we saw when the fed cut rates, as phil lebeau has pointed out, auto loan rates are notoriously sticky usually don't feel those moves lower for a very long time credit card rate, are they below 20%? no >> never are >> unless you are out in the market getting a mortgage exactly when rates are down, you're not feeling any relief here >> not at all. and credit card rates are at a record level the average rate in the united states is now 23.4%, and the thing you have to watch, i think, delinquency rates north of 7% are the highest they've been since 2011, so -- that's all out there, but with an s&p at an all-time high, the market doesn't seemingly care but tim is correct to point out the vix. the vix is stubbornly high one would think -- we've seen a vix, 13 1/2, 14, in benign circumstances, one would think we'd be there. we're not. maybe that speaks to just the election and some of those factors, but maybe it speaks to something else on the horizon. >> we're saying the vix is high and it's close to 20 i mean -- if you really think ab

phil lebeau on gm, seema mody on 3m and pulte and the trade from chad the first stock up, phil, is gmthe company easily beat wall street expectations for the third quarter. shares surging today let's get to phil for more >> they're surging because this was not just a beat on the top and bottom line, this was a beat by a wide margin they came in with earnings that were 53 cents better than the analysts consensus so the top line, bottom line estimates were blown away. solid sales and strong pricing especially in north america. their profit in north america up 13% compared to the third quarter of last year and it's one reason why they lifted their eps guidance on the lower end. brought up the lower end of what the minimum will be. also raising their 2024 profit guidance as well look at the stock there. up almost 10% on the day if there is one area that people might sit there and say, i'm not real crazy about this. what's going to happen it's china which used to be a big profit driver for the company not the case anymore look, they lost $137 million in china in the third quarter they are

phil lebeau has more.at she's watching in the crucial final minutes of the trading day. angelica, fill us in on the novavax movement. >> novavax shares down nearly 20% today. that's after the fda putting the flu shot trials on hold after the report of a series adverse -- serious adverse event. one person who received the experimental shot developed motor neuropathy. this report coming a year after the person got the covid-flu combination shot. novavax saying the clinical hold could delay its phase-three flu trials. the company is working on the covid-flu vaccine and the stand-alone flu shot. so of course this is not great news for them. we'll have to see if they can get that resolved and how quickly. >> for sure. angelica, thank you so much. diana, housing stocks, mortgage appli applications, a noisy story. >> reporter: obviously the stocks are going up bun on fundamentals. -- but not on the fundamentals. mortgage rates rose that tanked application dropping 17% from the week before. the average rate on 30-

guys, back to you. >> phil lebeau, thank you.ginally. >> that's going to be dilutive. say boeing turns things around, we issued these shares -- >> time to buy back stock. >> yes. now is that okay for the company or should they be criticized for a buyback three years from now if they decide that's how they want to manage the balance sheet. that's the problem with all buy backs are bad. you know what i mean? is this something we should celebrate. something aoc would say a share sale. >> you don't want to celebrate this, this is an emergency scenario -- >> if all buy backs are bad -- >> i would celebrate they 'able to raise this. we need this company to survive. it's the same question with the airlines. additional shares that they issue to the government and beyond. >> right. and they're constantly, you know, partying when times are good and then what happened when times are bad, help us out. >> i also hope they wouldn't have to be buying back the shares because they're investing in the business all the time. >> extend to 30 million

phil lebeau joins us with more on all of it. phil?d it up best. this is generally what you heard from most of the analysts after the event. he said, that's it? a disappointing lack of details. what we did get last night was plenty of showbiz, if you will. and fitting since it was on a hollywood lot. there is elon getting out, coming out, greeting the crowd, getting inside of the robotaxi, which some have called the cybercab. by the way, the ride shares, autonomous ride shares, not with this vehicle but models 3s and ys, that begins next year. here is elon musk talking about his vision for the future. >> you can pick up the car in the autonomous world as being just like a little lounge. you're sitting in a comfortable little lounge, and you can do whatever you want, while you're in this comfortable little lounge and when you get out, you'll be at your destination. yeah, it is going to be awesome. >> the robotaxi, we didn't get a ton of details. more visual than anything else. two passengers inside, no steering wheel, no pedals, big scr

phil lebeau, thank you. we know you got to run.g. >>> still to come, an update on preparations for hurricane milton. we're going to speak with fema administrator. but, nt, texhe chairman of the house budget committee will join us on a new projection for the federal deficit. stay tuned. you're watching "squawk box" on cnbc. ♪ - [female narrator] they line up by the thousands. each one suffering with a story that breaks your heart. like ravette, who needed help, because every step brought her pain. their only hope is a ship unlike any other. mercy ships. the largest floating civilian hospital in the world to bring free surgeries and care for people who have no other hope. only 62 cents a day, $19 a month, will help provide urgently needed surgery for the world's forgotten poor. if you have ever wondered: "how can i, just one person, make a difference?" this is your answer. so many are still suffering. so don't wait. call the number on your screen. or donate now at mercyships.org. that's the number on your screen. ♪ (man) look at this

our own phil lebeau has more on the story that has been taking place over the weekend. phil. >> andrew, this deal was worked on the last week with the acting labor secretary. work with boeing and the machinist union. here is the offer on the table that the rank-and-file will be voting on wednesday. it is a substantial increase k compared to the one rejected a month ago. 35% raise over four years. the previous was 25%. $7,000 ratification bonus. adding a one-time $5,000 depoise it in every worker 401(k). the annual bonus. the annual bonus was on the table. the bonus will be at least 4%. one important note for the rank-and-file pushing for the pension, it is not part of the deal. boeing and the union, as part of the offer, would not restore the pension. remember, 96% of the machinists rejected the last contract when they voted in september. as for the machinist union leadership which recommended the last deal, they're abstaining from recommending or telling people it's not that great of a deal. don't vote for it. putting it on the table for the rank-and-file. this strike

. >> we mentioned love of course we mentioned ba, american, phil lebeau has had a busy morning. ght now with the ceo of southwest. good morning, again, phil. >> good morning, carl. bob jordan, ceo of southwest we'll talk about the quarter in a bit but the news of the morning is elliott management, five of the people they wanted you to add to the board you're bringing them on the board why did you make this deal 1234. >> well, i think number one, the -- just getting this behind us and settling is a good deal we have a terrific plan in front of us, we unveiled a transformational plan a couple of weeks ago in investor day and all eyes forward focused on executing that for shareholders. i had a hadchance to talk to th elliott board nominees they're great, they each bring unique skills will bring something to the board. we have pierre from chevron, former cfo, he'll make a great addition to the board. we have seven board members exiting on the 1st i want to say thanks to them as well. >> you talked with david kush and the others put forth by elliott. they were honest saying you should

let's get to phil lebeau for the latest. >> david, there are three things that you can look at from theerday from ford and say, well, this is why the stock is trading lower. you mentioned lower guidance, that's really one of the primary issues. they originally said they expected to make between $10 and $12 billion this year. yesterday they said they're expecting about $10 billion and that had more than a few analysts saying, where is the other billion and a half? warranty costs continues to be a problem for this company. and then they have a high inventory of vehicles out the lot right now. 91-day supply, higher than they would like. there are a couple of things in the report that if you were optimistic about ford you can say, well, look, they've made some headway in a couple of areas. one of them is with electric vehicles. they break out the results by division, commercial vehicles, internal combustion and electric vehicles. the ev division still lost money, $1.22 billion. what's the good news? that was an improvement compared to the second quarter. loss per ev sold in the quarter, $38

boeing, according to phil lebeau, losing about a billion dollars a month or so.sting them as much as that. you know, we talked at the outset about the free cash flow losses mounting or how they would mount. now we're going to start to count given one month since they walked off the job. there's a capital raise that has been discussed of some $10 billion. when will that take place? perhaps after earnings are reported from the company towards the end of this month. there had been an expectation, perhaps, that you would wait until you signed a new deal with the unions, but it may be that, in fact, the capital raise takes place without a deal. and they don't, jim, seem to be very far. i mean, they're still talking about trying to get the pension back, the machinists, which is just never going to happen. >> these are about as far away as i've ever heard. listen, ortberg does not seem to be a fire brand, the ceo, not as contentious as the longshoremen were, but this is a cash flow story, and it is a -- a company that can -- that's too big to have a problem. >> it's ano

phil lebeau, obviously, also been reporting a lot on the strike, which continues.gotiations planned that i'm aware of at this point. but there's a lot of noise in the capital markets right now. it's unclear whether it just comes from a lot of hedge funds or we're doing reverse inquiries to investment banks, saying, we'd buy it if you're going to actually sell it, and those same hedge funds, by the way, are getting short many of the shares so they can cover with any offering that comes their way, conceivably. but there's going to be a big book, potentially, there, no matter, through reverse inquiry. so-called shadow book. we don't know anything at this point in terms of when, right? we're still waiting for the registration, which was just made, and we talked about it to become effective. but it is possible that boeing could hit the market sooner rather than later, and it is possible that it could be a bigger offering than just the $10 billion that has certainly been talked about. that said, maybe, jim, they want to wait, if they can, settle the strike, wait until th

let's get over to phil lebeau with boeing's numbers and we're seeing some additional weakness in thethese are roughly in line with the company's preannouncement last week. so, there is no surprises here in terms of the numbers coming out from boeing for the third quarter. a loss of $10.44 a share q3 revenue $17.8 billion operating margin negative 32.3%. operating cash flow negative $1.34 billion. free cash flow, negative $1.95 billion. and you break down the three disks at boeing, commercial airplanes, that's where the big loss is, $4 billion loss for the third quarter. just over $4 billion defense loss $2.38 billion global services, that's the one part of boeing that's working right now. a profit of $834 million they ended the third quarter with liquidity of $10.5 billion. that's critical as they set the stage for a possible capital raise in the weeks to come there is no guidance at this point. they haven't given guidance for some time, which is understandable but when you take a look at what new ceo kelly ortberg going to be saying and we're talking with him in a little bit, turn a

phil lebeau, thank you, sir.verage all day. >> you bet. >> appreciate pit. >>> still to come this morning, tracking the hurricane helene recovery efftsor. we'll talk to a local reporter covering the storm's devastating impact on north carolina who is face fact checking the misinformation related to the hurricane. "squawk box" will be right back. ♪♪ [children playing] easy guys. easy. [children playing] hey guys, come on! time to eat. time to eat. ♪♪ i don't want this. i want corndogs! corndogs! ♪♪ corndogs! corndogs! corndogs! ♪♪ i need another corndog! new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job on indeed, it's easier for talented candidates to find it. which makes it easier for you to hire them. visit indeed.com/hire >>> it is 8:00 a.m. on the east coast and you are watching "squawk box" right here on cnbc. i'm becky quick along with joe kernan and andrew ross sorkin. among today's top stories, soda and snack pmaker pepsico trimmig its full-yea

phil lebeau joins us now with more. >> scott kirby, ceo of united airlines.winging to a positive revenue per available seat mile, do you believe we are now past that point in the industry where from here it should be fairly steady growth? >> well, the third quarter is another in a long string of good quarters at united. the more important thing is we hit -- we have been talking about this inflection point and industry supply that was going to happen and it happened in mid-august. it looks even better going forward. revenue environment is strong. corporate revenue is up 13% in the quarter. got even stronger in october. so the outlook both from demand and supply perspective looks really good going forward. >> what do you expect from the third quarter and specifically some people talked about some noise, potentially slower bookings around the election. when you look at whether it is the election early november or further out with the holidays, what are you expecting? >> the holidays look good. there are always things like elections and calendar shifts that happe