u.p.s. and her first on air comments since averting what could have been a catastrophic strike. >>> and oversubscribed and under managed. new details of the a.r.m. ipo ahead. it is tuesday, september 12th, 2023. you are watching "worldwide exchange" here on cnbc. >>> good morning. i'm frank holland. let's get you ready to start the day as we kickoff with the check of u.s. stock futures after a higher day for stocks yesterday. the dow posted the third straight winning session in a row. the nasdaq higher by 1% and second day in a row closing higher along with the s&p. futures are in the red across the board. the dow would open up 75 points lower right now. yesterday's gains in tech coming on the back of tesla shares. closing out more than 10% higher things to an upgraded morgan stanley. shares are down .50%. shares are up 6% in the last week. we are checking the bond market with the 10-year treasury at 4.27. important to note the 2-year treasury is below 5%. the inversion on the 2/10 is narrow

business winds of the u.p.s.kruptcy. 400,000 packages a day from u.p.s. 5,000 loads from yellow. it is not that big of a deal, but is this sustainable? do they hold on long term? >> it is a big deal, but at the end of the day, this is a cyclical company. ground volumes were up 20 basis points. the volume coming over did not drive the out performance. it was cost control on the ground business. cost per piece was down 2%. the first time it was down in four or five years. i don't necessarily think it hurt them. what is more important about the fedex story is this is a business where they take structure costs out at a weak point in the freight cycle. that fright cycle starts to improve and the bar for operating leverage is lower which implies the other side. >> far out performing u.p.s. year to date. what is outlook for the year with fedex stock and competition with u.p.s.? do you think we will see a raise in guidance? >> management has had some false starts in the past around setting targets and resetting them. i t

. >>> we have a news alert, back to news, on u.p.s. the company announcing financial details of its contract with the teamsters union. frank holland's got the details. hey, frank. >> hey, melissa. details just crossed. important to note, shares have fallen since july 25th when the teamsters announced the deal with u.p.s. that would be ratified to avoid the costliest strike in the u.s. in the last 100 years. today, as you mentioned, u.p.s. released their take on the financial details. we sat down exclusively with ceo carol tome. >> it's not a $30 billion deal. it's a great deal for our people. it's a great deal for all the stake holders. when i look at the economics of the teamsters deal, compounded annual growth rate of that deal is 3.3%. to put that in perspective, the yield on the five-year treasury today is 4.4%. and even if you look at the historical average of the five-year treasury, it's 3.7%. so, we came in a number that was under a five-year treasury yield. that's pretty good. >> all right, we did ask, again, but carol would no

., and i'm long u.p.s. a little bit of that, either switching or people who want to hedge their bets if u.p.s. goes on strike, they have to ship packages. they lost a bit of business there. i don't like them saying ongoing weakness, though it was air freight, but they are sort of right in the center of e-commerce and i'd rather see -- i'd rather see a little better revenue, also. >> all right, and u.p.s. getting a bump there on the back of fedex. >>> moving to kb home. shares are lower despite the company posting a beat on the top and bottom lines. let's get to steve kovach for more details. steve? >> hey there, dom. the beats on the top and bottom lines for kb home third quarter. eps was a beat at $1.80 versus $1.43 expected. revenues beat, as well. $1.59 billion versus the $1.48 billion expected. but shares are down due to a sales decline on the top line compared to last year. company citing tough comparisons to the strong quarter a year ago, but the ceo saying in a release 2023 will be more profitable. r

r ryan, what's the trade on u.p.s.? >> hi. good afternoon. i like u.p.s.rket doesn't like it today. it's had a tough year. valuation perspective, it's trading at a below-market mul multiple, it yields a nice dividend around 4%, and from a catalyst perspective, who's buying less online? more and more consumers are buying things online. it's huge barrier to entry business. u.p.s. is the main player in that. and i think the stock has a lot going for it, and i think it should be something that people consider, you know, heading into next year. >> sticking your neck out. all right. let's see what you'll do with casey's, up today. sales declined, but rbc is raising their price target. we don't talk a lot about casey's. consumers are in a questionable position. what would you do with this one? >> yeah. this is a smaller company, obviously. it's got 2,500 convenience stores, mostly in the midwest, so not a lot of people have heard of this one. it's growing, though. it's adding about 150 stores, so that's a strong catalyst, and i think the consumers, when they're o

it's one big strike u.p.s. was averted.d overwhelmingly to authorize a strike if they don't come to a deal with the airline. where are we right now in your opinion, with labor in america? >> i think what's going on now, ali, is that workers are catching on to the fact that in an america we see an unprecedented lever of corporate greed in company after company we're seeing record breaking profits. we're seeing more income and wealth inequality then weaver seen in the history of this country. yet today the average american worker in real inflation accounted for dollars is earning less than he or she did 50 years ago. so workers are saying you know what, hey, maybe in this economy we deserve a fair shake, and we're going to stand up and fight for it. and i think what the teamsters did in a contract negotiations with u.p.s., great step forward. they stood up, they were prepared to strike, they told u.p.s., which is making billions of profits, you know what, treat us like good, decent human beings, and that's what ended up happe

it continues to outperform rival u.p.s. year to date.announced rate increases starting next year this quarter revenues are forecast to fall by 6% while e southeast is expected to grow. margin yield is 6% compared to 5.3% from last year. the major metric to watch is express revenue and margins, which is forecast to be 2.5% express is about 50% of revenue as well. >>> we're also looking out for any commentary from customer wins on u.p.s. and teamster negotiations and also yellow >>> time now for a check on more of this morning's headlines outside the world of the markets and your money nbc's jessica layton is in new york with the very latest. good morning. >> hey, frank, good morning to you. in a new filing lawyers for hunter biden say he will plead not guilty to felony gun charges. he was indicted last week by a grand jury on three counts of using a gun while in possession of narcotics biden's attorney wrote his client is not looking for any special treatment here he just wants to minimize the burden on government resources that an in-per

we have been outperforming on fedex and u.p.s. we think margins at u.p.s. will be under pressure for the second half of the year. then fedex as i said, we don't see that same margin pressure. $280 price on fedex. >> it is not you like the union shop. i will not connect those dots. i don't want to get canceled. helane, thank you. >> thanks, joe. >>> when we come back, disney ceo bob iger said the company will quiet the noise around culture wars. we have the details on what that means after this break. >>> a programming note for you. i'll moderate a session at the economic club of new york with the japanese primary fumio kishida. we will talk about the demographics in japan and navigating the negative interest rate policy. we will have the latest on "squawk box" tomorrow morning. >> announcer: this cnbc program is sponsored by ibm. ibm. let's create. can you trust the results? your business doesn't just need ai, it needs the right ai for your business. introducing watsonx a platform designed to multiply output by tailoring ai to your needs. when you watsonx y

how u.p.s. is using the power of artificial intelligence to help protect your packages. >>> it's handled. kerry washington live in times square after her eye-opening special revealing family secrets. the reaction this morning. >>> gio is helping round up unclaimed cash in the lone star state. how to avoid getting roped in by scams and what gift cards have to do with it. don't forget show me the money. ♪ oh my god ♪ >> and taylor swift. the megastar cheering for the chiefs with mama kelsey. oh my usher, we've fallen in love with a super bowl halftime show all over again. what he's saying about tackling the big show. ♪ >> announcer: live in times square, this is good morning america. >> and good morning america. hope you had a good weekend. my family text blew up with that picture of taylor. >> oh, yes. everybody -- >> speculating. >> excited about that. we're going to have much more on both taylor an ursher, right? isn't that how they call it? ursher, right? that's how you pronounce it. >> all ri

u.p.s. is even under more duress.there's something wrong with the space, call it two-stock index is space, my hunch is to be careful here. >> brian? >> i think there is some risk to the downside just in general for the whole stock market, and fedex is such a big player in terms of indices and stuff like that could participate to the downside with the rest of the market. one thing that's interesting, there's some actual bankruptcies going on in terms of the shipping area where places like a fedex or a u.p.s. has picked up some shipments, and we're seeing analysts upgrade that. when you look at earnings it moves about 4 to 5% on an after earnings report. that maybe puts you in between those two break even points that mike talks about. if that happens you get a win on that. i think from a standpoint of our options priced, you know, maybe too high, and then you collect this premium and win on that, i think there's a pretty good high probability, just that if the market starts to get volatile this stock probably participat

u.p.s. is under more duress, there's something wrong with the space. two-stock index. my hunch is to be careful here. >> brian? >> yeah,i think there is some risks to the downside just in general for the whole stock market. fedex is such a big player in terms of indices, could participate to the town side with the rest of the market. there's some bankruptcies going on in terms of the shipping area where places like a fedex or a u.p.s. is actually picked up some shipments and so we're starting to see analysts upgrade that. fedex might come in to the upside here. it moves about 4 to 5% on an after-earnings report. if that happens, then you glet o win on that. from the standpoint are options priced too high and then you collect this premium and win on that, i think there's a high probability, just that if the market starts to get volatile, istorobly participants to the downside with everybody else. >> all right. >>> up next, answers to your questions and the final call. options action is back in two. >> announcer: options action is sponsored by think or s

comments about winning business from u.p.s.ckages during those negotiations. any volume from fedex freight, the largest carrier in the nation. the influx of volume in both areas at higher prices will give margins a boost. evercore raised the estimates for fedex, they could also raise theirs. >> thank you very much for that. what are your expectations here? >> this management has not been shy about calling out the macro challenges when they see them gold positions in the past quarters. i would like to hear the characterization of the macro that will pass along fuel costs. what is that doing to demand? the ernie expectations have come down pretty significantly in loss several months. the market kind of expects them for the latest print. >> let's turn back to the markets. not sure where we are now. let's focus on these two words i took providence today. proceed carefully. investors want to use to choose their view if there will be hikes, if any. proceed carefully. something to hang on there? if you want to see things more positive

if they would give a little, and u.p.s. did, by the way, the seal was broken in that u.p.s. agreed that teamsters deserve what would look like a disproportionate hike. we have that kind of money. we do give it to our senior executives. there is a real reason why corporate america does not want this to be the reality. the idea is that we depend on paying workers as absolutely little as we can to cause them to not leave their jobs. that is the way america has operated. it operated that way right after slavery ended. we pay as little as we can to keep people in their jobs. we outsource them if we can. this is a sea change. if the uaw gets the 30 plus points it's looking for, it changes the game before every worker in america. >> absolutely right. absolutely right. they don't -- it's about, are we going to have a better balance of wealth? are they going to have a better balance of country? how are we going to have a democracy? all of that is on the line here. if workers are in poverty, abject poverty, if workers are being exploited, you don't really have a democracy in my view.

it was true with teamsters in the u.p.s.. places around the country. >> they have a good point. think about what all those cells have been like over the last four years, set. >> absolutely, 21 billion dollars in profit among the big three. just in the first half of this year, much more than that in the years proceeding. these companies have made a lot of money, the ceos have made a lot of money. and workers are really angry about. it and they want to be treated fairly. and that is the demand that we're hearing all around the country, from all kinds of workers. and they have a president who is saying i am the most pro labor president in history. i want you to go out and organize. i wanted to make the demands that you need to make. he is not taking a position on particular negotiating ploys are arguments at the table. but he is saying to workers around the country, this is your time and your president is behind. you >> said, when we do see workers across different industries get wage increases which are desperately needed in in

that would have included vehicles from u.p.s. delivery trucks to semis. supporters of the bill say it would have helped address safety concerns, and prevent truck drivers from losing their jobs in the future. the governor released a statement about the decision calling the bill unnecessary since existing laws already give the state authority to regulate the new technology. >>> overnight a major ruling on guns here in california. a federal judge weighed in saying the state cannot ban gun owners from having detachable magazines that hold more than ten rounds. that new ruling won't take effect for another ten days, which gives state attorney general rob banta enough time to appeal the decision. this is the second time that judge has struck down california's law banning high-capacity magazines. the first time was back in 2017, but an appeals court ended up reversing that decision. governor newsom posted on social media about the ruling writing in part -- "wake-up, america. our gun safety laws will continue to be thrown out by nra-owned federal judges until we

is about to get a deal, i think, that's going to -- >> u.p.s. u.p.s. >> yeah. >> this is the time when workers are finally getting their due. so to have an american president on that picket line yesterday, first time ever, i mean, you can't -- it's so exciting. and i do think that excitement is real, right? it's not manufactured. it's not lies that trump is saying. >> yep. >> it's real stuff. so i think it speaks to people. >> and i promise you we did not exile the men into the box. they are just in the box. it's completely coincidental. let me go to the guys for just a second. the thing is there is a tension in the whole idea of we want green. we want to go to green technology. joe biden put a lot of money into it. but for autoworkers, they see those green tech jobs and they see jobs in north carolina, jobs in south carolina, that are nonunion, that pay less and not jobs in michigan and in ohio and pennsylvania. that's the reality. so, biden does have to walk that line because the more he says green, the more a lot of union workers hear jobs le

unions have had a brilliant resurgence, u.p.s. workers just negotiated a new contract that means drivers will earn $175,000 in pay and benefits a few years from now. starbucks locations are unionizing, $20 an hour for baristas. the united auto workers are looking at that, particularly the u.p.s. driver pay, and thinking that looks pretty good. uaw threatening to go on strike by september 14th, if the big car companies don't agree to their demands. now, that would be historic, because the auto workers would walk out of all three of the big three, gm, ford and stellantis, what we used to call chrysler, and do it simultaneously. the outage at spectrum charter service continued over the weekend, customers could not watch football or the u.s. open as charter took abc and espn off the air in a contract dispute. here is a look at the customers affected in the bay area. south santa clara county, morgan hill, san martin, gilroy and then over into santa cruz and salinas. disney wants charter to pay more for the rights to put channels on the

if the automakers have good sense they give a good contract to the uaw, settle it the way u.p.s., a win/win situation and that's what uaw needs to take to tesla and say, see, this is what happens if you work for the union. if they are smart they will give a good contract to compete with tesla. >> bill sokol, we appreciate your thoughts. >> the chat of the times. that was great. >> by the way, my first college internship was at that new united motors manufacturing pta facility that is now tesla. it was joint between prism and gm. i used to work there. >>> the nbc's 13th annual "delivering alpha" segment is under way in new york city. we will get a highlight on the key issues next. don't met the annual advisor summit on october 12th. we will convene top market analysts to help their clients reach success. "power lunch" will be right back. if you think you have dupuytren's contracture, there's a simple test you can take—from anywhere. try to lay your hand flat against a surface. if you can't, you may have dupuytren's contracture. talk to a hand specialist about your options, includi

i mean, you know, i understand u.p.s.ween outfit. whoa, there you go. so, he is saying they would have been bankrupt if this was the conditions. they always start pretty far apart. i think they deserve a raise but what they are saying is billions and billions and billions of dollars through all of these. i can't keep up. there is grants, there is, you know, loans, there is this. there is subsidies. there is billions. you know how they marble -- the inflation reduction act, are you kidding me? there is so much money in there for these automakers to retrofit these plants and that means, hey, the europes are looking at this the ceo made 35 million, billions from the government where is my piece of the action? >> brian: i feel bad for the dealerships. pandemic not making cars. now not going to be transporting cars. now not going to be making cars to transport. the transporters are going to be on strike too. the dealership says really i invested that you will money. >> charles: dealerships are in trouble. we are all in trouble

historic gains for teamsters with the u.p.s.t the table with the big three and we respect their process and hopeful that they are going to grapple through hard issues and hopefully come to an agreement that is a win/win. >> and in the dock negotiations and u.p.s. negotiations, you played a critical behind the scenes role in those negotiations. i think one of the things that is difficult with these specific talks, part of the uaw's issues right now are electric vehicles, the federal subsidies that electric vehicles coming from there administration and the "inflation reduction act" and a lot of the work that they have done which has been touted and rightfully so for climate advocates' perspective. how do you thread that needle with them when this is a policy that you want to pursue in terms of electric vehicles and subsid subsidies, but it creates issues with what should be allies with this administration? >> president biden says and i agree that we can both solve our climate crisis and build an economy that is good for working pe

because we were all looking at the potential teamsters uaw strike, i'm sorry teamsters u.p.s. strike and the potential knock on effect. if you pias4 to stop, that would have a major effect on the economy. the auto workers -- and you understand that it is not just the autoworkers and the factories, it was all the knock on effects to the shop that support those workers, the dealers network. what is your sense of this? >> so i have sense since the beginning, the strike, america is going to quickly be reminded the american auto industry is still the backbone of the american economy. out of every eight jobs in this country, it is impacted by the auto industry. i think this is where the rubber hits the road. too many people go and have this talking point discussion, they handed to them, they don't understand it. those men and women, i talk to them every single weekend when i'm home. i'm in the halls talking to them about how they feel. when i go home thursday morning and in three or four hours, just talking to, them they are people that love ford motor company. one of the guys famil

one of the things the uaw, or -- did with u.p.s., and you a.w.s. our outsized increases. the average american might say i got a 3%, raise a 4% raise last, year no raise, how come these guys are asking for 30%, 40%? the logic here is, you seem to manage that quite effectively for your ceos and senior executives, and by the way stockholders have been making lots of money. tell me about this tactic, the idea that why don't you give us the same raise you give the bosses. >> well yes, because it happens all the time. but when you say 40% increases for somebody that is making $30 an hour, that is not as great as somebody that is making $10 million a year. so really, and when you say 40% increase, let's look at how much people are actually making in the united states, i'm talking about blue-collar workers. it is not enough to survive. just in southern california, los angeles, alone somebody needs to make $38.58 to not be -- in los angeles. that is ridiculous, because most, workers they are not making that. even workers who are part of unions. it is just r

fedex, u.p.s.t's that been like as we see both of those companies in a transformation right now, and also getting over some labor issues and talking about u.p.s.? >> we actually -- we use usps. we try to make our stuff as light and easy to ship as possible. we do fedex as well, but right now e-commerce is really, really tough. it's in a big slump in the last five years. the sentiment around ecom has been low. so brands that aren't willing to take big risk and try things in a different way, it's harder to grow right now. so, i think that's why this coach prime thing is so special, it's so out of the box and big than what most brands are doing. >> it's big here in the u.s. i have to be honest. i'm disappointed you didn't have the shades on. everybody is talking about these now. >> i don't have a pair. i don't have -- >> you can't get a pair. >> i don't have a pair myself. i don't have a pair. they're not made right now. it's crazy. >> talk about a tough supply chain. thank you for coming on. let's st

when you have u.p.s.hreatened a mass walkout for approving a new contract last month. and now u.p.s. drivers make 170 k a year. labor day folks is so much more than cookouts, shopping deals. it's the day that we honor the contributions and resilience, the dignity of american workers. this labor day we salute the workers. we salute the folks out there fighting for dignity. up next, control of both houses of congress is up for grabs next year, my next guest is on the ballot in arizona. he wants to help democrats take back the house. how conor ocallaghan hopes to stand out in what is shaping up to be one of the most competitive elections in arizona. stay with us! ♪ ♪ ♪ ♪ ♪ ...to not only enhance the fan experience, but to advance how the game is played. now's the time to see what america's largest 5g network can do for your business. oh stuffed up again? so congested! you need sinex saline from vicks. just sinex, breathe, ahhhh! [sniffs] what is — wow! baby: daddy. sinex. breathe. ahhhhhh! when moderate to s

. >> they'll move together with u.p.s., for sure fedex has had a turnaround they did, you know, fredy have new ceo, who had been there a long time, so, wasn't a big change, but he did seem to have a sense of urgency and the stock really improved. but i think it's really about the consumer somewhat, huge pandemic beneficiary if that's slowing, i think that won't be great >> quick thought >> i like it they benefitted from u.p.s.'s teamsters issues we talked about the multiple it's not something that scares men. let's just be clear. if the recession that everybody says is coming, fedex tends to be a leader, and by the way, fedex has been outperforming the market >> fuel prices aren't going to help >> not going to help and that will factor into their margins, which should come in 6%ish or so. stock's had a run. valu valuations never, ever a concern. doesn't seem to matter, though in terms of eps growth, you got it in spades. >> it's about how they operate the runup energy could hurt margins, which i think might hurt the stock >> all right, for more "options action," be sure to tune into

because, unlike the teachers strike that didn't happen against u.p.s.hich has gone the president out there and all that, this writers guild strike, a lot of people thought it was just gonna carry on until the petered out. >> yeah. our brilliant negotiating committee co-chair, chris kaiser, told us, numerous times, he's a veteran of these types of negotiations, and he told us, once the companies actually get serious about making a deal, the actual negotiation process will go very quickly. he said this months and months ago, and some of us, like myself, who are new to the negotiating committee, are, like all right chris, we're gonna believe you, but it's looking stressful now. and he was right. once the ceos decided to get involved, they got engaged, the actual final negotiations were wrapped up in about 3 to 4 days after almost five months of rioters having to be on the picket line. >> jeri, the teamsters managed to not have a strike and u.p.s.. they got the concessions they needed. the uaw is on strike, and they're asking for, among other things, for th

so we've got job layoffs -- we heard that at schwab, citi, heard that from u.p.s. they're trying to digest the -- and j.p. morguen and goldman sachs. to be fair -- >> mike, sorry to interrupt, we're having some issues with your audio so we're going to have to try to get that straightened out before you lay out the trade because we want to levels loud and clear to the audience. brian, what's your take on carter's assessment? he mentioned the arrow could go up but think it's going to down. do you agree? how are you feel about the brokers? >> yeah, i think some of the banks and the major brokers have really been a trade where they're kind of stuck in the mud, and i think that wedging channel that you're seeing that carter brought up is a real potential that if the market goes south, some of these brokers could break to the downside. morgan stanley being one of them. what i would say about big players in the major financial sector is one thing we like to do is trade structure notes with them. that's a fancy word for saying selling a downside put or vice versa, telling

the teamsters union came within days of a nationwide strike against u.p.s..an agreement with the big three automakers. in just a few minutes, at ten pm eastern, the union president is scheduled to tell his members which plans they will start striking if no agreement is reached by midnight. he sounds pretty determined in his speech to members yesterday. >> they can double our wages and not raise car prices and still make billions of dollars in profit. they want to scare the american people into thinking the autoworkers of the problem. we're not the problem. that chart is the problem. corporate greed is the problem. and come tomorrow night, if they force us, we are about to make the big three's problem. >> senator bernie sanders sanders, independent of vermont, -- the committee he's scheduled to join the man you saw, they're sean, fadeaway present, for a rally in detroit tomorrow. and he joins me now. senator, do you have, obviously, i know you support the union, you'll be there with the union tomorrow. do you have a kind of rooting interest here of the outcome

trucks weighing more than 10,000 pounds from operating on public roads that would include vehicles from u.p.s. delivery trucks to semi trucks. supporters of the bill said it would have helped address safety concerns and prevent truck drivers from losing their jobs in the future. but the governor released a statement about his decision, calling the bill unnecessary because existing laws provide sufficient authority to regulate the new technology. >>> also, struck down a federal judge ruled that california cannot ban gun owners from having attachable of magazines that hold more than 10 rounds. that new ruling won't take affect for another 10 days, which gives state attorney general rob bonta enough time to repeal this is the second time that judge has struck down california's law banning high- capacity magazines. the first time was back in 2017. but an appeals court ended up reversing that decision. governor newsom posted on social media about this ruling, writing in part, quote, wake up america, our gun safety laws will continue to be thrown out by nra owned federal judges until we pass a cons

you mentioned the split between fedex and u.p.s. year to date, jim.ere, i think >> fedex didn't -- fedex got 400,000 parcels in the u.p.s. deal. and i can tell you that the -- what they got was sticky. they went for long-term contracts. raj, i can't say enough about him. he got contracts from yellow freight, only about 5,000 a day. but you can have express revenues down 9%, and yet you still had operating income up. that was thought to be impossible. the planes are updated. they're getting rid of the md -- remember the 11s that you were worried about that were burning fuel. >> i was? remind me of things that i don't even recall myself. you're like my back-up memory. >> i am. you're d-ram, but i'm western digital. i have a hard drive. >> right. >> now, one of the things that i think is amazing, carl, is that this company, in the old days, i happen to think that fred smith gave raj a great hint but he's going for one fedex. in the old days, when you had the conference call, there was freight, which was different from ground, and different express, and i

u.p.s. workers just negotiated a new contract.t means drivers will earn $175,000 in pay and benefits a few years from now. even starbucks locations are unionizing. $20 an hour for baristas and more dependable schedules as well. the big challenge for president biden, both in that speech in pennsylvania and in general, is convincing americans the economy is getting better, because it is by all standard metrics, but americans don't seem to feel that way. a brand-new "wall street journal" poll, for instance, finds 75% of americans think inflation is getting worse. in fact, kris, it's getting better. lowest rate in two years. >> it kind of is whatever you feel like at home, right. >>> september is childhood bay area family is hoping to ne make a difference in the lives of young patients. according to the natna pediatric cancer foundation, 43 children are diagnosed with cancer every day. cancer is now the number cause of death by dea among children. and only 4% of government-funded cancer research is directed toward treating childhood c

the teamsters got a tremendous contract from u.p.s.ausing tens of thousands of people to apply nor jobs at u.p.s. because the deal is such a good deal that they want it. and i think we're going to see a very, very good contract for the uaw. they are holding strong. there's immense solidarity. their president is standing behind them. the american people are overwhelmingly in support of the uaw. so, i think we are seeing not just a moment, we are seeing a real sea change in people's view of the labor movement and the role of the labor movement in our economy and our politics. >> rick, the teamsters with u.p.s. took an interesting approach and did very well in their negotiations. but people are doing stuff that we've all been talking about for years, and that is they're looking at the spread between what ceos earn and what workers earn. they're looking at the increases that ceos have taken in times, particularly the auto union or airline union, where they ask workers to take cuts to keep companies alive. they're doing the math and saying

that would have included vehicles from u.p.s. delivery trucks to semis. unnecessary since existing laws already give the state's dmv authority to regulate the new technology. >>> parts of highway 87 are now closed in the south bay. caltrans is working on pavement repairs. all northbound lanes of 87 shut down. the work is part of a $69 million project replacing the pavement, update ramps at six intersections and improve drainage. detours in place for drivers. work expected to wrap up by 5:00 monday morning. >>> all right. that smoke haze is still hovering above a lot of us this morning. bring in cinthia pimentel. cinthia, when will we see blue skies again? >> i promise you, they're on the way. meantime, we are starting to see the sunrise mixing in with some haze. start over on in oakland seeing hazy sky greet us this morning. also temperatures at 59 degrees. san jose in the 50s. perfect representation of smoke hovering. futurecast for that smoke, we are all going to see more hazy skies today for our saturday plans, but then as we go on into sunday, we're g

teamsters union under the presidency of shawn o'brien, the union got a very good pay settlement at u.p.s strike earlier the summer. now the uaw under their new president shawn fain, represents new breed of union leader that's not unapologetic of taking on corporate greed. >> but there's a bit of -- sorry to jump in, there's a bit of a paradox here, you talk about the unions being more militant, there's been a greater move to yuanize but the numbers in so far as participation is going down. >> it has for several decades and that will continue to be the case unless realistically, unless we get stronger legal protection for the right to choose a union and the right to organize in the united states, the united states is the hardest country to form a new yoonon because of combination of the weak law and the very strong opposition on the part of companies like starbucks and amazon. >> and the political opposition as well from the red states, the so-called right to work states. i'm wondering how all these high-profile strikes, how that could, you know, be interpreted in the context of an electi

u.p.s. has challenges with the labor costs and pressure to win back volume after the union issues.ractionally higher. >>> time for the global briefing. we start with french regulators invading the market offices of nvidia. the wall street journal says authorities are investigating the graphic cards sectors and received approval from a judge for the raid. shares up 1% in the pre-market. >>> evergrande executive chairman is under investigation over suspected crimes after taken away by chinese police. evergrande shares were suspended in hong kong yesterday. they remain halted until further notice. >>> sticking with china. the wall street journal reports that apple is meeting with regulators over beijing crackingdown on the loophole to allow western social media apps being downloaded. if apple does not prevail, it will no longer offer apps in the app store unless they are registered with the government. >>> ahead on "worldwide exchange," the one word every investor needs to know today and the end of the dvd and shipping routes. we will have that and much more. stick with us. personaliz

>> uaw strike and u.p.s. are pushing up prices. inflation really starts with the u.s. teamsters or any other workers for wanting wage increases. inflation is there and they didn't cause it. however, it is something where the automakers have to be sustainable. they have to stay in business and that is one of the reasons you see jim farley saying there is a ceiling. at some point we cannot sustain our business in the face of inflation. >> we have strong comments on both sides. patrick, thank you. >>> let's get a check of how markets are shaping up. futures indicated higher with the dow suggesting an open of 76 points to the upside. analysts at jpmorgan chase are everything on a more cautious j outlook on the markets calling the s&p over valued. joining me to discuss this trading day ahead is catriona dudley. >> thank you for being here. >> thank you for very having me. >> what we are seeing on the inflation front is moderating. we're in the camp that inflation can have a two handle by the end of the year. that means the fed gets to check that box which is achieving infla

you had some of the u.p.s. business move over to fedex when they were certain about the impact of the strike. yellow going out of business, that helped pick up pricing and it also helped chick volume to fedex. however, we are seeing a slowdown despite the number today, in consumer purchases, and that will impact. i believe with the new management they've put enough in the tank to make sure they have another good quarter. so i expect the quarter to be good and guidance to be okay. i'm content to wait on the sidelines. i have enough exposure and, by the way, significant exposure. >> that's a nice bump there. the dow highs of the day good for 300. the nasdaq and s&p strong. arm is out of the gates and doing quite well. the headlines with silvana henao. >>> the georgia election case is splitting up. the judge ruled against the district attorney to allow sidney powell and kenneth chesebro to separate their trial from 17 other defendants. this means the former president won't go to trial in october. officials say a l

it was only a few months ago when a u.p.s. strike was averted at the last minute.ady progress being made leading up to that new contract. this feels like a different ball game. >> yeah, the union rhetoric that we're seeing in this round of talks, particularly from new president sean faine, much more combative. these talks are playing out in a much more public way than they used to. i will note, those i've talked to, familiar with the company side, say negotiations are sort of progressing at the pace they normally would. so the perceived holdup might be more because of the messaging we're hearing from the union. but whatever the case there, we're seeing tensions very high. and analysts are predicting that a strike is much more likely this year, potentially at all three automakers which would be largely unprecedented. >> look, they've had to negotiate with unions before. but how have the contracts they've signed in past decades playing into this round of negotiations? >> workerses have had to give up some key benefits and make concession information the last few roun

actors want the general public to just know that we are just labor workers, just like people driving u.p.sht up with actor and sag-aftra local new york president on the picket lines. >> let them know that you're not going to use us to promote your summer blockbuster, to keep promoting all of your streaming platforms, you're not going to use us. >> sound. >> i think the power of union is an incredible thing, but it's really hard to throw yourself behind something that has in sort of a selfish way has made your immediate life a lot more difficult. it's hard not to feel a little bit of just collateral damage in the whole thing. >> reporter: production assistant gabrielle doesn't belong to a union but she's now out of work and doesn't feel any potential benefits from the strikes will trickle down to her. >> the things the writers and actors are fighting for are deserved but there are still people out there who are getting even less. >> reporter: between the long hours she spent on sets and the uncertain future, she's considering a career change. >> maybe we will dust off the old bartending ski

we're poised for it to go higher because of energy, the u.p.s. strike, the uaw strike, the inflation reduction act. you have all the triggers for inflation going higher. we're a consumer driven economy. now you see the cars rolling off leases. i've had two. fortunately i can afford it but the cost of buying a car has gone up 20% to 40%. so where do consumers make choices? in addition while rents may be coming down, they're still on the rise. where do you take it from? you have to pay more for energy. it's not like you've seen grocery prices go down measurably. >> good point. >> guess who is going to pay for the uaw wage increases? you, bryn, me, rob -- maybe not rob because he's america's guest, so who knows, in general it comes to the consumer. >> weiss, as if we didn't get the message, susan collins saying today she feels we need to keep rates higher longer. i think the fed is making it clear whatever you thought was going to happen, trying to make it clear. >> just because the equity market has held these levels for the top line, lots of stock

workers who are difficult to replace, and the writers are certainly that but also the teamsters at u.p.s're seeing the autoworkers, they have shown a lot of power at the bargaining table. and this deal, if the reports are accurate really gets the rioters most everything that they wanted. they wanted job security protection, they wanted wage increases, they wanted revenue out of the streaming services residual. they wanted to be protected from this technological development of a high. it looks like they're going to get all of the. almost everything but they wanted in the table. and that is consistent with the pattern we've seen going all the way back to 2021. unions that have workers that are difficult to replace have a lot of bargaining power this economy. >> but this thing is not inked yet. it's a tentative deal. what could keep it from crossing the finish line set? >> well if the rioters all of a sudden decided that this was an exceptional deal you could see that there are two leadership councils of this writers guild of america have been proven. and we'll see that vote probably tomorr

>> kevin simpson, speaking of moves, you bought -- you're a buyer of some things, you bought more u.p.s. you bought more walmart. i saw that sentiment number today, a big miss. i'm wondering if we're in some respects at an inflection point for the consumer, and if that plays anything into your buying of more walmart. >> i don't know if the inflection point is for it. if we get economic slowdown the consumer benefits. walmart benefits from the consumer dropping down. it might be holding for a string most of the summer. as we head into the fall, you have september, october, we get nervous. we're experiencing a soft landing. the fed is done or close to being done, all those themes are still in place but they become more precarious. i think the market may be getting it wrong, scott, we might be prematurely pricing in the rate cuts. i'm not in the camp we're going to see them the beginning of next year. i have a lot of reasons why. i think we're probably looking a year out before we can really have that conversation. >> but the most interesting thing you just said to me was that the bull nar

u.p.s., a lot of people have been looking at that. the stock has been very weak in the last few weeks. the cfo did an interview overnight. their margins are getting squeezed on the back of these higher oil prices now and the higher wages. remember, everybody's looking at that as the teamsters got a pretty significant bump-up there and what that's going to do for profitability. if you look at the year-to-date chart, it's underperformed market. >> and after ppi yesterday, highest number since april, big pieces being written about today is whether or not we need to revisit the corporate margin story because the general sense has been q2 results were about margins. now, it's got to be about demand, and how much more do they need if, in fact, margins are going to be compressed. >> depends on the wages but certainly the oil prices have moved up, and that -- that's painful. we saw some of the retail stocks underperforming this week. that's what happens when you see higher oil prices, traditionally. it puts a damper on consumer spending. we k

the fact that they're emboldened by other strikes in other areas, like what we saw with u.p.s. teamsters? or something specific to the automakers? >> it's a combination of all of these things, but if you look back four years ago, when the last deal was struck, that was just months before covid. and, you know, i think the covid experience, the decline in real wages for workers is a lot of what's behind this. but fame was just elected to that position less than six months ago. and so he's really determined to make his mark in this first round of negotiations, as head of the uaw. and so, you know, all signs point to this potential being a prolonged strike. they've also increased strike pay by nearly double. so striking uaw workers will be getting $500 a week in strike pay. four years ago, they were only getting $275 a week. so that really in our view prolongs the potential for a long strike. >> hey, finally, garrett, on tesla, you point out a net winner, although it's had some trouble re-asserting itself over the 50-day. and there's a lot of commentary this week or so, talking abo

you have these discussions with the autos and the union, higher wages for pilots, u.p.s. i think we have this embedded inflation in our system, and the market is pricing in a soft landing. so it will really be companies that have true cash flow growth and earnings, and i think those that don't are going to get punished. you saw what happened, you disappoint slightly in the stock. i think the earnings season coming is going to be one of the most important ones, you know, with consumer demand slowing, costs increasing, and you look at capital structure for the companies trying to raise debt as well. a lot i think has to be perfect for the soft landing to happen. >> that does seem true, although i guess a couple of things, lauren, that maybe folks would argue as counterpoints, one of them is the initial conditions in terms of just how strong the consumer was, how much fiscal stimulus there was, consumer balance sheet, corporate balance sheets being in good shape, that the weakening we've seen is so far kind of a normal saization opposed to falling off a cliff. the microcycle

while nike did warn 4x rates will continue to impact results, we saw this with u.p.s.r, as well. the currency swings, as the catalyst behind the company's $41 million fall in global package and supply chain revenue. and we're going to get a fresh look, maybe, at least through the eyes of nike this week. >> nike reports tomorrow after the bell. very exposed with more than half the business overseas. usually, investors give companies a pass for blaming currencies, because it's just unavoidable. and no company can figure out how to hedge currencies correctly. so they usually have a pass, unless there's a big upside or downside surprise to the overall numbers that weren't in the models. but overall, yeah, this is not what companies expected either. they came into this year thinking the worst was over. last year was about the strong dollar. and now, here we are again. on the plus side, we can go to europe for better prices again. >> true! >> we're two hours into trading. let's go post-to-post with bob pisani for a look at what's moving. >> we were flat, but we had an attemp

u.p.s. workers just negotiated a new contract that means drivers will earn $175,000 in pay and benefits a few years from now. even starbucks locations are unionizing, $20 an hour for baristas, and more dependable schedules. the united autoworkers are looking at that and they think it looks pretty good. they're threatening to go on a strike by september 14th if the big car companies don't agree to their demands. it would be historic because the autoworkers would walk out of all three of the big three, gm, ford, and stellantis, and do it simultaneously. >>> well, the outage at charter's spectrum cable service continued over the weekend. customers there couldn't watch college football or the u.s. open, as charter took abc owned channels like abc and espn off the air over a contract dispute. here is a look at the customers affected in the bay area. south santa clara county, morgan hill, san martin, gilroy, down into santa cruz and salinas. disney, which owns abc and espn, wants charter to pay mo

we saw what happened with u.p.s. and others.this a time when labor unions want to show their strength. the president says he has long been behind them but so far has not interestingly won over the endorsement of the united auto workers union. >> ainsley: any chance they will compromise 46% increase in pay is steep. >> yeah. that's something that the union's president, when he was offering that reaction to the president's reaction, he said maybe the president knows that these auto workers are going to come in and strike a deal with us last minute. maybe he knows that and maybe we are ready to settle. the unions when they authorize a strike the goal ♪ to strike it's to reach deal. hopefully a compromise is on the table. >> griff: maybe he is in for a rude awakening if the uaw doesn't get what they want. thank you. >> ainsley: she put up the truth social what donald trump said on truth social and she read a portion of it. the very last portion of it says choice in schools and choice in cars. people want the option. they want to hav

i mean, they look over the fence, phil, they see u.p.s., 40%. average full-term driver is making $174,000. you look at american airlines, you look at the dock workers on the west coast, uaw is saying, hey, it's my turn. i'm standing in line and all these other companies have been able to get wage increases or a standard of living for their family. so i don't deny the importance of that. but again, we have to have sound mind coming together. we could both stay polarized here and basically shut down ford, shut down chrysler. i like to call them chrysler. and general motors. that's not -- that's going to have a tremendous impact on already a very fragile economy. that's my concern on the bigger picture, phil. >> yeah. it's a good point. it's why the white house is very concerned about cognizant of this as well. bob nardelli, i appreciate your perspective. >> thank you, phil. >>> our next hour, vanessa yurkevich will speak mary bara in the next hour. poppy? >> interesting what he said about who has the leverage right now given all he went through th