tv Squawk Box CNBC July 18, 2022 6:00am-9:00am EDT
it is monday, july 18th, 2022. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live at the nasdaq market site i'm andrew ross sorkin along with joe kernen. becky is have green on the scre. dow will power back up >> we did have a tumble. >> what do you think friday was? >> what do you mean? >> am i crazy? have i lost my brain >> yes huge day friday. >> back up sorry. i lost my brain. >> we had a great week the week
before scary with cpi and ppi good retail sales. totally countered -- we're 38.60. bitcoin at 22,5. we kept talking about do we need a 40 vix do we need a 35? do we need a new leg to new lows i hope against hope that maybe strong jobs is good. retail sales maybe it means the fed has to do more and we can land softly. >> what do you mean jpmorgan chase? >> citigroup you saw that >> yup you are glass half full. >> yeah. i've been that way i don't know we all have 401(k)s. we all are long minded no one wants the markets to go
to zero, obviously i try not to be pollyanna. >> doesn't it make it harder for jay powell >> i hope not. not with oil at 90 commodities rolled over. fly in the ointment. you are hitting it on the head 3.6% unemployment in a recession, it has never been seen before. that's why you worry about the wage people being able to demand more and that becomes stubborn. if commodities are rolling over -- >> you think powell is going to 75 that's what the journal is saying. >> we will have roger ferguson on in a little while before the quiet period, they were all indicating 75 >> if everything is going so great, maybe you need to
>> we may have back-to-back negative gdp quarters. it is technical. it doesn't mean we're in a recession. i'm hoping that it is all said and done and the supply chain was -- i don't know. i'll use the "t" word. maybe some of it was transitory. maybe it is not all the money we printed. maybe we needed the american rescue plan and it didn't take chase. who am i who am i >> what's happening here >> much of last week's market action was driven by changing expectations of what the fed is going to do. after the 1.9% jump on consumer inflation. it was worse an 82% chance the fed would hike rates by full percentage point this month after friday's unexpected jump in june retail sales and
softening expectation, the rumor drop dow rose on friday relief rally andrew, a slight loss. why strong retail sales would dampen inflationary expectations it would help equities bitcoin at $22,500 ethereum back to $1,450. the risk is on we're going into the dog days. we are approaching puppy days. >> i like that >> it won't be a lot of volume maybe none of this is real until september.
>> that's when katie stockton and others have plans for us, unfortunately. >> don't you think -- okay, i'm buying in september. don't we miss that don't you say i wish i had done something when i had a chance? all these stocks that are down 50%. you don't buy them because you are scared they are going further. nobody buys bitcoin at $18,000. >> you have to hope the fall kee keeps things on pace. >> we have two or three more weeks of unbelievable earnings to look at a lot of data. >> a lot of numbers. we will see. >> including this week let's tell everybody about the squawk planner during the puppy days likely to be a big driver for the markets. today we will hear from bank of
america and goldman sachs before the opening bell we have ibm reporting after the close. tomorrow, johnson & johnson and then we talk about what joe was mentioning netflix. on sale for some time. wednesday, biogen and abbott labs before opening bell tesla and united report after the close. on thursday, at&t and travelers and american on friday morning, american express and verizon and twitter report twitter and tesla during the same week. elon musk talk later a light week for data. june housing starts tomorrow existing home sales on thursday and jobless claims on thursday. two of the china cities ordered massive covid testing after two new cases discovered in the northern city of tianjin. that is among 13 million people.
how many cities in china and they say a lot with that many people a lot of 10 million people cities tianjin. >> new york's less new york city population my good friends at google. it is 8.38 million >> all of the boroughs >> 13 million people tianjin. i don't know if i've ever said tianjin. conducting citywide tests. shanghai's government requiring residents across nine districts to take two covid tests over a three-day period officials cited the risk spreading outside of the lockdown phase
meantime, macau is kicking off an 11th round of covid testing extending a lockdown of casinos and other businesses in the fight on the worst outbreak since the pandemic began despite the fall of infections that saw 27 new cases reported yesterday, authorities ordered the city residents to stay home. all non-essential businesses i don't know about monkeypox is that on the radar do you think about it? i don't think about it yet sgyet. >> i have not been thinking about it personally. >> it is growing still low numbers. re really we are not taking it seriously and it could be a pandemic it means it is everywhere in the world. i can't imagine an -- it doesn't have the same epidemiology of
covid with transmission and everything else. let's talk golf update. australia's cam smith won at st andrews after the performance. the first australian to win the open since greg norman smith was asked about rumors if he is considering the jump to liv. he said the reporter's line of question was not that good he would not confirm or deny interest in the tour headed by norman henrik stenson plans to join liv golf and would be stripped of the ryder cup captain. the schedule for the remainder of the year is undecided he missed the cut on friday at
st andrews 20 under is a lot. he shot 30 on the back 34/30. 64 birdied 18 >> is there any argument as a golfer from a competition perspective that this is going on to make the pga better? >> the guys have been pointing out who haven't been playing their best golf. mick mickelson's best days are probably gone. ders bryson dechambeau. brooks koepka has been hurt. dustin johnson played well, but didn't win. >> is having two effective leagues, make this a -- >> bad blood >> does it add -- the world wrestling federation and the one other. one was the heel >> that's the fake wrestling you know that's not real
>> that i don't know about >> you mean the ones where they fight before hand? >> that's not real really you sure about that? >> i'm pretty sure don't you notice they are hitting people with their elbow? they pull back are your kids watching have you been? >> i have never been i don't know if i want them to go. >> they're athletes. they do crazy stuff except mickey rourke. we will talk to phil lebeau. we'll wrestle with him and go to the farnborough air show with the huge lineup of guests. the ceo of qatar airways and dave calhoun if you are a road warrior, you don't want to miss this. you are watching "squawk box" on cnbc
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you have been around in lean years and not so lean years. what are you expecting >> i believe we will see strong momentum i believe in significant orders. air travel is back airlines are dealing with the demand and problems with coping with it. the fundamental fact is that the demand for air travel is back. you can feel it here at the air show and all of the discussions. i would say we're back and back stronger than ever >> at the same time, your customers, airlines around the world, cannot get airplanes fast enough. >> exactly right >> how long does that last does it extend into 2023 and 2024 >> i envision it at kocouple of years. the manufacturers can only build engines so quickly and same with the framers. that is the limiter. the airlines have to get around
the pilot shortages and their infrastructure situation we have a time just at peak demand and you have the constraints. i think at the end of the day, the industry has an amazing ability to sort this out even if it takes another year or two, demanded will be there. >> you have a unique view. you have customers around the world. you know how it is in every single market. we think what is happening in u.s. is unique to us set the record state staffing shortages what we see in the u.s. is not unique to us only, correct >> not at all. you see it in europe i referenced the flight cancellations in heathrow. asia, for inn itternational tra has lagged a bit we expect more and more of asia the will open up china is restricted. as long as china remains restricted, it has a big i
influence over that region the demand is huge there airlines are increasing their frequency in international travel it will take longer, but it will come >> how worried are you with the number of issues first off with inflation what is your concern >> everybody is concerned about rising inflation and costs and interest rates that's one of the things spurring demand for us and aircraft airlines know airplanes are more expensive a year from now or two years from now that is why they are coming to secure lease extensions and airplanes and sign a contract today before it is more expensive tomorrow you have the pressure in europe on the environmental side. that is all factoring in. >> and the potential for recession. we have the pent-up demand and airlines are insulated
are you worried about recession? >> it would be wrong to say we're not watching or concerned. however, when you see the level of demand, even with fuel prices today, people going in the car from a to b it is expensiexpenst they're doing it i hope this will continue to overcome headwinds from inflation and interest rates people have been locked up for two years. human nature takes over. pricing he elasticity kicks in. i don't think we're there yet. if you look out three or five or seven years, we are looking at a good picture. >> john plueger, thank you a big couple of days a lot of orders. guys, we'll have news about large orders coming up airbus as well as boeing we'll talk to them and a host of
other guests back to you. >> phil, stay cool the lineup continues with the ceo of qatar airways and the acting minister of the faa you don't want to miss that for the road he warriors who lived through delays we'll talk to them and dave calhoun at 8:15 eastern time um p next, apple filing a nw request in court we have details after the break. >> announcer: this cnbc program is sponsored by ameritrade where smart investors get smarter.
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wielcome back to "squawk box. apple asking the federal court to throw out the injunction. apple calling it legally improper the request is part of the ongoing lawsuit with epic games. 30%. is that still too much we haven't talked about this in a while. has your feelings changed? >> i don't feel that strongly about it you know, i'm anapple fan. >> i'm with you. i don't win points for saying that >> we will see a stock that has never saw apple's price. it will happen with google
shares of alphabet lower than what we are used to seeing because of the 20 for 1 split. it is reflected today. that happened after friday's close. $113 for alphabet. trading on a split adjusted basis today. just in time for cramer's new show >> what a coincidence. >> not a new show. it's a new set and at the new york stock exchange. "mad money." >> reboot >> i think closing i should check into that before i talk is it closing bell, evan do you know? >> you might want closing bell to promote the evening what do i know coming up, ceo of qatar airways joins us next from the
farnborough air show we expect results from bank of america in the next hour. we will have the numbers "squawk box" will beig bk. rhtac >> announcer: executive edge is sponsored by at&t business at&t 5g is fast, reliable and secure we're gg eversiness, our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated. at&t is giving new and existing business customers our best deals on every iphone. ♪ ♪
good morning welcome back to "squawk box. live at the nasdaq market site on monday morning. we will look to open higher. dow up 280 points. nasdaq up 144 points s s&p up 38 points take a look at oil if you want to buy by the barrel, buy it for $99.60 for a barrel of wti crude. joining us to talk more about the president's trip to saudi arabia and impact on the energy markets is helima croft. we will leave the pontificating
about fist bumps to others, helima, unless you want to weigh in i want to get your sense of what it means for oil >> my expectation was no declared deliverable as we head into the august meeting, we will see additional supply in saudi arabia and uae and possibly kuwait. they will not dump 2 million barrels on the market or spare capacity they will add back barrels come the august meeting onwards >> we have been talking to you every week now for months. does this meeting change the dynamic in any material way? >> what this meeting means is that the u.s. and saudi relationship is now on sounder footing than it was months ago we will get oil support from
saudi arabia we still have a big problem in the market as we head into year end. namely december 5th with the sanctions on russian energy. not that they will stop seaboard imports, insuring russian cargos and flagging ships. they need the saudi oil in volume, but going into europe come december onwards. >> helima, we will see if you are jay powell and things have gotten a little bit easier over the past week or two, does that make it easier for him or not? what would you tell him specifically about what comes this fall? >> the problem is yes, we had oil come down, but that is driven by fears of recession and chinese lockdowns because of covid-19
this is a structurally tight market the key to watch is do they get this price cap plan to work? if we have the european sanctions kick in on december 5 and we don't have a mechanism to move these barrels from russia to asia easily, you could be losing millions of russian barrels from the market. this price cap plan has to work and you need those saudi barrels going into europe when the russian barrels exit >> we talked -- >> and nord stream 1 that is a big thing coming this week. >> handicap the price cap plan you think it is workable >> what is concerning to me and i don't think market participants realize this. if they don't get the price cap plan to work, we will be hit with sanctions and it will be more challenging for the barrels to move to asia. that meansbarrels
are off the market they need to find a way to get the plan to work. >> they need to. i'm asking from a practical perspective and watching the practicalities of moving around the world. does this have a practical plan? >> this is a challenge they need to get the europeans on side. they need to come up with the mechanism of who sets the cap and who enforces the cap i think india loves the discounts. they are telling indians you have to charge the russians less for oil. they won't have a problem for that the enforcement and getting it done by december 5 is a challenge. >> helima croft, thank you i appreciate it. >> thank you joe. >> all right let's get back out to england's farnborough international air show phil lebeau has another special guest. hey, phil. >> joe, thank you very much.
we are here on the aircraft. a boeing 777 3r. the ceo of qatar airways you see strong demand right now despite what we are seeing with jet fuel prices and some questions of the economy around the world, right >> you know, during the pandemic, qatar airways proved itself it was a reliable airline. we never stopped we didn't, you know, leave millions of passengers stranded. we carried 3.3 million passengers during the peak of covid from march to june of 2020 safely to their homes. mostly never traveled on qr. most of them never knew our brand. passengers just realized and we
gave nearly $1.5 billion u.s. of immediate refunds to passenges who couldn't travel. we even gave the opportunity for passengers to change tickets and routes, including up to 500 nautical miles extra, without any charges. this gave confidence to people this is what made our airline to be only the most profitable airline in 2021. >> you may be profitable, but flying into heathrow and europe is a nightmare how much have staffing issues and issues at airports impacted your business? >> a lot especially in europe and in the united states and north america. people got used to working from home people also now see an opportunity for them to take
advantage of the shortage of staff available. what really surprised me is that none of these people saw this coming they should have known >> you are part of the industry. didn't you see this coming in. >> we don't. >> you have airport executives >> not every airport executive is so much hands on. they rely on data. had th they don't go to the field until they see the bleep hits the fan. >> we're live. your on going dispute with airbus the a 350 that you have. this is not a case you plan to settle, correct? >> let me to be honest it is something that people
don't know airbus, you have seen in all of the media that there is a problem with the airplane. it is accelerated surface degradation. nothing to do with paint it is an underlying issue. eventually airbus admitted and admitted they don't have a permanent fix to that. over 18 months of painstaking discussions with them, we had no other alternative but to go to court because we saw that in the interest of our industry, we had no other alternative until today, publicly trying to say they are having amamicable settlement they are not we had to go to court. to make matters worse, for them not to disclose for what they do
in the order of the court, they are bringing the french statute. >> you will go to court. does this change your mind in ordering from airbus in the future >> when there is an aircraft manufacturer on a safety issue or a problem, of course, it is like you you get very bad service you will never go back to them we don't want to do that i know airbus today is basking in the sun because they have the market dominance due to the pressure that's not going to be a long term boeing is a far mightier aircraft manufacturer than them. they have 50 or 60 years more than them in the business. they will come around. they have come around strong if you don't mistreat your
customer and you think that you are sitting on top of a mountain looking down at them, you are destroying your reputation in the industry because everybody is watching. i have to say i was bold enough to go to court because we needed a solution for the safety of our passengers and i have full confidence in the legal system in england we will see them and we are confident that we will prevail. >> akbar al baker, the man doesn't hold back at air shows as you heard a few minutesing ago. back to you. >> we love that stuff. we have seen that before sam zell it's cable, phil it's cool. we're good thanks, phil we're not ordering a delay button yet in the next hour, phil will be
back with acting faa director billy nolen and then dave calhoun. i like to have dave calhoun privately to get colorful language sorkin did you like that? >> you know, what is that dog? >> a shih tzu. or schitt's creek. it's fine. it's cable coming up next, bank of america set to report in the next few minutes he said it i didn't we will bring you the numbers on wall street. you can watch or listen to us live anytime on the cnbc app until we get censored. back after this.
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clear. it is playing out -- i hope it is not like katie said katie stockton we hit a bottom in the fall. >> that is the prevailing view. >> everybody, all the guys that do fast money on friday. try that on friday night get in and out of the city on friday afternoon you don't live here. i still can't believe that where do you park? how many cars do you have? just one >> one car yeah >> how many trees do you have? just one >> a couple in front of the building >> you take your kids out and say this is a tree >> we have a backyard known as central park one of the greatest backyards in the history of backyards >> a beam or go sit in the grave card i don't think so coming up. the latest with thel me onusk
bank of america just reporting this morning we go straight to leslie picker who has been going through the numbers. good morning >> good morning, andrew. revenue of $22.8 billion beating wall street estimates this morning earnings came in at 73 cents per share. 29% lower year over year about the same magnitude of declines we have seen among bank of america's peers the last week net of income boosted by raising interest rates that make loan
making profitable. that was up 22%. helping offset the investment banking declines during the quarter. bank of america said it took a provision expense of $523 million. they had a $523 million regulatory charge with fines over the feirms's disbursements of cards we covered this with a cnbc investigation last year. sales and trading and commodities strong during the quarter. up 19% for that group. up 2% for equities trading shares of bank of america down 1.3% in pre-market trading we are still digging through the release. we will let you know what we learn. guys >> okay. leslie picker, we will talk more about that this morning and we will hear from goldman in a little bit now to the battle with elon
musk and twitter over the termination to be able to buy the company. on friday, musk's lawyers asked the courts not to expedite the case we have sara fisher with us. axios media reporter how closely piece in "the journal" this morning? it's fascinating i can't help but they of trying to describe the mind of a creative genius and everything that goes along with that. but i think maybe you need to have that in the back of your mind when you try to figure out elon musk and the whole twitter did. did you get to read that piece, sara it's crazy he's surrounded by influence, and a guy who had his ear about effective altruism is an ex-gambler who elon thought
about giving e ing oue ing all y to and i thought elon was staying at other people's houses what did you make of it, sara? >> i think the key takeaway, when it comes to elon musk, you're dealing with somebody who's unpredictable and at times irrational in a normal rational scenario, elon musk would look at this deal and say, okay, i'm going to aim for a settle mchbltment her. let me try to figure out a way to back out of the deal. obviously twitter's board is not going to accept anything like that we're not dealing with a rational actor here. when you look at his response to the lawsuit, he's essentially saying twitter is trying to delay the process. then he's trying to say they're trying to rush the lawsuit nothing adds up. i say elon musk walks into this
trial in delaware in september really with the lower hand here. nothing that happens in the elon musk world seems to make sense right now. >> and do you think at this point that twitter's board would be happy with just getting something in terms of the deal done, or do you think they'll go, as we said before, will they go to the mattresses on this and hold out for $44 billion what -- it's not worth 44. they know that probably. it may never be. >> it's definitely not worth 44, but you have to remember, they have a fiduciary duty to their shareholder to get the best return the reason twitter is trading so high right now relative to its peers like snapchat is because they're hoping to get paid out $54 a share, joe i mean, you're looking at a
revolt from shareholders i think the only possible outcome that isn't elon musk being forced to buy it outright is some out-of-court settlement, or they can get some sizeable money. in order for shareholders not to revolt, twitter is going to need to walk away with $20 billion or something that's really significant. i don't think you can walk away -- >> sara, i've been thinking the same thing the flip side is if you're elon musk, you do spend $20 billion and get nothing, or do you spend $44 billion, and at least have an asset behind it >> i mean -- >> the question is -- somewhere in the middle. i agree. $5 billion, not enough $20 billion is a lot is 10 a workable number? 15 is some somewhere in there >> no, it's too low.
they're never going to be worth $44 billion because their competitors are growing faster than them. remember, twitter never makes money. this is not a growing company. i think $10 billion is way too small. >> well, sara, the solution a judge could come to is, look, one view is specific performance. congratulations, elon musk, you own all of twitter the othered my be philosophicky, y philosophically, you don't want to own it, they don't want you to own it, we're going to take $44 billion, subtract what the current market value is, which we can argue is artificially inflated, and you'll pay the difference right now the difference would not be $20 billion. >> no, i hear what you're saying, andrew where it would trade after elon musk walks away from the deal,
it becomes so, so low, it's different. now they're walking away from a substantial amount of money. i don't know how much elon musk wanted twitter to begin with he's neverseemed to actually care for me, i don't think elon cares that much if he walks away and doesn't get the asset. i think what elon's going to have to start to think about is did my handling of this whole situation rock people enough that it's going to disrupt my ability to handleover companies. that's elon musk's big riisrisk. >> is that right >> when it comes to users,
there's 100 million less i pulled the data from a third party. they made $4 million in their lifetime off of subscriptions. that's a tiny bit. to top it off, no one thinks they're going to stop the growth acceleration in the next year or two years. i don't think they can get to $44 billion in the next five years. >> i don't know. what do you -- we've got to go the reputational damage, that's the question. >> of who? >> well, no, no, no. if elon musk loses this case, what's the reputation -- >> for him. >> -- for him? are there other people who won't do deals with him? i'm not talking about mergers. some suppliers may say, you know what i'm not doing business with you. does that happen >> yeah, i think investors are
doing bait and switch right now. are those same investors going to agree to a different deal i don't think so the big risk that i alluded to before is this chancery court cannot put elon in jail, but they do have some sway this is a company that has other private firms. they could theoretically try to put pressure on elon musk. >> we ron barron coming up on the show. >> sara, it kind of makes me sick do you remember on "one flew over the cuckoo's nest?" do you remember what they did? he turned into a shadow of his former self. i want this for musk, which is crazy. >> you want the legal system to
be of help. >> that i agree. >> you need to be an adult if you're a fiduciary he may not be. >> we've got to to go. sara, great to see you on this monday morning >> we just heard from bank of america. goldman sachs coming up right after the break. what if you were a global energy company? with operations in scotland, technologists in india, and customers all on different systems. you need to pull it together. so you call in ibm and red hat to create an open hybrid cloud platform. now data is available anywhere, securely. and your digital transformation is helping find new ways to unlock energy around the world.
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investors eyeing banks again we'll be hearing from goldman sachs. plus, the summer travel surge. unruly passengers. we're going to be speaking to acting faa administrator about all of it. and it's the battle of the bobs new reports about the rift inside the walls of disney details coming up as this second hour of "squawk box" begins right now. ♪ good morning and welcome to "squawk box" here on cnbc live from the market at times square. andrew is here becky is off
there was no indication, premarket, even after the sales number there really was no indication i remember on the ride home i said, okay, we're indicated up a hundred or so. when the market opened, there was 200, 300, 400, and it just added to that. i don't know how legitimate everything is, but it's adding that firmer tone not just in the stockmarket but also in crypto let's check out treasuries and see if we've got that -- any improvement in tin vhe invention 3.15 to -- that's still inverted oil is acting better, if you're worried about a slowdown it doesn't help when it's headed to back over 100 and crypto, as we mentioned, is strong today even ether is up 10%
bitcoin, 2,000. i want to get straight over to our good friend dom chu good morning, sir. >> good morning, andrew. good morning, joe. what we saw on friday was driven in part by the banks wells fargo added to some of those gains. let's talk about some of the moves we're seeing this morning, at least with bank of america. what we're seeing is fractional gains. that's benner than it was when we saw 1%, 2% of the stock the earnings come in below analysts' estimates, but the revenues were slightly better than expectations. they did fall shy of certain marks in terms of analysts' expectations, but they did comparatively well we're trying to go through some of the numbers here.
what you're seeing is slight positivity for bank of america continuing some of that trend from citigroup and wells fargo on friday. maybe that is one that could be due for some kind of attention bank of america, we'll keep an eye on that. not a straight up bank, but one that does consumer finance this is the company that does a lot of the kind of backing the loans behind branded credit cards at stores. if you go to the department store and sign up for one of their store branded cards, synchrony is behind those. they come up with better than expected profits and revenues. synchrony is up about 3.5% on some thinner volumes one other place to watch, there's a callout by analysts at deutsche bank. they've got a buy on some tesla
stocks they keep the buy rating and issue a short-term catalyst buy on tesla ahead of their earnings, which come out on wednesday. they think you could see some upside surprise, givenen some of the expectations out there that's the reason why tesla shares may be catching a bit certainly something to keep an eye on as we head toward this opening bell, the positivity being for at least the time being. >> an andrew, we're going to ke it business-related. you see this guy was approached by liv. >> benson? >> cameron smith he's 29. all the other guys who have signed up have not wanted it in a while. how much do you think cam could get from liv he'd get 200, i'll bet you, at 29 with his future, don't you think? >> i guess if you want to look at it from that perspective,
value versus sus growth, camero smith, he's one of the rising stars of the tour right now. >> that's what i mean. >> australian. >> how about scottie scheffler what would you pay for him >> if you're paying $200 million possibly for a phil mickelson or $150 million for a dustin johnson, here's -- have you guys talked about this henrik stenson thing a little bit >> a little bit. we don't have time to talk about everything what's the oldest expression in golf you drive for show and putt for -- rory burned every edge and was only 2 under the other guy was going dead center once again, that's what won that open. >> it is got to be so
frustrating for rory >> he's not going to liv. >> i never had a problem with people going to liv. my issue is you can't have it both ways. >> you tie the fist bump in. you tie it all together. there's no way you need to city on mes stay on message on this one. you can't get it. >> i think henrik stenson not getting his ryder cup captaincy because he's going to liv -- >> that's such a bummer to him. >> he talked about how it was a dream come true. he may not be able to do it if he joins liv. >> now we're going. joining us now to weigh in on the markets is kari
firestone. good morning to you. we've been trying to make sense of this market joe has been glass half full at the moment, i think. you look at citigroup on one side and jpmorgan on the other and you've got to make a call. which is it? >> today i think you root with the upside because city was an example of poor earnings, but i guess less bad than expected, and glow have the idea the fed is not going to raise the basis points it movies based on sentiment we saw on friday a very positive feeling about sentiment and perhaps we won't enter a severe recession. that can control spending perhaps. it can continue to be positive, but not too positive inflation in some areas is starting to fall we're definitely going to see an effect on housing.
we're seeing commodity prices starting to fall freight rates are down, shipping is down. there are positives to take away from that. if earnings can hold in here and not be a disaster really active to expectations, then i think we can maintain this rally for a while longer. >> karen, that's the short-term prognosis. we have so many different investors, technical analysts who say, okay, some might be fine -- and i see we have dogs as guests joining us, we appreciate that. dog days of summer. >> i'm sorry. >> don't be sorry. we love this it adds to the -- this is a live show that's what we enjoy help us with this. where are we now versus where are we in the fall i don't know if it's the conventional wisdom or prevailing wisdom?
but the dogs think the dog days are going to get a little more exciting, but not in a good way come september. >> i think she's excited. >> she's excited about the market i love that. >> market, very positive about the market she watches "squawk box" all the time i think we have two things to consider that's really important. one is covid what happens with covid in the fall and if we have some type of surge of a new variant and we start seeing closures again, you know, that's going to be the draw mat ing and prevailing force in the market. then is inflation going to become less of a problem we really need to see those numbers fall you know, that seems to be happening. but we cannot live with 9% inflation and have the markets rally through the fall months. i mean we're up5.5% roughly in the past month, which is great, but, you know, the market fell
24%. the naz damages with down 34%. we're at a critical opponent on the s&p. we're above the 3800 level we need to stay here, a little higher nasdaq is the same names life action zon, google, visa, those are stocks that really trounced recently, and they're starting to behave better let's see if we can retain that. that would be great in the next few weeks. >> what's the name of your dog >> perry. >> we want to thank perry for joining us. >> she's a fan sorry about that. >> no. send her our best. unruly passengers, pilot shortages, and high fuel prices, but summer surge all in the midst of this through air travel we're going to hear from acting
welcome back phil lebeau is covering the air show in england. hello, again. >> reporter: hello, joe. this is a real treat we have the acting faa chief here billy nolen we'll talk about the air show. you're here. i think a lot of people want to know about the latest on the flying in the united states. >> yeah. >> how do you see things happening? >> thanks for having me on as we think about summer travel, we're always keeping our eye on things i can tell you the majority of delays have been on the airlines themselves, but they're working hard to right-size their networks and crews overall our level of partnership, coordination, and collaboration is where we want to be, and it will serve as well going into the balance of the summer. >> we don't know what can happen especially as storms come through the areas.
are you confident we're past the worst of the delays? >> what i'm confident in is no matter what, we'll face it, and we'll do it in a collaborative way because that's the way we do it we'll work through it. wherever we need to put resources, we'll do that and as we look to the airlines, we'll make sure we address their needs as well. >> some people may look at this. they saw what happened in june and think. that's it. obviously things can change, but are you comfortable with the changes that have been made by airlines >> i'm comfortable from where we are with the air traffic controllers. we're on tap to hire a thousand this year alone. the airlines are working it is up to them to ensure that their networks can meet the demands. they want to arrive as safely
and efficiently as they can at an affordable choice our goal, it's a challenge, we're going to work through it. >> one of the hot spots is florida. we have a graphic we're going to show up there. it seems like everybody wants to add flights to florida are we to a point where faa or other regulators say, hold on for a scored, there's only so many flights >> great question. our goal is to see where our challenges is, where our pain points are we're not at that position like i say, we've added resources. we expect the industry to address the challenges as well we'll keep an eye on things to make sure they do. and to the extent we think we need to do something, we'll be very deliberate about that and move it away to make sure the public is move efficiently.
>> reporter: unruly passengers how much do you blame for what we saw on the mask mandate and whatever people may have in the way of feelings of the mask? >> we have a zero tolerance for bad behavior in flight we said bad behavior won't fly you saw we took a very aggressive posture to make sure we sought out and punished those with fines that were acting in an egregious matter. we have seen a you up ward trend, and that's good to see. every day we're looking across flights. i get a report every morning that tells me where we are with respect to unruly passengers we always keep our eye on. >> flying into heathrow is a real nightmare right now they've kept their flights is this going to impact u.s. carriers as they have increased
their flights to europe? >> we work very closely with our uk counterpart as i said earlier, all of these challenges even as we hear in this space and behind us, innovation we're mindful of the present our focus is truly on the future as i look at heathrow, they're working hard to get their network right. covid, everybody was sucker burn ed we're working through that challenge in a meaningful way and in a partnership oopd collaborative fashion. these things come and go you'll have summer weather you'll have winter weather our goal is to make sure we're resilient. >> a couple of quick questions bob boeings said they're ready to deliver dreamliners. i know you guys are not ready to
sign off on their inspection process. let me put it. were they speaking out of turn when they said they were almost there? >> here's what i say and what i say to boeing in all of our c conver conversations? >> it's a high standard we expect everyone to meet. we would say boeing or whoever's there, you must meet that high standard when the safety threshold is met, when we're comfortable boeing is there, that's when you'll see the certification. >> a quick question. they're targeting 2024, 2025 whelp you see these buzzing around, are we going to see the faa say you're good to go in 2024, 2025 >> nothing would excite me more. this rivals putting a man on the moon in many respects.
you look at the enoh vacz side of that. there's a lot of brilliance. but there's execution. we want to make sure it's executed safely. there will be winners and losers. >> some by '24, possibly >> we think. if that tlish hold is met, becwe could see that >> billy nolen, acting faa. coming up, we heard from bang of america. and at the top of the hour, white house energy adviser amos hochstein on the president's trip to saudi arabia we'll be right back.
get more with nature's bounty jelly beans. [ ominous music playing ] it's here. more flavorful immune support. are you ready? let's go baby! [ screaming ] what happens next? you'll know soon enough. box. china's major cities have ordered massive rounds of covid testing after two cases were discovered in tainjin. over 13 million people are
conducting citywide tests. they're recommending residents take nine tests over a period of two days the lockdown from march to may brought about a drop macao extends the covid lockdown as china infections hit a two-month high yesterday authorities ordered the city's residents to stay home, and all non-essential businesses will be shut down until friday. >> and the shanghai population >> total number? >> total number. >> i couldn't even begin. >> 26. >> 26 million. remember, new york city, 8 million. for a little context there.
>> yeah, exactly. goldman is out, and, of course, my machine is frozen. >> your machine? also known as your computer. i don't know if i can help you or not. >> i'm getting it right now. i'm -- i can give you the estimate let me see have you got it yet? here it is this is something i deal with constantly on this mac revenue, 11.86, earnings per share, 7.73. let me look over here. i still don't have -- 11.86 -- 11.86 billion -- hold on it's coming up
868 was the estimate 7.73 pretty clear beat. $8, the component. you can see it. >> looming higher. up 9 now >> the revenue number was also below what they actually -- they posted 11.86, and the estimate was 10.87, so these also above return on equity, 10.6%. book value, still trading lower. consumer and wealth management revenue, $2.18 billion investment banking, $2.41 billion. all in all, i think that's a clean number this could give a further tone of the markets as well kind of weird that jpmorgan was
a little bit disappointmenting goldman sachs has been disappointing over the years, but you don't expect them to do much better, w we'll see if anything was skewed. >> do you have the full report >> no. there was a drop in second quarter profit from a year ago, it says here, as the deal making slumped, weakening the investment -- >> you knew that was going to be the case it was a tough business when there's no ipos, spacs we're going to keep our eyes on all of this. >> 2.5% gainer it's probably helped the dow a little bit what are we, 322 we were up 250 now up 323. >> we'll have the full report and talking a lot more about that through the hour. still to come, former fed
vice chair roger ferguson is going to be talking recession with us. what the steps might be after we got the leak over the weekend. we'll see what roger thinks about that. plus, we're going to talk to boeing ceo dave calhoun. you don't want to miss that as well stay tuned you're watching "squawk box," and this is cnbc
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quarterly results from big wall street banks are offering insight on the state of the economy, and they're not all aligned. morgan stanley's chief james gorman says the economic environmental in the u.s. is complicated, and he adds a deep and dramatic recession is unlikely jamie dimon says despite inflation, he's not seeing consumers cut back on discretionary spending, but wells fargo's cfo says thinks will probably get worse ec econo economically citigroup's james fraser sa-- jn
fraser said she sees no signals that the u.s. is on the cusp of a recession. joining us now, a cnb contributor, roger ferguson. i think it was einstein who said time dilation -- everything is faster so last week we quickly got to 1% being a given, and in the blink of an eye on friday, i'm not sure what happened, but even after the ppi and cpi were both hot, we immediately saw something dropped and it got down to a much lower probability of 1%. what do you think caused that to indicate the fed didn't need to be quite as quick. what was it about friday that did that in retail sales >> well, i think a couple of things first, good morning.
i think on retail sales, they were a little higher than expected perhaps the core number was certainly lower, and so we'll want to take a close look and say inflation's starting to have an impact on consumers. you've heard from the bankers it's not yet dramatic. i think we've heard from a couple of policy makers, rafael bostick in particular during the course of the week had two different conversations, one in which he said everything is on the table. and friday he came back and said we don't want to upset the apple cart too much. so clearly his mind-set went to 75 basis points. i think he put all of those things together with the market. it was always a close call teeter-tottered back 75 basis points there's been some validation of that over the weekend as well. >> because the fed's mechanism
is so blunt and it's counterintuitive -- i mean the only way to do it is by slowing the economy -- is it a good thing it's very slow right now does that help the fed orchestrate a soft landing because maybe we don't need to worry so much about a severe slowdown or does it make it that the fed has actually more work to do in terms of weakening demand i'm trying to figure out i think it's good. whenever we have jobs, i think that's good. if the consumers stay strong, i think that's good. it gives the fed room to go up with interest rates without hurting the economy too much, or am i wrong on that >> i think you're echoing something the fed themselves say, which is the economy is strong enough to withstand the increase in rates. i tend to go on the other side of that, which is to say, yes, the economy is very strong, but we're also seeing that strength
play into wage increases that continue to be pretty hot and that they're probably going to have to do more than they currently imagined to get the unemployment where they want it and to get the economy to slow as much as they want i think the strength, which is on balance, as you say, makes it a much more complicated story because it tells them the steps they've taken thus far really hasn't done what they wanted, which is to bring demand closer to the supply, which is relatively constrained. >> which is crazy. if we want wage gains, we've been over that for years now it's almost as if we want a little, but not too much we want wages, but not too high. we want -- for years we wanted inflation. 10, 20 years, we want inflation. we need inflation. you want a little bit, but not too much if you were going to write a textbook on this, it would be
all nuanced for what -- i imagine people watching at home closely is saying it's a game of opposites on what you want to get. >> i think you said it very well you want a little inflation, roughly %. not too much now we're getting numbers much higher than that we obviously want stable job deflation over over time. >> we've wanted wages to go up for a long time. now they're going up too quickly. how can wages go up too quickly, r roger? >> i think you've seen it. it takes hold of people's economy in a way that are really pretty counterintuitive, so that's why your point of nuance may well be the head sflooin i
don' headline. >> i don't know if you've watched the banks. are some managers better at managing the risk? how do you explain that? jpmorgan, you hear one thing, something else from morgan stanley, something else yet again from citigroup. >> look. i think the banks tell us many different things as you point out. some, let's observe what the banks themselves are doing they're starting to build reserves, taking losses and building that. in one particular case, they decided to slow down, in fact, halt their buyback so they're getting themselves set up for a slowing economy when you look at what their cliernlt clients are doing when it comes to mergers and acquisitions, you have risk taking by corporate america. that's slowed ed down. what we see is trading continues
to be pretty hot with all the volatility that's to be expected. they're expecting that finally, those who have a big consumer portfolio are seeing the same mixed message mortgages are starting to slow down banks are announcing layoffs in their mortgage business. credit card business, so pretty strong all of these cross-currents are being reflected in what the banks are saying the overall conclusion for all of them, get ready for a bumpy landing. let's hope it's a soft landing, but the odds of a soft landing, i think, are pretty slim, and a hard landing is somewhat more likely, and i think you're hearing that from some of the bank leaders. >> and when do they stop the cut rates? do you think we have a year to go >> look, i think they're going to be cutting toward the end of
2023, 2024 but they've got to wait. >> all right nice a nuance, that's the word for the day. if you don't look at it, you can't think about it thanks coming up, we're going to dig deeper into goldman's earnings which were just out moments ago. even with the best stock, it's up this morning. plus, the silent feud inside the mouse house. we've got new reports of a battle over the board and transition of power. we'll discuss that in a few minutes as we head to break. take a look at the winners and losers in the s&p 500. "squawk box" coming right back
digging through these numbers and comparing them with the estimates. it would be on both the top and bottom line. they had a very strong ficc income that saw v 5% gains year over year that's largely driven to all of the volatility we've seen in the fixed income markets, commodity markets. they did have some low revenue in mortgage products that's had an impact on some of the products but huge beats in terms of analysts' estimates. the street was expecting 5.6 almost a billion more revenue just in that global markets group alone, which was 32% higher year over year. equity is higher, but not as thick. consumer wealth management saw a big jump in the quarter, 25%
higher here were some of the offsets. here's what we saw i-banking, investment banking, which we've seen across the board, 4% loyer. they say corporate lending was actually significantly higher primarily due to that gain from lending activities and higher net revenue from transaction banking, although, that was partially offset that largely has to do with overall market sentiment and the bond markets seattle management, 79% lower overall. that's a smaller business for goldman. they did say the provision for credit losses was about $667 million compared with a benefit of $92 million last year, and this is one of the key insight wes have into their thinking on the macro right now. they say that reflects both
partnership growth as well as macroconcerns. there isn't much color this this release that i can tell in terms of the overall economy, although, we should get a sense of that at 9:30 this morning when their conference call starts. >> good enough i don't know looks like maybe those shares are on sale. maybe they were on sale below 300. time will tell you've got the bluest of the blue chips down from what, 410 to below 300 this market really hasn't adjusted enough to the realities. >> but here's the question you have goldman on one side people are trying to figure out. if you have goldman on one end and jpmorgan on the other. what's really happen hearing . >> that's right. the issue that's plagued investors all year has been the idea, all right, we'll get a
benefit from a rise in interest rates. if they go into a recession next year, do you have to lower it? by the way, you have a double whammy of a recession. all of that has created this almost kind of tug-of-war effect on the stoxx we saw some really strong activity on friday goldman seems to indicate things could look better. right now the important aspect is where do they e see things going here. >> 426 was the high on goldman, minus 223. i mean it was down 42% no, that's not right that can't be right. is that possible >> down probably about 20 something percent this year. >> i did that quickly. 426 to 293 you like the stock it just, you know, i don't know. there you can see it 1
180 during the pandemic. what's cheap thanks, leslie. tonight on "mad money" david solomon will be joining jim cramer tonight on the new set. coming up, the battle between bobs and a "business insider" report claims that bob iger wasn't happy about the succession plan and calls s bob decision the worst business decision. and coming up, we'll have dave calhoun in just a bit "squawk box" will be right back.
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welcome back to "squawk box. tensions continue to drive a rift between the bobs at the company. insiders report iger was unhappy with the transition of power of chapek we are joined by our two guests. good morning to both of you. claire, i mean, the report was fascinating. it's fascinating, also, that it continues, this sort of bad blood. what's happening here? >> well, i think the story that i attempted to lay out is something that feels like it's
common knowledge in hollywood but perhaps news to everybody else it's this idea that bob iger was pushed by the boards to make a decision on success, and the board suggested that bob stay. bob said, no, i'm ready to leave, i launched disney plus successfully, i'm ready to step down, and the board said we'll make bob chapek cio. bob said, no, he should step up and be coo then bob iger has regretted about handing over the reigns because disney then enters this crisis where everything shuts down there are decisions to be made about furloughing thousands of people, and they were on different pages about how to move forward. >> take the story forward. we've been looking back. main there's bad blood clearly the board seems to have
chapek's back. we had the firing of peter rice. you just wrote about that. i don't know how much that plays into this entire dynamic, about who's in power. >> i think what's happening here is iger continues to shadow the chapek tenure. just the fact people were questioning whether iger might possibly come back for the company and take over for chapek until his deal was renewed -- it was renewed for another three years -- the question of what would iger do, the first bob do, that's been haunting him it's no surprise and annoying him. >> do you think it's over? i'm curious. >> it's not out. peter rice was someone in the company that was the head of television contenten and was
viewed as a possible person. now he's gone. chapek got rid of hit, and i was very deliberate. this notion that chapek is safe and he's free to act for the next three years, you know that's not true. if the board wanted to get rid of him -- he was the worst performer on the dow last year if he continues to lag, the board would have no trouble getting writ of him, despite the renewal. >> what was the renewal about, claire >> i think they feel they need to give bob a chance covid a an extremely difficult situation. we all hear of these ceos that get renewed, get jobs once they find somebody better the question is who are the
other candidates they look at, and why did they pick bob chapek i think the answer to that is he had a lot of experience in a lot of different areas, but he was light on experiencing content, and that is the thing that continues to dog him the folks in the content unit prefer bob iger for many reasons. i think to the stockpoint, it was at a two-year low. now it's a 92, 93. i think the story that will emerge moving forward is espn will be something they'll want to highlight they're said to raise the prices we think that's an area of the company they're going to want to highlight. the parks, also the margins will be much better than they've been because the prices are so up in such a big way, that's something
they'll high light the stock is not in a good place. >> hey, matt to me the big deal that still has to get resolved is the future of hulu what do you think happens? >> absolutely. disney is in an odd place where it controls hulu, but comcast still has a 30% stake, and disney has the opportunity to buy it in 2024 many people think disney will assume all of hulu or sell it to comcast or someone else. i have a feeling they're going to keep it they've got 40 million sub subs subscribers. remember, hulu doesn't exist around the world it's purely a u.s. property. when you're thinking of a company for that makes a lot of sense. >> claire and matt, we're going to leave it there. appreciate it.
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good morning our futures are pointing to a big pop for stock when the opening bell rolls just 90 minutes from now it's almost 1 thousand points. we have bank earnings. and goldman sachs, one of them, the stock's higher bank of america also we'll bring you those numbers. delta air lines is making its biggest order for boeings in more than a decade we'll speak with dave calhoun, ceo of boeing. the final hour of "squawk box" begins right now ♪ good morning and welcome to "squawk box" right here from the
market at times square joe kernen is here along with me and becky is off you're looking at the dow up 330 points, the s&p 500 up 38 points, nasdaq up about 134 points we'll show you treasury yields right now as well. the ten-year note is standing at 10.250 now at 3.0 on the five-year. the two-year at 3.51 we have the energy adviser joinings us, also boeing's dave calhoun and jay clayton. why folks in congress and families are allowed to per tase pate in it, we need to talk
about that let's get everybody caught up on that you can see shares are still much higher. that was goldman sachs, by the way. bank of america's estimates beating on the top line. dropping sharply that was something expected across the board just for investment banking revenues for everybody. don't miss a first on cnb krichb ter view with bank of america's brian moynihan and then the ceo on jim cramer. man santoli joins us good morning, sir. >> an electronic trading network
as they used to call it. andrew, yes, s&p 500 was benefiting friday, certainly, from the very strong reaction in bank stocks. a little bit of follow-through with that this morning here's the whole setup one thing you can say, the market has not made a new low for this downturn in a month it's not nothing i think that that's something people are going to be watching a lot. that's about the 4,000 we've been pointing to that for a couple of weeks. that would be one hurdle that would suggest they're mutting a little bit of distance interest the lows there we do see this overnight rally that seems like it's, you know, feeding off the notions of peak inflation, peak oil. nobody knows if it's true or not, but it seems like we're capitalizing growth versus value over the last month it's been a growth-led rebound at this point. you can look at this and say
that was the stuff that was hardest hit and maybe we have a slowdown in the economy. for now, that is working let's take a look at the na dak 100 versus bitcoin this goes back to october -- end of october of last year, which gets you right before the bitcoin peak as wilell as the nasdaq one they're a little closer here but a lot more distance has opened up here you see the nasdaq 100 hasn't really made too much of a new low in a lit while it's bouncing this morning there's no real magic rag owe, but it is worth keeping in mind. there's been some distance created by some of the firms that drive the nasdaq 100, andrew
>> so what are you making of the bounce this morning on bitcoin >> i don't make a lot of it torque be honest, except there's a better risk sentiment that's in the markets in general. you have the dollar backing off a little bit you know, look at some point, a lot of the kind of recaret and retrenchment in crypto toy-related funding and defy, it's worked its way through. we've seen a lot of bounces. it hasn't really stuck. >> what's your quick take on the distinction over the good news we heard from goldman sachs and jamie dimon last week? >> a lot of times you have one group that reports and it seems like trading and investment banking was awful.
jamie dimon prefers to look at the balance sheet and they're being driven bin regulators to build a big cushion. probably not pleased about that. i think you have to be ready for things to erode. everyone is dealing with this situation, consumers and companies. based on what the market's telling you about the possibility of decision. that's a big question for this market. >> thank you, sir. crude oil is up. let's talk about president biden's trip and everything else with amos hochstein. he accompanied the president last week. it's good to see you, amos
i have high hopes. i talked with you before i'm going to try to get with you and you're going to have to talk to the administration, and we're all going to come to a meeting of the minds to talk about things is that something you can promise me >> that sounds great, joe. thank you for having me. >> here's where i'll start it's almost bipartisan "the new york times," the climate crisis fades as real worries set in, inflation, endemic, et cetera then "the wall street journal," you have the opinion piece the utopian energy dreams are doing great economic and security damage. one of the four points that they make and one of the effects of this may be rushing the transition has been that its empowered dictators, and they're talking specifically about venezuela and saudi arabia
with that in mind, i'm wondering what you think about the latest trip did it make sense to do that or focus more on production >> wow, there's a lot there. yes, we need to address the current energy prices, and we're doing that, and i them quite ee -- respectively. you have wti and brent but we also have to -- i disagree that cheap. you look at the nefrm for the i states and the rest on the wofrld is trying to lower the demand the by createlingal tell actives.
i think the new york teams and "wall street journal" are putting us in a binary place with look at where we are. we had people coming on your show gasoline prices were at $5 with predictions on your show that they're going to go up to $6 and $7 we're now down for the average more than 60 cents lower if you look at the most common price today across the united states, it's actually $3.99, not $4.42 they're p extra. something larger than anything ever done before
the president got our u.s. partner to add another 66 build records. we reach over 12 million barrels a day. it's hard to accept that we haven't brought prices down as we have over a period of time. >> almost a lot of the decline, people would have immediately pointed to the fed and to demand die strulgs. there hasn't been any change really on the supply end just longtime, amos, china's building 172 coal power stations, vietnam, 11. we can do a lot of things.
wut the cooperation of the rest of the world these energy-hungry, the new sources are not going to affect it it it's. for bet ore or worse rj europe is over a barrel which have em bodened putin and allowed for the invasion of ukraine. what does this say about enabling dictators >> i think it's horrible to see the resurgence of coal we should be using funds drn. >> you're not going to power the grid. >> i'm not suggesting that
look, we have a short term -- short is not just this year. it's the next sex years. we have to mto ma sheer. they're reliable they've have not dog anything in terms of moves things off the grid we're trying to -- we're trying to address both the extreme markets we need, while creating a renewable structure for renewable energy and electric vehicles for the future. in fact, the trip to saudi arabia you asked about was not just about oil look at what the president was able to a chive in one straight
trip that would be worse. we have intell fwratd 89le we're going to have more in the in tirr grags a -- integration. they understand they need to invest in it that's going to take us significantly further to adding additional dollars into investing in the energy future and toopt to while a ta siem twiem we woep. not in coal fired coal plants.
where are quo going to be on. >> i a we have have to everything we can, other world series if we don't, it undermines others issues. >> i'm seeing conflicting storyings, wit was or questioned there was a saudi's perms on that the president right at the beginning of the meeting raised khashoggi and told the crown prince very directly his views,
tr thoughts on human riepts p. eh e he snooirks. >> i can tell you, i was there the president raised it. >> what was bmbs's response. >> i'm foot portfolio get into it it becwas a remarkable scene. >> first bump versus handshake versus doing knock -- doing that was there a handshake? >> it was a really silly
conversation it's remarkable to me that one of the most important meetings in the middlite. ho met withnine leader ennui and wet with the bank drnle this was app strae re something i should have mentioned before we had to warn yemen before. s and as a result of the diplomacy. to have a trip where the president's meeting with the entire middle east, not on pomp and circumstance but even nottic importance and for the froese look at whether it was a
something. >> can you take that message >> you're sayingdy c dy -- dec. you don't want to commit. >> you talk china and coal they're invflted ed -- invested the app. >> they want to make sure the i state leads. >> right we don't want to be a drop in the oepgs in terms of miss p when this want to reduce i mumsu accident want enices.
still to come. we're going to dig into the deep stock purchase made by the house speaker's husband, nancy pelosi. stay tuned you're watching cnbc for your consideration, the world's most innovative eyewear, turboflex. turboxflex frames are engineered with a 360 degree hinge disguised in the design. for maximum comfort, flexibility, and performance that stands the test of time. now, strength meets style. invest in the best, turboflex. find your retailer at turboflexeyewear.com
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new this morning delta air liness is going to be buying 100 boeing 737 max 10 planes the new boeing planes are the first for more than a decade we head over to phil lebeau who has a very special guest phil. >> thank you, andrew dave calhoun, ceo of boeing. good way to start an air show. >> not bad. >> 100 from delta, option for another 30 we know that those numbers, whatever you want to think of them, $13.5 billion approximately. when you look at that order, what does that say to you in terms of the commitment? >> well, it say as lot of things we always take pride in the
quality of our customers and what they do with their trade and what it says about our airplane and basically what they compete against. the selection of the dash 10 reflects that. and their faith in the dash 10 it's a persuasive taste across the board. >> we talked about this a couple of weeks ago we have to make a decision based on whether or not there is a waiver that is granted by congress for this new architecture within the cockpit for the notification of pilots how comfortable are you that that will happen >> we made our decision. we're going down on the dash 10 right to the finish line everybody is working on it if it didn't, i'd think twice. it makes itself. it's a powerful airplane it meets the mission objectives of all of our customers.
we've gotten quite a bit of a backlog attached to it we believe the faa will be there with us. >> are you comfortable >> we have to make our case, and it has to be persuasive, and we believe it is. >> let's talk about mass production you're up to 31 a month, and yet when i talked with people on this show, the one topic that comes up more than anything else is the supply chain. it's fla jail, and a lot of people are worried about it. not that it's going to break down, but that it's going to be hard to continue building on. >> it's absolutely true. you hear it everywhere yes, it applies to us. yes, we're at an average of 31 averages don't work very well for customers. predictability does. we have to be at 31 every month and consistently and predictively that we meade our commerce needs every step of the way. that's our focus now we'll get into rate increases
when we get into rate increases, but the supply chain is not readier them we talked about the issues we know ge is having a man issue. it's having to do with specialized components, right? >> yeah. the longer term supply constraints are out of this world, we know that. i think it will be for at least the next 18 months, and then we'll steadily work our way through that i do believe that's where the constraints are. the last thing i want to do is get ahead of the constraint so we can stay predictable with our customers. >> when you look at your macks that are built but not yet delivered. a good chunk are designated for chinese governments but the delivers have not begun. what's the progress in terms of
getting them delivered >> frustratingly slow. still have faith still support ur our chinese customer em day all day. we're maintaining relations and we'll need help geo politically. i know there was a deal announced with our competitor and sponsored by their country, and we're hoping for the same for ours i remain constructive, but we've been able to manage the risk because the demand profile is so high and so robust, we've been able to defer those deliveries >> we were talking with john cougar earlier he said it smells to me like the deal are you optimistic that relatively soon -- and i know that's a broad term -- we do see the resumption of two minor
deliveries >> i stand by on everything stan's said. he's correct, and i will not predict. it's a constructive relationship as everybody negotiation we submitted all the documentation. it's been worked through, in a good place, and so i'm just as optimistic. >> do you agree with the wide body demand? >> absolutely. again, going back to the beginning of covid, we knew the wide bodies would be the last to come out the protocols between countries with respect to covid are beginning to get ironed out. everyone's beginning to drop that curtain a bit so we can fly more the cargo market has been robust throughout that process. yeah, i see that coming back in a pretty big way i think we'll see the old days and then some. >> let me ask you about inflation, the interest rates, the economy. >> yeah. >> how worried are you right now?
>> i worrien the economy i live in a segment of the economy with a priority on travel, tourists, people wanting to see each other. >> a little insulated. >> i'm a little insulated, but i wasn't born yesterday, and i do worry about the broader economy. we're going to watch it day in and day out and try to stay ahead of it. anyway, right now, i'm enjoying the robust demand on the scene. >> but you have been on the block a time or two, and you have stalked with leaders in the industry what do you feel about it within the indiy cease that you deal with >> getting the right talent, getting it on the field, that's always the first because of those constraints and the inflationary impact it has and continues to have -- they worry about the medium term
implications of that so far they're not pulling triggers, but they're clois. >> dave calhoun, ceo of boeing your day started big, 100. >> yes. >> that's the big order at this air show back to you. >> phil, thank you for that interview. coming up, the impact on utility stocks from the summer heat waef. we're going to talk about it plus nancy pelosi's husband. we'll talk about wt athath means as well. stay tuned you're watching "squawk box" on cnbc
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welcome back to "squawk box" here on cnbc futures right now, 250 points for the dow after 650 in kind of a surprising session on friday so we're talking about 900 points if we were to maintain these gains by the end of the day. we'll see. it could be higher or lower. goldman sachs is up a lot. that's helping the dow, and boeing's up a lot. so kind of maybe the rest of the other 28 stocks not going quite as well because we were up 350 earlier. now we're at 250. >> we were, we were. meantime extreme heat is expecting to stress parts of the country. we have the latest
good morning. >> good morning. texas, kansas, oklahoma could reach highs as high as 102 to 110 degrees this week. it's hot it's taking its toll on energy you have all of them negative. then you have natural gas. it's a main source of power. elsewhere prices are soaring just in the past two weeks alone. that's why the state run power grid in texas has asked customers to conserve power twice last week alone, especially bitcoin miners who use a lot of electricity to cool their servers. >> we need to understand this is actually risking the abilities to provide service, and in a heatwave, that can be deadly. >> so it remains a balancing act between natural gas, wind, and
coal for utility firms all the while dealing with a dangerous infrastructure and dangerous heat leverages that are testing power grids like never before, andrew. >> christina, thank you. it's scary. >> the grid needs to be powered. >> but i it's also scary in terms of what's happening. >> it's hot in the summer, but we need to be able to provide -- >> we're seeing record numbers. >> the '30s were when most of the records were set, in the '30s. >> i think if you look across the globe -- we could have a debate about it. >> you know what they had to do in australia they put price controls, rolling blackouts. it's going to happen in europe too. people who write in, i've got an electric car and plug it in. yeah, you plug it in.
>> look at bitcoin think about how much energy that takes. is it needed no it goes to the issue. let's talk about stock trading by members of congress it's been understood skroot i all year last month pelosi's husband bought $20 million in nvidia here to talk more about it is former s.e.c. chairman and cnbc contributor jay clayton, apollo's lead independent director jay, we've talked about this ad nauseam. why is this allowed to happen, and doesn't it just undermine the credibility of congress and our elected officials? >> yes, andrew look, this is a recurring issue. it comes in the spring we talked about it
there were proposals to address it, but really nothing has changed in the last decade with regard to the stock act. there's a general sense there's a need for improvement here. one of the problems is when the issue arises, the proposed solutions are very blunt, like an outright ban on stock holding or stock trading that's not practical or workable when you have spouses, people who have had careers and the like, but there is a lot that we can learn from the executive branch restrictions, the private sector, the type of restrictions you would see cnbc have. the room for improvement here is large, but it doesn't involve an outright ban on stock trade. >> someone has said to me, why hasn't congress moved on it? why hasn't congress moved on it? look who's in charge of the house, right
>> look. i think this is one of those things where a sensible bill, a sensible coalition could get together why there's intransigence in congress around something fairly obvious, this is just one of many examples. >> do you think this nancy pelosi should recuse herself completely from negotiating on and voting on and participating in the c.h.i.p.s. act? >> look, andrew. i don't think that you're going to have a single person solution for this, so i'm not going to -- >> this isn't a single person solution this is to say, you know, in situation where these things take place, whether the spouse should recuse himself or not. >> yeah, look. i think you can handle this issue without causing confusion. we don't want our elected
officials, particularly leadership, to be absent from debate you can do things like window periods, things like jay powell did with the fed i make my investment decision, and 10, 20, 30 days later it gets executed so i'm not trying to market time or time a bill. there are all sorts of things you can do, but it does require planning and some restrictions. >> fair enough can we talk about esg? you and i have had this conversation for a very long time but there seems to be a shift in terms of how that conversation is playing itself out. >> yeah, look. i think there's two wakeup calls going on one, we'll just say is at the national policy level that climate policy is not independent of energy poll e circumstance national skurt. i just heard joe's conversation. the climate policy is integrated with all of those. you can't have that unless it
takes into account all of those. i guess it's taken a hot roar and pandemic ub and supply chain issues for us to come to grips with that, but you have to have an integrated climate policy, not an independent policy. what does that mean too the inslepter. ask yourself, what am i getting out of the fund? how does it match up with my policy my investments. first of all, why are you doing it are you doing it because you want to feel good? that's a fine reason a lot of people don't want to invest in tobacco, kohl, fossil fuels. that's a fine choice okay are you doing it because you want to drive policy now, the idea that you can drive policy through capital allocation, i think the macroive
we just talked about, you look at that. or are you trying to look at energy or some other area from what you consider to be old technology to new technology, trying to get ahi of it. that's a very active strategy. the idea that you can take the index, the s&p 500 or the like, and pull out different names or weight different names and get a superior return, i think there's a lot of academic research on the like who says you're more likely to get an inferior -- >> let me ask you this let me ask you this. there are a number of esg or climate-focused funds. by the way, tvg partnered with frank paulson. i don't believe they're putting that money behind tbgtpg becaus
they're trying to drive policy they're putting their money there because they think that's where the money is going. >> that's an active investment strategy, very legitimate active investment strategy. one that is attract active you know, the opportunities are significant. that's different from saying, you know, i'm going to favor one industry over another, give one capital more those are two very different things. >> we had an interview with tom cotton last week and he has aggressively criticized blackrock, claimed that they have a monopoly, they're using their power effectively to push industries into places they otherwise shouldn't. effectively you could argue he
threatened corporate ceos who make investment decision around climate or other issues. what you do think of that? >> look, let's take a step back from particular issues and look at the concentration of voting in corporate america it's high, okay? there's no doubt about it. it's driven by the success of index investing and low costs. it's driven by a lot of great things that have come to retail investors. what we're going to see, and there should be a debate around this, how much regulation should be be around the concentration and voting the s.e.c. has taken a position around proxy advisers and de-proxy advisers and do have a hand in voting decisions this is the area where there is a congressional focus. any time in america when we have too much concentration and power
in one place, we need our elected officials to be looking into it. >> what do you make of the idea it's almost sadly like our democracy. most investors don't vote. >> that's right. and the question is are those who they've entrusted to vote for them, are they voting in the best interests of those retail investors? are those retail investors return oriented? what's their time horizon, or are they interested in other things now, those can get overlapping and confused by retail investors do need to be asking, what are you using those votes for. and one of the questions is should they get a choice as to who gets those votes should it be the asset manager, or should it be others >> jay, one of the things -- and you've seen criticism on both
sides. we've used blackrock in this the truth is they get criticized on the other side. when it comes to their actually voting record, they get criticized because they say they're hypocritihypocritical they're going after companies or say they will after climate issues shorthand it. they don't because the truth is i think they're looking very directly at the investment thesis. >> let's take a step back. corporate votinging, access to the proxy, shareholder proposals, let's just face it. it's become political. there are political issues on those agenda that we're asking shareholders to vote on. any time you have that on the agenda, you're going to have a moelgg people are going to take data and try to push it both ways what i like to do is take a step back how do we actually affect corporate level policy in america that's been incredibly
successful we do it through electing board of directors who competent, experienced, and have a diverse perspective. i think we're going to start driving people who are thinking about do we have a board of directors that has on it the views that are important to me, including, you know, are we accommodating social/environmental i've never seen things run like labor policy, long-term and the like, that aren't front and center. >> jay, we always appreciate talking with you about all of these issues and more, and thank you for your per speck tissue this morning. >> thank you good to see you. >> good to see you. coming up, jim cramer's first take on the trading day. it's a very big day for "mad money. we're going to talk about all of it stay tuned you're watching "squawk box" of cnbc
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we turn to the new york stock exchange jim cramer, "mad money" from nyc. kicks off tonight atnew york stk exchange, a big day for jim cramer, kicking off tonight at 6 p.m. eastern time with goldman sachs ceo david solomon. that should be interesting. jim, you are at home. this is a move for mad money, but not a move for you, you were there every morning. >> i have been here for 40 years, this is where i started. i feel like it is home. i feel like i can get more relevant guests. it is a lot easier. i want the closing bell, it has always been good, but we want to kick it up a notch. i have an unbelievable staff here. an amazing team.
mark kaufman, all the way down. they are fabulous. they have been working around the clock to make this work. i'm very proud of the team. >> that should be interesting. >> you know that i love them. i hope he brings it. >> try to bring him out of his shell, and see if you can get real comments. what happened on friday? i don't want to just be optimistic because i like it, nobody loves bear markets. i think that so many stocks are down so far that i am not sure that we need a big capitulation. you have been saying the same. that was impressive on friday. what caused friday? what really happened? nothing really happened. i'm with you. >> wells fargo, it was an amazing quarter. they made so much money.
sydney blew me away. when is the last time that we had a number from citibank that was extraordinary? it made us feel, don't stay with j.p. morgan, take it from morgan stanley. we are seeing unbelievable bank numbers. people have to accept the fact that the consumer is so strong. okay, the fed is trying to slow down the consumer, but we are not seeing recession. we are seeing what we need to see. a legitimate slowdown. ultimately, a slowdown in inflation. i celebrate this. i don't root for a recession like so many people. they look at the curve and they say we will have a big recession. you and i both know that these stocks reflect a lot of negativity, and not a lot of positives. >> i am still struggling with -- when we are dealing with inflation, the fed will have to do its job. do we want the backdrop to be
really good as an economy, or a really bad economy? when we have good jobs numbers, and good retail sales, and it looks like the consumer is doing well, it gives the fed leeway to raise rates, and maybe hit that soft landing sweet spot easier than if we were in a bad economy, which is what the stock market -- that is the signal it was sending. that we were almost in recession, or one was imminent. i am not convinced that that is the case. >> the stock market believes that the price of loans is shooting up. it is the opposite. steady loan growth. the consumer is very strong. maybe they cut back spending, retail sales from when people dove into it. they realized, after this it is not that strong.
powell will do three quarters. there will be no emergency raise. that is what we want. we just want steady as she goes. this morning, from raytheon, the ceo said we need more engineers. we cannot make it happen. it is industrial. industrial america. >> in september, i hope we look back and we say we did it again. we had a chance to get the stocks down 40 and 50%, but here we are. we did not do it, but here we are. once again, we missed it. >> last week was a seminal week. that is what you have to think about. stocks are overshot on the downside. you and i know that. there are a lot of strategists that keep waiting for armageddon. the lle erwi bno armageddon. >> i hope you are right, jim. >> think you guys. >> no games today, no games on wednesday. what you gonna do?
you will have to watch netflix. >> yeah, maybe netflix ♪♪ take the world by cloud. accenture let there be change. the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility.
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friday. joining us is victoria greene, the chief investment officer of private wealth. victoria, i will not ask you to give us an all clear, but are you more positive about equities after friday, or not? >> that was a false flag, i need to go on record disagreeing with jim cramer, but there's too much pressure on the consumer, your trust starting to see that rise. you hear about loan losses. i am happy that people are making money but that was not the all clear. we are still playing defense right now. >> that would entail selling into strength for you? >> we have been holding tight, you have to got a go with what you've got. it's terrible to sell in a down market. we were never into anything speculative. we are looking at quality. we are not the buyers of these steps. we have a bottom in. we never
saw capitulation. sometimes the most dangerous words to an investor is that this time it is different. this time we don't need capitulation. we will rally off. if you look at the pressures, you still have inflation. you have a hawkish fad, and a dislocated labor market. you have all of these headwinds, and it will be very difficult for companies to grow profits this year. >> i hear that a lot, obviously, that is what -- a lot of the things that you had mentioned are things that we all know. i am trying to find out, sentiment wise, as i had just said to kramer -- i wonder if we get to a point where we kick ourselves and say what did i want? what was i asking for? i hate to bring up netflix, but people love it at 800, they don't want to under 200. disney, did you see where it was? goldman sachs is down one third. the greatest docs in the world are down over 30%. even 40% for some of them. how are they not on sale at those levels?
>> sometimes it is a value trap, goldman and disney, you can argue that their revenues are protected. netflix is under a lot more pressure and competition than it was before. some of it is a fundamental shift. netflix is going to realize they made their consumer base angry. there are like seven streaming services. netflix is the first in the past, but now they have more competition. >> that is what took it down. that is what you wonder area to victoria, we have to run. join us tomorrow. make sure you are here. >> i will be here. a special morning at the new york stock exchange, kramer and our family are bringing the opening bell, as mad money debuts its new set. we will celebrate with jim and give you a peek at the set later this hour. good monday morning, i am with the jim craver --