Parade meta takes the big tech baton. Were going to look at the key metrics you need to watch. Boeing expected to report in just over two hours as the Aerospace Giant continues to face a bumpy road ahead around production issues and succession questions. Its wednesday, april 24th, 2024 and youre watching Worldwide Exchange right here on cnbc good morning welcome to Worldwide Exchange. Were coming to you live from cnbc london. Thanks so much for being here with us. Lets get you ready for the trading addai head we check on the tech stock futures with the s p and nasdaq. The s p has seen its best day since february the douceting its streak to four straight days. Taking a look, a bit of a mixed picture. The s p solidly in the green right now. Investors getting more fresh momentum with another big day of earnings on tap. We get results from at t, ford, boeing, meta, and ibm just to name a few the bond markets slipped a bit durable goods data, thats out later this morning right now we see the benchmark 2year pulling back. It pulled back just about six basis points this morning. We also want to get a check on oil. Data showing a surprise. A positive sign for demand take a look at the oil demand. We continue to see oil trading lower. Wti, the u. S. Benchmark trading evenly at 82 a barrel brent crude at about 88. 11 per barrel thats your morning setup. Now to your big money mover today. What is it were talking about tesla. Its soaring despite a dismal start to the year. The First Quarter profit pluchlking revenue dropped 9 , representing a vehicle decline in delivery r. Margins were cut by more than a half from a year ago tesla says theyll speed up production of models thats something elon musk talked about on the earnings call. These new vehicles, including affordable models, will use aspects of the next platform as well as our current platforms and well be able to use the same manufacturing lanes so its not contingent on any new factory or massive new production line. It will be made on our current production lines much more efficiently. So elon musk also sharing new details about plans for a dedicated robo taxi ridehailing network. It would operate its own fleet and let other services use their own, which he compares to airbnb tom, good morning. Good to see you. Looking at shares right now, the shares are off despite doubledigit misses. You say the actual earnings number, theyre just background noise. Theyre not all that important i want to ask you, the model 2, is that the gamechanger is that whats pushing the stock higher this morning . 100 . People like me who are bullish on the stock can finally take their paper bags off their heads. But, yeah, basically all the expectations coming into the quarter, there were some news articles coming out of reuters they were going to shelf it. There were fears they would not have any new models. Not only is the model 2 happening, but it ee actually going to be accelerated by making the cars at existing facilities instead of new facilities to be built so a lot of those fears that came into the print that were so people were so worried have completely evaporated. If anything now, folks are looking at an accelerated pace. So, tom, i want to ask you, because the way you phrase it, the fact is in your mind, building the model 2 on an existing platform, thats a good thing. Others have said thats not really a good thing because youre not creating a unique vehicle. Very quickly, thats fine in your mind . Yeah, i think so because for me that car was never going to be about its own profitability for me its about selling economy. We just need more teslas on the road. You dont have full conviction on that one but youre like, eh, its okay to be fair i heard executives say to be competitive with china, they have to strip out all the bells and whistles and they would be popular. Soundses like elon musk might be taking a page out of your book. You are a bull it implies more than 75 upside. You are more bull usual. Give me a sense when it comes to the model 2, to the robo taxi, the optimism of the business whats the most important thing . 60 is efd. Mega packs is about 10 and less than 10 is actually the cars. The model t is a gamechanger but its your thesis for a 294 price target no, no, no. The car itself is not a gamechanger, but the fact it can sell as an ev, that makes it a gamechanger now the software is proven. Got it. Its increasing the capacity okay, i understand there i want to get to robo taxi so our phil lebeau has been very vocal about selfdriving being many years away. Analysts have said were years away from that some have said a decade away from that. In your mind, when is it re realrea realistic to see these robo taxis on the road. Will they be full ride or in a loop its certainly easier to have an Autonomous Vehicle go in a loop or track and we see that more for industrial and supply chain. I want to differentiate sfd from robo taxi its an amazing product on the road where youre driving the car and it assists you robo taxi, i do believe, it will be 100 level 4. It is far away from now, no doubt about it a decade away. Theyll have to reengineer themselves to allow it to happen but make no mistake, theyre happening. The reason for my bullishness is it isnt going to happen right around the corner, but its going to happen way down the road its a big transformational event you discount back the revenue stream and the Software Business and you get tremendous value from this product. You know, just for the audience, tom, you said level 4. Not level 5. Level 4 is the highest what does it mean from a practical sense . Level 5 is like science fiction. Get that out of your mind. Its not going to take you anywhere you want to go. Level 4, its driving you, on the road, on a dedicated path. Geofenced. This is a business network, not the scifi channel, tom. Great to see you tom narayan from capital markets. Time for a look at your other big money movier were going to start with shares of mattel after they reported narrow less than expected profits. Mattels ceo telling our jim cramer last night he remains very optimistic about future growth opportunities. Were executing on our 1 billion dollar Share Program we expect to outpace the industry in game share and reaffirm guidance for the year, and the plan for the year is to emphasize strong cash generation and return to top line growth in 2025. Shares of visa increasing by 8 processing transactions by 11 the company also reiterating its full Year Revenue Guidance shares of visa up just over 2. 5 were looking at shares of texas instruments. Revenue guidance coming in above expectations as slumping demand for analogue and semiconductors finally showing signs of easing. Sales did fall from the prior year shares of t. I. Up 7. 25 . Time now for our top corporate stories. Silvana henao has those. Good morning. Good morning, frank the Senate Passes the tiktok ban bill the bill now goes to President Biden who said in a statement immediately after the passage that he will sign it today once signed, tiktoks Parent Company bytedance would have nine months to sell, though, that could be extended tiktok has signals it will file a lawsuit to block the legislation, and shares of several social media competitors getting a bump in the premarket on the back of that development. Meanwhile the approval of that tiktok bill coming as part of a larger package that will also provide billions in foreign aid. That includes roughly 60 billion for ukraine aid, 26 billion for israel, and 8 billion for taiwan and indopacific security. President biden says once signed the u. S. Should begin sending weapons and equipment to ukraine this week, frank. All right, silvana, thank you very much. Coming up, weve got a lot more ahead on Worldwide Exchange including one word investors have to know today first, tech catching a fresh bid from investors as of late. What famed investor howard marks told me about the continued caution around the max 7 that he has. Plus Fresh Results on boeing details on what has the Aerospace Giant in hot water with regulators now. Later, lets make a deal the acquisition on the ibm agenda to help it rise in the clouds we have a very busy hour ahead when worldwide exchge t returns. Make sure you stay with us were you worried the wedding would be too much . Nahhhh. inner monologue another Destination Wedding . . Why cant they use my backyard with empower, we get all of our financial questions answered. So we dont have to worry. Empower. Whats next. Business. Its not a ninetofive proposition. Its all day and into the night. Its all the things that keep this world turning. The gotos that keep us going. The places we cheer. And check in. They all choose the advanced Network Solutions and round the clock partnership from comcast business. See why comcast business powers more Small Businesses than anyone else. Get started for 49. 99 a month plus ask how to get up to an 800 prepaid card. Dont wait call today. Welcome back to Worldwide Exchange. The nasdaq higher for a second straight session with a rally largely being led by the 2 gain from the max 7, which got an even boost after the close with the surge in tesla i spoke with famed investor howard marks who runs Oaktree Management despite enthusiasm for tech this week, he is still sounding a note of precaution. I just think in our business in general, there is no room for certainty as twain would say, and that extends to the magnificent 7 as well. I must say when i was listening to your question, every bubble ensues from widespread conviction everybody believes, a, they bid the beneficiaries of a up to the move it turns out its overdone. All right lets get reaction to that and discuss the broader markets. Hannah, good morning from london good to see you. Im going to get into it what did you think of howard marks comments . I know you, too, are looking for cracks in the mag 7. I think the really important thing for us here is the re reality. If youre looking at the max 7 who performs well in the past two years, may not be the best performers Going Forward weve seen cracks in a number of names including tesla. One can find expectations from here if you look at the expectations if you focus on valuations and durability of Earnings Growth. So as you say that, by the way, howard marks was responding to a question i asked him about a stat we showed on the show yesterday that the max 7 in our forecast received 40 year over year Earnings Growth while the rest of it is expected to see a 3 decline as you say that, how are you not deeply into the magnificent 7 with the rest of market seeing a decline . Well, we do hold microsoft and alphabet weve been longterm beneficiaries in the growth of those companies. If one looks outside the magnificent 7, it doesnt have to be the stock that has Earnings Growth here if you have a look at it, maybe youre not seeing the same levels i think if you have a chance to look outside of those seven, theres some great opportunities and companies that are not getting the headline, havent been dominating the market to buy into the more reasonable valuations and still get good Earnings Growth. You know, speaking of, you actually talked to us in your notes about unitedhealth care. Im looking at the charts though month to date, its down 1. 5 . You say this is a valuation play just explain this to me with this kind of stock decline is there enough of a valuation discount in your mind to accept this kind of a stock decline from a company like this this is a great question, frank, and, actually, unite health group is a leading discount theyre trading in almost a decade, about 7 cashfree yield. Its showing actually 17 compound Earnings Growth over the past decade, which is far, far in excess of your average company. If you think about the scale of barriers entry and finding the name simply because its out of favor at the moment, theres a bit of political noise going on, combined with the valuation and the earnings potential of this company, indeed, its done exceptionally well long term we think its pro e providing a very good entry point into this name. All right hannah goochpeters. Weve got to leave the conversation. Coming up on Worldwide Exchange, oracle setting up ofed in one area previously pril motivating the company to relocate when Worldwide Exchange returns. Returns. Stay with us at enterprise mobility, we guide companies to unique solutions, fr of mobility experts. Because we believe the more ways we all have to move forward. The further well all go. At Morgan Stanley, old school hard work meets bold new thinking. To help you see untapped possibilities and relentlessly work with you to make them real. All right. Welcome back to Worldwide Exchange. Boeing is looking at claims by one union that the giant retaliated against two pleas who argued the company should reevaluate its Engineering Work in its 787 and boeing jets they have zero tolerance for retaliation and encourages employees to speak up when it has an issue. Meanwhile theyll give Spirit Aerosystems money to continue they continue their talks. The values come ahead of boeings release investors will focus on production issues in the wake of that early january door plug incident involving one of its jets the stock is down 30 since then theres also management questions after Ceo Dave Calhoun announced last month hes going to step down this year without naming a successful. Im going to get into it you have a price target of boeing for 260 you say in the near term its going to be changing what do you say about a company that has not found its new ceo. First of all, thanks for having me on the program you hit on obviously a lot of the points of uncertainty that were currently wading through the buy rating is really a function of where the demand equation sits right now. If you look at where backlog is, we actually expect to hit an alltime high in the First Quarter of 2024. So while were currently dealing with what we deem to be temporary production challenges, the demand for airlines is very strong boeing continues to have a dominant position on wide bodies, and we think theres an opportunity for them to start gaining more share in narrow bodies over time our view has been you have to look past the, you know, sort of this quarter or the next quarter and the quarter after that but the furtherer you go out in time, the production numbers start to improve you know, the backlog for this company is well north of half a trillion dollars so theres a lot of potential with this organization. Okay. Thats quite the narrative youre saying lets discount this next fiscal year pretty much and look beyond it. I want to ask you when it comes to the stock price, do you think boeing has bottomed and if they require Spirit Aerosystems, is that going to bring a positive to investmenters or a negative i think right now were in the process of looking at negative numbers i think theres potentially some more to come after the First Quarter earnings, but then youre probably getting into a position where expectations are more realistic and then it becomes a potential for them to outperform you know, the spirit acquisition comes up a lot the reality of it is relative to boeing size. Its not tremendous. Right now the complexity is trying to figure out what to do with the airbus assets and airbus facilities and thats leading to a delay in that process. By the way, when you say trying to figure out with airbus, its trying to separate out the airbus system as they try to purchase it youre the aerospace expert. Walk me through this were talking boeing, a company with serious production issues looking to buy a company with serious production issues and then separate from one of its largest customers. Thats a positive . Is there a way that can be positive the better way to look at this potential acquisition of spirit is boeing needs to get its arms around the supply chain and the largest supplier is spirit air systems and theres been the quality for years by bringing that inhouse and essentially consolidating its supply chain, that would demonstrate theyre taking an actionable step toward improving the supply chain thats the way were looking at the deal now the airbus portion of it, obviously it introduces a lot of complexity. Quite a bit of complexity there. Something else that seems to be a bit complex is the ceos complex. Ceo dave calhoun announced hes stepping down. This is a big and integrate company to not have a clear leadership or clear Succession Plan. I think they did have a clear Succession Plan and it changed Stephanie Polk was indicated to be the next ceo. I think that is changing in terms of an external hire, and that makes sense the way were looking at it, thats the big catalyst were watching i think once we get the new ceo, things will start to come. By years end, it will be faster i think the investor favorite is larry cole so some uncertainty there. Until that clears thats sort of the rationale why we think it will be choppy. If it does end up being an internal target, does that change your rate yeah. If its an internal candidate, youll have a more difficult rhetoric for sure, because i think the idea is you need to think about the process toward, you know, fresh start and a fresh look. I think a lot of people would like a fresh start, bert Ceo Dave Calhoun is going to be coming up on cnbc to discuss earnings hell be joining cnb can exclusively at 9 00 a. M. Eastern. Coming up, luxury letdown. The concerns that kering has well be right back after this break. Lifes daily ba