good tuesday morning, live from post 9 at the new york stock exchange goldman sachs will be here why the fed is on its way to normalization but nowhere near nirvana. first on cnbc interview with marriott ceo a beat on earnings and higher outlook as international travel returns. that stock is up 35% this year and later we'll have a chat with stephen macmillan stock taking a bit of a hit after results apparently fell. covid-related sales were one of the reasons. >> we'll start with the bull call of the morning. oppenheimer raising s&p target 500 points from 4400 to 4900

now street high. john correctly predicted the rally last year. joining us at post nine. great to have you with us. >> great to be here, melissa. >> what was that moment when you said, i have to go to street high of 4900 >> it occurred a few weeks ago we held back, waited for economic data to cross the transom, whether it was last month's jobs or the prior month's jobs whether it was the continuing claims or whether it was initial claims, what have you. and then the gdp number, i think, really added to confirmation we saw last week that there is strength in this economy, that the fed has been remarkably sensitive even though on a nominal basis the hiking has been aggressive when you consider the inflation, dangers to free money of the system where bond issuers don't pay for the privilege of borrowing money. this is a normalization process. a big shock generationally to many people who were not in the

markets in 2008 and may have been this high school are now in their 30s. but the reality is, for those of us that have been here since '83, this has been -- you know, this is a normalization is what we see really here and we think the fed will calm things down. we think powell has done a remarkable job and the irony is, the overstimulation by both the fed and fiscal policy of two administrations is likely helping the markets, the economy, the consumer, labor to weather the hike cycle remarkably well. it's reflected. >> you cut it and you're happy with the higher multiple willing to accept it when you're at 4900 now. how do you accept it >> when you look at a multiple, especially at this type of point where you're in transition in what is a recovery market from a

bear market, you've had declines in earnings coming out of it inevitably if analysts are looking ahead for the next 12 months, that -- a price target doesn't look bad and the multiple looks bad because we expect earnings will work off that high level. >> '24 is going to be back than 2020 >> yes 2030 was optimistic for this year so we shaved it a bit. >> is there any concern about -- we talk about the fed's last mile this little bit more in terms of rates. we know we're much closer to the end than we were just three months ago still it could be rocky. there could be hikes along the way at periods where we're not expecting them does that matter this is actually very tough sledding for the fed the final mile and you're going all in, bullish? >> the thing is, we're

intermediate to long-term investors, as you know in effect, our goal is beyond. we feel comfortable with this 4900, whether it's recognized by year-end specifically or into the first quarter of next year that said, the market is usually late in the cycle of a hike cycle. the market usually gets it the fed is not trying to destroy the economy or the markets it did it in 1994. '94, tech dropped, i think, 20% in the first quarter it was up 20% for the year by the end of that year go figure. in '95 the fed actually cut. that was a different story it was good for the markets as well as equity people we look a lot at the fed the leadership is important. the bernanke legacy, the advancements in technology that creates efficiencies for business and the consumer to navigate tough periods we think we're coming out of the

woods. we're making good progress and the light outside is not an oncoming locomotive with sunshine. >> we get two more inflation rates this month we get an unemployment report. you're expecting things to be benign. >> we expect benign. if they're not particularly benign, we expect the market would be able to digest it in fairly short order. >> what does that mean >> that means you can get a haircut, but it doesn't mean we're looking for a correction at this point. as long as we continue to see the overall resilience we're seeing among the companies reporting for the second quarter. we see the fed being remarkably -- to have done that skip, skip to my lou, what the heck was going on there. the dialogue going on in the fed is terrific. the communication. of course, the market never believes the fed never has.

doesn't matter if it was greenspan or volcker powell does not have to be volcker because he did not have a predecessor who let inflation get embedded seven to eight years before volcker got the helm of the fed. the fed was behind the curve and they made great strides at correcting that error. we think it's showing up in the economy, the markets, the consumer small business holding onto employees like they might not have in another cycle. >> john, great to speak with you. thank you. >> thank you >> let's turn to chips amd is getting ready to report its earnings after the bell. the stock is up 76% this year. kristina partsinevelos has a look ahead to that report and how many times do we think they're going to talk about a.i. >> if we use intel as a barometer, intel mentioned a.i.

58 times for amd's q2 quarter we're expecting lackluster results due to weak data center sales and a slow gaming market let's take, for example, intel latest report shows continued inventory levels and the wallet share is moving to more expensive a.i. chips and away from traditional servers those traditional servers, known as cpus contribute 26% of amd's total revenue. of course, there could be exposure that's much of the reason why we've seen amd stock pretty much flat over the last month compared to the over 5% uptick in the smh and the stock's etfs. amd could differ from intel post earnings in two ways one, cpu market share went up in the first quarter where as intel went down. secondly, amd is set to launch its own a.i. in q4 it has orders from microsoft as

well as amazon that a.i. chip alone could be seen as a catalyst for more bullish estimates for amd if it's launched on time. there's some concerns about that that means amd investors will have to look past the near-term weakness, and look towards that 2024 a.i. dream for amd. guys >> thanks. kristina partsinevelos marriott with top and bottom line beats also raising q3 guidance the cfo will be with us next on the back of the results. apple getting through price target hikes ahead of the quarterly report later in the week we'll break those down your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

we're watching sofi after nearly 20% jump yesterday. kbw cutting it to a sell saying valuation overprice. they raise it to $750 a share, a 30% drop from here they expect growth rates to moderate in 2024 it's just to a value at this point. let's get to marriott, the company beating estimates for the latest quarter we have a lot of trouble with cameras. strong growth overseas the big story with revenue increasing 39% in international markets the stock at an all-time high and up more than 35% for the

year mgm hitting 52-week high in yesterday's trading. joining us is marriott's cfo nice to have you here. >> nice. great to be here >> and have you with us. wouldn't think i would want to start on a.i. but i will technology has become a very important part of your business. our understanding is you're transforming the way you engage with your customers in all sorts of facets. how are you doing that and how conceivably is that adding efficiency or increasing your margins over time? >> so, it is a really important part of how we think about working with our customers and our associates in particular we're really doing an overhaul, if you will, of our reservations, property management, digital channels, everything that really is required in today's digital commerce world that will take several years and will really be a new way for us to be able to communicate. as you know, it's important to communicate with your customer,

not just during this day but before, during and after and really having marriott bonvoy do that through our channels is critical when i think about a.i. is another component on top of that which we're using and being thoughtful about it. at this stage we use it more in the back end for more research on marketing and things like that in our space at the end of the day it's very much about the person-to-person contact with our guest. certainly as it relates to doing better research and being able to do things quicker and faster and more accurately, we're using it but we're also -- we're taking it one step at a time. >> yeah. so it's going to play out over time as is this whole digital transformation you're talking about. give me an example of what it's going to mean for the customer in terms of how they interact with marriott now versus a few years. >> one of the easiest ways to think about this is how you

shop you probably are traditionally used to the classic of where would you like to go well, we want you to be able to shop any way you want to shop. i would like to find great places to bike i would like to find great places to snorkel. i would like to find great places that can handle my group. it's dramatically improving the way you research your travel and how you execute it you would like to know you would like to have that hamburger when you get there at 1:00 in the morning and you would like to be able to say that ahead of time rather than getting there and having to deal with it then. it's very much about communication and ease ease of use, which is, as we all know through the past number of years, everybody got smarter about using their smartphone. >> sounds like a wonderful way to book a vacation i want to talk to you about business trends overall in the united states. travel grew less than overseas is that the evolution of us

coming out of the pandemic we traveled all over the united states and now it's trying to find a place new >> if you think about coming out of the pandemic, the u.s. really went first and if you think about where we were last year in the second quarter, the u.s. saw these extraordinary growth rates in demand, particularly leisure first. then we're now seeing that business transient travel and group is definitely coming back. group has come back with a bit of a roar. so, when you compare that to international, particularly asia-pacific, which is really coming out the last, they're now seeing what we saw a lot of back in the u.s. a year ago and seeing these tremendous increases. cross-border travel in the second quarter really improved meaningfully a number of those u.s. travelers who were taking their vacations in the u.s. a year ago in the second quarter had the opportunity to actually travel abroad now, interestingly, we still saw

that leisure business in the u.s. grew in the second quarter, but certainly, to your point, not the same as international. >> in terms of china coming out the last, what are we seeing there? is it people from outside of china traveling in or the domestic consumer sparking that surge there? >> so, both. but we're still -- right now it's fundamentally overwhelming domestic you have air lift right now compared to prepandemic levels in and out of china at about 40% of where it was. so while we had an increase in greater china of over 100% in the second quarter >> hugely different. >> but the first quarter we actually saw the revenue per available room, kind of our version of same store sales, t so, it really is showing that -- >> is it really an expectation you'll get back to those levels of intracountry or -

>> cross-border travel is now one percentage point away globally, 19%, was at 20 before the pandemic so, we're getting close. in china, china was always about 76% domestic so, you know, there's still some cross-border that needs to come back, but they've still got tons of demand in greater china. >> finally, back to our country, large corporates versus smaller and medium size businesses, what are you seeing in terms of the trends there >> there is still recovery happening, but to your point, it is meaningfully behind 2019 levels, in terms of nightshis y rate increases in the special corporate negotiated rate. we actually expect we will see continued growth in that next year on the nights itself, you're correct, it's still lower.

the small and medium size businesses have more than made up for that difference, so our overall business transient levels of revenues are actually higher than they were in 2019. >>. >> thank you for being here. >> nice to see you both. thank you very much. bye-bye. let's stick with travel. another travel stock moving in the opposite direction norwegian cruise lines seema mody has that. >> delivering a q2 beat but third quarter outlook came in below expectations seen as conservative when you compare it to direct competitor, royal caribbean, which posted a very strong quarter and revised full week outlook above wall street norwegian says going forward they expect occupancy to decline as they move to longer, seen as a way to double down on the higher end customer. still analysts at stiefel are

recommending clients to use today's weakness as a buying opportunity. according to booking commentary from the company progress made on cost-cutting and customer deposits, which are running at record levels also worth noting, while hotels and airfares are falling, pricing power remains strong saying on board generation is best real-time indication of how consumers are performing >> seema, thanks. the medical device maker beats. can the stock turn things around after underperforming the market this year? we're keeping an eye on caterpillar. they predict there will be a jump in q3 sales year over year. the stock is opa fn ceor what would be best days since early june

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loans and high-yield bonds, preferring private credit as the fed winds down its hiking cycle. joining us at post 9, alexander wilson, deputy cio at goldman sachs wealth management. great to have you with us. i like this line from the notes we got, normalization is not nirvana. it's not going to be smooth tap ahead even though we're seeing lots of wall street strategists raise their price targets going into year-end. you're saying caution here. >> absolutely. i think the most important takeaway from us from the fed last week is this is going to be a long slug. when we look at how they talked about the market and how they talked about rates, yes, they were more dovish and they were very focused on patients and incoming data. for example, the data we saw this morning at the end of the day, they really honed in that disinflation narrative saying the biggest risk to us is actually not getting this right. we do think we'll be higher for longer and higher interest rates

ultimately will continue to put pressure on corporates and the consumer. >> right what is -- i mean, what level, in your view, is concerning? it seems like 4%, there's a reflexive action when we hit 4%, but we have been in 4% environments before. what is a concern to you in terms of levels? >> in terms of levels, 4% is actually attractive to us in the rate market. that's why we started to extend down duration, although very thoughtfully and cautiously because we're a little concerned about yield curve control and the boj infecting global duration we're slowly stepping into that. if you are a believer that ultimately we will see recession, duration will provide an important balance to your portfolio. >> private credit remains attractive why? >> when we look at the public loan market, 60% is private anyway you can actually move into private credit and get better

terms and you have a lot less what we call lender violence meaning when you go through bankruptcy in the public market, everyone's trying to say, i have a better pull of capital, but you don't have that in the private markets. we're seeing double digit returns that you can achieve, you can step in, be that provider in crisis, be that lender of liquidity that we saw earlier with the regional banking drama. we think that's attractive to the portfolio right now. >> what does your overall port foal low look like >> from an outright beta or market exposure, we're actually pretty neutral we spend the better part of the first and second quarter buying into stocks. huge portion of that thesis was that the market was so underinvested, just given where the strength of the consumer in gdp was. that's a little less so now. so, we're being thoughtful into jackson hole looking if you can buy protection on the portfolio. there's more opportunity from our perspective across the

globe, given valuations. right now in the u.s., you've got multiples in, you know, the 90th percentile. if you look at brazil or japan, you're seeing much better valuations we're rotating the book to get international exposures. >> and your concern, if we have a recession, would be more weighted towards equity valuations as opposed to the credit risk on the credit portfolio? >> it's interesting. we've seen such a dramatic shift within credit. there's so much information and how resilient credit spreads have been. we started this year, no one would have sat around here and said, we're about to crack 400 on high-yield spreads. what's happened is corporate america extended out their book and they did it very low interest rates we all know that right now we're seeing a little bit more of the froth. it's in the public equity market we're a little more cautious just given the runup we've seen. >> and you think there is still

a possibility for a recession? >> we do think there's a possibility for a mild recession. even the fed themselves said this history is not on your side. it's hard to see, like i'm sticking that core of inflation when you have a job market this tight. we saw jolts come in this morning. yes, it's an improvement but you're still opening 1.6 before covid that was around 1.1. we're still a very far basis from where we need to be even the fed said they want to see about payroll printing at 80k for a normal type environment. we do think there's some stress we'll continue to see in the labor markets. >> thank you >> thank you very much let's get a news update now. julia boorstin has that for us. >> thank you northwestern university tapped loretta lynch to lead an investigation into hazing, bullying and discrimination in

its athletic program leading to the firing of head coach pat fitzgerald since then northwestern has been named in several more lawsuits over hazing. federal safety regulators investigating reports some teslas are losing control of steering the national highway traffic safety administration opened the probe of tesla models 3 and ys after receiving a dozen complaints one owner said the steering wheel got struck, the car slid off the road and crashed into a tree. incandescent light bulb has died starting today, the biden administration will only allow l.e.d. bulbs to be sold in the u.s. it will bring $3 billion in annual savings to utility bills. up next, how to play apple ahead of results later in the week numerous firms hiked their price

targets. a downgrade for estee lauder helping businesses both large and small, communities and the people who live and work there grow and thrive. we're proud to call these places home too. they're where we put down roots, and where together, we work to help move everyone's financial goals forward. pnc bank.

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ibrance may cause low white blood cell counts that may lead to serious infections. ibrance may cause severe inflammation of the lungs. both of these can lead to death. tell your doctor if you have new or worsening chest pain, cough, or trouble breathing. before taking ibrance, tell your doctor if you have fever, chills, or other signs of infection, liver or kidney problems, are or plan to become pregnant, or are breastfeeding. for more information about side effects talk to your doctor. be in your moment. ask your doctor about ibrance. we're two hours into the trading day. let's go post to post. bob pisani looks at what's moving. >> a trend reversal in the s&p i want to comment on some earnings the bp, british petroleum, they reported 70% drop in second

quarter profit and people are saying all of the energy names have profits that are below the second quarter of last year. well below it's a simple explanation. oil was 110 to $110 in the second quarter of last year. it was $70 profits were high for last year. comparisons are tough because of the oil change i don't know how many have been traveling this year. the hotel restaurant prices are high here's hilton. this is a new high it's down but a new high on an intraday basis they reported last week good numbers. marriott reported today and they had good numbers, too. international is very strong prices are going up. they're not going up as much as prior quarters but still going up trust me, it's expensive to stay in hotels these days this is eaton, one of my favorite industrial companies. i talked about it yesterday. new high again today caterpillar, new high. this is a big play on artificial

intelligence industrial automation is the game here. eaton is a big power management company. as you go towards more industrial automation, power management becomes a very important part of industrial automation and artificial intelligence that's the gains they're in. they have dramatically outperformed the industrial sector this year eaton is up 35%, 36% on the year industrial is up 12% you'll find the companies tending to outperform have some kind of a.i. edge where they can use a.i. in their business and, again, eaton is in power management that's useful for industrial automation right now it's a new 52-week high back to you. >> bob, thanks. a pair of price target raises on apple. baird moving to 204 noting the company historically outperforms in august and september.

cowen goes to 220. steve kovach joins us live from san francisco. interesting timing going into a quarter to raise the price targets here >> and also following a lot of other calls we've gotten over the last several weeks wedbush and morgan stanley are at that $220 price target. thursday is the earnings we know from the loose guidance apple gives, not formal guidance, that sales are going to be down they guided towards low single percentage points, that includes iphone both are saying iphone sales will be down about 1%, 2%, 3% year-on-year that echoes what we've seen the last couple of quarters from apple. that demand is really falling for consumer electronics we see that across the pc industry we see that in the mobile chip world from qualcomm and the likes. despite the growth story they're telling in india, as these notes often note, it's not enough to make up for what we're seeing in china, what we're seeing in the

united states. demand is still down f of course, we're going to get new iphones, certainly next month, at the tail end of the current quarter. the real question is, in the second half if we keep seeing the strong consumer demand that we've been hinting at here in the united states, if that can continue and provide a boost a lot of people do think sales will be relatively flat on a unit basis for the iphone year over year into the holiday quarter despite a new launch of an iphone. >> we've seen a series of record highs for apple. even in spite of the cautious commentary we got a week and a half ago i'm wondering what kind of messaging do you think apple will have around a.i., maybe even the a.i. chips it manufactures in house? >> that's an interesting question we got the report from bloomberg a couple of weeks ago that they are building a system for

developers to get onto this a.i. trend of large language models, even building their own test chatbot inside i would be surprised if they go further than that or if we'll hear something specific in the last earnings call tim cook didn't mention a.i. in the same way we hear it on earnings calls from microsoft and meta and amazon and so forth. they are still are a harvard companies at heart and make these applications available apple has always been, and machine learning which they tend to use that term more than a.i a.i. for just about everything you do on your iphone or other devices. they like to say they're always involved in the a.i. game, just not necessarily consumer-facing we see from the likes of chatgpt. i wouldn't expect anything soon a super powered siri i expect the story to be we enable a.i. applications, not necessarily we're building one ourselves. >> steve, thank you.

let's turn to citi doubling down on estee lauder downgrading after a 90-day catalyst watch on july 10th. they say despite the underperformance, they say after seeingtive data on china and a cyberattack earlier this month courtney reagan joins us the analysts are pointing out interesting things like tradedown amongst china consumer in brands. things like that that give you signs there is weakness in the china consumer. >> the asia area in general really important for this company. 35% or more of their sales come from this region the recovery has been spotty, particularly in this duty-free area the travel area has not been as robust or stable as some had hoped. to your point, they're seeing some evidence of some tradedown

from premium cosmetics to mass cosmetics. estee lauder has tom ford and mac and clinique and some that aren't quite as prestige if you're seeing that trade down from premium to mass, estee lauder is one of the names that will be hurt interestingly, the company disclosed a cyberattack. they put out an 8-k but didn't give a lot of details other than saying it did have an impact on the operation and is going to continue to have an impact there's a lot of analyst concern about that because they're vague about the details. the verbiage they're using suggests it's not a small deal that's happened there. >> this was such a beloved name. and yet you look at three years, even five years, and it's no longer as a stock looks particularly good. what's it going to take, in your

opinion, for things to get back on track, so to speak? >> that's a really good question, david. i think there has to be brand reinvig rans i think there's been a lot of focus on skin care as opposed to cosmetics. estee lauder overindexes but still has skin care products there have been a lot of new entrants that has taken some share. if you look at that stock price over the last year even over estee lauder the exact trajectory is the opposite, which might be speaking to the trend of the tradedown and consumers finding new products that are less expensive but they still feel comfortable with i think it's going to take some brand reinvention and perhaps turning of the tied in the way consumers feel about what they want to spend when it comes to cosmetics. >> courtney, thank you courtney reagan. still to come, medical

device maker hologic lower after the company posted ruls. cautious commentary on the call. the ceo will be with us on the other side of the break. in a programming note, don't miss it, it's an exclusive with jamie dimon tomorrow, 2:00 p.m. eastern. he will sit down with our leslie picker they'll be in bozeman, montana, a stop on what is his annual tour somewhere on a bus this time in the northwest >> do you think he travels the whole way on the bus >> i don't know if he goes the whole waonhey t bus. >> we'll have to ask. >> another important question. >> rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund

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visit indeed.com/hire and get started today. molson coors lower after revenue missed estimates analysts saying the conservative backlash against bud light and shifts to brands like coors and miller lite could be here to stay stock's down more than 5%. let's get to another earnings mover this morning. that would be hologic, down 4% despite a beat on top and bottom line warning of margin headwinds stemming from lower covid testing demand moving forward. joining us in a cnbc exclusive is the company's ceo, steve macmillan. good to have you this morning. i mentioned covid. i know it was one of the things you discussed on the call as well you were a great beneficiary,

given your lead in pcr what are your expectations now for the company given the endemic phase, so to speak, of the virus? >> yeah, david, i think when we came into the pandemic, our goals were simple. one, take care of our employees and then quickly we toggled and became one of the largest producers in the world of covid tests when the world needed us that generated tremendous revenue as well as profits we said all through that our real goal was to emerge as a much stronger company on the other end. what you have right now is covid profit and revenues are rolling off, but sure know what you're seeing is the strengthening of the underlying business. we just reported 18.4% organic growth now, to the question on the stock, right now this is the analysts recognizing that as you look to 2024, that extra revenue and profits is going to be

basically done at this point unless there's another surge and we're fine with that >> one of the keys is you brought in a lot of revenues and profits. you have 2.8 billion in cash how are you allocating capital at this point given the loss of, so to speak, revenues from what -- from what testing had been and positioning the company for future growth? >> yeah, we're certainly getting that question because our balance sheet is so strong i think our keyword here is patience because we fundamentally strengthened the underlying growth of the company, and we do have a healthy margin structure, we want to be careful and we're patient to use that cash we still think there will be buying opportunities at the appropriate point. we've done a number of deals, tuck-in acquisition accelerating our growth frankly, we boosted our r&d spend. when you have a healthy company,

you can afford to be patient with that cash some people want us to do a big deal or use that cash. we're quite happy. one thing we have been doing is buying back our own shares because we think that's a great investment in something we know very well. >> steve, david at the top mentioned your role at illumina, a company that wants to move into the clinical side of the research i wonder if there are synergies we should think about in terms of the two combining forces. >> i would not expect any synergies between the two companies. i think these are independent roles. the companies do happen to be five minutes from each other, which is convenient for me, particularly from a timing standpoint i think we're in adjacent areas, but my appointment on both companies should not be construed as bringing them together in any ways we wouldn't otherwise potentially do but nothing there.

>> obgyn surgeries seem to be fairly resurgent you're abeneficiary of that. is that something you expect to continue or is it some sort of a surge that is going to die down because, perhaps, people were not getting things done during the pandemic >> david, there's certainly a little catch-up in professional volume but fundamentally we keep growing these markets. things like fibroids underdiagnosed in women. we have organic innovation combined with a couple of really nice tuck-in deals we did during covid that accelerating our growth rate in that business and really turning it into almost a low double digit grower for quite a period of time >>. >> you mentioned you think your stock is a good value.

i'm curious, give us a little more color around that it's an important decision you make in terms of allocating capital. why this buy back stock is important as opposed to other growth initiatives. >> we have the luxury of doing both we are continuing to invest during the time. we did six acquisitions and did a fair amount of buybacks and we continue to boost our r&d spend. because we transformed the capital structure of the company over the last ten years from being highly levered to effectively not levered at all, we're in a great position where we really can do and i think that's what gives us great confidence that core businesses are performing, that balance sheet's incredibly strong and it gives us great confidence for where we're headed. >> are you disappointed the stock's down 4% today? >> you know, i think it's slight overreaction what i really look at, you've

been around this business for a long time, as i have my first interview on cnbc was back with mark haines years ago. >> oh, boy >> i will tell you this, i think the analysts are not as proactive in adjusting their models as they used to be. they're becoming so stressed and i think you have analysts becoming reporters what you have is the wake-up call last night of, oh, wow, covid revenue next year is not going to be as big as this year. wow. that's shocking. we've known that these things happen and i think we'll continue right on from here. >> got it. interesting take i appreciate it. appreciate your snapshot as well nice to see you. >> good to see you >> sharp reverse for uber after reporting the first increase on operator basis you founded your kayak company because you love the ocean- not spreadsheets.

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shares of uber have seen a relatively big reversal, this from what had been an initial jump higher after the company did post its first-ever gaap operating profit, renewing hopes it will include inclusion in the s&p 500. deirdre bosa joins us now with "tech check. dee? >> all the ups and downs and uber's finances have always been complicated even when it was a

startup run by travis kalanick the headline, its first ever gaap operating profit. dig deeper and you might start to ask how sustainable is it really, gaap net income was $394 million, nearly all of that, though, due to a pretax benefit related to unrealized gains on uber's equity investments. that means uber's results are partly in the hands of other companies and how their businesses are doing uber's biggest stakes in aurora, and lyme, and stakes in ride sharing companies didi and grab and joby and many of which have rebounded this year alongwith broader tech comeback. the bottom line is that these are market to market every quarter. if the market changes, it may not matter how resilient uber is these other names could swing that income and potentially drag down profitability, and that could complicate uber's path into s&p 500 inclusion, which a

lot of bulls are looking at right now. to be included uber will have to show positive gaap earnings on a trailing 12-month basis and in its most recent quarter. uber does, however, meet other criteria, for one, its size and, two, classified as an industrials company not i.t. or tech company they try to balance sectors. it has never been a straight path anywhere for uber credit where credit is due, they turned a once cash burning business into some semblance of profitability and investors have net rewarded that. >> that decision on s&p inclusion, deirdre, comes in when december it has one more quarter it has to report profitability in >> it has to show trailing 12 months of gaap profitability i believe the second quarter of 2024, so it's still some ways off. >> thank you, dee. up next, jetblue sharply

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jetblue out with results this morning with frontier on deck phil lebeau as more on the big miss phil >> reporter: melissa, they did beat with the q2 eps a penny better than expectations but it's the guidance that pushes jetblue shares down as much as 8, 8.5% today. when you compare their guidance with what the street was expecting, you can see a big difference there and a couple reasons for this you have the head winds of unwinding the northeast alliance that will hit revenue out of your biggest market in new york and in the northeast, and at the same time you have slower domestic travel growth there's been a pivot to international and that's hurt those carriers more oriented to domestic growth. jetblue versus american, delta and united and the reason we're showing you this, it's hard to tell but there's a bit of a difference in performance in large part because those other three, american, delta and united, have

oriented more towards international and they have had big quarters and they're expecting a big second half. you have frontier reporting later today after the bell, and the focus will be, okay, you're looking at the lower cost domestic market with frontier. how much headwind are they facing that will be a good comparison relative to what we saw with jetblue and last week with southwest. >> phil, while we have you, i want to ask you about ford, that it will restart f-150 lightning production why now? >> reporter: they retooled the plant. they now have the ability, now that they're firing it back up after six weeks to triple production, and they believe they can get to 150,000 lightning built every year with the new production right >> all right, phil, thank you. phil lebeau all things autos and

airlines very tough >> phil has told us many times and reported on. interesting they have things started up again >> the s&p 500, the russell, we are challenging the 2000 level we gave that up in today's session. >> time to send it over to frank holland for "the half. david, thank you very much welcome to "the halftime report." i am frank holland in for the judge scott wapner so is it a summer sizzler or will investors give burn we turn the page on a new trading month. our investment committee is standing by to tackle that question and much more joining us we have josh brown, stephanie link, jim lebenthal, and liz young. but first, a check on the market at noon eastern. right now the dow just creep right back into positive territory, fractionally higher the nasdaq just about the same looking at the