Beyond meat. Ten year 1. 83. Caseshiller up 3. 2 year on year road map, record watch the s p at the all time high dow and nasdaq not far behind. Streaming wars, hbo max, details coming today david is live in los angeles ahead of the warner media investor day and some tough questions for boeing what to expect as Dennis Muilenburg testifies later today. Well start with the markets, a day after the s p hits the 12th all time high and the 14th record close of 2019 jim, halfway through earnings season here. What does it all mean . I think you go back and i was going back and looking at some of the big Billionaire Hedge Fund managers and what they have been saying and almost in unison said, look, you got to be very careful. It cant last. Numbers can go back to the negative the companies arent letting it happen the companies, for the most part of, the Biggest Companies reporting great numbers. The classic one is merck last week, merck got hit down to 79. 80. Bristolmyers, a cocktail, that was very positive. Keytruda is doing i dont know if people understand this 3 billion this quarter. This is, you know, heaven help you if you have cancer, a terrible illness, this is extraordinary, mercks drug, raises dramatically. Pfizer unbelievable. On a day where merck and pfizer raised their full year guide, but a day where cummins cuts its guide, you to stick with defensive still i think you have to say, listen there are some guys that beat that really have figured out what to do lets see how much cummins is down they missed on revenue, but the fact is that caterpillar was horrible last week horrible and the stock hit 140 yesterday. And Morgan Stanley downgraded it before it came out and you started thinking, it is going to be awful and the stock didnt go down im a little suspicious about giving up cummins right here when you see revenue declining 2 , your instinct is to say sell it we got to hear this Company Caterpillar is so committed to the dividend they call themselves dividend aristocr aristocrats. Plenty of industrials doing quite well you may not neat cummins they have done well in china, like emerson even 3m is comingback. I just caution people not to throw out the cyclicals. You would have sold caterpillar. Absolutely, yeah. Feels like a wash out given what they printed i think the exciting thing is the semiconductors nxpi, there were six different lineitems, only number that was better was the internet of things thats where Texas Instruments was weakest, why you see nxpi going up ritt clemer calling it. His line is, while the shortterm Global Demand environment appears to have stabilized, the intermediate demand environment continues to be uncertain, and is not markedly improved. Not an all clear, is it . The market is reacting to the beginning. The beginning statement. But remember, nxpi was at 90 after the walkaway, the takeover i think that nxpi is just sensational. I dont want to pay up here. You think david has anything to say, or probably more focused on hollywood . Lets check in with david faber who has got a full day of media ahead. Yeah, we do it is not until 3 00 our time that warner will roll out their latest offering, of course in the streaming wars we all followed so closely at that anchor desk back at the nyse so well get details there their pricing will be important. What else is going to be involved, what other content, of course, going to be exclusive to that platform, which we have talked about in the past as having a lot of library time, but sort of introducing some interesting questions for time warner, parent at t, and the guy who is running all of this, john stankey, as they bring this thing into the marketplace, how to distinguish it, how to also price it in terms of what hbo is at and what youre actually going to get a lot of questions there very much wrapped up, of course in the future of at t, which we talked a lot about yesterday, guys, which went up a lot on that new plan to obviously increase margins over the next three years by 200 basis points, increase revenues by 1 to 2 , that may not sound like much, but it could be a heavy lift for them more on the revenue side than taking costs out of the business, but this is certainly important part of that overall plan so well be following that as for nxp, i dont have much of anything we want to get to google or alphabet, i guess, which certainly dont know what your thoughts are, funny, in talking to a couple of people who own the stock, this morning, they were more positive perhaps than others seem to be after the bell yesterday when alphabet reported, just talking about what looked to be a decent operating margin markdown in uber, 550 million litigation related expense, tax expense perhaps, masking what were not bad numbers curious to get your thoughts 11 firms that follow it, official status, ten boosted, boosted their price targets. Ruth porat, not as bad as maloney, please dont buy us, ruth porat, they i i always have trouble falling asleep but there is four days a year i dont have to worry. Those are the four days that alphabet reports if you try to read their thing, even during a really good monday night football game, it can put you to sleep it is remarkable it is better than klonapin this is the most it is like, hey, you know, the cloud, and you got youtube. Costs per click, yeah it is just i cant read it anymore. I cant. The headlines are, they havent missed on the bottom line in seven quarters and it is the highest quarterly expense ever. They have to in order to be able to keep cloud going they talk about getting cloud back into action, they dont mention a lot of big clients i also felt that, david, im curious to hear you say this, if you are the Justice Department and youre thinking about breaking up alphabet, i think you go through this thing and you say, well, gee, i dont know, they seem to be doing okay, not setting the world on fire, this is like a brief for the for the defense about why you dont need to do anything. Were, like, okay, were not kings. Were not killing it anymore . So you dont have to break us up i dont know try to make delrahim less combative. I was going to ask you about making delrahim, if hbo decides 3, then at t rules the world delrahim, hes determining a lot of the earnings. It is true. I dont see them going down to that price im not sure what that means for all of us paying our Cable Provider breaking it up, i dont know what is the sum of the parts anyway it is as unlikely, as long as it would take, should it come to fruition that the Justice Department would move to actually bring litigation against them to break up, i mean, how many years in the future it would be, but what are the other parts worth . What is increasing i increasingly see varly as doing something in healthcare waymo, cars all over the place in phoenix youtube is interesting property. But it is really hard to untangle these things from the sense of these other bets, theyre designed just to be able to take longterm positions that can lose money from now to kingdom come i just think that there is very little here to make me feel like, you know, trade higher it was already trading and trade open a breakup basis it should trade higher on earnings basis great quarter. The only people that didnt know it was a great quarter were people at more expensive on a forward basis than apple or facebook look, they have 120 billion in cash. I mean, 120 billion it is extraordinary. This is a company that is doing so well, but does not ive decided, it is not this they dont know how to tell the story, they dont feel the need to there is a line, there is a line in the Conference Call, where ruth says, you know, the company says, we dont manage the business to maximize quarterly results. Well, you bet they dont i know the secret, david, i know the secret to reading the Conference Call. Crystal meth. What is it . You use crystal meth, like breaking bad, the only way to do it. They dont want you to like the stock. They dont theyre not like maloney, the worst letter in history, the promiscuous diner is making it so theyre not using our product. Talking about grub now . Grubhub. Down 30 . It should be down more than that it should be down more than that that letter says, listen, were not in a Good Business thats very she didnt say were not in a Good Business at no point did she say promiscuous when did that become a word associated with grubhub . Who would say that . Promiscuoupromiscuous. Business. Beyond meat is a Good Business. Between beyond meat, grub and shopify this morning, there is some land mines on the table. Shopify was good, a million customers. 45 gross market value, my wife says i hit the things too hard all the time. But, you know, they have a loss. They are they are spending money in order to grow now, wall street hates that. They dont want people to spend any money and they want to i defy shopify i defy the sellers of shopify. You will regret you sold it. You dont know what youre doing. I like the stock and unless youre ray dalio, you shouldnt sell it. Dalio had some comments in saudi arabia about scary times ahead. Once again once again. 1934, and then nationalists and today is the anniversary of 1929. The headlines are great on that even the times. There was no fake news when the times didnt like that. They were a good paper. Rca stock got tv. When we come back, Dennis Muilenburg will Face Congress for the First Time Since the crashes of the two 737 max jets. Hes before Congress Today well bring you coverage in 50 minutes. Looking for a little bit of a pause here futures are pretty steady. More squawk on the street from the nyse is back after a break beyond meat, tumbling in the premarket, despite better than expected results including a first ever quarterly profit. The company says it would need to offer more discounts to deal with growing competition this is what ethan brown said on squawk an hour ago if you look at our velocity over the same period last year, were up 144 . People say the competition is coming its been here we have been competing for a long time. We feel comfortable where we are. We have a myopic focus on doing one thing, building a Perfect Piece of meat directly from plants were not beholden to a supply chain, not competing among different divisions, thats our sole focus and well execute well against that. They raised their sales guide. More about the lockup expiration. This was a great Conference Call hes a great proselytizer for what he does, talking about the hes really rebutting a lot of presumptions. You think there is a lot of salt let me tell you how much salt there is in this a lot of fat, a lot of cholesterol. I felt fabulous about this quarter. It is just that the problem is how much stock coming to market, mcdonalds test, dont have an answer we know a lot of people ask about tim hortons, why tim hortons took it out. There is a lot of competition. This guy is an evangelist. Remember, he says why do we have to get the protein through the mouth and then the other part of the cow . Why cant we just get it right to us . And, you know, he makes so much sense. Hes Crystal Clear hes so devoted. And he is my friends who work at whole foods, they swear by him. They think he is the man who is trying to change the whole food chain. I wish you could just vote on a great guy rather than have to deal with the stock. Hes a great guy, hes got a great story. Stock is up 250 from the ipo at 25. They didnt issue enough stock to begin with. He felt i remember he did the secondary offering, he was trying to please all, he did he priced it way in the hole if you bought it, you can flip it and make money. But there is too much stock. It is going to settle. It is not like it belongs at this level but i can tell you that there is no doubt in my mind, this guy is here to stay and i know nestle has a good product. Tyson, i had their chicken products, extraordinary. I didnt care for the nestles. Theyll come out with a better product. I had this i had his ethan steak, i had ethan oh my in pasta, a fabulous dish it caramelizes very well it is easily cooked. My vegetarian daughter loves it. Hes got some what i love best about it, it is not for vegetarians. It is for people who want a better way to eat protein. You have consumer groups, full page ad in the times yesterday, saying that plantbased meat is ultra processed. Still heavily processed. Well, we have talked about that in the piece, and what is actually behind the amount of ingredients and chemicals to some extent that are actually in these. But we made the point, i think, and jim, you have, it is not necessarily youre not necessarily doing this for Health Reasons as much as youre doing it as a meat replacement for other reasons that have to do with the planet and things of that nature. And i think your point about the lack of supply is sort of one of the key ones here as we watched this stock soar and come back down to earth in recent weeks. Simply never enough stock out there, nrbl initially and we foe it so closely. But it was really sort of based on just the lack of supply for the stock itself that was really it. It was ive got to tell you, a lot of people are saying to me, jim, if it is so good, why is the stock down . It is supply and demand. There is just a ton of stock for sale but in terms of being competitor versus impossible, versus nestle, versus tyson, which, by the way, up big yesterday, poultry lift ban in china, this is a very solid story. You know, it is funny. I will say this, it sounds stupid, but there is a big anticow movement. Cows use a lot of like cows are like fracking. They eat a ton of grain they produce a lot of methane. I dont know. When i look at cows, they just seem to be sitting and eating. Go by a cow, sitting and eating. Not to mention the end of the life usually often doesnt end well. Ends with that bolt in the head, a suboptimal way to go i do find that when you speak with people about this, they say, why the heck do we need cows like, enough with cows im, like, im old school. Like, cows seem to be part of nature cows are big polluters second only to natural gas companies. Someone actually said that to me lets pivot for a moment to boeing big day for Dennis Muilenburg in front of congress. Questions about the balance of regulation, between the regulators and the companies who think that they could handle this sort of on their own. I thought that the testimony i read the testimony beforehand, has enough mea culpa in it to feel that i felt better. He said we made mistakes. Ive been waiting for him to say, we made mistakes. I think they have a good system to be able to have recompense. I feel like that it is not about redundancy like senator cruz said i thought he could have this is testimony that i think is about as good as youre going to get from a ceo in a very tough position every day, of course, i go back and forth with boeing, every day there is some new guy that says the faa was owned by them. I come back and say, well, the faa does not to me seem like a bunch of captured regulators, but thats a narrative that nobody that the newspapers dont believe. They think the faa is owned by boeing and didnt have the resources and boeing cut corners. I think that im taking my clue from doug parker, who said he would be happy to have his wife and kids fly with him on that plane, right now. You say hes selfinterested i dont think hes selfinterested in dying. Do you believe gary kelly when he says theyll talk about diversifying their fleet i think you have to i think you dont think it is posturing to get a better price . Look, doug parker says that more than theyre owed more than 400 million i think everybody will submit a bill there are they owe a lot of people a lot of money. Theyre going to have to make good or, yeah, airbus, the one thing about airbus, they dont have enough planes either. Right nobody is making enough planes. A long wait so with boeing at 340, does that feel like a cat situation where bad news comes and stock stops going down on it i think that i got the impression from speaking with four airline ceos that it is a first quarter, theyll be flying now, obviously, no guarantees, the rest of the world, blah, blah, blah i do believe that we are at the point now where were further along in terms of bad, how many more revelations are there i think the tape, the text message, which really didnt which really the New York Times said he lied, and when you parse everything, ive gone over this and over this and over this with the good people from boeing, it is look, if i had known about this one thing, which is not the thing that caused the crash, i would not have said this i think that were now in the period where boeing is overly hated. Could the stock go down . Look, i got to i want to see a forecast of how much they owe. They owe a lot of money. Yeah. Maybe well get to a point here as we wait for muilenburg in a moment to where we Start Talking more about how theyre going to market its return, right . Looking at passenger interest in flying on it, versus not flying on it. Will they ask, what are we going to be on today it is a big issue i think that americans do have they do have shorter memories about plane crashes than people think. I covered a terrible plane crash when i was a crime and homicide reporter and it was a psa plane, hit by a small plane and people saying people would never fly again there is this horrible chicago to chicago flight that i followed infamous chicago to chicago, crashed in chicago i thought no one would ever fly again. No one even remembers those. They dont remember the consolation plane that crashed over i remember because i covered plane crashes, i covered a horrible plane crash in pensacola. And every one made me think no one will fly again and people did. People do david, thoughts from you as we i think muilenburg might make a statement before the hearing begins we have seen so many of these types of hearings and it is much it is as much theater as anything else. It is important one would expect for the future of this particular executive, how they handled themselves, how they handled the questions and what the Public Perception is jim, is muilenburg sort of fighting for his job to a certain extent, based on his Performance Today in front of congres