Cut. Also ahead, a rough morning for Health Insurers. Medicare investment rates come in short of expectations. Ge shares have been up sharply. The company now completing its final split by spinning off its Power Generation business. Ge aerospace ceo and larry culp and ge fernova scott stray sikh joining us a little later. We mentioned the tenyear going back close to 4. 4. This started with the ism data yesterday. Its constant. You look at it, just drips and drabs. The market is reacting in a curious way. Yesterday the nasdaq finished up. I thought that was incorrect. These are the stocks that should be getting hit, david. I do think this is a very important moment in the market because we had for dot ten about ra rates. Well, we did yesterday. A mistake for the nasdaq to be up . What does that even mean . I mean if rates go up, you want to sell the high multiples you also want to keep an eye on the companies that have a debt stack that needs to be refinanced. There were hopes at the early part of the year there would be a lot of rate cuts and the refinancing risk was lower. Any number of those highly lefrd companies youre going to need the economy to stay strong, but that also means you wont get the cuts that some are hoping for. I never believed in the cut theory. I think the economy is really strong. I guess those guys, they wear tommy hilfiger, thats the only thing they do. Well get to some its astounding. That was a biden shutdown. The rates are one part of the picture, jim. The markets pricing in fewer cuts than the dots. Whereas before we were pricing in double suggested by the dots. Ukraine struck one of russias largest refineries. Iran is vowing revenge for th attack at the embassy in dough mass cuss. There are states in the Gulf BuildingNuclear Power plants. I think oil could go a little higher. There are good strategists that thinks it goes to 100. Natural gas is lower. Gasoline is up. I dont want to emphasize too much thats going on. We know it could be ephemeral. This note suggesting putin could put the squeeze on biden prior to the election by taking oil to 100. They took out a lot of ukraine capacity. I would say we actually have the exact right people on, vernova is actively involved in ukraine. Were going to find out. I think its important. Back to carls point buying russian oil. Is that correct . Thats correct. Its a global commodity. If you cut it off in one place, it doesnt necessarily mean that its going to have an impact. Russia and the axis of nonevils, India Building a huge number of coal plants. China building a coal plant every two weeks. A lot of it is for backup. They are by far the largest producer of solar as well. Let me give you a little heads up, partner. April 8th. April 8th, total eclipse of the sun. Worst day in the world for solar power. I was like, where is he going with this . Yes, on that day youre going to need your coal. April 8th is a disaster for the solar the chinese do build a lot of coal plants, but it is said that they are also very heavy look at their electric vehicle industry, by far the largest. Theyre going nuke. Who is going nuke . China is, trust me on this. I have sources. Trust you . You with sources in the Chinese Government . I have great sources on this. David doesnt understand, when you have an interview like we have this morning, youve got to go the distance. Jim is referring to ge vernova. Ge vernova is interested in small, modular reactors. I think its very important. David, im surprised in you. Youve been one of the most praised proponents of nuclear. I have talked about it without a doubt being necessary, taking us through the transition. More people died with Nuclear Power than with coal . We know its a history that makes little sense in some ways in this country. Three mile island essentially. Chernobyl. And then fukushima. But we only had one here in this country. Its operated quite safely. There is a concern about the waste product. Youre right. The smaller reactors could be fascinating, particularly given the power needs of the thing we talk about all the time which is the growth in generative ai. Doubledigit growth. What are you going to do . Im not trying to be too ge vernova centric. But this is an amazing day, an important day because we had a grid that nobody ever cared about. We had no sense that wind could be part demand has been stagnant for a derk cade. Actually for a hundred years, you can argue. I think we kind of forgot that data centers are the greatest source of technology. Oh, david, what . We got the tesla numbers. The stock is down 6 . Phil has got the numbers for us as well. You want to do that . What do you think, jim . I want to check with you first. Phil, take it away. Give us the tesla numbers. These are not good, thats why the stock is down. Deliveries in the First Quarter of 387,000 vehicles. Let me put that into perspective. The facts and consensus as of friday, was for 457,000 vehicles to be delivered. First quarter of last year, the company delivered 422,000. So this is a yearoveryear decline, the first since 2020 that weve seen from tesla. In terms of production, the company produced 433,000 vehicles. They do point out the fact that they had the change in the ramp up in production in fremont as they come up with the new model 3 highland edition. They also had the red sea issue, also the issue with the production at the giga factory in berlin. Not said by the company, clearly one of the main factors whats happening in china. We know whats happening there as they have lowered their production. Weve seen the announcements or reports come out of china, and that clearly has an impact here. Thats why the stock is under pressure you see now. Again, 387,000 vehicles delivered in the First Quarter. The street was expected 457. Even some of the bearish analysts were expecting 410, 415, not 387. Guys, ill send it back to you. I was going to say, phil, fullyear estimates, i guess we can say goodbye to some two handles, right . I think thats a given. I think thats a given. Most were already bringing them under two. We had a few saying 1. 91 million deliveries for the year as the estimate they were putting out there. For some perspective, and i dont know if we can pull up the chart we have, showing annual deliveries, they delivered 1. 81 million vehicles last year. If they were going to go to 1. 92, 1. 93, that would be about an 8 increase in deliveries. Now the question becomes do they hit 1. 81 million . Is there a possibility they dont even make that. That possibility is out there, but its early and a lot of things can change. Obviously production is likely to come back much stronger and deliveries should improve in europe. Theyve been clearing out a lot of inventory in the First Quarter. If things start to firm up a bit, then certainly we expect higher numbers in the second, third and Fourth Quarter. To what extent remains to be seen. China is the wildcard, guys. They are brutally competitive in terms of whats happening with evs and ev pricing. Theres no doubt thats having an impact on tesla. Remember, shanghai is not just where they supply china, but thats also where they supply other markets around the world. So they can offset some of the impact of just pure china and the competition there in terms of vehicles being shipped to other markets out of the giga factory in shanghai, but theres no doubt this competition in china has had an impact. Phil, i know that the United States is not the fulcrum, it is china. And i know the problems in berlin. This newfound we dont want to go electric, we want ice. We also are willing to have eye brid in this country. Americans are embracing hybrids right now. If youre someone that wants us to electrify and get off of go to nuclear and get off of coal and get off of nat gas. Its not going to come together at that level. No. But thats not how consumers think, jim. I think theres very few people in this world who sit there and think, ultimately it is the fuel source for this. A coal burning plant, is it nuclear, is it hydropower. Thats not how consumers think, you know that. The way the consumer thinks is, whats the best option for me pricewise and also am i comfortable making this transition . There is no doubt that the recharging issues in this country are a huge issue. The first adopters, they could live with it. Not the people who are now looking at buying a vehicle now. I hear this time and again from my friends who are considering buying an electric car. Almost all of them say the same thing. If im in chicago and i have to drive to cincinnati, st. Louis, i aint doing it in an electric vehicle. All i could think of is what happens on 95. Am i going to push to a rest stop . Phil, the Company Reports april 23rd. Well get a lot more details then in terms of price cuts, whats meant for underlying cash flows. You mentioned the production out of the shanghai factory. Give us a sense in terms of your expectations where the chinese can come in with vehicles priced far below what tesla is able to do. Not only are they priced below what tesla is able to do for electric vehicles for the most part, because of the advantages they have in terms of scale, in terms of labor costs in china, but on top of that, david, when you go to a place like chile, the thing you notice is the internal Combustion Engine vehicles, 4, 5, 6,000 cheaper from a chinese automaker compared to a comparable vehicle. We compared one from great wall versus toyota. Theyre both midsized suvs, no comparison at all. When we talked with consumers, they said the same thing. Its pretty good. Why wouldnt i buy it . Its 5,000 cheaper. Thats the competition that not just tesla but all automakers are facing. In terms of evs, yes, tesla is king of the hill in the United States and was king of the hill up until the Fourth Quarter with byd. Fullyear numbers i think byd probably passes them this year. Theyre still very formidable and have a lot of advantages, but they are facing a period here where theyve got to deal with softness in a number of key markets. Phil, youre right. Well get to the rivian numbers we got this morning. Thats our phil lebeau on teslas disappointing q1 delivery. The disneymrepeltz proxy battle. Ceos of ge will join us. Well get to some of the m a and oil services today. M ntnehethnserjimeiod al iurs when squawk on the street continues in a moment. Trading at schwab is now powered by ameritrade, giving traders even more ways to sharpen their skills with tailored education. Get an expanding library filled with new online videos, webcasts, articles, courses, and more all crafted just for traders. And with guided learning paths stacked with content curated to fit your unique goals, you can spend less time searching and more time learning. Trade brilliantly with schwab. Her uncles unhappy. Im sensing an underlying issue. Its tmobile. It started when we tried to get him under a new plan. But they they unexpectedly unraveled their price lock guarantee. Which has made him, a bit. Unruly. You called yourself the uncarrier. You sing about price lock on those commercials. the price lock, the price lock. so, if you could change the price, change the name its not a lock, i know a lock. So how can we undo the damage . We could all unsubscribe and switch to xfinity. Their connection is unreal. And we could all unexperience this whole session. Okay, thats uncalled for. We are going to have a sharply lower opening about 13 minutes from now. That board battle at disney continues. Try ans nelson peltz trying to get on the board. Voters have until the end of the day to submit their votes. Disney, among some of tlarjest holders, t. Rowe price, theyre voting in favor of disney. Wall street journal reports blackrock also siding with bob iger and his board of directors as well. They did withhold on mark parker. I thought that was interesting. Ive been saying this for weeks, a lot of confidence in the disney camp. That continues. It still may be close. Dont forget, shareholders can withdraw and resubmit until the deadline. That happens occasionally. So there is still lobbying to be done here. We still have yet to hear from state street, vanguard, the huge index and or passive funds that have such an impact on votes like this one. Retail also important. Disney confident on the retail vote, some 40 or so of the shares outstanding considered retail investors. Inside disney, they believe they can get as many as 75 of those. Jim, you have to say right now iger is going to win this one, but we dont know yet. Its still too early. These reports about 50 in, again, you can pull and resubmit until the deadline. What are you hearing about the cost of this to disney shareholders . The costs are running high. The highest ever. On both sides. The tryian side, if we see this money might have been better, making movies that sell. 40, 50 million. Most expensive proxy fight ever. I think that matters. People have to recognize, maybe they should say lets have him in, he cant do 50 million worth of damage. Well, they felt otherwise clearly. By the way, its not just money. Its time. I mentioned this for so many years here in terms of these kinds of fights. The distraction for management, the time spent youre spending it with shareholders. So conceivably theres a good that comes from that, from sitting down as bob iger did with so many large shareholders. Theres a lot of distraction that comes with it. What are the odds they do Something Like proctor did . Minus 10 . Not a chance. Theres a great deal of vitriol here. Everybody is taking it very personally. Were going to be able to stop talking about it very soon. I think even when you talk about it, say like i talk about it, id rather talk about minnie, maybe goofy. Bring goofy back. Someone compared me to goofy. Somebody has compared you to basically every cartoon character. Except for thumper. How about bambi . Bambis mom. Woody woodpecker, yes, thumper no. As we said earlier, larry culp and scott stray sikh joining us to discuss General Electrics final split. One more look at the premarket. More squawk on the street in a moment. Encore energy, americas clean energy company, now in production in south texas. Energizing america with reliable and affordable uranium for Nuclear Energy fuel from our environmentally friendly extraction process. Encore energy. We planned well for retirement, but i wish we had more cash. You think those two have any idea . That they can sell their Life Insurance policy for cash . So theyre basically sitting on a goldmine . I dont think they have a clue. Thats crazy well, not everyone knows coventrys helped thousands of people sell their policies for cash. Even term policies. I cant believe theyre just sitting up there sitting on all this cash. If you own a Life Insurance policy of 100,000 or more, you can sell all or part of it to coventry. Even a term policy. For cash, or a combination of cash and coverage, with no future premiums. Someone needs to tell them, that theyre sitting on a goldmine, and you have no idea hey, guys youre sitting on a goldmine come on, guys do you hear that . I dont hear anything anymore. Find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. sirens [due at target in 5 ] copy that. Make a hard left down the alley. Networks got you covered. [please confirm requesting backup. ] changing route. Go. Roadblock ahead. Back up, back up. Reverse reverse next level moments, were 30 seconds out. Need the next level network. [north corridor, hurry ] coming through or 3, lets go. The network more businesses choose. Transplant received. At t business. Six minutes until we get started with trading here at the new york stock exchange. Looks like were going to be down sharply. For mad dash, you want to talk about paychecks. It may not be enough. Paychex is down huge. They guided lower. A lot of this, david, is actually business is soft. You start putting these things together. Pvh business is soft, Paychex Business is soft. Maybe were missing something. Maybe there is a slowdown developing just when rates go higher. This is a suboptimal situation, david. You want to see paychex continue higher. Right. You have ceo on a bunch. We have the ceo on tonight. Thank you for that prep job. This has been the engine of the economy, small and mediumsized business. To see that tail off would be something counterintuitive versus what we thought a couple months ago. Id be curious to hear what he has to say when it comes to characterizing that. Paychexs wheelhouse is the United States. Theres a lot of talk that there is a bit of a frugality developing with american business. Okay. Rate cuts maybe are needed. More and more prognosticators eliminate their expectations. Right, underneath, when you have apparel and a Company Drink linkage to small and mediumsized businesses and they missed the quarter. Opening bell is just a little less than five minutes away. Dont forget, of course, you can catch us any time, anywhere by listening to and following the squawk on the street opening bell podcast. After 130 years as an industrial icon, it is the end of an era at General Electric today. The Company Completed its final split by spinning off ge vernova power business which will trade under ticker gev. Ge aerospace will retain the ge ticker. That companys Ceo Larry Culp and vernova ceo Scott Strazik will join us shortly after ringing the opening bell. I think its sound. The reason i say that is i still think the company has the zeitgeist of the country. People want power, they want aerospace. These are very good trends. The Ge Healthcare deal has worked. Mostly people gave up on this company. They gave up on it, and they gave up on it to buy. Larry culp came in and said, look, it may not be so good culp was money, david, money. He was. The early days were a little tough. Remember, they announced this plan to split up in november of 2021, and here we are. When this division was the weak link, and larry culp promised investment, they bought it. This is a very big deal. Very important. [ bell ringing ]. At the big board, ge aerospace and ge vernova. Well talk to culp and strazik i