Customers, facebook is finding out what it means to be a hardware company. Yes. On Major League Baseballs opening day and today as well, rob manfred will join us at post nine to discuss ticket prices and a lot to talk about. It will be a very interesting conversation. We want to start with tesla. Shares are popping today on reportedly strong early demand nor the mass market model three car. Phil lebeau has been following the figures from a tweet storm of elon musk. What do we know . A big three or four days for tesla and elon has been tweeting and giving us numbers on the amount of reservations placed for model 3. At the end of saturday night, 276,000 reservations, likely much bigger than that now but we havent gotten an update from tesla. The base price for model 3, 35,000. That means if they only sold 276,000 at the base price and we know they go for much more, they bring in 9. 6 billion when those sales were completed. By the way, model three deliveries start in 2017, by then it will be interesting to see where the annual deliveries are from tesla. If you look where they are expected to be this year, this year expected to be between 80 and 90,000. Were expecting q1 delivery announcements any day now. Once again, this stock is tickling 250. It has been a huge three or four days for tesla. We dont have that much data points for previous releases by tesla, especially in the mass market scale. Because the deposits are refundable, im wondering what you think this will actually result in for real bottom line sales . We have about a year and a half before they are going to be produced . Its anybodys guess. Most people ive talked with, analysts who track the company closely. They believe at least two thirds of these reservations will be completed, that people will go through and order the car. Theres always the possibility that the first wave of cars that are delivered are a disappointment and people cancel reservation. Conversely, you could sigh the first ones come out this is fantastic, great car for 35,000 and that brings more reservations and more people going through and booking a firm order. Either way though, youre talking about the mother of all waiting lists when you think you talk about the delivery rate they already have right now and they have on the orders as of saturday night, 276,000 cars. Even if they kept half of those orders, that is still going to be a long time that people will be waiting for first car to come out. I think that people will wait. What are your options . If youre interested in this car, your options are if i want an ev, maybe i go and look at the chevy bolt. But the bolt and model 3 are completely different vehicles. They are both electric but the chevy bolt is aimed at more a middle Class Customer as opposed to the tesla model three, clearly aimed at the bmw 3 series and those in the luxury area. Its a good problem for the company to have, musk was tweeting also he needs to rethink production planning. They have at least a little ways to go but theres another huge story on your beat. Alaska air buying Virgin America for 57 in share. They are west coast operators but they have an antitrust review. How long until consumers see a change at the airport . I would imagine well probably see some type of change nine months to a year from now, when you see the antitrust reviews going forward. This is a big deal for alaska. It has been growing on west coast but by picking up Virgin America. It will be the fifth Largest Airline in the United States and the key here it has a much stronger west coast presence. Hub up and down the west coast. Then the question becomes one that ive heard all day long from period, what happens to Virgin America . Its this quirky funky brand and people love it. Alaska is being very coy and saying were analyzing the strengths of Virgin America. I dont think youll see this brand in a year or two. Pritchard branson stake holder in Virgin America and very clear today in saying he tried to fight making this deal go through but they had afy fiduciariry obligation almost all airlines with the exception of maybe hawaii in terms of the performance over the last six months to last year. Wouldnt you know just today the Customer Satisfaction survey came out, Virgin America was number one, alaska air was number five. Its still a Popular Airline with flyers but the fear is when they are consolidated, maybe they lose some of that edge they enjoyed as a customer friendly airline, right . You know what people enjoy about Virgin America, the abilities to order a meal to be delivered to your seat. Will you be able to do that with alaska . Im not sure they will keep type of perk. Those are the special things Virgin America did that made it so popular with its customers. The good old days of jetblue, early days and how they regressed to the mean as well eventually. Lets hope that doesnt happen to Virgin America. Thanks so much. Turning to the 2016 president ial race and impact on the marketses. A piece over the weekend saying john kasich would be the best pick for the markets and that his quote, policy prescriptions, and experience and temperament make him the gop best bet to ensure a nervous marketplace. Meanwhile, controversial frontrunner candidate donald trump saying its a bad time to inveflt in the stock market and warned of a economic and financial bubble and expanded on those comments today at a rally in wisconsin. Bubbles arent pretty. Weve had bubbles and when they burst its not a good thing. What i said is were going to go into a remassive recession but also say if im president thats not going to happen. Because im going to straighten things out before it happens. Its going to be a mess. Lets get reaction, john manly from wells fargo funds and Jonathan Corpina and Rick Santelli from chicago. What do you make of those comments from mr. Trump and whether or not john kasich is the type that wall street would welcome in the white house versus other candidates right now . Well, im not sure if wall street would welcome mr. Kasich but i can tell you this, the republicans put forth many mod pratt candidates the last two have been moderate, mccain and romney and win ratio is 02. They are part of the staen. Of the print media is part of the establishment that is the corps being rebelled against. Im sure hibd close doors, draghi and janet yellen would agree with everything xeptd for the big recession. If they didnt, they would be raising rates or certainly wouldnt be adding more liquidity to the drenched earth weve already had. With regard to the recession and what he said if he gets in office, its kind of hard to argue with. Fiscal side is whats needed, fiscal side is whats needed. Monetary side from the central bank has not only run its course but beyond the epilog. Its hard to argue with everything except the adjectives as to how deep and ugly it would be. If these are good times right now and everybody is disheartened, i dont think a recession would be any fun but i dont think it would be hujs. It would last long. John manly, to hear those comments though, eight years, nine years in a bull market at this point. We know the rally cant go on forever. But how dangerous do you think it is for a candidate to be threatening that something will happen, something that dangerous like a mass irves recession will happen unless he is president. How dangerous is that . We should take everything said on a campaign with a little grain of salt, meant to get elected. If trum many becomes president , there will not be a recession. There will not be a recession and i dont think theres going to be a recession, and why the ned is doing what they are doing. I was on a plane that was full and restaurant that was fun. Consumers are doing pretty well and im in texas. On, i know youre not speaking for all of wall street. Would any candidate be welcomed by the Financial Services industry when you consider that no president acts in a vacuum, they have to get policies through a have divided congress at the same time. Being that as it may, what about the comments that john kasich would be the president that wall street would welcome above all . I think mr. Kasich has done a very good job of flying below the radar when comparing him. Wall street wants a leader and wants prosperity and growth. Whoever is going to provide that best to us and best for the investors is what everybody wants. Clearly mr. Trump has a way of selling himself and what the future is going to look like in his empire. Weve seen how the market has reacted over time with a democratic president. Its going to be interest to see how how it all plays out. I enjoy were getting one day closer and closer to getting more transparency and little more clarity as to who the real frontrunners are and how its going to play out. Rick, youve been watching all dale as weve been getting reports from Steve Liesmans all kmerk conservative survey. The largest percentage, 32 say none. Do you take that to mean that wall street or the stock market wouldnt like any of the policies that are currently on the table or that they think that whatever will happen in the market is inestable regardless of whos in the white house . Its little bit of all of those. We keep hitting trump on this. Bernie sandser has a lot of momentum going, the same media you pointed out, many of these established newspapers really dont paint the picture of how much momentum he has. I cant imagine a Bernie Sanders an alleged independent social iflt is anything wall street is going to church praying for every week. Donald trump is a huge unknown. One thing is for sure, the current regime been in power for serve and a half years hasnt been friendly to wall street but despite that, wall street has been cleaning up. A very tough one to divide on every score. Sanders campaign has been bringing in still a remarkable amount of money and funds at this point. Before we go, john, any levels youre watching here . Were down 46 points, a lackluster start to this week. Last week when we were talking, the 2053 is now a support level. The first two trading sessions of the quarter, i would look at that on the down sid. On the upside, to the 2077 level. I think f there youll see resistance. Very good. Thank you. Enjoy your time in texas, john manly. Thanks. The land of the full restaurants. See you later. Weve got 47 minutes left on the trading session and dow is down 46 points, a rather quiet start to the week, earnings dont get under way until next week. Theres still a lot of news, facebook is down after a deutsch bank note. What does it mean for Facebook Stock and recourse left for customers . Wellville that story up next. John manfred will be with us to talk in a first on c nshs interview and get his take on the teams new targeting policies being used to gain more control over prices among many other issues facing mlb. music plays from one way or another im gonna find y im gonna Getcha GetchaGetcha Getcha one way or another im gonna win ya im gonna Getcha GetchaGetcha Getcha one way or another im gonna see ya inhales cigarette when facebook went public it dropped and we bought it and flipped it at 50. Yes, so we make a lot of mistakes and we will continue to make a lot of mistakes, those mistakes will be buying companies at a price and then when it goes higher we dont buy because its past our margin of safety. Mario, mario, you never make a mistake taking a profit but for the Record Facebook did go public may 18, 2012 at 28 a share and trading around 112. 32. You know, you never look back after you sell. That was part of kellys new series on cnbc pro called the spark value edition. Be sure to catch the full uncut interview, its a lively conversation about some investments that he wishes he had done a little more differently on cnbc. Com. Im sure there are people that wish they had made that same mistake that he made. Yes. Facebook is lower and deutsch bank predicting the Quarterly Earnings would come in light when it reports on april 27 rgt but the firm says it would still buy any weakness in Facebook Stock because of what it calls a multiyear revenue runway. Oculist rift is experiencing shipping delays. There could be issues with the components. Customers who preordered a 600 head set will have to keep on waiting a little bit more. Ceo tweeting, the first set are going out slow area so were giving free shipping. Promising to update customers by april 12th but the company didnt give any estimates for the length of the delay or number of shipments affected or how muching this going to cost the company. Whatever the cost, its the right thing to do as individuals who preordered are early adopters saying these are the customers leading vr into the future. Virt u reality wont be material to facebook this year even if the Company Sells the 600,000 plus units he estimates. But he says by 2020, oculus should generate about 10 of facebooks total revenue by the year 2020. Its not just oculus struggling, the veem head set canceled some orders due to credit card billing issues. Guys, back over to you. I have a quick question because weve seen how popular it has become to trade the components of all of the apple devices and im wondering what we know about the providers of the components in the oculus and whether that could become a Cottage Industry . Thats a good question. I havent dug into which companies are that are making the pieces yetd but the issue is comparing the Facebook Oculus with apple iphones is a matter of scale. Eventually maybe by the year 2020, we could see enough scale in those head sets but the numbers for now are going to be so relatively small compared to the number of iphones because as the oculus said this is about early adopters and maybe next year where well start to see these high end head sets get more mainstream. Keeping customers happy, well see how they do in that department. Julia borsten. The dow is off the lows of the day but its down about 56 points and s p is down about nine points or half of one . Standing right there, weighing in on the markets and how long he thinks we could be stuck in a low return environment. Sheila bair will give her take on neil cash carrys push to break up the biggest u. S. Banks. At ally bank, no branches equals great rates. Its a fact. Kind of like grandkids equals free tech support. Oh, look at you, so great to see you none of this works. Come on in. On their auto insurance. Wouldnt a deal involve two parties discussing something . A little give . A little take . Because last time you checked, your rate was just, whatever they say it is. Why not give you some say in the matter . Or even better let your driving do the talking. Liberty mutual righttrack finally puts you in control of your rates. All you have to do is connect, drive and save. In fact, safe driving could save you up to 30 . With 5 off just for signing up. For righttrack. And the discount is good for the life of your policy. To get started, visit a local office or call Liberty Mutual today at take control of your rates. Visit a local office or call see Car Insurance in a whole new light. Liberty Mutual Insurance whats going on here . Im val, the orange money retirement squirrel from voya. Were putting away acorns. You know, to show the importance of saving for the future. So youre sort of like a Spokes Person . More of a spokes metaphor. Get organized at voya. Com. Welcome back. Sun eddieson tumbling, reporting late friday they are planning to file for bankruptcy in the comings weeks. The journal said the Renewable Energy company is in talks with two creditor groups to Fund Operations during that process. They have amassed almost 12 billion in debt to help it acquire wind and Solar Developers around the world. Meantime smith and weson is Holding Lower with bb and t and cl king downgrading the firearm maker stock. Wowan cited slowing background check information and bbt noted valuation concerns. A new report from black report says weve been borrowing from the future and living in a low return world. Equities still look good to them. Black rocks chief investment strategist is here at post nine. Welcome. Thank you. When we have talked about low yields and low returns for the last several years the worry was investors would chase yield in dangerous pieces. Is this still the risk in 2016 . You see chasing yield, chasing return for the tlast six or six years. The problem they face today is there arent many returns to chase, youve even yields significantly around the world and negative Interest Rates now in large parts of the world. Equity valuations have risen to levels although yields are attractive compared to bonds, lower returns going forward. Thats one of your themes, another theme you see, weve talked a lot about thedy vergence in Monetary Policy by Central Banks around the world. Were removing some of that easy money while japan and europe have been adding to it but thats starting to come together though now, right . One of the things that changed importantly in the last few weeks has been the pace ofdy verge ens has slowed down. Youve still got the ecb and bank of japan with their foot to the floor. We think theres more to come there. The pace of policy makes much more aaggressive and priced into the market. I think the dollar now looks less of a headwind. But you still think the slower pace by the u. S. Central bank is good for stocks though . The lower pace from the u. S. Central bank and ongoing easing from other global banks puts stocks in a sweet spot. You h