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    AT&T shares sink after company posts softer than expected revenue, cash flow

    AT&T shares declined after the company’s revenue came up short of Wall Street’s expectations.
    The carrier’s quarterly revenue rose to $30.14 billion, falling just shy of the $30.27 billion expected by analysts.
    Rivals Verizon and T-Mobile set to report next week. 

    An attendee makes a phone call by the AT&T Inc. stand on day two of the Mobile World Congress at the Fira de Barcelona venue in Barcelona, Spain, on Tuesday, Feb. 28, 2023.
    Angel Garcia | Bloomberg | Getty Images

    AT&T shares fell Thursday after the telecommunications giant reported first-quarter results that saw subscriber growth but a miss on revenue.
    The stock closed down more than 10%, at $17.65.

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    The company added 424,000 postpaid phone plans, which represents the amount of businesses and individual consumers that pay their bills at the end of each month. 
    That matched Wall Street expectations but it marked a dip compared to AT&T’s previous numbers, especially earlier in the pandemic. In the year earlier period, AT&T added 691,000 postpaid phone subscribers. 
    Investors look to postpaid phone numbers to measure the overall well-being of wireless companies’ profit centers. The early pandemic put an increased focus on the importance of a reliable cell connection, and analysts have been looking for slowdown indicators. 
    During the company’s previous earnings call, AT&T executives said they expect wireless industry growth to return to “normalized” levels this year. 
    Here’s how AT&T performed in the first quarter compared with what Wall Street anticipated, based on an average of analysts’ estimates compiled by Refinitiv:

    Earnings per share: 60 cents adjusted vs 59 cents expected
    Revenue: $30.14 billion vs $30.27 billion expected

    For the quarter ended March 31, AT&T reported net income of $4.18 billion, or 57 cents a share, compared with $4.76 billion, or 65 cents a share, a year earlier. Excluding items, the company posted adjusted per-share earnings of 60 cents for the period. The company’s quarterly revenue rose 1.4% to $30.14 billion from a year earlier.
    The carrier’s operations produced $1 billion in free cash flow, which was below analyst estimates. 
    On its earnings call Thursday, AT&T executives said the decline was “consistent with [its] expectations” due to the timing of capital investments and device payments. Executives said the company “remains confident” it will meet its forecast to generate around $16 billion in free cash flow this year. 
    After selling off DirecTV in 2021, AT&T has increasingly focused on its growing its wireless and home internet services.
    “We believe our results demonstrate that the customer-centric strategy we launched almost three years ago continues to deliver the right mix of quality subscriber and profit growth that will prove sustainable over the longer term,” CEO John Stankey said in the company’s earnings call.
    Competitors Verizon and T-Mobile are set to report results next week.  More

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    Stocks making the biggest moves midday: Tesla, IBM, American Express, AT&T and more

    Pedestrians walk through a street crossing in front of the American electric company car Tesla Motors official authorized car dealer store in Hong Kong, July 13, 2022.
    Budrul Chukrut | SOPA Images | Lightrocket | Getty Images

    Check out the companies making headlines in midday trading.
    Tesla  — Shares tumbled 9.8%. The action comes a day after the electric-vehicle maker reported net income and GAAP earnings for the first quarter that dropped more than 20% from the same quarter last year. CEO Elon Musk also suggested on the earnings call that Tesla would prefer higher volumes to higher margins.

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    11 hours ago

    11 hours ago

    IBM — The tech-based business services company’s shares were around flat despite gaining modestly aerlier in the session after Moderna announced it would be teaming up with IBM to advance mRNA technology. Moderna said it would access IBM’s quantum computing systems to accelerate the discovery of new mRNA vaccines.
    American Express — The credit card company’s shares fell 1% after the firm reported an earnings miss. American Express posted earnings per share of $2.40 for the first quarter,  below an estimate of $2.66, per Refinitiv. Its revenue did beat expectations, however.
    Las Vegas Sands — Shares gained 3.7%. On Wednesday, the casino and resort company posted a beat on first-quarter earnings. Las Vegas Sands reported adjusted earnings of 28 cents per share, larger than the 20-cent consensus estimate of analysts polled by Refinitiv. The $2.12 billion in revenue was also ahead of Wall Street’s expectation of $1.85 billion. Shares of Wynn Resorts rose 3.5%.
    BuzzFeed — The penny stock shed 19.7% after the company said it would lay off 15% of its staff and shut down BuzzFeed News.
    AT&T — Shares of the telecommunications giant slid 10.4% Thursday after it posted a beat on adjusted earnings but missed on revenue. The company was able to grow its subscribers, adding 424,000 postpaid phone plans, which matched Wall Street’s expectations.

    Zions Bancorporation — The regional bank lost 4.9%. The decline comes a day after Zions missed earnings expectations in the first quarter. Zions reported earnings per share of $1.33, while analysts polled by Refinitiv forecasted $1.53 per share. The bank posted $679 million in net interest income, which was lower than the $687.5 million expected by analysts polled by StreetAccount.
    F5 — Shares of the cloud-based software company declined about 2.1%. On Wednesday, F5 announced adjusted earnings of $2.53 per share and $703.2 million in revenue. Meanwhile, analysts polled by FactSet had anticipated earnings per share of $2.42 and $698.4 million in revenue. The company announced plans to reduce its global headcount by 620 employees, or 9% of its workforce.
    D.R. Horton — The homebuilder advanced 5.6% after beating Wall Street expectations in its fiscal second quarter. The company posted earnings of $2.73 per share on revenue of $7.97 billion. Analysts expected $1.93 in earnings per share on $6.47 billion in revenue, according to Refinitiv.
    Seagate — The technology stock slid 9.2% after the data storage company missed expectations on the top and bottom lines in its fiscal third quarter, according to FactSet. Seagate also set guidance for current-quarter earnings per share and revenue below Wall Street expectations, while CEO Dave Mosley said delayed orders from big customers weighed on demand.
    Lam Research — The maker of semiconductor equipment added nearly 7.2%. On Wednesday, the company beat expectations on both the top and bottom lines when reporting results, according to Refinitiv. However, the company gave a weak outlook for its fiscal fourth quarter.
    Tripadvisor — The travel booking company saw its stock drop 4.7% after Truist downgraded shares to hold from buy. The Wall Street firm said it sees value elsewhere in the travel industry. The stock is up about 2% on the year.
    Capri Holdings — Shares climbed 1.1% after Raymond James upgraded the stock to strong buy from outperform. The Wall Street firm said the global luxury fashion company behind Versace, Jimmy Choo and Michael Kors is “poised to report better-than-expected results,” given lowered expectations.
    Raytheon Technologies — Shares declined 1.2% after Jefferies downgraded Raytheon Technologies to hold from buy, according to FactSet. The downgrade comes ahead of the defense firm’s first quarter earnings report, which is set to release April 25.
    Shift4 Payments — The payment processing stock rose 5.1% after CEO Jared Isaacman responded to a Wednesday short report from Blue Orca in a letter to shareholders. Stephens upgraded the stock to overweight from equal weight, noting it did not see validity to the contents of the Blue Orca report.
    NetApp — The hybrid cloud data services company slipped 4.2% following a downgrade to underperform from neutral by Bank of America. The firm said the company should experience weaker demand.
    Citizens Financial — Shares of the large regional bank fell 4.7% on Thursday after Bank of America downgraded the stock to neutral from buy. The firm said in a note to clients that there were better risk/reward opportunities elsewhere in the bank sector for investors, citing Citizens’ guidance for net interest income. Citizens also posted quarterly results Wednesday, with revenue coming just short of Wall Street’s expectations, according to FactSet.
    Sea Limited — Shares slid 3.4% after UBS downgraded the Singapore-based technology company to neutral from buy, citing a lack of visibility.
    Elanco — The pet health stock added 2.9% on an upgrade to overweight from equal weight by Barclays. The firm said the stock has an attractive risk-reward ratio.
    — CNBC’s Yun Li, Hakyung Kim, Michelle Fox, Sarah Min, Brian Evans and Jesse Pound contributed reporting More

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    Home sales fell in March amid volatility in mortgage rates

    Sales of previously owned homes declined 2.4% in March compared with February, according to the National Association of Realtors.
    The weakness is likely due to a sharp jump in mortgage interest rates.
    “Home sales are trying to recover and are highly sensitive to changes in mortgage rates,” said Lawrence Yun, chief economist for the Realtors.

    Homes in Centreville, Maryland, US, on Tuesday, April 4, 2023. 
    Nathan Howard | Bloomberg | Getty Images

    Sales of previously owned homes declined 2.4% in March compared with February, according to a monthly report from the National Association of Realtors.
    At a seasonally adjusted, annualized rate, that amounts to 4.4 million units. Sales were 22% lower than March of last year.

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    The weakness is likely due to a sharp jump in mortgage interest rates. With home prices still historically high, today’s buyers are increasingly sensitive to even daily moves in mortgage rates. The March sales were likely based on contracts signed in January and February, when rates were volatile.
    The average rate on the popular 30-year fixed mortgage started January around 6.45%, and briefly dropped below 6% by the end of the month, according to Mortgage News Daily. But things turned around sharply in March, with the rate jumping straight back up to 6.45% in the first week of March and then continuing higher to end the month at 6.85%.
    “Home sales are trying to recover and are highly sensitive to changes in mortgage rates,” said Lawrence Yun, chief economist for the NAR. “Yet, at the same time, multiple offers on starter homes are quite common, implying more supply is needed to fully satisfy demand. It’s a unique housing market.”
    Supply did increase slightly, but it is still historically low. At the end of March, there were 980,000 homes for sale, an increase of 1% from February and 5.4% from March 2022. At the current sales pace, that represents just a 2.6-month supply. A six-month supply is considered a balanced market between buyer and seller.
    Inventory is now 41% lower than pre-Covid pandemic levels in 2019. New listings were down 17% from March 2022. The reason supply is higher is simply because homes are staying on the market longer, an average 29 days compared with 17 days a year ago.

    That tight supply is keeping home prices from cooling quite as much as some had predicted. The median price of an existing home sold in March was $375,700, down 0.9% year over year. That is, however, the weakest read since January 2012. Regionally, prices rose everywhere but in the West, where homes are most expensive.
    That median price also indicates that more homes are selling on the lower end of the market. Sales of homes priced over $1 million were down 29% from March 2022, but sales of homes priced between $250,000 and $500,000 declined by a smaller 14%.
    “Affordability is not only an issue for first-time homebuyers, but also for many repeat buyers who still need to take on a mortgage,” said Danielle Hale, chief economist for Realtor.com, noting that a recent survey by the home listing site showed that 82% of potential sellers needing to sell and buy felt “locked in” by their existing low mortgage rate.
    “This suggests that both existing home supply and demand will be sensitive to mortgage rate changes,” added Hale.
    Cash continues to be king in the market, with all-cash transactions making up 27% of March sales, down slightly from 28% in February, but still higher than historical norms. Investors made up 17% of buyers, lower than the 25% share seen last summer. First-time buyers made up 28% of sales, down from 30% the year before. Historically that share is closer to 40%.
    “High home prices and higher mortgage rates are clearly presenting challenges,” Yun said on the first-time buyer share.
    Correction: Sales of homes priced between $250,000 and $500,000 declined by 14%. An earlier version misstated the range. More

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    Moderna teams up with IBM to put A.I., quantum computing to work on mRNA technology used in vaccines

    Moderna and IBM are teaming up to use generative artificial intelligence and quantum computing to advance mRNA technology, the development at the core of the company’s Covid vaccine. 
    The companies said they signed an agreement that would allow Moderna to access IBM’s quantum computing systems and generative AI model.
    The agreement comes as Moderna navigates its post-pandemic boom driven by its mRNA Covid vaccine. 

    Sopa Images | Lightrocket | Getty Images

    Moderna and IBM are teaming up to use generative artificial intelligence and quantum computing to advance mRNA technology, the development at the core of the company’s blockbuster Covid vaccine, the companies announced Thursday. 
    “We are excited to partner with IBM to develop novel AI models to advance mRNA science, prepare ourselves for the era of quantum computing, and ready our business for these game-changing technologies,” Moderna CEO Stephane Bancel said in a statement.

    Moderna shares dipped slightly Thursday, while IBM’s stock was about flat.
    The companies said they signed an agreement for Moderna to access IBM’s quantum computing systems. Those systems could help accelerate Moderna’s discovery and creation of new messenger RNA vaccines and therapies, according to Dr. Dario Gil, director of IBM research. 
    IBM will also provide experts who can help Moderna scientists explore the use of quantum technologies, the companies added. Unlike traditional computers, which store information as either zeroes or ones, quantum computing hinges on quantum physics. That allows those systems to solve problems too complex for today’s computers.
    Under the deal, Moderna’s scientists will also have access to IBM’s generative AI model known as MoLFormer. Generative AI describes algorithms that can be used to create new content based on the data they have been trained on.
    The companies said Moderna will use IBM’s model to understand “the characteristics of potential mRNA medicines” and design a new class of vaccines and therapies.

    The agreement comes as Moderna navigates its post-pandemic boom driven by its mRNA Covid vaccine. 
    The Cambridge, Massachusetts-based company became a household name for its messenger RNA technology, which teaches human cells to produce a protein that initiates an immune response against a certain disease. 
    Moderna is trying to harness that technology to target other diseases as the world emerges from the pandemic and demand for blockbuster Covid vaccines and treatments slows. 
    The company is already working to develop a vaccine targeting respiratory syncytial virus and a shot that can target different types of cancer when combined with Merck’s immunotherapy Keytruda. 
    The new agreement also comes as IBM ramps up its investment in AI with new partnerships. Earlier this year, the Armonk, New York-based company announced a deal with NASA to help build AI foundation models to advance climate science. 
    Those efforts fall in line with a recent boom in AI, largely driven by the release of OpenAI’s ChatGPT. The AI-powered chatbot answers questions in clear, concise prose, and immediately caused a sensation after its launch. 
    ChatGPT kicked off an AI arms race and prompted questions about the full extent of artificial intelligence’s capabilities and risks. More

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    EU lawmakers approve world’s first comprehensive framework for crypto regulation

    In a vote Thursday, the EU Parliament voted 517 in favor and 38 against to pass the Markets in Crypto Act, or MiCA.
    The rules will impose a number of requirements on crypto platforms, token issuers and traders around transparency, disclosure, authorization, and supervision of transactions.
    MiCA is the most comprehensive regulatory framework for digital assets to date.
    The parliamentary blessing paves the way for MiCA to become law in 2024, putting the EU a step ahead of the U.S. and U.K.

    Markets in Crypto-Assets (MiCA) is the first attempt at creating comprehensive regulation for digital assets in the EU.
    Sopa Images | Lightrocket | Getty Images

    Lawmakers in the European Parliament have approved the world’s first comprehensive package of rules aimed at regulating the cryptocurrency industry.
    In a vote Thursday, the EU Parliament voted 517 in favor and 38 against to pass the Markets in Crypto Act, or MiCA. The legislation, which seeks to reduce risks for consumers buying crypto assets, will mean providers can become liable if they lose investors’ crypto-assets.

    The rules will impose a number of requirements on crypto platforms, token issuers and traders around transparency, disclosure, authorization, and supervision of transactions, the EU Parliament said in a statement Thursday.
    Platforms will be required to inform consumers about the risks associated with their operations, while sales of new tokens will also come under regulation.
    Stablecoins like tether and Circle’s USDC will be required to maintain ample reserves to meet redemption requests in the event of mass withdrawals. Stablecoins that become too large also face being limited to 200 million euros ($220 million) in transactions per day.
    The European Securities and Markets Authority, or ESMA, will be given powers to step in and ban or restrict crypto platforms if they are seen to not properly protect investors, or threaten market integrity or financial stability.
    MiCA also addresses environmental concerns surrounding crypto, with firms forced to disclose their energy consumption as well as the impact of digital assets on the environment.

    Mairead McGuinness, European commissioner for financial services, lauded the law’s approval Thursday and said she expects the rules to start applying “from next year.”

    Andrew Whitworth, EMEA policy director for blockchain firm Ripple, said the parliamentary blessing marked “an important milestone for the crypto industry around the world.”
    “Consistency in implementation around the EU will be key in providing crypto companies with the operational clarity to fuel innovation across Europe and guard against unwitting fragmentation of the Single Market,” Whitworth told CNBC via email.
    “As part of this, there is a need to ensure that the legislation is applied proportionally with regards to how different companies’ crypto offerings are treated, based on the risk profiles of their activities.” 

    A step ahead of the U.S.

    Parliament also cleared a separate law which aims to reduce the anonymity involved in transfers of cryptocurrencies like bitcoin and stablecoins, voting 529 to 29 to pass the Transfer of Funds regulation.
    This applies the so-called “travel rule,” which requires financial companies to screen, record and communicate information on both sender and recipient, to crypto transactions to help combat money laundering.

    Transfers between exchanges and so-called “self-hosted wallets” owned by individuals will need to be reported if the amount tops the 1,000-euro threshold, a contentious issue for crypto enthusiasts who often trade digital currencies for privacy reasons.
    In a tweet, Changpeng Zhao, CEO of the world’s largest crypto exchange Binance, said his company was “ready to make adjustments to our business over the next 12-18 months to be in a position of full compliance.”
    Binance is under intense scrutiny from regulators over how it operates. In March, the Commodity Futures and Trading Commission sued Binance, Zhao and Binance’s former chief compliance officer, Samuel Lim, alleging the company actively solicited U.S. users without permission.
    Zhao hailed MiCA as a “pragmatic solution to the challenges we collectively face.”
    Regulators have sought to rein in the crypto market in the wake of numerous catastrophic industry failures. In May, terraUSD, a controversial stablecoin project, unraveled in a $60 billion flameout after investors lost confidence in its technical underpinning.
    The demise of terraUSD caused a chain reaction in the industry, with various other firms, including Three Arrows Capital, BlockFi and Voyager Digital going bust as well. FTX, formerly the fourth-largest crypto exchange, filed for bankruptcy in November in the most high-profile crypto industry failure to date.
    The move puts the EU a step ahead of the U.S. and U.K., which are yet to bring in formal rules for the crypto space. A U.K. official on Monday said specific crypto regulation could come into force within a year or so.
    Once the EU laws come into effect, crypto companies will be able to use their licenses in one European country to “passport” their services across various member states. Crypto companies have been scrambling to obtain licenses from various European authorities and open new offices in anticipation of the law coming into effect.
    Crypto exchanges Coinbase and Kraken recently got virtual asset service provider licenses in Dublin. Blockchain firm Ripple is seeking a license from the Irish central bank.

    U.S. crypto companies have been looking abroad for expansion in response to tough regulatory moves in their home turf. The Securities and Exchange Commission issued Coinbase with a Wells notice, which is often one of the final steps before the regulator formally issues charges, last month.
    On Thursday, Coinbase CEO Brian Armstrong told CNBC at a fintech event the company is prepared for a “years-long” legal battle with the SEC.
    He said separately in a talk on stage that the U.S. “has the potential to be an important market in crypto” but right now is not delivering regulatory clarity. If this goes on, he said, then Coinbase would consider options of investing more abroad, including relocating from the U.S. to elsewhere.
    – CNBC’s Arjun Kharpal contributed to this report
    WATCH: FTX’s collapse is shaking crypto to its core. The pain may not be over More

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    Paramount fires back at Warner Bros. Discovery in ‘South Park’ streaming lawsuit

    Paramount Global responded to Warner Bros. Discovery in the feud over the streaming rights for cartoon comedy series “South Park.”
    Paramount has denied the allegations and filed a counterclaim this week, seeking more than $50 million it believes it is owed.
    Warner Bros. Discovery brought the lawsuit against Paramount in February, seeking hundreds of millions of dollars for what it views as a breach of contract for the exclusive rights to “South Park.”

    Stan And Kyle From The Episode “Clubhouses.”
    Getty Images | Hulton Archive | Getty Images

    It’s going down in “South Park.”
    Paramount Global snapped back at Warner Bros. Discovery in a lawsuit over the streaming rights for the comedic cartoon, and is seeking more than $50 million in unpaid fees.

    The counterclaim, which Paramount filed on Wednesday, comes nearly two months after the feud between the two media giants kicked off.
    In February, Warner sued Paramount, seeking hundreds of millions of dollars for what it believed was a breach of contract. Warner alleged Paramount withheld specials and other related “South Park” content as its own fledgling streaming service, Paramount+, was lifting off.
    Paramount filed a counterclaim on Wednesday, once again denying allegations that it didn’t live up to its end of the bargain in its contract to license the rights of “South Park” to Warner for its HBO Max streaming service.
    The related “South Park” content was created during the height of the pandemic, when the show’s creators and staff couldn’t meet normally to turn out episodes and instead worked on features that ended up being double the length of the usual 22-minute installments.
    “Warner Bros. Discovery has indefensibly refused to pay more than $50 million it owes for South Park content that it has undisputedly received, and which HBO Max continues to air and exploit,” a Paramount spokesperson said in a statement. “Warner Bros. Discovery’s argument that Paramount Global was required to deliver additional South Park content is baseless and wholly unsupported by the parties’ agreement.  Furthermore, it certainly does not justify WBD’s refusal to pay for immensely valuable content all of which it has received and from which it continues to profit.”

    In the initial lawsuit, Warner said it agreed in 2019 to pay more than $500 million, or roughly $1.69 million per episode, to license episodes of the long-running cartoon that features bad-mouthed elementary school children for HBO Max. “South Park” has been airing on Paramount’s cable-TV network Comedy Central for decades.
    Warner said in the earlier filing that during the bidding process for the streaming rights Paramount had allegedly asked if they could share the rights for Paramount+. Warner rejected that proposition, and said during the height of the pandemic, Paramount went back on its contract and withheld content.
    “We believe that Paramount and South Park Digital Studios embarked on a multi-year scheme of unfair trade practices and deception, flagrantly and repeatedly breaching our contract, which clearly gave HBO Max exclusive streaming rights to the existing library and new content from the popular animated comedy ‘South Park,'” according to a Warner spokesperson.
    Warner has alleged that the scheme was concocted when Paramount’s subsidiary MTV signed a deal with the “South Park” creators in 2021, which called for exclusive content for Paramount+, reportedly worth $900 million.
    Paramount alleges that Warner refused two payments of more than $26 million in licensing fees it was owed in December 2022 and again in March 2023, adding there has been “indications that it will continue to withhold the $225 million in license fees still owed for the rest of the five-year term.”
    The company added that Warner’s HBO Max – which is being relaunched as Max – continues to feature the entire “South Park” library. More

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    Ford F-150 Lightning fire footage highlights a growing EV risk

    New video footage of a fire that started in a Ford F-150 Lightning earlier this year highlights an emerging concern regarding the adoption of electric vehicles.
    The previously unreleased footage, obtained by CNBC, shows smoke billowing from three tightly packed electric pickups. Moments later, flames shoot several feet above the vehicles, which were unoccupied.
    Fires involving EV batteries can burn hotter and longer and require new techniques to extinguish, posing a growing challenge to first responders.

    DEARBORN, Mich. — New video footage of a fire involving a Ford F-150 Lightning this year highlights a growing concern around electric vehicles: volatile fires from the batteries that power them.
    The previously unreleased footage, which CNBC obtained through Michigan’s Freedom of Information Act from the Dearborn Police Department, shows smoke billowing from three tightly packed electric pickups in a Ford Motor holding lot in Dearborn, Michigan.

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    Moments later, flames shoot several feet above the vehicles, which were unoccupied. It wasn’t clear based on public documents and police video how long the fires burned. Experts say EV fires can take hours, rather than minutes, to extinguish.
    EV fires have become a growing concern as automakers push to increase sales of electric vehicles and meet tightening emissions standards.
    The Biden administration has set a target for half of new vehicles sold in the U.S. by 2030 to be electric. Automakers are spending billions of dollars to electrify their lineups. However, there’s been little to no discussion about first responder training for when the vehicles catch fire, whether due to a malfunction or, more commonly, a crash.

    An electric Ford F-150 Lightning caught fire on Feb. 4, 2023 due to a battery issue traced back to one of the automaker’s suppliers. The blaze spread to three electric pickups in a holding lot of Ford’s in Dearborn, Michigan.
    Dearborn Police Department

    The Feb. 4 holding lot fire at Ford’s Rouge Electric Vehicle Center in Dearborn prompted the company to quickly halt production of the new pickup for five weeks. The automaker also recalled 18 of the vehicles, which Ford has likened to the Model T in terms of importance to the company.
    Ford identified the root cause as related to battery cell production made by supplier, SK On.

    Police officers responding to the blaze described the vehicles as being “engulfed in flames” and can be heard on video worrying that the vehicles could “blow up.” Lithium-ion batteries, commonly used in EVs, can be volatile and extremely difficult to put out once on fire.
    “We’re not putting this f—er out. Look at it,” said one responding officer during the February F-150 Lightning fire.
    First responders can be heard on video expressing concern about how much water is needed to put out EV fires and whether a special foam would be required. They also questioned the viability and safety of electric vehicles.
    “They have to put like a whole f—ing lake on it to put them out,” the same officer said during the Feb. 4 event.

    An electric Ford F-150 Lightning caught fire on Feb. 4, 2023 due to a battery issue traced back to one of the automaker’s suppliers. The blaze spread to three electric pickups in a holding lot of Ford’s in Dearborn, Michigan.
    Dearborn Police Department

    The footage obtained by CNBC totaled about two hours of video, including overlapping footage, from 17 police bodycams and vehicle dashcams between 3:36 p.m. and 4:22 p.m. ET, according to time stamps on the bodycam videos.
    Photos obtained from Dearborn Police through a separate Michigan FOIA request show the aftermath of the blaze. One of the three vehicles is barely recognizable, with its body nearly melted down to the ground. The two neighboring vehicles were also heavily damaged.
    “There was only one [vehicle on fire] when we got here. They’re catching. It’s these frickin’ batteries,” that same responding officer said, according to the footage.
    The F-150 Lightning fire occurred while the vehicle was charging in a holding lot during a pre-delivery quality check and was caused by an internal short circuit due to a manufacturing issue when cells in the battery were at a high state of charge, according to public documents associated with the recall. Ford said engineers determined there was no evidence of a charging fault.
    “Together with SK On, we confirmed the root causes and swiftly implemented quality actions,” Ford said in a statement to CNBC. “The Rouge Electric Vehicle Center has been back up and running since March 13 and is back to full production and shipping vehicles to customers.”
    The fire added to ongoing quality and execution issues that have plagued the automaker as it attempts to restructure its business and position itself better for EVs.

    An electric Ford F-150 Lightning caught fire on Feb. 4, 2023 due to a battery issue traced back to one of the automaker’s suppliers. The blaze spread to three electric pickups in a holding lot of Ford’s in Dearborn, Michigan.
    Dearborn Police Department

    Growing concern

    Vehicle fires are not new. They regularly occur in traditional vehicles with internal combustion engines. But the fires that can result from EVs such as the F-150 Lightning and their batteries are increasingly worrying for first responders across the country, in part because they involve a chain reaction between battery cells known as thermal runaway.
    Such fires also are a growing problem for automakers who could lose the momentum they’ve built with car buyers and climate-conscious lawmakers if the risk continues shaking public confidence in the technology.
    Fires involving EV batteries can burn hotter and longer and require new techniques to extinguish.
    “This is a big issue globally,” said Michael O’Brian, board member of the International Fire Chiefs Association, who leads fire and life safety. “We need to better understand what the best processes are through testing and evaluation with real firefighters.”

    EVs are powered by a series of battery cells inside an airtight pack that’s designed to prevent any substances from passing in or out. The packs also are mainly built into the underbodies or frames of the vehicles, a spot that can be difficult for first responders to reach. And even if they could easily access the cells, the “fire” is actually a chemical reaction and far more difficult to handle than a traditional gasoline fire.
    “You’re now dealing with a vehicle that doesn’t work like anything else you’ve been taught,” said David Dalrymple, a volunteer firefighter in New Jersey who owns a first response training and consulting business called RoadWay Rescue. “It’s a totally different animal. … The primary goal is to cool it down to take away that chemical reaction.”
    Dalrymple, who also serves on a Society of Automotive Engineers committee focusing on EV fire issues and standards, noted some other countries allow first responders to look up what hazardous materials are in a vehicle based on the license plate. A similar system could be useful in the U.S., he said.

    A 2019 Chevrolet Bolt EV caught fire at a home in Cherokee County, Georgia on Sept. 13, 2021, according to the local fire department.
    Cherokee County Fire Department

    Experts are still trying to determine EV fire incident rates; the data is difficult to collect from disparate fire departments. Vehicle fires involving internal combustion engines are far more common than EVs, however experts expect that to continually even out as more electrified vehicles are sold. 
    Problems with plug-in vehicles that use such batteries have led automakers including Ford, General Motors, Hyundai and Porsche to recall models. GM from 2020 to 2021 had to recall all of its electric Chevrolet Bolt models built up to that point due to a battery issue that resulted in several reported fires.
    As a result, GM expanded an ongoing nationwide program to educate public safety, fire and emergency service providers on how to most effectively handle emergency situations involving electric vehicles.
    The state of Virginia has taken it upon itself to train firefighters. A bill that requires them to complete a training program about the risk of electric vehicle fires passed unanimously this year.

    Trial by fire

    Firefighters increasingly are facing the challenges created by EV fires. This is made more complicated by what some experts say is a lack of regulations and standards, which allows automakers to do as they like regarding the design and rollout of EVs.
    For more than a century, first responders have quite easily extinguished vehicle engine fires by popping the hood and drowning the area in water. That playbook doesn’t work with EVs.

    An electric Ford F-150 Lightning caught fire on Feb. 4, 2023 due to a battery issue traced back to one of the automaker’s suppliers. The blaze spread to three electric pickups in a holding lot of Ford’s in Dearborn, Michigan.
    Dearborn Police Department

    Each vehicle is unique and may require different techniques to extinguish, which means there are no set standards for putting out an EV fire.
    Current best practices for an EV fire, depending on who you speak with, include submerging the vehicles in water, piercing the battery pack and inundating it with water, disabling a vehicle’s 12-volt circuit, or simply letting the fire burn until it’s out, emitting chemical toxins into the air.
    O’Brian, a fire chief in suburban Brighton outside of Detroit, said the bigger the battery, the higher the concern for first responders. He also noted that new battery plants to produce the cells for the vehicles often cost billions of dollars, highlighting what he saw as comparatively little funding being directed to the training of fire departments.
    “I continue to keep advocating that both state and federal government needs to truly invest within the fire service on this topic for training, best practices, lab time,” O’Brian said. “It’s as simple as what’s the best way to turn up your efforts when exposed to lithium-ion off-gassing” when the vehicles catch fire.
    O’Brian said once the thermal runaway starts there’s really no putting the fire out unless you stop the chain reaction of lithium-ion cells from overheating.
    It’s unclear how many, if any, people have died from an electric vehicle spontaneously catching fire. There have been reports of fatal fires following crashes, but many times EVs have caught fire when charging and unoccupied.
    There’s also the risk of reignition: Lithium-ion battery fires can re-engage weeks later with little to no warning. The Sacramento Metropolitan Fire District responded to such an incident last year involving a Tesla that had been in an accident three weeks prior.
    William Lerner, an independent safety tech inventor and delegate for the International Organization for Standardization, said best practices would call for a three-week monitoring period after a fire, with particular attention during the first 24 hours.
    Lerner, who works closely with first responders and their trainers, expressed concern that first responders may not have the appropriate personal protection and safety equipment to handle the fires. He said the equipment used for a traditional vehicle fire may not suffice.
    “The whole way of dealing with this is completely different,” he said. “The only similarities are they have four wheels, and they look like cars. It’s a completely different product, and that’s the problem.”
    Ford, in its Emergency Response Guide for the 2022 Lightning, broadly details some issues about the potential for reignition in the event of a fire and suggests storing the vehicle outside or at least 50 feet away from other objects. It does not offer a solution for putting out a battery fire other than “LARGE amounts of water” or using a “Class ABC powder-type extinguisher to contain and smother the flames.”
    Ford said the company “took part in an information-sharing session on how to handle battery fires in summer 2022 with members of the Dearborn fire department,” which responded to the blaze in February.

    An electric Ford F-150 Lightning caught fire on Feb. 4, 2023 due to a battery issue traced back to one of the automaker’s suppliers. The blaze spread to three electric pickups in a holding lot of Ford’s in Dearborn, Michigan.
    Dearborn Police Department

    “We continue to look at opportunities to help educate on this topic,” the automaker said.
    Dearborn Police Chief Joseph Murray declined to comment about the Feb. 4 F-150 Lightning fire or any training his department has done for EVs.
    Experts say such training for first responders is a start, but it needs to be constantly updated and rolled out. There are also concerns about the manpower and ability of fire departments to handle EV fires, according to several officials. Not to mention the dire circumstances they may be dealing with involving vehicle occupants, which are their first priority.
    “When you have an EV fire, you don’t have the time to stop and look through an emergency response guide or to call, you know, GM, or methodically figure out is it a 2012 Tesla or 2022,” Lerner said. “You’ve got human beings in there that can die. So, you may not have one second to waste in order to get these human beings out.”
    — CNBC’s Lora Kolodny contributed to this report. More

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    Stocks making the biggest premarket moves: Tesla, IBM, American Express, KeyCorp and more

    A sign marks the location of a Tesla dealership on April 19, 2023 in Schaumburg, Illinois.
    Scott Olson | Getty Images

    Check out the companies making the biggest moves in premarket trading:
    Tesla — The electric vehicle maker tanked about 7% after reporting net income and earnings that fell more than 20% from last year. CEO Elon Musk said an uncertain macroenvironment could impact people’s decisions to buy cars.

    IBM — The tech stock rose more than 1% in premarket trading after the company reported an earnings beat. IBM posted adjusted earnings of $1.36 per share, compared to $1.26 per share as expected by analysts, according to Refinitiv. However, its revenue came in below expectations as parts of the company’s infrastructure business showed a slowdown.
    American Express — Shares dipped 1.3% after the payments company reported adjusted earnings per share of $2.40 for the first quarter, below StreetAccount’s estimates of $2.66. However, revenue topped expectations, coming in at $14.28 billion compared to the $13.98 billion expected.
    F5 — The cloud-based software company’s shares were down about 7% after a mixed second fiscal quarter earnings report. F5 posted $2.53 adjusted earnings per share and $703.2 million in revenue. Analysts had anticipated earnings per share of $2.42 and $698.4 million in revenue, according to FactSet data. The company also announced it would be reducing its global headcount by 620 employees, or 9% of its workforce.
    Bath & Body Works — Shares dipped 3.7% following a downgrade to neutral from overweight by Piper Sandler. The Wall Street firm said persisting margin pressures are limiting potential upside.
    Las Vegas Sands — The casino operator added 5.5% after posting adjusted earnings per share of 38 cents for the first quarter, beating the 20 cents expected of analysts polled by Refinitiv. The company also topped revenue estimates.

    AT&T — The telecommunications giant fell 4.6% after reporting mixed earnings for the first quarter. Its revenue of $30.14 billion missed analysts’ estimates of $30.27 billion, per Refinitiv. However, adjusted earnings per share came in at 60 cents, slightly above the 59 cents expected.
    Zions Bancorporation — Shares tumbled 4.5% after the regional bank reported earnings per share of $1.33, missing analysts’ expectations of $1.53, according to Refinitiv. Zions also reported $679 million in net interest income, below estimates of $687.5 million, per StreetAccount.
    D.R. Horton — Shares popped nearly 5% in the premarket after the homebuilder reported an earnings and revenue beat for its second quarter. Earnings per share was $2.73, versus the $1.93 expected by analysts, per StreetAccount. Revenue came in at $8 billion, compared to the $6.45 billion expected.
    Alaska Air — Shares of the mid-sized airline fell more than 1% after Alaska reported wider-than-expected losses for the first quarter. The company lost an adjusted 62 cents per share on $2.20 billion of revenue. Analysts surveyed by Refinitiv expected a loss of 48 cents per share on $2.19 billion of revenue. Alaska’s net loss was flat year over year.
    KeyCorp — The financial services company’s shares declined about 3% after posting an earnings and revenue miss in the first quarter. The bank reported per-share earnings of 30 cents and revenue of $1.71 billion. Analysts polled by FactSet had estimated 44 cents earnings per share and $1.79 billion in revenue. KeyCorp said that its average deposits decreased by $2.3 billion from the prior quarter.
    — CNBC’s Hakyung Kim, Jesse Pound and Yun Li contributed reporting. More