Business

Boeing delivered 35 planes in October, down from 51 in September.
The manufacturer said a flaw in 737 Max fuselages hurt deliveries last month.
Boeing last week laid out its goals to return to around $100 billion in annual sales by the middle of the decade.

A Boeing 737 MAX 8 sits outside the hangar during a media tour of the Boeing 737 MAX at the Boeing plant in Renton, Washington.
Matt Mcknight | Reuters

Boeing’s aircraft deliveries in October fell from a month earlier after a fuselage flaw in its bestselling 737 Maxes delayed handovers of new planes.
Boeing delivered a total of 35 planes in October, down from 51 in September. Of those, 22 were 737 Maxes.

The Virginia-based manufacturer’s commercial aircraft unit had told investors that the flaw would impact its delivery numbers for the month.
“We’ll recover on that quickly,” Stan Deal, chief executive of Boeing’s commercial airplane unit, said during an investor event last week. “We can surge and we will recover for our deliveries at the end of the year, but that adverse quality which we have to manage out of the system was an impact.”
Boeing is making about 31 of the 737s a month. Last week, it told investors that it expects to deliver between 400 and 450 of its 737s next year, up from about 375 planes this year.
The company logged orders for 122 of its 737 Max planes in October from carriers including Alaska Airlines and British Airways’ parent International Consolidated Airlines Group.
Supply chain problems and labor shortages have prevented the manufacturer from ramping production up further, an issue that has hit rival Airbus, too, just as travelers are returning in droves. JetBlue and United are among the airlines that have complained about aircraft delivery delays.

Boeing last week laid out a recovery plan for investors and analysts that forecast a return to annual sales of around $100 billion by the middle of this decade. CEO Dave Calhoun said the company could introduce a new airplane, but not until the middle of the next decade since advances in engine technology don’t yet warrant enough of a fuel cut to draw buyers.
The company has struggled since two deadly crashes of the 737 in 2018 and 2019, the Covid-19 pandemic, manufacturing flaws that paused handovers of its 787 Dreamliners, and problems in its defense unit, including delays and cost overruns of the two 747s that are slated to eventually serve as Air Force One.

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Anheuser-Busch is the first Fortune 500 company to purchase a Major League Pickleball team.
The beer brand joins owners including LeBron James and Tom Brady in getting in on the popularity of the paddle sport.
Google searches for “pickleball” have shot up 219% in the U.S over the last five years, according to paddle maker Selkirk.

Zane Navratil and Parris Todd of BLQK celebrate a point during a group play Major League Pickleball match against the Florida Smash at Pickle & Chill on October 15, 2022 in Columbus, Ohio.
Emilee Chinn | Getty Images

Major League Pickleball has named its newest team owner, and it’s a major beer brand.
The rapidly growing sports league announced on Tuesday that Anheuser-Busch will purchase a Major League Pickleball team. The team will begin playing in the 2023 season.

In recent months, MLP has announced dozens of high-profile investors, including NBA superstars LeBron James and Kevin Durant and Tom Brady and Drew Brees of NFL fame. Anheuser-Busch is the first Fortune 500 company to purchase an MLP team.
Financial terms of the deal were not disclosed, but a league representative told CNBC the going rate for a team is in the seven figures.
“We love the accessibility of pickleball and we think it’s an amazing opportunity for us to gain relevance and excitement for our brands,” Matt Davis, head of Anheuser-Busch’s U.S. sports marketing and partnerships, told CNBC.
Next year will be its biggest year to date, MLP said. The league is growing from 12 to 16 teams, with events doubling to six. Player prize money and payouts will exceed $2 million, it said.
Anheuser-Busch said it will be involved in all aspects of the team, including choosing players in drafts and deciding on sponsors. Davis said he hopes to put a general manager and other team members in place in the days ahead.

“Our focus will be on, how do we create a compelling team and compelling team culture and identity that will resonate with fans? I think from there, we’ll look for strategic partners and sponsorship collaborations with other teams to make sure we’re doing things that are constantly exciting the fan bases,” he said.
Major League Pickleball also sees the partnership as a big win.
“Anheuser-Busch is one of the most impactful professional sport sponsors in the U.S. To have them join as an ownership partner is an incredible opportunity for Major League Pickleball,” said MLP founder and CEO Steve Kuhn.
Pickleball — a cross between tennis, badminton and pingpong — has surged in popularity, with many people picking up the sport during the pandemic as a safe way to be social and active outdoors. In 2021, nearly 5 million people played the sport, according to the Sports & Fitness Industry Association.
Google searches for “pickleball” have risen 219% in the U.S over the last five years, according to paddle maker Selkirk.

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A growing percentage of Americans with auto loans are struggling to make their monthly payments.
Subprime borrowers in particular are feeling the impact of higher prices for both new and used vehicles.
The rise in delinquencies also follows the end of loan-accommodation programs set up during the pandemic.

Sefa Ozel | Istock | Getty Images

With inflation cutting into the budgets of Americans, a growing percentage of people with auto loans are struggling to make their monthly payments.
TransUnion, which tracks more than 81 million auto loans in the U.S., said Tuesday the percentage of loans that are at least 60 days delinquent hit 1.65% in the third quarter, the highest rate for 60-day delinquencies in more than a decade

“Consumers still want to stay current as best that they can. It’s just this inflationary environment is making it challenging,” Satyan Merchant, senior vice president of TransUnion, told CNBC. “It leaves fewer dollars in their pocket to make the auto loan payment, because they’ve got to pay more for eggs and milk and other things.”
The biggest impact is being felt among among subprime borrowers who have lower credit scores and often have lower income.
In September, the average transaction price for a new vehicle was $47,138, up almost $2,600 compared with the year-earlier period, according to the auto research firm Edmunds. The average price paid for a used vehicle was $30,566, a jump of almost $2,500 from September 2021.
The rise in delinquencies also follows the end of loan-accommodation programs set up during the pandemic. Those programs were designed to help consumers who may have lost their job to avoid having a car repossessed because they couldn’t make the monthly payment. 
“There has been this effect where the delinquency that may have occurred over the last few years is really just pushed out or delayed because that consumer didn’t have to make payments or their status was on an accommodation. So now some of those are hitting,” Merchant said. 

TransUnion said approximately 200,000 auto loans that previously took advantage of the pandemic-era accommodation are now listed as 60 days delinquent. About 100,000 accounts that are more than 60 days delinquent remain in accommodation programs, the credit firm said.
Despite the rise in delinquencies, Merchant believes the auto loan market remains healthy. The average interest rate for a new-vehicle loan climbed to 5.2% in the third quarter, while the average rate for a used vehicle loan hit 9.7%, according to TransUnion. Both are up more than one percentage point compared with the year-earlier period.
Those higher interest rates are pressuring many consumers to stretch out the terms of their loans to at least seven years, Merchant said. Still, delinquency rates have been kept somewhat in check by low unemployment.
“If we get into a position where employment starts to be a challenge in the United States and unemployment increases, that is when the industry will really start to be concerned about a consumer’s ability to pay their auto loans,” he said.
— CNBC’s Meghan Reeder contributed to this report.

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Following our price target changes on eight Club holdings last month, we’re updating three more Tuesday to reflect their recent quarterly earnings reports and outlooks. Eli Lilly (LLY): Club price target increasing to $380 per share from $350 While its third-quarter wasn’t the cleanest , with management lowering its full-year revenue outlook by approximately $300 million due to increased foreign exchange headwinds, we were impressed by how Lilly’s brand new type-2 diabetes drug Mounjaro outperformed even elevated expectations. With sales growth expected to surge higher if Mounjaro were to get federal regulatory approval next year to also treat obesity, we remain very bullish that the drug could become one of the best-selling of all time. Management has been investing aggressively to increase manufacturing capacity in anticipation. It’s also worth noting that we have not adjusted our Lilly price target since competitor Biogen (BIIB) reported positive topline results from a study to treat early Alzheimer’s. Lilly is also working on a separate Alzheimer’s drug, which has shown some encouraging results. Good news for Biogen is good news for Lilly’s donanemab as both are antibodies that aim to reduce the buildup of the amyloid beta protein in the brain, which is seen with the degenerative disease. Shares of Eli Lilly trade at a significant premium to its peer group and the broader market, but we think health care is group investors are willing to pay up for thanks to its recession-resistant characteristics and limited impact from inflation. LLY has gained more than 32% in 2022, compared to the nearly 19% year-to-date decline in the S & P 500 . Halliburton (HAL): Club price target increasing to $44 per share from $40 This update comes about two weeks after the oilfield services provider reported a stronger-than-expected third quarter . It also provided bullish commentary around margin expansion, backed by pricing power and a lower cost structure. Halliburton has also made significant strides in cleaning up its balance sheet, putting it in a position to potentially increase cash returns to shareholders next year. Future increases to the dividend and buyback program should further improve sentiment around the stock, which has shattered the performance of the broader market with an over 72% increase in 2022. Starbucks (SBUX): Club price target increasing $100 per share from $95 The coffee retailer reported great fiscal fourth quarter earnings last week thanks to strength in North America, where same store sales grew faster than expected with better than expected margins. We think the momentum in North America will continue as management rolls out its reinvention plan, which consists of a series of what the company calls “strategic and highly targeted investments” designed to improve the operating efficiencies of its stores. Although sales in China remain depressed due to ongoing Covid-related restrictions, we still view the Chinese market as an important investment area, and any positive news flow related to a potential reopening should lead to a higher stock price. Case in point , on Friday, news that China will allow foreigners living there to get the BioNTech (BNTX)- Pfizer (PFE) Covid vaccine and hope that Beijing may be willing to ease its rolling pandemic lockdowns and restrictions pushed Starbucks shares up 8.5%. Shares of Starbucks in 2022 took a beating into their May low of under $69 but have rallied 31% since then. We started our position on Aug. 22, and then stock jumped 6.7% since then. (Jim Cramer’s Charitable Trust is long LLY, HAL and SBUX. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

David Ricks, CEO, Eli Lilly
Scott Mlyn | CNBC

Following our price target changes on eight Club holdings last month, we’re updating three more Tuesday to reflect their recent quarterly earnings reports and outlooks. More

Struggling electric truck startup Lordstown Motors still plans to deliver the first examples of its Endurance pickup truck before the end of the year.
The company said late on Monday that Foxconn will invest an additional $170 million in three phases.
Lordstown, which doesn’t yet record revenue, reported a net loss of $154.4 million, or 73 cents a share, for the third quarter.

Signage outside Lordstown Motors Corp. headquarters in Lordstown, Ohio, on Saturday, May 15, 2021.
Dustin Franz | Bloomberg | Getty Images

Struggling electric truck startup Lordstown Motors still plans to deliver the first examples of its Endurance pickup truck before the end of the year, the company said Tuesday, a day after it announced a new investment from Taiwanese contract manufacturer Foxconn.
Lordstown said that it is now building the Endurance at “a very slow rate” while it works to build out its assembly line and awaits final regulatory approval to sell the trucks. The company now expects to build about 30 pickups for sale by year-end, and to complete the remainder of the first batch of 500 trucks by the end of June 2023.

Lordstown said in late September that it hoped to build 50 trucks by year-end. To date, it has completed 12 trucks.
Lordstown’s shares were up over 15% in premarket trading on Tuesday.
The company said late on Monday that Foxconn, which already owns a stake in Lordstown and bought its Ohio factory for $230 million in May, will invest an additional $170 million in three phases, with the first $52.7 million due later this month. Once those investments are completed, Foxconn will own about 18% of Lordstown and will have the right to designate two members of its board of directors.
Lordstown said it will use part of that investment to develop a new vehicle together with Foxconn. The companies had previously announced a joint venture to develop a new model; the new funding replaces that joint venture.
The investment helps address a lack of capital that has hindered Lordstown’s efforts to get the Endurance into production.

Lordstown previously told investors that its first batch of Endurance pickups will be limited to a maximum of 500 vehicles because the cost of building a pickup is currently “materially higher” than the company’s expected selling price. Additional investments in manufacturing tooling would bring the cost down, but CEO Edward Hightower has deferred those investments to preserve cash.
Lordstown said on Tuesday that it is actively seeking an automaker partner to help scale up production of the Endurance.
The updates came as part of Lordstown’s third-quarter earnings report. Lordstown, which doesn’t yet record revenue, reported a net loss of $154.4 million, or 73 cents a share, including nearly $75 million in non-cash accounting charges related to the sale of its factory to Foxconn.
The company had $204 million in cash remaining as of quarter-end.

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“We are not acting swiftly enough, and the impacts and the danger [are] … overtaking our efforts,” Alice Hill says.
Hill, a former special assistant to President Barack Obama, made her comments during CNBC’s Sustainable Future Forum.
COP27, which is being held in Sharm el-Sheikh, Egypt, is taking place at a time of significant global volatility.

The COP27 climate conference represents an opportunity to move forward, but a significant ramping up of efforts will be required in the years ahead, according to a former special assistant to President Barack Obama.
Speaking at CNBC’s Sustainable Future Forum last week, Alice Hill was asked if she was optimistic or very concerned about the pace of change.  

“Very concerned — we are not acting swiftly enough, and the impacts and the danger [are] … overtaking our efforts,” Hill, who is now a senior energy fellow at the Council on Foreign Relations, told CNBC’s Steve Sedgwick.
COP27, which is being held in Sharm el-Sheikh, Egypt, is taking place at a time of significant global volatility. War, economic challenges and the Covid-19 pandemic are all casting long shadows over its proceedings.
During her interview with CNBC, it was put to Hill that climate change often slipped down the pecking order compared to other global challenges and events.
It was a viewpoint she seemed to align with. “Climate change has suffered from the problem that I learned in the White House,” she said.
“When I worked in the White House, [it] quickly became apparent that the urgent would overtake the important,” she added. “Of course, climate change is now urgent.”

Read more about energy from CNBC Pro

Despite this urgency, she noted that the war in Ukraine, tensions between the U.S. and China and other geopolitical strains were tending to “overshadow the need to work on and continue to drive progress towards addressing climate change.”
This had, she argued, “really been the state of play since scientists first raised these alarms decades ago.”
There is a significant amount riding on the negotiations taking place in Egypt.
On Monday, the United Nations secretary general issued a stark warning, telling attendees at COP27 that the world was losing its fight against climate change. “We are in the fight of our lives, and we are losing,” Antonio Guterres said.
At the Sustainable Future Forum, Hill was asked about the best scenario she could realistically see coming out of COP27.
“That we have further progress on the methane pledge,” she said, in an apparent reference to the commitment on cutting methane emissions made at COP26 last year.
Her other hopes for COP27 included getting “serious commitments, or improvements in commitments” when it came to financing for the developing world; and better addressing the issue of loss and damage.  
Despite the above, Hill ended on a note of caution.
There were “a lot of opportunities for really significant steps forward,” she said, “but I’m afraid this COP won’t offer us that kind of transformational leap forward that this problem cries out for — and deserves — in order to keep the globe safe.” More

Mattress Mack’s record-breaking $75 million payout on a wager that the Houston Astros would win the World Series will cost Caesars and Penn Entertainment big.
Jim “Mattress Mack” McIngvale placed $10 million on his beloved Houston Astros to win this year’s World Series, across several wagers.
Caesars and Penn are each on a path to profitability in their growing digital segments — and investors are adding immense pressure.

Jim “Mattress Mack” McIngvale, of Houston, holds some of the tickets in Atlantic City N.J., Tuesday, Nov. 1, 2022, showing bets he has made on the Houston Astros to win the baseball World Series.
Wayne Parry | AP

Mattress Mack’s record-breaking $75 million payout on a wager that the Houston Astros would win the World Series will cost Caesars and Penn Entertainment big in their digital businesses this quarter.
Jim “Mattress Mack” McIngvale, the Texas furniture salesman who famously hedges his sports bets with furniture promotions, placed $10 million on his beloved Houston Astros to win this year’s World Series, across several wagers.

With the Astros’ second-ever World Series win on Saturday, McIngvale clinched a $75 million payout. Of that total, Caesars will take the biggest hit, paying out $30 million from McIngvale’s May 13 bet on the Astros for $3 million at 10-1 odds.
“I think most of you are aware, we’ve got a fairly high-profile liability out there with the Astros. So that will be a swing factor in whether fourth quarter is positive as a whole,” Caesars CEO Tom Reeg warned on the company’s Nov. 1 earnings call.
Penn Entertainment CEO Jay Snowden on the company’s Nov. 3 earnings call similarly warned about the company’s profitability in light of McIngvale’s bet via Penn’s sportsbook Barstool — and urged listeners to root for the Philadelphia Phillies instead.

“I think if Mattress Mack doesn’t hit, we’ll be profitable in Q4,” Snowden said then. “If he does, then it’ll probably be closer to break-evenish.”
The company now has to pay out $10 million.

Wynn, which also hosted one of McIngvale’s bets, said it will comment further on the wager on its Wednesday earning call.
McIngvale said he placed other wagers on the Astros at sites including BetMGM, Unibet and Betfred. Texas does not allow legalized gambling, so the mattress salesman often travels to states where it’s legal to wager.
Despite the costly hit, Caesars said Saturday after the Astros’ win that the wager was worth it.
“What can we say? We just wrote the biggest check in sports betting history to Mattress Mack for $30,000,000. Would we do it all again? You bet,” said Ken Fuchs, chief operating officer of Caesars Digital.
Fuchs said a casino the size of Caesars is accustomed to taking big risks.
“You know, for us it’s another day at the office in some respect,” he said.
Caesars and Penn are each on a path to profitability in their growing digital segments — and investors are adding immense pressure.
DraftKings stock plummeted Friday after CEO Jason Robins predicted higher losses next year than expectations and reiterated that the company doesn’t anticipate profitability until the fourth quarter of 2023.
McIngvale, for his part, now has to pay back all of the customers who took advantage of his promotion: Those who spent $3,000 or more on a mattress got their purchase free with the Astros win.
The Gallery Furniture owner says he’ll get back his initial $10 million he put in and the rest will go back to the customers.
“It’s gonna be pretty much a wash of giving the customers their money back, which is what we really want to do because then word of mouth advertising lasts for 20 or 30 years,” he told CNBC ahead of the World Series.
“My real interest is making sure the customers win because the customers will be happy and thrilled and smiling,” he said.

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Tyson Foods CFO John Tyson was arrested early Sunday after allegedly becoming intoxicated and falling asleep in the wrong house.
Tyson was named chief financial officer for the company in late September.
He’s the son of the company’s chairman, John H. Tyson, and the great-grandson of founder John W. Tyson.

Tyson Foods CFO John Tyson was arrested early Sunday in Arkansas after allegedly becoming intoxicated and falling asleep in the wrong house.
Tyson, 32, was charged with public intoxication and trespassing and booked in Washington County jail. Tyson Foods is headquartered in Springdale, Arkansas.

A woman who did not know Tyson allegedly found him asleep in her bed around 2 a.m., according to local television station KNWA/Fox24, which cited a police report. Tyson’s breath smelled of alcohol, and he was unable to verbally respond to police, the station reported. The woman told police that she believed the front door was unlocked.
Tyson did not immediately respond to a request for comment. A representative for Tyson Foods said in a statement to CNBC that the company is aware of the incident but will not be commenting further, calling it a “personal matter.”

John Tyson mugshot
Source: Washington County, Arkansas

Tyson was named chief financial officer for the company in late September, when his predecessor Stewart Glendinning was tapped to lead the company’s prepared foods division. He joined the company in 2019 after working in investment banking, private equity and venture capital.
Tyson is the son of the company’s chairman, John H. Tyson, and the great-grandson of founder John W. Tyson. The company is scheduled to report its fiscal fourth-quarter earnings Nov. 14.
Tyson is the second prominent C-suite food executive to be arrested in Washington County over the last two months. Beyond Meat Chief Operating Officer Doug Ramsey — a former Tyson executive himself — was arrested in September for allegedly biting a man’s nose. Beyond Meat suspended and then fired Ramsey.

Ramsey’s alleged assault occurred in a parking garage altercation near Donald W. Reynolds Razorback Stadium in Fayetteville after a University of Arkansas football game. The college celebrated homecoming this weekend but lost the football game on Saturday.
Tyson, who is a lecturer at the university’s business school, was arrested about a mile away from the stadium.

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