tv Nightly Business Report PBS March 29, 2019 5:00pm-5:31pm PDT
this is "nightly business report" with sue herera and bill giff i -- griffeth. strong quarter. the s&p 500 has its best quarter since the financial crisis. can it continue? liftoff. the ride-hailing company comes to wall street but its path to profitability is unclear. forgotten refunds. the irs says come get your moy. so w aren't people listening? those stories and more tonight onornightly business report" friday, march good evening, everyone, and welcome. it is the end of the week, the end of the month, andf the end the quarter. and what a quarter it was. stocks saw their best gains in a decade thanks to a shift in the fed strategy that moved polic
kers away from raising interest rates. investors also became more upbeat about the economynd corporate profits, a big change from the nervoused the market a of last year. today on the last day of the quarter, the dow jones industrial average added 211 points to 25,928. the nasdaq was up 60, and the s&p 500 rose 18. for the quarter, all three major indexe u were double digits. among the best performing sectors this quarter, technology, industrials and real estate. >> so can those big gains extend into the next qu joining us tonight is the chief market strategist and bruder uset management. thanks for joini tonight. >> thanks for having me. >> actually, you don't have very high expectations for the sec id quartethe market. why? >> yeah, so in the beginning of the year we're very, very bullish. i was on the program, we talked about probably seeing a 20% or
so rally for the full ye. here we are at the end the first quarter and we've gotten it. now we're probably somewhere around fairly priced. so the upward catalyst for the market are going to be earnings. the questn is are earnings going to come through. are we going to see better than expected earnings in a material. mann we just don't know that. given the slowdown and all the global pressures o that are there from higher oil to brexit to rumblings i italy and our own outlook and still some a questionut a chinese-american tra deale think right now it's probably time to be cautious. ase andf that is the you're focusing on earnings, which sectors of the market are going to perform better on an earnings basis than others? >> yeah, so on a bottoms up analysis basis, technology is still looking very strong. we think that energy t is goi perform well, certainly on an
earnings basis. then we're looking at some of the underperforming sectors that haven't quite done so. we so you've got consumer staples which provide a great dividend and there's some great valuations there. you've got telecom services ich whole they didell in the first quarter, they lagged so see in 2018 that we still some wonderful values there. companies like verizon that are 4 plus percent dividend. those are stocks and sectors that we like in this environment. >> what about bonds, oliver? we're in that periodig now, rather unusual, where both stocks and bond prices are going higher. >>yeah, iean -- >> that inversion of the yoeld curve. what are youti exp for the treasuries and corporate bonds this quarter? >> well, i think we' probably as low as we're going to get in terms of yields, at least in the short term. it would have to take a significant dration of economic conditions for yields to go much lower. i don't think that there is
anybody on wall street that on january 1st would have said by the end of the quarter you're ing to see a 2.5% or less 10-yore treasur10 10-year treasury. there's no one thinking about that. if you have a bond portfolio and are not looking to hold bonds to maturity, i think now is the time to take a little off the table. if you own bond funds that's the case. i think you want tbe careful, shorten the maturity and increase the credit quality out there. >> very good. oliver porsche, thanks again. have a good weekend. >> thank you. you as well. optimism over trade with china was one of the reasons why stocksot a lifttoday. the president this afternoon said the talks were going well, just as officials wrapped up meetings in beijing. kayla tausche has more. >> reporter: at the conclusion of the single day of negotiations, handshakes from representative and the treasury secretary with
cha's vice premier who will visit washington next week for the third time this yorear. as the two sides to come to an agreement that has seen a u.s. deficit widen to record levels. larry kudlow is the director of the national economic council. >> the enforceme issues have to be done properly, the ip theft, the forced transfer of technology, the cyber hacking, the tcommoditie tariffs, it's got to be right for the usa. whatever the timetable is. >> reporter: so far china has stepped up purchases of u.s. soybeans, offered cloud computing and firms greater access and passed an investment law to offer greater protection for the intellectual properties inof companies doing bs in china. steve bannon thinks china would just as soon not do a deal. >> i think some of the hawks in anda are starting to dig in say, hey, it would be nice if we
had a deal but a no deal is better for us than a bad thdeal. k we've got a long way to go before we get a trade deal. >> reporter: predent trump was ked whether the mueller report finding of no collusion between his campaign and russiahanges his approach to china. >> i can't teller you wher not it had an it on other countries, including china. i can say this,ouhatries are reacting very well. we're doing very well with our trade talks with china. >> reporter: a jubilant president trump, confident in the outcome even as he says tariffs on g chineseds could rtay for a substantial period of time. "nightly business report," i'm kayla tausche in washington. meanwhile, federal reserve cgovernor said he'sfident that our economy will continue to grow. he pointed to our strongabor market and inflation that remains in check. in fact he said that could lead to interest rate increases down the road. >> i'm very comfortable remaining patient at this point andonitoring the incoming data.
that said, my sense is that further increases in the policy rate may be necessary at some point, a stance i believe is consistent about my optimistic view of theon y's growth potential and momentum. >> of course the fed recently gnalled that it does not intend to increase rates for the rest of this year. but after he made those comments, white hou economic advisor larry kudlow called on the fed to cut interest rates by half a point immediately. >> i am echoing the spresiden view. he's not been bashful about that view. he would als le the fed to cease shrinking its balance ee i concur with that view. looking at somof the -- the economy looks fund mentally quite healthy, we just don't want that threat. >> mr. kudlow point specifically to economic weakness in european in china. sharese rid-hailing service lyft me their debut on the public market today. it is the first of a ste of
big tech companies expected to go public. the company priced its shares $72 apiece valuing the company north of 0billion. today the shares opened above $87 but closed at $78.29, but still an increase ofha more 8%. but did you ever wonder what goes on before the shares of an initial public offering trade? well, seema mody got an clusive loo behind the curtain as the buyers were paired with th sellers. with such a high-profile offering with a lot at ste, it played out like a hollywood suspense fil >> reportean it is allds on deck here at the nasdaq. still awaiting lyft to open for trade. often times you'll see 10 to 15% of the ipo shares turned over in the first tras so i really organizing all those buy an sell orders. this will take a good long time
given the number of orders in the book so we'll keep working with the underwriters and the street to figure out when the stock will open. >> reporter: once thatrocess kicks off, how long will it take to align the buy and sell orders? it couldake anywhere from 30 minutes to two hours. we'll work through the process and keep you posted. >> reporter: two hours? that would be 12:30. >> we're settling in a range of 85 to 90er thare about 2.9 million shares. we'll keep buildg and take our time. >> reporter: this is a large ipo and therefore it takes time to ge all those shares onto t ma and again the buy and sell orders. holdup?the >> i'm just waiting for the final word working with the stabilization agent. it's imminent, just stand by. you're opening $87.24. $87.24 is the opening price. c >>learly lyft's drivers are critical to the company's financial ture. deidre bosa has that part of the
story from san francir:o. >> reporick has been a lyft driver for four years. a few weeks ago he received an e-mail from lyft telling him that as one of their most dedicated drivers, he was getting a $1,000 cash bonus. he could use it to buy shares in its initial public offering. >> i'm very happy l thatyft is buy the stock. s some priori >> reporter:e bought3 shares at $72 apiece. when shares opened 20% higher, he itantly made about $200. lyft's earliest employees madem ions when the company went public today. as independent contractors, lyft's more than 1 million active drivers haven't been eligible for things like benefits or equity in the company despite playing a critical role in building the platform. as a result, they haven't shared in the enormous wealth created for employees and iestors up to this point. for many, the flexibility and extra income i worth it.
>> i'med satis just being contractors. there are many wants but you cannot get all wants. >> it's flexibility,. you know just turn it on and you'reg. driv >> reporter: but there's a group of drivers who are deep low unhappy with their cut of rides regulations around ride-sharing drivers will be key f i public markestors too. if lyft and uber drivers becomey ems, eligible for benefits and minimum wage, the path to profitability for both companies becomes even more uncertain as already sky-high costs rise further. as uber gets ready to tap the public market, this is a theme we will continue to see play out. "nightly business report," deidrebosa, san francisco. and now to the political crisis in the uk. ime minister theresa may's brexit deal was rejected again. increasing theta uinty
around one of europe's biggest economies. willem marx is in london for us tonight. >> reporter: sec scrutiny eventighter. local police, national protesters and the world's cameras t surrounded british parliament as lawmakers voted once again on brexit. >> order. order. >> reporter: theresa may's government fought and failed to pass a brexitdeal, third time unlucky. >> the ayest,o the ri 286. the nos to the left 344. so the nos have it. the nos have it. >> reporter: this result renders the british ship of state rudderless with opposing views about its future. >> i fear we are reaching the limits of this process in this house has rejected no deal. it has rejected no brexit. on wednesday, it rejected all
the variations of the deal on the table. and today it has rejected approving the withdrawal agreement alone and continuing a proces on the future. >> reporter: the prime minister had promised to resign if today's votepassed. it's now exactly two weeks until the eu's postpon deadline for an economically damaging hard brexit, andonight critics are insisting that theresa may and the settlement she's championed now for months cannot be allowed to limp on much longer. >> the prime minter has failed to take this deal forward. she does not have the confidence of the house. the prime minister has indicated her departure. she should now go,ld and we sh be having a general election. >> reporter: in response, the eu's executi branch said a no-deal exit in april was now a likely scenario. to avoid that, legislators will reconvene aer the weekend to try to agree on an alternative approach that labor leader jeremy corbyn says is long
overdue. >> i hope onmonday, the house retakes control. that parties andembers on all sides will enter into those debates and vote in the spirit of trying to find an acceptable compromise. weeed to ge a better deal. the country deserves a bette deal. i'm convinced that a better deal can be neortiated. >> rr: if not a fresh british election and aong brexit delay could be just a few short steps away. tlr "nibusiness report," i'm willem marx in london. aime to take look at some of today's upgrades and downgrades. we begin with two calls on wells fargo today that essentially gave the stock a neutral rating. deutsche bank downgraded the stock to hold from buy, while raymond james upgraded the stock to market perform from underperform. now, both cited sterday's resignation of ceo tim sloan.an deutsche said it would
result in earnings uncertainty, while ray mondmond james said i removed aad nd. wells fargo closed down today. comcast was downgraded today. the analyst cited concerns of cord cutting around the country. price target $42.as comc is the parent company of cnbc which produces this program. shares f1%l today to $39.98. piper jaffr upgraded f5 networks to neutral from underwght and the analyst there calls the stock's valuation reasonable. the price target is $163. f5 gained 2% to $156.93. viacom was upgraded to buy from hold at loop capital. the analyst believes viacom and cbs will finally merge now that viacom and at&t have renewed their carriage contracts. the price target is 35. the shares closed today at 28.07, up more tha 2%.
still ahead, why now is a good time to invest in the american consumer. ourr market monitoguest will sh. ifouaven't filed your taxes yet, you still have a couple of weeks. get this, the irs says there are still a lot of refunds from past tax years still waiting to be collected to the tune of more billion. so why is the money going unclaimed? ylan mui did someigging for us. >> reporter: uncle sam has an urgent message for taxpayers, come get your money.
the only way to get a tax refund is to file a t return. but not everybody does that. maybe you forgot or didn't think you had to especiallyf you didn't make that much money. the irs is warning that could mean you are missing out. there are $1.4 billion in unclaimed refunds all the way back to 20u5. ve three years to claim your cash. ther that the money becomes property of the government forever. >> i think people are hesitant in general to deal with the wes. ound over time that a lot of times ple are hisesitant to file because of some event that takes ple. there' a divorce, they're ill ill or ily member is they lost a job, that type of situation. they miss one year and then it rolls on and they miss several years. >> reporter: f 2015, the median unclaimed refunding is
$879. the amount due backo taxpayers also varies widely by state. the irs estimates about 129,000 ople in texas have unclaimed refunds worth roughly $158 llion, more than any other state in the country. oney ornia has a pot of worth $124 llion. florida taxpayers are missing out on $96 million. >> taxpayers should be in the system. they shouldn't fear what's going on. i suspect that the best approach if they have concerns about filing a return or understanding how to file it accurately, they should reach out to a profesonal who can walk them through the system. >> reporter: the irs says i y don't owe any money, there is no penalty for filing a late tax return. for "nightly businesseport," i' ylan mui in washington. carmax hits the gas and that's where we begin tonight's market focus. l thegest used car retailer
reported a 58% rise in fouh quarterprofits, easily topping expectations. the company recorded a higher tax charge from a year ago, thanks to the overhaul of the tax law. carmaxose more than 9.5% to $69.80be blay is forecasting higher revenue as it focuses on autonomous cars and cyber security. the company sees revenue growth of 23% to 27% for the year. blackberry dominated the artphone market about a decade ago but has since switched to selling software. the shares spiked more than 13% to $10.09. atlas air worldwideas signed an amended agreement with amazon. this deal calls for the cargo carrier to provide crew, maintenance and insurance services to amazon for seven years. atlas arrows nearly ha on word to $50.56. and the proposed merger between brist meyers and
celgene received backing. they called the valua reasonable with a sounding strategic rationale. after that announcement activist investor starboard said it would no longer oppose thetakeover, which is valued at about $74 billion. bristol meyers was down a fraction to $47.71, but celgene got an 8%se bump to c at $94.34. our market monitor guest d tonight says't bet against the american consumer.s joining u is the managing principal with butcher joseph asset joseph. welcome, kenny, good to see you. >> nice to see you. >> sog a str economy if we get a trade deal, a resurging so home depot is one of your picks. why? >> it's right in the perfect tspace because it's do it yourself. it's the home selling season. people getting ready to sell their houses. they're going go there and fancy up their houses. besides thehe fact stock had gotten unnecessarily beaten up inbehe october to dec
correction. we took advantage of those better prices. and so now it's rallied rig back to its february highs. it's at 192. if it breaks out tthere, probably runs to 210. >> mcdonald's. in retail anymore it seems -- ande i inc fast food in that as well. it's not just what you sell, it's how you sell it they're making some interesting moves right now. >> huge technology moves, right? they're putting kiosks in all their stores and making that experience of going into mcdonald not only enjoyable to do but efficient. it's all about efficiency. they have also gone out and published this marketing company. it's a huge investment for them, one of the biggest in decades. they're serious n only abo maintaining their edge through technology, they have also got p this new that allows you to buy the food on the app. you can pick it up at the counter, at the window, at curbside and i saw that live and in action at greenwich, connecticut, yesterday. >> we'll finish up with walmart. it's a hedge in a way. >> yes.
>> ifshe economy d well, it can do well, but if the economy slows down -- >> but in this case we think the economy us fine and we think once we get this china trade deal it will be all right. walmart is one of those companies that can compete with azon because of its size. they spent a lot of money on their stores. they hired new people and cleaned them up so the shoppinbe experience ier. the other thing they have done in the urban cities is they have launched this new jet black concierge shopping service. it allows frazzled parents to send aext message, you get a personal shopper. they can go to a specialtyocal retailer, get it, package it up and dlif eliver it to your door. >> we always enjoy you coming here but you didn't have to come on your birthday. >> thank you very muchto 58y, believe it or not. >> happy birthday, kenny. he is wituter joseph asset management. to read more about his picks, head to our website, nbr.com.
coming up, foodelivery gets a reboot on some college campuses we all know that food delivery is one of the fastest growing segments of the restaurant industry. but nle some colge students are getting their food deliver with a bit of a twist. kate rogers is iinfairfax, vi. >> reporter: rolling out of bed and io the dining hall to grab a bite to eat is so last semester. >> hello, i'm a starship delivery robot.
>> reporter: now george mason university students like victoria and jasmine can get food delivered to their dorm, brary or wherever they are on campus by robot. the college is the first to team up with starship technologies to offer food and beverage delivery via autonomous robots. >> i got buper excitedause i don't like walking across campus to get food. when i found that it had dunkin, i was like yay, coffee that will come to me and i don't have to walk in the cold for. >> reporter: since launching in late january, more than 10,000 deliveries have been made at gmu via robot. services haven been ed to 2:00 a.m. and there are plans to expand to 24 hours in the near future, with restaurants beway, ng dunkin, should steak and shaike and einstein brothe $1.99. so far pizza has been the most polar with students o campus with about 70 orders coming in per day via the robot.
make that 71. the company also says there's a boost in breakfast orders among thla student popuon, which is happy to have the option to not leave the dorm. and that demand has created a need for more student workers, with more than 20 new positions added to manage robot ordering. >> it'sed definitely a instead of taking away. i think it's a nice addition. it helps us do our job. >> reporter: they llve already out the robots at northern arizona university with plans for an expansion to co. >> we are looking at other universities. it is a process. you want to get this right and make sure that every brand is ready to go, every university has different brands so it's a process to get that up and running. >> reporter: for now there's no excuse to take a study break, your midnight snack is coming to you. tlr "nibusiness report," i'm kate rogers in fairfax, virginia. and before we go, a look at the final day on wall sttret. wallt finished the first quarter the way it started with
a rally. the dow up 211 points today, the nasdaq was up 60, the s&p 500 rose by 18. for the quarter all three major averages were u double digits. for the s&p 500, it was its bt overall quarter since 2009. its best first quarter since 1998 and that's significant because the first quart is usually the weakest of the year, but not this time around. >> we will see wt happens next. that's "nightly business report" tonight. i'm sue herera. thanksor joining us. i'm bill griffeth. have a great weekend. se