tv Nightly Business Report PBS May 17, 2019 5:00pm-5:31pm PDT
♪ ♪ this is "nightly business report" with sue herera and bill griffith. >> grade in focus. the u.s. reaches a deal withna and mexico, but china may have just hit a snag. >> oh, dear, the company warns of weaker earnings because of the trade war and the heavy rains in the midwest aren't helping either. >> new perks. restaurants are cooking up new ideas to attract workers and get them to stay. those stories and much more tonight on "nightly business report" for friday, may 17th. >> good evening, everyone,nd welcome. wall street cares about trade. today's session proved it. stocks moved higher when the u.s., canada and mexico reached an agreement on steel and
aluminum tariffs, but then stocksded in the other direction on reports the talks between the u.s. and china have stalled, leading to concerns of retaliation which could hit global growth. kayla tausche starts us off tonight in washington. . in the trump administration's multi-faceted trade sites and stalling on the other. today brought news house would seal aminum in mexico. or that deal is going to be a fantastic deal our country and hopefully congress will appro approve it quicy. >> it will be in the next 48 hours that ends retaliation on products like beer kegs, whisky and pork in hopes of clearing the path for the trade agreement. canadian prime minister justin trudeau expressedfi cnce. >> now that we've had a full lift on these tariffs we are going to work with the united
states on timing for ratification, but we are very optimistic we will be able to move forward. w >> tte house shelving a tariff, ts time on automobiles with the decision delayed up to six months while itegiates with europe and japan, but trump hasn't ruled out those charges entirely. >> they take udvantage of on trade. it's not fair. we lost th80 billion wit european union. >> republican lawmakers who have stopped to persuade the president against tariffs sounded their support. nebraska senator ben sasse says china is our adversary, canada, and he's right to be de-escalating tensions with the north american allies. sources say talks have stalled as washington and beijing doubled down on their positions and discussions over the next rod of talks in flux until they can agree on what they will talkhtbout. for "n business report" i'm kayla tausche in washington.
and tinde hea continue to inject more volatility into the market. at the close tod the dow was down 98 points and closed to 25,764 and the nasdaq slid by 81. the s&p was down 16 and the dow reed its first four-week losing streak in three years. bob pisaniou takes us t all of this week's twists and turns and he looks ahead to next week. >> never a dull moment on wall street, you know. first the dow jones industrial average plummets more than 600 points on monday after china announced ary retaliaound of tariffs over the weekend and it seems like a long time ago and the market edged higher on tuesday on hopefulme cs from steve mnuchin, treasury secretary and president trump saying trade talks have not completely collapsed and every trade, tweet and headlines that cr the wire since then. look what happened today. they were holding up on good umeconomicrs and a little more trade talk hope to aspire the open at 8:30 andam word
out that the white house was delaying tariffs on imropean autorts and that's good news and we rose more on reports the white house could lift the aluminum importarfs in canada and mexico and it was concerned and it's getting tough tore sell the trade story and ngthat's why we're not get big bounce from industrial stocks associated with cate aillar, 3m the tech names like apple and intel. intel had an m awfulth so far. >> one other trade sensitive group, retailers got a modest lift aes like macy's and kohl's were down, and next week will be anotherus month. we'll get earnings at home depot, lowe's and best buy. footlocker is a big one. 70% of u.s. footwear is imported from china. 70%. for "nightly business report" i'm bob pisani at the new york >> there's trouble on the farm and it is affecting deer.
the company lowered its earnings and revenue for the year citing the lousy weather in e midwest. the tractor maker's disappointing results sent then stock d 7.5%. morgan brennan has more on deere's oone- punch. >> deere cutting its full-year outlook as bad weather andrade war with china threatens to further hit farm incomesnd with them, demand for deere equipment. >> harvesting combines now expect equipment sales to rise just 5% for the year, down from a previous forecast of seven. in a statement, samuel allen sang, quot ongoing concerns about export market access for mmodities such as soybeans and the delayed planting season in much of north america are causing farmers to become muc more cautious about making major purchases. 50% of sales come from north america and from farmers here it's a one-two punch.ra escalating tensions with china, a krieshl export market
haan sent soy futures to its ten-year low and cold, wet weather in the midwest including historic flooding in some places hasayed farmers' abilities to plant crops and that's teighed on the demand for deere and underweigh ahead of today's results. >> they have to now actually underproduce retail in the back half y of ther because their dealers have too much inventory and they have no i visibility 2020. so we don't know if we will have to continue to underproduce into next year or whether things will be in the end of this year because tre's so much uncertainty today. >> it is sht currently vetting on arade resolution. the reason it's now planning to cut production of farm equipment by 20% as two of its north american factories. a miss on earnings and dampened outlook sent shares o deere lower, adding to losses that have accelerated in recent months. for "nightly business report,"
i'm morgan brennan at the new york stock exchange. >> as we reported, the u.s. and mexicotame to t agreement on steel and aluminumff ta but the two countries are still fighting over tomatoes and this trade skirmish will cost you. jane explains. >> fresh billion business and half the crop we eat comes from mexico and american growers mostly in florida claim their suffering that the current tomato situation is rotten. they say mexico is using loopholes in the tradeto agreemt ump product here and now the commerce department is investigating and bringing bac an old tariff of about 18%. mexico says prove it. >> you can't just say somebody's cheating. >> robert represents mexican growers. he calls mexican tomatoesbehe in the world and likens them to the golden state warriors. nobody beats them a they have the best in the world and they have the best players in the world. someone says they're cheating they have to have something to back it up and it's the same
with mexican tomatoes. se they'll stop shipping tomatoes north becheir u.s. import operations cannot afford now to put up the cash bond to cover the potential tariff until the issue is decided. well, what does that do topr es? so far they're up 2% at the retail level and they're up 10% in the year and companies like chipotle buyon mils and millions of pounds ofomatoes and since they don't expect to raise prices and they may not have to. mexico is i suingn u.s. court to make this all go away. negotiatingontinue to move the tariff which might include a higher hold price and they're not yet going to the u.s. government and whether or not mexico ha in fact, been
cheating. wait, this's more. we get 80% of our avocados from there and avocados are way up since the president threatened to close ther bor and to potentially close any guac gap, a country we're hearing a lot from, vietnam. fo neatly business report, i'm jane wells in los angeles. it is time to take a look at today's upgrades and downgrades. under armour was upgraded from overweight to neutral. the price target is $29. the stock rose more than 7.5% to $23.58. footlocker was upgraded to buy from neutral at b. riley fbr. it calls foot locker as best in case retailer and it reports earnings next week. the price target is 54. despite thepdate the stock sold a fraction by 55.20.
baidu was downgraded from deutsch bank. the company's growth is slowing more than expected and losing market share in. advertisi the price target is 16% to 138.31. still ahead, getting schooled. states are threatening to crack down on for-profit colleges after the trump administration easesnd regulationshat does it do to students at a time when skilled workers are in short supply. i'm stt cohn, and we'll have the story coming up on "neatly business report." ♪ ♪
consumer sentiment is at a -year high and the university of michigan points out its survey was done before the t escalation ade tensions between the u.s. and china, but added that most of the optimism comes from the strong job market and rising wages >> the tight labor market isfi making it dlt for companies to fine workers. the head of the fed is saying our country is running out of people to hire and it needs creative solutions to deal with problem. and as kate rogers reports now, that's exactly what some in the restaurant industry are doing. this isn't your typical job interview. it's a party. hiring party, that is. >> taco bell hosted 600 of them last month nationwide t attract new workers in the wake of the historic labor crunch. >> we want to do something different to help us stanout among to positions because it is extremely competitive. >> it's working. the company has seen about a 40n
ease in applications from aiary ago from people like tiffany thornton.>> he situation like this allows for people to actually be able to come together and how theipersonalities and their strengths and attitudes and possibly get a job. >> brands are thinking outside of the box to attract wkers. mcdonald's recently announced a partners with the aarp to build 250,000 summer jobs. shake shack is tefrting out a four-thai workweek for managers with added flexibility and it's about retention. chipotle says more than 80% of the managers are homegrown and last year promoted 13,000 employees. benefits include bonuses and tuition reimbursements. starbucks offers full tuition as well as paid leave al as stock options forrelib e workers. some are investing more in training, and the walnut group
which owns 100 dunkin' donuts,d opened a facility dedicated to training and putting a program in place. >> when you look at the turnover, it's well over100%. we were not satisfied with that tried toanization and take a broad, strategic look at what things we could do to improve our raining and improve our workplace culture and those are the things i think now that we're seeingith the lower turnover percentage that are really having an effect for us. the group says it's been a success. >> turnover fell dramatically last yeang and han on to those workers is good for business. for "nightly business report" i'm kate rogers >> in an era of acute worker shortages, can america do without for-profit colleges? ofcials at the colleges say they're needed and afterinears of scrthey've learned their lesson and students at tuese institions are more likely to take outtudent loans
than their counter parts and scott cohn is in silicon alley tonigh >> i really need to figure out the money thing first. the stories are cringeworthy and this federal undercover investigation from decade ago agents posing as studentsosed sales tactic snoos. >> this is your admissions and application process. >> geteng them on hook for student loans. >> no one here has not gone to school and for an educaon with limited job propekts and major reforms followed and even now schools are shutting down incling the university abruptly closing in march. >> a lot of us are frustrated and hurt and angry because what do we do? >> the ceo of the nation's largest chain, university of phoenix says the iustry has largely cleaned up its act taking hugehanges and it took
itself private in 2017 and began slas fng programs graduates who were getting jobs. >> we evaluated all of our programs and we got rid of our largest programs which was tough for the university. the for-profit collegesicad little c but to change. under an obama-era crackdown ey refshged the federal aid programs if they weren't finding game fork. w the colleges are not out of the woods and they're in with rules of their owndi inc bills out of california to reinstate the obama standards in the state. >> it'she for-profit colleges that have received a tremendous amount of federal resources that have had very little oversight and the numbers have been worse for-profit colleges. >> and they'y more lik to take out loans than the traditional counter part, 83% on
average and they moaduated with thet, and the worst of phoen phoenix it feels the -- and the ceo worries about a patchwork o state la >> i would urge state and i would urge the federal government to come together and think about if there needs to be some formula that was served yethat good p in higher education have an opportunity to serve adults who need this education. >> at a time w businesses have a voracious appetit for educated workers and for-profit colleges are not going away. >> for "nightly business report wet "san jotsy. luckin coffee. the beijing-based chain on the debut on the naaq as -- luckin
es trying to overtake it as biggest coffee chain there. the kr, aifo l out how the company can compete with the likes of starbucks. >> we have all of the connection with the customers and data. that's point one. point two,re using technology. technology is very important which makes operations efficient, and there is very good quality control. the last point why we're different, we are using very smallre s rental, decoration, we save a lot of money and we are very close to our customers if you look at those three together that is what we call the new model. >> shares finished up 20% today to $20.38. another company that made its debut on wall street today was content distribution that worked, and this competition with google and amazon and they talked about the importance of cloud computing.
>> kwthe customers are for the class value. he has an edge and for security, you do love compliance and if youo in o a one-provider slou solution. >> shares rose 50% to $23.99. meanwhile, j.p. morgan chase is buying medical payments technology firm insta med for more than $500 million making it the bank's biggest acquisition since the financi crisis. the move strengthens j.p. morgan's pus into the health care spending market. j.p. morgan was up 110 to 77. >> hewlett-packard enterprise is buying super computer make klay for $1.3 billion in cash and the move is the technology's efforts
u advance in gh -- and hewlett-packard wn a fraction to 14.62 and it rose 32o 36.52 and amazon is buying atake in the british delivery sevice and the m takes aim at. lar food delivery services like uber eats. shares of amazon fell 2% at $861. and lyft is being sued by investorsver its ipo. the lawsuit claims lyft misled investors about its ride-sharing position. bicycle safety issues and labor it also alleges, lyft's fall statements inflated the share price where invests lost money when lyft fell. it finished at $53.79. time now for ouree wkly market monitor who is bting on the
u.s. consumer. quint is back with us and he's founder and president of jewel financial. welcome back. the first one you bring up for us, if you're tnking about the consumer is twitter. i don't often think of that as a consumer company and a technology company. how does that fit in. >> the consumer and the american people really have this appetite for news and what's happening out there. so this is not necessarily a place that they're going to go and buy rethings, but the going to go there to understand what is going in the world and we are seeing this througthe trade agreements or isn't lack thereof, doctor -- west do not think of this as a -- because wz have time mong this user. >> that is correct. >> this company has made a trendous transition fundamentally and the last quarter. they were significantly
profitable with extreme cash flow which we like to see. we like to look for companies that are growing and w thatcan buy at a reasonable price and twitter is one of those names. >> walmali you , as well. they just came out with earnings the other day. online sales were up better than 35%. >> yeah. lmart is a staple for us and i don't think this will bea one at is nearly as speculative and as for twitter, it'srading pretty high as is. but i ruff through what you're coming and the ons that they bratit out ss company is gettinga paity to yield,nd i've been if qaa upon t tal bee
particular is ia essenty, and i feel like it goes u from here one thing i ike to like in that stock price that company has continued to ra improve its o value, but what we like about capital one, many financial companies are undervalued. that's true arc cross the banking sector as a whute, capital one is making a big move to the online space toeally try to get that younger generation and they're doing a great job at it. >> very good. quint tatrel with jewel financia >> thank you. coming up, fixing our nation's infrastructure. ♪ >> i'm aditi roy at the port of oakland in california. infrastructure spending on u.s ports is at an all-time high. coming up, i'll show you what's
behind it and why they're doing more. ♪ ♪ the port of oakland is one the hubs traveling from asia so you might think it is feeling thth impact oe trade with china. asou saw, a dit i roy reports and the biggest issue of the port is the upgrading of its fr tructure. >> business is booming at the port of oakland. the last two years the port h moved record volumes of cargo. nearly $5 billion worthast year ane. the swell in business is attracting investment dollars. the port isid in thee of a seven-year $1 billion program fo infrastructure development
it is necessary because cargo volumes are growing, customers are getting more demanding. we need t enlarge and improve our ability to handle cargo so we cp that cargo coming to us. >> part of that money will go towards a $55 million warehouse and distribution center about to be built and last fall this $100 million facility which allows perishables while in transit justpened for business. the comny jason said it was a not to be missed business opportunity, but we'll keep the quality of the food products and obviously its location right here in the heart of the port and into the ocean containers. the american association of port
authorities or aapa found infrastructure f spendinm 2016 to 2020 increased threefole compared to fears prior. that's due in large part to the u.s. lifting i ban on crude oil exports in 2015. since th, there's been a construction boom at the ports along the gulf of mexico to handle the extra volume. still, needs the aapa last month asked for $66 billion worth of feder funding for port infrastructure projects to help move cargo in and out of ports morey. efficien the threat of tariffs also looms high for some port businesses which say long-term tariffs could impact growth. >> it onlyas an impact on us and we are really hoping a trade agreemen gets reached. >> officials here at the port of oakland say that the strength of the u.s. economyombined with the rise of the middle class and asia has helped softened the trade impact. i'm aditi roy, oakland, califo wia.
>> befor go here's a look at the friday final numbers on wall street. the dow fell 98 points to 25,764. the nasdaq slid 81 and the s&p 500 was down 16. the d registered its first four-week losing streak in three years. >> one of those weeks. >> i wonder what next week brings with the trade headlines, as well. >> i don't know. >> it will be interesting. >> it sure will. that does it for us tonight. i'm sue herera. >> have a great weekend. see you monday. ♪ ♪