this is "nightly report" with tyler m sue herera. april showers. stocks close out the month with a sharp selloff and some market watchers are not expecting any may flowers. refined earnings. oil's slide hurts exxon's profit but the company results beat the forecast thanks to a five fold profit rise in refining. and pag your nest egg with stocks still at lofty levels, is now the right time to take your retirement out of stocks? all that and more tonight on "nightly business re for thursday april 30th. good evening, everyone and welcome. glad you could join us. well sell in may and go away. that is the old market cliche and today it was as if may started a day early. stocks began the session lower

and just kept on going down extending losses into the late afternoon as some of the big market gainers in recent months like small caps and biotechs lost steam. by the close, the dow stroensjones off 17,840. and s&p 500 fell 21 points. despite today's selloff, all three major indexes finished the month in the black with the nasdaq and the s&p up nearly 1 full percent. on the ten year treasury note just held above 2%. that level watched closely because it's seen a proxy as the health of the economy. bob pisani from the new york stock exchange has more on today's weak close to april. >> reporter: it was a poor end to the month as several big trades started to unwind a bit. and remember there have been three trades that have been big winners for this year. first, the dollar. second long germany and number

three, long health care. particularly biotech. these are what traders call crowded longs. a lot of traders bought into these trades and are sitting on a lot of profits. all three of those trades have come unwound a bit this week. what happened? well first, weak economic data caused the dollar to weaken. the dollar index down nearly 4% just this week. that one long trade that's not working. as the dollar is weakened, the euro has strengthened. bad news for the german stock market down 4% this year because of a stronger euro makes that country's exports more expensive. that second long trade that isn't working. finally, some recent disappointments in earnings from several biotech companies including leader biogen called a pullback in that space. biogen down almost 12% this year alone. that strike three, all three trades not working anymore. what should you do? maintain some perspective. it's true some of the best

performing sectors had a tough weak but all of them remain up for the year. and the s&p 500, that is the benchmark, after all. it's only 1.6% from its historic closing high. you know when that was? it was just last friday. doesn't that seem like a long time ago? for "nightly business report," i'm bob pisani at the new york stock exchange. >> daniel morris joins us now to talk more about the markets and what lies ahead in may. global strategist at tias. $60 billion under management. good to you, danny. welcome. >> thank you. >> i know you feel stretched in terms of valuations but looking at decent earnings growth the rest of the year correct? >> i guess it depends how you define decent in this environment after the really good results we've had over the last several years. the bottom of 2009 we're at a point you look at perhaps high single digits earnings growth excluding the energy sector. that's okay but much less than we've had recently.

and i think the big challenge for the market is that we have relatively high valuations and that type of earnings growth 5, 6, 7% may not be enough to support the multiples on the market. >> if i'co daniel it sounds like you would not be surprised to see a bit of a selloff sometime over the next few months or at the very least, the market that kind of treads water. >> absolutely. and i think the biggest factor behind that is the fact that we are nonetheless expecting an increase in interest rates by the fed, looking for september now and if you study stock market history, what the stock market does ahead of hikes, the first hike by the fed, there's often a correction around 4 months give or take before the first hike. if we look for september, you can do the math. sometime spring or early summer it wouldn't surprise us if we did see a sharper selloff. >> if valuations are stretched here at home globally where would you deploy cash? where are the values? >> i think the question earnings

growth as opposed to valuation. i think what we really see in europe and in japan is the opportunity for accelerating earnings growth. and you really are seeing that now in europe quite good economic numbers starting to come out. analysts increasing their earnings forecasts, for companies particularly in the euro zone and that's going to translate or should translate into stock price appreciation. we had great returns in the first quarter. we think they're going to be strong into the second quarter as well. >> tia, correct, is one of th t and best asset managers in the country if not the world. go a little differently here daniel how much of your equity money is indexed as opposed to actively managed and why? >> well we certainly offer both products. i think it depends on the investor and their own particular situation as to which is appropriate. we have a significant amount of funds that are indexed, but for the most part, we really do believe in the virtues of active management. we invest quite a bit in research and our own analysts to give the recommendations to

portfolio managers and i think that's where we add value. >> daniel quickly, talk to me about fixed income and bonds and your exposure there, if anything at all. >> i think what's been interesting is this increase in interest rates, the treasury going above 2% even as you had the stock market sell off and i think what we're seeing there is reflection of actually the increase in oil prices increase in inflation expectations and we think both of those forces are going to continue to still look for higher interest raits in the months ahead. >> daniel morris are tia. visa after the results, closely watched because it reflects the health of consumers worldwide by especially here in the u.s. the dow components earnings came in at 63 cents a share, a penny better than estimates but roughly flat with the same period last year. revenue of $3.4 billion higher than last year and better an konthan consensus. morgan brennan has the one key takeaway for investo >> okay so as you mentioned, we saw better than expected results

but net income still decreased profits. they quarter, largely due to the strorng dollar and the fact that lower gas prices weighed on the results. the the other thing to keep in mind is the fact operating expenses increase. we see the company continuing to more into technology geared towards mobile and other types of digital payments and that's really, i think, the key here. because ceo charlie made a comment. there's trillions of dollars of cash to disintermediate and our work and digital payments allow us to capture more than we could have contemplated a few years ago. so the results were better than expected. though we did see the decline in some of the head winds we've been seeing in other companies in earnings this quarter, but longer term they really see a big opportunity here in the mobile payment space. >> that's where it all seems to be going. morgan brennan, thank you very much. in the meantime more earnings to tell you about. exxonmobil's first quarter profit nearly cut in half from a year ago due to that decline in oil prices but low enough to

beat earnings expectations by a mile. exxonmobil shares dropped today along with the rest of the market. >> reporter: a big beat for exxonmobil even if expectations were drastically reduced. revenues are down more than a third fr year ago almost mirrors the 40% drop in oil prices during the last 12 months. exxon and other energy companies making moves to reserve cash. ceo rex tiller said doesn't expect oil prices to rise quickly despite the 10% bounce we've seen so far this year. oil near their highs for the last year but traders agree crude could stay near $60 a barrel for some time. >> i think oil found a short-term botto influence number one. a few other factors are supporting prices. if you're a company and oil producer right now and you survive the $42, i certainly see a brighter future ahead for you. >> reporter: investors took notice when mentioned lower

prices improved the refining operation. a 4% dividend rate to 23 cents a share also made insmile. we're finding profits are a common theme this week softeningm reduced overall earnings like shell, bp. smaller companies without big refining corporations not there as well. conoco beat by a penny, one of the first biggest oil companies to cut back on exploration. tomorrow we hear from chevron. if it will slash cap exx further. $35 billion. will that change? exxon is sticking to its cap x cuts 12% for 2015. when will these cap x cuts start to impact u.s. production? zbling announced at the beginning of the year started to take effect already. if you look there's not any new rigs being deployed right now. a lot of rigs 52% of them have

shut down. and what we're seeing as far as supplies go it's starting to make a difference. >> repor though crude prices are stable for now, the longer term picture is still unsure and cuts likely continue. i'm jackie deangelis for "nightly business to the broader economy now. american job market does continue to show signs of recovering. the number of americans filing new claims for jobless benefits tumbled to a 15 year low last week. initial claims fell 34,000 to a seasonally adjusted 622,000. the eighth straight week below 300,000. a separate report shows wages for private sector employees climbed 0.7% in the first quarter. that's the biggest gain in more than six years. europe consumer prices stopped falling in april. and that is easing concerns that europe was headed for a long bout of deflation. the european union said consumer prices were unchanged in line forecasts. in the meantime the european

central bank said that while its stimulus program was working, the economy still has a ways to go. european union is still in intense negotiations with greece over its pile of debt. small signs of progress are starting to emerge. michelle car >> reporter: things just got real between greece and its creditors. after months after sniping at each other in the press, they're finally in the middle of negotiations and you can tell they're real because both sides have agreed to a news blackout. the greek government said it's willing to make some big concessions like not raising the minimum wage as they had pr do. they've also agreed to do privatization. of course they told the voters they wouldn't do. the greeks though may be under intense pressure after new polls show the population is growing impatient with the new leadership and over three quarters of greeks feel athens must strike a deal at any cost to stay in the euro. the greek government sent a bigger team perhaps to dilute

the role of giannis and the talks expected to continue to at least sunday. with prime minister ceepris willing to step in if necessary. that's according to reuters. greece wants an interim deal allowing the european central bank to ease liquidity restrictions on the country's bank. that's before nearly a billion dollar pimf falls due on may 12th. athens suggested it o pay that installmen still ahead ford motors sees the future of the automotive industry

henry ford may have been the man who made detroit the motor city but today, the company bearing his name is looking west for innovation. specifically silicon valley where the auto maker opened a technology center. philip lebeau has more from palo alto california on ford's push into the heart of the tech industry. >> it's a very different environment. ford ceo mark fields calls this the future of ford. far from the nearest assembly plant or a design studio ford is working with the latest technology in the silicon valley to develop cars and trucks. >> the level of intensity this i'm hearing from talking with folks i meet out here they have

never seen the amount of interest in one industry by this community in a very long time. >> reporter: ford and other auto makers are racing to make sure silicon valley giants like google and tesla do not take the lead in building connected and autonomous drive vehicles. that means giving consumers tech features they haven't behind the wheel. >> they're coming in and saying well i need blue tooth. i need streaming audio. i need these different technolo components that's going to make my life easier so i think ford having a presence in silicon valley is really going to kind of key them into consumers and what products make sense for consumers. >> repor there's no way of knowing what the next breakthrough in technology will be from ford but fields said thanks to technology like this virtual reality headset, the vehicles of the future will be changing rapidly. >> things like, you know lane keeping, collision alert, adaptive cruise control, you can get that across our line.

you'll see us build on that going forward. >> the apps are still being written and cars with more technology still in development. but ford is betting it will be ready as auto makers drive further into the silicon valley. philip lebeau "nightly business re palo alto california. from ford to general motors general motors said it will invest nearly $5.5 billion in its u.s. factories over the next three years. the company said the move will create 650 jobs. the announcement comes just a few months before the auto maker begins bargaining the next contract with union workers. weak ratings and that's where we begin tonight's market focus. a declin weighed on the top line. foreign exchange issues and a drop in entertainment sales didn't help either. the owner profit beat shares fell 4% to $69.47. time warner cable missed on both fronts. the cable operator did see a

record number of subscribers in the quarter. as for the takeover deal with comcast that fell apart, the ceo said he's still looking to create value for stockholders. >> we've never needed to be larger. we've always been guided in our m&a approach by a single principle. we're going to do whatever maximizes value for our shareholders. that principle still applies. >> shares were off by 1.5% to $155.39. sony said it will bounce back to profit for the first time in three years. helped by strong sales of camera sensors and cost cuts. the japanese electronics maker seeks to turn around mobile business and came in below. shares fell 1.5% to $30.24 and beezer homes announced a loss. home builder revenue topped forecast as orders jumped more than 40%. shares off just a fraction on this day to close at $17.51.

sigg nus quarterlies, the company upped full year outlook as the insurer added more customers and increased premiums. that alw seems to help. that was a sign of the growth strategy at work. >> the key for us is growing customers and expanding relationships. so the meaningful drive for us is our customer base continues to grow. for example, we've been executing our strategy for five years now. five years ago, we had 60 million customer relationships around the globe. today, that's in excess of 85 million customer relationships. >> shares though fell more than 1.5% on this down day to $124.60. after g bell aig said first quarter earnings fell slightly. this is low interest rates and weaker returns from alternative investments. offset improvements in the company's commercial lending business. the insurer authorized a buyback after $3.5 billion worth of shares. those shares were higher initially after the close but bell, aig shares down

a fraction to $56.29. a weak outlook sent shares of linkedin plunging after the close. the social network for professionals topped estimates but the company slashed full year earnings and revenue projections. shares down as much as 26%. in regular trading, off $5 to close at $252.15. gilead sciences declared first quarterly cash dividend 43 cents a share. that came along with the drug maker's earning results better than estimates. after the close, the stock popped initially. before the bell shares fell along with the market. almost 2% to $100.54. biotech stocks may be having a hard time of late but the same cannot be said about the city where many of them are headquartered. cambridge, massachusetts, not only home to two of the world's greatest universities, harvard and m.i.t. also kendall square now known as biotech's capital

city. and as more biotech companies move to that area big money is following. me >> it's a couple blocks away. everything is a couple blocks away. entrepreneur mike gelman doesn't have to go far for board meetings. smack in the middle of one of the biotech industry's capital cities in marquee neighborhood of kendall square. with 130 life science companies in 2.5 square miles, the neighborhood surm.i.t. lays claim to the densest concentratio of biotech in the world and as the industry boomed in recent years, so has kendall square real estate. >> in the last two to five years, we've really seen this explosion in not only start-up activity new companies, but traditional large pharmaceutical companies that have in the past decade or so embraced by a technology. they he arrived here on the

scene in kendall square. >> reporter: that squeeze vacancy rateso historic lows. 3% in the quarter according to transwestern and as for rent doubled in the last decade to $71 per square foot. that hasn't stopped biotechs like alnilom. signed a lease to move into 300,000 square feet of new space in kendall square and the option to move into another building now occupied by jensiem three years from now. >> where we thought where it would be we didn't think twice about kendall square to be. >> reporter: biogen returned to kendall square roots after a stint in the boston suburbs. >> it's different being here. our headquarters out in western were in the suburbs. it's a lovely building beautiful grounds. for me it was a little too much like a country club. >> reporter: pfizer to novartis expanding in the neighborhood seeking proximity to m.i.t. harvard,

mass general hospital and the other research centers not to mention star contribute to their pipelines. some worry the land grab in kendall square will squeeze out the little guys. >> this has betryfied. they're building up fancy palaces. it's a challenge. i'm ho up to the suburbs. >> for this booming industry it's all about location location location. for "nightly business report," i'm meg tirrell in cambridge's kendall square. >> and to read more about the boston biotech real estate boom head to our web site, wbsnbr.co> with the stock market at lofty levels should retirees take their money out of

here's a look at what to watch tomorrow. big auto figures for april. on the earnings front, expect to hear from chevron before the opening bell. manufacturing date released along with the final consumer sentiment read for april. and that's what's on the agenda for friday. and some positive news on the retirement front. the average 401(k) account balance reached a re workers are apparently socking away more in their iras accordin fidelity's quarterle 401(k) held $91,800

up 3.5% from a year ago. a record 23% of employees in fidelity plans increased their 401(k) contributions and average ira balances hit a record at $94,000. much of the gains due to the rise in the stock market. despite today's selloff, stocks sitting at lofty levels. is now the time for retirees to move some of the money out of stocks? sharon epperson joining us now with a look at what you might want to do with your money. good to see you as always. it's been a pretty great run. market had several years of su growth with no major corrections. so should retirees consider cashing in at this time? >> those folks near retirement or already retired, they may be wondering whether or no now is the time to cash in on some of the profits because they want to make sure they have the income to live on so they don't outlive their money but some careful considerations need to be made

in terms of their risk tolerance and in terms of the returns they really need long-term because they could be spending decades in retirement. >> what about retirees who basically made up their minds they want to lock in some gains? what should they do and where should they migrate the money? >> first thing, they need to review their portfolio and a good rule of thumb. we talked to a number of members of the cnbc financial council and advised that make sure you have at least a year's worth of cash in your portfolio so you're not forced to liquidate stocks at a time that may not be the best time to do so. once you review your portfolio it may be time to rebalance. we have run in the stock market. u.s. equities in particular. and so without this correction you may be overweighted in certain categories in the u.s. equity market. so you may want to rebalance your portfolio to make sure that you're more in line with your goals and that would require you to lickquid some of the stocks.

also, reallocate. once you decided you're overweighed in some areas, maybe no weight in some areas like international stocks. look how well european stocks and developed international economies have done and what may be coming with quantitative easing. a lot of advisors say it's important for retirees/near retirees to consider putting equity exposure into international. for those who want to rebalance, what advice can you give them? >> well a lot of folks are saying i'm retired so i want income. a lot of my money is in fixed income, so how do i rebalance that portion of my portfolio? there as we know interest rates will likely rise at some point and you want to try to have bonds that are more or less not that sensitive to the interest rate fluctuation. you want to look at floating rate loans, look at bonds with higher yields and shorter maturities and also consider if you're not one who's buying individual bonds look for unconstrained bond fund. that's something a lot of financial advisors say may be a good one to give some flexibility and delve into

different aspes of fixed income that you may not be able to do yourself. >> quick answer here. people are saying in bonds, favor those with short ma turties, right? >> yes, shorter maturities higher yields. that's where you want to go with the bond market. >> sharon thank you as always. our expert. sharon epperson. and for more money tips on at nbr.com. and that does it for "nightly business r for tonight. i'm sue herera. thanks so much for j oondand i'm tyler mathisen. have a great evening everybody. we'll see you right

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