report. >> warning signs why a century old trading strategy has some investors biting their nails and betding on a fall. >> apple reveals a new music app but is it too late to compete in an already crowded field. >> high-tech medicine. what cancer doctors are doing to improve the course of treatment for some of their patients. all that and more on nightly business report for monday june 8th. >> welcome. glad you could be with us. the world's most recognizable stock market index is now in the red for 2015 as the broader market came under pressure to

start this week. it fell 82 points today to 17,776. the s&p 500 gave back 13. noe fair the dow's retreat isn't terribly dramatic. it's off one third of 1% and 3% off it's all time high but the decline in the dow transportation avera is another matter. it is now 10% off it's high and that diversion is signaling a correction could be coming for the broader market. dominic explains why the so-called dow theory has some investors quite nervous. >> if you're one of those out there that thinks the stock market is due for a bigger pull back there's at least one indicator that may be on your side. something called dow theory. it's a method of analyzing

historical mov in the stock market to predict what the market is likely to do and it's not looking pretty. a big part is how the dow jones industrial average performed relationship ti to the dow jones transportation average. you want to see it followed up by a move high in the transportation stocks like airlines railroads and trucking companies. after all if the economy and business environment gets better you'd expect to see more goods being shipped to satisfy growing demand. the problem is that's not happening this time around. even though the dow industrials remain a few percentage points away from record highs the transportation avera has been on a steady decline since last november losing around 10% of its value in that span. so what you got is a stock market rally that's not being confirmed by a rally in transportation stocks. that's what had some traders worried and thinking we may be due for a broader market loss

ahead. >> of course that's one take. some maintain the lagging performance of transport stock is a temporary issue and things get back on track in the coming months. still others say they're not as important of an indicator today as in the past because we're less of a manufacturing economy and don't need to ship things everywhere. regardless the diversions is raising a caution flag for many in the market. for nightly business report i'm dominic. he joins us now to talk more about the dow transportation average and what it's telling us about the markets. welcome david. nice to is you here. thank you for joining us. >> thanks for having me. >> give me your read on whether or not the transportation average is telling us that there may be a turn to the downside in this market. >> my bottom line is i don't think it's telling us there's an imminent correction coming in the broader market. i think it's very important to look at what is driving the down side in the dow transports

average and when you peel back the onion i think you'll find there's some very industry specif factors that are driving that down side. for instance 40% of the index is comprised of railroads and airlines. now for railroads they're being hurt by lower natural gas prices. utilities therefore are losing less coal so less coal is being transported and for airlines oil prices are up and there's worries about expanding capacity. i think it's very specific to those particular industries. that's what is plaguing the transporta index and i wouldn't read into it as a sign for the broader economy. >> the transport stocks had gone up a good bit in 2014 to levels that some think got them overstretched so maybe they're just selling off but i'm curious as to why airlines which had a very rough day today are off as much as they are.

sure oil prices are higher than they were to begin the year but they're lower than this time last year. traffic is way up. we'll hear later in the broadcast that the airline industry is going to forecast record lows and profits for the airlines. it's a good question. i do think though that this was a thesis in the airline industry that because there had been so much consolidation that they were going to be much more disciplined when it came to matching supply and demand but in the last couple of weeks we have gotten some indication that a couple of the airlines are going to revert to their old wa and they're more focused on expansion and less on profitability. i think that fear of additional airline capacity leading to poor pricing is troubling the airline stocks. >> we' leave it there. thank you for joining us. >> dow component mcdonald's saw

it's sales fall in may. something that's a quite familiar story for the world's biggest restaurant chain by revenue. sales in the u.s. top market fell more than 2% but europe's results were stronger up 2.3% and that helped total worldwide sales come in just above expectations. now the company plans to stop disclosing it's monthly sales beginning july 1. shares fell a little bit today. 95.32 was the close. >> apple's ceo tim cook took to the stage and unveiled a highly anticipated music streaming service. it comes at a time when spotify and pandora dominate the space. apple says it's product is different but that didn't lift the stock which finished to the down side. josh has more from the apple developers conference in san francisco. it does seem apple is late to this particular party. what makes it different? >> well apple's strategy is not

as concerned with being first as being right. this was the most radical change to the music strategy we've seen in years. the new service called apple music. tim cook billing it as a game changer. there's three basic components. you'll have a streaming service, a 24/7 radio station and this new feature called connect, the whole idea being connecting artists to fans more quickly. the cost is $9.99 a month. the open question is whether apple has done enough to differentiate it's profit from competition. you think a spot identify which already claimed over 60 million users. 15 million of whom are paying subscribers. can they now win those over? what's the bottom line for investors? he says even if apple does match spotify it would add less than 1% to revenue for 2016.

no material financial impact at least in the near to intermediate term. a new service like this does have a real benefit strategically. upgrades the user experience and it means more importantly and more broadly more of those users stay on that ios platform. >> it's interesting, josh i'm a spotify user and i pay $9.95 a month which is the same pies point and i have room for one of those in my life. probably not two. certainly not three and i subscribe to pandora as well. does this suggest that there's trouble in the music download world or that apple is moving away from that pay per cut pay per album download model? >> you're absolutely spot on. it's true that apple had no choice but to make this transition. remember last year download revenues fell about 9% streaming popped 30%. that's what the growth is and

that's why ceo tim cook moving hard and fast into this new model. >> josh thank you so much. in response to apple introducing it's new music service shares of pandora traded lower falling almost 4% in today's session. >> well ceos are becoming more spesti fewer chief executives choose to increase sales and hiring this year. ceos are looking for 2.5% economic growth this year. that's down slightly from the prior forecast last quarter. the chairman of the group, at&t ceo says congress should enact tax reform and pass the trade promotion authority to help support the economy. >> business economists are also a bit down beat on growth. a new survey from the national association of business economics says that the second quarter will be far weaker than previously expected. sluggish conditions in the first three months of the year will persist into the second and drag

down average growth for 2015. the group does not expect the pace of growth to exceed last year's 2.4%. >> meantime more consumers are feeling better about the labor market. according to the new york fed's monthly consumer survey, people's eckxpectations that they might lose their jobs hit a new low in may. but also people don't expect theirs to grow much either. they polled 1200 heads of households nationwide. >> appointing a new chief executive today after the sudden resignation of the firm's co-ceos. the new chief faces a tough job as he will aim to move that bank beyond a slew of regulatory and legal probes. the management shake up comes just a month after the former chiefs unveiled a cost cutting plan to help performance. shares rose nearly 5%. >> now to europe where president obama, german chancellor merkel and all the leaders of the group of 7 nations discuss the state of the global economy and the threat of isis and those

sanctions against russia. carolyn roth has more now from germany. g-7 leaders wrapped up two days of intense talks here. we saw a huge police presence and thousands of protestors but by and large things were pretty calm. in terms of the talks it was largely as expected. leaders vowed to extend sanctions on russia over ukraine and if need be t sanctions could be sanctioned. they wanted to speed up the trade talks between the eu and the u.s. and japan. they also vowed to continue to fight the advance of isis crack down on terrorist financing but obama conceding in that press conference before that we do not have a fully coherent strategy on isis. we still need the help of the iraqis. we don't yet have a complete

strategy because it requires commitments on the part of the iraqis as well about how recruitment takes place. about how that training takes place. so the details of that are not yet worked out. >> last but not least greece kept the g-7 leaders pretty busy. presid obama stating in the press conference that greece must make very very tough choices and he was backed up by angela merkel that said time is running out for greece. the deadline for greece to strike a deal with eu creditors is still the end of june. for nightly business report i'm carolyn roth. >> still ahead, high-tech medicine. how technology is changing the way canc.

>> crate and barrel is closing it's flag ship new york city store. the reason rising madison avenue rents. the furniture and home accessories firm plans to close the location this summer after 20 years. it will not relocate and continue to operate it's other downtown locations. >> as some stores close others are planning to open in a massive new million square foot space on manhattan's west side. it's a huge investment coming when they're competing with online shopping sites and paying higher and higher rents. courtney reagan has our west side story tonight. >> toys "r" us and now crate and barrel are planning to chose retail stores in new york city but that's not stopping one bold developer from pushing forward with plans for the country's largest ever private real estate

development that when finished will america's fifth largest shopping destination and the foundation for the shops and restaurants is now in place. it's bei railways. the final phase is set to be completed in 2024. in an exe interview with cnbc related president and ceo says despite the well-known and well trafficked shopping destinations there still room for one more. >> we're not going to compete and take the place of this incredible experience on 5th avenue and madison. there's going to be an enormous amount of visitor traffic and that's quite different. there's a place for all of this in new york. >> i'm standing on the first level oft will be a million square feet of retail.

they'll see up to 30 million people visit each year. the retail space will be anchored by the first neiman-marcus store stemming 250,000 square feet. related urban estimates hudson yards will generate $1 billion in retail sales annually once open to the public. >> we believe our retailers will average over $2,000 a square foot in sales so that translates back into incredible productive and the rent structures that we're offering people are a fraction of the rents that are being sustained right now on 5th avenue and madison avenue. >> the plans also include a park and event space as well as coach, loreal and sap headquaters. time warner will be moving here from its space 25 blocks north in columbus circle. even as many consumers shift to online shopping there's st you can't order for the

web. an exceptional dining experience is one of them. they're betting three fours of space with sweeping views will convince them to make dinner reservations on the fourth fifth, and sixth floors. i' courtney reagan in new york city. >> we begin with another disappointing qua from sears. the retailer extended a string of losses as sales continue to decline and this comes even as the company has completed a number of financial moves to help profitability. shares were off 4% to 3901. panasonic will send hundreds to the tesla plant in nevada. they're partnering up to make lithium ion batteries. shares pop to 256.29. >> dave and busters with a high profit f the fourth quarter. the restaurant chain raised the

outlook for the year. rallied initially after the close. the stock ended the regular trading day slightly lower. h and r block out and revenue missed the mark. shares were volatile after the bell. fed ex will hike it's dividend 25%. the package delivery giant's pay out now 25 cents a share and it's payable in july to hair on record. shares didn't move initially on that news. during the regular trading session shares were off to 179.89. >> technology and medicine. new tests are giving way to a deeper understanding of some cancers. it could also change the course of treatment for patients with a finding. now there's a new tool that helps doctors better treat those patients.

meg has more. >> understanding the underlying genetic drivers of cancer has been a major movement in the field but raises the question of what doctors should do with all the information. particularly when a finding is rare. and as testing tools become more sophisticated tha happening more and more frequently. >> these diseases are multiple diseases that are going to be defined by genetic markers and what we call lung cancer is going to be many diseases. the real true benefit is really a greater understanding of the disease and then marrying drugs to address that disease. >> cancer testing company foundation medicine said almost 2-thirds of the time in it's experience patients have a muy tigs that's never been seen before at the facility where they're being treated. >> when a patient is found with a rare finding which is often the case now that we're getting sophisticated in our testing, doctors anywhere struggle to figure out where they have been treated and understand how those patients responded or didn't

respond to other theories. >> there's this idea of running into another doctor in the hallway and asking your thoughts on the case but sometimes with the rare findings the patient could be halfway across the country. foundation medicine has been doing sequencing of tumors for five plus years and over that time 43,000 cases and what we realized is in our data base cases that may be rare in an in institution or practice we have seen before. h 91% of those patients to others in it's data base. it's rolling out a new product called patient match to help doctors communicate with rare drivers of cancer and how they treated them. when a doctor gets test results back they can request information from other doctors that have seen similar cases even if they're only a hand full and share treatment outcomes. it's all to protect patient confidentialy but it's connecting doctors in entirely new ways.

it's a movement across the industry. something the organization itself is also working on. for nightly business report in chicago. comup want to invest along side quincy jones? a look at the music legend's start up that could shake up . >> here is what to watch tomorrow. a read on small business

optimism comes out. jobs openings and labor turnover survey jolts as well. they'll hold their annual meeting and that's what to watch tuesday. despite the lagging transport stocks we told you about at the top of the program the airline industry is set to take off this year according to the international air transport association airlines will post profits of $30 billion up 80% from last year. the surge has been spurred by a strong eco and low fuel prices a music legend wants to reinvent a music lesson. the 27 award winner is behind the new company that's part rosetta stone and part guitar hero and you can invest in the project. >> music industry icon quincy jones is crowd funding his latest business venture. >> whatever works.

whatever works. i think the end result is this. >> raising cash for a company he coe created and invested in along side the company's ceo chris vance. the software platform uses video tutorials to teach users to play piano with a video game-like feel. he's seeking $1.5 million and has so far raised 810,000. in the age of crowd funding more celebrities are turning to the general public to help grow new business ideas. equity crowd funding allows them to put their money behind ideas for a stake in the company unlike donation based fund-raising with incentives and pricing. always reminded me what the word means, that's the collected love is more important than the individual and that's true. >> and for an sbrupen like

vae it's a chance to work with a music icon and validate his company. to be able to invite them in and share on this journey with us as shareholders is something we're very proud of. >> playground sessions have more than 18,000 users and more than 4,000 subscribers as well as publishing agreement with sony universal, warner music and disney. celebrities turning to crowd funding for their business ideas isn't anything new according to the ceo of crowd funder.com. he worked with everyone from o ming on a wine company to neal young on a music venture. >> you can get a stake in these projects along side the celebrity who is also investing their money. >> new regulations are expected from the fcc this year which may open up crowd funding to both acredited and nonacredited investors.

for nightly business report i'm kate rogers. >> and to read more about quincy jones business venture head to our website nbr.com. and finally tonight, history was made this past weekend when american pharaoh won the triple crown. our cameras were there when he ed the greatest feet. we take a look at the journey and what's next for american pharoah. he's done what no other horse has accomplished since 1978. won the triple crown. on saturday, the 3-year colt dominated the racetrack and won the belmont stakes in new york. capping his wins at the kentucky derby and the preakness. with his misspelled name and friendly demeanor he's quickly become an american hero and he's also among the most valuable horses in the world. experts say his value is well

over $30 million. his breeding rights for sold for over 15 million and sponsors like wheels up and monster beverage paid up big time to be along for the ride and a lot more is likely to come for both american pharoah and the family that o him. they hope to keep racing him for the rest of the year including the breeder's cup in october with the $2 million purse. and when american pharoah stands out to stud he could command $100,000 or more. if he stands 200 times a year that could add up to $20 million. nearly twice the average pay of the fortune 500 ceo. >> the associated press reports that 96% of the 2 dhrs wagers placed on american pharoah have gone uncashed. they received $3.80 for each

ticket. all others probably keeping the winning tickets as souvenirs. >> he had a better year than most ceos. >> definitely has. i'd keep it as a piece of history. sure. >> that does it for nightly business report. for tonight. thank you for joining us. >> thanks from me as well. have a great evening everybody. we'll see you back here tomorro

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