production in 2016 is expected to fall for the first time in 17 years. and it's already closed four sites at this field as this is "nightly business report" with tyler mathisen and sue herera. competitors like saudi arabia refuse to produce output and >> what monday blues? squeezing high-cost producers in stocks kick off the week in rally mode. beijing. here, machines as they are after going nowhere for a year, called in china, hang their are new highs within reach? heads in silence. each of these oil wells produces china's oil industry is now about ten barrels of oil a day. the workers here tell us the struggling. tonight, rare access to that process isn't very efficient. when the price of oil was high, nation's oil fields. you're hired. what some employers really think though, the company still made a lot of money but now that is no of your online degree. all that and more tonight on a longer the case. special edition of "nightly the workers say production had been cut by at least 10%. business report" from chicago. for monday, may 16th. many complain about shorter working hours, lower pay, no bonuses or raises. >> good everyone, welcome. we're broadcasting from the jong, a veteran, earned $615 a heart of chicago thanks to our friends at the studios of wttw. month. many of us don't want to work the big story tonight, the rally here anymore. some have already left the oil

on wall street and driven by two field and started small businesses, he says. very familiar factors, oil and the salary here is low while the prices of goods continue to rise. contract workers like shing tell apple. the combination lifted the dow us assignments are few and far jones industrial average 175 points and closed at 17,710. between. it's not easy to find work nasdaq added 57 and the s&p 500 nowadays. it's even harder to stay at a long-term job, he says. gained 20. let's focus first, though, on migrant workers are just like oil prices which rose to 2016 donkeys. if a donkey can carry a heavy highs because of some production load, it gets fed. outages globally and because of if not, no food. an upbeat forecast from goldman yet, having oil is a national sachs. one of the most active banks in security concern for china. though less and less is coming from homegrown producers, as commodities. jackie deangelis his more. long as oil prices stay so long. >> a new order called for by goldman sachs. for "nightly business report," are the bears on wall street i'm eunice yoon. starting to get bullish? now to apple. goldman changing the price the stock easily the best performing today on the plu chip target to $50 a barrel. dow index after warren buffett goldman was one of the biggest disclosed it purchased more than

bears on the streets at one 9.5 million shares of the point calling for $20 oil. company during the first quarter. we didn't see $20 exactly but according to regulatory filings, earlier this year in february, this is berkshire's first we did get closer to 26 on investment in apple. this decision was not made by oversupply concerns. goldman cautions that prices buffett himself but by one of his two deputies. apple shares moved more than could grow lower in early 2017 3.5% higher, its best day since bringing global inventory back march. the berkshire hathaway stake up and seasonal trends show the in apple comes as tim cook began demand dropped in the first a tour of china. quarter. that's the second biggest market estimates are a little less than for the company. cook visited one of apple's main 4 million barrels per day. stores in downtown beijing and highest output since 2008. was accompanied by the president of the china's popular production in the u.s. is steadily dropping. ride-hailing company which apple but other factors are impacting oil as well. invested a billion dollars in just last week. perhaps maybe more persuasive apple's business has come under than what goldman sachs is pressure in china recently suggesting. >> demands running about 700, because of the slowing of the economy and increased 800,000 barrels a day over last competition and a government year, a really significant amount. it's a record at this point. clampdown on some of it is the weak dollar has supported services, including itunes and prices. we have lost production in the u.s. and in venezuela but opec ibooks. pfizer is buying anacore keeps producing at record levels

so that's kind of offsetting that at this point. pharmaceuticals. >> but buyer beware, last year this deal comes one month after pfizer scrapped plans to in june prices went to 60 before purchase allergan for $160 they dropped to about $40 in august when summer demand drops billion. some day the deal represents a off. if history repeats itself, we shift in strategy, one that could see that pattern again focuses on strengthening its this year. pipeline of drugs ahead of the for "nightly business report," i'm jackie deangelis. decision to sell or spin off the despite the rise in oil generic business. prices today, the prolonged shares soared 57% today. downturn took yet another pfizer shares rose fractionally. victim. filing for chapter 11 bankruptcy protection after securing the dow component and support for its plan from its verizon will strike negotiations tomorrow after meeting with creditors. it can improve the balance labor secretary tom perez over sheets and will focus on oil and the weekend. nearly 40,000 workers walked off gas production in oklahoma and the job last month. colorado. that prolonged drop in crude the grievances include the prices has taken a toll on the outsources of some jobs and the capping of pension. oil industry in china, which, as it has been nearly a year since the stock market hit you probably know, is the second largest oil consumer. record highs and since then the in an unusual move, some indices have made little production in china is quietly progress and enduring wild being shut down. swings along the way. account bull market resume after

eunice yoon obtained rare access a 12-month break in mike from the oil fields tonight. >> reporter: few outside china's santolli take as look. >> a year anniversary from the state dominated oil industry get a chance to see this. all-time high and a couple of the oil field is the second scary plunges along the way. the index is about 3% below the largest in the country and developing it has been a national priority for this may 21st, 2015, high of 2130. given the circumstances, it energy-hungry economy. the first oil well was dug here could have been a good deal worse. corporate profits have been in in 1961. decline for three straight quarters and running 7% below the industry, which was seen as strategic, the government forecast. most foreign markets at least expanded the oil fields. but now china's oil industry is 20% at some point in the last a victim of the global supply year. the u.s. economy has been too sluggish for the federal reserve glut. in january, offshore producers to follow the plan to raise interest rates to more normal levels and the race for said output had dropped the most president has followed a surprising path and now revolves since 1999 after china says its around the theme of economic unease. what, then, has been supporting stocks? well, in part, it is that low interest rate. the treasury yield fell and

feasting on dividend-rich stocks driving the dow jones up in the last year, the same amount that the dow transportation index has dropped due to worries over sluggish trade. a rotation among sectors has allowed the major indexes without matching them. this has kept stocks from getting much cheaper as corporate stockses ha have fall. it's slightly below the valuation of a year ago. of course, if today's profit projections are a bit more plausible than the overall optimistic forecast a year ago, stocks could certainly muster a run at those old highs. in other words, they will likely take a better economy to energy this meandering market. unfortunately, it will be months before we know with any confidence if this is a good bet. for "nightly business report," i'm mike santolli at the new york stock exchange. so can this bull market continue higher after that basic

12-month hiatus. matt maley is a strategist and joins us now. a year ago when the market was at or hanging around the all-time highs, people didn't use the phrase overvalued. now the market is a little bit lower and everybody's worried about it being overvalued. that doesn't sound to me like a recipe to propel stocks higher. >> no, tyler, the main reason for that is they are coming down. the valuations, you have price earnings ratio when earnings are going down and that means the ratio is going to move up even though prices are coming down. so that's got to be when you have valuations at these levels, combined with this sideways move in the market for 18 months, as you guys talked about, at a time when we still have all sorts of stimulus from the ecb and boj, even though the fed has pulled back, people are starting to get a little less confident about the effect or impact of central

bank stimulus. so you've got a lot of things working against the market going higher and even though it hasn't been able to breakdown. >> a lot of people think as though we've seen the worst in terms of earnings that we've troughed, if you will. and if indeed that is the case, this may be a good time to put your toe into the market if you have a long-term horizon. >> that's certainly true. one of the concerns, of course, is that the economy -- the economy is still -- we're still in the worst recovery since world war ii. how much of it is the economy going to bounce back and we see a slower economy around the world. i mean, china seems to be stabilizing but we're still getting a lot of mixed signals. it's not like bouncing back in a major way. however, if you're right, susan, that's going to be very positive because this whole thing with the bounce in oil is very important. because the real reason we had a big selloff in the first quarter was because of stresses in the

credit markets. everybody was worried about it seizing up. maybe not to the degree of 2008 but still seizing up. still that hasn't happened and oil has stay elevated, that would be very positive for the market. >> matt, thank you for your time tonight. we appreciate it. matt maley. and still ahead, the biggest change the hit startup investing in years and could revolutionize how small businesses are financed. ♪ the supreme court avoided issuing a major ruling on a case related to the affordable care act. the challenge was brought by religious employers who objected to the health law's

contraception coverage mandate. the justices said they would not decide the case and sent it back down to the lower courts. there are new rules today for small investors. the security and exchange commission allow mainstream investors putting money into start-ups allowing them to get into the ground floor. but with this new opportunity, also comes some risk. kate rogers has the details for us. good to see you, kate, as always. who exactly are we talking about? who can invest? >> the good news is that you don't have to be rich anymore to get in on the early stage investment. individuals who now make less than 100 k can invest either $2,000 or less than 5% of their annual income or net worth. people who make more money can invest more and until now under title 2 regulation of the 2012 jobs act, they had to be accredited, meaning $200,000 or more or a net worth of at least

1 million. >> kate, what can they buy? is there a restriction? >> the funding cap for equity crowd funding is at $1 million in a 12-month period, less than the average round for small businesses which is around $2 million and this is not high-flying startups and they are warning divorce to do their due diligence before deciding to back the small businesses because they could potentially throws their investment. >> that's the risk you laid out to beautifully. how do they physically do it? how do they invest? >> there are registered broker deals to connect investors to companies as of friday the s.e.c. registered eight. we are waiting for them to release the names. and once again warning investors they have to do their research before putting money into one of the ventures.

if you lose the full investment, it could be for as long as a decade until you start seeing that. it's definitely risky. >> kate, thanks so much. kate rogers. >> a takeover offer for tribune that he is where we begin tonight's market focus. the owner of usa today of this all-cash bid from 22% to $475 million. the news comes after the owner of the chicago tribune and los angeles times previously rejected the unsolicited offer and went so far as to adopt what is known as a poison pill defense. the company has acknowledged the new offer and now says we're going to go ahead and review it. shares up 2% to $15.98. tribune up fractionally to $39. berkshire hathaway's ceo warren buffett has offered financial support to a group

bidding for yahoo!'s internet asset. quicken loans is among the group of potential and buffett will only provide resources if the deal takes place. yahoo! shares did rise more than 2.5% on the session. they finished at 3748. natural gas producer range resources will acquire rival memorial resource development in a deal valued at $3.3 billion. range resources will also assume more than $1 billion of memorial's debt. shares of range resources finishing today down 10% to 3769. memorial resource shares were up 3% to 1386. and through a new rebate program, valiant pharmaceutical will provide hospitals with steeper discounts. the pharmaceutical giant, criticized for the past drug price increases, will offer rebates between 10 and 40%. that amount will be determined

based on the volume of drugs purchased during a quarter. shares of valiant rose more than 4% to 2705. well, from coffee to baby food, amazon now reportedly ready to disrupt another part of the retail business. according to "the wall street journal," the online retailer is getting ready now to enter the multibillion dollar private label market for groceries and other goods. as josh lipton reports, the move may not be a simple one. costco has kirkland, walmart has great value and now amazon will have wickedly prime, making it the latest retail to expand its private label products. for one, this will allow the online retailer to offer consumers that many more products to choose from when shopping on its website. but there's also a strategic component. jeff besos with this decision is going right after big-name

competitors, like walmart, costco and they can put pressure on third-party merchants selling products on his platform. >> it keeps these third-party merchants on it in, one, the quality of what they sell and, two, in the prices that they charge consumers. >> there's also a financial component to this move. skully says that these niche products usually carry higher profit margins than name brands and consumers are big fans. store brand sales reached an all-time record and an increase of more than 2 million over the previous year. there are risks for amazon, however. the company has stumbled in the past. for example, last year, amazon made news when it had to pull its private label diaper brand citing the need for design and improvement. still, analysts think that besos is making the right move because the program will initially target and serve members of

amazon's $99 per year prime program. it's important to keep those members very happy. skully estimates there are some 60 million prime members who spend up to four times more than nonprime members. for it is part, amazon declined to commend on this report. for "nightly business report," i'm josh lipton in san francisco. amazon's move comes as traditional retailers struggle to increase their sales and foot traffic. as we've been reporting, consumers are still spending, they are just spending in different ways. so it's no surprise that some startups are trying to take advantage of the shift in consumer behavior and beat traditional retailers at their own game. courtney reagan reports from stockton, california. >> reporter: w clo sales at department stores and specialty retailers are less than stellar, some indicate that shoppers are still buying clothes. the co-founder sought out to

solve a daily issue. >> my wife has a closet full of clothes and nothing to wear every day is what really inspired me to think about a solution. >> reporter: tote is like netflix for clothing. subscribers get three garments at a i am ttime. you save $600 over retail pricing and it's individual style that is key to keeping shoppers subscribing. but this is one example of a retail startup using technology to disrupt the traditional way of thinking. and over time, the founders realized that data was doing a better job of cure rating style selections than human stylists. subscriber numbers are growing 15% each month and it's not without competition. the black tux rent formalwear and have a loyal following.

and then another giving venture capital funding to disrupt retail as we know it. >> relying on the salespeople to make that final sale, relies on exclusive advertising on tv and print media to associate the brand with the product. coupled with interesting social content is the winning formula. >> the co-founder has his eye on bigger fish. >> a lot of retailers would likely like us continue to do what we're doing and we're not going to see much competition from them until, you know, we start to launch in a bigger way. >> a battle cry to department and specialty stores may not want to ignore. i'm courtney reagan in stockton, california into coming up, are online degrees really worth it? what potential employers think of your internet-based diploma.

♪ and here's a look at what to watch for tomorrow. housing starts are out and consumer prices are among the economic reports that will be released tomorrow. also, dow component home bdepot is out with earnings. and that's what to watch for on tuesday. >> well, it is commencement season. many college graduates now entering the workforce a growing number aren't graduating from a traditional college or university. instead, they are earning their degrees online. but how are those dip employee mas viewed by potential employers? sharon epperson takes a look at

why o whether all degrees are created equal. >> reporter: 32-year-old jonathan paul dropped out nine years ago. >> i kind of was in limbo here for a while and i was looking for a way to complete my degree. >> reporter: but he didn't go back to a physical campus to get it. he recently earned a bachelor's degree in finance from penn state university after completing all of his coursework online. >> i kind of approached it from more of a learning point of view instead of the end result of just, you know, getting a grade. >> reporter: nearly 3 million college students are taking courses exclusively online. bypassing the traditional campus experience. while they may not have the same opportunities to socialize and network as students on campus, they are gaining valuable skills. our students tell us that they come away learning more than perhaps they learned in a residential class and as an

added benefit they got more comfortable with using technology which is a great skill to have in the marketplace today. >> reporter: online degrees are becoming more accepted by the academic community and employers. 71% of college leaders in one study says the outcomes in online-only education are the same or superior to face-to-face instruction. another survey found nearly half of middle and senior managers, 47% said they would be extremely or very likely to hire someone with an online degree. >> employers today are absolutely placing an online degree on the same level playing field with the more traditional university. however, with anything on your resume, you need to be prepared to speak to the benefits of your online degree. >> reporter: highlighting your creative thinking and ability to work in a group are key attributes to many employers. so is expertise in using social and digital media. >> a lot of meetings are being conducted using hangout.

>> reporter: you must be se self-directed and disciplined too. >> you can't knock it out in a week or something like that but it's organized within each week. >> reporter: for jonathan paul, it has paid off. >> i have a 4.0 technically and that demonstrates the commitment i've made and i've been able to implement a plan. >> reporter: another attribute this recent grad hopes will catch the attention of potential employers. for "nightly business report," i'm sharon epperson in center valley, pennsylvania. and on that note, that is "nightly business report" for tonight. i'm sue herera. thank you for joining us. >> and i'm tyler mathisen. thank you to our friends here at wttg in chicago. have a great evening, everybody. we'll see you tomorr.

announcer: "imagemakers" is made possible by the members of kqed. [ clock ticking ]

[ light switch clicking ]