this is "nightly business repo"it tyler mathisen and sue herera. raise the roof. americans are buying new homes at t fteace ht years. as the spring selng seaso picks up momentum. borrowing is up for the things we need such as houses and cars andeducation. but are cme taking on too much debt? power and speed. they're iconic. they'refast. but are muscle cars song enough to protect you during ollisions? those stories and more tonight on nightly business report for i'm sharon epperson i f sue herera. >> i'mylmathisen. a powerful rally on the street and it wasn'tt

ors.g but a combination of housing data was strong. ri went up. new highs for the year. and thereeems to be an increase in confidence tha higher interest rates likely won't hurt stock prices very much, if at all. the dow jones industrial average climbed 213 points to close at 17,706. nasdaq added 95. and the s&p 500 rose 28. ariho hore on today's big gain. >> reporter: stocks finished strong on the back of a big gain in april's new home sales and the back of strength in the european markets. the u.s. markets rallying from the opening bell. this after a new poll showed that britons are less likely to vote to leave the eu in a brexit. me f the month of april rose to their highest levels in eight at data along with the news that price for new homes were very high levels and the news that the luxury home builder

toll brothers came in f to the market's tednings rally. pacing the gains today, strength in health care. in finance and tech stocks, pecially semiconductors. these sectors though among the poorest-performing sectors of the year. this led some traders to point out this could be a short covering rally or when investors expect these stocks would fall, reverse their wages. impressive in itsall-day staying power traders rgeart because they say the if markets continue to face a number of head winds including etior higher interest r a price evaluations. at the oern i'm mary thompson fornightly business report." as mary mentionedho strong new home sales put e commerce department said new home sales c more than 16.5% in april to a seasonally adjusted annual rate of 0 its, an eight-year high. diana olick has more on what's

shing up to be a very strong spring market. >> reporter: there just aren't enough homes for sale. that's one reason builders are seeing big demand. falling nationwide and mes are especially in major cities. inventories dowble digits in seattle, atlanta, portland, lottdallas, and kansas city just to make a few. new listings are down as well as potential sellers are a ngbuy. n't be able to find >> we got in theou market because of the super-tight inventories creating demand and massive job growth. this is a great setup for a slow and sy recovery. >> reporter: slow but not so steady. sales of newly built homesumps nearly 17% in april after falling in the months before. but it's not just that headline turning s. it's the price. edian price of a newly buil home soared nearly 10% to

$321,100. the highest reading on record. the last peak was in 2006. not only is demand pushing home prices higher, builders are basically absent from the starter home market because most of the action is on the pricier end, which in turn skews that median number higher. that was clear in a big quarterly earnings beat by luxury builder toll brothers raising expectations for 2016 sales and seeing it's already pricey price head evenigr to well over $800,000. >> the issue of the millennials or people of that age and deferral in marriage and waiting to buy. then when they buy they're much older andherefore not a starter ho buyer anymore. >> reporter: it bodes well for builders but not so much for buyers. as prices will likely continue to heat up right along with the mercury this summer.

>>readore about housing head to our website nbr.com. of course most of those people who bought new homes had to take out mortgages to get them. that was one of the rso why household debt, which also includes auto and student loans, ro the first quarter of the li the period of time leading up to theinancial crisis, sed rrowing may not be sh bad thing this time around. stevmaai >> reporter: total household bt clig a slim 1.1% in the fiua to 12.2trillion, the seventh straight quarterly rihe biggest increase in ge she great recession according to the report from the new york federal reserve bank theas auto and student loans, but declines in credit card and home equity s consumer debt a problem? are we in theid o a consumer debt bb hardly. totremains more than

00lion below the peak of per capita debt continues to improve.since the population is new foreclosures and nkruptcies fell. nequ loans rose by the least since2005, up $138 tth of a recession dent surged by more than $400li a quarter. nqsowecse an with just the best to those credit. forecession, people with the bestredit scores got 24% of all mortgages and the worst got 13%. in part because of subprime in now the best creditset nearly 60% of all newmortgages. the second tier hasn in half and thereally no mortgage money for ans wi the lowest credit scores. e rst whether banks are too sheep i lending or regulations are too tough. some problem areas ma sremain above tr.ntoa the percent of loans that are

90-days plus delinquene autos fr rtges, credit cards and student loans. it's n worrisome picture of coumis debt, not suggesting we're in the laternnf credit or economic cycle. talk more about household debt, the co, ahe economy. rt brandy wine global.folio ening to steve liesman's report iteang better in managing our debt as coumers. umoi a better nd why a jonathan before the financial ? >>kn i think there's a pointed out, i think first ofnk lending standards hav beted up since the global financial crisis. so it's a little m difficult but i think moretahe debt is in the hands of the position to be able to service and payachat debt.

and the other part wchnk oio housing.age debt.tant, that housing is an asset that s appreciate over time. so there w some wealth created along withthat. so i think theta, it's gradual increase i and t' n- borrowing and people thatus overextended, the people that al h prey good balance sheets. >> so loansng made to better er let's talk a little bit about what effectis interest rates hnse borrowers. is it going tochm in any sort of meaningful way? >> i don't think in the end, le. m in the camp i think if the i a position to slowly, i thin ioro go slow in terms ofigg policy, that that's associated wi. economy that's doing bte and as part of that economyngetages should start to move higher. soite bit of a battle between a consumer that better income versus, maybe i

haveo little bit more for that mortgage or ccard or whatever type of debt it might be. >> so what poi sd we be concerned about the level ebt become bad? s. economy teeters on a ceio we're not there yet. again, i thinkead a kind of cultural shift in terms of how consumers tbout debt. i think -- i j d't see the days that we areorwi to consume anywhere like we were te years ago. i think consumptn'oing to be more a function of income, of wages, which we should have a little bitess economic volatility. but no, if t f makes a policy mi u dla rallies ar t u.s. economy slows down to a recession, obviously debt, it's not going to be your friend in that kind of environment. >> right now seems like we're on a good track. so hope that continues. jack mcintyre with brandy wine globalstments, thank you.

the president of philadelphia federal reserve is ecing recent comments of other fed fi patrick harker said the central bank should raise interest rates at the next policy meeting in june. that is unless there's a shift the economic data between now and en. he added that hcan e see thr.to three more interest rat >> uate to a potential merger that wven reporting on. monsanaste behr's $6 billion offer, calling it "financially inadequate." monsanto's ceo said theni offer failed to address ncg andulory risks. however, the world's largest c isn to continuing talks. behr says it's looking forward to gaining in constructive discussion. shares of monsanto cedore than 3%. the deal news hewlett-padil s off it with computer vices business scieescorporation. the combination crees a

company with $26 billion in an revenue, expected to deliver $8.5 billion to hp enterprise shde separately, hewlett-packard enterprises which is itself a spinoff of hewlett-packard reedng in line with wall street ess. shares of sharply in after-hour trading on news of the . shares of computer scienceo ikyoe there. still ahead, a high-stakes trial in siliconal that has the entire tech industry on ed >> oracle and google, two of s big tech companies, are battling

in court and the outcome could ies.nd far beyond thesewo francisco tells us what'sous at st >> reporter: two tech titans, billion. and a decision that could send shock waves across the industry. thetakes are high in the oracle versusooit that rests with a jury. or cth google used java programming t c n it drow the most popular opating systemn google contends it was fair use of that code. but the case goes beyond the two companies. at its hearts open source, a pillar of the software industry that a huge community o developers and startups rely . tves google can be able to if oraclewins. >> if indeed the fair use defense is not hold here and the jury does find's ogrammers are going to have to

sure that they secure the ghts, not just go along ng ns to call them to the carpet when there's time for infringement. >> reporter: this trial has been dragging on for nearly six years. as lawyers made their closing statements the rhetoric became increasingly heated. oracle's lawyer told the jury, you don't take people's property without permission and use it for your own benefit. gole tk a shortcut, and they took a shortcut at oracle's expense. meanwhile, google's attorney told jurors tt oracle is accusing google of unfair copying because it failed in its own attempts to enter the smartphone market. heaid they now want all the crndhole lot of money. that is not fair. now that is up for the ten jurors to dide and it needs to be animous. until then the tech industry remains on edge. dierdrea for "nightly businessor francisco. meanwhile, google'sr

ceo eric schmidt spo a google's legal fight with oracle aaj conference in europe designed to help tu gw faster. he made theoms to our julia chatterly who interviewed a number of other well-known business leaders. she has more now from amsterdam. >> reporter: i'm in amsrdam for the 2016 sttup fest europe. this is effectively speed dating between european startups in the tech sector and potential investors. there are a whole host of speakers today. tim cook of apple kicked off the proceedings. he spent a great deal o time talking abouteciv issues. we think if you send message, we're more likehe fed ex rr right? we take thegeealed and bring it over. an that's our point of view t's notoif view. it's a pointf vi we've hadnde' constantly added

more and more security. and i reali teple have a dnt . bue the peoe that do at least understand where we're >> reporter: i got the chance to speak to the alphabet changer rick schmidt. we talked about today's court case between oracle and the company and he says if the ruling goes in oror there's only one loser. >> p of the open source veme. t r hurts oracle. because they own java and they ed p it into this world. and it just doesn't make sense to me that they're in that path. >> reporter: i couldn't let eric leave without talking about u.s. politics. it's common knowledge he's cking a startup that's looking at data analytics for hillary, the same for president obama. i picked up on donald trump's recent comments that data is overrated. i askedcor hisviews. >> let ustag with donald trump tha ccy twitter.ly been fueled by

laim of which i checked w a tech company that used a lot of data. >> reporter: the speed dating here in amsterdam is going to continue for the week throughout the country. it may be the first event of its kind. but the hope here is if you can att talent like tim cook and eric schmidt, it won't be the last. r "nightly business report," i'm juliachatterly. a fast-growing s valley startup could soon be snapchat, the populsa app, is seeki at$200 t' accordingchestment capital cr of a valuation.lies thatpp three years ag fk offered to buy st f $4 billion. million daily users. >>es of a profit slowdown. ant're b tonight's "market s. th electronics retailerdbeha ex results buteefi falling

hqn japan impacted theer an supplyf ihigh-margin prod. st also said its chief financial officer is ste. shareselor than 7% t 30.55. verizon isarning of ongoing stay ne impact its second-quarterre e telecom giant says while itha maintenae requests itasot been able to mtus demands. nearly 40,000yee been striking since april 13th. shares finis t d up almost 1% to49.58. pharmaceutical d eli lilly says it has theoto launch 14 new drugs b2023. in areas like ds and oncology. the cosce thinks lily is well positioned he finally able to take the iend turn it into odnd demographics are in our favor. twds the medicine that you take in your leoue going to take after the age of

65. so people are g to need the products that come out of o labs. i thinks a gat sort of lineup to ha a w look 10 or 20rso the future. >> shares rose a little o 1% to 74.99. >> under armour is upping its gamenit'ied to be the largestelea in ncaa history. it 15-year arrangement with ucla. worth $280 ll the new partnership begins in july . shares of under armour up more th 2% to 38.22. do's pizza might owe some of its emp lot of ugh because of the new york on largest pizza who is suing delivery cin three of its franchisees, alleging employees 1 new york locations were underpaid b more than ,0 investigation by the state found tas knowingly using a comput system for years that inaccurately calculated workers'

wages. shares of mip fractionally at 122.52. auto's l results hit a speed bu ofe nearly ahe automotivearts retailer ought stow zone but that wasn'td enough to beat estimates. e m as the companyit legal charge and bad weather in several of the gionsf the country it serves. theless, shares of auto zone up nearly 2.5% to . > fast-growing industry of coiveo gaming just took a big stepard. this friday you'll be ableo watch other people play games on ur living room television.betus available onr computer. is e-sports parh to be the next big sports bu? julia boorstin tellss r iy im >> reporter: believe it or not, 220liplov to watch other people play video games.

now they'llo watch vion. or face-offs on today kicks off thest nebe tand hosted by ag a agency wme. afur d sng competitionslad in fro t0 e- events s. than tat turn plans to broadcast on television this yearng ules for emographic, advertisers. >> there to see ay high-end product with a of engagement froy sought-after demo. ellll see a conversion of advertisein into this space. >> reporter: the ea sponsors include arby's, buffalo's wild wings, and credit karma. vanta the immortals tends ner i think what a lot o b ezing if you're trying to reachn 18 to 34-year-old

male demographic it's this or netfx a netflix doesn't sell advertising. >> reporter: former nba player ck who owns a team mpetingay ts tournament is a turning point for e-sports. another way that tmsanh in on their growing fan se >> there's traditional sports, thdi srt attack to it, which is your tic sa ditssponsorship, merchandising, all the ancilla an traditional ways you would see a traditional srting frhe capitalize on their investment. >> reporter: the rangeme game, and tech giants are betting on sp appeal, espn launching an vertical dedicated to e-. tavis and electronic arts investing. go youtube is building its appiname play. tr video games. ation n to buy >> on twitch you're averaging 80 to 90 minutes of engagement.

in the 18 to 35demographic, which is what everyone wants to hit. >> reporter: the industry is projecteto gw to $1.9 billion in 2018. up from $750 million last year for "nightly business report," i'm julia boorst coming up, do muscle cars live up to their names when put to the crash tes the he have securit f t tsa is out. kelly hogan was removed from his post as frustration mounts over long security lines at airport checkpoints. hogan came under firerous a homeland security during his

report found tsa failed to spot 95% of concealed weapons and explosives. toyota and uber areeaming up. the world'sarge car manufacturer is establishing a strategic partnership with the world's largest ride sharing app. the collaboration includes an investment by the automaker in uber. under thegrme uber drivers will lease their vehles from toyota and cover their payment roug earnings made while driving uber. volkswagen alsotingnto the ride-sharing market. theer automaker investing in an israeli startup, get, ernsido rival to separately a federal judge said vw isg progress toward a final settlement in itsie emissions sc it will include compensation for owners o more than 480,000 vehicles whose exhaustys were rigged to foil emissions e dl is expectedefate june. a newie o crash tests is raisingio ahe

safety of muscl ca we're not talking about classic ve of the cars that first becameop i late'dyes. horsepower and more witthe features to help ptect y i a crash. phil lebeau has more. >> reporter: bst muscle cars like the chevy, t latest version of 's mustang, or the redesigned dodge challenger, are primarily about and speed. they all come with versions ine than 500 horsepower. but how safe are ey the insurance institute for highway safet phe muscle cars to aerf crash tests and e r w mixed. >> people muscle cars fa more horsepower we put in, t st s vehicles go. ash at higher speeds and they ne state-of-the-art crash pron>>orter: one particular test

whichepcas ommon and deadly collisionhro corner of the car raised concerns. ceptable. mustang asams but the dodge ng rformance was called marginal by theiihs. asp for dodge says no ngt determines overall clsafety. fca u.s. vehicles mead oreed requirements.e government s el enougtoarn thee cars tte ineits best rating of topy pick. but it's li tha will slow down their pu. nc 2009 the romustang, and challenger hllee strong sales growth. ant'y to continue with new m these muscle cars on t the big three know speed and power stillllch why ha250,000 muscle cars were sole last year. teat number is

expected to ben higher. ph , lyes od more about the sc car cra h to our website, nbr.com. reet helped by a strong report on housing. look at t dow up 213 points, more tha1.2%. 17,606. na 2% gh up 95. the s&p 500 up 28. ha "nightly business report" for tonight. mn epperson. thanks so much for ng >> thanks from me,ylmaen. have a great evening, everybody, see you back here mo is brought to you by...

r e who co th al, made with passion. r e who co th al, introducing the comple ag suias from kitchenaid. camo he.com. thoughtfully yours. vine connections,prpof ique argentine wines ougeneration wine maker laura catena. beolli -- proudly crafng olive oil since . -viva bertolli! iedel, e wine glass company. ce cruises -- worldwide destinations, neg, peizvi wyo. -eeninmyaughter, was an infant,