♪ >> announcer: this isnigh"night business report" with tyler mathisen and sue herrera. >> bounceback. stocks start the week with a 300-point rally, even as trade remains a big unknown for the market. >> our country h on trade been ripped off by virtually every country in the rld. >> not backing down. the president pushes his plan to imposear steepfs on steel and aluminum, breaking with members of his ownarty and clouding negotiations to rework naftou protect retirement. a 401(k) checklist for a volatile market. those stories and more tonight on "nightly business report" for monday, march 5th. good evening, everyone, and welcome. and it was a rally to start the week. stocks picked up steam midday,

as investors focused on the economy and a solid report on the u.s. services sector. concerns over trade, well, they may have eased just a bit today, after house speaker paul ryan urged the president to reconsider tariffs on aluminum and the head of the world's largest hedge fund called t threat of trade war a political show. whatever the reason, the major averages rose more than e on session. the dow jones industrials advanced 336 points to 24,874. nasdaq up 72 and the s&p 500 gained 29. >> even though concerns over tariffs eased bit today, many market watchers consider it a big unknown. and that was evident during the negotiations to rework the north american fre tra agreement or nafta. they were going on in mexico citi, and that ishere steve liesman is for us tonight. good evening, steve. >> reporter: good evening, sue. the fate of e north american free trade agreement is really

unclear aftercl the cion of the seventh round of talks between mexico, canada, and the united states, occurring under the threat of those steel and aluminum tariffs proposed last thursday by president in fact, the day began quite dramatically with president trump tweeting direct linkage between the nafta talks and the steel tariffs, saying that one could be -- if t canadians and the mexicans made an agreement with the united states, the those steel tariffs could come off. now, at the press conference with the top trade representatives, chrystia frland, the economics minister for canada, had very strong words, opposing those steel and aluminum tariffs. s a key nato ally and as the number one customer of americann steel,a would view any trade restrictions on canadian steel and aluminum as absolutelt unacle. should restrictions be imposed on canadian steel and aluminum products, canada will take

appropriate responsive measures to defend our tradenterests and our workers. >> reporter: for his part, robert lighthausser, the u.s. trade representative, said the tariffs are an ive to get things done, and the united states wants things done quicy. he urged a quick resolution of the issues to get ahead of political elections in mexiconi and thed states. here's what he said. finally, the united states has midterm elections coming up in november. all of this complicates our work i fear that the longer we proceed, the more political headwinds we will feel. thus, in the u.s., we must resolve our outstanding issues soon to maintain the possibility of having this measure be t considered b current congress. >> reporter: now, the actual on what depends happens with these steel and aluminum tariffs. guys, we just got word that isi,

the research group put out a note saying they see the odds of nafta being redone or agreed to at just 65%. tyler? nafta, at is next for steve? where do we stand? >> reporter: well i think we're -- i think a lot's going to change this week when president trump puts out the details of those proposals. you know there's a lot ofow incentivend motivation for him to -- from the repuxeicans, thet canada and mexico. he has so far stood fast against that. there's another meeting next month. and then, i don't know. i don't think they've agreed to go beyond thatighth round right now. robert lighthausser saying only six of 30 chapters have been agreed to so far. o wow. steve, thank youch. steve liesman in mexico city. reporter: a easure. >> well, tariffs could have an outsized impact on the oil industry. it is a very hot topic at the largest annualng gat of energy executives and ficials. jackie deangelis is in houston

for the sirra week conferr:ce. >> reporhe energy industry is facing a new pressing issue, tariffs. president trump's promise last week of imposing tariffs on imported steel and aluminum could raise costs for an industry that has scrambled to get them down since oil prices have dropped. but analysts the fear may be worse than the reality. >> we don't view it as much an issue. it comes out to about 5 to 7% of a total pipeline build cost, tually coming from the raw steel material. even if we were to see cosn inflatn terms of steel tariffs driving prices higher, it wouldn't be all that impactful for the pipeline op ators. >> another consequence of tariffs on imported steel is the fact that u.s. producers are working on making the graded steel needed for large-scale pipe projects, but the ramp-up y not be as fast to meet demand. >> it could actually result in being able to source this steel from those areashat could only produce the highest grade steel. that would be a bigger concern, where we can't actuallyso build

of the large-diameter pipes that are really underpining the nation's infrastructure. >> this morning, the international energy agen said the u.s. could be producing 17 million barrels of oil and gas per day in just five years. domestic oil output has already surpassed saudi arabia and could soon spass russia. >> the fundamentals are there, and if the -- these levels, the u.s. will cover about 60% of the oil alone in the next five years. >> other topics being discussed on the sidelines of the nd theence, deregulation impact of the trump tax plan, all seen as positive for energy companies. but t question , will that lead to overproduction and could that put a cap on higher. oil pric for "nightly business report," 'm jackie deangelis, houston, texas. >> but the view of tariffs is vastly different in steel country. take timkinel in canton, ohio, for ample. that company is just one of many cheering the decision.

leslie pickering reports tonight from one of itsan pl. >> reporter: after more than a century producing steel, timkin steel, which makes a higher-end product, was in a state of crisis, as the energy and and commodity prices tumbled in 2015 and 2016, they took timkin steel and other producers down with them. back then, timkin steel was running below 50%tycapa no longer profitable, the company was forced to reduce head count by about 12%. these were employees making $72,000 year on average. this new facility that we're standing in now eremained i for about a year. that's when ceo, tim timkin, started pleading with officials in washington to do something. timkin, a fifth generation leader ofes his ne company, says that the steel industry would be better ae to withstand downturns if trade was on a more level playing field. for years, the industry had complained of excess steel flooding the market fromoreign

producers. he says globally, there are 700 million metric tons of oversupply, 425 million of that coming from china, alone. demand in the u.s. million. 94 >> if we're given a level playing field, we can go toe to toe with anybody in the what i can't do is compete with foreign governments. and that is what we've been doing overhe last number of years. >> last wednesday night, around 00 p.m., timkin received a phtee call from the whihouse, asking him and six of his peers to be in washington t next morning. they also showed up for a meeting that lasted about 45 minutes.id prt trump made it clear that it was important to look after the u.s. steel industry,s timkin . if the u.s. were to give up on eel, the countryould be wholly dependent on foreign sources, which could taleaten natisecurity, according to industry leaders. the president announced that he would be imposing 25% tarif on steel imports, to protect the u.s. producers. the backdrop forteel has been

improving more recently without the tariffs. timkin said he's not sure what the tariffs will mean for employment levels, capital invement, or steel prices. he's waiting for more details. but most workers here are encouraged by the tariffs and what it means for their job security. especially after a few tough years. for "nightly business report," i'm leslie pickca, on, ohio. >> the chinese government set aggressive economic growth targets, as part of the national people's congress. but the outlook for the world's second large economy did not grab headlines like it has historicallyus instead, the was on tariffs. eunice yuan is in beijing for us. >> reporter: fears of arade warovershadowed the national olople's congress, ahead of the event which setsy for the year, the congress' spokesperson responded to th u.s.' trade tariffs, saying that china did not want to engage in a trade war, but that beijing bouldn't si either and watch its

interests get damaged. in addition to trade wars, economicargets were a major talking point. premiere kong gave their version of a ste of the union report and he revealed the gdp unchanged at around 6.5%. lee stressed that the chinese will continue to control financial risk, wch would be a huge concern of investors. economists were also focused on his c comments thatna would reduce the budget deficit from 3% to 2.6% of gdp. meat implies that the government will scale back f the stimulus which has been helping to support the economy. the premiere said china would give tax cuts for corporations and individuals, in equivalence to roughly 1% of gdp. some here have been concerned that the tax cuts in the.s. could boost america ee'sit compeness versus china. the premiere did not say anything directly about trade with the u.s., but did say that oe country would continue to reduce the capacit steel.

and liberalized sectors such as manufacturing, telecoms,ealth care, education, and new energy vehicles. there were no specifics, though, so it'sunclear i any of the changes will improve the climate for u.s. businesses. on the political front, the constitutional amendment to end term limits for the presidency was formally introduced to lawmakers today.on theess will vote on that on march 1th, but it's all but certain that those changes will be approvedavg the way for president xi jinping to stayn power for much longer than his second term. for "nighy business report," i'm eunice yuan. valiant'satg was upgra upgraded to buy from hold at deutsche bank. the firm says valiant is doing right things to strengthen its business. the price target now $20. shares were up 3.5% to $15.40. >> and general electric's outperform rating was reiterated at william blair. last alyst there cites week's announcement of three new

directors and says ge's aviation and health care businesses performing better than expected so far this year. the firm says theou stock cld climb top 20 to $22 a sha and w up 2% on the session to $14.42. >> morgan stanley is upgrading group onto equal weight fr underweight. they call theer sell-off ne. the price target is raised to $4.40. the shares closed just above that at $4.49. monster beverage's rating was raised from buy to hold. they're encouraged byne they drink maker's innovation pipeline. price target is $63. the shares n were uprly 3% to $55.74. and still ahead, some heavy hitters are helping kids learn the fundamentals of finance.

amazon is reportedly in talks to create checking account-.pe produc according to the "wall street journal," the process is the in its early stages and the proct would be aimed at younger customers and those without bunk ac. details, few, but the report states that the online retailer is not planning onecoming a bank. >> well, one account that manyo inve appear to be watching and changing is their 401(k). the volatility in the stock marketti is p quite a few of us on edge. sharon epperson joins us to cm us down. and some new numbers on how savers are reacting. it's great to seeyou, sharon, as always. >> good to be here. he so what are they doing? what are all of investors doing in response to the volatility? well, 401(k) investors are moving their money around. we're looking at some data now lightas just come up from solutions and their recordkeeper 401(k) plan.ou

ifook at february 5th, we remember that day when the s&p was down 4%. we saw 12 times the average daily trading activity in 401(k). 12 times higher than normal. and then just last week when we saw another market dip, we double the average on wednesday. so what 401(k) investors are doing right now is that they're moving their money around and this is retirement >> is this smart to do? >> it's not smart to do. they're doing exactly what financial advisers say don't do. they seem to be panicking. and their biggest threat to their 401(k) may be themselves. they need to figure out a way to protect themselves fromes makin knee-jerk reactions. >> so what should they do? do you do nothing? >> youhe sit and you assess your risks. you look at what your goals are andou try to ink, can i sleep at night? and if you can't,robably your mix is too aggressive in terms of the funds you're in in your 401(k). you also want to whether your company has something called auto-rebalancing. so you pick the mix you want of your investments and itill automatically readjust wherever the market changes to make sure

u keep that mix. if you check that box, you'll be in good shape. and aou managed a where you pay a small fee for a professional to take care of ito for that is an opposition in many 401(k) plans. maybe something to idco. >> sharon, thank you. >> sure. >> small cap dermyra pull the acneon its experimental treatment and shares head south. the biotech said it was discontinuing plans to develop the medication for treating moderate t severe acne after it wasn't anymore effective than the placo. that's not what a drug company wants to hear. during studies, the news came as a surprise to analysts and investor invest dermyra previously reported two successful trials with the treatment. shares plunged, finishing at $8.59. into theushing deeper meal kit space. the nation's largest retailer, which currently sells dinner

online grocerys service and in about 200 stores says it wants to make the ab offerings ava in 2,000 locations this year. unlike other meal kit companies, walmart saidustomers will not be required to purchase a subscription. walmart shares finished up 1% a8 98. meanwhile, shares of meal kit delivery service blue apron fell 5% to $260. and the hedge fund star borg valuin says it has ned two more directors to the board at newell brands, bringing its tota t count there 12, as the activist investor continues to pursue management changest the consumer products maker. just two weeks ago, newellan , which makes sharpie markers and ruermaid containers increased its board size in an effort to ward o starboard's efforts. shares of newell up 5% to $28.09. the french insurance giant axa is expanding its global

region ao its deal buy xl group. axa says it strengthens its position and presents opportunities for growth. shares of xl group popped29% to finish the day at $55.92. and nordstrom rejected a takeover offer from a nordstrom-founding family, saying that proposal the retailer. the family which owns more than 30% of the company offered $50 a share for the parts of nordstrom own.esn't already the shares initially fell in after-hours and ended the regular day down 2% to a new program teaching inner city kids how to invest i real estate drew some heavy hitters to yankee stadiumy. yester and diana olick was among them. s reporter: these k from the bronx are not heading into a baseball game. they're taking a step toward a brighter future.

part of aroam called project destin, designed to teach teens theal fundame of finance, specifically investing in real estate. >> we have to help them llunderstand, you can act make money from real estates and have a good life from real estate. it's the brain child of cedric bobo w launched it barely two years ago in detroit and brought on former yankee legend alex rodriguez, who now runs his own real estate development firm. he t brought ithe bronx. >> i was born down the street in washington heights. and i've always loved baseball and i love doing and real estate is a way out of the hood. >> reporter: the kids attended l seminars,rning how to value and finance apartment buildingsl >> we had to to a lawyer, we had to talk to a banker, and we also had to tk to broker. >> one-bedroom apartments, four two-nddroom apartments, one three-bedroom apartment. >> reporter: then they pitched purchase offers for two buildings, "shark tank" style to a panel of experts in the yankee

boardroom, including former bronx native, jennife alopez. >> to e to teach this to kids who maybe won't be able to have the harvard education orav don't that opportunity is to me a beautiful thing. because it's not just about kind of your life, it's about your life. it's not just about oing a property, it's about learning how to manage everything about your life. >> reporter: holding the finali compet at yankee stadium, one of new york's most iconic pieces of real estate not only draws the kids in, but makes for an eiting event. but what's more important to the founders here is not just that the kidsngake a st real estate, but that they follow through. >> we give 20% of our profits to a -350 that issues scholarships. so every quarter we're issuing u a scholarship if you continue to be gauengaged. and engagement is both in our classrooms,o but aline. >> i never knew i would be able to invest in something so real that is actually on the market, to nownteing pre in front of like millionaires. >> reporter: the progr has major partners, including

viacom, mastercard, and blackstone's president and ceo, jonathan grey. >> i think ts works pretty much anywhere. what you need, obviously, is some people on e ground,ome people in the community, the business community, local real estate people, who say, i want to take some time, i want to try to educate some kids and give them some opportunity. >>oeporter: the opportunity turn a little learning into a foundation to build on. for "nightly business report," i'm diana olick in the bronx. >> and that is pre.y co you can learn more about this program on our website, m.nbr. coming up, why cannabis and casinos do not mix. martin shkreli has been

ordered to forfeit more than $7 million in assets. the former drug company executive was convicted of defrauding inve sors. he ieduled to be sentenced for securities fraud friday. some of the assets s give up include a picasso painting and an album by wu-t g wu-tangs clan. recreational and medicinal marijuana are legal in nevada s ales are strong. but the casinos don't want anything to do with the fast-growing business. jane wells has the story from sin city. >> reporter: it's the biggest economic boon t vegas since gambling, marijuana. in the first six months, recreational pot was legal in neda. sales hit close to $200 million. but the gaming industry insists cannabis and casinos don'tmix, something isaac dietrich learned the hard way. >> so i was gambling with couple of friends, playing blackjack, and a security guard came over and asked to esco me off the floor.

>> reporter: detrick is ceo of mass roots, a marijuana news and review website that doesn't even handle actual pot. but when he listed his business in an application for a loyal t card at wynn, he was not only turned down, but b banned r life. >> we asked to be treated the same as every oer business. >> reporter: but marijuana is not like every other business, because it remains illeg in the eyes of the federal government. casinos have to abide by federal law, or they could lose their licenses. the casinos have to be extra vigilant against money laundering, if it involves money that is legal in the eyes of th state. one ceo of a very successful positive enterprise told me off-camera that since no bank will take hiscash, he brings it to vegas. he goes to the cinino, turns it chips, gambles with a little of it, and then eventually casheshose chipsn for a check that he can deposit into the bank account. no onenows how much of that is going on or exactly how to stop it. >> i think theve operaerm is reasonableness. they have toct reasonable due diligence to follow up on

any suspicions that they might have. there isn't an organized effort by the cannabis industr to go to a casino and do that. >> reporter: governor brian ing regulatory g panel, which decided new rules about how to handle pot. >> and this is a hard onte >> rep a panel that includes mgm resort ceo, jim murren. >> i think it provides tth to a difficult issue, but also unrstands the fluid nature of complicating laws between the united states and nevada. >>eporter: the panel decided casinos could not be in any sort of businselationship with marijuanas, enterprixcept they could continue to allow pot conventions on their properties. y this is sim a networking opportunity for those that provide serv the industries.ith for instance, the grow facilities and what best practices in that regard. they do not include consumption. >> reporter: it remains a sticky

situation. talk pot on the conventn oor, but keep pot money out of the casino, as sin city works to keep its since separate. ightly business report," i'm jane wells in las vegas. >> reporter: and before we go, here's another look at the rally on wall street. the dow advanced 336 points. the nasdaq was up 72 and the s&p 500 gained 29. and that does it for "nightly business report" for tonight. i'm sue herrera. you know it's been five years since cnbc began producing the broadcast. we thank you very much for your continued support and viewership. >> we do, indeed. man, it's gone byfast. i'm tyler mathisen. we also want to remind you, it's not just five year the time of year that your public tv station asks

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