>> announcer: ttls is "niy business report" with tyler mathisen and sue herera. tough talk. the president late today did not back down on his tariff threat, leaving the bulls on edge over the possibility of a global trade war. thawing of tension. rodoes itect for talks between north korea and the u.s. remove one of the risks from the maet? missing the targ. shoppers flock to the retailer's website but at a cost to the company. those stories a more tonight on "nightly business report," for tuesday, march6. good evening, everyone, and welcome. i'm sue herera. tyler mathisen is off tonight. ust when some investors thought maybe, just maybe, the tariffs prosed by the white house would end up being more target , the president lat this afternoon said he had no choice but to follow through

with levying steep tariffs on steel and aluminum. >> when we're behind on every single country, trade wars aren't so bad.rs you unnd what i mean by that? when we're down by 30 billion,4 billion, 60 billion, 100 billion, the trade war hurts them. it doesn't hurt us. >> at that white house news conference with the swedish prime minister, the presidentrn that he would impose a n carenalty on europ imports if the block carried out a threat toe. retali the possibility of a trade war sent stocks all over the place fore the dow jones industrial average finally finished just nine points higher to 24,884. the nasdaq was up 41. and the s&p 500 added seven. bob pisani has more on the push and pull in this market.ep >>ter: more whipsaw action for the markets today. the dow jones industrial average swung between triple-digit gains and losses,igher by 166 points at its height, but essentially

unchangedt the close. traders have been hanging on every word out of the white house and other congressional leaders on the state of the proposed tariffs. stocks rose briefly midday when david perdue suggested theid prt might be flexible on the tariffs. but in a late day press conference with thesh swe prime minister, the president did not back down on his threat to slap tariffs on steel and aluminum imports, claiming china sends more sheel to united states than most people think. he disputed early reports that china imports only 2% of the steel imported into the united states. where would alld? this bulls are praying that by the end of the week, president trump will indeed sound more conciliatory on tiffs and that friday's february jobs report will show wage growth is subdued. wage growthnuary's of 2.9% year over year was the strongest since that caused a 50-point drop in the s&p 500 a mon ago and was the start of much of the chaos in february. if we get that one-two punch, the markets will definitely

rally on friday. until then, the bulls will be on edge. for "nightly business report," i'm bob pisani at the new york stock exchange. house speaker paul ryan pushed back against the idea of broad tariffs and said he'gi the president to take a a more targetedpproach so as not toheave a negative impact on economy. >> we'reng encoura the administration to focus on what is clearly a legitimate problem and to e surgical in its approach so that we can go after the true abusers without creating any kind of unintended consequences or collateral damage. >> the european union is reportedly preparing punitive tariffs totaling $3.5 billion worth o wort iconic brands, for example including motorcycles, edrley-davidson is b in speaker ryan's home state of wisconsin. bourbon made in senate majority leader mitchon mll's home

state of kentucky. and jeans, headquartered in nancy pelosi's san francisco. economic adviser to the president i gary cohn resigning, first reported by he new york times." hampton pearson has more. >> reporter: sue, gary cohn is leaving the president trump released a statement says "gary did a superb jobriving our agenda, helping deliver tax cuts and reforms and unleashing the american economy once from white house chief of staff john kelly, "gary has demonstrated his ski and leadership to pass historic tax reform." and from gary cohn, "it has been an honor to help pass taxha reforms benefit the american people."

gary cohn leaving the white house. we know that he had been on the opposite side of the president's desire to enact strongrade tariffs involving aluminum and steel. but white house officials saying it was not the only reason that got us to this poi where gary cohn is leaving and on his way out as national economic f direct president donald trump. >> hampton pearson in washington, hampton, thank you very much. bill adams joins u nowo talk about that and much more. he is the seniornternational economist with pnc financial group. welcome, bill. it's nice to have you here. this is a late development --o >> good with you, sue. >> it's a late development being eported by "the new yor times." we should add that mr. cohn was pushing back very hard against the implementation of these tariffs. given the talk fro t president this afternoon, it appears that he has definitely lost that ght. what are the implications for

the rest of the trump economic agenda if mr. cohn is not there? >> i think the immediate implications of implementing these metals tariffs would be retaliation by european union, our trading paners, that will target exporting industries. through, it go would be a headwind for those targeted porters. reduced export profits and fewer jobs servicingho exports than we would otherwise have seen.u >> can i turn o "the new york times" report that gary cohn is apparently going to leave the whiuse. he is the one who basically championed taxreform, the tax reform plan. he's involved with the infrastructure plan. p hed back against the tariffs, he's obviously lost that particulafight. how will this impact the economic agenda of the trump

administration if he is not an adviser to the president any longer? >> well, there are obviously multiple streams of thought within the administration about having more conventional economic policies versus mor of a protectionist policy. athave beening over the course of the last year plus to see of which those picies have been implemented. and there are still o forces both sides, both within the administration, as well as within congress. >> all right. let'surn to -- >> so i'm still in "wait and see." >> you're in wait and see mode. my question in terms of trade specifically is whether this is just going to be a slight retaliation if indeed it comes to that by the eu, or not we're going to be in a full-blown trade war like we saw in the 1930 and '40s.

>> i'm expecting in the base case that teu will probably retaliate. s happens again, they'll aretaliate in a targete limited way. that's what's happened between the united states and our tradingvi partners in ps rounds of trade conflicts. we have imposedfs tar on foreign imports in each of the prior two presidential administrations. so the eu knows whatte the p of u.s. policy-making is the tail risk is a mutually escalating trade war. unlikely because of the costs ly that it would impose on the u.s. economy. >> on that note, bill adams with pnc financial group, thank you very much. for one family-owned steel business, tariffs could mean a breyer future. kayla tausche isn cincinnati.

>> reporter: every minute at beyersteel, old railroad axles are fed into a furnace, heated, and molded into 1200 feet o steel rebar. they sell the rebar to commercial conanruction cos. it's had to drop the price to compete with cheap foreign imports. we're over 16,000 miles away from japan or turkey. and i can buy japanese or turkish rebar at the port of cincinnati nine miles cheaper than my raw material coasts. i don't understand how that lrks. >> reporter: in tht three years, their profit margins have fallen nearly 40%. he says he's laid off nearly half the workforce at this northeastern cincinnati mill. he says trump's tariffs would reverse tha trend. >> we have production lines that are not operational right now. we hav -- we were dow from 180 employees to 95. those jobs can come back. we have capacity and mhines ght now that are waiting for a

market to sell to. and there's people trying to work, that want to come back. >> reporter: employment in ohio's still and iron industr has fallen in recent years. but its 15,000 jobs are a small portion of the state's labor force. critics warn the downside could be much bigger. >> there is a lot of concern among republican senators that f this could sor metastasize into a larger trade war. >> reporter: beyer says it's an industry worth protecting. >> there's nothing you cano without steel. you can't get lipstick. you can' get soup. you can't get cars. you can't get all these things. utyou can't get cos. you have to have steel and commodities. >> reporter: president trump's proposed tariffs w hldave far-reaching effects outside the u.s. but they would giveurke beyer's fourth generation family business some posterity. for "nightly business report," kayla tausche, cincinnati.

the hea of the dallas fed said tariffs on imported steel and aluminum have the potential to hurt trade relcaions with da and mexico. he calls these t countries critical to u.s. competitiveness and jobs. >> i'm ccerned we're in the middle of the trade negotiations with both countries.ld this c have some chilling effect. but it's so clearly in the interests of the united states to have strong trading relationships with bothhose countries. i would be optimistic about how this actually gets implemented. >> kaplan also said he favors three interest this year and that those should happen sooner rather than latert many exphe central bank to raise rates when it meets later this month. there may be signs of a thaw on the korean peninsula, according to the south korean delegation, theorth isilling to hold talks with the u.s. about giving up its nuclear that helped send the south korean etf higher in trading today. david reedel joins us to discuss what possible talks betwe north korea and the u.s. could

mean for the stock market. he is the founder a president of reedel research group. good to see you, thanks for joining us again. certainly a stunning and surprising development between north and south korea t and united states. but we have seen hopeful signs before, and theof they kin fall to the wayside. bew should the market react to this? use that was one of the big risks that wasot in the market so long ago, just a couple of months ago. >> that's exactly righas it recently that this was top of mind. i think it's been replaced in investors' minds in the u.s. with issues around the impending trade war if we go that route, the number of fed hikes in 2018 and so forth. but this should not be downplayed. this is a very big deal. if we can get some level of peace and communication going on that's constructive in the south korean peninsula, i think that's very positive for global markets. sosha >> so what do we look for, what would be another sign or the next sign,s, perhhat these

talks might actually come to fruition? think if you start hearing more noises about the u.s. participatinin these talks, there was reporting that vice president pen was looking to meet with the olympics, that got scrapped at the but if we start to see moves by the us around this topic, that could be very important for solidifying the move towards talks and eventually perhaps a deal. >> what role will beijing play, if at all, in either pushing these talksorward or perhaps even mediating parts of them? >> president trump said today he felt the chinesead been helpful, that beijing had been helpful. i think if it shows that they have -- some of our people on the ground in china have observed there's been a l ls goods going across the north korea/china border. there was a big effort in the u.s. to crimp north korea's moves on shipping and beijing

pushed hard against that. b ifjing played a role in getting them to the table, i think that's very positive longer term. with beijing and south korea both working on north korea, moving them towards this, that could really make a difference. >> you kind of touched on this earlier. but do deu think the t tariff issue and the possibility of retaliation has now supers e superseded the worries or the fears that we had of a conflic of north korea in the market's mind, anyway? >> i do. i think in the u.s. market it really has. we saw the south korean etf responded favorably. i would expect the asian etfs to respond favorably tonight. in the u.s. market, i would expect them c to becerned with growth trajectory here at home. >> thank you so much, david reedel with the reedel research group. it is time to take a look at some of today's upades and downgrades. ups saw its rating raised to buy from hold.

an ana ist calls the most attractive dividend play among lsrge cap transportation stocks. the firm also c the threat from amazon overblown. shares of upsy rose nea 4% to $109.80. myn's rating was raised to overweight from equal weight at morgan stanley, the first time the analyst has increased his rating on mylan in three years. the price target was raised to $50. mylanlosed up 4% to $43.23. citi rsed its rating on her about to buy from neutral.ating on the company sees a big rally in s shares now that activist investor bill ackman has exited his posirion. the new target is $114. the shares rose more than 2% to $96.84. still ahead tonight, target is making some very big tinvestments. ts investors are still looking for the big payoff.

cvs health plans to issue more than $40 billion of new debt tocqund itssition of aetna. it will be the largest corporate bond sale in more an two years. and it's also being looked at as a bellwher for the health of the corporate bond market. target is spending a lot of money to remake itself. but it's coming at a cost. the discount retailer missed earnings estimates and issued a disappointing outlook. and that sent the shares ofta et down more than 4%. courtney reagan spoke with ta rget's ceo about what's going on at e company and its future.

>> reporter: target's holiday quarter turned out the strongest sales in three year online sales brewed nearly 30%. in-store saleser increased a falling last year. but there was a problem. cost for the discount retailer rose a lot. emplee wages and a big investment in its stores cut into profit. target's outlook was also disappointing because all that spending will continue. target executives met with investors here ininneapolis near its headquarters as it begins year two of a three-year, $7 billion strategy to grow. >> we're going to continue to invest to grow. i're going to continue to invest new capabilities to make sure we meet the needs of the guests >> reporter: it plans to build out a smaller number of stores in bigger cities. it's redesigning online orders so shoppers get their orders faster. they're expanding its line of

personal shoppers and adding a drive-up program to more than a thousand by the end of the inye. stors have concerns about the hit to profitability. but ceo brian cornell is confident his strategy will work. >> we'reff to a goo start. we're on a trajectory for positive growth both rein-s and online. our new initiatives are being well-rece'ved. i think going to continue the progress we made in 2017 throughout 2018. >> reporter: shareholders want target to invest in its business, as long asin it a return in the not so distant future. for "nightly business report," i'm courtneeareagan in milis, minnesota. united health care is lowering drug costs for mlions of its members. that's where we begin tonight's market focus. beginning next year, united health care said it would begin passing down the discounts that it receivesak from drugs directly to some of its members in the form of rebatesor precipitati prescription drugs. the new policy applies to more

than 7illion peopleovered by certain employer sponsored plans but leaves out about 18 million members who are self insured. the shares were off nearly 1% to $226.18. sienna, which makes networking technology, reported a smaller t expected loss and revenue that topped expectations. th company said results were helped by growing demand for streaming services and mobile apps. shares climbed 10%. blackberry is suing facebook, claim the social media giant infringed on its massaging app patents. blackberry said facebook used technology and features that were present in blackbtry's fi smartphones. facebook shares were off a fraction to $179.78. shes of blackberry rose slightly, to $12.44. afterllhe tax preparer h&r block reported results that topped expectations. it said promotions helpe bring

in customers. they reaffirmed their outlook for the year. shar initially rose in half hours but finished the regular day down three cents to $25.77. up next, the big happenings going on with big oil. and here is a look at what to watch for tomorrow. the federal reserve releasee its be book, an anecdotal look at economic conditions across the country. we'll get data showing where the u.s. trade deficit stands. d adps out with its latest employment report for the private sector. that comes justhead of the big jobs report which is due out later this week. and that is what to wadah for on wedn new orders for u.s.-made

goods recorded their bdegest ine in six months in the month of january,th according t commerce department. business spending on equipment also appears to be slowing after a string of strong growth last year. the the biggest names i energy industry say demand is picking up. but theirns enthusiasm rem somewhat tempered because of all facedrbulence that sector not so long ago. brian sullivan is in houston at sarah week, one ostthe b gatherings of oil executives and officials. >> reporter: optimistic yet cautious. those words describe the mood at one of the world's biggest oil, gas, and e conferences. after a boom, and then a terrible bust, all in the last tenars, the price of oil has anmained relatively stable lately. the industry is once again talking about growth. >> what you have seen is as the economy growsglobally, healthy emand that we are seeing and

forecasting going forward, the economy is doing very well, not only in this country but the world. and with ,th it will be healthy demand, that is our projection. >> r caution there is a new threat to that optimism. a lack of new capital coming into e the globalrgy markets. the head of opec warns that unless major new investments are made soon, production growth y drop.ould actua and with demand growing, the world could one against face an kind of energy crisis. >> if the trend of the last two or three years continue, and god forbid, we will be sowg seeds for a future global energy crisis that nobody wants to see. >> reporter: with global e economies on rise and stock markets everywhere doing fairly tell, the lack of new investm can seem perplexing. but an investment banking executive ss investors are simply worried about being burned again. >> part of it is because the

stocks have done badly through downturn. people are sort of, you know, affected by the fact that we had a difficult peopleust drive by lower oil prices. and we've had another if he no, ma'am -- if he no, ma'am unanimous, which is natural gas prices shareholder hawhich have pretty solidly. >> reporter: in an industry w e where project can cost tens of billions of dollars, they want futurethe ground now for investment later. brian sullivan, houston. there is a newatillionaire richer than all others, according to "forbes" latest list. amazon's jeff bezos is the first centibillionaire. bill gates fell to number two. rounding out the topthree, berkshire hathaway's warren buffett. there are 20 billionaires around the world. they hold a combined net wortht

of mor $9 trillion. before we go, here is another look at how t major averages finished the day. the dow finished just nine points higher to 24,884. the nasdaq was up . and the s&p 500 added seven. keep an eye on how thearket reacts to the late evening report that the president's economic adviser gary cohn is resigning. that will do it for "nightly business report" night. i'm sue herera. thanks for joining us. we want to remind you, this is the time of year your public television staon seeks your support. we thank you for it. have a great evening. seyou tomorrow.

>> this is "bbc world news america." funding of this presentation is made possible by the freeman foundation, and kovler foundation, pursuing solutions for amera's neglected needs. >> planning a vacation escape that is relaxing, inviting, and exciting is a lot easier than you think. you can find it here in aruba. families, couples, and friends can all find their escape on the island with warm, sunny days, cooling trade winds, and the crystal blue caribbean sea.