>> announcer: this is "nightly business report"isith tyler ma and sue herera. >>en today i'm dng america's national security by placing tariffs on foreign imports of steel and aluminum. >> tariffs, set. but they exclude key trading partners and stocks get a lift. health care heavyweight cigna and expre scripps get a deal. flipping frenzy. more people are doing it but they're reaping smaller rewards. those stories tonight on "nightly business report" for thursday, march 8th. good evening, everyone, and welcome. the president today made good on his promise to levy tariffs of 25% on imports of steel and 10% on aluminum.

but heoftened the blow a bit. the tariffs exclude key allies like canada and mexico and they offer some flexi for other countries. the narrower approach was cheered by wall street and stocks rose into the closing bell. the dow jones industrial average added 93 points to finish at 23,895. nasdaq was up 31. the s&p 500 added 12. however those narrower tariffs sentteel stocks lower by significant percentage moves. kayla tausche i following the story for us tonight from the white house. kayla, what exactly did the president put in place today? >> reporter: well, sue, the p presiden in place, he signed an official proclamation thn 15 days will levy steep tallffs on foreign steel and aluminum coming into the united states except fnd that steel aluminum coming in from canada and mexico, due to the short term exemption that you mentioned.

the aouncement is the result of a decision that deeply divided the administration and d to the resignation of top economic adviser gary cohn. this announcement was the result of intense lobbying over the last week by critics of a more broad approach and members of theeplican party as well as industry leaders opposed to this that led to that narrower approach that we saw today. 15though it takes effect i days, the president said it can still be amended in the future. take a listen. >> america will remain open to modifying or removing the tariffs for individual nations as long we can agree on a way to ensure that their products no longer threaten our security. so i've put ambassador relighthizer, a gentleman, in charge of negotiating tth countriet seek an alternative to the steel and aluminum tariffs. >> reporter: countries are

already getting in the queue. the eu trading chief has an appointment set with lighthizer for saturday. there will no doubt be questions for the administration fm canada as it seeks to understanh exemptions the president wants to extract. >> thank you very much, kayla taususe at the white the aluminum industry is hoping the tariffs will lead to a renaissance of sorts. me presidenttioned one particular plant at today's event at the white house. >> after the signing of this proclamation, century aluminum in kentucky, century's a gre company, will be investing over $100 million to restart and ir upgrade t idled military grade high quality aluminum production, which is also critically importanto our national security. >> jackie deangeli traveled to

that very plant in kentucky. >> reporter: even with concerns over a trade war, aluminum workers are cheering. century aluminum in kentucky makes high purity aluminum. that's the kind used in u.s. fighter jets, body armor and tanks. aluminum has many uses. defense is one. century used to be part of the supply cha defense. but the industry struggled because of anticompetitive practices that havee it difficult to compete with the international suppliers. this facility is only operating at 40% capacity right now. >> if the tariff gets passed, it's going to help us out tremendously. productionto up our to where we can go back to running five lines instead of where we' orating on two lines now. it's going to create more jobs for this area. when the green light comes, century plans to invest $100 million in this

plant, a more than 300 jobs to get back to 100% capacity eventually. but it's a slow process. they say it will take about six months to get to just 60%. >> a million tons in the u.s. aluminum capacity. there's a 150,000 tons sitting out in this plant that can get restarted. we can get this industry at least back to its ability to supply roughly 20%, maybe 30% of u.s. demand. still need a tremendous amount of imports. but it's a start. >> reporter: forabhose concerned t a trade war, the folks here say it's all about national security. they think it's important for the u.s. to have the ability and the capacity to supply the industry domestically. >> i'm prior military myself. to know we produce the aluminum for national defense, it gives me a sense of pride in my job. >> reporter: but critics of the riff say a potential trade war

is not in the best interests of the country. and the downside risks outweigh the benefits. still, here at century, they believe a aluminum revival is on the way, thanks to president trum for "nightly business report," i'm jackie deangelis in kentucky. while the aluminum industry here is cheering, the head of china's aluminum association is warning the trump administration of the dangers tariffs. and he's advising the chinese government to take action. >> translator: we are not scared of a trade war because chinese uminum production i mainly for the domestic market. we are against protectionismre d we against a trade war. however, if the u.s. wants one, we a not afraid. >> despite concerns of a trade war, theres a town in china that may be a good example of why the trump administration wants to impose tariffs. the town was declared steel-free when its last mill was recently

shut down. buct produion didn't stop. eunice yoon took a trip there to see what's going on. >> reporter: this steel mill used to be at the center of life this town in northern china. now it's a relic of its past as the country seeks to reduce the capacity. we're abo a ree-hour drive from beijing. the government here declared this city steel-free bac in november when the authorities visited the steel mill behind me, the last one in this town, and determined it had been officially shut down. in itsheyday, baoding had eight steel mills, contributing to its status as the country's largest mill. but china has come under criticism for flooding other countries like the u.s. with cheap steel. as you can see behind me, there's no actity here,ut the capacity has been shifted to a firm in the south of the

country. and that's why so many ofin china's trpartners including the united states are frustrated with the chinese. beijing may be reducing capacity here but it's moving it elsewhere. this man worked 14 years at the plant. now he's jobless. i've been speaking to some of the former steel workers and they say that they haven't been happy with the compensation. in fact many of them blocked the road to the steel hill once they heard what they were going to ge00 for every year employed. a big reason why china may never close steel plants as quickly as president trump wants. for "nightly business report," i'm eunice yoon in baoding. jpmorgan's vice president says equities could fall 40%. countries cordero is chief

investment officer and j paulson is a little bit more cautious. gentlemen, welcome to both o you. it's not really a round talle, but wall it that. chris, would it surprise you to see a eccoon, and more than that, a bear market of 20 to 40% heer the next couple of years? >> over next couple of years, anything is possible. this year i thinkh w where the economic indicators are, i don't e it coming very soon. investing in stocks, you can always havehe possibility of a 20% decline. but fundamentally we're still in a very good place. >> jim, the last time wead you on, you were cautious on the srket. and we did increased volatility and a downward bias in the marke for a couple weeks there. are you still cautious on this market? and why, ifso >> yes, i am a little bit. i don't see anything like a 20 to 40% decline, sue, mainly

because i think too that the economy is doing pretty well and is likely to continue to avoid recession over the next few years. but i think the marketsre justing to a little higher inflation and a need to raise inrest rates even more yet. we've raised the ten-year from 2 1/2 to 3. i think we might raise it to 3 1/2 yet before the year is out. i think wage inflation is nsumer inflation is also going higher. all of those things will challenge the valuation of stocks. even if earnings keep coming through really go if you're paying a smaller price earnings multiple on those eaings, i think it might result in kind of a flat-ish market throughout much of this year. and we could continue to have volatity but maybe not go very far for the year. >> chris, you'reit ae more optimistic, you seat market going higher at a 7% per year pace. but you do say in any given yea it's possible you get a correction, who knows?

should i feel safe putting fresh money to work now, and if so, what are the sectors or corners of the market or regions of the best? you like >> you should feel safe if it's long term money and you have a long term strategy, that's what you want to do. havdon't want to try and any short term movements. that's where it's dangerous, the co-predent of jpmorgan says there's going to be a correction. there's going to be a correction, but we don't when. now is the time to have a long term strategy. where? >> foreign markets are cheaper than u.s. markets. you want to be broly diversified. if you think about other countries around the globe, their economies are just starting to come online, whereas our economy is sort of at its peak. so there are better opportunities abroad but you want to include everything in your portfolio. >> jim, you like commodities. how does the average investors play that, and why commodities?

>> i would certainly own some stocks to just like chris suggested. i like the international markets more than the u.s. in the stock market as well. but i think as part of the stoct lio, you could substitute a little bit of commodities, not a huge percentage, b a small amount, in lieu of holding just all equities. i think the real asset markets are going to be good this and commodities in particular. and it is difficult to ticipate, sue, but the best way for individuals to do that is through an f. ere are etfs that trying to mimic the performance of the broad based uted states commodity price indices. i kind of thing commodities are going to do better tha and bonds this year. >> gentlemen, we'll leave it there, chris cordero and jim paulson. coming up, it used to be all the but is flipping houses still worth it? we'll find out.

cigna, one of the uny's is est health insurers, buying express scripts, for $52 billion. the proposed merger is jt the latest get-together in an industry undergoing massive consolidation. the deal sent shares of express scripts up 8.5% and cigna dow more than 11%. bertha coombs takes a closer look at how this combination could change the sector. >> reporter: express scripts was the last large standalone pharmacy benefit firm.

cigna's ceo says by coordinating will benefits, the merger help drive down health costs for the company and its ies. >> the current marketplace is not sustainable. the mket demands for value. >> reporter: it was well-known asgna wanted to do a deal and express scripts long thought to be in play. it follows pharmacy giant cvs' to acquire insurer aetna. but this deal was a surprise. >> there is a little bit of shock right now. >> reporter: the cigna and cvs mergers aim at competing head to head with unitedhealth which already owns a pharmacy benefit firm and integrates benefits. >>f this deal goes through, all three pbms will own a large health plan. they control 80% of the prescription volume in the u.s.

if you think about it, there's 300-ish health plans out there who will have to do business with someone they already mpete with. >> reporter: integrating health and pharmacy benefits can generate big sings by balancing subscription costs with overall health care. >> if i'm responsible for only your drug spending, i would want to make sure you spend as little as our diabetes medication possible. but if you don't, it could result in a costly hospitalization in the future, so maybe iou make sure have no co-pay on your medication. >> reporter: at a time when prescription drugs are under attack, the key is to make the consumers get savings. >> we'll have to keep a vigilant watch on competition in this market. just generating cost savings doesn't necessarily mean consumers ornefit. >> rr: when it comes to large employer plans, amazon's new health venture with jpmorgan and berkshire hathaway is one of

the driving forces for firms to prove that they can bring down costs. cigna's ceo says he's been in touch with members of that group and thinks the cigna/express scripts deal with help deliver consumers what they want. bertha coombs, "nightly business report," new york. kroger says profits for the full year will com in below wall street estimates. the company has poured a money into its online operations to compete with walmart and amazon but that investment is cutting into profits. today ieestors w not in a shopping mood. trouble in aisle 6. kroger shares fellag american outfitters offered customers discounts for a prolonged period of time. it hurt gross margins. the concern among analysts is that the retailer may need to rely on those discounts to keep shoppers coming back, they're oked on them.

that offsetmerican eagles' sales. shares fell to $18.63. burliopton storesd quarterly profits and issued an upbeat outlook. the ceo says its online operations continue to grow and that trends are improving at its brick a mortar locations. investors seem to like the news, up ing burlington shares nearly 6% to $122.86. investorsad their first chance to react to tran higher than expected revenue wasn't enoug for investors. but the company d sell the "l.a. times" to a billionaire.e e brands which owns victoria's secret posted a double digit rise in same store sales. it authorized a $250 million stock buyback.

shares fell 5% to$41.62. mortgage rates now at a four-year high according to freddie mac. the benchmark30-year fixed mortgage averaged 4.46%. maybe it's all those tv shows, bouse flipping is growing in popularity. that's kind of curious because the returns are actually shrinking. diana olick tells us what's going on in that market. >> all the doors and windows were replaced. front porch, our front stoop, rehabbed. landscaping enhanced. and back patio and deck. >> reporte taylor has been flipping homes since he was 17. at 25, you could say he's a veteran. so you basically gutted the hoe inside. yes. >> reporter: he bought this home in silver spring, maryland inse ptember, renovated it, and put it on the market last month. it sold in two weeks.

>> you have to be able to get in for a low enough price. it has to be a hot enough neighborhood. and you have to know exactly what the build is goi to tail. >> reporter: he's a real estate agent and a builder with a stack of contractors, so he can cut issts on all sides of the deal. he says net return is about $100,000 per home, far more thao day's average flipper. gross flipping profits, that's withouthe renovation costs, 0 me in at just over $68, last year nationwide, according to adam data solutions. th i's the highest 18 years when they began tracking it. the dollar profit is higherbu the percentage return for investors dropped a little, because the housing market is is getting so expensive. still, the n of flippers in 2017 jumped to a ten-year high. and the share oflippers using mortgages rose to a nine-year high. the risk is rising. home prices are soaring and there's a critical shortage of homes for sale.

that makes it harder to find tho perfectrty to profit on. >> investors will come hungry for deals, their margins will get tighter. at some point it doesn't make sense to take the financial risk of a flip. >> reporter: that point is not here yet. but already higher competition is translating into lower returns. for "nightly business report," i'm o diack in silver spring, maryland. >> and to read more about the state of housedflipping, h to nbr.com. coming up, leveling the playing field for wf en on and ofthe court.

here's a look at what to watch for tomorrow. thmployment report for february will be released. it's expected the 250,000 nonfarm payrolls were added last month.eu former pharmcal ceo martin shkreli is scheduled to be sentenced. a nu er of fed officials are scheduled to speak on the economy including charles evans. that's what to watchor on friday. convenievenus and serena wi are forces to bed recko with, of course. on this international women's day, they're leading the charge to close the gender gap in the workplace. contessa brewer talked to them about what they're doing onnd off the court. >> reporter: they've been vollly ing for the top spot in tennis for decades. serena ranks 51 on forbes top

100 athletes. >> there's a lot more happening, a lot more that needs to happen. in tennis we have equal pay, but around the world there are still discrepancies. >> in tennis we're lucky that most are equal pay, but then there's off the courts, seeing some endorsement deals and other stuff. that should be more equal. and so there's a long way to go. but i just feel like we're gettin there, and, you know, like venus said, we need the other females supporting it and we need men advocating for it as well. >> reporter: the sisters faced off for practice in madison square garden for a knockatt hat pits eight top players against each other. the practice is important for serena, who gave birth to daughter ales in september, and it's given her a new perspective on parental iave. >> hear some of my friends say, yeah, i got four wee off,

i couldn't have gone back to work in any job in four weeks. >> reporter: as she heads to dian wells tennis tournament this week, serena is juggling her career and family responsibilities, mindfulf the struggles of other women. >> we have to remember, we're fighting for the bigger picture. we might not get it today but we want the future to be better for maybe my daughter or her daughter. that's what we really are fighting for. >> reporter: both sisters say having a support system, people who believe in themnd their value, has been key to their success. for "nightly business report," contessa brewer. mcdonald's is marking international women's day by turning its iconic logo upside down. the golden arches will be flipped to look like a "w" on its social media channels and even some of its packaging. more than 62% of mcdonald's employees are women. >> that's prett cool. before we go, another look at the day on wall street.

the dow added93 points to 24,895. nasdaq up 31. and the s&p 500 added 12. and that will do it for us tonit on "nightly business report." i'm sue herera. thanks for watching. we would like to remind you that this is the time of year your public television station seeks your support. >> and we're grateful for that support. i'm tyler mathgaen. thanks and have a great evening, everybody. we'll see you back here tomorrow.

>> this is "bbc world news america." hi funding ofpresentation is made possible by the freeman foundation, and kovler foundation, pursuing solutions for america's neglected need >> planning a vacation escape thd is relaxing, inviting, 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 warmsunny days, cooling trade winds, and the crystal blue caribbean sea.