this is "nightly business report," with bill griffith and sue here. snapback. stocks find their footing and rally higher, recouping much of yesterday's sharp losses. saad.ip amazon shares go on a ride as the president criticizes the company yet again. so if you aran investor, what should you do. and spot on. meet the two freshly minted billionaire founders of spotify. all that and more on the on "nightly business report" for this tuesday, april the 3rd. y we bid good evening, everybody. i'm bill griffith. sue has the even f. stocks bounced back on wall street today shaking off at least for now those concerns about a trade war. s technolores also stabilized. amazon was a o bita catalyst

with the broader market seemingly mirroring the retailer's every move. more on that in a bit. another focus today, the debut of music service spotify. this was airect to market offering meaning that insiders sold their own shares. this was not an traditional ipo where new shares are created for public consumption. so the 13%ain that you see was from what is known as a reference price set by thetork stock exchange, and that was at $132 a share. today'sni o price actually turned out to be the high of the day at 0.$165.9 another thing to keep an eye on late in the poy. ce responded to an active shooter situation at google's youtube hdquarters in san wuno, california. several injurieere reported. and a female suspect was reportedly killed. as for the markets, here are the final numbers for this y. tues the dow rose 389 points put you

go u back above 24,000. the nasdaq climbed by 71. and the&p added 32. while stocks did take a break from tiff and technology concerns, there is another issue on theoron for investors to keep on their raasr. bob pisani telts us now, we are entering a period known as the midterm slump. >> reporter: traders already concerned about trade wars and high-tech valuation are eyeing a seasonally unsettling phenomenon calledhe midterm presidential cycle slump. yikes. the two quarters we are nowri en heeding to the november midterm a electio the worst two quarters of the entire 16 quarter presidential cycle. since world war ii they are the only quarters that average successive declines. why is thi happening is this a fact neuro the current weakness we are seeing? it happens because of uncertainty. the first year of a president's

term the president is setting an agenda, passing legislation. once you get into the second year the administration gets more ctious because there is anxiety and uncertainty around the midterm elections. there is not a lot of good news to be built into share prices. here's the good ngws. the tra activity around the actual midterm elections in november are typically bullish. the almanac knows that it goes up 2.87% going back to but there is a long way between now and november and a lot ofty volati bob pisani at the new york stock exchange. the fear of a possible trade war that ruffled fetters in the trade market recently stems from uncertainty for companies that could be affected. there is als an economic impact. steve liesman has a looked at that. >> reporter: ask an economist what kind of an economic to

expect from the trade war potential. c quote, tcern of course is that it escalates into something worse and that concern is being reflected in equity valuations, which constitute a new set of initial financial conditionou that weigh on the forecast if they persist. so far the best forecast is that at current levels the new trade tariffs will have a modest impact on growth. but there is another who says quote we had a hard time pinning down a specific gdp number for the impact of tariffs on the economy. we don't reall have aense of how bad the policy developments can get. peter navarro says the market has it wrong it shouldocus on the positives in the economy from the pre's tax cuts and other policies and not worry about trade. >> the market is reacting in a way which does not comport with the strength, the unbelievable strength in president trump's ecomy. i mean, everything in this

economy is hitting on all cylinders because o president trump's economic policies. >> the trouble is that this is a chess game where the moves are unclear. if the administration imposes another i$60 billi chinese tariffs as it has threaten aed ina recipro kates is that the end or is there another round to economists say they can't gauge the economic impacts until they know the answer to that and other questions. so their best bet is think hardest about the chance that it gets worse from here, not for "nightly business report," i'm steve liesman. by the way, the wte house is expected this week to come out with that list of chinese products that i will be hitting with tariffs. high ch is certain to be on that list. josh lip ton tells us why tech has so much on the line and the fallout that might occur. >> reporter: u.s. trade chief robert lighthizer says the chinese aren't playing fair when it comes to american tech, that they pressure u.s. tech companies into forevering their

technology to chinese partners and flat out steal american it. that theft costs the u.s. economy between 225 and $600 billion annually. there are real world implications of this chinese theft. for example, in december u.s. chip maker micron fil a lawsuit in san francisco accusing united micro electronic of taiwan and a chinese start-up of conspiring to steal its technology. micron allege has the defendants recruited key personnel from micron's taiwan unit getting elem to der trade secrets, a bold scheme for the chinese company to avoid hun eds of millions of dollars in costs, and months of r and d sneefrt one of the most important parts of our entire economy is the ip protection. it ishe extreme competitive advantage to the united states. and it is the core of an enormous number of sectors that you tonight think of quite as high-tech. >> a tech will be theext

front in the administration's attempt to reboot the u.s.'s trading relationship with china. coming this week, tariffs on oice imports. now we still don't know which chinese imports the trump administration could target wit these tariffs exactly, but height lieserhe suggests products could include robotics, machinery, and information technology. economist mary willy says u.s.-based tech companies should be concerned. >> they should be worried because they depend heavi on global supply chains, particularly in communicaons and computers parts. those are some of the most heavilyfragmented production processes. a lot of their basic production is is located in china and mediated by foreign investment enterprises owned by the taiwan ease, japanese, south koreans. so they are very vulnerable. >> reporter: the tech industry

doesn' want to see tariffs on their goods because that could onlye increase costed, costs niey will pass along to consumers and com potentially impacting demand. there isty another possibi that these very tough tariffs on tech are proposed but never go into detective effect that they are a hard nosed bargaining tactic by the trump administration as it continues negotiating with beijing. for "nightly business report," i'm josh lip ton, san francisco. time to took at some of today'spgrades and downgrades. citi group upgraded shares of u.s. steele today from buy to neutral. the citi analyst saying that following a recent 25 pullback in the stock he sees good raul value and it creates an opportity for investors. the price target was raised to 46 from 43. it closed up more than 2%. the analyst says the stock's 20%

pullback over the past year represents a buying opportunity. the price target thai stays at $80. today's shares finished at $64.pt up 2%.ke capital cut its rating on game stop to hold from buy citing a lack of positive catalysts ahead for the positive me retailer. st week's poor earnings report led to several wall street firms turning bearis loophole cut its price target to $26. game stop rose 1.5% today to 13.01. and again ral ectric price target was cut to 13 from 15. the firm cited continued chalnges in its power division. they did keep the hold rating on stock. ge was up a penny today to

$13.13. the spring sales seasohas arted with a bang for automakers. ere far better than expected. once again it was driven foye america's growing appetite for pickups and crossover utility vehicles. phil lebeau has our sry tonight. >> reporter: forget those stories about american losing their desire to buy a new car or k. in march, sales were well above expectations. general motors posted double digit growth as did fiat chrysler. and ford exceeded estimates thanks to a big monthor its f-series pickups with the average price paid for each truck hitting almost 7,000 nearly a record high. fact is, demand for suvs and crossovers is not slowing down. jeep had its best month ever while sales of gm's crossover utility vehicles soared 41%. the strong numbers are d in part to an economy humming along with low unemployment and high

consumer confidence. those slightly richer ielentives alsod convince americans this is th this gave auto stock much-needed boost. but the one auto stock getting the most attention was tesla.ir its f quarter production numbers were mixed compared to expectations. with the company building fewer chdel 3s at the end of m than originally planned. still tesla expects production and delivero ramp up over the next three months and hit a level where the company is bringing in enough cash that it does not need to raise capital. that was welcome news for usvestors. andd shares of tesla higher. phil lebeau, "nightly business report," chicago. t> we told you last week of reportst current san francisco fed reid president john williams was the top candidate to lead new york fed. well, today that turned out to be the case. nthe york fed has named williams as its next president, replacing the retiring william dudley.

williams will sta mid-june. the new york fed president se ves ase chair of the policy making committee and supeises the banks considered one of the post powerful positions in the whole sector. >> up next the president takes swipes at amazon. it's not just him.th ides of the aisle are now swinging at the giant. with such a high-profile tussle going on, what should you doto with the? some thoughts when we come back. t

the presi continued his criticism of amazon this morning on twitter. thisime saying, and quote, i am right about amazon costist the unitees post office massive amounts of money for their delivery boy. amazon should pay these costs plus, and not have them borne b the american taxpayer. many billions of dollars. post office leaders don't hav a clue, or do they? and then he followed up later with this. >> the post office is losing billions of dollars, and the taxpayers are paying for thatse money bec it delivers packages for amazon at astery below and that's not fair to the united states. it's not share to our taxpayerss and a report came out. they said $1.47, i believe, or about that, for every time they deliver a package, the united t, states governm meaning the

post office, $1.47. amazon is going to have to pay pos more money to th office. no doubt about. >> here's a chart of today's trading. the shares moved both time the president commented on the stock but then the stock spiked late today on reports that saido thee are ongoing talks in the white house about amazon. in the end, shaeds e up 1.5% today. but is am actually geteang a great when it comes to shipping costs. morgan brennan did digging to learn more about the actual deal. >> amazon and the post office has a symbioticla onship. the uspa has lost money because of pension and healtcare costs but also because delivery revenues have been knows divingg

packe delivery has been su ing. parcel select, the last mile delivery service that amazon use is reviewed by a group of independent regulators called the postal regulatory commission to make sure e it makesnomic sense. over the years the commission has signed off on the rates being charged. here'shere it gets complicated. how do you determine what economic sense, especially when package volumes have surged an when profi from the mail business, custom is a monopoly has gone toward building out the broader transportation network. now factor in retirement costs ant is how citi analyst chris weherbee got to conclusion last year if costs were allocated a way a company would packages would cost $1.5 more to deliver. that's the crux of president trump's argument.

amazon's deal with the postal service is said to be up for year.otiation later this it's complicated. for "nightly business report" i am morgan brennan at the new york stockexchange. >> it's not just the president who is attacking amazon. o lawmaker both sides of the political spectrum have also raised concerns about whether the e-commerce giant has gained too much pricing power over its merchants. an mui has that part of the story from washington. >> reporter: the gloves came off in president trump'stle with amazon today. the president was meeting with baltic leaders at theus white when he was asked about the online retail giant. asruou are, did not hold back. >> the post office is losing billions of dollars, and the taxpayers aaying for that money because it delivers packages for amazon at a very bew cost. and that's not fair to the united states. it's not fair to our taxpayers. you look at some of these small towns who arev a beautiful main street, the stores are all gone of the that's a different problem that we are going to

have to talk about. f >> reporter:damentally the president is arguing that amazot is just big and too powerful and there are lawmakers from both parties who agree with blh. ican senator marco rubio recently tweeted new economy monopolies will require regulating. elizabeth warren and bernie sanders warned their flubs to be anticompetitive. and cory booker has asked the d.o.j. and the ftc to weigh in on what he called the rising c tide ofporate concentration. corporate monopolies are generally considered bad because any allow companies to overcharge for their products but amazon is getting slammed for lowering prices too much, something that consumers actually like. >> the violate anti-trust laws it's not just because you are big. u have to be anticompetitive, you have to be hurting consumers. nobody is making that case. >> reporter: cazon'stics say the company is using its pricing power to squeeze its

suppliers, vendors, and even its workers. but it's tough to prove that's anticompetitive and not just good business. our guest tonight says the iticism and attacks on amazon could continue to put pressure on the stock near term, joining us timothy lessco of janrity investment advisors. >> thanks for having me. >> we should point outtou are exactly a bull long term on this stock. you think it's expensive, yes? >> i think it is expensive from a valuation standpoint. certainly it's hard to argue with the fact that amazon provides a really good service, most people use them andou see on line shopping continue to grow. i wouldn't say i'm bearish on what amazon does as a buness. just t valuation of the stock doesn't make a whole lot of sense to us as value investors. >> how do youalue the attacks businesssiness and its model and its relationship with the post office?

are those fundamental head winds that invesrs should be concerned about do you think? >> i think with any company that's facing presse from the government or perceived pressure from the government, it's going to create weak shareholders, you knowossibly running for the hills. most people that own amazon n't own it for this quarter's earnings or next quarter's earnings, they own it for what they think amazon is going to do over the next two five, seven kind of years. and that's probably the time frame where any sort of government action would take to actually play itself out. there have been a number of different instances where mpanies have been under that kind of pressure. microsoft is probably the best example of which. it almost seems funny now that the government onceos sued mit for giving away web browsers. a guess usually is tha government will be behind what the real problem is but it c certainly wilate shareholder weakness and probably some stock weakness. >> but i guess it goes back to fundamentals then. if this has an impact on company

it will show up in their earnings. do you think that's going to happen. > i think it's hard to see. i think the$1.50 number that people have been throwing out if all of a sudden it another $1.50 to send out packages certainly you could see near term oredm term pressure on expected earnings. when a stock is tradi30 at times earnings it's hard to see what that does to the stock. you would have to see where the government pressure put any pressure on revenue which is where the valuaon problem comes into play. >> we shouldn't forget how usiness is he cloud to amazon. that's their fastest growing business right now, ght? >> right. that's the profitable side of the house as is the business where they are hosting selling thin on line for other companies. so it is very, very complex matter. but certainly any time the government is making bigat ents about a company, it's

going to cause some >> timothy lessco with granite investment advisors, again, thank you for joinin tonight. >> thanks for having me. general dynamics buys .cs and that is where we begin tonight's market focus. the defse contractor said it had reached a nearly $10 billion deal for the information technology provider. after comes only one week government contractor khaki international withdrew its own kpeting offer for csra. general dynamic rose shares a fraction. shares of csra finished up a tick at $41.23. >> cvs has reportedly submitted a formal bid to acquire viacom. an independent committee of the s board offered a bid that is below market value. that committee als wants its ceo and coo to run theombined company. sumner redstone owns a controlling interest in both companies.

he separated tm in 2005. his daughter sherry recently said she would like to see them come back together gwen. shares of website were up 4% to $52.86. shares of viacom fell nearly 4% to $29.42. >> and eye max growing its international foot print. the large screen cinema company said it has signed a deal with one of china's largest media firms for 30 new i max screens in that company. with the deal, they will freight 900 theaters in china. shares popped 8% on thatews to $21.30. >> after the bellloudera reported quarterly earnings and sales that topped street expectatiots. those resere overshadowed though by the company's disappointing revenue forecast. shares were punished in thes after-ho trading but finished the regular session up 5%. > also after the bell dave and

buster's reported stronger than expected earnings but delivered same store sales that missed the mark. and gaming and restaurant chain also gave weak revenue guidance for the full year. as you might imagine, shares initially fell in the after hours session. but ended the regular session up to $40.69 coming up the rise to riches story of spify's founders.

here's a look at what to wah for tomorrow ahead of the big jobs report on friday. adp releases its own report on the employment situation. alys highlywatched. we will get a fresh read on the housing market with the release of weekly mortgage applications. and a look at wheth facto orders are growing or slowing. that's what we'll be watching for on wednesday. now as we told you. ier, music streaming servi spotify made its debut on the new york stock exchange today. shares opened just below $144 putting the company's value at nearll $30 n. it means that spotify's two cofound remembersia now offy billionaires. robert frank looks at the founders' rise to fame and how they might spend their >> reporter: spotify cofounder

daniel acco says he didn't do it for the money but today's public debut of the music streaming service made him a multibillionaire and one of the ri iest peoplethe world under age 40. the 35-year-old swede owns 9% of the company direcy and more than twice that true his investment holding companies. his stake is now worth over $2.5 billion. his cofounder, martin lawrenceson is now worth more than $3 billion. don't expect any wild celebrations of wealth from either of them. x started his first tech company when he was 14 and made his first fortune when he was 23 years old after selling his onl ad companied a verti go. he bought a ferrari, partied hardy and went to nightcls b the wealth of all those gold diggers left him feeling depressed. he wrote, i had no idea how i wanted to live my life soeck moved to a cabin outside

the holm and came up with idea for spotify to revolutionize music. now he will join the roughly 60 billionaires in the world over the age of to 40. he continues his low key life-style,poftened with his two kids at the playground or taking them to school.r "nightly business report," i'm robert frank. and before wego, another quick look at the day on wall street. comeback day. e dow rose by 389 points, back above 24,000. the nasdaq climbed by 71. and t s&p add 32. that is the "nightly business report" for tonight i'm bill griffith. thank you for joining us, .verybody. ♪

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