report" with bill grifffeth and sue herera. >> the tips get tips. se semi conduct oars stocks fall hard as they regular whether the markets can make new highs. >> losing shares, pg&e had to lower prices as struggles to address to rising competition. >> alpha mayo says too much testosterone was playing the industry. that and much more "nightly busiss report" for thursday handicap 19. >> we bid you a due this evening. ami conductor stocks pulled the stocks lower that in turn was big dragon the broader

started after asian chip makerp dinted revenue forecast. now because taiwan s1e78ye is big tobacco supplier, smart phone sales. if that isn't enough, facebook was designing own chip and drop back on reveiw ance. rough day, in fact, intel was big drag. she joins us to talk about this. i know you own many of these dympanies but we alrknew, kim, about the slow down in personal computer sales. there is a bigia re and smart phone sales now. now we hear about companies wanting to design their own chips. what's going ? >> well, it is a time of change, and that is a time ofy. opportun but i think that a lot of the companies that wanted to design their own chips, i think that

people, the investors don't understand they are knots necessarily gng to make their own chips. which means run the fabrication if apple were to make its own chips, they would have had to have the shuffles g in theund around and building the fabrication plant. so they'll likely use taiwan tem i orconductoven intel that does third party chip building. they'll have tose the services to get their chips made. so i think we are throwing the baby out with th bath water today. >> you've in the past slightly over weight position in technology. did today's news iluence you one way or another? >> no, not really. we are looking tee to five years in the future. and what we think is there is going to be more semind tors needed and used in twi to five years than today. iven by many uses, including,

you know, phones. but i think there will be new devices. but i think things like cars are going to take a whole lot more semi conductors than we can even imagine right now. >> now i was looking at charts today, and i saw that intel and taiwan semi are both just coming off all-time highs set earlier this year. i know you are val investor 6789 are they too expensive f you now or are you still like them? >> we don't look at taiwan semi evaluation basis. i think you have to make the call everyth single day w or not you are going to buyin tell. but looking again three to five years from now, we see that demand is going to be higher. so would take a look at that if we needed to put money to work. >> and do you stillind money in this market specifically technology? >> there are overlooke pockets of technology. i think the focus has been on fang and mostly the media

aspect of technology. and we have not been looking there, for many reasons. so we have been looking really to the suppliers. and c you know thep stocks. because all of the technology that you are fond off and even stuff thatou don't know that they are in venting right now that you are going to be fond of it's delivered on chips. >> very good. kim always good to see you. thank >> thank you. >> kim forest with capital joining us tonight. >> and pg&e also had a rough day. lost market share as competition intensified. only keep a lid on sales, also pressured the stock which fell more than 3% making it the worst performing stock on the dow today. >> it's still the world's biggest products maker but proctor and gamble maker of conic bounds like tied, gillette is not immune to a changing marketplace. net sales were up. but p and g dropped prices by 2%

in the first quarter. ceo david tailor acknowledging the changes are needed have large businesses in several difficult markets. e echo systems in which we operate around the world are being disrupted and transformed. >> i think p and g like a lot of big companies are finding consumers are ls loyal i a post mobile phone, post amazon world. it's not that they likehe brand less, it's just that they have more options. >> amazon is making lower priced household staples a staple of consumer shopping patterns. also discount retaile likaldy are helping keep prices down at super markets. hoping to find growth, p and g also announced it plans to acquire merck business at a cost of more than $4billion. margins on merck vitamins are good but total sales amount to roughly a billion ondollars.

and analystsde w just how much impact it would have on pg. a company that does $66 billion in sales each year. minimumgoing to have a effect. it's a smart direction for them to go. we know they've had some success and ce to have success in otc with wiks and se of the other brands. like they are going in that direction. no, i don't think it's very material. >> p and g guidance is unchanged th sales growth expected at r.o to three% in y and expectations it may fall in the low end of that range. bill >> so there you have it is. semi conductors a consumer stapled pulled it lower. at one point dow down almost 200 points but deputy atrney general rod rosenstein told president trump he was not a part ony special investigation. so close was down.

and nasdaq up by 57. s&p loss 15. stock market has been stuck in a for three months now and traders are wondering wa what's it going to take to return to the highs. taking a look for us tonight. >> stocks looked steam as raising rates started to take ld. investors focused on easternings. and earlier this week the markets wafshted to put higher. s&p up. now they are wondering whether th can break the old record highs in january. >> only 2% of record highs in themall capussell 2,000. and 6% away in the but most traders are doubtful we can get there because they hear the great rally killer federal reserve. nobody thinks recession is iminconsistent but fed rate hikes ahead of us. rates rising again. the market is interpreting this to mean there could be four rate hikes instead of 3 in 2018. but we he earnings and

fantastic. majority of companies beating much mor than pecksed. other issues at play. markets for the moment seem over bought. geopolitics could return. and remember we are entering a seasonally weak time of the year. g globwth seems to be more difficult. european earnings are expected in weak, measly 2%, that's the strong euro, that's a problem. bulls can only pray that the earnings keep getting better and better into the second, third, and even the fourth quarters. for "nightly business report" i'm bob pisani at the new york stock engs change. >> rising tensions between u.s. and china risk under ming the progress that's been made. >> what i'm concerned about is that this beed deb in a multi lateral setting with everybody in alved. becausthe end of the day, you know, enterprise, companiess profhey all provide basis, they know no boundaries, organize a supply chain

complete multilateral basis. so all countries have to be tea table to address those issues. >> added unilateral tariffs are not particularly effective. so with globalkirowth l solid pretty much around the world, where are some policeson you shouldder putting your money to work? joins us now to discuss many so of his ideas. 's director of investment strategies at arrow investment advisers. joe, good to see you. welcome. >> thanks for having me. >> so you fee increasing value overseas even though our earnings are coming in pretty darn good, and the economy seems to be firing on all cylinders. >> yeah. well, look three factors why. look at last year, u.sity market up 24% and you had 31 markets, country markets that out performed the equity markets. so there has been a movement overseas. and we see three reasons w that is. you see the dollar on decline. you see inflation on the rise.

and you see the spreads between u.s. he can tee and com dity markets all-time low that we haven't seen since the daum bubble and that all is recipe for whate could very well in favor for companies that have exposure overseas. >> so y have some etfs here that invest overseas that you want to tel us about. i can't remember the last time somebody recommended finland. but you have an etf that invests in finland. why there? >> well, you knowse have w of getting exposure to international markets. we think first and foremost that investors should be thinking about things not correlated to the u.s. equity markets. so a lot of exposure to broad markets. het we like getting exposure down at granular level at the country level. finland was very strong last year and finland is continuing at strength going into this year. the same could be set for itqat. as down dramatically last

year for a while. >> let's go to you next which is the going eni'm frontier. frontier obviously indicating pt is mayhaps some of the smaller markets around the world. why do you >>like? well, we like frontier markets because first of all it's a package sotion. so y are right finland trying to buy an individual country, you have to understand how to do that. and with a package solution like this, it's going to give you those countries in a balanced portfolio. and there is fr countries that are inside the frontier markets today. and, again that's just another way for investors to play getting exposure to something th would be maybe very difficult to do on individual basis over all. >> absolutelyth ks, joe, appreciate it. joe with arrow investment advisers >> meantime, main street is also paying close attention to how the tre tit for tat plays out. kate rogers rortsds on small business owners who feel caught

in the t economic super powers. >> for alice read potential tariffs on exported goods to china could be make or break for his business. off the grid green growers in lincoln nebraska has been in her family more than 100 years. growing corn and soybeans. retal tore yes chinese tariffs have her o an edge when she says the ag is already suffering. >> we are pretty afraid of hearing about these tariffs. >>ei said she supported hillary clinton. concerned what trump policies might mean forre main . >> we are small business. weor stand american ways. and we sure hope that he would help out the small guy instead of harming us. were hurting down here. the nebraska economy is dependent upon farms. that's our business we hope he can help us.

>> others say possible trade wars is making it more difficult. properties invests in small businesses and in town. he says potential steel and aluminum tariffs t have ledo price increases from vendors. >> right now as there is greateh uncertainty i market, it's difficult for me to plan and take initiativ and risk in doing future projects. we are watching every penny. >> that being said duff says he supports the president's decision to try to l el the playing field with trading partners.nt and as indepenoter decided to support the president in the 2016. >> i'm appreative for the trump administration taking ac and steps tore making this trade imbalance more fair. even set back for my companies and my business, ihe think long-term approach is smart that we have thisrs conion now. >> advocacy groups have beenua eqy divided on the issue. conservative federation ofnd indet business says

tariffs don't have big pressure on leadership. and polls in latest survey. meanwhile, the nonpartisan and entrepreneur council has been more critica in fact the council just testified before congress urging for freerade and strengthening not under mining of nafta. for "nightly business report" i'm kate rogers. >> speaking of nafta, nafta negotiators were back in washington today working on deal in principal they hope can be nalized. the talks have been described by trade minister as entering intensive phase. >> rules of origin are initial confcts. it's important to use this as a prochat certainly enhances north americancompetitiveness, that is good for our steel industry, that ultimately,

though, it does have to be something that works. >> some of the sticking points that remain are tver automotive and ag sectors. >> time to take a look at some n today's upgrades and d grades. we begin with walmart. rating was raised to buy from hold research. analyst there says improving job market should help low and middle income shoppers to spend more. raised to $100. stock rows to $87.89 and fringe up rating to neutral. the analyst says that merger talks with t mobile could support the stock near term and lower the downside risk. price target $6.25. the stock drifted lower today to $5.96. >> still ahead, fewer opioids prescrtion are being filled, but there could be some unintended consequences.

>> there are reports tonight th regulators areg plann fine wells fargo about $1 million. according to the "washington post" the fine could be announced as as soon as as tomorrow. one of the aggref ive fines the trump administration. >> airline regulators are ordered ultrasonic inspections on the fan blades, jet engines on the southwest air flight that made the news this week. the faa said it will issue a directive in the next two weeks requiring certain fan blades to be reviewed when they reach a certain number of take offic and landings. southwest for its own part hasl saidhose blades will be reviewed within the next 30 days or so. >> americans are filling fewer

prescriptions from opioids. but the crisis far from over. here with the details. >> reporter: pain killers like oxyctin have played a major role. and increasingly call for changes in how they are prescribed. according to a new report tho measures appear to be working. he volume of prescribed opioi ns the u.s. peaked in 2011, about 72 pills per american adult up from 22 pills in 1992. new data today from the institute industry researcher show that the decline accelerated last year reaching average of 52 pills per adult ns this country. >> this is significant drop. we think it's important to see that and to recognize that some of the programs, in fact many om the pro been put into place in the last year or two seem to be having an impact. >> insurancers to restrict go to

even days and monitoring more closely. they also lifted hurdles for opioid addiction. and those have been on the rise. >>hat we are reporting is almost doubling in the number of new patients starts using one of these medication assisted thermies. going f about 42,000 patients a month at the beginning of 2015, up to 80,000 a month at the end of 2017. so a quite rapid increase in the use of those medication assisted therapies. >> unfortunately, though, prescription pain killers are not the only source of the problem. and both heroin and strongersy hetic opioids like fentanylve has or takenrescription drugs as biggest cause. of overdose frs all forms opioids were increasing through the end of 2016. and reduction in availability of prescription opioids may have

had complicated effects cording to public health researchers. >> generally good news that prescription opioid vs. declined. it's been 15e7d there has been over use. i guess unanswered request you might say whether some of the policiesut in place led to other unintendedwhffects. her there has been a transition to her win and other forms of opioids because of the reduction in prescription opioids. nd i think that is it an unanswered question and something people are looking at. that i think is the concern. >> so still a lot of work to done. for "nightly business report" terrell. >> shares of fill immorse get smarkd. that's where tonight we get the focus. slower than expgted pace on drop volume.rette also admitted new smoke less tobaccon' products h resonate wd partners. did increase full years earnings forecast but that was a result

of new tax changes. d saw the tach worse in a decade falngo 85.64. botox is no longerri consi a bid. they had confirmed they were interested in a b merger revised course sighting opposition from shareholders. shyer which focuses on rare disaster treatments had already turned down mor than $60 billion take over offer japan pharmaceuticals. al began fell to $158.59 meanwhile shares of shier was off 1% to $1.74 and earning fell at blackstone, but the private equity firm topped expectations. company also delivered revenue beat. blackstone said it was adding $1 billion to share buyback progr and plans to pay 30 sent special dividend this year. blackstone shares climbed by 1% to $32.12.

sue. >> bill, late tay mattel announced ceo is leaving the toy maker to pursue other opportunities. but her departure after a more than a year. she will be replaced by executive chairman. sharesere off 3% to $13.45. after the bell, trading platform an e trade reported earn iengs that topped companies results were helped by increase in market volatility. shares initially lower in extended session and ended up about 1% to $58.83. after the bell sketchers reported profits and sales, but the sneakers outlook for the current kaurt quarter disappointed. they sent shocks down. the stock finished regular day down a fact frun to $32.08. >> coming up ting the lead the most valuable artificial intelligence start up i the world is not in silicon valley but in china.

>> art firm intelligence widely considered bo be the next thing. but the world's mostaluable in the start-up in this field is not in silicon valley,nstead halfway across the globe. reporting tonight from beijing. >> you may not have heard of sense time, but the ce of the hong kong start youp has a message from silicon valley. the face of the world leader in artificial intelligence may be changing. >> i think china really has advantage. >> backed bial a baba and

qualcomm led by lee shoe is most the valuable ai start-up in the world. the government is encouraging different sectors and maybe different industries to using those kind of new technology. and this is very important for maybe for us for start-ups. >> the chinese government wants to be a leader in ai pledging to turn it into a $150 billion dustry by 2030. so face has id should make life much easier all those companies embracing facialon recognitechnology. >> privacy issues has risen to the forefroent in the u.s. not so in china says veteranor inve >> i think chinese users at this point in time are more willing to trade privacy for convenience. lso that i think w help the companies buildup more ai applications. >> he believes eventually people willecome more comfortable having their movements tracked.

but until then the privacy deba may hold back u.s. tech companies from competing. >> currently i think it will. hit maybe it takes time. i the u.s. or even the world can see that it is not hard to use thatind of technology. >> for "nightly business report" in beijing. >> the hedge fund industry has largely under performed the broader market during this current bull run and any number of reasons why. from a lack of market volatility to path of investing. but now researchers may have found anoth reason why. brace uryoself. lesscy picker has our story from orlando. >> reporter: hedge funds an industry sym nom must with alpha, that's what they thrive for is alpha, or out performance. but also an industry spearheaded by stereotypet strai out of casting alpha males. new study asks do alpha males or

those are higher testosterone levels deliver better returns. researchonducted here at the university of florida found that hedge fund managers with higher testosterone outfo p by 5.8% each year on average. researcher yen lou used hedge fund managers as an approximatey for tet levels. studied o images over 3,000 all male. iae used this square tool to measure the facl ratio to determine their testosterone levels. lou's reports sites other studies showing the ratio as a reliable cue to masculine behaviors. also found high tad levels me it more likely the fdould close. >> we found the high level of testosterone can f human beings can bring aggression,

fear less ness and risk taking. leadhese features can also to unethical behavior. >> reporter: other studies have found testoerone has been beneficial in certain jobs. namely, for ceo and high frequency traders. but for better returns in the hedge fund world, lou advises to avoid alpha male managers. for "nightly business report" in orlando. >> that does it for us.ra i'm sue he thanks for joining us. >> i'm bill grifffeth. have a great evening. see you tomorrow.

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