. s s "nightly business report" with sue herera and bill griffin. bumpy ride. earnings are strong. profit margins are a record so why isn't that enough to impress investors? big year? boeing powers ahead and says earnings for the rest of 2018 y ll be even better than t are now. the magic number. how much money will you needo cover health care expenses in retirement? those stories and much more tonight on "nightly business report" for this wednesday, april 25th. good evening, everybody, and the dow snapped its five-day losing streak but not all that convincingly. despite earnings, stocks were all over the place as markets around the globe watched the u.s. bond market where the yield on the ten-year treasury kreepd

even higher lifting the dollar. the dow jones at 24,983 and the nasdaq fell 3 and the s&p 500 added 4. the market moves of the past few days are leading t investors wonder if last quarter was the top for both companies and stocks. mike santoli takes a look at what might lia head. >> reporter: big companies are reporting powerfully strong growth and record profit margins thanks to corporate tax cuts and growth. investors have been unusually hard to impress selling off thei stocks d the stellar results. companies from gol man sax to alphabet to caterpillar surpas surpassed by a wide margin but wall street picked them apart. it seems that a steady climb in interest rates and fresh signs ofnflation are raising concerns that economic momentum and corporate profit have peeked. while there are few indications that earnings or the u.s. onomy is close to a down turn, the strong and effortless surge

in stocks in thehi election past january clearly priced in a lot of the good news on growth, profit and taxes that are now flowing through to corporate bottom line. consensus estimates sti call for double digit earnings growth through the rest of 2018 perhaps som pressure coming from higher wage and commodity costs. investor are simpl struggling with exactly how to value those earnings as the fed raises rates and borrowing costs climb. the move in ten year treasury yields above 3% hasus f investors on a transition underway from a period of high growth and very l rates to perhaps moderate growth and somewhat higher rates. all of this helps explain why the s&p 500 has been way down ring the three-month trading range trading at levelsseirst around thanksgiving before it drove the indexes on a steep angle higher. most economic expansions and bullarkets do last a good while beyond the moment of maximum optimism so stocks canc rtainly recover to new highs as the economy chugs along and

companies reap the benefits. the ride might simply be bumpier along the way. foror "nightly business r" i'm mike santoli. peter butbar joins us to talk about the markets and what sees ahead. he's at bleakly advisory group. >> thanks. >> your premise is pretty simple. thetock market was rising over the last decade as the fed lowered interest rates and kept them at record lows. now that the fed is raising rates,rell bets off, is that right? >> qe also. qe w meant to encourage risk taking but that really was reflecting risk taking in the herkets, certainly not in the economy becauserowth in the economy never really exceeded 2%. so qntitative tightening you can argue, okay, that will reduce the appetite for taking risks along with the rise in short-term interest rates for the fed funds rate. >> a lot of investors are looking at equities and wonding how to value them in an environment that seems to be chging with the fed tightening

up and we also have inflation creepingin. so how do you look at the stock market and putaluations in what's a more dynamic >>vironment than we've had in years. t's a great question. i define the pull back we've seen so far year to date as being a pe multiple rethink in that we've got to these -- at the janry 27th peak the market was trading almost 20es t forward earnings. what the rising interest rates led to was, okay, maybe i don't want to pay 20 times or maybe it was 18 times, i only want to pay 16 times. with no change in earnings just the change in a mtiple was a 300 point decline in the s&p 500 just on a multiple rethink. ultiple rightight is always difficult but the market said, well, i don't know what the right number should beg but it'sng to be less than what it was. >> so going to mike santols point, is this as good as it gets then at this point or are there oortunities that you see in the market that are -- become

evident as theraed raises s? >> well, unfortunately the opportunities usually come after things fall because that's what creates value. one thing that -- >> it's annoying that's the way it happens but that's t way it happens. >> one thing that qe and low interest rates did is it inflated assets of lot of different things so the median price to earnings ratio i0the s&p ot above where it was in 2000 because 2000 was just tech. now everything got expensive. so it's a tough question to an er. i think commodities are still well below their highs. gold and silver are still well ut there ir highs aren't that many things to find. but pull backs are good for people that hav long-term time horizons because it gives them an opportunity to b things cheaper than what they were. >> peter with the bleakly advisory group. thanks so much for joining us. >> thank you. >> appreciate it. well, the day was boo ended by earnings from companies that are worth nearly a trilliondo ars combined. boeing was out this morning. visa and facebook after the closing bell. so let's start with dow coonent visa which saw its

profit rise sharply as more people made payments using i network. visa topped earnings and revenue expectations and issued a positive that lifted the stocks in after hours trading and it might set the tone for tomorrow. then there's facebook which higher quarterly profit and revenue. in the mobileowth ad business and an increase in month bely active users. that sent the stock higher initially in after hours trading. julia boorstin has more on facebook's quarter. >> reporter: the bottom line from facebook's the negative attention about coivacy concerns has not hurt the any's ad business which is growing far faster than projected. while the social giant's monthly and daily active users grew right in line with expectations, both up about 13%, i revenue and earnings soared past analyst expectations. average revenue per user is a key measure grew faster than expected to $5.53 per each of facebook's mthly active users.

that's 18 cents more than projections. against the back drop of growing scrutiny about facebook's data practices, mceok zuckerberg saying, quote, we are taking a broader view of our responsibility a investing to make sure our services are used for good but we also need to keep building new tools to help people trconnect,gthen our communities and bring the world closer together. for "nightly business report," i'm julian boors in los angeles. boeing easily topped analyst earnings in revenue expectations. strong demand for commercial mts prompted the world's biggest planeer to issue an upbeat forecast for profit and cashflow. they downplayed rising concerns for material costs. it was viewed as one of the big potential losers as the president's tariff on aluminum. that wasn't an iue today because the shares rose 4% making boeing the best performing stock in ow index. joining us now to talk a little bit more about that report is chris higgins, airline analyst with morningstar.

chris, good to see you. so a very solid report certainly for boeing. was there anythg in this report that kind of raised your eyebrows or was unexpected? >> well, the eps beat, they beat by about $1 which is a huge beat. there was some timing issues in there, lower taxes, lower than what we expected. lower research and development airplanes.ial there was also some defense programs coming through so there was some timing, but they did raise their guidance by 50 cents us we do think there's some tangible realess improvements at boeing going on here. also, operating cash flow came in really strong, $3.1 billion versus $2 billion last year. and really focused on cash flow at boeing. that's been really strong and they continue to impress with their cash flow. >> the market is largely viewed boeing as vulnerable if there is a trade war with china, that there could be retaliation. first of all, do you buy that? and then quickly, ifhat's the case, do you worry about its future in the stock >>market? yeah, we're not -- i don't

think we're as concerned as conventional wisdom out there in the market is on whe trade with china. china rolled out some proposa in terms of tariffs and the way they structured the tariffs on aircraft, it purposefully excluded some of the most best selling boeing airplanes into china so that 737 max 8, it was excluded because of the weight restrictions there that china putout. so we think at the end of the day there's going to be kind of a negotiated settlement between the u.s. and china, particularly when it comes to commercial aircraft. ly, china doesn't have any other sources other than boeing. airbus is at capacity and they're a narrow body aircraft. >> thank you. chris higgins with morningstar. bill? boeing's ceo does not appear to be phased by the president's tariffs on imported steel and b aluminum the tariffs are creating a lot of uncertainty in the aluminum market itself and that's leading to stockpiling of the metal. kayla tausche reports tonight

from outside new orleans. >> reporter: half a million tons of aluminum piled. that's what you see above the banks of the mississippi river. footll fields of metal have been building slowly for two years, surging in 2018 as imrters rushed to get foreign aluminum on shore before the white house put tarif in effect. >> 10% tariff on foreign aluminum. when the product comes across our borders. >> reporter: that's caused a uncertaintut where companies could get aluminum and at what price. compounded by the ohreat sanctions on rousel, a major russian producer. the surarge has soared so companies holding the metal here are poised to profit. take castletonit comms, a trading firm based in coilecticut. it'sd what was a relative empty field in 2016. that same space outside n orleans nolds an estimated

450,000 tons. and there's more around the country.ha warehouses sprung up near major ports with 200,000 tons in baltimore a30,000 in charleston. but the biggest is in the big easy. >> it's the river. the river. we have, you know, the largest tver in north america. we arehe petrochemical corridor for the nation. >> reporter: amos cormier is the leader of one town housing a stockpile. he hopes this brings better t js on surge in port activity dies down. >> in my opinion those would be better jobs to have than just, you know stevadores or the offloading of coils or aluminum. >> reporter: we tried to get more detail on the shipments but the compani importing and storing the metal wouldn't coent nor would the ports processing the transactions. at castleton, a sign warned oft u.s. c violations if the bars and beams there were moved. we were turned away aft driving in and asking for the manager.

>> our intel suggests that that ockpile, most of it was soldee last to several traders. it basically is just exchanging hands. >> reporter: jorge vasquez tracks the industry. he says despite the recent fluctuations the market dynamic won't change any time soon. >> they will continue to stockpile simply because the u.s. pays better than anyone else right nown the face of the earth. >> reporter: the barriers to entry putp by the trump administration bringing big traders.r a few savvy for "nightly business report," i'm kayla tausche, louisiana. general electric outlet was revised by moody's to negative. they could downgrade the stock in the not so distant future. that sent shares 4% lower losses overs steep the past year. the revised outlook comes as investors atten the company's

annual shareholder meeting and a lot of ge retirees are not ppy. morgan brennan is in imperial, pennsylvania. >> reporter: for the first timee gel electric ceo and chairman john flannery faced shareholders, many of them retirees, at the coany's annual meeting. >> we're keenly aware of the pain that our performance has caused and the dividend cut has caus withinvestors, with retirees, with families. we know how much you rely on this, and these were decisions taken really with extre deliberation. >> reporter: flannery who took the helm last summer said he's focuse making the sglingmu bo simpler and stronger adding that changes are underway at every level of the company. one example the board which was remade shrinking from 18 directncs to 12 iding several new additions. for the event, several hundred shareholders protesting before

going in showed up making the trek to a ge facility o the outskirts of pittsburgh. many are retirees lik sues soon straws who worked as a machinist tr the company foree decades and came to hear more from the ceo about a turn around. >> we're all very concerned security. we depend on our pensions and we depend on the dividends and they reduced the dividends by half and yet they encouraged us to buy their stock when we were employee because theyatched it 50%. >> reporter: and have you sold any of your stock or are you hanging on it? >> i want to sell the stock. i should have sold l it ag time ago but to sell it now, i would take an enormous loss. >> reporter: ge stock has lost half o o its valuer the past year and so, too, has the dividend after a cas crunch caused the company to make a cut. that's been essentially on the blue chips retail investors which make up more than 40% of ge shareholderbase. >> these are the prime shareholders that you see here.

the ones that spent their whole life working in the shop, day by day making money forer g electric their whole life, 25, 30, 35, 40 years and those are the shareholders that really mean something and those are the shareholders that ge is hurting. >> reporter: for "nightly business report," i'm morgan ennan in imperial, pennsylvania. by the way, the new york stock exchange today suspended trading in amazon, alphabet and others. they said that aata glitch affected stocks with prices above $1,000 which tradey primart the nasdaq. the stocks did trade normally on other exchanges. >> it is time to take a look at some of today's upgrades and downgrades. we begin with one of those companies affected by the nyse data glitch. alphabet. its rating was raised buy from hold at stfl. they cite alphabet's serious approach to the seriousness and privacy of the consumers. price target is $1,230.

it rose to 1,22.99. it was raised from market u perform ter perform. the analyst cites the company's focus on direc to consumer. the price target is 100 and that's pretty much where the stock is trang now. it's at $101.15. still ahead, a maj beer cost concern for thoad saving or y in retirement. comcast has confirmed its $31 billion bid for european pay

tv operator skye. has prompted skye to drop its offer from rupert mourdock and fox. they said a comcast/skye get together makes sense. >> love our core businesses and anybody who's viewing this as some diversion from that is not reading us properly in my judgment. we didn't choose to put play or any other asset in play. that event happened around and the question is, do we take a look at it and engage. >> separately, comcast earnings and revenue were out this they topped estimates by the he super ympics and bowl. they rose by 2.5%. comcast is the parentompany of cnbc which produces this program. twittereported the second

profitable quarter and blew past analyst expectations, revue and monthly active users. shares were sent down more than 2%. at&t shares dropped after earnings miss and that is where we begin tonight's market focus. after the bell the telecom giant delivered weaker than expected profiten and r even as it added more customers during that period. shares initially fl in after hours but did finish the regular session up a fraction at $35.20. also out after the bell tonight, ebay said that a rise in active buyers helped sales rise but they failed to climb at the pace that anasts were expecting. earnings though were in line with esmates. shares initially fell in the extended hours session. they also ended the regular day down a fraction at nd7.90 a decline in costs and a smaller exposure to affordable care markets helped anthe top profit expectations.

the company also hiked its earnings guidance for the full year. shares rose by 6% to $238.84. an incase in shipments helped railroad operator norfolk southern's operation's revenues to rise. they said it is planning to launch $1.5 billion of share buy backs thisyear. the shares climbed 8% to .9$1 viacom topped wall street expectations as the said the strength in the international tv ivision and stronger performance at paramount pictures helped the results. ney reported a smaller t expected decline in ad spending. they showed that their turn around i picking up momentum and investors seemed to agree. shares finished up at $31.18. tupperware said softness in several foreign markets caused its sales to fall and miss estimates. earlier this month the storaget prodaker warned that its quarterly profits would be weaker, and they were, but

apparently not as bad as wall street had feared so shares finished up the day up 9% to $46.28. so, how much money will you need to cover health care expenses in retirement? well, whatever it is, a new report finds that nearly half of all workerso nothink they will have enough and, in fact, only one in five have actually crunched the numbers. our senior personal finance correspoent sharon epperson has done some digging. she joins us with that magic numb a. is the magic number or how much are you going to need? >> there is a magic number that people may be a little frightened by, and for a 65-year-old couple retiring this year, they'll need $280,000 to cover health care expenses in retirement. now this assumes that they're both already eligible for medicare and the good news isit only 2% higher than it was last year. medicare seeing premiums relatively flat. out of pocket prescription drugs relatively flat over the last year as well. >> that key number is 65 years

old. >> 65 years old. >> what if you retire earlier? a lot of people, you know, want --ant to travel and do things while they're younger. what if u retire earlier? >> that's interesting. that is what we assumed that earlier because they want to travel. many people are retiring earlier because of a health care issue. the median retirement ajahe cording to employee benefit research institute is 62 years old. whenir you're rg early if you're able to get health care coverage, you may still have to come uh an extra $500 a month in premiums. you may alsoave to dig into your personal savings if you haven't saved properly. these are all this that are a concern to people who are retiring before 65 because,f course, that's when medicare kicks in. >> how do you get the health insurance if youetire early? >> if you retire early the first thing you want d to is check to see if your employer has a benefit plan and the other is cobra froe vision. those last for 18 months. retire at 63 1/2, that exact

number. >> fay. >> thenourse also the affordable care act provides a for thosevision between 55 and 64. you'll want to look at the various options that you may ha with that, but talk to a financial advisor and accountant to see if you can y plan witr income to get some of those tax credits and subsidies to ler thatamount. that amount at full price could be $1,000 a month. a lotlf people f like they have to work longer because they haven't saved enough. what if you retire after age 65? >> well, tou have look at all the different medicare programs and make sure that you apply immediately for medicare part b. you want to make sure that you ge c that medicerage and you don't wait because you could be penalized if you wait to get that. the other thing is considering a medicare advantage plan. that will cover yourental and vision expenses. you mayant to look into that. mehdi gap, also important if you want to get some typege of coveor co-pays and deductibles. the most important thing for anyone if you're thinking of retiring now or retiring at 65, always look at what the options

are for you. look at that open enrollment. no one ever wants to loo at thterial, but it can change. >> but it can change. >> you can get a better deal, you never know. >> you've got me thinking, that's for sure. as always, thank you, sharon epperson. >> sure. coming up, china's car rrevolution. orter: as demand in china for u.s.-made cars and trucks continues to grow, so does the appetite of the united states for vehicles made here in china. auto show.ebeau at the beijing that story coming up on "nightly business report." ford reported a rise inof that was better than expected helped by better tax rates and cost-cuttingmeasures. they're facing rise in commodity costs and they're looking at the

recentme con shift for bigger vehicles. the stock rose in after hours traking. sg of which, electric cars and suv are getting a lot of attention at the beijing auto show. this year for the first time ever tesla is at thishow trying to take advantage of new opportunities in the world's largest automutile market, as phil lebeau reports now, there are also a number of challenges. >> reporter: with nearly 100 unveilings of new models, the about auto show is all who can getat the mtention, and by that measure, tesla is doing well. its models are a common sight around china, and last year most one out of every five teslas sold in the wor was in china. the government is encouraging citizens to buy anct ec car. many tesla buyers have gladly paid well over $100,000. >> translator: from the design, om thefunctions, from the user experience tesla is really

good. >> reporter: whileesla has created a growing and loyal following here in china, this is also where it faces more challenges, especially if the chinese auto industry becomes more competitive botnd here around the world. >> in the last two or three years there have been 23 new chines electric vehicle brands that have been innooduced. all of them are producing cars yet, but of thosehere wi probably be a handful that are true tesla competitors. >> reporter: more and m chinese automakers plan to eventually sell cars in the u.s. already the buick envision is imported from china as is the s-90 see dan from volvo whose ceos say americans havembraced chinese made models. >> it's a volvo and we guarante. it's ok if it comes from sweden, belgium, china, it's really of secondary interest. >> reporter: in the auto world what rolls on the roads in china is increasingly rolling on the streets of america. phil lebeau, "nightly business

report," beijing. >> and before we go, here's another look at t day on wall street. the dow gained 59 points. the nasdaq fell 3 and the s&p 0dded 4. and that will do it for "nightly business report" tonight. i'm sue herera. thanks for joining us. >> i'm bill griffin. i'm still calculating insurance numbers there. >>e a great evening, we'll h don't. see you tomorrow. >> actually, we should. yes, we should.

t s is "bbc world news america." >> funding of this presentation is made possible by the freeman foundation, kovler foundation, pursuingr solutions erica's neglected needs,fi and purepoinncial. >> how do we shape our tomorrow? it starts with a vision. we see its ideal form in our mind, and then we begin to chisel. we strip away everything that stands in the way to reveal new possibilies. at purepoint fin