. his is "nightly business report" with sue herera and bill griffin. oil breaks $70 and prices are near a four-year high. they could go potentially higher when the president makes his decision on the iran nuclear deal tomorrow. on you have to buy exactly the right stock or buy at exactly the rigme the one thing have you to avoid wrong stocksingl or the single wrong time. >> buffet loves stocks and there's one that he's particularly fond of. controlling costs. health care officials are controlling drug rebates but will it help lower prices. those stories and more tonight on "nightly business report" for this monday, may 7th. >> good evening, everyone and welcom stocks climbed to start the week with the help of a big rise inst

energy ks. but just as it appeared as if the bulls were in control, stocks got the wind knocked out of them. in a day when the president tweeted that he will announce his decisio on the iran nuclear deal tomorrow. that added geopolitical risk into the stock market. when all was said and done the dow jones industrial average rose 94 points to 24,357. it had been up as much as 200 points. the nasdaq added 55 and the s&p 500 was up 9. as for oil, domestic crude broke through $70 a brel to settle at its highest level since 2014. so how could the white house's decision on the iranmp dealt the oil market and the stock market? john killdust joins us. good o seeyou, john. >> good evening. >> we know we will get a decision tomorrow, but we don't know what that decision is going to be or whether it will be a full decision, partial decision. how -- handicap for us what you're expecting from the market. >> first of all, all i want to

say is thank goodness i wasn't looking forward to wait for this to come next saturday. the stakes are tremendously high. this is a market that's relatively tight in terms of overall global supplies partly induced by saudi arabia and what's going on in venezuela. if the president goes full throated on this, if he were to pull out of the deal, the jcp away, the iran nuclear deal and also announce an aggressive pact towards reimposing nctions, the oil price will be off to the races to the up side. >> becauses it c off iranian oil out of the world market again? ss>> our best g it will impact 300 to 500,000 barrels a day of producti production, maybe more. to the extent it lasted, gll, it wou down even more because they wouldn't be able to get the parts and necessaryha expertise iran needs to keep the oil going. >> all right. assuming that's what happens, what do u.s. producers do ough? they're still pumping. couldn't they make up the difference there? >> well, ty are pumping full out. i mean, we are pumping more oil

right now in this country than ever before. 10.6 million barrels a day second only to russia. saudi arabia is behind us, oil the opec is behind us. it's not enough. other problems and there'sll l holding back of oil to the global market by our friends, the saudis. >> what if the president says something along theines of we're not going to pull out but we are going to renegotiate? at's kind of a limbo. >> that's what i think is going to happen. the lly, i do thi president's going to announce a withdrawal by the u.s. from the oragreement, at least now. but i don't think he's going to try to mess up things forbe ira nd that or the other countries involved. the last time we did this the reason the iran deal came together, there was unified world opposition to th program. they are complying with the deal and the rest of the world stands ofinst us this time in ter trying to throw a monkey wrench into this deal. president trump puss hard to begin with and seems to have a pattern of sort of falling back or worng something t.

i think that's what we'll see ultimately tomorrow and that's why actually oil prices fell. >> late in the day. >> back under $70 a barrel. >> still, though, i don'tnvy oil traders trying to handicap this tonight. >> no. this is what iffall a c trade though. it's either going to go one way orn the other ia big way. >> john, thank you very much. elsewhere, stocks have been anything but predictable for the past few months. the market asou know has rallied and it's fallen back, rallied again. as mikeanli reports for us tonight, it may be time for the bulls to prove whether they are still in charge. >> reporter: it has been 60 trading daysince stocks h their low point of the year in early february, a loss of more than 11% from the january peak. the s&p 500 remains nearly 7% underwater. the typical pull back through history has taken fewer than 50 days to be fully recovered. this extended period of choppy trading has created sometr frion among investors and

it's gone on long enough that new worries are cropping up as explanations for the weakness. then trade tensions and then a slowdown in global growth and rising oil prices. if there are good rea to view this three month retrenchment in stock as an uncomfortable correction rather thanhe start of a deeper market downturn. for one thing, stocks final surgeo the january peak up 7% in just foureeks made the market so stretched and overheated that the pay back phase is understandably taking longer. also encouraging, fewfigns o serious underlying economic problems have surfaced in months. companies reporting 20% profit growth compared to a year ago and forecasts for the next few quarters are doing fine. and, finally, despite the nervous sideways pattern of recent months of stocks, the

index'songer term up trend remains intact. none of this means the market is in the cle and set to recover the lost ground in a hurry. geo politics, political drama, typical summer volatility and the mid-term elections will remain in the news and on the minds of invesrs but s far the prolonged pull back of 2018 that has slowedn the bull market does not seem to represent its end. for "nightly business report," i'm mike santoli. tens ofhousands of berkshire hathaway shareholders were in omaha over thend wee for the company's annual meeting. affectionately known as the woodstock of capitalism is an opportunity for shareholders to listen to warren buffet speak on a number of issues, siness, the market through his investments. today he talked to our becky quick about a nber of issues including stocks, and one that he really likes in particular. >> reporter: the first thing most people want to hear from warren buffet is what he thinks

about the stock market right now, s we ask him that this morning. buffet overall says that he's had a very tough time in terms of finding dea for berkshire hathaway. a lot of the deals brought their way, priva deals at least, he thinks have been over valued by 15 to 20%. when i comes to individual investors he views things a little differen ay. >> almosays equities have been a better buy. certainly if you're going to put away money over time when you're younger, you can buy stocks over a considerable period oftime, you're not going to get the lows but you're not just going to buy thehighs. if you are cross sectioned, well, like i say, it will turn $10,000 into $51 million and you never have the look at a financial page again or list zwroen a broker. >> of course bfet has the stock he likes for berkshire hathaway. he doubledn down shares buying an additional 75 million shares. that brings berkshire's total take in terms of apple shares to $43 billion. here's why.

>> we bought 5% of the company and i'd leo own 100% of it. if you're going to buy 5%, we're not buying a stock when we buy apple in our minds, we're buying 5% of a business. we buy 100% of some businesses and when they're publicly held, we buy 5%. we bring the same thinking to it. we like very mu the economics of their activities and we like very much the management and the way they think and the way they act. >> buffet also spent some time defending another one of thrkshire's top holdings, wells fargo. is one of the top ten holdings for berkshire hathaway. >> i think if you lookhe at ten year record of wells fargo ten years from now, you're very likely to find it most of its kpet torsion. >> would you be buying more shares now if you could? you can't becausethe bank threshold? >> yeah. yeah. i- i don't want to get recommendations on which stocks to buy. >> reporter: in tms of wells fargo, berkshire is the largest

single shareholder but theyare passive investor. that's another reason he has not gotnvolved with any issues that have come forward for wells fargo. for "nightly business report," i'm becky quick inomaha, nebraska. >> mr. buffet was very critical of bitcoin. over the weekend he called it rat poise sin and he told becky it's an acid that creates nothing. the vice chair charlie munger said the same things as did mr. buffet's good friend bill gates. >> bitcoin is worless artificial gold which if it succeeded would filter a lot of illicit activity. now that is not something ior think the needs. >> bitcoin and icos i agree completely, it's one of the crazierng speculative t where it's not as an asset class, you're not producianything. i would short it if there was an easy way to do it.

>> there was a new first of iki warren buffet archive available to investors where you n search full berkshire hathaway annual meetings going back to 1994 and there's video.ds of hours of you can access it and learn m ie about on our website, nbr.com. time to take a look at some of today's upgrades and downgrades. we begin with mcdonald's which was upgraded to conviction buy from buy at goldman sachs. the analysts cited improving sales of the fast food giant. price target $1. shares of mcdonald's were off a fraction to 165 even. amazon was rated noutperform new coverage from kelsey advisory group. they cite the customer centric approach and relentless approach for efficiency in both new and existing businesses.ge price t to $1900. a.m. ma zorn stock se 1% in trading to close at $1600.14.

it's not a bearish call, but it is still a downgrade. the analyst cites higher spending and he calls the stock's c valuationpelling due to strong expected cash flow. the price target is 18. the shares fell more than 2.5%. deere's rating was upgraded to outperform at evercore isi. nte peak cycle and machinery stocks won't come 2021. the price target is $187. the stock was higher by 2% to $140.22. still ahead, the best way to ask for a raise and be successful. the activist investor value

act has reportedly built a billion dollar stake in citigroup. according to valueact's letter to investors, there are no calls for any strategic chang though it does suggest the bank increase its plan to return cash to shareholderses shf citi moved initially higher in after hours trading. and a different aivist is targeting a health care software company. elliott management wants to take athena health private in a deal valuing that firm at about $6.5 billion. elliott says that athena should be growing a lot faster than it is a it's not providing the appropriate returns to shareholde. athena health soared by 16% today in today's trade. h thed of the centers for medicare and medicaid services made crical comments today about the drug supply chain and in particular drug rebates. ands bertha coombs explains, the rebates are becoming a focal point in the battle over rising drug prices.

>> reporter: trump administration health officials are talking tough about tackling high drug prices. centers for medicare and medicaid administrators took aim today at the confidential price agreements between dg makers and pharmacy benefit managers or pbms. the higher manufacturers' list price, the larger the rebate will be. and since rebates are calculated as a percentage of list price igand ther the rebate, the more money that plans and pbms get. so the bottom line is that all of thencentives are lined up foruf manturers to set higher and higher prices. i this unacceptable. >> under current law thent governmean't negotiate drug prices for traditional medicare but the administration is expected to unveil new requirements thattead of keeping those rebates, medicare pa d drug plans would have to pass the savings directly on to the seniors at the pharmacy

counter to lower their out of pocket costs. the ceo of cvs health which has a pbm and part b drug plan told analysts last week that wouldn't hurt his company' profit but it could actually raise costs for seniors. >> you've heard u and quite frankly others talk about, you know, the dynam here that 100% of that rebate value in part d, you know, is passed through the plan design in the form of a lower premium. i think the concern that exists there is, you know, as you model, you know, that ou okay? what is the dynamic as it relates to beneficiary premiums going up? >> reporter: the director of health research at aarp says those rebates have helped keep part premiums lower. she says it's not clear just how would be eoff the between lower pharmacy costs and higher premiums under a new policy. >> and that's why we've called for a more thorough analysis so

we get a better idea of how many people are going to be this idea, how much they're going to be helped and to get a better idea how much premiums are going to it be increased. our concern is i could eventually put this out of reach. >> she says consumer cost effort alone don't g at the root of the prlem. dr makers abilities to set high drug prices, but analysts don't expect the administration to pursue price controls. >> there is anterest, obviously, in market-based solutions to some of these problems, but history has shown that market-b ced solutio only get you so far and certainly we have tons of real life exales where you need both market-based solutions and regulatory solutions. and, again, the posture here has generally been tiegulation and so i just don't see the regulatory hammer they can use to change all of this. >> president trump is expec to unveil his new drug policy

plan later this week. for "nightly business report," i'm bertha coombs, new york. let's turn to peter pitts to talk about all of this. peter is the president of the center for medicine in the public interest. per, thanks for joining us tonight. >> my pleasure. >> how likely, now that we're t focusing ose rebates, you know, this flow through of funds that occurs in the industry, how likely is it going to be that we're going to roll those bk d what would the impact be? would it be meaningful to lowering drug prices? >> most people say their drugs are too pensive. i go to the pharmacy and have a huge co-pay. the co-pay costs most pern says. and the pbms as was mentioned earlier are getting 10, 20, 30, 40% discounts from the discountser and tho and rebates are going in their pockets rather than lowering costs athe point of dispensation. when we think of lowering drug pric w, what the voterts really is to make sure when they

go to the pharmacy they're payi less out of their cket. when it comes to affording plans out of part d, of course you want affordable premiums but having a cheap plan that gives you higay co at the pharmacy is not a victory. i think what we're recognizing now is that drug pricing is an ecosystem. thers the manufacturer's price, there's the discount and rebate that it gives to pbms. one person's discount and rebate is one's pers kickback. transparency is the word of the day here. when people realize the types of rebates and kick backs that are happening, they're going to want to know what'appening to that money and why a person's product isn't less at the hpharmacy. do you see the gentleman that bertha had in her report said i might be part regulatory and it might bema part et. is that how you see this being resolved? >> i'm a free market guy. i think that pbm people within the ecosystem need to say,

listen, what we need to do is create a better system for access. that means lower costs at the pharmacy. that is a role for the pharmaceutical industry and for pbms a for government. i always think good, solid self-regulion in doing the right thing drives any type of federal regulatory process. i know that hhs, health and human services secretary under secretary a tzar sayst people get the savings. ihink it wil drive the practice of private insurance companies or at least i hope so. >> we'll see what the president says about this later this week. peter, thanks for jning us tonight. >> my pleasure. >> peter pitts with the center for medicine for the public interest. almart is tightening the opioid policy. ey say the will only fill first-time acute ooid prescriptions for seven days or less nationwide. it will lit the dosage and

requires eprescriptions. they follow recommendations from the cenrs for disease control. starbucks inks a deal with nestre. that is w we begin tonight's market focus. nestle is going to pay starbucko than $7 billion for the rights to market and sell starbucks coffees and teas on a global scale. starbucks says al licensing d will broaden the reach of its products. it helps that nestle is the biggest coffee company in the world. >> we've worked together to create what we think ofhe as t definitive global coffee alliance in the industry. this particularsh partn is all about taking what we've learned and built in america and taking it globally. it's also about expanding the addressable market to now bring starbucks coffee to the nesp e nespresso platforms. >> starbucks shares opened 3% higher but they did close off a fraction to $57.45.

nestle shares trade on the swiss exchange. elsewhere, print advertising and circulation revenues continue to be pain points in the latest quarter for newspaper publisher guinette. "usa today" topped earnings pe peives. it climbed to $10.89. bill, hertz projected stronger than expected estimates. nearly all of the financial estimates improved, it still has work too to achieve long-term growth. shares of hertz initiallyth plunged i after hours. a raise in 4% gain during the w regular dn shares finished at $22.16. also out after the bell online real estate database zullo delivered profits and revenues. guidance for the current quarter was a little bit light so

investors sent shares initially lower in after hours. they ended the regular day upar 6% to $55.91. turning from corporate earnings to your pay. friday's otherwise strong jobs report showed one area of weakness. still wage growth. why are workers still not getting raises in such a tight labor market? could be because we're afraid to ask. senior personnel finance correspondent sharon back to talk to us about how to successfully negotiate that tricky topic. i guess timing being everythi. it matters when we ask sometimes, right? >> absolutely matters when you ask. right now i actually perhaps a great time to ask. we have seen average earnikis start t up. they're not better than inflation right now, but they could be better. part of the reason why may be that we're not asking for what we want. glass dooid a survey showing 60% of folks who were -- had a new salary got it not from negotiation or anything, they took what was offered to them. only 10% actually negotiated to

get that salary in their current job or a new >> so say you've mustered up the courage and you're going to go upstairs and talss to the the boss is going to want you to justify that, right? >> that's exa ly righ >> what kind of data. >> career coaches say one of the clear things you need to do is research whereheompany stands right now. determine if they're able to give you the raise. is your department doing well so you should be afford a wage. figure out if the timing is right in terms of the time of the year. do theyak usually those decisions at the beginning of the year, middle of the year, end of the year. also figure out what you have added in terms of value to the company. what have you plisaccomplishmen been? >> because you asked for more er perksut what o could you ask for? i'm curious to know this. >> we're taking notes.sk >> you can for a lot of other perks. people don't want the salary necessarily, they want the time. >> right. >> maybe they want to have som

paid time off. maybe they want to have tuition reimbursemento that they can go back to school, get that master's degree, go get more education. in terms of health and fitness, getting that fitness membership. flexible perks especially for women in there say iidn't have to ask for the raise, i wanted the three day work week. >> not jtt women thaant that. >> sharon, as always. >> thank you, sharon. >> sure. >> good stuff. coming up, mapping the road. why one autonomous vehicle startup in texas thinks it's different from all of the other. artificial intelligence was part of the focus ofs microsof

developer's conference. the company announced a $25 million five-yor program encourage software developers to nce totificial intelli help those with disabilities. ceo satyad nadella s it's about using computing for social good. thee initiat will include seed grants for startups, nonprofits and academic research. and artificial intelligench was also center piece for a new startup that is focused on make being the ngfast-g autonomous c industry safer. phil l is in texas for us tonight. >> reporter: a new autonomous vehicle ride haili service starting this july in frisco, texas, just outside of dlas believes artificial intelligence and deep learning are the keys to ensuring that self-driving vehicles c safely operate on the streets picking up people, not hurting pedestrians or hitting other people. drive ai which started three years ago in the silic valley

believes deep learning or the ability for a vehicle brain,he computers, the sensors to constantly update what they are seeing, what they are learning about a parcular area will allow its mini vans tce ser an area here in frisco that will be geo fenced. essentially a route where people will be able to call up on an app, i wt the van to pick me up. e ceo of drive ai believes despite the koerchs of whether the computers a safe o on the street, he believes the technology ispr ing. >> the cool part about this this ai approach is as vehicle gets more data and experience, it will continue and learn and get better. >> reporter: drive ai believes this that starts in frisco in july can quickly expand to other cities and other areas where it will be on a designated route where people will gain confidence using a self-driving vehicle. phil lebeau, "nightly business report," frisco, texas.

all right. before we go tonight, here's another look atn the day wall street. the dow was up about 94 points to 24,357 but it had been up as much as 200 points. the nasdaq added 55 and the s&p 500 was up 9. w wel see what happens in tomorrow. >> especially with that price of oil. >> absolutely. >> we'll see after the president announces at 2:00 eastern tomorrow >> that will do it for us on "nightly business report" tonight. i'm sue herera. thanks for joining us. >> i'm bill griffin. have a wonderful evening. see you tomorrow.

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