. his is "nightly business report" with sue herera and bill riffeth. risingrates. stocks are up. so are bond yields, and one ney manager says that makes some dividend paying companies more attractive, not less. ford's the automaker is halting all opulartion of its very and very profitable f-150 at a crhaical time for company. staging a comeback. why demandin is r for a type of mortgage considered a villain of the old housing crisis. those stories and much more tonight onsi "nightly ss report" for this wednesday, may 9th. goodin ev everybody, and welcome. the dow records its biggest w streak in three months rising for five straight days. an increase ince oil p sent

energy shares higher, and that helped lift the broader markets and investors did not appearo be botherey a rise in the ten-year yield back to the 3% mark. so her are the closing numbers. the dow jones industrial average advanc 182 points to 24,542. the nasdaq rose 73nd the s&p 500 was up 25. bob pisani explain why today's market action could be a good sign for the bulls. >> reporter: it's finally happening. the broad market and key leadership sectors are breaking out othe down trend. bulls are starting to regain control of the narrative. the big cap, s&p 500 and the small cap russell 2000 are reversin the s&p has risen nearly 100 points. the dow more than 1,000 points since thursday's lows. the news has been better for the bulls recently. the jobs report last friday indicated modest jobs growth with modest wage inflation. earnings haveained strong and guidance for earnings for the rest of the year have notop d. earnings growth will be slower

next year, however. finally, inflation remains moderate. ten-year treasury, ten-year yields up 3%. april's producer price index, measure of inflation at the wholesale level. well within expectations despite somewhat higher cost for commodities. it's not just the s&p that's breaking out. sectors that were market leade earlier in the year like banks and fang stocks are doing better. what's missing is more volume on up days. that would be a sign the bulls are getting enthusiastic. the highest days have been on down days. none of the upe days h any kind of heavy volume. breaking out of a down trend does not mean were in a convincing up trend. keep in mind that the markettr itionally has a very tough time advancing to mid-term elections thought usual turns around in november when the elections are over. forsi "nightly ss report," i'm bob pisani at the stock exchange. with interest rates inching

higher, investing for income can be tricky, so what do you need to know whe it comes to dividend paying companies? joining us tonight is john patrites. he's portfolio manager at point view management. >> thanks for having me ion. >> wheerest rates are going up dividend paying companies are pressured but you say not always why? >> it depends on the cash flow of the company. if the company is doing wel if interest rates are going up, that means corporate profits should be stronger which means they should genate more cash to return to shareholders. you want to look at a company's ostory of noty having a high dividend but what's the history of growing dividend over time. >> you say you have to be careful. you kind of divided it up into pros andcons. one of the things you need to watch for is the company's level >> you don't want to buy a company stock simply because it has a high dividend yield. >> right. >> you don't want to be lured into a trap. if they have a significant amount of debt on the balance

sheet, you don't want to chase the yield because it'ser hi >> you start with ventas, an assisted living company. >> all of the sectors that were bond surrogates. we've been looking for yields that were bonds. stable substitutes have sold off hard. telecom, reets and consumer stables so ventas is one of the largest senior housing facilities in the country. they have near 6% yield. we all knowg we're liv longer and that weighs to those types of homes can go up. >> a name a lot of people know, hams brand. it has increased thevind. >> haynes stock has sold off because it's less to the mall so there's less impulse buying at big boxes for underwear, socks, those sorts of things. the stock has sold off. yielded 3.6% over the last

four years. ey've grown 40% per year. now you're getting a high yield and you have a company that has a history of growing a dividend. c finally thepany that used to be the one that you looked to first for dividends, the most widely held company out there, at&t. >> the yield is close to 6.5% now. the company assuming they colete the deal with time warner will complete this transition to an end to end media company from being cell phone to content and own hing in between. we like the three stocks. >> do they have to complete the deal for you to like it this much? >> not for the dividend. >> very good. john patre, good seeing u. >> thank you. we turn to washington now where there are new reports that involve president trump's personal lawyer, michael cohen, and some very big companies, including the drug company novartis. ef eamon javers has more. >> reporter: sarah huckabee sanders was asked if the

president is embarrassed or ashamed about any of the disclosures surrounding corporations to his personal attorney michael cohen? >> i think that would be up to those individuals who make the decision to hire someone. just the same way that the companies that you work for make the decision to determine whether or not they think that you're qualified to serve in a position, that's theecision of an independent company and has nothing to do with the whitee. ho >> reporter: here's what we know about the payments made to michael cohen in 2017 nd part of 2018. a company called columbus noval.l.c. which is a company that is independent of but linked to a russian oligarch firm gave $500,000 to michael cohen. novartis paid $1.2 million and a monthly retainer of $100,000 a month. at&t paid o 00,000 and korea air space paid $150,000 to

michael cohen.is and consulting firm called dssentia consultants. novartis determihat michael cohen and essential ctesultants ined they would be unable to provide the services related to the u.s. health care matters and the decision was not to engage further. the company said that it continued to make those payments toel mic cohen for the duration of the contract because they felt they were unableo brea that deal. at&t sent a memo to its employees today explaining its role in all of this saying that lobbying no legal or work for us and our contract with cohen expired at the end of its i term december 2017. it was not until the following month in january20 of the media at&t first became aware of the current controversy surrounding cohen. so meanwhile, we've got new development from nbc new this afternoon reporting that a senior official inside the dg ant novartis tells nbc news

that cohen reached out shortly after trump's election promising access to the new cabinet. we have the very strange story of the president's attney also selling access to insights about the president's thinking andap oach to governance at the same time he's representing the president of the uniterstates. "nightly business report," i'm eamon javers at the white house. >>ing interest rates are also impacting the mortgage buyers nd that has home trying to figure out how to navigate this incredibly competitive and pricey market. as diana olick reports, that means more people have less skin in thegame. >> reporter: competition for the slim supply of homes for sale today means bidding wars, cash, and a tough road if you're a buyer who needs to use a mortgage. interest rates jumped at the start of this year, took a break for a b and then began rising again last month hitting the

highes level in over four years. last week they actually fell back a bit butn' that d help much. mortgage applications to both purchase a home and to refinance a home loan fell. and home prices aren't just rising, the games are getting bigger. so how did today's buyers who need a mortgage get in the game when the finish line keeps moving? they do more with less. >> the last m 12ths especially more people are putting less money down on 3%, 5%. it's becoming more of the trend and tore common almost 20% or 30% down where it used to be 10 to 15 years ago. >> more borrowers are turning to justable rate mortgages which offer lowernterest rates but were widely blamed for the housing crash a decade ago. today's arms are much more conservative as are the low downpayment s. >> there's always a concern about higher risk. is there more risk than 5% down than 30% down as a lender? of course there is. it's revant.

there's layering of risk. you haveo trofile and the way t mortgage industry istoday. it's so much stronger. >> lenders are also banking on a strong economy that will keep home prices from fallin but at some point prices will hit a limit and the less skin in the game buyersehave, the m at risk they will be. for "nightly business report," i'na d olick in washington. and the cost of building a new home in california is expected to go up after a state panel thereve app an historic plan to acquire solaranels on new construction. iti roy is in fremont, california, for us tonight.s >> reporter: t gentleman bought his home 15 months ago. he wasn't looking for a house with solar panels but liked the idea of saving energy and money on his energy bills, too. >> i would encourage everyone to think about it. >> reporter: now everyone who wants to buy a new house in california might be f ced to have solar panels.

under a new code just approved by the california energy commission, all newal residenti buildings in the state up tori three s high, which includes houses, apartments, and condos, have to include solar panels. the ecnergy commission says it would add $9500 to the construction cost of a new home but the energy savings over a 30 year period would be $19,000. >> i would say it would be a positive thing. >> reporter: the head o sustainability for k.b. homes which built this brand-new community of houses in fremont, california, says the company supports the new rule and that 35% of its new homes in california have solar panels. the california building industrs association supports the new standards as does the solar energy industries association. sun run, the largest residential solar company in the u.s., also applauded the decision, but the outlook hasn't been as sunny recently for the solarindustry

residential installations in california went down nearly 20% last year and tariffs smming fromu.s./china trade tensions y upd cost the solar indus to 23,000 jobs. this as construction costs keep rising and while the new rule could increase up front costs of buying a newly constructed house in california, a state already known for skyrocketing housing t some homeowners don't mind footing the extra bill. >> trying to install them fresh is kind of more expensive so i would say go for ones which already have them in. >> reporter: the rule still has to be approved by the state's building standards commission. if passed, it would go into effect in for "nightly business report," i'm aditi roy, fremont,ca fornia. it is time to take a look at some of today's upgrades and downgrades. semiconductor stocks were in focus where the shares of xylinx

were updated to thduced. price target was raised to $70 and the stock rose 1% to $68. $68.43. the same firm downgraded broadcom from neutral to buy. it cites a worse thand anticipaoutlook for demand. the price cut from $250. the sck fell slightly to $238.05. meantime, check point' software rating was downgraded from hold to buy at ardis research. arch cite execution re related to sales. it cuts the earnings ratings this year to next. sharesdged lower to $99.80. monster beverage was wngraded to neutral from overweight by jpmorgan. the analyst expects pressure to continue given the rise in input the price target was lowered to $52. the stock fell by 7% today to $49.11. still ahead, ford is doing

what no automaker wants to itdo. is halting production of its most profitable vehicle. ford said late today it is halting all production of its popula f-150 pickup truck. a fire at one of the parts suppliers has stopped production of critical ndmponents for that vehicle, it's the last thing that ford needs right now. phil lebeau has details for us tonight. >>eporter: the f-150 assembly line is the heartbeat of ford's truckbusiness, and right now it's in critical condition. what's the problem? an explosion and fire last week at a supplier's plant in central michigan means it can no longer provide components for the f-150. without those parts, ford cannot

build the popular truc at means roughly 4,000 workers in dearborn could be temporarily laid off. thete u auto workers alerted members of a possible shutdown ying the company doesn't know for sure when or for how long we will be down. a shutdown would come just as ford dealers are preparing for the busy summer sales season and r ford the f-150 is critical to its bottom line. it's not only the most profitable vehicle it sells, it's also the most popular. on average, an f-series pickup is sold every 30 seconds. for now, ford has plenty of f-series trucks i its inventory, so if there's a complete production stop for a ort period of me, the impact on sales is expected to be minimal. ford is working with its supplier to get pro those components up and running as quickly as possible, a while there is plenty of urge y urgency, it is too early to tela

how long will take. phil lebeau, "nightly business . report," chic the department of transportation is conducting an audit of the a' oversight of maintenance issues at bh allegiant air and american airlines. they welcome any analysis of its american said it was shocked to learn of the review and it stands by its strong safety record. nonetheless, those stocks came under pressure in trading today. walmart buying a controlling interest in india's leading online tailer. theworld's largest retailer has agreed to buy f77% flip cart for $16 billion. as we reported earlier, this deal gives walmartreater access to that fast growing indian market, something that it has been toing crack for several years. shares of walmart fell 3% today making it the worst performing compent of the dow today. sears strikes a deal with amazon, and that's where we begin tonight's market focus.rc

customers who se tires from amazon will now b to have them delivered to and installed by sears auto center. under the deal sears also said it will sellf some its own tires on amazon's website. parately sears said it's continuing to take steps that it believes will improve financiale ormance. shares of sears jumped nearly 16% to $3.20. meanwhile, shares of amazon closed up 1% to $1,608. myelinng reported ear in line with estimates even as the epipen allergy sales trement rt revenue. they warned of epipen supply issues caused by manufacturing delays. today the fda said it expects thatho shortage to be term. shares rose 4% to $36.72, we the domestic box office success of super hero movie "black panther" wasn't enough to prop up attendance at cinemark. revenues edged past estimates.e

shares wff 5% to $36.78. online lending platform lending club reported a surprise profit. that was helped by an increase in loans. a revenues ros topped expectations. lending club shares gained 21% to finish the day at $3.41. after the bell 21st century fox said the strength in its cablev channels helped them top revenue expectations. earnings grewut missed estimates. shares were volatile in the extended session. th end the regular session down at $37.. streaming device maker roku reported a small sler thanct ex loss and higher revenues for the latester qua they expect sales in the current quarter and for the full year to soar past targ shares of roku were initially volatile after hoursut finished the regular day up 9% to $308.

as you know, companies make news all the time, some more than others, and whether it's good or bad, news c affect the stocks. so what does it mean for you when a stock you own is constantly in the headlines? joining us to talk about some high profile nes you may own is john najarian. he is the founder of the najarian family office. >> great to be with you, sue. thank you very much. >> you labeled this sticking with it or leaving it. you've picked three names for us, nike,sl and facebook. let's start with nike. what are the positives here? >> positives are hugely positive. 34 billion a inual sales, sue. that is a huge number, and it's only ing. obviously one of the best brands in the world, nike is. probably becomes a michael jordansut ther a whole bunch of other athletes and great products behind it. the other reason i think, sue, is 3 billion of those sales came from china, so i think thatou shows how much sales could

grow in china because it's only 1/10 of the overall sales. i think ne has a real opportunity here and, of course, we've got the world cup, which is right at our doorstep now, and that's another reason i think to focus in on this stock. >> and what you're doing is you're staying with it, right? >> yeah. this is one, bill, that i would stay with. like nike. i don't own it right now except for customers. myself personally, i don't own it right now, but as you know,e i'm m of a trader than i am a bu and hold guy. >> then there's tesla which seems to be always in the news, not always for good reasons though. >> right. last week it was mr.ho musk got a little testy with some of the questioning that he got calling themboneheads and so forth. we all know he needs to raise capital. not saying they won't be able to raise capital, bill, i'm ture they will. i think becomes a little tougher though each time they have to keep going back to th well.

and his reality distortion field is very similar to steve jobs tt without quite same measure of success that jobs had ,th, you kn sort of waiving his hands and getting people to believe there was really something orhat they could do something that they didn't think they could do. i love theproduct, i just don't think they can make enough money in the short ter to meet a lot of the wall street projections, and that takes me to that final point which is, you iow,is a car company. great technology. i'll give you that, b unfortunately he's going to have to admit sooner or later that it's a car company, and when he does, i think the valuation gets hit pretty hard. so this is one that i would not be owning right here, tesla. >> youe leaving that one. reality distortion field. >> yeah. >> i'm going to use at. thank you. >> sure. you're very welcome. >> let's move to facebook. you have some positives for us. you're stiking with faceb at this point. why? >> well, and this is one, sue,, that i boug and i've held for

months now. love this stock. ou can give 2.5 billion reason, and that's about the number of d alyive users that they have on the buatform. that -- beyond those people on the platfm, think about the 1.5 billion people that use their mobile phones because, sue, i think ttt is w every advertiser wants to touch because they can actually geo locate us when we're carrying our phones around. so the fact ty't t so big and mobile and the fact that both of these numbers are in the billions is why all the advertisers have to be with facebook. so i don't know that there's really another place they could be. i think this is just, you know, 800 pound gorilla. you've got to be with facebook. it's the best way t reach ople as they're going by your place of business with the mobile or when they're searching for things on their desktop. >> all right. you're sticking with nike, leaving tesla, sticking with

facebook. >> indeed. >> bill? coming up, the most valuable art collection ever sold at auction, at least part of it, coming up. on capitol hill, the senate has forced a vote to restore the rules that govern the internet known as net neutrality. a vote is expected next week o th new resolutions to restore the 2015 reguetions. th regulations banned blocking and throttling byte et providers. the current fcc chairman reversed those werules. , some of the rarest art master pieces ever put up for auction went for record prices last nightt christie's.

the collection, as we've been estate of is from the the late david and peggy rockefeller. robert frank has been following this story for us. he's back tonight with more. >> reporter: the biggest names in art were onhe wall. picasso, matisse and monet. the name that captured the big auction at christies was rockreeller. it fea 44 pieces that went for ad combi 646 million, way above its estimate. there we bidders from 34 countries battling paddle to paddle and on the phone to get pieces once owned by american royalty. seven new records set for thear sts and there were cheers and gasps throughout the crowd for the one hour sale which is the largest ever auction of a single collection. most expensive piece was picasso's yng girl wit flower basket. that went for 150 million. the piece, while slightly disturbing and not classic

picasso, is from his prized rose period which is sought after by museums. the big moment of the night was for a monet waterlily paint which once was hung by the stairs at the westchester home. with fees the final price was 84.7 million. >> 75 million, ladies and gentlemen. you have it. sold to you. well done. >> reporter: sematr reclining nude went for 81 million and gogan for 18 million went for 31. the w bids for matisse and monet went to asian buyers. it rolls on with t moren 1,000 other items the rest of this week. for "nightly business report," i'm robert frank. >> wouldn't you loveo know who the buyers were? >> oh, absolutely. >> most ofbe them want t anonymous on those phones, but just amazing this collectn all

one place and now it's going to different parts of the world. >> i can't wait forrobert's reports for the rest of the week. favorite story of the year. >> yeah. should we take another look at wall street? >> good idea. >> the dow advanced t 21,542. the nasdaq rose 73 and the s&p 500as 25. stay with us. we're going to follow that story. that's "nightly business report" for tonight, i'm sue herera. thanks for joining us. >> i'm bill griffeth. save someoney and bid tomorrow. we'll see you tomorrow.

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