. >> announcer: this is "nightly business report," with sue herera and bill grifth. > market trifecta. interest rates rising, oil prices climbing, the dollar is . strengthen investors are trying to figure out what this means for their money. new hopon for milli of americans after the fda approved the first of its kindrug to prevent debilitating headaches. soupy sales.be ca's soup is the latest iconic american brand to struggle in this new economy. those stories and much more tonight on "nightly business report" for this friday, may the th. good evening, everyone. welcome. there's a proverbial cloud over wall street. investors all week were grapplin with geopolitical concerns along with rising interest rates, higher oiles

prnd a stronger dollar. today was no e different. rket struggled to move with certainty in either direction. the dow jones industrial average adde one point to 24,715. the nasdaq fell 2 and the s&p 500 was off seven. for the week all of the major dexes were lower. dominic chu takes a look at what's worrying wall street. >> there are a lot of risks to the market rally right now, but we wanted to ask some of the biggest investor minds and strategist minds out there what they think the biggest risks are to the overall market rally. they're all intertwined in some way. first of all, chris rupke, an economist, says the thing to f watch out is the fed. he says the biggest risk is fed thpolicy. market accident tend to do well when the fed is tightening. let's take it t another level here, somewhat interrelated. also the risingnterest rate environment. which is matt mailie over at

miller tayback, says every time we see a meaningful rise of rates represents some sort of malinv ctment. it coue the scary environment or downdraft we saw in february. rising rates also play in his discussion as well. this is from bla good win. he says it's dollar strength anm emergiket weakness, because it's the top of the list because it's probably the most immediate and current stress in a few countries like say turkey, argentino or venezuela, could easily spill over and eventually start to impact developing markets. the next one hnge flo into the same dollar theme. this is lori over at rbc capital markets, who says we've seen historically whenhe dollar strengthens too much, kind of like it is right now, earnings revisions take a hit. the expectations for a weaker

dollar has been consensus so if lhis continues to go gets it, it may c read paint. and we'll finish with this one. this is ivan fineseth over,ho says it's all about revenue and earnings growth. anything that would derail that trail would be the biggest risk. anything that knocking down corporate sales, all things to watch out for. so with oil prices, interest rates ohe dollar rise, it's creating a trifecta of factors that that expert is with us night. muhammad elairian, chief economic adviser at allianz. great pleasure you have to you back. >> thank you very much. it's unusual to see the ame e classes trend in the direction. why do you think this is going >> normally youwo see out of

three. either higher interest ratesnd atronger dollar, because the fed is on the move, on you esgher interest r and stronger oil, because the economy is moving. today you see all ythree, and don't see the negative relationship between oil and the dollar in particular, because people are worried about oil supplies. they're worried about venezuela, and worried about iran, reducing u.s.hipments after the exits iran, it's a supply issue, but we're getting an unusual trifecta. >> do you expect that trajectory to continue?f and so, what is the impact globally? >> io for interest interest rates and for the dollar. for oil we'll see more sha come in. in the short term, the trajectory will ntue. over the long term, that supply will upset it. what does it mean? if you're in an emerging market and oil boarder, you're in

trouble. you see this? argentina and turkey, why? the dollar mears our sfering higher outflows, interest rates means financial conditionsgh n, and higher oil prices means the trade balance gets hit. fo the most vulnerable emerging economies, this is not good news. i suspect we're not just going to talk about argentina and, turkut others we'll be talking about in the next few for u.s. visitors here theoretically a higher dallas means tougher times,le or at headwinds, same thing with higher interest rates. is that how you view it? where do you see opportunities in the u.s. equity market? >>. yes, we're treading water, but treading water after a really p goodformance last year, and the first month of this year. i'm not overly worried. in fact, i thinklo -term investors could be welcoming this period. why? because the marke is usedo a

higher volatility regime. we're goingro unusually low artificial voatility more normal volatility. what do you do right now? i think you pick your spots. you clearly wante to be m domestically oriented. the u.s. economy is doing better than the rest of the world. on the yield curve, but careful. it's going s tort steepening again, mean that longer datedee bonds will a higher north droli carolina, and tlar -- don't short the dollar here. andu.s. has both the growth the interest rate differential in its favor. >> doe it change what the fed does this year with all three factors moving higher? >> so ironically, sue, the market has not only embraced very early on what the fed has announced for the whole year, which is three wrates intotal, i

don't think a fourth will happen. i think it means two more from here, and the fed will be very careful. the fed is not going to disrupt this market in a major way. if it's disrupted, it's because of the rest of the world. >> the great mohammed elairian, thank you. >> as oil prices rice, so do gas prices. as jackie reaung his reports t. consumers are taking notice. >> highe by 57 cents from this time last year, standing now at $2.9. >> i think my tank is $5 more than it wabefore. >> if the prices continue to go up, i'llrobably start thinking about how to economyize more. >> i don't have muchf a choice, you know, you have to

put the gas in the car. >> the rise in pump prices comes alongside a spike in crude oil.e in the last t months, the oil is up less than 17%. high oil prices are good for producers, those companies using oil as input could suffer. there's a tipping point when oil too high can have a chilling effect onconsumers. >> there will be questions about what is theottial for a recession. i think people will start to get worried as w move significantly higher, bud i was just in abu dhabi, and the if oil minister wasthere, and saying the prices are pinching us now. g where do we from here? oil price versus more reasons to go up than down, geopolitics, problems in venezuela, all while global demand temperature is robu. we couldde$3 soon, and the peak

of the summer seasonoesn't really hit until the fourth of july. for "nightly business report," i'm jackie deangelis. investors are also watching geopolitical developments especially when it comes to north korea. today it s reported that training exercises were itnceled, after threats from pyongyang toraw from next month's planned summit in protest of thoseed sed training exercises. there is also uncertainty tisurrounding trade negot between the u.s. and china. they have been keeping investors on edge. white house economic adviser larry kudw said china is meeting many of our deand that it offered toe red their trade gap with the u.s. by more than $200 billion. the chinese were swift to react earlier today.

>> u.s. officia have been quoted as saying that the chinese have been preparing a package that would help reduce the trade deficit by $200 billion. well, today the foreign ministry said that the chinese never said that. the spokes american said it is notrue. according to what i know, the relevant discussions are still ongoing and going in a constructive direction. he wouldn't provide any other details, but those reports had claimed that the chinese would offer to buy more boeing aircraft and natural and cut isting dives and agricultural products like pork and sore gume desphe lack of clarity, the two sides seem to beto moving rd some sort of deal. the commerceis my today announced it's ending the anti-dumping investigation into imports of u.s. sore gum. it equity not in the public interest bag it will negatively impact chinese consumers.

e investigation was see an one waypr trying to pressure ident trump. all this comes after president trump met the chise delegate at the at the white house. meanwhile, i spoke with people in the american business community here, and there's concern about where these discussions arehe ed. jeremy waterman from the u.s. chamber of commerce told me that he and the trump administration is too fixated on the trade deficit and structural issues that the compani here face could be sacrificed. for "nightly business report," i'm eunice yun in emijing. r of the freedom caucus today voted against that bill after failing to get concessions on spending cuts and a promise to call a future vote on immigration. a democrato voted against that measure. the farm bill is generally viewed a n a safety for millions of american farmers. it also includes the federal

food stamps program. the senate, by the way, is also working on a separ bipartisan bill. >> it is time to look at some of today's upgrades and downgrades. advanced microdevices is rated outperform at cow hen in new coverage. the analyst says amd's products are at an inflection point. theos stock1% to $13. spotify is being rated a strong buy. the analyst sbls it could d the subscriber base, expand grossinma the price target is $190, but it's feeling the pressure from youtube's move into musicam stg, and the stock as a result was off 5% to 150.80. marriott's ratin was raised to outperform from in line at evercorp isi. the analyst says improving growth will work in marrtt's favor. price target 155.

and yelp saw its rating raised to buy fromeutral at b. riley. the analyst expects the company to benefit from growth in the home services businesses. the price target is . the stock gained 2% to 46.44. still ahead, as the market searches for direction, our analyst has how it could ride double digits over the next year. the food & drug administration late yesterday 3ru6d the first migraine drug in a new class of medicine form the drug is made byamgen, but as with every new treatment there's always the question of effectiveness and cost. meg tirrell looks into that. >> as many as 36li m people

in the u.s. experience them, debilitating headaches that can la hours, even days. migraines. now the first of a new group of drugs has been approved in the u.s. to preventthem. i've been excited, because this is the first time in history we have a treatment for migraine that's based on what we know about what's going on in the brain during a migraine attack. it adds validation to migraine as a neurologic disease. >> tad drug is by amgen, and its partner novartis. it's designed to be self-admarched once a month with an autoinjector. during the trial withc episo migraine patients, they had one to two fewer days of migraines. >> it's not well recogniz, and iteems that every day in clinic, i'm telling someone they have migraine, and this is something they didn't know that they had. >> the drug is the first in the

new class o medicine known as cgrp inhibitors. >> everything we've used before was a drug designed to treat another problem, that we have pulled into the migraine world. >> one common treatment, box, wrinkleg busting dru was approved for chronic migraine prevent in wa2010. street sees big prospects for amgen's drug as well. it would cost $575 a metropolitan. that's lower than wall street d expected. farm set benefits marcherhe we in, but noting not all mind patient wl need the drug. they see it as most -- and while it won't bon for long.er thre companies have similar drugs in velop. ome see a potential price war on the horizon. for" "nightly business repor

i'm meg tirrell. a surprised departure at campbell's soup today. the ceo denise morrison retiring she was effective immediately. the company cut its profit forecast for the year and said it would be gin a review of all its businesses. shedes plu 12%, the largest one-day perceage decline since 1999. it is yet another iconic american brand that is struggling in the current economy. >> it's still the campbell's soup company with roots dating back to the 1800s, but campbell is struggling to find its way in thest21 severalry. just listen to keith mclawful lynn trying to steady the ship. >> we will undertake a thorough and cri review of all specs of our strategic andng operati plans. everything is on the table. there are no saeb cry cows. >> the company didn't reveal any

specifics, only that it hopes to have some details, a plan of some kind aimed to reverse three straight years of falling sales. outgoingid ceo d try on push thp oany elizabeth yond its traditional plans like pepperidge farm, v-iland swanson, if foras into fresh foods and organics but she found only mixed result. she also announced they would bu snyder lance in december, marking an even bigger strategic stsh. >> this is our lar acquisition ever and it will meaningingly shift or port followia. acking will become almost one half of our portfolio sales. >> but are snacks and healthier foods the answers that campbell is looking for? will they move a brand the baby-boomers built into the warm embrace of a growing millennial

population? even if theare the answers, campbell's still faces a difficult economic environment. it expects higher packages costs, it's worried about inflation pushingcep p for wheat and vegetables, as well as for the oil and gas it needs to transport its products. while it'sarting cost cuts, as much as $500 million by 2020, the question marks will linger. ands the new out of the company today rippled through the rest of the food sector dragging down stocks like craft heinz, and b & g foods. we begin tonight's market focused deere said higher frail and material cost caused an earnings miss, but the company says it's fixing the issue with price hikes. and it that is strong deman for construction and forestry products.

s the proposed merger between chip makers qualcomm and nxp is reportedly looking more likely. "wall street journal" cited a chinese official s he was optimistic that a deal would go through. the merger hayes yet to be blessed by chineseat regs due to ongoing tensions between the u.s. and china. shares rose, qualcomm shares were up about 1% for 57.51. meanwhile, baidu said day the chief operating officer is stepping down for personal reasons. e executive was hired to lead the efforts in artificial intellence. and late lasig cbs board voted to dilute the voting power of sherry redstone. the vote willot take effect unless approved by a del acare court, as we've been reportin cbs and redstone are locked in a

legal battle over control. cbs also postponed the annual sharehder meeting. time for our weekly market monit monitor. he h a list of stocks he says could rise over double digits. last time he picket at&t, which is down 19%, walmart higher by 5%, and ibm down 2%. joining us is the chief investment officer at aviance incull management. welcomeback. >> good evening. mathec is one of the teams is atrackedive valuations with a bullish horizon of one to two years. what do you like about mastec. >> all usa stock, so not really affected t by dollar that much. it's really a situation where you buy one, get o free. not only is it cheap and well known for the engineering and

construction inned pipeline business, and servicing and doing infrastructure for unconventional oil services that's fracking and whatever, but also they're a huge player in thel- rt of 5-g. 5-g is simply faster communications with your cell phone, more data through it, tmore everythingt we use every day when we use cell es ph and communication devices. so they really havoth sides of the equation as far as growth is concerned.ea they both top line and bottom line, and they raise their expectations, and, you know, short of a real economic drawback or recession, i think this stock certainly has room to ow very nicely. >> then there's rio tinto, of course one of the world's biggest mining companies, i gues you're finding value

there. they've been underperforming for ar. >> absolutely. certainly for the last five years definitely. people really turned away from everything to do with materials, mining, that whole area here you're buying $100 billion stock, a stock that producing aluminum and steel and even ds diam so it has all sorts of areas that are commodity related. the stock is trading at 11 times earnings with a 5% yield. view on it is we're seeing world growth now,cu parrly growth in the middle class, more consumption of things, you know copper, steel tohe automobile industry, whatever. i think it fares very well, been w union permitter for -- >> andtern digital, your third pick. why do you like it? >> it's stupid cheap. 7.6 times earnings, 2.3% yield,

about where a two-year is, everybody knows flash memory, remember san disk, but the big part of it is the disk business. the cloud is about astorage, nobody does the enterprise storage business better than westerndigital. a huge growth business. >> chris, thank you. >> thank you very much. to reade m about his picks, head to our website nbr.com. a royal wedding, hefty price tag and the queen's wealth. on. the vican issued a harsh critique of the global financial systems calling for more regulation. the church said recent economic

crises proved that the markets are not able to, and an injenks of morality and ethics is needed. the document by pope francis attacked ceo compensation, the rise of payday lenders, and at the other quote ticking time bombs. the royal wedding will cost a pretty penny, some of those costs willall on the queen. that got us wondering about the royal family's wealth. wilfred i frost outside windsor castle tonight. >> it's expected to cost as much as $45 million, the vast majority of which will go to secutty. that cill be footed by the taxpayer and the queen, but much higher portion by the queen. this time than compared to 2011 for the wedding of princewomen and kate, which was a state occasi. tomorrow'sedding is not.

but can the queen afford it. here we look at her finances. the queen's total personal weal is estimated at $490 million. that stems from an investment portunlio of a $150 million and large amounts ofproperty, including sand ring ham and balmoral. she doesn't actually own windsor or buckingham. they sit in a charity along with the crown jewels. the queen can use them, but not sell them. most of the queen's income comes from the crown estate, which s also does not own. it has a value of $16 billion stemming from large amounts of property in london and some 2 million acres outside of it. she receives the sovereign grant, which is roughly 15% of total income generated by the crown estate. last year that came to $58 million. the remaining 85% goes to the u government. she also gets around $20 million er year from the duchy of

lancaster, a private pool of capital that has existed since the early 1700s, the prince of wales gets his own income from the duchy of cornwall. it's up to the queen and t o prin wales how they disperse that income. for fo"nightly business report, i'm wilfred frost. >> are you goi to get up early and watch? >> absolutely, with a hat. >> i'll watch the highlights. that does it for us toveght. great weekend. >> we'll see sudden monday.

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