this is "nightly business report" with bill griffeth and sue herera h both pave agreed to suspend the tariffs. trade truth. tensions ease, stocksof take and a number of companies are set to benefit if the spat cools further. wall street rally. the dow closes back above 25,000, but the market may not be out of the woods just yet. what rule named after the federal reserve chairman who proposed it -- >> you have five seconds. >> vua rule. >> the best and brightest meet the economic leaders of tomorrow. those stories and more for tonight on "nightly business report" for mond, may 21st. and we do bid you a good monday evening, everybody.n

a surge stocks to start this week. the industrials powered the major indexes higher after the trump administrationaid that e trade war with china was on hold. so with tensions easing, excitement on wall street is building and today that excitement sent the dow up more than 300 points for much of thir ing session. here are the closing numbers. the dow closed up u juster 300 point gain to 25,013. astheq added 39 and the s&p 500 was up 20 points.e we h two reports for you tonight. kayla tausche takes a look at the cooling tf thosede tensions between the u.s. and china, but first bob pisani has more on today's sck market rally. >> reporter: call it a headline relief rally. stocks surged after u.s. easury secretary steve mnuchin called a temporary truce between the u.s. and china easing trade tensions are a major tailwind for the markets. no surprise that gave a boost to

trade oriented industrials like boeing, caterpillar, united technologies. all of them were up sharper. cyclical stocks had been meeting the charts. technology, industrials, materials, energy that are up 5 to 6% in may. that's the kind of leadership investors like to see. right now the large cap s&p 500 is less than 5% below its record reghs and small caps hitting new highs for a fourth straight session. selling pressure is dropping a little bit. buying powe while not soaring, is building modestly. out of markets aren' the woods just yet. several head winds still remain so commodies are still on fire. many of them are at three-year highs and the u.s. dollar is at the strongest levels of the year. r e yield on the u.s. ten y treasury note is also near a seven year high. the markets can handle all of this asong as rates don't move up too rapidly as long as the mark cs arevinced that we're still growing throughout the year. for r "nightly businessort"

i'm bob pisani at the new york stoc nexchange. >> to kayla tausche with details on our trading relationship with china and what might happen next. >> reporter: a range of products from flat screen tv to golf carts imported from china will be spared from tariffs andhi will back down on new fees from tesla, whisky and soy beans. for now, the economic cease fire is welcome newsves s mnuchin denied a trade war was approaching. >> this has been a tra dispute all along. it never was a trade war, it's a trade dispute onnt signifi issues. >> reporter: china says it will buy more u.s. agricultural and energy products to help the u.s. chip away at the trade did he have silt. on twitter president trump praised the impact of the potential deal on farmers. he wanted a $200 billion deal a figu on which china is mum. they're enforcing the deal with

zte, a directid request from ent xi. while the details and timing of the deal have yet to be worked out, the threat of tariffs can remain. >> you cannot remove tariffs as a negotiating tool or enforcement tool from this process, you cannot do that and, therefore, i don't think we're saying tariffs are over far from it. >> reporter: the truce does not extend tel and aluminum and there are worries it doesn't address forced technology transfer and excessive intellectual property but they say this is a work in progress. >> this is not a term sheet for inance deal, this is a complicated negotiation with the two largest economies of the world. >> reporte going to china to work out a deal. a date worth watching is june 12th when trump and kim jong-un city summit is planned. there's a reluctance to rattle china and put that meeting at risk. for "nightly business report"

i'm kayla tausche in washington. but the delay in plementing tariffs on chinese steel imports weighed on the sector sending a.k.steel,u.s. steel and new corps lower in trading today. >> but a number of companies could benefit from this truce. joining us tonight to talk about that, john petretis. he's managing director at point view wealth management. we should point out the companies we're talking about you wouldn't jump into now because of this truce, right? >> yeah, that's right. i mean, i wouldn't -- we don't recommend buying this market at all simply because that the trade wars have been tabled. this is turning into a mini series. trade wars, the saga continues. >> right. >> just as youhouldn't sell the market on potential tariffs, you shouldn't be buying today because ofthis. >> but do you set up a whistler, so to speak, because as mr. mnuchin said, it's been a trade dispute, not a trade war? i mean, obviously that's the ministration's standpoi on it, but if you're a longer term investor, what do you look fori

ou want to add to your portfolio? >> right. well, i think the beneficiaries from not having the trade war are clear from the industrial t auto side. boeing is up3.5% today. they're going to benefit by not having tariffs. we benefit by no tariffsmp becae coies are going to pass it through to you and i at the register so the economy should continue this synchronized global growth pattern. >> your ge on that list as well. as the year progresses, the dollar istarting to strengthen. that's not going to help the companies. >> it depends. it's not going t help clearly. >> and the trade deficit. >> and the trade deficit, but,y know, that's going to be more in line with what the fed does and what the fed says coming up in the june meeting. >> what about technology? a lot of it has been bten down certainly. is it too early to take a look at tech? >> no, we definitelyike some of the suppliers like a company called flex international. they're t middle market between a chip maker and, say, a

cisco. heso they brought design and make the product. very low margin business so riffs would really negatively impact their business but they basically supply the entire tech hierarchy. e again, good to see you, john. thanks for joining or. >> thanks having me on. well, the trump administration islso tlining new demands on iran. secretary of state mike pompeo said a new nuclear deal would require iran to stop enriching all uranium and pull out of the syrian civil war. the list of demands alsoheomes withhreat of more sanctions. >> these will, indeed, end up being the strongest sanctions in history when we are complete. e dream has been fighting all over the middle east for years. after ourio san come in force, it will be battling to keep the economy alive. >> iran announced those demands and rejected the allegations. >> iran, of course, is closely watched by the oil market since

it is an opec member. venezuela is also a member of the oil cartel a it hel elections over the weekend and ady those elections are being called illegitimate by some and could lead to stricter internat sanctions. in fact, just today president trump signed an executive order restricting venezuela's ability to liquidate state assets that helped the price of domestic crude as well today which settled near the 2014 highs and a rise in oil of course means a rise in prices at the pump. the average cost of a gallon of gas has risen 10 ces. it isow up to $3 a gallon. in washington the supreme court upheld rulinghat companies can use arbitration clauses in employment contracts to prohibitm workers f forming a class action lawsuit over workplace issues. the court's decision could impact 25 million employees who work under contract. the decision is viewed as a win for business and the vote was

5-4. time to take a look at some of today's upgrades and downgrades. cbs's rating was raised to outperform from market reform. bernstein cites four possible paths forward amid the board room drama with sherryredstone. price target $65. the stock closed up a fractio today to $52 even. shares oferampbell soup downgraded to an outright sell from neutral at bank of america. the analyst calls 2018 a transition year now under the new interim ceo. price target $31. the stock fell to >>$33.58. and another call for bank of america, but this one is an ad up dillard's to buy from under perform. the southernl retail chain w benefit from a strengthening energy economy since dillard's has a large presence inan texas

oklahoma. the price target is $89. the shares were up 3% to$79.87. v.f. corps rea to buy a new coverage at argus. they cite strong demand fore s of the company's brands like vans and north face. the price target i 101 and shares rose 1% to ll0.92. sahead, a new threat. hackers are not just after companies or their data, now going after something else. we'll tell you wha c"consumer reports" will no recommend tesla 3. there are a few features that prevent the group from giving the vehicle a full dorsement, such as long stopping distances and difficult to use controls. hower, the group did praise

the agile handling of the model 3 as well as its batte range. separately a wall street firm raised the price targeon the stock to $500 a share and that helped lift the stock in trading today. > the transformation of general electric continues. the company is merging the bulk of its transportation business with railroadme equ maker lab tech. it's a deal worth $11 billio ge and the shareholders will end upholding 50.1% of the merged company. the deal is all partf ge's strategy to pare down to three core businesses, namel power, aviation and health care. this is the biggest deal done by ceo john flannery since he announced his plan to remake the conglomerate. shares of ge and lab tech both rose in today'sg. trad ge is up 10%, by the way, over the last two months. from a stock that is rising to a sector that is falling. consumer staples is the worst performing group this ar. th sector is down 13% while the

s&p 500 is up 2. this a sector to steer clear of or are there torgains waiting e bought? here to talk about that is nancy tangler, chief investment officer at hartland international. welcome back. nice to see you. u, >> too, sue. >> are you finding value in this particular area? because it has been a really rough patc >> it has been, and as a value manager and someone who i contrarian by nature, i would like to say -- i would like to pounduthe table, i'm still concerned that there's structural change going on ith group and it's not helped at all by a stronger dollar. so there are a few places we like, but not the entire group. >> why have they gone down? what happened? >> hey,bill. good to see you. >> you, too. >> so i think a couple of things. certainly there's a pricing -- there's pricing pressure from the onliners provi and from the business box retailers, so

the power lies in -- it has shifted. it lies in the hands of the amazons, wall marts and costcos of the world. so we actually own andave big commitments to both walmart and costco in our portfolios. we think they are the ones that are carrying the cards and have the ability to be amazon proof. in the case of the underlying food and bevieage comp we do like coke. that management has turned the company around and has dealt with pricing pressur lack of growth in the emerging markets and the way they've done that is by shrinki packaging so you pay more per ounce for coke, but it's healthier because you're not drinking as much. they've improved packaging and they've also added product in the carbonad beverage section. so it -- but it takes a long time for these big companies to change and others in the group have not made the strategic changes they needed to make. >> and one of them, i think, is

p&g. you say you're considering exiting that position. what is it that the management has not been ableo do to convince you to stick with this? >> p&g's ceo after wasting time fightingxy p battle with nelson peltz for close to a year, he recently said on their sappointing most recent earnings call that we have a lot of very big businesses in very difficult markets. so you just think about it logically. if 40% of trade is denominated in the dollar globally, that represents four times our share of trade. that means thatf my currency in venezuela, argentina, brazil is deprsed, i have to pay so much more for tide, a p&g t producn i did before, so i'm going to find another product. and theav managements not anticipated or adapted to that change andhey've not improved their distribution through thec rightnels. >> on that note, nancy, always

good to see you. >> you, o, thanks so much. >> with heartland financial. bill? sue, a multi-billion dollar bank deal. the bank said that it would buy chicago's mb financial for about $5 billion as it looks to expand its preence in chicago market. fitzer said the deal wou create substantial savings within the nexs. few ye dea weren't a fan of the investors sent it down to $30.85. mb financial took off rising 13% to $49.er. and apeaking with a number of potential buyers, lasalle hotel properties says that it has agreed to be bought by blackstone for just under $4 llion. lasalle said rifle pebblebrook hotel trust was among the interested suitors otherwise. blackstone shares finished up t% $31.68.

shares of lasallelimbed by5% to $33.61. hospital operator hca health care and kkr are reportedly foring up on a takeover bid envision health care. reuters said that the two are working together to create what they hope will a compelling offer even as other buyout firms eye ension. envision has requested that all offers be submitt this month. hca's shares are up to $103.86. shares of envision were at . $43. pinnacle foods has hired everore partners consider strategic partners. janaartners has pressed the maker of dunkin' hines baking mixes to mer with conagra brands. the two companies have reportedly disssed the potential combination in the past. pinnacle foods was off $69.93. world wrestling

entertainment has found a new broadcast home. as first reported by espn, 21st century fox's company reached a massive deal with wwe for the "smackdown live" show. it will take ace october 2019. shares of wwe were up to $57.86. restaurant equipment company middleby is buying the ice cream d frozen drink services company for $1 billion. the move comes as united technologies focuses more on the core business while middsby lo to grow its foot print in food service industry. middleby was off a fraction. up until recently hackers have mainly been focused on breaking into and stealing sensitive information, but now getthis, they havehe capacity to change that data that they ha and thatould have far

more devastating consequences, like manipulating stock prices. andrea day went to ibm securities headquarters to learn threat.his latest cyber >> reporter: every day is an aha moment. kayla barlow spends his days ut ching cyber criminals there's a new threat that keeps him up at night. >> what we're moving into new scenario where the bad guy goes in and changes data. >> reporter: modifying data, a huge problem, he says, that can cause far more devas tion than just stealing sensitive information. hos tough to spot? >> extremely difficult to spot data manipulion because you have to identify the attackers broke in and you have to find the exact datalement they changed otherwise you can't trust anything in the system. >> reporter: according to barlow, it could impact a sompany's stock. >> there are l of ways bad guys can profit, in ways that appear tbe legitimate. you can short a stock, you can invest in another part of the supply chain and that becomes a major source ofttack that

we're really concerned about moving forward. >> reporter: so what can be done it?top >> if we can figure out who they are, what their motivations are, we can often block their rattacks. >>orter: ibm security is developing intimate profiles on the latest cyber criminals and shocking to know, they act just like a legitimate business. >> they go to work m day througfriday, they take the weekends off. we know this because we terally see the attack volume drop off on a saturday and pick back up on a monda and in particular tuesday. there's the boss, the general contractor, and the may have dozens and dozens of subcontractors with unique ands specificills. >> reporter: he says they have employee reviews, even meetings to decide where to invest a lot of stolen cash. >> these are highly legitimate illegitimate businesses. >> reporter: they must bolster their defenses so they can spotr data changes b it's too late. for "nightly business report," i'm andrea day. coming up, do u know more

out the economy than a high schooler? find out coming up next. the number of401k millionaires is at a record. as we told you last week, a new fidelity investments report says there are now more than 150,000 accounts with balances of $1 million or more, but having all of that mo stashed away in a traditional employer spons aed savingount doesn't necessarily mean that you'll be a millionaire in retirement our senior personal finance correspondent sharon epperson is here to explain why. how much of an increase in millionaires are we talking about? >> we've seen in one year a 45% increase t accordithe fidelity data. >> wow. >> we have seen a jump to above

the 150,000 mark to accounts over $1 million. these are folks w have been saving for quite some time, working for about 30 years. the average age is 58 and keep in mind while 1/3 of that rise in what they've seen to that $1 million mark has beenn contributions, about 2/3 of them are market returns over the las5 10, years. that's a big part of why they reached that number. >> so let's say i'm one o those who has $1 million. how far is it going to get me? one thing to keep in mind, we're talking about traditional 401k plans so that is pre-tax money. when you take that money out in retirement, you have to pay taxes on it. if youe in a middle income bracket, that million dollars is close to $760,000. keep in mind where you live means how far that's going to go. go banking did a survey and they looked at cities where $1 million will last you and inus n, texas, it's great. it will last you nearly 26 years because the averagexpses you're going to have at 65 or

older are $40,000 but in new york city -- >> measured in months. >> exactly. 17 years 6 months. a lot less because you'll be spending $55,000 jt on expenses. >> in the interest of diversification, what other options do we have on401ks. >> ty're focused on tax diversification. about 70% of employers who have 401k plans offer the roth option. taxcan be building money free in a roth account. you're not going to get that tax break that you would on pretax money. you're going to get it at retirement. that money will actually be your money, not money that will go to uncle sam. you want to contribute the max yo cano a roth 401k if you can, roth ira.r 5500 this y or 6500 if you're 60 or older. if you have self-employment income look into a solo 401k or

sep ira. think aboutonverting a traditional ira to a roth to get the tax free income. you need to talk to a financial advisor. you need to talk to an accountant. it can be worth it. it can be worth it to get tax free money in retirement. >> worth admission. thank you. >> my pleasure. how much doh schoolers know about economics? the answer is a whole lot as steve liesman found out when he quizzed the next generation of economic leaders. >> reporter: at the national economic challenge, the question is not if the kids are art. >> consumer surplus decreases, producer surplus increases and net welfare decreases. >> that is correct. >> that is correct. uell done. >> reporter: theion is, how ridiculouslyalmart they are. st to the point of reading minds. >> ymontavista, have five

seconds to answer. >> structural unemployment. >> that is correct. >> all right. that's totallynfair for people at home thaare watching on tv. i'm going to read the full question. >> reporter: it's no wonder the kids are brilliant. to get to the finals you have to be the bes and brightest of 11,000 kids who compete across the nation. this year montavista high school from cupertino, california, won thid ricardo award. what do you like about economics? >> it's very applicabl to th real world and honestly i wanted to shout out m to all teammates here. without them i wouldn't have this high of a level of interest in economics. >> reporter: lexington high school from massachusetts won the coveted adam smith title for kids in ap and honor courses. >> price and quantity inease. >> that is correct. >> reporter: nan morrison, head of the council for economic

education, explains the valuef an early economic education. >> to let kids know how to operate in the real rld. better success, better outcomtt, decisions for themselves and their countries. >> reporter: for the second yr in a row americans faced off against the chinese in international diansion. amer won both rounds but the chinese competed strongly. it's too bad we can't let these kids negotiatehe country's trade problems. for "nightly business report," i'm steve liesman. for tooun mtune magazine ish the rankings f the top companies. it's the first company in history to generate that much in annual sales and it is more than double secon place exxon mobil which had $244 billion in revenue. in third place, berksre hathaway at 242 billion. apple fell onert spot to f place. amazon moved into the top ten for the first time. n

it's ranked eighth. all 500 companies represent 2/3 of the u.s. gross domestic trillionith nearly $13 in revenue combined. before we go, here's another look at the day on. wall stre the dow advanced 298 points. the nasdaq added 39 and the s&p 500 was up 20. and that is "nightlrtbusiness re for tonight. i'm sue herera. thanks for joining us. >> by the way, happyhd bi, steve liesman tonight. >> that's right. >> i'm bill griffeth. have a great evenirr. see you to

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