. this is "nightly business report" with bill griffeth, and sue herera. taxes decision. states can start collecting billions in sales tax from internet retailers. in the landmark supreme court ripples through wall streor. d out. intel's ceo resigns after mixing business with pleasure, and shares fall. modern medicine. a different kind of prescription to control diabetes. those stories ande mtonight f"nightly business report thursday, june 21st. good evening. i'm contessa brewer in tonight for sue herera. hi contessa, i'm tyler mathisen in for bill griffeth coming to you from new york city. > there was a big today from thehe h court, but also a

big day on wall street. trade tensions linger after the u.s. merit secretary said more pain was needed. >> what we have to do is create an environment where it's morei l for these parties that have these huge trade barriers, both tariff and nontariff. got to make it more painful for them to keep thor barriers g th rid of them. that's a lot of what all this exercise is about. >> that dragged investor sentiment lower and pushed the blue chip dow index down for the eighth straight session. that's the longest losing streak since yerch of last . the selling was broad, hitting everything from industrials to techshares. the dow jones industrial average off 196 points to 24,461. nasdaq down 68. s&p 500 dropped 17.

>> the justices overturn a 26-year-old decision that effectively barred states from imposing sales taxes on out-of-state purchases. the d bision was a win for south dakota which asked the court to uphold a recently passed law imposing an internet sales tax,ut it's considered a loss for amazon and other onle retailers. courtney reagan has the details. >> reporter: the supreme court says retailers should select online sales tax even if the retailer doesn't have a phy ical presenthe buyer's state. it's a reversal of the decision a sreme court made in 1992, mostly looking at catalog shopping before online shopping became a daily reality. justice kennedy writes, quo -- the internet's previousens has changed the dynamics of the ecomy. justice roberts and three other

justices agree the court got it wrong 26 years ago, but say it' congress's job to financial it. large retailers have been i favor of online sales tax collection across the board, and wint today's decision as a >> i think it's about a decade too late, but i think it's the rightdecision. the internet has had an advantage against stores for a number of years, and it's hurt main street, large retailers and just leveling the playing field. ws it's good or state budgets. timates state and local governments lost up to $13 billion inllunted tax last year alone. many smaller businesses sell on their own wets. si aren't happy. while amazonle does c sales tax, more than half of what is sold is sort by third-pay sellers. they merchants aren't always

collecting sales tax, b until now it hasn't been required bylaw. s.e.c. ckreism -- and to act s in the best interest of the microin busses they represent. now retailers of all sizes will need to invest in systemshat allow the collection of sales tax in thousands ofss jurisdictions. most retail experts don't nbelieve the decis will change which merchants buy from online in significant way because of the other factors like convenience. suthough crs may think twice in some cases, particularly with high-price purchases not previously subject to online tax. for "nightly business report," i'm courtney regan. let's take about what some supreme court ruling could mean for consumers and the retail industry.

arun, welcome, how soon will consumers potential feel the bite of today's ruling? >> well, i think they're going to start seeing it very soon, especially if you shohrough retailers like etsy or i think wayfair is probably a biggest loser. they advertise themselves as a place where you don't have to pay sales tax. amazon's probably going to see some impact, but they are big enough to be able t absorb any losses that comerom their sellers having to charge sales taxes, so that shifts the power in the online retailing space away from the smaller players and towards the bigger players. arun,al a bit why brick and mortgage areasti traal retailers like macy's and best buy would be so vesuppor it will add to their administrative costs, isn't it?

>>well, it's because a lot of the brick and mortar retailers n't have a significant online presence relative to their ce pres they have the systems in place to collect sales tax anyway, so they're probably seeing it as a small victory as they're facing the online retailing onslaught. whil it certainly works in the short run, it's not enoughge of cho save them from the tsunami that will watch over ther business models over next five years. it occurs to me beyond the fact tha a small retailer will have to collect 8% sales tax or whatever it is, in whatever jurisdiction, butis i also going to raise that small retailer's cost of doisi ss if they have to buy soware systems toelp them comply, and then they're going to have to, one way or other, remit those collections back to

the taxing district where the consumer lives. how much is it going to hurt them? >> i think that it's going to cause a lot of small sellers to tru d attach themselves to larger platforms that o the service. it will be in amazon's best interest to handle the burden for the mill years of sellers, but it also forces ksd l in the smaller seller more and more into a big platform like that. what i'm hope will happen is us seeing congress carve out, you know, space in these regulations that impos aigh enough minimum sales oy above which you have to pay a sail taxi. this would cer lot of microbusinesses who sell through amazon or etsy. >> is there any bigger wner

than the states? >> really the states are the big supposed nsumers are to be paying these taxes on their own. it's just t they don't do it. states have a way ofth reducing volt activity of their budgets. in the long run things will even out. for the large retailers who might bes celebrating this leveling the playing field, it's certainly not enough for them to counter the online retail sort of juggernaut that will steamroll a lot of their business models. >> i'm shocked you don't think the consumers are already paying this voluntarily. >> i m guess faith is humanity is not as high as yours. contessa? >> intel wasor one of the performing stocks today after the ceo abruptly resigned for violating company policy. intel also raised the profit and revenue forecast for the second

quarter, but investors just focused on the o departuref its chief executive. isat's what josh lipton looking into tonight. >> reporter: a shock for intel and silicon valley today. the company removed i ceo, saying he had a consensual relationship with an employee. that violates company policy, which says managers can't have erelationship with peoplho report to them directly or indirectly. it's unclear with whom he had theshrelati, but it ended some time back, sourcesel cnbc. the company only recently learned of all of this at which int itaunched an investigation and took action. in a filing today, intel said the ceo is entitled to a $38 mill join walk-away payment in the event of a voluntary rmination. a spokesperson didn't immediately respond.

he joined the company in 1982 and became c in2013, when he reachned the chip maker's beyond the pc and data center and into artificial intelligence, theer in the of things and self-driving cars. analysts say he go ahead credit for a stock price that rose about 120% under hi the cfo has named interim ceo, but who can replace him permanently? guessing game has already began. >> last time weng saw somet like this was hewlett. things were not good at the company then, and y had a lot of high-end talent that wanted the job, and i think we've seen hewlett suffer from t fact that they didn't have aep good scuccession in place place. i think they need s to makee that the street knows that it is business as usual at intel. some say the candidate to watch is murphy randucl antalla,

an executive well engaged in growth markets. and it's those growth areas that wall street wants the next ceo to focus . for "nightly business report." i'm josh lipton, santa clara, california. well, jus astoday's market decline is being pegged to lingering trans ns, new research shows that trade is also the reason by the recentf bout volatility. investorsre a paying attention. steve liesmant lookse up and down. >> reporter: new research by cnbc m shows trump's trade policies have cost markets hundreds of billion, creating head-spinning volatility. cnbc found fully a third of they oves. on seven those 12 days, the dow fell an average of 1.7%, and cost cumulatively 700 billion.

in five of those instances on news that trade tensions were sing, stocks bounced b so how does it net out? it's a netting in tiff. one big reasonhat stocks arefl . and job growth, along with the s profit-friendly tax cuts. the trade disputes with the eu, and china, while they might be small on an individual basis, fairly quickly offset the still lug from the tax cuts. we think that was baked into the maets last year. >> the research shows the company is taking the biggest hits from negative trade news are household ne stocks deeply involved in world trade, including caterpillar 3m, u.n.

do yo dow dupont perform announced tariffs on china, marketsun d nearly 3%. but four days later, the dow surged 2.8% after a "wall street journal" story said the u.s. and china were quietly negotiating to approve trade, an improvement that never came. it's worth pointing out we coulf nod a 1% positive more or higher linked to any news that tariffs would be increased. investors don't the economic up side from higher tariffs or a trade ward. for "nightly business repvet," i'm sleashman. shares of nike were downgraded to neutral. the analyst says the upbeat outlook, is $78iz v shares were upgraded to buy from neutl. the analyst says the stock has

been unfairly punished. the price is $56. shares rose 1%. a busy day for the person, upgraded shares. citing strong network assets, a large customer base and strong finances. price target now 61, the stock closed at 291.86. >> amc networksius downgraded over at bernstein. the analyst says it's unlikely that amc will be acquired and invest as hoping for a takeout will be disappointed. the stock fell to 65.02. still ahead, opec's big decision. i'm brian sullivan in vienna austria, why the decision to race oil output will also raid oil prices on "nightly business

report." u.s. banks argest have all cleared the first part of the fed's annual stress tests thess test is conducted to ensure that banks will be able to maintain enough capital during times of extreme stress. the central bank introduced the test following the financial the result of the second part come next week. the world's bigge oil producers are nearing a deal to lift oilproduction. if that happens it has the potential to change the dinamics of the energy market. oil prices today struggled for direction ultimately settling brian sullivan is in vienna tonight.

>> reporter: it's looking more and more like president trump will get his wish and opec will pump more oil in the months ahead. that's thetaaway from day 2 of the difference in austria. tomorrow the world will be watching as the cartel will make its official announcement, reversing a 2016 decision that reduced out put. the secretary-general telling cnbc that he's confidence a deal will be reached. >> i'm optimistic. on moiday, ow, with opec, and then on saturday will come up with a consensus decision. >> reporter: the quest many have is why saudi arabiant woul wa to pump more oil. when it's perceived that higher prices are better for their country.oi expert and author dan yergen sis it's lely pressure from

the -- that pushed the saudiing for more output >> the relationship is very close, a much better relationshiphan it was under a previous administration, and i think both sides want to see that -- because it's very much at the center of the -- >> reporter: but even an agreement to raise production may not be enough to keep oil costs from running, because sanctions on iran, as wells venezuela's continued economic asaster mean more tha million barrels a day may still disappear from the market this year. in the back hal of thi year, even if opec exhausted its capacity, we're still going to draw inventories in the third and fourth quarters. that means hher prices. >> which also means both opec and president trump would come out ahead. opec gets to pump more oil and make more money. the president looks like he'sss applying pree to help the american consumer. for "nightly business report," i'm brian sullivan, viea

austria. what's in the cards for tomorrow? we're joined by jokillduff, first of all, what are you reading i the tealeaves? >> from comments made this evening by the russian oil nister and saudi arabia's oil minister, the decision has been made to make a $1 mi-- 1 millio barrel per day decision. that's why they're doing it now for this third quarter, where we see a lot of fue demand. so it's an important move, and it looks to have really undercut the price rally that was going onust a few weeks ago. >> john, do you subscribe to the just a in the piece moment ago that we could get the million barrel a day increase id tion, but that price coos go up as well? >> it bea watching, tyler.

i am nothat crux tiff on predictions as that gentleman was in the piece. we are i a deficit situation, but saudi arabia has 2 milli barrels of spare capacity in and of itself. so they are trying to be generous and spread the wealth around here a bit even ashe iranian barrels go off-line. the wild car is a country like t china, who doeare about the u.s. sanctions orb implications from the u.s. banking system problems still step up and fill the gap and buy that iranian oil. it's not a certainty at all that all of that gets lost. >> ear dealing with ,libya, ir can the saudi increase counter-balance some of that, in places like china. >> right now ithas. right now it's a big signal to the market that while the saudis contemplated about a month ago they were thinking about letting

prices float up, they got the message from donald trump, they got the message from india, from chinahatoo,this is hurting their economies, and the saudis hae to realize that the customers are very important to this mix as well. that's why they're addressing this now. >> john, the russians go along s because? e they're happy as clams, tyler. ssian oil companies never wanted to be a part of this program. they had to follow the lead 6 their president putin. they wanted to like our shale players, our oil companies, khey wanted tp producing and getting more market share.s they're happy clams to be adding more oil. >> what do you think about the gas ices. >> they have peaked for the summer. they should continue to trend lower. but we should see the national average trend down to around 255 to 270 a gallon. >> john, thank you for adding your expertise.

kroger's investments are paying off. that's where we begin tonight's market focus. it topped earnings and revenue estimates, leading to a sharp in online sales. kroger also raised the low end of the full-year profit estimates. shares ended up nearly 10%. it was a down tay overall. best days ago for kroger in nine years. arn restaurants said an increase in customer visits helped sales rise at a faster than expected clip. the owner of olive garden and lo longhorn said it sees same-store sales rising as much as 2%.>> a much different story today as barnes and noble. shares were off almost 4% to $6.20.

>> conagra is reportedly inrested in mergi with fin acal foods. a potential deal would create the sect larger u.s. frozen food company. shares of pinnacle rose 2%. shares were off a fraction to 238.28 shares of stamp.com, after it want to do restructure the postal system to create a sustainable business model. it also said tell turn the business into a privately head -- shares fell 10%, 251.85. ng> after the bell red did the top ear and expectations, but it was a company's guidance. and so as you might experiments

shahverybody theynded the regular day down 2% to 165.73. coming up, defeating diabetes, a new program that can improve health and curb costs. spending on medicine to help control diabetes is on the rise. but a new program is helping over the costs while time improving patient health. the idea is relatively simple. meg tirrell has tonigci's modern me. >> rita perkin has lost more than half her body weight.

she lost 100 pounds, but the scales were stuck as she couldn't stick on healthy habits. then she received a different prescription, a prescription for fresh, healthy food. >> we're standing in the fresh food pharmacy at the hospital. >> hi, rita. >> perkins is part of a new program designed to control type 2 diabetes in low-income patient. not with more medicine, but with food and education. >> in health care, we spend an awful lot on drugs and devices. becae it's business, but we spend a very small amount on preventive medicine. >> sort of like we're sidown and backwards. therogram has result indeed dramatic improvements in patients' health. some have been able to reduce yew ofdi ne, and it saves money, too.

>> financially we have seen probably a decrease in health care claims paid o on our patients by over two thirds. >> this is the pdce i u to eat on. now i am down to this size. >> perkins receives ten frees me week for everybody in her household. it helped her drop another 45 pounds and n setting a past for her family. >> they are learning to eet in a healthier way than wt i was. reporter: with 100 million diabetes or prediabetes, costs are on the rise. while spending on medicines morn than doubled to 54 billion.am like this, which the health system plans to expand, may help to make a dent. you can real more about this program to help control diabetes on our website, nbr.com.

before we go, let's take another look at the day on wall street. it was a down day, off 6 points, nasdaq down 68, and the s&p 500, folks, dropped 17. that's "nightly business report" for tonight. i'm contessa brewer, thank you for watching. well.anks for me as i'm tyler mathisen. have a great evening, everybody. and we'll see you back here tomorrow night.

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