orbusiness r with bill griffin and sue herera. > rally fizzles, stocks soared at the opening bell but the optimi faded as investors have a hard time making sense of this market. softer stance, the president's crackdown on chinese tech investments was less harsh than expected, but questions about theconomic impact remain. labor setback, the supreme court deals a blow to unions in decision that could have far reaching implications. those stories and more tonight on "nightly business report" for wednesday, june 27th. and we do bid you good evening, everybody. call it the moody market. stocks soared out of theth gate morning on word that the trump administration had decided not to limit or block investment in u.s. base tech compaes that

had substantially chinese ownership, but the morning euphoria did not las long and for whatever reason around midday technology and financial stocks suddenly turned lower and tued this rally upside down. by the close, the dow had aain of 285 points midday but by the close it was downth much mor that. a loss of 165 points t 24,117. the nasdaq was down 116. at where the technology stocks live and the s&p 500 fell by 23. bob pisani has more on today's topsy today. >> reporter: the rally fizzled out with 350 points trading range. traders having a tough time making sensef why i call the yo yo stock market. the white house backing off s of those harsh measures to restrict chinese investments in the u.s. the reality is, trade issues and a potential trade war are f from over. tech stocks wasted no time rolling over, so semi-conductor

names that would be -- utilities, consumer staples, they all closed higher. bank stocks haven't budged. that a record. goldman sachs, morgan stanley they're down 20% fl their recent highs. they're in bear market territory. these banks are getting hammered by fears of a flattening curve.y enid provide some relief today. oil is over $72. oil is a much smaller sector than banks and technology. we're coming u on the end of the month and of course the end of the second ioquarter. pe funds and other groups are likely moving around a lot of money. h they'ring to rebalance their holdings. for "nightly business report," i'm bob pisani at the new york stock and, by the way, today's strange market was just another example of what has bee an unusual year for stocks

mike san tolly has more on that. the initial spike in stocks follow the trump's administration to soften its stance towards chinese tech investment in the u.s. many investors viewed that as a deescalation of tensions between the world's first and second largest economies. kayla tausche has more on the latest white house position on trade. >> reporter: president trump decided to a expand existing tool to review foreign deals in the u.s. instead of writing n rules just for china. >> we're working with china now and i think hopully that will get straightened out. >> reporter: the move marks a signifant deescalation in a trade fight with beijing. it gives the treasury more power to review inbound investment that's might pose a risk to national secuty. commerce is now studying outbound transactions steven mnuchin says china will not be singled out. >> we're going to treat china the way we're going to tre

other people and to the extent that we were worried about transactions, we will block them but we are not goi to on a wholesale basis discriminate against china as part of a negotiation. >> reporter: it's a hard right turn from the white house's recent approach t china announcing tariffs on up to $450 billion in goods jt two weeks ago as trade tensions heated up. the president's economic adviser larry kudlow told reporters today there is communication detween the two countries and today's move sho solve the problem. for "nightly business report," i'm kayla tausche inwashington. so what exactly is the existing review process that tes ent plans to use when making some key trade related decisions? >> reporter: iestors who are worried about a trade war got good news today. the white housennncing it will use its current tools with enhancements that have bipartisan support in congress to restrict chinese investments hat they think threaten nationalsecurity.

this legislation amplifies the mandate of an organizationed ca sefius. up until now sefius it was narrowly focused on foreign buyers with the focus of protecting u.s. technology. in the past sefius it hasev rejectedal tech deals including broadcomes chance to bid. th now, among things, the k atnistration can also l joint ventures, ioth herethe asited states and overseas. the treury secretary is always the head of sefius and today he said china will be singled out simply because the u.s a has very large trade deficit with that country. ip there's widetisan support for this legislation. just yesterday, the house voted 400-2 in its favor. for "nightly business report,". so what is the potential impact of today's announcement andng theng trade back and forth on the economy and what happens if we make itor harder

countries to buy our goods. always good to see you diane, welcome back. >> thank you. good t>>be here. guess it must be hard to model this economically because there are so many -- the positions are changing as they work through the system in washington. what do you think? >> well, i do think this is a good first move, unfortunately, we know we don't have a lot of staffing at treasury so we don't know what the staffing will be. we already know the issue of trying to get exclusions for the steel tariffs, 21,000 applications wre some companies only get a foreign kind of steel that is no longer made in the united states and they've not been able to get through the bur rock casy of coerce because there'so staffing. part of the uncertainty out there, you can say you're de-escalating but it may not make a difference in terms of what the real outcome is because the decisions are slded down to too few people.

we're aow seeing domino effect. canada and the eu both fear chinese will dump their ste there that they would have dum p in the united states. where is this going? >> goodhey're all finally getting coordinated efforts. it is good to have aooinated global effort to deal with china. that said, some of the problems with both european steel and canadian steel is that it was coming through and gting into the u.s. through without the tariffs before the tariffs were on and being dumped here by via different routes. the idea was how do they delineate it onct gets there. even though they're putting tariffs on it, it's a wayo protect to de-escalate with the united states and have the united states takehe tarif off. you see -- we would like to sort of this be an end to problems and a drop in tariffs. we'll see much more tit for tat and this is a bad divorce where

pele keep upping the ante and hurting each other and they're losing money and hurting their kids. n there' a easy clean way to get out of a situation like this where you start escalation. >> if that is indeed the case, when do we start to seehe pact on some of the monthly and quarterly reports that we get from the government? >> the good news is the u.s. economy is so strong right now we've not seen a lot of impact, although we have begun to see it in the p.p.i. we've also heard the commerce secretary comment about how we'vead gotten a of ourselves. the prices of steel and aluminum wereun alreadyng very, very high, they're 50%igher in the united states. and that's because we've got markets front running the sears of tariffs and this what more tariffs down the road and this is where i think the complintion comes as w i try to model it, you get small incrctental ef your roads and purchasing power. you don't get the full out receion until you start adding d l these additional things that

are harto get your hands around modeling. >> well, it's a good thing you get to do that and we n't. thank you very much. >> thank you. speaking of the economy, the tradeeficit in goods narrowed in may according to the government's so-called advanced report. the deficit stood at nearly $65 billion. that's well below what wasd expected aro $69 billion. the trade gap in goods excludes services and the advanced report is viewed as an accurate reflection ofrade patterns because the services sector does not change much month to and orders for long lasting goods fell for the second straht month. softer demand for cars and aircraft sent durable goods ordered in may down 6%. despite the decline, the result was better than economi had expected. potential home buyers took a step back from the pricey and competitive housing market last month. fewer contracts to buy existing homes were signed and that sent

pending home sales down 5%. the expectation was actually for a gain. sales have now fallen on an annualized basis for fiv straight months. raising interest rates too quickly is a major risk to th economy, so says the president of the st. louis fed. he tells "the wall street journal" that aggressive monetary policy could pose a problem. adding he is tryin to push against faster rate hikes. to oil prices rallied tod their highest levels since 2014 on supply concerns. a repore from government today showed that crude inventories notched their biggest weekly decli of the year so far. some traders are also concerned about threats to sanctioned countries that do not stop importing oil from iran by november. the price of domestic crude settled above $72 a barrel sday. treme court today issued its final decision of the current term. the ruling w a blow to labor unions that could result in a loss of members and money.

eamon javers reports tonight. >> reporter: a significant decision tay in a blow to public blow unions. this is a cas that's all about whether public employee unions have the right r touire nonmembers who work for that public sector entity to pay unioes, even though they might not want to. mark janice an illinois state employee decided he didn't want $45 a month out of his paycheck for that union and t decided e that case all the way to the supreme court. today the supreme court siding with mark janice. the court deciding that 1977 president doesn't apply any more saying we conclude that the public secto agency shop arrangements violate the first amendment and - the court also going on to sympathize with the unions who will suffen enormous loss of revenue potentially as nonmembers decide not to pay those union dues. we recognize that the loss of payments from nonmembers mca e unions to experience unpleasant transition costs in

the short-term a may require unions to make adjustments in orde to attract and get adjustments. we must way this against the considerable windfall that the for the ve receive past 40 years. it is now over ruled. a significantry vic here for federal employees who don't want to join a union and don't want to pay union dues in a defeat now for federal employeens un for "nightly business report," i'm eamon javers at the supreme court. and also at the supreme court, justice anthony kennedy announced plans toiv retireg president trump a chance to reshape the high court. kennedy was the swing vote on a number of key decisions and authored landmark rulings on gas ri, the death penalty and campaign finance. > time to take a look at some of today's upgrades and down grades and we begin tonight with general electric which was upgrade today perform from underperformance. the analyst cited the company's segment which f

we reported yesterday. the firm also says that ge strategy could unlockalue and diminish liabilities. the stock rose more than 1.5% today. it closedt $13.96. meanwhile yum brands was upgrade today buy from neutral at btig. the analyst cited recent stock weakne the potential benefits from its investment in grub hub. price targe now $92. that stock fell more than 1% to $78.87. pharmaceuticals is being added to cities u.s. focuslist, the analysts site a favorable risk/reward prospects. the price target is $27. the sck rose a fraction to 23.64. raising itsamerica price target on netflix to $460. the analyst is prediing that netflix will reach 360 million subscriberby the year 2030. the firm maintains its buy rating on the stock despite the price target, the stock fell 2%

to 390.39. still ahead, sticker shock. why toyota is warning that the price of every vehicle it sells here in the united states could rise. the justice department has approved disney's proposed $71 billion acquisition of 21st century fox's assets. the deal does come with some strings. disney has to sell off1s century's fox's 22 regional sports networks as a condition r the green ght. disney has been lock nad battle with comcast over those assets and comcast has reportedly been exploring partnerships with private equity firms just in case it needs to raise cash for a possible higher bi comcast is the parent company of

cnbc which produces thispr ram. today 21st century fox rose while disney and comcast were down on the first, it was north korea's kim jong-un and now it isir vladputin. the white house announced today that president trump will meet with theussian leader in a one-on-one summit in an attempt to work on relations between two countries. the exact date and location is to be expected ao beounced some time tomorrow. toyota has a warning for the tors, consumers and white house. the automaker today said that a 25% tariff o automobiles would increase the cost of every vehicle sold in the u. now that echos a statement from the auto industry that we told you about sterday. the alliance of auto manufacturers which includes both americangn and for automakers says a trade war will lead to widespread jobnd cuts price spikes in show rooms. phil lebeau has more. >> reporter: ready for sticker

shoc 25% tariffs on imported vehicles will lead to buyers paying a lot more. the average price will jump about $5,800 according to automakers. they warnl sales w plunge by up to 2 million vehicles, which could ultimately lead thedu instry to cut 195,000 jobs. >> this will unleash if c ites about a real trade war because the n abers just so much biggr:. >> reporteor the auto industry, tariffs could kill one of the longest, most successful periods it ever experienced. gm and fiat chrysler have gone from bankruptcy to record ofits and auto manufacturing jobs in the u.s. have rebounded to precession prices. president trump wants europe and china to lower tariffs on the models being shipped overseas for the 7 million cars and

trucks being imported to the u.s. could be slapped with hefty tariffs. >> it'll raise price dramatically for consumers in the united states. it will be uninflationary. ultimately it will slow down sales. >> reporter: right now, those buying a new car or truck areyi on average just over $32,000,hich brings up the question, how much more would americans be willing to pay for a particular model if the price suddenly spiked due to a border tax? a couple thousand dollars, $5,000? it's a guessing game the auto industry is hoping it won't have to play. phil lebeau, "nightly business report," chicago. general mills is cutting obs and that's where we begin tonight's markefocus. the maker of cheerios cereal said its going te eliminate m than 600 jobs by next spring as it looks to cut costs while sales of his yurt continue to struggle. a company did report anncrease

in its fiscal quarter but earnings fell and general mills did give upbeat guidance for the next fiscal year in 2019. shares fell by 33 cents to 45.73. dellin said r jet fuel prices are likely to add about $2 billion i t its expenses year. the airline slashed its second quarter profit outlook raising fuel cost 49.89. and we told you last night that the company's were in advance talks and today ca nagra did indeed that its buying pinnacle foods for $11 billion. the deal between healthy choice owner and birdseye parent pinnacle creates the nation's second largest frozen foods companyehind only nestle. the announcement left a bad ste in shareholder's mouth. pinnacle was off 4% to 64.95. susan? shares of world wrestling

entertainment took off after announcing new multi million dollars tv deals. the five year deals to air the company's flagship wrestling shows are with comcast, nbc univsal and 21st century's fox's fox sports and they're more than triple the size of wwe's current contract. they were up 6% to $70.85. and after the bell, bed, bath & beyond said earnings beat wall street expectations. me store sales did not. they fell more than half of a perct while the street was looking for a slight gain. shares initially fell after hours wiping out a fractional gain from the regular session ehere they close at $20.18. here we nearly halfway through 2018 and the year so far on wall street has been anything but usual. mike santoli takes look at a strange year for stocks. >> reporter: the stock market this year has taken an

extraordinary route, pretty routine destination. firs the extraordinary part in the first three weeks of 2018, the s&p 500 rush today its best january in 31 years. then it suffered the0% fastest drop from an all-time high in 90 years. this dramatic reversal has been followed by an unusual long and labored recovery process which is lasted nearly fr monthsnd is so far recouped half of the winter timemble. with all that drama, the s&p is sitting on a slight gain for the year and it's set to give an annual return of 6%. that's after a gain of 20% in 2017. perhaps the market's modest eogress has seemed l more of a struggle because of the economic and corporate news has be s good and hasn't been fully embraced by investors. corporate earnings are on pace to grow 20% and gdp has a good chance to expand at

quarter. restraining stocks, rising interest rates, threats of an all-out trade war, sharp slowdown in overseas economies and fears that this year's growth could represe a tax cut sugarighollowed by rude payback in 2019. mds also some unease about how uneven theket action has been. only two major industry sectors have a outperformedad the b market and stock markets in the rest of the world have lagged badly. re's good news in the u.s. markets in the first half of this year, it's the way stock valuation haves come down lofty january extremes. this period could be seen as a helpful reset in v auation investor expectations that could help extend the life of the bull mark even if it feels a bit less exciting and more treacherous tha it did jus five months ago. tly business report," i'm mike santoli. can a quintessential american brand ride out a political storm?

in kansas city, missouri, i'm morgan brennan. in the american icon cross hairs of the bigger global trade debate. we look athe rough road for harley-davidson coming up on "nightly business report." listen to this. a s figure salary in san francisco is now considered low me. that's according to new figures from the department of housing and urban the threshold to qualify for low income assistance for a family of four is now $117,000. the highest in the nation and in may the median homerice in the bay area hit a record $935,000.

lyft is beefing up to bitter competethe likes of uber. the ride hailing company has now rais $600 million in new money from investors and get this, that now value that's company at $15 billion. that is double the value from just a year ago. uber plans to go public sometime next year, but lyft's ideal plans are less certain right now. harley-davidson has come under fire from presidentterump announcing plans to move some production overseas. one plant in kansas city is set to close this year with union reps saying plant operations will move to thailand, a move that so far harley has denied. our morgan brennan went there for us today. >> eporter: harley-davidson is rare company. they produce a truly iconic american product largely made in america that global consumers want to buy. when the eu wanted to retaliate against u tariffs on metals

they slapped a tariff on harley's imported motorcycles from the u.s., because, it's an american eye con. now harl a'snnouncing it will move the mufacturing abroa due to those tariffs. the decision drew the ire of president trump including a tweet today to criticize the move. harley-davidson should stay 100% in america. the people tt got you your success. i've done so much for you and then this. ne te is pressure the shares of harleyhis week and stoked sactions from other officials as well as includive mnuchin. >> i alsoen to the president talk about tariffs o motorcycles and he's been a big, big advocate of harley-davidson and american products, so i don't know why harleddavidson woome out and now say they're moving production. we've been fight to go lower their tariffs all or the world. >> reporter: harley's troubles started before this trade spat. olderoomers have gotten and as newer generations haven't

shared the same zeal. it alsdded manufacturing in markets where demand is growing, brazil, and later thailand. the factory behin me is scheduled to close next year due to the need to consolidate amid those falling u.s. sales. 800 employees work here and some of those operations wil tbe shifay pennsylvania, but only 400 jobs will be added there. employees here are sorry to see the work and the harley-davidson name leave town. >> it's an american icon, you know. they're supposed to be built here and everything, so really, we should just continue, you know, regardless ofow much money they can save because you know what? when you're number one, tt's all that counts. >> reporter: harley-davi ton tells ust the closing of the kansas city plant opening in thailand are not related. it's simply to avoid tariffs imposed by the eu on motorcycles it sells specifically into that

market. regardless of why the move to produce more overseas had manifested, for hundreds of employees here, the closure of this plant will mean not working for an american icon that's long been beloved. for "nightly business report," i'm morgan brennan, in kansas city, missouri. and before we go, a look at the topsy turfy day on wall street one more time. the nasdaq was down 116, the s&p down 23. that does it for us tonii't. m sue herera. thanks for joining us. >> i'm bill griffith. see you tomorrow.

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