report" with sue hererand bill griffeth. >> this new deal will be the most modern, up to date, and balanced trade agreement in the history of our country. >> a new nafta. the u.s. reach as deal with canada, alleviating investor fears over global trade. c sweet shakeups, from the surprise exit of ge's ceo to the orderly transition at goldman sachs. some of the biggest companies in the world are ushering in n eras. attacking cancer the nobel prize in medicine is awarded for work in one of the fastest growing segments of the otech industry. those stories and much more tonight on "nightly business report" for this monday, october 1st. good evening, everybody. and welcome. the first day of the fourth

quarter started with some big gains for blue chips. concerns about global trade were put on the back burner when the u.s. s an 11th hour deal with canada on a rehe vamped srade deal. the agreement scr the nafta name and was inked just before midnight with just enough time to get it signed before the newly elected mexican president tas office. the dow jones industrials average advanced 192 points, the nasdaq fell nine, th s&p 500 was up ten. ylan mui has more on the trade deal that put investors in a buying mood. >> reporter: president trump took a victory lap in the rose garden to touthis new deal. no longer nafta but the usmca and his use ofariffs to force countries to the table. >> without tariffs we wouldn't be talking about a deal. for those babies out there that keep talking about tariffs. that includes ngress. oh, please don't charge tariffs.

>> repor r: the agreement oum .open us a slice of canada's dairy market u to the. it also boosts the amount of north american components in ca to 75%, and requires that some of these workers must be paid an average of at least $16 an .ho it also modernizes the agreement that took effect about 25 yearsf ago,e the advent of the digital economy, giving pharmaceutical companies exclusive marketing rights on buyio logic drugs for ten years andut bannings on e books, music, video, and software. not a part o thi new agreement? steel and aluminum tariffs. those remain in place but are being negotiated. and the deal ends the uncertainty that president trump would slap tariffs on auto imports. >> wt we we able to negotiate with the americans on this is protection for the canadian auto industry and auto parts industry from 232 measures on autos that the president could -- might move with. rd >> mexico and canada have a

60-day window to negotiate with the u.s. if the president were to slapariffs on autos but the threat is much lower as the new trade agreement moves into the next gting to and through congress. ylan muisi "nightly ss report." >> in response to the trade deal riseakers saw their stocks as did railroad shares on the dea that goods will be able to freely flow between countries put tariffs. as we said, today saw some big changes in the c suite of some very big companies. we start with dow component pfizer where ceo ian read will step down in january and hd er the reins of the largest u.s. drug maker to ar bertd bourla. prior to being coo, he led the health business. read joined pfizer in1978 and has been ceo for the past eight years. during his tenure the company

dn 30g approvals. on the news the stock rose a fraction in today's straye fellow do you component goldman sachs also has a new executive in the corner office. david solomon today took over for lloydfein who has served as ceo since 2006 and will stay on as chairman. one of the biggest challenges facing solomon isinding ways to increase revenue. the shares rose a fraction on his first d as ceo. now to former dow component general electric, which stunned wall street and investors first thing this morning with news of the sudden departure j of ceon flannery. the reason? missed targets. and the realization that problems at its power business would hit profits and cash flow for this whole year. investors cheered the move and th man replacing flannery. the former ceo of dene her, larry culp. the ceo maybe new but ge is facing a lot of familiar

problems like jack welsh and jeff imel before him flannery was a company veteran having spent 30 years at ge, but his 13 month run as ceo saw the stock decline by half.am culp to the board in april. hean a maker of life sciences equipment for 14 years.in im in charge, dannaher's stock gained or160% than four times the spp's gain over the same peevod. with ge's poor performance this year it is a stunning and unexpected mo t. >> people that are there are some of the very best people in the world in gineering, science, and math. s that jolt to them now. they are going to need to be feeling that they are valued, a really value not going to be taken advantage of in any way for quick decision.

>> reporter: quick decisions may be in order. today's move comes with news that ge is also taking a $23 billion write down i its power unit a division that incdes frances abilitiesham a move thak red as global demand for power generation fell. o a wants to shrink its health manufactung program further and reduce its ake in baker hughes. an oil field service. >> has been overpromising and upped delivering for quite some time. >> reporter: there were questions about avant wcuch was in half a year ago. where ge is going and what it will look like is unclear. >> it was not the market.ing to what is the clear vision of what is the new ge going to be, i don't think that's clear to

anybody. it.'s part of i think it is a huge disappointment of course to investors. how long do you let somebody twist on vhee? 13 months is a pretty short window. >> let's tornado now to joshua aguilar for more on the management shakeup at ge and what h thinks it means for stock. he is an equity rmp analyst over at morning welcome, nice to have you here. >> thank you so much for having me i really appreciate it. >> in reading your report you are kind of cautiousl optimistic. you approve of mr. culp going in. what does the timing o all of this mean to you? >> you are correct. i mean, wculp think is the right man for job. i think the timing is simaty the board was frustrated with the pace of progress. they are basically sending out a signal to the margaret that everybody is accountable, even the s o. >> whate biggest issue now? culp faces right how long do you think it takes to fix? >> there are two big issues right now. ge power, you know, they are

going to have to continue with thecostout. i think one of the things they need to do is have a conversation with russeltokes and say where is some redundantt int, where are the extra expenses and how do they becom for efficient. and the second portion is ge capital and getting capital off the books. >> a lot of people you bought ge forrer the dividend. it has been cut. do you think the rest of the dividend is safe or not. >> even with the reparations ealth care companies pay out less than industrial. it would be cut even if flannery was still in safe n it i safe. >> the plan as it stands now is to spin gef.ealth care do you think that is still in the works? or is everything on the table right now? >> i thinkg,enerally speak the idea of keeping aviation powerroenewables isbly what they are going to stick to. that being said, the particulars and how they execute that plan

mighting odd. ge cast that's rumored to be on the block. if they can do a comcomposite deal where they get rid of ge casse and some of the lights on there even though it is a good business andn aviat that's a possibility that guess along with aviation. >> if you are an investor with a long term time horizon, is this an entry point in the stock or do you thinkt needs to lower? >> i think right now at our four-star we are saying i can be better than the market. but at a five starr pricehich is where we pound the table. it's 942. that's what we are saying, you would be gettingat an health care and that's what you would be paying for. liabilities the you would be getting the rest of the businesses for free. we think it is an attractive set play but at the time not a pound the table barringon for us at this time. joshua aguilar with morning star. >>la shares of t surged more than 17% today.

elon muskweekend ceo agreed to settle with the sec overat allns of making false and misleading states that affected tesla's stock. late last week you might remember that musk rejected a proposed settlement and vowed to hight the federal government. as pl lebeau reports right now musk is now dropping that fight andgreeing to changes at his company. >> reporter: tesla's ceo elon musk has decided it is better to settle with the sec than to spend months in court and risk getting banned from being ceo of his auto company. instead he gives up being chairman for at least three years and the automaker has to addwo new independent directors. in addition musk and tesla will pay $20 mlion fines and the company must ensure there is oversight of musk's communications. that includes what he puts on twitter. so teslaill now be expected to keep musk's tweets in ch tk. >>nk that he may be

tweeting as much. but what they are trying to do is to makeure that there is oversight of substanti tweets. >> reporter: with the sec investigatio over tesla and musk can focus on three key issues, first growing model 3 t deliveries meet loft eexpectations. second can tesla finally turn a profit as musk as promised. finally, will tesla need to raise more money as it expands eserations? analysts believe can clear those hurdles with musk remaining in charge of the compan >> having him remain ceo is critical. because the company essentially is at war right now, war in terms ofti get to profitability and producing model 3s at a scaleable rate. >> reporte if tesla can successfully ramp up production and sales it could be on the cusp of sustained profitability. yet one more reason elon musk's settlement with the sec is critical tohe automaker's

fure. phil lebeau, "nightly busichss report,"ago. it is time to take a look at some of today's upgrades and downgrades. intel was downgraded to underweight from call weight at barically's. the analyst sites the risk of a price war wit rival amd. the price target is 38. the stock fell 1.5% to46.45.ip le was ground graded at oppenheimer. the analyst says wall street i too optimistic about earnings. the price target is $400. the stock fell more than 1% to 446.97. >> ups was upgraded. the analyst cited the prospect for improved margins at the k. price target now the stock rose a fraction to $117.46. teva was group graded to market perform from underperform. the analyst cited improving

fundamentals. price target $24. the stock fell a fraction today to $21-46. still ahead as we enter the final stretch of the year will the rally inech stocks heat up or start to cool down? price. oil hit its highest level in four years today in part because sanctions on iran are starting to shrink the world's supply. prices also rallied on the trade deal between the u.s.nd canada. the trade dispute had raised fears of a slowdownwt in g that could impact oil demand. so prices in domestic crude settled above$75 a barrel today. the trump administration is close to finalizg a measure that would ban bump stocks.

bump stocks are devices that allow semiautomatic weapons to fireike a machine gun. those comments sent shares of the gakers lower, including american outdoor, rest roombeer and vista outdoor. the fourth quarter is typically the strongest of the year for the broader stock market. and so far, the tech sector has been therm best perg group of this market in 2018. but what happens when the two go in opposite directions. josh lip ton takes a look at what liesha ahead for sector. >> reporter: the hottest sector so far this year could stay that way even after an 8% gain in the third quarter. since 1989 t tec sector of the s&p 500 on average has risen more than 6% in the fourth quarter and it's been up almost 80% of the time. that's the strongest performance of any sector in the index. >> i think it's because of two things. on something called budget flush where if you don't spend it you will lose it next year's

budget.on and secd the holiday spending. let's b all the latest gadgets for the upcoming holiday season. >> reporter: but some of the fastest growing tech stocks aren't tech stocks ib him in. neighbor, alphabet and netflix have been moved to a new communications services sector by s&p. ch investors will have to rely on the tech companies that remain in the sector, apple, microsoft, and cisco, for growth. nfident.lls remain they argue that tech will show relatively strong earni growth of about 11% and revenue growth of more than 8% in the year ahead. he says there are risks that investors should keep in mind, specifically whether companies really report the earnings growth that's he says that could be impacted by tariffs on imports from china, and chinese retaliatory tariffs on u.s. exports. chip maker micron recently said the combination could reduce its gross margins by more than 1%.

decide these risks many say the tech momentum can continue. for "nightly business report" i am josh lip n, san francisco. cal farms food lowers dividends. it announced the cut after it reported a weaker than expected returno profit and disappointing sales. the company also warned that an expected increase inhe egg supplies could cause pricing pressures. that sent the them lower. groupon agreed to pay ibm $60 million to settle claims hat it used the compute maker's patented e-commerce technology without permission. shares of groupon rose more than 2%o $3.87. meanwhile, ibm shares were higher by 1% to $153 even. after the bell the online

shopping servi stitch fix said it added fewer than expected sub virs in its latest quarter which resulted in a revenue miss. the companyowever did top earnings expectations. shares were initially hour in the after-hours although dee ended the regular day up nearly 2%o 44.63. >> a delaware court has ruled that a german medical supplies company can walkway from its proposed $4 billion acquisition of acorn arm suitcals. in april, this company from germany ended the merger with acorn because it said acorn failedse to fulfilral parts of the deal. acorn plans to file a petition. small cap drug maker omeros released positive findings in tria of experimental treatment of a progressive kidney sease. however, it was later revealed

that the patients who received the drug had essentially the same result as patients whoce ed a placebo. shared well to $13.96. the nobel prize in medicine was awarded t two cancer immunotherapy researchers. immunotherapy unleashes the body's immune system tottack the disease. the award was a surprise to rearcher james allison. t after many years of resistance, i thi cancer immunotherapy n as t fourth pillar along with radiation,y surg and chemotherapy of cancer therapy. >> the other winner is based in japan. certainly immunotherapy is one of the faste growing segments in the biotech industry. and until this breakthrough, cancer treatment mainly consted of rgery, radiation, andem

a senior analyst from credit suisse joins us to talk about the growing market. how big is this market? how big is itng go come do you think? >> thanks for having me. very interesting topic. looking at the numbers thisear immunotherapies on the market right now, they are going to make $15 billion in combined sas this year. we do estimate the entire immunotherapy market to be as big as $40 billion or more six, sevent five, years from now. but it is still very much the early days and lot ofop rtunity for this to expand into a lot of other tumor types. >> you point out it is already being used ineople with melanoma, kidney cancer. but lung cancer you think provides perhaps one of the biggest markets? me>> from a cial perspective i think that is correct. i think we have seen maybe more dramatic scientific advances in other tumor types but lung cancer beingom such an

cancer, usually diagnosed when it's advanced or taatic so it can't be easily treated with surgery lends it self toia potey chemotherapy radiation and now with munotherapy it is a huge market opportunity and we have seen impressive data over roop years as using this as a first find treatment when people are first diagnosed getting theme on these therapies. and many are living for years now. >> i am curious for people watching saying maybe i would like to invest in companies that canit from immunotherapy, what do you tell them? >> yeah, i kin of go back to this is still early days. welaill see how things out. the leaders on the large side are merck, bristol-myers, astrazeneca, roche, pfizer,

krga. there are others tryingo get in the space. merck and bristol are leaders. but there is approach to buy many of these companies and certainly there are dozens and zens of companies that have one product that ends up working. is tough to say there is one approach that's going to be the be all end all because it is fairly early but there is opportunity ahead of us. >> promising.fo thank yojoining us tonight. appreciate it. >> thank you so much. coming up, the growing krutd me on the the stvertising in.

here's a look at wha to watch for tomorrow. a look how at how auto makers fared lasonth with the release of september car sales a. number of fed officials, including the chair, jerome powell will make comments on the economy. and pepsico will release its last earning report under their outgoing ceo. that's what to watch for on tuesday. in other news, california has become the first stateow to require publicly traded companies ton include women their boards. this new measure calls for at least one fale director on the board of california-based firms by the end of next year. by 2021 companies would t need have three female directors depending on the number of seats. governor jerry brown acknowledge tin addition law may raise legal issues but says it is a good first step. facebook faces a potential $1.6 billion fine in o europer its recently disclosed data breach.

regulatorsre looking to see where facebook violated the bloch's new privacy law and asked for more information on the scale of the attack. hackers compromised the accounts of more than 50 million users. >> that sidebar he breach was one of the issues raised during this year's ad week. julia boorste aye reports. >> reporter: here at add week facebook told advertisers and brands they are doing everything they can to protect users. >> the ceo of one of the warld's largest ad conglomerates saying they are watching how facebook handles the issues. >> i think facebook will fix it. it is a vulnerability they have to address. it is an embarrass men.

there is no question about it. frankly if they don't pick it then i will see a reduction in spend. >> reporter: ad consultant lee media links, clients some of the biggest brands in the world are ctching the drip of news around facebook'sllenges as well. >> it's having impact. and advertisers have reason for pause at this moment to say i need to make certain the information right, t data is direct, we are not being subject t breach, all of those things will have paimct. >> reporter: in addition to fable and ogle, which dominate the digital ad market there are more options for brand. out in force here at ad week, touchdown's new ad tech division zander here showcasing its reach in capabiliti. and the brand's safety of its premium content. there is also a lot o talk here about amazon, a rising super power in theer asing market. projected to become the third largest player in theig u.s. add ad market this year allowing brands to reach consumers when

they are already interested in making a purchase. a significant part of e-commerce searches start with mz. therefore by definition they are a force that you have to deal with. i think they will be a threat in tes of the reach and the target marketing that reflects the environment that we are in nowsi u data to reach those consumers. >> reporter: all this comes as the ad agencies reportedly face investigatio are receiving perks they are not passing along to clients. ipg's ceo saying no comment but that they have structured their business so they don't have any of these issues. media link says this addedsc tiny couldn't come at a worse time. >> i think it is the model that needs to be more agile, more willing to be flexible and understanding that there is a challenge not only from that and certainly thebi announcement of last week certainly ruffled a couple of fetters. >> reporter: with more ability to buynd target ads with

automated ad tools the folks a e are trying to adapt to world where data is an increasingly important way of reaching conmers and protecting user data is even more important. he before we go a look at final numbers from wall street. the dow advanced 192 aspoints. theq fell 9. the s&p 500 was up ten. happy october. >> pumpkin time. that will do it for us tonight i'm sue herera. >> i'm bill bill. have a wonderful evening. we will see you tomorrow. . have a wonderful evening. we will see you tomorrow. . . have a . have ag. have r. a

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