>> announcer: this is "nightly business report" with sue herera inside intel, and it's not lookg pretty. the company reported disappointing earnings and it's nacing the blame china's slowing economy. miles apart.om therce secretary says the u.s. and china are nowhere close to securing a trade deal, just days ahead of a critical meeting with cnese officials. back to the drawing board. two senate bills to reopen the government failed, extending the shutdown. those stories an more tonight on "nightly business report" fo good evening, everyone, ande ome. b bill griffeth is off tonight. today was a classic example of the tug of war between rnings, trade and the partial government

shutdown. tonight we begin with earns. intel reported revenue below expectations and forecast more of the same for the first quarter. profit will also come in below estimates, adding to concern that china's slowing economy and the trade war are impacting the tire semi conductor industry. here are intel's numbers. the company earned $1.28 a share, 6 cents above what was excted, but revenue missed expectations, coming in at more than $18 abillion, that sent the stock sharply lower in initial after-hours trading. joshre lipton has n intel's results. >> $9.8 billion was b one number in intel's report and refers to revenue that the ccg unit generated or chips for pcs and modems. chris roland said that was a disappointment with the company pinning the pressure on weakening mobile demand from ho apple,s a customer. dcg revenue was weaker than expected, chips for servers. cloud customers are not spending

chips.h on new it has growing opportunities in memory and networking markets. for "nightly business report," i'm josh lipton, san francisco. now to trade, which kept a lid on the dow's gains and resulted mn aed finish for stocks. the dow jones industrial average fell 22 points to 24,553. the nasdaq rose 47 and 500 added 3. it was comments from the commerce secretaryn trade earlier today that rattled investors. they came just one week before chinese officials are set to arrive in washington for negotiations. kayla tausche reports. >> commerce secretary wilbur may says the u.s. and china still be at odds over what a forthcoming trade deal looks like. beijing is willing to buy more soybeans and natural gas, washington wants more permanent changes. a>> we're miles miles from getting a resolution, and frankly, that't shoul be too rprising. trade is very complicated.

>> at the white house later, national economic council director larry kudlow ted to clarify that remark, while acknowledging there's still a lot more work >> the scope of this thing is so grand, that's a good thing cause we've never beeo comprehensive. on the other hand, we have miles to go before we sleep. china, however, is optimistic. at the world economic forum in davos, top regulatory official saying he believes president trump watches the stock market and doesn't want it to drop. in recent weeks, the marketas h risen on news of a truce between the countries at the g-20, butn since t advisers have said they don't want to lose the opportunity to press china to igke long-term changes. as the trade with china lingers on, house republican allies wanting to arm trump with more tools. >> they're more of a bludgeon an a scalpel. >> unveiling a product that would let him put tariffs on countries wh the stroke of a pen. >> i'm a free trade guy, i don't

like tariffhe whenresident says this tool is necessary and mr. lighthizer says i need this tool, i want to give them the n fight ande ameri the american future. >> but it's e near futur that has investors worried and they are not viewing next week's meeting with china as the end of the road. i'm kayla tausche in washington. also in washington, some movement late today on the shutdown. president trump said he would support a funding billen ife leaders mcconnell and schumer came to an agreement. this after te sen failed to pass two bills to reopen the government. ylan mui is on capitol hill for us tonight. the bills failed today but the two sides are talking. there's some late developments. handicap for us what you think is coming next? >> reporter: it does look like there is some real movement here on capitol hill. we saw chuck schumer justwa as leaving mitch mcconnell's office. reporters tried to ask him questions aut what they we talking about and all he would

answer is we're talking, we'reg talke're talking. now, the president, again, as you said, seeming to sugge that he would support any sort of compromise that these two republican and democratic leers could potentially reach. but the president did include an important caveat ther he said he would support any reasonable agreement. so theem questionns what is a reasonable agreement for the president. we just don't know south carolina senator lindsey graham said that he has some indication of what the president might support. he said that democrats need to accept the fact that going to need to be money for a barrier of some kind, it won't be a concrete wall, but there n wid to be some sort of border system funding. other than that, could the government potentially open for three weeks to give leaders tim to hash out these bigger, th?nier issu we'll have to see. certainly a lot of discussion and sort of movement percolating here on the hill. >> it all comes as the public

pressure seems to be mounting on both sides of the aisle, and we're hearing a lot of stories of furloughed federal workers who are having a very difficult time making end meet. some of them are not making ends meet. is some of that influencing the move to perhaps try to reopen the government on temporary basis? >> reporter: i think that lawmakersere have been hearing from their constituents. they have seen the protests here in washington and across the country fro workers who are now going to be facing a second missed paycheck once itomes to friday. this is already the longest shutdown in american history. neither side wants to carry this sort of mantle much longer than they have to already. >> indeed. ylan, thank you so much. ylan mui on capitol hill. wellt the imp of the shutdown was on the minds of business leaders who were gathered at the world economic forum for its annual meeting in davos, switzerland. >> it's extremely negativ if is shutdown depose on much

longer. firstly at a human have 800,000 families affected by this. this is just not the way tul u.s. sbe working. and i truly hope the leadership of both sides com w to some of resolving what seems to be a relatively straightforward problem. >> certainly if it were t sustain itself, it would be a very high concern. it is a concern for all of us. we want our government operating. i haven't seen yet a big impact on the business,he category sizes, but do i think it will over time? certainly if it would wextend. do a lot of filing with the fcc and it is slowing down ipos and tax refunds. as far as reducing the gd in the long term i think there are bigger issues. the thing it does is undermine the confidence people have in the government the next two year >> it's n hitting us as much but it is hitting some of our customers. to me that's probly the worst. you don't know in the middle income and lower income how it's affecting us. >> it's not yet having a major

impact. if it does a few more weeks, it will. especially for companies that need to raise money if they wero ting on the public markets and can't do that. >> one industry caught right in the middle of th shutdown is the airlines. despite that headache, a number of them reported better-than-expected earnings and gave ear upbeat forecast for business this year, sending shares of american, southwestue and j higher. phil lebeauor has me from ft. worth, texas >> reporter: these are teresting times for the airlines. on one hand, business is strong. american, southwest andetblue all reported better-than-expected fourth quarter earnings. on the other hand, the government shutdown meansats agents, air traffic controllers, and some in the faare working without pay, so the industry is feeling pressure. >> there is a risk that air traffic will have to be slowed down, because they will befe they do a phenomenal job managing our airspace and the

will be safe, but it may not be very efficient and it certainly puts lot of stress on the people there. it is a crazy way to run our country, absolutely tesurd. >> rep the impact is noticeable. southwest is delaying the start of service to hawaii because the faa cannot certify its planes. alaska airlines is awaiting approval to start flights into a new airport north of seattle. and airlines like delta are flying fewer government warrior and contractors, means they bring in less money. still, airlines see no slowdown in the number of people looking to fly. the outlook for the economy remains robust. >> was we go to 19, fuel price moderate a little bit and demand for air travel remains strong, business and leisurti we connue to see record ve renue. >> reporter: with jet fuel prices still in check,his is a good environment for the air industry. the challenge forarriers is adding more flights so they can not their business, while

flooding the market with too many seats that could spark a fare war. that's a tricky balancing act that will determine the airlines do in 2019. phil lebeau,ss "nightly busi report," ft. worth, texas. let's turn now to gary bradshaw toboalk more the airlines and how everything from the shutdown toeil prices impacting that industry. he is the portfolio at the hodges capital management. welcome, gary.ic it's that have you here. >> thanks for having me, sue. >> we did hear from southwest this morning that the shutdown so far cost them between $10 to $15 mi what is the impact going to be if they can't come to some agreement in the next o couple weeks? >> well, sue, certainly there's plenty of concern from these airlines' executives out ere. and the fundamentals, though, as phillluded to, are extremely strong for all the airlines right now. but as this government shutdown goes on, it will certainly

impact and it will slow down security, affect the passengers, what have you, so the longer it goes, the bigger the impact to the airlines, to their earnings. but today the fundamentals remain extremely strong for the airlines. and at the hodges funds, we think the airlines are some of the cheapest stocks in the s&p 500. >> and you own -- you own southwest, american a delta. and you think lower oil pricese also hiven them a bit of a tailwind, right? >> no question. american said today they'll sav8 million this year on jet fuel. it's really a tailwind to all the airlines out there. it will help themncrease their margins, help them drive nd earnings, the fundamentals are excellent, as we heard

earlier, with passenger travel strong and the business travel is doing exceptionally ll. so barring this government shutdown going much, much or the trade issues, if they got resolved, wehink 2019 will be a great year for southwest, delta and american. we think thetocks are way too cheap. >> you say the biggest risk perhaps to the airlines if they see all this customer demand and increase capity by too much. >> well, that's right. there's some capacity creep that takes place right now. as these airlines are replacing their older jets with fewer seats, like southwest, they're ding the 737-8. there's more seats there, so capacity isoing up. you don't want too much capacity coming into the airline group because it will drive dprn

es as these airlines try to fill up those seats. so there r al fine line in there. but we think the airlines in the last few years, sue, have gotten disciplined. they're smarter. they want to keep those airfas and business strong. so we think they'll be prudent about it thisyear. >> we will keep track of it. thank you so much, gary. garyth bradshaw wit hodges capital management. it is time to take a look at some of today's upgrades and wn ades. sotheby's was downgraded from market perform to outperform. the price target is $44. the stock fell 6% to $38.56. palo aetorks was upgraded to outperform from neutral at webb bush. the analyst said the growth outlook for 2019 is robust despite concerns aroundroduct strategy. the price target $265 the stock rose 2% to $210.47. still ahead, trade tensions

ripple through theelican state. >> the commerce secretary says we're miles away from a solutioa on the war with china. i'm contessa brewer in the state of louisiana. coming up on "nightly business report," why this state has been hit by tariffs particularly if union pacific is any indication, the economy is still growing at a solid pace. the railroad operator reported better-than-expected quarterly profit helped b an increase in volume and pricing, and said its improved efficiency will drive profits throughout the year. >> a lot oful our r in the fourth quarter were specific to the union pacific team doing a

tremendous job of improving our productivity and our service levels. so we're exiting the year on a very good foot and entering 2019 with a bit of optimism i terms of how we're running the network. >> the results helped lift the stock more than3.fiv5% in tradi today. people like their coffee and ofarbucks is benefitting. thee chain reported better-than-expected earnings and issued strong guidance. they earned 68 cents a year c threts better than wall street's estimates. revenue climbed 9% to more than $6 billion and investors cheered those results. kate rogers has the one key takeaway. >> another strong quarter for starbuce company beat on every metric on same-store sales with global growth at 4%.es same-store s in the americas up 4% fer the second quan a row. that's a key metric for wall street. sales ithe china, asia pacific

region grew by 3% and china in particular up by 1%. nuslyn breuer said growth was due to contied streamlining of worker tasks during store hours so they can focus more on customer interactions and increase consumer scores. another takeaway, cold beverages sell eve in the winter. she highlighted icend teas refresher drinks during the quarter. for "nightly business report," i'm kate rogers. mccormick's outlook is lacking some spice. that's where we begin tonight's market focus, the seasonings company reported earngs and revenue that missed expectations. it was hurt by the retailers stocng fewer high margin holiday products. mccormick's also issued a disappointing profit forecast. the stock dropped about 11% to $124.35. bristolil an hours squib topped expectations. it is withdrawing its application for a lung cancer

therapy involvingts drug opdivo and that send shares wer. a utility cleared california pg&e of the 2017 tubbs fire saying that blazert was s by a private electrical system. the company has beenpr under sure from mounting liabilities related to that fire as well as the wildfires of last year. the official cause of the 2018 fires has not yet been determined. shares took off and rose 75% to $13.95. copper and gold miner and revenue came in shy of wall street expectations. the company cited a drop in copper prices and is forecasting a double-digit decline in copper production this the shares fell 13% to $10.70. > ford is commenting on the brexit situation in europe. accoing to reuters, i the uk leaves the european union without a trade deal, it could

cost the automaker up to $1 billion. such a deal would result in the tariffs.tion of the devaluation of sterling, and a deteriorating enomic outlook. its current planning assumptions including aexegotiated . a bit earlier in our program we talked about tariffs, and they a taking a particularly harsh toll on the state of louisiana. contessa brewer is there tonir:t. >> repor as daniel rishard surveys the ruinsis of louisiana soybean fields, he ponders the future for his son. the family has been farming this land more than a century. >> we'veeen through tou times, but definitely nothing, you know, of this >>magnitude. reporter: rishard had to leave o40% his crop, about 800 acres, rotting in the fields. >> a norma year, you know, weli probably a mon to a million and a half dollar operation.

>> reporter: the rotted beans are worth about $400,000. another $400,000 worth of harvested soybeans are stored in full grain bins with no one to buy them. >> we lost the demand inrk with the tariffs, there was no exports. they wasn't shipping out, wasn't buying. of course china buys a little over 50% ofur crop. >> reporter: tariffs have hit the trade-sensitive state of louisiana particularly hard. businesses here paid $19 million alone, ffs in october more than eight times what was paid a year earlier, according to a bipartisan, anti-tariff lobbying group and an economic consulting firm. >> the effects to this point in louisiana are perhaps a bit more acute and recognizable, given the size of the e state'snomy and the kinds of industries we're talking about beingim cted here. >> reporter: exports at the port of new orleans declined 14% in 2018 year over year. imports dropped 26%.

much of that decline driven by steel. >> louisiana, because of our posion at the mouth of the mississippi river, handles an enormous portion of agricultural exports nationally. so when we think about effects to farmers in iowa and in missouri, you know, piece of that is going to hit louisiana as well, because we're no longei ha that cargo. >> reporter:ay he s some got a competitive advantage because of the tariffs but the upside was teered by the widespread downside. rishard is a councilman and used his political position to petition other local and national leaders. >> i definitely wanted my voice heard, so i wrote this letter, make farmers great again. i get emotional. i'm good. it hits the heart. >> reporter:ithout solutions and soon, rishard worries there won't be a farm left for a sixth generation.

in port berry, louisiana, contessa brewer, "nightly business report." trade was one of the reasons why the head of th european central bank issued a downbeat outlook andne war of weaker growth ahead for the eurozone. >> the risk around the euro area growth outlook have moved to thn downside account of the persistence of uncertainties related to the geopolitical factors and the threat of both their abilities in emerging markets and financial market volatility. >> drhi's comments have some wondering whether the bank will delay any re increases. current guidance points toib po hikes later this year. th report on the labor market stiws it's firing on all cylinders. the number of americans filing applications for unemployment benefits fell 13,000 to drop below 200,000 for the first time

since 1969. economists note that a str g labor market is the pillar of consumer spending, and thatp could h offset fears of a slowing economy. coming up, thinking twice. s eagereowners aren't to remodel as they once were. senator elizabeth warren is aportedly planning to propose wealth tax on the richest americans. according to cnbc, citing an economic advisor to the senator, the proposal would only applyito those more than $50 million in assets. that is less than 0.1% of u.s.

households and it's estimated to raise $2.75 trillion over ten years. the economic and political turmoi venezuela lifted oil prices. as we reported yesterday, washington signalled it could impoha sanctions on country's crude exports. a further drop in exports could squeeze global supply. but the gains were capped by an unexpected build in crude inventories and domestic crude settled at right around $53 a barrel. re nault's ceo and chairman has resigned. the french automaker stood by him since his arrest. now it appea t company is securing their partnership with nissan and mitsubishi which is the world's biggest auto alliance. as you may recall, he was charged with derreporting his compensation. after several years of booming business, home remodeling growth is expected to shrink this year.

why? well, there are threere asons. diana olick tells us what they >> breakfast table, it will be a little more raditional. orter: contractor justin sullivan is plenty busy this winter, but less sure about how his business will be six months >> generally architects are six months ahead of us in terms of seeing slowdown. so we're hearing a little bit that some of the architects, some of the d aign firms slowing a little bit, which will probably hit us in six to 12 months. >> reporter: hom renovation demand is slowing because home values aren't gaining as much.rt ge interest rates are rising and fewer homes are selling. that last one is one of the top drivers of home renovations. >> the first two, three yea after purchase that new homeowner typically spends quite a bit more on home improvements, making that home kind of fit their needs, customizing it, maybe doing some work before they move in. owners ter: in fact new spend about 30% more on fixing up their new purchases than

long-time residents. just part of why growth in home renovations is expected to fall to the lowest level in three years. according to a new report from harvard's joint center for housing. spending, however, will rise slightly because builder costs are still very high, making renovations more expensive. >> we're looking to the folks that are in our industry to bring their prices down as much as possible. th's a little bifficult with tariffs being what they are, with the cost of materials being wha r they are. orter: and the slowdown in overall projects will hit home improvent retailers like home depot, lowe's, shwin-williams. sherwin just reported a ver disappointing fourth quarter. its ceo saying the weakness was across the board. >> we're now seein weaker consumer confidence in housing overall because of risin mortgage rates and the growing belief that homakprices have . i think any time they see the value of their homes moderating ordropping, they're going to think twice about how much they

want to invest in their home. >> reporter: because most people take money out of their homes to fund what they put into their home. for "nightly businesseport," i' diana olick in washington. lookefore we go, here's a at the final numbers from wall street. the dow fell 22 points, the nasdaq gained 47&p and the00 added 3. hat will do it for "nightly business report" fnight. i'm sue herera. thanks for joining us. have a great evening and we'll

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