this is "nightly business report" with sueerra and bill griffith. >> growing scrutiny. the doomed ethiopian airlines flight showedlear similarities to another deadly crash, and pressure mounts on boeing and its stock. hitting the roa lyft is one step closer to going public, but rival uber is close behind. blood shortage, for dogs, and some in the $17 billion vet industry are trying to fill that gap. those stories and much more tonight on "nightly business report" for moay 18th. good evening, everyone. wekome. a new w brings new questions about boeing's popular plane, the 737 max. black box data shows, quote, clea similarities between the

crash of the ethiopian jet and the a lyon accident just a few months ago. there are also reports thal fede investigators are looking into the development of hich has aft itself, been grounded worldwide for almost a week. shares today fell more than and have lost about $30 billion in market value sce the crash on march 10th. phil lebeau has theatest developments. >> reporter: the certification of the boeing 737 max airplane is now at the heart of questions being asked by the federal government. "the wall street journde says thrtment of transpor scrutinizi the faa went about making sure the pne was safe to fly bore it was serlt if i two years ago. separately, a federal grand jury issued at least one subpoena. boeing says i does not respond to or comment on q concerning legal matters, whether internal, litigation, on

gontal inquiries. we do not comment even as to whether such matters exist. meanwhile, completed 737 max jets are stacking up at boeing's plant in renton, washington. the company is changing its production schedule and is planning to update the software in all 737 max jets, perhaps as soon as next week. that update, in theory, would eliminate potential issues wit technology suspected of causing a 737 max crash in ethiopia. >> i think they'll fixhis one by having two sensors instead of one. i think that's a critical comparative that would apep this fromning again. two, i'm sure they'll put some ultra pilot interference mode so if the pilot rejects it, it disconnects. >> reporter: the black boxes of the 737 max thatsh c in africa convinces some there i a

definite link between that acci and the crash of a 737 max last october. fact, ethiopia's transport minister says there are clear similarities b ween the two planes that crashed shortly after take-off. it may be months before there is a definitive cause to the two 737 max acdents. in the meantime, boeing hopes it can move as quickly as possible to convince authorities its most popular plane is ready to return to the skies. phil lebeau, nightly business report, chicago. >>arter copelan joins us now to talk more about boeing, its stock, and what investors mig want to do. carter, thanks for joining us tonigh >> happy to. >>o it occurs to me there are certain costs boeing faces. not only the cost of lost business while the j grounded. there's the possibility of canceled orders. we've heard about a few already. then of cour litigation. have you tried to add it all up and figure out what it would do to boeing's bottom line.

>> we estimate t nonrecurring cost boeing may incur to get through, let's call it a three-month delay or probably on the order of a billion dollars, with half of that being related to customer compensation and the other half split between legal costs and the cost to fix the airplane. those based onl histori examples and public lease rates and things we can observe. athere's some variabiliund that when it comes to things like legal settlemenei. envision those larger. but in terms off the plane is suspended deliveries for a quarter or so, we would expectp the c to build up a significant amount of planes just as phil was implying they're currently doing befe livering them later. that would be billions of dollar but we would chalk most of that up to timing. >> speaking of the timing, now we're seeingehere may an investigation into the development of the 737, and seems as though every day the timeline on when this all may be overeems to be getting longer

and longer. have you factored some of that into your analysis? >> yeah, absolutely, sue. i think the news over thebl weekend pro extends that timeline considerably. now, boeing has been talking about having a software fix, and that's been in the works for some number of months. thla said it was d, in fact, by the government shutdown. software fixhat will be ready to go, they sort of hint in the next couple weeks, i think there's an immense amount of pressure on the faa here in the states and in europe to really dot every "i" and cross every "t" when it comes to certifying the plane is airworthy, ready to go with these new changes. so i think you'll they'll be a more stringent, there will be a lot manufactu i'm not sure it points to us having more extensive changes than what boeing is already in prop >> what do you d with the stock, whether you're a

shareholderns or reholder who's watching this unfold right now? >> yeah, i think we will i look bathe longer term and say this was a very attractive entry point for a company that is profitably growing in a very attractive market, and that's the market for commercial air travel, which as you know has been growing very attractively for the last several years and we predi will do so for another dozen or so. i think this will prove to be a great entry point, but it will require patience. we're going to continue to see a lot of headline fly out. yo you're going to see customers talking. you're going t see regulators talking. each one of those things, i think, probably makes this somewhat range bound in the short term. >> carter copeland, thanks for joining utonight. >> of course. on wall street, stocks rose and the dow posted a four-day win streak despite the decline in boeing shares. investors looked ahead to a busy week, which also includes a fed meet

the dow jones industrial average rose 65 points to 25,914. the nasdaq added 25, and the s&p 500 was t up. stocks today are not far from reaching their most recent highs, making this market much different from the one of just a few months ago. mike santoli has more. >> reporter: this week marks a half year since the stock market last posted a record high, and th the persistent rally since december, the s&p 500 h recovered four-fifths of its drop. but stocks have staged this rebound with little new enthusiasm over the economy and niwithout investors r to a fully confident bull market posture. stocks are now less tn 4% from it's eptember peak, and fair to ask exactly how they've made up so much ground so quickly. it starts with the fact that the deceer free fall reflected premature or exaggerated fears of an oncoming u.s. recession exacerbated by worry over l reserve tightening.

the snap back has taken hold as the fed sent a message of patience toward further rate hikes which has held treasury bond yields near their lows. low rates has bolstered symptom valuations as big-growth coanies with sturdy profit margins hold up the indexes. investors have been a bitsk eptical of rally until c recently withh continuing to flow out of equity funds until a big belate rush of ntributions last week. this could represent the public growing tired of watching from the sidelines as stocks levitate ivestion now is just how long stocks with te on low rates and the reversal of excessive investor pessimism. the bulls point out the profit forecast for 2019 are beginning to stabile, and china is trying to jump start its economy. still, it's not yet clear that combination will be enough to take stocks beyond the shadow of t bear that's stalked the market for half a year. for "nightly business report," i'm mike santoli. elsewhere, the nation's home builders are feeling good about

release t ness right now say they anticipate a solid ghring home buying season. affordability, th has been the biggest issue facing the new home buyers, and many in the industry hope lower mortgage rates will help fueles s but if you're in the market to rent instead, get ready to pay more. diana olick tells us whereu' pay the most. >> reporter: home prices may be cooling off this spring, but rents are heating up yet ain. after taking a breather last year thanks to new supply on the market, rents for both single-family homes and multifamily apartments are now rising at the faste pace in nearly a year, that according to zillow. the median monthly rent i february came in at $1,472, an increase of 2.4% cpared with february of 2018. for the typical renter, this means about $400 more a year. this after rents actually fell last fall for the first time in moren six years. of course, all real estate is local with rents now

significantly higher than aag yr in orlando, phoenix, riverside, california, tampa, and pittsburgh. rents are unlikely to rise as fast as they did three years ago when demand was soaring because ore millennials are now buying homes, and homeownership overall is rising. mortgage rates are lower again,d and that cive the spring housing market a much-needed boost. diana olick in washington. it is time to take a look at some of today's upgrades and downgrades. facebook was downgraded two hold om buy. the analyst cites the growing risk of regulation, executive departures, and ceo mark zuckerberg's strategy mark has do a strategic pivot, whiche did not talk about on the last earnings call, where he's going to combine instagram, whatsapp, and messenger,en ypt them and have them all disappear. that feels like a strategic pivot that drove the two very senior people out of the firm last week, snging it's g to be a multiyear challenge to

reorient the business. >> the price target is $170. the stock fell 3% to 160.47. pvh was downgraded to neutral from buy at citi. the analyst cites the retailer's dependence on the price target is $120. despite the downgrade, the stock roseractionally to 111.45. and dollar general was upgraded to erweight from equal weight at barclays. the analyst says the company'sn invest will give it a competitive advantage. and the price target is $125. the shares rose more than 2% to 116.53. still ahead, some small businesses are enjoying big law, s under the new t but there is a feeling that the law did not go far enough.

goldman sachs say today it is expanding a program that aims to improve diversity at bank. thet company has aspirational goals of having half of its all-new analysts andentry-level associates in the u.s. be women. it's also issuingge t for black and latino hires for the first time. sceo david solomd he thinks the goals can be achieved. jpmorgan is outlining a new $350 million program aimed at improving job prospects forop in underserved communities. the bank's five-year plan includes training for in-demand digital and technical roles and money to help employe and the educational system work together. jpmorgan's ceo says the program is designed to help bridge our economy that iso divided i haves and have nots. us it is absolutely obvhat a big chunk has been left

behind. so 40% of amerins make less than $15 an hour. 40% of americans can'td aff $400 bill, whether it's medical or fixing a car. 15% ofummericans make min wages. 70,000 died from opioids. we have to bifurcate the economy. world dimon said the new of work is about skills, not necessarily degrees. you'll soon be able to buy shares of lyft on the open market. the ride-hailing company is preparing to go public, and today it entered the home stretch with the start of its road show, an event that'sd use to market initial publicof ferings to wall street. leslieicker is in new york for us tonight. >> reporter: lyft is used to the road. that's where the ride-hailing company's business lives. but their road show is somethine it kicked off in earnest today allowing its executives tor pith thew shares to investors. ceo logan green and predent hn zimmer traveled in lyft

cars all across wall street, meeting with banks to explain to their sales teams how to market their deal. >> we're at the ver beginning of a generational shift from car ownership to transportation as a >> reporter: the deal is a boon for lyft's executive team as well as the banks underwriting this offering. they're expecting to sell about $2 billion worth of stock at a valuation around $20 billion. lyft is the first of many large tech ipos expected to come t market this year. being the first allows chance to share its story ahead of larger rival uber as well a o get while market valuations are high. >> i think this is the best time to get t. they're doing a great job in the major market. cro market isood. this is the right time to get out. >> reporter: lyft's road show will take place all over the country over the next two weeks. the feedback they get from inveors will help determine a final price to sell their shares, something they plan to set next thursday.

and next friday the stock will begin trading under the symbol lyft. for "nightly business report," i'm leslie picker, new york. >> lyft's larger rival uber is also going public. it plans to make its stock market debut in april, but between the two ride-hailing companies, which one might be better for investors? joining us to tk about that is kathleen smith, principal and co-foundss of rence capital. great to see you again. welcome back. >> thank you. >> and you say it's going to be tricky to make money in either one of theseni com. why? >> well, they're both losing money for every hundred-dollar ride. lyft is losing $6 perride, and uber is lose -- sorry, uber is losing $6 and lyft$1 is losing so they're both money-losing companies. that should be a red alert for invests looking at these businesses. >> if we had to pin you down, i mean uber is clearly the pioneer and much larger of the o

companies. does that give it an advantage that would be more attractive for investors, or do you goith the upstart lyft? which wa you go, if you had to pick one? >> if i had to pick one, i'd go with the dominant market leader, even though we have to gift lyfi some c for being faster growing and gaining in market share. but uber iseally the giant company, and generally the giant companies tend to be t better call if you're going moe better protection and a sizable firm. >> we're just looking at some os the poiou sent us. you say this shod be part of a may be volatility and because of the financials, whh you just discussed. >> the way we would approach it is unless you're able to get shares on an esipo, the thing, especially for companies like these, which are growth companies and growing at a costs, would be to put them into a portfol of other companies so that you can at least have me other diversified risks.

there's still risk. that would be the approach we'd take. that's why we have put together an ipo etf that's a basket of 60 or so newly public companies, and you'll moderate your risk that way. >> now, lyft is going to have two different class of stock. here we go again. this has happened with other technology giants as well. this yellow lightly is to give the founders more control over their company. does that -- shoulhat give investors pause before they decide to buy this stock, do you think? >> it's not favorable to have a company that limit the shareholders' right to vote. that's not favorable. i think it's a negative. i don't think it will stop the deal from happening. but to have the founders who own really less than 5% of this company control about 50% of th vote, it's not right. if things go wrong, public esareholders have a right to make cha and to have their vote represented equal to their shares. >> on that note, kathleen smith with renaissance capital.

kathleen, thank you. >> thank you. a big acquisition in the fast-growing payment sector, and that's where we begingh tos market focus. fidelity national information services is buying world pay for about $35 billion in cash and stock. the deal is one of the biggest in that industry, and it comes amid greater regulatory scrutiny. today the ceo of fidelity national said the pairingak sense. >> so we've really got two very companies coming together here. we're going to be able to accelerate our growth as a company so it's pivot to growth for us on a combined basis. we'll do 12 billion in revenue, growing 6% organically and producing 5 billion. >> world pay shares were up nearly 10% today. fidelity national was off a fraction. there is takeover chatter in theo casndustry right now. reports tonight say that cesar's

entertainment and el dorado resorts are in early merger discussions. according to reuters, el dorado has yet to make an official offer. artivist investor icahn has a take in cesar's, and he has been pushing for just such a sale. cesar's rose 4.5% intoday's trade, while el dorado fell. and credit rating agency s&p has placed kra heinz onreview for a possible downgrade that would lower the company's credit rating even closer to junk stay taus. this after the struggling food company failed to file its annual report with the s.e.c. the stock fell a fraction to 32.03 after hitting a 52-week low during today's trading session. over the next three years, marriott plans to ope 1700 hotels around the world. the company expects more than 40% will be in northamerica. the same time frame, marriott says it could buy back up tll$9 n worth of its stock. the stock rose 2% to 124.96.

the cannabis producer tilray reported a e wider thanected quarterly loss, but its revenue surged by more than 200% over year to about $15 million. the company says expensesas gre he company expanded and increased production. the stock rose in initial after hours trading. it finished the regular session down a fraction to 72.24. this tax season not only are individuals trying to navigate the new tax laws, b so are small business owners. complicate kate rodgers takes us to main street tonight. >> reporter: this small business is enjoying big savings under the new tax law, at least for now. he entrepreneur owns four businesses across iowa and saw . she was also able to expense a major investment, buying six new tractors toting a million dollars.

her accountant says her savings look substantial. >> we're estimating around up to $4ng000. by utilithat, we gave our employees raises, knowing that was going to help us for taxes this year. >> reporter: and main street advocates point out corporations still have a w21% ratele pass-through businesses could face rates of up to 29.6%. >> while we got some ground work laid for parody for small companies, we didn't actually get there. akg corporations that millions of dollars are actually seeing their tax rates at a lower level than many small businesses that are pass throughs that are making less money. and we don't think that's fair. we think weeed to get closer to parody than we have. >> reporter: taxes have long been a f trouble spot small businesses. the national federation of dependent business says that at least 10% of small business owners have ranked taxes as their single most important problem nearly every month since 1973 when the group began polling main street.

despite the tax law's benefits, small business owners like paul face another festest. the deduction used to lower her taxes will expire after25 so she went to capitol hill on behalf of the nfib to urge lawmakers to make these changes perm for now, though, she's feeling good. she recently expanded one of her businesses with a 40,000-square-foot warehouse and says she sees the same optimism ntom otherpreneurs in her area. >> business in this area really seems to be booming. down the line, i think what i'm hearing and seeing is more people are getting a little concerned because of the is prns not being permanent. so i think there's great optimism for at least the next two, three years here and then after that, i think people start getting a le more concerned. >> r business report," i'm kate rodgers. some sad news tonight well-known economist alan kruger died over the weekend. he advised bothsi pnts clinton and obama and served as the chairman of the council of

economic advisers from 2011 to 2013. his focus was labor economics, where he ehasized data rather than theory. kruger taught at princeton university for more than three decades. the family in a statement said the cau of death was suicide. he was 58 years old. arlington, virginia, approved a multimillion dollar incentive package for amazon to build its sond headquarters in crystal city, virginia. on friday we told you that this vote was to t place over the weekend. amazon is promising 25,000 jobs in the neighborhood, but some activists wanted to send the company packing, like they did in new york.

pet care clearly is very big business these days. people wil do just about anything and spend just about any amount for their furry ifriends, especially whe comes to their health. to help petsn need.ry industry jane wells has our story tonight. >> reporter: this is a dog receiving a blood transfusion, and this i a dog blood bank, a rarehing in the $17 billion u.s. veterinary business. jackie found out how r her beloved lab china suddenly needed emergency surgery for a tumor. the doctor had troubling news. there was no bloo >> i'm ke, what do you mean? there's no blood? >> reporter: she did her own leg work and managed to find one unit of blood an hour's drive away, costing hundreds of dollars. >> we were able to use this one unit of blood. and she made it through the night and went into cardiac arrest and passed away.

>> reporter: for a do for our pets, most of us don't realize pets can help each other. dogs and cats have only two blood types and can't donate to each other. and of course human blood doesn't work. meanwhile, there are only a handful of pet blood banks around the country. blue pearl emergency pet hospital started its own mini blood bank in new jersey, buying the equipment and training staff because too often they were coming up short. >> i could call one of our commercial blood banks that we use routinely and order a certain type of dog blood, and they could have ihi to me w four days, or they can tell me, well, we'll get it to you in four weeks.r: >> repornnual screening of a donor can cost $1200, a servic the hospital does for free. and to lure new donors, they have a facebook page and treats. >> we offer a month's supply of dog food, which owners are pretty excited about because that is a costly thing. >> reporter: but s ceritics argue pets have not given their consent to be donors. >> i thoht they were joking at first because i'm like, a dog

can't talk. you can't ask a dog ife wants his teeth cleaned either. if people knew it could help save another dog' life, i feel like in the dog world people really care about other people's dogs too. >> reporter: for "nightly >>siness report," i'm jane wells. and before we go, here's a look at the final numbers on wall street. the dow rose 65. nasdaq added 25. the s&p 500 wasp 10. and that does it for "nightly business report" tonight. herrera. >> i'm bill griffith. have a wonderful evening. see you tomorrow.

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