this is "nightly business report" with sue herera and bilf th. apple is moving beyond its flag ship smart phone and pushing f into entertainment. marking the biggest strategy change for the company in decas. trade dynamics. why the end of the mueller investigation could put pressure on china to do a deal with the u.s. soone >> charitable giving. small donations arece down sin the tax law went into effect an nervous. those stories and much more tonight on "nightly business report" for monday,arch the 25th.lc e. apple today put on a show. one of the world's most valuable companie an event that was glitzy and enlisted a list

celebrities to help sell its new offerings. that include things like l newsstand, but beyond the servis and it's ig amajor shift in strategy. iturees the f different from its past, which for years, has relied heavily on devices and its flag ship iphone. apple is hoping its big bet will generate billions in new revenue, but investorsppeared cautious, sending the stock down more than 1%. josh lipton is in cupertino for us tonight. >> as you can tell, today's going to be a very different kind of event. >> apo,e's tim cook, wasn't focused etoday on the company's iphone biness or hardware at all. instead, it was all about the company's faster growing, higher marginervices segment. apple introduced a range of new

digital services, but the star of the show was a new video streaming service called apple tv plus. featuring original ows, movies and documentaries from hollywood a list celebrities that were here today talking about their new shows. ike steven spielberg, reece witherspoon and jennifer aniston, jason momoa and oprah. with this product, apple is competitive video streaming market. >> so i think this is more an advertisement for a longer press to get into the services space. a lot of people are talking about apple versus netflix. the bigger issue is in the u.s. alone, you have 5i million households spending more than $100 a month on their pay tv servicese versus netflixbattle. >> additionally, apple debuted a new apple tv app, where usersca subscribe to channels like

hbo, showtime anstarz. apple also launched apple news plus, a new subscription service bringing together over 300 magazines and newspapers. applelsard b into the apple wallet app on the iphone as well as an actual physical credited apple pay is not accepted. finally, a new service for gamers. an a l r arcade. a subscription service feature over 100 new and cloouf games in the fall the company's core iphone franchise has come under pressure. revenue dropped 15% in apple's holiday quarter. in response, they had touted its services division as a bright spot. services rev reached nearly $11 billion in a holiday quarter. up almost 20% from a year e

earlier. analysts believe these new services are important for a broader stragic reason, some 1 billion apple devices in people's haks. tim c has to keep offering all these new fans new,g excit products and services that keeps them loyal to his platform and discourages them from moving to ri services re are compelling, it could toe consumers another reaso buy an iphone in the future. for "nightly business report," i'm josh lipton, cup ecertino, fornia. this shift in strategy. dan, thanks for joining us toda >> great to efore we really dec how successful this strategy ift is. why? >> i think it will take a little bit of time and the reason is the investing in eunique content roll t.

we need to respond to it just a continuation of what the company has been doing for a long time, which is to invest in ways that enable it to build a differentiated use experience. so we think there's a potentially very attractive growth from a revenues perspectivehey move further into the vids t time. >> now overall, did you like apple?ou heard from do you think this will be an effective strategy to boost up venues as iphone sales have been leveling out and in some cases, declining? >> i think this can contribute g fasterwth over the next few years, but i think it's just a piece of it. rst, just to address the point on iphone, the sichb weak and the market for smart china is weak at the moment. apple is suffering from having a fficult compare o a year over year basis, but just to address the iphone issue, the users are

satisfied, the install base is growing. when you take the services business video gaming with the arcade fering, news, payments, these are things that are really reaching into different parts os us lives and they're doing it in a way that's secure, transparent andlly private and that is i think what apple users appreciate and ultimately will value from the company over the next few years. >> as we've learned from an amazon, producing original content cane very expensive. they've already said, apple is planning to spend about a billion dollars right away on new content, but do you think shareholders have theo stomach spend a lot more money in case they have to? >> i think they do and i thinkl vel of patience if you will, is just how successful someth o initial offerings are. the fact apple has been able to partneh really accomplished artists like oprah, like steven, spielb speaks to the

potential of what they can do and so if they, if we see shareholders signs of early success, then i think the company will have more latitude to spend aggressively,'rssuming th continuing to execute in joining us rt of the busine tonight. >> thank you. on wall stet, stocks struggled to find direction today. the major averages flip-flopped between gains and loss. as investors remain concerneded about the health of the global economy and the yield on the ten year treasury hit its lowest level sin w 2017. the nes industrial average rose 14 points. the nasdaq fell five and s&p 500 was down two. as you saw, there was little reaction in the market te mpletion of the investigation. in his summary of the mueller report given to congressional leaders on sunday, wliam barr

revealed 'smull veinvestigation did enough e president trump's 2016 presidential camign colluded th russia. so now, that preatmably means all stre turns to trade because the conclusion of the mueller investigation could change the dynamics between the u.s. and china as negotiators work on that new deal. kayla explains. >> president trump satisfied with the findings of robert mueller and attorney general william barr -- >> we're glad it's over. >>er e the home stretch of trade talkchina. his top two officials head to beijing for one day of thursday. vice preurer ret to washington april 3rd. a senior administration official says the hope to clinch a day in the days to follow. two t e trade deal that got slved as

tensions escalated. in the time since the upper hand says strategic research. >> now that it's clear the president's goingo be in office until the 2020 campaign, does china now say oh, we got t make a deal? >> so far, both sides have found the concessionschlacking. a has offered to buy $1.2 trillion in u.s. goods. ump has told his team he wants more. china passed a law changing foreign investment rules. the u. wants to be able to retaliate if the lawn's dot change anything. the it remove most of its tariffs. china wants them gone. disappointed him in the pa past, but the deesca good thing! the sensitivity of market decision makers to be up and down news from the trade discussions is not good for them ec >> there are still questions about how the deal will address criminal charges agast chinese

telec te or cybersecurity. but u.s. intelhege in 2020 election. new market trends are also nderging. majores are recovering from the rocky end to 2018, but santoli explains. >> even before wall street struggled from a five-month high, the performance of the h groups of stocks leading andany others wallowing. notes has triggered ave and debate about what it means for the long-term health of the market. the tape has shown a strong preference for big stocks over small ones,ic org companies and groups offering a reliable stream of cash flow and income over almost all otadrs. this is for an unusual mix

a market up some 12% this year. the giants of tech are bac this microsoft, acebook, apple and amazon powe iing the business for years to come no matter the economic pace, but stops are also near record highs as steady income in a world of collapsing frg the same bond yields and transpor stocks hindered by how much remains in the economic expansion socycle. are raising concern the rally has been b broad, but e issues trading above their 200-day in average. an alternative view, the market play is rotating from globaec soft y patch as investors await more clarity on the economy andh profit gron the year's second half. something like this played out in 20er after ano scale on the

world economy. inrtuality isn't always com bable to see, but wall street goals are e new norm al. for "nightly santoli. elsewhere, the president of the chicago fed sae the u.s. ec slowed, he does not sl the r risk of a recession. charles evans expects 2% growth this year and described the ec rebous primarily because of the strong consumer and labormarket. the fed held interest rates steady last week andat ind no more rate increases will be co this year. with the fed on rest of the year and the mueller investigation behind us, what will the market turn its attention to at this point? joining o joe, chief investment strategist at blackstone. ce to have you with us. >> thanks for having me on the program tonight. >> even though we have those two kind of headline risks out of the way now, you still see some

volatility for market ead? why? >> i think we will see it because we have this tug of war. on one side, we feds and the possibility that a trade deal with china and that's priced in. stocks have had one of their best starts to the year since i 1991 ahink that reflects the bullish sentiment on the fed. and the tug of war is a realizationco thaorate profits are real a really strong story over the past two years. in 2017, corporotets were up over 10% for the year. in 2018, corporate profit growto accelerated about 20% for the full year, butr earnis whic beg to be reported in the next few weeks, there's uae realization that profits growth could teer and for the full year, it's going to be relatively flat. i think that will drive

volatility ove couple of months. e b the resurgence of technogy stock, but you have utilities among others that are doing well ec coursese of the low interest rate environment. where do you see leadership coming from here? >> think the leadership over the course of the next six to 12 months is going to be in the tech secr. but that, in energy, consumer discretionary, industrials and tematerial. als companies. and what all those have in common is they tend to be pretty cyclical.exposed to global growth and what we mticed in the fourth quarke fe about 20% is that those sectors led the market down, but even after this 12% recovery year to lot of those sectors are stl cheaper than they were back in that september high. so in other words, i think there's still some value in those ctors, so if we get weakness or volatility over the

course of the next couple of monthsd be looking to add posit to. >> quickly, does theboctivity in yields, does it worry you at all? it has some sayinge're headed towards a recession. others disagree with that. >> i think you bring up u poin. the bond market sent a powerful message he friday. that short-term interest rates rose above long-term interest rates. not a normal phenomenon and something that typally only occurs before a recession. when you see those rates going above long-term rates, the trick is you u don't know the timing. on average, that's led recessi 24s or longer and we can't rule e positive in that portion man that note, joe, thank you. >> thank you. time to

some of today's upgrades and downgrades. with an outperform raided. highest margins among other things. price target now $105. the sck rose 1% today to 85.48. regions financial was upgraded to buy from hold at sandler o't ill. off in the stock and says the back can continue to grow its loan portfolio. $17. that stock finished the day unchanged at 13.53 and tree house foods was upgraded. the analyst cited the company's focus on private label products and a favorable environment for the highest pri targe on wall street right now for that stock, which rose more than 4% today to 63.94. still ahead, boeing moves for

american airlines have been canceling about 90 flights a day groundi of boeing 737 max aircraft and the airline says that the cancellations will continue t ough most of apri higher. something that hasn't happened iten over the past few weeks. in fact,was the best today.g stock among dow boeing has begun showing pilots how it plans to fix the issues that have grounded the 737 max airalestilaeps. latest. >> boe 737 max is still a long ways from being clear ed t

company's facilities ested eseattle, pilots software designed to fix issues suspected of contributing to two 737 max crashes including one in october. sea last the software upgrade will still faa to be certified by the and that could take more than a week. meanwhile, the department of transportation is moving forward with its review of how t faa certifiesplanes. at issue is w been stringent enough, reviewing the self-certification work of boei engineering during the comes as airbus announces a mammoth order for its a chinese airline is buying 290 a 320s in a deal with a book value topping $30 billion. the airbus order has long been expected. stilon givenrns about boeing's backlog suffering now that the max is grounded,

street is taking a closer all . phil lebeau, "nightly business report," chicago. winnebago's profits were driven higher. the maker of recreational vehicles reported better than expegted earnings, but revenue fell short on a decline in rv sales. the ceo acknowledged challenges in the industry over the past six month, but said he hopes the market will stabilize during the third quarter. shareses were up at 29.01.l ther fisher plans to buy grammer bio for 1$1.7 billion. the move w furor into theield of gene therapy. the ceo calls bramer a leader in the industry. the shares rose 2%. eli lily disclosed for the first time what it charges wholesalers versus what many patients pay for one of its

blockbuster drugs. the patients if pay for its iulin injection fell by about 8% last year. that is paid after factoring in rebates and discounts. the ceo says that disclosure will per trar eer transparency. biogen is buying back $5 billion worth of its own stock juays after halting those two late stage trials of the alexandria drug. it's in to its current program authorized last year. shares were up more than 1.5% to .k they bounced bfter hitting a one-year low earlier in the session. at&t h a contract to continue carryingom vi channels, there by avoiding a programming blackout that would have lefe than 24 million customers without channels like mtv andomedy central. at&t fell 1% to 30.77 whi

viacom rose 4% to 26.32. a bizarre turn of events for nike today. it started with tweet from michael avenatti who said he planned to disclose what he call the company.jor high school as you can see, nike shares dropped and then rose soon after when the justice department announced charges against avenatti for trying to extort $20 fillionm the athletic tailer. but the story doesn't end theres angeles with bank and wire fraud for allegedly emf debts. he was taken into custody in manhattan this afternoon. coming up, a shift in charitable giving is making some grass roots non-profits nervous.

t>> the federal housing admi making harder to get a mortgage. the agency is going to begin flagging more loans at high r k risk. rigorous underwriting process. the decision could lead totiewer firs home buyers getting approved for a mortgage. the state of new jersey has postpod a vote to legali re marijuana. it was put on hold presumably because it didav e legisla calls for taxing the product at $42 an ounce. ten other statein the district of columbia have legalized marijuana for recreational use. it is possible the vote will be held at a later date. and the state of illinois is thinking about ditching its flat

tax income tax. wants to or there replace the current system with a graduated rate in order to increase revenue. illinois as you may know, has the worst crit rating of as a $ budget deficit next year. changeso the state's tax code require a constitutional amendment and voter aroval and if it happens, it would likely affect the wealthiest residents in that state the most. fidelity wants to make it launching a mloyers program that stres the charity bable donation process and allows workers to automaticapay deduct money froh. that money in increments of25 or more would be sent to the charity of choice. this comes as charities a decli donations in light of the recent tax law. that is causeing concern b abou

al gifts. shon takes a look. >> they're settling into their new home. a former factory is being transformed into a brand-new privfe school l in one o philadelphia's poorest nabld neighborhoods. the school is funded almost entirely by charitableti donas, which make of 95% of its annual revenu >> without active philanthropy, this school doesn't exist. e concerned and very attentive to the shift in laws. >> that shift is the result of a tax cut and jobs act. under the new tax law, the standard deduction nearly doubled to$12,000 for individuals and 24,000 for couples. yet only taxpayers who itemize their returns can write off charitable donations and lower their tax bill. fund raising experts wonder if

ny taxpayers stop itemizing, how many will stop giving. >> for more modest donors, i think they're probably going to be just giving from the heart and we're hoping a lot o becau charities can't afford to beng lo these small donors. >> gifts oea$1,000 incrd by 3% in 2018, but maller gifts decreased. donations between 250 and $999 fell by 4%. while gifts under $250 dropped by nearly 4.5%. it's unknown how much of the drop off feeled but the new tax law. the stockarket slide last december,uch the busiest month of the year fo partly to blame. the answerr pattern and say wom don't have toake a gift to get a deduction. i'm goi to get one any way, so why do it. >> s a troublin for roots

charitiesl that value donations. dollar or $10 or in between, it all matters. that's how we fund the school and make it work. >> for "nightly business report." >> and that is "nightly business report" tonight. i'm sue herera thanks foroining us. >> have a great evening. se

>> this is " america."ews nding of this presentation is made possible by the freeman foundation,dy and nd peter blum-kovler foundation, pursuing solutionsic for a's neglected needs. >> wow, that is unbelievable. ♪ >> i'm flying! ♪ >> stay rious. ♪