this is "nightly business report" with sue herera and bill griffith. those in control. stocks rally on solid bank earnings, positive data out of china and a big enerl sending the s&p 500 above the level in six months. >> big reveal, disney comes ou swinging with its ne service and investors like the trategy, sending the stoc a record. on the rise. gas prices have been heading higher and driversncre feeling d at the pume thosories and more tonight on "nightly business report" f friday, april 12th. good evening, everyone, an welcome. bill has the evening off. bulls are in favor upon. earnings are starting off strong. j.p. morgan reported record profits blowing past

expectations and the merger activity. chevron announcing a $33 billi adarkoer of and of course, china. economic reports released by t world's second largest economy are showing improvci of that was a rally. the dow jones industri average gained 269 points to 26,412. the nasdaq added 36, tnd is up 19t's less than 1% from a record. bob pisani has the detai the new york stock exchange. >> stocks rallied around the world today on two key headlin to support the market's thesis strong earnings and strong global economic data.s. tock futures and europea equities jumped and yields ros at 4:00 eastern time as china released much stronger than l expected banding numbers and export data for ma futures took another leg up

6:50 a.m. eastern time when it recorded above wall street expectation importantly, ceo jamie dimon said that, quote, even amid so global geopolitica the u.s. economy continues to mp grow andyment and wages are going up and inflation is moderate and consumer and business confidence rema strong.'s it all placed in the bull scenario. china is bottoming and the u.s economy will remn here. so far this earnings season mo companies are beating estimates than usual and they're beating them by more than they usually 29 companies have reported for the first quarter so far. of those 29, 83% are beating te estiand that's a lot mor than usual and they're beating by an average by more than sev percentage points an this happening? because analysts dramatically cut their estimates back in december, concern of an imminent, global meltdown whic has not happened. so here's the bottom line. dimon's comments have lessened fears that a reces the corner and there's a good

chance we will avoid sth s&p earnings go negative for t first quarter and that means n earnings recession. for "nigly busines i'm bob pisani at the new york stock exchange. >> let's dig deeper into the bank earnings. j.p. morgan, the biggest bank by assets benefited by higher interest rates in its most recent quarter and tha boost operations in its retail lending business. climbed more than fo wells fargo topped expectation and reported a rise first-quarter profit thanks to lower expenses, but shares of the bank drifted lower after t cfo offered a tepid outlook fo what's called its net interest income which is the difference between what a bank earns on loans and what it pa deposits. >> we make a lot of net intere income by reinvesting in our bond portfolio. there were probably 100 basis points down from where we were in the fourth quarter and the mporary nature of that and t

possibility of that being more temporary seems like the table and so we rs that we'll be re-investing in flatter and lower yi environment. >> the stock fell more than 2. in today's session. let's turn now to scott seaver to talk more about the bank's eaings and he's the bank analyst at sander o'neal and icrtners. >> welcome, scott,to hav you here. >> thank you for having me. >> what's your overall opinion i mean, wells fargo came inve better though the guidance was not as good as the market would have expected, butms j.p. morg to be firing on all cylinders. >> i would say the sam fpnc which was the first large, regional bank tll report as and for the most part what we are learning is that we've been cutting out expectations for the better pa of the last couple o perhaps we we too . >> what about the loan and lending side of the business? some of that is dependent on where interest rates are going and that's exactly right and particularly on the earnings

side, too and the capital markets dislocation in the fourth quarter that allowed the tradition banking space to recaptur looked like they sus retained the market share into the first and that's a bright spot for the. >> which one are you going to watching that you st hear from? i think bank of america is a broader that we might get a on? >> that's an excellent point. for a u.s.-based investor, b o a retains the position that wells fargo used to wh ph is t say itbably broad indicator of the health of the u.s. economy ws the traditional in street capital markets co well. in the u.s., b of a is definitely the one people will be watching and we whole swath of regionals reporting over the next >> how do you expect the regionals to do? >> generally pretty well. pnc is probably the best indicator so far. i think what you'lsee is loa growth looking to overwhelm flattening or potentially some s

compn in net interest margins and overall the group has capital manageme opportunity and expense levera as well and we feeut the group. >> we're off to a good sta. >> scott, thanks so much. >> thank you, su >> scott from sander o'neal and . disney shares are having their abest day in a decade, th the company late last night unveiled the details o streaming service that will pu the company into the already competitive online video other ma, but investors like what they heard, sending the stock up moth 11%. >> we're starting from a position of strength, confidence and unbridled optimism. >> unveiling its dney plus streaming platform at a shareholder event, ceo bob iger shined bright lights on the future, turning the mouse into both a content creator an the content provider. a shot across the boof streaming provider like netfli when it launches in november the

disney service will costess than netflix at $6.99 a month. disney plus will open with nin new pieces of content building to 25 originals wi from the likes of the disney annel, marvel, national geographic, pixar and lucas films. >> adding new content to libraries containing 750 television episodes and 500 movies, sney says it can sig up 60 to 90 million subscriber in five years and eight to 12 million on its espn plus sport service. it still owns a share of hulu estimating another 40 to 0 60 million paid subscribers the. moves iger believe st ngthen disney's connection with consumers. >> they're going to movies and movie theaters. they're renting or downloading movies at home and consumer product, th selling ouof the c and i can go on and on. if suddenly your customer relationship is much.

if the proximity between you and yourr is better you will serve them better across the pl you will monetize th deepened relationship. >> some say its subscriber projections may be too aggressive and wonder if they can replace revenu by disney's tradional cable offerings, but the price stock beice hinvestors and industry insiders looking ter times ahea >> i think that disney plus will now be the must have streaming service on disney plus.d a terrific it's the digital revolution entering a more mature phase and with enterta bob iger plans to step down as ceo in 2021 and that is continuing to dev jo find his succes and now to that energy deal that we mention chevron will acquire oil and g drilleanadarko for $33 billion, making this one of th biggest energy secto

years. the transaction will expand chevron's operations in the shale region and some analysts call it aif transform moment for the second biggest u.s. energy company, and the ceo says the deal makes a lot of sens >> we've been looking as our company has strenhened its financial position here over recent years and we are always making to look our portfolio stronger and it makes it better and it plays to our strengths in shale, deep water and it will allow us to continue t win in any environme deliver great value shareholders. >> but there is a twishe story. according to cnbc occidental petroleum attempted to buy anadarko and was prepared to pay $70 a share, more than what chevron . anadarko shares soared 32%. chevron and occidental fell. joining us now is rob fumel,

portfolio manager at tortoise capital advisers. welcome, rob. nice to have you here. >> thank you, sue. >> do you like this deal? >> yeah. we think it's a great deal for both parties and i thugh transformati will build a cash flow over th nextew years and the buildin scale, reducing operations and operational expenses are key to help bring investck to the energy sector there's a lot of gre going on in the u.s. sector and investors haven't rewarded that yet. >> not yet. you own both of those stocks, correct? >> that is right, sue. we own more anadarko than we do chevron, but we do own chevron as well. >> the deal making in the oil and energy sector hit a ten-year low in the first quarter because of the steep drop in oil prices. do you think we're going see more deals now that oil has really reversed that t? >> you know, i think what you have to look at is t is right for consolidation and the reason i say that is becau exxon and chevron want to ge

like the permeon basis and the use that as a growth engine going forwardra and they at higher multiples like pioneer, concho and diamondback energy and there is a natural opportunity for the higher multiple companies to buy the lower multiple companies and tor make sense for all shareholders involved. so i do think we might see ata trend that'sing to emerg. >> we should note that the biggest shale companies were sharply higher. they're anticipating that more deals will be done. how much of this will have to hedepend on oil staying at price that it is now or perhap even higher? >> we don't necearily have t prices to go higher. we just need them to stay stable.e wh are today plus or minus $5 is a great spot. atone of the great things reen lost is that the u.s. energy sector haced the cost to drill oil significantly, and that's a gat thing for consumers because that means w keep energy costs to in the u.s. lower as well as -

as well as costs around the world are lower and th energy sector have dona grea job of producing significantly cheape oil whether you are here in the u.s. or somewhere intern >> if yore a long-term vestor should you delv maybe some of those stocks or others in anticipati of this consolidation continuing? >> yeah. at tortoise we'reecmending essential assets. shale is going to be where the growth is uc terms of pron. we also like energy infrastructure, as well if you think about there's going to b a lot of production you will need more energy inf these essential, critical essets areential to transport that energy, as wel we think the energy sector is undervalued and there is a significant opportunit the stocks across th value chain. >> all right. on that te, rob, thanks so much for your pers

rob with tortoise capital advisers. it's time look at some of today's upgrades and apple was downgraded from neutral at new research. the analyst cites concerns ove hone demand. the price target is $170. the shares fell a fraction to $198.87. chesapeake's energy was cut to sell from goldman sachs. the analyst expects the compan to ave less favorable retur than its rivals. the$2 price target is0 and it fell to 317. martin murrieta was upgraded t buy from neutral fro sachs. the analt cites higher prici and morepending on infrastructure. the price target is $232. the shares rose 2% to $212.16. and still ahead, why our market ennitor is finding opportunity in the gaming anrtainment ♪ ♪ ♪

♪ ut est airlines does not plan to use boeing's max jets until august and that is two months longer than previously n nounced. analysts say amerid unit will likely follow. separately, the fa ahmet today with airlines and pilots to discusthe grounded jet. american airlines said it was a met today nes and ts with airlines and pilots confident in the faa is hea they need to be sati the training and t upgrade. california governor gavin newsom released a nu proposals to help co rising wildfire liab one idea is to create a fund that spreads out the costs fro fire-related lawsuit holding the state's

utilities accountable for the growing number of blazes and i was the creation of the fund that sent pg&e shares up 20% i today's session. president trump said today tha he wants the u.s. to win the race to velop 5g infrastructure.ne >> 5orks will also creat astonishing and really thrilli new opportunities for our people. opportunities we hadn't though we had tin possibili loat. c not allow any other country to outcompete the united states in this powerful indust of the futur >> his comments come as the fc discusses opening up for the next generat wireless technology. the head of the agency says it will be allocating more spectr for commercial 5g than all of e mobile broadband providers in america have toda. the fcc also announced a $20

billion commitment for high-speed networks in rural area >> jamia is the first african start-up to list on a major global exchange and that's whert we begin ton market focus. the company started trading on the new york stock exchange and en referred to as africa's amazon. it operates in 14 countries and according to the ceo it has a uniqueness that sets it aparhe >> uniqueness of africa is for the sellers is how they distribute their products because of the inefficiencies of africa and the challenges that the sinfrastructu present and with technology we have the platform which is very for the sellers to distribute their products and for the consumers to shop. in africa, there's very little retail and the solution is to go online and go on jammia. >> its shares priced today at $14.50.

today it rose 75% to 25.46. pnc financial reported profit and revenue that increased in the first quarter. the regional bk more than doubled its provision for cred losses which its ceo says is d to solid loan growth. he also added that overall credit quality remains strong. the stock was up 3% to 132.70. general electric will .5 illion civil penalty. for subprime residential mortgages. the justice department had alleged tha ge and wmc misrepresented the quality of those loans in connection with the sale of mortgage-backed securities. the shares fell 9% to $9 even. bristol-myers shareholders approved$7 that company' billion acquisition of celgene.i the acqon has caused

pushback from institutional investors saying there was too much risk involved. the deal is expected to close in the third quarter. both stocks were lower in today's trading session. and the maker of a migraine medicine iseportedly exploring a sale. according to bloomberg, biohaven pharma has attracted takeover interest. the company is expected to file a marketing application for its oral migraine treatment. shares rose about 20% to 58.24, and allegheny tech warned investors that first-quarter results would come in below the ceo said the maker of specialty materials faced unexpected headwinds like high operating costs and lower dema that things are expected to improve in the second quarter. nonetheless, the shares fell 5% to 25.66. time now for our weekly market monitor who is betting on the tertainment and gaming industry. they're names you'll want to o for the next year. joining us is president and ceo

of gerber kawasaki. welcome back, russ, nice to see you again. >> thank. >> let's start with disney. obviously, big news on that stock today and it hit record. why do you like it longer rm? >> i've owned disney my whole life and to be honest it's jus a lifer kind of stock, but disney's finally made the 21st century transition into streaming and they've done it a huge way by taking control o hulu and fox assets combined with all of the diey assets they produced i think the greatest app i've seen since netflix and at the price point that they started it's just like a must have for momilies across the so this is a hug in the right direction for disney and they have the best movie slate i've ever seen coming out and th ale movies will be on th app when it launches over the next year. , you know, it's really amazing product they've created so we're more bullish now and we're bullish on disney for th last period of time waited several years

stock to move higher. it's a great, great time to be involved with disney. >> stickg with that theme an going globally we go to ten cent. so it is really e most interesting and dominant tech er plut of china which a lo of investments around the worl and they own lion gameand th company that owns fortnite and so they're well entrenched in the video game busin asia that business is huge and they often own part of a compa called hoya which is the twitc of china growing like azy an most importantly, they own the y operatinem on most phone in china called we chat and it a wonderful investme >> next mgp, mgm growth properties and this is a reit. >> this is a reit that owns the land under mgm hotels in the united states and it's a

wonderful investment bechese you haveafety and security of owning real estat you're getting a, ield of almo out 5.75% and rising dividend yiel interest rates movin spread between this yield and the yield on the ten feasury is very, very lar what a safe asset this really is. so we look at this as a great way to get extra income, risin income and some benefit, obviously, from the growth of gaming and las vegas as they g sports and new stadium and llline gambling. so we're really h on thi because interest rates will continue to go lower over the e next cou years. >> on that note, ross, thank much. >> thank you for having me. ross gerber with gerber kawasaki. >> coming up, filling up and paying up. >> at gas stations across the country, drivers are feeling t pinch at the pum i'm for nightly business repor and coming up i'll tell you wh is behind the increa we can finally see some relief ♪

♪ ♪ >> here's a look what to watch for next week. earnings will be in focus with companies like goldman sachs, citigroup, johnson and and netflix l reporting their earnings.th major automakers will show off their high-tech vehicles a concept cars at the new york auto show. economic data including retail b book is also due thand the out. 's what to watch f with just a few days until the tax filing deadline look at the da shows average bills are dropping.&

block reports that its average customer paid $1200 or 25% less in federal tax in 201 compared to 2017. the report is based on returnsh filed throrch 31st and i provides a first look at how tes bichange to the tax code in 30 years is impacting filer ea> well, on a day that saw a $33 billion energyoil prices climbed to a five-month high settling at $63 a barrel. and as you're aware domestic crude has been risin start of the year up 40% and that also means it's costing y more to fi up your tank and rahel solomon is in new jersey tonigh ♪ ♪ feel like the cost to fill up is creeping you're right. >> i would normally spend on regular, like, $30. >> how much was it today? >> i drive uber and the time i checked in this

particular gas station it was $2e 5 and all of a sudden i surprisingly enough it was ten cents more. >> i want to be more conscious about the way i drive because can't really afford everywhere i would l >> the average price for a gallon of gas has steadily ris since the beginning according to aaa, the national average today for a gallon of regular unleaded is $2.81, abo 12% higher than a mo nearly 4% higher from a year ago. >> the price of oil continues put pressure on gas prices jumping to a five-month high a now $63 a barrel. >> gasbuddy.com says there are several factors to blame. one is refinery ussruptions beof maintenance planned and unplan another factor for states out west, theer severe weather wea damaged railways that transport ethanol that spun it int gasoline to meet environmental

regulation t >> flowiough iowa and nebraska has been a chal wa mainly, and the u.s.' largely state when it comes to ethanol production and those trains have found or very challenging at best to get to the west coast. >> in fact, five of e six mo expensive states to buy gas ar west, oregon, washington, arona, nevada and californ in some places like los angele they're paying more than $4 a gallon for the first five years. >> over the summer, analysts s expect this year o be slightly cheaper than last ye with june being expensive month and september be g the least expensive. so expect prices to tick a little higher before we fina see some relief. for "nightly business report" i'm rahel solomon in new jerse finally tonight, spacex giant rocket called y e falcon

heunched int stuck, rather, i sho landing. it was the second launch for what is the most pow et in operation today, but it was the first launch carrying a commercial paylo the satellite it was carrying will provide telecom s the middle east, a europe. one more falcon-heavy flight i scheduled for this y before we go. here is a look at the fina numbers on wall street. the dow gained 269 points. the nasdaq added 36, was up 19. the week saw modest moves, but it was the third straight week for the s&p. that does it for "nightly business report." ndanks for joining us. have a great weend we'll see you on monday.

>> this is "bbc world news america." >> funding of this presentation is made possible by the freeman foundati and judy and peter blum-kovler foundation, pursuing solutions for america's neglected needs. >> wow, that is unbelievable. ♪ >> i'm flying! ♪ >> stacurious. ♪