this is "nightly business report" with bill griffeth and. ♪ it's over. apple and qualcomm have agreed to drop all litigation globally ending a heated legal e thn dragging on for years. competition looms. netflix reports better than expected earnings, but its foreca left investors wanting more. >> show me the that's what zoom is doing making the rare tech start up that's a profitable will soon be publicly traded. those stories and m"ne for htly business report" for ooesday, april 16th. >> do bid you aevening, everybody. welcome. this was a good day for earnings reports and we will have more on that coming upn just a moment, but we begin tonight withhe

dramatic end of a long-running legal dispute between two major tech players. late today, apple and qualcomm announced they have ended all litigation against each other worldwidt litigation t involved everything from patent infringement to theft. the two high-stakes trial started yesterday and as we reported, the central issue is the royalties that qualcomm charged apple for the smartphone technology the machr produced for the iphone. royalties tt apple believed were excessive, but now after years of fieting, the bats over, and that news sent qualcomm shares up 23% today while apple shares roset just 2 cents. josh lipton starts us off one owas talked about as the ugliest corporate battles in history,s and now i over, and the agreement dismissis all litigation between thtwo companies including a one-time

payment from apple to qualcomm and we don't know long that payment is for and it reached a new six-year license agreement as well a atwo-year option to expand and a multi-year chipset supply agreement and that combination of licenses and chips will add an estimated $2 to qualcomm's eps as product shipments rafrm.ri this was important for both company, but especially so for qualcomm because it drove right to th very heart of its business model and it sells chips and it also licenses patents for a royalty on the price of each devicend the bread and butter under attack, and now that threat has been removed and qualcomm investors are breathing a big sigh of relief. for "nightly businesssh report" ipton, from san francisco. ibm, one of the best performing dow stocks this year. the company reported a revenue miss as results from the cloud business cooled off.

big blue earned $2.25 a share, 3 cents above expectations, but m revenue fell f year ago to $18 billion and the stock was volatile in initial after-hos trading and deidre bossa has more oish's number. the latest reports show it's still druggeling to f shift its busine away from legacy engines that are slowing. for a third straight quarter sales fell and thatth furer disappointi investors after a brief window where it grew revenue and there was hope that ibm had finally turned a corner under the ceo, and the company's acquisition of r hat and it'lo big cud play and one of the largest tech acquisitions ever for a $34 billion. it's expected to close in the second half of the year and investors are eager to hear how ibm plans to integrate it into the larger business. for now, it's segment that includes cloud computing and it's struggling to grow. for nightly business report, i'm

deidre bossa, san francisco. netflix easily topped earnings expectations eve strea cents a share and the estimates were 57 cen revenue was up from a year ago to $4.5 billion, t as always, investors focused on the company's subscriber numbers and on the coming competition from apple and disney and that created e volatility in tock in the after-hours session tonight. julia boorstin has more. >> the headline out of netflix earnings, while the company had ag first quarter is looking like in the quart ahead, growth won't be as robust as analysts had hoped and one factor in play, price increases in the u.s., mexico and parts of europe. a new addition that subscribers is unaffected and there is modest short term turn as members consent to the price change. tflix did beat expectations in the first quarter with

9.6 million new paying subscribers and they did guide lower subscriber additions in the second quarter than wall street had hoped and just 5 million, about half a million less that projections. farings per share would be lower than anticipated in the second quarter. for "nightly business report," i'm julian boors los angeles. let's turn now to tima imobi and he is the senior media and entertainment analyst ata c research. time a welcome. nice to ha you here. >> thank you, sue. >> the subscriber growth and the pricing. you know, the company said that basically do not think that new entrants will affect them, the disneys of the world, but are aren't they facing a very different landsca coming up in the next year? >> they are. i think clearly, i thi the streaming landscape has dramatically evolved with the try of disney and apple and other announcements coming up,n so i t netflix has to really

face a new reality. that bei said, we think that the impact is not going to be immediate, but in the energy, all of the players, i think they should benefit from theg growie especially in the international markets. theour point, i think guidance that julia mentioned was quite weaker than the street wa s expecting ande of that has to do with price increase still worng through and i think the underlying momentum remains intact. >> what do you think is most important in terms of strategy to meet the competition. is it the content which c be expensive or is it pricing and disney's already come out with a pretty low price for their new service. >> yes. i think content, if i can point to the most -- the singular most importantakactor to sure your content is up to snuff, and netflix has beenreparing for this day when, you know, they physically have to rely a lot more on the original programming and that's why you're looking to

spend almost $15 billion in cash content spending here and as priced in no question.i hink netflix's pricing appears to be fortuitously timed and especially with disney coming outggssively at $699 a month and comcast and all of those trying to jump in a i'm wary of potential price competition. the business model oftrming as consumers have more choice, but we do belve that ove time, you know, all of these major players are going to do just fine to the potential detriment of the smaller, weaker players. >> all right, turner. we'll leaveth it there. k you so much for joining us with cfra research. >> to wall stet now, stocks rose as earnings season got into full swing. the dow gained about 67s poi to 26,452. the nasdaq add 24 and closed at 8,000 and change and the s&p was up a point. some of the other enings investors focused on today

included bank of america which was the latest big financial services company to report as well as dow components unitedhealthcare and johnson & johnson. >> consumers are well positioned to take advantage of health care options. they have jobs ain rance and that is helping johnson & johnson sell more prescription drugs and pharmaceutical devices. it fell more than 4% helping to offset d aecline in sales like its consumer products like band-aids and tylenol. johnson & johnson posted better than expected first-quarter profits and sales and raised its forecast for the rest of the year. >> we're in a good spot and we'll stay where the unemployment rate is low so people have insurance and y also have universal healthcare ndsurance so that people have access to that we're in a spot where we're seeing people utilize healthcare in a constructive way. >> insurance stocks fell on worries about the medicare for all proposal by house democra

in washington, but united health group did raise its profit guidance for the year after posting fit quarter sales growth by 9%. profit jumped by almost $3.5 million,he current government and private ins options are better way to provide universal coverage with less disruption to the industry. and bank of america's consumer businesses pushed the nation's second biggest bank to record earnings of $7.3 billion in the first quarter and that's up by 6% on revenue that was ed unchaufrd unchauunchanged a year. ago increases have been made loans more profitable for the bank, and with the banks on hold, and for growth the rest of this year >> as for the stock prices, j & j and bang of america were higher while they closed lower

today. >> investors are starting to notice a few things. bob pisanit tells us whey are. >> earnings season ha juchtst started to pick up steam and they're beginning to emerge and good news and bad news. the good news is so far cotanies continue to rep earnings and the expectations. let's look at the companies reporting today, mc, blabank of ica, and by more than 6% and it beat by more than . and8%, that's way above the usual 3% earnings fee for stocks in the s&p 500. why such big beats thenalysts hearing a global economic slowdowns in 2019 dramatically slashed earnings last december, but the meltdown di't happen and now it's obvious that many of them cut the earnings estimates to much, but here's the bad news. the very large discrepancy between of news to right now

they're expected to be down but rather news what's that all about. companies that have been citing an unfavorable impact from a foreign exchange and the stronger dollar. many are reporting issues wit higher wage, higher labor costs, higher raw material costs and look at trucking giant. theyll cited a of the above as cause for its big revenue miss in the first quarter. for "nightly business report" i'm bob pisani at thk new york stchange. the world's largest asset manager reported than expectedla earnings and rock revealed it now manages more than $6 trillion. the ceo expects investors to pour more money int>>stocks. think we have a risk of a melt up, not a meltdown here. despite where the marketsn are equity, we have not seen money being put to work and we have

record amounts of mo >> christina hooper joins us now to talk about that forecast in the markets. she's chief global market strategist at invesco. thanks for joining us tonight. >> thank you. >> what do you think of his forecast of a possible melt up at this point. >> think it's a bit aggressive and i wldn't be surprised if it was a meltup, but i would expect it to be relatively dest when it comes to u.s. stocks. however, i could see more flowsing into into a areh m more, which is a screaming buy right now. >> the fed has taken a step back, but i wonder how much of that is already in the market? >> ll, i think as long as the fed takes a step back it is certainly part of the story as to why stocks are being supported, but you me a great point, but we don't know how long the fed is going to remain on hold. in fa, what we saw from the minutes that were released last week from the march meeting is

that the fed isn't as dove earn as many expected bore reading the minutes and they could really go either way this year in terms of either hiking rates or loweringrates. >> i'm intrigued by your meg cast for the market they've been suffering for quite a while and there have been plenty of analysts who forecast a return for the emerging rkets and it hasn't happened yet. what would be the catalyst to bring them back here? >> well, certainly one of the catalysts is fed policy. we're also seeing other centr banks getting more accommodative, as well and that's creing a global environment of accommodation. in addition, we're seeing signs of positive momentum in china for their economy and that should translate into better economic growth i other parts of emerging markets as well. in addition, valuations are very attractive. so at a certain point investors will start migrating in the direction of that which looks more attractive. >>here is stillome headline

risk, right? we don't have a trade deal with china. we s have brexit. definitely unresolved which could ripple througheome of th emerging markets. e, absolutely. risks are th but also the opportunities are there and think tnk about economic growth we're certainly seeing stronger growth there than we are in developed markets such as the u.s. >> chrtina hooper, again, thanks for joining us tonight. >> thank you. it is that time. time to take a look at today's upgrades ands. downgra marathon oil was from sector perform at rbc capital marketsd the analyst cites the company's free cash flow and the st pkce is up $23 and the stock was up a fraction to $17.47 also atbc capital market, dow dupont was downgraded to sector perform from top pick. the analyst points to macro economic concerns for the chemical maker. the price target is $40. the stock closed just below that

level at $39.15. west digital was upgraded to buy from hold ateutsche bank. the analyst cites favorable data for both hard disk drives and nan flash memory. gie price target was $60 and $54.29. i getting a sense of how people are feeling worldwide all at once and now you can p economists aing at ♪ ♪ >> boeing is reportedly facing calls to shake its boardroom by two leading shareholder advisory firms.

according to the financial titus, insonal shareholder services has told its clients that dennisll berg should be stripped of his dual role as chairman andss ceo and g lewis has recommended the removal of the head ofud boeing's committee for failing to foresee safety risks with the 737 m aircraft. separately, an faa panel said the software update to the ground at boeing jet is, quote, operationally suitable, end quote and that helped lift the stock i trading today. today's economic data were mixed. we had industrial production that fell in march compared to the prior month. the economists say that the yeakness and output aligns with the glo outlook for the manufacturing sector. a separate report showed a rise in home builder sentiment in april. the third increase in four months and the national omebuilders said the job growth and low interest rates should help sales in the near-term. we often talk about surveys that measure consumer tentiment ant's because in theory,

the more confident people feel about their iome andob prospect, the more likely they are to spendlp and that the economy grow. now for the first time there is a new survey that measures sentiment across the globe. ste liesmanr takes a close look. >> they're confident in india and pessimistic in russiand in the world and in europe pretty darn upbeat in the united states and those are the findings of the global consumer confidence index by the conference board. the findings of they surve of 32,000 online respondents in 64 countries in the f quarter of 2019 and the global index fell one point and it is one point off its all-time high. >> whamps verytant here is as you mentioned is historic, and you can see it's been going on for quite a while and it is beginning to peak a little bit and it does suggest that the reached a peak in terms of optimism. >> the most optimistic country,

the ippines, and india and the united states and argentina and france. the survet looks a views on three issues, job prospects and personal financial situation and spending intentions and they lead the world in the willingness of its consumers to shop. in argentina, venezuela, south korea and russia, they'r watching the pesos and bolivars more calfly. >> it doesn't mean they're going to end,nd it does mean again that we have more people that are optimisti about their intentions to do this down the road and those exactly t the countries where we find a lot of optimisc consumers. >> in the big, global dat we can now know how everyone in the world feels all at once. at least the 32,000 who responded to this on the survey. for "nightly business report "qwest i'm steve liesman. >> the $26 billion merger is in

doubt. that's where we begin with the market focus. accordin the wall street journal, it is notxpected to be approved in its current form. the t-mobile ceo said the premise of that story is simply untrue. whatever, the news sent sprint harply lower in initial after-hours trading tonight while t-mobile shares fell . elsewhere, united airlis reported better than expected earnings thanks to an increase in ticket sales and cost-cuts. the company disclosed it took delivery of ten 737 jets and orded three more. all of the max 8 and max 9 jets are gunded while boeing works on the pla'stabilizer and it is standing by its 2019 profit forecast. the stock rose initially in ctended hours trading tonight andsed the regular session at 85..17. csx reported a quarterly profit that topped wall streetpe ations thanks to growth in shipments that the railroad

operatedrom the increases and the stock rose in initial after-hours trading and it finished the regular session at 75.89. >> amgen said the list price of more than $1800 per month r osteoporosis drug and it mandated a so-called black box warning about an increased risk of heart attack and stroke. the stock fell more than 1.5% to 188.05. electronic arts online gaming platform called origin reportedly exposed gamers to hackers. crunch, to tech security researchers found that they could trick an unsuspendi gamer into remotely running malicious code on the computer. electronic art says ares says the fix has been put in place and the stock was down 4%o 93.83 and the fda ordered boston scientific to stop the sale and distribution of its surgical mesh implant. the move comes aft yearsf complaints about pelvic pain,

bleeding and scarring inom. the agency says the device has not demonstrated a reasonable assurance of safety and effectiveness. boston scientific has ten days to submit its planawo with products from the market. the shares fell more than 4% to 36.17. >> the nation's aging chemical infrastructure is getti new attention following a number of accidents at chemical-reled plants. and when accidents like that happen along commercial waterways, the costs can grow very quickly. brian sullivan is in the port of houston for us tonight. ♪ ♪ >> it wasth one m ago on march 17th that this terminal behind us heren the shiphannel of houston caught fire. that fire erupted causing a major leak that slled ngerous chemicals into the waterways around us closing one of america's most important waterways for days. firefighters like the one behind us working in some cases more than 240 hours for two weeks to

try to put this fire out and contain the dangerous. chemica in fact, even a month later you can still smell it in the air. this and each other accidents calling infrastructure crisis and that enoh attention in america. the aging infrastructure in gas and energy stories. when i don't go it can cause dangerous leaks and as it did in crosby, texas, with a separate indent and it cost doesn't cost for now. there are many ships that are still out there, backlogged, supply chains are disrupted, but in some cases 50-year-old facilities and regulations and it would be a bad surprise to have things like this happen future. for "nightly business report" brian sullivan, texas. coming up a tech start-up you might not have heard of, but it has something that other ♪ ♪

here's a look at what we're watching for tomorrow, pepsi, las vegas sands are j ot one companies expected to report. the federal reserve releases its beige book, an anecdotal look at the economy across the country and investors will react to china's first quarter gdp report which will be released overnight. another busy day in the news tonight, donations are pouring in to help rebuild notre dame cathedral. some coming from france'sal thr iest families. the billionaire family behind louis vuitton wil donate more than $220 million, that was matched by the family behind l'oreal and the pinell family

has pledged more than 100 million.pa other french ces are also donating including energy foam total andin consu company cap gemini as well as u.s. firms like apple and ibm. it was another big week for initial public offerings. videoconferencing company zoom is preparing to list its shares on thursday andven though it may not be as well known as other recently listed companies like pinterest o lyftr uber which comes public next month, it does have one thing that c thosepanies do not, that would be profits. deidre bossa is back w >> some the world's biggest companies use it for meetings. individuals use it to chat with friend, family and even for personal training sessions, t this isn't facetime or skype. it's zoom, a videoconference start-up that has made a name for itself in a very crowded landscape and it's about to enter this year's class of 2019 initial public ofrings. this week it will join other names like lyft and soon uber

and tapping public markets the very first time. these companies are very disrupted. some are possible and some will not andhe revenue -- the height around him makes him think these are significant companies and not necessarily at that size. among lyft who is burning their businesses, zoom is already profitable and it's growing e, reveer than doubling revenue last year. since it lafrunch in 2012, the customer base includes pandora and wells fargo, b as all of this year's tech ipos how it performs in the weeks and month aheadnot guaranteed. zoom has to stay competitive to keep its edge in a field thates inclig enterprise and consumer name alike, cisco, microsoft, amazon and facebook. the compa says that an inability to attract new customers and too get people pay for more expensive subscription services could harm

the business. this week it will debut as a rare breed of unicorn, the name given to the so-called billion dollararlus up, it's profitable. for "nightlys report" e deidre bossa, san francisco. before we go, one more look w gained 67 points a thet. dow closed at 8,000 and the s&p 500 was up one. that is "nigly business report" tonight, i'm sue herera. thank are joining us. >> i'm bill griffeth. have a good evening, everybody. we will see you ♪ ♪ is

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