ts is "nightly business report" with bill griffeth and e herera. >> big techcomeback. a group closes at a new high, a big move considering it s battered and bruised just a few months ago. >> shifting gears, the major automakers are embracing electric vehicles and making green more affordable for drivers. idea? can a company known for its gold box of chocolates find it into an ultra competitive industry. those stories and more tonight on "nightly business report". >> we do bid you a good everybody and welcome. sue is off tonight, but don't ,

comes it is higher in the past few months and today the nasdaq 100 closed at a record high. tra index is on companies the nasdaq which is made up mostly of technology stocks. it's abl remar turnaround for a group that was beaten down just a few months ago. rtha coombs starts us off tonight. >> the nasdaq 100's gains today were driven by apple and firm qualcomm after the tech giants announced they had settled their longstanding patent dispute. tech names dominate on the nasdaq 100 and it has been tir strong recovery in 2019 that has pushed the index to a new record high afterhat was a brutal year end in 2018. the semiconductor sector is a prime example. semis fell 18% in the fourth quarter and concerns the difficult for manufacturers to import chips to the u.s. the trade headlines have improved and chipmakers ve

seen a strong recovery for qualcomm, intel and broadcom and a new record for the sector. the biggest contributor for the nasdaq 1 gains year to date have been four of the tech heavy weights that sfered bigosses in december. facebook is now up 36%. apple u28% and amazon up 24% and microsoft up 20, but the next big catalyst for this group is going to be earnings. in the nexouple of d to weeks. for "nightlyusiness report," i'm bertha coombs at the nasdaq. >> timothy lesko learned more about technology and tim, always good to see you. >>, that for having me, bill. >> down so sharp and now we're back, but does that mean the problems that were plaguing the group, the problems wh semiconductors and the slowdown

with sales for smartphones and the trade concerns, are those wgone now? >>ldn't say that all of the concerns are gone, but a few have been taben off the and particularly investors see that the chinese tradeat negons seem to be going better than anybody expected and on top of that a few of the individual stocks had stock-specific news that went their way and it s stock-spike news and market news in general expectations for the earnings that she was just mentioning fo someese giants that are doing your reporting soon? >> well, the same factors that brought the stocks downly hea in the fourth quarter of last year led to analysts really cutting their. estimat so these companies don't need to grow that much to beat the loweo expect that wall street had set for them over the next few weeks so we expect a good earnings season out of technology. >> and what about the? semiconducto they are a benchmark for the whole industry right now, and

they have sfered greatly. what's your outlook for some of ntose companies? the iels and others that are out the? >> right. well, certainly, you have intel, qualcomm and broadcom which both hree of ioned and all them had very, very specific reasons why they were struggling against a broader technology that had done well and eac of them had solved those problems that we were worried about, so in inte case they are getting out of the 5g chip business which ty were really struggling in and investors saw that as a positive light. we have good expectations for all three of the major chipmakers and all of them are trading at a reasonable vaation, so there's mreplenty o room for them. >> tim lesko with granite investment advisers. thank you for joining us, tim. it's not just the tech sector moving higher, other parts of the u.s. are rallying.

the dow was down three points and we are at 26,449 at the close and the s&p 500 slipped by six. bob pisani has more on what's working for investors. >> the u.s. bucked the uprend disappointing earnings and the continuing weakness in healthcare and and asia were up ashina reported better gdp numbers than expected and gdp has been ea declining for in china and the anticipation of a bottom there is the mainf movere global stock market in the past couple of months on the heels of the mlusive sti over there and the hopes for a trade deal. the s&p 500 isn't the only major index patterned near a new high. stock exchanges in russia and china and saudi arabia all at 52-week highs and it is at an historic high and the other main mover s have been earnings and fear of an earnings recession and two or more consecutive quarters of a decline on the s&p 500 are dissipating as china avoids a meltdown and europe just muddles

through. an dramatically cut earnings estimates in december on those fears and they appear to have cut too much. just look today athe companies that are beating earnings on very wide marginsdi inc netflix and morgan stanley all beatingy stimates bdouble digits and that's up by 3%. and negate revenue arnings growth was a major disappointment today. many sectors of the s&p are at or near new highs andleonsumer st and communication services. for "nightly business report," i'm bob pisani at the new york stock exchange. more now on those growth o numbers o china overnight which seemed to si rlstabilization in the s second largest economy and it comes after that country flooded its economy with smulus money. we report tonight from bjing >> investors have been asking if china's economy is bottoming out

and it appears to be stabilizing and china's gdp for the first quarte came in at 6.4% slightly beating expectations of a slowdown. industrial output was its strongest in four and a half years, 8.5% possibly because the u.s. and china have been holng back on tariffs as well as seasonal factors after the lunar idnew year h in february. beijing's recent policy theft and tax cuts for consumers and loca government bond sales were in the march data and retail sales jumped and constructionar d to jump 18.1% year on year from 6% in the previous month ashe authorities loosened real estate curves and china's policymakers would hold up on further stimulus for now and they also have to worry another facto rising prices. production fell by 5.2% year as china attempted to contain an outbreak of african swine fever in its hog

population. prices are expected to rise by more than 70% in the second half of the year putting upward pressure on. inflati for nightly, report i'm eunice yun in beijing. >> let's turn to mark grant for more on the global markets and he is from b. riley fbr. t >> goodsee you. always a pleasure. >> the biggest concern, let's face it, in the global economy has been china. what did you think of these numbersovernight? they were pretty impressive. >> they were certainly much etter, bill, than most people thought. the issue in my mind with china is the amount of stimulus the government has been providing and the increased amount of debt and not only the corporate debt and the public debt in china that i think has gone a long way to stimute their economy, plus the people's bank and theentral bank and china has been adding quite a bit of money into the economy, and i think that's a big cause

of the upward move here. ar so you're concerned about that of the equation, but t at about the trade talks. we hear te progress continues and they hope to have something signed by next month. >> that's what they say, they've indicated this before and i it would certainly be good for the mkets in china and the united states if this gets accomplished and we're all sitting around on wall street with our finge crossed. yes, indeed. >> are there other parts of the global economy that you like better at this point. >> we had an analyst last night saying the emerging markets a attractive right now. what do you think. >> i don't think that's correct and my favorite market and the global markets right now is the ited states because of the stability, because of very low interehe rates, because fed has changed its course. my biggest concern,y e way is in china, and it's europe. europe on may 23rd, it has its

national elections or elections across the who european union. >> right, and it looks to me, like, bill, that the group that's controlled the use since its incepti which is the german-french al and the populist or the nationalists is what i think thete b word is are going to get a significant share that the eu parliament or tey might get majority of the eu parliament and i think the european union will be a very different place so i'm very cautious on any investments in europe right now. >> and very quickly, all of the central banks around the world except ours right now seem to be loosening their monetary policy and you mentioned china, but does that bother youwe >> , i think it's a positive that interest rates are lower, without any question, the japanese central bank they have a balance sheet that's

equivalent to the entire gdp in japan and the ecb has balance sheet way larger than the fed at this point ask they' be lending more cheap money to the banks over there and the fed has done a back flip, if you will, and has stabilized interest rates. i think that's been a positive for the equity bond and market in the united states and i think that's going to continue. >> all right. mark grant with b.ey r fbr. thanks for joining us. >> thank you, sir. >> you bet. >> speaking about the federal reserve. it released the monthly anecdotal, ade it showed te growth despite the midwest.ooding that we saw in steve liesman has more on the fed's beige book. >> the federal reserve's april beige book finding slightly moderate growth in the 12 districts of the federal reserve. it's a similar report as last time, but some dtricts did see strengthening and consumer spending was mixed with sluggish

sales for general retailers and the autos and the contexts in many districts reported mentioned trade and tariffs as the last one and the employment continues to increase with the majority of districts in high-skilled jobs and the weight pressure, specially for those high-skilled jobs and thosest cts were saying there was modest wage group and the prices overall were up modestly with input costs increasing including higher fuel prices and tariffs, freight costs andising wages all driving the pricing trend here. >> in st. louis, retailers pass alonge able their higher prices and by the way, in st. louis there was conclon abouting in minneapolis and kansas city as well affecting the industry and dallas reported elevated wage pressure and it expected higher input costs and new york city there was a widening gap with the salary demandshat left some positions unfilled.

for qwest nightly business report qwesm steve liesman. >> our trade fell to the lowest levels since junof last yea and that is well below what economist his beennd expecting it was due in large part to a 28% decline in the goods deficit with china as exports to that country rose. in the meantime, as we mentioned trade negotiations withhina are moving along. according to the dow jones, the u.s.nd china are expecting to reach a deal as soon as may with the two countries setting a tentative time line for the next round of talks that involves robert lighthizer going to beijing the last week of april. >> elsewhere, you take a look at some of today's upgrades and downgrades with bank of america being downgraded today to hold from buy at jefferies. the analyst cited some challenges when it comes to , feervice charges and net income opinion the price target now $32 and that stock was up a

fraction to $30.03. paypal was downgraded for ubs. the monetization of its venmo app is priced into that stock. the shares were up modestly to 108.81. ailing com had a neutral rating at susquehanna today. lyft invests should be ncerned with the company's position as the number two ill er behind uber which debut on its own on wall street next month. the pricet tar lyft, $57. the stock was up nearly 6% today at 59.51.still ahead, automakers are plugging in. >> i'm phil lebeau, electric vehicles are turning heads like never before. why are so many people now considering an e that stooming up on "nightly business report." ♪ ♪

zoom, one othe highly anticipated companies, pricing its initial public offerg at $36 a share and that was above expectations. as we've been reporting zoom h been profitable which sets it apart from some of the other tech companies coming public. shares are trading tomorrow on the nasdaq under the ticker symbol, zm. >> one day after qualcomm and apple ended their long-running gal battle, the ceo of qualcomm today said that he is looking forward to working the iphone maker. during an interview, steve molenkrof said now is the time for his company to look to the future and focus on new opportunities including 5g. >> we did put the medal to the

metal on 5g independent of this relationship and i think it was well.ant to t it was tremendous not only in the hand set space and we think we're the clear leader and i think that's going to be a good thing not only forur customers, but for our shareholders. >> qualcomm rose another 12% today adding to that 20% gain we saw yesterday. pepsi shares ros to record high after the company reported solid quarterly results and said the investment in the snack businessths paying off. sent the stock up 2.5% to the all-time high. sarah eisen has details. >> pepsico is posting its best sales growth in three the key number growing 5.2%. what's behind that kind o growth? snacks for one is doing better. growth in frito-lay in

particular, the brand fueling the gai and also north american beverage business has come back briefly. anthe vice chairman of pepsico says the portfolio is working. i think it'sf a combination a few things. number one, you see continued portfolio strength and the international businesses and wj continue to see strong broad-based performance. in addition to tha the norer american be busine strengthening over the last couple of quarters and we've invested in more execution. if pepsico is spending a l more these days on advertising just like coca-cola is doing and they're seeing better execution. for instance, c when ites to the sales force on the ground with the product in the store. joson tells me they've seen a lot more efficiencies that lead to higher sales and they see globally. >> we see i consumer that's

capable of spending on products that they really see differentiated and adding value and that's what's driving the focus behind putting erney behind asing and innovation, because when you deliver something different that the consumer likes and they're able to pay for it. prospects new growth and the stock has outperformed coca-cola and the rest of the staples so far in 2019 and it's certainly upped the bar for coca-cola reporting earnings next week as ien hit harder by the strength of the u.s. dollar because it has a much bger international business. for "nightly business report," i'm sarah een. morgan stanley topped wall street earnings and revenue estimates and that's where we begin tonight's market focus citing the revenue unit and cost-cuts. overall results were solid despite a slow start to the year. on a call with analyst the outlook remains uncertain. >> the world remains uncertain.

i'd love to n think thet three quarters is the last three quarters of last year, a i'm a betting man and i'manot sure i'd make that bet and the world is uncertain and until w s more clarity it is undisciplined. nl>> morgan s shares rose 2.5% to 48.26. ru.s. bancorported a rise in commercial and mortgage lending as wells some of its payments businesses and that helped the company report earnings that were in line with expectations although revenue was slightly below estimates and the ceo said the company was helped by rising interest rates and higher yields on securities and shares rose a neaction today to $50.67. american air says it cannot yet forecast the cost the 737 max groundings. the carrier says it's still too early too much uncertainty around that issue and

this week you may have remember american canceled all 737 flights at least through mid-august and that was up today to 34.38. kansas city southern topped first quarter earnings estimates and its revenue was up 6% from last year and it was helped by an increase in refined fuel and grain shipments to mexico, and the company gets one-third of its revenue from the company and the stock rose to 122.8ab abbott had a rise in sales thanks to growth in the heart and diabetes care devices and the ceo said the company's long term growth drivers are performing well and they've targeted another year of strong sales and investors are focusing on rerulatory uin we that talk in washington about changes in healthcare insurce programs and the stock fell t4.5% tod $72.88. after the bell tonight las vegas sands reported higher revenue

and better than expected profit and the company cited growth in macau which is now the world's largest gambling market and that sent the stock higher in after-hours trading and finished the session at7.. while auto sales are gradually slowing, automakers believe that america is an electric vehicle and that may explain why plug-in models have been grabb hg thedlines at this year's new york auto show. that is where we find phil tonight. >> from electric pickups to luxury plug-ins like thegu jaar, automakers are embring evs like never before. >> the performance is. phenomen the driving dynamic is unlike any other car. the customers are starting toee reallyhe benefit of an electric vehicle as an everyday commuting vehicle and it's part of the conversation. >> the conversation was spark by elon musk and his company tesla cl started rolling out luxury electric models six years

ago, now with the tesla model 3 starting at $35,000 and the base model chevy bolt selling for under $40, going green has become much more affordable. >> the entry-level cars are 30, grand when they used to be 60 and 70 and t , 40 grand cars are going twi as long on battery as the cars did 70s. >> while traditional audi makers are driving the discussion with nestart-ups turning heads with an all-electric pickup scheduled to go on sale in 2021. >> the vehicle has to give them a very strong reason to switch from an existing brand whether they're in a truck or land rover or bmw. there has to be a strong reason. >> buyers are more intd in plug-in models and electric hicles make up less than 3% of all u.s. auto sales and proof the industry has ways to go before it can convert electric

vehicle interest into sales. >> phil lebeau, "nightly business report" new york. o re show this year, go to nbr point com. when we come back, can godiva find gwth outside their famous ?old boxes of chocola ♪ ♪ the companies are certainly always looking for new areas of growth and today a compa best known for its chocolate is hoping to find the next leg of growth in cafes. courtney reagan is in new york city for us tonight. ♪

>> when consumers think about godiva, premium c colate gifts is likely what comes to mind. istory of, that's the se 100-year-old chocolate maker thatells in 105 countriun and 8 retail locations globally. >> have a great day. >> godiva's ceo has a plan to grow the business and a big part of that is newodiva cafe. >> we feel that that could be a bigur piece of growth for the future. in fact, around 40% of our erevenue in future can come from these cafes. we believe that we have the opportunity to fivefold our business over the next six years. >> this new godiva cafe opened officially in new york city on thursday. it's just one of 2,000 planned around the world. 400 ultimately will be in the united states. they sell chocolate, of course, but also dferent coffee drinks andnd craffles, the beverage

experience for godiva, and she ran starbucks, digital and loyalt businesses and before that, she rantarbucks tea teavana the food and beverage sector is a crowded space and not without risk. starbucks had teavana stores ano ultimately cd all of them two years ago. the expense of securing real estate in high-traffic loca hiring and training employees and convincing consumers throughout treats into theirs. di >> before there were only a chocolate, if i may say a store and n they wanted to go into fresh foods. the supply chain is going to be veryifferent how they've thought about the supply chain is going to be critical in the space. >> g hopes the cafes provide a heal owe effect spurring other purchasing. >> they have an opportunity to open upigital where y can order online, pick up in store

and that makes it really easy for our customers, as well. >> the tasteie and expere the godiva cafe's offer will be the deding factor for consumers. >> for "nightly business report'm courtney reagan in new york city. >> and that is "nightly business report." i'm bill griffith. thanks so much for watching. we'll see you tomorr ♪ ♪ ♪

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