this is "nightly business rereport" with bill grifnd su ♪ ♪a >>s next? stocks are sitting near new highs, but is the sharply ral since the start of the year sustaina e big fix. a ceo wants to fix the nation'sr tructure, and he says companies should pay, not taxpayers. rising risks to real estate. why a louisiana town literally moved itself to hi those stories and much moregh toon "nightly business report" for this wednesday, april the 24th. and we do bid you a good evening, everybody, and welcome. sue is off tonight. the powerful stock market rally of 2019 took a breather today one day after the s&p 500 and the nasdaq composite closed at

record levels,arngs from some very big corporations were not enough to push stocks higher in today's session and by the close, the dow industrial averag was down 59 points for a 26,597 and the nasdaq was down 18 and the s&p slid by six, but look at how t marke has come this year so far. the dow, the s&p, the nasdaq all up double digits and four sectors have gained % or more led by information technology, but is theally sustainable? bob pisani takes o>> we are not of the woods just yet. earnings season has been, for the most part, pretty positive. companiesreeating by much wider margins than they usually do. beyond the earnings beat, we see some signs of theslowdown in china bottoming out. europe is showing at least some sign of stability. it's not outf the woods either and it's still a very patient federal reserve. it's pretty good news overall. the question is what'snext?

so we've now heard from the banks. they have been okay, not great in their earnings and industria have been pretty goodverall and the smattering of consumer names like kimberly-clark and procter & gamble, and we need to hear now from different sectors. first off from technology, that's t main play on global growth, then second from energy names like chevron and exxon on friday and oil prices are now above $65 a barrel and that was $60 in the end of december and we need to hear from health care. remember suddenly thas become the market's problem child, health care to the second s making up 16% of the s&p 500 and remember this medicareor f all thing has thrown a monkey wrench into long-term earnings, but equally important is the democrats promising hearings on drug pres in general and we definitely need to hear from pfizer, merck and from eli lilly and what they've got to say about how that's going to im wh

from thisvo rally? me and volatility, if you see wall street celebrating try calling out on the trading desk and you will not hear champagne corks popping about new highs and they want to see m serious action and the volume is still low and overall, the volatility isn't that hily either. r also needs to broaden out a little bit and it was better today and the market i being pushed up by a small group of super performance. we need new stocks at n highs. for "nightly business report," im bob pis at the new york stock exchange. >> let's turn to a market bull and a bear sort of for their thoughts on where the market mtoager at washi senior crossing advisers and our bear in quotes, air quotes,hat would be david sourby and he's portfolio manager at encore advisers. 's a bit more cautious is a better way to put that. hi, guys.he make bull case for this market at these highs. >>he bull case is that the u.s. continues to be very

strong. we're looking at 3% growth which is a big pickup over where we were a couple of years ago and the data during the enarter has gouch better. so manufacturing is looking better here and in china and valuations seem to be relatively reasonable to u and with the bond market rally and the fed moving t more cautiour patient posture, to us it looks like the returns on stocks are relatively more attractive. >> all right. david, why are you cautiou right now? >> sure, bill. stocks we know have rallied 25% from the december 24th lows. at the same time, you and i like to talk about investorse iment, at year end, 50% of individual in were bearish.ey only 21% say they're bearish today. i think that means that markets have gotten a bit ahead of themselves, earlier small cap stocks were very much pacing this rally since early march. they've not kept pace both small cap and even the more cyclical microcaps to the large cap

blings and finally, valuation, valuations havede exp by about 18 percentage points and they usuallyut expand a 20 percentage points and 20% in a rally off the lows. having said all that, on days like today, inio portf i've been taking some profits in dialing back my stock exposure. >> all right.ke n, what about some of those especially when it comes to sentimentndhe fear i indicators are very t is that complacency for this market? >> not really. it's been bouncing around, and i think bob pisani highlighted some ideas that tnt senti is kind of in the middle ground as far as we can tell. there is a bter moodut there today and certainly you see it in the ipo market and for example, you see it in the rally in stocks and you see it just broadly speaking, but remember where we were six months ago it was a very different and more pessimistic place and when you average it all together, we think that the typical investor

is still somewhat cautious and not overly ebulent and that's a good thing for the market going foard. >> david, the huge sell-off we saw in the first quarter of last year and the fear was that we were seeing a slowing global economy and that the fed was raising interest rates and neither of those seeo be happening right now. why isn't that a green light for this market? >> from the fed's perspective, the fed is at least on hold i think is a good thingha fors transpired already in the stock market and when people start to talk aboutill the fed reduce interest rates, i think that's simply rubbish. inflatio is still going tbe, i think more of an issue than not and that causes the fed t still have to embark on a tightening mode, if not this year, early next year. begins to bring stocks into estion again in a period of rising interest rates and fed tightening. i think that's why you wt to ke a little bit of profits here knowing that so much the gains have already transpired.

>> very good. thank you both. kevin carron and david sourby with encore advisers. good to see you both. >> thank you. to all of those earnings rerts out today starting with microsoft which traded near record highs and the extended a hours toniger the dow component reported better-than-expected revenue thanks to growth in its cloud business called azure. the stock was up smartly in the after hours today. joshon li has the one key takeaway from microsoft results. microsoft doesn't disclose revenue for azure, its cloud computing division, but it does break out how fast that division isgrowing. in its latest earnings report microsoft saidre azure 73%. dan i'ves of web bush says that was big number for him showing that microsoft's cloud story is really still in the ear innings of playing out and it was better than what many on the street were looki for and

microsoft's commercial cloud business grew more than 40% to $9.6 billion. for nightly business report, i'm josh lipton, san francisco. >> tre's facebohich reported a rise in revenue thanks to growth in its instagram platform and an increase in ad spending. the company, though, also announced a multibillion legal expenseelated to a privacy investigation being conducted by the federal trade commission. the stocks rose in initial after-hours trading and julia boorstin has mor on facebook's quarter. >> a big headline out of cebook that had nothing do with its user growth and advertising, $3 billion. that's the size o legal expense facebook took related to the ongoing federal trade commission inquiry into facebook's data practices, estimatinghated compa company take a loss between $3 and $5 billion the matter remains unresolved and there could o assurance outcome.to the the issue at hand, back in 2011,

facebook settled with the ftc overcharges it deceived users by telling them they could keep their information private. this inquiry started after the cambdge analytica scandalea broke last and it looked into whether the company violated its commitment to the ftc and investors seemed assured that the growth on the top a bottom line exceeded expectations. for "nightly business report" i'm julia boorstin in los visa reported a doubleigit rise in profit including visa's swipe fees and processing transactions. the dow component has benefitted from the tight labor market and the increase in wages, but visa's revenue was just in line. and that created volatility, as you can see in the stock in the extended hour's session tonight. investors were hoping that boeing's earnings would answer questionut the financial impact about the grounding of the 737 max planes and here's what we learned today.

quarterly results did meet expectationsnd the compani taking a billion dollar hit and suspending guidance forhe rest of the year. despite that, the stock did finish with a fractional gain tonight. phil lebeau has moreoo boeing's 737 max grounded around the world following two crashes that k more than 300 people is weighing on the company's bottom line. with maxes being built, but parked until deliveries can resume, cash flow is slowing down. boeing is suspending itsar e repurchase program. boeing's ceo won't give a timeframe for when tl max wil fly again, but hecoays the mpany is making progress fixi w the plane. are taking a disciplined approach, completed the technicaes flightng last week and look forward to completing near-term milestones leadininal certification. we're committed to ensuring all whoperate the maxre fully prepared when the grounding is lifted and the fleet returns to serv the max grounding and delaying of deliveries is adding another

$billio billion dollars in costs over the max program which will kely be well into the next decade. >> they measure their accounting and decades not in years. so this airplane is going to get fixed. i think they're on track with the schedules th i've and they have to get consensus with the regulatory agencies throughout the world and it's a bigger progr than just getting the faa to buy on it. >> the question is whether pa passengers will refuse to get on the max when it's ready to take off again. the three u.s. airlines flying the max are confident they can reassure passengers the plane is safe. >> we are not letting our customers and our employees on an aircraft't that we d find safe and we'll have to reassure them. if people do have concerns we will always tack cake are of customers in some way. >> by then it hopes that it has been re-certified and cleared to take off again, and then it will

be gradually worked back into the schedule. phil lebeau, "nightly business rert," chicago. >> caterpillar rep expecte earn raised its forecasts, but higher dented margins and it sent shares of th dow component lower. margaret brennan has the details. >> caterpillar as revenumps 5% for mining and construction equipment. mining was the bright spot as revenue for that unit soared 18%, but the main focus o investors, construction sales. cat's biggest w segmeld climb just three. in the u.s., infrastructure spending at the state and local level helped fuel demand and business in china was once a source for weakness as caterpillar now grapples with more competition there. >> spring season, as you knows usually a strong selling season in china and it was stronger

uean normal across t many to th chinese new year and there's been competitive pricing and that's hadome impact on our road to market shares and the expectation for t industry for the full year is for china to be up. we suspect our sales to be flattish for the year. >> china accounts for 10% of the cat's overall revenue and the worried investor and the compaso raising guidance, but do benefits andx higher costs for labor, freight and raw materials pressured margin. shares of the c dowponent fell in trading today, but the bottom line in an uncertain earnings season based on caterpillar's results, at least some corners of the global economyay be stabilizing after signs of esower growth earlier this year. for "nightly bus report" i'm margaret brennan st the new yock exchange. > time to take a of today's upgrades and downgrades. we begin with shares from best buy and they were upgraded toom buy old at jefferies and to become more of a service

provider in addition ton being electronics retailer. the price target $88 and today's shares closed up at $74.69. procter & gamble was upgraded from overweht to equal weight at barclays and thed analyst cie market share globall price target $112 and p & g finished a fraction higher at 103.69. ill ahead, should companies foot the bill for fixing our nation's crumbling infrastructure and is it eve ♪ ♪ ford is investing $500 million in electric vehicles start-up, which has plans to a begin produci pickup and an suv by the end of next year.

opford isg this partnership will accelerate its own push into the electric vehicle market. a bidding war may be brewing for anadarko, occidental petroleum today offered $76 a share for the company topping chevron' recent offer. today in a cnbc interview the ceo of occidental made here. c >> we are the right acquirer for anadarko petroleum because we can get the most out of the shale. we have a lot moreerxperience and we are performing really, really well and what hasnke been tabout very much is that the upside in this is the shale play and the shale pment. 75% of the value of anadarko is in the shale, and we're the best company to develop the shale. >> s anadarkod it would review this new offer. in the meantime, analysts wer chevron ng today that will sweeten its bid. anadarko rose sharply while

occidental and chevron fell. the ceo of biotech company idea on how to fix the nation aging infrastructure. in an op ed piece in today's "new york times," the doctor proposed for the next threeme years everycan public company should issue 1 tof its equi a newly formed infrastructure bank that would be used tost fund cction projects. he said his idea would ise $1 trillion and he explained his reasoning during an interv >> if you walk around our lab, we have some of the most p innovatiple in the world and we as a compa like to provide them with great infrastructure so we can be max mally innovative and we have great potential and the infrastructure is holding us ba and i would like to see that improved. >> joining us toespond to the idea we are pleased to welcome, illiam george, a former ceo of medtronic. he is now a senior fellow at

harvard businessys school. alood to see you. thanks for joining us tonight. >> you're not exactly enamored with this idea. why? >> no. first of all, i have great respect for leonard schaefer. ey're great medical scientists and i say stick to the medical science. let's now let the politicians off the hook whether you're talking federal, state orocal vernment and that's the job of government to build bridges, to create roa e and makerything run smoothly, and if the businesses start trying to fund their own unfrastructure we'll have a mess on our hands with a game of chicken and i'm not sure they should tap into corporate covers. >>y devnd's advocatehe idea of using some of the cash that's on the covers inorporate america. there's tremendous cash out there that they're using to buy

back shares and dividends or whatever and by some estimates, theinfrastructure bill would be $4 $4.5 trin and local companies would have to do deficitng finan or raise taxes and neither of them popular and why not use some of that cash to rebuild the infrastructure? >> it's not theirs to use. this corporate cash, regeneron, they have excess cash and they are spending in researchnd development and the breakthroughs in gene therapy and tt's where theoney should be going and everyone knows drug prices are very, verh and most americans can't afford drug prices and why don't we usehem to create sliding scales to creple drugs to p who can't afford them and give them a loan program a my former company medtronic have done that in companies like india and it can be done and i to havech prefer them -- and let me give you an

example bill, here in minnesotan we have infrastructure problem and our new governor tim walls has stepped up and said we will put on a 20 cent a gallon gas tax and i think that's a great idea because that will also deter the use of gas and hospital environment and more importantly, it will fund the infrastructure and i think t businesses here locally will support that, and i would hope they would, too, betwe new york and new jersey. >> i would like to hearbout the drivers paying an extra tax and it is well beyond regeneron or even the biotech industry and the companies have a invested interest in improving the infrastructure to attract talent and to have the facilities be more a menable to their surroundings out there. what do you think? >> they should put their money in their facilities and should reskill the workforce and i'm very concerned. the biotech companies and all of th drug companies and hospitals will go heavily into a.i. we need to reskill the workforce

't the a.i. era and that's an area where they dave to wait for the government to do it. i think we have to let the governme do what it needs to do with national defense and help pooren people our country particularly with health care, and i think these pple should financial networkous what hey can do well in having a skilled workforce up-to-date modern facilities and very advanced technolog and heavy investment and i think they will continue to be leading the world with their drugs if they do that d that's the other side of the story, and always good to see you. j thanks forning us tonight. >> bill george, harvard business school, formeredonic chairman and ceo. >> more at&t subscribers pull the plug on directv and that's where we begin tonight's market focus with at&t missing revenue estimates for the first quarter due to in part a bigger-than-expected loss of directv subscribers. the companywedid, r, report an increase in wireless customers andaihey also it

e debt it incurred and took on, and it would pay that off b the ende year and today the stock dropped 4% to $30.79. health insurer anthem topped with strong membership growth and the expansion of its clinical and specialty servicesa the compao raised its full-year forecast and the stock today was up a fraction to $251. northrop grumman's earnings topped analyst forecast, but revenue did ms. the aerospace and defense giant saw stronger sales in its aerospace unit, but a decline in technology services. the company did raise full-year guidance in the process and the stock fell more than 4% today to 280 even. after the bell, chipotle topped quarterlnings and revenue expectations and the mexican food chain has been focusing on driving sales through online ordering and alreadys digital accounting for 15% of the

company's vles. the k watile in after hours tonight, but closed the regular session up 1% to 709.95. after the bell tonight, tesla xpectedd a wider than loss. revenue was also light and the company reaffirmed its guidance for deliveries for this year. the stock was very volatile in initial after-hours trading tonight. coming up, why residents inw the small of louisiana are being referred to as america's first climate refu. ♪ ♪

increas rainfall is causing chronic flooding in parts states making some neighborhoods uninhabitable. the state of louis na has come up with an idea and it is using federal funds for an experiment that could turn into a blueprint for dealing with what some arec ing climate refugees. diana olick explains in our continuing series on the rising risks to real estate. at a small church meeting house, in a small louisiana farmtown, a small community is ming a very big decision. >> the option to purchase. mu>> the cty up to 40 homes is moving together to higher ground. the state of louisiana is using federal fun to purchase land, build new homes, demolish the old flood-damaged homes and this neighborhood into wetlands. >> so you're going to knock dln f these houses and these, as well. >> right.

>> pat forbe, who administers community delopment block grant for disaster relief is in charge. it is quite clear that we're having more disasters and consequently, we have to start doing things that are. smart one of the easiest, smartest things we can do is get peo e out oharm's way. >> it was built in the 1970s near a canal, but in the last decade it has seen more frequent and intense flooding. its levees no longer adequate. back-to-back floods in 2016 and 2017 drew the governor's attention and a plan was hatched to buy out the homeowners and move them here, barely two mil away, but ten feet higher. >> colonel jacon was eager to hear the details and she raised her children and now her granddaughter in the home that recently flooded beyond her financial ability to repair. >> the water came up to about here. >> yeah. you're losing everything and you

don't have time to pick up anything and just, you know, you've gotndo go back a just start all over again. >> the program will buy out each homeowner and since these damaged homes have so little value now, homeowners will also get forgivable loan, up to $200,000 to buy into the new community. for each year they live in their new home, they get one-fifth of e loan forgiven. in five years, the home is theirs, debt-free. the cost, roughly $8 million. >> in the past, t federal government has given flooded homeowners money to simply relocate, but this is one of the first plans to move an entire community on map here to higher ground and it could be a model for the future. >> when we get done with is, and everyone else will know more about how to do this and more about the mistakes to avoid than we know right now. >> we are all in it together, and you know, i'm happy for

myself, but i'm happy for everybody else, because we've done been through a lot. for "nightly business report," i'm diana olick in louisiana. before we go, a finalay at the look on wall street. >> the dow down 18 and the s&p down 6. that is "nightly business report for tonight i'm billth griffith. ks for watching. see you tomorrow.

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