this is "nightly business report" with bil sue herera.d pu growth. the economy expands by a lot more than expected in the first quarter, sending the s&p 500 and the nasdaq to n highs. oil slick. prices have been rising, so why are profits exxonmobil and chevron falling? >> cut in amazon is spending big money to get packages to your door in one pressure on up t up th its rivals. >> those stories on "nightly busi report" for tfrs ay, april 26th. >> good evening, everyone. i'm kelly evans and tonight for sue and bill. the s&p and nasdaqhe finished week at all-time highs thanks in part to the economy which is powering today we learned that activity in the first quarter was a lot stronger thapected, shaking off a rocky finish to 2018. the first read on gross domestic

product grew at an annual rate of 3.2% a wellve projections of 2.5%. in fact, it's the best start to a year since 2015. you know, gross domestic product, is a value of all gds and services produced in the u.s., rising exports, falling imports and higher inventory investment dve muchf the growth. that helped offset weaker gains and consumerpeing and business investment and that report gave the major averages a lift. the dow jones industrial average was up 81 points. the nasdaq added 27 and the s&p 500 gained 13. but it wasn't just theth econom investors were watching, bob pisani starts us off tonight. >> stock futures spiked early on with a stronger anxpected read on the gross domestic product ithe u.s. and it weighed heavily on the dow. shares of exxon, for example, slumped about 3% and had their worst day of the year. after profits took a hit opoor

refining. that's gasoline refining mostly, and cmical results and the oil giant said that while oil prices have risen they're still relatively low compared to prior periods and we're seeing signs of the slowdown story starting to take a toll on the earnings equaon. intel slashed its full-year revenue outlook blaming slower growth in china saying they were becoming more curbs and they weaying an acute deceleration for chips in the region. this follo similar comments made by other chipmakers like lam research and texas instruments. but others have been more positive, for example, ford's cfo bob shank said the chineseo y seems to be stabilizing chinarmes said sales in were actually accelerating. the bottom line is this. the u.s. economy continues to outperform, but global growth is ill a problem. it's not clear if china has accelerated or decelerating, despite massive stimulus for its

central bank. for "nightly business report," i'm bob pisani at the new york >> let's turn now to jim o'sullivan to talk about the gdp data and he's telling us about the u.s. economy. jim, welcome. good to see you. thanks, kelly, hello. >> the components of the report that show consumer spending is okay and business investment is weaker and areou with those who say the one-time contribution from exports and inventorie will be reversed next quarter? always i mean, there's volatility in the details from quarter to quarter so you can always quibble a little bit with it, but it is fair to say that the inventory number will go negative over the next quarter part ino that particular will probably be reversed to some extent and that boosted the numbe on the otherside, the consumer spending number of 1.2% in the firsrter was probably artificially weak and we saw smentum pick up the first quarter ended with the march retail sales was so strong and

chances are consumer spending will be stronger in q2. growth is probably moderating a bit and the trend probably isn't 3% and no sign of any major slowdown, i would say. >> jim, that's a big deal because the marketold off concerned about a u.s. slowdown especially at the end of last year. now with the stront quarter number even with the governshutdown happening at the time, is that why stocks are at highs and is that why people think there might be some sustainability to see something north of 2.5% for the u.s. economy. >> it's two things, really. on the one side the growth numbers are good enough and strong enough to tell us that rries about dramatic slowing were overdeputy. on the other side, the inflation numbers have been very tame. a beg part of the earnings report isor well with the at pce price index that the fed zeros in on and t oir goalr time two% with that inflation number and that number on the quarter basis is 1.3% this morning and we've heard dovish officials om the fed over the last couple of months

and with inflation as low as it it is prettylear they're not going to tighten any time soon and with growth as tight as it is and the labor growth numbers as strong as they are, are they're not goi to ease either. from the stock market's perspective, the fed on hold story is a good one. >> finally, jim, bob pisani mentioned this china and it's still not clear that this country is doing okay. is the u.s. able to continue growingven if china's weaker and europe, as we know is weaker? >> even c ifna goes from what they reported 6.5% down to 6% or back up a little bit, it's not going to dramatically change,ul say u.s. growth. certainly to the extent there are changes in china and that filters in to global financial markets and that's a different story and certainly at this point, global financial markets are buoyant and we just hit a new record on the s&p 500. so i don't think from that perspective, directlna c is that important and plus at the same time the latest numbers out of china for the most part have

actually been a little bit better. jim, good stuff, thank you for your thoughts. >> jim o'sullivan is with high frequency economics. >> oil prices meantime came under pressure today after president trump said he told opec members tori lowers and domestic crude settled down 3% and that snapped the commodity's longest win streak since the first half of 2015, despite today's decline, is still having a big run-up this year. it still gaiand more 35%. given that, you might assume that the country's two largest oil producers would be doing xxll and that wasn't the case whenmobil and chevron reported earnings and both saw profits fall in the most rec quarter and that sent their shares lowery' during toda trading session. dominic chu takes a closer look. >> one of the biggest drags on the dow today is exxonmobil after the integrated oil and gas giant, america's most valuable energy company posted profits and balesow average analyst estimates. a big part of the story at

exxonmobilocused on the downstream and refining and chemical operations and it said profit margins were weaker due to among other things, higher refinery maintenance costs and the bright spotai r on the production side and overall production of oil and gas rose by 2% over the same time last year. it pumps out 4 million barrels per day and when itomes to u.s. shale production at the all-important perm onbasin, that's 140% higher than it was last year. a similar story with fellow energy companyro ch the fellow dow component was drag on t overall index after it beat analyst estimates and fell shy on revenues and it, too, grappled like refining and chemicals, but itw also sa overall production rise likeex nmobil helped along by u.s., shale, oil and gas production. >> for chevron, investors are more focused on its pending bid

fornarko petroleum. that deal was wrauf setoc after dental petroleum came up with its own bid that trumps chevron. a key story for a oil gas in the coming months will be the trend of oil prices as wellsi a the pe merger activity as bigger playersd loo for more u.s. acreage in shale assets. for "nighty business miport," i'm c chu. >> trade negotiators from the u.s. and china are expected to meet next week. today the president and china sent a message to the u.s. and he did it in front of world leaders who are gathered at an infrastructure, vent in beijing, that as w reported last nht will be a target of widespread criticism and eunice yun is there. >> presidenti jinping defended his road initiative and addressed concerns about the massive infrastructure program here at the road forumarlier today. president xi made a keynote speech countering the program is a death trap and unfairly favors companies and

generally needs to be more open. president xi said china would ensure the financial stability of the projectnd choose xi pushed back on the way. worries with a veiled shot at the u.s. said we help other countries will create an environment that ables investment to treat chinese enterprises students and scholars asan equal provides a fair and friendly environment. washington and beijing have been blocking visas for people and the latest weapon in their rivalry and his remarks show that despite the talk of inclusiveness here tt china's leadership is still fully aware of its contributions to the o frustratio its trading partners like the united states and that more conflict is likely. hatever happens with the trade deal. for "nightly business report" i'm eunice yun in beijing. >> here in the u.s. consumer sentimentr remains n historic highs despite softening in april according to theichigan

sentiment index, roughly 44% ofy respondents their financial prospects to improve this year and that's thero reading 2004. economists say the report could signal that the s consumernd being is poised to pick up and high level in sentiment and theory translate into highe levels of spending and amazon is the beneficiary from that spending and today the e-commerce company is speeding up delivery for prime members and to make one-dayhipping the standard and it may have caught rivals like target and walfrt of guard. courtney reagan has the details. >> as amazon works to cut its u.s. prime delivery time in half from two days to one day, retailerssi have des to are they willing to spend to keep up with amazon? target and walmart both offer two-day shipping online for millns of items as d ng as you sp$35 and without a memberip fee. amazon's annual prime cost is $119. 90>> roughly of the retail

market is still offline. roughly 10% online and amazon has a third of that market. i think clearly they're makhag the bet over the next foreseeable future with moving to one-day shipping y can gain more share in the offline market. >> in rponse to the shipping goal, target offers numerous ways to shop same day and hours purchases within at many stores, target shoppers can picn up store with drive-up and order puckup. taet shipsame day and there that.99 annual fee for walmart has online order pickup options and declined to comment in reaction tthe amazon news. >> the buy online and pick up in store model is still incredibly effecte for the bricknd mortar guys and for amazon to mach a bigxpansion into brick and mortar they'll need to go faster. >> the most ideal scenario is to have both, a strong store strategy and efficient online operations, traditional

retailers like walmart and target have spent billions to improve digitald operations speed up shipping while amazon has been building its physical store>> fleet. i think they woke up to that ality around two years ago when they acquired the whole food. having a dual online and eoffl strategies and the right one, but i don't think amazon isce arily losing that battle and i think that process is progressing relatively slowly, and i think amazonas the wherewithal. they have the smartnd they have the data to kindav of a big seat at the table. >> walmart and target will have to decide whether to try to keep pace with amazon's one-day shipping goal and evaluate what that might cost.pe amazon'sing $800 million towards its goal in just the second quarter, and walmart has already said its digital operations will post a bigger loss this year than last. >> this is something that over time will only differentiate the amazon value proposition and

will only make amazon stronger and frankly, not great news for e-tailers nnd not greats for retailers. >> the big question remains, can amazon do it? as more prime members haveed jo there are some customers that say shipping has slowed ano isn't awo days, but longer, but ifmazon does succeed with one-day prime shipping, the bar and the cos just got higher for competitors. for "nighty business report," i'm courtney reagan. >> it is time to take a look at some of the upgrades and downgrades. >> walmart from outperform at wells fargo. the shares are fly valued despite the coffee chain's plan to expand in china and their price target is $80, despite the downgrade, shares rose a fraction toil 7745. nois tool works was upgraded to neutral for j.p. morgan and the analyst cites improving fundamentals and theirrice target is $144 and today shares closed a 153.59 up about 1.5%.ls

shutterfly was upgraded to outperform from market perform at raymond james and growth around shuttely's growth business and their price target is 56 bucks and the stock rose 4% today to 43.85. still ahead, don't bet against the american consumer market mo she's investing in for the long ♪ ♪ a rare appearance in wisconsin tonight by executives of taiwanese electronics manufacturer foxconn.

the company has pd mised to bu$10 billion manufacturing complex in the yate creating 13,000 jobs, but nearly twoears after that pledge, the future is far from certain. scott cohn is at the site in mount pleasant, wisconsin. >> by now a massive state-of-the-art plant was supposed to be rising on this sprawling sight 25 miles south milwaukee. renaissance in u.s. manufacturing. >> it is g aat day for american workers. there is construction here and it's way behind schedule and they haven't started on the main factory which foxconn hasn't started to breakround on by january and the company has it fallen short o hirg targets and only about a thousand jobs t createds far. perhaps most troubling, foxconn has dropped its plan to build massive electronic display panels here. it will build smaller, less labor intensive ones instead with $4.5 billion in state s subsidies on the line, tony

ebbersays it'sime to re-evaluate things. >> clearly the deal we struck is no longer in play. >> theeal was a haul mack achieve chlt of scott walker and the republicans who contr the state legislature accused ebbers, a democrat, of trying to sabotage the deal and he said foonn was the first to propose changes last month. to it was first tie job creation so if it doesn't hire the people it doesn't get the money, but there's more to it than that. as part of the deal the state and local h governmene been buying upland, building roads and there are even plans for ani t-lane highway, the total cost some$2 hun00 million. foxconn is committed to its goal of hiring 13,000 people. it plans to build the assembly plant in the next 18 months and it's raising its profile in the state with initiatives likeio mi dollar science and technology competition, but the same executive who presided over the awards ceremony tweeted two days before who has the crystal

ball to predict if 13,000 jobs will be created and foxconn in wisconsin have a contract that says as much and for this statee there's serious money at stake. for "nightly business report," scott cohn, mount pleasant, wisconsin. >> american airlines cut its profit forecast and that's where we begin tonight with market focus. the is facingfu higher cost and taking a $350 groundingt due to the of boeing's 737 max planes duri busyas travel . on the conference call with analysts, the ceo expects for jets to be flying again bymi august. >> we came to the conclusion that we needed -- we needed, for our customers' certainty and for ur team members to put the start-update as far out in the future as we thought -- as we said and we need, like, 95% certainty. that the aircraft that what we're going to be selling, and

we'll be flying. that's what we think about august 19th. it fel to 33.06 today and autonation posted mixed first quarter resulhe and nation's largest automotive retailer topped earnings expectat rns, buenue missed and the ceo said the company sold fewer vehicles ht aher profit to counter the weaker sales and today the stock surged 7% to $42.41. strong american sales particularly withpa tooe helped colgate's palmolive post better than expecnid es and it had european sales, and ther full-y sales guidance and the stock rose 4% today to $71.30 and the justice department has opened a criminal investigation into ford's emissions certification process. in february, ford said it began an internal investigation into the vehicle's fuel economy and testing procedures and this comes a day after ford reported strong earnings, and the shares jumped more than 10% to close a

10.41 and it's time for the weekly market monitor who likes consumer names she says will do well in ar up o down market. this is the first time on the program and portfolio manager at logan capital management welcome. nk you. you have a number of picks here and very familiar names for everybody, let's begin with pepsi. >> so, pepsi, when you think about what constitutes a really, stable stock, h pepsi all the attributes. they have global reach, big brands. they threw off a ton of cash flow and they're important to retailers and high frequency turn, and we really think this stock will be a source of enduring earnings growth over the next few years. >>okay. how about unilever? >> so t'unilever, a little bit of the same song, different note. it's a global, multinational hpc, personal ca, food refreshment and names like ben &

jerry's and dove and they're the epoppee of their revenue comes from the e merging markets and so those markets are growing much faster than deloped markets and it contributes to a organic growtve expectations much of the time. >> we heard from other companies like colgate palmolive that that international exposure is actually a source of weakness. are you concerned with unilever that that strength might turn into a liability? >> it's reasonable to, you know be careful about the emerging markets because they can be volatile at times, but we do not see that from th quarter tha unilever just reported. we saw strength. we saw consumers in those regions searchingig forr priced items which is leading to gins and that company has done a good job at bringing to market the things that consumers want. >> finally,t' mcdonald's, w the story there? >> so mcdonald's will report

next week and they have really engineered a whole-scale, financial and entire renovation of their store base. they are rolling out the experience othe future stores which has caused them to raise capex spending a little bit, but they have been another reliable, organic ower. the thing that's interesting with mcdonald's is that it is royalty story, so it has a tenancy to be less volatile than otheren stocks. we o call it a mixed staples company because even though it resides in the consumer discretionary realm, it is a very stable source of earnings and one that's likely to grow again for the next foreseeable future. >> all right, sarah henry with good, solid picks in the consumer sector and sheey says do well in an up or down market. thanks for joining me. >> my pleasure. >> coming up, the silicon valley start-up that's offering a new

ho for k-9s with ♪ ♪ ♪ ♪ ♪ ♪ ♪ >> here's a look at what to watch next week. earnings continue to roll in. on tuesday we'll hear from dow component, mcdonald's, merck and pfizer. on wednesday the federal reserve will announce its decision on

interest rates and give investors more insight intohat it might do next, and on friday the government releases its monthly employment report and that's what to watch next week. uber set a price range of $44 to $50 per share for its initial hablic offering and would give the ride hailing company a market cap between $80 and $90 billion. they are looking to raise about $9 billion in cash and, n the filinger said it lost about a billion dolla in the first quarter and it could begin trading on the new york stock ex in early may. it's no secret that people spend a lot of money on their pets and that's especially true when they're sick. companies like merck play a big role in the fastrowing pet market and now the silicon valley start-up is reporting a cutting-edge treatment using precision mement to treat the dogs with cancer. frank holland has mule. >>lost a leg to cancer, but not her spirit. >> there's justut so much a her that is resilient.

when things are down she goes right on. >> the 11-year-old malty pooh was limping when kathy came home. lulu has knee problems so it wasn't a surprise, but the diagnosis was a shock. >> he called the next day and said she has a tumor there and it's probably a sarcoma. aggressive and has the potential to spread and is more likely to occur. one in three dogs will get some form of cancer in their life time. lulu's family tried something cutting edge. >> and it's called phyto-cure. it creates targeted treatment using human cancer drugs. >> what that means iss a characterization from that tumor and we understand what's driving that dog's cancer. we come from the principle and the scientific principle tt

every cancer unique. >> the she's ceo of one health. shes says phytocure is as expensive as chemotherapy which can cause overall $1 cynthia put it, and is expected to reach $3 million. she used normal chemotherapy than she would normally, and i am noi able to come to the client and say here's how i will provmae it. >> the sample of 38 dogs that did not respond to other treatments and were condered terminal. are about they were given drugs by a vet using fidocure. they were given treatments from 13 months ago to two months ago. as of now, almost two-thirds of those dogs are still alive.

>> good job! that was perfect. >> lulu a is in remegz now, relief for her family? she keeps on tickinging. >> for neaty business report, let's talk a look, and the was was -- and it was the nasdaq and s&p higher and that's "nightly business report" for tonight. i'll kelly evans. that for watching and have a great weekend, everyone. we'll see you monday

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