his is "nightly business report" with sue herera and bill ♪ ♪ apple's come. theny beats on earnings and revenue. its guidance was strong. its dividend got a boost and investors liked what ceo tim cook had to say. >> a new rip. general electric says the grounding of boeing 737 max is creating some uncertainty and the ripple effects don't stop th goi viral. it can help grow a new business, but for one entrepreneur it came at a very big cost. those a stori more tonight on "nightly business report" for tuesday, april the 30th. good evening, everyone, and welcome. the s&p 500 closes at a record

and we begin with apple and results of one of the world's most valuable companies and apple which is widely held in mutual fund, retirementnd accounts etfs reported better than expected earnings and revenue. the guidance was upbeat and investors breathed a sigh of relief, sending the stock higher in initial options trading, pushing the trillion dollar valuation and josh lipton has more from apple headquarters in cupertino, c ♪ ♪ >> apple no longer breaks out iphone units every quarter, but it does disclose iphone revenue nd iphone revenue came in at 31.05 billion and that was down 17%, but basically in line with what wall street had forecasted and an important market, obviously, for apples china and going into this quarter, some analysts said china was a bi of a wild card and had a chance to catch up with ceo tim cook and he sai trends are improving in china,

specifically, he talked about the trade relationship between the u.s. and cha. he said i mean the tone is much dabetter cook kept saying than it was in the november-december timeframe and that affects consumer confidence in a positive way. i'm josh lipton, cupertino, california. >> mcdonald's reported better than expected earnings and revenue this morning thanks to breakfast doughnut sticks and a one-time bacon event. the fast g food giant sabal sales were up 5.5% marking its 15th consecutive quarter of growth. the company also raised menu prices by 2% in an effort to ofet risingosts and the stock traded at an all-time high before settling back and closing up a fraction. three pharmaceutical companies reported earnings cluding dow components merck and pfizer. mehak reported better expected earnings on incre dema for vaccinesnd

keytruda. the company raised its 2019 prueit and rev forecast. pfizer also topped forecasts and raised its full-year profit forecast thanks to lower costs and hire sales of its blood thinner. it was a different story, though, for eli lly which saw revenue missed estimates in the face of g growingeric competition. shares of merck and pfizer rose while lilly fell. today marks thealf way point on earnings season and as bob pisani report, they are noticing key trends. >> that would be two consetetive quarrs of negative earnings growth, earnings are up 0.7%, that's not a lot, but a big change from a few months ago. an cysts beganting estimates on fears of a global slowdown led by china. by the early part of april, earnings were expected to be down 3% for the first quarter and a funny thing happed. earlieeporters like adobe and nike reported much better than

expected earnings. what changed erybody, wondered? the global growth narrative changed due mostly to central bank. first, the bank backed off from any rate hike in 2019 and everybody realized thatwahina stabilizing and not going down. europe was not as bad as feared and not great, but not as bad ar fe and the u.s. economy was still strong and everybody concluded, analyst hisut their numbers too much for the first quarter and that's why companies are beatingar estimates by greater amounts than normal. surprisesrnings for the first quarter is about 7% above theus conse and that's twice of the percentage fees and the companies beat by 3% or and they had to go back to 2009 to find those kinds of beat rates and as of now 2019 will likely seeodt mid-single digit gains than earningsnd well below 2018 earnings growth that was up by 20% and still quite respectable. the big problem forhe market

is valuation. the stocks are pricey. the bottom line is things will have to go right to justify these kind of high prices. there's not a lot of f room error and the risk is more to the down side than the upside. for nightly business report, i'm bob pisani at the new york stock exchange. >> on wall street, the s&p 500 eked out a record close while the nasdaq ret from its all-time high and alphabet dragged down the tech sector after rorting a revenue miss. something we told you about last night. when all was daid ande the dow jones industrial average was up 28 points to 26,592. the nasdaq fell 66. the s&p 500 added two. for the month of april all of the major averages saw solid gains extending the 2019 market rally, but what happs next? mi santolli takes a look. >> t stock market has had a pretty good year. the s&p 500 has gained 17% to reach a fresh record high.

the rally should slow down given that the current pace will take you toward a nearly unprecedented 60% annual gain and the more pressing issue is whether the potent blend of factors that has aloud the market to recover fully from the ugly fourth quarter 20% plunge stocks.inue to support the 2019 rally has gained its power from the federal reserve backing away from further interest rate hikes and stubbornly low bond yields and depressed equity valuation after december's drop and excess of investor pessimism to start the year and resilient economic growth and corporate earnings holding up better than feared. of those forces, it's fair to say that market valuation is noa longer given an s&p 500 trading above its five-year average price to earnings multiple, investor sentiment is much more upbeat and not yet getting over excited to where is pres a warning sign. seasonal factors begin to tn

favorable for stocks and stocks rose in each of the first four months suc had nded to fare better after may. the central question swirled around the fed and how long it will stay with its patient stance given the u.s. economy growing faster than expected and financial markets strikingly calm again. >> is fed chair jerome power truly prepared to sit idle until inflation picks up more convincingly and perhaps he will offer mor clues after this year's policy meeting which could help decide tth fate of rally that has started 2019. for "nightly business report" i'm mike santol. steph mnuchin and robert lighthizer are back in beijing today for the nex round of trade talks and they arrived just as new information was beingd releaon the chinese economy and its keynu cturing sector. eunice yun has more for us from beijing. j >> china's april disappoints.

the pmi showed factory activity expanded at a slower price and gauges small and medium side manufacturers, and a services pmi also missed and the industry still grew. any number bigger than 50 is an expansion. the main concern is that new orders are weak and expert orders grew, the trade deal and they stilld contrac meaning that global demand is fragile. despite a weake april some analysts aren't so concerned because seasonal factors were at play and they expect beijing policymakers to wait until the middle of the year before re considering mo stimulus. he latest round of trade talks begins in beijing and robert lighthizer and steven mnuchin are here m tot with chinese vice premier. the next twotseeks resn substantial progress. for "nightly business report" i'm eune yun in beijing. general electric reported

nironger than expected es and confirmed its full-year guidance. the company burned through more than $1 billion in the first quarter which was lesn what wall street were ceo larry koch says this is one quarter in what will be a multi-yearransformation and investors liked the report sending the stock up 4.5%. koch warned about the grounding of boeing737 max, calling it a new risk for ge earnings a foreca ge delivered more than 400 engines to boeing for the firstor quarter installation on the aircraft. the company also owns several of the planes forts leasing business. and ge is only one companyf ed by the grounding in the 737 max fleet. the longer these jets remain on the ground, the bigger the impact will be on other companies and other ind ftries and it, on the whole economy and joining us to talk about that impact, sheila is the aerospace and defense analyst at jefferies. thanks for joining us tonights

>> thaor having me. >> you covered boeing and you have to be mindful of the suppliers, of the consumers and the companies that buys the j that also were affected by the grounding of the 737. of an impact is that going to have, do you think? >> there is the whole ecosystem and the wanufacturers which cover and the airlines are being impacted and we're seeing that from uand american airlines as they're cutting capacity back and we have to keep in that the max at the time of the grounding was about 350 aircraft or so, so it's only 1.8% of the total global fleet of aircraft out there and ranted it was expected to increase at a arrest 52 a month and in terms of production and stil fairly small for some of the american airlines, and it is impacting their profitability. on the supply chain as ge mentioned, it'somewhat of a timing issue in terms of free cash flow and when they mig get their receivables. >> so will we see this in the bottom lineconomiceports that we get like gdp and the

like? >> so jefferies economists predicts that it could be a .2 to .3% impact to apruc pron and it will simply be a shift on production timing thanrm a long- impact. let's bear in mind that boeing is keepi its workforce employed as well as the supply chain at a 42 month and they're not stopping production although deliveries have halted. >> how long are you anticipatg or assuming that the grounds will be grounded. will impacts grow as the groundings last longer. we've seen somecutbacks in capacity up until august and so delivery halt es believe august and resuming at a rate of 52 a month, after that, and we have itin steadily cli up and we have a six-month halt in total, and we're see some signs of the faa

reviews and the modification in late may, and potentially, we're leavingome buffer for the international regulators to approve the fix. >> got it. interesting. sheila from jefferies. thanks for joiningni us toght. >> thank you. >> it is time to tak a look at some of today's upgrades and downgrades. google's parental fabbet was downgraded to hold from buy. the analyst cites alphabet's revenue growth following its earnings growth which we mentioned earlier in our program. rice target is 1,287 and the stock closed down 7.5% and that is its worst day in six years. alaska air was upgraded to overweight from neutral at j.p. morgan. the analyst cited the stock's underperformance so far this year and the price target is now $72. shares rose 2% to 61.90. >> still ahead, facebook ceo announces some changes andhe start of a new era. ♪ ♪

♪ ♪ ♪ ♪ >> the iuprising venezuela has turned violent. supporters of opposition leader ju guaido clashed with venezuelan security forces in caracas today. guaido has called for a military uprising to oust president nicolas maduro. these latest developments sent oil prices higher, but then when the state-owd oil company sai that operations had not been disrupted by the protesters

those gains were paired. domestic crude settled above $63 a barr. >> warren buffett just threw another curveball in the push to troleum, nadarko berkshire hathaway which he runs will make a $10 billion investment in occidental which then offered 38 billion for anadarko. chevron had offered 33 billion for the company. the backing gives occidental more leverage to fight chevron which is much larger. anadarko has w assets int texas and new mexico which is what both occidental andheon want. shares of anadarko and occidental fell today while chevron and berkshire were trading hire. president trump and democratic leaders today to spend trillions on picking our nation's crumbling infrastructure. house speaker nancy pelosi said their meeting at the white house was productive and senate minority leader chuck schumer said both parties want to get something done.

>> we agreed that for 25 years thatkind of big, bold bill we could pass would make america a better place and not just the one year or twoear. we agreed on a number which was very, ve good. fo trillio infrastructure. originally, we'd startedle a li lower and even the president was eager to push it up to $2 trillion and that is a very good thing. >> although few details were offered, schumer did say that another mting will take place in just a few weeks to talk about howr to pay e plant. now to housing. a new batch of data today giving i insighto how the spring selling market is starting to shape up. diana olick has those details. >> the new housing numbers proved just how sensitive consumers are to interest rates today.al pending home which represent signed contracts so people out shopping during the gmonth and ink deals jumped more than expected, nearly 4% in march compared with february.

buyers had added incentiven march as mortgage rates plummeted in over a year. the 30-year fixed topped 5% at the start of lastr novem and began falling and took a sharp dip in mch to just around 4%. penning home sales were lower thanks to higher home prinds those are shrinking. prices are up 4% according to s&p kay shiller, smaller than the gain in february and in one major other ma, san francisco, prices went slightly negative in march for t first time since 2012 according to core logic. that's becauseed prices overhe and the supply of homes for sale is rising and there is more pply in the market overall, but much of that is just because houses listed already are sitting longer. mortgage rates are slightly higher and they're cooling to w poinre buyers may finally be able to make a move. for yo"nightly business report" i'm diana olick in washington.

ha amgen helps the company top expectations ands where we begin the market focus. >> after the bell the company had better-than-expected results thanks to strong sales of the blockbuster treatment embrel. overall revenue was flat, but enough to beat estimates. the company is also raising the lower end of the full-year guidance and the was volatile in initial after-hours session and it closed down 1% to 179.32. general motors reported better than expec to decreased cost of more expensive truck, suvs and crossover vehicles and the automaker missed revenue estimates sliding market share. ceo mary barra said her company is staying focused on the future. >> gm has an industry-leading truck franchise and industry-leang electrification capability. i assure you, we will not cede front.dership on either we intend to have an

all-electric future including full-size pickups and we will share additional information when competitivelyro ah at. shares fell more than to 38.95. a rise in online transactionses helped mastercard. the ceo said the company will continue to focus new products and services with the like of apple and goldman sachs. sharesf mastercard rose nearly 3% to $254.2 ibm has raised its dividend by a nickel to $1.62 a share and that new dividend will be payable in june to shareholders of recorday as of 10th and the yield will be topping 4.5% making it theecond highest yielding dow component and it's the 24th straight year that big blue has increased its dividend and the stock was up a fractio to 140.27. health care services company hca topped estimat thanks to th sale of one of its facilities and the pair of acquisition and

the company raised its full-year guidance and hc arose 1.5% to 127.23. facebook isdi h its big developer's conference called f-8nd this year's ceo mark zuckerberg is using the event to outline the couple of's new vision, one that puts privacy front and center. juliaoorstin is in san jose tonight. >> mark zuckerbe says the future is private and he explained a major shift for facebook. >> it focused on the town square which is news feed and more on letting users communicatedi ctly with each other wit a emphasis on groups and encrypted messaging. >> i get a lot of people aren't sure that we're serious about this. inow that we don't exactly have the strongest reputatio on privacy right now, to put it lightly, but i'm committed to

doing this well. >> launching a redesigned facebook app fb5, rather than the news feed and updating ms. efrj mess to make it theub and information with close friends. your friends are sharing with you across the different apps. if f youlow someone on instagram you'll be able to see their stories and if you're friends with someone on bo fa, it will be all private updates from friends and no priva zuckerberg already reassured investors that these moves wouldn't dramatically impact the bottom line. >> across facebook's apps, the company is introducing more tools for businesses and laying the groundwork for e-commer. whatsapp i rolling out ways for businesses to show their products to consumers. instagram is making it easy f users to stop directly from the app without ever leaving and on ssenger, companies can use new

ads to start conversations with consumers. >> facebook also expanding itsn da tool including a new way to share if you have a crush and with every one of these announcements, the company wants consumers to know that their interactions will be encrypted and private. >> messenger is right there with whatsapp which led the way and it will become more private and more secure and end to end an encrypte arguably, you want the fastest and most reliable private center of your social expericece. >> ok show casing new augmented and virtual reality t tool which said will help people connect around the wlyld. for "nigusiness report" i'm julia boorstin in san je, california. >> coming up, entrepreneurs want their products to go vir on social media and for one there was a big down side. ♪ ♪

gettinge viral l attention and for one firm it turned into aal nightmare and the f straw which we introduced you to last night and went viral online, but the company soon found many posts were actually directing followers to buy knockoffs. and it cost them millions. >> the first collapsible, reusable. >> and the straw designed to save the planet and said to make millions. while attorneys worked to secure s and trademarks for the invention, emma cohen and co-founder miles pepper launched their idea on crowd funding site ckstarter and backers chipped in nearly 2 million in funding. >>n not my wildest dreams

could i ever have thought that done anything like that. >> but across the planet, h factoriesere in china were ready to rip off their big idea. >> there are hdreds of people that are copying t very exact product, the same straw. >> amadeo ferraro is one of the attorneys to keep final straw afloat. how brazen are some of these impofters? >> absolutely. braz they have complete disregard for all rules. i believe they'll do wharf they're going to do. >> today we successfully taken down over150nock off products out of the amazon platform alone. the straw spread on wildfire on social media with hundreds of ads for c uycats andng cohen's images. >> it was a photo of me with the straw and and for less than half

the price. >> they can use it at their discretion, however they want andhere's no body out there that's really enforcing it. >> we tracked down anen infr who got paid to st ad on her meme account. a meme account typically posts fun funny images and video they're not often revealed and the woman that runs this one has more than a million followers and agreed to ta on phone and said she had no idea she posted for a knockoff until weu reached >> i guess if i would have googled it, i would have seenhe this isn't actual company, but it is so hard to only do so much digging and this is his manager justin keller. he has 17 million followers including a meme page. >> is it tough to evaluate every

post before it goes out? >> yeah, it is and if you have the time and you're willing to do it between myself and the team that's separates us from other peo >> it's tough to be totally sure what you're posting is the real deal. >>o many different products and it's all about who can get there quicker and who can make it cheaper, who can have the higher margins. it's just a game. >> that's the industry like playing in pictures and living that lifestyle and a lot of a is fa it's the wild west. it's a gold rush. >> and they say meme accounts can be loaded with fraud. >> i've been turning dow more business now than ever because most of theusiness i get has phony products. >> we reached out to instagram fo comment. the social media giant tells us in part, we review every rti.p. re we receive and take action to protect rights holders whenomeone has used their i.p.

without permission andegding influencer posts when it comes to partnering with brands we encourage creators to act responsibly and with ining it riddy. for "nightly business report" i'm anda day >> the dow was up 38 points and the nasdaq fell 66 and the s&p 500 added 2 and for the month of april they saw solid gains there. that is "nightly business report" for tonight, i'm sue herera.ng thanks for joius. >> i'm bill griffith. see you tomorrow. ♪

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