this is "nightly business po " with bill griffeth and sue herera. >> fed speak. the central bank chair calls inflion pressures transitory, and investors wonder if an interestate cut is now off the table. >> sell in may and go awa it's an old adage on wall street, but are you better off ignoring it this year? >> textbook merger, a merger creates a ipowerhousethe world of higher education just as the entiretr indus undergoes massive shifts. thosetories and more tonight on "nightly business report" for this wednesday 1st. and we do bid you a good dy evening, every and welcome. it was a relatively quiet day on wall stree today until federal

reserve chair jerome powell dashed any hopes of an interest rate cut. at least that's how the market seems to have interpreted his comments on inflation during his news conference today. during their two-y meeting, central bank policymakers decided to keep rates unchanged and that was not a surprise, but speculation about the fu sent treasury yields higher and stocks lower. the dow industrials fell 162 points about the low w session to 26,430. the nasdaq was down 45 and the s&p was down 22. in washington, steve liesman has more on what the fed >> fed chairman jerome powell tamped down expectations, saying the drop in core inflation which was food and energy and less of a concern, and it was likely to be transitory. >> the cmittee would be concerned if the inflation were running consistently above and below 2% and we do see good reasons to think that some or all of the unexpected decrease may wind up being transient.

if we did see a persistent inflation running persistently below then that is something the commitould be concerned about and something that weke would tanto account in setting policy. >> powell pointed specifically to recent shortfalls in prices for financial services and for apparel and hey' believesll work their way out of the data in coming months causing inflation to firm. for three straight months for 1.6% year over yea fed's 2% target and the market his come to believe it and declining inflation could be ah reason fored to cut rates in coming among mo and the lowe stock prices and higher bond yields as the market thoughttw e about whether the rate cut was coming and they made positivenoomments on the e and the outlook and noted that the labor market remained strong and that economic acvity is ising at a solid rate a powell in his press conference said some of the risks that have kept the fed on rate on hold at ease. >>t appears the risks have

moderated somewhat. global financial conditions have eased andecent data from china and europe showed some improvement and the prospt of a disorderly brexit has been pushed off forrtow. r, there are reports of progress in the trade talks between the united states and china. the committee views these developments along with the outlook for tped growue growth, strong job market a pressures have continued with patience. >> while a cut may not be in the card, neither is a hike. in the fed's new policy of l patience, the market wve to wait am the data clearly signals the right path for rates. for "nightly business report," i'm steve liesman in washington. >> it is the first of may and investors often start this month by asking whether they should take an old adage t heart and sell in may or goway. bob pisani went in search of some answers. >> selln may go away. it's that tim y ofear again and t out.ime you may want wanot to

investing in the dow jones industrial average between november 1st and april 30th and cashing out and switching into fixed income for theext six months and that has dramatically outperformed and just owning the w from may 1st to october 31st. if you invested $10,000 dow in 1950 from may 1st to october 31st you'd end up with a little over $11,000 today. that's a measly gain of a little over $1,000 in 69 years, but if you invested the same $10,000 from november 1st to april 30th you woul have had a return of over $1 million, according to the stock trader's almanac and that's huge and tt's the power of compounding interest. why does the dow do better between november and may than betwd november, and there's slower trading tctivity summer, back to school and end of the third quarter portfolio winrewing that's caused stocks to sell off.

in septeer and sometimes october which is why september and sometimescter typically bad months of the year. when you move into november,an cos efforts in the fourth quarter to beef up their drive their market higher as do holiday shopping and the year-end bonus money. s >>l in may does not mean may will be down and each the next six-month period will be down. it doesn't mean that. the point is most of the market's gains occur november through april and the market tends to drift sideways and more prone to sell off in the may through octoberfo period. nightly business report i'm bob pisani at the new york stock exchange. >> let's tur mark bailey for more sell in may and go away a fpb capital partners. thanks for joini me today. >> good to be back. >> you don't think it'sood this year, why? >> we do not for a couple of reasons. one, ifou look at what happened in the past six months it's basically been an okay

pe iod. the dow up 6% and that's not that great. if we were to look back and in the dow was up15%, 20% you might say okay, now is a chance to take a w breather and think the next six months we could see the same type of upside and wet do w to be invested and the second piece is sort of looking at the alternative and fixed ing in, you're really not looking at a whole lot of returns and for us we'd rather stick with equitiesn the next six months. >> you also make the point that you don't just have to get it right once. in other words, when you decide to get out and shift into another asset class, but hou ale to get it right the second time when you decide to go back in to stocks. >> that's right. it's two different decisions. you have to be smart on selling now and you really have to be smart by getting back in november. it could be pretty difficult. we could get into the behavioral pieces and procrastinating and buying back and anchoring to the sale price now and there are a lotnof concerns in fact, another way of thinking

of it could be twistin yit around i're a buy, sell or hold investors and you want to always remember to buy in november. that's silly and f you have cash, put it to work in november and it's easier. o youy make one decision instead of two. >> you're staying with the inrket right now and which sectors do you will do bests over the next six mon soor so? >> we do think tech continues to rally an companies that are growing over a number of years and we see that continuing and health care is looking more interesting anal names are beaten up a w like the pharmaceutical names and there are interesting companies out there we're not major over, under and any particular sector. >> if y wanted to go into fixed income, what part of the yield curve would y favor? we still like the front end. at this point you're not getting id a whole lot to go out the curve. if you want to lock up your money for five to ten that's fine, but you're really

not getting a whole lot of return. at this point we' rolling over very short term. the six month, one-year, possibly two-year bonds a little bit more than that,nk but i t at this point that's probably the best way to go. at some point u get a better yield curve and you can go out a few more years. mi bailey with fpb capital part?rs. thanks a joining us. >> thank you. private sector job growth grew lastonth according to the payroll report, employers hired7 000 people in april and that topped the estimates which were 180,000. the increases were concentrated in the services sector. the report is often considered anarly read on the most closely followed non-farm payroll report which would be issued by the labor market this friday. meantime, mtiufacturing ty hit a two-year low last month as orders of new goods inclined. theut for supply management blamed trade issues and global growth headwinds for that slowdown and separately,

construction spending unexpectedly fell .9% in march after three straight months of wgains and that decline due to a drop in private and public construction projects. e world's major automakers reported their u.s. sales figures for april. nissan and subaru posted increases while nissan saw sales fall last month. the mixed picture saw as the new car according to edmonds is expected to climb to more than $36,700 the highest level se so far in 2019. time to take a look at today's uptrades anddowngrades. mcdonald's was downgraded to neutral from buy a lambeau research. that stock was made on the stock's valuation and n all-time high and the analyst noted that the company's solid comp store sales growth. the stock was down more th 1.5% in today's trade to 194.17. corning was upgraded to buy from neutral at bank of americal merr lynch.

the analyst cited the potential for growth given the near-rm investments and price target $40. the stock closedt 32.31 up 1% and take two was outgraded to market perform from cowan. the analyst calls take two the most attractive oppornity in th video game sector. ice target $113. at stock rose 2% today to 99.05. coming up, high school seniors are saying yes to colleges and parents are saying yes to taking on more debt. some things to think about beforeigning on that ♪ ♪ ♪

cvs issues a healthy marke outlook. the company surpassed earnings and revenue estimates thanks to growth in the etna health insurance business. its pharmacies filled more expensive drugs and the new health hubs centers in houston attracted more customers than expected. the stock was up 5.5% to 57.33. humana tndped revenue earnings expectations thanks in part to higher premiums. arthe companyd that its 2020 earnings being take a billion dollar hit from an industry-wide fee and a proposal to overhaul rebates. the ceo also said he would not back any legislation that would make private health coverag illegal. that's referring to the medicare for all proposals being discussed on capitol hill. shares fell more than 43.5%. estee lauder lifted the full-year guidance for the second time this year. th cosmetics maker reported better than expected earnings on

strong demand for its luxury skincare brands. the stock was down a fraction t. . shares of cruise line royal caribbean is making waves after posting strong, quarterly results. that company reported an increase in both passenger ticket sales and onboard revenue. following those results the stock sred by nearly 7% to 129.03. online ticketing company eventbright fell sharply in after-hours trading tonight after reporting a wider than expected loss and it warned that second-quarter results could come in below alyst expectations and that center the stock lower in after hours and it closed the regular session at 24.15. also after the bell tonight, alcomm reported better than expected earnings and revenue, but the ceo told cnbc the weakness inhina affected their guidance. the company also disclosed it's going receive $4.5 billion from apple as part of the recent legal settlement between those two companies.

the stock wase volat in initial after-hours trading tonight. >> some are calling it a win for wynn. massachusetts regulators will allow the casino company to keep its gaming license in that state, but it wiave to pay a multimillion fine in the wake of a me too scandal that embroiled the company in a ar-long investigation and endangered big casino plants for boston. contessa brewer has the details j . >> the decision to allow wynn resorts to keep the massachusetts license surpassed for the encore of boston harbor. the integrated casinoest is scheduled to open in june in everet. itn't a sure bet. in the 15 months since "the wall stre journal" first a list of obligations against steve wynn, the company was scrutinized by investigators from nevada and >>ssachusetts. ou were making excuses for high-level folks that had failed to do their job. >> those investitions

concluded company executives repeatedly, over years,d fai to protect employees and failed to apply their own policies to steve wynn after serious accusations of rape, harassment and other sexual misconduct, charges he's denied.d e company, its board and executives never informed gaming regulators when they learned of the allegations and settlements. the company was assessed a $20 million fine in nevada and a $25 million fine in massachusetts, and they d tre is no substantial evidence that wynn resorts provided false or misleading information for executives. >> they were found suitable to hold t gaming license including the only two remaining individuals from the original license application in3. 2 elaine wynn, the company's largest shareholder and co-founder and ex-wife of steve and ceo matt maddox, but the commission f maddox $500,000

for his own failures to investigate allegations properly and ordered him executive coaching for leadership, an embarrassingan repr for the ceo of a global company, but maddox was given credit for significant changes made by wynn resorts in the scandal's wakw board member, new policies and a new culture?ev this companys going to be about a person again. >> gamers are upbeat about the decision and they call it an optimal outcome anday it allows wynn to focus on the future of alobal scale especially important as wynn resort competes to win a gaming license in japan and it's launching its gleaming new property on the shores of bostob . contessa brewer, nightly business report. in other news, two textboo giant announced that they plan to merge. we have this deal that's approved by regulators and the combination of mcgraw-hill education and sendgauge learning holdings will produce the second

biggest publisher of textbooks with annual revenuef more than billion. we have the two ceos of both companies tonight. abanjari is the ceo ofl mcgraw-hnd michael hanson of send gauge who will become the combined ceo of mcgraw-hill. >> thanks to both of you. who called who? >> can start if that' acceptable. >> okay. >> i had the chance to meet wite mi in july or august at a conference and we were introduced by a futualend and the conversation quickly led to a situation where we understood that we were looking at a common vision of what we st id of ourustries and a vision of what would be an exciting future for us and that led to more conversations and making a recommendation to our financial rsspon

>> and i guess you feel doing it together you can do it more cheaply then, is that thedea? >> for sure there is a basis for if you have a common core and a common backbone, you can allow yourself to iest in the business that is private growth and you have to find yourself the opportunity tonvest in growth. the idea is to bring the cost of textbooks down. that's a big cost for college students. how are you going to do? th this doesn't stop with the merger and we have started this do this way before the merger and, you know, education costs are a real barrier for students today and textbooks are a part of that. >> right. so we started to intduce at sendgauge which is a gubscription model that instead of buy multiple textbooks you get access to all of the textbooks and youet it online and you get it in a very affordable way. >>ow much is that? >> $120 a semester or $180 a year and that compares to the

average student spending $500 today and it's a significant savings for the student. affordability is absolutely key to what w do and between the two companies we can continue to do this and dri even more value. >> is anyone else doing this model? >> pearson is the nber one textbook publisher and you will be the number twone comand is anybody using the subscription model? >> the mcgraw-hill is thetatus quo and something we plan to preserve because optionality and choice is very important to us and the inclusive access model is different from what michael described and making the course and the digital platform course available t students on the first day of class, mazing it easier fory them to at the point of registration at 50% to0 than if they were buying from the bookstore. >> college costs too much. we know that. how are we going bring the cts down? there is no real competition as we know it. students d c't shop forlege the way they would shop for growthing.

colleges d't price the way a dloething manufacturer would. how do you bring those down? >> you're hitting on the key point which is transparey and competition. we have a lot of competition out there. there are rental companies and amazon is in the market renti textbooks. so we have seen the competition and the competition has frankly, led us to sharpen our pencils and to foc thestudent, the student experience and on affordability and to your int, broader, every player in the system wheth it's college, an online college orny supplier in the system needsd to be h accountable to what we're having end we're for it and we're starting at h as opposed to other people who should be doing a better job. what do you think, should it be a drop-off in enrollment?

>> education is very important and i do agree that it has become very expensivend the publishers of content, have a rolelao and in fact, one of the drivers is affordability and se have multiple ways of doing it, choice an important factor and bringing down the cost of production and passing it back the student. we wish you well with the merger and hopefully it gets regulatory approval. michael hansen from sendgauge learning. >> thank you for having us. >> sue? >> bill, as we continue o education, today is the deadline for high school seniors to pick exeir college for year, but they're not just saying yes to a school, but also to a financial aid package. students aren't the only ones taking out the loans to cover that cost. their parents are, as well. so we brought back our senior personal finance corresponnt sharon epier son. she joins us with more on this.

it's great to have you here. i am all heres and taking notes. how big of an is ueis and how much are parents having to borrow? >> we talked about the student debt crisis and the fact that $1.5 billion is the amount of money that's owed to student debt and 45 million borrowers and a lot of those borrowers are paeshs and want only students. when we lookth a parent loans and the federal parent plus loans 3.4 million borrowers and 87 that they have borrowed and it's a significant amount is the amount that they're borrowing continues to increase and you're not able for more and the loan was over $6500 for prants that are borrowing, they're bow reporting a much larger amount

noop how do the parents' plus loans differ from what theio tradl student loan. >> of course, for the undergraduate, the rates are a lot lower whether it's subsidized or unsub sduzed. it's 7.6% and ad to that the oshlsio ridge n fee and you're talking about a $20,000 loan you end up ping it for a long period of time. >> you also talked about other options that patients have and don't forget to contact the financial aid office. io may have ak sched the offer and loot me let you know more about my child, merit based or need based and it has more money to give you and that's the first call. thext thing you have to do is look at the federal loans versus the private loans. we talkeeabout the differe in the student loan amount in terms of the rate. pr loans may get you a

lower rate depending on your credit and the last thing whether you're a student or pain because, one, you won't have the compounded interest on the debt, but al if you were paying on the student instead of taking out a loan, help the student max out their loans and thp them pay back their own so then they're paying it off while they're? school. >> thank you so much, sharon epperson. you want to shoot a basketball like aball-star. guess what? there's an app for that. ♪ ♪

♪ > okay, all you basketball fans, if you ever wanted to shoot a bal like a pro, now now can with an app. eric went to brooklyn to try >> it's game changing technology that'sur tning amateur basketball playerse next sharpshoots. homecourtn app that uses high-tech computer vision a machine learning to improve .hooti >> 49 degree >> the the shots made and missed, launch angle, vertical r andction time using just an iphone. no sensors and no high-tech equipment necessary. >> today you run, you'reyosing apple watch or nike run app or you can track all those milet and f. for basketball that doesn't exist.

so the first is how do we help people easily track their shots without strong do a lot of the manual work. >> homecourt is a top ten downloaded sports app in the apple store and it has more than a dozen college and pro teamus g it including joe harris of nets who this year led the a in three-point shooting and won the three. >> okay. i feel good and i did play center on myixth grade basketball team. yo and i went head to head to break it out. p >> that'stty good. >> joe's arc is bigger and his quicker time is much than mine. >> it was 20%. >> i did not each stand in the right spot. >> n consistent joe's shots are. the shots are tracked the same and mine are all over the place. >> we're in the world ofd analytics an technology and any time you can help to improve and get better. i'm all f it. >> joe plans to use homecourt in

his youth basketball camp this summer. as for me, i need a lot more practice. homecourt is backing from leading nba minds like steve nash,y lynn and mark cuban. for nightly business report, i'm eric chemy in brooklyn, york. >> very cool. here's a look at the final numbers on wall street.ow the fell 162 points and the s&p down 45 and the s&p 500 slid 22. and that is "nightly busins report" tonight. i'm sue herera. >> thanks for joining us. >> i'm billit gri have a great evening, everybody. we'll se ♪ ♪ ♪ ♪

>> this is "bbc world news amica." >> funding of this presentation 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! ♪

>>tay curious.