this is "nightly business report" with bill griffith and sue herrera. >> reverse sturse. ks bounce back on reports that trade talks between the u.s. and china are still on. and investors exhale. for now. >> turning point? stocks, bo and commodities are suddenly volatile. so what's next for some of tmo widely held asset classes? >> did boeing wait to alert airlines and regulators that a safety alert wasn't working? a new report suggests it did. those stories and more tonight on "nightly business report" for monday, may 6th. >> and we do bid you a good evening, everyone. welcome. ae trade talks on. reports late this afternoon said chinese negotiato n are still planning to come to washington this week to continug hammerut a deal with the

u.s. that gave stocks a lift after they had already suffered steep losses this morning when investors were concerned that the chinese were thinking about puing out of the talks. the initial selloff was sparked by a tweet from president trump in which he threatened to impose additional tariffsn chinese goods this friday. he said progress was moving too slowly and he accused china of trying to netiate parts of a deal that had had already been agreed to. that caught the global markets off guard. shanghai fell more than 5% aovernight. aner a very rocky start heremorning, the indices in the u.s. were down but well off the lows. the dow was down 66 points at the close. it had been down more than 400 at the lows. the nasdaq dropped by 40 and s&p 500 down by then very late this afternoon, there was a meeting at the trade representatives office in washington. we were there and you found out there is a timetable now for the

restart of the talks and for the tariffs, right? >> that's right the chinese vice premier is expected to be in talks thursday evening and friday. the show will go on. but this round of the 11th round between the u.s. and china will be shorter and perhaps a little bit more tense considering that the u.s. trade representative ambassadoror said the tariffs will gontoffect tend of the day thursday, 12:01:00 a.m. on friday. the tariffs go up to a25% from o 10%il on $200on of goods imported from china. >> last week when leaving beijing, the treasury sheretary saideeting was productive. so what happened? >> the treasury secretary acknowledged that the meet hgz been productive and that both negotiators felt there was substantial progress that had been made t he said over the weekend the u.s. negotiating team was given

new information by china where they reneged on previous commitments and there was a significant erosion in what china was willing to put on the table. the treasury secretary sd that it was very clear that the language that was change wod have the pottial to change the deal dramatically. he said the president was willing to hold o on increasing tariffs so long as there was progress. once china backtracked on that, they didn't feel there ts. >> so wou are hearing? what is the likely hfd a deal this week or at all? >> the t there is a potential for talks to get back on track. it does appear that u.n. associating team losth in china that, they felt they had certain things that had been agreed to that were unrpinning the deal. certain commitments from china that at this very late stage of the game, cngna is wilo back out of. that certainly gives u.s. negotiators pause. they are cautiously optimistic that there could be some resumption o talksven if not a deal this week as expected.

>> thank you. aga >> on wall street today, it was all about washington. as we mentioned, stocks moved in lock step with headlines about trade. bob pisani witnessed all of the day's ups and downs from the new york stock exchange. >> very early on, we quickly rebounded off theday. infact, the low print of the day was right at the open. it was mtly up from there. we saw the knee jerk reaction of trading sensitive names, semiconductors and gargebal industrials like caterpillar or couple minutes. even that selloff is hal hearted. we met with buying by the middle of the morning. the additional tariffs are serious. but the market reaction indicates that trade doernltz believe that all out trade war is imminent. stocks bottomed out in the morning and ended around the highses for thend dayating that sellers were not met with any wave of additional selling in the middle of the day.

why is this? >> they believe that a trade deal will get down. donald trump is going to e continue to drything to prop up the market and ahead of next year's presidential election.ha that is just the market tends to believe. just look at what happened with th vix today. that spiked almost 19 overnight but fallen back down to 19 by the close.on op traders are not feeling the need buy more protection. fwhaz that vix reflects f a real trade war were to develop, the market is vulnerable. it is expensive right now. a trade war would reduce global growth and earning prospect. >> and billionairenvtor warren buffett acknowledged that a dangerous game is being played by the s two biggest economic superpowers. mr. buffet made his com during a wide-ranging inthe view

on cnbc tod whenhe asked him about the potential for an escala ton in tradesions. >> what do you think about the potential for trade tariffs coming back on and what that might mean for the trade talks? >> well, i can't gauge both sides and how they'll play the game. an some peopleegotiate in different ways. if we have trade war, it will be that for the whole year. it depends on the extent of the war. but there are times in negotiations when you talk tough. the one thing you c't do is you can't shake yourfi . i mean that is not a technique that works well. >> mr. buffet did not try to put odds on how the traud talks would turn out or mr. president trum whop follow-through on the tariff threat. >> but that threat has economists crunching numbers to

figure out thei impact of tarifs on the economy. steve liesman has that part of the story. >> president trump's tweetlahat he would tariffs on chinese goods threatens the u.s. economy with deeper and longer negative impacts from the trade war. economists estimate a modest impact from existing saying it would shave about 20 points off of gdp this year. amount.mall but about half of the estimated positive impact of the tax cuts. economists thought the negative infects would go away in 20 but they may have to go back into the forecast and with 25% tariff onap, downgrade the forecast even mods. >> those kf tariffs are going to have macroeconomic impact here. they're going to hurt american consumers if we really went to 25% on all chinese imports. it's going to make some products in the u.s more expensive that are eased by industry. >> there is also a negative impact on confidence and global growth that could hurt the u. economy. >> they can reduce chinese

growth by 0 to 0.5%. >> if there is upside, it comes after severalears of terrorists, economists say, when and if u.s. companies can replace the more expensive foreign goods. >> other negative impacts to come from lower stock prices. a recent survey showed 77%f market respondents thought there would be a u.s.-china trade deal this year. analyst was have to recalculate earnings of u.s. companies who use more expensive chinese components and mak other adjustments based on if and how china might retaliate. like with most wars in a trade war, economists believe no one really wins. for nightly business repo, i'm eve liesman. >> and the president of philadelphia fed said to date trade war uncertainties are weighing on businessnd the economy. he said he wants to see fair trade but tha t all thek about tariffs what was not healthy for the overall economy. the biggest issue many firms face is policy uncertainty. >> so what might thoserenewed

concerns over tariffs and trade mean for everything r stocks to bonds to commodities? here's a talk about that is ben phillips, chief investment yofr with vent shares to talk about the equity markets. collin martin is director of fixed income at the schwab centch for financial rese he'll focus on bonds. and scott nations covers s. commodit he is president of nation shares. gentlemen, welcome to all of you. thank you for joining our roundtable tonight. ben, i'm going to start with you. i know that you and a lot of other people think that basically a lot of this trade war talk is already in the market. the comments seem to suggest that things are not moving quite as smooty as the market thought. >> think you're right on that assessment. the market is looking at today pd saying this ist of trump's negotiating style.

he is a little bit of a brinkmanship person. he is saying this is something that i need to talk about. i need to iaddress. hink there is talk about him caving over the weekend. he doesn't like when people say at he is a caver or anything like that. >> at a time when the fed signalled no rate cutny time soon, so yields went up. so you're getting real mixed wins, you know, cross winds here forhe fixed income markets. where do you think rates are going with all that's going on right now? >> with tariff concerns that can lead to lower investor confidence, you know that, can help pull yields lower as well as stock market declines when there are periods of volatility and investors flock to the season that they provide, that p pushes price and pulls the yields lower. this is just supports our case that schwab that yield are likely to stay low.

>> aren't they already pretty low at this point though? >> they're pretty low. the federal reserve did send a sitive outlook. if we do see slower growth both domestically and aoad and if we see tighter financial conditions, that could lead to a d.t by the now that can be a good thing for investors who own bonds because lower yies can push up their prices. but it still makes it more difficult f investors looking for yields. >> handicap the reaction in the various cmodity markets that you watch. i know that we would see reaction in copper, in oil. but the agricultura markets have been very sensitive and volatile given this negotiating peod. >> very much sue. copper and crude oil give us the

best windo into what isoing on here. china manufacturing economy uses so much of both. and as you would expect, look, cop eastern crude oil had really ugly opens. they came all the way up and more. crude oil was up 1%. what does that say? that says that market which hass mind of own does believe that the trade deal is still on track and that we'reikely to get a deal. because both of those commodities would market lower if we really had to throw in the towel on a trade deal. >> n, we have aist of the companies that are the greatest revenue exposure to china. i'm going to start with four of the five are technology related. in fact, they're chip related. eight out of the ten arere computer chited. it doesn't get more basic than thato technologies exposure, right? >> that's right. the tech companies are thest grea exposed. that's why you see in the

premarket and the open, they were the worst performers. they clawed their way back too. we're looking at zilinx and kai works, we just started building position on them and morre pr on the trade talks. we're waiting to see if this r. goes down furt we'll potentially look at an opportunity to buy. >> if i can stay with you, ben. you also say that the individual investors should maybe get a little defensive inan health ca other sectors like that. what names on the defensive side doou like? >> this is a different p we like health care overall. we liked the manage care. we like anthem. we like united health, for example. and so there is some of the managed care providers and health care. we own teledoc. we like the health tech companies as well.he those areames in health care that are attractive in our view. >> before we let you go, scott, yo talk abo cross winds, the crude oil market. you have saudi arabia and the rest of opec that would like to seat pricef oil go higher. yet, if you get the trade tensions here in the tariffs go

in are going to get a slowdown that's going to push oil prices lower. what do you do he? >> you have to look at the fact that big producers have done a really good job of moderating their production. that is they scaled back their production a little bit. and that's why we see crude oil prices higher than they were at the end of last year. they're going to continue to that within reason. they realize they have to answer to the americapr people and ident trump. so they're not going to get ahead of themselves, bill. i would expec that they're ing to continue to be disciplined when it comes to production. i think prices are likely to stay about where we have seen and maybe get near $70. >> thank you for joining us tonight. ben phillips with event shares. collin martin with charles schwab and scott nations with nations shares. aime to take look at today's upgres and down grades. g cup of upgrades. sinclair broadcastas upgraded to buy from neutral at b. riley fdr.

the analyst calls the company's recently announced deal to acquire 21 regional sports knelt works a home roam. $57. nnat deal wasnced late friday. to date stock was soaring by 38%. and dish network was upgraded to neutral from underperform at credit swis credit suisse. price target now is $34. shares finished right a that level of $34.71. still ahead, what did it know and when did it know it? it's a question that has been asked before and now it is being asked about boeing.

tlnceps are newts that boeing may have waited several months before notifying airlines and regators that there was a problem with a safety alert system on the 737 max. that news and the increased ssade tensions between the u.s. and china ped that stock into n. today's session. phil lebeau has more tonight. >> shortly after boeing devered the first 737 max in 2017, theompany discovered a safety alert on the plane was not working. the alert involved the angle of attackto indi. a vein on each side of the max nose that measures the flit angle and alerts pilots if the plane is in danger of stalling.d or some airlines, if the data from those indicators do not match up, there is a disagree alert to notify pilots in the cockpit. bong now admits it waited months until shortly after the lion air crash to tell airlines the disagree alert was inoperable.

boeing says the absence of the aoa disagree alert did not ac adversely impt airplane safety or operation. there is no indication the lack of an c alertsed either the airlines r ethiopian max airplanes to crash. and boeing says the senior management was unaware of the issue until late last year. that's when the company told some airlines like southwest about the max alert not working. while it waited until earlier is year to tell other airlines like united. even the acting head of the faa didn't know about t issue until late april when he saw a press report about sait. the fa boeing's timely or earlier communication with operators would have hped to reduce or eliminate possible confusion. after public outcry about the lack of alerts for som737 max pilots, boeing now says it will make angle o attack disagree alerts standard in all max cockpits. all of this has some aing what

did the ceo and the boeing board know? and why didn't the company act sooner to notliy as and regulators? as those questions mount, the company has moved its chief legal counsel into a new position advising mullenberg and the boeing boardut the crisis. airlines continue to believe the 737 max will once again be flying some time later this summer. all of that is contingent upon the faa and regulators around the world approving a software fix for the plan boeing has yet to submit that fix for regulatory approval. phil lebeau, "nightly business report," chicago. kraft hindz will restate more than two years of earnings results. that's when we begin tonight's market focus. and internal investigation revealed employees fabricatedsa trions that increase the cost of products sold. the company said it will restate results as far back as 2016. warren buffett who is berkshire

hath sway kraft heinz largestar older says the company has the confidence. the shares were up a fraction today to $32.77. baush health reported better than expected earngs and raised the full year outlook. the drug maker recently had its dermatology business receive an fda approval for the lotio to treat psoriasis, a chronic skin condition becaused by an overactive immune system.pa the c did miss on revenue. investors didn't seem bothered by. dthat the shares jumore than 8% to $25.48. tyson foods posted better than expected results but warned african swine fever coulde impat industry on a level never seen before. tyson also voluntarilily recalled nearly 12 million pounds of their frozen ready to overconcerns rips that they might contain pieces of metal. he shares were up more than l.5% today to finish at $77.05. after the b tonight, aig beat analyst estimates as the

cefinance and insurompany saw notable rise in net interest inco. this repor also broke a six aig.ter streak of misses by the stock initially rose after hours and was unchanged in the regular session. they closed at $47.11. petroleum increased the catch portion of the offer for anedarco petroleum. she' working closely with anedraco's management and u believesing the offer will remove any uncertainty about closing a deal. oxidental is trying to derail chevron's agreement to buy anedarco. the stock troes $158.77. >> warenn buffett ry made a $10 billion investment in oxidental petroleum. today in that same interswru becky quick, he described his thinking behind that investment. >> you bet on oil prices over the long termore than anything

else. it's also a bet on the fact that thet basin is w it cracked up to be and that sort of thing. oil prices will determine -- will determine whether almost any oil stock is a good investment over time. >> buffet'sinvestment is contingent upon oxidental being successful in purchasing anedarco. >> super heroes have speed and strength andot avengers have when it comes to raking in the money. disney's avengers endame has gone where few films have

gone before. marking yet another milestone inr the film and the entertainment dustry. we have the details. >> avengers end game continues its record run with abo $2.2 billion in tic stales. never before has a film s generatedh a high box office in such a short period of time. it's only the fifth film to gross overon $2 bil worldwide. is thengers end game second biggest filmr eve behind avatar. it drew $2.8 billion in worldwide ticket sales back in 2009. bolstered by end game, disney is dominating the box office, sponsible for29% of allti ckets sold in north america this year. d dominance expected to continue with live action aladdin' and lion king films due out this summer along with t story 4. and end game has been a big win for theaters. drawing back the big screen and the box office declinedy double digits and one advantage of getting audiences back, t

opportunity to show trailers, to get them excited about upcoming films including spiderman far from home hitting theaters in july. r nightly business report, i'm in los aideles. d hager joins us right now to talk more about avengers milestones, disney dominated at the bofk office and by txoffice. what should we expect when they announce earnings. have you seen the movie? >> no, i haven't. my daughter has been dragged to it by her boyfriend already. >> these resultson't be in disney's earnings on wednesday. but it certainly going to be prettyood for them down the road, don't you think? >> sure. certainly for the june quarter ng to be a big positive for the studio part of the business. but interestingly, looking at the march quarter, the studio business may be having a little bit of a tougher com just with having had black panther come out a year ago and bringing if a

strong result. and certainly the captain marvel movie this quarter had a solid impact. but could make for a little b of a tougher comp in the studio part of the business. >> what about the overall pipeline of ntent, david they seem to be in the sweet spot. even taking the mar out of the equation. >> you know, certainly looki through the current calendar year, it looks like disney could have a stron late of movies coming up. obviously beyond avengers we have the toy story franchise and there is another addition of thf froznchise coming up. and then finally, in december we have the next epide of star wars coming out. so just a few of the many movies that disney has on what appears to be a very strong slate this year. >> briefly, you habe concerns t some of the media networks and some of the other divisions within the company, right? >> yeah, certainly in looking at the march quarter, it will be interesting. this is still just disney

without any of the impac of f in the picture and as you said, the avengers movie is not in the quarter and so the rest of thes ss, media networks will be looking for hopefully loss of subscribers to continue to moderate. it did slow down a little bitn e december quarter. and then certainly in the theme parks, looking for steady growth although there could be some seasonal impact with the w that t easter week this year falls into the june quarter rather than in the march quarter asid it a year ago. >> do you like the stock? would you buy it here? >> yes. we're positive on the stock. we feel positive about the disney plusonline service that's going to be rolling out. and the breadth of content that we feel that disney can offer on that service with its own library plus the fox library comingnto the pictures well. >> very good. david hager with edward jones,o thank youoining us tonight. >> thank you. take a look at the final numbers on wall street toey. ow closed down 66 points.

it had been lower by more than 400. the nasdaq dropped 40 and s&p 500 slid 13. > and that is "nightly business report" for tonight. i'm sue herrera. thank you for joining us. >> i'm bill griffith. cough. >> after we get off. >> all right. we'll see you tomorrow.

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