♪ ♪ >> this is "nightly business report" with bill griffeth and sue herera. strong profits, disney reports better than expected-result, but the company that can't seem to do anything wrong also faces some challenges. >> the great unknown. the trade war betwehe u.s. and china could enter a new phase alobal central banks are on alert. >> getting grilled, lawmakers call ceos to capitol hill when public safety is a concern. so why haven't boeing executives toen asked to testify? those ses and more tonight on "nightly business report" for wednesday, may 8th. and we do bid you a good evening, everybo. and welcome. trade tensions were again in focus today and we will get to that in a moment, but earnings still matter, and that's where

we begin tonig withdisney's latest report. the dow component's profit early doubled in the latest quarter. its first earnings report since acquiring fox'sntertainment assets. revenues from its theme parks were strong and its direct to consumer segment grew and that helped offset the media investments and the decline in movie studio revenue. the stock whichits below its all-time high rose in initial after-hours trading tonight. julia boorstin has more on disney's results. >> the key takeaway from disney's better-than-expected results is parks, experiences and products divisn performed far better than expected with revenue growing 5% in the operating income growing this was driven by the domestic theme parks and resorts with guests spending more and higher attendance witas incre in average ticket prices as well as higher food, beverage and g.rchandise spend all of this growth comes ahead of a big expansion f disney's u.s.ar.

star wars galaxy's edge launching at disneyland later this month and then at disney world in orldo in august. for "nightly business report," i'm jiaoorstin in los angeles. >> on wall street, investors were in wait and see mode ahead of trade talks with the u.s. and china and the selling of the past two days,nd the buying did not pick up. the dow jones industrial average was up 2 points to 25,967. the nasdaq fell 20 and the s&p 500 was down four, and intel was part of the reason why stocks came under pressur late in the day. the dow component issued a three-year outlook that investors viewed as disappointg. >> also earlier in the day there was optimism over trade when the whe house indicated that china ors do want egoti to make a deal and the next round of talks is scheduled tomorrow evening and with a sizeable increase in tariffs still set to kick in very early friday morning there is concern that a full-blown trade war

could stunt already fragile,wt global g and that could change the thinking of central banks around the world. steve liesman has more. economists are taking seriously potential impacts on more tariffs on growth and earnings and on central bank policies. j.p. morgan in a new report says thatarfs could take 20 bases points off of full-blown tariffs could shave 45 basis points near a half a point off of global growth and u.s. earnings. the impact from the rise from % to 25% on the existing set of tariffs a chinese goods could take 2% off u.s. earnings and 25% tariffs on all chinese goods would take another percentage points off. nvironment n that now where uncertainty is rising and obviously, the tweet on sunday hitting markets now have to think about the possibility of that 25% tariff and the risk of fur escalation and you're seeing

equity markets priced that in. in terms of sectors mos hit by the step up and it shows tech and industrials getting hit the most and tre leading the market lower yesterday. >> and economists think a full-blown trade war or not could have apa decisive on the fed's next move. jeffrey says if there's a breakthrough in the trade gotiation, a fed rate hike as soon as late 2019 would be back on the table. medley global advisers cautions the trade war between china and the u.s. can force central banks intog that it's contingent upon how marks fare in heightened global trade ie uncertai if nothing else the trade fight has introded tremendous latility for growth, for earnings and interest rates for banksl for "nightly business report," i'm steve liesman. >> as you know, all week we've been talking about trade tensions and what it could mean for various industries and tonight we could talk a look at the trade sector and what could

be the tech deal and possible the stumbling block and that is intellectual property theft and we areby joine dan noyse. ipo theftas been a problem for a long, long time and in these particular tra talks and that's what it would be here and gauge what kind ofou success think we'll have in terms of stemming it? >> look, as someone that has covered tax 20 years you're talking helpeds of bilstons is n i.p. in terms of china and from the microsoft, the adobr, to othis continues to be a hot-button issue in the valley and that's why the trump administration, what they want is teeth in terms of tariffs and regulation specifically on i.p.r andember, this is all of the drum roll for 5g over the next 12 to 18 months and that is from a threat perspective going to be

the ufc battle between china as well as the u.s. >> ag huge stickoint in all of this, dan, has been enforcement and how do you enforce any rules that may come out of this deal and we assume that it's up to governm ts to do the enforcement, but is there a role for the companies themselves in this, do you thin w >> that' government is so important here because the companies ultimately only have so much power and they've tried again and again to try the forces and you goo up redmond and ask microsoft themselves where any other software or chipmaker and you c see a focus in terms of where this is the time where right now the u.s. really neeo enforce that and make sure that the goal henes are and the goalpost for a deal because this is the team and that's why there's such sensitivity to it from an i.p. perspective as this continues to be -- what i view as a major

overhang across the space? >> what are the odds, do you think, that we'll make progress? this has been a problem for a long time and the chitse haven' moved in past negotiations, why do you think they might now?nk >> i t now there's a lot more pressure put on the chinese in terms of what you'r seeing from the administration. that's where the tariffs right now, they're definitely in a position of strength to kind of tighten the pressure on china which you've never really been there before in terms of teeth, and that's why we continue to think there is a 60 or 70-percent chance of that getting done in the tariffs which in our opinion it would be a strong positive for t tech sector and not just to investors, but executives across the board and especially with 5g and what we saw between broadcom and qualcomm and how key that technology is goi to be going forward and that's why in our opinion the clock has struck 12

. >> stan, we'll wait and see. thanks for joining us. dan noyes with web bush serarities. has been a drive of the chineseowconomy and n it appears to be as dragthe world's second largest economy experienced a surprise drop in exports last month. u euni eunice yun has the story from beijing. >> experts fell by 2.7% from a year ago compared to expectations for a rise of 2.3%. imports jumped by 4% when the market was waiting foral al of al3.6%. the tk is that weak orders for the u.s. and europe were behind the drop in exports, chinese stimulus measures like a cut helpedoost imperts. they're concerned that tpresidet trump's latest tariff threat, one reporter told me he's

worried that the tariffs could kill his fbs one executive who has awe facility here in china he's worried that manufacturers like him will become dead i.the wat many in the supply china are talking about accelerating a naconcept called c plus one. it's a strategy that's been around for years, mainly for bigger companies to diversify their production base outside of china, but these days, companies of all sizes are now reviewing thisdipproach with fin an alternative supplier for every single critical component out of the country.pp ers are not only worried about the u.s. tariffs and they will not checkly alter the economic agenda for u.s. pressure and they have the next five to then, means a reesively pursuing partners, for nately business report, i'm eunice yun in beijing.

>> it is time to take a look at e upgrades a downgrades. mile an was upgraded from outperform at wells fargo. the disappointing quarterly results which we told you about last night the price target is $22. despite the downgrade, the stock rose 1.5% to 2189. u.s. steels downgraded to sel from neutral at ubs. the analyst there cites the company's loss of market share. the a price target is $1 the lowest on wall street. the stock fell 6% to 15.40. lending club was upgraded to overweight from neutral a web bush. the analyst cites the potential for 12 to nn%l revenue growth. the price target is $5. shares rose 12% to $3.62. >> still ahead, hlawmakerse been calling for a number of hearings on boeing 737 max, but one person in particular has not been called to tes ♪ ♪

there were some tense moments at a ge shareholder meeting in suburban new york. one retiree expressed his frustration with former ceo jefe immelt under w tenure the stock lost half of its vpue. larry c addressed the shareholders' call to halt the supplementary pension payments. >> there are finding such that serious misconduct has been uncovered and clawbacks would be in order. as you well know, t barter for clawbacks is high and it is that of serious smisconduct opposed to business decisions that did not g as anticipated or as

hoped for. >> ding that meeting, executives announced that shareholders had approved the company's executive compensation plans and they rejected a proposal to appoint an independent chairman. the stock rose a fraction to $10 a share.be >> it' almost two months since the faa and regulators around the world grounded boeing 737 max and since then the company andnvtigators have been probing what's wrong with the plane and what led to the deadly c. there have been hearings on capitol hill where regulators have testified and phil lebeau reports and dennis mullenbergs on the hot seat from investors to invtigators many are scrutinizing how mullenberg's company developed the737 max and how did that lead to three crashes that killed 346 people? while those rung the faa and nba have been questioned about the maxmullenbergas not been

asked to tough which surprises some. >> are tdy interesn total transparency and do they want to hear from the top people and i think there sea a little bit of door the moment about why the ceo has not testified and why hearings hav't been held. istorically, congress moves quickly to question ceos in the midst of a controversy and toyota ceo fw in fro japan to testify about the safety of toyota models suspected of in nded acceleration. four years later,, ceo mary barra found herself in d.c. explaining why the company sold millions of vehicles with faulty ignition switches. >> what mary barra did was she didn't pinpoint what the problem was. she said here's what we know and here's what we don't know and here's the process to get to those answers. >> mullenberg may testify at some point in the future and it's supplying information to

lawmakers probing the plane, but with many in congress more focused on questioning the trump administration it is unclear how many moreearings there will b about the max. another one is scheduled for next week and will feature the heads of the faa and the ntsb, but much like previous hearings, no boe executives are scheduled to testify. phil lebeau, nightly busines report, chicago. >> now an opinion about neing's stock wall street is generally positive. and there are no sell ratin from analysts. severalbu havratings and a few are avoiding the stock right now with hold ratings. we have two analysts with us tonight and allen gibbs has a hold rating and gary bradsthw he hodges fund has a buy rating. good to see you both. thanks for joining us tonight. >> aaron, we should point out, you're not br earn, but you're not buying the stock right now. why not?

>> yeah. i feel that this stock is either a market just slitly underperform and i don't necessarily see it going down that much further, but definitely inunderperfo the broad market and i am in a wait and see position because ultimately, boeing really does have strong fundamentals. it's just that you don want to buy it while you've got negative headlines every singl day a the faa review keeps getting pushed back to later and later in the summer. so it's a bigger and bigger hit plane.r sales for that so we're really going to want to wait until we see the second quarter report whichomes out at the end of july. we'll have clarity of the faa is moving forward on their review and how much of the 737 max is hitting the revenues because it is so unclear. we know it's a small p and we'd like to be a little short. for us, we want to be on the sidelines and we want to wait

and see and the end of july period there will be more around the stock. >> gary you're bullish on the stock and you've pointed out erthat they've not lost o at this point. >> you're right and it is a core holding at e blue chipund and we've been adding to boeing. you know, granted, this a tragic event, but it reminds us a lot of the 787 battery issues back in 2013 when we were buying the stock at $74 and we know that boeing's got every inch in there and dennis mullenberg and his management team is working 24/7 to get this right and we think that the fix on the 737 max wille happen in second half. we think the faa will approve the fix and lift the grounding and then boeing will ramp back up production and yes, profitability will be down a touch this year over last, but

with the seveno eight years of deliveries in front of boeing, we think they can earn $23 in 2020 when they ramp back production. we think the stock's dirt cheap at this level and we think cash flow could be at $30 andprt wouldn't se us to see the stock go back to its old high of $445 over the next 12 to 18 months. >> right. and that's a great 25% increase. >> very quickly, gary. you don't think thereill be any more cancellations? you don't think ther be a chilling effect the longer this goes on? >> well, there could, bill, but at the same time they haven't lost any orders yet. the 737s have always been a cash cow and we think they'll get this fixed and the airline industryee this plane. so we don't think there will be cancellations out there. > erin, they raised their dividend some 20% and it was a

decent quarter percent on the stock. that doesn't coveragmpel you? you don't want to wait until we don't see the headlines anymore? >> we have a saying, you don't want to catch a falli knife. boeing has multiple issues. not only is it being investigated by the faa and the fbi with negative news and we have the trade war issues and if we face tariffs they could face incr costs which could eat into the profit margins and there's just a lot of uncertainty and i don't see that t tting in right now, even though it's cheap,uld get cheaper and i just feel it's a little earlier and i wanto see more clarity before i feel comfortable getting in. >> eri gibbs, and gary bradshaw with the hodges funds. always good to see you. thanks for joining us tonight. >> new premium burgeps hel wender's earnings s that's where we begin tonight's market focus and the burger chain reported better than expected earnings and revenue

and the launch of its new premium burgers and the company announced it introduced fresh ef burgers to entice customers for premium fast food and shares rose 4% to 19.20. online subscriheion groekts ed the new york times top wall street expectations and the times now has 4.5 million total iptions with the goal of 202 2025. shares rose more than 4% to 23.30. walmart plans to increase the minimum age to purchase tobac products to 21. last month the fda threatened to find walmart along with half a dozen store chains for illegally selling tobacco products to minors. walmart's stock fell 4% to $1.30. they had their shares finish lower. >> barrett gold reported better than expected enings thanks in part to progress of the

stratec initiatives after its $13 billion merger with ram gold last year. the shares fell more than 1% to $12.57. parse orn parsons and the i.t. and engineering provide debuted today. the company priced its shares aa $27 each during an interview, the ceo charles harington said his company is >> we're a company that transforms several times in history and been in missile fense since the '40s. we're a company that's cyber, intel and critical infrastructure. >> we were public from 1969 to 1984. the last two years on the new york stock exchange. we always thought we'd probably go public again some day and we've done growth through m and a a this helps us continue that path. shares rose 11% oaythe first of the return to the new york stock exchange at $30. after the bell fox beat wall street estimates after selling entertain amsets tos disney.

it revenue increase was due to affiliate and advertising growth. the stock initially rose in after-hours trang and closed the regular session up a fractionomt $36.82. >>g up, some uber and lyft drivers send a message to the companies ahead of uber's wall street debut. ♪ ♪ >> cgoogle's sendar pathay called it one of the most important topics of our times. having access to people's data

makes google's service run better and that all users should expect their privacy to be protected and he said privacy protection cannot be a luxury goodoffered only those who can afford to buy premium products and services. tech companies more broadly have come under fire for lawmakers about how they handle their customers' information. >> general motors said to admit todayhat it is in discussions with electric drugmaker worse force to sell its idle plant in lordstown, ohio. the deal has not yet been finalized and gm sent a statement that president trump first revled it was in the works. it announced the creation of $450 new manufacturing jobs at its facilities in toledo. theylanned to cut costs in order to free up cash in electric cars and ride sharing services. honda will cut the numbers of models toward research and

development. toyota expects its cost reducked efforts to lift its operating profit. >> finally tonight, as you know, uber is scheduled to price its initial public offering tomorrow and begin trading on friday a reports today that the shares may be priced at horry below the midpoint of their expected right range, the ride-hailing company had set re.ween $44 and $on a s ahead of the ipo,rs d from its rival lyft organized in protests in citiesround the world today. aditi roy is in san francisco for us ♪ ♪ >> nearly 300 uber drivers speaking out at the company's glsal headquartern san francisco, blocking a major street and demanding higher wages and ben jits. >> wet want to tell uber that they need to stop exploiting drivers before they, you know, go on wall reet and start selling shares. >> the demonstrations began in london and spread across cities

in the u.s. including new york, god.c., chicand san frtcisco, n some places like london and queens, new york, turnout was lower thanin expected. brooklyn, demonstrators began the day with a caravan of slow-moving uber cars driving across the brooklyn bridge and while ride share protesters s w thld shut down the uber and lyft apps an uber spokesperson said the company saw a decboase of a 500 drivers in new york city which is less than 1% of the drivers in the city,g mak tough to tell whether the dip was a result of the protest or jus an anomaly. >> still protesters say they would keep pushing for change. w ash most movements it starts small and builds from ther the drivers have four demand, higher wages and transparency and decision making and employee benefits and a voice in company decisions. in a statement, an uber spokesperson says drivers are at the heart of ourervice and we

can't succeed without them. we'll continue working to improve drivers' experience for and with them every day. as part of the company's ipo about quarter or roughly 1 million uber drivers globally will be eligible for a one-time reward ranging from $40,000 depending on the number of trips the driver has completed. u.s.-based drivers will have the option to buy up to $10,000 for the money. >> they are charging them what they want and they pay us like peanuts. >> most uber and lyft drivers are part-time workers who are working f the ride shari companies for supplemental income. studies show that uber drivers make $18 t o$21 an hour average and the lyft spokesperson tells us that its drivers make about an hour. for "nightly business report," i'm aditi roy, san francisco. >> and you can read more about

uber and lyft on our websitet mbr.com. let's take a look at the time day on wall street. the dow was up about two point to finish at 25,967 and the nasdaq fell 20 and the s&p 500 was down four. is "nightly business report" for tonight. i'm sue herera. thank for joining us. >> i'm bill griffeth. we'll see you tomorrow.

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