♪ ♪ this is "nightly business report" with bill griffith and sue herera. ♪ climbing higher. stocks rally for three straight days thanks in part to walmart which is givin amazon a run for its money. silicon prairie. start-ups are migrating to the midwest and chicath is a center of that growth. >> charge it. more people are using theircr it cards to buy things even as interest rates hit a 25-year high. those stories and much more tonight on "nightly business report" for thursday,6th. and we do bid you a good evening, everybody, and welcome. there are a few things ths investike to see. strong earnings, upbeat economic data and no negative headlines onde t today they got all three. walmart and cisco reported solid

beats. the latest report on housing was better than expected and trade tensions remain mostly in the background today and that resulted in a 214-point gain for the dow that closed at 25,862 and nasdaq was up by 75 an25the s&p rose and stocks are now up three days in a row making nday's sell-off seem like a distant memory. bob pisani is at the new york stock exchange for us. >> this has been a stunning rally. a stunning rally on exactly what's going on. we did have a couple of strong earnings beats from the like of walmart and t ciscot helped give the dow a boost and beyond hopesthere are still high about trade in general and that's really what the motivation is, and after the dow's steep 600-point loss on monday, president trump finly got the message and there's all sort of optimism and cheerful rhetoric on the trade front. in europe, on the nafta fund, when it comes to china tha ts thoughest one of all and hopes that treasury secrery

steve mnuchin and robert lighthizer might return to beijing soon to continue trade negotiations, but you notice something? all of these are just hopes and there is nothing definitive and suddenly all of this is going to get resolved and today's rally was fairly broad based and most sectors for matials and energy, health care and industrials are up about 1 to 1.5% and semiconductor stocks and xilinx all traded down as therump administration is preparing chinese company huawei from buying sensitive u.s. technology that would affect semiconductor names. for "nightly business report" i'm bob pisani at thek new york stxchange. >> as bob mentioned, walmart was one of the drivers behin today's rally. the world's largest retailer reported better than expected-earnings and solidified its position as an online powerhouse. courtney reagan takes a look at the strategy that's fueling its

growth. walmart fell behind in e-commerce and the billions it spent to catch up is ping off. foot traffic was higher. and comparable sales have gfown 19 straight quarters. the integration of stores and digital, walmart's legacy business a its most start-up arm are working together to fuel continued growth. from online grocery ordering with free store pickup to the newly announced next day shipping offer. >> the strategy and the company weighed out three and a half ars ago and it will take time and the payoff will be a good ff pand it's been better than good. >> the big box store wantssh pers to buy, how and where they want and hopes that consumers use the website and the stores because those that shopped both spent more. many are impressed with walmart's ality to change and grow in part because of its scale. the retailer's annual revenue is

more than thel revenues of am one and facebook combined. >> logistics, merchandisesing and supply chain management and 125, and 124 billion in 90 days and it may be more important than ever for walmart to secure its competiti a positio a potential for more tariffs loom. the retailers, chief financial officer brett bigs told me, quote, our goal is to be the low price le manage margins with customers and shareholders in mind. we haves strategat have been in place for month, but increased tariffs incre ed prices for customers. > >> we would expect walmart to be on the forefront to stay on the low price for longer as much as they can and this is in the government's hands. walmart will detail how much prices can increase and the good news for the retailer is because foodp makes such a large

portion of its business and two-thirsd of the costs areso urced domestically. the remaining one-third is imported for many countries, not just china, plus walmart's size and power gives us the upper hand in cos negotiations. for "nightly business report," yi'm court reagan. while the market appears hopeful that the trade result will be hopeful, one company finds itself once again at the center of this tousle a that is huawei and as we mentioned the trump administration wants to ban huaweing from d business in the u.s. and as eunice yun reports thats not going well in beijing. >> huawei warned the trump administration that the latest mo us could end hurting america's own high-tech am bigs and the chinese telecom, said it would hurt its companies and consumers and huawei said it's ready and willing to engage with the u.s. on product security. it came after president trump

issued an executive order from foreign adversaries. it didn't include mention of huawei and they called huawei a security threat. separately,he commerce partment added huawei affiliates to the u.s.' entity list, saying it has breached u.s. national interests. u.s. firms will soon be require to obtain a license to sell to huawei and the listing could ta effect thin days. the decision is likely to have a significant impact in awei's business since it is on tech giants like intel and qualcomm. the commerce ministry said that china opposes unilateral sanctions and the foreign ministry added that china would protect the right of its businesses. huawei is china's most successful national champion and seen as key to realizing being's ambitionso become a technology leader and any ban is seen asn a stack and also on

china's attempt to become a super power. i'm eunice yun in beijing. >> to the housing market now, construcon of new homes rose in april after a nasty pullback at end of last year. diana diana olick has more. >> housing starts were weaker than last year. demand was strong, but it was so bad at the end of last year due to a spike in mortgage rates that builders wnge left hol the bag and that has them playing catch-up now and i spoke with taylor morrison homes at cnbc's capital exchangee today. described it in striking terms. >> you get to the fourth quarter and it's probably holistically, the worst quarter we've had as an industry since the downturn, and we ended the year with a tremendous amount of inventory. dein mber, if you would to talk to? anybo every house that was going to be sold again, it was thatad.

people came into the year with inventory because the fourth quarter stopped. you can't jus pick uphat machine and say now it's time again, i need new starts. >> like other, palmerees high demand for entry-level homes right now and the high cost for land labor and strict regulatory compliance make it increasingly difficult to build the type of homes millennials want where they want. >> the whole drive as you can buy isn't as attractive as it wamany, many years ago. when we look at this minlial population and it's about a reird of the business the choosing to wait until they can buy what they want and they don't wt the hour commute. the houses are getting as small as they can get. >> it's first-ti buyers have to make the tradeoff on serces or continue to rent. i'm diana olick in washington. federal reserve

official says it should welcome a modest rise in inflation d an n't say whether interest rates would be cut in order to support a rise in prices and the economy appears healthy and the labor market strong. separately minneapolis neel kashkari said the central bank should not have been raising interest rates for the past few years. o called monetary policy tight. >> each with the interest rates it might be too low if you look at the interest rates thom credt cardnies are charging, rischel solomon explains. surprising come as a that according to the new york fed, credit card delinquency rates are rising andhat could be because credit card interest rates are also rising. 17% on average. that's the highest they've been in almost 25 years. buye rates started with a law passeds by congrn 2009 which limited a bank's ability to raise credit card rates on current customers. the consequence was many banks

started new custome at a higher initial rate. >> when the fed starts to raise, starting at a higher level you will creep uper to we are today. >> the fed started raising rates in 2015 and a total of nine s time far and contributing to the higher rates and all of those were programs that credit card companies offer. >> everybody gets these awards and the banks have to offset that and pay for that by higher interest rates. and then you throw in right now the high rates are causing delinquencies. >> the big winners here, credit card companies and banks issuing the cards. >> credit card lending is their major busins. they're earning good margins today. they are not seeing a big increase in - in their default rates and you see a seasonal increase and you sve that year, but year over year thigos look prett. >> it also points out that young people between the ages of 18 t9 re the most impacted by

credit card delinquencies, reaching 8% of all past due accounts. for "nightly business report" ochelle solomon. >> let's talk about the credit card rates and delinquencies and where we go fromra here. is credit card expert at nerd wallet. thanks for joining us tonight. h>> thank you fing me. >> so here we are. rates are the highest they've been in 25 yeahen prevailing interest rates are the lowest in decades and i realize a that credit card rate is higher because it's an unsecured loan, but this is really out of whack economically speaking. >> credit card rates are tied to the prime rate set by the federal reserve and that rate now is 5.5%ot which is the highest it's been historically and it is the highest it's been in the last ten years. >> so if the consumer is looking atthhat rate an banks have been increasing rates every time the fed moves, what is the

responsibility of the credit card company to notify the customer of that? >> ordinarily a credit card ompany has notify consumers within 45 days of a rate increase and if it's due to an increase in the prime rate, therredit card issoes not have to notify the consumer about that. are they going much higher? what do you think? >> it's hard to say. i'm not sure wt the fed i thinking of doing on. >> is it beholden to the fed? as long as the fed is on hold rightow which they seem to be are credit card rates on hold? >> not necessarily because issuers can choose to increase the amount of interest they charge on top of the prime rate. >> what about the delinquencies among theilnnial investor and the millennial consumer and why are those delinquency rates higher? >> well, younger consumers have not reached their peak income

earning potential and many are saddd with many high student loan payments every month and that can be really hard to budget for so that can contribute to the credit card delinquency among a younger audience. >> is that a viable alternative right now? >> it always pays to shop around with financial credit cards not any exception and a lot of interest rates you could be offered by the credit card have to do wityour own credit history and your own income. >> the less risky you areo lend money to and so credit card issuers are moreikely to grant you a more favorable rate on a credit card than i you have a shorter history and lore income. sarah radford with nerd wallet. thanks for joining us tonight. >> t >> time to take a look at some of tonight's upgrades and downgrades. kb home was upgraded. the analyst cites stronger

prices for new homes. the price is $30 and the shares rose to $27.37. cy's was upgraded to neutral from sell at goldman sachs. the analyst sees potential near-term catalyst for the stock even as the company faces medium-term challenges and the price target is 21. despite the upgrade the shares fell to $21.50. >> still ahead, a new airport terminal that's ready for takef. >> tired of cramped and old airport terminals? cheche out whenre doing in new orleans where the big easy is in the midst o a big airport project. i'm phil lebeau, that isg com up on "nightly business report."

>> china's coffee start-up in lus expected to start trading on the nasdaq tomorrow. this company's looking to raise s profile here in the u.s. just as rival starbucks is planning to expand in china. kate rogers looks at this brewing rivalry. >>. >> china's coffee culture is headed to the u.s. when it starts trading on the nasdaq. the upstart is not yet two years old, but its growth has mushroomed. >> the start-up has 2500 by year's end which would overtake starbucks as a dominant presee in china. analysts say starbucks which has referred to china as its second home market has an advantage given its two decades of operations in the hiuntry. >> i it has an advantage with starbucks building its brand on experience in the reon and particularly with the upscale roastery and other upale, modernocations. i think it does give them a leg up. >> while starbucks mak money, luckin iswi moving as much

cash as it takes in. even as coffee consumption in china grows. ckin's strategy is to offer deep discount, delivery and cash-flee stores and whi that's attractive to some consumers, experts say there's leakly room for growth. >> starbucks is ver focused on experience and they'll have success among younger chinese pronals and companies like luckin which focus speed and convenience and they'llontinue to satisfy that need. starbucks ceo kevin johnson has said that some of his competition's heavy dis are not sustainable and luckin plans on continuing offering low prices and something investors will certainly be watching to see which bet wins o long term. for "nightly business report," i'm kate rogers. hi>> when you starts-ups, you'll likely think of silicon valley in california or silicon alley in york, but companies are getting off the ground in the moowest. juliatin is in chicago tonight. >> the midwest start-up scene is

t and it has name. silicon prairie. chicago is the city at the center of its growth. uptick is one example of a company thriving here, using artificial intelligence to analyze data and predict ivan littics and it mines billions of data for transportation energy and manufacturing companies making 4 million predictions an hour. its customers include the upi. army, catar, berkshire hewlett-packardaway energy and rolls royce. the ceo has founded nine >> this is a spectacular place to have companies and few as spectacular as chicago in the uptake and it about helping industrial companies be better and we're in the center of american industry, the midwest, weir right her in chicago. >> in addition to chicago's history it has an educated and diverse workforce with dozens of

colleges in the area >> it is headquartered in skokie, illinois. it transforms pollution into ethanol which can be turned into jet fuel partnering with virgin atlantic to reduce carbon emissions. it has enabled her company's growth. >> the chicago area has a lot of real greatniversities with synthetic biology and also engineering expertise and in addition, i really think this is a town with an attitude to get things done to build big, tough things and so that combination is perfect for the big problem we're trying toso e. >> while lanza aims to license its technology around the world inuding steel mills in china and thelo ees here in chicago are working to turn dangerous emissions into national productssed for medicine, food or fuel. while also fueling the feud of midwest upstarand for

"nightly business report." i'm julia boorstin in chicago and the 737 max planes in the air. >> that's where we begin tonight's market focus where it has completed a software update for the 737 max aircraft and this the is the key for getting those jets again following two fatal crashes and they're working to schedule a certification flight and boeing shares rose 2to $283.81. snap shares got a lift after facebook has thestand-alone app for direct messaging on instagram called direct and the app to market two years ago and it was meant to compete with snapchat, but facebook is now oking it down as partthe company's mission to consolidate its mission into a single platform. so snap shares rose more than 7% today to 11.42. ? after the bell chip equipmentmaker applied materials

posted better than expected earnings a reven and the results helped ease some concerns that thehe demand in semiconductor space was slowing. ithe closed regular session up a fraction at 41.66. also, after the bell nvidia's results came better than expected. none the less, shas closed the regularp a fraction at 116. it reported after the bellnd missed expectations, but its revenue grew. pinterest also saw global growth with monthly active urs and the stock dropped after hours and it closed the regular inssion up 8% at 30.86. >> f here in the u.s. has certainly become a challenge for a growing number ofasngers in part because america's airports are old, they're i crowded a need of major renovations and while many airports still struggle wit an aging infrastructure, some are

now building new, better terminals. phil lebeauakes us to new orleans where there are big projects under way in the big easy. >> the big addition at new orleans airport is almost done, a billion dollar terminal with plenty of gates and plenty of restaurants and gates tth handl surging air traffic. since 2009 the number of people flying out of new orleans has jumped more than 50%, topping 6 million travellers in 2017. >> as this market continues to grow we are in a better position to handle the growt and also we've done this in a way that keeps the costs of passengers to airlines on the low side. >>irew orleansrt, like others in the u.s. is bursting at the seamses airlave added more flights to feed america's appetite for travel. increasingly terminals are

packed and air pors is druggeling to keep up with booming business. >> in terms of new airports in america wene haven't seen built in decades and you go to china, and all they're doing is building rail and airports. these are economic engines for f the economy these countries and we are way, way far behind. >> some airports like new york's laguardia and salt lake ty are building all new terminals while dallas has added new gates and upgraded facilities to handle more flights and passengers, but billions more is needed and travelers are tired going old, one dumb airport. >> >> that was very important. we needed to come together to's place where we have it. >> there's nowhere to eat and you're stuck sitting on the

ground. >> when the new terminal in new orleans is finished later in the year it will cap aea five proyekt and it is not the end of airports in the u.s. they have to handle more people flyiin. nightly bs report, new orleans. going, going, gone. not even market volatility can keep money away from the ation block. ♪ ♪ >> here's a look at what to watch for tomorrow. deere is scheduledo report earnings giving investors insight into the impact of

tariffs on the agricultural sector. on the economic calendar we'll find out if consumers are feeling upbeat about their finances and a we reported, china's luckin is expected to start trading on the that's what to watch for on friday. the world's wealthiest art collectors are breaking records again. we told you about concerns that volatile markets and trade frictions can dampen the most important week of the yea for the global art market, but as robert frank reports that was not the case. >> bidders fro t aroun world helped sotheby's christy's and philips pull in more than $1.5 billion in sales. last night's the stainless steel sculpture of a rabbit sold at christie's for $100 million. the art dealer robert mnuchin

who bought the piece. he is the father of steve mnuchin. it was sold by the estate of tht late, gre conde nast chief newhouse who paid $1 million for it in 1992. it was buffalo 2 which went for $88 million. >> the auction s houses the week proves the market sho no signs of >> we actually feel the market has a good strength and not a cyclicalop. assets will go up and down. >> despite all of the hype over rabbit, the biwemoment of the was this. >> 55 million. > claude monet's 130-year-o painting of a hay stack at nset went for $110 million. it is one of only eight left in private hans and it went for twice t estimate. for "nightly business repo,

i'm robert frank. >> before we go, here's a look at the final das numbers on wall street. the dow rose 214ts po strong session today and the 500aq was up 75 and the s rose 25. that does it for "nightly business htreport" ton i'm sue herera. thanks for joining us. griffith.l if you're wondering about the ndage. i had a tko in the seventh round. >> you'll be fine. >> have a good night. see you tomorrow. ♪ ♪

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