♪ ♪ this is "nightly business report" with bill griffeth and sue herera. ♪ crude reriities. oils climb after two oil tankers were attacked in the gulf o oman and the white house says iran is to blame. >> production shift. some companies are moving operations out of china and into vietnam to reduce the tariff impact, but is it a risky bet? unconventional wisdom. when it comes to saving for retirement is the traditional approach edoutd? that for "nightly business report" for thursday, june 13th. y> we do b a good evening, everybody, and welcome. it's been a while sincehe ergy market was rattled like this. oil prices climbed after two oil tankers were attacked in the

angulf of which is near the strait of hormuz, a crucial g passageway fbal crude ship ams. the attack lifted the price of domestic crude by as much as 4% during the course of th day and it settled up 2%. this is a region between tensions between saudi arabia were running high anyway. the white house blad iran for attack.est hadley gamble reports for us tonight from the united arab emirates. u >>. secretary of state mike pompeo blaming tehran for the attack on two tankers in the gulf of oman and stopped short for calli for a military response. >> it is the assessment of ths united staovernment that the republic of iran is esponsible for the attack that occurred the gulf of oman. this is based on intelligence, the wead ns ud the level of expertise needed, and the fact that no proxy group

operating in the area has the a resournd proficiency to act with such a high degree of sophistication. >> the u.s. responded to distress calls at 6:00 and 7:00 a.m. local time today as the tw, tanker the front altear, and were engufrled lfed in flames. they're off the coast, anded in mid evaluate busiest shipping lanes in the world. and right off the coast of the uae and as prime minister shinzo abe was in tehran looking to mediate. ju hours after the attack, while i areciate t prime minister going to iran to meet with the ayatollah i think it's too soon to think about a deal. they aren't ready and neither e we. it's a big shift for the president tt he's said aga and again that all he's rating

for is a call froms iran and i singling a change of tone from the white house there hasn't been much of a response from countries in the region from saudi arabia and the ua and for "nightly business report," i'm hadley gamble. >> if these attacks continue to escalate,hat will mean for the price of oil and both the economy.d domestic we are joined by cool cooper, n analyst at ion energy. >> y tha. >> most of us were surprised that we didn't see a bigger reaction in the close on crude oil, why do you think that is in. >> the pricing factor limiting the price increases is the in inventories and they've seen u.s. petroleum inventories rise million barrels and that's second to a little over 92 million barrel incree registered all of the way back to june 2001. with ampleie invent there's simply less fear that a supply

disruption would truly cause ai ph disruption. >> having said that, though, as we pointed out at the top it's been arg while since e prices have responded to a geopolitical thent like , is the market trying to tell us something thir timend, do you think? >> it goes back to the inventories and quite simply the world is more comfortable since u.s. inventorire so robust and also, they're worried about the continuing implications of trade tariffs and what an escalation here would do to the global economy and thus demand. there's been a huge demand focus and this while highlighting the supply risk also points to the possibility ofow demand. >> and how much of a reaction would you see, do you think, on a global basis given what the president said that we're not ready to make a deal. these attack and these are not the first attacks and we don't have a trade deal yet with chin what are your longer term expectations? >> right now i'm still bearish in the near-term just because in general, if you look at the

markas over the year or so the market was bullish up until the october of '18 high of almost $77 and it collapsed into december and it ran up to 66.60 and now we have a and right now as i mentioned and had this event happe d two monto, i think we would have been up $3 to $4 and it re cects therent sentiment that's quite bearish across the market. >> what do you think opec does with all of this and they keep prices going up anyway a they hold the line on production cuts and in light of what's going on betwn saudi arabia and iran, what do you think opec does with it. >> the bare minimum they're going to try to keep the current production in place and to highlight the bearish sentiment and tre was a report that algeria was floating the idea of possibly increasing the current production cut from 1.2 million barrels and the market just doesn't believet and at a minimum, they'll try to keep this level and saudi arabia would like to see each further production cuts.

>> does it have implications for monetary policy? >> certainly while the fed doesn't say they react it and they a lot of times look atpi excluding energy and food. clearly the sentiment would be detrimental if prices were to rise significantly as a result of confrontation, but right now, obviously, that's not a problem and import t pricesay were lower and even actually a tettle weaker than exp so right now there's not a problem with the inflation, but certainly could be and certainly if there was a trueal eion that significantly spiked oil prices. >> all right. kyle cooperith ion energy, thank you very much. >> thank you. have a great day. to the market now, the rise in oil prizes did help lift energy shares which, in turn, gave the overall stock market a boost. it was the first rise in three days for the major averages, as a matter of fact, with the dow climbing 101 points to 26,106. the nasdaqed a 44. the s&p was up 11. the cost of imrts fell in

may for the first time this year. the import price index dropped .3% last month, reflecting a decline in thic of most foreign made goods including those coming from china that had been hit with tariffs. experts say chinese suppliers may have had to cut prices to retain their market share, but the decline may also be the result of a broader slowdown in the global economy. >> and as we've been reporting, the retail industry has a lot at stake when it comes to the trade war with china simply because they source so much of their products and materials from that country. many companies have continually said that they're watchinghe tuation very closely and now some details of a tariff strategy i retail are emerging. seema modi has our details. >> home retailers are starting to outline just how they plan to get around higher tariffs. rh, parent of restoration hardware says they are moving prices higher moving out of

china while setting up their own manufacturing facilities in the u.s. according to web bush security is, approximately 25% of its merchandise value is sourced fromhina. rp joins a growing list of retailers that are proactively trying to decouple from china. williams sonoma telling cnbc's jim cramer that it's looking too shift produ to other countries in asia. >> we have a very sophisticated, vertically integrated supply chain to people all over asia rsd we have a great relationship with vennd we start seeing it happen and we start moving products. from vietnam to indonesia and moving it to america and also renegotiating with our current chinese manufacturers. >> the question is whether the rcrategy of sg goods from countries outside of china will pa off. analysts say there are risk of shifting productions especially to developing productions in asia where you may not get the same level ofuality. >> there's also additional risk that if we start moving production out of china and roll back the tariffs from 25% to 20%

or a0%, you spent of this time and effort moving production out of china and you go back to china? there are big question marks as to whether or not it is worthe effort at this stage of the game. some are still wait-and-see approach. >> one of the benefits of shifting the supply chain is lower prices, but industry experts say the next six months will dne whether taking a proactive approach to get around tariffs was the right move. for "nightly business report," seema modi. ep>> as we've beenting there is a big push in washington and among many states to examine thf powerig tech. senator and democra cc presidentididate cory booker told john harwood that while he doesn't want to break up facebook, he would like to see some type of crackdown. >> now, facebook is rlly problematic. they're doinghings that are -- that all of us in america, we just saw the mueller report that pointed to how foreign adversaries are moving platforms

like facebook and you're not willing to say facebook should be broken up. i'm willing to say that we need to look at tech companies in general because we have a problem in thent c with corporate concentrations of power that are undermining basic democratic ideals and so if i am the leader of this country which erhope i am, i'm going to be coming a hard these large monopolistic companies. >> but the fact that ackerberg wa supporter of your initiative in newark with a lot of money, that's not the reason why you wil like elizabeth warren, say, break up that company? >> oh, there need to a lot of companies in america that need to be brokenup, but it needs to be done in a sober, systematic way. so what i do have more of a problem with is the tech mpanies who are allowing china's values on privacy, on security, using those tech platforms t squelch the human

rights of others and to surveil their citizens. these are things i have a problem with and tech companies that are willing to sacrifice values for profit, that's unacceptable to me. time to take a look at some of today's upgrades and downgrades. we begin with shares of lennar, they were down from neutral at web bush securities been the analyst cited improving sales and low r interest rateht now. price target $62. that stock rose nearly 2% to 53.08. owngraded toc was equal weight from overweight at ys. it cited a number of fundamental challenges facing the railer right now. that stock fell more than 2% to 167.15. and morgan stanley has raised its price target on disney to $160 a share. the analyst cited the company's bew streaming service which begins in nov and expects total subscribers to reach30 llion by 2024.

the firm has an overweight weightin on the stock and the shares rose 4% today to 141.74. still ahead, what the dairy industry can do to improve i image with consumers. ♪ ♪ ♪ chewy is expected to price its initialin public off tonight and begin trading tomorrow. the online pet supply retailer is the latest in a string of companies to go public in what market a very busy ipo this year. and with some exceptions, the reception on wall street has been pretty positive. here's bob pisani. >> the ipo market just keeps getting hotter, but howuch is

really left? that's the big question. look at cybersecurity company crowd strike. it price andpened above its expected range. online pet food retailer chewy upsized this ipo ahead of its debut. way back in february, people wereearful that a avalanche of ipos would cause the market to crash, but the big tech ipos, they've been winnerso far this year with beyond meat clearly leading the pack up more than 400%. zoom video and page duty up more than 100% each and it is no wonder that the basket of 50 recent ipos up 34% and double s&p prices are holding up well. 65 ipos priced this yearnd 40 priced at the high end of the range or above. they meat, zoom, what do have in common? >> fast growth and a large market opportunity and beyond meat is disrunning the zopting d crowd strike and end point

security business rapidly growing and how about those unicorn disappointments and i know, uber and lyft. lyft's down % and that tells us that investors are not impressed with ride hailing and specifically valuation issues and deep losses, b there's nothing like this up market to boost ipos and the s&p up 15% a year and that means a lot of these iposbl vulne should there be a downturn. foresightly business report," i'm bob pisani at the new york stock exchange. >> that's where we begin tonight's market focus and after the bell, the chipmaker reported better than expected earnings and it missed on revenue and the company warned of a broad based slowdown in demand due to continuedti geopol uncertainties. shares dropped in the after hours trade, but closed thegu rer session up a fraction to 281.61. activist investor janna partners disclosed more than a 9% stake callaway and says it plans to talk with the golf equipment and appalil maker about s all or part of the company.

this despite janna acknowledging callaway's innovations and durable market share. callaway soared 14.5% to 18.19. another activist investor vintage capital is offering to make a buyout bid for red. rob in a letter to red robin's board of director, vintage said it is prepared to m pe than $40 a share in cash for the restaurant change and launched strategic review and it soared 31.5% to 33.48. trargarget is trying to kee with rivals amazon and walma by offering same-day delivery to shoppers. shoppers in 47 state will be able to get items delivered the same day by paying a flat fee of $9.99 perrder. it's using shipt that target acquired back in 2017.ha targets were up a fraction today to $88.30. and thescountr largest meat

producer, tyson foods will begin selling plant-basehi nuggets summer and it will be sold under the ew company brand that wi sell plant based and blended meat products. tyson shares rose a fraction to $82.53. the dairy industry is facino a numb challenges and not the least which is increased competition from non-dairy drinks like soyd and almlk and now it faces a very different challenge. there is a growing backlash from a video that has gone viral and we want to warn you some of the images are very disturbing. rahel solomonst has they. >> young calves were being abused, kicked and in ereme heat. our images also show them being choked and dragged and thede over animal activist says abuse like this happens daily at dairy farms around the country. >> more than having arrests in this case is education, is showing the world not just what

they're doing to their animals in their dairies and whathe dairy industry is about in general. >> the farm is the largest producerhen indiana and alleged practice has now ensnarled one of the largest beverage companies in the world. why coke? because coke distributes products that is from fair oaks farm and it's an issue that's important to millennials that tend to be more animal friendly and a s majrce of spending. another challenge, in the past decade, sales of milk alternatives like nut-based bev ranles has. bevera >> almond milk when it took over from soy milk that's taken about 15% of the market over the last ten years. >> sales f cow's milk was down 6% for the year ending 2019. it will no longer use milk fro the farm in question and are taking steps to ensure humane treatment of animals at other suppliers. coke said any form of animal

cruelty is aunacceptab that they're investigating. although it's unclear that will be enough forom protesters. >> we're asking coca-cola, do the right thing and p go tont milk and not dairy. >> the indiana incident, a black eye on an industry already under pressure and according to local media, the employees involved in that have all been charged with milemeanors. rasolomon, nightly business report. the national dairy counsel has this to say. the u.s. dairy community has a long standing and strongo commitment animal welfare and takes allegations of animal abuse very seriously. like consumers e we are deeply sappointed and saddened by the actions shown in the video as animal abuse in any form is not farms.ed on u.s. dairy the recent videos released are in no way indicative of how our country's dairy farm families operate. as a community, we ar deeply committed to the continuous improvement in all aspects of animalcare. for the full statement you can

head to our websi nbr.com. >> well, is a statement like that enough to help repair the dairy industry's image and what else needs to be done in terms of damage control? joining us tonight is karen to be earlyland, and she runs the sterling marketing group. thanks for joining us tonight. >> my pleasure. the problem we have is social media works so quickly a the video goes viral before they have a chance to respond to it rand most people will h the video and not see the response. >> absolutely. the truth is we now live in a world ohere of the trifecta of issues that people like theus dairy iy has to deal with is the rapid social media where everything just goes instantly ross, and i think it's one of the things the dairy industry hasn't taken into account in terms of their b dnding. >> wha they need to do, htree in particular, that they could do that murn this around. >> one of the things they need to do is they need to consider that we're living in a different

world. a r sentdy showed that 60% of consumers are more concerned about animal welfare now than in the last few years. so i think they need to keep up-to-date wity what's actua happening with their consumer base. another survey showed that nine out of 10 millennials will change to another brand product if they believe i morthe cause that that particular product is supporting. i feel like one of the things they have to do is they have to get up toed with how their consumers are now considering their product and theirndompany now don't think the dairy industry is up to speed with that right now. that's one of the things that they need to do. >> and we've talked about the changing consur taste goingo non-dairy drinks as well. >> not milk. >> how well do you think they've responded to that? >> i think they respond to tt very poorly. last year just in new york city alone i remember we were out of alt milk in all of the grocery stores and there was this uprising becauseo there was oat milk and the dairy industry has failed to realize that a huge perntage of their market

sees an alternative now and they ssven't add that. >> if you think about it, milk is iconic in america. yobo think pie with a glass of milk and a hot glass of milk when you go to bed at night and the reality is there are a who bunch of alternatives and i don't think the dairy industry has paid attention to that. >> karenlyland with the sterling marketing group. thank for joining us tonight. >> my pleasure. , coming an unconventional approach to saving for retirement. ♪ ♪

>> something unusual has been happening in thisy market lat as the wall street journal pointsal out. sod safety stocks are not only rising along with the rest of the market, but they are also outperforming it right now. experts say investors are attracted with the group's consistent dividend payments and lower volatility and it demonstrates how risk averse investors have become. and risk aversion is what you may think of when it comes to retirement savings. conventional wisdom says you should invest morely conservatis you get older by increasing your bond holdings, but there are some who say you should actually do the opposte. joiningo talk about this is win smothers and he is the managing actor at shore bridge management. welcome. nice to have you here. >> my pleasure. >> are you one that recomthnds you d opposite or are you in the you need to remain nimble and flexible camp? >> i'm in the flexible camp. i think with today's ierest

rate environment at 40-year low yields, the traditional thought process of how you asset allocate has to change and in retirement, it's very difficult today to have a significant allocation to bonds like the old days, perhaps, 40 years ago and be able to attain all of your iobjectives. mean, that was at a time when interest rates obviously were much higher and there were fewer products that you could garner income from. there were so many exchange traded funds and mutual funds and otherng tthat can provide you with income in addition to growth, right? >> that's true. certainly the product menu has expanded greatly in the last 20 years in particular, but in traditionalnsset allocatou want to have your safe assets being the fixed income part of the portfolio and how you do that coulde with etfs, mutual fund, individual bonds, butdhe days again, when you used to

have 50,60, 70% fixed income in a portfolio you really can achieve your goals anymore and to do that to drive the income you need as well as to fight inflation. so as a result, the equity component of a portfolio is more significant today. >> and how do you handle that? lviously, every individ investor is different, but if you do increase your equity position, do you end up trading helittle bit more? in other words, you have a significant gain in a position, and u exit that position bank the cash? how would you -- how would you deal with portfolio management? >> well, traditionally, we start with an assetoc aion split between stocks and bond, for olample. the stock por is the vehicle of how we try to exceed the rate of inflation and grow the portfolio principle. the bond portfolio, we tried buy very secure, safe bonds. the bond portfolio plays a rol

in our case of being an air bag so that when the stock market falls which it inevitably will do and we have a reservoir of safe money to rebalance our portfolios. >> okay. and the other way that we think about fixed income and this really resonates with ourc nts is that when we do our allocation we consider maybe eight to ten years worth of their bonde needs in portfolio. >> right. >> on that note -- >> so that way -- i'm sorry. >> that's okay. we have to run. thank you so much. >> absolutely. ealth h shore bridge management. >> thank you very much. bye. out of time. finally tonight, the st.ouis blues are stanley cup champions for the first time in their franchiss history, but the big winner may be one of the team's fans. back in january, that f while in las vegas bet $400 that the blues would win the stanley cup. now that $400 has turned in

$100,000. at the time he placed the bet, they were in last place and the odds were 250 to 1. >> talk about good luck. before we go, here a the day's final numbers on wall street, the nasdaq added 44, and the s&p 500 was up 11 and that is "nhtly business report" tonight, i'm sue herera. thanks for joining . >> i'm bill griffith. have a good evening. see you tomorrow. ♪ ♪

woman: this is "bbc world news america." is made possible by... ti the freeman foun; by judy and peter blum-kovler foundation, pursuing solutions famerica's n; and by contributions to this pbs station viewers like you. thank yo jane: this is "bbc world news america." reporting from washing am jane o'brien. tensions flare in thdd