this is "nightly business report," with tyler mathisen and susie gharib. brought to you by -- >> thestreet.com. interactive financial multimedia tools for an ever changing financial world. our dividend stock adviser guides and helps generate income during a period of low interest rates. real money helps you think through ideas for investing and trading stocks. action alerts plus is a charitable trust portfolio that provides trade by trade strategies. online, mobile, social media. we are thestreet.com. >> a friday dive. stocks fell off sharply in the last hour of trading, but the s & p and nasdaq score their seventh straight month of gains. for the dow, the winning streak

is six. >> the great divide. is a sell-off in the bond market for real? we'll ask an expert if the glory days are over for u.s. treasuries. conquering cancer. the promising treatments being developed by some of the world's biggest drug companies to fight the deadliest forms of the disease. all that and more, tonight, on "nightly business report," for friday, may 31st. good evening, everyone. welcome. the month of may felt more like the month of march today. going out like a lion. selling modest most of the session. in the last hour it hit hard. wave after wave as portfolio managers made month- end moves. the range from high to low on the dow, 277 points, biggest since january 2 knond. it's the worst performance since

the day of the boston bombings, nasdaq down 35, s & p lower by 23. all three finished with losses for the week. nevertheless, each of those major barometers ended the month of may with gains, first time that happened since 2009. monthly win streak stands at 7: seven for the s & p, six for the dow. >> to put it in perspective. we have jeremy siegel of the wharton school at pennsylvania. you are predicting the dow gets to as much as 17,000 by the end of the year. right now, 15,000. what is going to drive that kind of growth? why are you so bullish on a day like this? >> you mentioned, the end of the month, a lot of repositioning takes place. we had a brutal week on yields. and what is happening, the market is really pricing in the

tapering of quantitative easing and since so many people think that's the source of the big gains, clearly there is nervousness on that. but i think it's gotten priced in pretty recentasonably. i don't think it's quite as damaging as i thought it might be. now, we'll wait until next week to see whether there is some carry through here, but you're right. i don't think the highs have been reached. i still believe we're going to end up the year between 16,000 and 17,000 on the dow, and it's going to be mainly two factors. it's going to be good earnings, but multiple expansion. and even with rising yields, they are still so dramatically low, week and a half multiples of 18, 19, 20, not at all unusual in a low interest rate environment. >> earlier this week, we had muhammad alarean, concerned about the fundamentals,

concerned about sufficient growth in the economy and corporate profits to justify stock prices at this level. that's why he says he's walking away from risk. how would you answer him? >> well, first of all, i don't believe we need a big increase in corporate profits and earnings to justify even higher levels of stock prices. don't forget, firms are buying back shares so earnings per share is going up, there is a dividend yield over 2%, which is attracting more and more people, as a tax preference. and, you know, if we get capital gains of 3.5%, it's going to be bonds hands down. so i don't know where muhammad will go with his money. i think pimco has already said that the bull market is over on treasuries, so the move isn't there. commodities look wobbly to me. you know, we've seen what will happen to gold. not always the safest commodity.

i still think stocks are going to be the asset of choice for most americans. >> jeremy, real quickly. next friday, the important jobs report. all week long next week, people are anticipating that. how is that going to set the tone for the week and for the month of june? >> well, it's the single most important report. i guess morning line is what? 170, 180 and it will move one way or the other. but most of what i see is that we are in a period of moderate growth and given the fiscal drag with the taxes and sequestration, people are pretty amazed at how strong the private econo economy is and that will drive us in the second half. >> we have to leave it there. have a great weekend. jeremy satisfying lsatisfying s the wharton school. at one point today, the ten

ye treasury note rose 2.5%. this is a great divide on whether the greatest bull run ever for bonds may be coming to an end. hampton pearson takes a look. >> both sides of the debate over the long anticipated bond market sell-off play out in the market. treasury prices dropped after the institute for supply management, a closely watched barometer of business activity, increased sharply last month. a sign the economy is getting stronger. and improving economy adding to wall street jitters after comments from ben bernanke and other officials about plans to taper bond purchases. goldman sachs point to yield consistently above 2% in a note today telling investors the bond sell-off is for real. on the flipside, ubs analysts countering, the market is overreacting to the slim possibility that the fed could begin tapering fairly soon.

the net result this week? volatility. not good, wall street watchers say for stocks or bonds. >> equity markets don't like when bond rates move this fast. if we creep higher in interest rates, my view, i think stocks will be fine. it's the gallop higher that as investors concerned. we can't move progress if ten-year averages keep moving up. >> housing market is feeling the heat. interest rates are now close to 4% on mortgages. the payroll number next week could determine if there is more room for bond rates to move higher or if the sell-off is overdone. hampton pearson. in washington. so are the bond market's big glory days behind it? bill irvine of fidelity joins us. where do you stand on the

fracture between ubs, on the one hand saying the worry is overdone and goldman on the other saying this time it's for real. the bond bull may be on its last legs? >> well, certainly the backup in yields this past month has been sharper and more sudden than i think many market participants may have expected. in my opinion, the backup so far has been both healthy and reasonable. and what i mean by that, if you go back to the beginning of may, on the one hand, the yield on the ten-year treasury was only 20 basis points above. all-time low around 1.6%. meantime, the recovery continues to take hold. a strong unemployment report this past month. household balance sheets improving. fiscal outlook in the united states improving. all good. those two things inconsistent and then more recently, have you had the fed rhetoric which made clear to the market that the quantitative easing program will not last forever, and they will begin tapering purchases, either

in september or i would say by december of this year. so those two reasons contributed to the sell-off we've seen in the bond market. >> but should you -- this is suzie. should you -- if you are an investor and holding bonds, should you keep holding on to them or sell? a lot of people really believe that it's safer to keep your money in those bond funds. you can make money with treasury yields at 2% and inflation around 2%? >> i think that yields will continue to rise throughout this year as the recovery continues to normalize. but i don't think it will be a straight path to higher yields and i don't think it will happen as sharply as what we've seen this past month. i -- i think that we're in a more volatile environment, where interest rate are going to be more sensitive to the economic data, so, for instance, just next friday, we get a payroll report where we've added 250,000 jobs, i think it is possible.

the ten-year yield could rise 20 basis points. on the other hand, we get a disappointing number, we could go right back to 1.8% on the ten-year yield. >> really almost a 30-year market in bonds, bill. but certainly over the past ten years, a lot of people made a tremendous amount of capital gains in their bonds and bond fund holdings, do you think that era is over? and that people ought to reset their expectations in terms of the returns they might derive from their bond funds? >> absolutely. that i think is the most important point. starting point to estimate what returns might be going forward, the yield on the aggregate. the barclay's aggregate. bond investment grade intext, around 2%. if yields stay where they, over the next year, expect about a 2% return. and if yields rise, then that's going to eat into that return, and so they could be lower, could even be negative. the most important point is the

strong returns that bond investors have enjoyed over the past several years, fiv5%, 6%, 8% returns, they need to reset expectations significantly lower. >> we need to leave it there. bill irvine of fidelity. good news out of washington. medicare's hospital trust fund won't run out until two years later than expected. the date social security will run out remains unchanged at 2033. more and more baby boomers retire, jack lew sounded cautious. >> social security and medicare are meeting their commitments today and will continue to meet their commitments in the years ahead. yet as trustee reports have indicated for a while now, these programs face long-term challenges. >> president obama urged congress today to stop federal

student loan rates from doubling as of july 1st. interest rates of new subsidized stafford loans, set to go from 3.a4%, to 6.8% in one morning which may put college out of reach for some americans. >> because folks made their voices heard, congress acted to keep interest rates low. they only did it for a year. that year is almost up. so the test is simple. we have to make sure federal student loan rates don't double on july 1st. >> both republican and democrat lawmakers want to avoid the increase, but they can't reach an agreement just yet on how to do it. the organization of petroleum exporting countries or opec as we know, met to decide on what to do on oil prices. they decided not to raise outputooutput over 30 million per day. oil sits right at $100 per

barrel, the favored price opec known to desire. coming up, battling cancer. what three of the world's biggest drug companies are doing to fight the deadliest forms of the disease. the top performing sectors this month, and it was a good month for most of us. shares of epizine soared after they raised more than $77 million in the initial public stock offering. shares opened at $15 a piece. at the high end of expected range. and closed 53% higher at $22.99. >> suzie. new medications and treatments

to fight cancer are the focus at the annual asko oncologist meeting that kicks off in chicago today. one of the world's largest gatherings of biotech, pharmaceutical giants and wall street investors look at what new drugs are getting the attention of top cancer care doctors and researchers. bertha coombs with more. >> reporter: the american society of clinical oncology annual meeting is one of the most important events in cancer research. where drug companies present the latest data on promising treatments for the deadliest cancers. that has made it a key meeting for investors. >> a dozen companies or so, having analyst meetings over the weekend, at which point they will also showcase their data. and that's a great time for investors and analysts to interact with management teams. >> reporter: the most highly anticipated data on treatments from three major drugmakers, bristol meyers squibb, roche, and merck. >> we have new classes of drugs,

such as the immuno therapies, advancing the treatment of potentially a variety of cancers, specifically melanoma, but being evaluated in kidney, breast and lung cancers. >> reporter: the drugs target a protein in cancer cells that binds withceptor that calls td-1. that protein masks cancers from the immune system. the drugs block the protein, allowing the immune system to attack the cancer cells. >> in some patients, you could end up with a cure for their lung cancer or melanoma. from using these anti td-1 drugs when you combine them with the currently marketed drug yervoy. >> reporter: combining yervoy and the new drug shrand melanoma more than either drug alone, by 38%, and roche's drug

significantly shrunk cancers in kidney, lung, cancer patients. >> you want people to on be more productive. it used to be aids was a death sentence. now, a life-long disease. >> reporter: all three drugmakers will report full trial results on sunday. for "nightly business report," bertha coombs. on monday, following the cancer conference, we'll speak with the ceo of infinity pharmaceuticals, shares have more than doubled over the past year. market focus tonight with a blue chip chipmaker, intel, a dow gainer today on reports that samsung has selected a new intel processor for the galaxy tablet which premieres june 20th. up 2% before the sell-off and closed up a fraction at $24.28. the fight for dell's future conditions. board set a july 1 8th vote on

michael dell's plan to take the company private. the largest stakeholder urged fellow shareholders to take no action when proxies show up in their mailboxes, believing there is more per share value than michael dell's 13.65 offer. shares closed at $13.35, on double normal volume today. retail stocks in the spotlight today, thanks to upbeat report on consumer sentiment. highest in almost six years. investors counting on more spending by more confident shoppers. investors backed away from companies like macy's jp penny, american eagle and gap. only gap held up a gain, up 1.5% to 40.55. and lionsgate reported a quarterly profit from hit movies like "hunger games" and twilight saga in theater and home entertainment sales.

closed at $28.80, up more than 2.5%. market monitor is positive about more rallies in the stock market, but also telling his clients to reduce risk in their portfolio. jason pride, director of investment strategy at glen meade. nice to have you back us with. >> thank you for having me, suzie. >> great to have you here. wanted to get your take on the markets. what will you be doing on monday morning? buying more stocks? >> well, you know, i think it's a cautious investment stance we have really, looking at an environment where the fed is really forcing investors to take risk, markets are rallying, probably more than the fundamentals actually reflect they should. still in a good, but not great growth environment. so we're wanting to take risks in a cautious way. that means seeking stability but being an equity buyer through the period. >> so some of the stocks you have meet that criteria. let's begin by leaping in here, one of your choices is philip morris, i guess that's philip

morris international as compared with altria. why do you like it? >> the main thinking, we're going for div dens and stability. div den growth. 3% dividend yielder, 10% growth potential in the underlying dividend. great when you can get that sort of an income, plus the growth on top of it, a stable business. people smoking habits, unfortunately, don't change through the times and they also have a very substantial growth exposure, a large market going into emerging markets and we think that is a huge growth opportunity for a lot of companies out there the other companies we're talking about meet that as well. they are seeing 10% to 20% increases in their wages in emerging markets. they spend more money on everything from toothpaste to cigarettes. >> talking about toothpaste, colgate on your list. the stock down today, but it's been up sharply this year.

same investment theme, right? >> very similar investment theme. going for stability. toothpaste and dish washers, this is a -- this is your staples. you don't really change spending on this, except you may upgrade as income increases. this is a company that has a dramatic amount of emerging market exposure, primarily in latin america, also in east asia. that growth is fairly strong, dividend is solid, and the stability is there. >> maybe we should have saved colgate for the last, you eat before your brush your teeth. last choice is yum brands. people eating a lot of chicken over in china. yum had problems there with food safety issues, but you see that as a short-term blip on its particular screen i take it. >> correct. this isn't a perfect stability. you are talking about a retail franchise. the bigger growth opportunities. because of presence in asia, targeting consumers. and the interesting thing about yum brands in asia is really the

kfc brand, unlike it's -- it's less cleansely image in the u.s., it's image overseas and the stores are considerably better. considered up scale by comparison by what they look like in the u.s. and that's a great growth opportunity. anything attached to the emerging market consumer is a good story right now. >> jayson, less than half a minute. want to get your take on that debate we had at the top of the program. do you buy bonds, don't buy bonds? reduce risk in the portfolio? >> we're not a big bond fan right now, at least not the traditional bonds, we think hiding in the bunker and putting your money in cash and treasuries, probably the worst thing you can do when the federal reserve is basically punishing those that want to be the most offensive. can't be doing that. at the same time, investors can't be blindly buying equities. take risk selectively. >> any disclosures? >> the three stocks,

recommended, held by mutual funds and by glen meade. i do not own them personally. >> jason pride, director of investment strategy at glen meade. >> still ahead on the program, what's it like on an oil rig when a major storm is about to strike. we'll take you to the gulf of mexico on the eve of hurricane season. and let's get a look at the top performing dow stokes. the atlantic hurricane season officially begins tomorrow and forecasters calling for an active season with as many as six major storms. as residents and businesses prepare, the u.s. energy industry in the gulf of mexico is already on high alert, but

we're in norco, louisiana, with some of the preparations already under way. >> reporter: we are 30 miles out in the gulf of mexico, and this is one of chevron's closest offshore facilities. >> we have to be very diligent. >> the south timbaloo platform, and 69 people live here two weeks on two weeks off. including david vine, a 33-year offshore veteran, showed us around. >> like it out here? >> love it out here. >> reporter: hurricane preparations begin well before hurricane season. even a tropical depression 200 miles away trigger phase one. moving nonessential workers and equipment. >> in the event of a hurricane, we would have to get all of this stuff rigged down. should take us about a day and a half or so. >> then the nonessential workers air lifted out. leaving a core group of production workers and

supervisors to hold down the fort a little bit longer. >> as we finish out if through the phase two process, well, then it starts to kind of hit home a little bit. >> reporter: on a normal day, chevron has about 2,500 people working in the gulf of mexico. if the hurricane or tropical storm is approaching, pretty much all of them have to come ashore. that would be a huge challenge, even on a good day. now, they are racing against the weather and racing against time. they coordinate everything from this command center, opened in 2008. 100 miles inland in covington, louisiana. mike casey is in charge of operations. >> we can now talk to every platform we've got, every asset, whether it be a helicopter, boat. >> reporter: back on the rig, final preparations are intense. >> you just keep working through it. >> reporter: in the control room, they make sure every well, every valve, shut and secure before they head for home and leave it behind. >> you always thinking, will it

be here when i come back. coming back can be more complicated than the evacuation if a storm hits, they won't know right away xshgtly what they are coming back to. if the forecast holds, they could be doing a lot of that this year. finally tonight, good news. the earth was not destroyed by a giant asteroid today. but it was close. scientists at nasa say around 5:00 eastern time today, the asteroid known as 1998-qe-2, nearly two miles long and even has its own moon, flew past the earth in the closest approach in two centuries, the distance from our planet was 200 million miles away. tyler, too close forcomfort or not? >> i was looking at my watch. still here, all good. >> have a great weekend, everyone. i'm susie gharib. >> and i'll tyler mathisen, have

a great weekend. >> nightly business report has been brought to you by -- >> the street.com. interactive financial multimedia tools for an ever changing financial world. dividend stock adviser guides and helps generate income during a period of low interest rates. options profits helps beginner and seasoned options traders, action alerts plus, a charitable trust portfolio with trade by trade strategies. online, mobile, social media. we are thestreet.com

♪ it's all right, it's okay ♪ ♪ doesn't really matter if you're old and gray ♪ ♪ it's all right, i say it's okay ♪ ♪ listen to what i say ♪ it's all right, doing fine ♪ ♪ doesn't really matter if the sun don't shine ♪ ♪ it's all right, i say it's okay ♪ ♪ we're gettin' to the end of the day ♪ so this is where annabel drowned. december 2008.