this is it nightly business report. politics and money, the race for the white house comes in to focus, but what a trump/clinton contest means for the market remains foggy. a new ride, a man and his tesla. looking for growth why the next big battle ground for two of the nearest tech companies is half bay around the world. all that and more tonight on nightly business report for wednesday may 4th. good evening and welcome. well, and then there was one. billionaire businessman donald trump is now the probably even the presumptive republican

nominee for the white house following his win in the indiana primary. ohio governor jaohn kasich dropped out of the race today and with that the focus is centered on trump and democratic front-runner hillary clinton who despite last night's loss to bernie sanders continues to maintain a big delegate lead. investors are watching all of this very closely and so is john harwood. john i have to say after how personal it got yesterday with mr. cruz and mr. trump i was a little surprised that he got out last night. why did he and kasich decide to leave now. >> i was surprised to. i took ted cruz at his word that he was going to fight on throughle ka, but the fiez of that victory in indiana simply broke the will of ted cruz to

continue and the same with john kasich. john kasich never rose up to seriously threatened and both of them realized in it wasn't going to work for them and get out now and set up this general election contrast. >> last night you said that the general election would likely start today. how are things shaping up. >> as it starts hillary clinton has got a lead. if you look at the average she's got a 7 point lead. in the nbc wall street poll she has a lead of 11 points. that's a significant gap and donald trump needs to set about reducing some of those unfavorable ratings with women and and college educated voters that could be angos. >> how fractured is the republican party and how wounded is hillary clinton from the contest she's had to fight with mr. sanders and could there, will there be a third-party

candidate? >> hillary clinton is wounded by her campaign against sanders which is exacerbated her negatives. a lot of people don't trust her, but her problems are not as severe as donald trump's. donald trump in that nbc wall street journal poll is only getting 72% of republicans. one of the questions now is whether movement conservatives decide to back a third-party candidate. interestingly ted cruz when he got out last night didn't say anything about donald trump. there's talk about a potential third-party candidacy to uphold the banner of true conservatism. a lot of conservatives say donald trump is a party unto himself. that's going to be one of s wit. ultimately parties in our system tend to co less around each other, but donald trump has more of a deficit in that regard than anybody else and he's vulnerable if somebody wants to run a

third-party candidacy. >> john, thank you very much. speaking of donald trump, he has turned campaign finance and spending upside. trump has spent just $47 million according to the latest federal commission fundraising report through the end of march. cruz spent $70 million, clinton $158 million and sanders $168 million. so how will a trump/clinton race effect your investments this summer around which candidate might investors prefer? here with insights is an investment strategist with lpl financial. let's talk about how the campaign is going to go. i would guess that the markets on some level are a little bit relieved that it won't be a brokered convention in cleveland for the gop. >> that is. that's a short-term relief.

there was a lot of fear in the marketplace about that week in cleveland in july and what would happen after that first ballot. there would have been a lot of traders pausing to see what happened during cleveland. there are other risks out there in terms of the third-party. i think that's a narrow path and that would add to the uncertainty. i think the lens to view this through in terms of markets is certainty versus uncertainty in general mr. trump is the uncertain candidate and clinton is the certainty candidate. >> historically the period from may to november is a treading water time of year. most of the games go from november forward. do you expect that pattern to hold this year particularly in light of the campaign? >> that's sell in may go away is indeed persistent in election

years and also is even a little more negative when you look at what happened in the prior six months. so from november to april that period is down. you also tend to get a down period from may to november. so we did have a down period in the last six months that even august was even more downward momentum for stocks, but not too much. i think ultimately stocks are driven by earnings, but there's a lot of noise out there certainly. >> so let's fast forward the tape and it is past election day. are investors likely to favor one candidate over another? are they going to fair better under clinton or trump or do we not know? >> i think there's one area under which investors don't know. on the trade front, the last 20 or 30 years has been a period where global trade has burjened.

mr. trump says he's against free trade and clinton has generally been pro-trade, she's come out against the tpp bill. that's a real concern regardless of who wins. if there trump wins, what he suggested he would do would be to strentden the military, cut taxes and cut the deficit and then stop free trade. those things aren't along the same axis as most republican candidates. most candidates will do things not like that. clinton is going to play down the middle, more regulation, more government spending and a lot more government oversight into certain industry groups. >> all right. thank you very much. it was meantime a down day on wall street after a week of unexpected read on private sector job creation. concerns about economic growth around the world also making investors skittish today.

the dowe jones independence ral average dropped and the nasdaq lost 37. the s&p 500 off 12. more on the private sector jobs report which showed a cooling off last month. private payrolls rose, but that was fewer than expected and that increase is the smallest monthly number since april 2013. the government releases the monthly employment report friday. it's expected to show the economy added about 200,000 jobs last month. worker productivity fell in the first quarter by 1%. expectations were for a slightly steeper decline but it signalled progress on wage growth as hourly compensation increased at a 3% annual rate. positive news in the factory sector. new orders for goods made in

factories rose more than expected in march up more than 1%. shipments and inventories increased after eight straight months of decline. the services sector which makes up the bulk of the economy grew more than expected in april. in washington the internal revenue service is hiring up to 700 employees for tax enforcement. it is the first significant enforcement hiring in more than five years despite all the budget constraints. we are following the story. amos isn't there a hiring freeze at the irs. >> they say this is the first time in five years they've been able to do significant hiring and they say based on the pace of the retiermts that they have in the workforce they'll be down about 17,000 employees from where they were back in 2010. that is a big hit that the irs has taken and the irs commissioner telling irs employees in a note yesterday

that these 600 to 700 people will help fill some of that gap and they're in enforcement which means they're going after tax cheats which means this is bad news. >> if you're one of these people i assume the irs wants you to bring in more than they pay you. >> the average employee brings in about $4 for every $1 spent on that person, but to the enforcement employees it's a bigger bang. they say they get about $10 for every dollar they spend on enforcement employees. this is the most lucrative thing the irs can do and they say they'll have a couple of different waves of hiring this year. they hope they'll be able to bring in a lot more money to the treasu treasury and then next year thel get a new budget to higher more people going forward. and still ahead, a new twist on shuffle shuttle service for

long distance travel in a tesla. distance travel in the air bag recall has more than doubled in the u.s. today regulators ordered out makers to recall up to another 40 million potentially faultily air bags. it's been linked to 11 death and injuries globally.

tens of millions of other air bags have not been recalled yet. tesla gave an optimistic outlook as it reported a narrower than expected quarterly loss. the electric carmaker did lose 57 cents a share. revenue was 45% higher than a year ago. despite production concerns tesla says it is on track to deliver 80 to 90,000 vehicles this year and it will produce 500,000 by 2018, two years ahead of schedule. shares rose following the report in initial after hours trading. as tesla expands it's lineup of electric cars and its super charger network of recharging stations a new company is playing off of that to start a long distance ride service. it's called tesloop.

>> reporter: sam and an web along with their son are headed from los angeles to palm springs. they could drive themselves, but instead they're paying $35 each to be shuttled in a tesla model x to be driven by tesloop. >> i've done it twice now. i recently took a trip to vegasas. >> this is a ride service based in l.a. that shuttles people to las vegas or palm springs. the company was started last summer. they leafed a tesla model x believing people traveling from l.a. to las vegas would want to make the trip in a luxury car for $85, slightly more than what it costs to fly one way l.a. to vegas. >> what surprised me is how much people like the experience.

i think it's a combination of the car and the convenience of driving and getting dropped off close to where you need to be. >> reporter: one key to the business plan is not paying to power its fleet, that's because it can recharge for free at the super charging stations. and as tesla ceo looks to add more super charger stations around the country, tesloop plans to expand with it targeting routes where it can offer one to five hour rides in cities with commuters. >> there's so many people that commute daily or weekly and all we have to do is get a small fraction to become profitable. >> reporter: the owners believe the discount prices will drive more people to become customers. >> it's nice. it's a tesla and that's fun. i always wanted to ride the

model x and that's my chance to do that. >> reporter: a new ride and a new way to look at longer commutes. >> we reached out to tesla to see what they think of the service and we haven't heard back from them. price line warns its growth will slow next quarters and that's where we begin market focus. despite better than expected earnings, earnings will fall below estimates in the second quarter as weak demand in international markets is expected to effect results. shares of price line down .5% still still at a high share. earnings were up 9% and shares rose 9% to $44.88. hbo's game of thrones of the

ncaa men's basketball championship final game. time warner reaffirmed earnings forecast for the year, shares up to $74.80. humana reported a 46% drop in profit because of costs associated with the company's pending atna merger and lower membership. humana says it remains cautious on the public exchanges and anticipates exiting some of those state markets in 2016. shares finished down today at $175.70. apple and alpha bet are focusing on india. both companies have different strategies to potentially win a bigger slice of this very

lucrative market. >> reporter: india is the new battle ground for big tech and that's because china has become a challenge. in its most recent quarter apple's revenue in china slipped due in part to weaker economic growth and google's search business is blocked in china. both companies are making moves to win more market share in this fast growing economy. this week google announced it will allow users in india to access apps and that's a big deal to india consumers because credit card use there isn't as popular as it is there. less than 5% of the population uses credit cards. india is now the third largest market for smartphones. last year 102 million smartphones were shipped there. google is making this move just

as apple is also targeting the indian consumer. tim cook said why he's so excited about that market, although apple controls about 2% of the market. >> india today has been 50% of their population at 25 years of age or younger. it's a young country. people really want smartphones there. this year, the first year, lte begins to roll out. >> reporter: the two tech tightans has different tactics when it comes to winning in india. for google it's about apps and apple is focussed on selling devices. iphones can cost more than android phones. apple wants to import and sell pre-owned iphones, but the government hasn't made an official decision whether to

allow that. apple can't just open a store in india without government approval. the government is evaluating apple's request. still while the strategies might be different, the goal is the same. win over new fans. for nightly business report. coming up, a sneak peek at how the greatest basketball player who ever lived lives. jobless claims are up. dow component merk will report earnings from the helpty tis c

drugs will be the focus there. and mr. bowler is going to speak on the economy. adidads wants to sell parts of his golf business. it is also selling its adams and ash worth brands. the germany an sports wear maker says it plans to focus on golf footwear and aperfectly. underarmor is giving niki a run for its money. on its rooster is players like steph curry and they've signed bryce to a ten year extension that might turn out to be the biggest endorsement deal for the baseball player. how are they convincing the sports players to come on board.

john, i assume they're paying more. >> they are paying more, but underarmor that some of these athletes will be viewed as a name in sport rather than one out of a huge crowd of athletes that niki works with. >> in other words steph curry is going to stand out more because there's not going to be a whole stable of other ball players around him? >> that was kind of a selling point and they reported that niki when they present the contract renewal to steph curry that the flies had the name kevin durant. that left a bad taste in his mouth and so that could be part of the reason why he decided to

move to underarmor. they're building a big shoe name around him. he might not have gotten that much attention with niki. >> their shoe sales have gone way up and they sold a pair to my son. let's be clear here, underarmor is a fraction of the size of niki. >> they are. they're only $4 billion in revenue business. niki is over $30 billion and they're still growing fast. it's a dow component that is still growing. niki is expecting to hit $50 billion in sales in five years. that's huge. underarmor can't catch up that but ten years ago underarmor didn't sell shoes and now they sell 700 million. >> some people would say that

underarmor has the hottest mix.rs recollection b they work with a ballerina. they're working with the u.s. gymnastics team. that's a younger kind of play. they're really well known for doing an endorsement deal with friday night lights. that helped them get into the high school, college crowd. they signed a deal with berkeley. so they do want to have a mix of younger and older athletes because with younger athletes it's a guess as to how successful they will be. >> we have to leave it there. meantime niki and michael jordan do go hand in hand. he was one of the highest athletes. now the greatest basketball player that ever lived is

selling his chicago home and robert frank takes us on a tour inside and out. >> reporter: this is michael jordan's house. i almost don't need to say that. it's a number that's recognized worldwide to symbolize success, championships and this is the estate he built on that success. the listing price $14,855,000. if you add each number in the price tag together, it equals 23. t the air jordan's he's wearing show how important michael is to the air pitch. >> this outdoor area is one of his favorite places to hang out. >> reporter: there's a round pool designed to look like a ball going into a net. and there's a spashus putting green. >> he wanted to build something that was outside of the city as

a getaway. >> reporter: a getaway with lots of privacy so the legendary baller could relax in the element out of spotlight. these giant doors came from the playboy mansion. jordan also built a wine cellar and a gentleman's lounge. >> this is where he spent a lot of time hanging out with his friends, playing cards and he had a full walk-in humidor. >> reporter: the hoops legend entertained pals in a bar with tvs to watch games. put them up in a swank three bedroom guest house and worked them out on this ultimate home court. the jump man logo is surrounded by the names of jordan's kids and special cushioning under the wood eased the wear and tier on his knees. next door there was a full gym

for his hard core workouts and put in a locker room to accommodate his famous bulls teammates. >> the year before he his first championship he decided to invite teammates to come work out and practice and train. they would eat breakfast and that led to their very first championship. >> for nightly business report i'm robert frank. >> for more head to our website. that is nightly business report for tonight. eve everybody.hing. hope

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