>> this is "nightly business report." brought to you by thestreet.com. for an ever changing financial world. identidividend stock adviser hs to guide you and real money helps to think through ideas for trading and investing stocks. and trade by trade strategies. online, mobile, social media, we thestreet.com. >> bouncing back, another big push into the close. this one to the up side, sends investors home with a smile as stocks rebound from friday's steep sell off. >> apple on trial.

the tech giant is accused of driving up the price of electronic books. what is at stake for the company as the case gets under way. >> and car sales are running on all cylinders. what is behind the rebound in demand. all that and more on "nightly business report" for monday june 3rd. >> the winning streak on wall street is going strong as investors kicked off the month of june with solid gains in stocks. all of the major stock indexes rose, despite data showing a factory slow down in april and construction did not rise as many as economists had expected but those disappointing reports may mean the federal reserve could hold off from tapering the plans to stimulate the economy t dow rose 138 points and both nasdaq and s&p 500 added nine

points. >> the drug maker merck had a big cancer conference in chicago where the latest treatments and drugs for cancer's care were unveiled, with more on the companies in the forefront. here is jackie. >> three companying makes big strides in the war on cancer. bristol-myers and roesch racing to save the lives of cancer patients with immuno-therapy. it's one of the topics being discussed at the american society of clinical oncology's conference in chicago. just how skt i have are immuno-therapy drugs? resulting from early stage trials show that a drug from bristol-myers shall runk cancer

patients' tumor 28%. if anyone of the three stands out early on, analysts say it's bristol-myerss, in addition to the experimental drug, they have the only approved drug. >> it's harder for other companies to do that sort of combination therapy with their pd-1 products. merck is trying to speed up the program to get closer to the same timeframe as bristol. >> bristol meyer sees a billion dollars in sales already. and the company could go to 11 billion dollars by 2023. i think we are at the early stages of an evolution in the treatment of cancer, one where bristol-myers squibb looks in the lead. >> is it time to buy in to pimpt

-- to immuno-therapy? it is providing hope. >> what is so exciting about these drugs is that it has injected the word cure into our dialog about certain types of cancer. >> for "nightly business report" i'm jackie. >> and later in the program, we will discuss the fight against cancer with a co of infinity pharmaceuticals and k -- and ask about a big drop in the company's stock. >> a lawsuit, the department of justice against apple and electronic book publishes, did they illegally conspire to raise e-book prices. all five e-book publishingers h settled with the government and now apple is going it alone.

>> it's a battle over the pricing of the increasingly p popular e-books. the justice department said that apple convinced five large push lishers to change the way they priced e-books to retailers. hoping to raise it above the $9.99 amazon standard. calling steve jobs the chief ring master. and that apple had intent to launch a i-book store and it did not collude to raise prices. apple is said to not be interested in doing the same. the final decision will be made by the judge after the trial wraps up in three weeks t judge told the court, she has a draft of her decision based on the 834

documents and 50 plus depositions submitsed. she believes that they've enough direct evidence to know that apple participated in collusion, but trying to ensure the court that it does not mean the cards are stacked against them going in. >> if apple loses, it will depend on whether amazon wants to continue to drive prices lower. if apple wins, it's not clear that will change much too. it could be that amazon does not intend to drive prices. >> if apple lose, they will likely have to pay monetary damages and it could open the flood gates for lawsuits. >> well to detroit, the big three had double digit sales

growth. and general motors had its best month in five years. phil has more. >> and tyler, across the board, almost all the automakers reported sales that were 1 to 2% better than what was occurring. if you look at the numbers, a couple of things stand out. they were all positive. nissan led the way and toyota, who struggled a bit in the last couple of months were up 2.5% and if you look at the domestic automakers, ford and chrysler posting double digit gains. what stands out is pickup truck sales. overall, may was one of the strongest month that many have had, may auto sales were up 8% compared to last year. and pickup truck sales up 19.2%. a lot of small businesses out there restocking the fleets. >> the numbers are amazing. tell us about the news that ford announced a major recall today. what happened there, and also,

it seems like we have been hearing about a lot of recalls and from ford. >> well, this happens when you have the commonlity of flat f-- of platforms. because of that you have a recall like ford, 65,000 cars trucks and suv's for the potential of a fuel leak. if you have a car that you smell the odor of gasoline, they want you to take it to the dealership right away. they have had 600 complaints but no other problems. >> the smell of gasoline is a problem. a airline announcing to bring in more fee revenue. >> united airlines is offering what is called subscriptions and you will say, why am i

subscribing to an airline. instead of paying for a flight, or extra leg room, you can pay a flat one-year fee. this is the way united structured it. if you want to go get extra leg room. and all of your flights, you pay $499. you do not want to pay for a checked bag when you go to the airport. $349 flat fee, or you can buy in to the united club for $500. this is the next frontier when it comes to airline fees. united subscriptions come with restrictions that you should be aware of. but make no mistake, guys, this is where the industry is heading. bundling the offers, where you can say, i'm covered for the next year. >> thank you very much. everyone wants to get their money one way or another. japan is experiencing something they have not seen in decades. interest from investors. we will take a look at a mass series of reforms that is

putting japan back on the map. here is a look at the international markets and how they close today. >> japan has become one of the most volatile markets in the world. the stock exchanges is creeping into bear market territory. stocks were at 5-1/2 year highs in may. driven by fiscal and monetary reforms. but it's reported that the new policies are not without risks.

>> myomoto just bought a $50,000 watch. one reason that the sales at this store doubled this year. she bought stocks, and the tokyo stock market thrive as the prime minister is banning the wealth effect. he is trying to reclaim the luster lost to china. >> the conflict that japan and china is going through right now, has made it clear here in japan, no, we do not want to be a colony of the people's republic of china, we want to be a strong economy and that is the big driver that is fundamentally difference than anything i've seen over the last 25 years in japan. >> the promise of change has

weakened the yen. the economy grew 3.5% in the early quarter and that is signs that it's working. >> skeptics say that the structured reform is in areas like agriculture, and health care and industry. >> that is going to be the hardest particularly as well as economically and socially, it's really hard hit differently from what you call it the interest group in the economy. >> by joining talks to enter the transpacific partnership, he stoked the ire of the farm lobby. >> the tpp is important. i think it's really likely to encourage japan to make a structural reform in a way that it can really lure the service and investment barriers.

>> government officials say they know their experiment carries risk. the japan's energy bill is soaring, and fears of whether japan can service its debt is there. salaries and hiring is not pin ceasing. the support for the prime minister -- is not increasing. the support for the prime minister is strong. what is less certain is whether theontie to drop, a nationalistic agenda that is closer to its heart. for "nightly business report." >> japan's prime minister said that deregulation is the priority for the growth strategy and he is set to announce a new round of reforms later this week. tiyle tyler? >> a tasty earnings report, cracker barrel reported a 30% increase in profit and increased the dividends and the forecast

for the year. investors ate up the results and pushed shares up 6.5% on the day. >> as samsung was unveiling the new tablet in seoul, investors continued to drive up shares up almost 4% on double the usual volume it closed today. >> another blue chip tech stock, steve bomber is working on a restructuring of the company that could mean increased roles for several executives. the shares touched a new all year high. they are up more than thirty-four %. >> well, it was a rough day for investors in zynga, they lowered

the out look for the year, saying its farmville franchise is the only one performing well. and announced layoffs of 18% of the work share. the shares closed at $2.99. >> and shares of infinity pharmaceuticals plunged nearly 40%. joining us now to discuss the company is adaline perkins. good to have you with us. >> thank you, it's nice to be here. >> we will talk about your advances in the fight against cancer in a moment. the big thing in the room right now is a major drop in the companies share today, 40% in the share alone, it was a $50 stock in the first of april. what is going wrong? >> one of the important goals is to create value for shareholders

and we believe the best way to do that is develop medicines that make a meaningful difference for the patients and we feel we have one of those drugs. we are encouraged by the results and we believe the right thing for us to do is to advance the dwopt of the medicine so that we can get it to patients and not to focus our efforts on the short-term market changes but realize the promise of the drug. >> what we want to hear about is the promise of the new drug, why sit that investors are not buy into that? >> the data that we presented the last few days that we are encouraged by is that the medicine is well tolerated in two difference blood can senior -- cancers and the majority of patients that have been treated have responded well and positively in two months.

i cannot speak to the investor decision. but we are encouraged by this and looking forward to having a meeting this evening with investors where we have investors coming and we have the opportunity to explain why we are so encouraged and to talk about the next evaluation of the medicine in a disease, a blood cancer that we are moving from the first stage to show that it's well tolerated to the second phase to show the robustness of the activity. so we will be having those discussions with our investors this evening. >> i want to talk about when these drugs might come to market, as i understand it, you have at this point, no commercially available product in the cancer field. you have revenues, which have been lumpy, frankly over the past 4 or 5 years. when under the best case scenario would you be able to take this promising product and bring it to market and turn what have been rather significant and

expanding net losses into profits. >> so we are just transitioning from the first phase of drug development, which is what we have completed and were presenting on where your objective is to show that your medicine is well tolerated and then you move to the next stage, which is to show that your drug is active in a broader group of patients. that is what we announced today. that requires a considerable investment, that we are well capitalized and we finished the first quarter of the year with over $300 million. and that gives us the capital we need to take the medicine through the next stage of development to the path of gaining regulatory improvement to make it more available to patients around the globe. >> thanks very much for being with us tonight. >> thank you, tyler. it's a pleasure to be here. >> you bet. >> and coming up later on the program, the irs is doing damage control on another front.

10s of millions dollars spent on employee conferences that included the cupid shuffle. we will explain, and a check on how km-- >> this is deadline day for hedge fund firm sac capital. the top managers and owner are under charges of insider trading. >> well, sac capital is not alone in being in the crosshairs

of federal investigators the irs in trouble over execucriticisms wasting millions dollars on lavish conferences. we have more. you know, jon, you cannot make this stuff up. how do these new developments and those videos of irs employees doing line dancing change the direction of this investigation? >> doesn't change it in a substantive way, but the fact that you now have pictures that people can associate as goofy for government officials is something that will fuel the critics and have images that they did not have before when we were just talking about a cincinnati office. >> that would be the electric slide right there, i believe, that they are doing and not particularly well. but what happened today at the

house hearing on the irs this afternoon, jon? >> this came up, tyler, you had danny werfel who is the interim irs commissioner, once you are beyond shulman and miller who had been in charge before while the questionable activity was going on. danny werfel came and stood before the committee and talked about all the changes that he is making, that he agrees that the behavior was inappropriate and that allowed the administration to turn a bit of a corner for an afternoon's hearing and try to show the public and congress that they are making changes. >> you know, as much as we are laughing about the dance video, this whole thing is escalating and there's been a lot of harsh words from issa, a white house representative, talking about allegations, lies and who is lying, i mean, what do you make of all of this? >> it was a notable turn.

you had issa, who is leading the house investigation of this, called jay kacarney a paid liar over the weekend. issa is frustrated because he that is not been able to show a direct link to the white house. but you had a sharp retort fr, saying that those were strong allegations from mr. grand theft auto. referring to his past. so they are saying, if you want to make this a fight, it could get messy. >> ben bernackie does have a good sense of humor. he was invited to give the

commencement address. there was no mention of financial policy, but there were quotes from forest gump. >> i wrote to inquire about the at that time us of my leave from the university and the letter said, regret ably princeton receives more qualified applications than we can accommodate. >> so far, he has given no hint of whether he may accept another term or head back to academics. >> thises the first time we have had a peek that he is looking ahead. it had a lot of funny moments, and he wrapped it up and said, be sure to call your mom and dad, because they paid your tuition. >> thank you, for being with us. and good night everyone, we hope

to see you back here tomorrow evening. >> "nightly business report" has been brought to you by thestreet.com, interactive multiple media tools for an ever changes financial world. our stock adviser guides and helps to generate during low interest rates and educate seasoned and beginning traders, action alerts and a charitable truflt portfolio that provides trade by trade strategies. online, mobile, social media. we are thestreet.com.

hello there. and welcome to "newsline." it's tuesday, june 4th. i'm catherine kobayashi in tokyo. people across turkey are gearing up for a nationwide strike. demonstrators have spent the past for days on the street.