for "nightly business report" i'm dominic chu. >> rough day for the auto makers. shares fell on the rising trade tensions in part because china is the world's largest auto market and a very lucrative one. philebeau is at the port. how important is china to this port? >> it's critical. i'm standing in the middle of i would say about 5,000 bm suvs. these are vehicles that are parked here tomorrow or the next couple of many of them will be loaded into container ships and sent to lchina. if yk at the numbers in terms of vehicle exports to china from the united statest has steadily increased over the last ten years abo 267,000 were sent over there last year. and that number is expected to move a little bit higher this year. and you are primarily talking about bmw, mercedes-benz. you have some from the big three, as well. and tesla which is alsong sen its vehicles built in california over to china which is the largest and fastest growingel tric vehicle market in the world. >> china said it would lower auto import tariffs. with a trade w in the air could that be under re

dominic chu, oak ridge, tennessee. >>> phillips morris is hiking its dividend. the cigarte maker said it was raising its quarterly dividend 5% to 1.14 a share, the new yield on that dividend will be just under as a result. shares of philip morris rose more than 2% today to $79.42. general electric is leaving its didend unchanged, at least for now. the company said that it would pay shareholders 12 cents a share for the current quarter, the same as last quarter. geut its dividend in half last november, d there have been fears recently that the company would have to cutt once again. but not right now. shares of ge rose 1% today. >>> and eu regulators are repoedly on tra to green light comcast's bid for european tv company sky. reuters say the approval will come without concessions. comcast shares finished up a fraction to 32.08. comcast is a parent company of cnbc, which producing this program. >>> apple supplier dialogue semiconductor is reportedly in t talks with touch-screen technology maker sin nap ticks about a potential mergeser. a separate report said they

i'm dominic chu. let's check the market action.arkets have deteriorated over the course of the last hour. just about 4:30 a.m. eastern time, we did see specks of green. now we could open down by 100. the s&p off by 8 the nasdaq off by 8 a big factor driving markets now, oil prices. $64.46 for wti crude, almost off 2% ice brent crude, $73.08. that's off over 2% of course all of the opec news swirl is driving so much of this pricing action >> we're about 24 hours away from that major opec decision. let's get back to brian sullivan who is live in vienna ahead of that meeting brian, you got fresh comments from the saudi oil minister. what did he tell you >> you can see it's fluid here and crazy here with the live interview with secretary barkindo the saudis, opec a 14-nation cartel but the saudis are really in charge given their production. it's hard to get everybody to commit on camera with the number everybody is looking for the number, how much will you raise production by. opec a year and a half ago agreed they would cut production

dominic chu, lucky guy that he is, is watching the action for us tonight. >> golf looks a lot differenthan it did just 60, 40, or even ten years ago. as the game has evolved beyond just a secluded country club and exclusive zip codes across the world, so have the trends in golf clothing. and mucs of that on display at this year's u.s. open golf championship at shinnecock hills. knee high socks and loose-fitting clothes are out. performance fabric i trending, bright colors, that's trending. fit inste of a big blousy oversized shirt. people are now weaitng more pieces. and i think that one big thing we're seeing is a lot of at leisure, so quarter zip, pullovers. lookingolf industry is to broaden appeal and a variety of companies are takingf advantage ohat opportunity. from upstarts lik 4a golf, where a team of industry veterans areoong to find the intersection between the fairway and melbourne golf wants to bring est coast street wear to the links, and puma is gearing some of its strategy towards bringing a youthful aploeproach to retro designs. much i of the growt golf is coming from you

i'm dominic chu. brian sullivan is on assignment today. we'll hear from him later on in the show let's check the market action for this wednesday morning as you can see behind me, futures are pointing to what should be a higher open. the dow up by 100 points s&p up by 7. on the treasury side of things, a check on the ten-year u.s. note yield finds stability for right now. just about 2.90% not a huge amount of movement. still well below the 3% mark to-year treasury note yield, 2.55%. we have wti crude at $65.37, up 0.74%. ice brent crude, 75.50, up by a half of a percent. a lot of green on the screen so far. we'll see if that carries into the opening bell >> turning overseas, a positive session in asia with stocks making a comeback in china, hong kong, south korea as well. 1.24% gain for the nikkei. hang seng up about 0.75% the ashanghai composite also up look at early trade in europe. a positive set up for stocks in europe waiting for economic data on growth the dax up a half percent. ftse 100 up 1.5% the french equity index up about 0.30%

i'm seema mody >> i'm dominic chu >>> a developing story in spain. of parliament are currently voting on the fate of the prime minister, mariano rajoy. you're watching live shots now of that parliament making its vote so that will be a big deal details on that coming up. italy swearing in a new government the ceremony puts to bed weeks of uncertainty hanging over those global markets deutsche bank getting a credit downgrade from s&p 500 the agency said they are in troubled condition, it is still investment grade but just barely >>> let's check early market action may was a positive month for u.s. stocks despite those fears around trade, politics out of europe, the major averages in the u.s. closing higher for may. on june 1st we are higher by 127 points on the dow. we gained a bit of steam here. s&p 500 is also in the green looking at the bond market that's been a central concern for investors as yields dip below 3% the ten-year at 2.88%. >> we were just showing you madrid and the parliament in spain making its no confidence vote on prime minister ma

only four sectors higher for the year, so will the rally continue and if so, where should you buy dominic chun drilling -- sorry, we had to do it -- where the profits might be, found in coming months. >> we are drilling and pun intended there like jackie just pointed out, we have seen oil prices move generally to the upside with a bit of a pullback now. if you take a look at the stocks, we did see them outperforming the markets over the course of the medium and longer term, only to give some of that back take a look at the s&p 500 etf, up 14% the energy spider on the right-hand side just in the last week and a half, two weeks or so, we've now fallen below the performance of the broader markets so just about in line between energy and the sector overall. take a look within energy. we are seeing pockets of strength in certain areas within that energy trade. that's the oil services side of things, up about 1.5%. meanwhile the energy overall, 13% and that orange line here of 31% is oil and gas exploration and production that's where the real strength has been as oil prices have risen. now if you

. >>> to dominic chu at hq as european stocks close for the day. dom?> we're in, at least, losing momentum territory right now starting the day off on a generally positive note. the tone got more mixed as the day progressed more red on the screen than we thought. broader stocks europe ended up fractionally negative on the day here a drop of 2.5% in april. it already fell 1.1% in the month in march, fourth straight drop for that particular reading in germany earlier in the session, banks were among some of the best performers commerce bank and, as you can see there, even beleagued deutsche bank seemed to find some bid today quantitative easing, those talks begin this week. british stocks didn't open on time today due to technical issues but did resume trading at 9:00 a.m. local. as you can see there, just about flat on the idea in london remy cointreau, better than expected profits, helped along by premium spirits for cognac in places like china, but fell for valuation. so julia, as we talk about remy coin cointreau that's just off a hair back to you. >>

save up to 15% when you book early at hollidayinn.com >>> let's get a news alert with dominic chu atuit on our hands, fuji film, the japanese filmmaker is suing xerox for breach of termination agreements, looking for damages well in excess of $1 billion, according to court documents they filed their claim is that by xerox callinoff their merger with fuji films joint venture with xerox, carl failed to give other shareholders the opportunity to have a benefit of this merger. so these court documents just filed, an ongoing saga that we'll keep an eye on right now shares of xerox moving slightly lower on the heels of this lawsuit by fuji >> one of several corporate soap operas to keep track of. following the markets, still well off the lows. is down 155. only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like any of these types of plans, they pick up some of what medicare doesn't pay. and could really save you in out-of-pocket medical costs. call unitedhealthcare ins

i'm seema mody >> i'm dominic chu brian sullivan is in vienna. we'll hear from him in a moment.st let's check out what's happening on cnbc.com. landon dowdedy h edy has your mg headlines, or we'll do it ourselves. >> one story involves financials 35 of america's biggest banks got a clean bill of health and all passed the stress test next week the fed will decide whether to approve plans for buybacks and dividends somewhat of a surprise given the pressures financials have been put under. >> banks are so much healthier today than nine years ago. >> the official china daily newspaper publishing an editorial saying the u.s. is suffering from paranoid delusions when it comes to trade. the paper also calling u.s. protectionism self-defeating heightened rhetoric from both sides continues. >> editorial from the chinese government >> we also have some m&a, conagra reportedly approached pinnacle foods about a potential deal shares of both companies are flat in pre-market trade we have seen a lot of consolidation already in the sector >> all right you can see the premarket action, pinnacle

the most volatile on the down side and on the upside if things get resolved back over to you >> dominic chuhere. >>> shares in ferragamo have fallen following reports that the share price of a stake sale due to take place this week. they have been placed at $23.25. the sale will take place through an accelerated book building >>> and there's a lot of buzz about artificial intelligence at the moment one company's leveraged that buzz to become the fastest growing tech start up in the united kingdom black swan uses ai to help companies predict how customers may behave they're at the cannes lions advertising festival this week as is karen tso in the sunshine. you have been talking about this topic. >> indeed. big data, technology, ad tech, all the buzzwords here this week want to talk about frozen quinoa frozen is the disney franchise and quinoa a health food that has been all the craze when you think about food innovation. let's get how we can predict some of these behaviors. joining me now is steve king, ceo and co-founder of black swan data nice to see you. some of these big trends you have

and the oil market stocks these days, but which ones are going to be the most important to watch dominic chuth more on this important story, dom >> brian, as we talk about the multitude of drivers, we know all of that is come to go a head when opec meets in vienna. we reached out to our regulars to find out their thoughts of what they're watching in the coming days and weeks with regard to the oil market that could really move things we'll bring a few of them because we can't go through every single one of them here's a sampling of what we found. first of all you have jpmorgan they're saying the resynchronization of developed market growth and trading of the recent u.s. dollar strength expected in the quarters ahead should generally support commodity prices but there is still, of course, ample risk that can spoil the party watch the commodity things we know that let's move on to another aspect of it. we're talking to lima croft. she says with the u.s. shale producers facing infrastructure bottlenecks, it's ing to be saudi arabia once again back in the driver's seat exerting significant influ

i'm dominic chu. s&p up about a quarter of a percent.ng the way is technology, utilities and discretionary, following down over here is staples, industrials and financials, bringing up a bit of the rear. let's take a closer look at that discretionary center, that group currently on pace for its seventh straight record close. not too shabby in terms of the overall picture in terms of discretionary stocks names in the upside today, a lot of media discovery, cbs, viacom, charter. all four of these stocks, as you can see here, at a 10% premium or more from the 52-week highs something to keep an eye on. we're keeping a very close eye on shares of royal caribbean, up more than 5% on pace for its best day of april last year on back of its major investment luxury cruise line silver sea. those shares popping today back over to you. >> dom, thank you very much, with some of the movers. >>> president trump's steel tariffs butting heads with trying to bring jobs back to the u.s. stripmatic is feeling the pressure joining us from cleveland, ohio, we

dominic chu is joining us now looking at the companies with the most exposure.es have been the huge focus for a lot of investors. let's take a look at some of the blue chips and other s&p 500 stocks that have a good amount of exposure in terms of sales to china. not every company breaks out revenue exposure specific to countries and geographies. according to data these are the ones that you should watch in terms of focus. john deere gets about 8% of total sales from china. also caterpillar and heavy construction equipment and machinery, nine percent of total sales. boeing biggest drag on the dow today. 11% there. 3 m gets 13% of sales and then ao smith which makes water heaters and other hvac type systems. the consumer names are in focus. check out these. if you take a look at gets 12% sales from china tiffany & company gets 13% of its sales. tapestry formerly known as coach, starbucks, 15% and mcdonald's, biggest company in the world, 15% of its total sales. as we talk about the idea of big revenue exposure, these are among the brands that could take some of th

i'm dominic chu. s&p 500 has drifted into slightly negative territory.the relative winners so far today. take a look at the laggerds, material, health care and technology let's focus in on that a little bit more it was one of the big gainers in that rally yesterday we have the s&p 500 technology sector moving down by about a percent, as you can see here one of the worst performing sectors. right now the worst. advanced microdevices, applied materials, intel, nvidia all down take a closer look at this etf the tick er shm certainly, sara a big etf to watch when it comes to tech. back over to you. >> highs and lows on the consumer trade we talked about this theme that staples are under pressure while discretionary is hot smucker, which just announced an ugly quarter, trading at lows not seen since october 2014. for campbell's it's august 2012. on the flip side other names in this space, consumer discretionary that are flying high today nike trading at a record high. macy's back to levels that we haven't seen since 2016, kohl's is also doing well on "power l

i'm dominic chu.consumer staples and see what's happening there best performing sector so far has been underperforming the broader market much of this year, under 13%. it has seen some life the past week you have walmart, general mills and hershey up 1.5% or so. certainly a sector to watch. david back over to you guys. >> okay. what's happening on "power lunch" >> a very special "power lunch." i'll be heading over not far from here to three world trade center, brand new building, opening this week. we'll talk to the developer behind all of those buildings, larry silverstein. just another major milestone, david, in the building of lower manhatt manhattan. >> it's taken some time. >> paused around the housing crisis of 2008 but they are going up and have big tenants, who we will talk to as well. it's an amazing transformation of lower manhattan there's some concerns as well. that's coming up on "power lunch. >>> when we come back, satya nadella joins "squawk alley. that's up next with the dow up 127. yo

open out on long island, including world number one dustin johnson and dominic chu is here with the ceolcome. welcome to you, dom. kick it off. >> let's talk about the u.s. open, because how important is it for taylormade to have a week like this, a major championship here in the new york area? >> thrilled to be here, guys tyler, great to be back. well, it's a couple of things. one, it's great for golf when you think about the energy that a major championship in a major city like new york brings to the game of golf it's really fantastic. so, it's a big week for golf, and certainly a big week for taylormade i think about our athletes and how they're positioned to compete this week. i'm excited about the positioning of our brand, the athletes that represent our brand. we currently have five of the top ten athletes in the world that play taylormade and in addition though that, tiger woods, who happens to be trendi trending toward the to >> dustin johnson had an amazing weekend last weekend >> and the walkoff homer at the end, right >> holed out, yeah >> i know you two guys hit 9 iron 170 y

dominic chu. either side unchanged so far with the s&p 500, just about fractionally positive.s has been a pretty big mix. as you can see, materials, telecom and technology some of the biggest gainers. on the lagging side of things, you have consumer staples, energy and financials. i want to drill in a little bit more on the technology side of things take a look at this, because the s&p 500 technology sector could be on pace to close at another record closing level today so, that will be a big deal as well some of the names leading the way higher, you've got xerox, ebay and seagate technology to the upside we want to call your attention with what's happening with another big stock out there. that's apple another intra-day high just in trading so far today as you can see here we're now worth $950 billion guys, sara, that race to a trillion $50 billion away for apple. >> apple versus amazon for a trillion >>> first state since the supreme court ruling to offer sports betting, delaware we'll have delaware governor john carney on >>> and howard schultz starbucks executive chairman

i'm dominic chu. markets rebounding after the open and then now off those session highs.ake a look at a couple sectors driving things real estate and tech leading things, materials and telecom are lagging. let's focus on the material stocks as we take a look at some of the big movers, at least for this particular one to the downside so far in the material sector the likes of freeport, international paper, dow, dupont, new corp leading the sectors to the downside. that particular one. mosaic shares adding to yesterday's losses as well guys, back over to you >> all right thank you very much, dom we want to take a check on shares of fedex as well, reporting a higher fourth-quarter profit as a benefit from the u.s. tax cuts and a rebound in the express business on the earnings call ceo fred smith says he is optimistic about the company's future but warned about the impact of escalating trade sessions with china. >> we do remain concerned, however, about threats to diminish the free flow of goods among countries. trade is a two-way street and fedex supports lowering trade barr

is that a play on boot dominic chu has more on what the move means for general electric.of the end, not the beginning of anything. there are index funds, but it's like symbolic at this point. shows how far the mighty have fallen maybe -- maybe this is the beginning of a new era for ge, where 12 is the low or something. >> i don't know. seems like a contrarian type play years from now will we look back and say remember that day back in 2018 when ge got kicked out of the dow was that the beginning of the run up higher? i don't know i wish i did the folks who get paid to know or at least think they know are the analysts out there who have their take on ge it remains to be seen whether getting kicked out of the dow jones industrial average is any reason to upgrade or downgrade a stock. i can't see it as being a reason maybe they do it today or tomorrow or the next couple of days the current state of play, for ge shares, generally speaking, as in most cases, the analysts are relatively bullish on it only about a quarter, 28% of analysts out there covered by fact set say ge is

. >>> a market flash from dominic c chu. >> shares of the u.s.etrobras those shares are down sharply about 7%, 8% the reason why is reuters and bloomberg both reporting that brazil's petrobras says its ceo has resigned no reason yet given. we are reaching out to petrobras to confirm some of these details and get some color on the reason why he has resigned. this is coming in the wake of a lot of worker strikes or proposed worker strikes for brazil's state-run oil concern also right now to show you, sao paulo shares are suspended probably the only way some can take a view and manage their risk is in these new york-traded shares certainly we're watching this and we'll keep you updated as we know more on our end >> the brazilian real is also getting slammed with the dollar spiking on that. the strikes have also been a problem. thank you, dom >>> president trump issuing a new set of steel and aluminum tariffs targeted at the eu after steve mnuchin signaled a hold on the trade war. joining us for his take, richard haass, author of "a world in disarray

chu. back in the day when those companies dom listed were the dominant companies, nobody thought, oh, they'llby the wayside so what will separate apple from becoming those companies. >> the hope is what will separate them and it's time they transition from a hardware company to a software services company. that gives people a stick your ntele. talk about sony the same way. >> reservations about them becoming the service in order to get the valuation they covet the revenues of service have to be north of 25%. >> what's interesting about apple is we're no longer talking about these refresh and the volatilityt comes with them think about fading one of those leadups to that, it's becoming lower amplitude. they basically said you're looking at apple, that means it's a lesich gets it to the higher multiple i'm still along the stock. this was a couple months ago we were still looking at those -- everyone was saying that no one is upgrading the iphone so i still think we're caught in that prism but even is so myopic on that we'll take it out and everyone will worry about the trillion and a half so i