meg terrell reports. those stories and more tonight on "nightly business report" for thursday, may 11th. >>> good evening, everybody, and welcome. it looks like the magic is gone at macy's. the country's largest department store saw sales fall sharply in the first quarter and its profits fall even more. as we told you yesterday, the retailer has been struggling for quite some time with declining mall traffic, increased online competition, and a race to the bottom discounts. investors did not like what they saw, sending shares tumbling to a nearly six-year low. this was the first earnings report for macy's new ceo. as courtney reagan reports, he has an even tougher job ahead of him than many thought. >> reporter: there are no signs of a turnaround in macy's quarter. sales have fallen for a ninth straight quarter. executives said there were no surprises in the quarter, although that's not the case for investors. even low expectations weren't low enough. still, the department store is reiterating its full ye

meg terrell is following the story from the new york stock exchange meg, good to see you. the drug worked. the stock is down. how concerning are the side effects? >> well, the side effects were concerning enough that amgen which had expected an fda decision on the drug by july, no longer expects the fda to be able to review the drug on that time line. this is a late stage study. it had already been through a lot of other clinical trials. this is the first time anybody's seen this potential side effect. what they observed is a potential heart risk for the drug. they said it was serious adverse events related to cardiovascular issues. clearly pretty concerning here. >> what's the future of the drug in the meantime and what does it mean for amgen? how big a hit is this for them? >> that's right. they already do have some osteoporosis drugs available. this one was going to be a continuation of that franchise. some analysts are taking their models for this drug completely out of what they expect for amgen in the future. others say maybe a 50/50 chance. but there is going to be

for "nightly business report," i'm meg terrell. >>> still ahead, role reversal. why ibm, which once encouraged working from home, is changing its tune. >>> the number of people filing for job less benefits fell last week. initial claims for unemployment payments dropped. claims have been below the key level for 115 straight weeks. >>> ibm is shifting its policy on working from home and calling workers back to the office. in a reversal of the work from home movement that it pioneered, the tech giant now says its remote employees must come back to a regional office or leave the company. could other companies follow? joining us, professor gordon, good to see you again. >> hi, sue. >> what do you make the ibm's move? some say that this is basically the company's way of shrinking its workforce, giving employees a choice, but as a result, if you leave, they shrink the workforce. others say it's better to be in an office for the collaborative type of environment that that fosters. >> this is one where you just have to ask yourself, what were they thinking? now, if what

i'm meg terrell.ilead, trading down after hours after a mix on the top and bottom line for the first quarter. they did reiterate the guidance, everything looking light for gilead except a new hiv drug a. cash file at the end of q1. of course, all eyes are on what will they do with it? will they pursue mna. there was a question on potential tax reform is affecting the situation t. ceo said no, they're trying to tune that out. they do have an eye on deals. listen to what he said. >> we focus our efforts on broadening your team, adding some depth both scientifically and business experience so we, in fact, have much, much greater capacity to assess things and, in fact, fully engage with our team's accepting a number of different opportunities, which we think could play out over the coming years. we start to make progress in getting partnerships and potential acquisitions together. >> not getting specifics on what gilead might try to pursue in the size of the deal, now, back to you. >> you mentioned the st

for "nightly business report," i'm meg terrell. >>> and coming up, why virtual offices are now a real player in real estate. >>> mortgage applications are on the rise. total volume increased about 2.5% on a seasonally adjusted basis last week from the previous week, as the buyers complain about high home prices and limited listings. according to the mortgage bankers association, volume is still below year-ago levels because of weaker refinancing. >>> anyone with a computer can launch a website and start working from basically anywhere. but for some, where you work is still important. that's why the boom in small business is causing yet another boom, in offices. not real offices, mind you, but virtual ones. diana olick reports from new york. >> reporter: on the 85th floor of one world trade center, there are receptionists, offices, conference rooms, and co-working spaces. but it's what's the not here that matters. what is a virtual office? >> people who are working from home. >> reporter: australia-based serve corp. has operations in 24 countries but entered the u.s. only recently in t

the company's ceo poke spoke to meg terrell about it. >> if you look over the last five years we've been able to introduce 12 new compounds, 11 of which were blockbusters, billion dollar plus. what we're really talking about today is how excited we are for the future. we've got ten between now and 2021. we think we've got 50 line extensions, 11 of which have a half billion dollars potential. >> this down market day, shares fell only tractionally to $126.67. >>> the justice department is suing unitedhealth group, alleging the health insurer received $1 billion for false medical claims. this is the second lawsuit the government has brought against the company this month. still, shares up today, 74 cents at $168.86. >>> southwest airlines will launch a $2 billion share buyback plan and also raise its quarterly dividend 25% to more than 12 cents a share. the yield is now just under 1%. southwest's shares were off 2% at $57.04. >>> athena retail warned it would miss third quarter sales and earnings targets as a result of, what else, slower customer traffic. that will do it to you. the owner o

. >>> speaking of health care, over to meg terrell. meg? >> thank you so much. we're joined at the world medical innovation. bob, thanks for being here. >> happy to be here. >> the focus is cardio vas scholar disease and you have a big new cholesterol drug people expect to be a big moneymaker but it hasn't been taken up and paid for as quickly as investors hoped. you presented some data showing that it reduces heart attack risk. have you seen a change from insurers based on that data? >> maybe take a step back and reflect on what we learned from the large, robust outcome study that we recently reported on. and, as you know, the data was robust and demonstrated we were able to lower ldl, the bad cholesterol, and as a result of profoundly lowering that bad cholesterol we were able to significantly reduce heart attacks, stroke, and the things stents and coronary bypass surgery are required. if you look at the data after 12 months those subjects experienced a 35% reduction in heart attack, a 24% reduction in stroke and 28% reduction in the need for coronary vas scho

joining us is francis desouza, the ceo of i lumina along with meg terrell. >> thanks for being here. >> good morning. thank you for having me. >> in january you announced your new sequencing machine. tell us about what growth this machine will bring to illumina, what this does that's different from previous models. >> it was a hugely exciting launch because it represents the most powerful genetic sequencer ever launched. at the same time as it's the most powerful, we also released it at a price lower than our previous machine. that we have done is give access to this huge power of genomic testing to a vast majority of labs out there. we believe that will drive a whole set of new genomics research going into the future. we have lots of labs that are interested in learning more about how genomices impacts human health and complex diseases like schizophrenia, autism. we expect to unleash a whole new set of research that will fundamentally improve our understanding of how health and disease works and then ultimately, improve our effectiveness in the clinic. >> how is it going with the ne

meg terrell.vironment when people are looking to reduce risk in their portfolio. >> i think you'd be careful. if you are trading the etf, i think you have to be careful wit. because it's such a haidah that type of thing. it's also tied very much to the political environment. so it is subject to tape on. i would be careful. i would reducepy risk on that. >> on the flipside, it's a good thing. >> exactly. one of the things that was popular about trump's tweeting was drug prices are too high. you know that plays well, if he's not going to be able to get that done. does that give them some tremor? >> it's up 11%. it's outperforming the overall market. i'm long valiant. tim is long valiant. that's specialty pharma. these are plays where you have to have an iron clad stomach to be able to play. >> last week, two weeks ago, when you came out with that. >> now it's time to sell. >> i appreciate that. >> so why did you buy? >> two weeks ago they didn't have to play down some debt t. enterprise didn't move

meg terrell is here to discuss this.after the expiration date, which means it's 14 months but they're basically usable? >> these folks looked at 41 epipens an nine of the epipen, juniors for kids. the oldest were about 50 months after the printed expiration date. they found all of them had more than 80% concentration in them after that date. they are arguing perhaps these things last longer than mylen let on. >> if these work, meg, if there is son active medicine, not 100%. maybe the one didn't work the next one did. what would that mean in practice? >> there was varably in these data, we did see curve the older the pens were, the less concentration of epineprrin was in them. they have 100 to 90% of the active ingredients, maybe in the '80s is something you don't want to count on. myelin point out there are rules, currently based on their quality controls, people should be getting few ones every 12 to 18 months based on their expiration dates. >> there is investment. do your donor versus to bring that to a regular course

let's sends you over to meg terrell. >> the company aerie is saying glaucoma drugs released pressureurs. the company is saying if they also have successful results on an ongoing safety study, they plan to apply for approval. back to you. >> after the spike in puma, it's a banner day. thank you. >>> the congressional bug office releasing its score for the new health care bill a few minutes ago. kayla. >> reporter: a quick summary, kelly, of what we we heard from the congressional budget office a few minutes ago. under the version of the ahca, the house passed a few weeks ago. 23 million americans would not have insurance. that's an increase over the current estimates for the current law that is in place. >> that is an improvement over the previous version of the law. but that comes at a cost of about $dlirt billion to the deficit. the ceo saying it will be about $119 billion compared to $150 billion. it's complicated where it comes to premiums. the ceo acknowledging the states would have a wide range of options for the next couple of years, premiums would rise, first 20%, then 5%ch th