for "nightly business report," i'm morgan brennan in st. louis, missouri. >>> finally tonight, may 4th is "star wars" day as in "may the 4th be with you." the day to celebrate one of the most successful franchises in movie history. since 1977, worldwide gross at the box office, more than $7 billion. according to "fortune," dvds and digital downloads reach $16 billion. video games, more than $4 billion. then there's all the other stuff like intellectual property, books. they took in more than $3.5 billion. for a total of nearly $42 billio >> i think we both had some of those toys in there. >> oh, yeah. >>> that will do it for us on "nightly business report," thanks for joining us. i'm sue herera. >> i'm tyler mathisen. see you back here tomorrow.

. >> reporter: i'm morgan brennan in new jersey. in the midst of a truck driver shortage, one company is turning to the stock market to attract more workers. we have that story coming up on "nightly >>> congressional democrats are asking deutsche bank for information on president trump's accounts. that request is part of the investigation into alleged ties between his campaign and russia. democratic lawmakers are trying to determine if loans for the president's real estate business were backed by the russian government. >>> iraq and iran both say that they support extending oil production cuts. at a meeting in vienna, the oil ministers from those countries say they're ready to back a deal through the first quarter of next year. iran and iraq are critical because they are the second and third biggest producers. today the price of domestic crude fell just slightly. >>> china's debt rating was cut by moody's for the first time in nearly three decades. that country's rising debt and slower growth prompted the rating agency's move, which

morgan brennan has that part of the story. >> the pransomware in an ef mor connected world. >> we see millions of organizations that are potentially vulnerable to this type of attack. >> i'm hesitant to say, we're seeing a cyber pearl harbor. but we've got to wake up to the real potential of a devastating attack in this way. >> but for the economic toll and the financial cost, it's also driving demand for an emerging business. >> the first calls were on friday. we've got a lot more calls today. and i think we'll see more through the weekends and months to come, particularly in industries that have historically underserved for cyber insurance like manufacturing. >> thomas regan advised his clients for insurer marsh, one of the most critical areas of focus. the investment seems to be payi. cyber insurance purchasing grew by 25% last year. and marsh isn't alone. other insurance companies from aig to beasley have reported similar growth, as more businesses seek protection in the case of a . the cyber insurance market is still relatively small. the insurance information jumped over $3 bill

for "nightly business report," i'm morgan brennan. >>> the defense stocks, many of them, are at record highs on the trump saudi deal. and historically following agreements like that one, it will p surge over the next month. welcome. nice to have you here. >> always great to be here. >> you're relatively bullish on this sector. >> not relatively, very bullish on this sector, absolutely correct. i think this sector's got plenty of ramp left in it. the deal we saw over the weekend with saudi arabia is just one bit of evidence that defense is a very high priority, not only with international governments, but the u.s. as well. >> we saw, though, early in the trump administration the president was very concerned about costs. i know you like lockheed martin, for example. he was very concerned about the cost of the f-35 fighter jet. will their profit margins be squeezed, even though we're talking about a big defense contract? they're forced to bring those costs down. >> well, first off, i tend to think that this is exactly what we want from a president, from an administration. as taxpayers, it

morgan brennan reports on the american defense companies that could benefit. >> reporter: the u.s. is poised to unveil one of the biggest arms deals ever. a flurry of agreements with saudi arabia expected to be announced tomorrow, while president trump is visiting on his first trip abroad as commander in chief. the deal will likely be worth upwards of $100 billion, with a potential to grow to as much as $350 billion over the coming decades. it's a sum floated by senior whithouse officials this week. with oil at $50 a barrel, it's been met with some skepticism. >> a little bit of this is hype. but from the standpoint of embracing this with a big grin on his face, that's what people in saudi arabia want to see right now. >> reporter: during his eight-year tenure, president obama approved $115 billion of potential arms sales to the kingdom. many of those were put on hold after saudi arabia invaded yemen. some of those may be resuscitated now, including deals for combat ships from lockheed martin and tanks. a new security system is made by raytheon, run by tom kennedy. >> missile defen

are you watching morgan brennan here we go. first stock. >> apple. getting bullish on apple, raising summations for calender years, '17, '18, and '19. he see it is eight super cycle with only pent up demands driving shipment to 270 million units in 2017. >> second stop is we talked about trucking earlier, jb hundred. jb starting mortgage of a company with the buy rate of 170 million target. they believe the multiple compression relieves the tract upon. >> decline in the stock. >> they say that jb hundred has a unique instructor recall advantage. >> last stock a recent ipo rating 23 price target, it's data management meeting big data. the disposition to disrupt and gain market share and data pace market system -- an internet of theme of two quarter percent here. that's it for "street talk." >> still to come, more than 60%. next we speak to the ceo. >>> i' what's on the menu, investors hitting the brakes on the auto stocks. >>> the foreign stock of s&p 500 this year is up 60%. the ceo joins us with the prescription for profits. >>> it may have delayed

for more, let's go to morgan brennan at headquarters. >> hey, morgan. let's start with gap.avy, continuing to do the standout brand there. same store sales 8% last quarter. trouncing estimates. banana republic, struggling with comparable sales falling 4% t. gap reaffirmed full-year guidance. it did raise the forecast the first half of the year. shares right now up about 2.5 hmm 3% in after hours. ross stores, also higher, the current quarter for your eps forecast come income late for the retailer. same store sales growth, that was better than expected as well. >> that is helping send ross stores up 3% as well. back over to you. >> thank you very much. t.j. maxx is doing poorly, ross is doing well. what does that tell us? >> retail traded off the border attacks adjustment. it got spooked. everyone said buy on the dip. it rallied. now we see when they have results, they're moving on to online shopping. to me j.c. penney is down 45% year-to-date. you i don't your down side is four-and-a-half hours. this is the leverage. >> how do you know that's your down side? i'm curious how

morgan brennan has more on how the online giant could shake up the paperback world. >> reporter: theyt one back. as you just mentioned, this is a brand-new book store from amazon. it's located in the same retail complex that used to house a borders. i have been hanging out here all day. i will admit i have purchased some books, but this is the first of two planned stores in new york city. it is the seventh brick-and-mortar location for amazon in the u.s. right now. it officially opened its doors this morning. while admittedly a lot of media, amazon staff and book publishers here check this out today, the foot traffic in general has been brisk, particularly at lunch time. we had lines out the door, down the hallway because this store was at full capacity. amazon did start as an online book store. this is the amazon take on the brick-and-mortar experience. you have these displays curated with data, with amazon's 20 years of online data. you have the front-facing books. that means less inventory. integration of the amazon app, and not surprisingly generally lower prices for prime members

. >> gentlemen, adding another wrinkle, want to bring in morgan brennan.ost lucrative arms deal that could happen in this foreign trip. >> that's right. it's expected to happen as soon as tomorrow morning. agreements worth up wards of $100 billion with a potential to grow to as much $350 billion over the next decade. just to put that in perspective, president obama approved $115 billion in potential sales over his eight years. they'll be resuscitated in this deal, including with ships to lockheed martin. also expect saudi arabia to announce its intention to buy a missile defense system, shorthand, thaad, that's already being installed in south korea, made by lockheed with a lot of input from raytheon. president trump's son-in-law, jared kushner called the ceo to talk about cutting the cost to that system. to that, lockheed will only state government-to-government decisions and status of any potential discussions can be best addressed by the u.s. government. basically, no comment. other weapons deals expected, more patriot missiles, precision guided munitio

our morgan brennan is inside one of the production facilities. nly am i inside the production facility, i'm inside the cockpit of an ea growler. this is one of the planes in the f-18 line. we'll talk about the fighter jets, the future of the f-18 project when we get back. >>> what's the best way to make money just ahead of the jobs report? our traders will weigh in on tradingnation.cnbc.com. more "squawk on the street" coming right up. >>> taking a look at shares of tesla the automaker nearly doubling the quarterly revenue from a year ago. but it posted a bigger loss per share than analysts had expected. the stock is down almost 6% this morning. morning. hard to tell if that's on some of the delivery, some of the confusion around the new models. now let's send it out to john with a look at what's coming up. >> we have oracle's ceo going to join us from headquarters in silicon valley. it's the morning after facebook earnings. strong numbers with the guidance has some people spooked. tim cook talked to jim cramer. we will dive into what he said. tha

here's morgan brennan with the cnbc market wrap. >> the s&p and nasdaq snapped after the dow lost 50own 7 and the nasdaq off by 7. personal incomes and spending increased 4% easing concerns about second quarter economic growth. it's the biggest bump since december and home prices climbs nearly 6% in march. it's the biggest year over year gain since until of 2014. that it from cnbc, first in business worldwide. ♪ here's to breaking more glass ceilings. in golf and everywhere else. ♪ the kpmg women's pga championship. p3 it's meat, cheese and nuts. i keep my protein interesting. oh yea, me too. i have cheese and uh these herbs. p3 snacks. the more interesting way to get your protein. bp uses flir cameras - a new thermal imagining technology - to inspect difficult-to-reach pipelines, so we can detect leaks before humans can see them. because safety is never being satisfied. and always working to be better. the opioid my doctor prescribed for my chronic back pain backed me up-big time. before movantik, i tried to treat it myself. spent time, money. no go. but i didn't back down. i talked

morgan brennan is on the scene talking that. good morning. >> reporter: good morning. that's right, so we are inside the brand new bookstore from amazon. located i should note in the same shopping complex that once housed a borders. so this is the first of two locations planned here for new york city. and as you mentioned, it is the seventh brick and more information store for amazon in the u.s. so far. so this location just opened unofficiallymoreinformation ston in the u.s. so far. so this location just opened unofficially a little over an hour ago and a fair amount of foot traffic here. but a lot of media and a lot of amaz amazon employees here to answer questions. even a wall street analyst. so we've been talking to some of the folks who are here looking to buy books and so far the reaction is very positive. number of people getting books, they like the way the displays are curated. so experts say that this is yet another way for amazon with these bookstores for amazon to lure more consumers to sign up for prime memberships. prime members get some pretty steep in-s

." ♪ >>> you guessed it, ceo david abney sitting down with morgan brennan.from their conversation. >> reporter: good morning. ups unveiling a partnership for dubai's world expo 2020. we also spoke with ceo about ups's struggle to keep pace with e-commerce which pushed up cost for the company in recent years. ups is investing four billion dollars this year to expand network capacity to better handle the growth, but it also has been implementing new pricing strategies including surge pricing for the upcoming season that could essentially charge retailers and other customers for packages that don't actually ever ship. >> so just making sure that during that time of year when certain customers give us a lot more packages, if they try to call us we simply want to be compensated for that call. >> reporter: now, we also talked about president trump and the administration's recently-released proposal to cut the corporate tax rate down to 15%. >> we are encourage willed by what we're hearing. again, we have to get the details, too, but we're a high tech company. for

morgan brennan has that part of the story now. morgan? >> bill, that's right.o cyber insurance, now that market is estimated to be about 2.5 to 4 billion in premiums, but growing fast, expected to potentially triple by 2020, so if it's like this ransom ware attack, help fuel the growth, and, in fact, some insurers say they are already experiencing more demands. >> we've got a lot more calls today, and i think we'll see more through the weeks and months to come, particularly in industries that have underserved cyber insurance for manufacturing. >> the cyber experience portfolio grew by 25% last year, and other insurers, the two biggest in the market, cite similar growth numbers. more international companies expected to take out policies now as europe implements new regulations next year, and because right now, nine out of ten policies are actually state side, meaning many companies affected by wannacry do not have coverage. also, what's included in the policies? that's changing, becoming custom to include coverage for business sburp interruption, and interesting

for some reason morgan brennan is at a truck stop on the new jersey turnpike.n my way home i'll stop by. tell us more about the stock grants. it's kind of cool. >> reporter: this is an employ ee stock plan for drivers. it is believed to be the first benefit of its kind that is offered by a u.s. carrier. this is one of the reasons he took it public and he's doing it as a way to help lure and retain more truck drivers amid a labor shortfall by the american truck ing association. so how are actual company truck drivers responding to this benefit. >> it's taking care of the driver that causes churn. when you're just a number, you're always looking for the greener pasture. when you find something that's good, you want to stick with it. >> it's a great idea. not a lot of bosses are willing to give lower truck drivers and all of the other smaller employees just give them free money. >> reporter: so this will mark the first time either has been invested in the stock market and overall this is the latest example of how trucking companies are pulling out the punches, eve

morgan brennan.re talking to a company that is getting in on the digital currency craze with the new coin. it is a messaging app. we'll look at the s&p sector heat map. going to take a look at that? we don't have that. "power lunch" is back in two minutes. that college experience that i had. the classes, the friends, the independence. and since we planned for it, that student debt is the one experience, i'm glad she'll miss when you have the right financial advisor, life can be brilliant. ameriprise we rbut we are not victims.ack. we are survivors. we are survivors. we are survivors. and now we take brilinta. for people who've been hospitalized for a heart attack. we take brilinta with a baby aspirin. no more than one hundred milligrams... ...as it affects how well brilinta works. brilinta helps keep platelets from sticking together and forming a clot. in a clinical study brilinta worked better than plavix®. brilinta reduced the chance of another heart attack. or dying from one. don't stop taking bri

morgan brennan joins us from the e-commerce giant's new store in new york city.od morning, becky. >> i'm standing here in the same complex that once housed a borders, remember those big box retailers that amazon helped put out of business? it is the seventh brick and mortar store for amazon in the u.s. you might be wondering, why is the e-commerce giant doing this? amazon will tell you it is to sell more books temperatu. amazon did start as an online store. experts say this is one more way that amazon with sell consumers its prime membership. to that extent, you can soun son prime, when you take a look at these books, they are incentivized in terms of you have to scan the book or the bar code associated with it on your amazon app, which i'm doing right now and of course it live television so it's not working quite the way i would like it to. but when you do, the book will come up as amazon prime members, $7.07. if you're not a prime member, it's full retail price, it's $18. so we're here talking about books. but this is part of an emerging strategy to create more

morgan brennan joins us now with some of the details in this deal.rning. >> hey, good morning, sara. so we reported it last week, now it is official. a massive deal with saudi arabia. $110 billion in agreements effective immediately. now, we're still light on details, but among the winners, lockheed martin, boeing, raytheon and general dynamics all of which the stocks are hitting all time highs today. one new wrinkle. some of those weapons systems will be assembled in saudi arabia as part of the kingdom's push to spend half its defense dollars with local companies by 2030. that's starting with the launch of the state owned arms company last week. so lockheed said final assembly of 150 s-70 black hawk helicopters will be done there. and saudi arabia is encompassing the munitions and general dynamics will help localize and design and support of armored combat vehicles and boeing is establishing several joint ventures including one to provide services for a wide range of military platforms. so up to $350 billion in prospective deals over the next decade

morgan brennan joins us now with more on that. morgan, good morning. >> good morning, wilf.f the biggest arms deals ever announced. it's supposed to happen tomorrow while president trump is visiting saudi arabia. those foreign military sales agreements are expected to be upwards of $100 billion with the potential, i'm hearing, to grow to as much as $350 billion over the coming decade. now, among the new agreements that will be announced, which will many of which will have to clear the state department and congress for approval still, terminal high altitude area defense like the one currently being installed in south korea right now. that's made by lockheed martin with input from raytheon. also precision guided missions, ships, tanks. so who stands to benefit from all this? it's going to be the big five contractors, lockheed martin, raytheon, general dynamics, northrop grumman and boeing all of which have declined to comment on this. this is expected to be announced as soon as tomorrow morning eastern time and based on a draft agenda of the ceo forum that is circulating right

our morgan brennan spoke with ceo david abney ahead of today's event. s. sorting center in new york city. hey, morgan. >> hey, melissa, that's right. so u.p.s. ceo david abney says he's hopeful about -- that he hopes that handling all of the content for dubai's massive world's fair will give u.p.s. name value in the fast growing legion. of course we also talked about package deliveries with gang busters growth of e-commerce. u.p.s. has struggled to keep pace. something that's pushed up costs. the reason the company is investing $4 billion this year. analysts have said the clock is really ticking on the company's ability to make more money on those residential deliveries. so i asked abney how investors should think about the company's time line. >> well, you know, many people would like for you to make investment and then immediately start returning. where many of these things, automation, adding buildings, adding aircraft, you have to first expand the money, or spend the money, and then you build up, so sometimes it's a little bit of a lagging effect. >>

morgan brennan joins us now with more details and the big winners. morgan? >> hey, melissa.his could be coming this weekend. now it's official, the u.s. and saudi arabia striking this huge arms deal on saturday over the weekend valued at up to $350 billion over the next ten years, $110 billion worth of deals becoming effective immediately. still light on details. here are some of the winners. lockheed martin which announced $28 billion in potential new business, including assembly of 150 s-70 blackhawk utility helicopters in the kingdom. also resuscitated deal for four modified combat ships and the kingdom's also looking to purchase the saad missile defense system which raytheon contributes to as a supplier. raytheon also setting up a new saudi based defense arm encompassing munitions and cybersecurity. boeing struck defense and commercial agreements as well, including insure chinook helicopters which had already been in the works also a deal for prospective orders of p-8 maritime surveillance aircraft. these are the defense derivatives of the 737 commercial airplane. how to

morgan stanley rate china ever grand at overweight. emily: this is "bloomberg technology." i'm emily chang. former cia director john brennaned before the house intelligence committee tuesday. for the first time, he publicly said he was concerned about possible ties between russia and the trump campaign, saying that russia "brazenly interfered" in u.s. elections, including actively contacting members of the campaign. he stopped shy of calling it "collusion." he also says he's concerned over reports that president trump shared classified information with the russians on may 10 in the oval office. >> i don't know what was shared or said in the oval office, but if the reports in the press are true that mr. trump decided to spontaneously share intelligence with the russians, i think he would have violated two protocols. emily: our global news reporter joins us from the -- washington. what where the biggest revelations from the testimony today? reporter: good afternoon. i think the big takeaway that a lot of people had was the early on concerned that brennan expressed, this idea that he was confronting russian officials as far b