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Transcripts For KQED Nightly Business Report 20170427 : vima
Transcripts For KQED Nightly Business Report 20170427 : vima
KQED Nightly Business Report April 27, 2017
Announcer this is nightly
Business Report
, with
Tayyip Erdogan
Tyler Mathisen
and sue herera. The techadopted nasdaq pushes further into negative territory. United settles with a man dragged off its plane and takes more steps to try and improve its battered image. Drowning in debt. Americans owe a lot of money and the amount is growing fast. How much is too much . Those stories and more on nightly
Business Report
for thursday, april good evening, everyone, and welcome. The nasdaq closes at a record. And the way things shaped up late today, that indexs hot streak my only get hotter. Lets start with amazon, reporting strong quarterly results, blowing earnings estimates right out of the water. The
Company Reported
a sharp rise if profit even as it spent a lot expanding operations overseas. It earned 1. 48 a share, 36 cents better than what wall street was looking for. Revenue climbed from a year ago and also topped expectations. Investors liked what they saw, sending shares to a record in after hours trading. Deirdre bosa has the results. Reporter 1,000 is the next big number for amazon, pushing its shares within striking distance of that milestone. The company is pushing into a dizzying new array of businesses and regions and investing huge to do so. This quarter alone, it spent in india, boosted its logistics business, and introduced new features and eyes for its hit echo device. Its making money thanks to continued growth in retail and its profitable cloud business. Deirdre bosa in san francisco. Alphabet, the
Parent Company
of google, is competing with facebook to grab a larger share. Its
Youtube Business
is also strong, despite some brands recently pulling some ad money because of placement next to controversial videos. Alphabets results topped earnings and revenue expectations. Look at the chart there, it saw shares rise in initial afterhours trading. Josh lipton now with more on the companys big quarter. Reporter 21. 4 billion. That was one big number in alphabets latest earnings report. Again, this is how this company does make money. Some investors had expressed concern heading into this report. Remember, in late march, some big brands had suspended campaigns on youtube after ads were running alongside offensive content. Google responded, implemented some new controls and policies to safeguard those advertisers. In a quick chat with a
Senior Executive
at alphabet, they said from a revenue perspective, the impact from that controversy would, in their word, be modest, and that long term they would continue to benefit in the secular shift in how consumers are consuming content. Investors looked pleased with the result. For nightly
Business Report
, josh lipton, san francisco. While investors liked the results from newer tech companies, they were disappointed by old tech. Microsofts earnings topped expectations. Its revenue, though, slightly missed due to week growth in its personal computing business, its largest by revenue. There was increased demand for the companys cloud business. Shareholders expressed their disappointment, sending shares lower in afterhours trading. Julia boorstin has more on microsofts results. Reporter microsofts
Cloud Services
driving good results. From large multinationals to small businesses, organizations are using microsofts
Cloud Platforms
to power their digital transformation. Microsofts azure cloud product saw 93 growth in the quarter, while its productivity businesses saw a 22 increase. Back over to you. Julia boorstining, the there. Intel reported lower than expected revenue. Its data center business, crucial to intels transition from pcs to internetconnected devis devices, didnt do as well as hoped. The ceo says he feels good about the quarter. The data center performed in line with our expectations for the full year. Were looking at 8 growth for the year. 6 is what we expected in the
First Quarter
and we feel like were wellpositioned. He may have been satisfied, but investors were not. They were disappointed, pressuring the stock in initially late day trading. Lots to talk about. Lets turn to dan morgan with more on how big tech names and the results might
Impact Todays
recordsetting nasdaq. Hes manager at sinova trust. Nice to have you, dan, welcome. Thanks, sue. The nasdaq sets a record high. There are those who say the nasdaq is looking a little frothy. Others say it can power higher. How do you feel . We look at the nasdaq compost, it trades about 33 times earnings. S p is 21 times earnings. But if you look at expected growth, sue, going into this year, nasdaq is like 53 compared to the s p 500 at about 11 . So i think that the multiple commensurates the expectations in terms of earnings growth. The other point is, you have to remember only a thousand points above where we were in march of 2000 when the nasdaq hit 5,000. Were not that much higher than we were 16, 17 years ago. Whats driving the nasdaq . Is it the names like the ones that reported today, the alphabet and amazon . Or is it ones that fly a little bit below the radar screen . One area that, you know, wasnt on the platform today was the semiconductors. They have done extremely well, an area thats been doing well within technology, within the nasdaq. Apple reports next week with their expectations on iphone 8 or getting ready for that. Those are other reasons that have been pushing the nasdaq. Its been other names, tyler, than just the names were talking about today, which is obviously amazon and google with huge numbers. You mention in the notes im looking at here that the
Commerce Department
is going to report the gdp number tomorrow, and that weve seen
Business Investment
in software and business spending in
Software Drop
off a little bit. Do you anticipate that that will continue . And how worrisome is that for you . Its somewhat worrisome, sue. Last quarter, it was down 4. 8 . If we got another bad number tomorrow on, you know,
Business Investment
in software spending, that would give us some concerns that going forward, growth in
Technology Spending
may be slowing, and thats something we have to be worried about within the nasdaq composite. Whats your favorite tech stock . Amazon, just because of aws, amazon web services, up 42 . Thats pretty good. Thats a gem there with amazon, its done really well. Thats one of my
Top Technology
stocks right now. All right, dan, well leave it there. Thank you so much for joining us, dan morgan. The tech center lifted the broader market, offsetting a decline in
Energy Shares
as investors shifted focus from washington back to the health of corporate america. The
Dow Jones Industrials
up 6 points to 20,981. Nasdaq up 23 to the record, as we recorded earlier. The s p 500 was up 1 1 3. Were at the
Halfway Point
of the earnings season and some trends are emerging. Bob pisani has a look. Reporter so far the market likes had an what it sees. Stocks have rallied because of longawaited tax cuts now in play. Earnings guidance that has generally been better than traders anticipated. Now, full year guidance has been strong, particularly in the industrial space. So the largest names like caterpillar and 3m and honeywell,
Stanley Black
decker, have not only beaten the guidance but also raised full year estimates. Ge and
United Technologies
both reaffirmed their full year outlook. Thats a huge relief to the markets, because traders have been concerned because stocks have expensive by historic standards. Analysts have been modelling notable increases in earnings for the rest of the year based on not trump tax cuts but on an improving global economy. First quarter profits are expected to jump 12 , the best gain in six years. They have similarly high hopes for the rest of the year. By the way, this is not just the
United States
. Earnings have also improved in europe. The stock 600, the european equivalent of the s p 500, saw earnings grow about 13 in the fourth quarter. That follows a year of declining earnings. Now
First Quarter
earnings are expected to rise 5. 5 in europe. That would be the strongest in five years for that quarter. Well see if this is enough to keep the stock market near record highs. Thats the key. For nightly
Business Report
, im bob pisani at the new york stock exchange. Still ahead, as americans continue to borrow money, how much debt is too much debt . The number of homes that were under contract dipped in march. According to the
National Association
of realtors, pending home sales fell 8 from a month earlier. The decline may be due to both the lack of inventory on the market and also the increase in home prices which have risen far faster in recent years than americans incomes. President trump says the north
American Free
trade agreement, nafta, will be renegotiated, not immediately terminated. The president decided against abrogating the trade deal after speaking to the leaders of both mexico and canada. He added that terminating the deal would be a shock to the system, but if a fair deal cannot be renegotiated, nafta will be terminated. One day after the white housing released its tax outline, investors want to know what impact if any it could potentially have on economic growth. Steve liesman did some digging. Reporter the president s tax cut plan immediately launched a vigorous debate among economists. What will it cost and how much growth will it generate . But the president s team threw a wrench in the argument. It didnt release enough information, and it did it on purpose. We did it on purpose, not to try to hide the numbers, but to say look, this is the first discussion. Reporter to score the revenue effects of a tax cut, the models need the actual numbers, which were not provided by the trump administration. They need to know how the cuts are paid for to gauge the deficit impacts. Tax cuts could spark massive growth, says the trump administration. But others say the effects will be modest at best and will create huge deficits. This has been enormously studied on economists on both sides of the aisle. We have lots of experience with broad based tax cuts. The bush tax cuts at the beginning of the last decade, the reagan tax cuts in the 1980s. And you can argue about whether on balance they were good things or whether they were bad things. But there is no, no serious reading of the evidence that suggests that they came close to paying for themselves by stimulating economic growth. Reporter the administration essentially acknowledges this. They say it will bump growth to 3 . But that wont be enough. This will pay for itself with growth, deductions, and closing loopholes. Reporter the treasury secretary says hundreds of people in his department have been scoring the plan. But the administration has chosen for the moment not to release any of that work, which would help the public and investors score the tax plan for themselves. For nightly
Business Report
, im steve liesman. According to the northwestern mutuals 2017 planning and progress report, americans are besieged by debt. Four in ten americans say they spend nearly half of their monthly income paying down debt. While more than one in ten say their debt exceeds 100,000. Chris christopher is director of consumer economics at ais market. And he joins us now to discuss why
Consumer Debt
is where it is and why it is rising. This study, chris, excludes, as i understand it, most forms of mortgage debt. Had a were talking about here is student, consumer, auto, and other. Yes. And not all type of debt is the same. Thats the key question. I mean, student debt is a lot different than you see on
Credit Card Debt
. Its more focused on a particular age cohort. Its an interesting study. However, you have to look at each piece of it very carefully. And
Student Loan Debt
tends to be at a lower
Interest Rate
certainly than
Credit Card Debt
. How worried are you, if at all, about the amount of
Credit Card Debt
that americans are carrying . The level of
Credit Card Debt
has been sort of it did fall during the great recession, and it is creeping up. However, when you look at the employment numbers, consumer confidence, wage growth, it is sort of on pace with that. However,
Student Loan Debt
and student loan defaults, that is a worrisome issue. And thats very focused on a certain age cohort. And they are sort of bearing the burden of that. I would also guess that auto loan debt, which has now gotten out to its not just a threeyear loan anymore, sometimes its a five, six, sevenyear loan to keep the
Monthly Payments
down, that can be a burden as well. Whats the best advice you would give someone who is struggling with these kinds of debts . Well, i would tell everyone to sort of live modestly, make sure you go to school, of course, you know, be a good student, and of course dont overspend. Try to live within your means or if youre buying that automobile, by an automobile thats sort of you know you can sort of afford, and dont be tricked by stretching out the payments, therefore under the false illusion that you dont have to sort of its not that expensive. Very quickly, we have about 30 seconds left, chris, the auto loans that are being made are being made, as i understand it, to riskier borrowers. Is that a danger on a systemic level, kind of like what we saw with the housing crisis, where you had subprime mortgages . Are we seeing an increase in subprime debt in the auto sector . What were sort of seeing, this is data from the new york fed, is that auto loan debt has surpassed a trillion dollars overall. It is increasing. And the defaults are increasing. In addition, the
Credit Scores
of those who are getting these new loans, the originations have been lower and lower. So that is one concern. However, its not like a housing bubble of any sort. You dont buy a car and then try to flip it and all that kind of stuff. It is used for a purpose. But it is a concern, were watching it very carefully. Chris, thank you very much. Chris christopher with ihs market. Under armour tops earnings estimates. Thats where we begin tonights market focus. The athletic footwear maker posted a loss but the street was expecting worse. The company also said its confident it will meet full year financial targets. Shares popped nearly 10 to 21. 67. Fords profit fell as the automaker said earnings were hampered by recall costs and investment in future products. Still, the results were better than expected. Revenue rose thanks in part to an increase in average transaction prices in the u. S. Nonetheless, shares fell 1 to 11. 47. Upss better than expected results were helped in part by a rise in ecommerce delivers. The company said all segments contributed to a solid quarter. Overall for the quarter across the enterprise, we are were pretty happy with where were at right now. In the international business, we saw exports grow at the highest weve seen since the recession, at over 14 . And then on the supply chain and freight business we saw profits up 22 . In the u. S. Business, revenues were up about 5 . Ups shares rose 1 to 10 8 shipping volumes are expected to rise in the low
Single Digits
this year. Union pacific shares up 3 to 113. 53. Starbucks said global same store sales grew. But it wasnt at the clip analysts expected. The coffee chain said its confident future sales will be driven by a number of new products in the pipeline. The company disappointed the street with its latest quarterly revenue while its earnings were in line with estimates. Shares initially fell. After hours they ended the regular session down a fraction at 61. 30. Coming up, not coming to america. Why fewer people are booking flights to the u. S. American airlines wants to increase pay for its pilots and flight attendants. The airline said the employees would receive on average 5 to 8 increases in hourly pay. The adjustment matches rival carriers and it comes midcontract. The company also reported solid results and delivery of widebody jets. The pay increase, which could cost the company 1 billion over three years, worried some investors and it pushed the stock lower in trading today. United airlines has reached a settlement with the passenger dragged off his flight a couple of weeks ago. The sum, not surprisingly, not disclosed. Take your own guess there. The passenger, dr. David dow, was hospitalized after he was forcibly removed from the plane to make room fortr transiting cw members. The airline continues to grapple from the fallout of the incident. Phil lebeau has more. Reporter with the video of the doctor being dragged off a
United Airlines
plane still swirling on social media,
United Airlines
is hoping new policies and more apologies will help mend the companys battered image. For starters, its changing how it treats overbooked flights. Passengers will now be offered up to 10,000 to voluntary give up their seat. Once a passenger is on the plane, they cannot be bumped. While united says it will reduce the amount of overbooking,
Ceo Oscar Munoz
says the practice will continue because it helps the bottom line. The reason we do it is to fill up the plane. Plain and simple. If we didnt fill up the plane, the economists in the world all talk about the fact that prices might indeed rise. Reporter munoz admits united has not calculated how much this controversy has cost the airline, but delta has already increased how much it will offer passengers to give up their seats. Southwest
Business Report<\/a>, with
Tayyip Erdogan<\/a>
Tyler Mathisen<\/a> and sue herera. The techadopted nasdaq pushes further into negative territory. United settles with a man dragged off its plane and takes more steps to try and improve its battered image. Drowning in debt. Americans owe a lot of money and the amount is growing fast. How much is too much . Those stories and more on nightly
Business Report<\/a> for thursday, april good evening, everyone, and welcome. The nasdaq closes at a record. And the way things shaped up late today, that indexs hot streak my only get hotter. Lets start with amazon, reporting strong quarterly results, blowing earnings estimates right out of the water. The
Company Reported<\/a> a sharp rise if profit even as it spent a lot expanding operations overseas. It earned 1. 48 a share, 36 cents better than what wall street was looking for. Revenue climbed from a year ago and also topped expectations. Investors liked what they saw, sending shares to a record in after hours trading. Deirdre bosa has the results. Reporter 1,000 is the next big number for amazon, pushing its shares within striking distance of that milestone. The company is pushing into a dizzying new array of businesses and regions and investing huge to do so. This quarter alone, it spent in india, boosted its logistics business, and introduced new features and eyes for its hit echo device. Its making money thanks to continued growth in retail and its profitable cloud business. Deirdre bosa in san francisco. Alphabet, the
Parent Company<\/a> of google, is competing with facebook to grab a larger share. Its
Youtube Business<\/a> is also strong, despite some brands recently pulling some ad money because of placement next to controversial videos. Alphabets results topped earnings and revenue expectations. Look at the chart there, it saw shares rise in initial afterhours trading. Josh lipton now with more on the companys big quarter. Reporter 21. 4 billion. That was one big number in alphabets latest earnings report. Again, this is how this company does make money. Some investors had expressed concern heading into this report. Remember, in late march, some big brands had suspended campaigns on youtube after ads were running alongside offensive content. Google responded, implemented some new controls and policies to safeguard those advertisers. In a quick chat with a
Senior Executive<\/a> at alphabet, they said from a revenue perspective, the impact from that controversy would, in their word, be modest, and that long term they would continue to benefit in the secular shift in how consumers are consuming content. Investors looked pleased with the result. For nightly
Business Report<\/a>, josh lipton, san francisco. While investors liked the results from newer tech companies, they were disappointed by old tech. Microsofts earnings topped expectations. Its revenue, though, slightly missed due to week growth in its personal computing business, its largest by revenue. There was increased demand for the companys cloud business. Shareholders expressed their disappointment, sending shares lower in afterhours trading. Julia boorstin has more on microsofts results. Reporter microsofts
Cloud Services<\/a> driving good results. From large multinationals to small businesses, organizations are using microsofts
Cloud Platforms<\/a> to power their digital transformation. Microsofts azure cloud product saw 93 growth in the quarter, while its productivity businesses saw a 22 increase. Back over to you. Julia boorstining, the there. Intel reported lower than expected revenue. Its data center business, crucial to intels transition from pcs to internetconnected devis devices, didnt do as well as hoped. The ceo says he feels good about the quarter. The data center performed in line with our expectations for the full year. Were looking at 8 growth for the year. 6 is what we expected in the
First Quarter<\/a> and we feel like were wellpositioned. He may have been satisfied, but investors were not. They were disappointed, pressuring the stock in initially late day trading. Lots to talk about. Lets turn to dan morgan with more on how big tech names and the results might
Impact Todays<\/a> recordsetting nasdaq. Hes manager at sinova trust. Nice to have you, dan, welcome. Thanks, sue. The nasdaq sets a record high. There are those who say the nasdaq is looking a little frothy. Others say it can power higher. How do you feel . We look at the nasdaq compost, it trades about 33 times earnings. S p is 21 times earnings. But if you look at expected growth, sue, going into this year, nasdaq is like 53 compared to the s p 500 at about 11 . So i think that the multiple commensurates the expectations in terms of earnings growth. The other point is, you have to remember only a thousand points above where we were in march of 2000 when the nasdaq hit 5,000. Were not that much higher than we were 16, 17 years ago. Whats driving the nasdaq . Is it the names like the ones that reported today, the alphabet and amazon . Or is it ones that fly a little bit below the radar screen . One area that, you know, wasnt on the platform today was the semiconductors. They have done extremely well, an area thats been doing well within technology, within the nasdaq. Apple reports next week with their expectations on iphone 8 or getting ready for that. Those are other reasons that have been pushing the nasdaq. Its been other names, tyler, than just the names were talking about today, which is obviously amazon and google with huge numbers. You mention in the notes im looking at here that the
Commerce Department<\/a> is going to report the gdp number tomorrow, and that weve seen
Business Investment<\/a> in software and business spending in
Software Drop<\/a> off a little bit. Do you anticipate that that will continue . And how worrisome is that for you . Its somewhat worrisome, sue. Last quarter, it was down 4. 8 . If we got another bad number tomorrow on, you know,
Business Investment<\/a> in software spending, that would give us some concerns that going forward, growth in
Technology Spending<\/a> may be slowing, and thats something we have to be worried about within the nasdaq composite. Whats your favorite tech stock . Amazon, just because of aws, amazon web services, up 42 . Thats pretty good. Thats a gem there with amazon, its done really well. Thats one of my
Top Technology<\/a> stocks right now. All right, dan, well leave it there. Thank you so much for joining us, dan morgan. The tech center lifted the broader market, offsetting a decline in
Energy Shares<\/a> as investors shifted focus from washington back to the health of corporate america. The
Dow Jones Industrials<\/a> up 6 points to 20,981. Nasdaq up 23 to the record, as we recorded earlier. The s p 500 was up 1 1 3. Were at the
Halfway Point<\/a> of the earnings season and some trends are emerging. Bob pisani has a look. Reporter so far the market likes had an what it sees. Stocks have rallied because of longawaited tax cuts now in play. Earnings guidance that has generally been better than traders anticipated. Now, full year guidance has been strong, particularly in the industrial space. So the largest names like caterpillar and 3m and honeywell,
Stanley Black<\/a> decker, have not only beaten the guidance but also raised full year estimates. Ge and
United Technologies<\/a> both reaffirmed their full year outlook. Thats a huge relief to the markets, because traders have been concerned because stocks have expensive by historic standards. Analysts have been modelling notable increases in earnings for the rest of the year based on not trump tax cuts but on an improving global economy. First quarter profits are expected to jump 12 , the best gain in six years. They have similarly high hopes for the rest of the year. By the way, this is not just the
United States<\/a>. Earnings have also improved in europe. The stock 600, the european equivalent of the s p 500, saw earnings grow about 13 in the fourth quarter. That follows a year of declining earnings. Now
First Quarter<\/a> earnings are expected to rise 5. 5 in europe. That would be the strongest in five years for that quarter. Well see if this is enough to keep the stock market near record highs. Thats the key. For nightly
Business Report<\/a>, im bob pisani at the new york stock exchange. Still ahead, as americans continue to borrow money, how much debt is too much debt . The number of homes that were under contract dipped in march. According to the
National Association<\/a> of realtors, pending home sales fell 8 from a month earlier. The decline may be due to both the lack of inventory on the market and also the increase in home prices which have risen far faster in recent years than americans incomes. President trump says the north
American Free<\/a> trade agreement, nafta, will be renegotiated, not immediately terminated. The president decided against abrogating the trade deal after speaking to the leaders of both mexico and canada. He added that terminating the deal would be a shock to the system, but if a fair deal cannot be renegotiated, nafta will be terminated. One day after the white housing released its tax outline, investors want to know what impact if any it could potentially have on economic growth. Steve liesman did some digging. Reporter the president s tax cut plan immediately launched a vigorous debate among economists. What will it cost and how much growth will it generate . But the president s team threw a wrench in the argument. It didnt release enough information, and it did it on purpose. We did it on purpose, not to try to hide the numbers, but to say look, this is the first discussion. Reporter to score the revenue effects of a tax cut, the models need the actual numbers, which were not provided by the trump administration. They need to know how the cuts are paid for to gauge the deficit impacts. Tax cuts could spark massive growth, says the trump administration. But others say the effects will be modest at best and will create huge deficits. This has been enormously studied on economists on both sides of the aisle. We have lots of experience with broad based tax cuts. The bush tax cuts at the beginning of the last decade, the reagan tax cuts in the 1980s. And you can argue about whether on balance they were good things or whether they were bad things. But there is no, no serious reading of the evidence that suggests that they came close to paying for themselves by stimulating economic growth. Reporter the administration essentially acknowledges this. They say it will bump growth to 3 . But that wont be enough. This will pay for itself with growth, deductions, and closing loopholes. Reporter the treasury secretary says hundreds of people in his department have been scoring the plan. But the administration has chosen for the moment not to release any of that work, which would help the public and investors score the tax plan for themselves. For nightly
Business Report<\/a>, im steve liesman. According to the northwestern mutuals 2017 planning and progress report, americans are besieged by debt. Four in ten americans say they spend nearly half of their monthly income paying down debt. While more than one in ten say their debt exceeds 100,000. Chris christopher is director of consumer economics at ais market. And he joins us now to discuss why
Consumer Debt<\/a> is where it is and why it is rising. This study, chris, excludes, as i understand it, most forms of mortgage debt. Had a were talking about here is student, consumer, auto, and other. Yes. And not all type of debt is the same. Thats the key question. I mean, student debt is a lot different than you see on
Credit Card Debt<\/a>. Its more focused on a particular age cohort. Its an interesting study. However, you have to look at each piece of it very carefully. And
Student Loan Debt<\/a> tends to be at a lower
Interest Rate<\/a> certainly than
Credit Card Debt<\/a>. How worried are you, if at all, about the amount of
Credit Card Debt<\/a> that americans are carrying . The level of
Credit Card Debt<\/a> has been sort of it did fall during the great recession, and it is creeping up. However, when you look at the employment numbers, consumer confidence, wage growth, it is sort of on pace with that. However,
Student Loan Debt<\/a> and student loan defaults, that is a worrisome issue. And thats very focused on a certain age cohort. And they are sort of bearing the burden of that. I would also guess that auto loan debt, which has now gotten out to its not just a threeyear loan anymore, sometimes its a five, six, sevenyear loan to keep the
Monthly Payments<\/a> down, that can be a burden as well. Whats the best advice you would give someone who is struggling with these kinds of debts . Well, i would tell everyone to sort of live modestly, make sure you go to school, of course, you know, be a good student, and of course dont overspend. Try to live within your means or if youre buying that automobile, by an automobile thats sort of you know you can sort of afford, and dont be tricked by stretching out the payments, therefore under the false illusion that you dont have to sort of its not that expensive. Very quickly, we have about 30 seconds left, chris, the auto loans that are being made are being made, as i understand it, to riskier borrowers. Is that a danger on a systemic level, kind of like what we saw with the housing crisis, where you had subprime mortgages . Are we seeing an increase in subprime debt in the auto sector . What were sort of seeing, this is data from the new york fed, is that auto loan debt has surpassed a trillion dollars overall. It is increasing. And the defaults are increasing. In addition, the
Credit Scores<\/a> of those who are getting these new loans, the originations have been lower and lower. So that is one concern. However, its not like a housing bubble of any sort. You dont buy a car and then try to flip it and all that kind of stuff. It is used for a purpose. But it is a concern, were watching it very carefully. Chris, thank you very much. Chris christopher with ihs market. Under armour tops earnings estimates. Thats where we begin tonights market focus. The athletic footwear maker posted a loss but the street was expecting worse. The company also said its confident it will meet full year financial targets. Shares popped nearly 10 to 21. 67. Fords profit fell as the automaker said earnings were hampered by recall costs and investment in future products. Still, the results were better than expected. Revenue rose thanks in part to an increase in average transaction prices in the u. S. Nonetheless, shares fell 1 to 11. 47. Upss better than expected results were helped in part by a rise in ecommerce delivers. The company said all segments contributed to a solid quarter. Overall for the quarter across the enterprise, we are were pretty happy with where were at right now. In the international business, we saw exports grow at the highest weve seen since the recession, at over 14 . And then on the supply chain and freight business we saw profits up 22 . In the u. S. Business, revenues were up about 5 . Ups shares rose 1 to 10 8 shipping volumes are expected to rise in the low
Single Digits<\/a> this year. Union pacific shares up 3 to 113. 53. Starbucks said global same store sales grew. But it wasnt at the clip analysts expected. The coffee chain said its confident future sales will be driven by a number of new products in the pipeline. The company disappointed the street with its latest quarterly revenue while its earnings were in line with estimates. Shares initially fell. After hours they ended the regular session down a fraction at 61. 30. Coming up, not coming to america. Why fewer people are booking flights to the u. S. American airlines wants to increase pay for its pilots and flight attendants. The airline said the employees would receive on average 5 to 8 increases in hourly pay. The adjustment matches rival carriers and it comes midcontract. The company also reported solid results and delivery of widebody jets. The pay increase, which could cost the company 1 billion over three years, worried some investors and it pushed the stock lower in trading today. United airlines has reached a settlement with the passenger dragged off his flight a couple of weeks ago. The sum, not surprisingly, not disclosed. Take your own guess there. The passenger, dr. David dow, was hospitalized after he was forcibly removed from the plane to make room fortr transiting cw members. The airline continues to grapple from the fallout of the incident. Phil lebeau has more. Reporter with the video of the doctor being dragged off a
United Airlines<\/a> plane still swirling on social media,
United Airlines<\/a> is hoping new policies and more apologies will help mend the companys battered image. For starters, its changing how it treats overbooked flights. Passengers will now be offered up to 10,000 to voluntary give up their seat. Once a passenger is on the plane, they cannot be bumped. While united says it will reduce the amount of overbooking,
Ceo Oscar Munoz<\/a> says the practice will continue because it helps the bottom line. The reason we do it is to fill up the plane. Plain and simple. If we didnt fill up the plane, the economists in the world all talk about the fact that prices might indeed rise. Reporter munoz admits united has not calculated how much this controversy has cost the airline, but delta has already increased how much it will offer passengers to give up their seats. Southwest
Airlines Says<\/a> it will soon stop overbooking flights. Were seriously reconsidering that practice. And ive made the decision, the companys made the decision that well cease to overbook going forward. Reporter for united, the lesson is clear. America service must improve. Our shared purpose in our company is about connecting people and uniting the world. That came from a lot of input from a lot of our family here at united. Connecting people. Simple words. What they mean is connecting you to the things that are important to you, regardless of where youre sitting. Reporter united is implementing some of these changes immediately. Others, like more training for gate agents and flight crews, will start over the next couple of months. Phil lebeau, nightly
Business Report<\/a>, chicago. While united is dealing with issues here at home, the travel
Airline Industry<\/a> is also dealing with a dropoff of visitors to the u. S. According to
Software Company<\/a> adobe, people booking flights from overseas destinations to the u. S. Fell 6 in the
First Quarter<\/a>. Whats keeping them away . Hannah sampson is the associate editor at skift, nice to have you here. Good to be here, thanks. I noted that an additional 26 dropped their plans or changed their plans for coming to the
United States<\/a> the week that the travel restrictions were announced in february. So it seems as though they have had quite a chilling effect. There was a lot of disruption, especially around those few days, around the travel ban, because it was just so tumultuous, it was such an uncertain time. And the images of protests at airports and people being detained was really very chilling to travelers all over the world. Are people also worried about the strong dollar . I think that is a big underlying factor, and its been a problem for the u. S. For the last you know, more than a year theyve been dealing with the fact that its a little more expensive for
International Travel<\/a> others. So they had to work that much harder to get people to part with their vacation dollars. And now, with that kind of extra problem of having an unwelcoming message, its presenting some new challenges. There are a couple of states, you point out, that are trying to combat that a little bit, theyre putting out pr campaigns of a welcoming nature. Does that tend to have an impact or not . Well, well see. Its only been not that long since l. A. And new york city specifically started to roll out these messages that said, youre welcome to be here, we want you to be here. They show people speaking different languages. They kind of highlight the diversity of those destinations. And really drive home the point that diversity is welcome, at least in those cities, even if the u. S. All together isnt tending that message. Is the falloff in demand for u. S. Travel resulting in cancelled flights by big airlines . We have seen at least one international airline, emirates, pull back the number of flights that its flying to the u. S. And theyre tying that directly to trumps policies, both the travel ban and the crackdown on incabin personal electronics, you have to stow your laptop in checked luggage. And thats inconvenient. And both of those things are really contributing to a drop in demand. So that airline is taking the action they have to take. Right. Travel for business purposes, now that equipment issue certainly hit
Business Travel<\/a>ers very hard. But the survey also said that 37 of managers anticipate a drop in
Business Travel<\/a>, and 47 of europeans said they expect a reduction. Yes. So thats something that especially the
Business Travel<\/a> industry is really, really concerned about right now. They have europeans saying, were going to plan our meetings somewhere else, in other countries. So thats a big concern for them. Thank you, hannah. Hannah sampson with scift. Thats nightly
Business Report<\/a> tonight, im sue herera, thanks for joining us. Im
Tyler Mathisen<\/a>. Have a great evening. Well see you tomorrow, friday","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia800605.us.archive.org\/25\/items\/KQED_20170427_235900_Nightly_Business_Report\/KQED_20170427_235900_Nightly_Business_Report.thumbs\/KQED_20170427_235900_Nightly_Business_Report_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240628T12:35:10+00:00"}