Announcer this is nightly Business Report with tyler math make no mistake, this is a repeal and a replace of obamacare. Make no mistake about it. An historic vote. The house passes a bill to replace the Affordable Care act. Who wins, who loses, and what happens next. Commodity crush. Oil prices plunge. Gold hits a sixweek low. Is this the weak link in the market rally . Second life. Why boeings soupedup super hornet is gaining renewed attention in washington. This is nightly Business Report for thursday, may 4th. Good evening, everyone, and welcome. The gop cheered, the democrats jeered, when the republicancontrolled house of representatives passed a new version of its health care bill, overhauling, some would say scrapping the Affordable Care act and fulfilling a Major Campaign promise of the gop and President Trump. The margin of victory was slim but it was enough and it caps weeks of negotiations following the failure of an earlier gop version. In a nutshell, the bill eliminates the mandate requiring individuals to Carry Health Insurance and some businesses to provide it. It creates agebased tax credits to help people pay for coverage. It lets states seek waivers for covering preexisting conditions and some benefits deemed essential under obamacare. It includes funding for those considered high risk and it overhauls medicaids funding formula. House Speaker Paul Ryan applauded the chambers vote but says it is not a done deal yet. The legislation now makes its way to the senate where it may and probably will undergo substantial changes. We still have a lot of work to do to get this signed into law. And i know that our friends over in the senate are eager to get to work. [ laughter ] they are. Were going to see that work through. You know why were going to see this work through . Because the issues are just too important. The stakes are just too high. Despite the house passage of that bill, a number of questions remain about subsidies, preexisting conditions, and where the Insurance Companies stand. Bertha coombs decided to take a look. Reporter congressional leaders and the white house celebrated the passage of the American Health care act, saying by repealing Affordable Care act regulations, they will be able to bring down premium costs for americans. People are suffering so badly with the ravages of obamacare. And i will say this, that as far as im concerned, your premiums, theyre going to start to come down. Reporter one of the ways the house bill does that, letting states opt out of aca insurance benefit requirements to allow the sale of less costly plans. For insurers, that adds new complexity. At this point theres so much uncertainty, were still talking about state waivers. Its not clear what the states are going to do as a consequence of that. Reporter the bill also gives states the option of taking those with preexisting conditions, dropping coverage, and putting them in high risk pools, providing money through 2026. That funding could cover about 600,000 people a year. But in texas alone there are 200,000 with preexisting conditions that would qualify. The former chief of healthcare. Gov says it wouldnt be enough. There is risk sharing that exists right now in the aca. 15 billion of that is dedicated to it. We dont know how big the number of states are. If theres two states, theres more than enough money. If theres 15 states, theres nowhere close to enough money. Reporter the new bill would replace that with 2,000 to 4,000 a year based on your age. It doesnt address 12 billion in obamacare subsidies. Thats key to whether insurers will offer coverage in 2018. If that gets cut off, a large percentage of them might leave the market. Reporter the Health Insurer trade group says the Industry Needs stability now. They say they will work with the senate to improve the bill, starting with enhancing the tax credits for those in areas with Higher Health costs. Bertha coombs, nightly Business Report, new york. On wall street, initial reaction to passage of the bill was mixed. Health insurance stocks moved mostly higher except for anthem which has some of the greatest exposure to the exchanges. Hospital stocks finished mixed but got a slight lift on news of anticipation that the gop would craft its own bill. Ceos meekins is here to talk about the potential winners and losers. President trump said this business is really complicated, and boy, is it ever. Ill ask you for some clarity here. Lets start with hospital stocks. If Something Like what was passed by the house today eventually becomes law, are they winners, losers, better off,ers with worse off . Theyre losers in the long term. The cuts to medicaid would negatively impact hospitals. Individuals having a 6, 8, 10,000 hospital bill, weve seen in states like ohio individuals are beginning to walk away from that debt and hospitals have had to eat that bad debt. Which is why names like hca, tenet, some others in the hospital space, are all going to be negatively impacted in the long term. In the near term, medicare conditio conditions. Hospitals c good over the next 18 months. But over the long term, really they really will be negatively impacted. And of course we dont know what the senate will do to this particular piece of legislation. Its assume it stays primarily the way it is now. Do you think some of the pharma names might benefit . Yeah, pharma got a massive tax cut as part of the house bill. 30 billion over ten years for the branded pharmaceutical industry. So names like pfizer and gilead and eli lily will benefit on their bottom line each year with hundreds of millions of dollars in tax cuts. Its a positive for them. Additionally, not a single provision was inserted to deal with drug pricing. Thats a big deal with a lot of americans having concern over rising drug costs. What about the medical device makers, the medicinetronics ame like . The medical device tax, 24 billion over ten years, is eliminated. At the same time, because hospitals oftentimes negotiate and make payments for medical devices, the downward pressure on hospitals could actually extend further downstream to the medical device and the health care i. T. Companies. What do you think the fate is of this bill . There were several times where we thought that perhaps they didnt have the votes. They finally did have the votes. Will we see a replay of this as it goes to the senate, do you think . I think were at halftime in the game. And the second half, as is the case in most playoff games youve seen, whether hockey or the nba, teams tend to play a little harder when it gets serious. So in the second half i think were going to continue to see these fights. I think the bill is going to be dead eight our nine times before it passes. But like a cat that has nine lives, this thing has the potential to get done. I think by Independence Day you could see the senate move on something. We neglected to ask you about the Insurance Companies, the big insurers that have been fleeing the obamacare exchanges. Whats going to happen to them . Quick. Sure. In the nongroup market, the names will get better, because the tax credits this bill benefits people under 40, hurts people aged 50 to 65. The medicaidexposed names could be negatively impacted if the 880 billion in medicaid cuts go through. Chris, thank you very much. Also on capitol hill, a house panel advanced a bill to overhaul wall street regulations. The House Financial Services committee voted along party lines to undue the group of laws known as dodd frank, which Lawmakers Said choked lending. Democrats say the laws protect american consumers. The drama in washington translated into relatively calm waters on wall street today. Energy stocks dropped which capped some of the gains as investors looked ahead to tomorrows Monthly Employment report. The Dow Jones Industrial average off six points at 20,951. The nasdaq rose two. And the s p 500 rose 1. 39. Thats about as flat as it gets, sue. Youre right on that. That drop in Energy Stocks was due to a plunge in the price of oil which fell to its lowest level since november, because of renewed concerns that opec may not take additional steps to reduce the supply glut. That pushed domestic crude down 5 . Other Commodity Prices have also come under pressure in recent weeks. Bob pisani takes a look. Reporter on the surface, it looks like an all clear for stocks to hit new highs. Earnings are improving and the Global Economic outlook is improving as well. But theres two big flies in the ointment, china and oil. China is slowing its spending on growth initiatives. Theyre also tightening monetary conditions and theres talk of regulatory scrutiny. And oil has dropped to a sixmonth low, good news for consumers but not for oil companies. You put these two together and you have a commodity rout. Oil down 10 , iron ore down 16 , nickels down 10 . Oil stocks as well as metal and Mining Companies are all down double digits this quarter. Not surprisingly, analyses have begun taking down earnings estimates for oil companies. Were starting to see oil stocks show up on the 60week low list. Schlumberger joins the list today. How big a problem is this for the overall market . For the moment, stocks remain favorable. Traders are betting that the chinese will back off from their recent slowdown as we get closer to october. Thats when the chinese leadership is scheduled to turn over. For nightly news, im bob pisani at the new york stock exchange. Ahead, the retail rack. Why its not just the shift to Online Shopping that is leading to a rise in brick and mortar bankruptcies. Late today, cbs saw its profits drop, although helped by higher subscription fees. The company has been focusing on streaming services as more and more advertisers follow viewers online. And the big concern for the industry broadly is the rise in cord cutting. Meaning a growing number of consumers who no longer want to pay for cable tv. And one way or another, Cable Television subscription fees work their way back to content providers, station owners, and Networks Like cbs. Julia boorstin has more. Reporter the pay tv business suffered its worst First Quarter ever, according to a new report. Even if you account for additions from smaller skinny bundles such as sling tv and directv, analysts say the pay tv business still lost half a million subscribers. Its not that these customers are leaving and going to virtual over the top players. Those guys were weak too. So the content category was also down by about a percent and a half. For any individual conned plate player, theyre doing worse. Reporter viacoms ceo acknowledged softness to subscriber numbers for the quarter, saying the fact that its most popular channels are not included in the popular skinny bundles is having an impact. And there are growing concerns that advertising gains may not be enough to offset ratings declines. Time warner reported a 2 drop in ad revenue. Viacom reported 1 drop in advertising for the quarter. At the millekin conference on wednesday, les moonves was bullish, saying cbs and its content are everywhere, from its own cbs all Access Service to skinny bundles and over the Top Streaming Services like hulus new bundle which launched this week. We think its the wave of the future. You have to be everywhere, no matter how you want to get your content, well be there for you. Reporter with disney reporting earnings on tuesday and fox on wednesday, well see if those media giants can reassure investors. For nightly Business Report, im Julia Boorstin in los angeles. The Media Industry isnt the only one going through a transformation. So is retail. 2017 is on track to be a record setting year for bankruptcy filings and store closings. But if consumers are by many measures spending, why are the retailers hurting so much . Courtney reagan explains. Reporter retail may be at a tipping point. More shopping is shifting online in general, and to amazon specifically, which is hurting store sales. Consumers are spending more on travel instead of clothing. And investing in their homes rather than adding to their closets. The shifts have been happening over time. But after the recession, mall landlords gave concessions like lower rent or better lease terms, hoping to prevent ghost malls. Several years later, as retailers weakened, equity firms stepped in, injecting cash to help prop them up. Those owners provided the financing, but the Interest Payment on the debt is due now, which is the ultimate reason many of these retailers are closing for good. In fact half of the retailers filing for bankruptcy this year are highly leveraged with debt from private equity, including payless, the limited, and west seal. Its no different than a consumer who maxes out his credit cards. Once youve maxed out your ability to borrow, your degrees of freedom if you should encounter any sort of a crisis are much fewer and more far between. Reporter the debt strategy works when sales are growing higher. But as sales fall, theres not enough cash to pay back whats now due. Making matters worse, as retailer sales begin to fall, some private equity firms want to make sure to get their money out. So they add even more debt, requiring the retailers to pay them special dividends. I think what youre looking at is really death by a thousand cuts. They just have less margin for error. So any time theres a little bit of a dip in the business, they it gets harder to pay their interest and gets harder to satisfy the rest of their obligations. Reporter and now theres less time to figure it out than in the past, because of major changes to bankruptcy laws in 2005. Retailers now only have 210 days max to decide which stores to close and how to restructure to emerge from bankruptcy. Prior to the law change, it wasnt uncommon for a retailer to need 18 months to emerge from bankruptcy with a healthier business. Higher leveraged retailers filing for bankruptcy now turns into liquidation and not reorganization much more frequently. For nightly Business Report, im courtney reagan. Anheuserbusch inbev brews up profits. The Worlds Largest brewer said better than expected earnings were largely helped by the integration of rival sab miller. Inbev said its sales of michelob ultrahelped offset declines for bud, the king of beers. Its starting to see increasing sales in brazil. Shares rose. Adidas reported higher earnings and revenue as the Apparel Company saw a pickup in its reebok brand. The company confirmed its guidance for the year. Ceo says hes happy with the latest results. Weve built a very strong pipeline over a set of years, with a very clear view of where were going to take the brands. America grew more than 30 . In china we grew 31 . In the two biggest sports markets in the world, were by far outagreeigrowing the market. Adidas shares rose fractionally. Kellogg posted a higher than expected profit, but they saw overall sales fall as weakness in the companys north american and european markets dropped. Lower sales in the u. S. And some foreign markets impacted cosmetic sales. The company says it sees sales growing in the low Single Digits this year. Shares plummeted 22 to 3. 62. Burger chain shake shack disappointed with its weaker than expected same store sales. The company cited softer foot traffic and cold weather during the quarter for that miss. Shares initially fell in afterhours trading and ended the regular session down more than 2 to 33. 12. You may have heard about the scam spreading through gmail yesterday. A legitimatelooking email that if you clicked on it, could steal your personal information. It had a lot of people worried. Andrea day now on what you need to know. Reporter call it a classic phishing scam. If you opened your email, it looked like a friend or someone you work with was trying to share a google doc. Our producer got two. Here they are. It was just a trick. Cyber criminals were trying to steal your information by fooling you into opening the document. If you did, you were asked to give permission for it to access your account. And from there, it went out to all of your contacts. Right now, its not clear what kind of information attackers wanted to grab. Google says only about. 1 of gmail users were compromised. And the bad guys were shut down within an hour. What does that mean for a company like google . The fact that google is so big, they were able to see and take action on it pretty quickly. Any time you offer services to the internet at large, there can be vulnerabilities. Thats usually involving tricking users to compromise themselves. Reporter and according to google, even if you fell for the attack, theres nothing you need to do right now. You can always check out any apps that are connected to your account by going to google security, checkup. Experts say its always a good idea to keep changing your passwo password. And dont click on anything unless youre 100 sure. For nightly Business Report, im andrea day. Coming up, a battle for the sky. Reporter im Morgan Brennan in st. Louis, missouri. This plane is part of boeings fighter jet family. Well talk about the future of the f18 program and the fight for defense dollars, coming up on nightly Business Report. Apple is investing in advanced manufacturing jobs. In an interview with cnbc, sea particular come told jim cramer the company is creating a 1 billion fund aimed at bringing those type of jobs to the u. S. A billion dollars of