This is nightly Business Report with Tyler Mathisen and sue herera. Risk assessment. A rare event. The oracle speaks. The big mistake Warren Buffett said some investors like you may be making. Hot topic. Ab old drug gets a new price tag to treat a rare and debilitating condition. That and more tonight on nightly Business Report. Welcome. Gains were small today. Minuscule really. But they were good enough to lift the s p 500 and nasdaq composite to alltime closing highs. Investors seemingly concluded the market had dodged yet another risk. Namely, that france might elect a far right opponent of the European Union and the euro currency. The french for now voted for a moderate and the status quo. And that was enough to let investors globally focus not on european vote counts, but on the improving health of Europe Economy and stock market which has been climbing. We begin with two reports. Bob pisani takes a look at the markets. But first, Michelle Carusocabrera in paris. Reporter last night marked yet another major upset in global politics. Emmanuel macron started a new party one year ago, wiped out the socialists and republicans who dominated french politics since world war ii and then won decisively against Marine Le Pen to become the next president of france. The rest of the European Union breathed a sigh of relief. Thats because macron is very proeurope and very euro. While Marine Le Pen wanted france to return to the franc and reestablish frances borders. Business owners are are anxious to fulfill the promise to reduce market regulation. Sammy just won the annual best baguette in paris contest. How many baguettes did you sell yesterday . 2,000. Reporter he voted for macron. Can i taste it . He tells me frances 35hour work week is nonsense. He works that much in two days. Even though business is up sharply since winning the annual conte contest, hes afraid to hire more people, because if theres another turndown, its legally difficult to have layoffs. Frances unemployment is stuck near 10 . On the outskirts of paris, unemployment is 20 . And while unemployment is above average, voter turnout here on election today, below average. We have 14 turnout. Its two points down. Reporter the mayor says many of its constituents didnt like le pens antiimmigration positions. But they also didnt like macrons plan Economic Reforms because theyre too free market. That viewpoint not unique to this neighborhood. The French Ministry of interior said voter turnout across the country was the lowest in 40 years. Leaders across europe are cheering the outcome of the French Election because the antieu candidate was squashed. However, if you go back to the first round of the elections two weeks ago when there were 11 candidates, nearly 50 of french voters chose an antieu candidate. Suggesting that the European Union has a lot of work to do to get wider acceptance here in france, despite the outcome of yesterdays elections. For nightly Business Report, michelle ka krus oh cabrera, paris. We mentioned at the of the program, slight gains were all it took for the nasdaq and s p 500 to close at new his. The Dow Jones Industrial average rose five points, the nasdaq just two and the s p 500 was just a tick higher. The fear gauge known as the vix slid to its lowest level in nearly a quarter century. So we asked bob pisani to take a look whether risks to the market have really lessened. Here is his report. Is the stock market priced for perfection . It sure is. But the data points about as close to perfect as you could ask for. First with the French Election over, geopolitical risk is much lower. Earnings are above expectation for europe and the u. S. The u. S. Economy appears to be improving. With april strong jobs report, its looking likely the first quarters weak numbers of just an anomaly and the fed is looking pretty impressed. They call it transitory. The Federal Reserve is essentially out of the picture right now. Traders are expecting two rate hikes, and nothings happened recently thats changed that view. The Economic Data is good, but not too good. And finally, tax cuts are now in play. This is a pretty rare confluence of events. Its not surprising that World Markets at new highs with germany and the u. S. At historic highs. Is the u. S. Market expensive . Yes, it is, by historic standards, but not dramatically so. Why arent traders more excited about all the new highs . Partly because the highs have come on low volume and low volatility. Thats not surprising either. Prices are too high to make buyers enthusiastic. About you sellers are not enthusiastic either, because everyone believes that a modest drop in the market will only be met with more buying. So the bottom line, for the moment, the market is essentially saying, dont worry, be happy. For nightly Business Report, im bob pisani at the new york stock exchange. We talk more about the u. S. And Global Markets. An Investment Strategy analyst at wells fargo. Welcome. Good to have you with us. You heard bob pisani conclude his report by saying the vix seemed to be saying to investors, dont worry, be happy. Should we be worried about that . Well, you know, weve noticed that the vix has gone down, trended lower as markets have moved higher. You know, we believe that the u. S. Markets and Global Markets generally are reflecting positive economic environment and improvement in the earnings environment for not only u. S. , but International Companies as we. So peter, a longterm investor, do i still put cash to work here, given the run that the market has had, or are there other areas around the globe that you think maybe provide more return . After the run that weve had in the u. S. Markets this year, we think this is a Good Opportunity to take some cash off the table out of the u. S. , and put some of that money to work internationally where, for example . Would you be putting money into developed europe now that apparently some of the sort of existential risks to the European Union have lessened or would you be looking elsewhere . We like to invest internationally across any emerging market economies and on a regional basis. Within developed markets, we have an actual favorable view to the pacific region, japan, australia, hong kong, singapore. We believe that improving economic and earnings fundamentals there have warranted higher valuations. In terms of europe, weve also seen improving economic and earnings valuations, or fundamentals there as well. We believe that the markets have come too far, too fast over the past couple of weeks. And we encourage investors to wait at least a few weeks as investors work to consolidate. With esaw some of the consolidation in markets today. After a strong runup last week. Emerging markets favor emerging asia, which includes china and india. We dont like markets in latin america or emerging europe. Thanks very much, peter. We appreciate it. Thank you. Warren buffett said he never wants to be out of the stock market. And one stock the chairman and ceo of Berkshire Hathaway has mentioned is apple. Shares of apple reached a market cap of 800 billion in trading. Making the worlds most valuable publicly traded Company Worth even more. Becky quick interviewed mr. Buffett this morning following his companys annual meeting this weekend in omaha. Theres a lot Warren Buffett says he doesnt know. He doesnt know where it will close a year from now and where Interest Rates are headed. But theres one thing hes certain about, and that is that stocks are a better investment than bonds. I would say anybody that prefers bonds to stocks is making a big mistake. Ive been saying that year after year after yea now, i wont say that under all circumstances. But it is ridiculous, in my view, for somebody to buy 30year bond, and some countries 50year bonds and so on at these rates. In preference to buying stocks. Stocks will bounce around a lot more, and they can go down 50 , but a 30year bond can go down 50 , too, at these rates. Bonds are a terrible choice against stocks. He also spent a lot of time at the Shareholders Meeting talking about a subject he rarely touches on, and that is technology. He says that amazon is a great company, but he wouldnt buy the stock right now. He said he missed that one. However, apple is a different story. The shares when we bought them at least were much more reasonable in relation to current earnings. Apple didnt have to do a lot better in the future than they were at the current time. When you get into a google and amazon, youre paying for the future more. But they may well be justified. And apple, i wouldnt say is easy for me to understand than google now perhaps. Or amazon now. Certainly would have been five years ago. Its amazing where apples ended up with consumers. I mean, i can very easily determine the Competitive Position of apple now and whos trying to chase them and how easy it is to chase them. For nightly Business Report, im becky quick in omaha. Still ahead, Unusual Alliance as competition in the wireless sector heats up. Two companies are doing something completely different. Its official. Sinclair will pay about 4 billion for tribune media, and its 42 local stations. Beating out 21st century fox. The combined companies will create the Largest Single Group of television stations in the nation. The chairman of the fcc last month reinstated a rule that helped station owners get around current audience caps, and he has recently said he wants to loosen tv ownership rules. Shares of tribune rose, sinclairs fell. The bidding war for Straight Path communications is intensifying. The wireless spectrum holder received a buyout bid nearly double its offer from at t. The Company Behind the new bid has not been disclosed. The wall street journal reported last month that verizon was seeking to buy Straight Paths High Frequency airwaves licenses. At t has three days to respond. Straight path shares today soared nearly 33 . Over the past month, the stock is up 480 . Wow. Meantime, comcast and Charter Communications are joining forces to better compete in the wireless industry. Julia boorstin takes a look at the unusual and complex venture. Comcast and charter are partnering for one year to improve their position in the competitive wireless market. Ahead of comcast launching a Wireless Service this year and charter entering the market next year, both using verizons network in their cable footprint. This ewont buy other Wireless Companies or make related deals without consulting with each other firs the partnership aims to help them save on costs, and better compete with at t, tmobile and sprint. Theyll encourage customers to use wifi hot spots whenever possible. Weve seen the core cutting happening more rapidly than we saw it. But these Companies Want to have a relationship with consumers. And this is one way to do that. The more service they can offer in the bundle, the better they can make that bundle, obviously their customers attention is better from a consumer standpoint. This puts a hold on any big acquisition by either cable giant. Comcast shares were flat on the news, while charter shares traded down on speculation about potential telecom deals. Analysts say this could boost chances of a sprint and tmobile merger or even comcast and charter eventually merging. The regular l la tory hurdles ce high. They dont compete with each other. So its in the spirit of competition. I wouldnt rule out an acquisition of tmobile and sprint down the road. If theyre serious about competing in the wireless market, they ultimately have to have owner economics in wireless. The question then is what comes when the deal expires in a year. As mobile video and revenue from wireless subscriptions play a bigger role in the cable giants balance sheets. Julia boorstin in los angeles. We should point out, comcast is the Parent Company of cnbc which produces this program. Coach is buying kate spade. Thats where we begin the market focus. The handbag and accessories maker is acquiring the rival for 2. 5 billion. The in you deal highlights coachs ongoing efforts to attract a younger demographic with the company saying kate spade has a strong Awareness Among mel enyals. Coach shares rose, while kate spade popped to 18. 38. Newell brand had better than expected earnings. The maker of household products like elmers glue and sharpie markers said it was related to the sale of the to newell also lifted its Quarterly Dividend 21 to 23 cents a share. The shares jumped almost 12 , 51. 93. Tyson foods said fires at two facilities hurt its production causing the meat producer to report earnings that missed expectations. Revenue inched lower, but was still stronger than expected. Tyson also said floridas attorney general requested information from the company regarding possible anticompetitive behavior. As a result of all of that, the shares fell 6 to 59. 48. Elliott management disclosed more than 15 stake in the Software Maker gigamon. Elliott management called the shares undervalued and wants to speak with the companys board about maximizing shareholder value. Shares of gigamon took off on the news rising to 41. 20. Profit rose more than expected at marriott as the Worlds Largest hotel chain benefited from more people booking more rooms at higher rates. The company also posted revenue that topped street estimates. Shares initially rose in afterhours trading but they ended the session down a fraction at 96. 37. Meantime, hertz saw its loss widen in the latest quarter, sharply missing analyst expectations. Revenue lower than expected. The despite the disappointing results, the Car Rental Company said it is seeing progress in the turnaround efforts. Shares fell after hours and ended the regular day down at 14. 91. A drug to treat muscular distrophy faced backlash when the price tag was set at nearly 90,000. Today the medicine has a new owner, and a new list price. Meg turrell has the details. Christine is used to a fight. Her son was diagnosed at age 5 with du shen muscular distrophy, a condition that put him in a while chair just before he turned 14. One thing she didnt have to plan to fight for is an access to an older drug her son was using. Hes been taking it since 8 years old. It wasnt approved in the u. S. So she and a number of other families imported the drug from overseas. It cost about 1,200 a year out of pocket. It got a new price tag, 35,000 a year for a patient in the u. S. Weighing about 55 pounds. 35,000 per 25 kilograms, its pretty aggressive i would think. Ptc therapeutics said it represents sustainable pricing providing access to eligible patients in the united states, including continued investment in du schens. The drugs cost may be more than 35,000, if patients like her son weighing more than 25 kilograms. My son is probably on one of the highest doses, nearly 50 kilo grams a day. She estimates the cost at more than 100,000 a year. Shes concerned her old system of importing the drug is going away since it is now available in the u. S. Earlier this year a private drug Company Called Marathon Pharmaceuticals acquired rights to it and took it through the fda approval process. It set the price of 89,000 in the u. S. Generating an immediate outcry from the patient community. Thats when Ptc Therapeutics stepped in paying 140 million to marathon to acquire it. Ptc at that point came in, acquired the asset, and had sort of, for lack of a better word, resunk the approach to the drug. The new price tag is still drawing criticism. Its the drug business back in trouble again over pricing. They dont seem to learn their lesson. Insurers may pose barriers. Many will require patients to try a cheaper steroid first before theyll pay for this drug. Many patients argue it has a Better Safety profile. So this is a headache Christine Mcsherry says the community doesnt need. The worry is with the patients and families. We have to write the appeals and appeal to our payers to get the drug covered. In a changing environment for health care in the u. S. , they worry about paying for something else. For nightly Business Report, im meg turel. Shares of Ptc Therapeutics had a rough day. They fell nearly 12 . The price of prescription drugs is one hot topic in washington. And another in the u. S. s relationship with china. Despite tough talk over trade, some u. S. Officials are also actively seeking investment from the worlds second largest economy. Kay has our story. A month after a meeting between the u. S. And chinese president s, a select group of chinese investors crisscrossed the united states, looking for investing opportunities in the trump administ. In washington, the group discussed changing u. S. Policy toward china. Helen ye helped coordinate the trip with the American Chamber of commerce. This administration is very different from previous. They will say how, where best a place for them for investment, how they should work with u. S. Local regulators. In omaha, nebraska, the delegation visited Warren Buffetts annual gathering, met with executives in the railroad and Agricultural Industries and praised by the states governor pete rick et. We received our First Investment from a Chinese Company back in 2008. Its not only to open up markets in china, but look for the investors who want to invest in nebraska to be able to help create Job Opportunities here. Since the financial crisis, china has invested 140 billion into the u. S. Increasing more than fivefold to 50 billion last year. Much of it in real estate. Investors worry the president s tough talk on china no friendship is strengthened through economic abuse. Could change that, with trade a point of contention. China reported a trade surplus with the u. S. That widened in april. Kevin guan said his Family Business which makes compressor parts and has an office in kentucky is looking for clarity on the administrations trade policy which affects whether it will expand. We will wait for a while. If theres really a trade war. Were prepared for the materials price, if theres any changes dramatically in the future. Jeremy shia runs a yoga sportswear and equipment company. His goal is finding partners to build his brand. The first step . A dialogue. Political leaders have visions of the daytoday operations. We need foundations. We need a base of communications to Work Together to figure out the challenges together. Attendees say these conversations will be years in the making. But the white house hopes to repair its relationship with china in the shorter term, setting a late july deadline to resolve longstanding trade issues. For nightly Business Report, washington. Coming up, a look at where the dogs im kate rogers in baltimore. Tonight on nightly Business Report were going to tell you why nurses are said to have very solid job prospects in the years to come. As we reported last week, the Health Care Sector created more than 35,000 jobs last month. If you look back over the past few years, that number balloons to more than a million jobs. As kate rogers reports from baltimore, demand is especially strong for nurses. As a child, jasmine wanted to become an accountant. But a love of science took her down a different path, nursing. I found nursing as a great way of doing science, while also talking to people. Today shes advancing her degrees in Nurse Practitioner at the university of maryland, hoping to be placed in a rural hospital like the one where shes currently training on the Eastern Shore of the state. I really enjoy the patients there. A lot of patients havent sought care in a couple years because they dont know how important it is for their diet and nutrition to go see a doctor. Nursing students are said to have very solid job prospects in the years to come. The bureau of labor statistics says demand for registered nursing will grow by some 16 through 2024 adding half a million new jobs. Salaries within the industry can range widely depending on degree and location from 45,000 a year up to 150,000 annually. The university of maryland has nearly 1,900 students enrolled in nursing programs this year, up from 1,700 in 2010. The school is doing its best to get ahead of a projected nursing shortage in the state in the years to come. We feel a personal responsibility for making sure that maryland has enough registered nurses, and professional nurses in order to meet the care needs of the residents of maryland. But the shortage is an issue beyond maryland. Were beginning to see growing shortages in different states, and different geographic regions. Medical facilities in inner cities and rural areas are particularly struggling to attract and retain talent. Rural areas often have lower salaries. Thats also true with smaller facilities. We see a real distribution issue that is only getting worse. Madison health in macon, georgia, is the second largest hospital in the state and competing with nearby atlanta for hiring, which offers better salaries and vibrant social life. Were after a deficit of 150 nurses at this time. The aging population is also a major contributing factor. Individuals in our community are living longer and longer. With chronic diseases which requires us to need more nurses than we have had to historically. Many of our nurses are in the category of being baby boomers, and seeking retirement. The new generation of nurses like derona fully recognize the jobs challenges and rewards. At the end of the day when i go home, i might not have sat down and not eaten lunch, but i can look back on my day and say ive made a difference in someones life. Thats why you do it, right . Thats right. On that note, thats nightly Business Report for tonight. Im sue herera. Thanks for joining us. Im Tyler Mathisen. Thanks from me as well. Have a great evening. Well see you back here tomorrow
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