Transcript: Nightly Business Report – June 14, 2019

ANNOUNCER:  This is NIGHTLY BUSINESS REPORT with Bill Griffeth and Sue  Herera.  


BILL GRIFFETH, NIGHTLY BUSINESS REPORT ANCHOR:  Dark cloud.  The  semiconductor sector has been trapped in the middle of a trade war and it  may take a while to undo that damage.  


Going shopping.  Americans opened their wallets last month, complicating  policy decisions for the Federal Reserve which meets in just a few days.  
Bring on the summer.  That`s what some homebuilders are saying after a  fairly lackluster spring.  


Those stories and much more tonight on NIGHTLY BUSINESS REPORT for this  Friday, June the 14th.  


And we do bid you a good evening, everybody, and welcome.  Sue is off  tonight.  


The market finished the week at an inflexion point of sorts today.   Investors did not appear too eager to buy or sell stocks ahead of next  week`s Federal Reserve meeting, but they were eager to sell shares of  semiconductors which have gotten themselves caught in the middle of the  trade war with China.  Add to that, the rising geopolitical tensions in the  Gulf of Oman which lifted oil prices for the second straight day.
And when all was said and done, the Dow was down just 17 points, we`re at  26,789.  The Nasdaq was down 40, that was the technology stocks there.  And  the S&P was down four.  And for the week, all of the major averages were up  only fractionally.  
Mike Santoli says the market seems to be teetering.  
(BEGIN VIDEOTAPE)


MIKE SANTOLI, NIGHTLY BUSINESS REPORT CORRESPONDENT:  Stocks finished an  indecisive week at something of a crossroads.  While the S&P 500 held the  gains from the 5 percent rebound from the start of June, trading volume  slowed and the indexes worked sideways as investors remained in suspense on  a couple of crucial policy issues.  The Federal Reserve meets next week as  the bond market has proved in to price in high chances of a rate cut by  July.  


The Fed has struck a tone of patience on rates, but the slowdown in global  growth and decline in the inflation rating has treasury yields near two- year lows, as the market essentially lobbies for easier policy to ward off  further economic deterioration, as trade frictions worsen.  


And on that trade front, world leaders meet at the end of June which could  be a forum for the U.S. and China to move towards some agreement which has  the chance to avert President Trump applying tariffs on $300 million on  Chinese imports.  


At this point, though, the market is unwilling to assume any particular  outcome.  It`s not yet known if the two countries` leaders would even meet  at this point.  It also feeds that indecision and anxiety.  
The U.S. economy continues to hold up OK.  The stock market likewise has  proved pretty resilient, thanks to steadier defensive sectors such as  utilities and consumer staples. 


The S&P 500 has recovered nearly all of the 20 percent fourth-quarter  collapse, now sits at some 2 percent from its record high.  At the S&P at  these levels is also merely about where it`s at in late January of 2018,  meaning it has effectively made no net progress for 17 months.  As a world  and policy flux keeps investors unsure of how much time and energy is left  in this decade-long economic expansion.
For NIGHTLY BUSINESS REPORT, I`m Mike Santoli at the New York Stock  Exchange.
(END VIDEOTAPE)


GRIFFETH:  And as we mentioned, semiconductor stocks weighed down the  overall market today and it all started with that week earnings report from  Broadcom (NASDAQ:BRCM) (NASDAQ:BRCM) that we told you about last night.  It  was a quarter that the company CEO called depressing.  And that sent the  stock down 5 percent today and it dragged the other chip stocks down with  it.


It was another reminder of the impact of the trade war with China, a  country that the industry relies a great deal on for business.
Josh Lipton has more.
(BEGIN VIDEOTAPE)


JOSH LIPTON, NIGHTLY BUSINESS REPORT CORRESPONDENT:  Chip investors got a  first look at what an extended trade war could mean for semiconductors and  it wasn`t pretty.  Broadcom (NASDAQ:BRCM) (NASDAQ:BRCM) CEO Hock Tan  bluntly laid out the challenges.


HOCK TAN, BROADCOM CEO:  With respect to semiconductors, it is clear that  the U.S.-China trade conflict including the Huawei export ban is creating  economic and political uncertainty and reducing visibility for global OEM  customers.  As a result, demand volatility has increased and our customers  actively reducing inventory levels to manage risk.


LIPTON:  Tan noted that the company had about $900 million in revenue from  Huawei last year.  And it isn`t just Broadcom (NASDAQ:BRCM) (NASDAQ:BRCM).   Micron CEO just said publicly that the Huawei ban has brought uncertainty  and some turbulence in his words to the semiconductor industry.  Semi sold  off now down hard from their highs in April.


These are issues that many chip companies could have to deal with in the  quarters ahead and calls into question whether there really will be that  second half snapback for these companies that many had predicted.
On the other hand, analysts say the recent pullback could also create  opportunities for investors, even Broadcom (NASDAQ:BRCM) (NASDAQ:BRCM)  despite the generally poorly received results showed pockets of strength.


CRAIG ELLIS, B. RILEY FBR:  One of the things we heard last night from  Broadcom (NASDAQ:BRCM) (NASDAQ:BRCM) Limited is strength exists in their  networking business, we had seen that before in Marvell.  Marvell has been  very active with M&A this year.  That`s name we really like at current  valuation levels to put capital to work.
LIPTON:  In fact, Ellis says many of these chip companies now look more  attractively valued, giving investors another reason he says to own some of  these stocks.
For NIGHTLY BUSINESS REPORT, I`m Josh Lipton, San Francisco.
(END VIDEOTAPE)


GRIFFETH:  Let`s turn now to Kim Forrest to talk about what`s happening  with the chip sector right now.  She`s chief investment officer at Bokeh  Capital Partners.
Kim, good to see again.  Welcome back.


KIM FORREST, BOKEH CAPITAL PARTNERS CIO:  Thank you.
GRIFFETH:  One Wall Street research firm said this week that this trade war  is doing long-term damage to the semiconductor industry.  You`re not so  sure about that, are you?


FORREST:  No, not really.  I think this is Wall Street being at the center  of the universe and the real manufacturing and the real world is probably  not where they are.  So let`s try to reconcile those two worlds.


GRIFFETH:  I mean, in other words, what you`re saying is once we get a deal  with China, you think that the orders come back for the semiconductors,  right?


FORREST:  Absolutely.  Semiconductors are the things by which we conduct  most of our lives.  It`s sad to say.  You know, it`s not just the phone.   There`s a whole lot more semiconductors that surround us day in and day  out, and it`s our estimation that that`s only going to continue in things  like autonomous cars and if not fully autonomous cars, certainly, there  will be systems that rely on semiconductors to make us safer and just make  our world work better.


So it`s just semiconductors are taking over the world and I think it`s a  little short-sighted to think otherwise.


GRIFFETH:  But one of the goals of the Trump administration is to bring  more assemblage back to the United States here.  Isn`t it possible we could  see some quotas put on that industry?  What would that do?


FORREST:  Well, I think that would really make electronics really expensive  in the short term.  The practical matter is, none of this global trade can  be unwound very easily or quickly or cheaply.  You have to build the  plants.  You have to train the people and you have to reroute your supply  chain.


And I think that the desire to bring a lot of that back on the shore will  never happen just because of the practical matter of how the world works  now.
GRIFFETH:  Right.


FORREST:  And it`s just cheaper and everyone`s kind of used to how things  work now.


A little on the edges, maybe, but you know practically moving back all of  that, the manufacturing that happens overseas is just probably not  practical.


GRIFFETH:  So does that mean you`re buying the Broadcoms and the other chip  stocks that have been hit so hard by this trade war?


FORREST:  Well, I like them and I like them more at this time of the year  then maybe two months ago, right?  So I think that they have come back and  I think investors should take a look at this, especially if they have a  long enough timeline which we think is a minimum of three to five years.


GRIFFETH:  Very good.  Kim Forrest with Bokeh Capital Partners, always good  to see you.  Thanks for joining us again.
FORREST:  Thank you.


GRIFFETH:  By the way, the Chinese economy is also feeling the effects of  the trade tensions.  New reports out this morning pointed to a softening in  some key areas of the world`s second largest economy.
Eunice Yoon has that story for us from Beijing.
(BEGIN VIDEOTAPE)


EUNICE YOON, NIGHTLY BUSINESS REPORT CORRESPONDENT:  Chinese property sales  dropped by their biggest amount since October 2017, and factory output hit  a 17-year low.  Fixed asset investment cooled.  Retail sales were the  bright spot, rising 8.6 percent compared to April 16-year low.  


Analysts say the better figure is due to higher inflation and government  incentives to boost consumption.  


The week readings are raising expectations that policymakers will unveil  more stimulus soon.  Chinese officials say the economy is facing increasing  external uncertainties.  I spoke with a former vice finance minister who  currently advises the government on trade and he said that China wants to  talk but that the U.S. needs to lift the tariff first.


ZHU GUANGYAO, FORMER CHIENSE VICE FINANCE MINISTER:  I announced target and  the Chinese purpose is very clear, the import tariffs must be removed.


YOON:  China still hasn`t confirmed that President Xi Jinping will meet  with President Trump in a bilateral at the G20 to work out what many people  believe would be the best-case scenario, a truce.
For NIGHTLY BUSINESS REPORT, I`m Eunice Yoon in Beijing.
(END VIDEOTAPE)


GRIFFETH:  Meanwhile, the economic news back here in the U.S. wasn`t all  bad.  Industrial production rose the most in six months in May.  According  to the Federal Reserve, the gain was helped by an increase in the  production of pickup trucks and cars, and output of consumer goods,  business equipment and non-industrial supplies that was also higher.
Retail sales were solid in May and April`s numbers were revised higher,  making it three straight months of gains.  Worries about the trade war and  concerns over the health of our economy apparently did not stop Americans  from spending.  And while that`s good news for the economy, it could  complicate things for the Fed.
Steve Liesman is on that story for us tonight.
(BEGIN VIDEOTAPE)


STEVE LIESMAN, NIGHTLY BUSINESS REPORT CORRESPONDENT:  Amid growing  concerns about a weakening U.S. economy, the American consumer said what  are you talking about?  Retail sales grow strong half a point in May and  the government revised April higher by another half a point.


Consumers showed up to spend for health and personal care items and at  sporting goods and general merchandise stores, and, of course, on the  Internet.  It was the kind of discretionary spending that suggests  consumers feel pretty comfortable at the outlook and what`s in their  pockets.  


Barclays wrote: Today`s report paints a picture of strong momentum and  consumer spending.  This is consistent with our outlook for the second  quarter when we expect consumer spending to hold the fort.
There`s still some slowing relative to last year`s tax cut and new spending  spree.  Economists estimate second quarter growth will come in around 2  percent, down from 3 percent last year.


But it`s about equal to estimates of potential growth for the U.S. economy  and better than the earlier estimates of just 1 percent or less.


CONSTANCE HUNTER, KMPG:  We still have some slowing consumption compared to  last year, but the consumer has been the backbone of this recovery in this  expansion and so, we expect that to be maintained.


LIESMAN:  This strengthened consumer spending actually complicates  policymaking for the Federal Reserve.  Does it cut interest rates as the  market seems to want because of concerns about slowing global growth,  slowing capital spending and the negative impacts of trade wars or does it  hold the line on rates, banking that better wages had low unemployment will  keep American consumer spending and ignoring the forecasts?  Let`s say they  won`t.  
For NIGHTLY BUSINESS REPORT, I`m Steve Liesman.
(END VIDEOTAPE)


GRIFFETH:  And there was still more economic news out today.  Consumer  sentiment fell in the early part of June.  The University of Michigan  report said that much of that decline was due to tariff concerns and  smaller gains in employment.  At the time that survey was conducted, there  was the possibility of tariffs being levied against Mexico.


One more report on the economy now.  There are some early signs that the  usually slow summer housing season could start to heat up.  And for some  home builders in some parts of the country, that would certainly be a  welcome development after a so-so spring.
Diana Olick has that story.
(BEGIN VIDEOTAPE)


DIANA OLICK, NIGHTLY BUSINESS REPORT CORRESPONDENT:  Spring is usually the  hottest season for the nation`s home builders, but that was not the case  this year.  


There are however signs of summer strength.  Mortgage applications to  purchase a newly built home jumped 20 percent annually in May, according to  the Mortgage Bankers Association.  That coincided with falling mortgage  rates throughout the month, rates continued to fall in June and are now at  the lowest level in two years.  These both signal strength ahead.
But all real estate is local and some areas will fare better than others.   John Burns Real Estate Consulting breaks out the public builders and which  are poised to do best this summer.  


KB Homes market conditions are best because they`re concentrated in the  Southwest, where the market is outperforming.  NVR (NYSE:NVR) (NYSE:NVR  (NYSE:NVR)) as well because it builds in the Northeast, which is bouncing  back from weak demand a year ago.  D.R. Horton`s concentration in Texas and  its focus on entry-level product also puts it in a good position for summer  demand.  Lennar`s biggest footprint is also in Texas and it`s heavy in  Florida and the Southeast.


On the other hand, TRI Pointe and William Lyons Homes are slowing permits  because about a third of their exposure is in southern California, where  demand is weak and cost to build are highest.
The problem for all home builders though continues to be high home prices.   Half of the public home builders have an average sale price above $400,000.   Until they can bring prices down, their recovery will continue in fits and  starts.
For NIGHTLY BUSINESS REPORT, I`m Diana Olick in Washington.
(END VIDEOTAPE)


GRIFFETH:  Time to take a look at some of today`s “Upgrades and  Downgrades”.
We begin with shares of United Technologies (NYSE:UTX) (NYSE:UTX).  They  were upgraded to buy from hold at Vertical Research.  The analyst says that  the stock has fallen too far too fast following the news of its proposed  merger with Raytheon (NYSE:RTN) (NYSE:RTN).  Price target now: $145.  That  stock rose a fraction to $125.30.


General Motors (NYSE:GM) (NYSE:GM) was downgraded to sell from hold at  CFRA.  The analysts cited to believe that the automaker is likely to lower  earnings guidance.  He also noted a downbeat outlook for auto sales overall  and on the company`s operating margins.  Price target now $32.  And that  stock fell 1 percent today to $35.66.
Still ahead, why Boeing (NYSE:BA) (NYSE:BA) has a lot at stake at the  upcoming Paris air show.
(MUSIC)


GRIFFETH:  Some major drug makers have filed a lawsuit to stop a new rule  that would require them to disclose prices in TV ads.  The suit was filed  by Amgen (NASDAQ:AMGN) (NASDAQ:AMGN), Merck (NYSE:MRK) (NYSE:MRK) and Eli  Lilly (NYSE:LLY) (NYSE:LLY).  This new regulation is scheduled to go into  effect next month.  It`s part of the government`s efforts to bring down  drug costs for U.S. consumers.


In the lawsuit, the drug company say that list prices do not accurately  reflect the final price paid by patients because it excludes rebates and  discounts.


Well, the world`s biggest air show kicks off in Paris this weekend.  But  this time around, it`s going to be a little different.  That`s because  Boeing (NYSE:BA) (NYSE:BA) and rival Airbus, the two biggest commercial  airplane makers in the world, they`re flying in two different directions.
Phil LeBeau has more.
(BEGIN VIDEOTAPE)


PHIL LEBEAU, NIGHTLY BUSINESS REPORT CORRESPONDENT:  Paris loves a good air  show but it`s not what`s up above that will turn heads this weekend.  It`s  what will be said on the ground.  


The big story, an expected drop in demand for new planes.  After soaring  higher the last two years, orders could fall to their lowest level since  2016, mainly because Boeing (NYSE:BA) (NYSE:BA) is unlikely to ring up  sales for its beleaguered 737 MAX.


RON EPSTEIN, BANK OF AMERICA ANALYST:  It`s hard to imagine that anybody is  going to be ordering 737s in an environment where their crest grounded.


LEBEAU:  Boeing (NYSE:BA) (NYSE:BA) CEO Dennis Muhlenberg will spend much  of the show meeting with customers, reassuring them Boeing (NYSE:BA)  (NYSE:BA) has a plan to get the MAX back in the air.
Meanwhile, Boeing`s rival Airbus is expected to launch a new airplane, the  latest in its family of narrow-body jets, but this one will have greater  range to connect smaller cities that are further apart.  The demand is  there.  In fact a record number of people are flying this year, which is  why Airbus and Boeing (NYSE:BA) (NYSE:BA) are ramping up production to  build planes as quickly as possible.


Airbus and Boeing (NYSE:BA) (NYSE:BA) have backlogs that are close to  record highs, which means airlines that order new planes this weekend will  likely not see them flying until well into the next decade.
Phil LeBeau, NIGHTLY BUSINESS REPORT, Chicago.
(END VIDEOTAPE)


GRIFFETH:  It turns out Chewy`s bite is as good as its bark, and that`s  where we begin tonight`s “Market Focus”.
The online pet product retailer owned by Pet Smart soared in its Wall  Street debut today.  The company price its IPO at $22 a share, that was  above the expected price range, and the company CEO hopes to prove that his  company is not like pets.com, which came to symbolize what was wrong with  the dot-com bubble of the `90s.
(BEGIN VIDEO CLIP):


SUMIT SINGH, CHEWY CEO:  The company was 20 years ago.  Look at the way the  e-commerce has built out the inputs are changing.  Look at our stickiness.   Look at the number of customers that were attracting, the fact that we`re  servicing greater than 95 percent of U.S. households in less than two days,  and the fact that customers keep coming back to us.
(END VIDEO CLIP)


GRIFFETH:  Well, Chewy shares were up more than 80 percent for a time today  but they settled up 60 percent at $34.99.  
Barnes and Noble (NYSE:NE) (NYSE:NE) said today it did not receive any  other offers from prospective buyers before hedge fund Elliott Management`s  imposed deadline.  Last week, Elliott offered about $475 million to take  that book seller private and it built in an end of business Thursday  deadline for Barnes and Noble (NYSE:NE) (NYSE:NE) to field other possible  bids.  With that deadline now past, and if the deal does not go through,  and then Elliott will receive a $17.5 million breakup fee from Barnes and  Noble (NYSE:NE) (NYSE:NE).  


And shares of that company fell more than 1-1/2 percent today to $6.74. 
Facebook (NASDAQ:FB) (NASDAQ:FB) reportedly has enlisted more than a dozen  companies, including Visa (NYSE:V) (NYSE:V), MasterCard (NYSE:MA)  (NYSE:MA), PayPal and Uber to back a new cryptocurrency.  “The Wall Street  Journal” says that each company is going to invest about $10 million in a  consortium that will govern the digital coin to be called Libra.  The  social media company plans to launch that digital currency sometime next  year, and Facebook (NASDAQ:FB) (NASDAQ:FB) shares were up more than 2  percent today to $181.33.


Abercrombie & Fitch (NYSE:ANF) (NYSE:ANF) has authorized a new repurchase  program for up to 5 million of its shares.  The new program allows the  retailer to buyback at its discretion while continuing to invest in growth  opportunities, and that brings its total buyback to more than 7.5 million  shares.  Abercrombie stock rose a fraction to $15.49 today.
And the Justice Department is reportedly close to approving T-Mobile`s $26  billion merger Sprint, but only if the companies sell multiple assets to  create a new wireless competitor.  “New York Times (NYSE:NYT) (NYSE:NYT)”  says a settlement could be reached in the next week or so.  But  complicating all this is the judge who is also scheduled to hear the  state`s lawsuit against the merger.  That`s going to happen next week as  well.


Sprint shares rose nearly 3 percent to $7.01, while T-Mobile shares were a  fraction at $74.90, fraction higher.


Time now for our weekly market monitor who has names of stocks that he says  will hold up in an escalating trade war.  Andy Kapyrin is back with us.   He`s director of research at Regent Atlantic.
Welcome back.  Good to see again.


ANDY KAPYRIN, REGENT ATLANTIC DIRECTOR OF RESEARCH:  Nice to see you.


GRIFFETH:  First on the list, Anthem, an insurance company.  Now, it`s been  a steady riser for a few years, but it`s been very volatile this year.  But  you think it holds up in the trade war.  Why? 


KAPYRIN:  Well, first, let`s get the 900-pound gorilla out of the way.   Health insurance in particular has been in the sights of the White House,  of politics generally.  
There`s a number of things that Anthem is doing that it`s that will help  but catch up to other peers within insurance, in particular the leader in  the space is United Healthcare out of Minnesota.  They run a pharmacy  benefit manager themselves.  Now, this is a way to get additional discounts  and rebates out of the pharmaceutical trade, which is a big and growing  cost for health insurers.


GRIFFETH:  Right.


KAPYRIN:  What Anthem is now able to do or will be able to do when they  built this out is match prices with some of their peers that will allow  them to compete better in commercial spaces.  It also allowed them to  continue to roll out more Medicare Advantage plans, which are incredibly  important in that industry. 


So, lots of potential growth.  Why is it in insulation from the trade war?   It`s because they only do business here in America.


GRIFFETH:  That`s a good point. 
Royal Dutch Shell is your second one.  Why that one in particular in that  industry?


KAPYRIN:  So super majors in the oil industry are a good bet when you don`t  know where the direction of oil is going to take you, or you just expect it  to be very volatile.  Take just two days ago, two tankers damaged in the  Persian Gulf.


GRIFFETH:  Right.


KAPYRIN:  They are less sensitive to those events both on the upside on in  on the downside and that`s a good thing.  Royal Dutch Shell in particular,  as a European super major, trades at a big discount to its American peers,  Exxon and Chevron (NYSE:CVX) (NYSE:CVX), in spite of having a solid  business.


GRIFFETH:  All right.  Finally, Google (NASDAQ:GOOG) (NASDAQ:GOOG).  Now,  there`s a company that`s in the crosshairs as well of the federal  government and the stock has suffered as a result here.  Why do you like  that one here?


KAPYRIN:  So, two reasons.  One is I think the regulatory angle is  overplayed.  It is, in fact, a monopoly.  It is, in fact, going to face  more regulation.  But I don`t think it faces a breakup because there isn`t  a cohesive group other than ad sales that can really be split off from the  business.  Think about all the other things that Google (NASDAQ:GOOG)  (NASDAQ:GOOG) does.  


Google (NASDAQ:GOOG) (NASDAQ:GOOG) Maps, for example, all that is designed  to steer eyeballs back to Google (NASDAQ:GOOG) (NASDAQ:GOOG) for  advertising.  There isn`t really a good way to split it up.  


As long as you look past that, you have a mature company, highly  profitable, that really has a lot of capacity to continue to grow, that  does so at high profit margins with almost no debt.  And does so with  almost no revenue from China, it was kicked out of China right almost ten  years ago.


GRIFFETH:  Right.  All right.  We will see what happens.  
Andy, always good to see you.  Thank you.


KAPYRIN:  Thank you, sir.


GRIFFETH:  Andy Kapyrin with Regent Atlantic.
And if you want to read more about his picks, you can head to our website  at NBR.com.


And coming up, Main Street feels the pinch of escalating trade tensions.
(MUSIC)


GRIFFETH:  We have some new findings on how Americans view China.   According to the latest CNBC All-America Survey, more than half of those  surveyed do not care if products are made in China and most Americans don`t  view the country as an economic threat.  Of the 800 people polled, just 32  percent said, yes, China is an economic threat, compared to 49 percent who  said, yes, back in 2007.


And when asked if made in China level matters, 34 percent said they are  less likely to buy a product with that label, down from 52 percent when the  question was last asked more than a decade ago.


And the trade war with China is turning into a big problem for some small  business owners.  Kate Rogers (NYSE:ROG) (NYSE:ROG) talked to one who`s  trying to navigate the growing tensions.
(BEGIN VIDEOTAPE)


KATE ROGERS, NIGHTLY BUSINESS REPORT CORRESPONDENT:  Sandra Payne says she  held out for as long as possible before raising prices.  
But the president of Denver Concrete Vibrator which makes equipment for  infrastructure projects had no choice.  A modest price hike became  necessary when tariffs hit her vendors who import items, including steel,  making prices volatile and increasing costs.


SANDRA PAYNE, SMALL BUSINESS OWNER:  We waited a long time to increase  prices.  We finally did, had a small increase recently but that still won`t  cover what we expect in the coming months or years.


ROGERS:  Payne says she hasn`t had to cut any of her staff and hope she  never has to, but she acknowledges margins will be squeezed in this  uncertain environment.


The National Federation of Independent Business says more than one-third of  small business owners have reported somewhat or significant negative  impacts as a result of recent trade policy changes with Mexico, Canada or  China.  A coalition of more than 600 companies sent a letter to President  Trump Thursday, urging him to resolve the ongoing trade dispute, arguing  tariffs are hurting businesses and consumers alike.  


Payne says she`s bracing for more price instability.  A recent notice from  one of her vendors said prices and availability of certain metals are  subject to change daily, making planning a challenge.


PAYNE:  In many cases, it`s increased by 10 or 12 percent.  We`ve been  warned though by some of our vendors that it will be seeing 20 or 25  percent increases with our next orders.


ROGERS:  For Payne, the message is clear.  Tariffs are doing more harm than  good for her small business.


PAYNE:  You know, every — for years, I`ve been hearing that manufacturing  is lost in America and yet, there are thousands of manufacturing companies  just like this one out there in the country trying to make things for  domestic and for import or export.  So, I think it`s going to hurt us very  badly.


ROGERS:  While the trade war continues on, an anxious Main Street will be  watching.
For NIGHTLY BUSINESS REPORT, I`m Kate Rogers (NYSE:ROG) (NYSE:ROG).
(END VIDEOTAPE)


GRIFFETH:  And before we go, one final look at the day on Wall Street.  Not  much of a movement for the Dow, down just 17 points.  Semiconductors took  technology down, that`s why the Nasdaq was down 40, the S&P was down four.   For the week, all major averages were just fractionally higher.
That is NIGHTLY BUSINESS REPORT for tonight.  I`m Bill Griffeth.  Thanks  for watching.  Have a great weekend.  Happy Father`s Day.  See you Monday.


END
Nightly Business Report transcripts and video are available on-line post  broadcast at http://nbr.com. The program is transcribed by ASC Services II  Media, LLC. Updates may be posted at a later date. The views of our guests  and commentators are their own and do not necessarily represent the views  of Nightly Business Report, or CNBC, Inc. Information presented on Nightly  Business Report is not and should not be considered as investment advice.  (c) 2019 CNBC, Inc.


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