Announcer this is nightly Business Report, with Tyler Mathisen and sue her slow start. The economy is limping along at its slowest pace of growth in three years. So why arent economists worried . At a crossroads. Exxonmobil and chevron report solid quarters. But not everything is turning around for big oil. At odds. Lawmakers avert a Government Shutdown, for now. But another budget battle may just be starting. Those stories and more tonight on nightly Business Report for friday, april 28th evening, everyone, and welcome. Getting the economy growing again faster is a goal of the Trump Administration and a desire of investors, and of course american workers. But today a new report shows its certainly not happening just yet. According to the commerce department, the economy stumbled in the First Quarter. Gross domestic product, which is basically the broadest measure of u. S. Output, grew at a paltry rate of. 7 , below what had been expected. An increase in confidence readings over the last few months didnt even translate into stronger Consumer Spending, which accounts for roughly 70 of economic activity. While the headlines are disappointing, upon closer inspection, the anemic reading may not be all that bad. Steve liesman did some digging. Reporter weak growth in the First Quarter gdp doesnt have economists worried that the economy is really weak. Instead, they see a bunch of oneoff factors, pushing down the growth rate to just 0. 7 . A big part of the weakness came from inventory adjustments. Forecasters think that bounces back as companies restock their shelves in the current quarter. Consumer spending was also slow, which contradicts bouyant confidence measures and fairly strong job growth. Another quirk, q1 growth has been unusually weak for years, which economists say is because of data crunching and not the actual economy. Actually our guess is that government might fix it, because some of the seasonality, you would think they would adjust for that. Reporter many forecasters believe the Third Quarter will clock in at 3 . When you average it out, its still around 2 . The bigger question is whether the economy can do better. I have to think this will give the administration, the congress more impetus to make some good policy to get that growth rate closer to 3 . Reporter but the effects of those changes to tax and spending policies are months, if not years, in the distance, if the advertised growth happens at all. For now, the best that can be hoped for was weak First Quarter growth was an anomaly, that the economy is bouncing back right now, as we speak. For nightly Business Report, im Steve Liesman in washington. While Economic Growth is sluggish, earnings are rebounding. Exxonmobil and chevron, the two latest examples. Exxon saw its earnings double, while chevron swung to a profit. Both were helped by cost cuts and a rise in the price of oil. That helped send shares of the dow components higher in trading today. But as bob pisani explains, there are still some headwinds for th. Reporter you could say Big Oil Earnings are at a crossroads right now. The markets are near historic highs and earnings are rebounding nicely. The one fly in the ointment is energy stocks, theyre down more than 10 this year, this while the s p is up 7 . Thats a huge disparate. It wasnt supposed to be this way. This was supposed to be the year of the big turnaround for big oil. So far that has not been the case. Crude oil is down 9 year to date. The Global Energy market is undergoing a massive transition, shifting the focus away from the middle east and towards the u. S. Its a huge help to consumers. And its a big headache for big oil. The result is the investor love affair with energy is waning. Oil stocks lose as a value play. Why buy oil stocks when oil is down and the rest of the market up . Exxonmobile beat earnings expectations, earning more than r of last year. To the first thats largely because oil prices improved from 30 a barrel average in the First Quarter last year to 50 in the First Quarter this year. Thats good news. The bad news is, the price of oil is trending down recently. And theyre producing less of it, at least exxon is. Its a magic combination of an improving economy plus opec production cuts, which was supposed to be driving oil to 60 and beyond. What messed it all up was shale production. Even if oil can you say, how can oil move up when you have an enormous open faucet thats north american shale . The hope is that Big Oil Prices will rise again fueled by opec cuts and less capital oil spending by the big oil companies. Well, well see. For nightly Business Report, bob pisani at the new york stock exchange. On wall street, stocks sagged as new data on the economy were not enough to lift the market today. Investors will keenly watch developments this weekend after reports that north korea unsuccessfully tested yet again a Ballistic Missile late this afternoon. On this last trading day of the month of april, the Dow Jones Industrial average was off 40 points to 20,940. Nasdaq lost one. S p 500 fell 4 1 2. For april, all the major intersections were higher with the biggest gain coming from the record setting nasdaq. The gains since President Trump took office are even bigger, as he gets ready to mark his 100th day in office in the white house. The major indexes are all up 5 or more. As weve been reporting, the market has rallied in recent months in large part because of expectations that the Trump Administration will push through pro growth policies. The three pillars of his economic agenda include tax reform for both individuals and corporations, infrastructure spending, and deregulating industry. But at the 100day mark, some on wall street say frustration is beginning to set in because these reforms havent happened as quickly as hoped. And that may be a reason why the rally has recently lost some momentum. Dominic chu has more. Reporter the stock market has generated some stellar returns since the election last november. But the trajectory of those gains has moderated over the last couple of months. The index gained 12 between the election day close and the record highs on march 1st. But since then, markets have been trading in a relatively narrow range and have pretty much gone nowhere. I think the market is waiting to see First Quarter earnings, and particularly to see that the growth is sustainable from the economy and also looking for any sectors in the industries in the economy that look as if they may be growing faster. Reporter Financial Markets are often referred to as discounting mechanisms. That is to say, they take all available current information and future expectations and it puts a price on it today. Many experts believe that the coming weeks will be all about whether Trumps Administration can tap the ability to make progress on things like tax and Health Care Reform and whatever else it takes to revive Economic Growth. Investors are going to be most keen on what kind of policy comes forward, particularly as relates to Corporate Tax reform. Getting back on track with regard to moving that legislation forward will i think be key to making a difference between what might be good returns for the equity markets and potentially great. Reporter stocks are entering the summer season, one which many say is a seasonally weak time of the year. There could be headwinds to return in the coming months. But theres a still optimism medium to long term. We expect trade to resume once we start to get more tangible evidence that that legislation will be converted to actual law. Reporter the market is looking for the next catalyst, whether its President Trump or corporate profits or geopolitical concerns. And whether that catalyst keeps the rally going higher or sends markets lower. For nightly Business Report, im dominic chu. Lets turn now to jimmy lee for more perspective on the market and what might lie ahead in the days and weeks to come. Hes ceo of the wealth consulting group. Mr. Lee, welcome, good to have you with us. Let me begin with the late news this afternoon that the North Koreans once again attempted to test a Ballistic Missile. It apparently failed or did not succeed in the ways that the regime might have liked. Are you worried that the biggest risk to momentum in the market may come from some outside geopolitical risk . Or Something Else . Its a big concern, tyler. And, you know, in the short term especially, if something happens between north korea and the u. S. , i think it causes a lot of panic and potential concern amongst investors, and definitely could cause a lot of volatility. Were watching it closely. Im south korean, so its something thats of particular interest to me, i have family members in south korea too. It is definitely a concern. I can understand that, certainly. Are you doing anything different with your clients money, either in anticipation of the things heating up in that part of the world . Or are you simply watching it closely . Watching it very closely. But sue, if we get some sort of a correction because of these geopolitical concerns, whether its north korea or maybe the election in france, i really think its a buying opportunity for investors in the long term. I think theres a lot of dry powder thats been weightaitinga correction. On the other hand, theres a risk of a severe bear market, which i dont think is going to happen. Lets talk about soggy economic numbers,. 7 growth in the First Quarter, and yet the stock market is moving up rather briskly. Whats the disconnect . Should we be worried about that . Is the First Quarter just an anomalous print on the gdp . I think it is, actually. Youve got to remember that analysts were predicting a 0. 9. So it wasnt that far off from the actual predictions. I think it will actually pick up. We have Consumer Spending peak in the Fourth Quarter last year. So a little bit of a setback in the First Quarter is not that bad, i think. But i think in the Second Quarter and possibly beyond, you know, a lot of this rise in the equity prices since the trump election has to do as much with an idea of a cap on taxes and no more regulation as it does with maybe how good the actual reforms might be. Very quickly in the time we have left, jimmy, what areas of the market do you think still have some room to run . Well, we always favor a globally diversified portfolio. Weve allocated into emerging markets. Technology sectors are good. When Interest Rates rise, we believe financials will rise with it. Jimmy lee joining us tonight from las vegas, thank you very much, from the wealth consulting group. Still ahead, lawmakers pass a funding bill to keep the government up and running. But the fight over spending may be only intensifying. United continentals Ceo Oscar Munoz will testify before a Congressional Panel next week. On tuesday, lawmakers will ask him about the forced removal of a passenger from a flight last month. The goal is to determine what can be done to improve flying for american travelers. Also in washington, President Trump signed an executive order aimed as expanding drilling in the arctic. The order starts to reverse some of former president Barack Obamas actions and directs the interior secretary to review locations for exploration that had been considered offlimits. This executive order starts the process of opening offshore areas to job creating energy exploration. It reverses the previous administrations arctic leasing ban. The order has the potential to order exploration in areas off virginia, north and south carolina, where drilling is currently blocked. On capitol hill, lawmakers voted to pass a short term spending bill that averts a Government Shutdown for at least another week. But the battle over the budget is far from over. Kayla tausche has our report. The ayes have it. The bill is passed. Reporter with that, the Senate Passed the funding needed to keep the government operating for a week. The challenge now, reaching a longer term deal that funds the government through september, when its fiscal year ends. Democrats have signaled there is more work to be done before theyll support that. I want to put my colleagues on notice and the American People on notice, mr. Speaker, that i will not vote for another one. Were willing to extend things for a little bit more time in hopes that the same kind of progress can continue to be made. But we still have a little bit of a ways to go. Reporter the president s budget calls for sharp increases in military spending and steep cuts to environmental and diplomatic programs. The white house offered two olive branches, withdrawing a request to fund a controversial wall along the border with mexico and continuing to make payments for now to insurance providers for offering plans to low Income Customers under the Affordable Care act. But its some smaller, extraneous provisions, emergency funds for puerto rico, for example, that have the two sides at odds. Its got to get done now. There will be some significant victories for the president. But there will also be a lot of bipartisan compromises. Thats the way appropriations works. Reporter house and Senate Staffers are set to work through the weekend to finalize the rules, which should be voted on by tuesday before the short term measure is set to run out on friday. For nightly Business Report, im kayla tausche, washington. Time inc. Takes down the for sale sign. Thats where we begin tonights market focus. After evaluating interest from potential buyers, time says it will stay an independent company and continue to pursue its strategic plan. The publisher of Sports Illustrated and fortune among other things made headlines after there were rumors that the company was seeking buyout offers. Shares plunged to 15. 20 today. Strong demand in the u. S. For pickup trucks and suvs helped General Motors top estimates. The company acknowledged currency headwinds impacted results in foreign markets. But overall, sales still rose more than expected. Gm shares rose as well fractionally to 34. 64. Vf corp. Reported a bigger than expected drop in revenue even as the Apparel Company saw sales strength in its International Business and outdoor and Action Sports division which carries the north face brand. The companys earnings were in line with estimates. Vf corp. Shares fell more than 5. 5 to 54. 63. And a rise in sales helped Royal Caribbean top earnings expectations. The cruise operator raised its outlook for the year and launched a 500 million Share Buyback program. The company said its business is doing well globally. The u. S. Market is doing well. The Canadian Market is doing well. The European Market is going nicely. Throughout asia, were seeing australia and all of asia going very well. There really is in fact i cant remember a time when so many markets all seemed to be lining up in a positive way. Well, shares popped, 6 to 106. 60. Colgate Beat Estimates and saw profits rise but the companys revenue didnt perform as well. The Consumer ProductsCompany Reported flat sales as weakness in north america hurt results. Colgates shares are off 1 . Goodyear faced higher material costs and weaker demand but still beat forecasts. A drop in tire shipments contributed to weaker than expected revenue. Shares still rose to 36. 23. And cloudera saw shares pop in their first day of trading on the new york stock exchange, a clear day for cloudera. Shares were priced at 15 a share. That was the high end of the anticipated range. Ceo tom riley said going public was the right move. With the proceeds from the ipo, that gives us greater flexibility to look long term and make sure we remain the Market Leader by having the right partnerships. Shares soared 20 on the day to 18. 10, good for them. Our market monitor joins us. Hes bargain hunting for names he says are overlooked. Last time he was on over a year ago, he recommended apple, which is up 49 . Bank of america is up 91 . Ford a little bit of a hit, down about 6 . Joining us now is chris cordero, chief Investment Officer at rege rege rege regent atlantic. These are some hidden values that people arent paying attention to. Tech stocks are taking a lot of the big names. But these are ones that i think will have some resiliency going forward. Totale, the big oil company. The big french oil company. I really like totale, theyre selling at a real bargain. The best thing i like about them, of all the major oil companies, they are the most environmentally friendly by far. I think in the long run, this is going to be put them in a much better position. Short run, a great bargain. Long run, they realize they might be in the buggy whip business and cars are coming out. Energy stocks have not recorded well this year, as bob pisani reported earlier. This is a long term play. Yes. And thats also looking at the environmental aspect of them as well. Its only a 91 gain in bank of america. What are you doing wrong here . Come on, man. Thanks for not harping on ford. Lets turn to comcast, of course the Parent Company of cnbc which produces this broadcast. You like it for a variety of reasons. I like it, and what i really like it for is for the pipes. Comcast delivers the broadband for over a quarter of the country. And so with that, thats where theyre going to make their money. Thats where theyre positioned. My kids dont watch tv, they look on their computer. They watch content on the computer. Except nightly Business Report. Maybe tonight. Finally, we finish up with oracle. Its kind of old guard tech, but you think theres some unusual things that this company is doing to execute. Exactly. This is one where i think its getting overlooked, because oracle really does have a very strong cloud presence, and theyre building it more and more. So you have that Backbone Infrastructure from oracle combined with what theyre doing on the cloud. I think this is one that the market is missing. I think if you look at the cloud, this is one of the best bets to do it. Who is getting it right . The economy growing at. 7 or the market growing 5, 6, 7 this year . The market looks out the windshield, the gdp number is looking in the rearview mirror. Looking out the windshield, whats going on is, we have disposable earnings going up 4 . We have Consumer Confidence hitting 16year highs. Thats going to translate into much better growth later on in the year. All right. On that note, chris, thank you so much for coming in tonight, we appreciate it. Great to be here. Chris cardero from regent atlantic. Coming up, a financial windfall for draftees. Heres a look at what to watch for next week. On tuesday, apple, the worlds most valuable publicly traded company, reports earnings. On wednesday, Federal Reserve policymakers make a decision on Interest Rates at its twoday meeting wraps up. On friday, the Monthly Employment report for april is released. Thats what to watch for next week. A littleknown fact about amazon, the company which has a 5 billion Share Repurchase program in place did not buy back any of its shares in the First Quarter. In fact, according to a filing with the sec, amazon hasnt bought back any stock since 2012 when it repurchased more than 5 million shares in an average price of roughly 180 apiece. The stock today closed around 925 a share, indicating that maybe the company hasnt needed to buy back its stock. Thats a record on the back of its earnings that we told you about last night. It is day two of the 2017 nfl draft. And the National Football league is making some dreams come true. For some young top athletes from around the country, giving the multimillion dollar deals to play football for the teams they love. But if youve never had this much money before, how do you manage your sudden windfall . Charles ray, a former Football Player himself and now managing director at woodfall development is here, nice to see you. Thanks for having me. It must be a little daunting and maybe even frightening for them when they get these multimillion dollar contracts in some cases. It is. You have to think about it, you worked all your life for this very moment, and now youre going to be thrust with tons of responsibility, not only on the football field but off the football field as well. It can be quite complicated. A lot of these guys, some of them arent even College Seniors getting drafted, theyre underclassmen as well, i suspect are very unprepared for the financial responsibilities theyll have. Do the teams, does the nfl give them any assistance to teach them how to manage money responsibly . Do they screen any of the agents or Financial Advisers who these guys might be approached by . Definitely. It started way back in the early 90s, when teams started to think about, are these guys actually prepared to handle this money had they leave . And so it kind of evolved over the course of the years. Now the clubs are taking more responsibility of educating their players when they come in. And the great thing about the evolution of this Financial Literacy program is that some teams are taking it even one step further and educating their families as well. I was going to say, thats a key component. In some cases, they will be supporting the entire family. What do you counsel them . Whats the best piece of advice that you give them when you talk to an athlete . When you first get into the league, its really about establishing yourself as a player. And so you dont need to be worrying about your finances. So really, what we tell them is, preserve your wealth. You dont need to get into anything fancy. And first of all, you dont understand, most of the players coming in dont understand intricacies of finance. We tell them, look, focus on football, put your money in a safe place. And once you make it, after year three, year four, youve become established, then you can start thinking about some sophisticated ways to invest your money. Is the biggest risk to these young guys that they spend it too quickly . Because lets be frank here, the average nfl career is what, four years . Short. Its between three and five years. And that is the concern. But you have to understand, think about it, is any College Graduate ready for the real world . True. Right. And were just adding a few zeroes to make things complicated. So i think its important for us to understand that and work with them as they grow and go through the process. Are they willing to let you do that . Do they take the advice . Most players do. And i think its because of the approach the nfl and National FootballLeague Players have. We want to engage them, continue actually tell them that this is for your life after football. We want to establish a Great Foundation so you dont have to worry about if they get hurt or cant play. Exactly. And you can take your time in finding that next career. Charles, thank you so much. Wva. Thats right. That does it for us on nightly Business Report. Im sue herera. Thanks for joining us. Im Tyler Mathisen. Thanks from me as well. Have a great weekend, everybody. Well see you monday