. this is nightly business report with tyler mathisen and sue herera. surprise rise. stocks took off despite rising tensions overseas. but how long will the buying mood last? unexpected rejection. eli lilly s arthritis medicine was supposed to be a blockbuster, but the fda said not so fast. mountain of debt. americans owe a lot of money. $1 trillion on their credit cards to be exact. and that is raising some concern. those stories, and tomorrow, tonight on nightly business report for monday, april 17th. welcome. i m sue herera. tyler mathisen is off tonight. given the increase in geopolitical tensions and soft economic data, not many thoughts the dow would rise by triple digits, but it did, and the bulls remained in control until the closing bell. the dow jones industrial average gained 183 points to 20,636, snapping a three-day losing streak. the nasdaq added 51, and the s&p 500 was up 20. given all the negative factors swirling around, why were investors in
open on the first trading day of the new month. president-elect donald trump making the rounds in his first public event since the election including a victory lap in indianapolis where carrier will keep roughly 1,000 jobs in the u.s. both wti and brent crossing the $50 line one day after that opec meeting. but first up, it was a november to remember from a presidential election to record highs for stocks, the dow leading the three major indices with a 5.4% gain, the russell beat them all though up 11% for its best monthly performance in five years. we ve talked many times about why that was, jim, and whether that continues. well, look, i think that people are just saying that one of the reasons why those companies haven t done well is there s too much regulation. they ve actually bought that. whether you think it s true or not, they have bought that notion that regulation is actually going to be stripped and these companies are going to make more. now, i think that we
apple, with many of the big suppliers seeing nice gains following reports of the iphone 7 production orders. the run out to a major release of the iphone model has been a great time to buy. take a look at apple during the 5 and 6 releases. huge gains into both. the market signaling that now is the perfect time to buy apple as we await the release of the iphone 7 in september. i think it is. we usually talk about apple, it s the negative news. negative, negative, negative. the reason the stock is going down. finally now i think you have absolute reason for optimism. now you have something to trade against. now you know what your down side is in terms of risk reward. now back up to the 110, 112. you ve got great news on the supply chain, which we haven t seen in quite some time. talking about the opportunities there. pete talked about it for a long term. i think apple s interesting. i think this universal display is even more interesting. the symbol is oled. they came off a q
said this in the past, i think for the fed to gradually and cautiously increase our overnight interest rate over time. and probably in the coming months such a move would be appropriate. that, of course, is fed chair janet yellen speaking today. sounds like a rate hike is coming. if that s the case, what do you do with your portfolio now? it s almost a little disappointing, that the fed just decided this is the time. and data dependency-wise, i ve fallen on the more constructive side of it. but i m not doing cart wheels over the data release. fed is not priced in. if you look at your portfolio, those things that were dovish trades i think are extremely stretched. those things that were defensive essentially be careful of the things that are very, very cheap. i think that s something that the market needs and some of it you could say this does feel a little bit like november when we were at 2100 on the s&p and one to two rate hikes were not priced in. there were a lot of
look at the ten-year reaction. all of this on the eve of the big fed decision. joining us is the chief executive officer for blackrock global fixed income. i know everybody wants to blame it on the brexit,ry, but the reality is the yield on the german bouund has been falling r 30 years so what does it tell you when the bonds of one of the biggest economies in the world are now a negative yield? so, first of all, i think you re right in terms of they have been falling for a while. some of it is aggressive monetary policy and there s not enough bunds relative to what the ecb has been buying and that people use them to manage their risk and use them as hedges against credit, hedges against other sovereign risk so all of a sudden when there s a flight to quality you get the extreme moves that have created this dynamic today which, about by the way, bleeds into the u.s. treasury market and other safe assets in the world today. let s say it s only the ecb or primarily the europ