this is "nightly business report" with sue herera and bill griffeth. ♪ typical quarter. walgreen's cut i profit outlook hurt by a drop in the price of generic drugs and it doesn't look like that trend will end any time soon. >> dorderorder. the president starts to soften his tone, but again, tteatens to sown the mexican border, but what happens to our economy if >> and closing the gap. the industries leading the way working tard equal gender pay and ones that still have a ways to go. hose stories and much more tonight on "nightly business report" for this tuesday, april the 2nd. ♪ ♪d gening, everyone, and welcome. stocks were mixed after yesterday's big rally and one of the reasons was walgreen's.

the nation'sst lar drugstore chain reported weaker than expected earnings and said the future doesn't look much better. the company cut its profit outlook for the year after getting squeezed by some of the many pressures running through the entire healthe industry including the price of prescription drugs. to remedy the problem, the ceo isling for more cost-cuts now,g totalout $1.5 million investors 2022 and did not like that news. shares of the dow component hit 15%, hitting a 52-week low and more thant day in four years. bertha coombs starts us off with the chall fgesing walgreen's. >> walgreen's called this the most difficult quarter the n company has since the merger with boot alliance in 2014. >> and we hadec been e and preparing for impacted usif siantly more quickly than we anticipated. >> results in the pharmacy

divion were hurt by lower price increases on brand-name drugs and generics than had been expected. analysts say that's in part due to pressure fromto washi on drug prices. >> brand inflation normally starts in the beginning of every year and we're used to seeing that in the 10% to 15% range and as,ou kno media pressure and congressional pressure has landed on the pharmaceutical manufacturers, inflation rate has dropped about 5%. lower priced increases meant lower profit margins for walgreen's. the company company's taking steps to cut costs whileim at t same focusing on adding new health options in store. >> one is driving the very important core business ofar cy in sales, and there's no changes there apart from driving that more directly and secondly to look at future profit streams and it isealth care services. >> rival cvs, services a

becoming a bigger focus becau amazon is undercutting them on the goods they offer in store. >> amazon is starting to introduce more over the counter medications and healthnd wellness products so think about cough, flu and cold medine amazon has the basic caroline that's cheaper than what walgreen's sells. walgreen's expects to get a better handle on margins later in the year and analysts say the political pressure on drug prices isn't likely to let up any time soon. with new pharmacy drug discount rules expected from the trump administration later this spring. for "nightly business report" i' bertha coombs. >> and in fact, walgreen's was the biggest decliner ang the components inside the dow jones industrial average today and a decline in consumer staples and also energy shares pressur the market, as well as the dow snapped a three-day winning streak and by the close it was down 79 points. walgreen's accounted for 55 of thosnt, by the way, but the nasdaq was higher up 19.

the s&p was unchanged. president trump today said he was prepared to close large portions of the border with mexico repeating a threat that he made just days ago. th issue he wants fixed is illegal immigration though today he cre mtedico with taking new steps to solve the crisis, but that crisis a t theeats are already causing disruptions that could ripple through the economy. scott cohn reports from the border for us tonight. >> trucks by the dozens are already backed up inif cnia according to a senior homeland security official as the processedwho normally freight are sent elsewhere to process migrants. >> our system is absolutely maxed out. >> the president yet again threatening to shut the bor unsettling to many of the 130,000 people who use this crossing ane every day, many for work. >> that would mean probably that they're going to lay us off at

least day or two, and we are about 40 in the company. >> at stake, $1.7 billion i trade every day between the u.s. ando. the president acknowledged mexico is now taking steps that he says are a result of h threat. >> so mexico has as of yesterday made a big difference. >> but the president is not backing down. >> we'll have a negative impact on the economy and it's one the biggest trade deals in the world that we've just done with the u.s. embassy, and it's very big trading partner, but to me, tra ng is very important and the borders are very important, but security is what t important. >> business leaders are urging caution. >> my view is that the president and the administratio in particular have to -- whatever they decide to do, we'll have to do it without screwing up the economy. >> so the senate majority leader mitch mcconnell and closing down the border would have

potentially catastrophic, economic impact on our country. >> while white house officls look for ways to blunt the economic effects of a shutdown. >> i think the answer is we can, and people are looking ater dit options, particularly if you can keep those freight lanes and truck lanes open. that's probably them. >> but that's easier said than done in a tradingone that is as sensitive as it is massive. the last time this crossing shutdown for a matter of hours in november, officials say the handfu businesses just in the neighborhood lost more than $5 million. the president is threatening a shutdown that ish bigger, much longerith impact the people here can't begin toe. imag for "nightly business report" scott cohn, san diego. potentially woupp to the u.s. economy if the mexican border is shut down? clayton aen is senior trade policy and geopolitical strategist with heigh capital

market and he joins us to talk about that. clayton, thanks for joining us tonight. assuming it's a short shutdo. where wou we see the biggest impact initially, do you think? >> on the shorter shutdown, the biggest impacts would be the logistics industry and trucking freight rail and those would be the first things hit and then automotive and you'll see that maybe two to three days less than a weekendfter at. >> does the type of shutdown, if indeed it doesappen make a dramatic difference in the economic impact? i heard larry kudlow earlier saying they can keep the freight lines open. what would thepa economic be depending on what the shutdown looked like? >> it would vary widely. >> the two things that matter are duration and type freight lines and freight rail still open. you would see the economic impact kind of restricted to border communities primarily as you noted earlier, you're in disconne workers from businesses and consumers from the markets, but you'd still be le to move goods into the

interior of the country. goods.king of agriculture, if it's a longer term shutdown, that could be catastrophic for agriculture, wouldn't it? >> it would be terrible. you are already seeing awful repercussions from tariffs and lost store crops dur g the lower mississippi flooding. this would kind of just be one more terrible thing for the ag economy this year and last. it comes at a time when the u.s. economy is starting to slow a little bit and we're seeing all of these headlines about the possible shutdown. whatbout the psychological impact on the u.s. economy from the consumer? >> think consumers and investors both would take a lot of sort of negative emotional response to this, and you're going to see that definitely dent people's confidence that the economy will ton growoi and you're to see that dent investors' confidence that both the economy wil grow and that they can trust this administration and d.c. in general to make the right choices. >> are we seeing at all? maybe youow don't often when

there is a threat of a shut down of some kind or trade bargo, you will see a spurt of new trade go on. are we seeing that right now on ethe border in c there is a shutdown? >> trade on the border moves sok quickly, i t it would be impossible to measure, but as you noted earlier, tre is a backlog of trucks trying to get across. trade against the mexican-u.s. border goe across. >> clayton allen with height orcapital markets, thanks joining us tonight. >> thank you for having me. >> auto sales for march shows sales are slowing, something we toldou was likely. honda was one of the bright spots while sales of toyota and fiat chrysler fell. general motors who reports on a quarterly and not a monthly basis says sales are down 7%. car sales at gm were off roughly 20% and the look luster demand were offset by higher car prices and over at gm the averagerice was up almost $1,000 to more

than $35,000. >> orders for long lasting factory goods fell in february. this morning's report said the durable goods orders were down 1.6% after three straight mons of gains. the decline was due mainly to soft aircraft orders wch do tend to be volatile and within that report a key metric for business investment fell for the third time in four months. meantime, was there yet more brexit drama ovseas today with the clock ticking and the uk government still unable to reach the agreement.ni prime ster theresa may said today shesk plans to a for yet eu.her extension from the bill lemarques reports for us today. >> 10 downing street for a cabinet meeting that was billed as a make or bre moment for britain's future. >> with cell phones locked away and a near brief pause at lunch they eebt ally left after hours and hours of discussions on how to break the brexit deadlock.

late on monday night parliament had its own latest dead end. >> do the nos have it? again.akers >> and again voted no on possible alternatives to the government's negotiated deal with t eu. options, time and public patience are all rning short ahead of an april 12th deadline that theresa may meets when she meet inrussels next week. >> tonight the stubborn streak, rnsource of surprise and i'm taking action to break the law down.er i o to sit down with the leader of the opposition and to try to agree to a plan thate would both stick to to ensure that we leave the european union and that we do so with a deal. >> may also said she would request a second brexit extension from her eu counterparts, but it's a promise to cooperate with her opponentj

my corbin and to honor the will of parliament if those talks fall apart that represents a real compromise, one that real critans have dd for months and the british pound rallied in sponse. but there remains few guarantees about the future. it was president today and the refrenchdent met with the eu and he insisted that the eu would not grant the report. i'm willn lemarques i london. it is time to take a look at some of today's upgrades and downgrades. lyft shares were initiated with a sell rating at seaport global securities. the analysts says younger generations will continue to own cars and calls the thesis that mi millennial will forego car ownership a big leap of faith. >> the stock closed at $68.97. as you know lyft shares started

tradingriday at an ipo price of $72. disney was rated a buy over at rosenblatt securities and the analyst cites the likely success of the streaming plus service, and the price target is $150. shares close the day at $111.96. exelon was upgraded from outperform to market perform at wells fargo securities and the analystited several factors pcluding nuclear-related initiatives and tce target is $57 and today the shares finished at $50.29. still ahead, a big players n las ves a lot riding on a hearing in massa.

>> a senate panel in washington has opened an investigation into whistle bloer complaint ainst the faa. the e-commerce committee is looking into how the agency trained safety inspectors who had 737 max jets. there is a lack of traininghat could have led to an improper evaluation of the system at the center of the investigation into the crash of those two boeing jets. >> there's a new company in the dow index. its name, nddow, it was spun off from dow dupont, following all of that, dow is a materials science-focus company that the ceo says is about to embark on new, more focused era. >> one of the things we wanted to do was make it easier for the shareholders to understandof on he knocks on us long term is plex and we too c didn't understand how to operate this thing. >> the three market verticals packaging, infrastructure and

consumer goods and we're very focuseanon those businesse it's a good growth company. >> shares of dow rose 5%, 56.25. >> a report issued today alleged that executives at wynn resor were part of a cover-up to protect founder steve wynn against allegations of sexual misconduct. the investigation was conducted by massachusetts regulators and the 199-page repor was released just as a hearing got under way this morning to determine whether wynn resorts will be permitted to run a .5 billion casino resort outside of boston and keep its gaming license in that state. during this morning's hearing, a financial consultant testified that there's a lot at ske for wynn. >>. >>n resorts financial stability has not been negatively impacted by the allocations. the company is contingent uponp the c and it's gaining license in las vegas and masshusetts and macao.

that is paramount to a successfully ongoing operations. >> wn resorts is still hoping to open its new encore boston harbor res jt ine. the company has been cooperating with the state's investigation for the past year. by the way, the nevada gaming commission also recentlyyn reviewed resorts and it assessed a fine of $20 million and it did allow theoompany keep its casino license there. shares of wynn resorts rose 4% in today's trade. delta's shares take off and that's where we begin rktonight focus. nce airline raised its quarterly earnings gui above expectations and it expects unit revenue to rise 2% in the march quarter. the carrier adds that the american express credit card will likely double by 2023. delta rose 6% to $55.33. delta's outlook rippled through the sectorifting thether airline stocks. mcdonald's has taken a nearly 10% stake in the mobile app

company. the deal marks the fast food company's first-ever investment in the mobile app vendor and its second major investment in the tech company in a week. mcdonald's is hoping technology will help them better tart customers. the shares were off 4 cents to 35. >> black rock is undergoing the large resoergz and the asset manager is going to increase its bets on non-traditional investmentsncluding private equity and hedge funds and commodities and real estate. the ceo larry fing said todayhi that will differentiate black rock from its competitors. black rock was at 436.45. the web-based company best known for helping families find child care. yesterdayst the walet journal reported that care.com had removed tens of thousands of unlicensed day care center listings from its site.uy best had used that service for its own employees.

executes told reuters today that it's now doing a thorough review of both that servicee an company, and that small cap care.comstock fell nearly 10% to $16.64. coming up, why some industries are better a closing the pay gap than others. ♪ in washington the house ways and means committee unanimously (k)sed a bill of 4 retirement plans and improve access to them. it was the most comprehensive change to retirement lgsz in more than a decade. as we reported yesterday one major provision would make easier for small businesses to

band together to offer retirement benefits. filtitelity is out with its analysis of healthcare reti retire. ths good new and badews. a 65-year-old couple will need $265,000 over the course of their retirement and that's before factoring in long-term care, dental or medical premiums. the good news, if you can call it that, is that the cost did not rise much in the last tear. remembers is just one estimate and the numbers can often vary a widelyng various studies. would a bigger salary make you happier at work? well, a new survey says not necessarily. according to the urcnbcy monkey workplace happiness index. the majority of respondentsay things like additional paid time off and more training wou increase their satisfaction and workers in some industries tend to be happier than those in others. >> the happiest comes out to be consulting and research which is

the combined industry. the happiness score there and this i across all five of the factors that we identified is around78. so the least happy is in retail. so people should probably be nicer toeople when they buy a cup of coffee or take that ride in the ride-sharing vehicle. >> by the way, today is equal payday that is the day that symbolizes how far into the new year that women must work toen earn what earned for all of last year. according to a recent report wome in the u.s.orking full time and year round made roughly 80 centsry for e dollar that their male counterparts earned and experts do not expect that pay gap to close for a long time. julia boorstin has >> the good news is that the pay gap is starting to close. the progress is so slow at this rate, men and women won't be paid equally until 2070. that's according to a new report from glass the disparity is mea women earn on average 75 cents

for every dollar men earn in the u.s. pointing to the fact that men tend to dominate in higher-paying industries like tech andre promoted faster. >> it's not enough when payout comes at the ende of day. two people in identical roles ctare paid the e same and instead we're encouraging companies that form pay lik what's happening in the hiring press or i negotiations. >> even with the same job and the sameexperience, women make 95 cents for every dollar men make and some h industriee bigger gaps than others and media andve retail he biggest gap of 6.4% for the same roles wit qualifications according to glass door. finance and i.t. are in the middle of the pack with 5.6% and 5.4% respectively and the biotech and pharmaceutical industry have the smallest gender pay gap of just 2.2%. >> cisco's executive vice

esident and francine has worked to help close its pay p, looking beyond just adjusting pay. >> to see more women inad ship roles. a lot of times when you look at the pay gap, what wooeokin look at is the average that men make and women make and so the more women you have in senior w leadership,ill see that go down. >> they rate the top companies for equal pay. general motors and adulent technologies is less than 3% across the companies. informationed pay with three pay brackets. citigroup, bank of america a johnson & johnson also top the list because of there detailed paid disclosures and companies in place. companiesar tha't transparent about their play are more likely to have the gaps for women of color, and women of color making it all the more important for companies to take a close look across their ranks

and diversity and inclusion policies. for "nightly business report," syme julia boorstin in los angeles. she joins us to talk more about thee gender wap between men and women and how it could be hurting the u.s. she is from the earnings of institute for women's policy research. welcome. e to have you here. a >> thank you fressing this. >> you maintain that one of the biggest on problems at the base ofll of this is yes and no.on, corrected? so discrimination not when you the same job, but discrimination in the way we reward after what women typically do and what menll typicay do. for example, ari truckr makes less than a secretary. >> two of them in particular, technology and healthcare but we

still hear about gender pay inequality where they claim in some basis that they can't find enough ski workers. how does that happen, do thin the issue of discrimination? >> i think one issue in the tech industry, it is smaller than othernd sectors often women go into those high-paying, non-traditional fields for women and they make a little better money. in the healthcare sector there's somethingal we the glass elevator that if a man comes in, you know, you can see him go straight to the top and the women move up much more slowly. so that also happens. >> so what about the impacts on th economy? if we were able to close this wage gap most qui people estimate we will, what would be the economic impact? >> we have effort mated how much if women ccount for

were paid the same as men if they worked the same hours and th same education and the same years of experience in the labor market ask it comes to $5 billion which was 2% of the gdp when we did that study. a huge amount. women tendo spend money faster on locally on their kids and on the house and on mortgages and it helpsil fs not just the individu women. very quickly, leverage helps a lot. what leverageom do have that would help them close the gap in some ways? >> you actually not just women. it's all of us, and i think we use our vote, talk to colleagues and talk to our bosses also, but a lot of it is around policies. we need the college accessbe an er care and we need more nforcement of pay discrimination or against pay

discrimination. >> arianne with the institute for women'solicy research. thank you. >> before we go, a final look at the day onee wall s the dow fell 79 points and you can blame a lot of that onwa reen's and their earnings report and nasdaq was up 19 and the s&p was unchanged today. >> that's it for "nightly business report." i'm sue herera. thanks for joining us. >> i'm bill griffeth. see you morr. s

>> t "bbc world news america." >> funding of this presentation made possible by the freeman foundation, and judy and peter blum-kovler foundation, pursuing solutions for america's neglected needs. >> wow, that is unbelievab. ♪>> i'm flying! ♪