<Show: NIGHTLY BUSINESS REPORT> <Date: April 16, 2013> <Time: 18:30:00> <Tran: 041601cb.

118> <Type: SHOW> <Head: NIGHTLY BUSINESS REPORT for April 16, 2013, PBS> <Sect: News; Domestic> <Byline: Susie Gharib, Bill Griffeth, Jon Fortt, Diana Olick, Jane Wells, Phil LeBeau, Eamon Javers> <Guest: Josh Spencer > <Spec: Business; Economy; Stock Markets; Intel (NASDAQ:INTC); Yahoo (NASDAQ:YHOO); Wall Street; Housing; Real Estate; Gold; Trade> <Time: 18:30:00>

ANNOUNCER: This is NIGHTLY BUSINESS REPORT with Tyler Mathisen and Susie Gharib, brought to you by --

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BILL GRIFFETH, NIGHTLY BUSINESS REPORT ANCHOR: Stocks rebound. The market bounces back from the worst one-day decline and now our attention turns to technology, as Intel (NASDAQ:INTC) and Yahoo (NASDAQ:YHOO) both

report earnings after the bill.

SUSIE GHARIB, NIGHTLY BUSINESS REPORT ANCHOR: Strong foundation. Housing starts jump dramatically. But are red flags being raised on one part of the recovery.

GRIFFETH: And gold rush. What are individuals doing now with the precious metal as prices fluctuate sharply?

All that and more coming on the NIGHTLY BUSINESS REPORT for Tuesday, April 16th.

Good evening, everybody. I`m Bill Griffeth, in for Tyler Mathisen all this week.

Susie Gharib, another big day for he markets. But now, we have two numbers out today that probably will set the tone for tomorrow.

GHARIB: And we are talking technology now for a change.

Two tech titan with a tale of two different earnings stories tonight. Yahoo`s first quarter earnings surged 36 percent but an Intel (NASDAQ:INTC) profit fell 26 percent. They are the first batch of technology companies reporting this week and could set the tone for trading in tech stocks tomorrow.

First, let`s look at Intel (NASDAQ:INTC). The world`s biggest computer chip company earned 40 percent a share. It was a penny below analysts estimate. Revenues fell 2 percent to $12.6 billion, slightly better than expected. But the company said revenues in the current quarter will come in higher than forecast, and so, Intel (NASDAQ:INTC) shares jumped as much as 2 percent after hours trading before pulling back.

Meanwhile, Yahoo (NASDAQ:YHOO) earned a 38 percent a share. That was 14 cents more than analysts expected, but revenues came in below estimates at $1 billion and the company reported a drop in display advertising, disappointing investors. Yahoo (NASDAQ:YHOO) shares tumbled more than 4 percent in after hours trading.

GRIFFETH: And on the heels of Intel`s and Yahoo`s mixed results, there`s another technology giant set to report next week which may reveal about the shift by consumers to mobile computing and the health of the tech sector as a whole, than any other company.

In tonight`s installment of our series "Earnings Spotlight," Jon Fortt tells us what investors are expecting and hoping to hear from Apple (NASDAQ:AAPL).

(BEGIN VIDEOTAPE)

JON FORTT, NIGHTLY BUSINESS REPORT CORRESPONDENT (voice-over): If there`s one tech company to focus on this earnings season, it`s Apple (NASDAQ:AAPL).

(on camera): It`s an important quarter for the iPhone and iPad maker. Of course, investors would like an increase to the dividend. Now, it`s at around 2.5 percent yield. They`d like something closer to 4 percent.

(voice-over): The stock is trading near its lowest level since the early days of 2012 because of worries that the days of dizzying sales growth and profitability of the company are over.

COLIN GILLIS, PARTNERS TECH SPOTLIGHT: Expectations for the March quarter keep ratcheting down, because we are in the middle of a product refresh vacuum, right? But it`s not only the March quarter that investors are concerned about. They are concerned about the June quarter which may show more signs of a slow-down as existing, iPhone 5 and iPad start to show age and in front of the next launch of those products.

FORTT: Apple (NASDAQ:AAPL) has already poured cold water on Wall Street`s hopes for surprise up side, saying that sales will be up 5 percent to 10 percent, to around $42 billion. Margins will be down and unlike in the past, this time management promises those projections will prove accurate.

A key storyline to watch with the stock, PC versus mobile. PCs are under plenty of pressure with shipments down nearly 14 percent in the first quarter, according to IDC, as consumers opt for phones and tablets instead. Just ask people how often they are buying a new home computer.

UNIDENTIFIED FEMALE: Never because I have a Mac. So, as far as my Mac goes, I mean, I have iPad and a lot of tablet handheld devices. So, those, I mean, we get new rounds of those every couple years. But no PC except at work.

UNIDENTIFIED MALE: I think I use my iPad more than I use my computer to where it`s almost obsolete in a way. I`ve never even touched it. It`s almost pointless to have one almost at this point.

FORTT (on camera): Bottom line, investors are looking for a reason to continue believing in the surprising market rally we`ve seen so far this year. Optimism from Apple (NASDAQ:AAPL) would go a long way.

For NIGHTLY BUSINESS REPORT, I`m Jon Fortt in Cupertino.

(END VIDEOTAPE)

GHARIB: Joining us now to talk more about those earnings from Intel (NASDAQ:INTC) and Yahoo (NASDAQ:YHOO) and the out look for the technology sector, Josh Spencer. He`s portfolio manager of the T-Rowe Price Global

Technology Fund.

You know, Josh, looking at Intel (NASDAQ:INTC) and Yahoo (NASDAQ:YHOO), the one thing that ties them together, these are about companies trying to reinvent themselves. So, I have two questions for you. In the case of Intel (NASDAQ:INTC), does it have what it takes to reinvent itself, to jumpstart the company? And in the case of Yahoo (NASDAQ:YHOO), is Marissa Mayer`s turnaround strategy working?

JOSH SPENCER, T. ROWE PRICE GLOBAL TECHNOLOGY FUND: Well, thanks for having me on. It`s nice to be with you.

And you hit the nail on the head, both are reinvention stories. In the case of Intel (NASDAQ:INTC), they start with a strong suit with manufacturing. They`re actually, you know, a world class manufacturer of semiconductor chips. However, the segment that they sell into, the PCs, is under a lot of pressure.

I smiled in the interviews in the Apple (NASDAQ:AAPL) segment leading into this. People just aren`t using their PCs as much as they did in the past. So, I think Intel (NASDAQ:INTC) does have what it takes to turn around eventually but it will be a slow process to establish themselves in the smartphone and tablet market.

Yahoo (NASDAQ:YHOO) is also going through a turn around and what we

saw this quarter was not much evidence of a fundamental turn around in Yahoo`s business with revenues actually down a little bit year on year. So that one is still on the come as well.

GRIFFETH: Are we really going to get to a time where we do not use PCs anymore. I mean, I know we`re migrating to these mobile technologies that we all use. But will we come to day when we don`t use PCs? And who, in your opinion, is better positioned in that regard, Intel (NASDAQ:INTC) or Yahoo (NASDAQ:YHOO)?

SPENCER: Well, in that regard, Yahoo (NASDAQ:YHOO) is better positioned. I think it`s an exaggeration to say we won`t use PCs. But we`ll use them for a lot narrower applications. So, we might use them at work for spreadsheets. But at home, we`ll pull out that tablet or that smartphone if we want to check the Internet, or stay up with video or news. We just will PCs less and less in our daily life.

Yahoo (NASDAQ:YHOO) has a better chance to make that transition. Intel (NASDAQ:INTC) is establishing themselves into a whole new realm.

GHARIB: Josh, I want to ask you about Apple (NASDAQ:AAPL). You heard Jon Fortt`s report on it. Everybody is looking forward to that report, earnings report next week.

I know that you are a believer in Apple (NASDAQ:AAPL). But make a

case, why investor who have lost some faith in this company should take a fresh look at Apple (NASDAQ:AAPL)?

SPENCER: Well, we all love Apple (NASDAQ:AAPL) products. The customer that you interviewed, that sounds like my house at home. We have Macs, we have iPads, iPhones. We have a 2-year-old and a 5-year-old who love using those iPads. So, may be too much.

The products are very intuitive. They have a great software ecosystem, we have come to expect innovation from Apple (NASDAQ:AAPL) and I think we will continue to see it in the future.

You know, just because they have gone through a bit of a lull here let`s not throw the baby out with the bath water. It`s easy to forget that Apple (NASDAQ:AAPL) has been generating tremendous profits and has over $130 billion of cash on their balance sheets today.

GRIFFETH: Right. It feels though that the innovation has been more incremental than transformational, as we saw during the Steve Jobs era. What do you think the next big thing is from Apple (NASDAQ:AAPL)?

SPENCER: Well, it`s hard to say. I think they`re going to continue to innovate around the iPhone and iPad products. I think we`ll see thinner iPads. And I think we`ll see larger screen iPhones and new features like fingerprint sensors.

Of course, we`ve all heard the talk about Apple (NASDAQ:AAPL) working on watches and TVs. I think I would buy an Apple (NASDAQ:AAPL) watch if one came out. I think there`s a lot of people into fitness who would use it in the gym or while they`re jogging outside. And, of course, there`s many people who would buy an Apple (NASDAQ:AAPL) TV to solve the nightmare problems that we have with our cable box.

GHARIB: OK. Josh, do you any disclosures to make on Apple (NASDAQ:AAPL), Intel (NASDAQ:INTC), or Yahoo (NASDAQ:YHOO)? Do you own any of these stocks?

SPENCER: Apple (NASDAQ:AAPL) is the largest position in the fund that I manage and we do own Apple (NASDAQ:AAPL) personally in our family as well.

GHARIB: All right. Thanks so much. Josh Spencer, portfolio manager at T. Rowe Price Global Technology Fund.

Bill?

GRIFFETH: Well, the markets rose sharply today, gaining back more than half of Monday`s big losses. The Dow was up 157 points when all was said and done, ending the session at 14,756. NASDAQ up 48, the S&P 500 added 22 points.

Stocks got a big boost from a round of solid economic data reports and stronger than expected earnings before the bell from Dow components, CocaCola (NYSE:KO) and Johnson & Johnson (NYSE:JNJ).

As for that data, inflation is still in check. Consumer prices fell more than expected last month, driven lower by a 4 percent decline in prices at the gas pump.

Also, helping, industrial production was higher than forecast in March. With U.S. automakers churning out more new cars and trucks and utilities generating more heat to combat a nationwide cold snap that we all suffered from last month.

And there was more good news in housing. Construction of new homes shot up by 7 percent in March, enough to reach an adjusted annual rate of 1 million housing units for the month, something we have not seen in five years.

GHARIB: Well, Bill, that jump in new home building that you just talked about help sent shares of the nation`s biggest home builders higher today. Pulte Homes rose more than 4 percent. Ryland up 3 1/2 percent. D.R. Horton (NYSE:DHI), Toll Brother and Hovnanian all seen gains.

Now, much of the surge in construction was not single family homes

however, but multi-family rental apartments. It`s a sector that`s been growing rapidly over the past few years and now, there`s concern about a backlash in all those rental units that are hitting the market all at once.

Diana Olick explains.

(BEGIN VIDEOTAPE)

DIANA OLICK, NIGHTLY BUSINESS REPORT CORRESPONDENT (voice-over): As the market for single family homes recovers, a curious contradiction wings overhead, crane high above construction sites of multifamily rental apartments buildings. Thousands of new units are going up just as demand for rental apartments could soon be coming down.

Multifamily starts rose 27 percent month to month in March, and are up 82 percent from a year ago, running at an annualized pace of 392,000. Compare that to the 10-year historical average of 238,000.

DAVID TOTI, CANTOR FITZGERALD: A year from now, we will be seeing much stronger headwinds for this space potentially. The supply trajectory clearly is changing, mortgage credit is clearly loosening. If we stay in the current pathway, I would expect that demand will be diminished somewhat.

OLICK: The numbers don`t show it yet. Apartment vacancies fell in

the first quarter of this year to 4.2 percent nationally, from 5 percent a year ago. That pushed rents higher by 3 percent. Despite sluggish job and wage growth, renters are still willing to pay these higher rates.

But the question is, for how long? Especially as confidence comes back to single family?

(on camera): It takes about two to three years to put up an apartment building. So, with all these new starts over the past couple of years, we`re about to see a big surge in supply. And just adds to investor fears already weighing on apartment rent (ph).

TOTI: What we have seen in the multifamily rent space for the last couple of years, certainly last year and this year, has been relative underperformance to the rest of the rent market. A big part of that has been fear around supply. There`s a bigger concern around rental growth as well. Supply ties to that.

OLICK (voice-over): But real estate is all about location. And developers in prime, urban areas claim the market is hot but not overheated.

JOHN TSCHIDERER, FEDERAL REALTY INVESTMENT TRUST: No, we`re not concerned about any of that. I think the market is ripe for us to take advantages of the locations we are.

OLICK: More than 100,000 new apartment units are set to open in a latter half this year, with an even stronger surge set for 2014.

For NIGHTLY BUSINESS REPORT, I`m Diana Olick in Washington.

(END VIDEOTAPE)

GRIFFETH: And that`s how our system works, where there`s one area that suffers, like the housing market, the rental market is very hot right now and that`s not lost in these builders.

GHARIB: Remember the whole American dream of owning a home. That maybe changing, too. Just psychologically, Americans want to rent. It`s easier.

GRIFFETH: And they are doing it in big droves right now.

Still ahead on the program, the gold rush. Is all the volatility causing individuals to hoard or unload precious metals?

But, first, let`s take a look at how the international markets closed today.

(MUSIC)

GHARIB: As we mentioned earlier in the program, strong earnings from two Dow components helped to set the table for today`s market rally. CocaCola`s earnings and revenues topped estimates, thanks to strong sales volume in the U.S. and worldwide.

And Johnson & Johnson (NYSE:JNJ) also reported better than expected earnings on sales of newer medicines.

Investors bid up Coke more than 5 1/2 percent to $42, and it was leading the Dow gainers. Johnson & Johnson (NYSE:JNJ) gained more than 2 percent to $83 a share.

GRIFFETH: Meanwhile, two financial services giants, Goldman Sachs (NYSE:GS) and Blackrock reported strong quarters. Goldman`s profit was up more than 7 percent, while Blackrock`s was up 10 percent.

Goldman`s chief financial officer said that their clients were more cautious in March because of Cyprus and other uncertainties. While Blackrock`s chief executive officer said new business during the quarter was indicative of positive momentum.

Blackrock gained more than 1 percent, while Goldman Sachs (NYSE:GS) lost nearly 2 percent.

GHARIB: Shares at JCPenney jumped 5 1/2 percent today on a report that the troubled retailer is considering ways to borrow against its real estate by issuing debt. Besides its retail stores, Penney owns warehouses, distribution centers and other real estate. JCP closed at $15.19 a share.

GRIFFETH: And Whirlpool (NYSE:WHR) announced a 25 percent dividend increase, saying that it expects to sustain growth. As housing recovers, all those new homes, of course, are going to need appliances. Whirlpool (NYSE:WHR) also sells kitchen-aid and Maytag products.

Whirlpool (NYSE:WHR) shares have gained almost 65 percent of the past year and they were up better than 3 percent today alone.

GHARIB: And one of the stars of today`s market was WW Grainger. It sells equipment and supplies to other companies and institutions. Grainger`s first quarter profit improved by 13 percent and that`s thanks to strong sales growth in the U.S.

Grainger led the S&P 500, gaining 7 1/2 percent. That works out to $16 to $241 a share.

And gold prices regained a bit of their glitter today, up $26 an ounce but that`s coming off the biggest one day drop in prices in 33 years on Monday, with prices falling $140. So, if you own gold, even some old jewelry that you are thinking of selling for cash, you may be wondering if

now is the time to sell.

Jane Wells takes us to a California company, where volatile prices for gold and silver are creating a rush of customers.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: We have 23 kilos and 165 eagles.

JANE WELLS, NIGHTLY BUSINESS REPORT CORRESPONDENT (voice-over): It`s late afternoon at California Numismatic Investments where customers are furiously buying or selling gold and silver. There`s a line out the door.

KEN EDWARDS, CALIFORNIA NUMISMATIC INVESTMENTS: Volatility brings them in because they need to act now.

WELLS: Ken Edwards is a partner in the gold dealer, just down the road from LAX. Business is up as gold and silver prices are down.

EDWARDS: Up until the recent drop, that was the end of last week, beginning of this week, I would say that we were selling more, especially silver.

WELLS (on camera): You were selling.

EDWARDS: We were selling more. OK? Now that`s really balanced out. We have seen more sellers come in the market in the past couple of days.

WELLS (voice-over): One man who did not want to talk on camera was selling more than 1,600 ounces of gold while we were there. But most of the people were buying.

John Garton is buying silver at the moment and is waiting to buy more gold.

JOHN GARTON, SILVER/GOLD BUYER: Obviously, it will go down another $100 and then it will start its way back up.

WELLS (on camera): At this facility, they will buy American gold eagles for about $25 above the market price for gold. They`ll sell them for about $75 over. As for silver, they buy at $1.25 above the spot market, and they sell for $3.25 over, but they don`t have much silver to sell at the moment.

(voice-over): Most of the business here is done through the mail. About 20 percent is conducted in person. And CNI`s 18 employees are busier than normal.

EDWARDS: When there`s big moves, lots of volatility, that tends to get people to act right away. They don`t want to wait until Friday because

the market might be completely different.

WELLS: And here, no matter what`s happening with the price of gold. They are making money.

For NIGHTLY BUSINESS REPORT, Jane Wells, Inglewood, California.

(END VIDEOTAPE)

GHARIB: The tricky thing about selling jewelry is that it`s just for its weight not for the design or any special stones, it is a gold rush.

GRIFFETH: That numismatic quality. Exactly. I mean, we definitely in the midst of the gold rush again. That`s for sure.

All right. Coming up, the business of protecting big events and the cost to keep you safe.

But, first, more on how the commodities and treasuries and currency fared today.

(MUSIC)

GHARIB: Brace yourself for even slower growth around the world, 3.3 percent is the new global economic growth number from the International

Monetary Fund. It lowered its outlook by 0.2 of a percent today, blaming steep federal spending cuts in the U.S. and the deepening debt crisis in Europe.

The IMF also trimmed its growth forecast for emerging markets and cut China`s growth to 8 percent from 8.2 percent.

GRIFFETH: Well, certainly, a slow down in GDP in China got the blame from Monday`s selloff on Wall Street. But Ford does not see it that way. The automaker is predicting that 40 percent of its global sales will come from China by the end of this decade.

The company as a result has doubled its capacity there, scrambling to keep up with demand in the world`s largest automatic.

Phil LeBeau is in Chongqing with a closer look at Ford`s rapid expansion there and the challenges it still faces.

(BEGIN VIDEOTAPE)

PHIL LEBEAU, NIGHTLY BUSINESS REPORT CORRESPONDENT (voice-over): Shouguo Li is part of the new wave in China. Car buyers turning the western part of the country into one of the hottest auto markets in the world.

SHOUGUO LIO, BUYER (through translator): In his mind, he feels that the car, the brand is good. And the service is also excellent. So this is why he trusts this brand.

LEBEAU (on camera): Here in Chongqing, the gateway to western China, growth in auto sales is particularly good news for Ford. At this plant, a new Focus or Cougar rolls off this assembly line every single minute. And within two years, Ford will be doubling capacity in this area.

XU BINGHUA, CHANGAN FORD PLANT MANAGER: This year, the total volume of the Ford (INAUDIBLE), we achieved almost 600,000. So it`s a big, big key (ph).

LEBEAU (voice-over): Growing sales in China have been one of Alan Mulally`s top goals since he took over Ford in 2006. At the time, Ford had a small presence in China. While its rival G.M. led the market, thanks to Chinese buyers loving Buicks.

Mulally immediately began investing billions in China, quickly ramping production. China now generates 11 percent of Ford`s global sales with the Focus leading the way.

ALAN MULALLY, FORD MOTOR COMPANY PRESIDENT & CEO: They have the Focus being announced as the number one selling vehicle in the world, and the number one selling vehicle in China. What a proof point about the Ford

strategy.

LEBEAU: While Ford is surging in China, it is still barely a blip in the rear view mirror of the market leaders.

JAMES CHAO, IHS (NYSE:IHS) AUTOMOTIVE: The dominant players here are, of course, Volkswagen, General Motors (NYSE:GM). Hyundai is a story as well in terms of how well they have done. So, Ford is still behind but coming on strong.

LEBEAU: Running hot in the world`s hottest auto market, where buyers are embracing the blue oval.

Phil LeBeau, NIGHTLY BUSINESS REPORT, Chongqing, China.

(END VIDEOTAPE)

GRIFFETH: In many ways, China is about 50 to 60 years behind us in that they have this very large growing middle class in their country and it is a sweet spot for companies like Ford and General Motors (NYSE:GM).

GHARIB: They`re going to turn in their bicycles for cars.

GRIFFETH: Yes, ma`am, they are.

GHARIB: And a lot of them.

GRIFFETH: Yes.

GHARIB: Our series from China continues tomorrow with a report on what doing business in inner China is really like for American companies.

GRIFFETH: In the meantime, from expansion on the roads, to trouble in the skies. American Airlines and its regional carrier American Eagle grounded all flights today after a computer outage at its reservation system. About 900 flights were impacted and another 800 were affected by planes and crews not making their destination.

American now says that its computer problems have been fixed and all flights will resume this evening. But to expect a lot of delays before things get back to normal.

GHARIB: And speaking to getting back to normal. Finally, tonight, after the deadly bombings at the Boston marathon on Monday, many Americans are worried about enhancing security measures at any public event. At what`s likely the first high profile gathering since the Boston tragedy, officials acted quickly to insure the safety of a concerned public despite the cost.

Eamon Javers has more from Washington.

(BEGIN VIDEOTAPE)

EAMON JAVERS, NIGHTLY BUSINESS REPORT CORRESPONDENT (voice-over): There were marching bands, colonial pipers, and soldiers on parade instead of on patrol. It hardly seems like a day after a major terrorist attack, but the Emancipation Day parade continued as planned right down Pennsylvania Avenue today.

(on camera): Officials said they were going to maintain a very heavy security presence here at the Emancipation Day parade in Washington, D.C. There`s not a lot of visible security, the normal police presence is out and about here in Washington, but the folks we talked to here today said this was an important day to come out the and they were not going to be afraid.

UNIDENTIFIED FEMALE: It`s pretty safe place to be at this point.

JAVERS: How did it feel today?

UNIDENTIFIED FEMALE: I feel pretty safe. I do.

UNIDENTIFIED MALE: A hundred and fifty-first signing of the Emancipation Proclamation. And times were a lot scarier and tougher back then and people, you know, stood for what they believed in. I thought it

was an important gesture to come out here and support this.

JAVERS (voice-over): These spectators were determined to go on with life in America today, even as the Senate Republican leader warned that Americans had let security go lax.

SEN. MITCH MCCONNELL (R-KY), MINORITY LEADER: The complacency that prevailed prior to September the 11th has actually returned. And so, we are newly reminded that serious threats to our way of life remain.

JAVERS: But securing the big events that America loves is an extremely expensive to do, whether it`s in Times Square or New Orleans. The NFL spent $6 million on security for the Super Bowl this year, and President Obama`s first inauguration came with a $124 million security price tag and there`s no guarantee that it will always work.

STEWART BAKER, FORMER HOMELAND SECURITY OFFICIAL: My sense is, for something like this, you could not possibly have frisked everybody in Boston before the marathon or looked in every trash can everywhere.

JAVERS: No matter what security officials do, life and the parade will go on.

For NIGHTLY BUSINESS REPORT, I`m Eamon Javers.

(END VIDEOTAPE)

GHARIB: And that`s it for us, NIGHTLY BUSINESS REPORT for tonight. I`m Susie Gharib. Thanks so much.

GRIFFETH: I`m Bill Griffeth. Have a great evening, everybody. We`ll see you tomorrow.

END

Nightly Business Report transcripts and video are available on-line post broadcast at http://nbr.com. The program is transcribed by CQRC Transcriptions, 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) 2013 CNBC, Inc.

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