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From CBS News headquarters in New York, this is the CBS Evening News.
Good evening, I'm Maurice Dubois. I'm John Dickerson. Usually we begin with something that happened. But not tonight. Tonight we begin with something that didn't happen. The economy didn't grow, not in the first quarter of this year. It shrank at an annual rate of three-tenths of one percent. It's the first time in three years
since COVID that the economy has receded, adding to the prospects of a recession. Continuing with the economic report card, the good news is the threat of inflation is easing. Consumer prices rose at an annual rate of 2.3% in March, down from 2.7% the month before. But that could change as the effects of the tariffs kick in, making products more expensive.
As they tried to beat the price hikes, consumers increased their spending in March by a solid seven-tenths of one percent. And here to put it all in perspective for us is Kelly O'Grady. Kelly? Yeah, there is a disconnect between where the economy stands and where it could be going. And we saw that in the report on gross domestic product, or GDP. GDP measures all the economic activity in the U.S. And last quarter, for the first time in three years, it shrank.
Most analysts expected the economy to grow somewhat in the first quarter of 2025. 100 days ago this week, we inherited the wreckage of four years of economic disaster. President Trump blamed the previous administration and said the full benefits of tariffs haven't kicked in yet. But White House trade adviser Peter Navarro tied slowing growth to businesses and consumers stocking up ahead of tariffs. We had a fairly extraordinary surge of imports
that was totally driven by the rest of the world trying to get their products in here before the tariffs took full hold. Imports in the first quarter surged more than 40%. Since the U.S. bought more than it sold, that caused GDP to go down. The brightest spot in today's report was a 22% increase in money companies spend to build their businesses in the U.S.
That's Apple for $500 billion. The White House spent this afternoon with CEOs from Nvidia to Johnson & Johnson.
But over the last three months, we've spoken to small business owners such as Lynn Alessi, who depend on imports. She told us the tariff uncertainty is causing paralysis. I have all my customers putting on the brakes, saying, "What are we going to do? Where can we move to?" Alessi's client, Karen Sadaka, said producing clothing on a large scale in the U.S., like she does, would require a big overhaul.
It's too much, too fast, and you're hurting companies. You just can't turn around on a dime and say, "Okay, well, you know, we're gonna increase you 40, 50 percent." Where's the infrastructure to make the goods in this country?
So, Kelly, if the economy is being affected by these tariffs in all these different ways, is it possible to look at through all of that at what a kind of the central economic picture looks like? Yes. And that was actually the silver lining of this report, because when you strip out all of that import and export volatility, the tariff noise, the underlying economy, it's what we call core GDP, that actually rose 3 percent last quarter.
Where I'm concerned, though, is consumer spending drives 2/3 of GDP. And that came in a bit weaker this quarter than it normally does. So if negative consumer sentiment leads to less spending, you could still have a GDP problem next quarter. And let's remember, 2/4 of negative GDP growth back to back
indicates a recession. They are a word. So what's the Fed likely to do here? Oh, they're between a rock and a hard place because a negative quarter of GDP, this would be sparking a conversation of when are we getting that rate cut to fuel growth? But with the threat of higher inflation because of these tariffs, cutting rates could spur inflation higher. So next week, the Fed's meeting, we're expecting them to pause unless we were to get some kind of wild jobs report on Friday, but that's unlikely. All right, we'll see. Kelly O'Grady, thank you.
As tariffs threaten to raise the price of new cars, Americans are racing to the showrooms. Chris Van Cleave reports they are trying to beat the price hikes. Akio Miller and his wife are accelerating their search for an SUV. It is a very smooth drive, too. Test driving a new Hyundai that could soon see a price increase due to a 25% tariff. With everything going on with the up and down with the tariffs and the car prices, I was like, you know what, we need to
Probably look like sooner than later. You feel like if you don't buy it now, you're going to pay more later? I definitely feel that way. Cars are already expensive, and then they're tacking on the extra tariff taxes, I like to call it. It's going to be way out of price range. The Millers are far from alone. March saw new car sales surge nationwide, jumping over 17% from February and nearly 12% over the same time last year, while driving down dealer inventory of pre-tariff vehicles by 10%.
Economist Patrick Anderson. You got a lot of sales in March that were basically people buying ahead of the tariffs. And that means, unfortunately, we're going to have lower sales later on when those people aren't buying cars that they originally intended to buy. 90% of this car was made in Korea. Seems like a vehicle that would get hit with a significant tariff. Its sticker price right now is almost $51,000. Would that go up?
No doubt it would go up. The question is to how much it would go up. That unknown led to a record march for George Glassman's Subaru, Hyundai, Kia and Mitsubishi dealerships in suburban Detroit. We stocked up in anticipation of higher prices. How long do you think then after tariffs would go into effect that you would start seeing that ripple into your costs and ultimately what people pay? It'd be immediate. I don't think there's any doubt about it.
To that point, the sales surge at this Honda dealership outside Nashville means their most in-demand vehicles, they've got about 30 days on hand. Normally, it would be 60. It's likely, nationally, those most sought-after vehicles will be among the first to see the price impact of tariffs as they're restocked. Chris Van Cleve, thank you.
Now more of the top stories from around the world in the evening news roundup. A federal judge in Vermont ordered the release of a Palestinian student activist who led campus protests at Columbia University. Mohsen Madawi, a green card holder, had been arrested two weeks ago during a U.S. citizenship interview.
Indiana State Police are investigating a shooting at a library south of Indianapolis. They say a man with a long gun opened fire, but was tackled by a library patron. One person was wounded by shattered glass. The mineral deal that blew up after the contentious Trump-Zelensky Oval Office meeting is back on. Ukraine signed an agreement today that gives the U.S. preferential access to its rare earth minerals.
In return, Ukraine gets funding to help with its economic recovery after the war. And the U.S. Supreme Court heard arguments today in an Oklahoma case involving the separation of church and state. The justices are weighing whether to allow what would be the nation's first publicly funded religious charter school. Jan Crawford is at the Supreme Court.
When an Oklahoma school board approved the nation's first Catholic charter school, lawsuits came faster than the school could open its virtual doors. It's the state creating a religious school. State Attorney General Gettner Drummond argues the school, to be paid for with taxpayer dollars, violates the Constitution's ban on government establishment of religion. Now, we're okay in Oklahoma and in many states with
state money going to the parent as a tax credit and then the parent chooses the religious school of their choice. But supporters like Kristen Wagoner of the Alliance Defending Freedom say if the state allows private groups to create charter schools it can't exclude religion. There are charter schools in Oklahoma that focus on Native American culture, that focus on performing arts, that focus on nature as examples and simply refusing to allow religious schools to participate in that
that's not neutral. It's actually discriminating against religion in your view. To suggest that a government official can say we're going to categorically bar the door to people of faith, that is wrong. It's unconstitutional. Approved in 2023, the school says it would fully embrace Catholic teachings, which is why the Oklahoma Supreme Court struck down the funding, saying public schools must remain non-religious. Drummond says it's a slippery slope. Right now we're talking about
a Christian-based school. But if you open it up to the Christian-based school, you open it up to everything. Such as? Satanic school. Satanic school. Wiccan school. You open it up to all. That's nonsense. There are stringent requirements to be approved in this system, and students are only enrolled as a result of the choices of parents. And Jan, as we look for clues as to how the justices are leaning, how did they react to the arguments today?
Well, I mean, Maurice, there was a clear ideological divide. The court's three liberal justices united in opposing any public money going to religious schools. But the conservatives, who are a majority on this Supreme Court, seemed inclined to allow it. They suggested that charter schools are an alternative to public schools. Parents can choose to send their kids there or
not. And also, if a state like Oklahoma is going to allow private organizations to get taxpayer money for charter schools, it can't exclude religious groups. It can't treat religious groups like second class citizens, as Justice Brett Kavanaugh put it today.
I do have one caveat. Justice Amy Coney Barrett is recused in this case. She taught at Notre Dame. She's not participating. So if one conservative changes their mind, the school would lose. Jan Crawford at the Supreme Court. Thank you, Jan. Still ahead on the CBS Evening News, Rob Marciano on dangerous storms in the middle of America. And we'll have these stories.
Journalism has become a dirty word for a lot of people, but not here at Churchill Bounds. I'm Jim Axelrod in Louisville, Kentucky, with some journalism everyone can get behind, coming up on Eye on America. I'm Dr. John LaPook. Drugs for diabetes and weight loss may also help with a type of liver disease. Who could it help? That's next on the CBS Evening News. ♪♪
There could be a new use for the main ingredient in the weight loss and diabetes drugs Wagovi and Ozempic. Dr. John LePoult tells us a study sponsored by the maker of the drugs, Novo Nordisk, found the ingredient could treat a common liver disease by reducing inflammation and scarring. So John is here now. First it was obesity, stroke, heart attacks, now the liver. What does this drug not do?
Yeah, well, you know, one way that it might be working is it decreases fat. And fat can cause inflammation, which can cause scarring. And in the liver, that can lead to cirrhosis, which can lead to liver failure, which can lead to even hepatocellular carcinoma. That's liver cancer. And I spoke to two experts today in the liver. They said this is a big deal. It could help millions of people.
John, every time I hear about a new way in which these drugs can be used, I wonder what do we know about the side effects? Yeah, I think that's a very important point. So we know there are GI side effects, nausea, vomiting, even diarrhea, constipation. But when you're having something used by millions and millions of people, even tens of millions of people, a rare side effect may take a while to come out. So even if something is one in a million,
If it happens to you, John, it's 100%. So you really need to keep your eyes open. I want us to be very careful. I think it's so important to just not be blasé about this. Look for the uncommon side effects now. All right, Dr. John LaPook, thank you. A potential storm overnight knocked out power to half a million homes and businesses in Ohio and Pennsylvania. It is blamed for at least four deaths, all of them in Pennsylvania. Meteorologist Rob Marciano is following the dangerous weather. Rob?
Yeah, it's another reminder that you don't need a tornado to have dangerous weather. Straight-line winds can do just as much damage. Yesterday, we had over 300 storm reports of damaging winds from western New York, western PA, which got the worst of it, all the way down into parts of Texas. And now the storms have reset through Texas, through Arkansas. This is a live picture in Bryan, Arkansas, south of Little Rock. Severe thunderstorm warning there. There's one in Little Rock.
as well. And we have tornado watches that are up for places like St. Louis, which is under a warning just to east of St. Louis, central parts of Illinois and Indiana. Also, tornado watches for southeast Texas, including Tyler. So dangerous weather over the next few hours in these spots. Our computer models show the storms moving off to the east and splaying out a little bit. It'll become a little bit weaker tomorrow, but more thunderstorms, potentially severe, firing up in the afternoon from Mississippi all the way up
through the Western Great Lakes. You know, guys, two of those fatalities were from electrocution. So just be aware that if you see a downed power line, always assume it's live and stay away. All right, Rob Marciano, thank you. Eye on America is next. Tonight, it's our Jim Axelrod teaching a course in journalism 101.
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Vehicles projected resale value is specific to the 2025 model year. For more information, visit kellybluebookskbb.com. Kelly Blue Book is a registered trademark of Kelly Blue Book Co. Inc. Toyota, let's go places. Overturning the Roe v. Wade decision and wiping out the constitutional rights. You've heard the headlines. Now it's time to take action. Nearly 80% of Americans agree that we should have the power to make our own decisions about our bodies and futures, not lawmakers.
Planned Parenthood is here to ensure that everyone has access to essential, high-quality health care. And they are here for the long haul. Patients count on Planned Parenthood. Planned Parenthood counts on you. Donate at plannedparenthood.org slash defend. The Kentucky Derby is coming up Saturday. It's called the most exciting two minutes in sports. And in tonight's Eye on America, Jim Axelrod tells you about the favorite in the race, the four-legged namesake of the fourth estate.
Now may be a tough time for journalism. Unless you're a horse, journalism's your name and you're the favorite for the Kentucky Derby. No fake news here. Journalism's the favorite. Yeah. Journalism's trainer, Michael McCarthy, has been in the horse game long enough to know animals like this don't come along very often. Is this horse your best shot so far at winning a derby on your own? Oh, yeah. Definitely.
Anybody who's in the horse business, this is kind of where they want to be. Which is why from the start of his day long before sunup to the workouts and baths and careful strolls around the barn, McCarthy and his team are locked down on journalism, making horse racing history. You are as focused as a man could be.
Yeah, everybody is. I'm expecting it of his groom, his rider, everybody involved with him. Everybody's got to be on their A game. Exactly. Exactly. With a chance to win the Kentucky Derby here on Saturday, you can understand why Michael McCarthy is laser focused on his horse and this track. No room for anything else. Not in his head, perhaps, but his heart. That's a very different story.
This is on a scale that's unfathomable. A story told 2,000 miles from Churchill Downs in what's left of McCarthy's neighborhood in Altadena, California. Two weeks ago, he showed us around the devastation. There's a whole gamut of emotions. You know, you're upset that your community has gone through this. You're angry that maybe some of this could have been avoided. The fires got within 600 feet of his home.
While he has smoke damage to deal with, many of his neighbors are confronting so much more. I got to believe it would be a nice little lift for some folks in your home community. Yeah, that'd be great. It's been a few months now. People are still healing. People are still without a place to live. So...
maybe for a couple hours on Saturday, we can provide them a little bit of entertainment. Quite the backstory for this Saturday's Run for the Roses. No matter what you feel about journalism, the profession, everyone can get behind journalism, the horse. Yeah.
I think we can all come together for this. The rules of journalism hold there's no cheering from the press box. But this journalism and his trainer remind us all rules are made to be broken. For Eye on America, I'm Jim Axelrod at Churchill Downs. Up next, we take you inside the White House in the final hours of a war that ended 50 years ago today.
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The Vietnam Memorial in Washington, bearing the names of more than 58,000 Americans killed in the war. David Martin was a naval officer in that war and has covered military news for CBS for more than four decades. Tonight, David reports on how the war ended with the fall of Saigon to the communist North Vietnamese. 50 years ago today.
President Gerald R. Ford meets with his National Security Council as the Vietnam War enters its final hours. A whole history of our country was coming to an end here. White House photographer David Kennerly caught it all on film. His photos, along with declassified transcripts, make it possible to replay the last act of America's most divisive war. They're all talking about this dire situation.
The North Vietnamese Army is advancing on the South Vietnamese capital of Saigon, and the president has to decide whether to evacuate all the Americans still there. And the president says, I agree, all should leave.
That was the moment where it was clear that this show was going to end. The president retires to the White House living quarters with First Lady Betty Ford. Secretary of State Henry Kissinger comes in to report it's no longer safe for planes to land at the Saigon airport. Ford calls the Secretary of Defense to order the last resort, evacuation by helicopter. A dejected-looking Kissinger returns to a paper-strewn office. There's nothing he can do. He's just waiting.
to make sure the evacuation is over and the lid is closed on American involvement. The next morning, the news is bad. The evacuation of the American embassy is behind schedule. Kissinger is hopping mad. Can someone explain to me what the hell is going on? One of those screw-ups occurred. As he later related in an off-the-record lecture to the Army War College obtained by CBS News. We lost three hours.
while we in the White House were going crazy, wondering why it hadn't started. Finally, Kissinger rushes to the Oval Office with good news. Kissinger came in to tell the president it looked like that the evacuation was
successfully wrapping up. Ford congratulates Kissinger, who hurries across the street to make the announcement. The evacuation can be said to be completed. When Kissinger returns, his deputy tells him the Marine Guards have been left behind at the embassy. Somebody has to tell the president. Well, somebody is Kissinger. The president was
really ticked off. We had to crank the whole thing up again. We had to get another helicopter in. Hours go by as staffers work the phones and Kissinger dresses for a state dinner. Finally, the last helicopter carrying the last Marines lifts off from the embassy roof. They just got the word from the Pentagon that the evacuation of the Marines went off without a hitch. President Ford is hosting the King of Jordan, but breaks away to take the call.
You can see by the clock the war ended at 8 p.m. David Martin, CBS News, Washington. And that is the news. See you on Plus. Good night.
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What's up, hoop fans? I'm Ashley Nicole Moss, and I'm bringing you Triple Threat, your weekly courtside pass to the most interesting moments and conversations in the NBA.
From clutch performances to the stories shaping the game on and off the court, Triple Threat has you covered with it all. Culture, drama, and social media buzz. We're locked in just like you're locked in. Watch weekly on CBS Sports Network at 1 p.m. Eastern or on the CBS Sports YouTube channel as we break it all down fast and fresh. This is Triple Threat, where basketball meets culture.