tv Nightly Business Report PBS March 2, 2016 1:00am-1:31am PST
this is "nightly business report" with tyler mathisen and sue herera. >> divide deepens. the fight between apple and fbi moves to capitol hill. now lawmakers are starting to take sides. super tuesday. for stocks the dow soars. the nasdaq has its best day this year as march comes in like a bull on wall street. crown jewel. why today's texas vote is the biggest prize for presidential hopefu hopefuls. all that and more on "nightly business report" for tuesday, march 1st. good evening and welcome. the bulls charged wall street to start the month of march. one of the biggest contributors was apple. today, that company's lead
attorney made his way to capitol hill to make his case against the company and the government and fbi to get apple to unlock an iphone used by one of the san bernardino shooters. it wasn't just apple that had the micrmicrophone. do did the fbi director and the war of words intensified. >> the fbi is not some alien force. we are imposed by the american people and use the tools given to us under the law. it's our job to tell people there is a problem. everybody should care about it. everybody should want to understand. what does that mean and what are the costs of that and how do we think about that? >> some of you may have an iphone right now. if you think about it there's probably more information stored on that device than a thief could steal by breaking into your house. the only way we know to protect that data is through strong
encryptions. >> amon, how was the fbi director received on the hill today? >> he was received well. a number of the members went out of their way to praise him even though others were criticizing him. this is not one of those issues that slices and dices. it's an election year. it's likely that nothing will happen. you get the sense that some of the lawmakers would like to make law here that would overtake the 1789 act that the government is using here. have some more modern law that would be in place. >> what else did you hear from him today? >> he started off in a defensive position. he said apple doesn't have any sympathy for terrorists and it has great respect for law enforcement. apple came into the hearing with the wind at its back because of
the court ruling in new york state yesterday. a judge said apple was right to resist the government and the government overstepping its boundary under that 1789 all risk act. apple had home court advantage giving the court ruling had been going in their direction. >> i spoke earlier today to senator mark of virginia who was with a republican member pushing for a commission to look into this matter of privacy. he said that he really wishes congress had got its head around this problem years ago. we're now sort of late to the party on it. >> congress is always late to the party when it comes to advanced technology. a lot of members of congress are not the most technological depth. it takes them a while to process this and understand it. that's what's so frustrating to law enforcement. they want to move quickly and
get access to this phone. they want to know who else is san bernardino shooters were talking to, where else they were and what they were doing in some of the missing hours here. this process is going very slowly and could take a long time before they get access to any information, if any at all. >> all right. thanks very much. the dow soars on this first trading day of march that starts the best time of year for stocks. higher oil prices put investors in an optimistic mood. by the closing bell the dow jones rocketed 348 points. the nasdaq rose 131 points, the best day this year. the s&p 500 added 46. the second best gain of 2016. as for crude, prices settled above $34 a barrel helped by word that russian firms will not increase output this year.
mary thompson has more on this rally. >> reporter: the month of march coming in like a lion on wall street. stocks surging as higher bond yields gave a lift. gains in oil helped send the dow up over 300 points. tuesday readings on construction spending and manufacturing activity were not blockbuster numbers, they were stronger than expected. giving the bulls another aren to buy. the markets gained also coming as the european markets rallied on expectation that the central bank will be unveiling more stimulus to the sluggish economy some time next week. tuesday's strong rebound welcomed though traders would like to see further confirmation. from the new york stock exchange, i'm mary thompson for "nightly business report." it may have been chilly outside, but february was a hot month for auto sales. consumers returned to showrooms thanks to a healthy economy and low gas prices.
in fact, february sales soared to a 15-year high for that month of the big three, ford sales up 20% beating estimates. chrysler an increase of 12%. gm's results disappointed with a decline of 1.5%. phil take a look at what drove demand. >> reporter: america's love affair with suvs, trucks and crossover utility vehicles shows no sign of slowing down. ford, fiat chrysler and nissan posted better than expected sales thanks to strong suv demands. then there's general motors that surprised analysts with sales falling 1.5%. well below the gain in monthly sales many forecasted. what happened? gm says it decided to cut less profitable fleet sales. those are sales to rental car corporations and agencies. as gm cut the business, ford
stepped in with more than a third of its business coming if fleet sales. regardless of the buyer, february showed suvs and pick ups remain red hot. jeep sales shot up 23%. while toyota had a second straight month of record truck sales. keep in mind, january and february are the two slowest months of the year for auto sales. while business that been good, few are excited. that could change as we roll into spring where strong sales could set the stage for another record year in the auto industry. "nightly business report," chic constn spending reached its higher level in eight years. weakness in home building was offset by non-residential activity and government products. congress reported a 1.5% increase in january. an indication to some that the economy regained momentum at the start of the year after a sluggish fourth quarter. due to today's better than economic data set the stage for
a strong job's report friday? that's the question. steve has the answer. >> reporter: while the nation focuses on the presidential race, markets keeping a close eye on the economy with a major weak for economic data that culminates with a critical job report. the first data was mildly positive today. car sales and construction spending were strong in the downturn and manufacturing didn't get worse. the manufacturing beat wall street expectations and rose to its highest level in five months. it's barely below the expansion line. it's now only contracting a little bit. the big data is yet to come. wall street is still banking on a strong february jobs report. the consensus is for 200,000 jobs. that's up from 151,000 in january. the unemployment rate expected to remain steady at 4.9%. the optimism was buoyed by the
paychecks small business index today. the good news is we are seeing it two months in a row in job increase and small businesses under 50 employees. it's across the country. we were seeing under 2% wage growth for many months. now we're seeing it closer to 3. we have seen the wage per hour go up pretty strongly here this the last couple of months. the concern is job cuts announced in the recent earning season from the big companies lie in front of the economies and could dampen job growth in the months ahead. recent volatility and growth concerns led bill dodley to suggest he's not in a rate hiking mood. he said the balance of growth may be starting to tilt slightly to the downside. today's market rally, which began with the down beat comments, accelerated with the better economic news. that could suggest the market is more interested this better growth rather than more fed
stimulus. for "nightly business report," i'm sssve lesman. still ahead, the simple but shocking reason why the u.s. throws away billions of dollars worth of cancer drugs a year. the stakes are high this super tuesday, and no place is that more true than in texas, which is one of a hand full of states hosting contests in the biggest day for the 2016 primary season. as hampton pearson reports from tuesday, the focus is on texas
for good reason. >> reporte >> after a lot of careful deliberation, i decided to vote for myself. >> reporter: he had the luxury of casting his super tuesday ballot in his houston precinct. crews told a media horde he expects to win and is ready the take donald trump, one-on-one. >> it's all about delegates. donald trump is likely to have a whole bunch of delegates. we're likely to have a whole bunch and i think there will be a big drop off for the rest of the field. >> reporter: texas is the bigst super tuesday prize. 155 delegates up for grabs on the republican side. to get all the delegates, cruz needs to get 50% of the vote. voe voters we talk to are fascinated and furious w donal trump. >> he's the one that will turn this country around. he has no endearment to anybody. the more the people talk bad
about him, the more people love him. >> we do not know what he stands for because he doesn't tell us what he stands for. he just says he's going to make us rich again. make us great again. he puts platitudes out there without detail. >> reporter: a texas size record turn out is expected in the gop primary with more than a million votes already cast in early voting. for nightly business report, i'm hampton pearson in houston, texas. we're happy to say that john harwood is here on the set to talk more about this evening's voting. the focus, rightly is on texas, and ted cruz. let's talk about mr. rubio. does he have to win something tonight to remain relevant or does it matter? >> he doesn'to. he's not claimed he's going to win any state tonight. he would love to breakthrough and make some progress and win delegates this places like
virginia and tennessee. the real last stand for marco rubio will be on march 15th. when florida has a winner take all primary. each of them to stay in the race has got to win their home state. tonight ted cruz has to take care of business in texas. >> what about on the democrat side? where does this leave bernie sanders? if as expected, secretary clinton wins the majority of states or the majority of delegates. >> it's quitely she will do both. she's way ahead in most places. bernie sanders has vowed to continue his campaign. he's running not that far behind her nationally. he's got an audience. he can take it to midwestern states that follow like ohio and michigan which comes on the 8th and florida as well. he's going to sustain his campaign. his chances for the nomination don't look great at this moment. >> can cruz win in other states beyond texas? >> he hopes so. this is the sec primary that
he's talked about all along, the southern states, where the most conservative voters are. he needs to show strength. he's trying to in alabama and oklahoma. he took a blow when jeff sessions was endorsing donald trump the other day. that's an ally of ted cruz in the senate. that hurt him. we'll see what he can come up with tonight. if his voter identification and targeting program can succeed, maybe he will surprise and win more delegates than we think. >> there's been talk of the fractured republican party because of mr. trump and the influence he's had on this campaign. how do they repair that if it is fractured? >>. >> it's very difficult to repair damage of the nature he's suffering now. if you look at the people condemning him in harsh, moral terms. meg whitman, christy whitman.
mitt romney said it was disgusting that donald trump had th not condemned kkk the other day. those present a moral divide that makes it difficult for trump to build his coalition. >> there was supposed to be 3,000 e-mails released last night of mrs. clinton's. so little had been heard about that. did they get released. people looking at and the argument against her jeopardizing national security is that she was too cavalier in using on this private server. whatever the strength of that case it was not heightened by the release. >> of these particular e-mails? >> thanks. have a good long night.
honeywell drops its bid for united technologies. the bid was removed after utf said honeywell participated in talks. it would never be approved by anti-trust regulators. shares gained more than 4%. barclays says it will sell its african subsidiary and cut its dividends in half. they standby the difficult decision to close the uk banks non non-core business and wants the company to move forward. >> we need to get restructuring behind us and focus on the core franchise of barclays. it has investment banking
business. >> shares fell nearly 6%. dollar tree said sales rose in its fourth quarter. that wasn't good enough to meet analysts targets. they missed on earnings citing impacts from the strong dollar. the company sees earnings missing estimates and says it expects same store sales to stay in the low single digits. the luxury retailer kate spade saw revenue rise but despite beating competitors they missed estimates. they were up 11% to $21.99. yahoo's annual 10k filing shows the tech giant might need to write down tumblr. it's the blogging company it purchased for $2 million. last month yahoo said it was writing off $230 million of
tumblr's value. yahoo shares rose 3% to 32.80. shares of tesla went the other way. they fell. citron research said it was shorting the auto maker stock. last month tesla said it expected to deliver between 80 an 90,000 vehicles in 2016. tesla shares ended the day down at 3%. $3 billion worth of cancer drugs wasted every year. according to a new study it happens for one reason. they package single dose viles that contain more medication than patients need. the times reporter joins us now.
>> as i understand it, this viles are larger to accommodate the larger patients, the 6'2" guy that weighs 250 pounds. that's the only way they are packaged. if you're a smaller patient. you end up not -- you're paying for medicine that you never get a chance to use. is that correct? >> right. if you're getting cancer treatment right now and the likelihood, you don't know this is you're buying this extra, extra large quantity of cancer medicine. they take a bit out of the vile and chuck the rest of the vile out. >> because they can't reuse it for safety reasons, right? >> they can't reuse it. you're not, not only is your insurance paying for it but many people have drug co-pays. these drugs are thousands of times worth their weight in gold. they are extremely valuable. often times the co-pay for the
patients can be a few thousands dollars. the new price for cancer drugs is about $190,000 a year. 20% of that, which is the standard co-pay can be $40,000 just for the co-pay. if you're a small woman, there's a huge share of the $40,000 that you're paying out of your pocket is going straight into the trash. it's real concern. >> you use the phrase thousands of dollars that cost to invent and produce, yet they are throwing them away. why don't they bottle them or provide them in smaller viles so the 6'5", guy can take one, two, three viles instead of just having one? >> the companies themselves sort of say they are offering a value by just having one sort of size.
some companies suggest that if they offer their drugs in more than one vile size that it's possible that nurses could confuse things and there could be a safety issue. the problem with that argument is there's lots of medicines that the companies provide in multiple vile sizes. remember this past year when there was a great controversy. they jacked up the price of a certain drug by 50 fold. the whole controversy involved about $200 million. merck with its cancer drug just by changing the vile size will make ten times that amount. it's a huge issue. >> i think what's also interesting about your story is the medicines are delivered in smaller viles in europe. europe does not have this issue.
>> that's exactly right. >> the government is more involved in the negotiation of drug pricing. is the u.s. going to start paying attention to that particular method? >> the problem is that the fda has they ever been given any sort of authority from congress to even consider cost. when i talk to the fda and it took a while to get to this answer, the fda says we don't care about waste unless we believe it's going to lead to safety issue. the vile sizes have to be huge and it has to lead nurses that maybe they could treat several patients out of a single vile. the fda doesn't want to do that for safety reasons. if you want to sell a vile that is good enough for actually in the story, it's a 6'6", 250 pound person, the fda is not going to argue with you again because they don't think about
cost. either somebody needs to give the power to the fda to consider costs or the medicare program, which pays for much of these medicines for taxpayers has to tell drug makers we're not going to do this anymore. >> it's a great article to read. very insightful. thank you for joining us. >> coming up, location, location, location. why luxury real estate listings in some areas are stalling. 26 starts with a swift kick in the gut in the stock market. it's the lower equity prices that may be playing into lower sales of luxury homes.
>> reporter: the best is his and hers bathroom and his and hers closet. the best is this $5.7 million d.c. listing had an offer in barely ten days. >> demand is higher even though the stock market has gotten in the way and snowstorms have gotten in the way. i think demand is there. people are feeling very good about the economy. >> reporter: that may be the case in high end d.c. homes today. >> this is hers. this is hers. this is literally the "sex in the city" closet. >> reporter: it's not the case nationally. it's only an exclamation point on the strong correlation between the stock market and sales of million dollar plus homes. the two did diverge in the housing boom but that had as to with loose credit. >> coming out of recession the s&p index doubled over the next six years and so did high end
home sales. >> reporter: more recently since its peak the s&p fell since mid-february. that was matched by a 15% decline in the share of million dollar plus home sales. in new york city especially but also in san francisco where the local economies are reliant on financial markets, luxury home sales are slowing and supply is rising. in southwest florida where the market is fueled by wealthy retirees, luxury sales have stalled. >> the high end is impacted by equity markets but also by economic base. >> reporter: it has a much more steady demnominator of government. they are buying homes in force. >> i think the stock market is good for my business. >> really? >> i think people are going to really think about divesting a little bit and putting into something they can enjoy.
>> reporter: in other words, bricks and mortar over bold and bare. >> before we go let's take another look at the rally on wall street. the dow rocketed 348 points. nasdaq up 131. best day so far this year. the s&p 500 added 46. >> on that night, that's it for "nightly business report" tonight. i'm sue herera. thanks for joining us. >> thanks from me as well. i'm tyler mathisen. have a great evening. we'll see you right back here tomorrow night.
everybody's doing it, come on! >> narrator: belva stone may seem like an ordinary 27-year-old but three nights a week, belva dabbles in the pre-orderal, instructing other young women in the ancient art of poi. tonight we visit the frontiers of the dance world, where fire dancing is just one of many ways that the ancient and contemporary are merging to create new forms of bodily expression. in our first story, we explore the mesmerizing art of butoh, with ledoh, one of the bay area's leading practitioners. >> there's something about the rawness in it, and something that hits us in t