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tv   Nightly Business Report  PBS  July 20, 2016 1:00am-1:31am PDT

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this is "nightly busin up. >> up in the clouds, microsoft of companies out expect with earnings report, most favorable. major media shakeup. roger ailes of fox news created a media business power house and perhaps the most profitable brand of news may be on his way out. get out the vote. why companies are courting mom and pop investors once again. those stories and more toniul good evening, everyoneomdo it's eighth straight day of
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gains and we begin with earnings from microsoft which added to the string of strong results reported by other dow components. microsoft's quarter was powered by the new cloud business. and not by the product it may be guess kn windows. the ceo has shifted the focus amid the slowing pc sales. the dow component earned 69 cents a share, a full 11 cents better than estimates. revenue also topped expectation although annual revenue fell n since 2015. still investors liked what they saw, sending shares higher in initial after hotrading. josh lipton has more. >> reporter: $6.7 billion that was the big number in microsoft atest earni reported for its so-called
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intelligent cloud segment. kurt mctern of evercore whd tha important because this is a critical part of microsoft's strategy going forward. it was also weaker than expected in the third quarter so investors wanded to see this -- wanted to see this bounce back. he notes that revenue from ajer, the cloud computing platform surged 102%. meanwhile, operating margins came in better than expected at 27%, and he says that microsoft is capably bouncing, investing beat got results from th expectations. goldman sachs, united health care and johnson & johnson johnson & johnson saw pharmaceutical sales jump 9%, thanks to the blood thinner and
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drugs that treat diabetes and prostate cancer, they raised both revenue and earnings guidance for the year. sales of j&j consumer brands thin and tylenol were down 2%, but currency head winds are easing somewhat and medical device sales were up almost 1%. j&j's strength, pharmaceutical, devices continue to provide multiple sourcesal focused broa based in human health care. that's the right way to approach can access growth no matter where it is. >> united health care group beat earnings and revenue business. it too raised profit guidance for the rest of the year, even though losses blamed on the
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affordable care act plans are mounting. another $200 million brings its projected aca related losses for the year to $850 million. mostly because of larger than expected enrollment and because thos. estimatesachs also beat ea quarterly earnings rose 74% as it moved past the legal costs that weighed down the first quarter numbers. despite beating estimates though, the revenue was still down 13%. falling from more than $9 billion a year ago to less than $8 billion in 2016. . mostly due to weakness i. so here's how those stocks performed today. johnson & johnson hit an all time high, united health moved higher as well and goldman sachs finished to the down side. well, the bar had been set low for earnings this season but wall street's t .
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bobpy sanny explains. >> there are signs that earnings might be better than they thought they would be. earnings anxiety is running high because analysts are expecting ann the u.s. economy and improvement in the ean the second half of the year. but brexit has made many nervous and that many will use it as an excuse to toss down earnings for the second half of the year but so far that hasn't happened. all of the u.s. banks have beaten estimates. in fact, goldman sachs, bank of america and citigroup had significant beats. so those strong bank earnings have lifted second quarter earnings estimates for the s&p 500 overall. ea 5%, but that's better than it was last week. ea so what the market really cares about is guidance for the second n lf of the year and t
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and lockheed martin, both lockheed cited exceptional operational and financial only 11% of the s&p is reported so far. but the early signs have been encouraging for "nightly business report" d the dow to hit a record high for the sixth day in a rod they weren't across major indices. the dow jones industrial average added 26 points to 18559. the nasdaq weighed down by netflix lost 19 points as we reported last night, netflix saw subscriber growth slow. the s&p 500 meanwhile lost three. to politics now and was about getting americ
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john harwood is there reporting for us tonight. well, of course we lifting of c passages from speech. people calling for someone to be fired. we'll hear from paul ryan, the housl hear from mitch mcconnell, shelley moore capito, so all economy tonight. he has not had what you would from him tonight? >> w to make it a little bit clearer if he's going to draw closer to donald trump or hold his ground on poey big reform and sue, on trade
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glass-steagall in which donald trump has put a revival of glass-steagall in the republican platform. that's elizabeth warren's positio paul ryan's remarks as to whether he'll move to his presidential nominee or not. >> very interesting theater on display on the podium tonight. let's talk a little bit about debated.usness even booing on the floor. well, we are going before too long have a roll call state delegations not for him? like colorado, or virginia, are they going to there's some dise within the delegations are they going to make a lot of noise like
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yesterday? that's a key question. wrapping up tonight after the family.rump nomination, w donald trump jr. and donald trump's daughter tiffany are both going to speak tonight. we'll see whether they address what do we know about what they migtoo donald .rump is, the fami and in the actual delivery of her speech, melania trump did fine lenf michelle obama's rhetoric she gotr. said we're moving on. expect them to address it. if only indirectly perhaps. >> all right, john, thank you very much. john harwood for us in cleveland. . meantime, another drama is
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playing out at one of the network's coveriy associated wi republican politics. cnbc's david faber report a result in his departure. he was sailed earlier this month r rep today say one of fox's best known anchors megyn kelly told investigators that he sexually harassed her in the past as well. fox said the investigation is ongoing and he is at work. at first reported that harassment was described in detail.e would be a big deal for the media power house which he basically built.
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julian boorstin has more. one of the most high profile and profitab fox. he's also chairman of fox tv statio his businesses are a huge piece f the media giant's 20% of total earnings before interest, taxes and amortization and his businesses continue to grow. the ad revenue at fox news channel and fox business network will grow 5.6% this year. with billi for how the murdochs handle the next step for fox news leadership. back over to you. still ahead the promise and the limitations
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home building rebounded in june, housing starts rose by 4.8% last month, driven by big gains in the west and northeast. report from the co the highest level since fe demand for single family hom a . the steady economy here in the u.s. didn't stop the international monetary fund f
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the imf sees an increase of more than 3%. that's lower than previo e main reason for the cut -- britain's vote to leave the european union. >> the brexit effects will play of many months as the e.u. and europe negotiate a new agreement. so, you know, i think one is always surprised by what stock 'rt central banks maintain int slightly upgrade its efor outlook. antitrust officials are reportedly close to filing lawsuits to block the planned mergers of anthem and cigna and aetna and human that. as first reported by bloomberg, the justice department is concerned that the deals would harm consumers and stifle competition. if both deals were to go
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through, the top five health insurers would be reduced the proposed aetna and humana is examining the d future of driving. the autonomous vehicle summit is bringing together leaders from the automotive industry to bill lebeau is in san fran >> reporter: with 14 companies including several automakers there'sng and t no doubt that the day of the self-driving car is approaching. in fact, the secretary of the vehicles and to develop the guidelines that will allow them to be integrated into traffic safely.
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but that brings up the question -- is the public ready the technology is there. people need to learn how to use it correctly. >> i think it's a new form of distraction. peoptet in many cases they're goin. so we have to as industry, also as government, and as consumers, we have to listen and read the directions, no got far away from where the directions are and doing crazy things to put your life at stake and other people's not at s comment on the u.s. investigation into the auto system by tesla. elon musk said they're working with the suppliers to improve the autopilot system and musk says tesla has no plans to disable the autopilot feature on thousands of vehicles here in the u.s. and around the world. phil lebeau, "nightly business
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report san francisco. the fallout from the volkswagen emotion scandal is far from over. the cheating lasted more than a decade and involved dozens of went all the way to the company's boardroom and involved vw's ceo mueller. the accusations are being levelled in lawsuits from new york, tt equipping roughly 11 million vehicles with emissions cheating software. united continental tops estimates and that's where we begin tonight's market focus. the airline saw quarterly revenue and profit fall, but the results were good enough to top wall street targets. united said it added a new member to its board of directors. finishedr $47.85.ular session up 14 military contractor lockheed martin topped expectations for profit and revenue, thanks in part to the increase in fighter
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rt acquisition.nd sales this prompted them to raise the guidance for to $258.96. an uptick in transaction fees drove profit and revenue higher at td ameritrade. the better than expected results were helped by volatile trading during the brexit. the shares rose 2% to $29.93. monsanto rejects buyoffs once again. $64 b takeover bid calling it quote that monsanto it's open to parties with regard to a transaction. the shares of monsanto are up to 106.87. volumes missed the analyst e yearly earnings forec.
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shares down 3% to $99.89. cost cutting efforts helped kansas cit t quarter. they saw the decline in revenue as currency head winds impacted results. shares up nearly 2% to $97.42. investors pulled more than $20 billion from actively managed funds that buy u.s. stocks in june. according to morning star that's the biggest monthly withdraw since 2008. asset management connectives have eventually -- executives said that the move into passive funds will conti the pro margin big shareholde to help .ight their battles. companies are doing everythi pl marketing campaigns for their
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votes. david benoit is a reporter with the "wall street journal" and he joins us now to talk more about the findings. david, this runs counter to what the body thinks and t activists who can sometimes cause trouble for them. but you found something some of the bigger the retail shareholder, overall t b stock holdings. but what we have seen is that because of the big holders, they have such a strong voice, when a company needs a little bit of extra support or needs a different voice, retailers tend to support the companies so they're spending a lot of money to go out and trying to get the people to vote. >> if we didn't have the ctivist investment
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investor? >> that's re really mattered was in the dupont campaign where the triants trying to get on the board there. a lot of retirees from dupont, and people in wilmington really owned the company stock. they went out and got a big chunk of them to vote and essentially swung the vote for them and helped them win. there are other examples of why you need a retail vote. the say on p t they're really important and they need kind of extra support. >> what is the percentage i guess that most nvest retailer g e proxy materials in the mail throw it out, don't vote. what is the turnout like?
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>> that's st is kind of strange is those numbers are going in the about 34%on you jus and they only vo. those numbers are trending in the wrong dire but if essentially the story fiducia- you do enough things if you make your ballot look intriguing to open, if you promise as you mentioned at the beginning csx the railroad about pledging to plant a tree in coax the people. >> but how costly are those kinds of things? i mean, you e company anded they to -- and they had to make some 40,000 calls so there are costs associated with reaching out to the retail investor as well. >> yeah. exactly. running a proxy fight when you're up against an activist or
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campaigning to get a vote passed or paying someone like a proxy getting people to vote that's not cheap. it's definitely expensive. which is one of the reasons why we should be careful. 75% support of its total shares to get a vote. so you kind of have to go out and change the map. >> davidene for the u.s. economy.
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twitter signs a deal with the nba. it does not include rights to stream the games but all shows exclusively for twitter. the second show is still in the works and both will stream on the twitter app and the website beginning in the 2016-2017 season. mcdonald's will become the first big business to make a deal with pokemon go. according to "the wall street journal," a unit of the burger chain in japan will sponsor key locations for the players of the wildly popular augmented reality mobile game. the official announcement can come tomorrow, along with the game launch in that country. the engine behind job creation, but new businesses aren't being created like they once were. according to a new report, the
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rising entrepreneurship has reversed. kate rogers is following this story for us. what did the report find? >> nice to see you both. this is ca global entrepreneur monitor200,000 respons around the world. there was a 2% drop in the entrepreneurship to 12% from 14% in 2014. so it's important for two reasons. as you mentioned this had been rising for four years so it's reversing a trend that we do like to see. co creator even if you're working your full-time job and many surveys don't count you until you w business. so typically their numbers are higher and this year they fell. >> why are start-ups down? >> it's all op the researc said that in 2014, 51% of americans creating new start-ups perceived the opportunity to do so. that fell to 47% in 2015. something th sho
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small businesses and optimism has been wavering. i hasn't been climbing. when you get that coupled with start-up creation being down that created a red flag. >> any good news? >> i'm not a bearer of bad news, so of course i can give you good news. number one, african-american small busio caucasians at just 12%. women entrepreneurs between the ages of 35 and 44, their stats rose to 15%. typically when you're on your second or maybe third career you have more success as an entrepreneur. and fail again. when you're in the sweet spot if your 30s and 40s you have more of a chance of success and we love to absolutely. shark tank's kevin o'leary only invests in women run businesses. >> he swears by it. much of his portfolio will be women owned companies because
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they do so well for him. >> great to see you. >> thanks. to read more about the tocline in entrepreneurs i'm sue herera. see you back here tomorrow
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