tv Nightly Business Report PBS August 19, 2016 7:00pm-7:31pm PDT
this is nigh win streak. stocks finished the week near their all does somet it has not .one in six year but is this rally different from others we've seen? >> watchdog or lap dog. some patient deaths are being classify ied as less seriw interpreti those incidents. the second part in our series .oni good evening, everyone. happen p pi friday and welcome. it was just barely and i mean
barely. never the less, it marks the longest string of weekly gains for nasd2010. that streak hit eight despite a slight. stocks came under pressure as expectations for an interest rate hike later this year rose. despite those daily declines, stocks remained near their all time highs. today, the dow jones industrial average off 45 to finish at 18,552. nasdaq fell one and the s&p 500 week, fractional moves with the nasdaq, remember i said barely, well, it was baw a the lower. >> despite today's winning streak on wall street, many were according to the "wall street journal," big companies are giving more of their profits to shareholders than any other time since the financial crisis. even as record low bond yields put a dividend, but are these payouts putting
companies at risk? let's turn now to mary ann with gradient investments. welcome. nice to have you here. >> thank you for having me, sue. >> i guess that is the question. does the dividend pay out pose a risk forn this market? >> well, i can say that a lot of companies are increasing their dividends. and they're getting pretty high on the payout rh owe, sometimes, even to pay the dividends, but it's have other good uses for the cash and interest rate rs low. >> so, they're not jeopardizing their balance sheets. are there any particular sector of the market where it is worrisome to you? >> you know, it could be in some of the cs an area we really focus on. and just to look at it from our
standpoint the cash that's generated from operations after their normal capital spending. and in our g-50 portfolio paying stock, we have a wealth of companies still in that 2545% payout ratio. one the coal, even with the difficulties they the ratio was 45%. >> you know, you said one of the to pa they're borrowing or dividends is they don't need the cash for other things. is that unusual in the market? is it specific to the environment that we're in now? or is that traditionally true? >> well, i don't think it's traditionally true. of companie not gone out to make a lot of cash s and
positions and agai what, a 1.5% type of interest rate for ten-year treasury, it makes more sense to pay it out to used the phrase, payout ratio, a couple of times. would you explain you one was just 45%, so that was fine. what's too high? >> what's too high. okay, so, the way most people calculate it, it's dividends divided by the earnings on a per share basis. we doept think that's the best way to look at i. we think it's better to look at the cash generated from operations. and then deduct whatever they spent reinvestment in the business. and wh so, we look at the dividend paen as a portion of the high? i would say you know, 90, 95% is too hi. especially when you're like us, looking if for companies that not only pay a nice dividend,
pay a nice yield, but also have the ability to grow dividends every year at a rate in excess of inflation. >> all r leave it there. >> thank you. comment frs the head of the san francisco fed weighed on stocks today. john williams is calling for an interest rate hike sooner rather than later and is the latest central bank officiae back on williams says waiting too long could be costly for the economy. while he is not a voting member of the policy setting company this year, he does have a long standing relationship with fed dhar, janua as at the symposium next week. the rally pushed crude to its best gai about four months. in a few months, the it's risen more than 20%. m higher isn't the same as the others. jackie has our story.
>> the bulls are back in the market moving oil prices from $39 to almost $50 in just two week's time. the primary reason, speculation that o p peck talks in a few freeze, but many are asking why different? we saw a a similar move in vienna, yet hawks did not produce an agreem. some say this time around, it's the saudi arabia factor and wlingness to agree. and saudi arabia wants to see higher prices as it gets ready to issue shares in aramco. high prices would also support a $15 billion debt. cheap oil has depete leted , p market share wars. but just this week, the iranian oil minister says the country's production is already at more than 3 million barrels a day,
almost at pre sanction levels. that makes iran less of a threat. meantime, breathing when opec is pumping at record level, won't a material impact. wants and support oil l the prices for the benefi >> i think $50 oil is possible and prob have to go anything to just have the whoeption they' d ft would be no agreement that we've seen so if you're concern about the market at these loft thety monitor guest has stock re
the very public and bitter battle o empire is over and keeps the red stones in control. we've been reporting a deal was neared with the redstones and its long former con fi don't at via >> sum mer redstone's national amusement and viacom ceo have reportedly agreed to settle lawsuits that have been hanging over the company. sumner and his daughter, sherry, coming out on top, putting to bed three lawsuits without testing redstone's mental competency, which has been called into question. sources say doeman will step
co will bermuda interim ceo through the end of september. >> this is a day for shareholders. there are bright and competent directors coming in to join this board, so obviously, sherry redsten's played a bigger role over these montes! the question n who will become the permanent ceo. w leader.ay that viacom's >> there's renewed speculation that the ceo would be a good fit d cvs and viacom could be recombinant expected to walk away with a $72 million severance package on top of the $491 million doman has brought home running viacom. >> some big nu
the cost of the company. was shakedown to get payments for these people leaving after disasterous performance. >> former ceo tom preston saying to lon and will now make it much easier to draw top employees to the co a market monitor tonight likes dividend paying stocks of the sort we were just discussing. shareholder first. last time he was on about two years aerks he recommen up 5% a shell, which with oil prices down, is 37% lower. he's at perks manager for franklin templeton fund u. why don't we begin with that stock, royal d shell which is down so much, but is still o. why are you doubling down on it?
>> yeah, i tven at lower prices and certainly, a lot of that was r tha date, you mentioned september 2014. what we like about shell is that they have a opportuniti internally to reduce costs, to reduce capital investment, ultimately to focus on improving the balance sheet and improve g projec. we reall ove a longer term period with a more normalized oil price environment, that the q attrac. >> is at the top of the list. >> i think it's inar a broad segment of market today and it's not just about utilities and telecom and more traditional yield oriented sectors and you know, with microsoft recently i think investors have had a nice opportunity to buy it below its highs. now, this is a market environment where we've been very close to all time highs. yet when you look at individual stocks like microsoft, you've had moments of opportunity to do
that. has an opportunity particularly in the commercial cloud area to really drive growth and free cash flow. >> a stock that yields 2.5% compared with 1.5 you could ar microsoft has a better balance sheet than the u.s. government. your thifi plump dividend yield about 3.5%, 3.4. >> there, i think again, it's a company specific catalyst that the management team is very focused on trying to drive strat options with their business, but also ultimately, it's a business that we think over the next several years can generate just a substantial amou with once again, a very strong balance sheet and and opportunity to kind of deploy that free cash in a balanced matter. it will be through dividends,
through modest share buybacks and ultimately, some m and. >> ed is with frankl income fund. deere has its best day in a tonight's market focus. the world's largest agricultural equipmen cost cuts helped earnings. as a result, they raised their full year profit guidance, but the local farm recession and head winds in construction equipment weighed on sales. shares soared 13% 87.32. shares of geo group and correction of america bounced back today, executives of both for profit prison operators told analysts that the pot profi this is year or future dividends. as we reported last night, the u.s. government pledged to discontinue its use of private prisons. shares soared to 23.68.
corrections corp. ro higher sales of celebrity endorsed shoes fueled by my son, the shoe retailer said demand was strong for stefan curry sneake kevin durnt kicks. shares up 11% today to 68.47. lower foot traffic speaking of feet as department stores in weak demand for skin care products. estee lauder reported a rise in quarterly sales. they gave weak profit guidance for the year. shares finished the day down 3.5% at 91.73. and madison square gardens saw its -- sales fell as the rangers hockey team which got kcked out of the playoffs this year, played fewer fwams in their home stadium. shares down 2%.
184.19. a joint investigation by cnbc and nbc new york found more than 4,000 patient deaths have been classified as less serious events in fta safety reports. it turns out health companies are allowed to label some fatalitit now, critics are question iin tn wat? chris joins us with more on our investigat. >> i think the f drda needs to investigated by the fbi. >> shelves the food and drug administration let her down when the bronx born mom was finished having children, she chose a birth control device called assure get choked up. it's the arm band. >> but she still got pregnant twice and twice, she miscarried. >> it's a shocking experience to find out you're pregnant when you're not planning on being pregnant anymore and to lose a
baby, it was devastate iing. y the fda counts fetal deaths reported by bayer. according to the agency's reporting rules, dd miscarriages are not deaths. >> i don't think they counted all the fetal death, all the ing about reporting rules. >> he call ed me, sai h died. >> yesterday, we told you about family of shelley, an epilepsy patient who died after claiming this nerve stimulater implanted below the neck caused painful shocks. since her death, her loved ones learned cyberonics, the make s of deaths, but classified them as less serious injuries and malfunctions. they both say their products have helped tens of thousands of
epilepsy and birth control patients. they insist they have reported safety issues in compliance with fda rule, but the way the rules are ininterp and enforced maybe the problem according to michael fitzpatrick. he said the fda seems to be allowing medical device companies to decide for themselves when a death is related to one o misreporting or companies, to find i think the f sai s in best patient deaths could be correctly classified as lesser events if safety reports lacked sufficient information to establish the device likely caused or contributed to the death. she also said the fda considers patients to be our first and primary customer. but some patients don't see it that way. >> i blame the fda because i feel like they are supposed to be the people's watchdog. >> shelley's family said the fda
makers.en too cozy with the the nerve stimulater was also s overruled more dwe preciou than 20 fda scientist, medical and safety officers, many of whom felt the device did noit demonstrate safety and effectiveness. s o expoert staff, dr. shults resigned from the fda. he's now join ed a consultl dev. he denied comment. his consulting firm did takish with the firm that its lob be -- of 1995. that act refer to lobbying certain executive and elective leader the green leaf website says it pr for meetings and calls and prepares
approval. since 2009, greenleaf has hired seven fda officials. we asked scott, a former depe f tied are -- >> in your estimation, did the fda more watchdog or lap dog? >> i think it's prrigorous. >> got leeb said the fda benefits by collaborating with private industry and said ethics and a commitment to protecting patients are guiding principles. >> i thi i think they're, around the world. >> for "nightly busine >> the fda is currently spending millions to upgrade its system for recording andizi analyzing
o oblems with medi mischarnlgs. cyb says its nerve stimulater does not have an ab normally high numbt deaths. they're classic, rare and very, very expensive and they're up for auction at pe. two fighters will make their long awaited return to the octagon this weekend. not only is there big money u on the line, but there's a big push to union fighters.
the fight's not until saturday, but no one conor macgregor r and nate diaz will face off in the octagon in a ufc rematch, which could be biggest fight of tea the line. it's also the new owners, wmeimg, which bought the ufc for a whopping $4 billion this summer, a record for a sports franchise, which macgregor l takes credit for. >> i had a big r and so, my contract is very, very sweet. >> his demeanor this week was at times, far quieter than last march. >> take a coffee break, nate. and by coffee break, bring me the coffee. >> back then, he was brash until nate diaz beat the odds and
macgregor r. st tuning defeat tou summer where macgreg quit the ufc, then game kayembe back and now, the bottle throwing incident. but a veteran sport s wants to talki about one employeer, the 600 or so employees, they tell n to fight, what to wear. there shou employeer. >> insurance, 401(k). >> they may end up with a big name in thko >> maybe i will help spearhead something like that, but right now, i'm focused on the macgregor business. that is ufc this saturday. >> three matches being called bad blood. the new owns who paid billions also hope it's a good bet. jane wells, las vegas.
"new the ride hailing company has tried to sell itself. the company's approach increde general motor, apple, google, amazon, uber and didi. this is the time of year when c of the world's most classic and ek pension up for auction at pebble beach in monterey, california >> it is the woodstock for millionaire motor heads. thousands of the world's wealthiest collectors rolled in to monterey this week for the d shows, races, parties and the most expensive car auctions in the world. more than 1200 cars are expected to cross the auction block. over 120 expected to sell for over $1 million, but this year's grand total of $370 million is
below last years and offers the market like art and other collectibles may be slowing after five year of rapid growth. th certainly in a lo i thk that's he will. it can't continue to go up. if it did that dramatically, th. i think there's a stabili but i think still, there are going to be some record prices. >> the most ex 39 alpha roam row. 20 and 25 million. yet, it could be topd by this 1955 jagua roadster. it's likely to be the most expensive british car ever sold from between 20 and $25 million. one u of the highest profile i
newman's porsche. he drove it in 1979, marking the biggest win of his racing career. it could sell for more than $5 million. even t not street legal. adam corolla, who owns eight of the race cars, thinks the price >> $5 million for a car in it's licar. just say what if it's going to be worth $11 million in eight years. 's also loved this car. first car that apple computers helped design the paint job and logo for the car. while it paul nutr porsche, others are calling it the first tru and finally tonight, it has been 12 year
google went public. a lot has changed at it's name, now alphabet. ed into different product lines like self-driving cars. the biggest change is its stock price, up ab since it started trading at $85 on this day in 2004. >> what a run,, speaking of run i'm sue herera, thanks for joining us. >> have a great weekend and
donald trump shakes up his campaign and admits regret about some of his harsh words. hillary clinton climbing in the polls, but can't seem to delete her e-mail controversy. i'm ed o'keefe, filling in for gwen ifill. battling slumping poll numbers, donald trump hires a new team of advisers who say let trump be trump. that trump is shifting his message with a markedly different town on the campaign trail. mr. trump: sometimes, in the
heat of debate, and speaking on a multitude of issues, you don't choose the right words, or you say the wrong thing. , and believe it or not, i regret it. ed: