tv Nightly Business Report PBS October 6, 2016 7:00pm-7:31pm PDT
>> announc this is "nightly with tyler ma and sue her if you're watching and living in an evacuation zone, you need to leave now. if you're in an evacuation zone, get out. >> hurricane matth barrels towards florida. it could be one of the most expensiv storms in u.s. history. and inflict billions of dollars of damage to coastal holes. we'll have the latest. major shift. walmart reined in its profit market as it spends a lot more to look like an e-commerce company and less like it does today. >> getting ahead. why millennials may have a reason to whine in the workplace, tonight on "nightly for thursday, october 6th.
good evening, everyone, welcome. hurric is massive and it is continuin its march toward the southeaster part of the united states. president dec a st of emergency in florida. the governor of that state ordering millions evacuate, and saying millions more could and almost certainly will lose power. the waves are already picking up. and the economic disruption has started. busine shutt their doors. theme parks closing. there are gasoline shortages. and that is not all. morgan brennan reports tonight fromay barrels toward the ane eastern coast of florida, presidena sig a declarat of emerg for the state. more than a million and a half people are being urged to evacuate. and through the region, more than 2 million people, the most we've seen since super storm sandy. throughout day, florida governor rick scott has been urging people to evacuate if they are in unsafe zones and to
take the storm very seriously. >> we should not be putting people's lives at risk because you made the foolish decision not to evacuate. >> reporter: folks further south in florida are already without power. florida power and light, one of the largest electric utilities in the country, expects 2.5 million people to be without power on its 10-million-custo network. the also warning some of those outages could be for long periods time, as the uti has to repair parts of the grid. here in daytona beach, we see many businesses boarded up and sand bagged and people leaving. this is considered an evacuation zone that goes into effect at sunset. e courts up and down the coast that are closed with cruise ships and container ships being rerouted. in stores, shelves are picked clean at everyone from home depot to target.
many gas stations along the coast are experiencing fu shortages with the average price of a gallon of gas ticking up several cents since tuesday. theme parks have closed down including disney, only the fourth time in disney's history in orlando it's closed, the last time in 2004. much too soon to know what the damage and thus the economic impact will be from the hurricane. however, for every million people that are evacuated, that results in $100 million in losses. fo all that are watching and in the area, please be safe. for "nightly busine" i'm morgan brennan in daytona beac florida. as millions flee the path of hurricane matthew, they leave their homes behind. homes that will no doubt sustain considerab damage from the fierce winds and even worse, from the rising water. diana olick t a look at just what's at risk. >> reporte no matter how much floridia shore up and board up, there will be damage to the
state's homes. most notably from the storm surge, which could reach nine feet. core logic ran the numbers, and they are staggering for a category 4 hurricane. in florida alone, 954,000 homes are at risk of storm surge damage. the reconstruction value of these homes is just over $189 billion. in daytona beach, which could get the worst of it, there are 97,000 homes in its path with reconstruc value of over $19 billion. storm moves up the coast, 138,000 coastal homes in georgia lie in its path. reconstruc costs there of $30 billion. by the time it gets to south carolina, forecasters expect matthew will have weakened to a category 2 but 124,000 homes are still at risk of flood damage with $32 billion in reconstruction. the numbers are considerably higher today than they were when hurricane andrew hit in 1992.
florida was the epicenter for the housing boom and bust, and constructi there is strong again now. more than 200,000 new homes have been built in the last decade, accordin john burns real estate consulting. and that doesn count the many, many new residential towers still sprouting up in miami. and while building materials have improved in the last decade and new codes require things like shutter systems and high impact glass, very little has been done in terms of constructi engineeri to help mitigate the damage from these storm surges. m diana olick in washington. insurance companies with exposure to florida were down sharply in wall street trading today. th insurance companies, mostly small cap stock, they all fell 7% or more with hci group down the most, off more than 12%. seve of the country's largest insurers, you may recall, pulled
out of florida after the most recent storms. airbnb is offering free rooms to those in florida and south caro to those affected by the hurricane. the company has activated its hurricane response tool. florida governor rick scott made mention of that service in this mornins briefing. stocks started the day smolt lower and the dow dipped on shares of walmart. more on that in a moment. thr indexes climbed back to end mostly flat. dow jones dow jones s off 12 p. nasdaq dropped nine. and the s&p 500 managed to eke out a gain with a rise of one point. more on walmart, which is making a bigger push into e-commerce. the world's largest retaile warned investo that this long
term plan will be costly and will weigh on earnings over the next couple of years. courtney reagan has more on walmart's shift. >> reporte even though 90% of walmart's stores, the world's largest retailer is opening fewer of them over the next couple of years than initially planned and plowing more into its e-commerce business. today it host analysts at its headquar in arkansas. the big focus was on growing digital sales. >> we have strength going on in the stores. we know we ne to invest in e-commerce to get to scale. it's about the longer term for the company. and from a position of strength, we're deciding to do it now. >> reporte buying jet.com is a key pillar of walmart's e-commer strategy. today investors heard from jet's founder for the fir time, ex his company's dynamic pricing model that claims to get consumers the lowest price. >> in realtime we'll show the
consumer what savings are of buying one product over another. >> reporte he's 17 days into his new job as head of walmart's e- as he works to leverage walmart's retail success into walmart.com. >> one of my responsibilities is to try and protect mark and jet from the walmart bureaucracy that exists so they can continue to move with speed, continue to innovate, and run ununencumbere. >> rep walmart's online sales have fallen short of its aggressi 20 to 30% growth goal so far this year. but today executives said walmart could hit the target in the back half of this year, and the next two years. moody's analyst charlie o'shea is so sure the retailer can get there but says even if walmart achieves 20% growth online, its increased investment in e-commerce would be justified. "nightly busine" i'm courtney reagan.
federal reserve vice chair st fisher said low interest rates may reflect dee seated econ problems and not just temporar factors. in a new york speech, fisher sa that the economy's higher interest rates is dependent on not just fed rate action, including better education and more effective regulation which could promote faster growth in productivi pav the way for higher interest rates. some positive news on the labor market just one day ahead of the key monthly employment report. the number of americans filing for unemployment benefits fell to a near four-decade low, to 249,000. that decline is an indication that the labor market is tight and that employers are not that willing to fire workers. as hampton pearson reports, both wall street and main street will be paying close attention to
>> reporte when the labor de releases its septembe jobs report tomorrow, it's expected the economy added 170,000 jobs with the unemploy rate holding steady at 4.9%. but private sector hiring slowed in september, just 154,000 new hires, according to payroll processor adp, the slowest monthly incre since april. at the sam there were near 6 million job openings. >> we have a record number of open job populations. it's going to hard to fill them. we're coming into full employment job growth is going to slow and this is part of that process. >> reporte today the labor de reported first time unemploy claims fell to 249,000 last week, the lowest in more than 40 years. there's also upbeat news about am companies. with health care and the restaura indus leading the way, service companies grew at the fastest pace in nearly a year. the sector counts for nearly two-thirds of the jobs in the economy. however, wall street analysts
are split on how the fed will read the jobs report when it comes to raising interest rates. >> you've got a committee that is solidly split between a few people who would rather just not raise until they see some obvious harm from being at zero or near zero and other guys who want to raise rates today. >> if something happens, it's always going to be a little later. there's always something. >> reporte tomor is the first of two jobs reports before the next fed meeting and the presiden election. we'll have to wait and see if there is an october surprise where monetary policymakers or for the presidential candidates. for "nightly busine" i'm hampton pearson in washington. as we've been reporting, the labor market faces two major challenges: stagnant wages and a skills gap. but a new report today may shed some light on the issues. steve liesn explains. >> reporte a vast study of the u.s. labor market by the pew research center released today
finds wages of younger workers have acty decli compared to 1980. the wages of all workers have soared. th study includes a survey of 5,000 americans and an analysis of decades of government data. using 2014 dollars, the study found those age 16 to 24 have seen their incomes decline older workers have seen their wages increase by 37%. over the time period the median income of all workers rose just 6%. that was powered by two groups, those with four-year college degrees and women, who saw 32% gain in income versus a 3% decline in men, closing the gender pay gap. stagnant incomes is a big reason for widespread political dissatisn acr u.s. and other developed countries, one that has the attention of the world bank. >> the only group whose income did not rise between 1988 and 2008 were really the lower middle class and high end countries, from the 75th to the 85th percentile, their incomes did not rise. their complaints, their anger i
think is real. it's based on the fact that they did not enjoy the benefits of globalizn lik everyone else. >> repor the pew study found those with rising incomes or those with the highest education and the most skills. >> they have more education, more experience, more training. and at the same they want people with different types of skills. they want people with social and analyticalskills, lesser demand for people with physical skills. >> reporte tha could explain the young versus old gap in wage gains. mo and more younger americans are in school, gaining the skills the labor markedemands. many older workers retire. those who remain working could be better paid because they have the needed skills. fo now, the labor market wants more skills. luckily, it also shows americans know they need those skills to get good paying jobs. for "nightly busine i'm steve liesman. ahead, do you hold some of e hottest sectors of the year
in your portfolio? they may be starting to coo the head of the internatio monetary fund has something to sa about deutsche bank. christine says the sooner germany's largest bank reaches a settlement with the justice t better. she said the deal will bring certainty as to what the bank will owe. deutsche bank ceo says he does not plan to raise capital and says he expects regulators to scale back their initial $14 billion request. united health care is
accused of gouging customers. three custo sued the company saying it charged co-payments for prescription drugs that were significan higher than the prices it negotiated with some pharmacies un its agreement, the pharmacy gave the extra money back to unity health care. according to reuters, unitedheal said the pharmacy benefits are administered in line with the coverage described in the plan documents. > facebook's oculus unit is trying to garner enthusiasm for its virtual reality goggles. after some stumbles, the company is hosting a conference for deve with a goal of becoming the dominant player in the next computing platform. julia boor offers a peek at our computing future from san jose, california. >> reporte facebook's oculus virtual reality technology has be touted for its potential for gaming. but now it's going social.
facebook ceo mark zuckerberg announci ways people from all around the world can interact in the same place. up to eight people can meet up in a virtual space with a new feature called parties. you can play games or watch movies in a shared space called rooms. and now people can create avatars and even share facial expression >> the magic of vr software is the feeling of presence, right? the feeling that you're really there with another person or in another place. and helping this community build this software and these experiens is the single thing that i am most excited about when it comes to virtual reality. as oculus faces growing competiti from google, playstation and others, it just announced its high end rift headset will work with lower cost computers. it gave a sneak peek at a prototype for an entirely new line of headsets that would be as high quality as the rift without requiring any computer.
oculus's ceo would say when the new line of headsets would be available or how much they would cost. but he says the company is focused on serving a market of millions of people down the . >> there are a lot of vr enthusias out there. this is still early days for vr, but we've seen a huge amount of adoption of vr. this is a dream so many people have had, that one day we would step into that virtual reality world. and now it's a reality. >> reporte to make sure there's plenty of content to experience oculus is doubling down, announcing it spent $250 million on content and planning on spending another $250 million to build the ecosystem. julia boor for "nightly ss in san jose, californiathey are is shutting and facilitie and cutting 40% of its workforce. e compa set out to revoluti the blo testing industry and was valued at $9
billion two years ago. then experts found inaccuracies in the blood tests. walgreen's cancelled its contract. and the government began to scrutini the company, hard. theranos says it will now focus on a product that will commercial miniaturized laboratori we begin tonight's market focus with twitter. according to industry website recode, apple, disney, and google will likely not bid on twitter's business. but as we told you last night, "the wall street journal" says sales force may be a potential suitor. shares of twitter fell 20% on the news to 19.87. semiconducto equipment maker kla tencore and lan research are scrapping their merger amid antitrus challenges from the justice department. kla says it will raise its quarterly dividen by 4%.
kla was up nearly 1 is% to 71.79. shares of lan research rose 4% to 119. boeing saw orders for its airplane fall in the latest quarter compa to a year ago. the decline was decli by lower demand. shares of boeing fell fractional. american expres was downgraded to th rare rating of reduced, effectively a sell, saying the credit card company's weaker than expected sales and higher than expected costs could lead to amex cutting its guidance. from $62. its price target to amex shares were off nearly 4%. costco, the company that dented american express by ending their card relationship recently, posted a 1% rise in same store sales in september, topping analysts' estimates. the discount retailer said overall sales rose 3% in the
latest quarter. shares finished the day down 51 cents to 149.47. hill brands posted better th store sales in september. the parent company of victoria's secret benefitted from strength in its bath and body works brand. elle brands up 1% to 71.16. a different story at gap. the apparel retailer said its sales fell 3% and a fire in the new york company's distribution ce pressur results. however, gaps' pants on fire decline was less than wall stre expected. shares initially rose after hours, add to go a 1% gain during the regular session. shares finished at 22.78. investors may have noticing a curious thing happening in the market. the sectors that started the year well are now doing poorly. bob pisani explains the shift under way in the market. >> reporte it's the new quarter and t marke are
rotating. s new leadership. hot right now, tech, energy, and banks. interest rate sensitive stocks like utilities, telecom, and reefs. rising interes rates are helping banks and hurting interest rate sensitive stocks, which had been seeing valuations move to unsustainable levels. second, this improving economic news is helping cycl stocks. third, an oil rally is pushing stocks higher. semiconducr ss are pushing the tech sector higher on heavy demand for chips in personal commun devices. for the home, new market leaders, banks, technology, and oil and gas companies are up double digits since the third quarter began. utilities' telecom stocks are down dou digits. the biggest mover of volatility is the fed. bulls are hoping any volatility around a fed rate hike in december may be offset by strength we've seen in
financia and technology. for the moment, that scenario is holding. fo "nightly busine i'm bob pisani coming up, why the activity tracker is going to the do here's a look at what to watch for tomorrow. as we reported, the employment report for september is due out before t opening bell. a number of federal reserve presid and governors are speaking, including cleveland fed's president and the governor speaking as well. we'll find out if americans are taking on more or debt with the release of the consumer credit report. and that is what to watch for
friday. > v plans to begin working with drone makers to connect the flying devices to its network. verizon says the plans would let drones connect to the internet while in the air and stream videos live. accohecompany, there are also commercial applications d wildfir examination.ections snap, the parent company is reportedly working on an initial public offering that could value it at $25 billion or more. as first reported by dow jones, the ipo could take place as early as march. snapchat allows you to send videos and pictures, both of which self destruct after a few ses of viewing them. they look to exceed their 2016 revenue forecast. activi trackers have a lot of people keeping on top of their health and wellness. now the wearable market is entering the annual kingdom. smart technology companies are
now targeting pets. as aditi roy tells us, it's an increasi lucrative market. >> reporte the wearables market has literally gone to the dogs. this is the link akc, a smart dog collar. the data is on this module. all you have to do is snap it in like this and put it around your dog. a smartphone will track his activity. itt the latest new product to hit the hot new pet wearables market. astor is an australian cattle dog who loves to go on walks. her doting owner would love to know where she is and what she's doing when he's not there. that's exactly the type of pet owner link is going after. >> it's not a demographic target, it's more of a psychograpc target, consumers and dog owners who think of their dog as a child. they would be the early adopters. >> reporte the link akc is the first pet wearable funded and
marketed by the american kennel club. it monitors how much activity your dog is getting, has a remote controlled light to help you find him in the dark and shows you where he is at all times. >> it's similar to a cellphone that you would give to your kids so you have the peace of mind that you can always get enough with them or know what they're up to. this is like having a cellphone for your dog. >> reporte t market opporty is large and growing. in u.s. alone, pet owners are expected to spe more than $60 billion on their furry companio this year, according american pet products associatio and the global pet wearable market is expected to reach $2.3 billion by 2022, according to grandview research. link has some catching up to do. its competitors include whistle and fit bark which sell their wes on ambassador. the link costs $199 with a
monthly subscription. the company hoping its collar fido.e a popular stockin adita roy, san francisco. >> what did you just say? >> you have to divide the number of steps by four. >> who knows? that does it for us on "nightly for tonight. i'm sue herera. thanks forus. >> and thanks from me as well. i'm tyler mathisen. have a great thursday even