tv Nightly Business Report PBS January 4, 2017 1:00am-1:31am PST
. this is nightly business report with tyler mathson and sue herera. patience first and we want to deliver the highest quality care. >> the goal of creating and sustaining value is all about putting patient into the center. the purpose of this organization is to help people get back to what they need and love to do. >> new year, new gains. the rally of 2016 sprints into 2017 with triple digit gains. tonight, how to protect your profits and still leave room for
more. switching gears. ford cancels plan to build a plan in mexico as president-elect trump talks about a big border tax. >> there are things you can do to shore up your retirement savings. tonight on "nightly business report." >> good evening. help a new year. the stock market got off on a good foot for 2017. equities rose this first major trading day of the new year. early in the day the dow came close to the 20,000 level, flirting with it as did it the last couple weeks. as oil prices, it closed at 19,881. nasdaq was up 45. and the s&p 500 advanced 19. rising on the first trading day of the new year for the first time since 2013. with the sharp and steep rise in
the stock market, many investors are asking one big question. will this be the year of the bull's big finale? >> stocks are showing new life as 2017 gets underway. the major u.s. index has hit record highs starting in july after moving sideways for more than a year. and confidence has surged among investors and consumers. while they seem to have some momentum, investors should probably view any further gains for stocks as a spirited latter phase of the bull market. not the phase of a multiyear boom. some talk about it like the reagan era in the 1980s when the new bull market helped revive capital i, the donald trump administration will begin against a far different back drop. the s&p 500 is up some 230% since march 2009. the index has had a positive return in even of the past eight calendar years.
one shy of the nine-year streak in the 1990s. while growth expectations are perking up, stocks now appear fully valued compared to profits. even with a rebound as expected. all of this as it might an euphoria phase the upturning confidence from bonds into stocks late last year are hints that such a trend might be underway. of course, there's no signs pinpointing where we are in the life cycle. the economy might simply continue grinding slowly ahead and carry stock prices with them. or perhaps inflation fears a strong u.s. dollar and possible trade tensions could unnerve world markets ask derail the trade. however it turns out, it is probably best not to expect smooth gains for stocks which after all have been doing quite well even as the public debate
has focused on the economy's weak spots. for nightly business report. how do you frequent gains that you've seen in your portfolio? the chief investment officer of the wealth management firm creative planning. welcome back. nice to see you again. >> great to be with you. >> what is the best strategy? a new year but not necessarily a new market. >> right. it means. instead of trying guess when the u.s. will stop running the strong and when neal will turn. you don't wait for the end of the year. you were doing in it february. buying energy, small cap stocks, international stocks. the u.s. has been doing better. those were very weak. and if you did that, you were
greatly rewarded and you will be rewarded over time. if you're doing it now, you're starting to look at maybe taking some of your u.s. profits and looking overseas a little bit. >> so buy stuff that is not participated quite as much as other sectors. you know, peter, i hear an awful lot of commentators these days saying, hey, the market could continue to run here another 10%, another 15. whatever. we're going to have the prospect of lower taxes. less regulation. maybe more infrastructure spending. when everybody starts to say and think the same thing, that's when i start to worry. what are the possibility that's something might get in the way of this sort of clear sailing path? >> well, i think if you look at the market's valuation from where interest rates, unemployment. interest rates near all time lows. unemployment near all time lows. the market is fairly valued. if you look at all the things you talked about. pulling back to regular
haitians. lowering corporate taxes refl participate rags, those drop to the bottom lines. it is not really hypothetical that they'll make more money. the question becomes, will we see more growth? and will the low unemployment, even regardless of all the things trump is talking that. when you have unmoment drop below 5, you start to see wage inflation which drives more growth. >> you gave us a couple of etm for people who want to have diversity. >> i likes e.a., and we believe in being diversified. when you look at the discrepancy that has happened between international stocks and u.s. stocks, that sort of discrepancy has never been sustained. we never know when it will change. when will one start and the others today, thinking of how the year will go. nobody knows that. this sustained gap of
performance is not sustainable. if you have patience and you're looking for value, there is plenty overseas. so if you think it is fully valued, and do i. you can look at it globally and see a lot of value on the table. >> excellent. thank you for your suggestions. we appreciate it. president-elect today targeted another american icon, general motors. did he this just hours before finding out ford canceled plans to build a small car plan in mexico. as a candidate, donald trump vowed to stomp ford from building that very plant. now weeks from president, mr. trump is pushing even harder to look at how company are building vehicles across the border. >> after months of saying ford would not change, the ford's ceo
switched gears calling president-elect donald trump to say ford is not expanding south of the border. but rather in the u.s. >> while we inform president-elect trump and also vice president-elect pence that we would be investing $700 million in our plan in michigan, adding 700 jobs on top of the 28,000 jobs that we've created over the past five years. >> ford says it is not adding the mexico manhunt because demand for small cars is showing down. perhaps. but this is clearly a victory for donald trump. while running for president, he hammered automakers for building vehicles in mexico and importing them tax-free to be soeltd in the u.s. a message he is still pounding this time with gm saying general smoets senting the mexican made model of chevy cruze to u.s. car makers across border. make in usa or pay big border tax.
gm said all chevrolet cruze sedans are wilt in the gm assembly plant in ohio. gm builds the hash back for global markets in mexico with a small number sold in the u.s. approximately 4,500 of those hatchbacks sold last year in the states. so not a huge part of the more than 400,000 vehicles gm imported to the u.s. from mexico last year. but in lordstown, ohio, where the auto maker is laying off 2,000 workers because of slowing demands for the cruze, trump's message plays well. in fact, chevrolet in lordstown refuses to sell the models built in mexico. >> we said we're not keeping them on the lot. we're sending them out of the area. we want to support our plant and the guys and girls up there, third shift. kind of sad what's happening so we on like to keep them here. >> the big question remains whether mexico's soaring auto production which will top 4
million this year, will eventually lead to a tax being slapped on those models sold in the u.s. >> if that happens, how much will those increased costs hurt demand? and the bottom line of auto make here's are increasingly taking second look at their operations south of the border? nightly business report, chicago. one stock that fell after the ford announcement was kansas city southern. it was supposed to have been built along the railway lines. the railroad received nearly half its revenue from its mexican operations during the first nine months of 2016. the president-elect attempted a new trade ambassador, robert lightning heiser is a former reagan this administration official. he said he has repeatedly fought on prevent bad deals from hurting americans. he says he is fully committed to leveling the playing field for american workers.
the president-elect tweeted his pledge saying the affordable care act doesn't work. this for the start of the 115th congress had saw paul ryan easily reelected as house speaker. john harwood is outside trump tower with more on the congressional agenda. congress has an aggressive to do list. beginning with obamacare. did they put in a bill to do it today? >> they started in it motion. they passed language for the process that is an expedited process. that means they can reveal big parts of obamacare with only a majority vote. it does not make it vulnerable to a filibuster by democrats. it will go through end of january. but republicans are on track for what they're calling a repeal and delay strategy to have a
phase-in period for some replacement. the question is whether they come up with one or just keep putting it off. >> on the environmental side of things. can we expect to see the reversal of the environmental regulations? and on what kind of a timetable? >> no question about it. there are a couple regulatory bills, rollbacks that they're passing. donald trump has promised a policy reveals two regulations for every new one that is passed. and regulations like the president's clean power plan, which is now single to legal challenge. holding up the implementedation. that is something that republicans in the executive branch will take a different attitude on once donald trump becomes president. >> all right. thank you very much. we have to leave it there. john harwood in a rainy new york city tonight. ? still ahead, preparing for retirement. if that's one of your new years
resolutions, there are some things you may want to do to maximize your 401(k). finland is launching a two-year experiment. they are providing 2,000 unemployed citizens with a employ income of roughly $580 u.s. dollars. those receiving the money will continue to do so even after they find work. the government hopes the experiment will cut government red tape, reduce poverty and lower unemployment in that country which stands now at more than 8%. tesla misses its delivery goal for 2016. that's where we begin tonight's market focus. taught over maker delivered over
76,000 vehicles last year. missing its target of 80,000. the company noted more than 2500 cars in the fourth quarter were not counted as delivered because the vehicles did not make it to the customer in time. tesla shares initially fell in afterhours trading following the news but ended the regular session up 1.5% to 1699. xerox has officially split into two publicly traded companies. over the week, the printer and copier maker spun off the business services division called conduit. it debuted on the new york stock exchange today. separately, they upgraded the stock so shares of xerox soared almost 20% to 689 while conduit shares fell nearly 8% to 1372. chip maker intel said it will buy a 16% stake in the german digital mapping company called here. it said it entered into an
agreement here where they will have technology for autonomous driving. shares of intel rose to $36.60. the molecular diagnostic maker says it has signed an agreement with blue cross blue shield. under the deal, they will work with one of the programs to help develop the best ways to secure ongoing coverage for its products and tests in the pipeline. shares of interface skyrocketed 70% to $7.50. shares of the pharmaceutical company surged today following a report that said the coil will sell itself and it is accepting final bids tomorrow. according to the new york post, the private equity firm kkr is among the potential suitors. it surged nearly 13% today to $20.34. >> early champions of the 401(k) are having some regrets, reportedly about, the investment resolution that they started. according to the "wall street
journa journal", many of the backers stay 401(k) has fallen short of expectations and was never meant to replace pensions. but it has. so how do you make the most of and it improve your retirement savings? the director have personal finance joins us to talk about it. happy new year. >> to see us. >> tim, what do you make first of ball the article and whether or not those claims, do they resonate with you? and how can we really help ourselves improve our 401(k) performance? >> well, in many ways they do resonate. anyone who is in the financial space as i am spending all my time work with clients. i do see how the 401(k) has been underutilized. i see how companies in many cases an dictated role they were playing and refiremen for their employees' lives for pension plans, by eliminating them and poig people in the direction of
a 401(k). and i see the institutional challenges with big companies filling plans with bad investment that's have high expenses. but at the same time, this is public option we have on the table today. and if you utilize a 401(k) correctly, if you know how to hack it a little bit from the institutional problems that it has, you can make the most of it. >> when you say hack it, what are you talking about? making the right investment choices within the choices that you have? >> that's certainly part of it, tyler. one of the treenls choices a problem, most 401(k) man's are run by firms fill them up with their own high expense investments. but you go have funds inside your plan. you may have to look between lines to find best options. it should be easier and hopefully it will be going into the future but you can still absolutely make the most of it.
>> you say there are three things individuals should be doing to maximize their 401(k) contributions. tell us about that. >> well, the first one is contribute. no matter how many times we want to complain about the popgss are available, no matter how many times we want to be concerned with market volatility and the challenges we all have throughout our life times. the number one predictor of financial success in retirement is the degree to which you apply yourself and your funds that you save. so let's not see this news about 401(k)s. it can be a little dreary. and use it as reason to abld indicate our role in saving for the future. number two, we have to do our west to allocate the funds inside. it might be a mediocre plan. hopefully we'll see improvement this. special when i the new department of labor role this coming april. lastly you want to maximize
whatever fixed income opportunities that you have. for most of us, that is still going to be social security as the primary. as we continue on age in the future, i am encouraging retirees to stave off taking their social security benefits until as late as possible. then you will see your social security income go up and you will reduce the reallianliance r 401(k). coming up, why some in silicon valley giving new meaning to the term "pet rock." the fed releases the minutes of the last meeting when it voted to raise interest rates. there will be two competing
meetings on obamacare on capitol hi hill. one with president obama and the other with vice president-elect pence. they will set the record for the year. that's what to watch for on wednesday. the space industry could enter a new phase this year after a number of stumbles. space x's promises and there's a lot of money on the line. >> faith exploration technology said the rockets are ready for blast off. it is targeting a return to flight this sunday. for months after a falcon 9 rocket erupted on the cape canaveral launch pad destroying the satellite. after an intensive investigation, they determined explosion was triggered by the failure of the helium vessel used to help pressurize the liquid oxygen fuel tank. it initially stumped the founder
elon musk who called at this time toughest problem we've ever had. >> i think we've gotten to the bottom of the problem. and it involves a combination of liquid helium, advanced composites, and solid oxygen. oxygen so cold that it enters solid phase. >> taking corrective action to address all credible causes of the explosion including long term, some design changes. the upstart must first get green flight regulators. a process like thoi happen if it goes according to plan. they said it is crucial that it is successful. >> what they are doing with this launch is another step in exercising commercial entities,
to take over the role that has been done by the government in the past. so that we can do it more efficiently. and then focus our government resources on the next stage of exploration. >> like deep space. the upcoming launch would put ten satellites into orbit, the first of seven such trips to replace the aging constellation. shares of it soared on the news. space x has a $10 billion backlog. it has deals with the pentagon ask nasa, including the shuttle cargo and starting next year, astronauts to the international space station. and beyond that, the company's own plans to go to mars. but it all come down to this week and whether space x can finally get back into space. for nightly business report. what is about it billionaires and space?
from elon musk to amazon's jeff besos, microsoft's co-founder paul allen aux entered the race for civilian space travel. but there's another space race playing out in silicon valley. our story from san francisco. >> steve knows he might never get to travel to mars. but that doesn't mean the respected vent you are capitalist can't bring a peace of mars home. he has converted his office in menlo park, california, into a private museum. it is filled with treasures. he won't say how much he paid for the rock. only that it costs more than his first home. to find such space rocks, he turns to professional meteorite hunters. since the late 1990s, he has traveled to some 80 countries, searching for these rocks.
which he then sells to private collectors, including tech heavyweights. >> the silicon valley guys have been pretty good the last couple of years. they buy a bit different than the chinese. the chinese want large iron, large things to put in office lobbies and things like that. the tech guys want rare things. very, very special things. >> farmer along with his friend ask business partner recently returned from bolivia where they brought several meteorites from people in a local indigenous community. the rocks were some 4 billion years old. within an hour they flipped them for $60 billion. in 2011, farmer was kidnapped, beaten and nearly killed by thieves. in that same year, he was charged with illegal mining in oman and imprisoned for two months. greg also counts entrepreneurs
as his clients. a commercial space company. he sold him two slices of lunar meteorite. each weighing roughly one pound and about the size of a large dinner plate. each slice of this rock cost hundreds of thousands of dollars. the market extends well beyond the brokers. last april, $christy's held an auction for these rocks and it was some $700,000. collectors tone necessarily think of these space rocks a sounds investments. instead, he said he buys them because of the rare unique story even ancient rock reveals. for nightly business report. san francisco. >> you never know. >> does it for nightly business report. thank you for joining us. >> i'm tyler mathisen. have a great evening.
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