tv Nightly Business Report PBS January 6, 2017 7:00pm-7:31pm PST
this is "nightly business report." funded in part by hss. >> our guiding principles are patients first. >> the goal of creating and sustaining value is all about putting the patient at the center of the equation. >> the purpose of this organization is to help people get back to what they need and love to do. >> three for three. the dow, nasdaq and s&p 500 all hit new highs but it still
remains oh so elusive. >> show never money. paychecks grew the most in seven years. >> and stay slim. how he hopes his bracelets will cause sharks not to take bait. all that and more for friday, january 6th. >> good evening. a triple play on wall street with all three indexes hitting new highs after today's jobs report. we'll have more on that in a couple moments the s&p 500 came close to that 20,000 mark. it was just a third of a point away. to put that into perspective, the index was 5 cents, yep, one nickel away from that 20,000 milestone. in the end, the dow couldn't break free and had to settle for the intra day high. the dow rose 64 points.
the nasdaq rose 3. the s&p 500 added about 8. >> no 20,000 but we did get a triple day. what moved us up today, two group that's were strong after the election but have lagged recently. jcpenney and boeing and the united technologies. one disappointment, oil stocks. the report of that terrible shooting at ft. lauderdale airport mid afternoon did not cause any big selling but it did likely, understandably, dampen any buying interests. the markets have been essentially sideways since the trump rally ran out of steam in mid december. investors are hopeful that corporation there's get positive guidance. stocks have already moved on that hope. a lot is riding on that hope.
>> let's turn now to our two guests for their perspectives on the markets. we're lucky to have with us, the global market strategist at jpmorgan asset management. and the chief investment officer. welcome to both of you. wave good long stretch. you believe there's upside the equities in 2017. jack, i don't know whether you say that or not but you do say that you think the s&p 500 would be lower a year from now and that there's too much good news built into the market. make your case and then jack, rejoin. >> we do think that there's upsnide 2017. what i was saying was that that upside for the most part is dependent on the ability of market growth to reemerge after being relatively hidden. so multiples feel a little bit stretched. it feels like there's a lot
priced into this market. it feels like earnings growth is back in 2017 and we think that it will mirror those of the cash flows the stocks are generating. >> jack? >> yeah. i would agree. i think there's a lot built into expectations. analysts are expecting it to rise in 2017 and it is a bit of a stretch. that's currently built into prices. one of the things i'm going to be watching for is this current earnings experience just started a day or so ago to see how much momentum are we going to have going into 2017 and will these margins predicated on tax cuts and regulatory rollbacks be upset by higher interest costs. >> david, there are a lot of peel who do feel rally after the election is getting a little thin and that the expectations, and he has made this point a number of times.
the market seems to be thinking everything on the new administration's agenda will get done quickly. it is all perfect. that may be the case but if not, is that going on put a chink in the market? >> i agree with you that the market is engaged in a little wishful thinking. the stock market is pricing donald trump atly the hundred, everything according to plan. we forget at the end of the day we are talking about washington. even if donald trump starts to try to take action on day one, best case we see some of this stuff come through in the second half of 2017. i would add, it will be far easier to make progress on tax reform than infrastructure spending or deregulation. so there's a lot priced into this market. and unfortunately, we'll to have wait and see what actual policies next year. >> you've had your eye, we spoke earlier today on one measure without getting too technical of it is the price to sales ratio of the stock market right now.
and you see it as stretched as it's been since the tech bubble. explain it in sort of freshman economics terms for me. >> so you have the market and you have sales. you essentially just look at the total number of sales outstanding compared to the price and right now it is trading at roughly two times revenues on. average, if you go back to 1993, we normally traded around 1.2 times revenues. the last time was the tech bubble in 2000. >> do i worry from that perspective, we are a bit stretched. i will say that i'm looking at trailing revenues. a lot of what is baked into this market is hope.
it is possible that if we do get a big ramp up on revenues, then two times goes down some. i don't think it goes to 1.2. >> if you do see opportunity in this market, and things get done in washington like the market anticipates they will, where do you see the best opportunity? >> so we like the more cyclical parts of the market relative to the more defensive parts. the one thing that i'm most sbert for what will happen, interest rates will head higher. whether that comes from an increase in the deficit, more innation, better real growth. the bottom line is that i think rates are headed up. that should be good for financials. we like discretionary with a bit of a caveat. as long as wages are growing faster than inflation. if it flips on its head, we see purchasing power and we're not quite as optimistic on those stocks. what we're staying away from are the defensives.
they have the high sense to have it interest rates. as we saw going into the end of 2016, it came under quite a bit of pressure. >> 30 seconds. where should i take profits now if i've got some? what should do i quickly for 2017? >> sure. i'm not looking for a plunge. there's a lot of cash ready to step in if we do pull back. if you got profits in s&p, that is not a bad place to take. i would redeploy it in cheaper markets. all we have to do is read the water sideways and i think emerging markets does well. if we get a call and start to head down the emerging markets will go the other way. there's a lot of cash on the sidelines. thank you very much. >> hiring slowed a bit in december but wages rose. and the year had the fastest
clip since 2009. hourly wages rising a dime to $26 and that brings the growth a tick under 3% for all of 2016. as for jobs, the economy added 156,000 in december. that was below the expected increase of 178,000. the unemployment rate rose by a tenth to 4.7%. the report it was final one under president obama and represented the 75th straight month that employers add jobs. and it set the bar for the new administration. >> the jobs number came in a little lighter than expected with the most robust sectors being employment and health care which add 43,000 jobs and social stance, which includes home rehab workers and daycare workers adding 20,000 jobs. food services and drinking places added 30,000 jobsful but others saw losses including mining, logging, and book
publishers and the media. average hourly earnings increased by 10 cents after edging down in november. >> the wage growth is the best we've seen in the recovery. so that is the most important part of this report. ? have the relief marks the final jobs report of the obama era in which the monthly jobs announcement became a political football as the country struggled to emerge. >> where are the jobs? the american economy has created in the private sector jobs for the past 21 months in a row. >> where are the jobs? >> business once again add jobs for the 30th month in a row. >> where are the jobs? >> this is the strongest job growth that we have seen since the 1990s. >> that had officials in a reflective move today. >> eight years ago, they were telling american people we lost almost 800,000 jobs. the unemployment rate was heading toward 10%. the economy was in the tank.
here we are now, the unemployment rate is 4.7%. >> but speaker paul ryan posted the gop message saying after eight years of obama's economic policies, too many americans still do not feel better off. how does barack obama stack up against other recent presidents? vague ronald reagan created nearly 16 million jobs. bill clinton was the highest. george w. bush over 2 million and barack obama created over 11 million jobs. obama's total is the bar the next president will likely try on beat in his eight years in office if he gets them. this week trump tweeted fourth decision on create 700 new jobs in the united states is just the beginning. much more to follow. for "nightly business report." on the same day congress certified donald trump's electoral college win as president, the nation's top intelligence officials briefed mr. trump on their findings on the investigation into russia's
hacking attempts on enter gear the election. in a written statement afterward, the president-elect praised the intelligence community, called the meeting constructive but did not embrace the conclusion that russia and russia alone was behind the cyber meddling. he said hit no effect on the election's outcome. he plans to appoint a team to come up with a man to combat cyber attacks within 90 days of taking office. >> and the president-elect also said mexico will reimburse the u.s. for the cost building a border wall between the two countries. after a report last night saying he will ask congress for money to build the wall as soon as april, trump tweeted had. the dishonest media does not report that any money spent on building the great wall for the sake of speed will be paid back by mexico later. one area that is looking to hire is the u.s. border patrol
but it is struggling to do so. why they are having such a tough time finding recruits. he? if you have a desire to serve and protect, look to the u.s. borders. they are actively recruiting. >> we are looking for men and women that have an innate set of core values. honesty, integrity, dedication, respect. >> the agency needs to bring on around 1,700 new border patrol agents in the near future to help protect 6,000 miles of the new land border and more than 300 points of entry. however many job applicants don't make it through initial screening. >> for every 75 that apply, one border patrol agent gets hired. >> among other challenges in recruiting and retaining, the job is dangerous and often requires agents to deal with
harsh conditions and remote areas. >> it is not in a major metropolitan city. that can be a negative aspect for some folks but i think the mission outweighs it. >> people like jose ramirez attended the training academy for four months. prior law enforcement experience isn't necessary. for ramirez, it is a chance to serve the country and continue the legacy of his older brother who died in the line of duty. >> being in the academy is a challenge. but every step, i know my brother's foot prints are there. i think of him. >> trainees get paid but the process is rigorous. i spent the day at the border patrol academy to find out what it takes to prepare for the complexities. new agents learn the law and they practice techniques and go
through demanding fitness training. they learn spanish to be fluent by the time they graduate. they also get combat training. >> extend the right hand to the neck. give it to him. harder. harder. >> and have to be ready to fight in the dark. >> good, good, good. to go your right. excellent. >> water safety is also a must. including climbing jacob's ladder. dangling 25 feet in the air and being ready to take plunge. i'm kate rogers in new mexico. >> coming up, why this week's market monitor thinks staying domestic might be the best thing for your portfolio this year.
boeing misses its target for 2016 and that's where we begin the focus. the aircraft maker said it received fewer orders last year, just 668 of them. they hoped the company would match all the total deliveries but it didn't. it was their weakest year for orders since 2010. the boeing shares finished the day up thine droenlts 159.10. greenbriar posted profits. the maker of railroad freight car equipment cited fewer deliveries. the company reaffirmed the guidance for this year. shares soared 16% to $46.17. >> they raised the price target to $17.60. evercore that it was raising its
stock rating from sell all the way to buy. both financial firms cited fiat's ability to reach the target. they rose 6%. they finished at 1042. and late last night the judge ruled that amgen's rivals infringed upon the patent for its cholesterol treatment. under the ruling, they are banned from selling their cholesterol drug. amgen shares up 2%. 156.78. shares were lower as you see there. >> our market monitor likes domestically oriented stocks. he says the points to take advantage of faster growth. the last time he was on in june he recommended the cme group which is up 23%. td player trade which gained 53ers and slumberget.
pnc you say has basically a great plan for new growth. >> yes. the company is a regional bank. not one of the big money centers. they have planned to expand the foot print and it is a network on the east coast that is moving west and south. and most focus domestic revenue and profits which is what we like in a rising environment. and rising short term rates should help in terms of profitability. >> it is a bank actually does barnging. >> that's right. a banker's bank. extra space storage. who wouldn't want extra space? >> this is for the folks who have more stuff than they do space. the second largest -- >> you're talking to me. >> this is the second largest space real estate investment trust. only about a 10 million market cap. the leases are relatively short
term, like around a year. so as inflation rise, they can reset the rates and we think they'll benefit from that. >> and your third is a my energy. a specific niche of energy. enterprise partners mp. we think it has one of the cleaner lines. they're branching out in storage and pgs there. to give 100% homeless and domestic revenues. it is better to be home rather than abroad with revenues. >> let's get your thoughts broadly on this day where all they have of the major barometers hit record highs. >> yeah. we can indicacall it 20,000, ri? pretty impressive.
some of the guests have talked about getting actual policies passed and i think we're factoring in some positive that has yet to come through. and i think the sales comments going forward in materials of price of sales is key as well. we haven't seen sales growth. we think the companies that are growing and relatively low growth environment. >> all right. thank you very much. coming up next, how one entrepreneur hopes to give a whole new meaning to the phrase, jumping the shark.
we seem to hear more and more these days about shark attacks here and australia and anywhere. more people are spending more time in the water than ever before. surfers are the victims of roughly half the attacks here in the u.s. and that's why one california surfer decided to develop a device that he believes can reduce the chances of a shark attack. >> if you live through a shark attack like nick did in 2005, you surely have quite a story the tell. >> i was taken by the ankle here. the natural force of the shark pulling me under is what broke my ankle. >> friends took him to the hospital. he needed 40 stitches and four months to heal. >> considering the foot is still there, i can still use it. and surf with it. yeah. very fortunate. >> now he lives and surfs in california. near a childhood buddy, nathan
garrison, in santa barbara. garrison was not there when the attack happened. but is haunted to this day. >> quite a few times by sharks. we thought we had seen them. we saw a fin, a tail. >> so he set out to develop awarable device to deter wakes. >> it had to be stylish and affordable. >> how exactly would it work? in 2012, his father david garrison did some research and came upon shark defense. a new jersey company run by scientists who back in 2006 discovered that sharks are extremely sensitive, believe it or not, to magnetic waves. sharks have a net boring of gel filled black dots on their spots. so sensitive that they pick up weak electrical signals picked up by even the heart beats of their prey. they act as receptors, sending
messages to the brain about activity. when sharks approach a person wearing magnets, they sense a stronger than normal magnetic field, unpleasant enough to makele sharks turn and swim away. >> it is like you get blasted in the eye with a super bright light in a dark room. it is uncomfortable and unpleasant but not harmful. >> david garrison got a first hand look at the technology with patrick rice, a marine biologist who worked shark defense. garrison, having reviewed the 15 research studies on the science, was so impressed. he listened the technology from shark defense. agreeing to pay a percentage of future sales for a shark deterrent made by a new company he and his son formed. nathan garrison got busy. four months and about $50,000 later in 2014, he and his dad joined rice in the bahamas to test a prototype. nathan, having never seen it work in person was going to shoot video underwater with
sharks swimming nearby. >> i was nervous. we're hook at each other, is this really a good idea? >> his video shows rice wearing shark bands and he's safe. on another trip, a dummy. bernie, they named him. or shark bait. it is stuffed with bait. it shows sharks appearing to avoid it. the shark took bait. to be sure there's still healthy skepticism about shark bands. he admits his product won't stop a hungry shark if it really decides to attack. last week a florida teenager said he was bitten by a shark while wearing shark bands. he said it happened after a wave knocked him off the surfboard. that he may have landed in the water near a shark. the teen took more than 40 stitches but is expected to fully recover. nathan garrison who knows of no other such incidents stands by
his product. e-mailing to say shark bands are like any safety device. designed to reduce the risk of injury but never 100%. >> if i can create device that would even make me 10% less likely to get attacked, why would not i wear it? >> interesting point. scientists still researching the science behind shark bands. some products use chemicals. still more than 35,000 shark sold in a little more than two years. before we leave you tonight, let's take a final look at the record setting day on wall street. all three indexes hitting new highs. the dow rose to 19,964. the nasdaq rose 63. the s&p 500 add just about 8. >> okay. my packer fan. i got the giants. you got the pats. >> i may be wearing a cheese
head. you never know. >> have a grapt weekend, everyone. we'll see you monday. >> or maybe you'll be wearing it. >> funded by hss. >> our guiding principles are patient first and we want to deliver the highest quality care. >> the goal of creating and sustaining value is all about putting the patient in the center of the equation. >> the purpose of this organization is to help people get back to what they need and love to do.
ed: u.s. intelligence chiefs tell president-elect donald trump, you're wrong, the russians did meddle in the election. and on capitol hill, battles over obamacare. o'keefe, welcome to 2017, tonight on "washington week." think that we've ever encountered a more aggressive or to interfere in our election process than we've case.n this ed: the nation's top spy agencies release evidence that hacking,in was behind propaganda and fake news that may have influenced the 2016 elections. senators in both parties have condemned russia but the president-elect continues to cast doubts.