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tv   Nightly Business Report  PBS  June 23, 2017 5:00pm-5:31pm PDT

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new tech leaders, the hottest sector this year has been led by the best known megacap, but now, there are new names leading the way. record highs. newly built homes are more ek pensive, but there may be a solution. diving in. why private insurers are getting into the flood insurance market. after a 50-year absence. those stories and a lot more on "nightly business report" for june 23rd. good evening. tyler and sue are off tonight. technology is back on top.
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the same sector that led the way this year earlier posted its first weekly gain in three this week. the nasdaq climbed today for the fourth straight session and energy shares helped the s&p snap its losing streak. t the dow fell by 2.5 points today. nasdaq added 28 though. s&p rose by nearly four points and as you can see, the nasdaq easily outperformed the other major averages for the week, but there's a switch happening within the tech d by the big n. the fang stocks, facebooks and amazons and fwogoogles. now, a new group of name taki charge. kim forest joins us tonight to talk about that. kim, we have almost two weeks ago, the tech wreck and maybe look elsewhere for new leadership. what are they looking for? >> well, i think anytime you'r
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growth. and if you're investing in tech, you're really looking for gro h growth. have what in common? growth. so i think a couple of the leerds have to do with online paycheck or pay stub calculations that sort of thing. so that would be adp and paycheck. and i think people are looking for more hire iing to go on thi year. an logical conclusion if you're buying those stocks. >> other stock that you consider new leadership here. gardener group. why that one? >> the gardener group, they're kind of interestinra and what they do is they give advice to businesses who are going to put in new technologies and just like the rest of us, even though they might have a staff of i.t. people, you need some help. so they're kind of like the consumer reports for technology and for business and again, if you're going to be putting a lot
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of money into wrour business tech, why not get a subscript to gardener and get the right stuff the first time. >> sit citrix. why that one? zwl they are. i think they have a real leadership and what it allows rt to your servers back at the mother ship where ever you work. and eve b b b though we are goeng to the cloud, some things just don't translate that well, so citrix has leadership and connecting kind of older servers to people that are mobile. >> and then a common name we hear, am drd, why are you picki them? >> well, they're kind of second bah nan nana to intel they have a new technology that so amd, whose fortune el. had been pretty bad, they've
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turned it around because of a new product line and a lot of people seem to be buying their chip. instead of intel. >> kim forest, always good to see you. thanks for joining us. >> thank you. >> you bet. most would agree one of the hottest part of the economy has been housing and toe, we learned prices of newly built homes hit a record. seas ro sales rose in may. builders say they wo like to put up home, but they're facing tight regulations op land use. which is only driving their costs even higher. but a new trend in town homes could be the solution. desiiana oleic has the story. >> thet be as swanky, but town homes are taking off in today's tight real estate market. >> seems to be a general philosophy by local governments to increase density and be more efficient with land use. >> like here in this maryland suburb south of the nation's
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capitol, where effompty land is .car >> so, they're really encouraging more town home and even products where you have rental mixed in. higher density because the typical suburban homes are going to be harder to find land. particularly in maturing metropolitian areas like washington. >> demand is high especially as the number of existing homes for sale keep hitting new lows. builders are increasing production, but still well below historical levels. the median home of a price sold in may hit a new record high despite builders claim they're targeting the first time buyer. clearly, they ca builders say new regular laces not only add huge costs, but slow the process as well. permitting can take months, especially in major metropolitian areas like here in d.c. town home rs way around that and local governments encourage builders to put up more units on
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less land. >> town homes may be less private, but they are more affordable for both developers and buyers. in today's tight market, that's something to build on. for "nightly business report," i'm diana oleic in washington. elsewhere, a federal reserve e increases until itntral bank is clear that inflation is heading higher and when there's more clarity on fiscal policies out of washington. james bu sees little reason to rush the process and he's not worried about the tight labor market triggering higher inflation anytime soon. general motors has reached a settlement to resolve lawsuits over is defective ignition switches. according to a court filing, the deal addresses some more than 200 plaintiff cases. terms of the settlement are confidential but it could also resolve hundreds of other claims. the ignition switch defect has been linked to more 100
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deaths an prompted recall in 2014. to date, gm has paid about $2.5 billion in personalities and settlements reelated just to that defect. health care stocks were big winners this week. rising more than 3%. as we reporteded, most of the gain came yesterday when the senate released the draft version of is own health care bill and today, the draft was examined even further. as bertha coombs reports now, winners and losers are emerging. >> the is that the plan obama care's coverage. that benefits those are higher incomes. the plan leahs many of the provisions in place but less funding. >> very complicated situation from the standpoint you do something that's good for one group, but bad for another. it's a very, very narrow path. zpl among the loser, adults who
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gained coverage under medicaid expansi expansion. se plan would maintain funding through 2020, but make states pick up more of the tab before ending it. middle income earners making above 350% of federal poverty. about 41,000 for an individual this year. for older adult, that could mean a triple whammy. the senate plan would allow insurers to charge them five times more than younger people. right now, rates are capped at three times more. the bill also increases how much older people have to chip in for preem ups. from 9.5% of their income to as much as 16%. while tax credits would be lower. to the lowest plan rother than more generous plans now. people with preexisting conditions would not face a premium surcharge under the senate plan and some shut out would get a new benefit.
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among the winners, the worki would be eligible for tax credit, filling the gap for 2.6 f million people who weren't kored whens chose not to expand medicaid. insurers would be able to offer young adults lower plans and opt out of a central health benefit and people with health savings accounts would be able to nearly double. $6600 a year for individuals and 13,300 per family. more in line with high deductkc bable costs. a spokeswoman says those measures will help the industry offer more affordable plans. critic argue lower sub sidies and the enof the mandate will out. you're going to get a lot more people in these plans, but they're going a lot sicker and you're going to have fewer healthy people. so you'll see rapid increases. >> the congressional budget report estimated the house plan would result in 23 million people being uninsured by 2026.
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the senate bill is is due monday. and still ahead, up for a challenge? picking stocks while the market is is near record levels never e easy, but our market monitors tonight have some ideas you might want to consider. boeing is cutting 200 jobs at a planlt in south carolina. the same plant where president tr ago t. compa says the layoffs are part of a plan announceded back in december and they come as competition intensifies with rival airbus. boeing has been reducing staff
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of the year primarily through buyoutsattrition. hurricane season brings attention to flood insurance. for decades, the program has been run by the government. but that's starting to change. morgan brennan explains. >> private insurers are taking the plunge into the turbulent waters of flood insurance. for the first time in five decades, the companies are underwriting coverage for homes and businesses. mark a potential shift if for a marketplace run by the government since 1968. >> it's a very strong business opportunity. te changed. the industry is much better at measures risk on flood insurance than they were years ago and as a pursuing that opportunity. >> it could growgrow. >> also more favorable regulations. that started in 2012 as a bigger act.
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the last big attempt to reform the program. >> house lawmakers are now looking to build on that that would make it easier for insurers to compete. a move that could at least in theory, bring down rates and prevent more tax pare losses. a more than $3 billion opportunity on 5 million property, many underpriced or subsidized that are covered by the troubled government program. >> right now, because of hurricane katrina and sandy and the loss, the federal flood insurance program has a deficit of $25 billion to the u.s. treasury. by contrast, the private insurance market in the united states has $700 billion that for any in private flood insurance would be available to help pay claims if anything came in. >> and lexington snurns began offering policies last year. it housed 10,000, but expects that to double over the next 12 months. chubb and swissry have jumped in and just this week, hci
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announced plans to expand operations beyond florida. to nine more states. and it isn't the low risk properties that are the most attracti attractive. b rate hikes. the companies say they can now better compete, offering rates . for "nightly business report", i'm morgan brennan. weak enterprise sales hurt results of blackberry an that's where we begin tonight's market focus. the software maker posted an unexpecteded profit, but that news yuz wuzover shadow ed by a miss that left investors wonde s strategy is working. looking past the disappointing revenue, the company said it is open to qu. >> so, i think the security, especially the whole newer area of machine learning as relateded to cybersecurity, we're a leader in that space an we would like
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to add feature service. every area is about expanding the channel and the reach for our auto business and tracking business. >> wall street wasn't buying it though. they sent shares down 12% to $9.71 in today's trade. sales edged lower at finish line at the retailer struggled with getting a stead t stores. results missed expeck tases, but it's profit matched estimates. the company's largest shareholder is sports direct international, the uk bigger software retailer, is also pumping its stake in finish line to nearly 20%. finish line shares end ed the dy up about 7%. and the fda approve d a blod thinner that is sbened to help prevent deep vein trhrombosis.
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the company said the treatment on cat p pillar from hold to buy citing concerns over whether the trump administration's $1 trillion infrastructure plan will actually take effect. the bank said without a stimulus, there is little prospect for continued instruction growth right now. caterpillar shares though rose on the day to $104.11. now, to our market monitor who is saying he is finding investment opportunities here in the u.s. and overseas. steve is with us tonight. he's president of iht wealth management. steve, good to see you. welcome back. >> hi hey, bill. how you doing? >>. >> good. we were talk iing with another money manager abwr and how she leadership in technology. but you're sticking with one of
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the primary fang stocks right nouchl even at these near all time highs, you like amazon here, why? >> two and a half years ago, i was ton show with you guys and we were talking about amazon and how it's really expensive and overales and we were being contrary ran. saying you got to buy in. they're a disrupter. see past the pricing. everything they get into, they take over and grow from that area. fast forward wo years, the stock is up 50% and the arguments with the sa expensiv the reality is they changed the markets that they get into and you know what should be watching their backs is whole foods or not whole foods, walmart because they're coming for them. everything they tohgrows, so yes, it's expensive, yes, it's a tough stock to swallow the pricing you're getting into it b but the reality is if you want grow handle the risk, there's better stock out there that has the potential to continue to grow in the next
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couple of years. >> all right and one walmart said t to ma a competing bid for whole foods against amazon. now, there is at least one sector you like that's not at all time highs, the banks. you're going to make the case for a certain bank etf. why. why now? >> let me start by this. i want to compliment you guys fo time to talk about the etf world. you're leading the mark. this is what the industry going forwa towards. for you guys to be talk iing abt it is wonderful. but yes. . rates are rising, which we know is a good thing and helps the smaller, makes a lot more struggling through it. but two, about a year and a half ago, we were talking about the market we were in was at all time hig of strictness that was going on with these banks. that has swung. wd the republican president and congress, but it's going back in that direction and the rate is going to help those bottom
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lines, so we're shying away from the big names now because of some of the risks, but if you e sector, that might be one of the sectors in the years. >> okay. now, dividends are obviously very popular. especially with our audience, but you're looking for them not here in the u.s., but in europe. you're talk iing about a europe honest. u.s. market is probably overvalued right now. we fundamentally like strong balance sheets, dividends, you c buy into s, you look comps at a much cheaper discount than in the u.s. they're in the middle of the qe cycle. you take advantage of the fact that they've got a couple more years worth of growth off that end of it and brexit isn't going to affect europe. brex britain is never really a part of europe in that sense any way. headle
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d risk from time to time. you've got to grin and bear it, but you want to buy into large oriented dividend growth stocks and four-year portfolio as opposed to overpaying for u.s. stocks. it's a wonderful idea if you can stomach having more of your money overseas. >> right. good ideas tonight. steve, good to see you. thanks for joining us. >> thanks, bill. >> coming up, hidden cash that's hiding in your close
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soors is closing another 20 stories. 18 sears and two kmarts, these in addition to the more than 200 stor closu announced earlier this year. they aren't the only brand closing stores these days. the total number so far is triple what it was the same time this time last year. so far, 5300 store closures announced in 2017. if it's time to clean out your closet, there's a way to make some cash in the process. courtney reagan compares two pay you back when you declutter zblchl looking to refresh b your summer wardrobe but don't have the c h cash? look no further than you websites that will help sell gently used by still in style closed. i decided to do an unscientific
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test of two popular methods. an app called posh mark and thread up to see which w me mor. after spending some quality time brands like j picked nin crew -- i discovered posh mark works more like ebay and facebook tcombined. each item has its own listing. it took hours to create pigtures with the clothes and upload the images and set the price and to sell, you need to be social. following others, commenting and sharing your listings. ultimately, i got offers on four items on posh mark. both the j crew sweater and pants, the -- dress and the karen milan cardigan. thread up the less work. you order a bag for 10 bucks and when it come, you fill it up. the time consuming part was the waiting.
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i took eight weeks to get the total f. in the end, they accepted three times. the club monaco dress and sap j crew sweater and pants. what wer payouts? pasch mark takes a 2.85 commission and 20% for sales over that and the buyer pays the shipping. my net profit on posh mark came to $144. thread up pays in two ways. an up front payout for in season items or a percentage of the sale price range iing from 5 to% for offseason clothing sold on a consignment model. my net profit came to $18. i'm courtney reagan. entrepreneur tony co tapped into the multibillion dollar beauty market when she was 25 years old. now, she's eyeing the sun glass industry. tyler mathisen has her story in
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tonight's how i made my millions. >> i'm very grateful and happy. >> it took her just six months to launch her second business. perverse sunglasses. hard on the heels of f half billion sales of her first company, the beauty empire, nicks cosmetics. a remark bable rise by a college dropout. who immigrated from south korea to l.a. when she was only 13 and didn't speak a word of english. >> i had to learn a whole new language and a whole new culture. you feel inadequate. >> which wasn't in school, she counter at her mom's cosmetics store. >> i used to sell purr fume. i worked for her years old to 25. so 11 years. she never pay me.
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>> the shortage of pocket change led her to discover a gap in the market between high-end cosmetics and drugstore make up. >> blue eye shadows were never blue. red lipsticks did not come out red. >> she thought she could do it bert so, in 1999, she dropped out of school and started nix cosmetics. >> my mom had good advise for me. she said even if you fail, it's better to have that experience when you're younger than older. and then she wrote me the first check. >> those years of free labor finally paid off with $250,000 from her mother, she developed her first products. 1.49 eye and lip pencils. >> this color, 183. plush red. was one of the original colors. >> in just 12 month, she sold 3. 2 million of them. entirely on ore own. >> i was a reception iist, a
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no i that it was aident, one 26-year-old running the whole show. >> and often, before meeting her, no idea that she was a woman. >> then i show up u and like, hi, i'm tony. you should see the shock on their faces. >> you'd think there would be a lot of female executives. really, it's not. >> but co had one advantage in a boy's world. she was the ultimate consumer. >> i really wanted to make product that i was proud to use. that my friends were proud to use. >> instead of spending on marketing like her competitors, shfo making high quality products she could sell at very low prices. and in the mid 2000s, a poorly performing product got a boost from an unexpected source. a youtube makeup tutorial. >> we just went ding, ding, ding, this is the reason why this item is selling out now.
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by 2014, nix made 120 million in annual revenue. just 15 years after launching, she sold nix to loreal for about 500 million clmillion. she set her sights on another industry she loved. sunglasses. >> i'm really good at delivering really great quality at a really >> she is hoping to nurture other female entrepreneurs through a company she started called butter ventures. that's "nightly business report" for tonight. have a great weekend, everybody. see you mond.
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♪ >> this is "bbc world news america." funding of this presentation is made possible by the freeman foundation, kovler foundation, pursuing solutions for america's neglected needs, and sony pictures classics. >> i think i should just go straight to paris. >> i'll take care of her. >> that's very generous, but you sure it's ok with you? >> driving is the only way to see a country. >> oh, it's incredible! >> how's paris? >> i'm actually not there yet. >> the rhone river is nearby. >> are we ever going to get to paris?


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