tv Nightly Business Report PBS August 10, 2017 5:00pm-5:31pm PDT
this is "nightly business report" with with tyler mathisen and sue herera. >> doubling down. president trump says that his fire and fury threats against north korea may not have been and stocks take a tumtumble. sales at macy's fell for the > wells fargo chairman may step down as the bank's scandals mount. why is the stock higher over the past year? those stories and more tonight on "nightly business report" for thursday, august 10th. good evening, i'm sue herera. tyler is off this evening. it was wall street east biggest sell off since may. the dow dropped more than 200 points. nasdaq and s&p fell more than
1%. the reason, escalating rhetoric on north korea. today, the president said north korea should be very, very nervous and that his recent threat of fire and fury may not have gone far enough. >> the people who were questioning that statement maybe wasn't tou they've been doing this to our country for a long time, for many years and it's about time that somebody stuck up for the people of this country and for the people of other country, so, if anything, maybe that d we're backed by 100% by our military, we're backed by everybody and we're backed by my other leaders. >> and that pushed investors out of stocks. the dow jones industrial average tumbled 204 points landing at 21,844 falling for the third straight station. s&p 500 dropped 35. tensions. has mor
>> stocks closer lower for the third straight day due to jitters about north korea and it's following a classic pattern when stocks that are the market leaders, those that have gained the most, the weakest. fang stock, netflix, amazon, google and alphabet were down 2 to 4%. other groups like biotechs and semiconductors dropped again today with most down 2 to 6% for the week. as the market has been a tad weaker, gold for example has been rallying. it's up about 2% for the week. bond s have been up in price an right on cue, banks are down about 4% for the week. for the moment, this is a modest downturn. the s&p 501% after of its historic high. it hit that on wednesday. panic, not really. today is the first day volumes are slightly higher than normal, but that's not surprising given
the intraday move were greating than they've been recently, so for example, the dow has been moving at a roughly 100 point range from its high to its low every day for a long time. today, it move nd a greater than 200 point range from the closed shift yesterday to its low this afternoon. that's enough to attract some attention. for "nightly business report," i'm bob pisani at the new york stock exchange. >> the president didn't just take on north korea. he is also taking on his own party. and he has this to say when asked whether mitch mcconnell should step down. >> i'll tell you what, if he doesn't et repeal and replace done and taxes done, meaning cuts and reform and if he doesn't get a very easy one to get done infrastructur done, th can ask me that question. >> john harwood is following the story for us from washington and program, that a
division could emerge between t mea for tax reform and infrastructure spend iing and the like? w seen a president who has gotten to the august break without major accomplishments. who is katrina icasting blame o leaders of his own party who have been trying to help him. this is not going to help him on infrastructure. that's not an easy situation. democrats have no incentive to help him. re interested. i think tax cuts are a different story. republicans have a strong survival instinct. they've got midterm elections coming up in the 2018. republican lawmakers on the hill want to cut taxes, so does president trump. i think despite the bickering, they're going to find a way all right, he also talked a lot today about north korea. he had an extensive cabinet neat meting today. north korea was one of the major top ibs and some strong language
coming from the president. perhaps he said not strong enough. what more do we know? >> we know ha that the president t t us.age wd the back and if so, you're going to be met with fire and fury. then, the north korean load lea not only issued a threat, but was specific abo now, president trump is saying well, if you do anything, we're going to hit you and u.s. fishes were describing the nature of the response. if this ends up being just rh leaders who have kind of loose ways of talking, that might not be dangerous, but there's always the possibility of miscalculation and the same things that have caused markets to go down has also rattled the national security establishment in washington. >> thank you so much. zblmpblt a tough day for macy's and kohl's shareholders. despite exceeding earnings, investors focused on their
decloining sales and their inability to attract new customer as more people shop online. both stocks fell sharply. courtney reagan has more on the s most recognizable f the stores. >> it's another dismal day for department stores despite both macy's and kohl's posting better than expected quarterly results and making no changing to full year forecasts, investors are still pessimistic. sales for macy's and kohl's are lower than last year. it's not enough to off set l tr. plus, shoppers today have more choices than ever before. >> what we see out there today is a, we have traffic going to a virtual place, obviously amazon is one of those key ak regators, but b, fiscal traffic, we're seeing more and more consumers go to the off mall type of
formats like wross stores, a tj and uhl lta. >> they continue to be p t to ct treasure hunt at low prices, macy's is adding its own version of an outlet called backstage in some of its stores, but macy's hasn't yet solved one of its biggest problems. bringing in new shoppers. the department continues its down trend getting worse in tourist heavy locations. they are more insulate frd the mall woe, since only a handful of its 150 stores are actually in a mall, but it, too, are dealing with fewer people walking throg t trend remains a top priority. >> the mall based e ecosystem from the department stores number bet still down. just starting a gradual spiral is defiahead for retail, rgenco
finding opportunities soon is paramount. for "nightly business report", i'm courtney reagan. >> it wasn't just macy's and kohl's. dillards ha had a disappointing quarter. and the stock got on the down escalator falling 15%. it was a different story though for nordstrom. that retailer reported a rise in key sales metrics during the second quarter. its first advance since last year. ruts were stronger than expected y sales for helping rediting t its results. it raisee lower end of guidance for the year and that sent shares high er in initial afterhours traying. chairman of wells fargo could step down. steven sanger is part of a broader shake up at the bank
that's been meiered in scandals. this involves charging auto loan customers for insurance they didn't need and didn't ask for and this follows the fake account scandal which first emerged last fall. but take a look at the stock price over the past year, you .ight think it would b so when it comes to a scandal ridden company like a wells fargo, does wall street view them differently than the public and should you care if you own that stock? joining uss chris, he's here to discuss that tonight. chie >> it is interesting that wells fargo stock is up over the past year. given some of the hurdles that that company has encountered e. do you think wall street views companies meier ed in a scandal differently thanete looki at pr. are we making money by owning wells farg is yes. and the scandals that have broke
have not really impacted profits and why you see the stock prices higher. >> does it also play into the fact that it's in an area of the market, the financials, and the larger financials, that have been doing quite well. >> well, yes, to the extent the financial sector continue to do well, interest rates rise, you've got lots of financial stocks should continue to do much better. and wells fargo is a strong financial company. they're tarnishing their reputation and their brand, but not enough that they'rf custome. >> is the third strike if there is a third strike, if something else happens at the company or is discovered at that company, would that make heads turn or not? >> it could potentially. what would make heads turn is if larger inhaves tors in the stock, larger owners of the
stock decide their ethical behavior is not for them and they start pulling out and el is ing selling the stocks. decide that pensions a ethical behavior is too much. that they don't want to own this stock, they don't want b to be soes yaltedd e stock, they don't want b to be abo the earnings numbers. >> now, for the individual invest investor, how do you really handicap that? do you have to do a gut check? look at your own standards and say i don't want to own a company like this or they're turning the ship around and i do? >> there's where there's some interesting changes. there's a process in investment called environmental social and governance. esg. that's really catching on with investors right now. they're really caring about it. especially millennials and women. they care a lot about the ethics of companies they invest in.
the more we see that catch on, the more we see that popular in stocks that have ethical lapses decline. >> now, if a company we're talking about wells fargo, but there are other companies that have had scandals, if it starts to affect do you see them drop their shares an that's a danger for the individual investor, is it not? because if you're holding the stock and the big guys get out, then you're left holding the stock. >> if it impacts profits, it's going to pull our retail accounts from wells fargo. what impacts it when you have something like california saying we're not going to do business with wells fargo. when you have large institutions decide they're not going to do business, that's where you see an impact. >> chris, thank you very muc nice to have you here. still ahead, going green. the new push to plug in
america's long haul trucks. the u.s. postal service lost more than $2 billion in the recent quarter. there's more competition from the private sector and the rise of technology has enabled consumers to send less via snail mail. the postmaster general wants to be able to hike prices, but right now, the postal service cannot raise stamp prices of traditional mail beyond the rate of inflation. today, the postmaster called that cap fundamentally unsuited. the television industry gets
a lot of money from advertisers and facebook wants some of that, so today, it unveiled a new home for original videos. more on b facebook's aggressive push for dollars. >> facebook wants to make sure its users never need to click waway. g a laub ch tab ant to wat offering recommendations based on user's interests and what their friends are talking about. facebook is looking for a piece of the $72 billion that will be spent on ads this year. e adverti dollars ng, that's are going. >> facebook's looking to feature content that will drive social chatter. launching partners include a and e, major league baseball and others. with shows ranging from a video mash up and a national
geographic science show. facebook's latest push into content puts in more direction competition with snap behind me. they have been adding a range of exclusive shows with partners across the traditional media space from time warner to news to vice. facebook and snap are going up against the largest of the video giants, youtube, which has been investing in original content. also its brand and tv subscription services. it's a crowded space. but netflix doubling down on original content to draw subscribers and even apple just this week launching its second video show. car pool karaoke. >> you want to have the best content. that's why netflix has to continue to double down and why it continues to spend more and more. there's always been more of the questions for apple. b on file.t they haven't figured out a way
to tap in to that original cont t players, but ad and subscription driven as the key way to dif wrennuate their services, to draw new users and keep them hooked. facebook's watch tab will start rolling out to u.s. users starting today. for "nightly business report", i'm julia boorstin in venice, california. >> and snap's user growth fails to impress. thatbe tonight's marketfocus. the social media company best known for its disappearing message a p pp didn' the latestr as hoped for. earnings in revenue also came up short. shares were volatile after hour, but ended regular day up to 13.77. b nbc universal has an investment in snap. they are the parent company of cnbc, which produces this prog in its first earnings report as a public company, blue apron reported stronger than expected revenue, but a wider loss. while it was disappointing, what
drove the stock lower was their weak outlook. the meal kit delivery company said unexpected cost related to a new facility woul cause losses to grow and the shares plunged more than 17%. live nation said an increase in concert ticket sales helped revenue rise above expectations and profit was also ahead of street target. those results sent shares higher. the generic drug maker pair doe lifted its full year earnings outlook after reporting results that topped estimates. they said strong demand for muhao products helped it off set prices have negatively impacted other pharma companies. and after reporting a surprise loss and disappointing sales, the infrastructure services provider chicago bridge and iron, said it would suspend
its dividend. they said they are taking action to improve its financial position. the shares were crushed. they fell 26% to $11.97. the race to build electric vehicles will soon involve large truck, including semi, hauling goods around the country. tesla is working on an ele year, a chinese backed firm will roll out a short haul commercial work van that you might see driving around cities. phil lebeau has more now on the . >> it looks like any other commercial work van. but this truck by a company called change is all electric and coming to america later this . >> you stand on a city street in any urban market, any product or people that are moving are being moved in medium duty trucks and the existing products is the diesel, it creates the noise and pollution that just really is having an impact and we saw the opportunity in change do a ground up design that would
really transform that space. >> the market for medium duty trucks like those used by delivery companies is substantial. more than 7 million are on the road in the u.s. most get poor mileage, but change says it truck will give the equivalent of 50 miles per gallon. the company is backed by millions from investors including some from china. over the last four years, the vehic companies has exploded. and it's expected to top $2.7 billion this year. some of that money is funding companies like church point. which is building recharging stations or to start ups developing electric vehicles. many are based in california, but looking to change how the world gets around. >> and you start to marketplac i think investors see that and it's happening now in california for sure. zpl the surge of investments in happening in chip and for good reason. china is already the world's
largest market when it comes to all vehicles, but it's number one when it comes to those that are electric models. phil lebeau, "nightly business report", chicago. ki of experiment is fly iing high. >> i'm morgan brennan in new mexico. holloman air force base is home to the 49th wing and where most are trained, but something else is here right now as well and that's something that could help transform the way military equipment is acquired. that's coming up next on "nightly business re consumer report ss pulling
its recommendation on four microsoft laptops. this after one survey found users were complaining about problems with those devices. based on the results, the magazine ple dikted that one quarter of microsoft's laptops and tablets would have reliability problems in the first two years of ownership. the air force needs new fighter jets, but they're expensive. so, it's doing something unusual that could give smaller contractors a chance to build a cheaper plane. morgan bren p reports from holloman air force base in new >> in the middle of the desert, fighter pilots have been conduct testing in a new kind of experiment. >> we took a problem we saw or area we thought we wanted to experiment and engaged industry to see if we could do things in a diffo it is
unusual. >> the air force is testing light attack aircraft built by three contractor teams. sierra nevada, air tractor which partner with l3 and texttron. just as the pentagon is undergoing a massive acquisition in structuring, air force officials say this exercise allows this em to test aircraft available and do so without having to decide on dedicating huge sums. it marks a huge shift on how the service could buy future equipment. heather wilson, who's been at the job less than three months, says the goal is to make it ease governmeore companies to do >> we're not going to pend a whole lot of time and a bunch of years to come up with specific requirements. we're going to say all right, see what people have and let's test it. let's learn from that and see where we go. >> the experiment could result in an inexpensive aircraft designed to carry out certain missions against isis and others
who don't have access to high performance jets. if this goes well, it could cut the cost and time it takes to get a new aircraft into operat and do so as geopolitical tensions with north korea and others continue to flare. >> we are stretched very thin. we have asked to increase the strength in the united states air force, but we are also putting money into readiness and then medium and long-term modernization so that we're >> the new ways of doing business may also mean more spending by companies up front. including for oax. >> we think there's a number of opportunities out there, both u.s. and international and it's a great opportunity to showcase the aircraft and see what the air force is looking for. >> all three teams say the opportunities outweigh the costs, especially since foreign allies have been tracking the tests. but since the air force hasn't released a formal request for proposal, there's no guarantee any of this will result in an official u.s. acquisition program. or that today's participants
won't face more competition. some critics even argue the air force is wasting resources on an for secretary wilson, there's nothing but upside. >> if you can innovate faster than the adversary at lower betr chance of prevailing. >> i'm morgan brennan in new >> that is "nightly business report" for tonight. i'm sue herera. we want to remind you that this is the time of year your public television station seeks your support and we thank you for that support. we'll see yo
many tourists come to italy because of its past. but milano is today's italy, and no italian trip is complete without visiting this city. while overlooked by many, milano has plenty to see and it's a joy to visit. fashionistas love milan's world-class shopping zone, a neighborhood called the quadrilateral. this elegant high-fashion district was the original beverly hills of milan.
overseeing the shopping action are the exclusive and elusive penthouse apartments with their plush roof gardens. since the 1920s, this has been the place for designer labels. in this scene, the people-watching is as entertaining as the window-shopping. another favorite place for the milanese is an hour away by train. lombardy's seductively beautiful lakes district, where italy meets the alps, seems heaven-sent for communing with nature. in this land of so many popular lakes, the million-euro question is -- which one?
while all the lakes have their charms, lake como is my favorite. it offers the best mix of accessibility, scenery, and offbeat-ness with a heady whiff of aristocratic-old-days romance. lake como is lined with elegant 19th-century villas, crowned by snowcapped mountains and busy with fleets of little ferries. it's a good place to take a break from the intensity of urban turnstile sightseeing. it seems half the travelers you'll meet have tossed their itineraries into the lake and are actually relaxing. today the hazy, lazy lake's only serious industry is tourism. lake como's isolation and flat economy have left it pretty much the way 19th-century romantic poets first described it.
this is a bbc is america. funding of this presentation is made possible by. the freemen foundation. and coal fuller foundation pursuing solutions for america's neglected me. planning a vacation escape that's relaxing inviting. and exciting. is a lot easier than you think. you can find it here in aruba. families couples and friends can all find their escape on the is