tv Nightly Business Report PBS September 11, 2017 5:00pm-5:31pm PDT
>> announcer: this is "n report" with tyler mathisen and sue herera. stocks soar. the s&p 500 closes at a record. the dow regains 22,000, all because hurricane irma could have been a lot, lot worse. in the dark. more than half of florida is without power tonight. that could temporarily cool the state's economy. giving back. sports stars and celebrities are traders for the day to honor those who lost their lives 16iers. those story and more tonight on "nightly business report" for september 11th. stocks took off at the opening bell today and never turned back. investors were in a buying mood,
sending the s&p 500 to its 31st closing report of the year. all three maid indexes rallied more than 6%. why the optimism? in part because hurricane irma delivered a less forceful than expected hit on florida. and concerns over new york new york eased as well, at least for now. let's got to the numbers. the dow jones industrial average advanced 259 points to 22,057, biggest one-day gain in six months. the nasdaq added 72, and the s&p 500 gained 26. bob pisani has more on the rally from the floor of the nyse. >> reporter: the markets returned to rally mode and a number of factors contributed. first, while the damage from irma was extensive, it wasn't as catastrophic as feared. second, there will be money for rebuilding. th may be the ultimate fallout from harvey and irma. it may shift washington's focus to more fiscal spending.
other factors also helped, especially after ababsence of weapons tests innoic over the weekend. new sanctions being voted on in united nations have been watered down, contributing to a less tense environment between the u.s. and north korea. finally bond yields have begun rising again after two weeks of going straight down. that's moves bank stocks up about 2% today. the market has been amazingly resilient, but it's rallied hard today when both concerns appeared to ease. for "nightly business report" i'm bob pisani at the new york stock exchange. christina hoopers joins us to talk about the rally and whether or not it will last. she's a global strategist at invesco. good to see you, as always. >> same here. >> pretty impressive move by the s&p and by the dow jones industrial average, but what kind of staying power or depth
do you think this rally really has? >> well, that's a great question. i do think it could last for several days. keep in mind there's certainly a lot of relief over hurricane irma as not being devastating as had been expected, but i also believe part of this rally is due to a rethinking on the part of markets in terms of the deal struck by the trump administration with democrats in congress last week. it suggests that there's the opportunity for bipartisanship and the potential for agenda items like tax reform to get done. so i do believe it has some staying power, but i also expect that events later this month are likely to derail it. >> so you think the deal struck last week that included hurricane funding, a raising of the dead ceiling or suspension of it for three months and a continuing resolution, suggests there may be more opportunity for deals to get tax reform and
other imperatives done. explain that to me. >> well, now we have a lot of the concerns about washington, d.c. dysfunction out of the way for september. that was a big concern heading into last week. so now congress actually does have a limited window of time to tackle tax reform. it would have to be in a bipartisan way, but after the health care failings we saw earlier this year, it may be the best approach for the trump administration to accomplish some kind of tax legislation. you also point out the fact that you are expecting the start of balance sheet normalization. in other words, the fed to make some moves to shrink its balance sheet a bit after all the money they put in after the financial crisis. what kind of volatility might that bring to the market? >> well, we're in uncharted territory. keep in mind that balance sheet increases have been really what
caused the economy to recover out of the great recession. so we have this bloated balance sheet that the fed has had for years, and now we're going to start talking about normalizing it. even though the fed wants to be ever so deliberate and careful and thoughtful, it still could be jarring to markets. >> kristin, we'll leave it there. thank you, christina hooper with invesco. >> thank you. to hurricane irma, which packed a punch, especially over the florida keys, but for the rest of the state, the hit wasn't quite as bad as many feared. the strong winds and to referenceal rains did however left much of florida in the dark. there are reports that 65% of the state is without power egg making it hard to quickly recover, and as jackie deangelis reports, the situation is improving slowly.
>> reporter: more than 6 million people in florida lost power, almost every part of the state impacted by the outages. >> we lost power on friday before the hurricane was even nearby. >> reporter: c will be working as quickly as possible, with some helps from neighboring states, officials pleading that people by patient. >> having daily calls, they're going to do everything they can. i've been talking to nursing homes all short, assisted living, everybody needs the power back on. >> reporter: the major shipping channels saw closures. ports are on hold until the coast guard makes sure its safe for vessels to pass through. >> our ports are a serious critical port in relation to providing relief supplies to the caribbean islands. they were hit five days ago, some devastated. a lot of the relief supply that is go to them come out of our
port. >> reporter: gasoline will also come through the port, but only after the coast guard gives the nod and power is restored to the terminals. west palm beach, miami and tampa seeing gas station closures of more than 50% each. while the damage from hurricane irma might be less than expected, it's still going to be a while before this state and its economy are back up and running. for "nightly business report" i'm jackie deaung lynn, riviera beach, florida. the full impact of the hurricanes on florida's citrus industry is not yet known, but it is believed that growers daunled the worst of it. is a major part of florida economy, producing almost 60% of the oranges in the u.s. attitudism, of course, is another huge part of the sunshine state's economy. florida attracted almost 113 million tourists last year. attitudism supports nearly 1.5 million jobs. two of florida's biggest attractions, universal and disney theme parks in orlando are set to reopen tomorrow.
cruise industry shar up higher on the believe that disruptions though we're temporary the caribbean is the cruz industry's largest market. with the focus now on recovery, some local officials are looking to small business owner, not just the big ones, to play a leading role. contessa brewer is in miami tonight. >> reporter: irma uprooted massive trees and scattered smaller ones across roadways, topples others into cars. the furious winds piled sand onto the broadwalk against boarded-up businesses. by daylight some floridians toured the damage, taking stock. armand messina, a small business other than and florida keys resident, was trying to get back. >> my entire property was five feet under water.
>> reporter: today he got an urgent request. >> it was a electrical contractor to start working on the infrastructure to try to get them back up online. >> reporter: transportation is a big headache. gasoline is in short supply. contractors are begging the governor to help. >> i have a friend in miami that we're going to stop by. he has some cans of fuel for me. >> reporter: the power is out through much of south florida. when the lights are on, business is booming. 911 food in dannian beach never even closed. >> if we can open, we'll open. >> reporter: in downtown miami, two cranes collapsed, and construction debris flew from high-rise towers. today the glass litters the ground. in the neighborhood known as wall street south. the city's capital saw feet of flooding from the storm surge. some of the biggest names in banking are assessing the
damage, wells fargo, morgan stanley, deloitte all trying to figure out when they can get back up and running. >> i'm trying to find out when i can tell mea co-workers we can go back to work. >> reporter: one of his biggest clients is uber in latin america, and he's chomping at the bit to get back in the building. >> armand is chomping at the bit to get back to life. >> i'm hoping the road will be clear and we can hopefully get down there. i don't know what will happen when we get to florida city. >> reporter: contessa brewer, miami. insurance stocks, you guessed it, rose today after a brutal week last week. e popular insurance etf ticker kie finished 2% higher today, and a smaller home but the sector isn't out of the woods just yet.
morgan brennan explains. >> reporter: the impact will not be as great as feared. >> you went from an expect athat the industry could have saul about $15 billion of losses just from this event to now today we're looking at around $40 billion of losses. the fact that the storm veered toward the west coast of florida really cut the level of losses by about a third. >> reporter: insurance and reinsurance stocks like travelers, chubb and groups -- a scenario that had originally called for a direct hit on miami. brisk modelingism a.i. recollection estimates insured losses could be 20 to 40 billion, including damages from wind and storm surge, but excludes the impact on the broader economy, and the loss is sure to come for the government's program. it's a staggering sum, two times the estimate for hurricane harvey, according to wells fargo. with the industry sitting on a
mountain of capital, still small enough that insurance like assurance can manage it. >> we expect a loss of at least our retention, which is $127 million, but we don't think we'll come near the top of reinsurance and exposure of 1.1 billion. it's really early to have definitive -- but we've looked at flooding and storm surge, and we feel it's in the bonds of what we would have expected. >> near-term earnings will feel the expect, but analysts expect only a handful of yet to be identified reinsurers to take the biggest losses. both irma and harvey will make history, joining superstorm sandy, hurricanes andrew, even hurricane katrina, as tw the costliest hurricanes on the record. the hope is the worse is over especially since a third they had, hurricane jose remains on the horizon.
for "nightly business report" i'm morgan brennan. >> it's not just the cost, but also hurricane harvey. the one-two punch could ding the broader u.s. economy for billions. steve leashman has the story. >> reporter: initial estimates of these two monstrous storms being paid at 150 to 200 billion. moody's annual iics put it, and irma was bagged at 62 to 64. it was unfeared, for example that moody's included the flooding like in jacksonville or charleston. in the totals are some 20 to 30 billion of lost economic output, people who can't get to work and power outages. moody's shaved the third quarter gdp forecast for the entire nation by a half point you but expense a reconstruction rebound in the fourth quarter.
that depends on the timing of insurance payments and government assistance, eastern the ability to find enough construction workers to rebuild the state. >> that's a lot of homes that have to be rebuilt. it's a lot of cars that have to be replaced. on the home front, so to speak, that's more lagged, though. i can go out tomorrow as soon as the stm pass it is and practically get an insurance payment and a car. on homes, especially if you don't have insurance and you have to wait for the government insurance, that can take months before you start to rebuilt. >> florida ranks fourth among states in output, but it's 27th in per capita income with many -- but also seniors on modest pensions. the top industries in florida, trade and transportation, followed by professional and business services. education and health, look with leisure and hospitalities, which are all those theme parks and hotels. these storms can leave enduring
impact on lives, but don't generally have lasting impacts the any calf the harvey, a lot depends on hour question le they can get up and runs, for irma it's getting the lights on, streets clears, arenas and eespecially the theme parks up and runnings for "nightly business report" i'm steve leashman. still ahead, apple's new iphone could come with an eye-popping price tag. is it enter a new era?
two senators asked equifax to answer detailed questions about the breach from last week. lawmakers want to know when three executives who sold stock in august were first notified of the cyberattack. up to 143 million americans had their personal information compromised. mixed signals on solar power use in the u.s. according to an industry report, installations rhodes despite a sharp pupball, but it's the decline in residential use that experience say is putting the industry on track for the first annual decline. china is considering a move to ban the production of vehicles powered by fossil fuels. chinese regulators have not decided when or if, but there are reports of car makers are being called upon to change strategies to the situation. china is the world's largest
auto markets. gas prices rising fast. according to trilby lundberg, the regular price was up to $2.69, the biggers two-week price hike since 2011. the most expensive gas can be found in san francisco at an average price of $3.21. the cheapest, $2.31 can be found in baton rouge, louisiana. shares of the struggling drug maker testifia soar. after months of speculation, the world's biggest seller of generic drugs named a new ceo, tasks with reviving sales and reducing the company's debt. testifia also recently shuffled the board and shed assets in investors. the stock up today. bristol-myers reported positive results for an experimental cancer drug showing an already widely used
medication can be used sooner in treatment. the drug is part of a new class of treatments known's immunotherapy. shares rose slightly to 62.72. health insurance innovations is expected to face fraud penalties in excess of $100 million. the company dolphs and administration health insurance plans include short-term medical. complaints alleged that the company did not cover what its plans claimed it did. the company is facing fraud investigations in 42 states and has lost accreditation in its home state of florida. the decision is being appealed, but the stock fell nearly 22%. tahoe resources received a favorable court ruling, the mining company's license for a silver mine in guatemala was reinstated by the company's supreme court. however, there is an ongoing road block preventing tahoe.
the tahoe resources stock was up the chicken processor pilgrim's pride struck a deal to buy a poultry supplier for $1 billion. the deal is with jbs, the world's largest meat packer for the british subsidiary. despite the news, the stock fell 3% to 28.17. citigroup set the third quarter market's revenue will be lower by 15%. is the news was announced today at an investor conference. it was boosted last year, and the brexit vote in the uk. despite the forecast, though, the forecast was up 2%. apple will get plenty of investor attention tomorrow. that's because the king of cupertino is likely to unveil some fresh products and due it at the brand-new billion dollars headquarters there. the headliner products is rumored to be a new suite of
iphones with one device selling close to $1,000 dan, good to have you with us. >> great to see you both. >> how many smarter can smartphones get? and what are you expecting to see from apple tomorrow? >> i think, tyler, what is important is that the phones are taking on more and mohr of the capabilities from other areas, for example, payments with apple pay, what it speaks to is the ecosystem is moving into newer areas. for example there's augmented reality kit, and that has the potential to unleash a whole new wave of new experience in the computing arena. >> apple is facing a lot of competition from the likes of samsu even though samsung had its issues with some of its phones, tablets and the like. can they out-innovate those other companies? >> i think what's important with apple is they have been able to integrate hardware, software and
services. that's what helps to build this difficultated user experience, and so what users have been able to do, whether they have a watch, ipad or phone is move seamlessly between the devices. that's very powerful. i think it's difficult for others to >> let's get it to the stock. the hays that the stock runs up rather dramatically before rumored big product announcements. that's what the stock has done over the past year and over the past couple months, then it starts to level off a bit. there's also the argument that this stock is undervalued. where are you on where this stock may go next. >> we think that with a 12 to 18-month horizon, the shares remain attractive. part of that is back the company has been able to built on what
they have done by attracting developers. that's a new area for -- >> what is augmented reality. for me reality is fine just the way it is. >> well, if you think about the physical world and the digital world. if you have to have a device, shopping for a new sofa, and it would bel -- show an image of a sofa here, that would help. if you had jet engines and that was able to show you a model of how things -- it many we can cite, but many more that we can't, and i think -- >> i would like to augment my reality, and basically i like the stock. >> i like the symptom and i think while the shares are volatile, it remains attractive. >> thank you. appreciate it. >> thank you. coming up, wall street remembers and .
it was a day of remembrance as the nation marked the 16th anniversary of the attacks on the world trade center and the pentagon. in washington president trump and the first lady observed a moment of silence. in new york, the new york sto. s kanter fitzgerald lot more than 650 employees, and since then it's used the anniversary
to raise money for charities. mike an san tolli spent the day on cantor's new york city trading floor. >> done. done. >> reporter: it's chair why the day. the firm is donatingable trading -- with the help of celebrity entertainers and athletes. today president bill clinton, actor robert de niro and football great joe theismann handled trades that added to the funds raised by the charity day event since 2002, actor steve buschemi said the tone of remembrance. >> it's all about supporting each other. that feeling never goes away. i mean, you know, they say time heals. in some ways it does, but in other ways, it's just -- it's 16 years that you haven't been with your loved once. >> reporter: this year as the
country commemorates the could taos troy, the toll of present-day disasters was also on the minds of all involved. cantor is sending -- >> on top of taking care of 100 chairities, we'll fly down 250 volunteers and adopt hopefully between 5,000 and 10,000 families, depending on how much we can race. we're going to give each family with small children element tears schools, $1,000 each. >> the celebrity traders surprised clients by handling huge orders for bonds with several getting into the competitive spirit on the trading floor. the celebrity guests were also trading to support a charitable cause of their own. >> this is a day we have and hold in remembrance, but i love that cantor nits gerald is doing this as making this day a day of positivity and putting something more beautiful into the world where we can remember this day. >> i love to be in the city for
9/11, we all went through it together, to remember it, but also feel like we're still here, we're strong, we're going to do something in the memory of the people we lost that day. >> also worth noting cantor's own traders gave up a pay today, all a part of the firm's commitment to raise money. for "nightly business report" i'm mike san santoli. and they've done it every year. >> every single year. absolutely. i'm sue herera, thank for you joining us. and i'm tyler math i sene. thank you for joining us. we'll see you right back here tomorrow n. ♪
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