tv Nightly Business Report PBS September 28, 2017 5:00pm-5:31pm PDT
>> announcer: this is "nightly business report" with tyler mathisen and sue herera. big push. the white house hits the ground running to sell the republican tax reform p emergency aid. it is making its way to puerto rico. but once it's there, it sits, unable to get where it needs to go. apology. equifax makes a peace offering to consumers. but retirees need to take a few extra steps in the wake of the massive breach. those stories and more tonight on "nightly business report" for thursday, september good evening, everybody. i'm sue herera. >> and i'm bill griffeth in for tyler mathisen. tonight i'm coming to you from the new york stock exchange. it was here today that the s&p 500 closed at another new record high.
while it may not be as well-known as the dow jones industrials, it is considered more representative of the whole market, since it is made up of 500 companies as compared to the dow's 30. small cap stocks also hit all-time highs today, as did a leading indicator of the economy, that would be the dow transportation average. when all was said and done, the dow industrials gained 40 points, closed at 22,381. nasdaq was up a fraction. the s&p 500 rose three, enough for that new all-time high, sue. bill, washington republicans were out in force selling their tax plan. there was some pushback. ylan mui is in our nation's capital. >> reporter: the republican tax plan is out. and now the hard work of selling it begins on capitol hill. the house ways and means committee will get the first crack at writing a bill. and white house economic adviser gary cohn said there's one number the president is not willing to negotiate. a 20% corporate tax rate.
>> we would have liked to start lower and given ourselves some negotiating room. we are at 20. 20 is a bright line test for us you. the president said it. he said it yesterday. and he's been very clear about it. we are not going over 20. 20 is the top of what we're willing to go on the corporate tax rate. >> reporter: house speaker paul ryan has said he would be willing to go as high as the mid-20s in the past. but today, he promised that republicans would hit that target. >> when we pulled the border adjustment from our bill in the middle of the summer, that created a pretty big revenue haul. we spent the next three months we working the numbers to make sure we can get to 20%. which we can. and we're very excited about that. >> reporter: democrats and many experts are slamming this tax plan as a budget busting give away to large corporations and wealthy households. the center for a responsible federal budget estimates that the tax framework would cost $2.2 trillion over the next
decade. house democratic leader nancy pelosi said that alone should raise alarms for republicans who had long called for fiscal discipline. >> i also wonder what happened to the deficit hawks in the republican party. they seem to be an endangered species. >> reporter: republicans want to use special rules known as reconciliation to get tax reform done and to unlock that process, they first need to pass a budget. the house will vote on its version next week, and the senate will mark up its own proposal as well. both sides will need to agree to get tax reform off and running. for "nightly business report," i'm ylan mui in was the economy accelerated in the second quarter, recording its quickest rate of growth in more than two years. turns out the gross domestic product increased at a rate of 3.1%, that's an annual rate, during the april to june period. it was revised slightly higher from the previous report.
economists say that the destruction caused by hurricanes harvey and irma could be a drag, though, here on the third quarter growth. bill, those hurricanes showed up in the weekly jobless claims report. the number of americans applying for benefits rose more than expected last week, at least partially reflecting job losses due to hurricane harvey and irma. the claims fell last week in puerto rico. but the full impact is unclear because hurricane ma disr the collection of data. the trump administration is temporarily waiving a century-old shipping law about flag vessels. some say that could help facilitate aid to puerto rico. but on the storm-battered island itself, a lot of supplies have arrived but it's proven very difficult to get them where they need to go. our contessa brewer is in san juan for u
>> reporter: giant ships are waiting in line, with more than a thousand cargo containers aboard, loaded with supplies. but look around. there's no room to unpack them from the ships and put them in the terminal yard. they're packed with lifesaving supplies. but those supplies are not getting to the people who desperately need them. >> the people of puerto rico are fighting hard. there's no way we're going to be able to do this by ourselves. we need much more support from the federal agencies >> reporter: the vice president for crowley, one of the biggest shippers in puerto rico, is frustrated. his yard is jammed, way over capacity, with more ships waiting to unload. >> we also asked the distributors and the trucking company to please come and start moving the cargo here, because we need to make room in order to receive the cargo that is on its way. >> reporter: but trucking
companies can't contact their drivers because cell service is out to modifist of the island. drivers can't get to work because they can't find gas for their cars or roads are blocked by debris. and if they can get to work, they still need diesel to operate the trucks. down on the ground, the trucks are moving, but only 4% of containers are making it off the lot. these are all refrigerated units. they require generators. every one of these generators requires fuel. inside is food and medicine crucial for the island. and crowley is going through 4,000 gallons of fuel every single day for these operations at the terminal. diesel is the crucial link in this supply chain. the food and beverage association said 266 supermarkets are ready to open but don't have the diesel to run their generators. walmart, super mercado, a huge supermarket chain here, and suarez, a food distributor, are
trying to figure out how to get these containers out to the stores. fema has been making emergency fuel deliveries a priority. but gas stations can only stay open for a few hours because of demand, despite fuel rationing. the airport needs fuel because generators are powering air traffic control. tsa security checkpoints and computers for the airline . for many of those on this island, food is running short. half the homes on the island don't have running water, much less electricity. in some cases, lives are the on the line. these people are your family, these people are your neighbors. i know you're so concerned about what's happening in other parts of puerto rico. when you look over this crowded yard, does this make you mad? >> it makes me sad and frustrated. just to see that we have here all these goods and that people out there are just begging,
anxious, in the need of such important supplies, and they are all sitting here in this yard. >> reporter: fema administrator brock long says his agency is working with the department of defense, with the governor of puerto rico, with the mayors and other agencies on logistics. but right now this is a supply chain that is broken and desperately in need of repair. for "nightly business report," i'm contessa brewer in san juan, puerto rico. >> southwest airlines expects to lose $100 million in revenue in the third quarter because of the recent hurricanes and also the earthquakes. in a filing with the sec, the airline said it had to cancel approximately 5,000 flights during the current quarter because of the natural disasters in the caribbean and also in the u.s. and it's not just southwest. bob pisani has more from the >> reporter: companies are start to crunch the numbers in the wake of hurricanes harvey, irma, and maria. today, southwest airlines and sherwin-williams both said
reference would be lower in the third quarter. they join a growing list of companies affected in one way or another by the storm. fedex, carmax, auto zone, dr horton, all took a hit from the storms, along with marriott, gap. harvey may have cost $108 billion in damages. a recent cnbc analysis revealed all the big hurricanes live on for several quarter following their landfall in the u.s. is it enough to materially affect s&p 500 earnings for the third and fourth quarter? it's not entirely clear, but some industries like airlines could see a substantial impact. right now it seems to be minimal overall. we're still waiting for insurers to shed more light on their losses. so this could change. but the preliminary data is a relief to marketwatchers. the earnings have been on an upswing since the fourth quarter
of 2016 after a year and a half of decline. markets have remained in record territory largely because traders continue to believe that earnings are still growing and not at a peak. a strong economy coupled with the prospects to tax cuts are the key to earnings growth in 2018. some think the rebuilding efforts may provide an additional benefit. a car maker expects to see a boost in auto sales in the months to come. i'm bob pisani at the new yor the new interim ceo at equifax apologized to consumers for the poor response by his company for the data breach that affected 143 million americans. in an op-ed that ran in "the wall street journal" this morning, he acknowledged equifax compounded the problem with insufficient support for consumers. now equifax is offering a new service allowing people the option of locking and unlocking access to their equifax credit
files at will and, importantly, this new service will be offered free of charge for life. and we told you what the experts recommend you should do if you suspect your data has been breached and what small businesses owners should do. but what about retirees? a financial planner at highland financial advisers joins us, good to see you, reed. >> good to see you, sue. >> we've talked about the credit freeze, about getting a monitoring agency. retirees are in a different category. they're getting payments from the government on a routine basis, things like that. what should retirees be thinking about? >> retirees are extremely vulnerable, they're typically not as computer savvy. many of them have gotten involved with facebook and e-mailing their families and things like this. they're just not as familiar with some of the protocols to follow. we educate our clients on this. the main thing is the protection you have is really with you. i mean, you have the power in
you to protect you from outside by being very suspicious of contact through e-mails, phishing is a very common type. when you get an e-mail from a company that looks like it came from a company you may do business with, they typically don't reach out ou asking you for information. phone calls, another type of phishing that comes to people, seniors, telling them that there has been a security breach, they say they're from apple or microsoft, and we're investigating your neighborhood, things like this. they don't do that. people need to be very shrewd about using this. >> reed, we just showed a graphic here that showed limit the use of yours s social secu number. you say don't give it to medical provider. often all they want is your birth date, that's very important. but sometimes they do ask for that social security number. why not give it to them? >> they need your birthday
typically to look up and contact the insurance company. many of them, i wonder if they just haven't updated their forms. many times i do not give it, my social security number. if they really need it, they'll ask for it, and they can explain it. it seems like that's one area where our social security number, we just never thought about it and we give it out. it's not something you should be as free to do anymore. >> as i mentioned earlier, frequently seniors and retirees get payments, medicare payments, social security payments. i assume they should monitor and make sure those payments are coming in as they normally do. and if they're not, maybe that means that someone else has gotten access to them. medicare and social security seem to be two things that seniors should take a look at. >> absolutely. and that's just monitoring your bank accounts. most financial institutions today have put in two-factor authentication which is an extra layer of protection. if you have a cellphone, they'll
togeth you a code before you log on. you need to find advantage of that and use that, it's an important extra layer of protection. that way it's very hard for somebody to go in and change your address. social security administration, their online is extremely difficult for someone to break in. these are things that consumers need to be aware of. and seniors, as they explore the internet and things like this, they need to be extremely shrewd. >> on that note, reed, nice to see you again, with highland financial advisers. bill? still ahead, teens, an app, and playing the stock market. is that a good combinati
twitter said today it found about 200 accounts linked to russian-backed facebook pages that sought to spread misinformation. during a meeting with congressional investigators, the company said that russian-backed news site rt spent more than $270,000 on ads last year during the election. twitter plans to review its political advertising disclosure policy, and it will crack down on any future suspicious activity. sin stocks. they're in sectors whose activities are frowned upon by some. but this time of year, are they just what your portfolio needs? landon dowdy shines a spotlight on that sector. >> reporter: so-called sin stocks like alcohol, cigarettes, and gaming stocks, typically heat up as the weather cools down. looking back since 2010, an analytics firm points to these names to watch. constellation brands posting average returns of 12.5%.
booze really buzzes this time of year. >> it tends to be a time of gift giving, with other holiday events. normal people are buying gifts of brands that they think are higher value or, you know, perceived to be higher quality. it tends to be a good season, especially for spirits and wine makers, because of that. >> reporter: also on tap, boston beer company posting average returns of 20%. analysts credit china's golden week hold in october with driving gaming stocks. one beneficiary, mgm resorts posting returns of 13%. las vegas sands seeing rises in games. cigarette maker reynolds american lighting it up with 8% in q4. the general view here is portfolio managers want to move into less risky assets at the
end of the year. these vice stocks can keep you warm all winter long. .or "nightly business report," blackberry's push into software picks up momentum. that's where we begin tonight's market focus. the tech company's profit and sales topped expectations thanks to strength in its software and services businesses as the company transitions from hardware to software. the ceo says he expects bumps along the way but is still optimistic. >> in q4 we also had a good quarter. as i said at that time, we expect to see more good quarters. this is not a straight line up, i want to be cautious of that. but we are building some very solid fundamentals in the business. we've become a good software company, and good ea >> shares of blackberry higher by 13% today to $10.47. meanwhile, video streaming
company roku began trading on the nasdaq today after pricing its initial public offering at $14 a share. that was at the high end of the expected price range. that pricing values roku at nearly $1.5 billion. shares took off in their debut, look at that, up 67%, closing at $23.50. a drop in pharmacy transactions caused same store sales and revenue to disappoint at rite aid. the retail chain did report a stronger profit. but that was thanks to an a one-time fee the company received following its failed merger with walgreen's. rite aid shares fell about 11% to close at $2.03. chevron has a new ceo. the energy giant said michael worth will become chairman and chief executive early next year, replacing john watson, who is retiring. worth previously ran chevron's pipeline and chemicals businesses. chevron shares rose 17 cents to
$117.62. after the bell, kb homes said higher average selling prices helped its results which topped estimates. during the period, the builder also delivered more homes than wall street was expecting. shares initially rose in after hours trading and also finished the regular session up almost 3% to $22.22. the startup brokerage stockpile is bringing fractional share investing mainstream and hopes it can persuade teens and millennials to buy pieces of big name stocks in more than 1,000 companies and funds by opening an online account or using the company's app. the ceo of stockpile joins us to tell us why he thinks this is a good idea. because you run the company. so i'm buying pieces of shares, but you do it, you can buy a card that you can give to somebo as a gift with fractional shares on it or you open an online account with your company. is that how it works?
>> that's exactly right. you can wait until grandma or your favorite aunt or uncle gives you a card, good for nike or tesla stocks, for example. or you can come into our brokerage, open an account in three minutes, and start buying fractional shares of stock. the whole idea is, when you're young, you're told start investing early. you can't time the market, but if you start investing early, you've got a very good shot, especially if you diversify and do this regularly over time, to build serious wealth. the problem is when you want to start early, you don't have the knowledge or the money to do it. what we've done is broken down those barriers and made it possible for you to buy pieces of stock, fractions of stock so that even though amazon is $1,000 a share right now, you can come in and buy $100, and by a tenth of a share or even less. >> it's obviously targeted at least in part to people who have perhaps not been able to participate as you just mentioned in the market, but also millennials who have been a little bit stock averse in the
past. but is it linked to a regular brokerage account? because you have to be 18 to open that. do you have access to the fidelities of the world and the vanguards of the world and the like, or not? explain how that works. >> it's more than just linked to a brokerage. we are a brokerage. we are an sec and finra registered brokerage. we're like a mini fidelity or e-trade. aw we've just made the process simple and streamlined so you can get it done in three minutes and start purchasing your stock that day. i'll show you what my daughter's account looks like. if you can see that, you see it's a very visual experience. she owns stocks she knows something about, nike, tesla, alphabet, facebook. >> things she uses. >> that's right. she put in $25 in each of six stocks and she's got a horse
race going and she's kind of asking me, why is disney down and how come tesla is doing so well? it opens up great conversations. >> once they have money in the market, they start paying attention, that's for sure. >> they have skin in the game. >> exactly right. thanks for joining us tonight. >> thanks so much. coming up, want to take a sneak peek inside the most expensive home in a. the number of millionaires
on the planet is at a record. according to capgemini, there are 16.5 million high net worth individuals around the world thanks to a rising stock market. the world's wealthiest people hold $63 trillion in wealth. they are on track to exceed $100 trillion by the year 2025. and you would have to be very wealthy to purchase the largest and most expensive home ever listed in this country. the house is in los angeles's bel air neighborhood. our robert frank takes us on an exclusiv >> reporter: if this super modern ultraluxe smart house looks too incredible to be real, that's because it's not, yet. this is an animated rendering of what's expected to be the largest and most expensive mansion until the entire country. a mind-boggling 100,000 square feet at the record shattering asking price of half a billion
dollars. it's an estate so unique, it's been dubbed the one. this is what it looks like today. >> i don't care who you are or how much money you have. you can never build this house again. >> reporter: super developer nile miami showed us around the property where the one has been taking shape since 2013. it's possibly the most desirable site for a home on the planet. and our cameras are the only ones that have been allowed in. is this the best view in all of los angeles? >> for sure, yes. you have downtown l.a. to the ocean to the getty. this is the best. >> reporter: but the breathtaking views are just about the only thing that come naturally here. the rest is being built from the ground up, with top of the line material, including a virtual mountain's worth of marble. when it's complete in 2018, this mammoth structure will include a glass encased library, four-lane
bowling alley, 40-seat movie theater, an indoor/outdoor nightclub, and of course a room full of jellyfish, illuminated by black light, because why not? the gorgeous grounds will include four infinity pools with built-in conversation pods. plus the largest indoor pool in california, and a moat that circles the entire four-acre property. we're standing in the moat. >> it will feel like the house is floating on water. >> reporter: the only question, who will be the one to write the record breaking check for this colossal estate? >> i think there's a lot of people out there with a lot of money. they want something that no one else can have. this is it. >> reporter: for "nightly business report,. and from one mansion to the owner of another very famous one, in case you hadn't heard, hugh hefner, the man who built
the "playboy" entertainment entire died at his home, the playboy mansion. he was 91. hef was a controversial figure to be hour, but one inseparable from the brand he created. he found his company in 1953 with $600 of his own money and built the magazine into a multimillion dollar corpor and that is "nightly business report" for tonight. i'm sue herera. >> i'm bill griffeth. have a great evese
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