tv Nightly Business Report PBS September 27, 2016 6:30pm-7:01pm PDT
♪ with tyler mathisen .usine sneaker stumble. nike beats the street, but the road ahead has some people >> flirting with a shutdown. a spending bill that would keep the governmen up and running past friday's deadline is blocked. sound fami lashing out. why airlines want to hear frustrat flyers rant on social media. the stories and more tonight on "nightly for tuesday, sep good evening, everyone. and welcome. stocks rally on wall street, followin the first presidential debate. on that in a moment. but we begin tonight with nike. the stock fell sharply in initial late-day trading after it reported earnings. on the surface, the dow component's q looked pretty goo profit and revenue both rose.
but a key growth key metric there that the world's largest sportswe maker uses as a gauge of future demand slowed, and investors did like it. here are the numbers. nike earned 73 cents a share, wall strt expected just 56 cents. revee for the quarter came in at more than $9 billion. but that gauge of future orders was below forecast, and weighed on the stock initially. dominic chu has more on nike's resu >> reporte another earnings report, another beat by nike. they beat, of course, when it came to the profit number, and they beat when it came to sales. but this time around, the weakness in nike stock and the after-hours sessi came because of the indication of future orders that nike has on the books. this is what people are going to order in the coming months, so it's an indication of how much busine nike will have down the . this time around, nike showed some real weakness in those futures orders. they came in below expectations. but even more importantly, they
came in below expectations for certain key markets for nike. and that is north america, obviously, with the u.s. and canada, but then, of course, in china and then the emerging markets, as well. those areas of weakness are seen by many as perhaps becoming a little b more of an issue for that company down the line, and that's the reason why those shares are down in extended hours trading. remember, they were already down about 11% over the course of the past year-to-date pe and the last 12 months. so those futures orders really taking a dive for nike shares. for "nightly busine report," i'm dominic chu at the new york stock exchange. on wall street, stocks broke a two-day losing streak. the rally was held by strong reports on the economy and followed the first presidential debate. suggesting the markets are .iving the first debate decision a trump win, of course to some investors, would inject more uncertaiy into the market. but the close, the dow jones industrial average rose 133 points, to 18,228. the nasdaq added 48, and the s&p 500 was up 13.
stocks climbed despite a fall in oil prices. this is the prospect for a deal diminished. both iran and saudi arabia played down the possibili of a deal in a meeting taking place in algiers. iran has reiterated its voua vow, and saudi arabia said it would support a freeze but only if all players are committed to that plan. domestic crude settled down more than 2.5%. trade is a big issue on the campaign trail, and today the world trade organization cut its forecast for the growth of exports and imports to the slowest pace since the financial crisis. the international body says such a slow down could weaken long-term economic growth and should serve as a wake-up call, giving growing anti globaliz sentiment. the uncertainty around the election apparen not hurting consumer confi in the u.s. the conference board's index rose to its highest level in ni the report says americans feel
better about their jobs and their prospects the same, even though they do remain neutral on their wage prospects. > last night's presidential de was the most-watched ever, according to nielson's estimates. more than 81 million americans tuned in for the first one-on-o between democrat hillary n and republican donald trump. the numbers include 11 networks. they do not include, though, those who streamed it online through twitt o the next debate is scheduled for october 9th. well, sniffles and snarky comments may have gotten a lot of the attention in last night's first debate between ms. clinton and mr. trump. but that's not what really matters. what really matters to most americans is the economy. and both candidates did have a lot to say. steve lies >> reporte it's really very simple. tw dif visions of the right path to economic growth presente in the big debate last here's hilla >> i want us to invest in you.
i want us to invest in your future. .hat means jobs and and advanced manufacturing. innovation and technology. clean renewable energy and small business. beca most of the new jobs will come from small . we also have to make the economy fairer. that starts with raising the national minimum wage, and also guarantee, finally, equal pay for women's work. >> clinton's combination of increased spending and higher taxes will increase the deficit by a modest $200 billion over ten years. though some of her plans are federal mandates on businesses, like for a higher minimum wage or equal pay for women, that will be born by the private . and here is donald trum >> under my plan, i'll be reducing taxes tremendously from 35% to 15% for companies, small and big businesses. that's going to be a job-creator like we haven't seen since
ronald reagan. it's going to be a beautiful thing to watch. companies wil come, they will build, they will expand. new companies will start. and i look very, very much forward to doing it. we have to renegotiate our trade deals and we have to stop these countries from stealing our companies and our jobs. >> trump's plans are estimated to cost $5.3 trillion over a decade. th his camp says they'll pay for themselves through trillions of dollars of benefits from deregulati and renegotiated trade deals. so for a very unconventional race, the economic choices have come down to typical democrat/rn choices for the public. it must be added, though, the size scope and claims of growth from the trump campaign from his plans are considered by many economis as neither typical nor conventional. for "nightly busine report," m steve liesman. > the debate had an immediate impact on private prison stocks. shares traded lower today, following comme made by the democrat presidential
>> i'm glad that we're ending private prisons in the federal system. i want to see them ended in the state system. you shouldn't have a profit motivati to fill prison cells with young a. >> just last month, the justice said it planned to eventual stop using private prisons. the idea that states would follow pressured shares of two of the biggest operators in trading today. wells fargo's board is reported considering executive pay clawbacks. " the bank is looking street into taking back some pay from ceo john stumpf and the bank's retail operations, kari tolstedt. the board wants to make the decision befor stumpf testifies on thursday in front of a house panel on the fake accounts scandal. senators have gone af wells farg for forcing customer to sign arbitration clauses when they open accounts. but it's not just wells fargo. millions of americans sign away thei legal rights when they
enter into routine contracts with credit card companies, cell phone providers, even employers, which begs the question, are these arbitration clauses ryan wolfman is a law professor at georgetown university law center. professor, welcome. good to have you do it. with us. how many companies to have these kinds of clauses in their contracts, and what sort of companies are most prone to have them? >> well, nowadays, many large and even medium-size companies are moving towards this in the financia services sector, in the internet sector, and even many employers have mandatory arbitratio clauses with their employees. it's a growing -- it grg phenomenon. of. d is it fair to consumers or not? >> well, in my judgment, it's quite unfair to consumers, because it effectively means that the companies that have these mandatory arbitration clauses can break the law with no consequence, because when
there's arbitration clause, arbitrat itself is too expensiv for small and medium-siz claims. the only way to sensibly be able to enforce the law when you think it's been violated is by going to court. often, together, in class actions. all of these class -- these arbitration clauses these days ban class actions. and the supreme court has upheld that. i support a movement in congress and elsewhere in regulato agencies to overturn these previous decisions and ban these type of class action bans and ban mandatory arbitration. >> you know, i can almost hear people saying, well, of course, he's a georgetown university law professor. ofe he's going to be against these kin of deals. because he's >> i think that is not correct. because my -- my main concern here is not giving people access to the courts, although that's very important in our democratic system. t to deter wrongful conduct in
the first place. so, for instance, wells fargo, and we all know what happened with wells fargo. >> right. >> creating these fake accounts and churning their customers and charging fees. if there is not access to the courts for compensation, for people wronged by wells fargo, it's not just people that will be wronged and not compensated. but there will be no deterrents and deterrents is the key. i would like to see complete deterren and much less wrongful conduct and to go to court. it creates both no compensation and no deterrence. >> that was my next question. forgive me, sue. the rewards under arbitration, are they capped? >> oh, they frequently are capped, and they don't include things like punitive damages and the right to class action. but the problem is no one goes to arbitration in the first place, because it's too expensive. s say i have a $300 claim. my employer has cheated me out
because it didn't pay me overtime. i can't go to arbitration, becae in arbitration, i can only go alone, class actions are banned by many employers and i have to pay the costs -- often the costs of the arbitrator. the arbitration is a private system and private judges. and you have to pay for them. the beauty of our civil justice system, it's supported by the taxpayers. one more question. i stole her. >> no, it's fine. very, very quickly, professor. do most consumers know that they have an arbitration clause when they sign their name? >> no. that's the problem. these are in take it or leave contracts, in which you've signed up with their internet service provider, you've signed up with your bank and buried in the fine print is a mandatory arbitration cla saying if you ever have a dispute with us, sorry, you can't go to court. you've got to go to arbitration, and, by the way, you can't do it through a class action. so, in fact, you can't do it at all. >> brian, thank you. very interesti conversation. i'm sure we'll pick it up again
sometime. wolfman. >> love to be back. thank you. >> thank you, with georgetown university law center. coming up, investors who manage more than $2 trillion in assets say north carolina is bad for business. and they are demanding ♪ in washington, it's dejavu all over again. with just days before the end of the fiscal year, the senate blocked a spending bill needed to keep the government up and running beyon frida midnight. eamon javers following the story from our nation's capital. eamon, is washington creeping closer to a shutdown at the end of the week and what are the sticking points? >> it is creeping closer to a shutdown, tyler. they tried today to get this vote done. they weren't successful.
and that's because of this main stickingpoint, the democrats want to see in this spending bill. they want to see money for flint, michigan. you remember the lead water crisis there. they are very unhappy, democrats are, that they haven't been able to get funding to help flint, michigan, in that fight so far this year out of congress. they say this is their last chance to do it. republicans say, hey, wait a second, we'll take that up in a separate bill all together. let's just pass this bill this week to keep the government open. all of that sets us up for a showdown at the end of the week, whether or the get it done by october the 1st. so we'll have to wait and see. it typically, what you get is a lot of brinksmanship in negotiating, horse trading, going on right now. we expect they will get somethin done before we see a government shutdown this week. that's just an expectation, not a guarantee. >> i was going to ask you to handled cap it, because they do have the habit of taking the market right to the brink. >> yep. >> and increases volatility frequently. yeah, absolutely.
and what you could see over the weekend is one of those situatio where they have a temporary shutdown, they shut it down through the weekend and maybe monday where you have the national parks. but all the essential employees of the government would be working on monday. that's some of the scenarios we have seen in the past. that could be where we're headed here. ultimately, though, if republics are interested in passing this flint money anyway, just through a separate bill, it seems like we could be headed for a compromise where they just stick it in this one and be done with it. because a lot of members up on capitol hi want to get back home to their states and their districts to start campaigning. there is an electio coming up. >> quick final thought on this latest report, hacked into democrats' cell phones. >> yeah, it's interesting, tyler. now we're seein it expand from into their computers, into their phones. all carry these devices with us every single day. we know how much personal informn there is on their. of reuters reporting this afternoon the new allegatis russians may have been hacking into democrats' cell phones, and particularly possibly democratic
a new level to this story. still, very nebulous. we don't know who did it or why. >> but not hackers lying on a bed somewhere, presumably. >> yeah. >> eamon javers in washington, thank you very much. home prices show no signs of slowing. the case-shiller home price index rose more than 5% in july from a year ago. to near record levels. as we have been reporting, strong demand for homes and a shortage of inventory are helping to drive prices higher. but unlike the period before the financial crisis, people aren't borrowing as to finance their homes. if you're buying or selling a home today, you may be more frustrat with the process than usual. a severe shortagef appraisers is delaying closings and there is no short-term fix in sight. diana olick reports. >> reporte joy smith is on her fourth appraisal this 23-year veteran of the business has never been so busy. >> i get calls five, six, seven, eight times a day.
and i used to go far away to do apprai. bu there are so many, i don't very far any more. >> smith is busy, because she is one of the fast many shrinking appraisers. ironically, due to new rules designed to safeguard both borrowers and lenders. anyone who wants to become a licensed appraiser must now get 2,500 hours of experience in two years as an apprentice. but appraisers are now required to be onsite during an inspection result, appraisers see no reason to hire and pay apprentice we definitely overcorrected and i think there was some unforese consequences. initially, when they remove the trainee to be able to inspect the property, i didn't think they understood the trickle down effect it would have in affectin the entire mortgage some argue it's not just new rules but appraisal management companies underpaying still, as the number of appraise drops, the time line
for appraisals grow especially as low interest rates prompt more refinances. appraisal delays have jumped by 50%, just since the beginning of this year. >> you're seeing significant delays, yo see cost increases,e seeing rates expire. ep and without new recruits, the indus is aging fast. now more than 60% of appraisers are over the age of 50. >> if you're really, really busy, you don't have time to train anyone. and if you're not busy, you don't have anything to train them with. >> reporte cha to the new rules are being considered, but there's no quick fix. and in the meantime, the number of delays and the level of frustratio continue to rise. for "nightly businereport," i' diana olick in washin rental car stocks head in reverse, and ts where we begin tonight's market fo shares of avis and hertz were hit hard after avis' president and cfo said european demand in august was, quote, noted that weakened demand
believed the softness was and driven by security concerns in europe. avis shares fell 8% to 35.77. hertz dropped 10%, to 41.55. medical devices company, boston scientific, will buy endo choice for $210 millio endo choice, which makes products and services for treating gastrointestina conditions, wl become part of boston scientific's end scope business. sh soared more than 88%. to 795, while boston design civic stopped. kite phrma reported positive clinic results on a cancer treatment. juno is having a similar drug that may prove to be similarly successful juno shares finished up nearly 13% at 33.42. kite flew as well, up 9% to > american express will hike
its dividend 10% to 32 cents a share. the company's board approved a new $150 share buyback, this replaces amex's previous buyback that had 50 million shares remaining. shar of american express rose moren 1% on the day to 64.28. the mattress maker temper sealy warned that third quarter sale will be below expectatio, saggy, and sees 2016 sales down from 2015. the company also guided its full-year adjusted earnings lower. sh of the mattress-maker took some lumps, initially droppi more than 20% after closing the regular day flat at > t drive-in restaurant franchise sonic estimated fourth r sales and profit will be below expectations. the ceo cited lower consumer spendingn res and continued com as reasons for the numerical miss. shares of sonic initially fell on the -- after the bell news
following aal fractional day. a group of u.s. investors with more than $2 trillion in assets in north carolina says that state is bad for business. and they want change. the group is calling on the state to repeal the house bill -- the house bill law that makes it harder for companies to hire top talent by limiting protectis for lesbian, gay, bisexual and transgender people. eric spanberg with the charlotte business journ joins us to discuss the impact on business that that has had on that state. eric, nice to have you with us. welcome. >> thank you. th for having me. >> do we have an idea of how much this bill has cost the stat so far? >> well, the estimates range. there has been a high estimate of $5 billion. by the ucla williams institute, a law school there. a lot of people who support this law say that's grossly inflated.
locally, the c chamber of commerce says $285 million has been lost because of this state law. but this much is clear. events, companies, conventions, all are saying bye-bye to north carolina, because they are frustrated with this law known as hb-2. >> and charlotte, of course, racked by civic unrest, and demonstr over the past week back dating to the shooting of that individual last week. is charlotte really the epicenter of where this business impact has been felt? or is it statewide? >> it is statewide. but charlotte is the economic engine of north carolina, the largest economy, largest city. and so charlotte feels it as much if not more than anyone else. you mentioned the unrest. that certainly is not helping. that's not a chamber of comm type postcard. and then the largest corporate employer in this region is wells fargo. wellfargo, as you well know, has been eviscerated on capitol
in the past few weeks. so it's really been a rough go for the business community and the image-makers of charlotte, north carolina. >> so these investors with the $2 trillion worth of assets under managem want to see change. t what are the odds that this bill will either be repealed, that there will be a compromise among lawmakers? is there any hope of that? >> well, there was some hope over the summer, because the threat of losing the nba all-stare was hanging over the city of charlotte. even that was not enough to motivate the two sides to come to an agreement. the all-star game has been moved. and now most people don't think anything will happen before the election, and they're not sure anything will ha after the election, bec north carolina is controlled at the state level by republican super majorities that is veto-proof. there is republi governor. the republican governor who favors this law is replaced by his democratic opponent, it seems highly unlikely that the republic legislature would want to undo the bill that they
passed and fought to keep in place with a new democratic governor. i tell you right now, is a lot of pessimism and a lot of concern about still more losses in terms of events and corporate expansions. >> eric, thank you very much. sprangler with the coming up, is someone listening to your twitter rant over a delayed flight? the answer is -- yes. ♪ here's somethi a lot of us have done. our flight is delayed or cancelled, and in frustration, we lash out at the airline on twitter or so to those rants on social media do any good? do airlines even read the posts? a new study says yes, you are
being heard. phil lebeau reports tonight from southwest listening center >> reporte it happens thousands of times every day. travelers rant online about an airline, because their flight is delayed, or they have had a bad ex. >> i don't think they can listen to us. because there so many people who are flying and complaining at the same time. >> i don't think that the airlines are listening to the fact is, airlines are watching, and often respondi to what you put on social media. soutt airlines has a team tracking twitter, facebook and other online sites 24 hours a day, and when customers vent about a problem, southwest reaches out to them. >> the approach is really how can we help? wait a minute we hate to hear that, so what's going on? give us some information. let's see what we can do to straight this out. >> r social media teams help airlines by rebooking customers or just keeping them a little calmer by relaying the latest informa when a problem pops up. like in july, when southwest
cancelle over 2,000 flights due to a computer outage. and even though every major airline tracks and answers customers online, some do it better than others. for example, southwest answers almost half of the customers who mention the airline on social media. the best amo airlines in north america. meanwhile, alaska is the fastest, answering social media posts within three minutes, according to con verify social, which works with airlines like alaska and tracks the industry's interaction wit million of >> if you know that you can tweet a company and get a response and have your issue resolved withi minutes, that's a phenomenaexpe. an if you can do that, you will every single time. >> reporte more of us are taking out our phone whenever our flight plans hit turbulence exp say you should think twice before sending that tweet or go to facebook with a rant dripping in anger. say a calmer request for
help often leads to a quicker response. could end up resolving your problem that much faster. phil lebeau, "nightly business . to read more about how your complain about airlines are being heard on social media, head to our website, nbr.com. that will do it for "nightly bu tonight. i'm sue herera. thanks for joining us. >> and i'm tyler mathisen. thanks from me, as well. have a great evening, everybody. and we'll see you back here
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