tv Nightly Business Report PBS July 1, 2016 7:00pm-7:31pm PDT
this is nightly business report. >> flat force. stocks start the second half of fourth not exactly with a of july weekend higher, barely, after the best weekly gains of the year. >> a look at the tug of war in the market and where stocks might go from here. >> and all american picks. our market monitor says if you believe in the goldu srks of a, he's got three stocks for you. >> welcome to the second half of the year. the fireworks on wall street fizzled a bit today after all the pyrotechnics in the last week stemming from britain's
vote to leave the european but after a tum, start, it turned out to be the best. the dow jones industrial average up 19 points to close at 17,949. nasdaq ad about 20 and the s&p 500 taon four, but closed above the 2100 level. p rg its biggest percentage gain in about eight months. >> so, we now know how the first half ended and the sthaf started. the question for investors now is what's next? >> bob pisani takes a look at the issues stocks face that could be market movers in the second half of the year. >> it's the start of second half of the year and after an already rough first half, the big question is where do we go from
here in? n alternative to the tension stocks and the bears who believe valuations and earnings estimates remain too high and that t the year. there are all terrontives always have been. of course, there's always gold. gold hit a two-year high today and that's giving a major boost to gold etfs like gld. as for earnings, while they will not collapse, estimates for an increase in the second half are dependent upon a lot of things going right. there's two big issues. first, lower interest rates and because the banks make money on higher rates, a greater difference between long and short rates. a dollar spike is another big issue. a spike in the dollar at the end into a huge problem for industrials and many technology stock, all of whom
cited dollar strength at that time. besides earnings, there's plenty of other events that could move the markets. like a u.s. presidential election. i'm bob pisani at the new york stock exchange. >> june auto sales are showing the american consumer is still buying cars and trucks at a near record pace, although it is gradually lowing downful it's to have hit a plateau andal as phil lebeau tells us, that could mean good news for americans looking to buy a new ehicle in and a half of e a busy one at auto tealer ships around the country. heal i consumer confidence will convince many consumers this is the time to buy new wheels. june sales for the largest automakers were roughly in line with estimates. with fiat chrysler continuing to grow sales year over year,
thanks to strong demand for jeeps. the brremains red hot despite negative headlines about the death of an actor linked to a recalled grand cherokee. overall, pick up truck sales a seeing double digit growth thanks in part to a strong housing market and low gas prices. but seven years of surging sale, many americans have replaced their old car or truck with a new one, so dealers are having to work hard means if you're lo buy in the sthaf of this year, you'll likely find hefty inse incentives it can top sales, is up for debate. au s many are hoping that july and august, which are typically tw year, will once again deliver hot summer sales in the auto industry. nightly business report, chicago. >> well, not only is today the
start of the second half, it's also the first day of the fiscal year for state. and new laws take effect all across the country. jane wells takes a look at some of the new ones and rather unusual one that go on the books from coast to coast. >> many so-called normal new laws are take effect today across country like here in los angeles. the first of many new minimum wage hikes begin. now going up to $10.50. there's a law going into effect that you can no longer wear ear buds in both ears while drivinging a car or bicycling, but there are the unusual laws and the ones that raise eyebrow professional cheerleaders like the raiderettes must be paid minimum wage, have sick leave and have same benefits as team staff. many narld, powder, apparently a thing, will rem ye.
vermont has enaekted the first labeling law. coke will be pulling some lore products off shelves rather than sp and has made sawed off shotguns legal. sawed off as any barrel, 18 inches or shorter. by the way starting today, indiana will be charging fantasy sports sites $50,000 to operate in the state, but no these laws are as weird as some of the laws thask on the books for a long time, inc connecti where a cue coupler isn't a cucumber unless it can bounce and in arizona, banned from sleeping in bathtubs. donkeys. >> no donkeys in the tub. that's really something. all right, manufacturing data from june -- only on nbr. showed a better than expected gain, signalling that things might in that important sector.
construction spending full for the second month in may. this follows april's decline. in more than five years, back-to-back declines could cause some econo lorer their second quarter growth forecasts. there's no dou t federal reserv will ha a lot of its plate. stanley fisher sat down with sara eisen. >> everybody's yur out what the brexit effect will .e on the >> we're going to have to wait and see. it clearly is a huge event for the uk and imp event for europe. our direct trade with britain is is not going to make a huge can i have reince to us, but it could set off, there are a lot of things europe, for the united kingdom.
>> he's fairly optimistic that the data has looked better since that weak report >> the u.s. economy since the very bad day we got in may on employment has done pretty well. most of the incoming data look good. now, you can't make a whole story out of, into a month and a half of data, but this is looking better than it had before. >> with brexit raising the political risk around the globe, fisher did wn in november could raise uncertainty for business and impact hiring and investment, but he did say it won't influence the feds. >> is a source of uncert it's not a source of additional uncertainty, if any, about monetary policy. we will do what we have to do in accordance with the law. we are not goin get into, oh,
he sounded relatively positive, investors aren't so sure. in fact, if you loe futures market, they're pricing in a fed int increase until 2018. that means no action this year and none the following wreer. we'll see if the markets or the federal reserve has it right. for nightly business report, i'm sara eisen. n it was a big month raised nearly $70 million in june and while it was a good month for her, it hasn't been the best of weeks for the presumptivity democratic nominee headlined by a meeting between bill clinton and attorney general loretta lynch, which led to damage control. john harwood joins us from washington. on and how? >> look, this was a big mistake by president clinton and by loretta lynch to have this
meeting. according to clinton an lynch, there was a chance meeting on the airport tarmac. they were in separate planes. bill clinton went to her plane. they've known each other. he pinted her u.s. in in 19 u 99, but given the fact she's overseeing the e-mails, it was completely inappropriate for the meeting to take place and generated a political backlash. >> i know she addressed it at the aspen id basically said she will hold by the findings, but jo mentioned, look xwood. is wha she said today enough to headlines?art >> i don't think so. republicans are going to keep hammering this with good reason she said herself this had cast a shadow over the investigation. she said it wasn't going to affect it, but she said that's how people view it on the outside. that is great fodder if you are
a republican politician trying to hurt hillary clinton. of course, some of this will depend on what the recommendation of those career prosecutors did an what happen you know, she has not said she will recuse herself from the case, sue. she said she would simply accept the recommendation, but as long as the attorney general has not recused herself, we don't know how she's going to handle it and what that recommendation is going to be. gl do we know anything about how this meeting came about? just happenstance or -- did somebody call somebody? be on the tarmac, you want to get together? >> according to what we've heard from both camps, the bill clinton had an airplane on the tarmac. he had been playing golf. lynch had been on busi
bill clinton saw it was there and approached the airplane. not something he should have done. lynch said she would not do it again. this was a mistake that was self-inflicted and not good for hillary clinton. coming up, a market monitor is says if you want to bet on the u.s. economy, there are three stocks you need to have in yo portfolio. he'll tell us what they are in a new working paper suggests some executives down play that.ce leading to serious
joibing us is one of the authors, chairperson of the finance department of boston college's carroll school of management. what did you find? >> well, this, we have a lot of information and you know, say you want to go in and buy a shirt at the gap or go buy groceries at the whole foods, you're going to look at your phone. where is driving direction, store hours, so we can gaugen a our proxy for what corporate earnings are going to be. so, you have a proxy there and what you found is that the executives who were talking about give lg forward guidance
on a conference call, that they would down play the bullish forecast, why? >> i think there could be several explanations. but the way we te research is w tried to get information that's not really available until today. and using the business y to what managers new, so we're looking at what's going on in the quarter and if we see that say consumer activity is high, then we think it's going to be good news. but what we find is when it i going well, intivity in the fact, what managers do is down play this information. so you're right. we find that they issue guidance and in the conference call, the
tone of the conversation typically is more negative. it could be they're trying to manage earnings and make it more smooth. i it could also be they're worried about lit gracious risk, so they don't want to ove anythi. the last explanation could be that they're doing it for personal gain. >> yes, thre from the abstract, by personal subsequent stock trading opportunities. sounds as though they down play what's going well and then they buy for their own account or they buy back shares. is that the allegation? or is that what the shows you?
we have a limited number of firm, but indeed, it seems that things are going well during the quarter anthat, it seems in the period right aft earning an k it seems there's an increased buying activity. that's right. perhaps this active is is happening. >> that's a ve. >> it's preliminary evidence. this is not a smoking gun. we need to make an ape sumgs th see on our indicators, a big assumpti. we don't know what they know when they make these purchases, but it's definitely some evidence that you kind of scratch your head. what's going on here. >> okay, on that note, thank you very much for joining us. >> thank you very much. a deal with major league baseball and that's where we begin tonight's market focus.
a one-third stake in rg, the the video division of the mlb advanced media. the price, $3.5 million. given the option to buy an additional 30% stake in 13 years. $98 even. oracle has been ordered to pay $3 billion this damages to hewlett-packard. a california jury found that oracle violated a contract by refusing to develop new software updates to support hp's new computer servers. orac said it would appeal the verdict. up eight cents. hewlett-packd up 8%. fuller industries going to buy the privately handled jay cof nearly $580 million in an all cash deal. they will become a subsidiary. current management will remain in tact. shares up nearly 7% at $69.18.
nike cofounder phil knight has stepped down from his position as chairman of the athletic company's board of directors. the ceo will now take on the new chairman position and knight will become chairman amer tuss, whh means he can still oversee board meetings. shares up marginally. l. six members resigned after failing to remove the company's c eric o following a failed merger attempt with rival energy transfer equity. despite the resignation, williams says it stands by the current ceo. shares fell nearly 5% to 20.56. warren buffett's berkshire hathaway way has applied to keep and possibly expand its stake in wells fargo. an application to the federal reserve showed buffett's personal stake combined with berkshire's top 10% because of buybacks by wells fargo, which
reduced the amount of outstanding shares. the federal reserve must authorize any transactions that put an investor over the 10% threshold of any bank. shares of wells fargo were relatively unchanged after closin a fraction. monitor is betting on the future of usa. he has no, ma'am names that are going to benefit. this is his first time joining us on the program. he's cole smeed of smeed capital. it's okay. you're no rookie, i know you're not. let'co sue just me good enough for buffett, it's weeks, and here are the geriatrical old man who's very wealthy and greedy and he's asking the regulator to buy
more. what's the b residen real esta bank in america. he's a very bright view of the feature. k muc of what's gone on the last two weeks in terms of sentiment, people are getting the opportunity in the next ten years is being mr frustrations of today. >> let's go to nrc incorporated. the nation's fourth largest homebuilder. why do you like it? >> they have a great business because most homebuilders develop land. nbr does not. they use a pricing model to gel. most profitably build homes than any company in the united states go back to wells fargo. you've got buffett buy y t yet to buy houses and housing after the '08 depression, there are few build rs in relation to the past housing. i guess it is, you sell things for the house on ebay. ebay is your pick.
a lot of people would notice right off the top that they get a lot of their revenue out of the uk. are you worried about that? >> no. because they provide transactions. the primary e commerce platform for the small business for the world for that matter and what they provide are unique items. i'm a left-handed golfer. if i want to go buy a pair of used clubs, there's one market in the world that can provide me that. is it a commodity item? ? . you can go to amazon and walmart, but e may is the unique item marketplace for the world. >> cole, i'm going to put you with our executive producer, who's also a left-handed golfer. cole smeed. have a great fourth. coming up next, there will be a record number of drivers on the road this holiday weekend. one guess what's fuelling the traffic.
lower gas prices led to drivers racking up a record number of miles. more than 3 trillion of them, but also a deadly year. the national highway traffic safety administration says fatalities in 2015 rose nearly 8% to 35,000, the most in seven years. and naturally, those numbers come out as aaa says this weekend will be the busiest ever fo. 36 million. among them today on the new jersey turnpike in ridgefield. and she's got who's drwh >> hitting the road this long holiday weekend, odds are,
you're going to sit in traffic. aaa reports a reco breaking $36 million will be right there with you making it the third consecutive fourth of july weekend with an all time high number of auto travelers. the reason why, ga 2005. aaa r reports the national average is at $2.28, which has drivers eager to fill up and go. >> i plan on taking a long ride up. really have no destination. just looking for a really long ide somewhere. >> gas prices definitely help out. it's a big incentive for taking long rides. >> unless they get over the $4 driving.at's the only way i >> thank god it's not li. highe nationwide are on the west coast least expensive market rs , south carolina, mississippi, but not everyone is traveling
a total of 43 million americans will be traveling this fourth of july, 3.3 million will travel the highest area of growth in aaa survey. another 3.the 2-by cruise, rail and bus. still, some are avoiding travel. where should i go? i have a beautiful pool and the roads are crowded. >> for nightly business report ridgefield, new jersey. i'm kate rogers. >> i'm with her, but if you are planning to drive, you may use one of three popular traffic ark apps. which gets you where you want to go faster? eric takes an unscientific look. >> it's road trip season. so which map app will get you out of t on to summer fun the fastest? we put the apps to an unscientific test with three drivers, me on google maps, nick and ways and betsy on apple
maps. starting at the same time for three lags. no racing. to see which one gfa m accura time estimate. the day had highs. >> what a beautiful road for a road trip. >> and lows. >> so, take home. >> how did the apps do? google and ways were neck and neck for most of the drive with my google maps edging out the slight lea this fourth of july, we're gi .y gets two and apple maps into third with just a sp. >> and finally tonight, the fout of j our country's independence of course and boy, do we celebrate. americans will pend more than $6.5 million on july fourth food.
including 150 million on hot dogs, 900 million pounds of beef and chicken. also, the nation's top beer drinking holiday. might not be surprised to learn. in fact, nielsen says we spend more than $1.7 billion oaf the fourth on beer. that's just my house. >> that's a party, right? >> got it. >> hope you guys have a great nightly business report. thanks for watching. >> y'all come on over. see you back here on m
pete: terrorists strike in turkey. the supreme court issues a big ruling on abortion. and political fireworks before the holiday weekend all making for a busy week. i'm pete williams in for gwen ifill. tonight on "washington week." >> she hasn't done anything about what's going on, all right? isis was formed during her tenure, isis is now worse than ever. >> every day donald trump proves he's not in this for the american people, he's in it for himself. pete: acrimony between the candidates this week and hot-button issues flare up over waterboarding, benghazi, trump anxiety and clinton's emails. terror in turkey, as authorities investigate who was behind the airport attack, lingering concerns back home. >> it would be a surprise to me