The major averages finished the day at alltime highs thanks to Quarterly Results from some retailers which brightened the mood and which well get to in a moment. There were also incremental developments and u. S. China trade talks that investored interpreted as positive. Though as you know that changes from day to day. Here are closing numbers. The Dow Jones Industrial average 55 to 28121. The nasdaq gained 15. And the s p added 6. Now to this new report on the makers of opioids. According to a walgds a criminal investigation has been opened that role drug manufacturers and distributors played in fueling the countrys opioid crisis. The news sending shares of teva mallinkrodt and Amerisource Bergen sharply lower. Dow dpoenant Johnson Johnson down a Penney Meg Tyrell has thor to. T company are facing thousands of lawsuit over the role in the opioid crisis. Today another negative headline. The drug makesers and distributors disclosed receiving subpoenas from the u. S. Attorneys. That Johnson Johnson teva mallinkrodt and teva on the source side. And distributors. The federal opened a criminal investigation into Drug Companies examining whether they violated that act which the journal points out is normally used to go after drug dealers. Bernstein analyst rnie gao says he is surprised stocks movedlower. He says criminal investigations would be another thing. The report is that the probe is in the he remember stages but he also pointed out the stocks recovered a bit over the last month on potential expected relief in the lawsuit. Some Companies Reaching a tentative settlement framework with states attorney general over the opioid litigation but not all states are onboard. And oxy continenten makes its way through bankruptcy trying to get more state ag onboard contingent on the doj probes. A new york state case against multiple companies is scheduled to go t trial early nextear unless a settlement reached. Deadline today just another reminder the saga is frar from far from over. More nieb, meg tyrell enchts best buyiring on all cylinders heading into the Holiday Season. The Big Box Retail are reported better than expected earnings and raised guidance. That sent the stocks up more than 9 to a 52week high. Courtney reagan looks at what this brick and mortar Big Box Retailer is doing right at a time when digital seems to dominate. Best buy is riding momentum into black friday. The Consumer Electronics retail heed posted of a legislate 11th grade quarter of sales growth exceeding expect expectation. Plus increasing the foerngt for the year improves outlining for the Holiday Season. Last quarter best buy expected a Broader Consumer spending slowdown as a result of higher prices from tariffs. But the consumer has held on. Economic data points remain positive. And most retail groups expect holiday sales growth. Ceo cory barry said there is more certainty in the forecast and excited about the holiday zbloonz i think the best buy position, the tariff worry does not seem as severe. I think were past that but really the key here is you have a very healthy consumer. And that bodes well for best buy in a krrg like Consumer Electronics. The sfrongest categories it quarter from aplanselp head phones and tablets. Services sales like in home adviser total tech support and technology geared to Senior Living increased 13 over last year. Services is a great way for best buy to differentiate from online relevant retailers on companies only selling products. To extent that best buy sells individual services or more importantly services attached with products thats a daveiater in this shifting retail landscape. For Holiday Season they are offering next day delivery without a minimum purchase or membership. Its also adding 175 pickup locations in the norkds appear chicago at cvs and ups stores. Best buy knows Consumer Electronics are key items for the Holiday Season as rivs and executives said its ready to compete. For nightly Business Report, im Courtney Reagan at the new york stock exchange. So will the Big Box Retailers like best buy and others be winners this christmas in joining us tonight jan niffo ceo of j rogers be worldwide good to see. You good to see. You i know you think they will be winner this year and many like target and walmart and others have found a way to blend the brick and mortar with the Digital Sales and its starting to pay off now, isnt it . Well, bill, come on, you know the big boxes that arent winning are dead. The ones left have learned to fight with amazon. And best buy is a good example. They basically a are the last man expand sand are standing in the space of electronics paul the rest online and a lot of their business is online but learning to make a living doing that. The same true for walmart, true for target. Theyve had many many quarters in a row just like best buy of better numbers. 80s not just online. Yes, walmart is growing 40 year to year online. Last report target growing over 30 year to year online but still growing out of the store as wl. The bilk boxes have figured out we can play online, we can play out of the store and use the store against amazon. And 80 of what target did last time in Online Business was ctly tied to the store. So theyre using t store amazon doesnt have stores. Theyre fighting that battle pretty well now. We also heard on the Conference Call with the ceo of best buy that she has focused considerably on the Customer Experience when they are is it the store once you get them in the store whether the goek squad or the personal attention that you get, does that differentiate best buy from the other Big Box Stores like a target . I think theyre all daveiating themselves by what theyre doing in store. Think about it. It depends on the expectations. If you buy from walmart now you can drive to the store. Theyll ce out and load it in the car and you can drive off. Or you can come in and pick it up in the tower. Best buy has the same thing driving the great in store experiences put in microsoft, put in california kitchens, put in magnolia. They have lots of interesting things going on in the store. So theyre all doing things to make the customer feel better about the store. And the level of service is not so important as the expect aches of service. Youre not looking for much real hand holding going to walmart butf you can drive through and pick it up or drive in and come and pick it up from the tower and be out in a hurry or go in and get what you want or bring stuff back to the store you feel like you get good service. I dont know what you think but amazon gives good service from the poif of once the order gets to me but other than that i dont have an emotional involvement with amazon. Quickly, lets not forget, all of the companies are enjoying success because the consumer is as strong as they are right now, right . The consumer is fabulous. The unemployment at 3. 5 . Wages rising 3 to 3. 5 depending on the sector. All kinds of growth in savings. The highest savings rate in a long time. If you want to buy something, you can. We have all the good things going on with the consumer. They feel good about you saw the report today. We were at 125 plus on consumer confidence. That wasnt fabulous but it was still very strong. Right. Were going to see good consumer sales for the Fourth Quarter. Probably see 4 for holiday. Thats the best in a long time despite the fact that weve got the shortest selling season you can get between thanksgiving and christmas. Its going to be a really good year. Six fewer days compared to last year. For sure jan niff with j rogers if i mayen worldwide thank you. Thank you. The president of the dallas fed said today that expects Fourth Quarter growth we can. Robert cab lynn cited the pull back in spending due to trade concerns. Im still of the view and were off the view potential in the u. S. Is around 2 . For people disappointed in that, im disappointed in that. And we should be because were very highlyeveraged as a country particular i at the government level. But if you want to grow faster we need policies away Monetary Policy. Mr. Kaplan also said that he thought Monetary Policy was in the right place. Now something that jan niffon mentioned a new report says consume confidence fell a fourth month in november accordin to the conference board. The dip suggested Economic Growth in the final quarter of 2019 is remaining weak. But overall confidence levels are still relatively high and exists say that that should support solid holiday shopping. Sales of newly built homes fell sloilt in october compared with september. But stocks of the big builders moved sharply high are. Diana oil being explains. New home sales did fall in october compared ito with september but septembers number was revised high are. The monthly drop really doesnt mean much. Especially because october sales were up a whapg 32 compared with october olast year thats why we see the big build resist drops dr horton len that where kb home and poulioty up dramatically year to date. But it looks like there is ram to grow. Builder sales have been bowied by lower Mortgage Rates preponderates down a full percentage from a yr ago. Building benefit from a shortage of existing homes for sale. Now price gains are heating up again according to kait schiller. For new homes, though, the median price down 3. 5 annually in october as demand is clearly on the lower end of the mechanic. Builders are trying to pivot to meet the demand demand but till up against the high cost for land, labor and regulatory compliance. The supply of newly built homes for sale is better than the existing spli but builders are still not back to normal historical levelsf pruks. And dand is now much stronger than normal. For nightly Business Report im diana olick in wealthtrack. And as a report op home prices showshat gains accelerated in september. According to the s p core logic caseschiller index prices rose 3. 2 . Of the 20 cities making up the index, phoenix, charlotte and tampa saw the biggest gains. Home prices ricing in the sun belt where house somhing more affordable than east or west coast. What is todays housing data telling us about the Housing Market overall . Odetta curby is deputy chief economist at a Financial Corporation and joins us to bach talk about that. Odet, welcome back. Nice to have you again. We have a lot of data to go through. But if you could give me an umbrella of how you see the state of housing in the u. S. Right now. Absolutely. The Housing Market is really has momentum going right now. As you can see from the new home sas data, the lower Mortgage Rates are pushing people to buy homes where they can. And you can see from the s p caseschiller we have the situation of high demand against limited supply of homes for sale, resulting in faster house price appreciation, especially in the sun belt cities. Overall, you know, you can characterize this market by increasing demand but very limited inventory for sale. Why now . Why are we seeing this acceleration . Interest rates have been low a long time. The jobs market has been strong a long time. And were for the in the summer months when typically people start looking to buy or sell a home. Why are we seeing it nodo you think. Well there is a couple of reasons. First, you know, it takes time for potential buyers to really realize were in a healthy market of historically low rates. But the job market has been fairly strong. And wages have been rising. Buyers are taking advantage of this of this exact market where the afford ability is the highest its ever been. So talk to me about some of those weve talked about the sun belt cities certainly. With you where else do you see exceptional strength . So you see a lot of strength in some of the tertiary markets. New york, the east cove, west coast markets last year when Mortgage Rates went up became unaffordable. You have some pullback especially in firsttime home home biters now the millennial home buyers are moving to phoenixs and memphis. Thats why y see the skrerls in some of these cities. Do you think in lasts . Were seeing some momentum going into 2020 as long as Mortgage Rates remain low and have a healthy labor market. We should see demand continue to rise especially with the demographics of millennials entering the firsttime home buyer age. The issue of course is is there enough homes for the people to buy . Will inventory keeppace . And really the good news there is that builders in this q4 have started to build more homes. And we should see that realized in early 2020. But will it be enough to keep pace . Remains to be seen. Indeed it does. Odetta with First American Financial Corporation. Thank you, happy holidays. You too. Time to look now at some of upgrades and downgrades np chipotle was upgraded at cowan, citing the rapidly growing Digital Sales. Price target 970. The stock rose more than 3. 5 to 815. 84. Deckers was upgraded to outperform from nurmt at baird. The analyst cited Solid Earnings and strong execution. The price target 205. Shares rose more than 1. 5 to 157. 68. And moulton cores downgraded to market perform from outperform at bmo capital saying management plans plan to lift sales growth doesnt go far enough in his opinion. Price target, 55. Shares fell 2. 5 to 51. 06. Still ahead tax proposal that is would hill billionaires and millions more mo make a lot less. On the campaign trail, a number of Democratic Candidates have said they are in favor of increasing taxes on the wealthiest americans. One of the most outspoken of course on the issue has been senator Elizabeth Warren. But she has other tax proposals, some hitting those who are no where near to being billionaires. Here is robertfrank. On the campaign trail, Elizabeth Warren says she would only raise taxes on the rich. So when you make it big, really big, when you make it top one tenth of one big. Pitch in 2 cents so everydy else gets a chance. But along with the wealth tax targets with 50 million or more she proposes a dozen or tax ynzing including one on those making 250,000 a year. Her Social Security plan would be funded with a payroll tax of 149. 58 op those earning that much o more. Affecting more than 5 million american households. So a tax pairing making 350,000 a year would pay an extra 1480 oh a year inncome taxes. She would also limit deductions for those making more than about 320 a year and restore the old top tax rate of 39. 6 . That means the top federal incomes tax rate would be over 54 . Thats the highest since 71. For those living in new york city or california, the combined federal and state taxes would be over 67 . And its not just wage income. Investment income or Capital Gains would be taxed the same rate even when you dont sell. Now right now Social Security peril taxes are capped at 133,000. Bernie Sanders Joe Biden and Pete Buttigieg would oh raise that cap effectively also raising taxes on those making more than 133,000 a year. There is a lot of discussion about raising the cap in fact there is a bipartisan proposal that doughnut hoe holes the top stocks it at a point and picks it up when the firefighter the firefighters wld continue to get a break. But over like 250, thats pretty popular eliminating the cap to try and bring sofltcy to the Social Security system. But paying for the sofltcy means even the nonrich may have to chip in more. More nightly Business Report, im robert frank. A Strong Quarter for dicks sporting goods. Thats where we begin the market focus. The companys Quarterly Results topped analyst expectations thanks to growth in apparel and foot wear businesses and 6 pop in same store sales. And raised full year earnings outlook for 20. The shares rose 19 to 46. 77. Abare crom by appear fitch fell short of wall street estimates with the same store sales flat. The company cut the Sales Forecast citing brexit and protests in hong kong impacting businesses at international stores. A and f shares fell more than 2. 5 to 15. 91. The discount retailer dollar tree missed earnings estimates and lowered the profit forecast for next quarter and blame tariffs. Shares fell more than 15 . To 95. 26. Hormel is also factoring global trade uncertainty into its outlook. Anticipating higher emn prices skippy and sm posted mixed results beating Earnings Results but missing revenue. The shares rose more than 3. 5 to 44. 28. Cracker barrel missed profit estimates with the restaurant chain blaming the short fall and less foot traffic during the quarter but saying sales growth outpaced the rest of the casual dining industry. Shares dropped about 4 to 151. 13. After the bell, Enterprise Software company box beat revenue expectations helped by adding more customers to the cloud content management platform. Proves profits were in line with estimates. Shares nirnly re in after hours trading ton closing the regular session up almost 1. 5 to 16. 70. Also after the bell dells revenue missed expectations hurt by higher costs and lower demand in server unit because of those trade tensions whicho with china. Shares volatile in the after hours trading closing the rer session down more than 3 to 53. 19. 2019 willot go down as one of the best years for the auto indust. In fact sales around the world have posted the biggest decline since the recession in 2008. Phil lebeau elains why auto sales stalled. Ever a a decade of building and selling more and more cars around the world, auto makers have been forced to hit the brakes. In the u. S. , sales softened slightly. As they have in europe. But the bgest decline is in the worlds biggest auto market, china. Where sal are down 11 this year. As a result, f says Global Auto Sales that peaked at almost 82 million in 2017 have dropped by almost 5 million vehicles since then. Chinas slowdown is due to a variety of factors, including e enof some government incentives encouraged the public to buy certain vehicles like electric cars. Meanwhile sales in the u. S. Have eased due to americans buying a Record Number of cars and trucks over the last four years. In next, theyre due for a break. This slowdown is one reason some auto makers like gm have shut down auto plants as they right size the operations. Is likely to continue in 2020. Especially overseas where the Auto Industry still has too much capacity. Meanwhile, fitch says that auto sales worldwide are expected to be at, to slightly lower nextier np phil lebeau, the nightly Business Report, chicago. And coming up, how the trade war with china is actually helping feed the hungry. Here a look at what to watch for tomorrow. The Federal Reserve releases beige book. Which is an anecdotal look at the economy acrs the cntry. Pending home sales and Weekly Mortgage applications will give investors and home owners more insight into the Housing Market. Deeres earnings offer insight into the American Farm economy and the impact of weather trends and trade uncertainty. There is a lot to watch for wednesday. S we mentioned earlier, optimism about trade lifted the mood on wall street again today. Chinese officials said they reached a skens with us the u. S. Counterparts and resolving certain problems suggesting that progress is being made in those talks. In the meantime, though, American Farmers are not able to sell as much of the agriculture products to china as they once did, including beef, poultry pork and produce. So the American Government has stepped in to pick up that slack. And you might be surprised to find out where all that surplus food is going. Kayla tausche has our story. The loading dock at the Washington Food Bank busting as trade tensions sim are and Farm Business overseas is falling. What would have gone to china now steered to shelters churches and schools. So far the u. S. Department of agriculture has bought and distributed roughly 1. 0 billion of protein and produce. And is budgeted for a billion dollars more. Its all part of the 28 billiondollar aid program for farmers hit by retaliation. This shient arrived from usdda awaiting pickup eeshlg the stuff that farmers couldnt export and sell so usda bought it and send it here. Stood fare like gallons of mill and Cheddar Cheese but what you wouldnt have seen before now is all the fresh fruits and vegetables. Thepal Area Food Bank saw shipments from federal programs rice 77 in the last year. These are all trade mitigation products. Youll see that it will say t. She is the food bank ceo. Those qualifying for programs the holidays should be brighter. We have more protein, dairy produce people will have on tables. Daryl wright helps set the table and menu at this Washington Community kitchen. And today we are doing beef and bean soup we get all the ingredients from the usda. Wright says they make 20 oh more bowls of soup a day. More takeout peeps and popup farmer markets in underserved neighborhoods. With the food from the usd. A ive done floating market we pack up as much fres produce and meet and dairy and fruit on put them on the truck and goo to the food deserts with no no grocery stores. He says its not forever but a blessing while it lasts. While im appreciative of farms wishes to capitalize off of investments, i lls look at the many millions of people who are living below the poverty line who this food to feeding and allowing them to thrive. Amid a crowd of unserntd certainty for farmers a Silver Lining for others in need. For nightly Business Report, im Kayla Tausche in washington. And before he go, here is a look at the numbers on wall street. The dow rose 5 a pipt. The nasdaq gained 15. S p added 6. And that is nightly Business Report tonight. Im sue herera. Thanks for joining us. Im bill griffeth. Have a great evening. See you tomorrow. Narrator funding r this presentation is made possible by. Man babbel, a language learning app that teaches real life conversations and uses speech recognition technology. Daily 10 to 15 minute lessons are voiced by native speakers and they are at babel. Babbel. Com. Narrator funding was also provided by. The freeman foundation. By judy and peteblumkovler foundation. Pursuing solutions for americas neglected needs. And by contributions to this pbs station from viewers like y, thank you. Woman and now, bbc world news
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