Topping our news, the dow and the s p 500 hitting new highs again on wall street. Well have more on that in just a moment. But after the closing bell, a dow component out with its latest results, disney reported a solid quarter. It earned 89 cents a share right in line with analysts estimates, and revenues came in slightly better than expected. Disney shares fell a bit but after hours rose a percentage point. Disney earnings coming right in line with expectations on better than expected revenue given by better thanet projecte results by the parks and resorts. One hot topic, cbs announcing director streaming services for core cutters would give them more in the works. They are confident in the value of the cable tv bundle. Will there be experimentation . Yes, i think ithi is possible. Were taking a cautious approach here because we believe the prudent thing to do is to do what we can to maintain the value of what is obviously a valuecreator for this company and for a lot of other companies in the media space. Iger noted the director consumer in many ways has streaming service but he is more focused on improving the value of the bundle. For nightly Business Report. And well see how disneys earnings play out tomorrow. But today, investors were encouraged to buy stocks after mario draghi, europes top central banker deepened his commitment to stimulating the growth in europe. And new claims for Unemployment Benefits fell more than expected last week. By tend of of the session, the dow rose to 17,554, a new record. The nasdaq jumped 17 and the s p rose 17 points to its new record high of 2031. And with the indexes having set record after record you would think it is an easy market to make money in. But then why are so many of the Fund Managers struggling . Dominic chu has more on the difference between the active and passive funds and what it could mean for your investments. When it comes to investing there are two major schools of thoughts. The first is seeking Management Investments that seek to outperform the market. The second is just finding a way to invest to match the markets returns. There is a big debate on wall street about which is better, those who believe the rates can invest in superior return, believe in something called active management. Those who believe the market cant be consistently beat and those who believe in investing in the market may be the way to go. So far this year, indexers have been able to claim bragging rights. According to Investment Research firm morning star, the average mutual Investment Firm has gained 5 by the end of october, meanwhile, the average fund has developed by 4 . Vanguards total Stock Market Index fund is the biggest Stock Index Fund in america with around 370 billion in assets according to morning star, gaining 10 to date. The biggest is the growth fund of america with 142 billion in assets, gaining about 8 so far this year. Proponents of both point to their own stats showing their superiority but many Financial Advisers believe there is a role each can play in a welldiversified portfolio. For nightly Business Report. And more on active versus passive investing, the founder of his own management firm, glassman wealth. Barry, thank you for joining us. Are individual investors better off with one style of investing over the other . What do you tell your clients . Well, keep in mind that this is not a new debate. This has been going on for a long time ever since indexes were invented. But i think there is room for both, there is room for indexes for certain categories of a portfolio. And then there are certain places where you can find index so passive certainly does make sense. There are pros and cons to both obviously. Lets go over some of them. What would you say are the main pros for passive investing . Well, the pros are fairly easy, typically low cost, they dont try to outperform an index. So they dont actively trade. Therefore, theyre tax efficient. And then lastly, a lot of them do beat most active managers over the longterm. And you dont really have to worry much about it. You just put your money there and youre done . Set it and forget it. Set it and forget it, okay, what about on the active side . What are the pros there . Well, for the active side i believe you should use active management. For example, there is not an index. We happened to use the strategy for example that is a longshort stock strategy, the manager can invest in certain investments, hoping they go higher. There is no index. You should use the active Management Index where it is not really right for you, you choose not to be in the index. The bric, brazil, russia, india, china, they are dominating the emerging markets, and they were not leaving room for singapore and so forth. Lastly if you do believe a manager can beat the index then you should certainly consider their active management. You know, one of the reasons why a lot of investors dont like, they put their money in what was a hot fund only to find out maybe the next year or the year after it does poorly and theyre disappointed. What is the advice you give to others whether they put their money in an active fund or not . This is the biggest reason why people should stay away from the active management. If theyre going to make the human decision, the gut decision to sell something after it is performed, so if they choose to go with a team, you just have to realize there is going to be a year or two where they absolutely will underperform the index. What you dont want to do is sell out after they have underperformed and then just choose another active manager who has recently outperformed. What you find is people just start selling low and then selling low, and then selling logan. It is a recipe for vast underperformance. A couple of months ago you remember that warren buffet told his wife when he is no longer around she should put the money into an index fund. And that surprised a lot of people. Under what circumstances does this advice make sense for individual investors . I love this thank you for bringing this up. I love this example, keep in mind that warren buffets wife, upon warrens passing he advised her to invest in the s p index, but remember two things firstly she is not going to follow the fluxuation on a daily basis and really will not be impacted if she sees a 40 loss in that. Keep in mind for her to invest all her money or inheritance in the s p 500 actually diversifies her portfolio even more so than owning just birkshire hathaway. Barry, thank you for all your thoughts. Barry glassman with glassman wealth services. And after the bell today, bank of america further cut its reported Third Quarter profit by 400 million due to higher legal costs that were associated with a multibank investigation into fortune currency trading. You remember last week city also revised lower quarterly numbers for the same reason. The cyber attack on the Payment Systems a few months ago is wider than originally thought. The Home Improvement chain thought that 350 million more addresses were exposed, besides the others compromised. Home depot said originally target was attacked in a similar way last year. Coming up, why one small european country is stirring up calls for reforming the tax code here in the u. S. The republicans are spelling out their agenda today. House Speaker John Boehner and mcconnell wrote an oped piece, calling for tax reform, moving to know keystone pipeline, restoring the division of fulltime employment and School Choice and hiring more veterans. Well, speaking of taxes, when you think of tax havens, what comes to mind . Ireland or the caymans . What about luxembourg . Cnbc, which produces this program partnered with the International Group of journalists to produce a report on one of the biggest leaks of tax documents. Over 500 tax reforms from companies gives us an exclusive look at how many are using luxembourg to avoid paying taxes, many have set up shop in the tiny nation. The way it works, Accounting Firms like Price Waterhouse consults with tax ministers in luxembourg on behalf of companies, setting up what they want and mostly getting approval. About 95 billion in profits flow through luxembourg in 2012 alone according to the bureau of economic analysis. Of that, onlyat about 1. 1 billn was paid in taxes, so about 1 . If the money were in the u. S. That would amount to about a 30 billion tax bill. Direct investment from the United States to luxembourg in 2013 was close to a billion dollars, none of the tax shelters appears to be illegal. For example, the companies which dont necessarily operate in the country can borrow money from others and relate is to subsidiaries. The result, billions are dedica deducted in expenses. The tax income that is run through it would be 100,000. So that is how much you pay for the privilege which is nothing. Nothing. And that is what you pay for the privilege of being there. A spokesperson for luxembourgs finance minister says he strongly rejects they are a tax haven, saying that customers love the business climate. They are feeling the heat, though, the European Union is looking into whether they engaged in fraudulent tax practices. They are investigating the tax structure, and the head is president of the european commission, a branch of the same organization investigating luxembourgs tax practices. For its part, Price Waterhouse cooper is the Accounting Firm that represented all the companies in the documents. Told cnbc that it is prohibited from commenting on specific client matters but rejects any suggestion that there is anything improper about the firms work. They say the documents were taken unlawfully by a former employee there who then selectively provided them to the media. Well, if there is one thing that democrats and republicans agree on it is the need to reform the u. S. Tax code and to keep tax revenues here in the u. S. But they just dont agree on how to go about it. Joining us now to talk about the issues, andrew freedman, founder and president of the nonpartisan think tank. Thank you for joining us. Hi, susie. This is a topic people have been debating quite a while now. What do you think the chances are that we get a reform in the u. S. Tax code . Well, you stated it right. Both democrats and republicans say they want tax reform. One of the things we have in washington is the tax stuff, complicated stuff hard to get done. You have to kind of separate the individual side and corporate side and try to analyze each to see what the likelihood is. I am glad you brought that up because when people talk about tax reform it could mean Corporate Tax reform or personal taxes, you know, where do you see this whole debate playing out. Which category or all of them . Sure, well, if you look at the individual side you have to understand what youre doing is dropping the tax rates. That means you have to recoup the revenue you lost by driving the tax rate so the government doesnt end up worse off, so you have to do things like cur tailing the mortgage interest rates. Everything is put on the table to try to recoup that level. It is very hard to get agreement on those type of changes. I think individual tax reform that affects you and me is probably too heavy of a lift for congress. You have to decide if you bring in individual revenue with individual tax reform, democrats say yes, republicans say no. Corporate tax reform, youre only dealing with corporations or businesses and youre dealing with business deductions, things like depreciation. Everything agrees you need to try to bring in more revenue to the government. As you just pointed out in the last report the Companies Moving jobs and money overseas to avoid u. S. Taxes. Well, how can that be avoided . I mean, is there a way to keep all the profits and taxes on the profits here in the u. S. So that companies dont have these tax gimmicks . Yeah, if you want to change the system in the u. S. , now were just talking about the corporate side. You want to lower the tax rate here so the companies are not seeking out lower tax rates abroad. You have to make it easier for companies to bring back their earnings overseas into the u. S. . Your report just noted as long as the same stayed the say in luxembourg, when the number is brought to the u. S. There is a 35 tax. Were the only developed company that imposes the taxes. That is why you see Companies Moving out. Quickly, there is a lot of debate, we see the Corporate Tax rates, the ceos want 20, 25 , the white house wants it higher. Will there be meetings of the mind on that . Yeah, i think most people would say 25 to 28 would be a reasonable rate if we keep these companies here and make other changes. All right, thank you, andy freedman. And shares tumble, we begin with tonights focus, the Insurance Company suffered a huge quarterly loss for the longterm Care Insurance business. The ceo says the turnaround in that division will be more difficult than expected. The stock lost more than a third of the market value, closing at 8. 66, making it the biggest loser in the s p 500 today. And analysts cut their expectations for qualcomm, the chip maker missed revenue and earnings estimates. Barclay and breon all slashed their target on the company, sending shares to 70. 57. Kate spade, the handbag and clothing maker met forecasts and said the earnings markets have expanded. Sales upp eped their guidance, h shares up to 30. 96. Orbit shares getting slammed after posting walker than expected profits because of higher market costs. The shares were blamed on the stronger dollar pressuring the international business. But the company ceo was still happy with the results. We have the Strong Quarter, we we delivered guidance for the full year of 90, justed ebita growth. For the midto high single digits. It was a Strong Quarter and we have a good guidance, were a business which is generating over a 100 million of Free Cash Flow a year doing great in terms of key initiatives. So i cant really explain the reaction today. Were pleased with the quarter. Despite the comments shares fell 9 to 7. 70. Strong Advertising Sales helped aol increase quarterly sales, and they upped to buy and sell digital ads, investors didnt seem impressed, shares off nearly 40 to 40. 23. Amc saw growth in the international network, even though growth topped the expectations. Stock up 3 to close at 25 and change. News about a trio of Drug Companies all working an ebola evacuee vaccines, technera posted a wider than expected loss, and announced treatment for the department of defense, and bio, shares of surrepta shot up. Biocrest down nearly 7 . If you have a liver disease, the Big Companies are fighting for you for the dollars they will bring in. The best known of the drugs can cure hepatitis c, they will focus on it as Research Companies and wall street converge in boston for the annual meeting for the study of liver diseases. Meg turrell reports. Reporter it is a battleground for hepatitis c, a disease that affects a million worldwide. With the controversial price tag of 84,000 for 12 weeks of treatment, the drug set a record for sales in the First Quarter on the market. Now, gilead has a new pill. Harmone, a combination that can cure the virus in as little as eight weeks for some patients. With gilead, the best launch of a drug, given that it is doing 3 billion plus in sales in a single quarter in the u. S. , bigger than lipitor ever did, it certainly shows why it has become a very, very hot meeting. Analysts also expect data from competitors advee and merck and particularly are watching to cut treatment times to as much as four weeks. But hepatitis c is not the only focus, two other liver diseases have been capturing the attention. Hepatitis c i would argue remains the focus because it is so commercially near term. Were just seeing these massive sales stickers right now. People are looking to the future to say hey is there anything else beyond hepatitis c . And those markets, analysts say, are as big or bigger than hepatitis c. But efforts to treat the disease that can lead to scarring, and hepatitis b. Companies working with gill i add are smaller like intercept. Analysts say it could be years before we see other drugs have as much progress as hepatitis c. For nightly Business Report, im meg turrell. Coming up, shippers are expecting a record season but is everybody read the u. S. Postal service is ramping up for the holidays, saying they will add sunday deliveries in major metropolitan areas starting november 17th and running right through christmas day. The usps already partners with them, and in addition to handling 12 billion cards and letters. The three major carriers say theyre ready for the recordsetting holiday business, without last years recordsetting delay on business. Reporter 48 days until christmas. And shippers are bracing for their busiest Holiday Season yet, driven by online shopping. Today, the u. S. Postal service saying it expects to ship nearly half a billion packages by christmas, up 14 over last year. And on top of the 12 billion cards and letters that will also be sent. The carrier says theyre taking big steps to meet the demand and not just brandnew holiday stamps. Starting on november 17th, 11 days from now, well be delivering packages seven days a week in many areas of the country. Youre also going to be seeing our letter carriers out on christmas day. That strategy will be watched closely. Last year, when ups and to a smaller extent, fedex, failed to deliver packages in time for christmas the Postal Service did not have the same problem largely because it partnered with amazon for sunday deliveries. The relative success for the holiday performance has helped them better compete with fedex and ups, delivering hundreds of cards and letters by mail. But while they put hundreds of millions into upgrades and workers, some question whether the usps has done enough . They want to take a bigger piece of the commerce pie, and be competitive with fedex and ups, but there are still concerns they are not able to handle the spiking shipping volumes with their current structure. It is not just the Postal Service, many are expected to shift this season, maxing out networks vulnerable to network conditions, shortages and a real possibility of a lastminute spike in online shocking. But all of the three insists theyre ready. But only santa will know for sure. That is nightly Business Report, im susie gharib, have a great evening, everyone, well see you right back here tomorrow night. Nightly Business Report has been brought to you in part by. The street. Com, featuring stephanie link who shares her investment strategies, stock picks and market insights, the multimillion dollar portfolio she manages with jim cramer. You can learn more at the street. Com nbr. The following kqed production was produced in high definition. And their buns are something i have yet to find anywhere else. Cause im not inviting you to my house for dinner. Breaded and fried and gooey and lovely. In the words of arnold schwarzenegger, ill be back. Youve heard of connoisseur, im a commonsewer. They knew i had to ward off some vampires or something. Lets talk desserts gentle