Market has beet week, but no Research Shows its not. Acorying to s p, a compilation of oneyear target prices for the 30 members of the dow puts index at 2000 in just 12 months. Thats roughly 8 higher from current levels. Now, s p does say that this is based on analysts target, which tend to be optimistic, but there is some conss on which sectors will outperform. Dominic chu has part of the story. 401 k statements in a in for a surprise. Thats because there doesnt seem to be anything that can take this stock market down and were near record highs for all the major u. S. Indices. For some experts, the outlook pr were looking for earnings getting at least less bad and i think well tu president oba by the end of the year and lower for longer in terms of interest rates. Which ever way you cut it, that means higher prices in the long t doesnt mean that the entire market is is just going to start soaring hire theres market will lea the wa and which parts will fall behind. Many strategists believe technology and health care will help drive things higher. I Like Health Care because i think you have frankly stronger growth and frankly, youre also ageing, the ong demographic dynamics in the u. S. , technology, i think it we tech performing well. That might provide fuel for overall market move to the upside. Technology and health care are two of the biggest part of the s p 500 and theyve had a good amount of succs th season. As for where theres less optimism, theres certain places. I think there are areas of tilities yo valuations. Theyre areas of telecom, competition and areas of er s longterm concerns r forth that id be caution at these valuations. Future events like the president ial electio and whether the Federal Reserve will do anything with interest rate, how they weigh different part of the market could go a long way heading into 2017. For nightly business report, im dominic chu. On wall street price dropped. Close, the Dow Jones Industrial average was down 37 points to 18,495. The nasdaq was off 20. The s p 500 declined joining us now to talk more is rich bernstein, chief Investment Officer at bernstein add virzs. Welcome back. Thank you. How are you . Sta with how you use this market. We pose the question, dow 2000 and i know there were some who disagreed with you wrongly when you were more optimistic on the than others, so how do you feel now . Youre right. We have been bullish f, seven y thought for some time that this bull market would be one of the biggest ones of maybe my career. I think its longest in the it, it will be one for the record and i think if you jus why, it nobody wants to play. S years into a still a money manager ande kaka rear. You have to put money to work, its one of the only places you keep going. I wouldnt necessarily just we have in our portfolio, some lower qu there are things you can look at. The comm thread in our portfolios, that one should expect continued improvement in t say it would be good in and absolute sense. The markth markets care more about better or worse not about the absolutes of good or bad, so, our feeling is and our fore caps and what were seeing is that they will continue to improve for the next 12 tt that, then i think the bull market continues. What about valuations . There are a number of people on the street who think stocks are overvalued, but you think theyre fairly valued. Cor reason why, people see is earnings ratio and depending on how you pressure it, it will be between 20 and 25. In general, people will say that the market is expensive because youve got this high earnings ratio. I think what people are missing the what is that price earnings ratio r if we go back sure most of your watchers remember, the ratio was high 20s, if not 30s. But the tenyear keynote that the time was 6. 5 . Today, we have a pe ratio, somewhere between 20 and 25 and a tenyear note of 1. 5 . Its very hard to argu a with 1 keynote the overvalued. I think thats very difficult in this environment to argument. A leave it there. Thanks so much. Rich bernstein. Theres a new report on the job market and it shows a kind of mixed 1 in june. That matched the lowest on record dating back 15 years. But the labor departments monthly survey of market turnover showed that pace of hiring into new jobs has yet to fully recover from that since switching jobs is one of the ways that workers get raises, the report may explain why wage gains have been muted. To politics now. Where a new batch of emails reportedly show Top Clinton Foundation officials saw access to the state department while clinton was secretary. The documents were released by conservative watchdog group. Clinton has always denied charges that the charitable foundations worked to reward has more. H ak tes how damaging are these emails likely to be . Well, Hillary Clint problem with people believing sheus majority of people say that. Donald trump calls her crook ed hillary, so this plays into that story line, with the idea of a conflict of interest. Fire. Theres no allegation of specific things being done to benefit the donors. One of the emails that came out today was a Clinton Foundation official asking the state department to put a t with a p lebanon. That person at the state departme never met the wealthy donor, so dont know whether anything came of that, however, the appearance of conflict of spres is not helpful to clinton and donald trump was ripping her for it today. Mrs. Clinton responded to Donald Trumps second his casual cruelty to a gold star family. His casual suggestion that more countries should and now, his casual inciting of vi. Every single one of these incidents shows us that donald trump simply does not have the temperament to be president and commander in chief of. So, john, whats the fallout and will there be more . Well, donald trump extended the conversation about that today by dispute iing secret s conversations with his campaignd s remarks, he did say that the press has a pattern of taking stories that arent really stories and making a big deal out of them. That seem to be an illusion to what happened the day before. He did say that the Second Amendment was under siege and he urged people to rally in support of it. The question is going to be how much do other republicans who are concerned about his comments, how much do they distance themselve he to clear this up quickly. He hasnt done it quickly in any detail yet. All right, well wait and see. Thank you very much. John harwood in washington. Still ahead, the fight againszika. Can manmade mosquitos wipe out the heavy discounting and declining foot traffic in malls impacted ralph lauren and michael kors. The company is spending a lot of o cutting co. S and investors like that. Send i t kors, stronger dollar and fewer shoppers led the luxury goods maker to report a bigger than expected drop in quarterly comp store sales. The retailer also gave a cautious michael kors is just one of a handful of luxury handbag makers that are fed up the Department Stores and the assistant makers i arent happy with Department Stores as shopper traffic continues to languish, department s up ling the aenty on discounts. Just as brands are working hard to go the other way. These makers are working on rebuilding their images by retu premium pricing. Michael kors is most exposed of the three. And its looking to remove itself from all of its retail partners, including friends and family sales held as macys. We think its creating confusion in the consumers mind relative to the value of the brand when its being seen often on sale in so many different places. Earlier in the summer, they confirmed they were pulling back on the number of products it sends to store, explaining less available product should lead to increased demand and that will be at full price versus sale. Coach is taking further. Pulling its from partners. They say its not only below the threshold, but the increasing levels impact on longterm brand health. We think preserving the brand in that luxury type of position it seems like a reliance on the wholesale at large. Is becoming less and the resale is manager. Its a conversation theyre having, trying to determine what it means to continuely challenge Department Stores as well. Im courtney reagan. Disney took a giant step into the future. As we reported last night, the making a billion dollar investment in a streaming Media Company created by Major League Baseball is about a lot more than just streaming sports. As Julia Boorstin reports, its about reshaping an industry that touches and ente disneys making a billion dollar bet that this future is dingital. Buyim and disneys collaborating with bam tech to create a streaming espn baseball. Orts a it wont stream existing espn channels, but disneys ceo, bob iger, says this op espns busin down the line. If the Business Model is supporting these great media property starts to fray, in a significant way, we have the r pro th replace it or supplant it. Thats really important. Were not suggests its going to happen. Its our hope it doesnt happen, but this puts us in a great position should it happen. Apart from espn, iger says this investment will hy d consu orngs imagine a disney app for kids o ml content. Its not justal al lal la cart. Disney says its top channels will be included in both of them. Gl i think this move into you know,irect streaming technologya n theres a future where the cable set x is no longer the nexus with the consumer. The question investors are evaluating now is whether the consumer to streaming and away from traditional tv is going to eat into current disney revenue streams. G deal, particularly on espn, where 80 Million People are paying for espn whether they want it or not. As we go to various cord cutting and unbundling situation, theyre going to have to reset the Business Model. Consumers may not be as interested in paying for traditional bundles, so disney is making sure theyre where ever Consumers Want peridot slashes its full year outlook. That is where we begin tonights outlook focus. The Pharmaceutical Company said increased competition prompted it to lower its earnings forecast. The company also reported worse than expected profit in the late ets quarter. The shares fell more than t. 5 to 86. Orbital atk said it will delay filing results due to accounting errors tied to a military contract. They sai to restate more than a years wor outlook nor this year. Shares plumed to 70. 79. Sales growth disappointed at wendys. The fast food chain reported uptick in sale, but significantly lower than what analysts were looking for. They said revenue and profits fell as more consume rers opted to dine out less. Shares down 28 cents to 9. 91. Shake shack raises its full year forecast. The burger chain saw profit and revenue wise. But the company only saw same store sales grow 4. 5 and analysts w a 5 increase. That sent shares sharpdi the re session do to 40. 99. This may sound like something a movie, it is real. The fda gave okay to deploy armies of gene zika virus. The plan soon be tested in a t carries the ity. Zika virus for decades. Public experts say our current methods dont work well enough. Thats what happened in wynnewood, mike, where theres been 21 cases of zika acquired from local mosquitos, but in another area of florida, Health Officials have been considering another method of control. A genetically modify ied bug wl the method of reducing this particular moss key really dont wor moxie tech modifies male mott quitos to be released into the wild. The offspring cant survive. If enough are released, theyll outperform, ultimate wipin out much of the population. In field tests in brazil and elsewhere, the mosquitos have reduced numbers of the bug by they see it as potential big business. The market for pesticides is estimated at 2 to 3 billion annually. I think its significantly more than that. The reason is it should be born in mind that this, the footprint of this mosquito on a worldwide basis is enormous now. Basically, everywhere between 35 Degrees North and south latitude and below about 2,000 just an absolutely enormous print. The larnlest this mosquito has occupied. It just received clearance from the food and drug environmental to start te impact, but the idea has faced local opposition in the florida keys where intrexon aims to do the first u. S. Trail. The community will vote in november on whether to do the test. Residents cast their ballots in the general election. Both for president and whether to test gmo mosquitos. They say theyre having conversations with different areas of florida, also considering whether to test the technology. Meanwhile, the hard work continues of trying to keep the bugs at bay. We have the capacity to do it, but its going to take a sustained effort. Probably over multiple years. Youre not going to completely this population in o seaso xunts like the florida keys are using traditional methods. Cl pesticides by air as well as tireless vigilance to try. Coming up, meet the retiree who is in the middle of a prolonged legal battle with his form employer over retirement savings. A today dismissed the the case was brought by t of an american killed in jordan. She claimeded the company gave the terror group a voice. The judg a growing number of employees have sued th over their 401 k plans. Most of the lawsuits center fees. The rise in the number of lawsuits follows sprout that increased the responsibilities of those who oversee Company Retirement plans. Just last nigts, we told you three renowned universities were being sued. O mans legal battle wi his former employer. Og spend his retirm much like he imagined he would. What he didnt plan on was a prolonged legah it was very difficult to figure out exactly what it was costing you. He eventually filed a Class Action Lawsuit claiming the company failed to comply causing participants to incur unnecessarynd improper fees. We e and nine months looking into industry practices and the plan and i came way ripped off. For their retirement assets. A missouri l court ruled in favor. E retirees. But no one has received a penny. Since the cas , avb said it cou xhept on an open case, but did tell u quote, benefit fferings are review iv and compliant, as plans say the ec Companies Need to do bette b understanding how these work and be able to explain to where the moneys going. Plan sponsors really need to be educated. Are they getting paid. Along with the rise in 401 k lawsuits over fees have decli. With the average total cost dropping to less than. 9 of a participants asset, but ronald says Many Companies still need to do more. It should be simple. Straightforward, what th. For night nind tog a new re Federal Reserve bank of new york, some of the nations lowest scoring borrowers are getting credit cards again. New issue wans of cards with Credit Scores under 660 has rapidly expanding since 2009. The chief economist joins us now to talk more about that. I would think this is a worrisome sign, craig, but you di well, i think there are a coo remember, first of all, generally the ek pangs of credit is positive. When you have expansion of credit, it increases consumers ability to spend it shows that consums have enough con to be willi to take on more credit. Its thot always a bad sign. When you get too hot and you see too much growth, thats when you have to worry about it. I think you step back and look at thee amount of credit thats outstanding right now is is still much lower than it was prior to the crisis. And so, when you look at it from that level, i still think were at a very manageable level. There are those out there who say that well, the reason that theyre using credit again is theyre trying to make ends meet. Because theyre either working two jobs or and wages havent grown significantly for some time now. So, what do you make of that argument . Is that before the consumers who are using credit to make ends meet and youre right. Wages havent been growing and theyre, the labor market is getting better, but theres still some areas of weakness. Th and so we have to wait and see how that plays out, but the now is that the delean gwensies are coming down, so its still positive. And we may be seeing the very beginning of an increase in credit that could be a prop later on. But for now, im not that worried about it. The cynical part of me says that the lenders are extending credit because they cant make money. In other ways. Credi cards, they can charge a much higher rate and so, thats one of the reasons theyre expanding credit. What do you think . I agree with that and t fed policy. With the fed keeping rates as low as they have for so long and now, youve got other Central Banks helping to do is same thing. Its really making it difficult t make and nding inst theres not much demand on the real estate side and so theyre going in the car loans which have been, awe lendert years. Craig, thank yo thank you. San jose, california became the first u. S. City where the price of a typical home cost more than 1 million. San francisco ca is more 885,000 and anaheim, california, third at 7. Nd that does it for nightly for yoining us. Have a great. Announcer the following program contains mature content which may not be suitable for all audiences. Viewer discretion is advised. I must say, i find mr. Hereward very agreeable. Sister winifred sergeant noakes, how many prostitutes are there in poplar . 600 or 700. When it comes out, nurse, you make sure its a boy. Susan weve been wanting a baby for such a long time. Barbara call dr. Turner and tell him that your wife has a retained placenta. I carried my purpose wherever it was needed, but now i am a relic. Is provided by contributions to your pbs stations from