Three sectors that may have the most to gain from a republicancontrolled senate. All that and more tonight on nightly Business Report. Its wednesday, november 5th. And good evening, everybody. Im Bill Griffeth in tonight for tyler mathisen. Im susie gharib. Evening. Stocks soared to new highs and as investors were emboldened by the republican sweep. Republicans made promises to start working right away on important economic issues, including trade, Corporate Tax reform, u. S. Energy exports overhauling the Affordable Care act and much more. On wall street, the s p closed at a new record and dow anniversaries and dow utilities arn transport hit new highs. The blue chip dow stocks surged 100 points closing at 17,484, thenack slipped about three points and the sab up 11 points. Hampton pearson has more on the post Election Agenda for congress, the president and what, if anything, will get done. We did it. The day after the 2014 midterm elections gave republicans clear majorities in both the senate and the house Incoming SenateMajority Leader Mitch Mcconnell and president obama each made pledges to Work Together on behalf of the american people. There will be no Government Shutdowns and no default on the National Debt. Im looking forward to them putting forth a specific agenda in terms of what they would like to accomplish. Lets compare notes in terms of what im looking at and what theyre looking at. And lets get started. Tax reform and trade seem to be at the top of the legislative short list while republicans and the president but Immigration Reform is a lightning rod for both. President obama said today he will take executive action before the end of the year. What im not going to do is just wait. I think its fair to say that ive shown a lot of patience and have tried to work on a bipartisan basis as much as possible. And im going to keep on doing so, but in the meantime, lets figure out what we can do lawfully through executive actions to improve the functioning of the existing system. I think the president choosing to do a lot of things unilaterally on immigration would be a big mistake. Its an issue that most of my members want to address. Legislatively. And its like waving a red flag in front of a bull to say if you guys dont do what i want, im going to do it on my own. Congressional leaders and the president will get down to business at a white house meeting on friday. The agenda includes more money to fight ebola, additionalal funding for isis campaign and wrapping up the government budget for this year. For nightly Business Report, im Hampton Pierson in washington. Last nights victories by republican lawmakers also raises a lot of questions for the u. S. Economy and for the federal reserve. Steve liesman has that part of the story. The new gop controlled congress could be trouble not just for the president but fed chair janet yell condition, as well. Several bills including one to audit how the fed makes Monetary Policy which she opposed could pass both hoises now and end up on the president s desk. I think we ought to have an audit the fed bill that moves through. That makes common sense. Nobody can tell you what the dped is. Lets have the an audit and see whats there. The president shade he would it be the most transparent president ever. How much the gop focuses on the fed is one of the outstanding economics questions raised by the republicans huge victory. The gop will quickly have critical decisions to make about things like the budget, banking and the minimum wage. A continuing resolution that funds the government runs out december 11th and the rule to suspend it the debt ceiling expires in march. Will the gop risk political fallout from another shutdown to enforce spending discipline . In months past weve seen everything go right down to a deadline or Government Shutdown or the 11th hour. I think republicanss in firm control of both houses of congress are going to get way out in front these issues and address National Debt issues, budget issues. And voters in five states approved hiking the minimum wage yesterday. To 8. 50 in arkansas all the way to 10ed in illinois. About the same level president obama has proposed for the entire nation. And which the gop has opposed. Continued opposition could have a political price. Finally, many in the gop have opposed all or part of the new doddfrank banking Regulatory Reform act passed in the wake of the financial crisis. Efforts to water it down could make the gop seem overly friendly with wall street. Good for public contributions but not necessarily good politics. The senate such an overfemming fashion was a tremendous feat. As the saying goes now comes the hard part for the gop, actually governing. Im steve liesman. Some encouraging news today about jobs. Payroll firm adp reported private employers hired aid better than forecast 230,000 workers in october, that was the most notice four months. An encouraging sign ahead of fridays october employment report from the labor department. And, of course, jobsen an wages are a big issue at election time this time around, as well. And now with republicans in control, what does it mean for the labor market . Lets turn to diane swan, chief economist at mesereau financial. Good evening. Good to see you. Is there anything thatting this congress and then president can do to keep the momentum going . We now have unemployment below 6 . What can they do to create more jobs . Well, i do think theyre already on their way to do it before the election was done. We saw ironically republicans talking about loosening the Purse Strings in washington, with regard to defense the budget particularly and infrastructure spending. Now that they have control, well see more of that going forward. Being less of a headwind for the u. S. Economy coming out of washington will help in terms of employment gains in the u. S. Economy. And its an important help at a time when were looking at a stronger dollar and increased competition from abroad. Thats now the weakness were seeing in europe is a risk we face as we move into 2015. Lets pick up on that. With headwinds like a stronger dollar and weaker economies overseas, does that mane theaters going to hurt job growth even if you have a Republicancontrolled Congress that is supposedly business friendly . Well, i think what well see congress is not going to make or break the economic environment. Theyve done more to break in recent years. Theyll stand more out of the way it now. The proof is in the pudding that theyll move forward on a lot of legislation i dont see. But at the end day theyre not moving their direction. We already expected some of this result but also we expected the shifts we had already been seeing to occur on the margins that congress wouldnt be as much in the way in doing things like disruptive like shutting down congress. That is less likely now because we have republican control of congress they wouldnt shut down themselves. Thats important going forward. In general, youre talking about the washington can only have a marginal effect at this stage of the game. Youre not talking about a big stimulus package or cut in government spending. Were not talking about the big policies. I dont think well get Corporate Tax reform or the big positions that would change the equation. I was going to ask you about tax reform. That was discussed by the president and leader mcconnell today during their news conferences. Both expressed an interest in rewriting the tax code or at the very least coming up with some form of tax reform. What could they do that again, going back to the jobs question, would create jobs . Well, i think what theyre going to be doing is spending more money without offsets and without paying for it with higher taxes or cut elsewhere. Spending more money on instruct on the highway budget, bridges and things we need to spend more money on. Its on the margin. Were not talking about a big package here but theyll be spending money they vchbt been in recent years and not holding to the cuts in the sequester that had been in place. Theyre also going to be spending more money on defense generating jobs, a lot of good jobs. It doesnt generate a lot of productivity because youre an building things to destroy things. But isis is out there, a tail wind for spending on the pentagon. Theyll get just about anything they want. Diane, i wanted to talking about minimum wage increaseses. Five states voted in favor of minimum wages. We know a lot of republicans are not in favor of that, but do you see a sweep of more states having higher minimum raising the minimum wage and what will that mean for more jobs . Actually, we are seeing a major sweep across states. Its happening at the state and lel level. Did doesnt matter at the federal level. The state and local level has taken it over. Cost of living is very different depending where are you live. I think what well see a major sweep across states weve already seen a large sweep across states where they start raising the minimum wage. That said, it have a major impact on Economic Growth than on jobs . I dont think so because at this stage weve got momentum. It could curb some job growth but i think well start to see a little bit of wage acceleration regardless of what happens in washington. Diane, mecir row financial, thank you. Thank you, about il. One with issue talked up today after the republican win, the future of the keystone oil pipeline. One lawmaker is planning speedy legislation to approve completion of the long delayed and controversial pipeline. Republican senator john holden from the Oil Rich State of north dakota says a bill to finish the 8 billion pipeline which will bring crude from the oil sands of canada all the way to refineries along the gulf of mexico will be one of the first bills his party will put up for a vote in the new congress. And energy is just one of the industries that the new senate could have a big impact on. Dominick chew takes a look at which sectors may benefit from the new makeup in the senate. Many analysts and other experts on wall street are trying to figure out which groups would benefit most now that republicans control congress. One group poised to reap big rewards from the gop led congress is energy. Its no secret energy pos has been a central piece of the republican story for quite some time. And now, theyre in a position to push forward legislation on a number of Energy Related fronts. You have energy policy, this increases likelihood Something Like ski stone excel passes which would push down energy prices. The project is just one part of the story. There could also be fewer restrictions on drilling activities and exports its of oil and gas products. Another industry that may see brighter days ahead is banking. Because of a possible easing of restrictions on laws like doddfrank. Within financials probably some of the best places to look would be the relaxation of the strategically Important Financial Institution the guidelines that suggest that firms such as metlife might not be required to meet the same level of capital cushions or you might see jpmorgan or citigroup or bank of america not necessarily face quite the same regulatory burdens going forward. And yet, another hot spot for possible republican attention is health care. Lawmakers could look to help boost medicare payment rates to insurers and change tax policy targeted at other parts of the health care business. One of the targets that the republicans have talked about is eliminating the medical device taxation. That has been onerous it has impacted those companies and certainly cause them to be moirls in a fetal tuck position in terms of their sending and their outlook. I think theres probably some effort on that basis. Those are just a handful of the places some investors are placing bets. And many are hoping stocks can continue their recordbreaking run no matter which party is in power. For nightly Business Report, im dominick chu. Still ahead, china was supposed to hold the key to qualcomms future. But are the risks related to do business in that country outweighing the rewards. The answer coming up. One big oil producer is looking to be the first to break a dangds long ban and export u. S. Oil without getting explicit permission from washington. Bhp billy tan, thing and grow Australian Mining and energy giant says it will sell 24650,000 barrels of texd crude in a deal worth about 50 million. A strict ban on u. S. Energy exports has been in place since the arab oil em bar grow of the 70s. Earnings after the bell from chipmaker qualcomm but the news wasnt good. It took in 1. 26 a share in the fort quarter but it missed estimates by a nickel a share. Revenues also missed estimates even those shipments of chips rose by 24 year over year. That was still shy of forecast. Shares were initially lower in after hours id traing bug a missed earnings forecasting is not the only challenge facing qualcomm right now. Its having big troubles doing business in china. Josh lipton has more. For qualcomm, china offers Great Potential and also significant risks. The Company Stands to make a lot of money because of growing depend in china for smartphones that rely on its technology. But qualcomm also has said that china presents significant challenges. So what exactly is going on . For one, chinese hand set makers that rely on Qualcomm Technology sign a license agreement and pay royalties. Analysts at fbr estimate that if a Chinese Company else is a 200 smartphone using Qualcomm Technology, then it could be on the hook to pay qualcomm about 8 per phone. Heres the problem. Qualcomm says unnamed Chinese Companies are either not paying the royalties or underreporting the number of phones theyre selling. Thats potentially a big problem for qualcomm. Its licensing business as a whole represents about 30 of overall revenue. Its a problem. Were still trying to quantify it, but its a substantial problem for these guys. We think its probably affecting revenues as much as call it 500 million. So it is a sizable amount. Separately, qualcomm also disclosed that the Chinese Government is investigating the company under the countrys aint monopoly law. Analysts at rbc say it could be another 12 months before theres a resolution to that dispute. Qualcomm isnt alone in facing challenges in china. The Chinese State media says beijing should punish what it calls the pawns of the u. S. Government pointing to cisco, microsoft and google. Its very clear that the Chinese Government really wants to do things internally and anything with a decent margin coming from abroad will be scrutinized. Despite these headwinds in china, qualcomm bulls point to the companys chip business which they say is enjoying strong moment tum. Its chips are used, for example in apples new iphone 6. They say the stock is cheap and the company is committed to capital return. Still, china now represents about 208 of qualcomms total revenue and investors want to see more clarity about where its business in china is headed. For nightly Business Report, im josh lipton in silicon valley. Record rd quart lit deliver deliveries drove tesla earnings beat. Thats where we begin the focus. The carmaker posted a profit. Analysts expected tesla to report a loss. The trimmed its Sales Forecast for the year but since the company was able to deliver more of its model s cars than before did, envesters an cheered the results. An during the trading day the stock closed at 230. 97. Whole foods reported Quarterly Earnings at estimates and its revenue met forecast. Its higher than expected is results came as the grocer gained market share and launched new products. The stock traded much higher before the closing bell, shares were up just slightly at 39. 99. Cvs beat wall streets estimates by a penny. Earnings were higher on a gain from its spinoff of cvs outdoor. Sales where is also above estimates helped by higher distribution revenue from licensing its television shows. Shares were up right after the report during the regular session, shares were just a little bit higher at 52. 50. Also out after the bell, a news corp posted better than expected results. This is a publisher of the wall street journal reported a rise in quarterly revenue helped by higher sales at its Book Publishing and online Real Estate Services business. That sent shares up initially after the bell before the close shares rose just a fraction to 15. 30. And there was more time warner lifted its full year profit outlook saying is both its turner and hbo units had strong subscription revenue. Company also said that hbo is well positioned to grow its cable subscriptions and add as many as 5 million subscribers who dont pay for cable tv instead using their new streaming video service. Shares collided to 77. 99. Mon da la said Third Quarter earnings fell as it was hit by weaker revenue about the snackmakers profit was still stronger than expected and it raised earnings outlook for the rest of the year sending shares to 37. 15. Toyota also increased its outlook. The automaker now expecting record profits in its current fiscal year driven by the declining value of the yen. The company is also citing cost cutting efforts and strong sales over all, the stock was up 1. 97. Well, toyota got a lot of help from a weaker japanese yen at the same time, the u. S. Dollar continues to get stronger. And with the euro zone economy still struggling and the European Central bank meeting tomorrow, the likelihood of a global currency war may just can be heating up. Sara eisen has on what the president decides could mean for the Global Economy and your investments. The war is the raging. Countries desperately searching for Economic Growth announcing new policies aimed at weakening their currencies. Everybody wants a weaker currency. It makes exports a lot more competitive. Take japan, announcing its super charging its monetary stimulus on friday, sending the yen to a sevenyear low against the dollar. Now the pressure is on for other struggling economies to fight back as their currencies strengthen like europe, dealing with weak growth and falling inflation. Thats why investors are raising expectations that the ecb may announce new easing policies and start planting the seed as soon as tomorrow. There are a lot of people that are going to give dragi a hard time tomorrow. I think youll get real fireworks. No question he had this game plan. Hes been implementing it now for a year or maybe actually two years. Hes got the germans in a corner and whether its going to qe with sovereignence or qe with corporates, were definitely going to get additional qe well beyond whats already been announced. What is the titfortat current sit spat mean for your portfolio in the dollar is the losing right now with the strongest currency around. Thats why investors are pouring into. Cans that do most of their business here at moem and arent exposed to the stronger dollar. For the overall market in the near term, currency wars are proving to be bullish for stocks because the policies, lower interest rates, quantitative easing that weaken the currencies are propping up stock prices. Investors love easy money. In the longer term, its more dangerous because currency wars could turn out to be nasty, morph into trade wars and also prove ineffective, creating doubts about central bank policy. But pros say those worries are for the long run. For now though, the more Central Banks act, the more the Free Money Party goes on. Pros say watch china, korea and europe to fire the next shot. For nightly Business Report, im sara eisen. Coming up, sothebys has its biggest auction ever. Whats behind the soaring prices as the fall auction season gets under way. Well, the fall art auction season kicked off last night in sothebys in new york city and the prices paid were eye popping. Robert frank has more including a looking into who is doing all of this buying. Last chance. And selling for 90 million. It was a night of big prices and small sculptures as sothebys kicked off the fall auction megasales in new york. The impressionist and modern sale raked in more than 420 million, the highest total ever for a sothebys auction. The star of the night was a sculpture titled chariot that sold for 90 million or 101 million including commission. Just shy of the alltime record for a sculpture. Chariot is considered jaco mettys masterpiece and one of only six made with only two remaining in private hands. The sculpture of a goddess head went for almost 71 million, way above the 45 million estimate. Soaring prices in the art market are being driven largely by newly rich collectors from overseas and they were out in force last night. One chinese buyer paid 62 million for this van gogh still life that was well above the 50 million high estimate. Sothebys saying buyers from 44 countries participated in last nights auction either by phone or in person. The market gets another test tonight as christies holds its impressionist sale. This manet cos fetch up to 35 million. And la jairs construction workers with tree could go for over 20 million. The big auction houses expect to sell close to 2 billion worth of art over the next week. The focus will be on the blockbuster postwar and contemporary sales next tuesday and wednesday. Well see if these surreal prices are brief abstractions or the new reality. For nightly Business Report, im robert frank. And finally tonight, Forbes Magazine is out with its ranking of the most powerful people in the world. In third place is the general secretary of the communist Chinese Communist party she the jinping. In second place our own president and commander in chief barack obama and topping the list for the second year in a row russian president Vladimir Putin who flexed his muscles this past year by an nexing crimea and staininging a war with ukraine. There were other notables from the Business World of fed chair janet yellen, also bill and Melinda Gates number seven and the google founders larry page and sarah ninth place. 72 in all, nine of them were women. There needs to be more women on that list. Dont you think the . Yes, of course. Its nice to have janet yellen the most powerful woman in the world right now. Thats nightly Business Report for tonight. Thanks so much for watching. Have a great evening everybody. Well see you tomorrow. Nightly Business Report has been brought to you in part by the street. Com, featuring stephanie limping who shares her investment strategy, stocks o stock mix and market insights. Plus the portfolio she manages with jim cramer. Learn more at the street. Com nbr. This is bbc world news america. Funding of this presentation is made possible by the freeman foundation, newmans own foundation, giving all profits from newmans own to charity and pursuing the common good, kovler foundation, and union bank. At union bank, our relationship managers work hard to know your business, offering Specialized Solutions and capital to help you meet your growth objectives. We offer expertise and tailored solutions for small businesses