The dow was dragged lower in part because of boeing, which reported a massive loss for the Second Quarter. It also warned about something that no shareholder wants to hearabout, that itay have to halt production of its 737 max if the grounng of the jet liner drags on much longer. That pushed the stock 3lower in todays trade. Phil lebeau is on the story for us tonight. Reporter with the 737 max grounded for months, boeing ceo Dennis Muilenburg says his company could shut down the max Assembly Line if the current plan for recertifying the plane this fall is pushed back even further. If any of the timeline assumptions change significantly from start of the Fourth Quarter return to service, then we will have to evaluate alternatives, and those alternatives could include different production rate they could include a temporary shutdown of the line. Not something we want to do, but an alternative that we have to prepare for. Reporter stocting pron could mean temporarily laying off thousands of workers, which could have a Ripple Effect on suppliers a cund theountry. It all comes down to when the faa and other regulators say the max is safe to take off. A software fix for the plane is being tested in simulators, but ve it is app and airlines like southwest can resume max flights this year, then boeing will keep building 42 maxes a montn an p to ramp up production next year. If they are able tonc rel this plane and it is as they say the safest plane to ever fly once they bring it bk into service, then their reputation can be preserved. They are battling for their very existence, for their verre tation right now. Reporter meanwhile,ur treas secretary Steven Mnuchen weighed in on the max controversy and what the president thinks of the beleaguered plane. I think as you know the president h said he is concerned about the 737 max. Qu he frankle thinks they should bring back the 757 and look at selling 757 rs. Orter boeing is not bringing back the 757. In fact, it stopped building that plane in 2004 and reviving it would cost billions of dollars. Instead, the focus right now is on getting the max backn the air by the end of the year. Phil leau, nightly Business Report, chicago. You just saw Jim Corridore in phils story there. Hes industrials analyst for cfrg research. Joing us to talk abo what he believes to be the best and worst Case Scenarios for boeing. Welcome back. Thanks, bill. Lets start with theest Case Scenario. What do you think it is . Best Case Scenario isve theye close to having the software ready to go. They bring it to the faa sometime early in september. The faa, who is at boeings side imrough the whole process, in theators with boeing, approves the planes and they get back to flying early october. Then boeing can start delivering the planesarked at facilities all over the country and start gettingthe revenues and it moving again. All right. Worst Case Scenario, how bad could it b yeah, the worst Case Scenario is thea finds a problem with the software fix, pushes back against boeing, says, were not ready to bring the planes back out again and boeing has to halt the production line, has to furlough workers. Their suppliers will not be able to continue to produce at the rate theyre producing. It causes a supply chainffect affecting boeing and a lot of companies. Lets talk reality. What do you think is most likely happen and what will be the impact on the company . Yes, i think boeing was very careful not to announce a timeline for return of the plane until they felt i rwasdy. Last week they said they felt it was goi to be early q4. This week they said early q4. They have been testing for qui sometime. Before the end of 2009, most likely scenario is the plane is flying again. Evenegulators here and abroad have said quietly they dont think it flies until sometime next year. Think once the faa is on board, boeing will have a coordinated effort with european regulators, with brazilian, all over the world. Ce the plane is deemed to be safe, i think there will be a push out to get everyone on board. I think they will be able to do so. All r Jim Corridore with cfra research. Thanks for joining us ttonight nk you, bill. Elsewhere, caterpillar is having a tou time navigating the slow economy. Right now globally the maker of big machinery missed wall street earnings estimates and said that profit for the year would be at the lower end of its previous guidance. Cat shares fell about 4. 5 day, making it the worst performing stock in theow. Seema mody has more on caterpillars quarter. Reporter caterpillar is finding it tough to do business. A slowdown in the u. S. Shale boom and higher manufacturing costs cut into revenue from its oil and gas division fell double digits due if part to weakness in the permiane basis as s customers pulled back on making large cap tal investments. Weakness in china was once a key industrial heavyweight. Cat had many shares of doing we in china, selling durable products and good stuff and several monthsf losing share again. It is related to geopolitical tensions orpricing, it is not clear. Tariffs are pressing margins and winning new business in china isy not as e as it used to be. We expect continued pressur with china partly offset by growthfn other aers the ian pacific. Reporter it is also more positive on north america, though still sees weakness in the housing market. One thing is clear if the Global Economy worsens, the industrial sector is headed for more pain. For nightly Business Report, seema mody. And as we mentioned at the top of the brdcast, the s p and the nasdaq reached alltime highs today. Chip stocks a rallied investors essentially brushed off regulatory concerns facing big tech right now. We will have more on that in a moment. First, the final numbers today with the industrial averageown points, we are at 27,269. Nasdaq was up0. The s p added 14. So far the greatesty regulat pressure from washington has been on facebook, but you would nevernow it by looking at its Quarterly Results today. The social Media Company reported better than expected rnings and revenue was up sharply. But the stock was i volatil after hours trading tonight. Julia boorstin has details of facebooks results. Reporter facebook continues to grow revenue faster than expected, even as big regulatory company. Igh on the facebooks generating more revenue per user than predicted. This as the Company Takes an llion charge as a result of the ftc finey for pr violations, coming in at the highest end of the range facebook gave last quarter. The Company Notes that the online Tech Industry and facebook have received increased regulatory scrutiny in the past quarter, announcing in June Facebook was informe that the ftc opened an antitrust investigation into the company. This in addition to the department of justices announcement yet tha it will begin anntitrust review of marketleading online platforms. Mark zuckerberg w saying are investing in building stronger privacy protections for everyone and on deliverinex new riences for the people that use our services. For nightly Business Report, im b juliarstin . Los angeles. That ftc investigation that julia just mentioned w officially settled today. The Commission Fined faceboo 5 billion for its mishandling of user data after it was learned that political consultant Cambridge Analytica secretly gained access to 87 million ts facebook acco the settlement orders facebook to create new layers of oversight a ceo Mike Zuckerberg will be held personally responsible for making sure that that happens. I think Mar Zuckerberg is held personally accountable. He is signing the order. He is named specifically in the r. The order requires him personally to certify that the companys in compliance wit our order quarterly, and if he les false certifications then he is subjecting himself to civil and criminal penalties. Now, the ftc is not facebooks as weve been reporting, the Justice Department has started an antitrust review of some of silicon valleys biggest tech giants to determine if they have purposely been stifling competition. The companies being reviewed have not been named the nt announce but most believe them to be facebook, amazon, google andtopple. Ght we take a look at what the doj may be tgeting at each company. Back with us isulia boorstin on facebook. Reporter facebook is the second largest digital ad platform with 29 of u. S. Digital ad spending between facebook and inagram, and facebook is the most dominant social platform when it comes to users time. Americans spend nearly 40 minutes daily on facebook plus almost half an hour on instagram, dwarfing the time spent on snapchat. As the doj looks at how facebook has leveraged the power of its large network, it has become a force in other areas including news. Communication and facebooks messenger and whatsapp have today nearly 3 billion monthly active users. By comparison, apple has 900 mi oion active iphones andr half American Adults say they get news on facebook or instagram. The question is whether facebook is unfairly leveraging its social media power to dominate in new area rangi from onlane dating to movie ticket sales to digit currency. For nightly Business Report, im julia boorstinlo i angeles. Now to deidre bosa with a look at the issues surround in amazon. Reporter three reasons amazon could get caught in the regulatory crosshairs. First, it controls nearly 40 of alin u. S. Onle retail sal. Ebay is distant second with market. Of the second, potential competition with Third Party Merchants on its own platform. Ceo jeff bezos said earlier this year that Third Party Sales that is smalliund m businesses who use amazons platform made up more than half of total sales. Critics argue that amazon could use data from these sellers to gainst themmpete and push its own private label products from diapers to electronics to toilet per. Third, regulators could zero in on the amazon prime fly. Whe if amazon is using money from other Business Units toid subsidize or music services, how can other companies that do have to make a profit compete . Deidrebosa, nightly Business Report. Finally, as we mentioned, parentgolphabet and et a ogle could be under scrutiny. Here is josh lipton. Google could be inme the gove crosshairs in part because of the estimated 80 market share in search. Antitrust officials will have to decide if it is a monopoly harming consumers. But google officials recently testified on capitol hill, disputing that argument. Foron example, whenmers search for information they can choose among amazon, yelp, microsoft, travelocity and many otheromnies like these that consistently report strong user growth. If you dont want to use google, there are many other information providers available. Reporter and then there is i dont think anybody reasonable is going to come to the conclusion apple is a monopoly. Our share is much more modest. Weont have a dominant position in any market. Reporter but what about the companys app store . Critics of apple and googles apptores argue that the companies favor their own apps, and as a result a whopping 70 oes to inapp spending the tech giants. Apple also controls access to the app store. But some analysts thi antitrust case could be tough to make because it is not clear to them how the app sre actually harms consumers given the breadth and depth o competition on the store itself, they say, and within certain categories like gaminghere some apps are free and some arent. For nightly Business Report, im josh lipton, san francisco. So how concerned should shareholders be about this ent review . Ar joining us tonight is mark leeman, president at jm securities. Good to see you again, mark. Thanks for joining us. Thanks, bill. I guess the short answer from you is they shouldnt have to worry much. Why . Well i mean youre going to be worried because there will be a lot of headlines coming up, and i think it is going to continue to pay t attention but like we saw with the cambridge a llytic scaret year and facebook had the alltime high a year ago about now when theyeported Second Quarter earnings, there were a lot of headlinesnd legislative meetings and Nothing Happened except selfregulation and this slap on the wrist with the 5 billion ne. I thi you will see lots of bluffs but little coming out of congress and from the legislators. Lets look at each company and see where the vulnerabilities may lie. Facebook has clearly beenth und most intense scrutiny as pertains to their user data and the data breaches and all of that. But at the same time we just learned today that the users havent fled at all. Well, you know, facebook always reminds me of, you know, ll oates who sold a couple hundred million albums and they said no onedmitted to buying one. Nobody admits to being on facebook, but the data says theyre on 40 minutes a day and if my kids are an example on instagram as welle pere not going to flee that platform. It is where they get their news and social engagement. It is hard to legislate that and it is not going to change going forward. Amazon, as we heard, mayst b vulnerable when it comes to their Third Party Sales and so forth and the stron arming that they do there and the data theyre able to accumulate. Amazon certainly has an issue there. I think they going to ntinue to gain the market share they have on the retail side, but it is hard togi ate where people go. I think you will continue to see Consumers Want that, maybe some additional choice and maybe there will be some small slap on the wrist they will probably selflegislate, but dt see congress being able to legislate where peoples eyeballs go and things. Ey want to b it has been historically a hard thing for congress and the Justice Department to legislate. Google may also be most vulnerable as it pertains to search results and, you know, the juggernaut that they are in that area there. Google obvusly has an overwhelming share. In fact, it has become a verb. Were going t google that search. I think it is another area we will have great headlines and theyy could probaank choice some of the data that does come up, but it may favor some of googles top aertisers or other consumers, but they really have to Pay Attention to google because they have the juggernaut for market share. I think, again, all of these stocks will be in the headlines for i think some time on this data but i just dont see congoss being able legislate where people put eyeballs and clicks decide to go. Very qui on apple, you know, tim cook has said theyre not a monopoly, but what about the app store and the tremendous iron fhet that ty wield there . I think it is somewhat similar. You have consumer who goes to that app store constantly and is looking f new ways to Access Companies and data and products, et cetera. There probably will be some selfregulation where they decide to put certain things on top of others, certain things at different points on the a store. But like you said, it is an open marketplace and the congress and the legislators and people who regulate like marketplaces, they will probably find aay to selfregulate. I think that app store is here to stay. The record, i was a big fan of hall and oats myself. You and me th, bill. Mark leeman, thanks for joining us tonight. Thank you. Still ahead, does the most recent budget deal show that the deficits dont matteymore . In the news today, Queen Elizabeth officially appointed borisohnson the Prime Minister of the united kingdom. Johnson immediately began forming a government, one that he vows will lea the uk out of the european union. The people who bet against britain are goingos to their shirts because were going to restore trust in our democracy and were going to fulfill the repeated promises of parliament to the people and come out of the eu on october 31st, no ifs buts. Now to the u. S. Economy and th recentlyagreed to budget deal. As we told you, it raises spending by hundreds of billions f dollars over the next two year now, there was a time when wall street and washington worried quite aut bit aebt and deficits. Do they still matter . Steve liesman went in search of some answers. Reporter the 22 trillion size of the u. S. Debt isal astronomo matter how you measure it. In fact, it is ee kwif lint of the estime to t total number of stars in not one, not two, dromeda galaxies, the closest neighbor to they, milky nd the debt is growing. It is set to rise by roughly 1 trillion a year in the recent budget deal is enact into law. It seems strange to ask, do the trillions upon trillions really matter . Surprisingly the new trend among sides in s on both washington is that the debt doesnt matter and neither investors or economists entirely disagree for now. Fi dt, while thet is doubled the governments cost of borrowing has fallen from 6 i 2000 to around 2 today for a tenyear bond. So larger debt has not pushed up sbre Interest Rates. Second, the se of the debt doesnt appear to have dragged on growth. Anal government deficits decline in times of strong growth and rise during recessions. This is in part by design as the government spends more to kickstart the economy. A paper presented by a economist argued that as long as a countrys interest cost is below itsomal growth rate, countries can or even should borrow more. In the u. S. It is like the government invests at 2 ths the cost of a tenyear and gets returns