Welcome. Bill has the evening off. Well, wet. Made we made it through a week that stockminated by trade and goes were pretty much all over e place with ste sell offs and strong rallies, and today wasnt anyksifferent. Sttarted lower after President Trump said the u. S. Was not ready to strike a trade deal with china and then added to t tension by talking about Chinese Tech Firm huawei. Wre not going to do business with huawei. Were not doing business with them. I really made the decision. It is muchimpler not to do any business with huawei, so were not doingh business w huawei. That doesnt mean we wont agree to something if and when we t me de deal, but were not oing to be doing business with huawei. And stocks headed lower. The white house later clarified, saying it was only the government not buying from huawei, and with that stocks recovered a bit. The dow had been down about 280 points and then briefly went sitive, butnded down 90 to 26,287. The nasdaq droed 80 and the s p 500 was off 19. Todays action seemed only fitting onhisild week. [ bell ringing ]. A lot of red on the board. The Dow Jones Industrial average is down 926 points. Investors worrying about the u. S. chinarade juarez catting. The d jonesndustrial average closes the day down 763 ints. Wor day of the year for fox. A healthy bounceback a day, up about a percent on the s p. There was buying today, back over the 26,000 level and the dow ended 313 points, right near session highs. We have regains a little l than half of the losses of yesterday. Another big selloff here on wall street. Hy have things gotten so weird in august . Well, two things happened. Number one, the Federal Reserve happened. Number two, more tariffs. The market pain is a lot less than it was in the first hour or so of trading. Right now we are only down 212. Dow jones industrial average closing just fractionally negative. This is the biggest comeback. Stocks staging a recovery today. It is a pretty big move er hi 1. 5 almost to the upside. With todays gains, even with mondays massive drop, we are now positive for the week. The market half i an houro trading, we pulled back. Dow down triple digits again, down right now about 165 points. We are sitting at session low right now. 2902 is the level. We had all nice as ive been standing here in the last few minutes. Had to close for a ile, drooping a bit going into the clubhouse, the dow ending the day down 82, s p 500 down 19 points. For the week, despi all of that volatility, all three indexes were off just a. Fracti so lets turn now to Sandy Villere to talk more about the market and why it is so confused. He is a partner and Portfolio Manager atvil villerenynd com good to have you here. Thank you. Appreciate it. Why have things gotten so confusing . August is a tough month for the market. I thinkse it is second w for the market throughout the year. It seems like volatility is little escalated. Yes, you have a lot of things going on from, you know, eaings to the trade war and certainly the fed. So a lot of things that were trying to keep our eye on that are creating o a lot volatility, especially trade war related. I was going to ask you which is the most importa you of the factors that you just mention evidence. Which are you watching most closely ohr whi gclosely or which is thatest variable for you . Im a very bottomsup oriented stock picker so im looking at earnings importantly, but earnings have passed us. We had about 90 of the s p 500 report irnearnings, so looking forward im focused on the trade war. What is ironi is that the trade war and the fed really go kind of hand in hand. The t uglier trade war gets or the more it escalates, the higher thehe likelihood fed could potentially cut rates in september and maybe october. You know, there w twos to think about that from the analysts i have been talking to. One, the trade war if it continues and stretches out or imonious ven more a would force the feds hand to cut Interest Rates. I talked to another analyst who said that would really bother the market because it means that ing thatis indic things are worse than we think. What do you think of that argument . Yes, and theyre supposed to be totally independent. I believe the fed completely is, but as the trade juarwar escala you are seein already we have three year lows in manufacturing, you have inflation thats extremely low and you are seeing growth slowdown. Looking at earnings year over year, it will be negative, when you look year over year for the Second Quarter reporting. If the fed is data dependent and they are looking at the outcomes fr the trade war slowing on all sorts of fronts, then they have to act. And then m the bondket seems to be telling a different story, pointing perhaps to a recession. How are you interpreting the bond market and Interest Rate action this week . Yes, and the bond marke always seems to be a little smarter than the stock market. So you are seeing the nar down at 174 and then the you know, the threemonth i up at 2 . So that is an inverted yield curve, and oftentimes an inverted yield curve can predict a recession. So it mes me a little bit nervous, but for investors in general when theyre looking at where to place their money, you look at the tenyear treasury at 174, the s p 500 yields about 2 on the index. So kind of makes stocks look attractive. Indeed. Thanks so much, sandy. Great t have you witme. Thank you, sue. Sandy villere with villere and company. Bond yields have been falling and so have Mortgage Rates. The latest drop in the rate has lenders scrambling to keep up with demand. Diana olick has more. Quicken loans just had its best quarter in the companys 34year history, setting a monthly record in june. Quicken said it wasooking to hire about 1,300 employees to handle the new volull. It ishanks to a sharp drop in Mortgage Rates that started in april and accelerated this month. That causedden refinance boom that most lenders hadnt expected. N if you think back eo the fourth quarter, we were all alking about anticipating, you know, rate hikes going into 2019. Phones havest bank, been ringing off the hook, stretching capacity. We are really looayng at to preserve our client experience, which may mean forc umers to be aware that it might take you a little longer to get through the process and that might mean taking a little longer to get holf a mortgage professional to assist you. Borrowers arent just looking he lower monthly payments. Some want different loan products with different terms, while othersay want to consolidate debt like Student Loans and credit card debt. Whatever the reason, refis are rising. Refinancing is a no brainer because you can save thousands of dollars a every month you have more money in your pocket. Rates have been volatile so borrowers shouldnt try to wait hed time market. Instead, get a lender readyd n ke sure the lender is ready to jump. For nrknightly bs report im diana olick in wall. With the lower bond yields in the otlight,nvestors are on the hunt for return and one place they are looking is muni bonds. Seema mody has more. Reporter the search for yield is driving investors into different parts of the bond market, specifically debt issued by states and municipalities to finance specifi projects like airports and schools. Muni bonds have already seen record inflows this year of 52 billion, on pace to surpass the 70 billion of inflows seen in 2009. And if the fed continues to cut Interest Rates, wall street strategists eect demand to stay strong. In addition to low rates, changes to the tax w codech limited the c deductionimed by households in high tax states like new york has pushed t investor look for taxfree income. The salt cap was a key component of the tax reform bill. Experts point out most Municipal Bonds are exempt from income tax, and depending on the bond in many caseslso exempt from taxation by the issuers home state. A surge in investor demand comes as bond issuances have come down. Total bon issuance has fallen from 440 billion in 2017 to 338 billion in 2018. Hats according to muni market analytics. Still, four high Profile Projects coming to market in f august, the sncisco transit system, pennsylvania rnpike, common spirit and adeles airport. So far the muni income fund has returned 5 to investors. Whileuni bonds can often be seen as a riskier part of the bond market to invest in, the number oft defaultse city and state levels have declined. In fact, only 41 defaultsn 2018, the lowest on record, according to tripp kaiser at muni market analytics. In 2019 there have been 33 defaults. St l, Financial Advisers caution to not focus on just the taxfree income b to review the quality of each bond. Plus, if Interest Rates turn around, it could make muni debt a less likely place to park you money. Si seema mody. Inflation on the w le was flat year over year. Meanwhile, inflationot here is a probl a problem, for know deplace is a growing concern in china. Prices are contracting in china for the first time i three years while Consumer Prices were pushed higher by surging prices in vegetables and poot. Anher risk to china economy, the tense situation going on in hong kong between the government and protesters. Yu anyone yoon more from beijing. Reporter hundreds of protesters have gathered at the hong kong airport handing out leaflets to raise awareness about their concerns to the citys visitors. The sitin, which is expected to last through sunday, is the latest of a series of protest that started as a march against extradition bil which have moved on to protest beijings encroachment into the city. Today the leader carrie lam called foralm but showed no willingness to make concession to the protesters. Lam warned that the downward pressure was like a tsunami. The problems in hong kong are filtering into the alreadytense u. S. china relationship. Beijing has been characterizing the process as organized by foreign powers, in particular an american diplomat in hong kong. Chinese state tv has described the political officer as a black hand creating chaos in hong kong after she met with a protest leader. A newspaper called her a lowof prile expert on subversion and publishedhotos and personal details ofnd her a her family. A state Department Spokesperson called china a thuggish regime for releasing the information, and today the Foreign MinistryHong Kong Office responded saying the blatant slander against china exposed the u. S. s gangster logic and thinking. On top of the trade conflict with huawei, the hong kong situation is another risk facr for u. S. china ties. For nightly Business Report, im eunice yoon in beijing. Up next, filling the gap. These airplanes are partef irline industry handling the 737 max crisis. What are they doing . Im phil lebeau outside of montreal, canada. That story coming up on nightly Business Report. Nearly five months after the 737 max,ded the boeing airlines around the world are scrambling to find replacement ples. Thoselanes are often leased from other airlines or charter iation companies w find themselves sitting in an enviable position with extra planes and high demand, especially in canada. Phil lebeau has more from quebec. Of the ter this is o hottest planes in the commercial jet market, a 737200, with more than00 boeing 737 max planes parked airlineshat plan t fly them have been scrambling to find replacement jets. Great newsor nolander aviation outside of montreal. It is leasing 737s like this to an aline in toronto needing replacement planes. We have a lot of requests from Many Airlines that dont have enough capacity to do their charter flights on the weekends or their regular or providing charter flights for the airline. Airlines looking to cover their schedule are pushing up shortterm leasing rates, in particular for older boeing 737s. Often airlines will lease the plane and pay a crew to fly it. It hired aatarir to fly some of its flights. Passengers probably wt notice the change. They are getting on a fusela, they doesnt see the color scheme. They are walking down a jet way. Maybe once they get into the seats they think, oh, last times i flew i w in this kind of seat, now i am in a different seat. But really, youknow, i suppose they are just happy to go from a to b. For nolander aviation, the 737 max crisis has lifted demand forts fleet of planes to a new level, and executives believe that demand iste exp to continue at least through the holidays. I think it was after a few weeks after the issue with the 737 max started to get very publicized, we started havingbo requests our availability for the summer, and then it changed to will you still be available during the fall and now were talking about christmas time reporter an airplane leasing market lifting off as airlines adjust to life witho the max. Phil lebeau, nightly Business Report, mirabelle, quebec. An anonymous letter by a whistleblower tanks mattel. Thats where we begin tonights market focus. Ling ay maker will be p bond sale after receiving a letter and now will be cancelling the sale of senr notes due in 2027. The Company Plans to investigate the matters in the letr but did not disclose what they were. The Stock Plunged nearly 16 to 1131. Nectar therapeutic said there were manufacturing issues in two batches of experimental cancer drugs given to pat in a trial. Separately, the Biotech Company reported a narrower than pected loss but missed revenue estimates. Nectar plummeted more than 29 to 20. 92. Jcpenney received a notice from the New York Stock Exchange that the company has six months to get its price above 1 or get shareholder approval of a reverse stock split to avoid being delisted. The strugglin retailer has seen sales drop more than 70 in the last today jcpenney fell more than 13 to 0. 60. Pg e posted mixed resultsbe ings earnings estimates but shy on revenue. The company said t losses were due to losses related to the california fire and bankruptcy. It fell more than 2 to 2. 18 dropbox beat wall streets forecast for earnings and revenue, but the company saw a drop in its average revenue per user, which is a key t factor to companys growth. That sent shares down nearly 13 to 18. 71. And uber shares had one of the worst daysince the company went public after the Company Reported a massive loss in its latest earnings after the bell yesterday. Yet the ceo is still positive about the rest of this year. The back half of the year youre going to see, if trends stay the same, revenue groh in cess of 30 . And when you look at profitability, we beat our own internal tarkgets, we beat stret targets as well. We came in at a loss of 356 million, but the losses are improving a r takees are improving. Shares dpped to 40. 05. On that note we havke the m monitor with names of stocks he says are reasonably cheap and could grow double digits over the long term. He is the Senior Investment analyst at wealth adviser. Welcome back, david. Nice to seeai you good to see you. You say you try to identify companies with openended growth opportunities, which is a challenge in this market environment, but you like Delta Airlines. Why . Yes, Delta Airline is the bestrun airline in the world. They are transforming the traveling experience by investing the most in chnology. So now and in the future when you travel, you will not need passports or tickets. It is just every airport will have sbiometri you show your face to the camera and thats it. It is also improving, all preordering for meals before you board on your airplane and things like that. It is the bestrun company in the airline industry. We think that the t travel amount of travelers is going t grow over so think about, you know, light duty, things like welding or, you know, transporting goods om onerea to another. And so we think were at the beginning stages of this Industrial Revolution and they are leading the way on th. Finally, gardner, which is basically a tech place,n. T. Play. Yes, yes. So if you look at the stock for the past five years ty had big run, but in the past few weeks it dropped over 20 . We think it is a good entry point because they held ceos around the wld in technology. They provide Research Consulting to make better decisions and technology decisions. So, you know, they are helping all of the companys retailers, banks for growth in the future. How do you feel about the economy and the market overall, david, especially given the volatility thate saw this week . Yes, you know, we think all of t volatility i related to the trade talks and how, you know, the slowdown of the global gd, abou gdp. We think eventually there will be a trade agreement, it will work itself out, probably before the election. But if you are a longterm investor thats the view we have. Has it influenced the w you are allocating capital . For thoseortfolios we think are overweighted in equities, we try to maybe sell a little bit equity and keep a little more cash on the sidelines. But, you know, we are longterm investors. We are looking three to five years ahead. Okay. We think the market will be higher for now. David, thank you so much. Thank you. With cenal wealth advisers. Coming u focusing on the farmers. Reporter more than a Million People come to the iowa state fair every year. Now many are farmers seeking relief from the tradeat war. Demo contenders are here to try to wind their votes. We will tell you how coming up on nightly Business Report. The iowa stateair will become a focal point for trade policy over the next few days as all of the 2020 democratic president ial hopefuls take their policy messagesirectly to farmers impacted bthe u. S. Trade agenda. Kay the fairsche is at ground this evening. We are the most unique idea. Reporter you will find more than 20 democrats running for president , testing their stump fair,es at the iowa st