The dow and the s p 500 finished the day higher, af rel for investors who were searching for answers after yesterdays big selloff. Trade pushed stocks lower and then higher asd money rus into the bond market yields fell and stocks followed. At one point the yield on the tenyear treasury dipped below 1. 5 . Thats the first time that has happened since 2016. The yield on the 30year hit a recobu low, again, that didnt last. Yields rose in an unusually harp way and stocks swung wit them. Here is where the major averages closed on the trading day. O theu joins industrial daerage rose about 100 points, the n fell 7 and the s p 500 added 7. Bob pisani takes a look at the strange day. Reporter stock went for another wild ride with the dow swinging all day. We saw risk actions first on a number of back andand forth u. S. china trade headlines. As yields fell further to multiyear lows. A member of the European Central bank said the ecb was setting the stage for an aggressive rate cut in september, andme cos central bank announced it was cutting Interest Rates by a quarter point as well. This is just the latest in o stri more than 30 Central Bank Rate cuts this year alone. Stocks are clearly continuing to take their cues from the bond market, falling to session lows as soon as the yield on the tenyear u. S. Treasury note dipped below 1. 5 . But it bouncedack at the yields came off of their lows. One clear bright spot today was the consuckr. Walmart s rallied on a Solid Earnings beat. Retail sales rose more than pected in july. Alibabaecommerce giant got a big boost from the huge eatsings beat of i own, in another sign the consumer economy is clearly doing better than the industrial economy even over in china. Still, theres no shortage of confusion in the marts and theres Little Wonder why. Theres an awful lot of models that cant figure out what is going on. A number o key questions cant be answered right now. For example, will china send troops into hong kong to quell the protests or not . Wil there be r progress on trade talks or not . Will the fed aggressively cut rates or not . And, most importantly, will the Global Economy be more or less sta stable bend of the year or not . Thats an awful lot to try to figure out. For nightlbusiness report, new yorpisani at the stock exchange. Bob just mentioned the trade headlines that whipsawed the nimarket. Ce yoon explains why beijing s is sendih mixed messages. Reporter we got two conflicting statements out of chineset parts of the government today. One sounded belligerent, the other one cciliatory. The Foreign Ministry said, we hope the u. S. Sidle mee will me china halfway, but we hear this statement from chinese officials quite often, a common way that chinese officials describe beijings approach. The other statement was posted on the website warning china would take Counter Measures important the trumpmi strations september tariffs. The authorities said that the u. S. Move contra vereens consensus at g20 movies that the u. S. Deviate from t direct track of dialogue and take necessary Counter Measures. There are no specifics on theun r measures but of the two this one is more meaningful. The point is thatn e though President Trump partially delayed some tariffs, the chinesere not seeing it as a concession to them. Speaking to a source that advises policymakers, the view is it was a concession to u. S. Business and not a change to u. S. Position. Theres a feeling in beijing that the situation for President Trump is looking mreerious with the economy and with the upcoming election, and beijing is ino rush. So the thinking is that beijing should just continue toait. For nightly business report, im eunice yoon in beijing. And late today President Trump said he scheduled a call with ,inas president though he did not say when. With all of the rec about a possible recession and warning signs from the bond market, the actual data isnt badthat julys retail sales rose a strongerthanexpected. 7 . Business activity gauges in new york and philadelphia showe continued expansion. Productivity in the Second Quarter grew to better than o expected pac 2. 3 . That prompted economists to increase their forecast for Third Quarter growth to a median pace of 2. 1 . Walmart was the beneficiary of the strong consumer spending. Io we me the Worlds Largest retailer reported better and expected earnings revenue and raised its profit outlook, and the upbeat comes as other retailers struggle. That hel sd lift theck 6 , making it the best performing stock in the dow index today. Courtney reagan takes a look at what walmart is doing right. Reporter many are worried about an economic slowdown, but walmarts results arent sending any warning signals. The worldsst large retailer saw u. S. Comparable sales grow for 20 straight quarters, grocery was strong as was walmarts Online Business which grew 37 over last year. This comes as much of the Retail Sector struggles, leaving investors to wonder if walmarts strength is ananomaly. We would attribute this more to walmart but with that said the consumer is in good shapes we speak. Unemployment is at a 50year low, wages are rising. That is feeding into walmarts results. Reporter tariffs are pected to hit many Walmart Store goods in september and december, but the big box retailer feels confident about itshr ability to navigategh those higher costs and still give shoppers what they want. Walmart is working onarious tariff mitigation strategies to hold on to its position as the low price leader for shoppers and maintain its Profit Margins for sharyolders. Taised the guidance for the full year, saying despite all of the uncertainties and as far as the eye can see today we got this. This is wmart exhibiting a lot of strength. This is walmart deftly managing through a very difficult environment. Outside the u. S. Walmart does expect some downward pressure from a slowing economy in canada andrexit concerns weighing on its uk business. That is a very smart and savvy Management Team, and they are not going to overpromise an. Underdeliv theyve seen through this. I have covered these guys for 16 1 2 years aow. This i good as it has ever been. Reporter when i asked chief financial b officert biggs his view of the u. S. Thonsumer and economy, he said, quote, from what we see the consumer is stl in good shape overall. And tariffs have been on our mind for the last several months. As a chief financialof cer, you are always going to look forward at what could be coming but we have seen over the years walmart does pretty well in different economic environments. Ev r if aession is coming, walmart is ready. For nightly business report, im courtney reagan. W andmart appears to be one of the companies able to manage this uncertainnt environ that uncertainty may be why some stock investors look towardsca smal, which historically derive their revenue domestically,he insulating a bit from the overseas slow down. But there are some big, wellknown companies that are domestically focused as well. Joining us to talk about thosee names is caron with Washington Crossing advisors. Kevin, good toinee you a how are you . Im good. Thank you for having me. You know, it interesting. Walmart was able to kind of weather this uncertain trade storm. Are there other companies that you think hav the savvy Management Team to be able to navigate this particular kind of changing environment . Sure. And it is an environment that is more difcult overseas than here, so we focus our attention on t Washington Crossing on u. S. Companies for this segment. Ngat we are loo for are companies that have very good Balance Sheets with low debt, veryt consist cash flows, but are still sizable. A couple of names i brought with me tonight would be rmel, the foods company. A very solid company, mostly almost significantlyn eree United States in terms of their lsles. Their production here, mostly in the United States. And the cash flow there is very consistent, t Balance Sheets look great and i think theres a 2 dividend or sometng close tothat, which should make the Income Investor happy, particularly since it is higher than the treasury yield. Some would say and then the second go ahead. Some would say boring but thetiful if you look at bottom line, right . Well, where we are today in the cycle, we are a l g way into deep into a cycle here, and consequently if a there is investment to be made, and you are looking out three to five years, you doant to be thinking about what if something goes wrong. In a company like hormel we think would be able to hold up fairly well. Your second pick is cisco. Why do you like that. Cisco. We are talking about the Food Delivery Company here, not the networkingha company. So we see in this business is a dominant leader in its space. Theyre providing foodelery to restaurants throughout the United States and ultimately this is a very, very consistent business with, again, very consistent cash flows. Debt is very well managed. We think the balce sheet looks good. Theyve been buying back some shares, but we think in a responsible way, andas the potential for nice dividend growth. On that not, kevin caron with Washington Crossing advisers. Thank you. Vin. The man who blew tle whi on bernie maffs ponzi scheme report. Shares fell more than 11 , the worst day for ge since 2008. Morgan brennan is covering the story for us tonight from the new york stock exchange. Good evening, morgan. Reporter good evening, sue. Init is a devel story. Quote, a bigger fraud than enron and world com combinha. Thats madoffs whistleblower and financial investigator Harry Markopolos said about general electrics accounting in a scathing 168 report that was out this morning. It asserts t at theounting fraud amounts to 40 of the conglomerates markeue and that the company has masked the financial problems. The report focuses largely on ges longterm care liability, saying it is a bigger liability than the company is letting on. We went through the statutory filings for Long Term Care and pulled the regulatory filing for the year 2013 to 2018, and we saw all of the losses falling os to ges b and we saw how much premium dollars they were taking in and what their loss ratios were. Ge is losing 5. 27 for each dollar ofum income theyre taking in. The losses are sustainable and growing at exponential rate. Reporter it is work noting that markopolos is working with a hedge fund that is voting ges hedge priceill go down. The ceo fired back calling it market manipulation. That it contains misstatements of fact and he could have corrected them if he had checked with ge before publishing the report. He argued that it is solely about generating a downward volatility in the sck so he and his Hedge Fund Partner can profit. Leslie seidman ss the accusations are baseless and the motives behindus the report be questioned. This report today set a very dangerous precedent where somebodyan just say things and then potentially benefta moly significantly from the decline in the stock of the company. That is wrong r illy think that we need to investigate the motive for that, because here we have mr. Markopolos and whatever this unnamed h pge fund isbably benefitting significantly financially today, and yet the holders of ge stock have suffed a loss. Reporter it is the largest loss for that stock inbout a decade. It is worth noting though, sue, that just this evening a regulatory filing showing that Ceo Larry Culp ofge spent about another 2 million to add to his own personal stake of ge shares as well. Morgan brennan, thank yo much. Well, the problems with ther longcare ind are not new. The industry has changed dramatically over the years sge s not the only company with exposure to the sector. We are joined by doug bonaparte president ofa bde wealth. Nice to have you here. Good to see you. You know, the cross currents in health care have really been working against this industry, correct . Health care costs going up,in people l longer . Yes, those are the two biggest headwinds. So if you are anr inves looking to perhaps see whether or not you have exposure inour portfolio to a company that has a large or sizable longterm care insurance, what companies woul you look at . Sure. So the biggest one that comes to mind is genworth financial, probably one of the largest producers of longterm care insurance. John hancock has left the business since, and you also have mass mutual as a company whos aig producer of these types of policies as well. Would you stay away from them an investor in general . I cant give a specific recommendation as t whether or not you should buy or sell these companies, but i can tell you that if your concern is exposure to Rising Health care costs as well as aging population in the context of longterm care policy and risk exposure that they have, then you should probably tread lightly with regards to that exposure. And what about liability for so of these companies . Sure. So what you seeng happe today is the companies that have this type of risk out there have been attempting to increase their premiums over the last several years to basically meet up with the miscalculation of the costs associated with the risin costs of health care as well as aging demogrhics. Has r policyholders, this proven to be a costly proposition as theyve seen their premiums increase dramatical, in some cases north of 75 to 100 . Doug, thank you s much. Youre welcome. Still ahead, bdging the divide. Could rice be the key to breaking the trade tensions with china . Coming up on nightly business report, how one California Company is hoping to break the logjam. Theer hong kong gent unveiled an economic stimulus package worth more than 2 billion. The move is designed to support an already slowing economy thats now facing the pressure of political ptests as well as the impact of the u. S china trade war. Brian sullivan is there. Reporter there were no major protests today but there was one last night. Tear gas fired on protestersayho they aimed laser pointers at the police station. The question everybody on the island and across the b here has is how does this ultimately end. We spoke with anthony daparan, a longtime rident of hong kong and author of a book on hong kong protests, and we asked how he sees this all playing out. Xi jinping, the chinese president , painted himself into a corner. On one hand they said no promise. On the other hand, he k kind of impact the crackdown would have on hong kong economy and the states of hong kong as an International Financial center. Ld be stuck with muddling through for the next months to come. Reporter in 2014 there were protests that stretched on for months, both sides coming from a weaker economic position and they hope these do not do that, but thee protesters h demand that beijing does not seem closer to meeting. Beijings response yet perhaps to be fully felt here inko hong from an economic perspective. Hong kong cutting its forecast, tiimplementing economic slus to try to help out residents impact by not only the tra war but by the slow down. As the stock market continues to fall week after week, more and more hong kongers may be looking to get money out. We spoke with a lawyer who specializes in helping people get their finances in order and perhaps out of hong kong or china, and he told us that his business has picked up. Their fear is t uncertainty, the lack of predictability of what is going on h and the instability right now. So theres definitely interest to move money, capital out of hong kong. Reporter that is bad news with authorities here because many of the millionaires and billionaires w live up the hill behind us, they want to keep that money, those people and that wealth here. One things forure. We dont know how long this will go on, but with economies weakening here, in china and the United States w oneders if the weakening economy and volatile stock markets be ultimately wilhe thing that brings china and the u. S. Back to the bargainin table. For nightly business report, brian sullivan, hong kong. A California Company is set to make history,in bec the first u. S. Business to export rice to china. It ces amid that ongoing u. S. china trade war. Ontessa brewer is in arbuckles, california. Reporter kens family has been growing rice in california for five generations, for almost 100 years. Trade tensions are nothi new. It is a bit like you just ride along and you wait, and these things tend to work out. Reporter free trade has become increasingly important to la grands sun valley rice, a 100 Million Company growing, milling and disibuting all over the world. A third of all of the rice that comes out of this plant is exported to europe, the middle east, japan and korea, but la grand wanted to do sometanng americice growers have never done, sell to china. He spent 15 years and a Million Dollars at least to open the market to clear regulatory hurdles and win approval fromhi these government. Al june, in the midst of a trade war, suny landed its First Chinese contract. My first reaction was of disbelief. I couldnt believe it had finally happened. In reporter the entire industry is couon this deal. The Profit Margins on rice are slim, 3 to 5 , and sun valley is hoping to double that in china. After al it is the largest rice market in the world, consing 36 times more rice than the u. S. , and this shortd medium grain rice is n nsidered premium, affordable luxury for a growing chinese middle class. To have a truly new market where you have previously sold nothing, to start selling something, thats an enormous opportunity. So the trade tensions thatkire of pushing pause, you know, on the agricultural deals is upsetting to us. Last week when President Trump announced 10 tariffs on an additional 300 billion worth of consumeroroods id from china, china retaliated, issuing a ban on all u. S. Agriculture. La grand refuses to be discouraged. As far as optimism about the Chinese Government, it is absolutely where it was in june right out of the gate. The indications that theyre giving our customer, which is eally who they work with, are all green light. Were licensed supplier. We have been licensed by the Chinese Government as a supplier, so nothing is off track there. Reporter next month when the new harvest is ready, sun valy plans to ship two containers of rice to china. Thatepresents just 2 of its weekly shipments, but massive potential. Ken la grand sees even beyond his company, beyond his industry. He sees a stalk of rice as an olive branch in the midst trade war. For nightly business report, contessa grewe Contessa Brewer , california. Tapestry unravels and thats where we begin the market focus. Tapestry gave weak full year guidance. Shares plummeted 22 to 19. 45. Chinese ereco giant allie baba saw sales jump more than 40 in the latest quarter, suggesting the cneseonsumer is still spending despite the trade war with the u. S. And as such, the companys results topped streetio expect. Alibaba shares rose 3 to 166. Shares ofpivotal software took off after vm ware is p aceeding wi agreement to buy pivotals class a shares for s5 pere. The proposed deal would help vm softwarersify its development unit. Pivotal went public last year and its shares have falle than 60 in the past year. Pivotal skyrocketedore than 68 to 14 even while vm ware fell 7 to 142. 35. And boeing is delaying delivery of its ultra longrange version of its 7 x aircraft the company focuses efforts on getting its 737 max back in the air as we engine problems with its standard 777x. But the spck was more than 2 nonetheless to 32 even. Coming up, switchingr gears. Buyers may be in luck even as prices for new models head higher. As Interest Rates fall, those a buyingew car or a new truck are also seeing lower rates for autoloans, and that is welcome news for buyers as well as for dealers who now find themselves working a lot harder to clear out their 2018 models. Phil lebeau has more. Reporr if you have been to a showroom lately, you have probably noticed a lot of the newarsnd trucks are really not that new. In fact,re many 2018 models. I think the trend of carsge taking l and longer to sell for a model year is happening because we dont see as manyti deals, plarly in 2019. A lot of consumers are looking for low Interest Rates, zero percent has pretty of dried up. Cash offers are not necessarily as strong as they once were. Reporter that may be changing. Edmond says the average auto Loan Interest rate is now at its lowest point ts year, just under 6 , with more thanrd a t of car buyers paying under 4 . As for zero percent financing deals, ll, it is harder and harder to find them. Still, if lower rat spark demand, it will be welcome news for automakers. After the fourr best years e for auto sales in the u. S. , almost everyone in the car business expects demand to cool off, especially as prices being paid for new models coespondent to go higher. People are still buying expensive venicles. Whe look at the average transaction price it is still north of 37,000. So people are still feeling good about something in the economy. Reporter tha is reflected in Consumer Confidence, which remains high. Historically, Consumer Confidence is one of the best barometers forew car sales, even if those new cars are from the previous model year. Phil lebeau, nightly business report, chicago. And before we go, here is a numbersthe days final from wall street. The Dow Jones Industrial average rose just about 100 points to 25,579. The nasdaq fel 7, and the s p 500 added 7. That is nightlrtbusiness re for tonight. Im sue herera. Thanks for joining us. Have a great evening. We will see you right back here tomorrow. Woman this is bbc world news america. Is made possible by. The freeman foundation; by judy and peter blumkovlefoundation, pursuing solutions for americas neglected needs; and by contributions to this pbstation from viewers like you. Thank you. Laura this is bbc world news
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