Optimism, thanks to a dual of deals. There was greater caution as investors paused ahead of a number of high profile earnings this week. The white house says it expects the European Union to impose new sanctions this week against russia, and that the u. S. Will impose additional measures as well. And deal news which saw dollar tree and Family Dollar get together offset discouraging pending home sales for june. More on that in a moment. At the close, the dow industrials were up 22 points to 16,982 and change. The nasdaq, though inched lower, falling four and the s p 500 rose fractionally to 1978. Attention now turns to some very important data this week, including the july employment report. Our first read on Second Quarter growth and a meeting of the Federal Reserve thrown in for good measure. Steve liesman has more. The feds meeting this week comes amid a slew of important Economic Data that could influence said policy. The question is, whether the numbers will throw a wrench into the current plans to exit gradually from its easy Monetary Policy or will inflation force the feds to move more quickly. If the fed continues its gradual tapering of policy, the market becomes ever increasingly worried that the feds were behind the curve. Well get the adp report on wednesday the private Payroll Company tries to estimate the government jobs number and private sector jobs to be created. Well get the first read on Second Quarter gdp almost reversing the First Quarter decli decline. Friday we get the payroll report of 234,000. Wages seen rising 0. 2 . If the data are strong, ubs thinks they will not see a fed hike sooner but faster once it starts. The real reason is, they are going to be hitting all of their targets with the fed funds rated zero, and a Balance Sheet thats 3 trillion too large. For us, that math doesnt give up. Somethings got to give, if youre trying to tighten policy, and a Balance Sheet that creates stimulus on its own, thats going to be 3 trillion too high, the rates have to go up faster. The con tense us is that yellin wont blink. Only a slight tweak is expected wednesday to take note of the improving jobs market. Yellin is likely to resist calls for moving faster because of the housing data. Which she views as keys to the recovery, has been so mixed. The question is whether the data or better jobs growth forces her hand. For nightly Business Report, im steve liesman. Here to give us the advisement advisements, andreas let me begin with you lets focus specifically on the geo political tensions that are around the globe right now. Do they fundamentally change your view of the global economies and markets and what i should do with my money or do they merely increase short term volatility . I think the second option you provided, the fundamentals really come down to how are corporate earnings doing, which rely on the economy of the united states, we expect that theyre going to continue to accelerate although at a slower pace than were accustomed. The situation in ukraine could deteer yore ate and spike once again to create short term volatility. To our viewers that are trying to retire one day, is that going to change their asset location . Probably not. Barry, you have an interesting forecast here, its one youve stuck with for the year, you think the s p 500 will dip down this quarter to what, the 1850 level . Yeah, that would be about right, the number one rule since 2009 has been, do not fight the fed, we were bullish in 2013, but when you look at it, low inflation, low Interest Rates, cheap wages and devalued dollar largely end the market. What youre betting on now has lowered the continuity. Do you think were already beginning that slow grind lower over the next 60 days. Well, a post recession economy, and a little like a patient in the hospital, you have to have a handoff to policy life support. I think its going to be a rocky handoff, and every time the fed has let go of the handlebars so to speak, with qe, weve had some disruption. Well see how the Third Quarter goes. Andreas, you are not in barrys camp, youre not thinking of suggesting that the market may falter by 5 or 6 here, but you do say that youre no longer in love with equities, whats changed . Yeah, so if you think about what the biggest drivers for equities long term are is Earnings Growth and valuations. Last year we were pounding the table saying equities look cheap, and Earnings Growth should continue to move up higher. Valuations are no longer as attractive, so were less with one driver, we still like equities, but we dont love them as much as we did before. Really what i hear you saying there is watch profit growth, because your capitol growth is probably going to be linked very closely to that, the spective park of your investment return, the valuation isnt going to help you that much about. Exactly, now, the last thing i would add is where are your options. Obviously fixed income could be affected negatively, if the fed decides to raise Interest Rates sooner than the market expects. Leave me with one idea between now and year end that will either save me money or make me a little money. Well, its a longshot, but one of the big things ive nevers noticed about the market, as we enter a period where everyones on one side of the trade, the least expected thing happens. If growth is a little stronger than expected and overseas rebounds and real rates go strongly negative, because the fed is stuck at zero, you could see the Precious Metals finish the year quite strongly, and year to date, theyve done just fine. Let me ask the same sort of question to you. If theres one idea you would like to leave the viewers with to protect their capitol or grow it a little bit for the remainder of 2014, what might it be . European equities have had a tough run the last couple weeks, i expect that if the european economy picks up growth, you could see significant Earnings Growth for this year and next year. Gentlemen, thank you very much. We appreciate your help and your insight. Andreas garcia with jp morgan and barry banister. Thanks again. Adding to the economic and diplomatic pressure on russia. A 50 billion judgment to pay former shareholders in the now ukos government. Ukos became russias largest investor owned oil company after the collapse of the soviet union. Gml limit ed the Holding Compan had asked russia to pay 103 billion in compensation,s dispute began way back in 2003. Now to those mergers we told you about at the top of the broadcast, where the fight for penny pinching shoppers is heating up. Dollar tree announced today it is buying Family Dollar for a lot of dollars, eight and a half billion to be precise. Shares of Family Dollar sored 20 , while dollar tree gained about 1 . Why is this deal being done . Why now, and what can it mean for the company that dominates the discount space, walmart. Courtney reagan has our story. Some serious money is being spent in the dollar store space. In a surprise move, dollar tree is buying Family Dollar for 8. 5 billion. The combination will rake in more than 18 billion in annual sales, between 13,000 stores in 48 states and canada. Family Dollar Stores am stay under their same banner with ceo howard laveen joining the dollar tree board. Ceo of the now expanded dollar tree. Edward kelly says Family Dollar will increase dollar trees earnings. But he doesnt think the deal is the best move for shareholders. And is downgrading his recommendation on the stock. Carl ikon has been pushing for change. So while a new owner for Family Dollar wasnt unexpected. Many are surprised the dollar tree rather than Dollar General made the offer. The deal immediately expands dollar trees reach, albeit with two very different types of Dollar Stores. I think theres more risks for them to buy Family Dollar than Dollar General. After all, had it gone the other way, one large competitor would have been removed from the game. With dollar tree coming in, we still have three serious competitors, Family Dollar, Dollar General and walmart. For walmart, not much changes competitively with the merger. Walmart is rapidly expanding its stores. The changes shoppers may see, changes in merchandise at Family Dollar, and possibly lower prices down the road, once the scale helps lower overall costs. Two of the most Popular Companies that help people find homes are merging. The real estate website operator zillow is buying trulia. The deal would make the combined company the biggest player in the online real estate marketplace. Shares of truly ya up 15 on the nose. Morgan brennen takes a look at the piotential risks and reward in this deal. If you were looking for a home in the last years, chances are you started online. Trulia and distizillow have bee competing for a decade. Now they will merge. They trump larger businesses like raelter. Com and redfin. Its very helpful to have multiple brands to appeal to a larger audience. The overlap stats that we put in the press release for example, fewer than half of truly yas visitors visit zillow and two thirds of zillow visitors dont visit trulia. Zillow first approached trulia about a merger six weeks ago. Both businesses expect the deal to clear regulators. The companies have very similar business models. They generate the majority of revenue from online advertising. The combined company is going to have a lot of advantages. There will be one platform. An estimated 90 of americans now begin their home searches online. Zillow and trulias revenue is 4 of the estimate 12 billion. Experts say theres plenty of room for the company to grow. It could even streamline the search process for viewers. There are risks. One will be making sure distill low can develop stronger relationships with Real Estate Brokers rather than alienate them. Another issue . The deal could make it harder for Smaller Companies to compete in this space. For nightly Business Report, im morgan brennen. Still ahead, how long will funding for medicare and Social Security last. We have the details coming up. Trustees who oversee the Financial Health of the governments two benefit programs have released their annual report. There is some positive news from medicare. The report shows its funding outlook has improved and the Hospital Trust fund wont be exhausted until 2030, four years later than last years estimate. Social securitys Retirement Program will remain solvent until 2034, although disability benefits are in more immediate danger. As todays reports make absolutely clear. Social security and medicare are fundamentally secure. They will remain secure in the years ago. The reports remind us of something we must all understand. We must reform these programs if we want to keep them sound for future generations. What did we learn today about the state of medicare and Social Security . Three trust funds, three different headlines, first, medicare. The combination of a slowdown in spending on health care, benefits from the Affordable Care act and tax hikes on high income earners, along with beneficiaries paying more out of pocket all help brighten the picture for medicare finances. The trust fund as you mentioned wont be exhausted until 2030 four years later than last years estimate. For the 38 million who are getting Social Security retirement checks, it looks like benefits are guaranteed until 2034. The only near term funding problem has to do with the Social SecurityDisability Trust fund, its projected to run dry by 2016 at which point the program will only collect enough payroll taxes to pay out about 81 of benefits. Thats the latest sort of quick checkup if you will on the Financial Health of the governments two largest benefit programs. What can be done short term to fix the Disability Fund . Well, congress can do what its done in the past. Thats shift some of the revenue from the big Retirement Program or combine the two. If you do that, you shorten the long term finances by about a year, so 2033 would be the Retirement Fund deadline which was basically what the trustees told us was going to happen in the report last year. Borrow peter to pay paul kind of solution there. A little breathing room, i guess, what are the most compelling numbers for why we need a long term Social Security and medicare phase . Heres a couple that jumped off the page for me. We have medicare adding 10,000 beneficiaries every day. Since 2010, Social Security has been paying out in benefits more than its taking in. Last year no exception, 823 billion going out the door in benefits, only 747 billion collected in taxes. And that trend is expected to accelerate. Hampton pearson thanks very much. The house has just signed with the Airline Industry that allows the base price of Airline Tickets to be the most prominent part of an ad. Taxes and fees can be displayed separately. Including the taxes and fees in their advertising prices hurts business. Advertising the pretaxpayer is misleading, thats not what consumers pay. The Business TravelCoalition Says taxes make up about 20 of your average 300 total ticket price, there is no Senate Version of the bill. Virgin america has filed a flight plan for wall street. Planning an initial Public Offering of shares that it says could raise as much as 115 million. Theres no word at this point on how many shares will be sold or exactly when. Sir Richard Branson is a part owner of virgin airlines. Southwest may be making a change. The faa has proposed a 12 million civil penalty against the airline. Southwest failed to comply with regulations related to repairs of 44 jets. Shares of southwest off fractionally to 29. 21. The engine maker said Second Quarter sales were strong and the Company Raised its revenue forecast for the full year citing demand. International sales fell with weakness seen especially in mexico, brazil and india. Tough day for shares of horizon pharma. Two major pharmacy benefit managers, cvs and expressscripts will place two of its biggest selling drugs on their exclusion list, that leaves a higher amount of drug costs to patients who dont switch to other less costly alternatives. Both of the drugs in question treat arthritis. The stock was off 34 to 9 15. Tyson is selling a chunk of its acquisitions to a rival. They will sell some latin american chicken operations leaving china as its only major u. S. Operation. Volumes of stock up more than 2 to 40. 56. Smith wesson settles sec bribery charges. The company will pay 2 million for making improper payments to foreign officials as a way to win firearms contracts overseas. The violations occurred between 2007 and 2010. Shares feld to 13. 57. Herbal life reported disappointing earnings after the closing bill, the makers of weight loss and Nutritional Products reported a 17 drop in earnings. After the close, shares initially dropped on the report, they finished the regular session with a 2 gain of 67. 58. A lot of that seemingly vaporizing after hours. The chairman and ceo of garden restaurants is stepping down. Shareholders criticized his turnover strategy. He will remain on the board until the end of the year. Investors did seem to like the news. Shares popping after hours as you see right there, they close the regular session at 44. 92. Argentina will meet tuesday with a u. S. Mediator in its battle withhold out investors. The news came as the clock ticks down to a wednesday deadline for latin americas number three economy to either pay the new York Hedge Fund investors who are suing the country in full or to cut a deal to prevent a default. Failure to do so will mean that argentina wont be able to Exchange Bonds following its last default. Chinese officials have a new target, microsoft, officials in that country made an unexpected visit to the Tech Companies offices. Thats not stopping microsoft from pushing ahead with its Business Plans in china. Microsoft has confirmed that chinese officials have made sudden visits to their offices and cities across china. Officers from the state administration for industry and commerce visited the u. S. Software giant in beijing, shanghai. The Company Issued a statement saying theyre happy to answer the governments questions. The american Tech Companies have come under pressure here after the u. S. Accused Chinese Military officers of cyber theft. Microsoft is pushing into the china market, its xbox game console goes on sale in september. After the government lifted a decades long ban on consoles. Chinese can order their machines online. Microsoft says it will hold a product lunch in shanghai this wednesday, and later in the week, chinese gamers can get a better feel when they test out the gaming console in china on thursday. Coming up, ever try to change your cell phone carrier . Only to run into unexpected snags . Why that may soon be a thing of the past. There is some good news for people heading by car to their Summer Vacation destination. Gasoline prices have fallen sharply over the past two weeks, the lundeberg survey shows theyre down by 9 cents. Finally tonight, president obama says hes looking forward to signing into law a just approved bill that gives mobile phone users the right to unlock their devices and use them on competitors wireless networks. More from josh lipton on what this all means for consumers. Youre getting a quick overview of all the activity. Your phone is free again. The house of representatives passed a bill on friday to let consumers unlock their mobile devices in order to use them on competitors wireless networks. The president says he looks forward to signing the bill which has already cleared the senate and reverses the 2012 decision by the u. S. Copyright office. Why does it matter . Most mobile phones are tied to a particular network, consumers sign long term contracts. Consumers first have to get permission from their carrier or face legal ramifications, the new bill eliminates that, also, unlocking phones gives them a second life, making them cheaper options for customers who cant afford new phones with expensive wireless plans. Keeps phones from landing up in landfills. The sec announced a voluntary agreement with the major wireless carriers that may be easier for consumers to free up their phones. Consumer Rights Groups say the current bill takes it a step further. While its unclear what the Immediate Impact will be, a trade group hailed the move as a victory for smaller carriers and consumer as like. For nightly Business Report, im josh lipton in san jose. Thats nightly Business Report for tonight. Im tyler mathisen, well see you right back here tomorrow night. Welcome to film School Shorts, a showcase of the most exciting new talent from across the country. Experience the future of film, next on film School Shorts. Film School Shorts is made possible by a grant from maurice kanbar, celebrating the vitality and power of the moving image, and by the members of kqed. [ heart monitor beeping ] [ woman speaking spanish ]