Employer in the country is making a big investment in its employees. Walmart hikes to 9 above the federal minimum wage. The Worlds Largest retailer has been under pressure from organized labor group demanding higher pay and better benefits. Reported earnings today. They topped expectations but it did cut Sales Outlook citing the stronger dollar. Investors pushed shares of walmart lower likely worried about the bottom line of worker pay initiative. It was the worst performing stock in the Dow Jones Industrial average today. Courtney reagan now with more on walmart and what was behind the companys big decision. Reporter the countrys largest private employer will spend a billion dollars to increase wages for half a million of its 1. 3 million workers. Improve its scheduling and offer new Training Programs for career advancement. Currently, only 6,000 walmart workers make federal minimum wage but starting in april, wages for walmarts u. S. Employees will be at least 9 and then at least 10 an hour by february next year. Department managers will also see pay improve. Part of walmarts problem has been concerns around inventories being out of stock. Its been about bad customer service, long lines at the checkout counters. Theres been a lot of disgruntled workers. And fraj frankly, this does sound like a step to perhaps correct some of the past evils. Reporter in an exclusive interview with cnbc Doug Mcmillan said the pay increases ultimately bring sales dollars back into his store. It will play through retention, the ability to hire the talent we need to hire. Im confident those things will work their way through because were investing to make them happen. We want associates so excited to take care of customers, thanking them for shopping with us. Thats got to show up in sales. Reporter the cost of walmarts wage increase and Training Initiative are part of the reason in addition to ecommerce investments, its earnings forecast are below wall streets consensus. For the Fourth Quarter, walmarts earnings did beat expectations. Revenues came in lighter than anticipated. Most noteworthy however, sales in traffic at u. S. Stores opened at least a year posting the strongest increases in two years. The retailers chief Financial Officer said lower gas prices and Better Weather helped drive more customer trips to stores. However, walmarts u. S. Ceo greg forn said the west coast ports congestion hurts pockets of merchandise right now and said if the labor contract issues arent resolved the problems for all retailers will worsen. Out of stock inventory has been an issue for walmart in the past. Though this time theres only so much the retailer can do about it. For nightly business report, im courtney reagan. Meanwhile, the Luxury Department store chain nordstrom failed when it reported earnings. Full year outlook fell short of estimates. Those sales last quarter did slightly beat those forecasts. Shares dropped initially in after hours trading as you see on the chart following the earnings report. Liz dunn more about retail earnings cheap gas prices and Consumer Spending. The founder and ceo of tao magid advisers. Is raising wages the right thing for walmart to do and how do you expect it will affect the bottom line . I think it is the right thing to do. If you think about this in the context of the broader economy, one of the challenges weve seen is stagnating wages and so i think that this is a huge step. Walmart is the largest employer in the United States and so with this kind of step not only is it just about walmart, but sort of forces the hand of other employers to perhaps match these wage increases. So i think its the right thing to do. Investors obviously didnt like it today. But ultimately i do think that this will benefit nordstrom, im sorry, walmart. And come back to them. If some of the entry level workers have a few more dollars in their pocket theyll be able to spend a little more. Maybe some more at walmart. Absolutely. I think it will come back to walmart in terms of their sales. Also in impacting customer service. Employees feeling a little bit better about working at walmart and passing that on in terms of providing Better Customer Service to customers which should show up in the register. That was certainly mr. Mcmillans thought there. One more second on walmart. What did you make of the sales today . Very favorable. This is the second time in a row, the Second Quarter in a row, we see better results out of walmart. I think its notable, the fact its coming from traffic. Much has been said about whether or not gas prices are actually benefitting the consumer. I think this is a strong sign that they are. So numbers were good. Obviously, the outlook a little bit disappointing. Currency is one factor there. And then this cost of paying people more. You know, lets talk a little bit now about gasoline prices and your thoughts about how much if at all, those falling gasoline prices are translating into better sales at other retailers apart from gasoline stations. It seems like an awful lot of that money is getting saved or being driven towards paying down debt. What are you seeing . What are you sensing . This is an impact that we should see for the lower end consumer a bit more than the consumer broadly. The lower end consumer has been lagging. Theyve really been struggling and the recovery has missed the lower end consumer. So, you know saving perhaps and perhaps just a little bit of catchup. But i would say weve seen a number of upside surprises from you know more mass and discounters. Thats a little bit of, you know the lower expectations but i do think were starting to see a little bit of past through for consumers spending a bit more. Final question. Of all the retailers you follow what stock is your favorite right now and why . I like macys and elle brands. Theyre taking share. They also have a little bit of a benefit from improving economy overall, but i think you really want to stick with share gainers in this market because were not looking for tremendous growth in Consumer Spending and so i think the share gainers are the places you want to be. Liz, thanks. Its always great to see you. Toumidge advisers. Pressure on the dow all day long while tech remains strong and the nasdaq stayed positive. All end today, dow fell 44 points to close at 17,985 back below 18,000. S p reached an alltime high before it finished lower below 2100. Legal ruling against American Express. The judge said the company violated antitrust laws when it used a long standing practice that steered customers away from using lower cost credit cards. Now the fees that American Express charges merchants, theyre routinely higher than other card companies. American express is going to appeal the decision and it will hurt competition. This is the second setback for American Express in a weeks time. Last week, amedical examiner said amex. Shares off nearly 2 at 78. 40. To the Global Markets where japans benchmark nekay index. Proposal for a six months extension of its loan agreements. The plan was rejected by germany. Michelle carusocabrera has more on the negotiations and what might happen at a key meeting of euro zone finance ministers tomorrow. Reporter so it finally happened today. The greek government submitted a formal request for an extension of the bailout. The government refused to say its a bailout extension, but everyone else in the euro zone is saying that is exactly what it is and thats what they needed in order to come to the table. So here we go again for the third time in two weeks. All of the euro zones 19 finance ministers look at brussels for this request by the greek government. Several key commitments in there and at the same time there are a number of other countries in the euro zone. Germany in particular that feels the way its worded theres just too much wiggle room in there that greece maybe could back out of previous commitments and not stick to the program as they have previously committed to. And at the same time still try to get more money out of the euro zone. So tomorrow still going to be very very contentious. The outcome is really key. If they dont finish tomorrow then the rest of the euro zone ministers, many of whom who have to go back to their home country and parliament the equivalent of trying to get back in congress if they dont get this done by tomorrow they dont think theyll have enough time before the official Greek Program expires. That means it will be cut off by the European Central bank and that could be really devastating for the greek economy, close to exiting the euro zone. If they dont get the deal done by tomorrow theres concerns about the banking system. Would there be runs on the bank . And would the European Central bank have a big decision about whether or not theyre funding the greek banks . Bottom line tomorrow is pivotal. For nightly business report, michelle carusocabrera. Oil prices fell for a second day after a government report showed record high inventories of crude. The Energy Information administration said it was the sixth straight week where levels were at a peak. Uti fell off the session lows at 51. 16. Brent crude was down 32 cents at 60. 21. Oil and gas prices watched closely by the nations drivers who have been in showrooms buying new cars. To pay for the new cars taken on record amounts of debt. Almost 900 billion as of the Fourth Quarter of last year according to experian automotive. Philip lebeau in chicago with that report. Were seeing record auto loans but whose borrowing might surprise people. Why . Reporter i think it will surprise people. People borrowing the most had the best credit. The super prime credit rated consumers did more borrowing than any other group and that includes those with subprime or deep subprime credit ratings. Weve heard this. People with the poor credit are driving auto sales. This report shows thats not the case. We have heard numerous stories abt selling vehicles to weaker credit. Is it a concern . Is it a myth . What is it . Reporter it is a concern but not inflating sales overall. Look. In any market you will see dealers selling vehicles to people who cant afford those vehicle payments. Thats inevitable. Thats going to happen all the time. When you look at the repossession rates or the delinquency rates on auto loans, theyrre below historical averages. Were not seeing a problem right now similar to what we saw in 2008 and 2009. A lot of different advertising loan types. No money down. 0 financing. Seven year loan. Whats the most popular . The seven year rising to the top . Reporter its not the most popular yet but quickly becoming more popular. Six and seven year loans is what we see most people take out. Most people do six year loans but increasingly seven year loans are offered. Thats really amazing. Philip lebeau in chicago tonight. Still ahead, yahoo made a big move today to reinvent a critical part of its business. But will it work . We the labor market appears to be perking along. The number of americans filing Unemployment Benefits dropped to 283,000 last week. President obama submitted annual economic report to congress and it paints a positive picture of the economy. Over the next 12 months. The report clearly outlines his agenda which includes overall overhauling the Corporate Tax code increasing Infrastructure Spending and some new trade agreements. Reporter he reiterates what he proposed in the state of the union and his budge. Weve seen a celebration from the president over the accelerating job market which created 260,000 jobs on average per month in 2014. Heightened growth and better trends in unemployment which is now, of course below 6 . And the president s remedies are what he calls middle class economics. Steps to improve middle class incomes through labor market reforms, through new tax credits and tax benefits for average families and higher taxes on the wealthy. Republicans control the congress. Will the middle class economics play there . Go very far . No. It wont go far at all but the president is trying to shape the debate thats accelerating now in the 2016 president ial race tyler, as well as the congress that meets the next president. His successor. Hes trying to move the ball down the field. Maybe get some things but not very much of this agenda. Obviously, the gop has their issues with the president , but some in his own party have issues with him, specifically i think over Corporate Taxes and expanding trade. Is he making his own party unhappy . Yes. Hes making both parties unhappy, actually because democrats dont share his priority for reducing that top Corporate Tax rate from 35 to 28 as hes proposed. Hed have to close a lot of loopholes to do it. Thats very difficult to do. But one thing thats more likely to get through which is democrats are very opposed to are the transpacific trade deal. The president tries to make the argument that the problem the Labor Movement is objecting to jobs going overseas downward pressure on wages, its a result of globalization but not the trade deals themselves and he said hes going to get enforceable standards to prevent a race to the bottom in these new days. John harwood in washington. Thank you, reporting from capitol hill or nearby. Three companies returning more cash to shareholders is where we begin tonights market focus. Cocacola and kol gate all up. Coke up to 38 cents a share and tiro up to 22 cents a share. A special dividend of 2 a share and colgate buying up stock. Coke up almost 1 . Colgate shares down about a half percent. Price lines result today. Beat on the top and bottom lines. Growth by hotel and car reservations. Travel booking site said it would buy back additional 3 billion shares. It did warn investors about the impact of a stronger dollar. Still, priceline popped about 8. 5 to look 1218 at 5 a share. More than 2 million subscribers in the quarter. The chief explained how he wants to continue to invest in new subscribers. I was accused in the second half of last year. Of thinking more about customers than shareholders. Which, by the way, you can judge from the. We gave huge guidance. Its revolution. One by one taking all the things that everybody hates about wire les wireless and eliminating them structurely forever. Up to 31. 85. It was a mixed quarter for hormel. My favorite corn beef hashed raised the outlooks. And continued demand for turkey. Shares up more than 2 today to 57. 65. The government is suing to block the merger between cisco and u. S. Foods. The two largest distributors say the proposed 3. 5 billion merger would hurt in distribution and raise prices. Shares of cisco off 3 to 35. 56. Yahoo wants to show it can make mobile work. Thats what meyer was trying to prove at the first ever mobile Developers Conference today. Investors seemed pleased sending up shares more than 1. 5 . Josh lipton with a look at why its so important for yahoo to get this part of its business right. Good morning and welcome. We are so excited about today. Reporter yahoos ceo Marissa Meyer said when she first joined yahoo in 2012 the mobile business there was a hobby, not a job. These days meyer is working hard to change course. Thats why today, she hosted yahoos first ever mobile developer conference. Where the Company Announced a sweep of products for developers and touted yahoos mobile success. This reinvention of our products for the mobile space is were having the achievement im most proud of as my ten years at ceo. Investment paid off. Tremendous growth in terms of users, revenue and time spent. Not only have we seen the growth but outpacing of the historical rate. Which, by the way, wasnt that hard. We have actually outpaced the industry rate. Reporter meyer said yahoo generated more than 1 million in mobile ad revenue last year making the company the Third Largest ad company in the world. Still. Meyer has a lot more work to do. This year actors yahoo ad revenues account for 4 of the overall market. Compared to 35 for google and nearly 20 for facebook. The challenge had is even with a lot of progress the industry in terms of mobile adoption and revenue. Still half of where they probably should be. And we are so proud of what we have to offer you here today. Reporter its critical that meyer keeps the momentum in mobile going. Businesses are expected to spend 28 billion this year on mobile ads, according to Research Firm emarketer, so the stakes are high and theres a lot of money on the line. For nightly business report, im josh lipton in san francisco. Coming up uber and lift two popular startups that are changing the way people hail cabs cabs are facing legal challenges that threaten their business model. So the west coast ports are reporting now lower cargo volumes for january. The ports of seattle and tacoma said imports fell 21 compared with the same month a year ago. Port of long beach said volumes off 24 . The port of los angeles will release its numbers next week and it said it expects the report to show steep drops. The decline is being contributed to that ongoing labor dispute and slowdown. Uber the ridehailing app thats changing the taxi industry is expanding the amount of capital it expects to raise by a billion dollars and that brings the total current round of funding to just under 3 billion. The startup decided to increase the round because of high demand for its shares. The company is also seen its Revenue Growth accelerate in recent months. Well as uber grows, so do its challenges and some of those challenges could end up bringing legal challenges. Uber and lift facing lawsuits brought by drivers in cities that could dramatically increase the cost of doing business and potentially change their business models. Kate rogers reports. Reporter the model that has allowed the sharing economy to flourish could chang