Its quarterly profit jump more than 20 . Thats the good news. But the biggest bank in the u. S. By as sets missed wall streets earnings estimates. By comparatively five cents. Reporting profits of 1. 32 a share. Revenues 6 lower than a year ago at 23. 5 billion hit by volatile markets and continued low Interest Rates. They missed estimates, too. Shares were initially lower after the report as you see right there on that graphic. We take a look now at some of the big issues the countrys biggest banks are facing this quart. Reporter jpmorgan the first of the financials to report and with a miss to beat not a way to kick off a busy week of earnings. Bank of america, citigroup, wells fargo and Goldman Sachs out with their earnings in the coming days. All banks are likely to feel the effects of the macro headwinds we saw in the Third Quarter and those that affected jpmorgan, as well. First low rates, likely to squeeze margins even if they cause a short term uptick in loans like mortgages. Then theres low oil prices meaning there could be more money reserved for potential energy loan losses. Jn morgan saw credit costs in its Investment Bank go up 232 million largely reserving for oil and gas loans. And then theres volatile markets meaning lower trading revenues overall. Morgans fixed income trading revenues fell 11 . Because wells fargo has the least exposure to trading, its the only bank that wall street Analysts Expect to see overall revenues rise. To combat that revenue weakness, cost cuts will be front and center. Jpmorgan has cut 5,000 people from its headcount this year. Its cut real estate, its even cut employees voice mail lines. Bank of america has been in a years long process of getting rid of bad loans and the workers that have been servicing them. The question now is where organic growth will come from with the economy growing only moderately. The big boone to be banks was supposed to be that elusive rise in Interest Rates but yet again, the banks will have to show investors their big supermarket Business Models are working even without it. For nightly Business Report, im kayla to you she. Now to intel which beat expectations despite a 6 fall in quarterly profits dragged down by weak demand for personal computer chips. The Worlds Largest chipmaker earned 64 cents per share. 5 cents better than estimates. Revenue decreased slightly. And that weak demand for pc chips was offset by sales growth of 8 at intels Data Center Business. That segment has been growing faster than revenue overall for the chipmaker, a trend many expect will continue. And as josh lipton explains, its now the key metric that wall street uses when evaluating this company. The pc industry was always intels bread and butter. But now the company sees that changing. In fact, Ceo Brian Krzanich says hes not expecting that much from that part of his business. He has said his strategy is to try and hold sales in that business as flat as possible. So instead, investors and financial analysts are now more focused on the companys other big business, chips for data centers. Were very focused on the Data Center Market because of the profitability that it can drive which is able to offset the declines that were seeing in pc. So we look at the Data Center Business as being the real engine of Profit Growth for intel. Chips in data centers handle the work loads for mobile apps. In other words, when users open a facebook app, its likely that intel is providing the Processing Power displaying all those pictures and videos. Intel is doubling down on this technology. The Company Announced a deal to buy ultimate tara for 17 billion which could provide the company with moral specialized chips for data centers. That data center the business now accounts for some 30 of intels revenue and freedman argues that the business should keep growing strongly though he also acknowledges the risks such as competition from rivals like arm holdings. As for the pc industry, it remains under real pressure as consumers make the switch to mobile devices such as smart phones and tablet. Os. Theres some hope the pc market could get a much need boost from the from windows 10, mosts new operating system as well as the new sky lake chip which triples the battery life of a pc. For now, times are tough in the pc industry. Research firm idc says that pc shipments in the Third Quarter fell 11 . Investors though are well aware of those headwinds. The challenges plaguing pcs have been going on for some time. Intel is a 55 [ ]millionpowerhouse so the big friends in computers and data centers will take quarts, even years to play out. The debate between the bulls and bears the tra zwrekt tryst c market and momentum in that increasingly critical Data Center Business. Im josh lipton in San Francisco for nightly Business Report. Johnson johnsons results were hit by the stronger dollar. They beat earnings expectations but missed revenue forecasts because the of currency headwinds and plunging sales of its leptitis medicine, hepatitis c that is. Johnson and johnson announced it will buy back up to 10 billion in stock and on the conference call, the chief Financial Officer said the company was looking at potential acquisition. Shares fell fractionally today. And hauser busch has agreed to bide miller making this the biggest beer deal ever with a price tag of more than 100 billion. Yesterday we told you ab inbev sweetened its offer for the company and overnight that bid was accepted. The combined company will own nine of the worlds top 20 beers. But now that deal must be approved by regulators. On wall street, the Dow Jones Industrial average snapped its sevenday win streak because of a slight decline in oil prices and weakness out of china overnight. The blue chip dow index off 49 to the 17,081. Nasdaq dropped 42 and s p 500 lost 13. Oil prices closed lower after the International Energy agency raised supply concerns by saying a lot of crude remain on the market. A prominent Federal Reserve official said he does not think a rate hike should come this year. In an interviewable with steve liesman, Daniel Turillo said the economy may not be Strong Enough to handle it. Right now, my expectation is given where i think the economy would go. I wouldnt expect it would be appropriate to raise rates. But i would haston to add that that is an outlook that changes based on developments in the economy and our being forward looking about it. I do think theres been too much focus on a particular meetingen a particular date and not enough on the overall conditions can of the economy. Mr. Turillo acknowledged that the economy has made progress but that theres a lot of not a lot of momentum. Tonight the democratic president ial candidates will get their chance to tell the American Public where they stand on important Economic Issues during the first democratic debate tonight in las vegas. John harwood is there. John what, does Hillary Clinton need to do tonight and what might she say about the economy . Reporter tyler, we know that the clinton brand in Democratic Politics is strong. A lot of democrats have gotten nervous about the state of her campaign, the struggles with the email, questions about her trustworthiness. So the burd on Hillary Clinton tonight is not to go after any opponent, not even necessarily to go after republicans but to look commanding, to look fluid, to look even tempered on the stage, not testy. Lay out her plans for helping everyday day americans as she calls them. If she can do that, shes in good shape in this race. What about Bernie Sanders . Is he expected to attack her positions . Reporter he says he wont. Bernie sanders has been disciplined about not going after Hillary Clinton, relying on the contrast that is always out there. He says he is a political revolutionary. He wants a revolution. Hes a democratic socialist, not a traditional democrat. Hes going to offer the straightup solutions that hes been advocating, count on that, but he does need to try to show people, since hes done unexpectedly well so far, that he could be a potential president. So a little changing in bearing perhaps from Bernie Sanderses. What about the other three candidates on the stage . Start by telling us who they are and where is the latest thinking on joe biden . Reporter that totally your question, tyler, shows the predicament for martin omalley, jim webb, lincoln chafee. Theyre all pretty much nowhere in the race. Omalley is the closest thing to a conventional candidate. He had a solid run as governor of maryland. Hasnt made an impact financially or in the polls so far. Chafee and jim webb are both former republicans. Lincoln as governor and senator from rhode island, webb as the senator from virginia. Theyre both to the left of Hillary Clinton on foreign policy. They oppose the intervention in iraq. Theyre going to try to make an impression on people but dont seem to have too much potential for winning the nomination. Biden would be a serious challenge to Hillary Clinton. I still think in the end that biden who has not declared so far, yog expect him to enter this race. John harwood in las vegas. And now to russia where president vladimir put sin said the committee is stabilizing. The russian economy has been wrestling with the sharp fall in oil prices, of course, thats mayor that inexport. Jeff cutmore was at putins speech in moscow. The message from president putin, the west doesnt have a clear idea of exactly what is going on inside syria. I asked mr. Putin to be respond to president obamas remarks over the weekend saying, mr. Putin lacks leadership. Mr. President , over the weekend, u. S. President obama called into question your leadership over syria. He said that you are propping up an ally rather than going after isis. He also said youre running down the economy here. Can i ask you, how do you respond to president obamas comments . And what would you say to International Investors who are dissuaded from putting money into the russian economy because of such remarks . Thank you. Translator as we said, youve mixed apples and oranges together. At the military level, we asked them to give us the information regarding the target. They believe are 100 belonging to terrorists and what we received as an answer was that they wont do that. Then the second question was asked, please tell us which targets should not be attacked by us. No answer received. What should we do then . This latest row with washington over syria comes as the russian economy is still grapplinging with sanctions as a result of the campaign. Ukraine. I spoke to mr. Sillian nof, the finance minister and asked him whether he thought the russian economy was now turning a corner. Translator we experienced a slowdown in growth this year. We estimate it to be minus 3. 8 in 2015, but the Third Quarter and the end of the year are proof that we are turning the corner. In many 2016, we expect positive growth of around 0. 7 . The economy has starteded to adapt to the new Economic Conditions. That view on the economy was also shared bid president putin who feels that the bottom may now be in here in russia. This is jeff cutmore, the nightly Business Report in moscow. Still ahead, just how smart is the socalled smart money . Well talk about that coming up. Volkswagen plans to cut its annual investment by more than 1 billion following the emissions scandal. It will step up cost cutting as its vw division which is its largest by revenue and change the Diesel Engine technology as part of the companys strategic overhaul. Car sales . China climbed for the first time in six months in september prompting chinas main Auto Association to reiterate its earlier forecast of 3 growth, an about face from last month when if warned slowing Economic Growth meant sales could decline and during an interview from fortunes most powerful womens summit, mary barra talked about that key market for the auto market. China weve had record years of growth and driving growth for the globe, but now, we still think there will be Significant Growth over the next 10 to 15 years, about 10 Million Units when you put that on top of already large market of 24, 24. 5 units, china volume, its very important that we have the right product portfolio, but we also have a business that can respond quickly from you know, taking the ups and downs and still driving the right margining. Shares of gm rose slightly today. Csx posts late results that Beat Estimates where we begin the market focus. The company said profit fell slightly on slumping coal volumes and warned coal headwinds continue into 2016. Still did beat the forecasts while revenue came in just shy of the consensus. Shares popped in initial afterhours trading. During the regular session, it was more more than 2 at 27. 71. Twitter says it will lay off up to 8 of its workforce, part of restructure touring plan than jack dorsey says will put the company on a stronger path for growth. The stock rose 1 to 29. 05. And pepsico and cocacola reportedly in talks to buy a stake in the Greek Yogurt Company chobani. According to reuters, the potential deals could value the firm as high as 3 billion. Pepsico fell 1 to 97. 92. Cocacola off a fraction, it finished at 41. 65. Fmc corporation saw shares fall after lowering its outlook and announcing layoffs. The Chemical Manufacturing Company cited the devaluation of the brazilian real. Shares tumbled to 36. 35. Sandisk saw shares pop right after the close on reports that that company is exploring a sale. According to bloomberg, can the computer memory firm is working with a banker on a possible deal and both micron and Western Digital expressed interest. Shares rose initially after the close during the regular session, the stock off nearly 2 to 61. 77. Fortress Investment Group plans to wind down dits Flagship Hedge Fund returning capital to investors by the end of the year. The move comes after a challenging twoyear stritch which resulted in losses and redemptions. Michael know vo grats will leave at the end of the year. Shares on that news moving higher by 7. 5 . Fortress is the latest example of hedge fund pain. According to data from Hedge Fund Research and morning star, since 2009, hedge funds up an annualized 7 while actively managed u. S. Stock funds up 14 prompting us to ask the question, are hedge funds worth the high fees they charge. Here to discuss this and more is greg zuckerman. He writes for the wall street journal and also a noted author of several books. Good to see you. Great to be here. Lets start first of all with that fundamental question. Given the fact that hedge funds vin underperformed for the last few years, can they really justify the types of fees theyre charging . Its much harder than ever. You know, for a long time, sue the average investor started himself or herself, i wish i could be in a hedge fund. Over the past decade, theyve underperformed. Its not just stocks. Theyve underperformed i like to look at it a 60 406r7b fund like vanguard and under performed that, as well. I think a lot of us are prone to what i call financial envy. His money manager is better than mine. His house went up in value more than mine did. You seem to be saying the socalled smart money aint all that smart after all. Its ironic, a lot of big pension funds, institutions they all piled into hedge funds in 2009. And in subsequent years. And that was exactly the wrong time to be in hedge funds. You want to be in them when the stock market is expensive. That was the time to get out of hedge funds and into the stocks. Now you could argue that stocks are a little more expensive. Its not a bad idea to have alternatives as they call them, hedge funds, private equity, but yet smart money has looked pretty dumb the last few years. How much of that has to do with the fact in some cases not all do this, but in some cases they take outside positions either in a deal or in a commodity, for instance, you know, if you were on the wrong side of oil for the last year, its been very painful. They tend to place larger bets and therefore, when they win, they win really big but when they lose, they lose really big. Im going to make a counterintuitive argument. I would argue that hedge funds dont take enough risks today, theyre very much like mutual funds. They manage so much money their goal is not to blow up. They charge so much so as a result, theyre not taking these big positions. Of course, there are some, we write about them. The average hedge fund is more boring than ever and doesnt do a great job of investing like it used to. Have you outliers of course, but the average guy is much more boring and isnt performing quite as well. Boring, expensive and they underperform. Thats a real strong sales pitch, greg. I thought hedge funds the appeal of them was that because of their flexibility and because of the genius of the managers, they were supposed to b