Said it may stop offering coverage to individuals on the public exchanges as losses from those plans mount. The company also cut its earnings forecast for the year, which sent shares 5 lower, making it the worstperforming dow stock in todays session. But todays announcement comes in sharp contrast to more optimistic projections made about its Exchange Business just last month. So Bertha Coombs takes a look at the reasons behind United Healths announcement and what it could mean for the insurance exchanges. Reporter this is United Healthcares first year offering plans on the public aca exchanges thats seen costs and losses mount. The insurance giant says it will still offer plans for 2016 but may get out of the Exchange Business altogether after that. The Overall ExchangeMarket Profile is more negative than we had planned. With new market enrollment growth that will be more slowly. These indicators point to an environment that is declining and likely to continue in that direction into next year. Reporter Exchange Plans make up just 1 1 2 of uniteds business. So analysts say pulling the plug wont hurt its profit and it wont sink the aca markets short term, says robert liszewski. If United Healthcare pulls out the remaining Insurance Companies are enough. Thats not the point here. Reporter longer term he says aca regulations make it too hard for insurers to price plans that attract healthy consumers who can offset highcost members, and its a big problem, he says, for nonprofit insurers who offer some of the most affordable plans on exchanges. This is the first time that blue cross plans in aggregate have lost money since the 1980s. Theres a fundamental problem here with the Business Model and the Affordable Care act in these insurance exchanges. And that Business Model has got to change. Reporter united is the only insurer publicly threatening to leave, but others are making their own quiet assessments, says analyst sarah james. Weve already started to hear some other companies talk about pulling back their marketing efforts, broker commissions, as well as rethinking how theyre going to it approach 2017. So i think this is a Broader Market issue. The fact that theres too high of a sick mix in the exchanges is really something impacting everybody. Reporter in response to uniteds warning one Health Department official says todays statement by one carrier is not indicative of the marketplaces strength and viability. Still, the clock is ticking. United health says it will decide whether it will pull out of the exchanges for 2017 over the next six months. Bertha coombs, nightly Business Report, new york. And lets turn now to anna gupte who talked more about what this will mean overall for the Public Health exchanges for obamacare and for Health Insurance stocks. Shes Senior HealthCare Services analyst at lierink partners. Good to have you with us. You heard in that piece, one of the sources say that this United Health care threat to pull out unearthed a fundamental problem with the Business Model of the health care exchanges. Do you agree with that . If so, what is the problem and how could you fix it . Yes, i do agree with this. I dont think united is alone in this issue. The other four big insurers, anthem, aetna, and humana in particular are also facing a lot of issues on exchange. The exchanges look broken to me. The two biggest issues are we have the sickest comers. They always come in first. We have not been able to get a balanced risk pool with the younger and healthier enrollees that would have balanced out some of the sick Insurance Premium spirals with the healthier people. Why havent the younger people come in . Why havent they . Partly the problem is we only have partial subsidies for people that make a Household Income of 50,000 or more. And so between 50,000 and, say, 85,000 to 90,000 the product is not very affordable. The premium subsidies are not adequate. And then the veil of Hospital Services and procedures they experience huge sticker shock because the deductibles on the coinsurance can be very high. So these enrollment members are not staying on exchange. Theyre coming in and out. And as a consequence the product is not becoming affordable for the rest of the market as well. Which leads to kind of a financial instability for the organizations like a United Healthcare or a humana or whichever one youre talking about, right . So do you need to underpin those organizations with some sort of Financial Stability specific to the exchanges . Well, there are a couple of things that cms can do. The first big one i think is that they could reduce or at least dial down the special enrollment periods with very big hardship exemptions thats allowing some of this instability to persist in the marketplace, and i think that would cut some of the losses that players like humana in particular and now united are facing. The second is that there were supposed to be these backstops called the three rs in risk corridors that were expected to give some cushion to the insurers in the early years when the Exchange Marketplaces were not stable. However, the end of september cms has now said they will not be paying out the entire risk corridor payments to the insurers, and as a consequence the pricing by the insurers on exchange has not been adequate for the losses theyre facing. Thats another change that could be made as well. A very thorny set of problems. Anna gupte, thank you very much. Anna is with lierink partners. A big move late today by another dow component. Nike will split its stock two for one. The board of the Worlds LargestSporting GoodsCompany Approved a new 12 billion Share Buyback program, and it raised its Quarterly Cash Dividend by 14 to 32 Cents Per Share presplit. That sent shares higher in afterhours trading. And that lateday move in nike could help the market tomorrow. But today it was healthcare that weighed on the index and capped any gains. The Dow Jones Industrial average off four points to 17,732. Nasdaq down a point. And the s p 500 dipped two. To the economy now and some positive news in manufacturing. A survey by the Philadelphia Fed shows activity in that sector improved in november. It follows two negative readings. New orders and shipments showed some improvement as well. A separate report indicated continued strength on the job market. The number of americans filing for Unemployment Benefits fell last week by 5,000 to 271,000. Household debt has climbed toyotas highest level since 2010, now totals more than 12 trillion. A report by the new York Federal Reserve bank shows borrowing in the Third Quarter was driven by increases in mortgage lending, credit cards, auto, student loans, and that, folks, is pretty much everything. Indeed it is. Federal reserve official loretta mess ter said Economic Conditions are right for an Interest Rate hike, the first one in nearly a decade but added the markets focus should not solely be on the timing of the first rate rise. The path after liftoff is more important than liftoff per se. Theres a lot of reasons to think thats going to be a gradual path and the flc has said that in a statement and i agree with that. Reporter mester characterized the labor market as near full employment. In washington the house of representatives passed a bill that would make it harder for Syrian Refugees to enter the united states. The legislation would suspend the president s program to admit 10,000 refugees next year. 47 democrats backed the bill that broke with the president , who has threatened to veto the measure and the bill now goes over to the senate. There were major developments in the paris terror attack investigation. A french prosecutor announced today that the man they believed organized fridays attack is dead, killed in a s. W. A. T. Team raid yesterday. Michelle carusocabrera reports tonight from paris. Reporter 24 hours after that Violent Police raid in northern paris, prosecutors announced today that they found Abdelhamid Abaaoud dead in the rubble, his body riddled with bullets, and that they identified him by his fingerprints. Were also learning a lot more about the female suicide bomber in that raid. The woman who detonated a vest loaded with explosives was 27yearold hafna abolechen. Belgian media reports she posted this photo of herself on social media. According to the associated press, three Police Officials have told them she was abaaouds cousin. Her voice can be heard on this videotape obtained by french tv station tf1. It was recorded by a neighbor at the height of the raid. Also today in the lower house of Parliament Mps voted overwhelmingly to extend the current state of emergency to three months and also to give increased power to the police, including allowing them to put people under house arrest for dangerous attitudes. That vote will be taken up by the senate later this week. It is widely expected to pass. But many in paris are determined to live their lives before, as in their words to not let terrorism win. For example, today was the annual launch of the beaujolais nouveau. Thats the young wine thats introduced every year at this time. Its a huge cultural event in france. We decided to maintain the festivities because what happened on friday in paris in a way was an attack on french culture, on the french way of life, and we felt that the best way to respond to terrorist attack is to show that no, they wont change our way of life, they wont change the values. Reporter and it doesnt appear that tourists are staying away. We saw them all day here at the eiffel tower. For nightly Business Report michelle carusocabrera, paris. Attention today turned to brussels, where Belgian Police conducted a series of raids and arrested two people in connection with the paris attacks. Seven others were questioned. Julia chatterly has been following the developments from brussels. Reporter the key question here in brussels tonight is who are the nine suspects we believe are being held in Police Custody . A product of nine sefrpt raids that took place earlier today across brussels and in the surrounding regions. What i can tell you is the vast majority of those raids were very much focusing in on known associates of one of the suicide bombers from the paris attacks. Its a man called bilal hadfi. And i can tell you his relationship to brussels and belgium is that he lived here. In fact, his family still do live here. But hes not the only connection. In fact, the man believed to be the mastermind behind those paris attacks and the man killed yesterday in the raids in paris also lived here in brussels. In fact, he lived in a region called molenbeek, and thats actually where i am now. Im in a central square. You can see the town hall here behind me. And this region has been described to me as the jihadist capital of europe. Its got an 80 muslim population. Its got an incredibly high unemployment rate. And the authorities have been criticized for not doing more socially but also not doing enough to clamp down on the extremist radicalization activities that are believed to take place here. What the Prime Minister of belgium told us earlier is were going into crease security, were going to increase surveillance. And i think the raids that we saw this morning are all going to be part of that process. So we saw nine raids. We believe weve got nine suspects now in Police Custody. The question is who are they and what if any is their connection to those attacks in paris last friday . We wait and see. For the nightly Business Report im Julia Chatterly in brussels. Still ahead, tough new rules from the Treasury Department that could throw a curveball at a potential 150 billion deal. The Treasury Department is cracking down on socalled Corporate Tax inversions, a process in which companies reincorporate in lower tax nations abroad but continue their domestic operations. Eamon javers is in washington with more on these justissued rules. Eamon, this is a very timely story because earlier today we hear that the talks between allergan and pfizer are heating up. That would be potentially i guess the biggest of the what has the Treasury Department said . Well, it could be, and thats a potential deal thats waiting out there in the wings. Treasury officials briefed reporters earlier this afternoon on this, and they wouldnt answer any specific questions about pfizer, allergan, and what these new rules mean for that particular deal. They say they do this without any company specifically in mind. But let me bring you the highlights or sort of the meat on the bones of what is in these new rules, the socalled treasury notice that was issued today. Among them they say the new rules will limit the ability of u. S. Companies to combine with foreign entities using a new foreign parent located in a third country. They also say theyll limit the ability of u. S. Companies to inflate the new Foreign Parent Corporation size and therefore avoid whats known as the 80 ownership rule, and theyll also require the new foreign parent to be a tax resident of the country where the foreign parent is created or organized. All of this, tyler, is all about making these deals less appetizing for u. S. Companies and protecting the u. S. Tax base. Treasury officials very concerned here that American Companies are doing this too often and they want to stem the pace of u. S. Companies going overseas for tax reasons. If they wouldnt talk about the potential pfizer allergan situation and how this might apply, did they at least talk about when, what kind of a timetable this might go into effect . Because that might affect any pfizerallergan linkup. They did. And that gives you your big clue. They said all of these rules will be in place as of today. That is, the press conference that they held over the phone was just before 5 00 p. M. This afternoon. So presumably any deal, any transaction that takes place after that time including possibly pfizerallergan would be influenced by these new rules. That means theyd have to go through these with a finetoothed comb and make sure that deal still makes economic sense. There are a lot of reasons why they might still want to go through with it, but this is something the treasury says they need to do in order to stop these companies from moving overseas for purely tax reasons. All right, eamon, thanks very much. Eamon javers reporting with the latest from washington. One of silicon valleys hardest startups made its wall street dedue bu today. Payments for square rose above its ipo price of 9, which was below its projected range of 11 to 13 a share. Some investors are concerned about squares increasing competition which we told you about last night. But Ceo Jack Dorsey is quited about squares future. We really want to accelerate our tools out to sellers all over the world. And a big part of our future is really around this device that we announced, our new reader that accepts apple pay and emb. We want to accept that square shape where you can pay with your phone. We think its a beautiful experience. Cuts back on transaction time. And just feels great. Shares of square surged 45 . And the Online Dating service match also began trading today after price at the lower end of its expected range. The companys a spinoff from the Internet Holding company iac interactive and it owns names like tinder and ok cupid. In an interest view today ceo greg blat explained how the company is evolving. Traditionally our business makes most of its money from subscription revenue. Advertising hasnt been a big focus. But as our Business Model has evolved over time while weve been growing our paying users a lot, weve also grown our audience of nonpaying users. Now weve got 55 Million People a month that dont pay us, but we have highly targeted demographic information, age, gender, geography, education, et cetera. So its a really great audience for us. And you know, weve done some tests this year in our ad side, and its really exciting for people. And we think its going to be big business. Shares of match were 22 higher today. Best buy is forecasting a rather slow holiday season, and it posted lower than expected Quarterly Results and comparable sale samestore sales. The Company Expects revenue to decline at a low singledigit Percentage Rate in the current quarter. And that of course raised doubts about its turnaround. And as you can see there, it pressured the shares, which fell 2 . Courtney reagan has more on the numbers and what the ceo told her. Reporter well, best buys latest results werent blockbuster. The Consumer Electronics retailer did outperform the broader industry. Best buy beat earnings estimates, but its revenue was merely in line with expectations. Comparable sales at u. S. Stores increased only marginally and less than analysts had forecast. But the electronics reerltd highlighted faster yearoveryear growth online, saying free twoday shipping, searchability of clearance inventory, and onlineonly flash sales were among the drivers. I spoke to ceo hubert jolie on the phone who is in high spirits. Summing up the results of this quarter and quarters prior by saying, we at the company feel that we are crushing it. Jolie said that while results across retailers have been uneven he has a very positive view of the growing demand over time for Technology Products and services. Industry tracking group npd predicts Consumer Electronics demand will fall in the fourth quarter. Best buy expects its comparable sales to be flat. When it comes to the view on the health of the u. S. Consumer going into the holiday season, jolie talked about the uneven reports from retailers. Strength in some places, weakness in others. But ultimately, jolie told me its less about the psyche of the consumer and more about having the right products and the experience. Getting into product specifics, jolie again expects demand for 4k tvs to be strong. I asked him about the cost of broken 4k tvs before they reached consumers homes. And he said 4k tvs are very fragile, very thin, very large. The risk of damaging them in the supply chain or from the store to the shipping center to the customer is very high. So you should have the geek squad install them for you. I wish a lot of look to our competitors to take a crack at this. When i asked him about the demand for the new apple products from iphones to ipad pro to apple watch going into the holiday season, jolie said, i can provide you tim cooks email and phone number. For nightly Business Report im courtney reagan. Intel hike its dividend, and thats where we begin tonights market focus. The dow components new quarterly payout will be 26 cents a share. The company also updating its guidance, saying it expects revenue to grow again next year. Shares today up about 3 1 2 to 34. 30. The activist investor Starboard Value is putting pressure on yahoo . The firm sent a letter to the company saying it should abandon its planned spinoff of its stake in alibaba and instead sell its core Internet Business saying the risks of the spinoff are just too high. Shares were off 1 to 32. 62. And jm smucker, always like to talk about them, reported earnings that easily Beat Estimates but revenue missed consensus. The food companys bottom line was helped by its purchase of big heart pet brand, improved coffee sales. With a report like that smuckers shares had to be good. They jumped to 121. 28. I should have seen that one coming. You knew it. San francisco is suing American Express for anticompetitive and alleged illegal merchant restraints. That civil suit follows a Court Decision earlier this year where the Justice Department ruled that some of the credit cards practices restrained trade. Shares were a fraction higher to 72. 74. Gap cut its earnings projections for the full year because sales fell more than expected. The retailers samestore sales fell about 4 . Its Banana Republic unit has been its worst performing. Shares slipped in initial afterhours trading but during the regular session the stock was still off about 1 . And the grocer fresh market. Store closures weighed on its results. It comes after the firm said recently it might weigh a potential sale of its business. Shares were little changed in initial afterhours trading. During the regular session the stock was off more than 6 . Coming up, ripple effect. The Fantasy Sports industry is facing big challenges, as you may well know. And other companies in other sectors could feel the impact as well. Here is what to watch tomorrow. Volkswagen faces a deadline to tell regulators here in the u. S. How it plans to fix nearly a half million diesel cars that dont meet emissions standards. And well hear from some prominent members of the federal reserve. I thought they were all pretty prominent, sue. Thats what to watch tomorrow. Massachusetts wants to ban people under the age of 21 from playing daily Fantasy Sports. The states attorney general is also proposing tighter regulations including a ban on advertising or promotion of the contests at schools or college campuses. The Massachusetts Attorney general didnt go as far as new yorks and stopped short of calling the games illegal. Draft kings, one of the biggest daily Fantasy Sports sites, is based in boston. Comcast ventures and nbc Sports Ventures have stakes in rival fan duel. Comcast is the Parent Company of cnbc, which produces this program. Draft kings and fan duel are spending more money on legal fees as their challenges mount. And that could mean less money spent on all those advertisements. Our Julia Boorstin takes a look at the companies that may feel the impact. Reporter legal challenges to draft kings, fan duel, and yahoo sports could force the Fantasy Sports giants to shift tens of millions of dollars from advertising to legal fees and they raise questions about the longterm viability of daily fantasy. Draftkings. Com. Reporter these companies spent between 140 and 175 Million Dollars on ads in the Third Quarter. According to nomura analyst anthony de clemente. That means a range of companies could feel the impact from a cutback in ad spending. And now draft kings is reportedly asking tv partners to delay payment schedules. Weve seen of lot of these ads on espn but youve seen them all over the Football Games on fox, on cbs, and sports has been, you know, a really healthy part of the market. So you know, the impacts going to be noticeable at these networks if these guys go away. Reporter Fantasy Sports represented about 2 of the big four broadcasters revenue in the Third Quarter. But they represented more than half of their advertising growth in the quarter according to bernstein estimates. If you look at Something Like espn, i mean, they were growing advertising normalized at a 9 clip in the septemberending quarter. And probably a couple of Percentage Points of that was tied to the services. So its still good growth but not quite as good if you strip these guys out. Reporter in september alone 7 of espn ad dollars came from Fantasy Sports. Followed by fox with 6 , espn 2 with 5 , and cbs with 4 , according to moffett nathanson. Yahoo facebook, google, and twitter are also exposed with an estimated 40 of Fantasy Sports ad spending going to digital. Fan duel tells us, our advertising spend is seasonal. It peaks at the beginning of the nfl season and declines as the season goes on. Fan duel says it shifted spending toward Fantasy Sports for all, a group petitioning to keep the business legal. Draft kings tells us its been scal of the nfl season and theyre discontinuing ad channels that are not performing well. For nightly Business Report im Julia Boorstin in los ange and thats it for us. Im sue herera. And thanks for watching. Well see you back here tomorrow night. Ive never known a girl that makes me feel the way that you do youre alright. Announcer get ready for the return of motown 25, here on your Public Television station. Now its the same old song but with a different meaning since youve been gone now theres some sad things known to man but aint too much sadder than the tears of a clown when theres no one around baby, everything is alright uptight, outta sight thats mary wilson