Transcripts For KQEH Nightly Business Report 20160723 : vima

Week. Volume was light. Stocks overcame news around midday eastern time of a mass shooting in and around a major Shopping Mall in munich, germany. By early evening in the u. S. , police there said at least eight were dead. The whereabouts of the gunman or gunmen was unknown. German officials suspect a terror attack. In a world where this sort of news has become disturbingly routine investors held firm to their buying bias. The blue chip index up to 18570 and the s p 500 closed up 9 to a record of 2175. For the week, all of the major indexes finished higher. So whats been driving the market higher . And is there more room to run . Its a question investors are asking and mike centoli looks for answers. Five major arguments have been playing out in the markets favor. Can they all continue to carry stocks higher . The first rationale for the rally, that the economy and corporate earnings are getting better, the u. S. Economy has been improving across retail sales and industrial production. Threequarters of all companies are exceeding expectations for Second Quarter results. After five quarters of declines. But had this improvement already been priced in by the market . Number two technical market indicators are flashing a green light. A breakout to a new high a more than a year in the red has been quite a positive setup in the past. An unusually broad selection of stocks has been contributes to this rally. Also a plus. Still market watchers say this is a place for a pause or a pullback because of rapid gains in a short span of time. Stocks offer income in a low dividend world. The dividend yield in the s p 500 has outbased for months now. Especially those stocks perceived to be stable and not exposed to Global Economic forces. The treasury yields had begun to rise a bit from recent lows and more of the same could make these popular dividends appear overpriced. Fourth, the fed is acting friendly. Market expectations for another Interest Rate boost have waened in the last several weeks. A sidelined fed with a u. S. Economic youp turn is a rare combination that s stocks. Will the fed soon seize on better data to try for another rate boost by september. Hints could come next week when fed policymakers meet. Taken together, these factors seem to justify stocks recent run, but each of these arguments will face at least a test in coming weeks just as the seasonal pattern for markets turn a bit less favorable come august. For nightly business report, santoli. General electric issued better than expected earnings in revenue and affirmed its operating forecast for the year. But shares of the widely held stock fell on a drop in orders for the Second Quarter. Dominic chu has more now on ge, a company considered a bellwether for the broader economy. Reporter the General Electric of today looks a lot different than the ge consumerers and investors knew just about a decade ago, and for good reason. The company has gone to Great Lengths to reinvent and reposition itself as more of an Industrial Company and less of a financial one. That transformation is still in the process of playing out. Over the past few years, gerks e has focused more on developing the parts of the business that focus on Power Generation and utilities, oil and gas, aviation and transportation among those industries. Making things like turbines that create electricity also natural gas pipeline components, jet engines and trains that haul all kinds of goods. And thats just to name a few. According to chairman and ceo jeff immelt, its the companys diversity and size of businesses that helps it perform in tougher and more volatile economic conditions. And that is the kind of economy in effect today. While ge has managed to show a lot of strength in many of its u. S. Industrial sectors, results have still been weighed down by a lot of weakness in two key areas and thats oil and gas as well as transportation. Oil price declines are still keeping companies from spending more on exploration of production gear and weakness in those markets is carrying through into parts of the transportation industry. Both businesses showed sales declines over the same period last year. And the Company Expects that many of the headwinds will stick around into next year as well. But there are reasons to be optimistic. Including avs due to a record amount of orders that havent yet been filled and growth in a Digital Business that helps develop software to help industrial machines run smarter and more efficiently. Ge shares recently did hit multiyear highs but did pull back after this earnings report. Now a lot of the story for investors Going Forward is just how well ge can keep up the industrial momentum. For nightly business report, im dominic chu. Cheap oil also weighed on ge rival honeywells quarterly results. It reported lower revenue and cut its 2016 sales outlook. Honeywell said that britains decision to leave the European Union could weigh on economic growth. Shares fell 2 1 2 . Oil prices came under pressure today on concerns that the global remain oversupplied for some time to come. Domestic oil settled down at 44. 19 a barrel. Despite todays decline in prices, the worlds two largest providers of Oil Field Drilling services believe the worst is over. Sh lumber sheas ceo said that we now appear to have reached the bottom of the cycle. Earlier this week halliburton said the north American Market reached its lowest point in the Second Quarter and that it expects modest growth the rest of the year. So have we really reached a bottom in oil . John killduff is here to weigh in and where he sees oil heading. Hes Founder Partner of agen capital. Do you agree with the ceo that were at the bottom of the cycle . I think were in a phase where theres renewed selling. Will we hit the 26 low from february . Maybe not. But theres incredible downward pressure again on prices because of record inventories of crude oil and Refined Products here in the u. S. , record gasoline storage in europe and really a sloppy diesel fuel market in the asian market. Why has there been so much sort of fuel in storage when production, i gather, is actually off a bit . Certainly it is in the u. S. Nigeria, some of the other places around the world. I think over the course of this past year when ive been on with you folks ive been trying to explain that the crude oil glut was in the process of becoming a rined product glut. Thats precisely whats happened. Theres been a big ramp up in chinese production of Refined Products, theyre called tpot refineries. Theyre trying to cash in on a lucrative market or a market that has been lucrative, just as they did with the steel industry, this is now sort of a jobs program and a real tack by the government there to get into this Global Market. Theyre flooding the market now. Refined product. Refined product. They produce 150 already of their fuel requirements, and theyve been making record exports into the Global Market flooding it. At the same time were seeing a switch in the rig count. Used to be that the rig count was going down. I looked at the stats today and they going up. Theyve turned. In fact, since the low point in may, theyve rallied 20 . Were 20 higher on rig count now in just that short amount of time. The problem that were dealing with h that there just hasnt been an acceptance of this oversupply or the fact that the market could stay out of balance or oversupplied for a longer period of time. Its almost like when you get a bad flu or something and you have to worry about a relapse. I think were about to experience a relapse here at least for a time. So were in the mid40s now. We nipped up to 50. Where do you think between september and march were going to spend our lives in terms of the oil price . Were definitely in a downward phase for now. I see its going back into the mid to low 30s at least, but my feeling is that the damage done to the industry on this next selloff will be more lasting. I think theres going to be more believers that you just cant hang on here and wait for prices to recover back quickly to, say, 50. And that could be the fix for things next year. You get those producers out. Thats right. This will be the knockout blow. This downt that will then make Companies Like exxon sh lum berg and the like. In cleveland today republican president ial nominee donald trump thanked his supporters, took a swipe at ted cruz and left. Lets turn to john harwood who has moved on. Hes in philadelphia where next week the democrats gather. Good to have you with us. Mr. Trump last night made the case that he is the candidate of safety, of national security, of law and order. Todays events in munich certainly play into mr. Trumps narrative that the world is unsafe and that america most especially has to do a better job at protecting itself and its citizens. Theres no question that thats the case, tyler. Donald trump painted a picture of a world on fire. And tragedies like we saw today, which have happened all too often recently, simply underscore the concern that so Many Americans have, so many people around the world have about the fight against terrorism and it allows him to say, i have not seen whether he has tweeted on this or spoken publicly since the event, but he is going to be able to say, this is exactly what i was talking about in my Convention Speech last night. You are in philadelphia, if i can turn you to the democratic convention, which is coming up this week, we widely expect Hillary Clinton to announce her running mate either tonight or certainly some time over the weekend. We do. And we also expect that its going to be virginia senator tim kaine. But we dont have confirmation of that. We dont have confirmation that the word is going to come out tonight. Weve been given to understand that there may be a text message thats sent out to clinton supporters to be followed by a public appearance in miami tomorrow with her new running mate. Miami would not be an accidental choice if its tim kaine because he speaks fluent spanish and would be able to foster the appeal of the democratic ticket to latino voters which is already very robus with that ability, that background and tim kaine is somebody who has served as a governor, has executive experience. He has International Relations experience from his Committee Work in the congress and hes also a past chair of the Democratic National committee. Our john harwood in sweltering philadelphia where the political temperature will get even hotter next week. John, have a good weekend. You bet. One of the big issues on the campaign trail is stagnant wages. And this weekend marks the seventh anniversary since the minimum wage was last hiked. Kate rogers takes a look at the ongoing debate over pay. Reporter the u. S. Federal minimum wage was hiked to 7. 25 and thats where it remained ever since. While that debate has flatlined the debate has intense tiefied. 29 states are paying wages above the federal minimum. California and new york state are set to have the highest in the next few years at 15. A wage large cities including los angeles and seattle have also independently set. Large companies from walmart to target and even facebook have also waded into the wage fight in recent years all while the federal minimum has remained stagnant. Despite periodic increases the buying of the federal minimum wage hasnt kept up with inflation. Data show that in 1968 the federal minimum was equivalent to 10. 90 in 2015 dollars, nearly 4 higher than todays rate. For Small Business owners paying their employees more is well worth the expense. A chain with 15 locations in washington, d. C. , maryland and virginia pays his 450 employees more than hes required to and even had washington, d. C. , mayor Muriel Bowser at his store to sign the wage law into effect last month. To us its a simple but critical concept. Allow your staff to thrive and your company will thrive. Our people, our tribe are having interactions with our guests on a daily basis. Theyre the face of the brand and theyre responsible for the growth of the company. Reporter but not everyone on main street is ready to pay more. Juanita dugan, president and ceo of the conservative lobbying group the National Federation of independent business, says a higher federal minimum will be a job killer for the groups membership. They tell us they cant absorb the cost and they cant raise prices. This basically means they have to take the increase in production somewhere, and what they wind up doing is having to fire people instead of hire them. Reporter expect the wage rhetoric to heat up on the campaign trail. Democratic nominee Hillary Clinton has voiced her support for a 12 federal minimum and donald trump has been noncommittal on a plan telling nbc in may that wages should be set by states for competitive reasons. For nightly business report, im kate rogers. Still ahead, cars are getting smarter. Theyre smarter than i am, ill tell you. But are they smart enough to keep as automakers race to build smarter cars and trucks that have more connectivity, Cyber Security has become a priority. Discuss how to keep vehicles from being hacked. Phil lebeau has our story. Reporter the more were connected behind the wheel and our cars are connected to the outside world, the bigger the threat of our vehicles being hacked especially as automakers develop selfdriving cars. So far the only known examples of hackers taking control of vehicles involve researchers doing it to show how easily it can be done. That includes last year when two researchers showed a reporter how they could hack his Jeep Grand Cherokee and take control of it even though they werent in the suv. That demonstration led to a software recall of 1. 4 million jeeps. It sparked automakers like General Motors to hire Cyber Security firms to find the flaws in their vehicles. What we dont want is, you know, sitting around internally looking at our systems, testing ou systems, great testing, but theres always sort of only the paranoid survive here. We have to get input from what the latest systems are that people have access to to potentially hack one of cars. Reporter at a summit in detroit, its clear automakers realize keeping hackers out of cars is a top priority. Theyre focused on safeguards and Security Systems to not only protect cars when theyre on the road but also when theyre parked. This security cam video shows auto thieves using a computer to hack into an suv they later stole. Experts admit its hard to tell how vulnerable our cars and trucks are to being hacked when were behind the wheel, but they all agree its increasingly likely to happen as we move towards a world where selfdriving cars are not only talking to each other but also to the outside world as were driving down the road. Phil lebeau, nightly business report, chicago. Verizon nears a deal to bye yahoo s internet business. Thats where we begin tonights market focus. After several months of speculation reports peg verizon as the frontrunner to buy the asset. The reported price tag about 5 billion. Shares of both companies up more than 1 on the day. Verizon closing at 56. 10 and yahoo at 39. 38. Despite posting a 44 drop in its latest quarter American Airlines still managed to top earnings expectations. The airliner s taul fall as currency headwinds impacted its results. Shares up 4 to 36. 36. Profit rose at whirlpool as the household appliancemaker benefited from cost cuts and acquisiti inn whirlpool raised its Earnings Guidance for the year. Shares were up more than 2 1 2 to 187. 61. Stanley black decker no its not a personal Injury Law Firm its a toolmaker. Raised its outlook. Hiked its Quarterly Dividend by 3 cents to 58 cents a share. The company also said its president will take the top job at stanley at the end of the month when the current ceo is slated to retire. Shares up almost 5 to 120. 49. Tektron which makes helicopters and planes saw a rise thanks to its corporate jets. The results beat analysts and shares up to 39. 82. Our market monitor says if youre searching for yield you may want to consider real estate stocks, reits. Last time he was on in december he recommended british petroleum, exxonmobil which gained 24 and amazon which is 12 higher. Pretty good report card there. Hes steve dudeash. Welcome back. You are focusing on rates and Simon Properties is at the top of the list. Why . Big picture first, we want to get into the reit sector because it will be a new sector in the s p 500 at thend of august, which viewers may not know. When that takes place youll see a lot of purchases from passive managers across the country that need to buy into that sector which is going to inflate some of the stock prices including simon, which is the largest out there in the country. So we really like this opportunity moving to the end of the year and simon leading the charge there. The etf phenomenon is really interesting. Somebody else about that very thing that was driving the price of an individual stock up because the etfs had to own it. Number two was Equity Residential property, this is a bet that Older Americans are moving into more urban mixeduse development kinds of properties, right . Absolutely. Were seeing statistically a lot of the baby boomer who are now empty nesters and retiring returning to the urban setting. So this is one of the Shopping Mall<\/a> in munich, germany. By early evening in the u. S. , police there said at least eight were dead. The whereabouts of the gunman or gunmen was unknown. German officials suspect a terror attack. In a world where this sort of news has become disturbingly routine investors held firm to their buying bias. The blue chip index up to 18570 and the s p 500 closed up 9 to a record of 2175. For the week, all of the major indexes finished higher. So whats been driving the market higher . And is there more room to run . Its a question investors are asking and mike centoli looks for answers. Five major arguments have been playing out in the markets favor. Can they all continue to carry stocks higher . The first rationale for the rally, that the economy and corporate earnings are getting better, the u. S. Economy has been improving across retail sales and industrial production. Threequarters of all companies are exceeding expectations for Second Quarter<\/a> results. After five quarters of declines. But had this improvement already been priced in by the market . Number two technical market indicators are flashing a green light. A breakout to a new high a more than a year in the red has been quite a positive setup in the past. An unusually broad selection of stocks has been contributes to this rally. Also a plus. Still market watchers say this is a place for a pause or a pullback because of rapid gains in a short span of time. Stocks offer income in a low dividend world. The dividend yield in the s p 500 has outbased for months now. Especially those stocks perceived to be stable and not exposed to Global Economic<\/a> forces. The treasury yields had begun to rise a bit from recent lows and more of the same could make these popular dividends appear overpriced. Fourth, the fed is acting friendly. Market expectations for another Interest Rate<\/a> boost have waened in the last several weeks. A sidelined fed with a u. S. Economic youp turn is a rare combination that s stocks. Will the fed soon seize on better data to try for another rate boost by september. Hints could come next week when fed policymakers meet. Taken together, these factors seem to justify stocks recent run, but each of these arguments will face at least a test in coming weeks just as the seasonal pattern for markets turn a bit less favorable come august. For nightly business report, santoli. General electric issued better than expected earnings in revenue and affirmed its operating forecast for the year. But shares of the widely held stock fell on a drop in orders for the Second Quarter<\/a>. Dominic chu has more now on ge, a company considered a bellwether for the broader economy. Reporter the General Electric<\/a> of today looks a lot different than the ge consumerers and investors knew just about a decade ago, and for good reason. The company has gone to Great Lengths<\/a> to reinvent and reposition itself as more of an Industrial Company<\/a> and less of a financial one. That transformation is still in the process of playing out. Over the past few years, gerks e has focused more on developing the parts of the business that focus on Power Generation<\/a> and utilities, oil and gas, aviation and transportation among those industries. Making things like turbines that create electricity also natural gas pipeline components, jet engines and trains that haul all kinds of goods. And thats just to name a few. According to chairman and ceo jeff immelt, its the companys diversity and size of businesses that helps it perform in tougher and more volatile economic conditions. And that is the kind of economy in effect today. While ge has managed to show a lot of strength in many of its u. S. Industrial sectors, results have still been weighed down by a lot of weakness in two key areas and thats oil and gas as well as transportation. Oil price declines are still keeping companies from spending more on exploration of production gear and weakness in those markets is carrying through into parts of the transportation industry. Both businesses showed sales declines over the same period last year. And the Company Expects<\/a> that many of the headwinds will stick around into next year as well. But there are reasons to be optimistic. Including avs due to a record amount of orders that havent yet been filled and growth in a Digital Business<\/a> that helps develop software to help industrial machines run smarter and more efficiently. Ge shares recently did hit multiyear highs but did pull back after this earnings report. Now a lot of the story for investors Going Forward<\/a> is just how well ge can keep up the industrial momentum. For nightly business report, im dominic chu. Cheap oil also weighed on ge rival honeywells quarterly results. It reported lower revenue and cut its 2016 sales outlook. Honeywell said that britains decision to leave the European Union<\/a> could weigh on economic growth. Shares fell 2 1 2 . Oil prices came under pressure today on concerns that the global remain oversupplied for some time to come. Domestic oil settled down at 44. 19 a barrel. Despite todays decline in prices, the worlds two largest providers of Oil Field Drilling<\/a> services believe the worst is over. Sh lumber sheas ceo said that we now appear to have reached the bottom of the cycle. Earlier this week halliburton said the north American Market<\/a> reached its lowest point in the Second Quarter<\/a> and that it expects modest growth the rest of the year. So have we really reached a bottom in oil . John killduff is here to weigh in and where he sees oil heading. Hes Founder Partner<\/a> of agen capital. Do you agree with the ceo that were at the bottom of the cycle . I think were in a phase where theres renewed selling. Will we hit the 26 low from february . Maybe not. But theres incredible downward pressure again on prices because of record inventories of crude oil and Refined Products<\/a> here in the u. S. , record gasoline storage in europe and really a sloppy diesel fuel market in the asian market. Why has there been so much sort of fuel in storage when production, i gather, is actually off a bit . Certainly it is in the u. S. Nigeria, some of the other places around the world. I think over the course of this past year when ive been on with you folks ive been trying to explain that the crude oil glut was in the process of becoming a rined product glut. Thats precisely whats happened. Theres been a big ramp up in chinese production of Refined Products<\/a>, theyre called tpot refineries. Theyre trying to cash in on a lucrative market or a market that has been lucrative, just as they did with the steel industry, this is now sort of a jobs program and a real tack by the government there to get into this Global Market<\/a>. Theyre flooding the market now. Refined product. Refined product. They produce 150 already of their fuel requirements, and theyve been making record exports into the Global Market<\/a> flooding it. At the same time were seeing a switch in the rig count. Used to be that the rig count was going down. I looked at the stats today and they going up. Theyve turned. In fact, since the low point in may, theyve rallied 20 . Were 20 higher on rig count now in just that short amount of time. The problem that were dealing with h that there just hasnt been an acceptance of this oversupply or the fact that the market could stay out of balance or oversupplied for a longer period of time. Its almost like when you get a bad flu or something and you have to worry about a relapse. I think were about to experience a relapse here at least for a time. So were in the mid40s now. We nipped up to 50. Where do you think between september and march were going to spend our lives in terms of the oil price . Were definitely in a downward phase for now. I see its going back into the mid to low 30s at least, but my feeling is that the damage done to the industry on this next selloff will be more lasting. I think theres going to be more believers that you just cant hang on here and wait for prices to recover back quickly to, say, 50. And that could be the fix for things next year. You get those producers out. Thats right. This will be the knockout blow. This downt that will then make Companies Like<\/a> exxon sh lum berg and the like. In cleveland today republican president ial nominee donald trump thanked his supporters, took a swipe at ted cruz and left. Lets turn to john harwood who has moved on. Hes in philadelphia where next week the democrats gather. Good to have you with us. Mr. Trump last night made the case that he is the candidate of safety, of national security, of law and order. Todays events in munich certainly play into mr. Trumps narrative that the world is unsafe and that america most especially has to do a better job at protecting itself and its citizens. Theres no question that thats the case, tyler. Donald trump painted a picture of a world on fire. And tragedies like we saw today, which have happened all too often recently, simply underscore the concern that so Many Americans<\/a> have, so many people around the world have about the fight against terrorism and it allows him to say, i have not seen whether he has tweeted on this or spoken publicly since the event, but he is going to be able to say, this is exactly what i was talking about in my Convention Speech<\/a> last night. You are in philadelphia, if i can turn you to the democratic convention, which is coming up this week, we widely expect Hillary Clinton<\/a> to announce her running mate either tonight or certainly some time over the weekend. We do. And we also expect that its going to be virginia senator tim kaine. But we dont have confirmation of that. We dont have confirmation that the word is going to come out tonight. Weve been given to understand that there may be a text message thats sent out to clinton supporters to be followed by a public appearance in miami tomorrow with her new running mate. Miami would not be an accidental choice if its tim kaine because he speaks fluent spanish and would be able to foster the appeal of the democratic ticket to latino voters which is already very robus with that ability, that background and tim kaine is somebody who has served as a governor, has executive experience. He has International Relations<\/a> experience from his Committee Work<\/a> in the congress and hes also a past chair of the Democratic National<\/a> committee. Our john harwood in sweltering philadelphia where the political temperature will get even hotter next week. John, have a good weekend. You bet. One of the big issues on the campaign trail is stagnant wages. And this weekend marks the seventh anniversary since the minimum wage was last hiked. Kate rogers takes a look at the ongoing debate over pay. Reporter the u. S. Federal minimum wage was hiked to 7. 25 and thats where it remained ever since. While that debate has flatlined the debate has intense tiefied. 29 states are paying wages above the federal minimum. California and new york state are set to have the highest in the next few years at 15. A wage large cities including los angeles and seattle have also independently set. Large companies from walmart to target and even facebook have also waded into the wage fight in recent years all while the federal minimum has remained stagnant. Despite periodic increases the buying of the federal minimum wage hasnt kept up with inflation. Data show that in 1968 the federal minimum was equivalent to 10. 90 in 2015 dollars, nearly 4 higher than todays rate. For Small Business<\/a> owners paying their employees more is well worth the expense. A chain with 15 locations in washington, d. C. , maryland and virginia pays his 450 employees more than hes required to and even had washington, d. C. , mayor Muriel Bowser<\/a> at his store to sign the wage law into effect last month. To us its a simple but critical concept. Allow your staff to thrive and your company will thrive. Our people, our tribe are having interactions with our guests on a daily basis. Theyre the face of the brand and theyre responsible for the growth of the company. Reporter but not everyone on main street is ready to pay more. Juanita dugan, president and ceo of the conservative lobbying group the National Federation<\/a> of independent business, says a higher federal minimum will be a job killer for the groups membership. They tell us they cant absorb the cost and they cant raise prices. This basically means they have to take the increase in production somewhere, and what they wind up doing is having to fire people instead of hire them. Reporter expect the wage rhetoric to heat up on the campaign trail. Democratic nominee Hillary Clinton<\/a> has voiced her support for a 12 federal minimum and donald trump has been noncommittal on a plan telling nbc in may that wages should be set by states for competitive reasons. For nightly business report, im kate rogers. Still ahead, cars are getting smarter. Theyre smarter than i am, ill tell you. But are they smart enough to keep as automakers race to build smarter cars and trucks that have more connectivity, Cyber Security<\/a> has become a priority. Discuss how to keep vehicles from being hacked. Phil lebeau has our story. Reporter the more were connected behind the wheel and our cars are connected to the outside world, the bigger the threat of our vehicles being hacked especially as automakers develop selfdriving cars. So far the only known examples of hackers taking control of vehicles involve researchers doing it to show how easily it can be done. That includes last year when two researchers showed a reporter how they could hack his Jeep Grand Cherokee<\/a> and take control of it even though they werent in the suv. That demonstration led to a software recall of 1. 4 million jeeps. It sparked automakers like General Motors<\/a> to hire Cyber Security<\/a> firms to find the flaws in their vehicles. What we dont want is, you know, sitting around internally looking at our systems, testing ou systems, great testing, but theres always sort of only the paranoid survive here. We have to get input from what the latest systems are that people have access to to potentially hack one of cars. Reporter at a summit in detroit, its clear automakers realize keeping hackers out of cars is a top priority. Theyre focused on safeguards and Security Systems<\/a> to not only protect cars when theyre on the road but also when theyre parked. This security cam video shows auto thieves using a computer to hack into an suv they later stole. Experts admit its hard to tell how vulnerable our cars and trucks are to being hacked when were behind the wheel, but they all agree its increasingly likely to happen as we move towards a world where selfdriving cars are not only talking to each other but also to the outside world as were driving down the road. Phil lebeau, nightly business report, chicago. Verizon nears a deal to bye yahoo s internet business. Thats where we begin tonights market focus. After several months of speculation reports peg verizon as the frontrunner to buy the asset. The reported price tag about 5 billion. Shares of both companies up more than 1 on the day. Verizon closing at 56. 10 and yahoo at 39. 38. Despite posting a 44 drop in its latest quarter American Airlines<\/a> still managed to top earnings expectations. The airliner s taul fall as currency headwinds impacted its results. Shares up 4 to 36. 36. Profit rose at whirlpool as the household appliancemaker benefited from cost cuts and acquisiti inn whirlpool raised its Earnings Guidance<\/a> for the year. Shares were up more than 2 1 2 to 187. 61. Stanley black decker no its not a personal Injury Law Firm<\/a> its a toolmaker. Raised its outlook. Hiked its Quarterly Dividend<\/a> by 3 cents to 58 cents a share. The company also said its president will take the top job at stanley at the end of the month when the current ceo is slated to retire. Shares up almost 5 to 120. 49. Tektron which makes helicopters and planes saw a rise thanks to its corporate jets. The results beat analysts and shares up to 39. 82. Our market monitor says if youre searching for yield you may want to consider real estate stocks, reits. Last time he was on in december he recommended british petroleum, exxonmobil which gained 24 and amazon which is 12 higher. Pretty good report card there. Hes steve dudeash. Welcome back. You are focusing on rates and Simon Properties<\/a> is at the top of the list. Why . Big picture first, we want to get into the reit sector because it will be a new sector in the s p 500 at thend of august, which viewers may not know. When that takes place youll see a lot of purchases from passive managers across the country that need to buy into that sector which is going to inflate some of the stock prices including simon, which is the largest out there in the country. So we really like this opportunity moving to the end of the year and simon leading the charge there. The etf phenomenon is really interesting. Somebody else about that very thing that was driving the price of an individual stock up because the etfs had to own it. Number two was Equity Residential<\/a> property, this is a bet that Older Americans<\/a> are moving into more urban mixeduse development kinds of properties, right . Absolutely. Were seeing statistically a lot of the baby boomer who are now empty nesters and retiring returning to the urban setting. So this is one of the Biggest Companies<\/a> out there that handle the high density population residential population stocks. So we like it for that purpose. Not just right now but for the next couple of years moving forward. You say that none of these stocks will see 20 returns year over year, but they will perform well in the market because of the background that you just gave us and Boston Properties<\/a> is another one that you favor. Yeah. I mean, lets be honest here, these arent amazon, like the this return we saw with the others we picked six months ago. These are slower growth, more stable, defensive stocks for the portfolio. The markets have been very volatile. Were looking for things to put our money into and be comfortable with for the long haul. Boston being a prime example of that. A nice longterm hold stock that is not going to be flashy, not something youre bragging about, but a real stable piece with the volatile market were in. Thats okay. Get rich slow is fine with me. What would rising Interest Rate<\/a>s mean to any of these . Rising Interest Rate<\/a>s would obviously hurt any real estate trusts that are out there, but to be honest with you, i dont think Interest Rate<\/a>s are rising any time soon. Certainly with what just happened in brexit, you wont see the fed starting to pump up rates in any quick fashion. Maybe one or two rates this year, but nothing dramatic, nothing that would hit the bottom line to an extreme level with thee been discussing. Steve, have a great weekend. Thanks for joining us. Steve dudash, with iat wealth management. Coming up, you probably read comic books when you were young. Well, theyre really big. It may be friday but were looking ahead to next week. The earnings keep coming. 12 dow components report apple, caterpillar, mcdonalds and exxonmobil. Federal reserve policymakers will release their statement on Interest Rate<\/a>s though a rate hike is unlikely. Investors will look for hints that one might be coming. Well also get new reads oton economy from new home sales to gdp to durable goods. Theres another type of Convention Taking Place<\/a> far from clevelands rnc and next weeks dnc in philadelphia. This one is in sd, san diego. Comiccon is a gathering of pop culture enthusiasts and Media Companies<\/a> are using the opportunity to help drum up business and buzz. Julia boorstin is ther reporter over 130,000 people are flocking to the San Diego Convention<\/a> center. Many in costume to watch panels and get exclusive previews for upcoming movies and shows and rub shoulders with their favorite stars. You got to choose between disneyland and comiccon. Guess what he chose . If youre going to do it, you got to go big. Reporter in the spotlight disneys marvel and Warner Brothers<\/a> dc comics. Marvel expected to unveil new footage from movies dr. Strange and guardians of the galaxy. But Warner Brothers<\/a> focuses on suicide squad, the Lego Batman Movie<\/a> and wonderwoman as well as a number of dc comics shows. There are quite a lot of press here. And these are really the core fans. So we want to please them. Reporter and paramounts trying to generate major loyalty for star trek beyond which opens this weekend. Hosting the first ever outdoor imarx movie premiere just steps from this convention center. Hosting panels for all these die hard fans. It is crucial for paramount. Well, the upcoming star trek series is being touted as a drown jewel, the cbs allaccess app and the source of conversations on panels over the weekend. As fans wait in line for these panels theyre entertaining themselves with pokemon go. The augmented reality mobile game from nintendo thats captured the attention of millions. It was a big presence here trying to lure pokemon go fans to invest in more nintendo consoles and games. This year in addition to pokemon go which has been a massive phenomenon, we do have a new game coming out pokemon sun and pokemon moon coming out later this year. And its just one of a number of augmented reality attractions here. Warner brothers teaming up with flipper to enable fans to view exclusive content tied to Warner Brothers<\/a> shows and movies. Dc comics is allowing fans to feel what it is like to be their favorite superhero while amazon hosts a Virtual Reality<\/a> experience of the show the man in high castle. All these trying to break through the clutter by bringing fans here to the world of their content. For nightly business report, im Julia Boorstin<\/a> in san diego. Finally tonight a list wed probably all like to be on. Amazons jeff bezos briefly edged past Warren Buffett<\/a> as the worlds third richest person. At one point midday hz net worth was 65 billion. Thats about 300 million more than buffetts net worth. By the end of the day buffett was back in third. And two retailers are at the top of the list with mr. Gates. With amazon a very diversified retailer on that list. Well never be on that list. No worries about that. That will do it nightly business report, im sue her a herera im tyler mathisen. Wel. Its all right, its okay doesnt really matter if youre old and grey its all right, i say, its okay listen to what i say its all right, were doing fine doesnt really matter if the sun dont shine its all right, i say, its okay were getting to the end of the day laughter, chatter were gonna be about as popular as a fart in a spacesuit. Can we go home now . Yep, you might just enjoy yourselves. Doorman all right, you can come in. But you lot, no way. Strip clubs round the corner. Yep, theyre with me. 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