>> tom>> president obama: ultimately there is no dividing line between main street or wall street, we rise or fall together as one nation. these reforms will help lift our economy and lead all of us to a stronger, more prosperous future. that's why i'm so honored to sign these reforms into law. >> tom: with that, the most sweeping financial overall since the great depression is now law. >> suzanne: it puts tough new limits on wall street. you're watching "nightly business report" for wednesday, july 21st. >> announcer: this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by:

>> announcer: investing takes perspective. it comes from navigating up and down markets for 60 years, spotting opportunities at home and abroad. global investing from franklin templeton investments, gain from our perspective. >> announcer: and by exxon-mobil. this program is made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt >> tom: good evening, and thanks for joining us. sues gasusie gharib is on assignment. i'm joined by my colleague, suzanne pratt. we have two big stories. ben bernanke's economic outlook, and the president signing financial regulatory bill into law. >> suzanne: stocks tumbled as he warned congress. the economic outlook remains unusually

uncertain. >> tom: that does not mean that the fed is changing its forecast. darren gersh picks up the story. >> reporter: no, ben bernanke is not expecting the economy to drop back into recession, but economists euphemistically call a double dip. but he had bad news for those who are out of work. unemployment is coming down more slowly than he and his colleagues had had expected, and will remain well over 7% for 2.5 years. add that to somewhat tighter credit rules and you get this. >> most participants viewed uncertainly about the growth for employment as greater has normal. >> reporter: but some of the uncertainty may be temporary. the home buyer tax credit ended in april, as did most of the economic impact of tax credits for energy-efficient appliances. and the government is now only extending unemployment. but the fed still believes there is enough economic

momentum to weather those economic hits. >> their forecast, which they released to us about a month ago, and he reaffirmed today, the g.d.p. numbers at or above 4% in 2011 and 2012. that's not consistent with the market sentiment we have right now, but the fed is sticking to its guns. >> reporter: bernanke took on the large budget deficit. political pressure is growing to cut the deficit quickly. >> the large deficits, as unattractive as they are, are important for supporting economic activity, and they were important, also, in restoring financial stability. and so i think they were justified in that respect. and i would be reluctant to withdraw that report to precipitously in the near term. >> reporter: bernanke spent a lot of time talking about plans to unwind the $2 trillion balance sheet that the fed built up to fight the financial crisis. the time to do that will eventually come, but for now he repeated promises

to move careful and keep interest rates near zero for an ended period of time. darren gersh, "nightly business report." >> suzanne: president obama signed into law new rules designed to prevent another financial crisis. passage of the dodge frank wall street reform and consumer protection act comes almost two years since the global economy almost cratered. for consumers, the biggest changes are new protections. among them, an end to hidden fees and penalties on credit and debit cards. easy to understand language on everything, from mortgage applications to credit card statements. and a crackdown on abusive lending. the president says one thing is clear: >> president obama: and finally because of this law, the american people will never again be asked to foot the bill for wall street's mistakes. there will be no more tax-funded bailouts, period. ( applause and cheers ) >> suzanne: president obama was joined by 400

people for today's signing, but only one major bank's c.e.o. was among them. citigroup's c.e.o. >> tom: let's get you updateed in the stories for tonight's "nightly business report" news wheel. the dow lost 109 points, and the nasdaq fell 35, and the s&p 500 off 13. and trading volume built on yesterday's levels, rising above the big board and the nasdaq. chevron, shell, exxon-mobil are rising a strike against future deep water drills in the gulf of mexico. they will invest at least a billion dollars for a containment of spills. the securities and exchange commission is taking a new look at a controversial fee most mutual funds charge to cover upfront sales and distribution costs. investors pay the 12.3

fees for years. the fees generate about $9.5 billion a year. >> suzanne: still ahead, this 65-year-old construction manager hasn't worked in two years, but he is not planning to retire any time soon. a look at his financial options in tonight's money profile. >> tom: more now on that oil spill strike-force organized by a quartet of oil giants. and james mulva is the chairman and c.e.o. of conoco-phillips. welcome to "nightly business report." >> good evening. >> tom: this effort begins with a billion dollar investment. how much coming from conoco? >> we share equally, $250 million each for the four companies. >> tom: what kind of link of commitment? >> the commitment is to build a containment system that can handle a blowout down to 10,000 feet of water, up to 100,000 barrels a day of capacity. and so what we have in

mind are our engineers have been working for the last six weeks from all of the company, and we think to put in place this robust system of containment will cost a billion dollars and will take about 12 to 18 months. it will be a non-profit organization, and then it will continue as a non-profit organization, having these facilities in place, especially purpose-built, located in the gulf of mexico, should another situation occur. >> tom: james, you talk about some of the specifics, and we have a screen showing just those numbers. looking to contain up to depths of 10,000 feet, and 100,000 barrels a day. is this billion dollars all for the equipment, or is this to man the equipment as well? >> well, it is essentially for the equipment that is going to be required. and then ongoing costs for the personnel to maintain the equipment, do the training and have it all

ready to be deployed in 24 hours should a situation occur. >> tom: and where do the additional costs come from? >> the costs will be coming from the participants, the four companies. but we have in mind that ultimately, all of the participants that explore and produce in the gulf of mexico will participate. they will pay in, and it will be a non-profit organization. >> tom: and how will you determine that pay rate? is it shared equally? is it by the amount of deep water production companies have in the gulf of mexico. >> i think that will be determined in time. we just thought this was very important. we've been working on this for the last six weeks. we felt that the industry response on containment was inadequate, and this is what we're putting very proactively, putting it in place. >> tom: this was spurred on by the b.p. deepwater horizon disaster. was b.p. asked to participate in this fund? >> we intend to learn from the disaster that b.p. has

had. b.p. is aware of what work is taking place by the four companies. we did not want to draw attention from what b.p. is working on. when the well is ultimately killed and that incident is over, why b.p. would participate with our effort. >> tom: so b.p. wasn't asked to participate in terms of putting the plan together or financially? >> not at this time, no. >> tom: back in june you were in washington, and one spokesman called the response from conoco-phillips and others a cookie cutter. were you told by regulators to put something together? >> no, this is a initiative that is directed towards containment, and it is pro active. it was initiated by the four companies. we have in mind to have all participant in a very inclusive way, but we kept it to the four companies because we felt that the smaller groups -- this is a group that as a scope and size and experience to put this together. but in time, we expect all

participants in the gulf to have a part. >> tom: to contain spills that happen at least 10,000 feet, which is twice the amount of b.p. disaster. are you confident that the containment is on par with those depths? >> at this point in time, it is hard to say. containment is one of three things that we feel is most important. one is we need to improve our standards on drilling, improve the containment system. and this is the effort, the $1 billion effort by the four companies. and the third element is we need to improve the response capability of cleaning up should oil get to the water. >> tom: james, who is going to be in charge? who calls the shots? >> well, exxon-mobil in the construction phase will be the operator. but all four companies will participate in the development of this project. then it will have its own

unique non-profit organization. it will have its own employees, and the management will come from the industry. >> tom: any role for coast guard or the interior department? >> absolutely. we will be working with all of the regulatory authorities. this is capability that will be put in place. should an incident -- hopefully it never occurs again -- should it come forth, this resource will be an asset under the direction of the coast guard. >> tom: james, we appreciate you sharing some of the details of this new oil spill strike-force designed for deepwater in the gulf of mexico. our guest is james mulva, the chairman and c.e.o. of conoco-phillips.

>> tom: chairman bernanke's tepid outlook for the economy led to some afternoon stock selling. let's get you updated in tonight's "market focus." now, ahead of bernanke's testimony, investors were marking time as we take a look at the intraday s&p 500 chart. the selling began at 2 p.m. eastern, coinciding with the chairman's testimony, sending the s&p 500 falling 20 points in an hour. the index finished lower by 14 points. the focus returned to earnings for a trio of can companies. ebay came in better than expected, and pay pal found double-digit rise.

and qualcomm was ahead of estimates. they increased their profit predics thanks for global demand for 3d mobile devices. starbucks 2011 forecast was less than hoped for. here is how the trio did ahead of the results. after hours, ebay added on 3% after some selling. and qualcomm was up as much at 4%. starbucks, though, fell after hours by another 3%, after a fraction loss during the section. financial shares led the way lower for the broad market. there were a couple of standouts, morgan stanley and well wells fargo. unlike competitors, it's trading business was a bright spot. the c.e.o. at morgan stanley thinks earnings will be choppy over the next few quarters. wells fargo, the stock here a fractional gain, but on heavier volume.

similar to other banks, it cut back on the amount of money it is setting aside for bad loans. the weakest financial stocks included s.l.m., and regions financial. sally mae raised its profit forecast, but also set aside more money to cover student loans going bad. technology did see a mixed bag of earnings today and reactions. e.m.c. turned in better than expected earnings. it's forecast was better than anticipated as well, but by how much remains to be seen. and that lack of clarity sent shares sliding. the stock dropped by almost 4% down to a tw two-week low. western digital was the leading loser in the sector. it fell to a two-week low, and after the close, shares came under more pressure after missing profit estimates. one to watch tomorrow. coca-cola was the best dow stock.

earnings of coca-cola up, meeting expectations as it continues to rely on international sales to fuel growth. united technologies also turned in better than expected results. and raised its forecast. u-tech was fractionally weaker as you can see. cytec industries, take a look at the chart -- shares huge volume, almost 10 times normal volume as it rallied within $2 of a new 52-week high, 50.2% stronger. and that is your "market focus."

>> suzanne: as we reported earlier, federal reserve chairman ben bernanke today told congress the economy is recovering, but it is happening slowly. which raises the question: is there anything else the fed can do to speed things up? scott gurvey reports. >> reporter: any mechanic knows it pays to have the right tools in your toolbox. the federal reserve knows this, too. and fed watchers say the central bank is working on additional tools to employee in its efforts to revive the economy. it has been at zero for a year and a half. which means there is no shortage of cash. but the economy is sluggish because there is little demand. >> corporations have tons of cash. there is very little reason for a lot of them to go to banks to basically borrow money. on the small business side, there are questions about the health of the economy, so banks are more leery throu.

so it is a combination of the bigger borrowers don't necessarily need the money, and the smaller businesses, the banks are concerned about. >> reporter: the fed may lower the interest it pays banks on money they leave idle as reserves. the fed may also modify its policy statement to suggest the fed fund's rate will stay low for a very long time. or according to economist mikely foreli, they could buy more assets. >> if they buy more asserts, i think they would buy more longer dated treasury securities. with the hope of raising the yield on the securities. and hopefully that decline and long-term interest rates get passed on to private investors. >> reporter: and it is hoped that private investors would invest in stocks and bonds that would help stimulate growth. >> if the fed has to move to that tool kit, and that tool -- if you use a

weapons analogy, that is the nuclear weapon left in their arsenal. you would see people become very concerned that the fed was monetizing the debt. >> reporter: a monetizing debt tool means printing money to curb spending. scott gurvey, "nightly business report," new york. >> suzanne: it will take intel a few more weeks to work out a settlement with the antitrust. first announced last month. but both sides have until tomorrow to reach a deal. intel has been under fire for rival chip-makers for years for its aggressive pricing and sales tactics. intel makes 80% of the c.p. u.s, the brains of the personal computers. >> tom: here is what we're watching for tomorrow: we'll take a look at the june existing home sales. and a busy day, including 3m, at&t, catepillar, microsoft, and u.p.s., to

name a few. and will this charging station be a way to fill up in the future? it is one way the government is urging consumers to buy electric cars. we'll explain. >> suzanne: conrad black is now a free man. he walked out of a florida prison, released a day after the judge set bond at $2 million. $are, however, some restrictions: he can't leave the u.s., and must return to chicago for a bail hearing on friday. in 2007, black and three other former executives of hollinger international were convicted of defrauding shareholders of $6 million. he has been behind bars for two years while he appeals that conviction. >> tom: a lawsuit against capitol one is charging forward. a lower court dismissed the case, but today an appeals court reinstated it, saying that capital one could not prove it made the required rate hikes to that consumer. neither side has commented about today's decision.

>> suzanne: long-term employment is a growing problem. especially for older workers, for people looking for a job, 55 or older, more than half have been out of wore for six months or more.

in tonight's money file segment, reporter benno schmidt looks at one unemployed worker who refuses to go that route. >> we always did well. well for ourselves. we were never wealthy. but we were never hungry. >> reporter: andy earned his living in construction. he worked his way up in the industry for over four decades, ultimately becoming the manager for large residential projects in the miami area. and it paid off, letting him own this south florida home, spend his leisure time on his harley davidsons and raise his daughters. >> we raised three children. they all went to college. we paid for college. >> reporter: as construction booned in the late '90s, so did his salary. >> pay scales were somewhat out of line from where they should have been. >> reporter: inflated? >> they were gros grossly

inflated because our boom was almost where you named your own price. >> reporter: he did that, well into six figures. he thought the good times would continue indefinitely. this job was his last job back in 2008. with such a large building under this belt and with his employment report, he was confident he would be out of work for a short time. that was more than two years ago. >> reporter: so what happened? >> the market crashed. construction died. large construction, big buildings -- well, actually, all construction, especially here in south florida, just stopped. >> reporter: since then, he has been looking for jobs, not just in florida, but in seven other states as well. but so far nothing. a big part of the problem, mirovitz is 65 years old. the unemployment rate of

all older workers has doubled over the past two years and is now at record levels. and real estate expert mike cannon notes that nationally, construction now has the highest unemployment rate of any employment sector. and he says mirovitz is wasting his time looking for construction. >> it's not going to happen. trust me. >> reporter: despite these odds, he insists he is not considering retiring. >> i want to go back to work. i wasn't ready to retire. i'm not ready to retire now. >> reporter: but meg green says that attitude just isn't realistic. >> i think anybody should be so comfortable they think life is going to go on as it used to. >> reporter: she says he should consider he may not be able to go back to a job with a regular paycheck. start by projecting a

worst-case scenario. figure out what fixed expenses you would still have to meet, like your mortgage. and think about getting rid of depreciating assets, like boats or motorcycles. andy mirowitz may have another alternative, going to work as a part-time consultant. while that wouldn't bring in the kind of money he used to make, but it might help him make ends meet until he is ready to retire. "nightly business report," miami. >> suzanne: hey, big spenders, it looks like you're back in vogue reaching into your pocket. the survey predicts cars, travel and children's clothing will boost luxury spending by $28 billion. the first rebound in three years. the online questioned 1900 households with earnings of over $235,000 a year.

70% said despite the recession, they're happy. the other big take-away, tom, more americans are measuring their lives by their personal life, not their career. tienlly a ted bit -- tidbit of good news. that's "nightly business report" for wednesday, july 21st. i'm suzanne pratt. good night, everyone, and good night to you, tom. >> tom: have a great evening, suzanne. thank you so much for watching. we hope to see you right back here tomorrow evening. there is a world of investment opportunities out there. spotting them takes experts on the ground. assessing potential firsthand. templeton, a pioneer in global investing for over 50 years. gain from our perspective. >> announcer: and by exxon-mobil. this program is made possible by contributions

to your pbstatio pbs station frm viewers like you. thank you. captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org >> more information about investing is available in "nightly business report's" video "how wall street works". to order this dvd, call 1-800- play-pbs or visit online at shoppbs.org.