increase from the beginning of the year. erika miller has a closer look on what a new foreclosure wave could mean to the housing recovery. >> reporter: the surge in new foreclosures is not just bad for homeowners facing eviction. it's bad for the neighborhood. when distressed properties hit the market, they tend to drag down prices of other homes for sale. fortunately, this time, there are also offsetting factors, like an improving job market and low interest rates. so, there probably isn't much room for prices to fall further. >> on a national basis, you are tiarting to see stabilization in home prices. that's an encouraging development and a different nature of what we've seen so far in the recovery. >> reporter: make no mistake, the foreclosure problem is serious, and it will likely take years to clear-out the backlog. in new york, for example, it takes roughly three years to complete the process, the longest timeline in the country.

the number of homes in foreclosure is also startling. in the u.s., over a million properties had a foreclosure filing in the first six months of the year. that's one out of every 126 homes. nevada's rate is double that, followed by arizona and georgia. >> on a region by region basis, in some of the sand states for example, they may still have a fair amount of inventory to work off. >> reporter: so even as the national housing data starts to improve, plenty of americans won't feel it. erika miller, "n.b.r.," new york. >> susie: meanwhile, wells fargo, the nation's largest home lender has agreed to pay $175 million to settle charges it discriminated against black and hispanic borrowers. the department of justice said that over a five year period mortgage brokers charged higher fees and rates to more than 30,000 minority borrowers. "nightly business report" is brought to you by:

captioning sponsored by wpbt >> susie: another negative day for stocks on wall street. an encouraging report on jobless claims did little to ease the selling. economists dismissed the data saying it was skewed because of the july 4th holiday shortened week. the number of u.s. workers filing new claims for jobless benefits fell to their lowest level in more than four years, down 26,000 to 350,000. by the closing bell, the dow was off 31 points, the nasdaq down almost 22, and the s&p slipped more than six points. >> susie: a challenging day for yahoo. the internet company's web site was hacked today, with nearly half a million user names and passwords stolen. the security breach came on the same day of yahoo's annual

meeting where skeptical shareholders questioned the company's interim c.e.o. about the web giant's turnaround plan. joining us now, scott kessler, senior equity analyst at s&p capital i.q. you know, scott, this company is one thing or another. you say that things are stabilizing at yahoo. tell us why. >> we think so, susie. if you think of the last year, the company has had i think four ceos. it's really astounding. and actually haven't decided on a permanent ceo. the krntd acting ceo is ross levinson has been in the company two years. we think the company would be best suited to put him in that chair. we think he has brought a lot of the stability that you refer to to the company. he has a steady hand. he has experience, and he's well likeed and respected across the industry. in addition, they've done a number of content partnerships

as of late, and announced that they're actually moving forward on selling part of a stake in the chinese internet conglomerate. >> susie: you know, since you brought up the subject of management and ross levinson. put up a graphic to remind everybody how many ceos they've had going back to terry simmel, and then the founder jerry wang who was in that spot for a little bit, and then carol barts. you know, and scott thompson who left just a few months ago, and now ross levinson. even if it is ross or someone else, can a ceo really make a difference at yahoo? >> we absolutely think that a ceo can and hopefully will make a difference at the company. if you look at ross levinson in particular not only is he familiar with yahoo having been there a year and a half at this point. in addition he has a career

over decades where he's been participating in internet media and advertising. it's really not anything like the ceos that yahoo has had in the past where folks have had some experience and accolades for the management achievements. but the reality is that ross is the type of person who knows the company, knows the industry, and as i said, is well respected and liked, both inside and outside yahoo. that's really important for a company that needs the kind of stabilize itself and turn itself around at the same time. >> susie: you're recommending the stock. the viewers can see over five years, the stock was as high as the 30s, and now it's in the $15 range. what is your target and time line for this stock? >> right. well, susie, we went to strong buy late last year, and the stock has basically traded sideways. over the next 12 months, our target price is $20. so we see pretty notable

upside, and the risk is relatively limited given the strong bntion sheet and given the cash coming in fra the alley baba transaction. good things are happening here. >> susie: real quickly. do you think in a year or two, that yahoo is stand alone or somebody baep buys it if >> either way, yahoo shareholders win. >> susie: do you own the stock? >> no, i don't own the stock. s&p capital may have an affiliation with the company. >> susie: good enough. scott kessler of s&p capital i.t. >> susie: it's the world series of air shows, with the world's biggest aircraft makers vying for orders from some of the biggest air carriers. we're talking about the u.k.'s farnbourough air show. sylvia hall looks at how boeing, and its top rival, airbus are faring at this year's big show.

>> reporter: if you want to see fierce competition, just look up. boeing and airbus split the commercial plane market. this week, they duked it out for an edge, that neither really got. boeing's performance at farnbourough was up from last year, it logged orders or commitments for almost 400 aircraft, totaling more than $37 billion. at a similar event last year, it racked up $22 billion in orders. this year's tally includes 150 planes for united airlines. 100 of them will be boeing 737 max 9's, the company's most fuel efficient model. it helped boeing grab some market share back from airbus, who sold $72.2 billion worth of aircraft last year. this year, orders and commitments totaled almost $17 billion. >> the show, in total, was a lot smaller in commitments than last year's paris airshow. did we expect that? a little bit, i mean last year's order book was so strong at more

than 2,000 aircraft between the two, that you would expect some falling off this year. >> reporter: worries about the global economy held orders back at this year's show, also, weighing, massive backlogs, the combined companies have more than 8,000 planes already on order. >> there's just a lot of aircraft to be delivered, and the question is how much can airlines continue to order- including air leasing companies- continue to order without sort of having a product in-hand. >> reporter: even commercial commitments that don't top the charts are welcome in this industry. as boeing, and airbus' parent company, eads face choppy skies as governments cut their budgets. >> you're looking at a very significant budget cut exercise that could really drive revenue downward in the next couple of years. and as a result, a lot of these companies are looking at the strong commercial jetliner segment to keep revenues somewhat intact. >> 500 million cut to the u.s.

defense industry. it's something the aerospace industrys are trying to stop. silv cra hall, nbr, washington. >> susie: gold prices fell slightly today, and silver rose a bit, but both metals are flat so far this year. what are the trends for the second half of the year? we turn to joe foster for his forecast. he's portfolio manager of the van eck international investors gold fund. >> what is your forecast? you have geld closing today at 1565 an nounce. where do you see prices by the end of the year? >> i think gold can test the highs we made back in saeptd

of last year, the high was $1921 an ounce. and i think as we go through the second half, the things that will drive gold will be a lot of the things that have been driving it all along. >> and we see a round of qe out of the fed, and sovereign debt problems in europe. financial stress in general that has been driving this gold market throughout the credit crisis. >> you know investors were fruflterated when there was no hint that the fed would do more stimulus. what are the chances that the fed might not do any stimulus for the rest of the year and the impact that would have on gold prices? >> we're in the middle of a global synchronized economy, and there's a chance we could dip into recession. in your lead story on the

foreclosure, it's exemplifies the tough times we're having. i think we'll see poor economic number that is move the fed to another round of easing. >> susie: we know that silver tracks gold prices. silv ser raid trading around the $27 level. where do you see silver prices? >> silver is -- the old highs were 50. i don't think it will test the old highs like gold. again, we've got a weak global economy right now, and there's a lot industrial component to silver. i could see silver moving up into the 30s, and maybe testing 40 as a monetary metal through the end of the year. >> susie: talk about how investors play all of this. you have four stocks you're recommending. gold corp, eldorado cold, and

new gold. ng. what's the unifying theme here? >> there's several things. first of all, each of these companies provide growth in the near sterm and the long term, and that's something getting hard tore find in the gold industry these days. >> gold stocks haven't performed well, and we find the evaluations are very attractedive, and financially they're in great shape generating a lot of cash and paying dividends. balance sheets are healthy. very interesting forecast. do you own any of these stocks? any disclosures to make. >> i own the international investors gold fund. through the fund i own the stocks >> susie: joe foster of

global. >> susie: it was a battle for control between the bulls and the bears, as investors seemed unwilling to make big commitments either way. earnings concerns again were the focus, but so was the u.s. economy, and those much improved jobless claims. a look at an intraday chart of the s&p 500 reflects investor ambivalence. stocks stumbled this morning, but the index clawed back to almost even by the end of the session. trading volume on the big board was light again on this summer thursday, weighing in at 760 million shares. nasdaq volume rose a touch to

1.7 billion shares. equity investors are also stressed about turmoil in currency markets, and what it means for corporate earnings. on top of weak european sales, u.s. multinationals are losing money because of the strong dollar. investors have been selling euros and buying dollars as worries mount about europe's financial problems. the euro fell to $1.22, that's a two-year low against the dollar, and currency experts say it could fall further. >> market sentiment remains a little negative for the euro. it's been the case today that no news is bad news for the euro. i think the markets are still a little disappointed with the outcome of the euro leaders summit at the end of june and also the european central bank policy announcement earlier this month. >> susie: earnings worries pressured info technology and financials, both sectors losing 1%. telecom services fell less than 1%.

healthcare was on the winning side, rising only fractionally. leading healthcare higher and the best blue-chip stock: merck. analysts predicted annual sales of $3 billion for its osteoporosis drug, shown to be effective before ending clinical trials. the stock rose more than 4%, as analysts said the company isn't getting credit for other drugs in its pipeline. also supporting the dow, shares of procter and gamble. the government gave the green light for the hedge fund pershing square capital to acquire a bigger stake in p&g. shares of the consumer products giant rose nearly 4%. it's now trading at its highest level since mid may. the consumer staples sector also had a big loser today, supervalu. the stock plunged 50% after it reported declining sales and earnings. on top of that the supermarket operator axed its dividend, and said it was considering the sale of all or part of the company. supervalu has had difficulty competing with wal-mart and target.

the competitive landscape spooked investors in other supermarket chains. safeway shares tumbled more than 12%. it was the hardest hit in the s&p 500 today. kroger shares lost nearly 4%. and, it was the "boot" today for the head of general motors' opel division, the unit's fourth management shakeup in less than three years. germany's opel will be run by gm's vice chairman, while the company looks for a new boss. the move came as a surprise, and analysts say reflects the automaker's growing impatience with its poor european sales. the stock slid nearly 3% to $19.33. turning to the most actively traded e.t.f.'s, we see the emerging markets e.t.f. was hardest hit, falling 1.7%. and that's tonight's "market focus."

>> susie: if you're one of those people who loves shopping online, because you can avoid paying state sales tax, there may soon be some changes in store. in the next few weeks congress will take up the issue of making it easier for states to collect sales taxes online. ruben ramirez reports. >> reporter: the locally-owned bookstore may seem like a thing of the past, but don't say that to eileen mcgervey. >> at least once or twice a day we get someone come in that says. i didn't even know you were here. i'm so glad you're here. now, i don't have to barnes and noble. >> reporter: for mcgervey and many small businesses around the country, there's a battle brewing between locally-owned bricks and mortar stores and online retailers. the issue: e-tailers without a physical presence in a state don't have to charge state sales taxes. >> i have to pay taxes on what i sell. and so if someone else is doing business in the state i'm not sure why they wouldn't have to

pay taxes as well. >> reporter: for states, levying sales taxes could mean an additional $12 billion in new revenue each year. >> over the last few years where they had to cut so much of theim budgets and not wanting to raise taxes a lot of states realize this is a tax that is already in place, the tax is owed. people who buy, the residents who buy online owe the taxes. there is just not a way to collect it. >> reporter: in virginia, if online retailers had collected sales tax this year, it would have added nearly $423 million to state coffers. when consumers shop online, they're supposed to, technically, pay sales tax by reporting it on their state tax returns. but, as it turns out, americans aren't always honest when it comes to paying their taxes. the biggest e-tailers like amazon, barnes & noble and apple already collect state sales tax in most states. but beyond the biggest players the top 500 e-retailers

accounted for 93% of the uncollected sales tax in the u.s. new legislation working its way through congress could make the collection of state sales tax a standard practice on the web, no matter what site you shop on. netchoice's steve del bianco says the cost for small e- tailers to track state sales taxes could be huge. >> one of my members in waynesborog, virginia, runs the silver gallery dot com. but to for her the estimate to upgrade her information systems comes to over $20 thousand to change her customized order fulfillment system. >> reporter: for mcgervey it's all about leveling the playing field. >> originally it was that people wouldn't go online to bu because it would be delayed gratification. they would want to get it in the store and so that was to help them along. well, they don't need that anymore. >> reporter: one page doesn't sell books online because mcgrevey says the value of what they offer is in the recommendations and connections her customers make, and that's something you can't get online. ruben ramirez, "n.b.r.," arlington, virginia.

>> susie: tomorrow on "n.b.r." j.p. morgan will be in the spotlight as the bank reports its second quarter numbers. investors will get a first look at how much that controversial trading loss impacted results. and our "market monitor" guest tells investors "be defensive," but take selective risks. he's jason pride, director of investment research at glenmede. when it comes to teaching kids about money, it goes deeper than anything you can find in a text book. "earn it, learn it" author alisa weinstein explains in tonight's kids and cash. >> i'm going to let you in on a little secret. financial literacy is not about the money. it's not really financial literacy at all. its life literacy. cause just knowing how money works is not enough to guarantee we'll be responsible with it. it's great to teach our kids how to save, how to spend, how to budget. but these are just tools. they're facets of a really big picture. we can't effectively teach kids

financial literacy if we leave out how money fits into our lives. and even though money's about numbers, its not like teaching kids math. because financial decisions aren't black and white. if they were, we'd all be perfectly financially responsible all the time. i know i'm not. money's tied into so many other things, like our health and our jobs and our partners. our age and upbringing. and it changes all the time. one plus one will always equal two, but what works financially one month may not the next. so when you're talking with your kids, remember to teach more than just the tools. share a time you combined your responsibilities, values, ethics, and emotions to make a financial decision. explain that they'll one day use the same benchmarks to make other life decisions, too. and that how we manage our money is only one piece of creating quality of life. a secret you'll be quite happy to let out of the bag. i'm alisa weinstein.

>> susie: speaking of kids and cash, parents are forking over a lot of it these days for youth sports. by some estimates baseball equipment and uniforms account for over a billion dollars in annual wholesale sales. as suzanne pratt reports, gone are the days of simple recreational leagues and playing ball in a t-shirt and jeans. >> reporter: this is a little league game in eastchester, new york. but it could be anywhere u.s.a., anywhere where baseball is beloved. for the kids, it's a time to catch flyballs, field grounders, develop a swing and most of all, gain confidence. for their parents, however, it's time tpony up the cash. as it turns out, playing organized ball today requires more than a stick and a glove. >> when i was a kid we all basically chipped in for an aluminum bat that probably cost $80, black magic easton bat that we all used. today, an aluminum bat can run somewhere between $40 to $400.

>> reporter: sporting goods stores like this one are benefiting from the rising costs of outfitting your little babe ruth. there is a dizzying selection of helmets, gloves and bats. but, they're not cheap. batting gloves: $20. batting helmets: $40. baseball pants $20, if you're lucky. and, don't forget protection, heart guard, mouth guard, sliding pants, etc. will run you at least another $100. >> now even coaches require kids to have more equipment to even practice. so, practicing and games requires more equipment than it used back ten years ago or more. and, while youth baseball is one of the most popular team sports in the u.s., it's not the priciest. that honor probably goes to ice hockey, where parents should be prepared for serious sticker shock. >> it's been really pricey for the pads, then you have the chest protector. you have also her little

suspenders that hold up her jock and all that and everything. all together we probably paid about $1,200 or $1,500. >> reporter: beyond the skates, the helmet and the sticks, there's the ice time and travel team fees for training a future wayne gretzky. and, with all the talk these days about concussions, coaches say one thing should be considered priceless. >> any parent that's got a kid playing a sport such as hockey, a contact sport, safety or course is a big issue. and, you want them to be safe. maybe not so much the high end stuff, but the right fitting equipment is the most important. >> reporter: some parents may argue high end equipment for growing kids is one more bad example of american materialism. but, then again, there's no price-tag on the thrill of a perfect hit on a perfect summer night. suzanne pratt, "n.b.r.," eastchester, new york.

>> susie: that's "n.b.r." for thursday, july 12. good night everyone. we'll see you online at: www.nbr.com and back here tomorrow night. "nightly business report" is brought to you by: captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org

the following kqed production was produced in high definition. ♪ ♪ ♪ every single bite needed to be great. >> twinkies in there. >> wow! >> it's like a great, big hug in the whole city. >> that food is about all i can handle. my parents put chili powder in my baby food. >> french fries everywhere, all over the table and just a lot of chili.