this is "nightly business report" with tyler mathisen and susie gharib brought to you by. >> sailing through the heart of historic cities does and landscapes on a river you get close to landmarks, local life. cultural treasures. viking cruises, exploring the world in comfort. nothing to shout about, why yahoo's earning outlook may give investors reason for concern. >> rising home prices, falling inventory, bidding wars, a housing bubble? why they may not be the case. >> and wins and loses as the worst heat wave of the summer grips the northeast. that and more tonight on "nightly business report" for tuesday, july 16th. good evening everybody. i'm bill griffin in for tyler mathisen with susie gharib.

there may not be a lot of celebrating at yahoo this evening. it's the one anniversary of marissa mayer taking over the top job and aft close, the company posted a beat on second quarter earnings, however, they did miss on revenues and the big concern turned out to be the warning for the third quarter. there is more from the nasdaq tonight, sema. >> reporter: yahoo's second quarter revenue is short of expectations at $1.07 billion and that's primarily due to a drop in it's display advertising revenue. yahoo's earning at 35 cents a share beat street expectations by 5 cents. the third quarter outlook disappointed the street when we saw shares move to the downside. pvc partners saying yahoo is facing challenges. a couple points made on the conference call on the tumbler acquisition, yahoo says the acquisition is expected to grow

yahoo's audience to more than 1 billion monthly visitors. marissa mayers says quote i'm encouraged by yahoo's performance. our continued stability and we launched more products than before. shares are down after hours, however, yahoo gained roughly 70% since marissa mayer took the job of ceo one year back. bill, back to you. >> thanks very much. on wall street today a mixed bag of earnings pulled down stocks ending three days in a row of record highs in the dow and s&p 500. volume was light with investors in a holding pattern waiting to hear comments from ben bernanke. he's on capitol hill tomorrow and thursday speaking to lawmakers on the state of the economy. the blue chip dow lost 32 and the s&p off by 6 points. shares of coca-cola were the biggest decliners in the dow today falling nearly 2% of

reporting lower quarterly profits. coke earned 63 cents a share that matched expectations, but sales and the volume of cases shipped were both below estimates. coke's ceo is laying a lot of blame for the slowing sales over the last three months on wet and cool spring weather. shares of investment goldman sachs were down even though it reported profits doubled last quarter. it benefitted from the rising stock market as under riding and trading rose sharply. it earned $3.77 a share, well above east mitts of 2. 82. ceo said improving economic conditions drove client activity. but today investors focused on new banking regulations that will limit how much of it's money the firm can risk, raising concerns gold man won't be able to repeat the gains made in that quarter. earnings for johnson and

johnson doubled but that stock was unchanged today. the company earned $1.48 a share, up 8.7% to thanks to new drugs. shares didn't budge in the news, but so far this year, that stock has soared by 30%. and our guest tonight has a buy rating on johnson and johnson stock. he's matthew dobbs, healthcare analyst matt, thanks for joining us tonight. >> thanks for having me. >> you have a buyer on the stock, up 30%. what else is going to drive this stock higher? is it time to take profit? >> i don't think so. the reason i say that is because the last four quarters, they have actually shown improving trends and the beat this quarter was the biggest in several. you could go back three, four years and what is driving it is the fapharmacy business. it has much higher margins, so

you're seeing the pnl up shift with that group out performing as it is. >>. under performers, consumer division and medical devices, will they play catch up or will the pharmacy drive it? >> healthcare pressure, much more germane to med tech and then consumer, it's recovering from fda issues but the profitability is below where it was and that will time take to fix. pharmacy business will drive the bus the next two quarters or longer. >> a lot of recalls about tylenol and motrin, not to worry about those? >> they are in consent with the fda. it's only 12% of their profit. so it doesn't really drive the earnings and even if it comes back to it's old levels, it's still well-below mdm and pharma.

>> it's an international concern, business overseas, currency flux waxs and the impact down the road. what is the forecast there? >> so they raised guidance and 4 cents were taken out for foreign exchange for the back half of the year, so not that big. we're talking about a number in the 540s, 547 range and they had a very strong quarter in brick. they grew 19%, which was consistent with the first quarter. i think that's important because there is a lot of concerns that some of the markets might be slowing but for healthcare and j and j as a barometer, it didn't appear that way. >> so getting a very upbeat and positive forecast for this company. anything that concerns you? any wild card? >> well, the evaluation is a premium. it went from a discount to premium at this big run, so you have to bet the company's pharmacy business deserves a

good-sized premium to ever the math work. that's the most important thing. there is concern with china and getting more aggressive with the companies. again, that's margin for j and j's size. i feel it's their best recent trend in a long time. >> quickly, near all time highs at $90, how much higher can it go? >> i went up to 101 today. i'm going for three digits. >> wow. >> new target. good thing you asked that, bill. thanks a lot. >> thanks for having me. get ready for more pain at the pump unfortunately. the government's energy information administration today said gasoline prices could soon rise an additional 15 cents a gallon because of the recent spike in crude oil costs. gas has already risen 15 cents a gallon in the past week and averaging $3.64 a gallon nationwide. top senate lawmakers unveiled a plan today to bolster the finances of the federal

housing add machiministration. it's facing loses from default on mortgages that guaranteed during the housing crisis. the draft bill would help stabilize the u.s. market by strengthening the finances of the fha that ensures one third of all u.s. mortgages. house republicans released their fix it proposal for overhauling the fha. there was good news in the housing market today, though, home builders rose by 6 points this month. the highest in 7.5 years. builders are feeling confident about new home sales, despite the mortgage interest rates. those rates and a shrinking supply of homes for sale are raising concerns that we may not have learned from the mistakes of the past. as diana olick reports, there are new worries about a housing bubble. the nation's home builders are more confident than they have been in seven years.

supplies for existing homes for sale are near record lows and reporting bids wars at home houses. home prices are up over 12% from where they were a year ago. sounds like the perfect recipe for another housing bubble or is it? >> no, we're not in another housing bubble. there is plenty of room to grow before irrational levels. >> reporter: still near record high afortbility. home prices are up but well off the peaks of the housing bubble. mortgage rates are higher but historically low. he says prices would have to rise an additional 45% or rates would have to hit 6.75% for a bubble to be possible. >> it's not out of the realm of possibility a year or so from now. a lot depends how mortgage rates respond to the quantitative easing program the fed is doing and how much further appreciation we get. >> reporter: rising mortgage rates should temper the big home price spikes, among home builders. they have been jacking up prices

to offset higher costs for land, labor and materials. >> there have been pretty wide-spread reporting of price increases from the builders and normally that could tend to curve the market with the big decrease we saw in mortgage rates over the past few years. you know, that really has allowed the builder to pass those prices onto the consumer without much notice. >> reporter: the recent rise in mortgage rates took away a good chunk of purchasing power for those on the margin of homeownership, perhaps for first-time buyers but not the majority. a big issue is negative equity. moveup myers stuck in place because they owe more than it's worth. they are potentially opening the doors to more supply and more home sales. for "nightly business report," i'm diana olick in washington. still ahead, shopping without leaving your couch. believe it or not, you can buy a product you see on television and all you need is your remote

control. we'll explain. but first, a look at how the international market finished today. you don't need a weather man to tell you how hot it is. a year after the worst midwest drought in half a century, forecasters are calling for another dry and hot summer and that prediction for increased heat and reduced rainfall sent corn and soybean prices soaring today. >> this week's heat wave with the triple digit temperatures is affecting millions of americans and it's changing the daily retune for everyone. in any heat wave, some businesses come out on the losing end while others come outweigh ahead.

who is benefitting from the business of this heat? hampton pearson has the story. >> reporter: from boston to washington d.c. the hottest week of the summer has made for utility companies predicting near record air conditioning use and fuel demand from gas fired electricity but no plans for discounts on customer utility bills. ever no mistake when a heat wave hits, there are winners and losers. dining al fresco along the river or any waterfront not a high priority. ditto for those curb side food trucks. >> a lot of people don't want to go out and stand in line out a food truck, stand in the hot sun. it just not the best thing to do for them. especially when it gets with the heat index over 100 they want to stay inside. >> reporter: if you're in the ice cream or frozen yogurt business, this is your time. >> actually, i have an ice cream shop and we sell cold drinks

like smoothties and everything. >> reporter: coca-cola blamed cool weather worldwide for less consumption of it's soft drinks and shrinking products. nothing like a heat wave to boost the bottom line. >> a correlation between weather and coke's volume. if -- coke's job is to market people when they are thirsty. >> reporter: as shoppers beat the heat at the mall, retailers are recovering from a coldspring and record rainfall in june. heat waves however, do end eventually. for "nightly business report" i'm hampton pearson in washington. a downgrade for ford in tonight's market focus. goldman sachs took ford off the list pointing to a lack of near term catalyst to drive gains. investors agree ford dropped more than 3% closing at 16. 60

on heavy volume. growth in merchandise and volumes more than offset declines in cole shipments. csx expects profit growth of 10 to 15% through 2015. shares of csx had risen more than 1% in anticipation of that report and popped in after hours trade. csx closed at $24.64. a shot in the arm for investors in hca holdings. this hospital operator issued a strong preview of the second quarter based on increased hospital admissions. it reports results on august 1st. hca's news spread to other operators. hca gained more than 4.5% in heavy trading today closing at $38.86 and tenant up 3.5%. take over talk boosted onyx pharmacy today. they expect $130 a share.

onyx rejected a $120 offer two weeks ago. they are among firms interested in buying onyx. shares rose more than 1% and have surged 50% in the past two weeks. profits at discount broker charles swab dropped 7%. they reporter new brock cage accounts. the stock fell more than 3% on heavy volume to close at $21 a share but it's up 45% year to date. reports say dell's long expected shareholder vote on the future of that company slateed to take place on thursday may be delayed. founder michael dell along with private equity backers silver lake partners is looking to take that computer maker private for $24.4 billion but some of dell's biggest shareholders like t

t. rowe price said it under values the company. they said they should consider a competing investor that offers more money per share and keep part of the company publicly traded. smart phone wars are heating up. at&t will let customers upgrade their phones every year. this is instead of the customary two years, as long as they pay full prices in monthly installments with no interest. it's called the at&t next plan. it comes on the heels of a similar large option from a smaller rival, t-mobile that allows customers to upgrade every six months. if you think you need a smart phone or tablet or desktop computer to do shopping, you're wrong now. shop tv is here allowing viewers who own certain smart tv sets to click on a product that they see in a show and buy it. julia joins us with me on who is

using it, making money from it. >> reporter: bill, that's right. up until now if you wanted to buy products on a tv show you had to find it online or buy it in a store. with your remote control you can buy home furnishings or clothing from a tv show on your tv set thanks to a new application unveiled today. a new app for internet connected tvs called shop tv aims to transform the way you shop. here is how it works, viewers launch the app which is preinstalled in 2013 and 2013 samsung smart tvs so when they are watching, say, nbc's the biggest loser a banner pops up to indicate a product is for sale. clicking a button allows them to buy items including clothing or home furnishings from the store. they pay with paypal or a credit card and shop tv shares the revenue with the tv network. >> this is unprecedented in the last decade in terms of consumers actually using their televisions in their living rooms as truly connected

experiences. smartup deliver which as created specializes by e commerce. >> we've been a behind the scenes player where we've been powering commerce on behalf of networks and studios in 2005. we'll bring it to the main stream. >> reporter: ann lists are skeptical about tv commerce. home shopping networks launched pay by remote and it's never really taken off. plus shop tv faces a range of rivals. american express announced the partnerships with fox and nbc universal last year allowing consumers to buy items like fox's new girl. >> you have amazon, ebay, all of those companies tend to have apps of their own. so you're competing with them who are huge in the space. >> reporter: shop tv boosts but doesn't require a device other than the remote control but some say that's not an advantage.

>> they are not accustomed to shopping with the particular remote and so i think they would probably need to be some sort of huge market and push. >> reporter: shop tv does have the advantage of scale offering several hundred thousand products from 500 top shows. thanks to partnerships with 55 networks, encolluincluding, bra fox and more. right now apple works with products in tv shows but the company plans kpo to expand to tv commercials, as well. so soon young can click the remote control to buy a product you see in an ad. bill? >> maybe they like my tie, i don't know. how big can this market come? what is the prediction? >> it's hard to tell because it doesn't exist yet, but one analyst compared it to the home shopping network saying the qvc and home shopping network is a

8.5 billion-dollar business. it becomes larger to look at the infomercial business but for now looking at billions of dollars if people do indeed want to buy things with their remote control. >> i'm definitely going to buy things, julia, with my remote control. i am wondering what kinds of products can people buy, mostly clothing, tvs, gadgets? what kinds of stuff? >> clothing, as you can imagine. you see a shirt you like, you want to buy that shirt that the tv star is wearing. so clothing, accessories, it's home furnishings but also things like beauty products. if you see someone applying a certain blush in the booth room in a scene in the tv show, that might be up for sale but coordinated by the app and the tv network to figure out which products they can go ahead and sell. >> it's an exciting new trend. thanks a lot, julia. and coming up, it's not easy being an electronic's retailer in this day in age w. big boxed retailers and amazon dominating

the scene but radioshack is fighting back with a new strategy. we look if it's enough to stay competitive. first, let's check how commodities, pressureries and currencies faired today. the senate confirmed richard cordray as the protection burro by a vote of 66-34. he was held up by republican of station for more than a year as he served as acting director. mixed bag for chrysler. it's dodge ram 1500 pickup with the top pick for full-sized trucks that beat out the tundra and ford's f 150, which is the

top selling in the u.s. that comes the same day the auto ever ser maker is recalling 46,000 from model years 2012 and 2013 to fix a faulty electronic stability control system that may not turn on when the engine starts. when you can buy just about any kind of electronic gadget or accessory online it's getting harder and harder for a small space retailer like radioshack to stay competitive so they are changing things up and trying to lure back customers lost to big box stores and internet. will it work? >> reporter: any company that's been around for more than 90 years needs a little updating now and then but with the proliferation of big boxed retailers like walmart and best buy and amazon, some think it's too late for radioshack. since 199 9 radioshack has fallen from a company valued at

$15 billion to just over $300 million today. ceo acre knowledges radioshack has work to do to bring back a customer lost to composition. >> i was brought in to transform this business and the team i'm putting in place is focused on rebuilding. we're in a great space relative to technology and a brand that really in the past has kind of lost it's way, and our job is to really reinvigorate the brand and build confidence and bring back the lost generation of folks. >> reporter: this store is the new concept location. it's brighter and less clutters and says the ones that are available are more relevant to today's shopper. >> i was looking for an item i couldn't find in best buy and i just found i'm very concerned. i just purchased it. >> i find it set up more easily for the average customer who is

not technology savvy as myself. >> we like the new prototype. it's much more exciting, inviting. they are deemphasizing mobile phones and emphasizing different brands they have not store like samsung and apple, but at the end of the day i'm not sure it's enough. >> reporter: one of the strengths is 43 hundred stores around the country, there is one in every neighborhood. the presence alone isn't enough to win back shoppers, who have moved on. for "nightly business report," i'm courtney regan in new york city. more than half a million checks in the mail today headed for people who bought so-called toning shoes from sketchers usa hoping to lose weight and strength and tone their lower body. the trouble is they didn't work that way. the sneaker maker called it deceptive advertising. $40 million in payouts are being sent to unhappy customers.

a study gives credence to the phrase use it or lose it. the french government's health research agency says retiring at a later age reduces the chances of getting alzheimer's or dementia. for each additional year you keep working, the risk goes down more than 3%. finally tonight, u.s. news and world report is out with the annual list of the nation's best hospitals. at number three the mayo clinic in minnesota. in second place, last year's winner, boston's mass general and one year after being knocked out of the top stop, baltimore's john hopkins hospital is number one again, but, you know, i don't think you can go wrong with any of those. >> you're right, bill. for more, log on nbr.com. that's it for us, "nightly business report" for this july -- what is it? >> the 16th. >> i'm susie gharib, thanks for

watching. >> i'm bill griffith have a good night. sailing through the heart of historic cities and land scales on a river you get close to iconic landmarks, local life, cultural crew sures. viking cruises, exploring the world in comfort.

>> the following kqed production was produced in high definition. >> this time on spark -- the san francisco ballet turns 75, and celebrates with an ambitious festival of world premiere dances by cutting edge choreographers. >> go! >> narrator: behind the scenes with mark morris, margaret jenkins, christopher wheeldon, and their composers and designers as they create the ballets of the future. >> stop! >> san francisco ballet has very intelligently and, i think, correctly commissioned new dances to underscore the fact that dance is a living art. >> nest on "spark." >> major support for spark is provided by -- the james irvine foundation, expanding opportunity for the people of california the william and gretchen kimball fund. diane b. wilsey.