this is "nightly business report" with tyler mathisen and susie gharib. radio silence, a wall street analyst issues a dire warning for a familiar retail name, radio shack. pay off a very different story for apple. shares rebound as investors try to determine whether its new mobile payment systems will change the way consumers spend and business gets done. and oil slick, why it is a bad time to be in energy bulls. good evening, welcome and thank you for joining us. it was a tale of two companies on wall street today. one, an innovator who saw its stock decline taking the tech

side for a walk, the other, the beating down retailer that one analyst predicts may not be around much very more. we give with apple, the star-filled launch with two new iphones, the first ever and the new mobile smart pay took hold yesterday. but shares went 3% higher, traders say today they took little notice of the larger and updated smartphones and the watch, instead they focused on apple pay. that is the all-new mobile apple pay, the enormous power it may give apple in the trillion dollar consumer marketplace. now apple already known as a disrupter, shaking up the computer industry. but now with apple taking on the slow to catch on mobile payments hoping to succeed where others have failed in taking your wallet off your hip and putting

it on your phone. mary thompson has more. >> reporter: a new iphone and a new business for apple. >> our vision is to replace this. >> reporter: ceo tim cook aiming to replace your wallet with apple pay, a mobile wallet that lets iphone 6 users tap or pay and go as they tap a wave with their phone. the technology made by nearfield communications or nfc, the transaction made more secure because it is not your credit card information stored on the phone. it is a scrambled set of numbers representing your data called a token. master card, along with visa, american express and a number of banks well partner with apple, they expect to recover the fees through higher transaction volumes. google wallet has been around

for a couple of years, but resistance from retailers, among other things, slowed its adoption. so apple brought retailers on board, partnering with macy's and others who will accept apple pay, and they say it will cut down on fraud. >> in the end, the retailers are still responsible for anything that happens at their site. but because apple is turning the credit cards into tokens, there is much less risk that anyone can breach a retailer and get a credit card from them. >> reporter: still, only a fraction of the u.s. stores will accept apple pay for now. analysts see that number growing quickly thanks to the new roll out of point of sales systems that will accept the nfc transactions, as well as consumers broader adoption of the payment. >> get used to it, start using the platform to provide offers, that will then be great for pay pal and google wallet because

they will be able to add more customers themselves. >> meaning apple could pay off for their rivals, as well. for "nightly business report," i'm mary thompson. on the flip side of apple today, the troubled retailer radio shack, shares of the troubled chain fell as much as 13% at one point after an analyst set his price target on the stock to zero and said a bankruptcy filing is close. so how close is the chain to packing it in and can they turn the chain around? morgan brennan reports. >> reporter: radio shack is a retail icon, but for some it is a relic. >> it is not my go-to place. >> more than one analyst sees stocks heading to zero, and others are wary as they lost almost $100 million just earlier

this year, while same store sales fell about 14%. >> everybody knew that radio shack was struggling, that was no surprise, but the magnitude of the losses was shocking, quite frankly, i don't know if the fat lady is singing but she is definitely warming up. i don't think that radio shack has added the liquidity to make it to 2015. >> it is hurting as much if not more than many of them. in the glory days radio shack was there for people who liked to build things, hobbyists, or if your computer needed a new battery. now consumers are turning elsewhere, buying on line or getting new electronics elsewhere. it is part of the attempt at a turn around, and it has not been enough to stave off the dramatic sales slump. >> there was a radio shack

within a five-minute drive of much of the u.s. population, but now there is much more competition and nothing is more convenient than the internet. >> radio shack is also trying to move past an image that screamed the '80s. the stores are doing okay but it is not likely the store can afford to renovate or open many of them. in fact it has been closing certain locations. what to do? at least one shopper has a couple of ideas. >> i think that radio shack could expand in terms of its services and showing people how to use their devices more intelligently. i think they cans show them how to build their web pages and things like that. i think it is a terrific store. and it should keep going. >> for now, though, the clock seems to be ticking, i'm morgan brennan in new york city. and now to accuse the call on radio shack, the director of research. good to see you again, michael. >> thank you. >> i like radio shack, i was just telling susie i like to go

there because there is nobody there, it is always empty and you can get out in heir. do you think the store can make it even into the christmas holiday season give the liquidity position? >> i think without a capital infusion, they can't. i don't think they have enough cash to buy inventory for the holidays. i don't think that venders will advance them inventory without you know, cash payment. and their cash balance is below $100 million. as the reporter said they're losing about $100 million a quarter. so they will be out of cash before christmas, i will say if they don't get the capital infusion before november 1st they don't keep the doors open. so money is coming in somehow. my call is the money will come from a very savvy creditor who will insist on becoming senior to all existing forces. that will happen if they allow the company to renegotiate

existing leases and put the company in better financial health if they declare bankruptcy first. >> you have to wonder why anybody would want to put good money after bad. i guess that is somebody who has some kind of vision. but absent that, is it possible? i mean, what is next for radio shack? will somebody else buy it? >> you know, i think that it made a lot of sense to best buy, handful of years ago, best buy, that is why it was making a big push to stand-alone radio stores. they have about the right size and retail footprint for that. nobody is really looking for small sized stores. you have game shop with five or 6,000 small stores, they are slowly converting to an at&t third party carrier retailer. i don't see anybody stepping up and buying small format stores. if somebody comes in and declares bankruptcy somebody may come in and buy a piece of it.

>> when you and i last spoke we were talking about best buy and really the disruption of this particular space. i don't know how many stores radio shack has right now. but what might be ideal for them in terms of a share store count if in fact somebody comes in and does take them on and try to operate them. >> they probably with thrive with about half as many stores. so 2 to 3,000 stores would probably make sense. i think they need to carry a broader array of products and i think they need capital to bring people back in the store. so their problem is not really what they offer in the store. their problem is driving traffic there. they don't have the money to market, so even though they're actually doing a great job of reformatting the stores they are just not able to make anybody aware of it. that is killing them. >> and michael, in a few words what is the radio shack lesson

here, you have to be a big player on the internet, on line? i mean what is the story? >> the big connection is the internet, it is easier to buy things on the internet than it is to go out to a store for a convenience item. radio shack is a convenience store. they're doomed because of that, i think. >> on that note we end it. on wall street today stocks were able to turn around early losses thanks to a rally in the apple shares we told you about. and enthusiasm for apple helped lift the entire tech sector. the dow rose 54 points, the nasdaq added 34, the s&p up 7 points, energy was a big decliner after the government report showed u.s. oil supplies were higher than forecast last week. and crude prices fell to an eight-month low. west text intermediate fell to $157 a barrel, and bob pisani

takes a look at the drop in oil prices and what is next for the energy sector. >> oil dropped to an eight-month low today. that is great news for consumers and it is a big help for an improving economy. you think with all the chaos in the middle east oil prices would be going up. but the opposite is happening. that is because despite the chaos the demand for oil is weak. because with the exception of the u.s. the global economy is not doing that well. and there are plenty of supplies of oil. the u.s. has become a big additional supplier. so we have lower demand and plentiful supplies. little wonder that energy stocks are lagging the stock market. the major energy, the xle is sitting at a four-month low. and stocks like exxon and chevron have been a major drag on the dow in the month of august. other big energy stocks like petro china were also down today

and they have been weak for days. there is a larger problem for energy. there is not a lot of visibility on demand growth. so if you can project how much economic growth there will be in the world if you have a certainty on what you think the global gdp will be for example, you can project a model that will be a demand for oil. but without a clear picture you're lost trying to figure out the price of oil. the president is speaking about what he will do on the isis threat in iraq and syria. what the traders want to hear is that the president will find a way to get this problem under control. it will mean more certainty for the global economy and stability is what everybody wants right now. for "nightly business report," i'm bob pisani at the new york stock exchange. and as bob reported president obama will address the nation at 9 p.m. eastern time tonight. the president is expected to outline a broad strategy to defeat the islamic militants in the middle east. how will that strategy play out in the markets and how will investors react? joining us now, mike holland,

chairman of his own money firm holland and company. company, mike, complicated situation here, what do you believe the president will say? will it have a market reaction especially tomorrow as we come close, and tomorrow is the anniversary of 9/11? >> well, susie, as bob pisani just reported the market is coming into this with a preview of thoughts about that question. and that is that there will be no surprises. unfortunately we have begun to get used to the terrorist threat over hanging us, as you said, a bunch of years ago, 9/11, was in new york that day. that was -- our wake-up call. we're living with it. it is now getting worse and we presume it will be with us for a long time. he will tell us that tonight. i believe a lot of what he says has been thought about by the markets. the stock market is not political, it was up a little

today. the stock market, susie is more worried about what is going on with mr. putin and eastern europe and in a shorter term basis what is going on with scotland and the u.k., they're coming up with a separation vote in a couple of days. the market was scared, when it looked that there was a possibility that scott land would separate from the u.k. tonight the market is not looking for surprises whatsoever. >> let's talk a little bit about the defense sector and whether in light of the president's new strategy that he will unveil tonight there could be decreased spending in the united states. and if so will it be the aerospace company? the drone makers? where? >> tyler, you put your finger on that, as the president said it will be a three-year plan and in the scheme of things it will be much more than that. all the sectors you just talked about will be longer term beneficiaries, so i think the

answer is yes, yes, and yes. >> so let me just ask, so this war could be three years or more, with that overhanging all of this, i mean, what are you as an experienced investor doing with your portfolio? are you making tweaks to it? adjusting things to allow for this kind of long-term conflict? >> that is the right question for the viewers. because i learned just coming into the business many years ago that one of the most important things about investing is to survive. you survive the fair markets and the way to do that when we hit the new highs as we are right now given all of this negative headlines, one would like to take it off the table. that is just what i'm doing myself. i still have a very full equity portfolio, but i'm taking chips off the table. and in 2008 when things were very ugly as warren buffet said that is when you buy some things. right now i'm actually pairing back, i'm not selling willie

nillie, but i'm taking some things off the table. >> thanks, mike holland with holland and company. and shelling out nearly $2 billion for a video maker. we talked a lot about apple's new gadgets, but the realize of the sci-fi shooter video destination was the biggest launch ever with stores and consumers in just one day. and another popular game,

microsoft is looking to lure more customers by buying the maker of the mine craft video game. so why are they moving into gaming and will the strategy work? josh lipton has more. >> you may not know this video game but your kids probably do. mine craft is a game in which players face off against monsters and it has become a global blockbuster. over 50 million companies of the game have been sold in the fast five years. and it is the number one paid app on itunes. >> it really allows players to on such a core distinct level create magnificent worlds to share and play around with other people. and it is the same inspiration and feeling you get from building blocks as a child. >> gamers are not the only ones who like mine craft. microsoft is also a fan. they report that the software giant could be buying the swedish maker of mine craft for

$2.5 billion. analysts who cover microsoft say the deal makes sense. >> microsoft needs at this point to get consumers on its mobile platform. mine craft could be key to that, especially with new key acquisition and the launch we expect next month. there was some waiver, now this really cements the strategy. >> the deal would be surprising in some ways given the history of friction between mojang and microsoft, the co-founder once criticized microsoft on twitter for ruining the pc. it is not all negative. in another tweet he did call the company big and scary but also said he enjoyed working with them. analysts say microsoft is working to attract a younger demographic. it is hard to imagine a better way to accomplish to goal than to buy a wildly popular and profitable video game company. josh lipton, "nightly business

report," silicon valley. and an upbeat quarterly report from lands end sends s s stojs resurging, second quarter profits jumped thanks to sales. the ceo said that the company continues to show profits even in a challenging environment, shares went up to $40.20. and we have an update on the dollar war saga, dollar general has gone hostile, taking its offer to shareholders. shares of both companies were up a fraction. and shares of nps pharmaceuticals rose sharply after a preliminary review by the fda showed good results in the company's hormone replacement therapy clinical trials. this report comes just days ahead of a meeting of fda advisers who will discuss

whether the drug should be approved. the stocks went up to $32.24. google buying lift labs as a research unit as part of the push into biotech. the start-up makes a high tech spoon, among other things, helping people with certain neurological disorders to eat. shares of google down a little to $591 even. the network jds splitting into two separate companies, looking to expand in the data communications market and strengthen its network business. it expects the division to be finalized in 2013. shares higher in after-hour tradings as you see on the spike during the regular trading. and dividend hike to tell you about, the owner of taco bell and pizza hut upping its pay out to $41 a share, that

will buy a little extra sauce, payable to shareholders. after hours shares fell, but during trading stock was up slightly to $72.59. and investors lining up for the ecommerce giant alibaba, just two days after the deal was announced and just a day into the road show by the company executives to sign up investors all over the world, alibaba has already received enough orders to cover the entire $22 billion stock offering. it is expected to be the biggest ipo ever. and coming up, trouble in toyland, what some retailers are doing in early september to make sure they are rewarded in december during the holiday season.

detroit's federal bankruptcy trial is on hold at least until monday after city officials reached a major deal with one of its top creditors, holdout bond street holder sincora is holding its opposition, the so-called grand bargain that softens pension cuts to retirees and preserves the artwork by the way at the detroit institute of art. they called the proposal unworkable. another tough blow for the garden state, ratings cut new jersey's credit rating another notch, the state's eighth consecutive downgrading in regard to the pension funds. that makes new jersey the second lowest rated state behind illinois. christmas still more than 100 days away. the nation's biggest toy

retailers are not playing around. they're already putting out the hot toy list as toy makers gear up for what they hope will be a toy-making season. are toys any match for the electronic gadgets that every kid seems to want. and what are the year's hottest toys? courtney reagan takes a look. >> reporter: kids across the country have hardly sharpened pencils for back-to-school. and while there are still 105 days until christmas retailers are already duking it out for it hit holiday toys. today, walmart unveiled hot holiday toy lists. k-mart is promoting their layaway plan with a tongue in cheek ad. >> just to be clear this is not a christmas commercial. >> but there has been trouble in toyland for years, there has not been a must-have toy, and with the proliferation of smartphones

and tablets kids are not as interested in toys. sluggish sales for barbie were slow, the toy-maker's stock has been at a two-year low. the brand that is include playdoh saw sales decrease. the revenue that includes digital gaming grew 35%. npd group says that mobile app games are the most requested play products for kids age two to 12. parents in times square say they expect apple will top their children's wish list this season. >> it is not exactly a toy but i believe it will be on the list. >> tangible toys are not really as much of a thing for her as much as electronic toys. >> making it difficult to hit a home run. >> they will make it harder to have additional plug-ins,

movies, tvs, to get them excited about the games through all the angles of exposure. and at the end of the day there are kids who still want to play with dolls and toy cars. all of those experiences won't be replaced with mobile devices. >> toys that are keeping them entertained are creative and technical. better yet, a combination of the three. retailers make sure their assortments are aligned with the physical. it could be a lego kit with an app, or a barbie and a big screen tv to act as an app for the famous doll. while retailers continue to compete with each other and for consumer dollars by pushing prices lower and lower it may not be enough to get kids off the touch screens the playing make-believe. for "nightly business report," i'm courtney reagan. and finally tonight, the park city, utah ski season is a

go this winter. an update on a story we told you about a few weeks back where a company that owns the bottom of the mountain resort where all the ski lifts are located would not allow access to the top of the mountain. but now after a long dispute the owner of the bottom has agreed to pay a $17 million bond to maintain a to the top. at least for the upcoming season. you have to sell a lot of ski lift tickets but i don't think they should have a problem. no, that will be nice out there. >> that is "nightly business report," i'm susie gharib, thank you for joining us. and i'm tyler mathisen, thank you, have a great evening. we'll see you back here tomorrow night.

tonight on quest: some people oppose nuclear energy for reasons of cost and safety. but others say that we can't reduce greenhouse gas emissions if nuclear isn't part of the equation. quest meets an engineer who's striving to make nuclear energy safer. and -- every year, more than 300 species of birds migrate through the bay area along the pacific flyway. what can shifts in the birds flight paths tell us about our environment? support for quest is provided by the s. d. bechtel, jr. foundation -- the david b. gold foundation -- the dirk and charle