. >> this is "nightly business report," brought to you in part by the street.com featuring stephanie link who shares her investment strategy and market insights, the multi-million dollar portfolio she mansion with jim cramer. learn more at the street.com/nbr. three-year low oil prices head lower into bear markets territory as one of opec's most influential members declared a price war on u.s. thrillers. who wins? who loses? which industries will benefit, which will stumble? >> few faces? if voters flip the senate to other faces? what does that mean to other

issues important to business? all that and more tonight for the "nightly business report." >> good evening, everyone, oil was the big news on wall street today with another sharp drop in prices. they touched $75 a barrel. brent crude the international benchmark fell to a four-year low. the sell-off was sparked by saudi arabia's unexpected decision to cut what it charges the u.s. for crude. they're now worried that could open the way for more prices to climb as oil production is at an all time high, west texas crude was down $1.59 a barrel close about $77. jackie deangelis has more on the slide in oil prices as traders wonder how low can it bo? >> reporter: a blood bath in the crude pit. traders saying saudi arabia's price cuts yesterday were the

trigger and the sec nickal seller. >> opec was once again lowering prices, not cutting production. the dollar started to strengthen again. we traded through that $79 area. it looks like good resistance now. if next report would be the 74, 95 number. >> all eyes are on opec's next meeting november 27th. traders were thinking we could see supplies cut from the cartel. >> that is the latest move as the most influential member indicates this could be a price war. >> they want to put small of the smallest producers, the ones at higher capital cost to produce crude oil. they want to put them out of business and show that by reducing prices to the u.s. >> the united arab emirates oil minster recently said there is no need to panic on opec pricing. they have been local in expressing concerns. could their influence be enough to sway the cartel? >> the middle eastern powers have a lot of powers still t. reason they do, because the

crude oil they produce is cheap. therefore, they have a lot of leeway on what they want to do with the price. if they're producing at $30 a barrel, they can sent it down and still scratch or make a little money. if you are a latin american producer and you have a higher production cost, you can't go down as far. >> everywhere you look oil bombs are turning into bears. traders looking for oil to drop to $75 is saying 70 and some to more downside from there. the good fuse oil slide has had a major impact on retail gas prices, hitting a 49 month low with the national average under $3, now it's $2.97 according to aaa. we haven't seen this since christmas of 2010. christmas may have come early but u.s. oil producers could be getting cold. for the "nightly business report," i'm jackie deangelis. >> the decline is having an impact on dozens of stock and market sectors. some shares strained along with the price of oil, others gained.

morgan brennan takes a look at the winners and the losers. >> oil dropped down over 40% in the past three months. elts fuelling a sell-off with the commoditiy. as investors worry prices will crimp u.s. production. >> i think we have seen a response to lower oil prices, i think people are a little in shock. they want to see how much lower it can go. >> shale drillers, including marathon oil could be impacted the most, especially if crude falls to $70 bucks a barrel. the expiration takes a lot of up front capital. oil fields services companies like halliburton and queus with production could feel the effects and since the slow down in output could mean a slow down if demand for drilling materials, investors are keeping an eye on companies like high fresh partners which mind the sand critical to the fracking process. some experts think all of this has presented a buying

opportunity. >> right now i'd be stepping into the integrated oil and gas numbers, so companies,oid i'd also be looking hard at some of the refining companies. >> reporter: some industries are already benefiting. airlines have soared. shipping giants ups and fedex could get a lift from falling doze el prices, just as they enter the busy holiday season companies like csx and union pacific stand to gain from lower fuel costs. the crude by rail business could modestly cut into profits next 84. okay, there is a consumer. gasoline prices are falling below $3 and it could translate into higher sales for retailers, restaurants and leisure companies. but all of this, winners and losers, depends not just on how low crude goes, but how long it stays there.

for "nightly business report," i'm morgan brennan. >> we are joined now with more analysis on the impact of lower oil prices, the chief economist, hi, bob, nice to have you with us. >> it's nice to be here. >> you heard from all of our reports, low oil prices are great for consumers in needy industries like airlines, but in the end, is there a point at which they get so low, maybe it's $70, maybe it's $60, where it has a negative impact on the world economy? what are your thoughts? >> i think for the most part, low oil prices are good, consumers get a break. we don't produce all of our oil a. lot of the damage is done to producers occurs on the imports side, not on the domestics side. you also have threats to other energy. i think probably below $50 barrel you start to do more

disruptive things on the producer's side. it's not getting to that region, getting prices down, it's creating a per spgs they will stay down. >> some of the ones that are weaker and levered up with debt, let me get to the broader question of if the lowering price of oil puts money in consumer's pockets and they spend it, what does that do to u.s. economic growth? does it add .3 of a percent or something more? >> i think we are on the order of .3 of growth in the fourth quarter. it's a nice positive for gdp him it could be a nice positive for retailer products and consumer confidence is moving up. i think that rise to consumer confidence has been partly in the back of these low energy prices. i think that's good news. you get the multiplyer effect from that. they're modest, they're good. >> any negatives to be concerned about there as consumers spend

more? does that create inflationary problems or deflationary problems with lower prices everywhere you look? >> yeah, that's a great question. i think you create some distress and opposite effects here. first of all the lower energy prices creates a problem for the ecb and the feds. the feds has an inflation target. they told us at the very last meeting the decline is temporary. i don't know what they think temporary is. it looks like it's severe him it means it will go on some time wind chill relikely to see the fed which missed if inflation for 29 months in a row. they missed it a couple months in the future and probably even more. that will put them under pressure to do more. so mostically it puts money in people's pockets. they are able to spend money on non-oil prices. but the main effect, of course, is inflation is lower. they have to deal with more inflationary consequences. >> the fed may have missed its

inflation target for 29 months in a row, i would think most consumer would cheer that. they miss on the low side. the number versus come in lower than they wanted. >> that feels good to most people. >> i don't think it does, one of the lowest once, on the last jobs report, wages rose last month by zero. so that low inflation. people have a lot of nominal obligations they have to pay for. a little inflation is good. it makes the house papers go up the burden of your mortgage payments last. everybody recognizes inflation. you got those nominal liabilities. so, you know, this undershooting is one of the things that helps keep the economy under a lot of strain and the feds want to get the inflation back. from a monetary palmettos the old rule is inflation overshooting is good. but we've come to appreciate the risk of deflation and the problems that low inflation creates for this economy. >> all right a lot of interesting pushes and pulls.

it's always a pleasure touk talking with you. at the end of the day, mixed and a little change despite oil prices, a lower growth for the european union. the u.s. trade deficit was wider in september. it expanded to $43 billion as u.s. exports slowed down. here's how the markets looked at the closing bell t. dow up 17 points t. nasdaq down 15 and the s&p fell apart. well, it is election day and there is a lot at stake, 36 seats in the senate up tore grabs. the race for the governor's mansion in 36 states and all 435 seats in the house after billion have been spent advertising. millions of americans are casting their boats. john harwood is with us now to talk about what today's mid-term elections mean for your money.

so, john, let's just say the republicans do take control of the senate. if that were to happen, what does this mean for fiscal policy? will there be another budget showdown? >> i think republicans have decide a government shut down crisis or things bad for their party in future elections, but i do think it will make a change in the approach the senate takes to issues like potentially tax reform. that's not likely to happen in the next couple years. it makes trade deals more likely. the trade deals they are trading with specific partners. as well as one in europe. it makes the possibility the keystone pipelines could, in fact, go through, which has been held up in part because democrats are uneasy. >> let's talk about political issues that could be acted. it's one immigration, the other is obamacare. >> the senate has passed the

bipartisan immigration. so long as the house appears poised to block that measure. it's hard to see what, in fact, could get through the senate that would change the equation. the president is poised to take unilateral action and liamize some millions of people, maybe not all 11 million here and on the e, car bonne regulation, that energy initiative, the president is moving forward with this regulation. the question is going to be whether the republican senate can stop them. >> you mentioned the e. there have been questions about the agency like the environmental agency, like the consumer financial protection borough. down there is any changes? there are those, you know, set for life? >> no, i do think there will be a budget pressure on parts that lub republicans don't like. mish mcconnell said he will use spending bills to try to squeeze the administration. you can bet the e is one he singled out. he's accusing the administration

on a war on comb. other states will try it as well. >> thanks, so much, john harwood reporting on today's election. >> straight ahead the industry undergoes a massive transformation. can it keep pace with changing consumer habits without cannibalizing core businesses?

. >> shares of dish network moved a little lower on the dial today. the nation's no. 2 satellite tv provider missed earnings estimate recording a sharp drop in profits. revenue also fell as it lost another 12,000 subscribers and broadband is slow. its outlook isn't better. dish cut the revenue forecast for the full year. after the bell, earnings from 21st century fox, the media empire is run in part by billion ayre rupert murdock. they boat wall street estimates by three full pennies. revenues more than $1.5 billion more than forecast, mostly thanks to higher sales than the cable television properties and a stronger box office take for films and "dawn of planet of the apes." with profits up 10%, shares were

initially higher in after hours trading. besides fox, this is a big week for media earnings. those results come as the media giants grap welviewing habits and the rise of streaming video services as tv watchers have fixed out how to cut the table cord. >> reporter: one thing for sure, consumers are changing how they watch cable tv. >> i picked another app. >> most of my movie and tv shows intake is all online to be honest from my computer. >> i watch more netflix on my phone than my tv. i don't even turn on my tv anymore. >> media giants are skirmishing to keep up with that demand. >> we see the companies struggle with the legacy business model, predicated on views and trying to straddle the divide between the legacy model and adapting to the new world. this week's media earnings comes on the heels of cbs and hbo announcing new services that could upend the media biz,

direct streaming video, for people who don't pay a cable tv bill. discovery ceo says he's not concerned about consumers being able to get into channels rather than unbundle. >> the unbundling, i don't see it happening. i think if it does move in that direction over time, we own all of our content, with i is an advantage. >> he may not be worried for now. discovery shares fell on weak advertising growth. >> the street is quite concerned with the near term, the platforms continue to gain traction with consumers and affects the ratings for these companies which is an advertising growth rate. >> we will see what the companies say tomorrow about how they plan to create new revenue without cannibalizing tear core business. time inc. corporated beat estimates with shares on that is where we begin.

profit and revenue exceeded forecasts. the nation's dropts in print revenue dropped the company to drop it for the second time. there is time incorporated dropping almost 7 is%. michael kors dealt with a similar reaction from investors. its earnings jump continued to see strength. but the company known for its handbags and watch itself is forecasting that its sales and profits for the holiday quarter will be below consensus shares. off about 8%. in ali baba's first report since a huge trading debut, the chinese internet company reported the profit fell largely because the stock awards employees before its ipo. the revenue jumped and its mobile services did continue to grow. the executive chairman explained how he plans to continue that growth. .

>> we're going to be focused, meaning that we are bringing a lot of merchants from outside of china to sell platforms. we will focus on mobile because the user behavior is rapidly shifting to buying on mobile devices. >> shares of ali baba trading under the ticker symbol baba up $6 to $106.07. priceline is warning, the forecast was well below expectations. shares did fall to $100. i didn't even read that wry right. cvs saw its ref now rise on strength in its pharmacy business. that offset a decline in front of the store sales since the company stopped selling cigarettes last month. its full quarter projections tell the consensus.

they were off the traction. they offered the ethanol business to remain strong for the year and that's despite sliding energy prices. profits rose and even though revenues fell short of estimates, shares were up almost 5 percent to $49 pin 54. fireeye lunged after the third quarter revenue missed. it reported a loss smaller than expected but for the current can the quarter, it's revenue forecast came in below analyst's forecasts. shares were way down. during the regular session, the stock was up 1.5% to 34.25. blizzard's results were better tan expected on strong sales and an increase in world of war craft subscribers. the video games make the holiday outlook disappointing. after the bell, shares were up initially.

during the regular trading sex. shares were off by 2% to 1995. it may not sound sexy. the payment is attracting a lot of tech satisfiy entrepreneurs looking to get a billion dollars moved globally every day, via credit cards, mobile phones, on computers, by making the process of paying faster, cheaper, simpleer. mary thompson has more on the future of payment on the money 2020 conference. where else, vegas. >> reporter: the crowds boat volume. payments are hot, generating heat welcomed by old line firms like american express. >> i like competition. >> reporter: the competition in full force at the money 2020 conference where ms ceo shared light on how the company stays relevant in a rapidly changing space. >> if you don't innovate, you die. you have to constantly innovate. you have to constantly challenge

the status quo. >> reporter: the status quo is cash. still used in over 80% of transactions, firms including visa are trying to change. >> there is still an enormous amount of cash in the world. nobody likes to use cash. nobody likes to carry it or use it. >> reporter: the companies here know a faster safer alternative to cash will be key to any dependency. of course, technology is helping to speed the transition. that means standards today could soon be obsolete standards like passwords. biometrics can hold the key, they say they can prevent massive hack attacks like those that hit target and home depo. how? it's not a password, but your voice the software uses to validate the user. >> please complete my transaction. >> meaning it won't process the payment until you, only you say so. >> if i get the password, no

matter how secure, i will consider front door. >> that is the issue. when you are at a biometric, are you attaching control to a human. >> gift cards are widely a substitute. though the online gift cards for gifts that the future lies in their global reach. >> i think we will see more things, groceries home. >> at the heart of the future payments, though, a consumer dropping too many local purchases at checkout we solved this by covering the purchase and billing the consumer later. combineing speed to the market next year. >> it will be a one buying for everything. >> reporter: bringing consumers one step closer to a future where cash may flo longer be king. for "nightly business report," i'm mary thompson in vegas.

coming up, want to avoid your flight early? that will cost you. food, get out your wal let. a carry-on bag? you get the idea him we are tallying up the extra fees to find out hoich you will be paying when flying. that story is next . october turned out to be the worst month on record for casino

revenues. that's because the former portugese colony now a part of china has seen a sharp drop in tourists and found itself if beijing's crosshairs in a wore on corruption. last month, gambling revenues there tumbled 23% the fifth month in a row. casino companies with big operations have been impacted. w cnn resort down, las vegas sands 4% lower, mgm off 3%. another recall from ford. a total of 200,000 vehicles are being recalled, steering mechanism, gas leaks and stalling. the largest recall affects 135,000 brand-new f-150 pickups with heat weight sensors, and finally, if you have been on a plane lately, you know the fees

for extra leg room and to check a bag, is getting higher. a few study shows just how much carriers rake in from all those fees. airlines are expected to collect nearly $50 billion world wide from ancillary pieces, that's up 17% from last year and they average about 15 bucks a person on every single flight. we asked travelers about how they feel being charged extra to fly. >> an extra suitcase is so much money today. >> some of the fees may be ab issuetant. >> it increases all the aggravation of travel. >> i'm paying for my dog $125 and for -- >> you have to save, otherwise will you not be there. >> well, combine these higher fees with lower jet fuel prices and you can see why the airlines are having one of their most

profitable years ever. >> you add $400 to a tick. you think you have a cheap ticket. that's the "noticely business report" for tonight. thanks so much for watching. >> have a great evening, everybody. whole see you back here, we hope, tomorrow night.

>> the following kqed production was produced in high definition. >> the day a young carlos baron met pablo neruda, his life changed. >> carlos baron: it's a live thing that we're playing with. it's not just a historical thing in the past. >> now he returns to his chilean homeland with a play, a troupe, and a vision for what theatre can be. and here in yosemite valley julia parker preserves a tradition of her native american ancestors. >> julia parker: you want to touch the basket? you can touch a basket. how can you tell a story that most people coming into the valley are not really aware of? >> and josephine taylor in ink. this time on spark. [ ♪music ]