testimony. tyler mathisen. this is "nightly business report." with tyler mathisen and sue herara. >> nervous markets, stocks fell when a security threat canceled a soccer match in germany as authorities continue to hunt for the most wanted men in europe. >> don't count retail out yet. sales surprised at both walmart and home depot two of the biggest and influential brands in the industry. >> and capital fight. will the next budget showdown focus on america's plan for syrian refugees? all that and more tonight on "nightly business report" for tuesday, november 17th. good evening, everyone. and welcome. the markets on edge. stocks gave up most of their gains, the dow jones industrial average wiping out a triple digit rise. after news that a soccer match between germany and the

netherlands had been cancel the less than two hours before kickoff. the reason? what german officials called "concrete evidence" of a plan to detonate a bomb in the stadium. chancellor angela merkel and other german officials were to attend the game in hanover germany but had not yet arrived. shortly before u.s. markets closed for the day, officials said no explosive device had been found in the stadium. some market watcher ans say that selloff is evidence investors are nervous as money flowed into the safety of bonds. >> in paris, the hunt for suspects continues. authorities looking for one additional attacker, maybe a second as france continues a wave of strikes against the islamic state in syria with the promise of more. michelle caruso-cabrera reports tonight from paris. >> reporter: it is four days since is the attack on paris

france and salah abdel sam is still the most wanted man in europe. the 26-year-old say french police is directly connected to the attack that occurred on friday night. he rented a car found abandoned outside of one of the attack sites. one brother died and one was detained. he narrowly he vaded capture. he was stopped near the french/belgian border but police let him go. as authorities continue to search for him today, u.s. secretary of state john kerry was meeting with french president francois hollande. both vowed to do more in the fight against the islamic state, the terrorist organization that has taken responsibility for the attacks here over the weekend. while here, he also defended the united states' decision not to put u.s. troops on the ground in syria in order to fight isis. >> we need people on the ground who live there who are prepared to take back their communities. and working with us who will

kick isil out and secure their communities when they're out. >> overnight the french military doing another round of air strikes in raqqa, syria, the self-proclaimed capital of the islamic state and vladimir putin shifting russian navy assets to the mediterranean to be assist is the aircraft carrier charles de gaulle in its fight against isis a president holland will mt on tuesday was president obama and on thursday to meet with putin to get greater coordinated action against isis. >> as for the markets, stocks finished mixed. encouraging earnings report and economic news sent stocks higher early in the day but as w reported, the major averages gave up those early gains pushing the s&p into negative territory. at the close, the dow jones industrial average rose six

points to 17,489, the nasdaq was one point higher, the s&p 500 fell two points. as for oil, prices declined more than 2.5% on oversupply concerns. and with the decline in crude, aaa says the national average price for a gallon of regular gasoline is expected to drop below the $2 level by christmas. and the midwest could see prices as low as $1750 according to the oil price information service. >> shares of walmart and home depot helped lift the market early today. the troubled retail sector got positive news from the word's biggest merchant by revenue and the world's largest home improvement clan. home depot says people are willing to buy big ticket items to improve their homes. the two the were easily the top performing stocks in the blue chip dow index today with gins of at least 3.5%. courtney reagan has moreco on t results and how they delivered

in a difficult environment. >> reporter: turns out, not all retailers are disappointing investsing this earning season. consumers are still shopping and spending at home depot, walmart, marshals and home goods. continuing its streak of outperformance, home depot's third quarter results beat expectations for profit, comparable sales and it narrowed its forecast to the high end of its previous guidance. consumers continue to show willingness to spend on home improvement as the housing market strengthens but perhaps at the expense of other kinds of retail spending. > home depot is a bright spot. we've seen home improvement has performed better than other areas of retail. i tend to think and retailers like macy's more of the clothing retailershey're probably hit harder by weather. >> reporter: while walmart's u.s. ceo did say unseasonably warm weather had some negative impact on the quart, the retailer slightly outperformed

estimates for profit while upping the lower end of its full year earnings guidance. walmart also logged the fifth straight quarter of positive u.s. comparable sales growth and the fourth for positive traffic crediting solid back to school and halloween seasons. >> these are notable improvements but there's a balancing act. there's obviously a high cost to walmart achieving these traffic gains. operating income was down 9% year over year and in essence, we still have a story here that is not growing earnings and probably won't still for some time. >> reporter: despite increasing competition from more retailers entering the off price space, the t.j. maxx, marshals and home goods that they operate in, the parent company of the three brands beat the street on profit, revenue and same store sales for the third quarter leaving several analysts to forecast a strong holiday quarter for t.j. x. i'm courtney reagan for "nightly business report." >> our guest tonight is

expecting a strong holiday season and says shoppers will spend on average about $702 on gifts this year up strongly from the $767 sent a year ago. jesse tron, vice president for the sbbl council of shopping centers. nice to have you here. >> appreciate it. >> we saw the good results from walmart and t.j. maxx. however, you have to contrast those with very disappointing outlooks from macy's and some of the higher end retailers. what he leads you to believe it's going to be a strong holiday season? >> we're looking overall a little bit more long-term at the traditional november, december period and seeing that it's going to being about a 3.3% increase. that's very nice gain on top of last year's already strong results. so even though there have been some mixed earnings reports out there right now, i think for a longer view, we expect it to be a very strong and long holiday shopping season. >> how do you expect the mix between physical store shopping and online shopping to changing

if at all this season? >> probably not change too much over last year. there's a slight dip in the amount of people that want to shop at pure play online retailers and a slight increase of people spending online retailers that have a physical presence. we attribute that to stores are doing a much better job right now of the overall omni channel retail picture. >> how much of this discounting we've seen so far and some of it has been fairly aggressive, lundgren, the head of macy's saying basically he expects he is going to have to discount to move merchandise. do you agree with that? are we going to see that continue? >> it is a case by case basis with a lot of retailers. i think what you see right now is actually what is called planned promotion. that's going to be the most prevalent. and that's everything that retailers have already predetermined what they're going to set pricing at. of course, that could fluctuate

throughout the season as markets dictate but right now, we're really still solidly in that planned promotion area which is a good thing for retailers. deep discounting after the fact, post christmas and in january, that would be trouble to look out for, but right now, i think a lot of this is still planned. >> what are your members tell you, if anything, about their increased plans for security in light of the paris attacks and do any of them express concern that people might be less inclined to go and congregate in large public places, the so-called soft targets like malls? >> there's always that concern without a doubt when something like this happens, but the shopping centering industrial takes security very, very seriously. it's unfortunate lit something we've been dealing with for a very long time. so it's not anything new. you know, this seems to come up when an attack like this happens or unfortunate events like active shooter. this is a 365-day a year thought

process for these security professionals. they're always looking at ways to secure their shopping centers and it's something they take very, very seriously. >> on that note, prosecution tron, thank you very much for joining us. the international council of shopping centers. i? >> there are signs inflation may be, get this, picking up a little bit after two straight months of declines, prices do look to be firming. the labor department reported a.2% increase in its consumer price index reversing september's drop. the cpi measures what americans pay for just about everything from clothes to health care. industrial production a broad measure of everything made by american factories declined in october but manufacturing output which accounts for almost 3/4 of overall production posteds its strongest growth since july on more production of steel, cars and computers. >> home builders is feeling less confident. this according to a monthly

index. the national association of home builders says growth in the sector is pressured by the scarcity of land and workers. the chair of the federal reserve strongly opposes a bill that would reform the central bank. litter to paul ryan and minority leader nancy pelosi, janet yellen called the law a "gave mistake." she says the legislation would undermine monetary policy and expose the central bank to political pressures. the proposed law requires the fed to tie interests policy to a mathematical rule. the white house is threatening to veto the bill. >> defense stocks getting a lot of attention including names under the radar. we'll tell you about them.

u.s. senate majority leader mitch mcconnell says a moratorium is needed on the president's syrian refugee program. but senate democratic leader harry. >> rod: says he doesn't think the refugee program should be paused at this stage. and now there appears the possibility that this issue could play a role in the next government funding debate. eamon javers joins us from washington. good to see you. so the president has said that the u.s. should not slam the door on the refugees but can he keep to that position if the democrats start to the disagree with him and publicly? >> yeah, that's going to be one of the big questions we're going to watch over the next 24 hours what we've seen over the past 24 hours is as many as 30 governors of states across the country joer whelmingly republican governors have said they do not think they want syrian refugees resettled in their states. they want a pause in that program. they want to be able to an assess and look at whether or

not isis is able to infiltrate the program and then possibly move forward at some point after that. what we saw late today though was senator chuck schumer a democrat from the new york also saying he thinks he would like to see a pause in that program, as well. and that gives you the sense that maybe democrats are starting to crumble here and the support that president obama needs on capitol hill may not be there when we're sitting here talking about this tomorrow night. so we're going to have to watch that. it will be tricky for him to go forward without support of at least one party. >> what would a pause mean? >> that's the big question here. what some of the legislators have said on capitol hill and some of the governors said in the states around the country is they want to understand more about what the vetting process actually entails. there have been wild rumors throw thing around including only the u.n. is vetting these people, not the united states. u.s. and administration officials here today held a call to brief reporters on the detailers of that vetting and insisted it is elaborate

involves the fbi, homeland security department, department of defense, u.s. intelligence agencies and that anybody coming in from syria has an actual face to face meeting with the department of homeland security official who grills them on their background. they say it is a very serious vetting process and yet, republicans and other critics have said look, it's only as good as the fbi's terrorist database. obviously, in france, we saw an attack that was not anticipated, some of those people who were involved in the attacks seemed to have not been in any databases at all. that raises concerns. >> eamon, thank you very much. eamon javers in washington for us. defense stocks have gotten a lot of attention in the days since the attacks. this as western nations say they will accelerate efforts to fight terror groups. as jane wells tells us, it's not just the big names in focus but lesser known companies, as well. >> reporter: as war in iraq and afghanistan seem to wind down, defense stocks still went up.

now we see that terrorism lives on and defense stocks still keep going up. the u.s. among others are conducting air strikes in syria, raising the need for more bombs, better intelligence, and not just for us. the pentagon has approved the sale of $1.3 billion worth of over 20,000 smart bombs to saudi arabia to be replenish those used in the fight against the islamic state. bombs and systems made by raytheon, lockheed martin and boeing. the need for more intelligence is seen as a boon for the booming drone market. and more drones are also being sold to allies helping general atomics and potentially helping northrop grumman. but defense companies have had to operate in a fog of war budgetary environment. congress is still debating this year's pentagon spending plan. expect more pressure to raise spending especially in an election year. expect more spending on things

outside the defense budget in homeland security, protecting domestic sites would mean more purchases from companies which provide surveillance and intelligence. possible new business for fleer systems which specializes in border security and chemical, nuclear and bye hazard protection. and orbital atk which doesn't just make rockets but also guns and ammo. all signs that the war which has dominated the 21st century may be changing, but it's not ending. for "nightly business report," jane wells, los angeles. a $13 billion deal is where we begin tonight's market focus. the french industrial gas group announcing it will buy u.s.-based air gas. the combination will air an air liquid increase exposure to the united states and reduce dependence on europe which has seen a decline in heavy

industry. shares of air gas soared nearly 30% to $137.35. air liquid trades overseas. .ck's sporting goods slashed its outlook. it saw its profit slump in its most recent quart partially because it has too much merchandise. the company expects this holiday season to be more promotional. shares tumbled to 36.96. general electric has completed the spinoff of its consumer finance business sin crony financial following the company's share exchange which was more than three times oversubscribed. they fell a fraction to 30.32. say good-bye to mcdonald's dollar menu. the chain says it will debut a mcpick two value menu starting in january which will let customers pick two select menu items for $2. this is the latest effort by the company to stem its sales slump. shares off to 110.94. >> angie's list rejectsed a

proposal to buy it for more than a half billion dollars. the proposal undervalues its business they say. up 1% on the day, iac down more than 3%. shares of gnc and herschel life all fell sharply before federal agencies announced the results of an investigation into supplement companies. none of the companies ended up mentioned in the report. still gnc fell more than 6%, vitamin shop almost 5% lower. a dividend increase helped lift shares of laz boy. the new payout is ten cents a share made to shareholders in december. so the stay in your louisiana boy till then. this is the companies earnings in line with estimates. shares popped. the stof off a fraction finishing at $258.27. american companies issued a record $107 billion in dividends in the third quarter, a 23% rise

from the prior quart. a special payout from the kraft following its merger with heinz accounted for nearly half the increase. >> as jane wells reported a moment ago, the need for more intelligence is seen as a boon for companies that manufacture drones. and today at a conferences in san jose, more than 1500 people gathered to debate the future of the industry which goes far beyond military uses. >> reporter: drones are taking flight with consumers and companies rapidly adopting these unmanned machines. but a big concern is how to securely integrate drones into the u.s. air space where they share the skies with helicopters and airplanes. dave vos, who heads up project wing at google x, which is the company's project to make deliveries with drones, offered up a solution. >> take responsibility. i mean, a large part of what we're dealing with here is the fact that our community, our

small uav community hasn't taken enough responsibility to ensure that we're all educating each other as to staying within the rules. >>. >> reporter: but regulators aren't just relying on the industry. they're proposing their own new rules. the faa, for instance, has proposed limiting the vehicles to flying during daytime hours, staying below 500 feet, and remaining within sight of the operator. those rules could go into effect late next spring. today, representatives from the ach a talked about the challenges they will face. >> i somewhat facetiously say people want to fly their kite. these kites can get up to several thousand feet and have capabilities we've never had to deal with before. even though it's different, it will fall into some regulatory piece because they're going to have the ability to operate in the same air space that manned aircraft are flying and other aircraft, as well. >> the appeal of drones is easy to understand. for consumers they're a fun

hobby and for companies, they can provide a fast, easy, and relatively will cheap way to accomplish a range of tasks from surveying farmland to inspecting oil fields. that's why despite these potential regulatory challenges, analysts at abi research estimate that the comreshl drone market electric jump from $3 billion last year to nearly $9 billion by 2019. for "nightly business report," i'm josh lipton in san jose, california. and coming up 'tis the season for charitable giving. where do people donate the most? and has social media changed the way people give?

here is what to watch tomorrow. my favorite day of the month, the federal reserve relations minutes from its october meeting. nothing beats the reading. a read on construction activity with the housing starts report comes out. and another economic indicator. weekly mortgage, that's what to watch wednesday. >> general motors got two gold stars from motor trend magazine. it will named the automaker's chevy camaro as the car of the year saying it is one of the finest driving vehicles in the world. at any price. it beat out seven finalists including the audi tt, bmw 7 series, honda civic and a few others. the chevy colorado model was named truck of the year for the second year in a row. americans gave away a record pile of cash to charity last year, nearly $360 billion. that according to the giving usa

foundation. so what will the season of giving look like this year? joining us now finance correspondent sharon epperson with more. the generosity unprecedented last year. what are the people who follow this expecting this year? >> giving usa one organization that follows it says when you look at the stock market you can expect giving to increase about a third as much as the gains you see in the market. when you have a flat market we have to see what will happen there, but keep in mind that's one of the things they look at. good news is 95% of households actually give which is really encouraging. > that's great. >>en at average amount is about $3,000. so they are giving. we'll see if the giving keeps pace with what we saw in 2014. >> where do they donate the most? >> the mostly to religious organizations. about a third. most people give to their house of worship. then education after that -- but also human services, health, and foundations also get a lot of the money.

>> how have social media changed the ways people give? >> if your non-profit does not have a tag to click on to get to the facebook page, that's a problem. that is facebook, twitter, youtube. you have to be present as a non-profit in social media in order to really get that plea out there for what your mission is and also that you need to donate, as well. but the issue comes with how you use that as a consumer and what you pay attention to. it's, you can get sucked in some of these youtube testimonials and what you see from other people writing but you need to do your own homework. >> how vulnerable i guess maybe a better way to say it is how secure is it? sometimes if you're donating a couple thousand dollars you wan to make sure everything is secure. >> so the same way that you would in any type ontransaction that you're going to make online, make sure that you're going through a secure network, that https lets you know it's secure. that's the best way to do it.

>> is that what that means? i didn't know that. learn thing every night. >> that's why she's in charge. >> so are there websites that can help you find out how much of your money is actually going to the program as opposed to fund-raising as opposed to -- >> exactly. charity navigator, a an great place for the information. guide star. look at the form 99 and look at their irs forms they submit to see how much does the executive director or ceo make. that information is out there and available. how much goes to administration, how much goes to programs, all of these things are things you want to find out and some of these sites will let you make those online donations right from the site. that's a good way, as well. >> great to be with you. and finally tonight, when you're sitting in traffic this thanksgiving, you can blame cheaper gas and airline tickets. aaa is predicting this holiday could be the biggest travel by car event since 2007.

almost 47 million americans are expected to travel at least 50 miles for the holidays. the average price of a gallon of regular is now $2.15, which according to aaa is 65 cents cheaper than the same time last year. plane tickets are down by 10% for the top 40 routes. i will not be onewi of those people traveling. > no, i don't think i am either. i'll be here. >> that does it for "nightly business report." i'm sue herara. thanks for joining us. >> i'm tyler mathison. thanks from me, as well. have a great evening everybody. we'll see you tomorrow.

>> the following kqed production was produced in high definition. >> stephanie george: so start turning up 10. >> they are called the running crew, and these young people hope to find a career in the theatre, but not on stage. >> javier reyes: there's very few places for young people in general. i realize that this is a place where i can make magic. >> patrick amiot: this is a farm implement. this is big wheel. >> after canadian sculptor patrick amiot came to town sebastopol has never been quite the same. [ rooster crows ] >> and lucy arai's artwork has developed in unique and beautiful ways, one stitch at a time. this time on spark. [ ♪music ] >> major funding for spark is provided by the william and flora hewlett foundation, supporting creativity and inno