this is "nightly business report" with tyler mathisen and sue herera. falling into place. a lot has changed in the past few days. the s&p 500 put together its best two-day rally since august of last year. production freeze. will a pledge by some of the largest oil producers succeed in tackling with global glut of crude. increasing diversity in the nation's fastest growing and highest paying industry while helping girls of color reach their dreams. the first part of a week long series begins tonight on "nightly business report" for tuesday, february 16th. good evening. i'm sharon epperson. >> i'm tyler mathisen. welcome. let's not go crazy.

it is, after all, just two days, but a year in which stocks have been rarer than two days without a gop presidential debate, investors will take it. the s&p 500 and nasdaq are up about 5%. the rally is broad and it seems to be sticking and it even happened add oil prices fell. that's a require disconnect this year. today the dow jones rose 222 points to 16,196. nasdaq gained more than 2% or 98 points and the s&p 500 rose 30. two of this year's most battered sectors, finance and technology le the way today. bob led the report on why the bulls are in charge for now. >> reporter: the markets are putting together one of the few multi-day rallies. it's the best two-day rally

since august of last year. what's change? it's high level talking. first the russia-saudi talk of a freeze in oil production. these are the two biggest producers in the world agreeing something is wrong. even though oil is down, more than 60% of the energy sector was up. secondly, there's concern about weak growth in chi and a big devaluation of the currency there. traders took a look. the china governor strongly defended that there would be no sudden devaluation. there's worry about european banks. he would not hesitate to act at a march policy meeting if the markets threaten the economic bank outlook. this is the fed raising rates.

there's been no jawboning but the feds fund market indicates no hikes for 2016 or traders believe there will be no hikes. this is still not good enough. no one will believe anything until we put together a string of up days. we have not put together a three-day rally in the dow or the s&p since december 21st of last year. >> some of the world's largest oil producers reached a deal to free production. prizes rose briefly and settled lower. it wasn't the production cut many had been looking for. will there be more additional meetings down the road? jackie reports. >> reporter: after weeks of headlines, big oil producers would have to cut production and speculation that opec could hold an emergency nemeeting, we hear

an agreement is in place to freeze output at current levels. a freeze isn't a cut. it may not do much when it's at or near record highs. >> the statement with russia and saudi arabia, to me, is a step in right direction. i don't know how much is going to affect the overall price near term here. if some of the other players come into line, also, we have a consolidation of sentiment here. this market could work its way a little higher. >> the question now is this a first step. could opec and non-opec parts that are adversaries mean that they could agree to more. it could be. remember who is staying out of this, iran and the u.s. the saudis won't cut if iran doesn't cut. u.s. producers have lowered costs while suffering, they're still in the game. $27.5 was a pivot point over the last two weeks or so. if we stay above there the market stays in positive range. let's say the upside, there's

tremendous resistance above this market and anywhere about 31.5 and 31.80. that's a number that will take some work for the market to get above and hold. >> reporter: supply has been part of the story and forecast hasn't changed for global demand. there could be a caveat coming that's seasonal. >> it could draw down stock, natural gas stocks. if we have an early spring, it will be driving season coming in. >> reporter: for the moment the market is at a standstill. the freeze heard about today could keep it from moving lower but it's not enough to drive it higher. >> now to patrick for more on the global markets and today's stock market rally and the rally around the globe the past couple of days. he's managing director at brandywine global investments. thank you for being with us.

we pget paid to put on a show every night. do you think that the market had overdone it to the downside this year and maybe things weren't as bad as stock prices would lead us to believe? >> no, absolutely. i do believe that. right now there's a hit song out by a band called 21 pilots and the song is called "stressed out." i think that's what the market has been this year. it's been stressed out. i think the market is healthy. the doctor would tell mr. market, relax, get rest. you're really doing better than you think. >> the market is still troubled or investors are troubled by the market. many wondering will we see a recession, what they should do. what do you tell investor to do and what are you doing with your money? where are you putting money now? >> we're sell teli itelling inv the economy is strong now.

consumption is doing well. we're sending the message that the economy is not doing poorly and there's a lot of area, financial, energy, some of the more cyclical industries are implying if we're heading into a global financial crisis. we're out there with two messages. the economy looks okay and there's some real value out there. what matters is the price you pay but for an investor to go against the crowd, we see long term opportunities. >> you go against the crowd and pick value plays. you can name names if you want, you can shy away from naming names if you would pefr it that way. i gather implicit in what you just said is you're out looking at financial names at energy. maybe at some of the technology stocks that have been hit so hard. >> let me give you an example of big banks. if we're looking at citigroup or

bank of america, citigroup trading below $40 is where it closed. tangle book value is north of $60. you have to believe first they stop earning $24 billion a year and almost 15% of their loans go bad. it doesn't make any sense. we talk to bank executives every week. credit is looking okay across the economy. there's pockets here and there. big banks is an area. we have voted with our money in that regard. all the major producers, the three largest countries are saudi arabia. they are having massive deficits with oil. russia is running through reserves and u.s. producers are losing $2 billion a week. i think you do quite well.

as you said, that's what we do here. >> thank you very much for your help. we appreciate it. low oil prices forcing an offshore oil driller into bankruptcy. paragon said it wants support from a majority of creditors to cut debt from a pre-packaged bankruptcy agreement. they expect to maintain sufficient liquidity throughout the process. a new study says one third of oil producers are at risk of filing for bankruptcy this year. auditing and consulting firm says low commodity prices will hurt some companies access to cash and ability to cut debt. the study was based on a review of 500 publicly traded oil and natural gas companies world wide. to housing we go, home builders are slightly less confident about present sales and buyer activity. national association of home

builders says the gauge filled with lowest level since may. some attribute the drop to poor weather in february. manufacturer in the new york area shrank for the 7th straight month. the latest empire state index missed expectations but there was a bright spot. orders fell at a slower pace than in january. a strong dollar, low oil prices and weak lowball demand have been weighing on the manufacturing sector. one industry that's been doing well is the toy business. thousands of manufacturers, distributors, vendors are hoping to build on that momentum as they gather at the north american toy fair. morgan brendan got the fun assignment to look at the serious business of play. >> reporter: this is a north american toy fair, the largest convention of its kind. for more than 30,000 toy makers, vendors and celebrities converge. >> we had the original six games and adding 12 more. it's amazing the toys are going

off the shelf pretty fast. >> reporter: >> reporter: companies are unveiling the newest gadgets and play things. u.s. toy sales grew nearly 7% last year to over $19 billion. one of the strongest performances in years. experts hope 2016 product line up will keep that momentum. >> we are at a phase where we're seeing year over year growth. a lot of traditional play coming back, licensing being very strong. we believe we'll see a few years of good growth here. >> reporter: star wars has helped with a number of companies benefitting from the franchise. lego saw sales surge last year and expect it to carry over in 2016. >> ninjago, we're building our own story and star wars we have the super heroes. there's no doubt the importance of story is increasing. >> reporter: licensing is a big business accounting for 45% of

the overall toy industry. the film roster should continue to fuel sales. >> hopes are lie and a lot of them are on the fantasy kind of genre with the avengers and justice league. star wars rogue one. they are also other movies on the softer side, angry birds and ghost busters. the all female ghost busters. >> reporter: playmobile hopes it will be propelled into the u.s. mass market. >> we decided to go after it nationwide. we're promoting it on television this year. we really feel it will be the mainstay for 2016. >> reporter: some are debuting new line, others are revamping classic ones. take barbie. the doll is getting more eye color, hair styles even more body types in an effort to

appeal to more girls and stoke more sales. still ahead, the new entrance to the world of fashion is not what you might expect. the president of the minneapolis fed and head of the financial industry bail out says he wants to toughen banking laws to prevent another crisis. in his first speech as a fed official, he said while significant changes have been made, more are needed. >> i believe we must begin this work now and give serious consideration to range of options, including breaking up the large banks into smaller, less connected, less important

entities, turning large banks into public utilities by forcing them to hold so much capital they can't fail with regulation akin to that of a nuclear power plant. tax to reduce systemic risk where ever they lie. >> he made it clear he feels the biggest banks still pose a risk to our economy. president obama reiterated he will nominate a qualified supreme court candidate to succeed the late antonin scalia. many members of the gop said he should hold off. the conflict will spawn a political donny brook. there are a number of important social and business related cases before the current eight-member court that could be affected by th absence. hampton peerson reports. >> reporter: inside the high court chamber today, justice

antonin scalia chair and desk draped this black. it's a tradition that date backseat to 1873. they may have to operate with just eight justices for more than a year given the stand off between the white house and the republican controlled senate. >> they will fight it until there's another president. it doesn't look like the republican controlled senate will consider any obama nominee. >> reporter: when you look at the conservative versus liberal make up of the court, it means that four-four ties are possible even probable. when the justices are tied, the lower court ruling stands, that means no national precedent. example, in freed ricks versus the teachers association, a

split decision would be a victory for the unions. a religion freedom challenge by charities and non-profit organizations to mandatory birth control coverage as part of obama care. seven separate petitions are part of this case because the lower courts are divided. a texas case that will determine how far states can go to restrict abortion. it could be a set back for abortion rights groups because some restrictions approved by lower court would go in effect in the lone star state. next month, puerto rico versus franklin california free trust will examine legal options. >> the court has survived and decides cases. there's a number of different ways it can approach that. it can decide cases on narrower grounds. that's happened in recent past. it can make different decisions

in the types of cases that it takes. >> reporter: the most basic challenge for the supreme court, resolve unsettled law just got a lot more complicated. home security firm, adt, saw shares skyrocket. that's where we begin tonight. shares rose on the news adt has agreed to be acquired by apollo global management for nearly $7 billion. they will pay $72 a share and that's a 56% premium over adt's friday closing price. they will merge with protection one. shares of apollo gained more than 5% to 1412 while adt shares surged more than 47% to 3964. community health systems, which is the country's second largest hospital chain posted an

unexpected loss yesterday for its latest quarter. revenue fell short of analyst expectations. the company sited lower admission due to flu season. shares of community health systems lost 22% to 1456. revenue and profit fell for generac due to weak sales for commercial and industrial s segments. despite the loss they managed to top expectations. they expect to climb up to 12% thanks to a new acquisition. the transition which was disclosed late friday also revealed that allibaba is the

daily deal. groupon shares was $4.08. apple announced it has filed plans to sell $12 billion worth of debt to fund its share buy back program and dividend payment. they will sell a series of bonds maturing between 2 and 30 years. the offering also included a 7-year green bond where proceeds will go to fund environment all friendly projects. call it digital couture. fashion week is under way in new york but it's not a new up and coming designer that's turning heads in the ultra competitive design industry. courtney reagan has the story. >> reporter: there's a new entrant to the world of fashion and it's not who you might expect. printer maker, epson joined the ranks of new york fashion week with a presentation featuring 11

designers with textiles printed by epson printers. it can be purchased for as little as $15,000. epson says it's the first time a large company has developed a complete printing solution for the fashion industry, an industry epson thinks is right for production disruption. >> the designer has the ability to come up with an idea, create the idea and actually have fabric printed and within 24 hours have it in their hands. >> reporter: only 3% of the global printed textile market uses digital printing technology. not only is it a hopeful new growth engine for epson but also offers new opportunities to smaller, independent diesigners to make their market. >> in the past i've encountered problems with technologies that

existed. the vibrancy of colors were lost and the details were lost. the possibilities and all the vibrancy of color is kept. all the details are kept. it's like a dream come true. >> reporter: flamnames wearing crown for fast fashion or getting decision from conditicen to stores in as little as three weeks. it's moving big high end brands like burberry to work on shaking up the fashion ecosystem in order to satisfy consumer demand for instant gratification. time will tell whether epson will be part of the solution. i'm courtney reagan in new york city. coming up, bridging the divide by building a robot. the program that's empowering girls of color to pursue degrees

in computer science. the first part of our week-long series is next. there's a wide gab between black and white in many sectors of the u.s. economy. we take a look at the efforts to bridge that divide starting with education. one way to increase diversity in the nation's tech sector, the fastest growing and highest paid industry is to make science, technology, engineering and education more acc to everyone. i talked to some young girls part of that change thanks to a pioneering non-profit group. >> i have no interest in doing this. i thought it was boring at first. then when i started doing it, it

was fun. >> reporter: 11-year-old madison is one of 300 girls learning how to build a robot at this weekend workshop. >> what is our purpose? >> reporter: it's put on by black girls code. a non-profit aiming to bridge the gap in stem education for young girls of color. >> she's excited about science and math and engineering. what other opportunity for her to be around other girls that look just like her. >> this one is right here. >> reporter: many of these girls don't have role models in engineering or computer science. black women make up less than 3% of the work force at the biggest tech companies. kimberly bryant who works in biotech understands their dilemma. >> i was one of maybe two or three students of color in my electrical engineering class when i went to college. >> reporter: she founded black girls code with the hope of changing the face of technology.

>> it does not like like a woman of color. it does not look like someone of hispanic background. it's white, male dominate. that's important to show that black girls can code and they can do many other things because of the leadership standpoint in this field. >> most black girls aren't into computers. it's really cool and fun. i encourage other people to do it. it will help open up new worlds. >> reporter: black girls code held its first event four years ago in san francisco with eight girls. it plans to expand to dallas and miami this year. it's funded through corporate partnerships and a $35 fee to attend workshops which can be waivered in some cases. they are offered workshops to about 5,000 girls aging 7 to 17.

they are learning computer programming to coding and roboti . many of the girls won't come to one black girls code workshop. madison is here for the second time. >> interact and it's like i enjoy this. >> reporter: the organization is achieving its intended impact. some are majoring in computer science at top colleges including spellman and dartmouth. >> they are taking that spark and create something even bigger for themselves. >> reporter: madison may just follow that same path. sdplp got me to open mind. it's like the door opened for me. >> reporter: black girls code founder said by 2040, she wants to reach one million girls. with black males making up only 4% of the work force in the

biggest tech company, she plans to start black boys code very so soon. tomorrow or serious looks at an organization that's helping to close the wage and employment gap and will help inner city youth join corporate america. >> she's on her way. what a doll. >> she's going to be leading one of these companies one day. >> i hope i'm retired by then. she should be my boss. >> that's "nightly business report." thanks so much for watching. >> i'm tyler mathisen. have a great evening. see you tomorrow.

>> on rob on the road: the crocker art museum, awe inspiring creations. i did not expect to walk in this room and say "oh my gosh, i feel like i have just been around the entire state!" the masters and their masterpieces... >> it transcends time, and place. it takes me that close to rembrandt. that's pretty amazing! >> halls of history- the oldest art museum in the west. >> we are going to go back in time, to works on paper! >> all right, (laughs) >> come on! >> take us back in time! and prized california collections. works on paper collection is... >> one of the best in the world. >> come along for a rare crocker experience. >> i am going to show you one of the most special drawings in america, right here in sacramento. >> plus, we'll take you inside the studio of one of the crocker's most famous local artists.