ep ann this "nightly the clouds lift. micros cloud business shows growth offsetting a weak pc market and helping to prop up reve for the quarter in the stock after hours. we're bringing it from 1% to 4%. i think we can go high than 4%. >> trump wants the economy to return to the good old days of 4% growth. why has it been so hard to achiev presidential candidates aren the only ones who don't like the pacific rim trade deal. china doe either. those sto and more on "night good ev everyone, and welcom sue herera.

tyler is on assignment tonigh we begin with a surprise from micros the world's largest software compan rep stronger than expe earnings. a large part of that is due to gains in its cloud compu unit which helps businesses store their data on the intern revenu grew 3% from last year to more than $22 billion. and investors liked what they saw, sending shares initially to an all-time hi in after ho jo lipton has the one key takeaw on microsoft's quarter. >> rep $6.4 billion. that w a big number in micross report. and it refers the company's revee in its so-called intet clo division. that resul was better than the stre expected. with that division, all eyes were on azure. rememb, that's microsoft's cloud platform which competes with amazon's cloud business.

and rbc's ross macmillan points out that azure's revenue grew 121 percent. macmiln saying that cloud grow is better than the street the profitabili of that busine, he notes, is improving faster than expected. that's all good news for micrt bulls. for "nightly bu m josh lipton, san francisco. >> timothy lesko is principal portfoo man at granite inve managers and he owns the stock. welcom timothy. >> thanks for having me. >> the street obviously missed it with this one. it frequeny hap that way. you own the stock. tell me what you saw in te highli in the report. josh mentioned the cloud computin but what else did you see in th report that you liked? >> well, i think josh kind of hit the nail on the head with it. we somewha knew that pc sales were going to be light. that's been about 40 to 45% of

micross business for a while. and by blowing out on the intet cloud portion of thr business, they really show the street that they have a growth engine again which they really haven't had for years. it's hard for big old companies to change from being pretty much a stodgy operating system company and windows tools compy rea into a compe and growing cloud player. so it's really nice to see them do that. that puts the intelligent cloud portn of their business above 30% of revenue and makes people really pay more attention. >> can they continue to grow it, do you think? >> i think you're seeing more and more businesses move into cloud and more specifically move into private clouds and intet clouds. as they're plenty of commod clo business out there, the real stuff that they n bring some, call it intell cap to the table tha only they have, makes it obviously a more profitable busine you saw mar in that business go from the low 40s to the high

40s. there' really nothing better for busin when you can have better margins in a growing busine >> what about the linkedin acquis did we get more clar on when exactly that wi close and what it's going mean to the company? >> the conference call started clarity ago, so i don't so far. it wil be an interesting one. it's on the heels of their skype acquis wondering if they going to take these intern based technologie and apply them to help grow their othe businesses. otherw it could be a that they have to writ off like they had to do with the nokia acquisition. we're guardedly optimistic that they can add linkedin to the suit of products that they offer. bu so far nobody really knows what that path is. >> thank you, timothy. them owe this is with granite advisers. veriz and travelers also repo earnings. verizo saw revenue fal of subsc

adding far fewer wireless cust in the third quarter than expected. part oe reason is heightened compet among all of the carrie. meanti the company says it's asseg wheth it will need to renegotiate its acquisition of yahoo! after that company discd a major data breach. as for travelers, the property and casualty insurer reported a 23% fall in profit as gains from underw declined. travels and verizon were the two worst performing stocks in the dow today. that decline in the shares of verizon and travelers weighed on the broader market today. s was enough to lift the rican blue chip index. american reported a strong quarter, which we told you about last night. so today, the dow jones lost 4 poin to 18,162. the nasdaq dropped 4 1/2 and the s&p 50 was off nearly 3. sales of existing homes rebod in september despite a

persis shorte of prop to choose from. the national assoc of real says sales rose more 3% to its highest level e june. the repor also showed that firs homebuyers accounted for 34% of september sales, matc the highest level in moren four years. separa freddie mac reports that mortgage rates have hit their highest level in four months. and the number of americans fili for unemployment benefits rose more than expected last week. the labor depart reports initl claims for unemployment bene increased 13,000 to a seas adjusted 216,000. part oth rea for the incr in claims could be re the effects of hurrmatthew, which left some people tempo out of work. for north carol in part increased by more th 2500 last week. and the economy was a big focus of the debate last night, from national debt to taxes to economic growth. steve n takes a look at what both candidates said and

wher stand on the issues >> rep an economic foreca is neither fact nor fictio it's jus more or ls possible. we'll get to donald trump's big, intere and debatable claim his plank can achieve 4% growth is a debatable point fro hillclin i will not add a penny to the debt. he will add $20 trillion to the debt through massive tax cut. >> rep his plan would add $200 billion to the budget over ten years. by contrast trump's plan would add more $6 trillion. clinton t pay for spen by raising taxes. trump pays for his tax cuts by cuttg spend and what i beli will strong growth. >> i'm going to create trem jobs. we're bringing gdp from reais 1.

i actu think we can go higher tha 4%. i think you can go to 5 or 6%. >> rep the 4% number has rais a lot of skepticism. 2000 was the last year we grew that much. only from 1997 to 2000 did we have a long sustained period of 4% growth. 15 is the number of the past 50 we were at or above 4%. 20 would be a more realistic numb of years that we were at or above 3.5%. growth is determined by prod and how efficient work are. 1992. has trending produc has b mostly trendi down since 2002. that means the components of grow have been trending down, lead to expectation of slow growth. most economists agree lower taxes c hel growth. they warn the positive effects can be outweighed if donald runs up the deficit. fo "nightly bu"

steve liesm >> craig leesmuk joins us now, chief economi at biding sparks. to have you back, craig, welcom >> good evening, sue. >> let's put the politics aside and focus on th economics. you say that there are three reason that we have not been able to bac to that 4% level. structural, they are policy and there's the global malae to deal with. let's start with structural proble are the biggest issues? >> the biggest issue struct is that we have an aging population. this i somethingt monetary poli doesn't address. fiscal policies don't address. when you have an aging popula the you tend to see econom gro slow down. we've seen this play out in japan. playing out in europe to a playing out in the u.s. our probl isn't as big as japan' as you have an aging population, rememb that when people get over 65, you have a declining labor force as steve referenced. second they spend differ spend as much, they

save more. third, they borrow less. there s leverage in the syst and you hav weaker growth. moneta policy, fiscal policy, neit of those things can addres that. objecobstacles, you say the regula env is holdg back growth. >> absolutely. almost every industry that we talk to, business leaders talk ab the regulatory enviro whether it's enviro policies or dodd/f y that they're s some type of dealg with today, it's hurting busine confidence. when y look at business today, while it's rebod from the recession, it's still at a level that's cons with previous recess. the business outlook isn't very brig right now, number one for sales, but also because of the regu burde that they're dealing with and trying to -- e they have to hire more you ,

and more workers to deal with the regulations rather than actu producing goods and servic. now we go to global malaise, i kind of know what that is, but you're tal the downtu in many economies arou the globe. >> right. and, y we don't ha to have growth be too fast globally for the u.s. to grow. certaiy we coul be the engine of growth glob. but it's nice when you have europe, japan, other developed nations g alongside you, it helps with u.s. growth. today we don't ha that. and so it's not a prerequisite it helps. the european economy is growing very slowly, the japanese economy is stagnant. >> on that note, craig, we'll lee it there. thanks us. >> thank you. still ahead, what the leaked e-mails rl about the clinton camp's relp with the biggbt firms in si.

one of the most cont topic of this pres election is trade. and more specifically tra partne tpp, a 12-nation pacific rim trade deal championed by presobama. but both hillary cli and dona oppose it.

so doe china. we have more fr. >> rep trade is a touchy subjt in the presidential electi any proposal that even suggests that americans could lose jobs is heavily criticized. the tpp or trans-pacif partp is one such propos trade deal is part of presobama's pivot to asia, his efforts to strengthen americ role in the asia paci region. both presidentia candidates have rejecte it. and they're in unusual company. china is wary too. china is not one of the 12 countr that signed onto the tpp. and it stands to lose out. the tpp isn't the classic trade deal like nafta. it's n so much about tariffs but standards of corporate beha on workers' rights, envi protection, and how mu a government can grant a company financial support. the proponents of the tpp say it

will help level the playing field for companies operating in asia, including american ones. that w likely pressure china to adhere to these newly-define u. standards. the tpp is meant to help tie the region eco to washin workers fear the pref treat under the tpp for countries such as vietm would hurt u.s. factor in fac the deal would likely thre china's manufacturi might. china is already losing fact to cheaper nations like vietnam. and th tpp would only give intel com extra ince to move their prod away from here. china has expressed concern about the u.s.'s presence in asia and in fact beijing has drawn up plans to create its own asia-we free trade pact. u.s. allies like japan have expe great political capital to sign on to the deal.

if the tpp isn't delivered, the u.s.'s credibili in asia as wes emerging worlds could be damage only bolster china's polil sta in e region tpp could still be ratified in a lame duck session of cong after the november electi. and asia will be watching. the stolen hillary cli e-mas obt and released by wikiles revl new details about her position on encrypti w as we've been report is a divisive issue between silicon val and law enforcem and it pits privacy interests agai >> rep hi, sue. this is a relationship that came under inten scrutiny last year. newly released clinton e-mails show cho they were with big

compan newly released e-mails put clintos camn on the defens she spoke about encryption just days after the san bernard attack during a primary debate on nbc. >> i understand g about that. but i also understand when a law en charged with the responsibily of prev attacks, to go back to our early, how do we prevent attack >> a clinton campaign stafr told other campaign aides she had circulated clintos comments about encr to a contact at apple. her e-mail reads, "looks good, just heard google is good too." the apple insider is believed to be the company's director of glob gover operations. he writes, "hi sarah, this was great, i got the clip to tim last night, definitely struck the right tone." the e-mails seem to suggest that clinton camp was seeking appr and validation from the

compan about her message on encryp apple had no comment. neithe the clinton campaign nor google respond to requests for commen apple' dispute with the fbi beca a public battle in early 2016 when a judge ordered apple to help the fbi unlock the san shooter's phone. sue, the leaked e-mails, which the clinton campaign have never conf were legitimate, also show congresswom zoe lofton wrote to john podesta, "i hope our can does not leap on th side of the fbi on the encr ruling. if she is leaning that way, can i talk to her?" podest respo that clinton was inclined to stay out of it. a lot of insider back and forth. >> what might this tell us about apple's possibl influence in wash if there is a clinton administ >> rep hard to say, but clearl from the tone and tenor of t e-mails, you get the

sense tha clinton was look to run hillary clinton's public statements by executives at apple in order to see whether got buy-in from those exec over what she was saying that ind to me that apple will h a lot of influence if ther is a clinton admi in washington next year, at least sort of a frie relat betwe the o sid with the clinton ad realizing i ways politically it needs apple and silicon valley. >> amon, thanks. to read more about the e-ma released by wikileaks, head to our website, nbr.com. falling demand hurts results at union pacific. that's where we begin tonight's. the railroad operator said prof and sal fell. the compa warned results for the current quarter will cont to slip as currency heads and consumer demand

rema a challenge. american ai warned a rise in employee wages will hurt that company's profit margins nation's largest airline also posted a drop in profit and sales but still beat expect. doug parker sees a silver lining we were happy with today's result we're seeing revenues, well, theye down year over year as wi airlines, they're down less for us than others. we're stag to see a rebound in t revenue environment. >> shares were down 4 cents to $40.59. walgreen's alliance reported a higher than expected profit. the farmers operator says it expes its acquisition of rite aid to close soon. shares rose to $81.02. pulte group said an increase

in land and labor costs would cause s m to be lower than previ announced. their shares were off 3%. at&t and time warner have repo entered into talks that result in a potential tie-up between the. bloombg ss the talks are info and focused on building relatis ins laying out terms of a specific transaction. at ended the day down almost 2% to $38.65. time wr sha were up more th $82.99. paypal saw revenue rise as an uptick in customer tran helped estimates. profits increased, and the coy raised the lower end of its full year sales guidance. trading but ended the regular session down 15 cents to $40.09. cominup, words of wisdom. busine advice from some of the countrs

biotech firm alchemes's depres drug trial

signif red symptoms compar to a placebo, sending shar spiking by more than 40% in afterhours trading. shares of ariad pharma on move afte two top democratic lawmak demanded pricing info leukem drug. berniede a elijah cumm sent a letter to ariad aski for an explanation for why they raised the price of the drug. you cod see the stop drop-off when that letter was released. they e the fastest growing privat com in america. many of them are gathered at inc. magazine's 5,000 confer. their gro rates are something many only dream of. and tonight they're sharing some their best business advice. kate rogers reports fro >> rep in 2008, stay stacy brown all

of a sudden found herself a single mom, trying to f how to support her three kids. she wa obsessed with chicken salad and started a quest in her own kitchen to perfect a recipe. she began selling her chicken salad door to door and saw her little bus take off. >> the phone was ringing off the one day the health depa called. and th me know that it was illegal to sell anything that you ha coo in home. i had to make the decision whetr i was going to go in a difft d or take the leap of faith and open a rest that only served chicn salad. >> rep she took the plunge, opening her first chicn salad chick restaurant in alabama. she quickly grew into three locas and requests for franch began to pour in. today she has 62 locations acro eight states, selling her 15 different styles of chicken salad fre daily. the company has grown at an eye-pog rate with more than $90 million in sales to date restaue since 2014 and a

growth rate of 6,000%, landing on the inc. 5,000 list of the fastes growing companies in americ massacd paint night is growing even faster. the company's online platform arra parties at local bars where attendees learn to paint a piece of art over the course of the evening. it's grown 36,000% with $55 million in revenue in 2015. the company has hosted 4 million customs in thousands of cities across globe. >> week three, we had posted a lo events. we sold 350 tickets in like 11 hours. we realized that this wasn't just going to be an occasional once a month thing, that this was going to be something we could host eve single day in boston, and then when we expa to new york city, and saw the same success, we knew we we onto something and basiy we were just trying to scale as quickly as possible. >> r the leaders of both startu attribu their success

to embracing challenges and not waiting for perfection before trying new things. >> perfect is the enemy of good enough. and to scale as rapidly as we did, i thi it was a wise choice, if trying to sure everyy perfect and not launching until. >> do not be scared of change. dependn it. so when things are good, don't take them for granted, because thin will change. and when things are bad, don't dwell on that, because things will change. and it helps me keep everything in perspective. >> rep overall inc. 5,000 comp have grown at an aver of 490% over the past thre years, creating 640,000 jobs, provi that small busi really are the back of the american econom "nightly buor i'm kat rogers in san antonio, texas. finally tonight, snoopy is join the ranks of the unempl after appea for more than 30 years in print ads and tv comm for metlife, the

insu compa is retiring the popular character. metlif started using snoopy back in 1985 to make the company seem more friendly and approa snoopy will be replace by a big letter "m" in blue and green colors e decisio comes as metlife gets ready to spin off most of its u.s. life insura busine good grief, charlie brown! that d it for "nightly tonight. i'm sue herera. thanks have a.

anno♪ncer: a kqed television production. ♪ sbrocco: and everybody say "opa!" together: opa!