you ♪ this is "nightly business report" with tyler mathisen and sue herera. october surprise. the fbi says it's reviewing newly discovered e-mails in the clinton server case, and the markets shutter. oil slick. profits tumbled at exxonmobil and chevron. is the outlook for one brighter than the other? and going green. why california may usher in a new era for the still young but fast growing marijuana industry. those stories and more tonight on "nightly business report" for friday, october 28th. good evening, everyone. and welcome. i'm tyler mathisen. sue herera is off tonight. we begin tonight with new developments on the bumpy torturous clinton e-mail trail. in the militant of the trading

day, the fbi said it would review additional e-mails in the case, possibly involving the private server that hillary clinton used as strait. secretary of state. in a letter to lawmakers, director james comey said his agency was taking steps to, quote, determine whether they continue classified information, as well as to assess their importance to our investigation. and when the news broke, the markets spoke. loudly. stocks dropped sharply, ripples sent through the currencies, commodities and bond markets, as well. by the end of the day, the major stock averages recovered somewhat. the dow industrials lost just eight points at 18,161. the nasdaq was off 25, and the s&p 500 fell 6. a lot of twists and turns in this e-mail story, and eamon javers has been following every one of them. eamon, what's the latest we know? >> well, tyler, astonishing day in american law enforcement and politics today. the latest that we know is that

the fbi sent this letter to capitol hill earlier today in which they explained that they had somehow obtained new e-mails as part of this hillary clinton investigation. they were going to take a look at that. director comey wanted lawmakers on capitol hill to know about it, because he had previously told them the investigation was completed. not so fast. it's not completed. later in the day, we found out that the way the fbi had discovered these e-mails was as part of the anthony weiner sexting investigation. the fbi obtaining a device or devices related to anthony weiner and his wife, huma abedin, a close political aide to hillary clinton. e-mails raised the attention of the fbi investigators. all of this happening very, very quickly, tyler, i'm told over the past 24 hours. the fbi director making a decision to alert congress, and the public to the possibility there was a further investigation to be done here. because he clearly did not want that information coming out after the election. he didn't want it looking like the fbi was in any way hiding

the fact that it was continuing to investigate hillary clinton's e-mails, tyler. >> do we know how many e-mails may be involved here? and whether any of them will be released, any time soon? >> we don't have a number of e-mails. we don't know whether they plan to release them at all. with he don't know who the e-mails are to or from and we don't ultimately know who was the owner of the device, exactly whose device was this, and whether any classified information was on it. all of that, the fbi says, they're going to investigate. but in my -- talking to my sources today, i don't get the sense we will necessarily know the answer to any of those questions before election day. that means voters are going to have to head to the polls with this big question mark over their heads. >> eamon javers, thank you very much. eamon in washington tonight. so why did the market react the way it did. the simple answer is that investors have bet strongly on a clinton victory. anything that disrupts that probability prompts recalculation. bob pisani has more on today's

swift and sharp market moves. >> the dow initially dropped a little more than 100 points on news that the fbi was probing newly found clinton e-mails. but rallied off the lows to end the day, mostly flat. other markets were affected, as well. gold spiked, and the dollar lost steam. the vix or volatility index, climbed to its highest level in nearly two weeks. some specific stocks and sectors moved, as well. time warner, which received a buyout offer from at&t, sold off because donald trump said he would not let the deal go through. biotech stocks, which have been under pressure all month on concerns that hillary clinton would impose stricter regulations on the drug industry rose off of their lows. by the end of the day, the markets had reversed part of the decline. the markets had priced in a clinton victory with the house remaining republican, so it's not surprising that any change in that scenario might move markets. for "nightly business report," i'm bob which sanpisani at the

york stock exchange. the fellow dow component e chevron saw profits fall, but an improvement over the past few quarters. investors basically liked what they saw in chevron's results, but had a different reaction to exxon. morgan brennan takes a closer look at the two companies' quarters and what may lie ahead. >> reporter: a tale of two energy stocks today. both exxonmobil and chevron reporting mixed results with earnings better than expected but revenues missing estimates. low oil prices hurt the bottom line, especially operations in north america. but results also slipped in refining. a business that had previously helped buoy returns amid the low prices. for chevron, results marked a return to profitability after three straight quarters of losses. on a conference call, asserting the company is poised to compete in a low-price world. >> with costs coming down, with

c & e and capital intensity coming down, with the production coming online to boost cash margins and production, our overall financial picture is set to improve as we move into 2017. our objective is to get cash balanced in 201$2017, assuming prices. >> reporter: analysts say the bar was show and chevron managed to hurdle it. the company trimmed costs by $10 billion in the first nine months, and weak cash flow which stoked fears about the future sustainability improved, sending shares soaring. the top u.s. energy company tumbled after warning it may be forced to recognize that amid an s.e.c. probe nearly a fifth of its reserves are no longer profitables to produce. so far, this year, exxon slashed spending by another $12 billion and maintains it will hit its production guidance of roughly 4 million barrels of crude per day. the reports came on the heels of

improving results on other majors as well, including conoco phillips amid a smaller than expected loss, and francis total which said profit nearly doubled amid steep cost cuts and rising output. the worst may be over for the biggest energy players, but they also caution that with oil prices hovering around $50 a barrel, it's still a long road to recovery. for "nightly business report," i'm morgan brennan. general electric looks to be supporting an energy deal. the company says it is in talks with the oil field equipment provider, baker hughes, regarding a potential partnership. initial reports said the talks were about a potential takeover. but in a statement, ge said while nothing is concluded, none of these options include an outright purchase of baker hughes. shares of baker hughes, nonetheless, up about 8%. ge higher by 2%. investors do seem to like the idea of general electric and baker hughes moving into some sort of partnership, but why

would ge want to double down on the energy business? it's been a constant drag on its bottom line. steven analyzes ge for bernstein. welcome. do you see it this way? in other words, would this be a doubling down by ge if they do a partnership with baker hughes or could they be doubling off a little bit, combining assets and moving them off of ge's sort of purview? >> it's a good question, a key question investors are grasp graspeling with. there is a tremendousment aof value vegas potential, if you combine businesses here. ge and baker hughes need to respond to some of their competitors who have joined forces and providing a complete, full integrated oil field extraction business. and this would allow them to combine both of their businesses and get there in a defensive move. and on the offensive side, of course, there are synergies, cost energies if you combine businesses. ge doesn't have to make an outright purchase.

there are multiple forms of partnership that could take place, ranging from just a simple sales combination in certain assets to actually a full-blown joint venture they spinoff in some kind of reverse trust. there are all sorts of thing they could do to create value here. i think the important thing is that you take advantage of the capabilities of both of these strong businesses. and together, they would be about 23 or $25 billion, and this year sales, and down significantly from their highs. so you could say this is actually happening at the bottom of the cycle, which is a good thing for ge, anyway. >> you like ge stock? >> i have a market perform on ge. i had honestly downgraded it at $32 a stock close to 28, 29 on some other concerns around growth. their order equipment growth is off about 6% this last quarter. i think if you take a longer-term view, there's a lot of things to think about beyond the next year or so in terms of their digital efforts and as equipment and capital expenditures start to come back in the world. >> it does appear that baker hughes wants to be a seller.

i mean, they almost got married with halliburton until that ran afoul of regulatory issues. do you see it that way, and would there be regulatory issues here? i assume not, if it's not an outright acquisition or maybe even if it is. >> i think it's a question of how the businesses get combined. there are a couple of sub segments that regulators might take a look at, where both of them have fairly strong positions. but on average, it's nothing like the halliburton/baker hughes combination in terms of the market shares that were at risk in that case. >> steven, thank you very much for your help. we appreciate it. the economy bounced back in the third quarter. growth accelerated to 2.9%, the fastest pace recorded in two years and better than expectations. gross domestic product produced across the country reflected increased exports and a buildup of inventories and stronger than the second quarters, a loss stronger than that quarter's

1.4% growth rate. one company closely intertwined is procter & gamble and sara eisen recently spoke with the ceo of the dow component to get an update on the company's big transformation. ♪ >> reporter: it's been one year since david taylor took on the job of seeing the world's biggest household products company through a major turn-around. and so far, the 35-year veteran of p & g is seeing results. the maker of tide, bounty and pampers saw its fastest sales growth in years last quarter. but it is staying conservative on the outlook thanks in part to a soft global economy and flat consumer spending in the u.s. >> the economy is growing, but not growing faster or slower. i think we're in a relatively flat period of time right now. and some stimulus, hopefully, will drive a little bit better growth. but right now, what i'm seeing

and experienced in the ten categories we do business is a relatively consistent, modest growth in the u.s. >> reporter: p & g's health care business is shining with oral b and its power tooth brushes growing fast. but some of the beauty brands like olay, are still struggling. taylor is looking to innovation, which he called the lifeblood of the company to drive new growth. he points to downy scent beads as one example. he's also cutting costs, as much as $20 billion worth over the next few years to drive profit, something wall street has applauded. >> i think we're making good progress, and progress will be measured in years, not quarters. and so i really want to make sure that all of us stay focused on making sure this year is better than last year. next year is better than this year. and to do that, we've got everybody understanding that ultimately, it's about winning the consumer value equation, working with our customers, and working very hard to create and build categories as the key driver of growth. because if we do that, it's a very sustainable strategy.

>> reporter: taylor says that p & g is more nimble andage i'll after it shed 100 brands to focus on 65 core p & g brands. but the macro economic environment is tough and competitors, like kimberly-clark and unilever hit speed bumps when it comes to growth. analysts say p & g needs to continue to deliver market share gains while maintaining premium pricing and appealing brands. for "nightly business report," i'm sarah eisen in cincinnati. coming up, not too big, not too small. our market monitor says he is buying stocks that are just right. and pay dividends. but first, a look at the mixed week for the major indexes.

the green rush is on. the burgeoning marijuana industry may soon get a big lift. a number of states, including california, will vote on whether to legalize pot's recreational use. and as jane wells reports from humboldt county, california, the stakes are, well, high. ♪ beautiful resin. >> oh, yeah. >> it smells like froot loops. >> reporter: california may finally decide to legal eyes what some call the state's number one crop. 20 years after making medical marijuana legal, voters may now decide to green light recreational pot with proposition 64. >> the bottom line is, the country will radically change. because of what california is doing. >> lieutenant governor good afternoon newsome has helped

shape prop 64 which will allow anyone 21 or older to buy, sell pot and even grow six plants of their own. it could raise $1 billion in state taxes. >> prop 64 makes marijuana legal in california. >> reporter: the yes campaign has far outspent the nos, thanks in large part to more than $7 million in funding from venture capitalist sean parker of napster and facebook fame. and a few weeks ago in san francisco's financial district, there was an expo for so-called industry disrupters. >> this is the new face of cannabis right now. and this here today, this is the new face of the cannabis industry. >> reporter: up where most of the pot is actually grown, they are not thrilled with prop 64. >> i think there's going to be a period of time where the prices are going to go really low. and it's -- it is going to be about the ones that survive. >> reporter: hudson is helping brand the local product as true humbol humboldt, ask she plans to vote no. many growers fear outsiders will

eventually come in and take over the industry. but some second generation farmers, like sunshine johnston and raoo anderson, want to come out from the shadows. >> we haven't had a future until now. and now we have a future. and in five years, we'll start to see what that future looks like. >> being from this community, the black market has taken away our right to speak out and do interviews like this. and legitimacy has given me a chance to, like, come out and be a part of a greater society. >> reporter: legitimacy, perhaps, in california. but still not in the eyes of the federal government. for "nightly business report," jane wells, humboldt county, california. increased credit card use helps master card blow past earnings expectations. and that's where we begin tonight's market focus. profit and revenue rose at the payment processing company, thanks to an uptick in transactions. but mastercard said it expects sales momentum to slow in the current quarter as a result of higher user rebates and incentives. shares were up 3% at 106.90.

her see saw profit rise with results being largely helped by strong demand in the u.s. sales were also higher. the maker of reese's peanut butter cups also raised its full year earnings outlook. shares popped 7% to 102.40. higher than expected profit as strong demand for north american roots and higher onboard spending fueled results. cruise operator also saw a rise in revenue and said it is seeing a solid number of bookings for next year. shares finished the day up more than 9% at $74.47. after the bell last night, the drug wholesaler, mckissen set a weaker price environment was to blame for the profit and sales miss. cut its profit guidance for the year and also saw stock downgraded by several banks following its earnings report. shares today got crushed falling 22% to $124.11. and a curb net went public today, a name you may not be

familiar with. but you probably know its well-known golf brand, titleist. in its stock market debut, raised $329 million, opening its 17 bucks a share. that was lower than initially anticipated. but the company ceo says the company is confident in its core audience. >> our target audience is the dedicated serious golfer. going back to the origins of the company, our primary target audience. we think it's a high-quality consumer in the space. and for us, as a result, we're really focused on that, and that's why we're positive about the future. >> if i keep losing balls, their stock should go up. shares rose to $17.95. and now to our market monitor, who likes dividend-paying mid cap stocks. he says will benefit from infrastructure spending here in the united states. first time joining us on the program, he's don schrieber, ceo and manager at wbi funds.

mr. schrieber, welcome. good to have you with us. does the election matter to you and how you manage your funds? >> well, i think the election might be a little bit more contested and have a bigger market move than normal. normally, elections don't have a big impact on markets, but i think this one, because people are concerned about either party winning the oval office, may leave a bigger mark on markets. >> you are looking for fiscal stimulus, either under a president clinton or a president trump. to help some of the picks you have for us tonight. starting with mdu resources. what do they do? they have a very nice dividend of nearly 3%. >> yeah. mdu resources is a typical integrated multiutility. they have some other things going for them. they do construction and full servicing for utilities and in an infrastructure plan, or a fiscal stimulus plan, we expect

the utility grade which really needs a reboot, to get a fair amount of dollars allocated to it. this should be very good for mdu's utility construction business. >> and had a nice run. >> that should give them a little bit better revenue. >> a nice run, as well, over the past year. steel dynamics your second pick. a price target of 35 on it. >> sure. steel dynamics is benefitting from a rise in steel prices, because of less competition out of china, and then again, a fiscal stimulus or infrastructure plan. steel is going to do very well, it will raise the revenue for the company, and it should really drop to the bottom line quite nicely. >> both of those picks that you've just mentioned have had very nice run-ups over the past year. you don't worry that the price has gotten away? >> no, not at all. i think that one of the things that we look for, reasonable price to earnings ratios, so the companies have decent value right now. both of thieves companies are trading at less than the average of the s&p 500.

and we look for good revenue and good earnings growth and these companies meet those criteria. so the stock should have some room to move to the up side. >> the final pick is less an infrastructure play than a sort of consumer and media one. scripps network. my wife and i love watching their television programs, those home makeover shows. >> you bet. so hgtv, diy network, they've really got the heart of the american consumer, i think. and these are really very popular shows. they also have the food network and they've got the travel network. so i think they really are speaking to consumers, and these shows and trend shows broadcasting company should do really great in terms of its growth rate over the next few years. >> don, thanks for being with us. don schrieber with wbi funds. coming up, why entrepreneurs are on the front lines of one city's big push to kickstart economic growth.

♪ here's a look at what to watch next week on tuesday. we'll see how many consumers drove off with new cars in october. when automakers release their monthly sales. wednesday, the federal reserve will wrap-up its two-day policy setting meeting. and on friday, the biggest economic release of the week is out. the unemployment report. that's what to watch on a very busy week. st. louis jury awarded a california woman more than $70 million in her lawsuit against johnson & johnson.

the woman alleged that the company's baby powder caused her cancer. and accused j & j of negligent conduct in the making and marketing of the product. earlier this year, two other lawsuits in st. louis ended in jury verdicts with more than $125 million in awards combined. but the two similar cases in new jersey were thrown out. baltimore has a long history of economic ups and downs and now there is a big effort under way to spark growth. and to do that, the city is turning to startups. kate rogers tonight on why small business matters to the charm city. ♪ >> reporter: the city of baltimore is out to reinvent itself. >> just as importantly as changing the realities of baltimore, we think it will change the image and brand of baltimore. >> reporter: a working class city that struggled to find its footing, baltimore saw its reputation further damaged after

violent protests rocked the area in 2015 following the death of freddie gray while in police custody. so the city is sloog to bolster its reputation and economic standing by turning to entrepreneurship to usher in the next chapter for charmed city. >> if we can build a place that has a culture around entrepreneurship, small businesses growing into larger businesses and general opportunity, we think that is an economic boost at a time it's really needed. >> reporter: port covington's $4 billion plus redevelopment led by under armour ceo kevin planks' investment company and funded via public and private capital will take nearly two decades to complete. but city garage is already opened its doors with a maker space and resources for entrepreneurs who want to create made in america products from whiskey to skateboards, as well as the manufacturing and testing facility for under armour. the message? entrepreneurs have the ability to elevate the city from the bottom up. baltimore's affordability, accessibilities and educational system make it a great place for a young company to lay down

roots. in 2015, it was a top 20 metro for startup activity, with nearly $900 million poured into the state that same year. johns hopkins fast forward accelerator launched in 2013 with a focus on innovation and technology. since 2012, 67 companies have been licensed by john's hopkins university, and those based on the university technology have raised more than $1 billion in funding in the past four years. >> i think it's kind of a virtuous circle. we built these facilities, provided these amenities, raised the consciousness within the university, we provided great technical support, and that in turn has unleashed more creativity. >> reporter: startups like david narrows son i vac have decided to stay in the city. currently in the process of seeking fda approval for its technology, which can detect post operative blood clots. baltimore has provided resources, top talent and most importantly, affordability for

the young company. >> people that aren't from baltimore or don't know much about baltimore often have negative perceptions based off of the, you know -- not so infrequent perception that there is, you know, danger here, or issues associated with the wire or riots. but when you come to baltimore, you realize that everybody -- it's a very friendly community and people are very supportive of one another. >> reporter: for "nightly business report," i'm kate rogers in baltimore. and that is "nightly business report" for tonight. i'm tyler mathisen. thanks for watching. have a great weekend, everyone. and we will see you back here on monday.

>> the f.b.i. reopens its investigation into hillary clinton's emails with less than two weeks until election day. i'm amy walter in for gwen ifill. onight on "washington week." >> we are 11 days out from perhaps the most important national election of our lifetime. the american people deserve to get the full and complete facts immediately. >> i have great respect for the facts. that the f.b.i. and the department of justice are now willing to have the courage to right the horrible mistakes that they made. amy: down in the polls but not out. donald trump continues to attack hillary clinton about her private email server. the breaking news shifts the spotlight away from hillary