this is "nightly business report" with tyler mathison and sue herera. funded in part by hss. ♪ >> our valued principles are patient first. we want to deliver the highest quality care. >> the goal of creating and sustaining value is all about putting the patient at the center of the equation. the purpose of this organization is to help people get back to what they need and love to do. >> sprinting back, the president elect announces that the japanese owned telecom giant sprint will bring 5,000 jobs back to america. stocks are near record

levels. home prices are at a new peak and consumers are feeling good. how do we avoid getting swept up in all the euphoria? found money, why the government may have a rich surprise waiting just for you. all that and more for wednesday december 28th. good evening, everybody. >> president-elect trump is meeting with several more ceo's, today, included the head of sprint. just a few minutes ago, the president-elect said sprint is moving jobs back to the united states. john harwood joins us from washington. good to see you. what do we know about the ceo's that trump met with, and what it could mean for the future for jobs in america. >> what we know was that donald trump came out of mar-a-lago and announced that sprint would be bringing 5,000 jobs to the united states, and one web which is a firm that has taken

investment from the japanese soft bank is going to add 3,000 jobs. what we don't know is whether these are different jobs than the ones that were announced by the president-elect and the chief executive of soft bank a couple weeks ago, when they met at trump tower, he came out and said he was going to invest $50 billion. and create 50,000 jobs in the united states. are these the same jobs or are these new jobs? nevertheless, 8,000 jobs which is not a whole lot in the context of the u.s. economy will make 8,000 families happy. >> were these jobs or do we know, because the announcement just a few moments ago was brief to put it mildly. do we know whether these jobs were jobs that had left america and are coming back? or are they newly created jobs? not that it really makes all that much difference? >> the president-elect suggested that they were jobs that had gone outside the united states and coming back, we don't know

details, there wasn't paper issued with this, this was clearly something that when sean spicer foreshadowed it on a daily transition conference call for reporters said would be coming 4:00 to 5:00 later today. that was an illusion to the phone call that the president-elect had with marcello, the chief executive of sprint. he did not go to mar-a-lago, they talked by phone, and that was the precedent i believe for this announcement. >> and so john, when we look at the fact that trump has been discounting traditional measures of economic success, things like unemployment and growth, is this where he's hoping to make his mark on manufacturing jobs, and other kinds of job growth in this country? >> absolutely, that's part of the argument he made in the campaign, he was in particular, going to look after those blue collar workers in the united states who had seen their opportunities, jobs, wages

diminished by trade, automation, all that sort of thing, immigration as well. and the question is, how much of an impact can he have. over the last 12 months, the united states economy has averaged about 188,000 jobs a month. this is 8,000. he's not president yet, and he's just getting started. if he can develop a virtual cycle of confidence and momentum, that could make an impact. >> john, thank you. >> we all know online sales were a big booming business this holiday season many leaving many to wonder how the brick and mortar retailers fared. the numbers are starting to trickle in. the procrastinators made a late push. and made a dent in the holiday season. kate rogers tries to answer the how did they do story. >> consumers opened up their wallets in stores, hoping to drive holiday sales higher after a sluggish start to the season.

according to new data from retail next, drawing on sales reports from 1,000 retailers nationwide, brick and mortar sales rose 6 1/2% year over year. one week doesn't tell the whole story just yet. and data from december 1st to december 26th shows sales down 6%. strong demand for furniture, home furnishings and men apparel, helped to push retail sales higher by 4% over last year. >> even with a few extra days to shop, the christmas holiday fell on a sunday this year, some are not sure the last minute shopping surge had a meaningful impact on holiday sales overall. >> we saw that sales got a little bit better, we may see a flat to slightly up season. however, i still believe that margins are going to be another story when they're reported in 2017. >> brick and mortar businesses are still struggling to compete with giants like amazon.

while retailers have three shopping days left to close out the year. the proof of whether holiday spending comes down to the consumer and where they spent their cash. >> housing and cars are stealing dollars away. we see sales are probably fine nationwide, so we saw bigger penetration and bigger growth online and pretty flat brick and mortar, the money is going other places. >> retailers and the government will report their final numbers next month. sales were down 3 1/2% in november, it appears that 2016 holiday season may turn out to be a mixed bag. for nightly business report, i'm kate rogers. on to housing with a national association of realtors says pending home sales dropped 2 1/2% in november. economists had been looking for a gain of nearly half a%, pending home sales measure contracts signed but not yet closed. this comes as the wall street

journal reports the number of investors who flipped a house in the first nine months of the year, hit the highest level since the glory days of 2007. according to a leading index, national home prices are at a record level as well. >> with housing prices at peak levels, consumer confidence is up, spending is surging, is it all a good thing? the all around good news on the u.s. economy? when we're looking at all of these wonderful numbers, consumer confidence, peak home prices here, the stock market's at an all time high. is there any danger of all of us jumping in on this rah rah rally? >> i get very nervous, when everyone sees one future, and it's all good. we just heard that a lot of people have been flipping houses this year. i get scared with all my friends

thinking they can buy a house, fix it quickly, flip it, the next thing they talk about is building a condo building. i get scared when we all see one future, we all know there's a lot of uncertainty out there, and we have to be prepared when everyone sees everything going up, that's when i worry about everything going down. >> if i sort of dedeuce from what you just said, you're concerned that there is too much bullishness, too much positive anticipation in the stock market among other places, as to what the president-elect will be able to accomplish quickly, once he assumes office. >> it's dix for me to kind of know for me to know whether it's because of the president-elect, but i get nervous when everyone sees the same train going the same way and don't see any possibilities of getting derailed.

that is true today, that was actually true in '08 and '09. everyone saw the market going down, people were selling at the bottom. people were shocked that they lost their jobs and 401(k) plans at the same time. and thought the world would collapse. i got nervous about that, but in a more positive way, it was an opportunity. when everyone saw the world collapsing, i felt that maybe it's an opportunity to see it might actually come up one day. so the issue i have is, we're in a sense, blind to all the possibilities out there. good and bad. today obviously, everyone is thinking everything is going to be fine, and that's where we should be a little nervous about all the bad possibilities that could happen. i don't have a crystal ball. maybe it will not happen in 2017. but we should at least be on

alert. >> some psychologists and behavioralists would call that herd mentality. when does the flip side of it become crowd sourcing and taking advantage of the group wisdom to look at our economic foundation. >> a lot of amazing things about herding behavior. if i saw everyone running out of the studio in los angeles, i would -- maybe there's a terrorist attack, a fire. so it's part of human nature to be part of the help. that's generally a good thing, but it was definitely not a good thing in '08 when people saw the 401(k) plans as 201k plans. >> thank you. pending home sales we told you about a moment ago, put a damper on the dow's push to 20,000. stocks pulled back in a big way

today. they suffered the triple digit loss since the election. the dow fell 1100 points. the nasdaq dropped 48 points and the s&p 500 was off just about 19. takada is reportedly closing in on a deal with the department of justice, 20 settle a criminal investigation into the japanese company's handling of faulty air bags. they could pay up to a billion and possibly plead guilty to criminal misconduct early next year. the air bags which run the risk of rupturing and sprague shrapnel have been linked to 11 deaths and nearly 200 injuries in the united states alone. coming up, why our market monitor thinks large cap stocks are not the way to go.

this year, tech is smack in the middle of the s&p pack, ranking sixth out of the 11 s&p sectors, which tech stock was the best for investors and which was the worst? josh lipton has the answer. >> tech investors place their bets in 2016 and no bet proves smarter than invidia. the stock has sored 240% this year. it's not just the best performing tech stock, it's the best performing stock period. why all the excitement? the semiconductors are powering many excitings fields that investors want exposure do.

including artificial intelligence and self-driving cars. it's core graphic processing units enable popular video games. that business is what could drive this stock higher. >> what's driving that is the hardcore pc gamer. we have new title releases coming out for this season. battlefield one is out. that's a high performance game. they want the next generation greatest gpu, it's a higher gross margin, higher performing product. >> still, not everyone is a fan of invidia. this morning, citron dweeted that the market is disregarding head winds for the company including increasing competition. citron seized the stock, heading back down to $90. from leaders to lagers, one of

the worst performing tech stocks this year is sales force. ceo mark bayoff says the business software maker could reach $20 billion in annual revenue faster than any other enterprise software company. but investors haven't been impressed and the stock is down some 10% this year. in part, analysts say the street is worried that bayoff might make a big acquisition, given his flirtation with twitter earlier this year. >> for sales forces to start moving higher, i think it's pretty simple. they need to get back on message around growth plus margin expansion equals mid-20% cashflow growth. this is a strong fundamental company, they've got a lot of open ended opportunities from a growth perspective. you have to move away from a lot of the discussion about m & a. they're betting that causes of concern like aggressive deal making will now ease in the new year. he says the companies fourth

quarter results expected in mid february could be pivotal in terms of lifting the overhang on the stock. i'm josh lipton, san francisco. kate spade may be thinking about putting itself up for sale, and that is where we begin be to the's market focus. in november, the activist hedge fund carris investors urged the high end handbag maker to sell itself. now, according to the wall street journal, kate is working with a bank and has reached out to potential suitors about a possible takeover deal. for its part, kate spade says it doesn't comment on rumors or speculation. the stock rallied up 23%. that's a lot of handbags. gnc temporarily closed more than 4,000 u.s. stores today. as the vitamin and supplement retailer works to update its pricing system. they plan to eliminate the price

disparity between products sold online and in store, by creating a single price for the same item no matter where you buy it. the company plans to reopen tomorrow. gnc shares fell 3% on the session, they finished at 11:12. treatment for a rare blood disorder would advance to a late stage trial. the drug maker received confirmation from the fda that it can now file a new drug application with the agency. shares surged 21% to $2.38. south korea hit qualcomm with an $854 million fine, alleging the chipmaker violated antitrust laws. the company operated an unfair business model where it entered phone manufacturers into license agreements, and limited who could license its patents. qualcomm plans to appeal the decision. qualcomm shares were off 2%, to

65.75. as we continue our special week of market monitors. you will want to own small and mid cap stocks in your portfolio next year. he's predicting they will outperform large cap stocks in 2017. he's gary bradshaw, portfolio manager at hodges capital management. good to have you with us. make the case for why small and mid caps should in your view, outperform large caps next year. >> well, tyler, thank you for having me, and at the hodges fund, we still are optimistic about this market going-forward. but we do think that small and mid caps will outperform for three main reasons. number one, the strong dollar is certainly going to impact earnings on the large cap multinationals, much more so than small and mid cap companies. also, we think tax reform will be extremely good for small and mid cap companies. and then also, usually when you

get a u.s. economy that's accelerating, small and mid caps outperforming. so we're optimistic in the smaller names going into 2017. >> give us some picks here about stocks in 2017 that you think might do particularly well? >> well, in the hodges small mid cap fund. we own cal um petroleum, which is a basin driller, they have 6 56,000 acres, they're running three rigs today, we think by the end of 2017 there are five rigs, they're a low cost producer, meaning that at $45 a barrel, they're making good money producing oil in the basin. and we just think their cashflow and earnings will grow. we think production will be up 35% in 17.

and 45% in 18. >> we have 45 seconds to get you through fairmount and murphy usa. two more also in the energy field. quickly. >> well, that's right. fairmount producing tracking sand. what's going on. rig counts are going up, we're using more sand per well. as much as 6 million to 10 million pounds of sand. we're getting a lot more production by doing that. and we're starting to see some green shoots and pricing. murphy usa is a convenient store operator of 1350 stores located mostly next to walmart. they'll earn $4.16. almost $4.17. we think it's going to be a good stock going-forward as well. >> next to walmart is a good place to be. >> thanks for being with us. >> thanks for having me. billions of unclaimed money

sits in government coffers, some of it may be yours, what you need to do to get it back. we told you earlier that spending picked up near the end of the holiday season. tech toys are usually a must e the competition shake out between the two heavyweights, apple and google? deirdre has the early read. >> reporter: christmas may have come and gone, but there's one more thing to unwrap. holiday data. once again, was a very good holiday for apple. >> my view is, apple won the holiday season by default, not necessarily because they had perhaps the best offering, but

it's the only real offering out there that was competitive, given all the problems that samsung had with their note devices. >> reporter: they track new smart phone and tablet activations during the three days following christmas. giving us an early consideration of consumer behavior, during a time that many spent with family, friends and handheld devices. holiday metrics suggests that iphones are still the hottest gift in smart phones. last year it was all about the 6s. and this year it was all about apple's latest model, the iphone 7. the number of unique active iphone 7s increased by nearly 13%. by contrast, android devices, including smart phones and tablets, rose less than 3% in the same period of time. but google's new pixel smart phone seems to have held up better. the number of unique active google pixels increased 8 1/2%.

the apple watch was still popular. so far less so than last year, in 2015, activations rose nearly 20% in the three days following christmas. this year, they were up just 9%. analysts say the holiday numbers may be a sign of what's to come in 2017. >> i think we'll continue to be a tough space. it's really looking to be more of a fitness market, rather than something that people will be using as a substitute for their cell phones. >> amid an industry wide phone if a teich, holiday sales could be more important than ever. for nightly business report, deirdre bozza, vancouver, canada. how would you like to end this year with? found money. if you're like millions of americans, some of your money might be sitting on government books. >> new york state unclaimed funds. >> angela silver steen showed us

how she became $13,000 richer in a matter of minutes. >> a lot of it was small commission checks, utility refund. >> angela who was able to complete the process, despite being legally blind is certainly not alone. according to the latest figures from the national association of unclaimed property administrators, over $40 billion is sitting in state unclaimed property programs nationwide, waiting to be returned to their rightful owners. each state has an office where people can search for their money. in new york alone, the state comptroller's office pays out $1 million a day. that's nothing compared to how much money they still have. >> now, it's up to about 14 $1/2 billion. >> billion? >> billion with a b. >> 35 million accounts. >> the main source of funds is from banks. >> typically, it involves someone who has moved and the bank or the financial

institution, the insurance company, the utility where there was a security deposit, does not have the up to date contact information. >> banks are not required to keep records over a certain number of years. it varies from between five to seven years if the account is dormant. the bank is required under federal law to turn the money over to the state, the state keeps the money, in case someone claims it one day. >> the system that will prompt you for the information that's needed. so it can verify your connection to the account. >> if you apply on line, you can get the money really in a matter of days, sometimes a week. >> make sure if you move, you tell all your financial relationships what your new contact information will be. when searching online for missing money, put in friends and family and organizations you may have been a part of. that's another way you could be entitled to the money. one financial adviser tells clients to book mark that website, and make a habit of checking state offices. >> the majority of my clients

have found something out there in unclaimed property. most are in the order of $50 to a couple hundred. >> people say thanks, don't thank us, we're giving you back something that's yours. it could make a difference? someone's life. >> i think my grandson's going to have one great birthday party. >> for nightly business report. >> $50, that will pay for lunch. the best way to search is by typing in office of unclaimed funds in your respective state, for more, go to our website. >> if you are looking for money, the penny might not be the way to go. >> it now costs the u.s. mint 1 1/2 cents to make the 1 cent coin. the mint makes money on the dime and quarter. traditionally loses money on the nickel and the penny. >> so it costs a pretty penny? >> it costs a pretty penny. not a good return on investment.

>> that's "nightly business report" for tonight. >> have a great evening, everybody. we will see you back here tomorrow night. nightly business report has been funded in part by -- >> our valued principles are patient first, we want to deliver the highest quality care. >> the goal of creating and sustaining value is all about putting the patient at the center of the equation. >> the purpose of this organization is to help people get back to what they need and love to do.

narrator: tonight on "quest," discover the earth's critical zone, where rock meets life, and learn why climate researchers are so interested in revealing the secret life of a raindrop. and what do particle accelerators, also known as atom smashers, actually do? "quest" explores the important role that bay area scientists had in designing the machines that reveal the most essential mysteries of the universe. and get a crab's-eye view of life in a pacific tide pool. announcer: support for "quest" is provided by...