this is "nightly business report." funded in part by -- >> all it takes is a spark. one idea to take flight. the colonel to seek the unknown. to innovate, to disrupt, to move us all forward, to explore a different perspective. at nasdaq, we connect the world, its ideas, its capital, its businesses, the people that drive global economy. the future isn't tomorrow. it's right now. all it takes is a spark. nasdaq. >> we bought a lot more apple after year end. >> doubling down. warren buffett doubles down.

>> and an historic increase. >> open house. they're packed, competitive and maybe a sign of things to come for housing's spring sell season. those stories and more on "nightly business report" for this monday, february 27th. good evening. i'm bill griffin in for tyler mathisen. >> we start with the world's most recognizable opening for a 12th straight session. the last time it notched up like this was in 1987. the gains were led by energy and financial shares as investors want to see more policy details out of washington. today the blue chip dow index rose to 20,837. the in addition dab added 16. >> meanwhile, we're getting a

better idea of what the presses's he budget proposal will look like. it is expected to have an increase in military spending. as eamon javers tells us, it will include a lot of spending cuts. >> a surprise visitor to the briefing room today. it was rick mulvany, donald trump's man who will be in charge of slashing the budget for non-discretionary budgetary spending. he explained a lot of the cuts we'll see from the trump administration are come from his speeches and his campaign rhetoric. >> when you see these reductions, you'll be able to tie it back to a speech he gave. we are taking his words and turning them into policies and dollars. so we will be spending less overseas and spending more back home. >> here's the spending that he laid out. he said in defense spending, about $603 billion. that will be a big increase. no specifics on what exactly they'll spend that moan on.

in materials of nondefense discretionary spending, that's a $54 billion cut. of course, the devil will be in the details here of what exactly this administration wants to cut. each of these spending programs has an adamant defender up there. someone who really loves it on the the capitol hill or the public. all of them will fight to save those programs. once the trump administration releases the details, it is not necessarily the president had get everything that he wants. eamon javers at the white house. er. >> president trump met with health insurance executives this morning at the white house. before the closed door meeting, he told the ceos that their help was needed to make sure the transition on a new health care system was smooth. he said he obamacare will implode on its own unless it is fixed. >> we must work together to save americans there obamacare. people know that and everyone

knows that. to create more competition and to bring down the prices substantially. >> that meeting included leaders from blue cross blue shield, signa, united health care and others. 20 million americans gained coverage under the affordable care act. >> certainly shark a big issue for our nation's governors. some some changes could blow holes in their allowances. >> home run there's still some divisions within the republican party over the past for repeal and replacing obamacare. about a dozen republican governors have expanded medicaid in their zpats they're worried now that any changes to the affordable care act could lead them without federal funding and could lead their constituents

without health insurance. one big thing that was talked about at this meeting was a report that was leaked to some reporters that found that repealing and replacing obamacare according to the plan could reduce federal funding by 1.5 trillion over the next decade. states have to balance their budgets and they're worried they won't be able to do it. what did they say about that and the possible infrastructure project in. >> i talked to the republican governor about this. he said that'll president trump's men that infrastructure spending should rely on public, private partnerships may not go far enough. here's what he told me. >> you need the revenue to pay off those bonds that are at the heart of most public private partnerships. if they put in capital. they have to get repaid. they want to make 10 or 12 or

14% interest to compensate for the risks they take. that's capital. not a bad they know. i'm hopeful that the president will identify some sources of revenue or opportunities by which states can get a partner in working these public/private partner willships. >> president trump did indicate tomorrow. >> we will all wait for that. >> thank you. >> speaking of which, investors want to hear more from the president. if he doesn't deliver, the markets could react but that's not the only big event this week. >> traders are trying to figure out not just how it is playing out but also how it collides

will. what his associates are leaking out can't help but make the fed worried. leading entitlementes on change. third, a big statement as he said on infrastructure spending. it sounds like there may be an increase in deficit spending company. in terms of defense spending. it is likely they will do that as a notable risk. as they're finally getting to that 2% elusive target. it is far more likely the feds, that's what will lead the market. and it will be one day before the fed enters a blackout period. mean they must all be quiet. so this will be the last shot. strump proposing spending programs that seem to imply the

economy is weak and in need of help. but she's been arguing, it is in a recovery mode. for whit makes the trading community crazy. it was widely noticed that two-year yields were up sharply and one measure of the fed's likelihood to raise vats now 50% capability. they said sooner rather than later, meaning in the near future, in response to a question. that tells me that markets are convinced there could be sparks very soon between the president ask the federal reserve. new york stock exchange. >> what warren buffett is buying and what he's not and what he thinks all the investment fees are worth it.

it's an annual event marked on calendars. the letter to shareholders. this year it did not disappoint. warren buffett stuck on business ask said the country's best days are ahead. he touched on the climate and his eagerness to do deals. the most interesting revelation may have come during an interview today. he said he's boeen on an apple stock buying spree. you say you're not a technology investor but you're buying shares of apple which is now your fifth or maybe even larger

than that. >> i think we have convenient million at year's -- 59 million at year's end. >> so more than doubled. >> in the add 70 million plus. we bought that all by the time they reported their earnings. so it was done in probably 20 business days. >> and the earnings were better than people expected and the stock jumped as a result. >> i don't think they were that much better. >> the stock was up after the earnings reported. >> have you had times when you thought stocks were encreditably cheap. and times you thought they were overvalley uld. >> that's interest rates. stocks are on the cheap side

compared to historic valuations. but interest rates go up. if they bought at 230 and it stayed their ten years, they would regret not having gotten the stock. >> we haven't gotten to talk to you sense everything happened with wells fargo. we had some e-mails came in. please explain. >> i just keep was she a problem? a huge mistake was made at we s wells, to have it lead to crazy behavior. the big mistake was when they found out they didn't do anything about it. >> warren buffett. fortune's susie garrett, a

familiar face around here, has been covering berkshire hathaway for years. she joins us now to talk about it. >> we all know, he is a bind and hold kind of guy. once in a while he sells. ? walmart. he held it and at one point it was a $3 billion holding. he still has a big chunk but not as much as before. it seems like what he's trying to say. i am not a buy and hold investor forever. he buys stocks and says stocks. it seems like he's staying traditional ones like walmart are having a tougher time competing with online retailers. and he is will .

>> so that on passive versus active management. and fees associated with whatever time of management you choose for your portfolio. >> and you guys debate this every now and then. it comes up as debate on "nightly business report." this is with warren buffett. i think this time it was interesting. he devoted almost five pages in his 29-page letter to this topic saying these helen funds are charging very high fees. and he is encouraging they will to put in it an ultra low cost fund. and he has proof this time. he said let's see how the index does compared to a helen fund. >> i aspire to make a million-dollar bet with anybody. >> did he offer any new ensights, away, it would have

beener $143 billion deal. >> you know that warren buffett doesn't like hostile deals. he only likes family disease. he hasn't said he has anything in his back possibility but he is actively looking. berkshire hathaway has $86 billion in cash. $200 billion in revenue. we'll probably learn more about this at the shareholder meeting in omaha if not sooner. >> do you have your plane ticket? >> i'm ready to go of. >> sutherby's turns a profit and that's where we begin. the auction house sent strong

demand for art pieces made by david bowie. helping the company with expectations. they said the purchases in 2016 helped the overall results. it soared. zpoet video companies shutter stock said an increase in pay downloads led to a strength in sales. however, it was offset. they were down more than 16%, 43.02. >> ask the low pressure medicine delivered promising results. they said it plans to meet with the food and drug administration to discuss submitting a new drug application later this year. shares skyrocketed. meanwhile in flight internet

provider go-go reported a loss in its latest quarter. the results were still better than expected as the company been fritd higher customer use an. revenue did sxris that also surpassed analyst expectations. maybe that's why the stock was up today. and there was a profit, revenue did come in a little light but the forecast earnings and satisfies for the year above estimates. that sent the sales higher by 12%. >> orders for durable goods rebounded in january. according to the commerce department. shares rose 1.8%. it follows two months of declines. it stems from a big surge in demand for aircraft. had demand for previously owned homes dropped.

it fell nearly 3%. they are basically flat. the problem is simple. buyers outnumber sellers. >> they are hoping six months is the charm. that's how long they've been competing for a home. >> over the asking price. well over. >> they'll be up against emily leech who in a few months of looking for an urban home, feels like she's seen it all. >> we had a house that we saw that we really liked in south central los angeles. and we tried to make a move on that. and we got outbid. >> with the supply of listings, especially moderately priced

listings like this one at near historic lows, the stories are getting crazier by the showing. >> i was at a similar listing that had 66 offers. of course, only one person wins so 65 home buyers have to restart their home search. >> not just here in l.a. supply the low across the nation. home buyers are still well below. it is and not at entry level which is where all the demand is. close to a million entry level homes were scooped up in the housing crisis and turned into rentals. most investors are not sell because rents are strong. so buyers have to dimpb themselves. >> this you have to make annerer

introductory level. >> this is a line hf them waiting to submit offers. the house ended up getting over 30. >> persist ten is key. >> and patience. lots of patience. >> i think we have to look. >> the right one will come. >> for "nightly business report." >> so what does all of this mean for housing? now we're discussing how things are shaping up. good to see you. >> good to sigh. >> we saw the drop in impending home satisfies. apparently that doesn't worry you. >> for a couple reasons, january was a pretty bad month for sales, especially out west. home buyers may be pull back

little bit because of high rates. but third, and the things i am concerned about is inventory. it is really the elephant in the room when we talk about what's driving lower home satisfies. that will be the theme of this year's spring home buying season just like last year. that's the chile. >> they're in a bit of a catch 22. from the sellers' standpoint, they want to see the prices. >>er had we're really seeing the housing market grid lock because of that. when inventory is low, that's great for sellers. prices are high. you have more equity in your house. but most sellers also need buy a

house. if they are worried about finding another house to buy, they may choose not to sell but to renovate. so this is really one of the problems, this grid lock. a first movement project. >> what do you think will put the market home in balance? >> well, really three things. we hope new construction builds up. that's the only relief valve for the market when supply is low. believe now is near historic lows. we're not believe as many homes. many of them bought starter homes in the recession and that's where we're seeing more.

and third, prices. it is not good for the buyers but rising prices should entice more sellers to put their house on the market. >> we know real estate is local. the hottest markets are where? >> double denial it price gains of. >> we're seeing it in seattle, places like atlanta a. we're seeing price gains that are near five-year lows. so northwest and the southeast are where the sacks at. >> given the beautiful shots behind you. i can understand why he have one wants to live there. >> thank you. coming up, the key gr ingredient that wireless

companies need to make money. world's biggest show case for wireless devices is underway. this year some big shifts are taking place. john reports for us from barcelona, spain. >> this week as the technology world gathers here in barcelona for mobile world congress, it fees like rebelieve year. the world's biggest themes. and not the menning apps. and second, faster 5 g networks.

now just two years away. sitting at the intersection of those two are netflix. the ceo talking here about adjustments they're. >> we're big believers? streaming from the internet. sometimes our out of arrange, on the subway. even mobile band which is very expensive. so downloading, airplane is another great scenario where it is great to download something. >> virtual resalt here too. it doesn't have the buzz it once definitely it doesn't help samsung having an offyear. instead of usual presentation sunday to launch a new phone, it showed off a tablet and a pc. >> let's face it. this isn't what we've come to expect. the biggest tv maker in the

world. obviously, in the beginning, they apologized for laugh year's phone. and the end where they promised it is come this month. it seems everyone views them as a key ingredient to make money. >> you need own content to innovate in the types and forms of content you bring to the screen. >> barcelona. >> oddly, i didn't hear anything about my black berry. >> no. >> i don't believe for a expected it has zero% market shear in the world. >> that will do it for "nightly business report." >> see you tomorrow.

>> "nightly business report" has been funded in part by -- >> all it takes is a spark. one idea to take flight. the colonel to seek the unknown. to innovate, disrupt, to move us all forward. to explore a different perspective. we connect the world. its ideas. its capital. its businesses. the people that drive global economy. the future the isn't tomorrow. will a all it takes is a spark. nasdaq.

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