this is "nightly business report" with tyler mathisen and sue herera. record finish. stocks swing to new highs. but it wasn't because of a rally in bank stocks. beat earnings e of the expectations. reinventing america. how the economy's mid size cities across the country are being shopping. and the world is your lobster, especially in maine, where busi booming. those stories and more tonight on "nightly business report" fr, july 14th. good ooempk and welcome. the dow closed at its 25th record of the year. s&p 500 also at a new high.

we begin tonight with a big quarter for some of th jpmorgan, citigroup, wells fargo n expected earnings.l reported that's the good news. but there's more to it. and it's important to ups what's happening in that sector, which plays a vital role in the econom activity for both households and businesses. today, those better than expected earnings weren't enough and they finished lower. >> all four banks reporting today. j.p. morgue p, citigroup, wells fargo and pnc beat earnings expectation, so why did they trade down today? there were several issues. first, trading activity in stocks an bonds were below expectation. you can blame that on the low volatility. trading is a major source of revenue, from other bank businesses second, xhek data was des pointing. inflation is sfil belstill belo

the fed's target mean banks wil make profit, which is the difference between interest earned on loans and paid on deposits. expect analysts to lower expectations for the banks i th. finally, it was a seasonal phenomen phenomen. mov higher in the mon before they move earnings. generally, flat the whole month after. even as the rest of the market moves up. it's a typical phenomenon for. investors will typically buy on the rumor and sell on the news. for "nightly business report," the new york stock exchange. >> on wall street, stocks rose to those record ons upbeat expectations and the s&p 500 rory recorded its best weekly performance since late may. the dow jones industrial avrnl advanceded 84 points to a closing high of 21.637. nasdaq was up 38. s&p 500 added 11 also a record.

for the week, all of the major indexes gai at least 1%. you're rich er at the epd of th week than you index today was walmart. the company got a vote of confidence from goldman sachs, chbs the retailer was equipped to hold its own againstson. >> how does walmart stack up? we dug up numbers put them side by side. walmart founded in 1962, had more than 11,000 stores in 28 countries and more than 2 million employees. still the world's biggest company by sales. more than $485 billion worth last year, but the five year sales trend is relatively flat. tt number's been than $1 shrinking. it was 17 billion in 2013. walmart's total market cap or the value of its outstanding shares is more than $226 billion.

amazon, the online specialist, founded in 1994, just made a huge slash. anoupsing its intention to. it most krebt sale, more than $135 billion and growing. up more than 20% a year since 2012. net income rose more than 300% to more than two and a third billion. with its stock p $1,000 a share, amazon's market cap has more than $478 million dwarf walmart. >> so, which giant will have the competitive edge with consumers in the long run, here to discuss that is tom, the chairman and ceo of retail consulting firm, welcome back. >> absolutely, tyler.

walmart is going to have 140 million people. about 66 million subscribers for amazon. amazon will offer convenience, first, price second. it's a marvelous time to be in retailing. >> well, there are some who would disagree saying there isn't room for both of them because amazon seem tobs b k ea. but the cultures of those two companie. to me. maybe that's how they coexist. >> well, they coexist by the fact that some shopper rs going to buy online and some want to go to stores. we're not going to see the demise of stores the way many predict. i think there's a st of these g will are not only going to survive, but prosper. walmart bricks mortar, unparalleled. amazon is to america online

unparall so talk to me about how the two companies are moving. walmart, obviously, by its in s investments in recent years, has its online om any channel approach. at the same time, amazon buys whole foods, which is a brick and mortar store. they're opening their own bookstores in some neighborhoods. talk me through that. where does that lead? >> start with walmart first. >> with their acquisition of jet.com is in the sweet spot of how to play digitally. amazon is a digital technology company moving into bricks and mortar, recognizing that digital equals physical. both these organizations are tamting to understand how to balance their needs. do i want to go home or.to the

store. >> who do you think strategically has a better plan, longer term or do they both have a good plan? >> sue, they both have a great plan. in the past couple of years, walmart has done a bang up job on c the in store ek appearance. amazon has done a bang up job on anticipating what should be in the market f folks are playing retail iing from a different pa f the effectively. >> do you quickly, do you worry as sue pointed out in a little set up piece that walmart's profits are declining, amazon's e growing, which is probably why it has the bigger stock market value? >> well, let's talk about prices declining. we've been in si in food deflation in -- >> profits declining. not prices. >> i understand.

so, walmart kopts to make investments in various assets, so does amazon. in amazon, when we look at what they're selling, it's not only groceries, it would be fair to o walmart.e grocery profits of be a little bit better balance from our perspective. >> have to leave it there, tom. appreciate you being with us twice in a week. >> my pleasure. bye. >> a democratic u.s. congressman is calling for a hearing onson's plan to acquire whole foods. he wants to look into the deal's potential impact on customers. in letter to the chair of house judiciary committee, he said the purchase could impact neighborhood grocery stores. the deal must be approved by u.s. antitrust regulators. retail sales fell for the second time. commerce department reports a e decline of .2% in june.

expectatio for a sli increase. that report also shows that sales at nonstore retailers from amazon and other online stores were up from last year. the fast growth in online shop iping has led to the construction o help retari deliv the items you ordered quickly and all that build iing is transforming town and cis america. a aditi roy is in tracy, . >> downtown tracy, california, is busy. bustling and full of businesses. its mayor says these shops and restaurants are are benefitting from what's happening on the outskirts of town. the industrial sector of tracy is booming centers from e commerce companies like amazon and crate and barrel. >> pretty much anywhere from here. every sort of amount of time.

>> drive through this part of town and you'll see the massive s d e streets. fedex and safeway are among them. tracy, about 70 miles from san francisco, is just one of the country's hot spots for fulfillment businesses. other top regions include central new jersey, lehigh valley, pennsylvania and louisville, kentucky. mid sized cities right on the periphery of major metropolitian areas, where land and operating costs are cheaper and labor is ample. here in tracy, one expert estimates fulfillment centers have brought up to 10,000 new jon the last years. it felt to diver fi the economy a town once kno as a railroad hub, the local headquarters for southern pacific, then hines and holly sugar moved into tracy. also known for agriculture. >> those businesses have moved

on, different type os businesses have come and you start to see the distribution because of our location. >> the burst of new business has prompted t c this drone video showing the city's available commercial land entice more companies here. and while some critics argue d that fulfillment center jobs which average between 13 to $15 an hour provide enough to raise family, tracy's mayor says they still add economic value. >> the people that come here in also does is you know, tr it brings the people in tracy, it increases our daytime population. which in turn helps ut attract more businesses like retail and xheshlg. >> he tells me in the last quarter alone, the city's sales tax revenues went up 35%, which is helping build for "nightly business report," tracy, california.

still ahead, want to be b a landlord? a new company w first time home buyers are showing more interest in making puchls. googles relating to buying a first home are up this year when compared to a year earlierment and the national association of realtors says first time buyers accounted for more than 30% of all home sales in may despite rising prices and concerns over afford bable pi. >> seems like everyone you talk to today is is toying with the idea of being a landlord and why not. demand for rental homes is high,

but so is the risk. chae that. diana oleic has our story. >> becoming a landlord today looks like a no brainer. there are lots of companies to help you buy, manage and renovate rental homes and with home prices sky high, demand for rental homes is stronger than ever, but not every property will offer great returns and some could offer great risk, especially if small investors continue to do it the old ashioned way. backyard. >> b about 70% of the rental homes are owneded within an hour drive of where the investor lives, which is a horrible diversification strategy if you think about it. >> so, roof stock, an online marketplace for single family rental homes is launching a new index. it rates every neighborhood in the nation for risk, 72,000 separate sets of tracks with about 1500 homes per track. >> what we've done take p that data and broken it down into little pieces and analyze d a lt

of things that influenced the things like you know, income levels. percentage of home own. bachelor degree, ploim, things like that. >> competitors in the rental market all offer data ond investor returns for local markets. but they don't get a granular with the risk. their idea is to open up the nation's neighborhoods to all investors everywhere and give them a peek inside, especially as more and more novices enter the market. >> it's a new landlord nation where everybod their basement. when somebody moves up, they don't sell their own place. they rent it out to somebody else. >> whether it's our own house or one in a neighborhood nine states away, as an investor, weighing the risk is is just as important as calculate iing the

reward. r "nightly report diana oleic in washington. >> to read more about at risk, head to our website. nbr.com. present may be looking for investments from two corporate heavy weighte "wall str says the telecom company met with billionaire investor warren buffett and separately with john malone regarding a potential the details are unknown, but the report noted that buffett could put mo into a transaction. bloomberg also reported buffett is considering vesting as much as $20 billion in shares jumped to $8.55. anthem is suing therapeutics for alleging the drug maker lied about patient's diagnosis so it could receive reimbursements. they said the scheme cost them more than $19 million in p

payouts. they have been und ongoing investigations for sales and market prakties. anthem shares were up a penny while shares fell 5% to 12.15. astrazeneca has remained tight lipped on a report that said the ceo was planning to stay in his role at the company for the foreseeable future. this news contrasts with earlier reports that the chief xhexecut inteva. astrazeneca rose more than 4%. shares of teva down roughly 4% at 31.90. and shares of a ten networks fell after the company shook investor last night with its preliminary result. weaker performance in its north america and japan markets would cause sales this quarter to come in nearly $10 million lighter than expected. the company said profit would come up short and shares of a ten did today, plunlging 16% to

6.95. it is time for our market monitor, who has names of three companies he said raise dividends at a higher rate, last time he was on this september, he recommended american tower, which was up 20%. higher by 6% and cvs, down by 13%. joining us is mark spellman, manager at alpine fund. welcome back. nice to have you here. sfwl thank you very much. let's get to your picks because one is still on the list and that is lowe's. adding to positions here. >> yeah, lowe's has started tout year doing very well. i think somewhat at the expense of sears when it comes to appliance sales, but in the last month, they've been caught up in amazon is is talking on the worries. we think lowe's is going to be able to compete well with amazon going forward. it's a company we think is going to grow earnings by 15% moving forward. the dividend is 2.1%. they swrus lamonth raise it 17%.

>> take a look at cisco, your second pick. i am impressed by a 3.7%-year-old on that stock. less impressed by its historical returns over the past decade. >> it's a company in transition for sure. e networking world and it's having a harder time transitioning to the data driven clould world. you may have to wait a while, but that 3.7% you mentioned is a comfort bableable thing to sleep at night while you're waiting. in the last 14 months, it's at 38%. that's amazing if you think about it. we like the stock, we think it's too cheap right here. >> speaking of dividends, the.5.4% yield on at&t has made it quiteo c to ignore. it's too big to ignore. people are worried about the wireless business. we personally think there might

be a before the iphone 8 hits this fall. that may be why the stock has been underper foling. it's down about 15% this year. add the time warner communication deal that's ed close at the end of this year. we think that's going to be good for the name. for the stock. we like the stock. >> talk about one of your pick frs the last time, cvs down this time. what do i do with it if i bought it? we think you step aside. that's a name we puchlsed last year in september prior to the trump administration. they've made a focus on drug price i s phay benefit management. t r up in the air how that's going to fall out. all we know is the rhetoric is heavy against any kind of drug pricing pushing companies to lower prices, makes us pause a aside. >> very quickly, generally speaking, do you like the market at these levels? we're hitting records on a fairly fre basis. >> i think the big news this week is janet ye saying we've raised rates thee times.

and now, a pause. some of the data is soft. housing, home improvement, we're optimistic on earnings going forward with historically very low. e historically, low rates when you think about it on the ten year 2.2, we think we're still opt optic. you earn a good sweet spot here. >> all right, on that note, thanks so much. >> thank you. coming up, the big catch. >> lots o experiencing record harvests. we'll tell you how they're opening new markets and creating

latest report card on airlines shows passengers arriving later, complaining more. still, the industry is enjoy in . rebound thanks to strong >> with flights high, not surprising to see them arriving on time. four out of five were on time in may. some airlines did much better. hawaiian airlines had the highest on time rate in the industry. just ahead of and united. spirit, jet blue and virgin america struggled in may. but the real story for pass swrers this spring swing was the scrutiny airlines were facing for high profile altercations.

including a family being bumped from a delta flight and releasing their video of the confrontation with the flight crew. that story in early may dominating the headlines, which could explain why passenger complaints in may jumped 56% to the same time in 2016. it was the second straight month where d.o. t the t. saw a surge complaints, but whatever americans have with flying, t boar fact, demand remains stron. which explains why the airlines are exexpected to report solid profits for the second quarter m next up, united airlines, which will be reporting its second. phil lebeau, "nightly business report", chicago. >> are you traveling to maine? well, if the answer is is yes, you'll probably dine on some lobster. which is seeing record demand and not just in the u.s. u. international consumers have developed a taste for it as well. and that means big business for lobster men on the coast of

maine. contessa brewer has our story. >> jack thomas has been lobstering since he was 14 years ol and though he has a day job as a financial adviser, in the morning, he's out checking his really hauling them in. >> the last couple of years have been record years for me. >> u.s. lobster men tuiasoso their catch, bringing in 31 million lobster, more than 80% of that came from maine. in 2012, a historic harvest since prices plumeting. the industry responded with a big push into new foreign markets. >> china saved our bait. the price was at a low. i think the state average was 2 pbt 69. we opened the market over there and it became very popular within the middle class. >> and demand in china keeps

growing. from 1.3 million lob b center in 2010 to mo a pound and a half lobster will fetch as much as $10 at a nigh cheese celebration. its name means dragon, it resembles the creature and when cooked, turns the lucky color, red. they're also marketing maine lob a cle of quality protein. >> if we want to continue to develop those market, we have to provide a premium product. that means a lobster that arrives whole, correct temperature and has been hydrated. doesn't spend too long out of the water. >> they're conquering the lodgist cal challenges, controlling trabz it time, temperatures and delicate haneling. and now, the industry pooufing more processed and frozen lobster. >> there's a lot of investment in processing what a processor does is take a live lobster and ek tend the shelf life of it.

>> and now, the industry is teaching chefs how to use that product in innovative dishes and it's not swrus about finding new international customers for the lobster. the industry is also t. >> people care about who catches their food. our lobster men are are some of the best people on the their sts a lot. >> so they fly to events around the country to meet chefs face-to-face, talk u iing about sustainable thety. with lobster men throwing back lobster and lea as other e egg bearing fema industries overfished, predator specieses like haddock. >> the whole industry started with by you know, fathers, son, daughters, getting into the business. and teaching here, this is how you do it. this is the proper way. take care of it so you can have it for tomorrow. >> lobstermen are hoping that by

means this will be an n an industry that thrives for generations to come. i'm contessa brewer off the coast of maine. >> a habd hands on reporter there. >> so beautiful. one of my maiffavorite states. that will . th for joining us. >> thanks from me as well. have a great weekend and we'll see you ba.

. this is bbc world news america. but again this presentation is made possible by. the freemen foundation. and coal fuller foundation pursuing solutions for america's neglected me. planning a vacation escape that's relaxing inviting. and exciting. is a lot easier than you think. you can find it here in aruba. families couples and friends can all find their escape on the la