this is "nightly business report" with tyler mathisen and sue herera. ge's profit slump, so does its stock price and fixing the company now rests on the shoulders of the incoming ceo. it's summer. the mosquitos are out and now, a silicon valley firm is launching an e permit to cut the numbers of them an reduce disease. cooking up sug success. how a few hard working entrepreneurs became food truck millionaires. those stories and more tonight on "nightly business report" for friday, july 21st. good evening and welcome. an uphill battle for general electric. its challenges were magnified today when the company reported nearly a 60% drop in profit.

its forecast for the year, disappointing. the problems are well-known. its energy business continues to reel from low oil prices. its transformation back to a pure industrial company yet to take hold. investors were not pleased with ceo jeff imelt's final earnings report. the stock which he'll likely own in a mutual fund, an etf or retirement account was off nearly 3 how deep did do the problems at ge run? just take look at this. general electric the worst performing dow stock since mr. imelt took over in 2001. off 36%. turning things around will be up to the incoming ceo. but he didn't offer any details of his plan during his guest appearance on today's earnings conference call. dominique chu has more. >> if there's one word that could be used describe story. in some ways, while ge did

reiterate its current year guidance, incoming ceo john flannery spoke on the company's earnings conference call about my official start date is august 1th and a full review and be back to investors in the fall with my views. we're on track with this process. looking at everything you would expect. what is the market outlook, where can we grow, improve margi margins? what returns are we getting on investment? >> the -- means the next few months will be spent taking stock and evaluating each of ge's business.

date back to the boom. over the past baek dade, ge has made bigger bets on oil and gas including power generation systems, bets that haven't paid off and remain a drag on the company's revenue. >> people want to hear something about the 2018 outlook. i think they talked down the numbers here in 2017 a little bit towards the low end of dollar 60 and 70 range. i don't think people necessarily like that. i think we knew coming in they would be weak, so nothing's really surprising there. i think the biggest issue is that they kind of left us a bit in limbo without waiting for this november analyst day. trz. >> john flannery will have the daunting task of trying to turn around one of the most storied complexes in the world. but investors may have to wait

until at least november until any plans become evident. >> so, why is ge struggling and how could it get its measuring ojo back in business and the market? kevin quig is chief strategist with ac funds. >> ge is a company in transition. really, their challenges are twofold. number one, they're a company going back to basics, their core and that provides a real challenge in decyphering their numbers. the other challenge is their direction. it's creating a lot of uncertainty. >> they've gotten rid of the appliances, the lightbulbs and so forth and they're focused on infrastructure, energy, medical devices, locom it was affected by the lack of

appliance revenue. some of those businesses have injected volatility into the ge model and it's going to change the way the stock is moving forward. >> basically, the stock has been dead money for ten years or more. why ge? they've been trying to transition since 2001. since mr. imelt took the helm and haven't been able to execute quite as effectively and they've had an activist investor as well. >> it hasn't moved ge because they haven't stated what their plan is for the future, so i do agree that the pressure from trio forn, from the street is affe and the way they can clear the deck sos the state which businesses they want to invest in. but most importantly, as investor, what should i be looking at in terms of progress? >> do you own anytime your funds and would you add to it if you did. hold.do and we would consider

our guidance has been it's not moving down or up. it's just kind of ceo takes pla until the new plan takes place. you're right. you've waited ten years to take action on ge. at this point, the light is at the end of the tunnel. i want to give him an opportunity to see what the plan plooks like. >> he was in one of the most successful arm as of ge. and it has been able to execute in that division. i guess the question is, can he take what he was able to achieve i believe it was in health care, into the other aspects of this company? >> well, i think he has and the real challenge for him, he did do well in the health care part of the organization, but how clear are the decks going to be when he gets there. they've reduced about $650 million off their industrial expenses. the goal was a billion. going to have to continue some

things. >> and it was a drag on the dow and the nasdaq snapped. the blue 31 points to 21,580. the nasdaq was off two and it was lower by a fraction. their performance was mixed for the week. which saw all of the major averages hit hi l prices fell today after a report came out and doubted opec's commit m to its production cuts. >> oil prices and energy costs are a key component of the economy, an economy that hasn't been growing as fast many would like. but a few economists say there is a way to increase growth and maybe even get it above that 3% rate. steve liesman takes a look. >> a quartet of economists are arguing in a paper that the u.s. isn't stuck forever in the

growth, they say 3% is realistic if the right policies are pursued. they joined to say attaining 3% annual gdp growth rate is based upon enactment and implementation of a package containing significant tax reform. regulatory reform, budgetary reform and monetary reform. >> they're believed to be under consideration by the trump thi this business cycleions at was different in was the collapse in capital spending. that's been the biggest explanation of the decline in prugtivity. better tax policy enough to turn that around. tax policy can talk with hours workeded. but we've got to do it. can't just talk about it. >> productivity growth or how efficient the econn hours worke growth in the labor force are the lynch pins of overall growth. if you work more and work more efficiently, you grow more. the paper argues that the wrong policies of the obama administration are the key culprits in the u.s. slow down.

the congressional budget office and many economists think it capped below 2% and they're skeptical government policy can boost policy by a full percentage ps claimed by the authors of the parp. there are lots of credible studies that show cuts in tax rate will boost productivity growth, will boost investment a tiny little bit. putting in place policies that lead to better growth, that's one thing. the dangers of the trump administration a spend for thos .igher growth number deficits could surge and that can reduce the impact of the pro growth policies. even the authors of the pap r agree with that. >> on wall street, next week is a big one for earnings. 13 and one-third of the s&p's will get the quarterly results. there's one school of thought that earnings could drive the rally. why next week is a big one for

investors. >> earnings season, really get off to the races next week. we're about to enter the busy stretch for earnings to more than a dozen dow components reporting quarterly results. that includes a number of big oil companies like chevron and exxon mobil. industrial names like caterpillar and tech sites like facebook and amazon. that's just the tip of the iceberg. next week will be b crucial to watch because so far, analysts have high hopes for the season. second quarter earnings are expected to jump almost 10% from last quarter. that's up from 8% at start of earnings season from the second quarter. revenues are also picking up. that's why the stock market's up. more customers compopeting on earnings by more than unususualt the growth is confined to two t sector b the single biggest contributor and tech stocks have been the biggest winners so far.

tech earnings are expected to be up 16%. keep an eye on energy. everyone has gotten the price of oil wrong this year. jacked up estimates because they assumed oil would be $60 now, but stuck in the mid 40 range and those earnings estimates have been coming down. that's why energy stocks have been down this year. for nightly busine"nightly busi w is the administration's new communications director. he's the founder of the investment firm sky bridge c capital, a firm he has since expegted to begin his new job in august. leaving the white house meantime in august is press secretary, sean spicer. who resigned today and reportedly disagreed with the appointment. still ahead, the economy is changing quickly and our market

monitor has a few ideas of how you can . the government has decided to drop criminal charges against former jpmorgan traders in the london wales case. the defendants skrb unsuccessful. officials say they can no longer rely on the testimony of one of the former traders. the traders as you may recall, made risky bets which will resulted in losses of more than $6 billion for the bank. step outside in the ooempk these days and you probably have to shoe away a lot of mosquitos. they seem to be everywhere this year and some carry disease. it was just a year ago there was rising concern about the bug

born zika virus. now, there are some s und to li the mosquito population, including one being done by a big technology company. meg reports tonight from the florida keys >> here in key west, florida, scientists are working on a new f contr the world's deadliest animal. the mosquito. it accounts for more human deaths than any other animal on the planet. most due to malaria. here in the u.s., we have a mosquito that carries zika and other diseases. >> theory of mankind tells you mosquitos are bad news. >> scientists are trying to suppress numbers of those mosquitos by releasing more. it sounds counterintuitive, but these bugs carry a secret weapon. a bacteria. when these male mosquitos mate with whild females, the offspring don't hatch.

in its trial, key west is releasing 75,000 males every week. >> because males do not bite, they're harmless to people and so they can't spread diseases. >> these are not going to bite us. >> these are not going to bite you. >> 3,000 miles away from frez moe, california, a similar experime is take iing place on larger scale. through its health scyd yar is conducting a trial and no, this isn't software. google's working on actual bugs, releasing a million males each week. >> we've developed automation that can rear mosquitos, separate the males from the females and then release them in the field. and so, we've lowered the cost of being able to do this tremendous >> many may ask given the toll they take on humanity, why not just kill all the mosquitos? >> we could spread infertility. >> kevin studies evolution at mit, a technology calls the gene drive he says could be used to

force enher tans of genes that cause sterility, but he warns that technology is considered too powerful to be taken lightly. >> there are only a handful of problems where that are so severe, that it might be worth ewing this kind of gene drive. >> malaria, he says, may be one of them. but for now, tests here in the u.s. are starting smaller. just this one mosquito, and a technology that doesn't spread indefinitely. honeywell raises its outlook for the year and that's where we begin tonight's market focus. they raised earnings and revenue guidance for 2017 after it reported profit and sales that dpru and topped estimates. the company said t strengt in the late e quarter came from its performance materials and technology businesses. shares rose 11% to 136.35. slomer jay said it plans to take a stake in russia's eurasian

trilling. they attempted in the company in 2015 for $2 billion, but that deal fell apart. they posted quarterly results that were better than expect. shares fell a fraction to $66.53. sales slipped at colgate. earnings were in line with estimate and the company said it expects revenue for this year to rise in the low single digits due to uncertainty in global market, but the shares managed to gain more than 1% ending the day at 73.27. >> despite higher costs, moody's saw profit and revenue edge higher. the results were stronger than the full year sales and outlook. they jumped 4% to 132.57. the swedish equipment maker auto live said vehicle prek in chip and northern america would cause

organic sales growth to slow this year. the company reported earnings and revenue that came in shy of estimates and shares fell today nearly 8% to $106.78. a pet medication distributor, pet iq, went public on nasdaq today. the company priced more than 6 ceo said going public is the right move. >> we've got a lot of growth strategies. the company has put out there that are important. there's a large number of consumers that are unaware that they need to provide the kind of pet health car b available, so it makes us be available and in a market that we can do what's required to expand that, so, it's a time time for us to implement our grow strategy, bring consumers in, hopefully help pet parents. >> a good day for pet iq. shares up 45%. to 23.32. our market monitor has some names of growth stocks he says

that are all about the future. the last time he was on in januar he recommended black stone, which is up 14%. global x master limited partnership, that's down 5% and microsoft, which is 18% high er. joining us tonight is ron rdm financial group at hightower. ron, welcome back. nice to have you here. >> hi, sue. how are you? >> good, thank you. you say the future is in technology, utilization of the internet and by owe technology in health care. your first pick is the spider etf. xbi. >> right. there's about 90 companies. they're equally weighted. small, mid and large companies. space by the idb, but we see the action in the small an co we just saw a big cystic fibrosis discovery, xvi moved up on that. it was a holding. there's a lot of future in bio tech and it's going to be the

future and that's where we want to go. we want to go to the future. they dropped significantly last year, so there was an opportunity starting around january to get in here. it's got a long way to go. >> let's move the to your second pick, google. tell me about why yo we just heard from meg about verily. google's in a lot of businesses. you think about it. android, youtube. youtube, downloads 300 hours of video per hour. they are the future. they're into artificial intelligence, machine learning, they're smart management. we've got to look to the future. google's part of that future. >> it's a good >> and your third pick is bah bah. alibaba and you said it is amazon on steroids. tell me why. >> full disclosure, we were down for a whole year own iing that stock. market monitor's year ago. it's up 89%. still, i brought it back because it's got a long way to go. 57%.

they're the amazon of -- they're now got into al icloud. they're multinow. they're growing like a weed. the consumption in china is going to go from 42 trillion to 65 trillion in five years. th1.3 times the entire size of g there's so much growth. it's almost scary. >> we like that you come back to one. you mentioned a year ago and as you did with google, they've both done well and you come back to them. thi global shois your commit master x limited partnership, the only one of the ones that's down a little, though you point out that it's outperformed the energy sector. and has a nice yield of 7%. you still like it? >> sure. >> yeah. we still own it. we did trim a little because of opportunities and other things, but the yields a little over 7% and it's tax advantaged. but the key is that they're

pipelines. they're storage, processing. it's not oil. the same time period as we were down four, but half of our investor rs retired, so we search for yields other than bonds, which we think are not quoing to yield a lot. so it is a solid company. all the export and the u g to be a mange exporter of oil and natural gas. and we got to get pipes to the gulf coast, to the northeast. it's a great business. it just gets caugh but it's not oil. it's a great growing business. >> all right. on that note, ron, thank you so thank you. >> ron is with rdm financial group at hightower. >> coming up, rolling along and making millions in the process.

the federal trade commission is reportedly looking into whether amazon's discounts are as good as they seem. as first reported by reuters, a consumer watchdog group said the retails id and fictitious previous prices to mislead consumers. the ftc had no comment, but amazon refute d the report calling it deeply fl fighting a immediate recall of ta kata air bag inflater this is mon added n vehicles to a recall that already effects more than 40 million cars. these inflaters were once thought to be safe, wu but the

government says they pose a risk nreplaced. ford says there's no data suggesting that a recall is needed. lyf trt is now building itsn seom believes that by 2021, the majority of its rides will be in autonomous vehicles. today's announcement marks a shift in that company's strategy. in the p it ha been content to partner with automakers and tech >> from fefl driving cars to food truck, there are a growing number of of them. for entrepreneurs who love the cook, the route is a lot less expensive than opening up a restaurant and food trucks are turning out to be very lucrative for the best operators. kate rogers has our story. >> when ben and his partner started making their ice cream in green point brooklyn in 2008, they had no idea what a hit it would become. >> there you go.

>> with just $50,000, it hit the streets of new york city looking for the perfect location. >> we drove of green and by the time we had opened the window, there was a this is a puente butter chip. sfwl and the crowds kept coming. today, the company has six food trucks and nine store fronts in new york and los angeles. their ice cream features unique flavors even retails in whole foods in the northeast and california. and the business is on track to do $20 million in revenue next year. rat trucks like this one have traditional restaurants over the past decades. but that dprout is expected to slow in the years regulatory h. >> it's very challenge iing to e th in other markets, it's much better. in los angeles, it's very farouk friendly. >> in austin texas, an attorney launched his food truck in 2010

after he couldn't raise the capital he needed for a brick and mortar restaurant. >> bigst challenge was to stay strong and try to run this paycheck. if you're doing it, you've got to be ready for an all out war on the street basically. >> he won that war eventually opening a restaurant featuring his asian and southern influenced tacos. he still takes his two trucks out for lunch and catering and expects to do more than $3 million in revenue this year. >> you are all set with your heart attack. >> marty lieberman also went that route after her mac and cheese truck became a hit in t fir lph w months of being on the truck that our first catering jobs o lucrative.didn't e sxwl she and her sister launched a store front, still using the truck for catering and private events. the truck booked up through 2018 and her business is set to do

about 1.5 million in sales in 2017. >>yo los angeles, england. we get requests from brazil. people love o products.hear how >> you have a wonderful day. >> i'm kate rogers. >> and to read more about food truck millionaires, head to our website, nbr.com. >> every time we do a food story at the end of the show. dinner time. that does it for us. thanks for watching. >> thanks from me as well. we'll see you back here monday.

this is bbc world news america. funding of this presentation is made possible by. the freemen foundation. because our foundation pursuing solutions for america's. sonny picked. mmhm. think about. brown house on long. is on the wall i think on this alright