this is "nightly business report" with tyler mathisen and sue herera. >> august surprise. the dow breaks through. 22,000 this time. history though says august is a tough month for stocks. could this time be different? >> trade tensions. washington l on china. but could the move trigger a trade war between the world's two biggest economies? >> and fair game. a new mobile game prom take the u.s. by storm, but some are concerned privacy and safety aren't part of the ground rules. all that and more on "nightly business report" for wednesday, >> good evening and welcome. well, what's a day on wall street without a record?

pretty common place these days and today was nodifferent. the only thing that was different was that the dow breakthrough a milestone. hit iting and closing above 22,0 e time we mentioned last night, apple's strong earnings likely propelled the index to a record csi numbers. the dow rose 52 points to 22,016. most of the gain was thanks to a 5% rise in apple. nasdaq was flat and s&p 500 tacked on a point and with the dow above 22,000, it keeping in mind that this is is historically a bad month for stocks. but as bob pisani tells us, the hope is this time, there's a >> could we get an august swoon in august is beat a typically a lousy month for stocks. the second to worst month of the year. it's only been up five times in

the last 20 years. that's terrible. e hope is that any cross at taking at technology after apple's strong numbers will clos to rotate to the forefront. rotation centers rrnd two groups. energy and financials. is this going to work? maybe. for oil stocks to get moving, we need oil c or $50 a barrel. we haven't had that. but after being stuck in the 42 to 45 range for several months, oil is trading at a regular 45 to $50 channel and energy has gun to respond. they're up there, july low, but it's still tentative. the key to getting financials going is to get a modest breakout in short-term interest rates and get president trump's administration to talk more about deregula key, so expectations for bankses like bb&t since earnings ended,

but this, too, is is tentative. ownership of bank std not a lo of confidence in the trump agenda at the moment. that's the biggest problem b. another sign, sever sub sectors that have been beaten up this year e starting to show signs of life and they may provide new leadership in august and september. for example, at&t and verizon have been great and the retailers like target and gap are finally starting to get over their amazon funk. see if we can pull out another rally for the third quarter. i'm bob pisani at the new york stock exchange. >> now, to washington where it seems the trump administration wants to g on china. over its trade practices. multiple reports say the white house will open an investigatio privacy policies, which require american and foreign companies who want to break into the c chinese market to share their beijing. it's believed the move is to force china over north korea's

nuclear program. it could result in tariffs or other penalties, but could als perspective is the president and founder riddle research group. welcome. you understand how the chinese think and how they react. taken from one side to the other. we've got lots of potential commercial disagreements with them from how we deal with chinese companies that want to invest in the united states to the dumping of steel or aluminum. do you think if we get tough using that stick willmercial cause them to be more helpful with north korea or not? >> i don't think so. they see the two issues at very, very separate. e in the same sentence at all. someone in beijing said this this week. they're our third largest market. they're a huge source into the

united states. 98% of laptops in the united states. 75% of cell phones. 93% of christmas lights and deck races. 75% of cell phones, so it's a huge, that's a huge apple cart to think about upsetting. >> you say that this actually could be a very good time with the people's congress coming up for the u.s. basically to gain some concessions from beijing. but you think's going to get in the way of that. >> i think that's right. rea things rt to be calm and productive and positive into this very important 19th national people's conference in mid october. this will cement president xi's next five year term. it's really going to build his power, so he's see things smoothly and calmly in the coming weeks. unfortunately, i fear lot of thing, most notably,

north korea. >> we have some beefs with china over their trade practices. they don't typically welcome our prodh a degree of resip row calty that we would like. >> that's right and it's been true for a long time and it's something many administrations have had to face, but they face appro this.ith more of an even privately, diplomatically, maybe not so publicly. something that will rub beijing the wrong way. >> what do you think the odds are that we would end up in a trade war with china? >> i hope they're slim because it would be a disaster for both sides. actually more for the united states. it would cause a lot of inflation. dislocation of suppl and china has many other markets they can deal with. in europe, across asia and other developi countries. it would be messy all around, but especially ugly for the united states. >> thank you very much for your help tonight. president trump signed into

law new sanctions against russia which congress passed last week as a response to russia's possible cyber attack and interference with the presidential election. the new law allows congress to stop any attem by the president to ease the sanctions. russia called the sanction the equivalent of a full scale trade war. the president said he favors tougher measures, but calls this legislation flawed. it was a busy day for mr. trump. he is now supporting a bill by a pair of republican senators that would cut the number of legal immigrants come lg into the country by half over the next decade. the bill would prioritize high skilled english speaking immigrants. the president said the bill would be beneficial to the u.s. ec >> the raise act will reduce poverty, increase wages and save taxpayers billions and billions of dollars. it will do this by changing the way the united states issues green cards.

to nationals from other countries. stories is john har woowood and john, the white house has said that the russia sanctions bill for days, the president said he would sign it, so what was new about his action today? >> what was new today, sue, was th p put out an extraordinary signing statement with this saying he thought it was seriously flawed. but they were clearly uninstitutional provisions in it, but he was signing it any way. for purposes of national unity. now, in reality, the reason he signed it was ther overwhelming veto proof margins in both the house and is that the. this was shoved down his throat, but hee a signal that he is not been moved on the issue of whether russia should be sanctioned or not. he went along with it, but all along, he's had a conciliatory stance toward russia and said this would inhibit me from ma

making deals. y te just mentioned. that is the shift back to immigration. mr. trump signature issue. what does this raise act purportedly do? >> well, interestingly, tyler, even te n las year was on the president's fight against illegal immigration, he also immigration. and this bill would embody that policy. it's sponsored by tom cotton and david purdue, two southern narts and they want to reduce the number of family members who can be brought in with green cards and generally, cut immigration levels. this is something that's popular with the base, but not so popular with american business. >> does it have any chance of becoming law? >> well, it does not have a good chance of becoming law at this opposition. you' heard senators say representing both agriculture and hospitality stakes, say that by cutting legal immigration this this way, you're going to

choke off the workforce we need as the economy is looking to grow in the future. one other aspect is one reason the american economy needs more labor is that we are waages. medicare and social re security without workers to pay the taxes to support those policemans. everythi programs. tha you. we'll leave it there. john harwood in washington. >> there reall been a summer slowdown, but even as would be home buyers crowd into open houses, some are actually giving up. diana oleic tells us why. >> demand for housing is still high. but the number of available listings continues to drop. even now in summer, when housing is supposed to slow down. not the case as demand index from red fin shows the same number of buyers requesting home tours in july and june, but

number of offers written dropped , down 11%. that is showing up in the mortgage demand as well. applications for a loan to purchase a home dropped last week and have been down three out of the past four weeks, this as mortgage interest rates hover near five-week lows. it's not the rate, it's a lack of everything affordable to buy, and not just in the hottest markets either. the national supply is now at the lowest level sin1982. that's because homebuilders dropped off the map during the recession and have still not returned to even normal historical levels of production. even the number of vacant homes nationwide is at a 17-year low. again, not demand, but supply. the worse this situation gets, the higher prices will go, which will sideline more first time home buyers. i'm diana oleic in washington. >> coming up, amazon goes on a hiring spree. >> amazon already has prime day, now, it has jobs day.

the xaep is gearing up to hire 50,000 employees in just one day. so, how was the turnout? we'll tell you on night "nightl busi we got a snapshot of the labor market today when adp said businesses added 178,000 jobs last month. that was modestly below what economists expected. the official jobs report is out on friday. expectation is for 180,000 new. >> while wall street waits for that report on friday, an amazon is getting a jump on things.

they're holding their own jobs day hoping to fill tens of thousands of positions today alone. we're in robinsville, new jersey. >> this isn't your typical job fair. there are hundreds of candidates and thousands of open positions, but just one company is doing the hiring. amazon.c. the e commerce giant is hosting what it calls the nation's lat jobs fair at 12. 50,000 jobs are up for grabs, some of them filled right here on the s >> it is a great opportunity, a great experience and they're only hiring 1500 employees and will be one of those. >> the line of candidates at amazon's new jersey fulfillment center stretched around the building as candidates waited for their turn to apply to the warehouse, interview, under go a criminal check and drug test and hopefully get an offer. amazon's hiring frenzy underscores the company's growth and consumer's shift to online

shopping at a time when traditional retailers are closing stores and cutting jobs. these applicants have been waiting here if for hours to apply for warehouse job, but amazon automates more and more, question is, will these jobs be here a few years from now? we asked john olsen about the role of robots and amazon's warehouses. >> we've had automation in our site frs yearses and we continue to have large numbers of employees in those sites as well and so, we'll continue to 50,00t now is testament to that. >> while robots may work with tandem with humans for now, amazon is developing its own technology to expand automation. at a grocery store in seattle, it is eliminated the casheir. they are breaking the top top last year.

>> the ceo of monday leez steps down and that's where we begin . following the company's revenue, the maker of oreo cookie says the company's chief executive would retire this year. she will be replaced by the ceo of mccane foods. shares rose 1% and all the oreos she can eat to:10. qatar air way says it's no longer seeking a stake in american airlines. as much as 10% that would be, a move that americans call puzzling. but now, qatar says the investment no longer meets its objectives. shares of american were off 1% at 50.45. and hasbro has reportedly ended talks with the movie and merger.nment company, lions

reuters said the toy maker stopped negotiations after o parties couldn't agree on a price. shares down 1% to 104.77. strong demand for new products helped fit bit grow sales and beat analysts estimates. the wear bable able device make also reported a narrower than expegted loss. they finished the day the regular day down just a tick to 5:07. some of the largest ensurers we mixed. met -- aig also reported lower income, but those results still topped expectationexpectations. met life ended down. and after the bell, tesla reported a loss, but it was better than what wall street was looking for. sales climbed higher and topped estimates. the company said production on the new model 3 is on track to meet targets and tesla expects delivery for the model s and x

to increase in the second half of thi. tesla shares initially were higher in extended hour sessions and they also ended the regular lay up nearly 2% to 325.89. and the transportation system first conceived by elon musk hit a new benchmark. its fastest speed yet. in the nevada desert, hyper loop passent a top speed of nearly 200 miles an hour in about five seconds. ev get it up to a top speed of 750 miles per hour. the company hopes to have its first functional system by 2021. if you are one of the millions who bought a used car or truck this year, you're part of a huge shift in america. used car sales are surging to record levels, while interest in new models has cooled a bit and as phil tells us, that has industry veterans steering in a new direction.

>> nearly new vehicles are once again the hot models in showrooms. this year, americans are on pace to buy of them. an all time high. now, auto nation, the country's largest new car dealer is opening its first used only store. zpl when i look at auto nation, three four years from now, are preowned business will be larger than our new vehicle business. don't get me wrong. we're groing to run the m manufacturing play. we're going to give away as many new cars as we can where we're profit, that's preowned and customer care. >> prior sales of new cars and truck cooling off? in part, because so many people have bought so many new vehicles in recent years, there's less demand and the same time, a glut of used vehicles rolling into dealerships. >> because of all the lease programs started three, four, five years ago, we now have three and a half, four million, 4.5 million vehicles nearly new

coming back to marketplace and consumers are saying well, that's a great v >> for auto dealers, the used market has been lucrative beca older cars require more work, but these days, there's another reason owners are bringing their cars in for servicing. they're more complex. loaded with sensors and numerous high features, so doing a repair at home is not as easy, which is why awe nation's used dealerships will not only feature more service base, but also a collision center and wholesale auction lane where other dealers can buy and sell used cars. auto nation is not o tnl dealer that stores that sell only used models. group one is doing the same thing and of course, car max continues to expand its footprint around the country. proof that preowned or used vehicles, more popular than ever. >> last week, we told you wells

fargo apologized for issuing auto insurance to more than half a million people who didn't need it. now, new york's regulator has issued subpoenas to a pair of wells fargo units over this y n issue. l i the past year.as the first dealt with nearly 2 million bank and credit card accounts opened without permission. up next, why some are saying a new mobile game craze coming to the u.s. should also come with a w. playing games on your

senator phone is big money. the industry is expected to rake in over $100 billion this year and now, there's a new hot game coming to the u.s. that could be be even bigger than last year's pokemon go craze, but is the price your privacy? >> we've got big things planned. >> not long before their new game drops in the u.s. and founders are hoping to snatch is the next pokemon go. >> the response is amazing sxwlchlt the gaming market expected to top 130 million by 2021. >> we're use iing the technologn augmend geo location. >> they call it a virtual treasure hunt, but instead of searching for digital monsters, players hunt for real prizes and cash. the trick is holding on your prize for six hours while other player havs have the chance to snatch it away. >> we're hoping the first prize will be a car. >> snatch says its partners

include major brands in the state, but won't release details t just giving waway free things. about bringing s brand together and developing that relationship, which then in turn, delivers the actual brand messaging for each brand. >> but privacy experts warn against blindly downloading any app. >> in exchange for some entertainment, we are giving >> data that could include your contacts, photos, location history, e-mail and more. >> the social networks and applications are collecting an enormous and larger amount of data. than any active intelligence agency in the world would arguably collect on people. >> and he says most have no idea how that is being used. frg snatch what they will ed in not do with my data, rather than what the possiy plan on doing. >> a new privacy policy is in

the works for the u.s. launch. and data's only collected to make the gaming experience better. >> we don't give anything out to the brands that we work with. >> beyond privacy, former lapd chief says that gaming apps like this are a concern >> if they're put in the hands of the adversary, they could use them where large groups would gather. >> i think parents ought to be orienteded to what the possibilities and poeshs are of luring kids to certain locations. >> and b he says the big thing to tell kids is to watch your surroundings and don't keep your head buried in the phone. you can download the app now, but you can't really play or win prizes until they launch later this year. for "nightly business report", i'm and ra denning. take a look at shares of amc losing more than a quarter of their value after that company said last night it expects a big quarterly loss citing declining industry box office trends. some of those trends could be

the emergence of new options for moviegoers. julia takes a lo pain d what it's giving the industry. >> a weak summer box office and rise of opse netflix are taking their toll on the nation's largest theatre chain. amc warning isn't just confined to this quarter, saying the future doesn't look like it will be much better. the company forecasting a quote >> you have a very tough august and coming, so i think they're trying to get out of the curve. it looks like backing into the number, we get to like a minus 15% for the box office in the third quarter and that will probably have an impact on cinemark and regal as well. >> the company also unveiling a cost reduction pricing, promotion at incentives and reductions in operating hours. amc blames a u.s. box office dragging its ticket revenue down almost 4.5% in the quarter. the company also taking a $203

million charge on its marketing company. amc's pain echoed industry wide box office decline down 8% so far this summer. the result of a number of ritical failures, as well as alternatives, such as netflix. its shares are up more than 90% in the past year as the company contins t expected. but the handlers says moviegoing will hold up over the long-term. >> there's been expanded entertainment options over 20 years. we continue to reach new highs. i still like the industry. i still feel good about the prospect frs growth over the next hear more about the plans to battle the rise of streaming when it releases its official second quarter earnings and holds its conference call on monday. i'm julia boorstin in los angeles. >> we both have teen and preteen if it weren't for taking them to

a movie they want to see, i wouldn't, there's not much i want to see. >> i know, that's really true. >> i'd rather stay home and watch something off of on demand or netflix. >> i think that's very true and even my kids are not finding as much at the box office as they have previously. >> and so much of the movies these days are the extensions of existing francg to do? that's "nightly business report." thanks for joining us. >> thanks for watching and we'll see you back here tomorrow

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