this is "nightly business report." with tyler mathisen and sue herera. >> the dow keeps its win streak alive. it's the summer of calm overseas workers at a mississippi auto plant are deciding whether to unionize as the uaw tries to make a big push into the south. >> generic drugs are getting cheaper and creating bad news for the biggest player in the industry. those stories and more tonight on thursday, august 3rd. >> good evening and welcome. the dow eked out a gain a. just a little wurngs but good enough for a record close. the index's seventh straight. stocks did see a slight pullback late this afternoon on a report

that robert mueller has impanelled a grand jury in that ongoing russia investigation. but the pullback in the stock market was small and the market for the most part did what it has been doing. ignoring the drama down in d.c. final numbers look like this. the dow jones industrial average rose nearly ten points to 22,026. nasdaq off 22. the s&p 500 fell five. while the markets were mixed today, the trend has been higher. but what has been driving stocks? there are a few schools of thought and one is that the global economy is strengthening. the outlook upbeat and that europe for a change is having a crisis free summer. bob pisani looks at how u.s. investors are being helped by markets worldwide. >> the global markets are improving with the global economy. in the middle of an economic turn around. spanish is up 12%.

up more than if it wasn't for the fact that the ur o euro has been rallying big time. this makes exports more ek pensive. it's still 6% off its highs of two months ago. emerging market economies have improved. south korea, vietnam, philippines, indonesia, all up double digits this year and the chinese economy, despite co mandated concerns has stabilized. hong kong is up 25%. stocks have been rallying beca the global economy has been improving. earnings for the s&p 500 companies are expected to be up 11% for the second quarter. stocks trade off of future earnings prospects. you can see this in rally for the dow. of the thousand pointns gains that we saw in the dow recently. boeing, mcdonald's, and caterpilla of the five have 50% of earnings overseas. only united health did not.

for "nightly business report", i'm bob pisani at the new york stock exchange. >> so, how is the economic and financial stability we're seeing in europe this summer helping the u.s. market and investors? jeff is the chief b global investment strategist at charles schaub and joins us now to talk about that. welcome back. >> thanks. >> i was looking at one of you 20 economies are on track to grow in 2017 and that europe is having a very crisis free summer. it wasn't that long ago when we were worriy eied about greece a portugal and italy and the like. it's all changed dra mmatically. r things lly has. th changed around the say in the maybe spring of this year was the concerns about politics. you know at the beginning of the year, the thought was we know where u.s. politics ended up, but europe had a number offal elections in the first half of

the year. no major change there, so the outl politic risk always something simmering in europe, has faded as well, so economically, politically and from a financial stability standpoint, things are working on all cylinders for europe. >> a lot of americans are underinvested in international ek given the troubles that europe has had. give some advice on that. >> yeah, you know, very true. everywhere i go, people are very focused on their whole market. this year, i guess performance speaks for itself. euro stock 600 index is up 18% in dollar terms. what an amazing return for u.s. based investors. missing out would be disappointing after so many years of seeing relatively lackluster in europe. >> is it too late to invest there? >> good question. no, i don't think so. what we're seeing is very strong earnings growth. remember, there have been a couple of recessions in europe since the last one in the u.s.

they're earlier in their business cycle and earnings cycle than we are here. earnings more upside there i think and certainly, toks have not yet gotten back to piques in europe. so there's more opportunity there. >> you also make that europe in general, every country certainly is different. but europe generally is overweight the financial secto compared to the u.s., which tends to be more overweight of technology. >> that's right. it tends to define the performance of the two different sta to see the financial sector come back and begin to perform. in fact, it's the best performing global sector ovemon. tech still did well, but financials have edged it out, maybe longer term interest rates. if that trend continues and we think there's reason to believe it may, that's great news for europe outperforming or at least maintaining this level of

performance relative to the u.s. over the second half of the year. >> how does a weaker dollar help american investors? >> well, it's a wonderful thing in that when you're returning the money made euros back into dollars, it buys more do dollars. the stock 500 inde5%, but 18 in dollars, the good news is there's no downside to that, so bob talked about the threat to imports if they have having a higher valued currency in europe, but the fact is, europe only has about 16% sales to the u.s., so relatively small portion of their sales are to the u.s. where their currency is really appreciated, so i don't think it's going to be a big hit to earnings. instead, just a re so much. preeappreciate it. >> of the issues lingering over the stock market is the debt ceiling. which the treasury warns will be hit in september. today, the white house budget director told cnbc that the entire trump administration supports a so-called clean debt ceiling increase.

that is without spending cuts or other stuff attached, but at this point, it's not clear whether or not congress agrees with with that. in that interview, nick mull vainy said the administration will not raise taxes on wealthy individuals. it looks like the services sector may be cooling off. the institute said nonmanufacturing activity grew slower than expected last month. the sector accounts for more than two third of the economy. most of the manufacturing sector new orders for goods reported their biggest increase after two straight months. motor vehicle production weighed on activity as that industry struggles with inventory glut. the labor market is getting tighter. the number of americans filing for unemployment benefits fell last week. initial claims for jobless benefits fell 5,000 to 240,000, that's near a 44-year low. tomorrow, the government is expected tt t u.s. economy created 180,000 new jobs

last month. against the backdrop of the strong labor market, the president yesterday endorsed a senate bill that would sharply reduce the number of legal foreign immigrants entering the u.s., the reasoning in part is the theory that immigrant woorkers, es skilled ones, depress jobs and take jobs american workers want. here to discuss immigration and the eccofounder and senior managing director at macro economic advisers. chris, welcome. >> thank you. >> it is a complicated issue. a thorny one, indeed. but you would think that when the economy has 6 million open positions and really full employment at 4.4%, that you would want more workers to come those jobs and help economic growth. >> yes, you would. cert when we look at the skill gap and high skilled jobs available and wanting for workers, anything that would allow high skilled workers to

enter greater numbers is good for the economy and it's all reform proposals would consider this the past. it's very positive for the economy. on the other hand, on the low skills side, i think the evidence is mixed, it's not u allow many more unskilled workers in. it increases demand for goods and services in the economy, which puts additional demand for worker, but it's not clear domestic workers are displaced in that situation. >>. >> you also make the point that would change the ratio of workers to retirees. which changes the workers paying taxes to support some of the social pro >> since they tend to be younger than the indigenous population, they're retire ng fwraeter

number, the number is going down and so to the extent that we have greater expectations, we'll have more workers per retie rear. with costs for retirees. >> you looked at numbers, done some models, chris, what would cutting immigration to the extent, legal, to the extent that this senate bill that the president endorsed in part yesterday, what would it do to overall growth? >> well, the arithmetic is simple. sort of abstracts from bunch of thick things. we're dwroeing at about eight tenths. if you cut the immigration part in half, we're talk about two tenths coming out of the econ

real growth of gdp. if you cut legal immigration in half, you're going to knock abilioff, but every year, it lowers by 10%. >> which changes the ranking globally, i would think. >> and programs we want to find out of the economy, it's something that needs to be taken b into account. >> chris, thank you so much for your i >> and sticking with the issue of labor, tonight, some nissan auto workers in mississippi are vo on whether or not to join the united auto workers union. the outcome of this could be historic since the uaw has never unionized an entire assembly plan from the deep south. phil lebeau has more on the vote

and what it says about organized labor in america. >> it's voting day for 3800 nissan workers in canton, mississippi. their choice, join the united auto workers or remain independent. the uaw says nissan workers are looking to ensure greater pay and benefits. especially for temporary workers hired by the automaker. >> the discussions i have had with workers in canton, mississippi at nissan, they're all concerned about the temporary workers. they all feel for them, right. so, if they want to do something down there, the first step is to vote yes. >> but the uaw has a long struggle to connect with auto workers in the deep south. yes, it represents some employees at the volkswagen plant in chattanooga, but in s union free. partially because it's filled with rig states and many blue collar employees in those states have never felt compelled to join a union.

a spokesperson for the nissan says they think that's still the case saying we don't believe the representation is in the best interest of the employees of nissan canton. meanwhile, after the three sh down facilities and laid off thousands of workers during the recession, the uaw is a far smaller union than in the past. in fact, since 2004, when it represent ed more than 650,000 workers, the uaw has lost more than a third of its mep shmbers. the vote in mississippi will run through friday night. if they win, it will begin the process of gauche nating a new contract with any sap mpl e japanese automaker has never dealt with here in the united states. still ahead, troubles. cutting jobs, its dividend, earnings outlook and the stock

the senate today passed legislation th no halt in fda reviews of drugs. the measure increases the user fees that drug and medical device makers pay to the agency. but revenue raised would help pay for reviews to help bring

the xaep's product to market. th governoring these fees expires at the end of september. generic drug prices are falling and that is take iing a toll on a number of companies. aamerisourcebergen is one of them. it saw profits tumble more than 85% and cut its revenue growth forecast and added that the price could slow further as well. the chain which includes pharmacy benefit managers and drug distributors, has been under pressure due to scrutiny over rising drug prices. shares fell more than 10% in today's trading session. meantime, teva pharmaceuticals report iing a 75%.er than expected drop i the reason those low prices here, shares of teva down 24% and that dragged shares of some rivals as well. meg has more on teva's troubles.

>> with all the focus of the high cost of prescription drugs in the u.s., it may be surprising to hear that it's the opposite problem weigh se of the industry. generic drug prices in this country are around intense pressure, cutting into the finance of their manufacture ar defining them. >> teva was hit hard today. its second quarter results included a $6 billion charge based on the state of the u.s. generic drug market. its ceo told investors quote, all of us at teva understand the frustration and disappointment of our shareholders in light of these results, pledging to cut costs and sue to sale of some units. teva ao lower is full year forecast and cut dividend by 75%. other makers of generic drugs are feel iing the pain as well. mylan's st pressure today and sandoz reflected the same dynamics. wells fargo analyst says there

are multiple forces at work. >> the buyers just got smarter e sayin we want to reprice, not just once a year, but maybe twice. part. the other part is you're seeing that other players are coming to the market and the fda has done a really good job. they see giant backlog. well, so when they approve approving the first, sometimes, they are, but a lot of time, caused by limited competition. >> the pressure on teva comes around the anniver closing of its $40 billion acquisition of allergan's generic drug unit. an top of that, they are also sea new ceo. it will be a big job for whoever takes the role. aetna lifts its full year earnings outlook and that's where we begin tonight's market focus. the guidance follows the health insurers profit and revenue.

aetna, which has exited most of the obamacare insurance markets said they were held by the exchanges as well as an inkrecre in medicare membershy has no pl to re-enter the market, it could under the right conditions. >> any business that has the kind of changes this program has seen quarter over quarter, sometimes monthly, would not be able to sustain their business it right, whichy period of it can be fixed, and it's b >> shares rose more than 2% to 158.54. avon reported an unexpected loss and said its ceo would resign next year. the company which is in the midst of a turn around has been struggling to lift sales and the most recent quarter was no different. revenue fell. the company said it expects to

meet the low end of its full plunged nearly 11% to $3 b even. last night rkts we told you that aig reported better than expected earnings, today, the company said it will no longer provide guidance on financial targets. it also said it would do away with a previously announced capital return plan that was intended to pay shareholders $25 billion by the end of this aig said it will still return capital to shareholders, but will not target a specific amount. the shares rose slightly to 6 0 66.0. >> the snack and beverage company tree house foods said it would cut about 2% of its company will also close two factories. they said the layoffs will affect nearly 400 employees. shares got crushed falling almost 12% to 74.1. cost cuts helped kellogg. top estimates for profit and revenue. maker of ego waffles an pop

tarts said it was helped by sales in latin america and asia. the company also completed the shift to its new snack distribution model earlier than expected. that sent shares higher by 4%. 70.36. viacom reported better than expected quarterly revenue thanks the higher affiliate fees that helped off set a continued decline in u.s. ad sales. the company's 12 consecutive quarterly drop. they're the owner of mtv, comedy central and paramount. shares fell in afterhours trading, but ended the day at 35.07. and kraft hines after the bell reported a 50% rise in cost cuts and increased demand for some of its products. the co by warren buffett and the private equity firm 3g. shares were volatile in the extended session as you see

there, but they did finish the regular day dow fractionally at 86.51. mortgage rates are holding stea. w 4%. freddie mac reports the rate on the 30-year fixed inched up 3.93%. rates have not risen substantially despite the federal reserve having increased i key rate four times in the last year and a half. >> sales of luxury homes had been lagging, that is until now. diana oleic takes a look at what's behind the new boom in top of the line real estate. >> the trouble with these super expensive homes was well, they were too expensive. sale prices had been b lagging the rest of the market for the past few year, but now, they've .urned around for one simple nope, not that. although it didn't hurt. it's really this >> luxury sellers are getting back in sync with reality. which is something that's been lacking for the last several

years. buyers won't come up to meet their number. >> sellers lowered prices, buyers came back and now for the first time in three years, luxury home sale prices are seeing bigger gains than the rest of the markets. this according to red fin, which defines luxury as top 5%. again, because sales are up, 19% in the million dollar plus range. all those sales caused the inventory of million dollar plus homes for sale to drop over 9%. that after growing for more than a year. >> what we're seeing is is inventory declining, but that's lifting expiring that wering menon icantly over where they set numbers that had no connection with reality. >> despite the gains, the luxury market is not nearly as competitive as the rest of the market.

only one one in 50 homes sold above list. for "nightly business report", i'm diana oleic in washington. >> coming up, we are raising a

retirement balances are hitting new highs. average 401(k) balance reached more than $97,000 in the second quarter. up 9.5% from a year ago. the average balance for individual retir100,000. the results are due to a stock market that is near record levels as well as increased employee and employer contributions to those accounts. it is the third straight quarter of record balances. >> well, everything seems to be b b coming up rose. sales of the pink wine have skyrocketed recently and it's the most powerful forces in e the beverage industry. seema raises a glass in new york. >> once referred to as cheap and unsophistica it in fashion, becoming the quintessential drink of the summer. increasing its rose st

selection currently with 75 still and 50 sparkling rose offerings. >> we're going through a pique now and there's also a great variety of roses, different styles, different colors. and people just want to try new roses. >> sales are up 60% over the past years, more than cabernet and shochardonnay. it's become so popular, wineries ran out of their signature summer in a bottle, but they have others available. what's behind the strong demand? think pink. experts say e colo packaging, versatility and price typically cheaper than champagne. and in the very modern twist, social media buzz has also contributed. the hash tags have been prevalent on instagram, so much that with two women started their own brand selling rose inspired apparel and

accessories. >> every summer, we double sales. >> key customer is women, mostly. >> experts say as rose wine evolves, demand will continue. for "nightly business report," >> rose sounds pretty good. never had sparkling rose. >> we'll have to go try it because now, it's time to say good night. that's it for "nightly business report." than for joining us. >> thanks from me as well. have a great ooefrk. >> raise a glass. >> after our rose. >> yeah.

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