this is "nightly business report" with tyler mathisen and a bannon bounce. president trump's controversial aide is out and the market's cheer initially, but u thel it jittery investors? >> disrupting hollywood. who would have thought apple would be the one to change the movie business. >> power grid eclipse.ut to the test whe those stories and more tonight on "nightly business report" for friday, august 18th. good evening and welcome. washington holds its grip on wall street. today, stocks swung when it was learned the president's adviser, steve bannon, was out.

it was a dramatic if not necessarily unexpected departure. he is the man who helped donald trump win the white house. but who also clashed with other seep yor presidential advisers on a number issues. including top economic ones like trade. this week, he also gave an eyebrow raising interview where he argued an economic war with china had already begun and that there is no military solution to north korea. some say his departure could break the legislative log jam, something they may like. >> and that may be why stocks initially rose on word of mr. bannon's ouster. but the gains fizzled in topping trading. dow jones dropped to 21,674. nasdaq was off five. s&p 500 down four. it was the second week in a row r indexes fell as you see there.

bob pisani has reaction on wall street to the events in d.c. >> it was a very nervous open trading was mixed early on, but at 11:18 eastern time. word came from washington that the white house was prepared to fire steve ban p. the s&p which was down five promptly rallied in minutes and another five point over the next hour. n fired e new yo about 12:40 p.m. eastern time, stocks rose further. the markets have spoken and they clearly prefer white house economic adviser, gary cohn, for the stable ility he provides. ho, ss dropped yeste on reports cohn might leave the white house and have rallied on confirmation bannon is now gone. important thing here is traders waned a concerted effort to raise the debt ceiling and pass a resolution then move to tax cuts. today's rally is the market's

way of saying they bel are sti alive. now, the p weakened after a 1:00 p.m. after breitbart's editor tweeted hash tag implying bannon or breitbart may want a tax against cohn as well as treasury secretary. still, the s&p finished lower, but there's no clear turn around this is still very much a see what happens. on monday. i' >> so, will the departure of steve bannon calm nervous investors? back with us is jeff bush with the washington update. back.re what is your take on what happened today in so far as it might either hurt or hinder the president's agenda getting through the d.c. roadblock that has been up against. >> well, i think steve bannon's

departure, like so many things in politics, there's not 100% positive or negative. the president should start hearing a more consistent position and hopefully, that will translate into a consistent policy position for the administration. on the other side of the coin though, nothing about steve bannon's departure changes donald trump's core beliefs. if you're democrat or some moderate republicans, that's what you're focused on now, is donald trump's core beliefs. now, from a market perspective, i think this is net net, more positive than negative, but not a huge issue. >> let's broaden it out and talk on.ut all of the turmoil who sa august was going to be b a quiet month. it hasn't been. but i wonder whether all of the turmoil could possibly cause the factions in the gop on capitol hill and inside the white house

to really focus with laser like intensity on getting something done. >> what we talk ed about this we expected a lot of volatility in the marketplace througt volatility is going to be what we call politically that d volatility. this year. will it bring laser focus? i hope so. there aren't enough legislative days in september to really deal budt being one and certainly, the raising of the debt ceiling. >> speaking of which, that was one thing you mentioned on wednesday, that could probably be concerns you more than some of the other issues that we discu discusse mr. bannon's departure, do you think, help or hurt washington's ability to raise that debt ceiling or to meet the deadline? .> i don't think i i really don't. i think legislative in fighting within the republican party not unlike what we saw throughout

the afterable care act discussion is going to have much more imp so, as we turn the corner after labor day into the real work, what are the three things you're going to be b watching closest for progress? >> debt ceiling, do we have a dialogue about that that's constructive. and leading quickly to r moving on on that issue. budget issues through the legislative process. remember, we have few days before the end of september. and so i don't disagree that the risk of a potential government shutdown or short-term shut cowen continues to wrawrach et . n issue. agai mor of a congressional issue. >> on that note, jeff, thanks again for joining us. have a great >> thank you, you, too. >> with the washington update. americans are feeling good about the economy according to .he university ofmy me's opti is near a 13-year high. surveys like this are watched

closely by economists because for a big people feel, the part of u.s. economic activity. negotiations to modernize the north american free trade agreement continued today. representatives from the u.s., canada and mexico began discussing some of the thorniest issues just of the initial rou of talks. and whatever changes are made, transportation companies could see the biggest impact because they are ones that transport the goods across the border. >> for those companies moving autos and avocados around north america, cross border trade between the u.s., mexico and canada has been a story of growth. especially the south. warner sbrer prizes is the biggest u.s. truckload carrier doing business to and from mexico. the ceo says that now accounts for 15% of warner's total. >> business is good. you know, business has been picking up throughout the first quarter and had further strength

benning in the second. mexico in partic more flows yea year. again. it's been the tenth straight year of growth in mexico and the sout >> they welcome changes to nafta. it means modernization including e commerce and automated border crossings, but they warn if the pack just disappears, all three economies would suffer. ups and fedex have been outspoken with ceos co-authoring an op-ed. earlier this week, ups chief said he's encouraged that the trump administration is looking to make updates. >> trade the u.s. 95% of the world's consumers live outside the u.s., so we really believe that a we need to focus on exports and every time

the u.s. has added a trade agre customers increase 20%. >> more more jobs. analysts say trade with canada and mexico helped strum up demand across many modes of transports. >> because of the magnitude of the relationships weee literally massive amounts of truck freight back and forth across the canadian border, back and forth across the mexican border and you see a large amount of rail freight. there's a smaller amount of air freight and parcel freight, but it's primarily an auto, primarily a trucking and railroad story. >> every major railroad does business with canada. south of the border, union pacific, also knowns part of the mexican railroad and kansas city southern has one of its own.acn city southern's profit. the reason that stock has become a proxy for relations between the two countries.

as it seemed likely the trade talks won't be as tough as originally feared, they've rallied. a sign perhaps that cross border business will continue to boom. i'm morgan brennan. >> today, the u.s. launched an investigation into china's alleged theft of american intellectual property. the move was widely expected. the it is the administration's first direct measure ae tra pras theft of such property could amount to as much as $600 million. china said it will defend its interests. trade is one of the president's top priorities, bringing jobs back to the u.s. is another and progress was made on that front today. wisconsin's state assen tax bre package that would bring a fox con plant to the state. the bill heads to the wisconsin is that the. fox con, best known for its role in manufacturing the iphones has agreed to build a $10 billion

plant in the state, but requires the approval of certain tax incent he'll explain. a rough day and week for shares of major movie theatre chains. today, there are reports that apple and hollywood studios are discussing the possibility of creating a video on demand format that would release films just weeks after they open in theatres. cinemark all lore. this follows a story we told you about this week that apple hopes to become a real hollywood.

reported investing a billion dollars in original content, so is apple trying to disrupt the movie business? with us now is paul. paul, welc good to ha you with us. what is apple up to here? >> well, i think apple has a tremendous amount of resources and when you have a billion dollars to put into content, i think it shows these huge companies realize there is a massive demand for content on the big and small screen, so there's a lot of confidence that audiences around the world want this content. they wan movies, they want original television programs and they want them on every device, everywhere they are and that's where apple is trying to do. including the movie theatre space. >> what about the movie theatre space, paul, because in the a way for the major called t studios to gain more control or at least leverage over them? >> i think that's part of it and obviously, at this point,

there's no consensus among the qulo as to what they want to do and obviously, theatres don't want to have this window shrink anymore than it is over the past many years. and the whole idea of premium video on demand at a 30 or $50 price point two weeks after a release, that's obviously concerning. to the theatre owners. that being said, i think this will shake out over time. and irrespective of how this goes, certainly, the small screen and big screen content is something that people still want and maybe the way they get that content will chae the is here to stay and the small screen content is here to stay. if you're a consumer ou also wa screen content and vice versa. >> what is the typical window today, in other words, the time between the theatrical release and the time it might show up on demand or in some video service like a netflix or one of the

ones you get from your cable company? >> it's actually short ped over the years. used to be like six months. it's shorteneded to three months. and i think everyone would agree if a film is in a theatre and it's not filling seats after a month or two, it on to the small screen. might be advantageous for everyone. but there is a prestige factor in having films in a theatre a lot of audiences will follow that content from the big screen to the small screen and all this talk about the movie industry and uphooefl is because at the moment, the box office is down, but i've been doing this for 25 years and we track all this information and we've seen over the years it ebbs and flows when we get the justice league and the last je derks di at the end of the year, we en thas so much. >> thank you. investors run from foot locker. that's where we begin tonight's

market focus. the athletic apparel retailer reported earnings that fell far below wall street expe slow dow sales of some top styles as well as the limited availability of new products in the market. they say they expect sales to continue to fall nrt rest of the year. shares plumeted 28% to 34.38. hib et sports report ed a t expected thegs and difficult retail environment to persist and cut its full year guidance for 2018. fell to 10.90. deere posted a higher profit, but a second straight quarter of lower than expected sales, improving market conditions around the world, especially in south america, led them to boost their full year equipment sales forecast. wall street though focused on those sales numbers and deere shares fell nearly 5.5% to 117.31. estee lauder posted higher

than expected results thanks to sales from its mac and tom ford bran str performance in italy and china also helped. pro sales ahead of wall street targets. lauder shares touched an all time high-ending up nearly 8% on a rather flattish day at 105.92. and it's time for this week marke monitor, who says the market's been run by the cool kids. now, it's time to look for the nerdy kid. richard steinberg. here's a look at how his previous picks have done. two out of three. with certainer andaler began up strongly, it was a built of a miss with em senn group. nice to see you. when you say the nerd, the cool kids have been running the stock market, you're talking about the fang stocks. the facebook. apple. >> it's like the whole, old high school maxim, cool kids want the cool toys and that's what facebook and apple and amazon

and netflix, google represent. so, a big chunk of the s&p's returns this year were coming from a very small amount of the cool kids and as the market sells off, those are going to be the first names where people are go for companies that are more value oriented that might have been beaten up in this earnings cycle because companies that missed or even did okay sold off u on the news. >> let's talk about nerds, shall we? shire pharmaceuticals. they're $150 right now. you see them going to 220. and so far, over twn why do you like them? >> it's a bio pharmaceutical in dublin. they have orphan drug, hemophilia drugs and adhd drugs. adderal is one of their drugs.

stocks like you said has gotten hammered. now trading at ten times earnings. we think it makes sense to own it here. >> your second stock is called americo, but better known for u-haul. >> exactly. the u-haul business is a great business. great franchisd in maorage. we have a $480 target. and if you take their earnings and normalize them, they could earn close to $24, so we think it's cheap and the it's a great long-term growth story. >> your third pick is mcr, which you think has 40% upside potential. they're the maker of atms and other automated products. >> right, so the three of us have been in the business long enough to field national cash register. dates us ali little bit. the automation sofe si, espec as retailers and big boxes need to compete

against amazon. we think the stock is super cheap. we have a $50 target. and that's really a deep value play if you're patient and you have a long time horizon, we think you'll get rewarded there. >> on that note, richard, thanks so much for joining us again. have a good weekend. >> and coming up u, what happens to solar power during an eclipse? we will find out monday. monday's total solar eclipse

could cost employers nearly $700 million in lost productivity. that's according to the outplacement firm challenger gray and christmas. that firm predicts that roughly e and it workers have bewill estimates each worker will need about 20 minutes to find a viewing spot. >> walk outside. take 20 minutes. it's not just spectators who are getting ready to view the eclipse, but also the people who run california's electric grid. that's because the state is home to almost half of all the solar power in the country. what happens when the away? monday will bring an unusual challenge and adidi roy reports from novato, california. >> this solar farm on a hilly e remote area in novato, california, has 6,000 solar panels pointing towards the sun. it's enough to power 300 homes a year. but during monday's solar eclipse, that number will be cut

by 75%. >> so, a fun challenge for us. >> biron works for clean energy, the local utility inarea. he say the been planning for this event for mobts. >> we've got a lot of notice. we've known it's coming for hundreds of thousands of years. phone calls, conference calls. back and forth. making sure -- >> they're not the only ones, officials at california's independent assistant operator or cal iso which runs the state's power grid, project the eclipse will effect power between 9:00 a.m. and noon solar time. they'll loosen up energy to supply 6 million homes. they'll rely more heavily on other energy sources like hydro electric and wind power. california's not the only state to grapple with the issue. the u.s. energy information administration says hurricandre plants in states like north

carolina and georgia will lose where those states are situated. they don't expect think disrumss in service, but they urge residents to watch their energy use during the eclipse. work from.'s grid officials sa in 2015, germany, which relies more heavily on solar power, went through a similar eclipse and made it through smoothly. >> the cars are rare, they're antique and they're vintage and some will sell for millions this weekend at pebble beach. but the auction comes at a time when the hbable r market is hitting the brakes. robert frank has our story from pebble >> the super bowl of car collec. drive, race and buy and more

than -- from down last year. far cdecline in sales. at the high-end, those ferraris, porsches and mercedes are faring the worst as krps about the market, washington and tax reform are are weighing on the minds of most of the high-end buyers. the speculators and investors who bid up prices three yearar the high-end, it's a little bit of this wait and see, they're waiting to see what's going to happen. what's going to come up and yet, when good cars come to market, everyone comes out. >> the strongest part is cara $. japanese cars, car frs the '80s and '90s and of course, the classic american muscle cars like this 1969 chevy camaro that

could sell for between experts say every day collectors are back in the market in part because of the stronger job market and wage gains. >> the average collector who has one or two cars that are in that 30 to $100,000 range, it's the consumer confidence that i'm feeming better about the economy. i'm feeling better about my personal finances, my future, my retirement income, but 401(k). that gives me the comfort to come out and use a little expendable income and buy a treasure. >> the most expensive likely to sell will be this. one of only six built that could fetch over $20 million. a supercar once owned by floyd mayweather, this is selling for up to 2.7 million. the real star of the week is the racing porsche. useded in steve mcqueen's movie. his cars sell for huge premiums

and this one is likely to become the most expennisive sold. that would top his on screen and on track rival, paul newman, whose car sold for only 4.4 million last year. that shows the mcqueen race is on by the slowing market. for "nightly business report," frank in pebble beach, california. finally the power ball jackpot is now worth more than a half billion dollars, so if you're feeling lucky, you've got a what yourow night to woul do with that money. >> i would travel the world. i would also pay off my friend's student debt. >> pay off have the kids set up for college. take a nice long vacation. >> help others, give to charity, but we know what i would really do. that's take a great tr have a good time. take care of my family.

but i would probably give a lot of it away. >> and now, we're not trying to throw cold water on your money dream, but the odds of matching all five numbers are about one in 293 million. got to go by some tickets. >> i got mine. >> do you? >> yes. the other day. i'm also in the office pool. but i'll share. it will be fine. no fighting. that's "nightly business report" for tonight. i'm sue herera. thanks for watching. >> thanks from me as well. have a great weekend, we'll see yo

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