this is "nightly business repo" with tyler mathisen and sue herera. a triple record, rebound on wall street. will this big earnings week push the blue chips dow index past 12,000. a free-xheeling press conference the two most powerful republicans say they have a great relationship and plan to work together on taxes, and a health care fix. >> a conflict in iraq spilled over into a key oil producing region and crude provideses could head straight north. those stories, and more tonight on "nightly business report" f good evening, everyo wall street rising, the three major indexes all closed at records. that's not a bad way to start

the week. the financials helped lead the way and the market may have been even higher if not for health care stocks. we'll have more on that in just a moment. but first here's a look at the record cloe. the dow jones industrial ave gained 85 points to 22,956. the nasdaq added 18, s&p 500 was up with the dow on the verge of 23,000, the next big test for stocks is earnings. sema mody is at the new york stock exchange. >> reporter: investors rally for earnings. earnings season is about to kick into high gear with 55 s&p 500 companies reporting this week. that's 11% of the index. expectations are high. wall street is estimating an average 4% jump in profits from companie financials, the likely stealing the spotlight with goldman sachs and morgan stanley reporting on

tuesday with interest rates on the rise, banking analysts are predicting a pickup in lending activity. other important names on the earnings calendar is ibm which reports on tuesday, and general elec on friday. investors will pay close attention to commentary on the impact on hurricanes on growth. the strategist say solid results may not be enough to move the needle. guidance the strongest in nearly seven years needs to remain healthy. if it's not the long bull run on wall street will come to >> president trump held a free form news conference today talking about a number of issues important to business and investors. he led the senate majority leader mcconnell to the white house rose garden where they say their relationship was better than ever and declared unity on tax reform. >> i would like very much to see it be done this year.

we won't go a step further. if we get it done, that's a great achievement. don't forget, it took years for the reagan administration to get taxes done. i've been here for nine months. >> health care also a topic. the president said they are working on a measure to repeal and replace obamacare and expect maybe to have it by early next year. while standing at the podium he talked about his decision to end insurance subsidy payments and went after the hea. >> the insurance companies have made a fortune with obamacare, an absolute fortune. as you know what i did with the cuts at the end, you know, you talk about hundreds of millions of dollars a month going into the pockets of the insurance companies. and i'm ve and pause of that, people are talkinnow, democrats are talking to republicans for a short term taking care of what we will call health care. >> early in the day, in a cabinet meeting, the president also talked about a short-term fix and a long-term fix for health care, as you just heard.

he renewed his attk in the morning on the high price of prescription drugs. >> the prescription drug prices are out of control. the drug prices have gone through the roof. if you look at the same exact drug by the same exact company, made in the same exact box, and sold someplace else, sometimes it's a fraction of what we pay in this country. meaning as usual, the world is taking advantage of the united states. they're setting prices in other countries, and w not. the drug companies, frankly, are getting away with murder. >> those comments pressured some stocks in the health care sector and that sent the health care etf lower as you see there. john harwood is following the whole story from washington. john, he really went across the whole smorgasbord of items. let's start with tax reform. can mr. trump and mr. mcconnell really work together and get a tax cut package out of congress by year end?

>> they can. it's possible. certainly they both have incentives to get that done. but mitch mcconnell was pretty careful to put some caution on that prediction about getting it done by the end of the year. he noted that president obama had not succeeded on obamacare or on dodd/frank until the second year in office. so i would expect that this is going to be on a slower track than the president hopes for. but there is certainly the possibility that republicans can decide, this is the do-or-die issue, they have to succeed and get it done. >> what about health care reform and specifically the drug pricing that the president referenced several times today? this is definitely front and center on his radar. >> this is something that he's talked about since the campaign. he has occasionally used this as a way of trying to establish common bond with some democrats saying this is something they want to do, too. but we haven't gotten any indication that he's serious about pursuing this beyond

rhetorically. is he prepared, for example, to tell the medicare system, and republican congress to go along, that they can negotiate drug prices with drug companies. they're prohibited from doing so now. i would be surprised if he does more than just talk about this issue. but he's got the chance to do it if he wants to. >> he also came back to the repeal and replace of obamacare. he talked about a short-term fix of some sort. but it was unclear what he was talking about there, that might involve some bipartisanship. what was he driving at there? >> that was a fascinating part of this news conference. what he's talking about are bipartisan talks between lamar alexander and patty murray, the ranking members of the senate health committee, to restore those very payments that he cut off last week. he described them today as payoffs to insurance companies, and said the democrats were doing favors for campaign

contributors. and he took pride in the fact that their stocks had gone down after he cut off those payments. but restoring those payments is at the heart of these bipartisan talks. and people on xlil said they were sort of shaking their heads and saying, this is the kind of thing he's been attacking. the opportunity is there for him to take credit for it, because if in fact they pass the short-term fix, it will reduce obamacare premiums. that's something that president trump could stand up and say, look what i just did. >> cut the premiums. john harwood, thanks very much, appreciate it. a new report from the white house said american workers will get a pay raise if republicans are able to reduce corporate taxes. the chairman of the president's council of economic advisers says cutting the corporate tax rate from 35% to 20% would increase household income by at least >> the question is, what happens if we go down to 20%?

then they're going to bring that activity back here, increase the demand for workers here and drive up wages as well. >> corporate tax cuts will also help boost overall economic growth. president trump will interview janet yellen this week about potentially staying on in s as the ion atop the president nears a decision on that job. the chairman gave an upbeat outlook on the economy saying the central bank will soon resume raisi >> i expect the market to strengthen further as economic growth continues. the hurricanes will likely result in some hit to gdp growth in the third quarter. but a rebound thereafter. and smoothing through those movements, i'm expecting growth that continues to exceed potential in the second half of the year. >> most economists expect the fed to increase interest rates

at its december meeting. oil prices are strengthening, rising toward a six-month high. today they settled above $51 a barrel. as tensions increased in northern iraq's oil-rich kurdish region. they took control of an oil operation in the northern area surrounding kirkuk which is an area that produces hundreds of thousands of barrels of oil per day. >> what does this all mean for energy prices. john, this is obviously a very contentious region. the kurds and the iraqis have joined toget to fight isis, loosely speaking. but now as isis threat recedes a little bit, it turns into a fight over end ens for the kurds and oil. >> it's as if they're fighting over the oils of the victory over isis or dash. the strange this is the kurds really stand alone as almost friendless, without al

turkey, saudi arabia, iran, iraq, of course, none of them want an independent kyrgyzstan. this goes back up ottoman empir. this is very worrisome last night, because we thought as the iraqi forces were moving on kirkuk, that this would be a tough fight. the peshmerga have been -- >> the kurdish forces. >> yes, sorry, the kurdish forces, as brutal fighters. in an intrigue worthy of shakespeare, they laid down their arms apparently because there's infighting amongst the kurds as well. the iraqis just really marched in here and have given the oil market a breath of ease here. so the oil price didn't go up all that much, it jumped over $1 a barrel on the initial reports, but things calmed today and we're all watching it very closely. >> it seems as though, and i hate to use this phrase, because every time you do, something

goes wrong, but it's different this time, right? for the oil market? because we have seen these types of skirmishes in the past. but this time, it seems as though the stakes are much higher. and both sides are much more committed. >> that's right. and these -- this is going on for centuries. turkey in particular holds a heavy card here, in that an oil pipeline that takes about 600,000 barrels of oil a day out of the kurdish region to the shehan oil port to the mediterranean, can be shut off in an instant by turkey. also, too, we know the saudi king was just on the phone with the iraq premier saying they want a unified iraq, to show you how uniform the region is against the kurdish independence movement. but a lot of oil happening in the balance. we know this fighting can be fierce. it's another iteration of it. it's the same shia-sunni battle we've seen for years now.

>> a premium in the price of, what, $1, $2? >> if the fighting were get heavy handed, it could be $3. >> great to see you. in china, meanwhile, the government is holding its mos. it could shape the future of the world's second largest e. >> the biggest political event of the year in china opened on wednesday. it's a 19th communist party congress. this conference of the national leadership is only held twice in a decade. its purpose is to choose who will be in the main decision-making body for the co the communist party doesn't hold discussions in public, so whatever political deal making there is goes on behind closed doors. china watchers are eagerly are awaiting who gets what post. the real question is how much

power president xi jinping has when it ends. president xi is widely expected to solidify his control over the party and the country putting key allies in important positions. xi may even have his name enshrined in the party constitution that puts him on a level held by only two people in china's history. china experts are also looking for any signs that xi might try to extend his rule beyond what's become the standard ten-year period. for investors, it's not exactly clear what this congress will mean. there's hope that economic reform will move more quickly, once president xi is in a stronger position, at the same time many people believe president xi could very well maintain the same approach to reform and economic policy, seen in his first five ye but this conference is more about politics than policy. so the details of any upcoming

reforms probably won't be hammered out here. one way this year's congress will be different from those in the past is supposed to take on a more communist and austere feel, in line with president xi's fight against corruption. hospitality organizers say that this time around will be no free haircuts or facials, no free fruit in the hotel rooms, and no seafood delicacies, such as sea cucumbers or prawns to mark this occasion that's for president xi as well as the party. for "nightly business report," from beijing. one of the best performing stocks this year moved in fact, a new all-time hi

the supreme court will hear a digital age privacy dispute, the justices will consider the administration's appeal to a lower court ruling in favor of microsoft. a lower court ruled that the e-mails sought in a drug trafficking investigation were beyond the reach of a search warrant because they were stored on a microsoft server in ireland. the case is just one example of the clash the technology companies have had over privacy when dealing with law enforcement issues. the supreme court will also hear the government's antitrust challenge to american express. that case centers on whether the company can prevent merchants from asking shoppers to use cards that charge stores lower fees. antitrust enforcers have argued amex has an unlawful restraint on trade. netflix added a lot more b

subscribers and plan to spend more on content next year. they earn 37 cents a share, 5 cents above estimates. revenue increased 30% from a year ago, to nearly $3. and investors like those results sending shares of netflix to an all-time high in afterhours trading adding to the stock's already big ga. julia boorstin breaks down the netflix results. >> netflix continues to outperform as its investment in content pays off. adding a better than expected 5.3 million new subscribers this quarter, and projects a stronger than expected 6.3 million new subscribers next quarter. in the face of growing competition, the ceo said the feature largely lies in original content. it's planning to spend more to keep ahead of its rivals. it will spend $17 billion on content commitments over the next seven years and spend between $7 billion and $8

billion. nordstrom suspends talks to go private. that's where we we gin tonight's market focus. members of the founding family have halted their efforts to find a potential buyer because of difficulties securing the debt financing. the company also said it may resume that search after the holiday shopping season. nordstrom shares finished down 5% to $40.40. biotech said the drug for treating kidney cancer was effective in treating liver cancer. during a study trial, the treatment helped patients live longer compared to those who took a pla seen a. the company plans to file with the fda. the shares popped 17% to $29.02. aller gan came under pressure after a judge invalidated patents on re

stasis. it paves the way for marketers to sell a generic version of that treatment. the food services aero mark will buy two private companies in separate deals totaling more than $2 billion. they'll acquire avendra in an effort to lower its food costs. it will also acquire the uniform supplier, ameripride services by expanding its service offerings. shares up fractionally to $42.53. after the bell today, the drive-in burger chain sonic reported a drop in revenues. the drop in sales was due to the competitive environment and impact from hurricane harvey. shares initially fell in the extended session, but ended the regular day at $24.80. also after the bell, fire and safety product maker idex said increasing demand helped growth and sales in earnings.

they also hiked the profit outlook and reaffirmed its sales guidance. unchanged in after-hours trade but finished the regular session up 54 cents at $125.06. in northern california favorable weather is helping firefighters gain on the deadly wildfires that have engulfed the state's wine industry. but the losses are mounting. revised early estimates show the property toll from the fires has more than doubled, to $3 billion in losses, destroying 6,700 structures in sonoma county. pg&e's stock price is down for four straight days as investigators look iof insurance companies are no doubt watching those california wildfires just as they are tallying up the impact from the recent hurricanes, and those hurricanes will likely result in big losses when the major insurers report their

quarterlies. morgan b >> harvey, irma, maria, the three hurricanes may add up to the most costly hurricane season on record. that means a big hit to insurers' bottom lines. analysts warn the mounting losses from these hurricanes could wipe out a year's worth of profits for some insurance carriers. >> it will be a tough quarter for about every insurance company. most insurance companies we follow are looking to have most of their third quarter, if dmot all of their third quarter earnings wiped out. some will be a loss. some are where the losses are so large, that essentially wiping out the entire year's worth of earnings. >> factor in powerful earthquake in mexico and the estimated damage to homes, businesses and vehicles could top $100 billion in the third quarter. it doesn't even include flood loss. the earnings impact is expected to be so great, wall street now thinks insurer losses will drag

down the quarterly earnings growth. the good news? the industry is still sitting on a surplus of capital. meaning companies have enough to pay out clients and weather more catastrophes. but not without making up the difference. travelers which reports this week already suspended its stock buybacks. analysts now expect companies like al stait and progressive to consider raising premiums. >> oftentimes large events, particularly ones that are unusual or change how people think of the risks involved with insurance, you'll see an increase in prices. i think you'll see some of that, at least if not more, following third-quarter earnings. i think you're going to see companies raise prices for coastal areas. >> prospective hikes that could even potentially push up prices for consumers and busi. that possibility is fueled the rebound for insurance stocks ahead of results. but analysts caution after big

events, surprises are all but certain, and unfortunately more losses from more events will still be coming, primarily the wildfires in northern california. the amazing race that gets security warning that could impact practically everyone who uses wi-fi. a vulnerability was discovered that could let hackers decrypt and potentially look at ev including gaining access to credit card numbers, passwords, e-mails, even photographs. tech companies are responding.

microsoft has already fixed the problem, but customers running supported versio the weinstein company has agreed to a financial life line from the private equity firm colony capital. the deal gives the weinstein company an immediate cash infusion as it reels from the scandal surrounding its founder, harvey weinstein. the amount not disclosed. the two sides will new discuss selling some or all of the studio's assets to colony. amazon has begun accepting bids for a location for its second global headquarters. the deadline, thursday, and cities and states have fallen all over themselves for the biggest economic development prizes in recent memory. scott reports from one of the cities t >> this massive building on the edge of chicago's downtown is a throwback to the last time the city was a hub for home delivery. once the largest post office in the world, built to accommodate

sears and montgomery ward, it closed 20 years ago. now it's one of a handful of sites that illinois is pitching as the home of amazon's second headquarters. >> the criteria that amazon put out, we rank at the very top. i believe we're going to win this. we're all in to win. >> amazon says it prefers a metro area with at least 1 million people, a stable business friendly environment, a place with the potential to attract top tech talent and can think creatively. the old chicago post office is certainly creative. nearly 3 million square feet in size. this is the roof. it's four acres. chicago has been trying to find a use for this landmark building but creativity alone won't cut it, not with stakes that. the company is promising 50,000 jobs, a $5 billion investment, and economic multiplier effect like its existing headquarters in seattle, which the company says has been worth ne

no wonder cities are fighting tooth and nail. >> we might have to start with going to the state to see if we can get the legislature to change the name to phoenix amazonia. >> gary, indiana, took out an ad in "the new yo." but not everyone likes the idea. in new york, some protested the use of taxpayer incentives to woo amazon. >> amazon is a multi billion dollar company and we do not think they should get state and local incentives when the subways are breaking down and our schools are underresourced and underfunded. >> in illinois, despite arguably the worst state finances in the nation, the governor says the state can't afford not to bid. >> it's going to create a massive new economic growth, new jobs, stronger, higher family income. >> amazon plans to announce its decision next year. a company known for offering bargains, trying to negoe

for "nightly business report," i'm scott cohn in chicago. >> scott plans to report from a number of other cities vying for amazon's second headquarters when the company makes its decision next year. >> you'll see it here on nbr. that does it for us tonight. thank you fog us. >> have a great evening, everybody. we hope to s.

>> this is "bbc world news america." funding of this presentation is made possible by the freeman foundation, kovler foundation, pursuing solutions for america's neglected needs, and fox searchlight. >> my mum says you are writing a book to stop people going to war. i would really like if you write a book for me. >> have you come to see my woods? >> i'm going to call my bear winnie. >> you should call him pooh. if he ignores you, you can pretend you were just saying