>> announcer: this is "nightly business report" record finish. the dow closes at an all-time high. but today's market action was nothing like what happened 30 new rules? the internet has been called the unregulated wild west. and today a handful of senators made the first major move to rein in companies like facebook, google, and twitter. behind the wheel. are you driving one of the most or least reliable automobile brands? those stories and more tonight on "nightly business report" for thursday, october 19th. good evening, everyone, and welcome. i'm tyler mathisen. sue herera is off this evening. the dow did it again today, closing at yet another record

high. but it wasn't easy. it had to erase an early 100-point slide to extend its record setting run. just yesterday, the index finished above 23,000 for the first time ever. apple was the day's early sandbag on reports of weak demand for its new iphone 8. goldman sachs and boeing didn't help much either. but a late day rally fueled in part by verizon -- we'll have more on that in a moment -- helped the blue chip index eke out a gain. the dow rose five points to 23,163, an all-time high. nasdaq dropped 19. the s&p 500 rose a fraction. today's market move was nothing like the one that occurred 30 years ago. october 19th, 1987, black monday. the worst one-day stock plunge in history. that day ended with the dow down 508 points, about 23%, to a closing price of 1738.

the selling was monumental. the decline nerve-wracking. "nightly business report" paul canning was there to give views a rundown. >> reporter: prices on the new york exchange continued to plunge today in an extension of friday's record loss, down to the 2246 level. the opening selloff was massive as the dow plummeted with 1600 stocks down, with 70 moving higher. what was the cause? our frequent market monitor jim stack, who was worried about the bull market on his last visit with us on june 5th, told me one of the major factors if not the major factor was forced mutual fund redemptions. after that, snowballing portfolio insurers, and the industrial tumbled by 2:00 p.m.

with only 50s up, 1850 down. with no hint of any technical meaningful rebound, stocks continued to plunge throughout the afternoon with the dow off 296 points at the 1950 level at 3:00 p.m. the final hour saw the bottom drop out as liquidations combined with those wonderfully innovative strategies, the dow plunged to a record loss putting it at a record percentage loss of 22.5%. >> that was paul kangas. a similar 23% drop today would sink the dow by 5,000 points. that's as much as it's gained in the last 18 months, one of the great market rallies of all time. why did stocks drop so hard on this day 30 years ago? bob pisani takes a look. >> reporter: it is a day that will be in bold print in history books. >> reporter: could it happen

again? president reagan appointed the brady commission to investigate the causes of crash. there were several fundamental causes, including a stock market run going into it, the use of portfolio insurance, the commission focused on the inability of trading systems to handle all the sellers who came through the system. the system couldn't handle it. traders couldn't answer the phone. lack of information created more selling. system-wide circuit breakers were instituted in 1989 and later expanded to single stock circuit breakers. more importantly, the crisis accelerated the move toward electronic trading, which led to a deep reviewest markets. the exchanges expanded their capacity to handle volume. could it happen again? sure, the markets could have a big drop. but it's unlikely to happen for the same reason, like an inability of the market to handle the order volume. no one has repealed the law of gravity. when a lot of people are looking to sell fast, the market will

drop. for "nightly business report," i'm bob w >> let's turn to our friend michael farr for more on black monday. the similarities to today's stock market and the lessons we've learned from that day. michael, great to see you as always. where were you on that day? what do you remember about it? >> thank you, tyler. i was sitting at my desk. my hair was a lot darker then. i was sitting at my desk, i was a new stockbroker. it was overwhelming. and what i remember was the calls coming in and the clients and the customers asking what was going on. and we didn't have any answer. the other thing that happened, those were the days when you wrote handwritten tickets and you would send them down by wire to the floor of the stock exchange. we weren't getting confirmations back. so we didn't have information to give the clients. it was a tough day. that was a great clip of paul kang gchl kangas, he was a good friend. that was something special. >> he sure was.

he cited the contribution of computerized trading as one of the reasons that the market got a little sideways on that day, to put it mildly. but since then all we have is more computerized trading. is that a good thing or does it potentiate another day like october 19th, 1987? >> that's a great question. we saw a couple of years ago the flash crash, we were down over a thousand point ins in a few minutes. there were all these excuses, was it somebody's fat finger on a computer keyboard. we don't know. with the high frequency trading, our friends on the floor will tell you that continues to be a concern. circuit breakers are in place to keep control and orderly trading. >> a lot of people have been asking the question today, could it happen again. and when i'm asked that question, michael, i say, yeah, it probably could happen again,

but it won't happen the same way, it won't happen for the same reasons. >> and i think that's exactly the right point. we're going to get -- you know, if you're going to get bit in the neck for one of these crash days, and the programs really pile on, it's going to be something unforeseen. we've corrected a lot of the problems of the past. we've put in safeguards. it will be what we haven't seen yet. yeah, it could happen. what we have to also remember, though, tyler, is that markets are making alle highs. when they're making all time highs, you have to remember, it's a buy low, sell high rule, and you have to be cautious. >> and the market at that time at one point during 1987, if my history is correct, had been up something like 40% over the preceding year, and then the slide began in late august and crescendoed on that day. so we could see even with those circuit breakers, a cascading slide in the market, couldn't we? >> certainly we could. it would be one of those things perhaps we haven't seen before.

there are a lot of differences, though. one of the differences i think is that the bond market really started to crack in august. and when the bond market really started to climb, stocks continued to hold up. people were scratching their heads. the bond market has always been seen as smarter than the stock market. and it was a capitulation of the stock market. but bond market's been holding great. interest rates are still very low. there's a lot of money. you know, the fed is tightening. we just have to watch them closely. >> thank you, michael. michael farr. verizon unexpectedly brought back unlimited wireless plans earlier this year. the move may be paying off. the company reported better than expected revenue and earnings in line with estimates, that sent shares of the dow higher in trading today, as we noted earlier. julia boorstin has more on >> reporter: verizon is doing

something not all of its competitors can. it's gaining subscribers. nearly 600,000 of them in the quarter. and almost half of them are mobile phone subscribers. this after bringing back its unlimited wireless plans for the first time since 2011. >> rumors of verizon's death are exaggerated. don't count these guys out, despite t-mobile's ads and what sprint might be telling you, very solid numbers across the board especially on wireless which is their bread and butter. >> reporter: but verizon's fios tv lost 18,000 subscribers, more than the last two quarters. the company blaming an industry-wide shift from traditional linear video to over the top video offerings. it's an increasingly crowded space with options from youtube tv to hulu's streaming bundle to at&t's directv now. with at&t focusing on content, its acquisition of time warner pending, there's growing focus on what verizon might do next in the content space.

after ceo local mcadam said the company would announce a content partnership by the end of last month. >> this is a space where we think there's an opportunity for to us play, we think it makes sense for us to play in that space. we don't want to launch a me-too type product. we're continuing to look at what makes sense to launch something that's differentiated in that space, probably around live programming. >> reporter: verizon has been focused on its oath unit, which has evolved from aol. we'll see if there other acquisitions in the works. i'm julia boorstin in lodg for "nightly business report mor br it wasal >> reporter: in a quarter

adopted by catastrophes, travelers has good news to share, a big earnings beat. the insurance giant reported adjusted earnings that were more than double what wall street analysts were expecting. even as a historic hurricane season racked up $700 million in pretax catastrophe losses. those company losses due largely to hurricanes harvey, irma, and maria, were seven times higher than a year ago. travelers is bracing for more in this quarter, thanks to deadly wildfires in california. travelers' ceo said it will now seek renewal price increases for some policies the company offers. >> big eve pricing when a material amount of industry surplus is eroded or when the events change the market's view of risk. it's hard not to make the argument that we've experienced both. >> reporter: stronger pricing could fuel stronger results for the industryoverall.

some analysts remain skeptical. >> when there's storms like we had in the third quarter, there's expectation from some investors that they're going to be see better or firmer pricing. travelers was initially optimistic that they'll see that in some of their select markets. we'll see what happens. i think these storms were significant losses but probably not enough to turn industry pricing. that's one of the reasons why broadly we're neutral. >> reporter: the quarter marked its largest appointment of drones yet as the entire industry ramps up adoption of the new technology. more than a thousand inspections were done with drones. travelers expects to have 650 them in use by next year. for "nightly business report," >> morgan just reported, of course, that travelers is bracing for more losses this quarter because of those deadly california wildfires. and late today, the state's insurance commissioner said its preliminary estimate for losses now exceeds a billion dollars. that number is expected to rise.

still ahead, why some senators want new regulations for some of the country's biggest intern the number of americans collecting unemployment benefits fell last week to a 44-year low.

that would be when richard nixon was president. jobless claims dropped 22,000 to 222,000, suggesting employers are confident enough in the economy to hold on to workers. the overall unemployment rate right now, 4.2%. that is a 16-year low. president trump today met with fed chair janet yellen as he considers who will take over her role at the national bank. she was the fifth person to talk with the president about the position. her term expires in february. others up for the job are gary cohn, kevin warsh, and stanford university economist john taylor. also in washington, online media companies are facing the threat of new regulation over political ads. it is the first major attempt to

regulate companies like facebook, twitter, google, to make them comply with the same laws that govern political ads on tv, radio, and in print. kayla tausche has the details. >> reporter: the u.s. intelligence community found evidence russia-backed agents used social media platforms, facebook, google, twitter, in an attempt to influence the 2016 presidential race. virginia senator margin wak war says the facebook ads traced to russia is just the beginning. >> i suspect this is the tip of the iceberg. these are the ads that were paid for in rubles. we've not been able to sort through whether some of these same accounts may have been smart enough to use dollars, euros or pounds to pay for ads. there may be more. >> reporter: with some 220 million users in the u.s., facebook reaches nearly ten times the subscribers of the largest cable company at 22

million. the proposed law would apply to sites with 50 million or more users, requiring them to keep a public file of all political ads purchased by campaigns spending more than $500. lawmakers want the same disclosure for online firms as existing for traditional media. >> it's really putting us on par with where broadcast and radio are today. >> reporter: the industry says it will continue to work toward a legislative solution. social media executives have met with lawmakers in recent weeks as congress investigates russian election interference. facebook is hiring thousands to combat the issue. but new rules could eat into these companies' p >> they've made their money based on the fact they've been in this unregulated wild west. >> reporter: the legislation has the support of republican senator john mccain who chairs the senate's armed services committee. he views russia's interference as a national security issue.

still, some gop lawmaker chafe at any regulation they say could infringe on free speech. i'm kayla tausche for "nightly business repor in washington. gilead wins approval for its cancer treatment. the fda approved gilead science's potentially revolutionary therapy for a type of lymphoma. the treatment uses a patient's own immune cells to attack the disease and has only been approved once before to fight cancer. the list price, just under $400,000 for a one-time dose. gilead's shares rose nearly 2% to $81.59. philip morris posted disappointing earnings and revenue. the tobacco giant reported a tenth straight quarter of cigarette declines. the trend is expected to continue. philip morris expanding its focus to potentially safer alternatives to tobacco cigarettes. shares tumbled 4% to $108.15. the platform mongodb debuted

on the platform today, giving the company a valuation of more than a billion. the company says it is still well-positioned for more >> we're obviously very pleased by how investors reacted to the story. it's not even about today. it's about the future. we're going after one of the largest markets in enterprise software. the second thing is we have a very disruptive technology. third, the momentum of the business is really strong. we've got customers across every industry using us for every conceivable use case. this is just a start. the best is yet to come. >> mongodb took off, rising 33% to $32.07. and after the bell, paypal reported profit and sales that rose more than expected as more users made payments on the company's venmo platform. paypal also raised its full year guidance shares initially higher in extended hours. they ended the regular session a penny lower, at $67.27.

shares of celgene were pressured in the extended session after the pharmaceutical firm said it won't continue a study trial for its crohn's disease treatment. the company said it made the decision after an independent data monitoring committee determined that the treatment benefit did not sufficiently outweigh the risk. shares initially fell after the announcement and also ended the regular day down nearly 1% at $135.96. general motors has agreed to pay $120 million to resolve claims from 49 states and the district of columbia over faulty ignition switches. the defect has been linked to 124 deaths and 275 injuries, and prompted a massive recall, as you may remember, in early 2014. largest u.s.-based automakers paid $2.5 billion in penalties and settlements over defective switches that could cause engines to stall and prevent airbags from deploying. here's something that may not come as a surprise for those of you who have bought a new car

or truck recently. the latest technology being rolled into these models is prone to glitches and bugs. that's the conclusion of a new survey by consumer reports detailing the most and least reliable auto brands. phil lebea. >> reporter: new cars and trucks with the latest bells and whistles may look good in the showroom, but out on the road, they're hitting the wrong note with many owners. consumer reports surveyed more than 600,000 people. it found many are frustrated by glitches in their vehicle infotainment systems as well as the new transmissions being built into the latest models. what stands out is what's going wrong with today's vehicles. it's the new technology, that's been the problem. this year consumer reports calls toyota the most reliable brand just ahead of lexus and kia which cracks the top three for the first time. by comparison, ram, gmc, and

cadillac are ranked as the worst in reliability. also near the bottom, tesla, which has just rolled out a new lower priced electric car, the model 3. consumer reports has yet to drive the model 3, but predicts it will have average reliability. >> let's be very clear. we're not giving it super high marks. we're basically it's par for the course, not below the average, not going to be above average. it's going to be average. >> reporter: tesla blasted that prediction as absurd, saying consumer reports' automotive reporting is consistently inaccurate and misleading to consumers. tesla says consumer reports has not driven the model 3 so it shouldn't be predicting its reliability. for its part, consumer reports says it knows enough about tesla to predict how the model 3 will hold up over time. as model 3 deliveries increase, tesla buyers will eventually determine if consumer reports' prediction is accurate. phil lebeau, "ni.

automakers are making strides in passenger safety. new crash tests from the ine institute for highway safety show ten of the 13 mid-size cars tested were graded as doing a good job in protecting passengers, good is the highest grade. those not receiving a grade of good, the volkswagen jetta was acceptable. the chevy mal-i will youibu and volkswagen passat won the second highest grade. coming up, imagine having your dream home st

next year you can contribute $500 more to your 401(k). the government reassesses the limit alan and is raising the level to $18,500 to keep up with the rising cost of living. a limit on how much you can contribute to your ira or roth ira will remain unchanged at 5,500 next year. if you're in the process of buying a home, listen to this. there is a scam that is getting more and more common and can cost you hundreds of thousands of dollars, maybe even millions. and it cannot only steal your money but your dream home as well. dian

>> reporter: brett believed everything was going according to plan. he was about to close on his half million dollar southern california dream home. >> this is a great house, a nice layout. had all the upgrades i was looking for. i was like, this is the house. >> reporter: but it almost wasn't. two days before the closing, there was a change. or at least he thought there was. >> it was a monday prior to the wednesday that the funds were going to be sent that i got an e-mail from my real estate agent, or so i thought at the time, that new updated wiring instructions would be coming, forthcoming. i didn't think anything about it. >> reporter: the e-mail was a scam and it nearly cost him his $100,000 deposit. thankfully he called his escrow officer just to say that the change might cause a delay. and the officer said, what change? that's how they caught the hack just in time. >> i did not know that the e-mail was a scam. i was more frustrated with

having to send the money to a new bank, and that my credit union likely wouldn't have been able to make our deadline. i didn't lose it. it was a very frightening experience to think it came very close to losing it. >> reporter: now that so much of the mortgage and closing process is online, hackers are phishing, posing as a title or real estate agent to divert down payments. one buyer here in d.c. lost over $1 million in a similar scam. >> real estate is a market where there's large amounts of funds moving hands. so, you know, it's one of the best places, if you want to get ahold of a $100,000, $200,000 wire transfer. the second reason is that unfortunatey the tar of these scams are typically consumers. consumers have a very low awareness of these types of attacks. >> reporter: the fbi, ftc, and national association of realtors

have issued warnings saying verify everything with your agents, either on the phone or in person. be suspicious of any changes. secure your e-mails. and use a secure payment method. and if anything, anything seems even slightly off, check it out. >> my real estate agent ended this e-mail with a smiley face. and we had a couple of e-mail exchanges prior to this point and i had never seen that smiley face. >> reporter: it could mean the difference between a smile and a disaster. for "nightly business report," i'm diana olick in washington. that is "nightly business repo" for tonight. i'm tyler mathisen. thanks for wat

♪ >> 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 "pooh." >> pooh!