>> announcer: this is "nightly busine with rally on. stocks close out october higher. now the traditionally diciest months of the year are behind investors. so what's next for stocks and bonds? widening probe. the investigation into generic drug price fixing just expanded. and now a high ranking executive is in the sights of modified nation's attorneys general. what it all means for you. and play ball. will the millions poured into the l.a. dodgers produce a world champion this year? all that and more on tonight's "nightly business report this halloween evening. >> good evening, everyone, and

welcome. october proved not to be scary for stocks. first, typically april 15th is tax day, but in washington, tomorrow is expected to be that day, as republicans are expected to unveil their long-awaited tax plan. the guessing game is almost over. which deductions are in? which are out? we won't know for sure until the bill is released. but we do know the last-minute push is on. and as ylan mui tells us, there are still details to be hammered out. and some of them are big. >> reporter: republicans expected to roll out their tax plan tomorrow. and they're calling it a once in a generation opportunity to rewrite the nation's tax code. that will likely include reducing the number of individual tax rates from seven down to just three with likely a fourth added for wealthy households. the corporate tax rate would also fall from 35% to 20%, and businesses would no longer have to pay taxes on their foreign earnings.

now, earlier today, during a meeting at the white house with business leaders, president trump said reforming the nation's tax code is critical to creating american jobs. >> it's a tax bill for middle class. it's a tax bill for jobs. it's going to bring a lot of companies in. it's a tax bill for business which is going to create the joc . >> repor few if any democrats are expected to support the plan. they've criticized the bill for helping the rich by getting rid of the estate tax and alternative minimum tax while limiting the amount that americans can contribute to their 401(k)s before taxes. >> what donald trump says about the tax plan and what's in the tax plan are lights years apart. donald trump campaigned on helping the middle class. and what he's supporting is light-years apart, because this is a tax plan that goes primarily to the wealthiest of americans. >> reporte republicans are still trying to find consensus amongst their own party.

house speaker paul ryan talked e timeline earlier mp about the today, then came back to capitol hill to sell the plan to conservative leaders. >> we believe that majorities in congress are jeopardized if they don't get tax reform through. the health care was an epic fail, there's no way around that. this give us them a chance at re-demps on tax reform. >> reporter: they want to pass bills by thanksgiving, and president trump says he wants to see everyone around his desk before christmas to sign the bill into law. ylan mui, "nightly business repo washington. 46 state attorneys general are looking to add mylan's president to a price fixing lawsuit. 18 companies are alleged to have engaged in price fixing. the mylan president would say the first major drug executive sued in the case.

connecticut's ag says there's more to come. >> we've been uncovering new information almost every day. i can't stress enough, this is just the tip of the iceberg. it's an industry where collusion takes place on a consistent and pervasive basis. >> mylan says it's found no evidence of price fixing by any of its employees. still, shares were hit hard today, down nearly 7%. joining us now to talk more about this expanded investigation is ronny gaul, ronny, welcome, nice to have you here. >> pleasure. >> what is your take on this and its effect on the overall industry? >> clearly not a good thing. this is a fairly small industry, where a lot of people transfer between companies. most people know each other. and the relationships there are generally good between companies. although they're fierce competitors, if you look at the overall generic industry, prices of generic drugs go down every year. so the arguments that are being made here are that in some

cases, around a collusion around a specific company that is manipulating market shares around 15 different drugs. >> if, as you say, generic prices typically come down, that would run against the sort of theory behind most antitrust, which is that the scheme is to keep the prices higher than they should be. so i guess this would suggest that on specific drugs, the prices did not come down as much as they should have. >> that's correct. and to some extent, the connecticut ag commented one of the thing than clued them to something going wrong is prices began to go up among these 15 drugs and they investigated and found this pattern of behavior and were able to find the wrongdoing they were alleging. >> is it common that people move from one company to another

within this particular part of the drug industry, and therefore information is easily shared, is that germane to the generic drug industry or do we find that in other parts of the drug industry as well? >> it happens in every industry essentially, the guy who defeated you will work for another client. what happens is th relatively small industry, there may be 20, 25 companies dominant in the generic industry. therefore among the larger companies, they tend to, you know, know most of the acting players between the buyers and the sellers. >> we saw what happened to mylan today. what is the risk to the specific stocks in the industry to the extent that you can generalize and which would seem to be most exposed? >> it's kind of interesting, mylan has not been a major

target of these lawsuits, as i read it. one of the executives got named, but if you look at the allegations across the various companies, it's not one of the largest ones. teva has seven drugs involved and basically a half a dozen have half a dozen drugs each. what's interesting about this set of companies is that the companies we're talking about are generally not as big. what's interesting is the risk of potentially having criminal investigations. so far the lawsuits are all civil. but in the document released, there was discussion of a doj investigation. and there you can get into much hotter water. most of the stocks here did not respond much, because it is not being viewed as severe. but obviously there will be an allegation of criminal wrongdoing. >> much more to watch for. ronny, thank you, ronny gaul with bernstein. historically a tricky month, october proved not to be so this go round, at least on the

surface. as you see, the dow was the big winner for the month, up more than 4%. for the dow and the s&p, it was their seventh straight monthly gain. you don't see that all that often. the key for these numbers, more than half of the s&p 500's gain this month came from five stocks. want to guess them? amazon, apple, alphabet, facebook, and microsoft. and that might be a little worrisome to some investors. as for today, stocks held up despite a late day incident in new york where a truck plowed into a crowded bike path, killing at least eight people. it is being described as a terror attack. e dow rose 28 points. nasdaq also added 28. s&p 500 tacked on two. investors have closed the books on what's historically the trickiest stretch of months for the stock market. but this year, the past six months have been pretty kind to shareholders. what do the history books say about the months that lie ahead?

mike santoli takes a look. >> reporter: the stock market has made it through the toughest part of the calendar in fine shape. if history is a worthy gride, this bodes well for stocks until the end of the year. may through october represents the weaker half of the year, on average. this is the basis for the popular but not entirely reliable wall street saying, sell in may and go away. since the start of may this year, the s&p 500 index is up more than 7%. from august through october, typically a treacherous period for stocks, the index advanced more than 4%, with very little of the volatility that traders had braced for. in upbeat performance has much to do with the broad pickup in the global which i and brisk corporate profit growth. coming in a particularly challenging time of year, the gains are leading some analysts to wonder if the market has pulled forward some of the potential upside for the often strong final months of the year. past results say not necessarily

the . in the years since 1950 when the major october period saw stocks climb 5%, the market continued hi over the next two to six months in a quarter of the time. needless to say, this the pa earn guarantees nothing about the future. the last time we saw a similarly strong rally in may to october in 2014, the subsequent gains were unimpressive and the market was lower 16 months later. note too that the current market is now in a record long streak of nearly a year without even a 3% dip in the broad indexes. an extraordinarily calm rally that can't last forever. on balance, markets strong enough to defy hostile seasonal training have good odds for remaining strong at least for several months longer. mike santoli at the stock exchange. lawyers from facebook and google testified on capitol hill

about how social media was used to help russia try to influence the presidential election. kayla tausche has our re. >> reporter: in nearly 2 1/2 hours of questioning in front of the senate judiciary's subcommittee on crime and terrorism, top attorneys from google, facebook, and twitter told lawmakers that their platforms had limitations, that they had an imperfect ability to track ads, spending, and the customers at the end of those purchases. here's twitter's acting general counsel. >> we have to figure out a good process to understand who those customers actually are that are signing the contract with twitter to run ads. >> reporter: he said the company believes that some 5% of the accounts on the platform are fake, but that because they allow users to sign up anonymously, they can't be sure. in prepared testimony, twitter said that there were some 37,000 accounts that they found to be linked to russia. facebook said that russian sponsored content ended up in the news feeds of roughly 126 million people or more than half

the u.s.'s voting population. and google said that videos uploaded by accounts linked to russia were viewed more than 309,000 times. those were metrics that lawmakers honed in on, asking how these could go untraced. it comes amid two days of questioning on capitol hill for these silicon valley executives whose companies have become the poster children for foreign influence in the 2016 election. on wednesday, the companies will appear before the house and senate intelligence committees where they will face further ab took place during the campaign in 2016 and beyond, and what they are doing now to fix it. for "nightly business report," e, the federal reserve began its two-day policy meeting. and while not much is expected tomorrow as far as interest rates go, the focus will be on the december meeting. so what is wall street expecting?

steve liesman asked the experts. >> reporter: expecting a statement tomorrow from the federal reserve, the cc fed survey shows 98% of our respondents expect rates to stay unchanged. 96% say there will be a third rate hike coming in december, a bit higher than the mark prices. three rate hikes are expected in 2018. let's see what that does for the outlook for rates in the long run. there's the one hike for 2017, 1.4. there's three more hikes built in for 2018. and then just two more, leading to a very low long run rate of 2.9%. that's the bottom of the cycle for many other times we've had the fed hiking and raising rates. let's look at the outlook for stocks. just very much the gains for the year already priced to just 1.7% geared to an s&p level of 2617. going up next year to 2700 for a

gain from 2017 to 2018. we asked about the corporate tax cut the president proposed. is 20% the right number? 58% of our respondents say yes, it is, 12% want it lower. but there is one big disagreement they have with how this is being proposed. we asked should tax cuts or tax reform be did he have s neutral. 56% say yes. 44% say no, you can do it while raising the deficit. for "nightly business re coming up, tackling the housing problem through training. >> reporter: the labor shortage in the housing market is only getting worse. one denver area homebuilder is attacking the problem head on. we'll tell you about it, coming

home prices rose sharply in august. it runs more than 6%, more than 1% per word, from a year ago. while rising home prices are generally viewed as a position, the rate of increase is starting to keep out some potential buyers, and possibly hurting sales. another reason those prices keep climbing higher, the country needs more homes. but a severe shortage of labor is standing in the way. but now, one homebuilder in colorado is putting its own money into education, actively recruiting and training a new generation of construction workers. it hasn't been easy. diana olick goes back to school in denve >> reporter: inside an unassuming warehouse on the outskirts of denver, 18 students

are learning how to saw, drill, plaster, and paint. they're learning how to build a house. 18 might not sound like a lot. but today's homebuilders are desperate for every last one of them. >> every single year, the labor situation has basically gotten worse. people retire, nobody replaces them. as an industry ultimately we have done a lousy job marketing our opportunities to yop >> reporter: so oakwood homes, owned by berkshire hathaway, hosted a nonprofit boot camp to teach basic constructions skills. the classes are free. how can you afford it? >> we cannot afford not to do it. >> reporter: the academy hopes to graduate 200 students from 11 boot camps this year and double that next year. the students range widely in age, race, and gender, from a millenial software salesman to a 48-year-old hairdresser. >> this is something i've always wanted to do, i've always wanted

to learn how, this is a great opportunity that came up. >> reporter: but it has been hard to fill these classes. >> i wish we had them banking do bag dow the door. we don't. not a lot of people are looking for a job in the trades as their first career. we actively recruit every day. we go to job fairs, schools to talk about career opportunities, we talk to local workforce offices all the time. we have a lot of community organization. >> reporter: oakwood has put over $1 million into this and is working with other companies and organizations to grow the company. this is an oakwood-owned house framework factory which donated part of its space for the academy, putting potentially employees right around the corner. graduates like 25-year-old alexis are finding work fast. >> i felt confident after eight weeks. a lot of it is problem solving and creativity.

>> reporter: her boss says she he's doing well. >> we'll give her additional training depending on where they wants to go with this. >> reporter: graduates can command higher salaries sooner. but the message is clear. it is never too late to start. >> i'm 48 years old. it's now or >> reporter: for "nightly business report, i'm diana olick in denver. under armour slashes its full year guidance. where we begin tonight's market focus. the athletic apparel maker could be losing its appeal in north america, its largest market. the company saw weaker demand in the u.s. and canada, causing sales to fall more than expected. under armour down nearly 22% on the session to $11.53. consumers around the globe are swiping their master cards more often. the credit card company said an increase in prepaid card use helped the company top wall

street expectations. mastercard said it expects to report higher expenses for 2017. that pushed shares down 18 cents to $148.77. sales unexpectedly rose at cereal giant kellogg as the company said results were helped by cost cuts and higher demand for the company's frozen foods and more natural products. it was the first sales increase in more than two years at kellogg's. the maker of rice crispy's saw its shares snap, crackle, and pop, 6%, to $62.53. stronger than expected demand for pfizer's new pneumonia vaccine helped the company top expectations. the company said it would make a decision next year on whether or not to sell its consumer health business. pfizer shares off a fraction at $35.06. aetna reported earnings that topped analysts' estimates. but fewer affordable care act members caused revenue to fall at the health insurer. the company said earnings growth

will slow next year because of a 3% industry-wide health insurance tax. aetna's shares fell fractionally. after the bell, the video game publisher electronic arts reported a narrower loss and revenue in line with estimates. the company's guidance for revenue during the holiday season came in just shy of estimates. shares were volatile in the extended session. they finished the regular day up nearly 2% to $119.60. hilton will pay $700,000 to the government following a data breach at the hotel operator that exposed hundreds of thousands of credit card numbers. the settlement resolves claims that the company had inadequate cybersecurity and failed to tell customers of that hack right away. shares were off half a percent to $72.28. exxonmobil and pdc energy will pay a combined $5 million to settle allegations by federal officials that both companies violated environmental laws. exxon and pdc denied any

wrongdoing and pledged to spend millions on system upgrades. exxon shares were off 19 cents to $83.35. pdc rose 2% to $50.93. americans are moving closer to being able to ride in self-driving cars, that's right, cars without anyone behind the wheel, giving people rid w waymo, spun off from google's parent alphabet, is betting the future is a lot closer than you think. phil lebeau takes a hands-off approach t. >> reporter: after stepping into waymo's self-driving minivan and telling the van to start driving, i admit it was a little odd to see the steering wheel turn with no one in the driver's seat. after that, the self-driving minivan provided an uneventful ride, which is exactly what waymo is counting on. reassuring passengers why it may

be slowing down or waiting to proceed on its route. waymo says it's getting close to putting self-driving vehicles on public roads for large numbers of people to use, not just in test programs. meanwhile, the race to develop driverless cars is heating up. gm's cruise automation is expanding. its test cars will soon be on the streets of lower manhattan. the ceo says her company is taking drivers out of some test vehicles. but there are hurdles to clear before we see widespread use of self-driving cars. for example, what are the government regulations? will safety drivers be needed behind the steering wheel in case of an emergency? and is the public ready to accept robocars zipping around town? even after 3 1/2 million miles on public roads and countless hours testing scores of traffic situations, waymo says it's still learning how to make self-driving vehicles as safe as possible. but after going behind the walls of waymo's test facility here in

california, it's clear the technology focused on making passengers comfortable has hit a point where self-driving cars and the technology behind those cars is close to hitting the street. phil lebeau, "nightly bu. coming up, dodger green? the big money spent to get l.a.'s team a cham yesterday netflix said its his series "house you of cards" ending. today the company said production was being suspended until further notice following allegations of sexual misconduct against star kevin spacey. netflix and the show's producer

issued a joint statement saying the suspension will, quote, give us time to review the current situation and address any concerns of our cast and crew, end quote. netflix shares were off 1% today. one thing that is happening tonight is game six of the world series. both teams have undergone stunning transformations over the past few years to get to this point. the astros, once one of the worst teams in the game, and not very long ago, built from within and used the draft. the dodgers went a different route, using money to go from near bankruptcy to the brink now of a championship. they're down three games to two. they spent a lot of money. jane w. >> reporter: when the houston astros won game five of the world series in an extra inning nail-biter, they did it on the cheap compared to their opponents, the los angeles dodgers. that put even more pressure on the richest team in baseball to stage a comeback.

>> we'll make sure we win and have a great team on that field every day. >> reporter: it's been five years since a team of investors bought the dodgers out of the bankruptcy for a whopping $2.1 billion. every year since, the team has had the highest payroll in baseball, reportedly investing in the biggest analytics team and coming close to the world series but never close enough, until now. >> your work can buy you championships. all the people we have doing analytics and involved in finding better solutions, all of that, you call it money, but we invest in our people, we invest in our r&d. and i think all of that pays off. we won our division five years in a row. here we are in the world series. >> reporter: after spending all that money to bring home a championship, dodgers owner have billions left over from an epic cable deal they signed which still prevents most of los angeles from watching regular season games. people have come here to watch the games live at the largest stadium in the league. every year under new management,

dodger home games have had the highest attendance in baseball. but it's all on the line tuesday night. and win or lose, the owners win. and fans this halloween have more to celebrate than they've had in nearly 30 years. for "nightly business report," jane wells at dodgers stadium. and that does it for us tonight on nbr. i'm sue herera. thanks for joining us. >> i'm tyler mathisen. thanks for joining us,

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