>> announcer: this is "nightly business report" going global. the bulls seem to be in control across the globe, as indexes far and wide hit new highs. rush to ing to showrooms. why are more americans driving off with new cars? when the unexpected happens, a life changing event strikes suddenly. our sharon epperson shares her story to help you avert a financial catastrophe. those stories and more on "nightly business repo" for wednesday, november 1st. good evening, everyone, and welcome. it feels like the entire world is in rally mode. at one point today all three of the major u.s. indexes were at record levels. a pretty good way to start the

month of november and continues a trend we've seen all year. earnings in focus, so is the fed. the economy is solid. details of changes to the tax code are finally scheduled to be released tomorrow. when mixed together, this is how we started the new month. the dow jones industrial average gained 57 points to 23,435. nasdaq came off record levels to close down 11. the s&p 500 added four. and as bob pisani reports, investors are putting their money into stock marke >> reporter: global markets kicked off november with a bang. we've already seen big inflows and record highs. several key factors are driving the strong inflows, i mean good volumes. first and most importantly, global economic expansion and improved global earnings. along with it are the primary drivers for stocks. pro growth government in japan and india as well as in the u.s. investors have high hopes for moderate leadership and the arrival of a tax bill, finally.

in asia, the japanese nikkei closed at the highest level in 21 years. hong kon hit a nine-year high. in europe, germany, norway, and sweden also rose to historic highs. belgium, the netherlands, france are at a ten-year high. there's a clear global growth story going on. here in the u.s., tech had a monstrous month in october. the s&p was up 2%. it's a lopsided gain. it's all about technology, which was up nearly 8%. what's worse than that is the fact that five stocks were responsible for most of the gains. facebook, amazon, apple, google, and microsoft accounted for half of that 2% gain. without them, the s&p would only be up about 1%. for "nightly business report," i'm bob pisani at the new york stock exchange. let's turn now to david levovitz for more on this global market rally and what it means for stocks in the u.s.

he works at jpmorgan asset management. welcome back. >> thanks for having me. >> let's start with where bob pisani left off. he gave us the litany of markets either at record highs, near record highs, performing extremely well. does that mean globally assets are overvalued, or is there still some value to be found? >> so, you know, i think in general today relative to coming out of the financial crisis, it's important to recognize that assets do in fact look more expensive. however, we do see upside in global equity markets. we think that fixed income looks a bit pricey. on a relative basis, equities look cheaper. earnings growth looks fairly robust. when you're buying that share of stock, what you're paying for are a share of those future cash flows. the good news is those cash flows are present today, whereas a couple of years ago that wasn't necessarily the case. >> how did this happen? how did it happen that all of the markets around the globe and

most of the economies around the globe are in growth mode? >> so the u.s. has been in a slow but steady growth mode for the better part of this expansion. economy up into territory. thinking about the emerging markets, from about mid-2014 until the middle of 2016, the world was in this manufacturing recession. the dollar was incredibly strong. goods producers are struggling. but we seem to have turned the corner on that. we've seen continued moderate growth in the u.s., accelerating growth across the eurozone, and emerging markets are coming back online as commodity prices have stabilized. it's a goldilocks scenario, a perfect storm of good news for the global economy right now. >> the u.s. fed is expected, they left interest rates unchanged today but they are expected to raise rates in december. does that negatively or positively affect your outlook for the markets? >> yeah, i think a december rate

hike at this point is priced into markets. it doesn't materially affect our view over the next three to six months. thinking me, we do have the prospect of a new fed chair early next year. i think that could lead to a different trajectory for interest rates going forward. the real risk for investors is that interest rates begin to rise very quickly or very suddenly. it's really the magnitude and the trajectory of rate increases that people need to be focused on. as long as the fed keeps tell graphing what they're thinking and sending a relatively clear message to investors, i don't think high interest rates will impede the rally and risk assets. >> thank you, david, david levovitz. a closely watched gauge of manufacturing activity remains at a 15-year high despite falling back slightly in

november. domestic spending on capital equipment is rising, a positive for the manufacturing sector. >> one reason for the pickup in manufacturing activity is auto production. and an increase in vehicle sales. that trend continued last month, thanks in part to a rebound in business after hurricanes harvey and irma. but it was also the strength of the economy that pushed more people into showrooms. phil lebeau goes behind >> reporter: fall is turning out to be a busier than expected season for many auto dealers. for the second straight month, sales were stronger than many anticipated. among the industry leaders, nissan had its best october ever, while ford beat sales estimates. thanks to heavy demand for its f series pickup trucks. sales of the country's bestselling model surged almost 16%. some of that is due to a rebound in business after hurricane harvey destroyed more than a half million vehicles. many of them pickup trucks. but the overall strength of sales, especially for higher

priced suvs and crossover utility vehicles, is also due to the health of the economy, primarily low unemployment and high consumer confidence. and incentives remain near all-time highs, with automakers taking off an average of almost $3500 per vehicle. while the auto industry is not running at the record sales rate we saw last year, the surprisingly strong numbers in october means 2017 is on pace to be one of the top five best years ever for auto sales in the u.s. phil lebeau, "nightly business report chicago. private companies added the most workers to their payrolls in seven months. adp's national employment report showed an increase of 235,000 jobs last month, exceeding forecasts. the number of construction jobs rose following hurricanes harvey and irma. the manufacturing industry added positions. the government employment report is due out friday. expectations on that one are

that the economy added more than 300,000 jobs in october. as we mentioned earlier, the federal reserve did not raise interest rates today but left the door open for one in december. policymakers said the economy continued to expand at a solid pace despite disruptions caused by those recent hurricanes. it also cited two key components of economic activity, household spending and business investment, saying both are expanding at a moderate rate. the president tomorrow is expected to announce his pick for the top job at the federal reserve. there are reports tonight that federal reserve governor jerome powell will be nominated to the top spot. according to "the wall street journal," the president spoke to him today and notified him. if confirmed by the senate, powell will succeed janet yellen whose term expires early next year. the tax bill was not released today. house republicans in consultation with the president postponed the rollout by one day to add finishing touches to some

of the details. ylan mui tells us where things stand. >> reporter: republicans, forced to delay the release of their tax plan until tomorrow, failed to reach agreement on the details. the holdup, the state and local tax deduction. house republicans from high tax states don't want to get rid of it. congressman pete king of new york says he'll vote against the tax bill to protect this provision. >> while i certainly favor a tax cut, i don't want the rest of the country to get a tax cut at the expense mistake constituents on long island. >> reporter: negotiations over this bill are still under way. but here's what we've learned so far. the corporate rate will go down to 20% immediately. it won't be phased in. the top individual rate is expected to stay at 39.6%. but we don't know what income level that will affect. and we're hearing the estate tax will be gradually phased out. king and other republicans were upset that they were not briefed on the details even though a

vote is planned within a matter of weeks. representative patrick mchenry, a member of the tax writing committee in the house, says republicans have been talking about tax reform for years. >> the ways and means committee members that i serve with have been working on this in detail for the last 3 1/2 years, and have put really blood, sweat, and tears into this over the last ten months, getting the details right. >> reporter: every day that republicans delay gives democrats more time to mount their opposition. democratic leadership along with the progressive group not one penny held a rally against the tax plan today. and the ranked democrat on the ways and means committee told us that the partisan bill is a missed opportunity. >> there should be an opportunity here for by partisan cooperation. there is full acknowledgement across the congress that the current system is broken. and i think that the best lesson here would be for both parties to sit down and negotiate their way to creating a more efficient

tax system for the american people. >> reporter: republicans now plan to deliver their tax bill on thursday. and they say they're still on track to take it up in committee next week. for "nightly business repor i'm ylan mui in washington. still ahead, is anything more important than profit to a ceo of a publicly traded company? one says y

shares of movie theater chains moved lower today in part because of a "wall street journal" report that says disney wants new distribution terms for its movies, specifically the next installment of the "star wars" franchise, "the last jedi." disney looks to get 65% of ticket sales and mandate a minimum four-week run for the movie in the theater's biggest auditorium or the theaters will be penalized. here's how shares of movie theater chains finished for the day. in washington, senators were frustrated by testimony from social media executives on their response to questions about russian interference in last year's presidential election, using platforms like facebook, google, and twitter. the ceos did not testify, but facebook, twitter, and google's

general counsels there. the chair and vice chair of the committee both charged the sites to do more in finding out how foreign actors use ads and manipulate messaging. >> very clearly this kind of national security vulnerability represents an unacceptable risk. and your companies have a responsibility to reduce that vulnerability. this isn't about who won or who lost. this is about national security. this is about corporate responsibility. and this is about the deliberative and multifaceted manipulation of the american people by agents of a hostile foreign power. >> california senator dianne feinstein, who represents silicon valley, went as far as to call it the start of cyber warfare, and that if the companies don't do m >> we are not going to go away, gentlemen. and this is a very big deal.

i went home last night with profound disappointment. i had specific questions. i got vague answers. and that just won't do. >> many senators say a lot more work needs to be done. the companies faced questions yesterday from the senate judiciary committee. even though facebook is at the center of a political firestorm, the company reported earnings that trounced estimates. facebook saw its ad sales rise as it's pushed further into video advertising. the company pulled down $1.59 a share. analysts expected just a buck 28. revenue increased by 47% to more than $10 billion. that also beat estimates. the stock rose in initial hours trading and then started to drift a little bit lower. the backlash from lawmakers, ceo mark zuckerberg says he's focused on preventing abuse even at the expense of profits. julia boorstin has details. >> reporter: facebook exceeding all expectations, blowing past

projections on the top and bottom line on user growth. the biggest headline, ceo mark zuckerberg saying the financial success doesn't matter if the site is used in ways that don't bring people closer together. he says the company is serious about preventing abuse on its platforms, warning that, quote, we're investing so much in security that it will impact our profitability, saying protecting our community is more important than man myse our profits. his comments come on the heels of the company's testimony on capitol hill today. for "nightly business report," i'm julia boorstin in los angeles. estée lauder forecasts a rosy holiday season. that's where we begin tonight's market focus. the cosmetics maker says its efforts to appeal to the millenial demographic are paying off. the company, which was acquired brands popular with that generation, reported a better than expected rise in sales and profits. the company also saw solid

demand in its international markets and raised its sales guidance for the quarter. shares of estée lauder popped 9% to $122.12. "the new york times" said a rise in digital subscribers helped it top expectations but revenue suffered as print ad sales fell. the company said pressure in the ad space would hurt holiday advertising sales. shares as a result were off almost 6% to $18 even. garmein raised its full yea outlook, saying strong demand in its aviation and marine units helped to offset lower sales in its fitness and auto businesses. shares of garmin up to $59.80. southern company reported stronger than expected profits but saw sales come up short. the power supplier said poor weather conditions contributed to the decline. >> we had an exceedingly mild

weather for the whole year, really. for the quarter, it was ten cent mild. what we've done is make that up on expense management, but not just cutting costs. modernizing the company, improving efficiency and reliability and customer service through investment in technology. >> shares of southern fell 1% to $52.08. after the bell, shake shack recorded a rise in overall revenue and profit, beating estimates. the burger chainsaw a drop in same store sales but it wasn't as bad as the street figured on. the company announced plans to open new company operated and licensed stores next year. shares initially higher after the bell, but ended the regular session down 2% at $37.15. cheesecake factory reported disappointing same store sales because of the hurricanes. shares of cheesecake factory

fell in the extended session but closed the day up a fraction to $45. fast casual chains like cheesecake factory are competing for the same dollars as the fast food restaurants. these days, consumers are making a clear choice. and shareholders are paying attention. kate rs tel us what's on the menu for investors. >> reporter: while fast food names like mcdonald's and burger king are seeing big gains, casual dining has continued its slide. a few major trends are happening. first off, there are too many casual dining restaurants. moody's highlighted this, saying despite softness in traffic, restaurants continue to open new locations while foot traffic across the sector has been flat. for example, since 2012, brinkers added 100 locations for chili's. cheesecake factory added 30 restaurants in the same time. consumers are also flocking to cheaper food items that fast food restaurants serve since wages are low and housing costs

high. at the same time, casual dining chains have raised prices and shifted menus around but are not necessarily increasing quality. >> there's certainly been an improved product quality among some of these limited service chains. it's not just mcdonald's, but you're also talking about things like panera and chipotle that have really upped their game in terms of ingredient quality and convenience. that over the past decade has really been hurting casual dining traffic. >> reporter: another reason, it's continually cheaper to shop at the grocery store than to go out to eat. a final important factory, teen spending. piper jaffray reported foods and restaurants are focal points for teens who tend to migrate more to places that serve food fast. casual names like brinker are taking note, reducing their menu at chili's to focus on burgers, ribs, and fajitas while working on speed. i'm kate rogers for "nightly business report. >> comup, a life emergency can quickly turn into a financial one when the unexpected happens.

sharon epperson is back tonight and shares. here's a look at what to watch for tomorrow. dow components apple and dowdupont will report their financial results. we'll check in on the labor market with the weekly jobless claims. and the highly anticipated tax bill could be released tomorrow by house republicans.

that's what to watch for on thursday. now to an inspiring story with an important lesson for all of us. nobody likes thinking about the unexpected. when your life and finances could change in an instant. our friend and colleague sharon epperson was faced with exactly that situation a year ago. fortunately she did plan ahead. this is her incred. >> reporter: reporting on how to manage, grow, and protect your money is what i do. >> the bottom line is you probably need to be saving more than you're saving right now. >> reporter: planning for the unexpected is critical. that i know. because it happe the day started like many others. making sure my son and daughter got off to school, and coordinating schedules with my husband. then i went to exercise before heading to the studio. i lifted some weights, started stretching. suddenly i felt incredible pain. the worst headache of my life. the rest of the day became a

blur of doctors, hospitals, emergency rooms. scans and images revealed bleeding in my brain. a bulge in the wall of a main artery there had burst. it was a ruptured brain aneurysm. >> the doctors have told us she could lose her life or the things that make life worth living. of those which is worse. >> reporter: surgery was just the beginning. i spent two weeks in intensive care followed by long days of rehabilitation. >> and ready for my recovery! >> reporter: relearning how to keep my balance and walk up stairs. from caregiver to being cared for, my recovery was more demanding than we ever expected. >> suddenly you're immersed in this medical frenzy of making choices that could define your life and your family and your future. >> reporter: and getting back up to speed on running my family's finances took time. thankfully, i had planned ahead.

something financial adviser stacy francis says many fail to do. >> the number one reason for bankruptcy is actually medically related. if you're not preparing, you could be putting yourself in a disastrous situation of having to use credit card debt, even going into your retirement plan. >> reporter: ample emergency savings and disability insurance helped pay the bills while i was out of work. and it's why preparing for the unexpected is something all of us need to do. >> make sure that you have at least three to six months of your living expenses. the next thing, look at your disability insurance. does that pay you enough that your financial situation would still be comfortable and secure? and finally, make sure that your estate planning is updated. >> reporter: the steps i took before my brain injury allowed me to spend time with loved ones instead of worrying about money. my family and friends helped me get stronger, encouraged me to walk farther, and cheered me on

as i reached another milestone in my recovery. finishing my first ever 5k race. >> this was the first race she had ever done. the fact that she prepared for it through illness, that >> we're glad to have you back. >> i'm glad to be here. >> we missed you. what was it like finishing that race? >> that race was incredible, because my husband was there, my kids were there with me, some of my dearest friends. we were all running to support the brain aneurysm foundation and running to show that i was celebrating life and celebrating life with my loved ones. >> exactly. your experience is so incredible. we've missed you so much, sharon. i'll try not to cry. but you really showed us how you have to plan. but it's difficult to know how much you need, the guidelines of how you go into long term disability insurance and all of the other things that you had man for. >> disability insurance was

critical for me. you can get it through your job, usually 40 to 60% of your salary will be covered by disability payments. and that's great, that helps. but you may even want to buy a private disability insurance policy to cover even more. it will never get to 100%, but it really will help when you're unable to work and get those paychecks. >> i've always heard those statistics that at any given age you're far more likely to have a disabling event, as i did earlier this year when i had surgery, as you did, then to die. >> exactly. we've said that so many times to our audience. and now it happened to me. it's so true. >> and yet people dismiss disability. how did your estate plan help in all of this? >> so i was unconscious at the beginning. i could not make the medical decisions that were necessary for the emergency care. my health care proxy did that. i was not able to make financial decisions. my health care proxy did that. my husband is my health care proxy, the successor is my sister, they worked together to make those decisions when i couldn't do it. >> you are an inspiration on so

many different levels. >> i've been inspired by so many along this journey. >> and thank you for sharing that with us. >> thank you. >> to read more about sharon's story, head over to our webbed, nbr.com. great to hav before we go, here's another look at how the markets started november. the dow gained 57 points. the nasdaq came off record levels to close down 11. and the s&p 500 added four. that's "nightly business repo" for tonight. i'm sue herera. thanks for watching. >> and thanks from me as well. i'm tyler mathisen. we'l

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