>> announcer: this is "nightly business rep with tyler mathisen and s two-week losing streak. the dow and the s&p 500 fall for the week as tax reform worries home sweet home. looking to bui some wealth? why you may be better off not buying a house. and a new approach to pain. doctors want to develop n nonaddicti medicine and they're looking to genetics for health. those stories and more tonight on "nightly business report" for friday, november 17th. good evening, everyone, and welcome. a wobbly week for stocks which saw both triple-digit gains as well as triple-digit losses. the debate over tax reform and corporate news keeping investors on their toes, as is the bond

market, which some say is raising concerns about economic growth. today when all was said and done, the dow jones industrial fell 100 points to 23,358. the nasdaq fell ten and the s&p 500 dropped six. for the week, the dow and the s&p 500 reported their first two-week losing streak since august. the nasdaq, though, was higher. with tax reform on the minds of investors, the senate finance comme voted along strict party lines late last night to advance the gop proposal. but a heated exchange erupted at the end of the hearing with ohio democrat sherrod brown and utah republican orrin hatch, the chairman, arguing over who really benefits. >> this tax cut is really not for the middle class. it's for the rich. the whole thing about higher wages, we know companies don't give away higher wages. just because they have more money. corporations are sitting on a lot of money now, they're sitting on a lot of profits now,

i don't see wages going up. spare us the bank shots, spare us the sarcasm and the satire. >> i'm just just say to you that i come from the poor people. and i've been here working my whole stinkin' career for people who don't have a chance. and i really resent anybody saying that i'm just doing this for the rich. give me a break. i think you guys overplay that all the time. and it gets old. and frankly, you ought to quit it. >> mr. chairman -- i get kind of sick and tired of it. it's a nice political play. >> well, mr. chairman, with all due respect, i get sick and tired of the richest getting richer and richer. we do a tax cut -- >> regular order. >> -- over and over and over again. how many times do we do >> senate republicans are hoping

to hold a vote on their tax plan after thanksgiving. and in an interview today, the treasury secretary said he's >> we're very excited about the timeline. i mean, yesterday was obviously a huge day in terms of having the house pass the bill. that's a great move forward. we're going to have the senate as soon as they get back from thanksgiving, vote on the bill. and our expectation, it will go to conference right away and we have every reason to think we'll get it to the president's desk before christmas to sign. >> democrats say republicans are rushing the bill through congress. the white house is asking congress for $44 billion in hurricane aid to help people in puerto rico, florida, texas, and the u.s. virgin islands. the request was short of what some officials say is needed. puerto rico's governor is asking for $94 billion, for example. texas, $61 billion. florida has requested $27 billion. the white house budget director said that today's request is not

the final one. one federal reserve official says that the u.s. economy is growing enough to withstand an interest rate hike next month. the president of the san francisco fed, john williams, is also looking for three interest rate increases next year, bringing the rate to about 2.5%. the fed currently targets short term interest rates of between 1 and 1.25%. new home construction surged to the highest pace of the year in october, but much of that was rental apartments. with home ownership rates still at historically low levels, at least in recent history, developers are betting big on rentals and a new study backs that. diana olic >> reporter: homebuilders were busier again in october, starting new projects at the fastest pace they have all year. much of that was about back in the hurricane-ravaged south. but the biggest driver was here

in rental apartments, surging 37% for the month and signaling demand for rentals is still very strong. supply has been building in the multifamily sector as home ownership remains historically low and the supply of entry level homes for sale is extremely tight. while some, especially politicians, tout the benefits of home ownership, a new study says just the opposite, that it is not the best way to grow your wealth. economists at three different universities found that households can make more money investing in stocks and bonds than they can owning a home and waiting for that home value to appreciate. of cours all real esta is local, and price volatility various market to market. so the researchers matched local markets with comparably volatile investment portfolios. the portfolios still won. for this comparison to work, the renter must invest the savings from renting into stocks and bonds.

if i'm saving a hundred bucks by renting compared to owning, i can't spend that on shoes. i have to invest it. owning a home means insurance, property taxes, and everything that leaks and breaks. now that the tax breaks that make home ownership enticing are at risk in the republican tax plan, that makes renting more attractive. for "nightly business report," . owning a home has been the american dream. but according to that study diana just referred to, it may not help you build the wealth that you would expect. so is renting the solution? here to talk more about that and the study's findings is one of the co-authors, generken johns h florida atlantic university's college of business. welcome, nice to have you here. >> glad to be here. >> do you think that renting overall gives the person an advantage in terms over time? >> it depends on an individual's savings, our ability to save, or their discipline in terms of

saving. as a general rule, americans like consumption. and home ownership at its core is a self-imposed saving vehicle. it's not always the same for each individual. in our model, we assumed the renters are monastic savers and will reinvest. >> how monastic are we talking about here? because i assume you can tweak the assumptions. one would be, how fast are prices rising in the market you happen to be in. it might be a great market in san francisco and a lousy market in youngstown, ohio. but to get it to come out, i mean, does this mean i have to take my down payment and invest it? does it mean all the difference between my rent versus my mortgage plus insurance plus property tax plus maintenance charges and invest that difference every month? >> no. it only means that you would need to reinvest your down payment savings that you would have. you wouldn't save them and put them under your pillow. you would actually reinvest the

down payment. >> okay. >> you would also reinvest any payment savings in terms of a rental versus a mortgage payment. historically when you rent a particular property remember the rental payment on it will be lower than, say, your mortgage payment, assuming you get a fixed rate mortgage. but through time your rent will climb up and eventually reach and then go above that of your fixed rate mortgage payments. we account for both of those in our model. but we only assume that you need to reinvest your down payment monies and any monies that you would be saving each and every month. once we go past to where rent becomes a negative in terms of it's now more costly to rent than to own on a monthly payment basis, then it hurts the portfolio a little bit. but none of that changes the results. renting and reinvesting on average wins. >> how does it gel with the fact that as ty mentioned, all real

estate is local, but if you're investing in a strong market, you may do well, but, you know, what if you happen to time it so that you're investing in a bear market or a negative market? >> the markets tend to be highly correlated with property appreciation. it's perfe coordinated, but thd on average to be highly coordinated. they're putting their investment in a better investment vehicle. >> i don't know if i'm goingy h loves to work the 0 house. >> thank you for joining us, ken johnson. ahead, new hope for managing pain with nonaddictive m

the keystone pipeline spills 5,000 barrels or more than 200,000 gallons of oil in south dakota. and the leak comes just days before the state of nebraska is set to decide whether to approve a sister pipeline. trans-canada, the company behind the pipeline, says the leak has been contained and that it is investigating the cause. but it did send the shares of trans-canada lower in today's trading session. shares of 21st century fox rose today on reports we first told you about last night. comcast said to be in talks to buy fox's worldwide entertainment and distribution assets in exchange for comcast shares. the addition of fox's stake in hulu will give comcast control of that company's streaming service. all the deal talk hasn't gone

unnoticed by cbs chairman les moonves who said that cbs may have to do a partnership of its own. >> now we're competing against monstrous companies. disney is six times as big as we are. comcast is six times as big as we are. netflix's market cap is huge. now amazon, the number one company in the woris producing content. we're like an old fashioned production company, a small guy. eventually will we need to do partnerships with other content companies and distribution companies? the answer is probably yes. >> moonves isn't the only media executive talking about the changes in the industry. john malone said the cable industrys opportunity to compete with netflix, add that go now it's way too late. on wall street, a number of companies made their debuts today. but as bob pisani reports, investors seem to be losing interest in initial pu

>> reporter: the ipo market is heating up again. but some fatigue may be setting in. it's been a very active fall for ipos, there's been 150 of them, way ahead of the 105 we had last year. six ipos began trading days, one of the busiest trading days of the year. the e-commerce apparel darling stitch fix priced below their range but opened strongly. enterprise security firm salepoint technology, they track users on company networks to make sur no unauthorized activity occurs. they priced above the range and they also opened strong. there's signs of fatigue, like i mentioned. four of the six ipos that began trading today were priced at the low end of expectations or in the case of stitch fix, below expectations. this tell us that investors believe the companies are trying to price their ipos too high. this is a big issue earlier in the year when companies cut the prices, the companies traded better after they went public. we may be seeing that again.

three companies postponed their ipos this week citing market conditions, in other words they couldn't get the price they wanted. we've seen a raft of chinese ipos in the past few months. many of them traded below their initial prices. the bottom line, the ipo market is definitely back but investors aren't willing to pay what they see as inflated prices. for "nightly business report, i'm bob pisani at the new york stock exchange. as an energy play he says should provide a great dividend and etf pick that stands to benefit from tax reform, he thinks, and an etf for investors looking for yield. it's his first time on the program but he's going to do just fine. he's the ceo of lanberg thalman, thanks for being with us. let's get your thoughts about this second week in a row of a little bit of a swoon for the market.

is it anything you're worried about? >> no, not really. if you think about earnings season, it's pretty strong. total earnings up around 7%, and total sales, which i care more about, over 5%. those are total numbers. housing starts came up today, you see inflation moderating, wages up 2.5%. those are all good what we call numbers, the economy is warm enough to keep going. that will support stocks. >> your first pick, the i shares russell mid-cap value etf. >> you think about that wonderful term, a santa claus rally, going to the year, there's a lot of euphoria around consumer spending, that's what's held up the economy. mid-cap value stocks are only up 9% of the year, sister stocks, mid-cap growth, are over 21. you're going to get a market that's going to do well in the fourth quarter because of companies like best buy and royal caribbean and names you know, consumer names you know are going to do real well in

this fourth quarter. so fourth quarter earnings, strong consumer, and then tax cuts. tax cuts will have a profound impact on middle company stocks, mid-cap stocks. >> all right. >> pay higher tax rates. you win on two fronts. taxes and you win on -- >> the number two is another etf, the fallen angel, i'm thinking of the frankie valli song, tell me about it. >> a lot of folks are afraid of high yields, it's been a great high yield run. this is a great way to buy higher yielding bonds that aren't as risky as traditionally. the fallen angels like sprint, they didn't get the t-mobile deal done, the stock and bonds sold off. it's a $25 billion market cap company. to call it high yield is a misnomer. it's a fallen angel because it's fallen a bit, you get it cheap, you find value in it and get a big dividend. that's what you want, being in the high yield space with less

risk. >> and we finish up with western gas partners. why do you like it? that's my fun one. for those who want to take a little risk, the stock looks terrible, down 17% on the year. the reason why is earlier in the year, working with their parent company, they issued a bunch of new shares. they converted their preferred stock into common shares. it diluted the company, meaning they had more shares and it put the pressure on the stock down 20%. the fundamentals of the company are very strong. they get 7% dividend, they get lots of cash coming in. if you're like me and you believe in the future of natural gas, i think that's the number one heating source going forward, and a cold winter, you get a stock that's cheap with a big dividend, it's the energy future of the united states, you win on a lot of fronts. >> thank you so much. >> thank you. foot locker shares have their biggest gain since jimmy carter was president. that's where we begin tonight's market focus. shares of the athletic shoe

retailer soared after that company reported stronger than expected earnings and said it's made strides in its e-commerce platform and mobile app development. the company said there was a rise in development for nike shoes and says it's optimistic it can beat its guidance for the holiday period. the shares ran up more than 28%, their best one-day gain in 40 years. closing at $40.82. meantime, abercrombie's hollister brand helped to revive sales in the latest quarter. the teen clothing chain reported sales growth for the first time in a year. those results with earnings topped estimates and abercrombie is forecasting strong sales fortunae holidays. the shares took off to $15.55. a regulatory filing shows john flannery recently bought 60,0 shares in ge. the transaction was more than $1 million and could be viewed as

vote of confidence in the conglomerate. ge's shares finished down fractionally to $18.21. apple says it's delaying the release of its home pod speaker until 2018. the technology giant said it needs a little more time to tweak the $350 device and expects to launch it early next year. the product marks apple's first entry into the smart speaker world. and apple shares were off about a half percent at $170.15. despite facing challenging retail situations and two major hurricanes, ross stores said late yesterday it beat its own expectations for quarterly results. the off price clothing and home goods retailer blew past street expectations, hiked its guidance for the full year. shares finished higher, nearly 10%, at $72.25. the opioid epidemic now claims the lives of 100 people a day in this country. that's according to the centers

for diseasl and prevention. that has drug companies searching for new nonaddictive ways to treat pain. they're getting some important clues from genetics. meg terrell has our sto >> reporter: some might think steve has a hidden superpower. >> he broke his foot and it was kind of swelling up and he was having, you know -- it was uncomfortable and he was not walking like a normal person should. he just kind of duct taped it and went to work. >> reporter: pete is 36 years old. because of a rare genetic mutation, he's never felt pain. what may seem like a genetic gift is actually incredibly dangerous. pete has lost count of how many bones he's broken. >> somewhere in the high 70s, low 80s. >> reporter: and often doesn't realize he's severely injured himself until months later. his condition is called congenital insensitivity to pain or cip. it's only been identified in a few dozen people.

but it helps in the hunt for a whole new class of nonaddictive medicine to relieve pain. these siblings have the opposite problem, intense pain that nobody understands. >> one time i was having an attack for several days and finally i went to the hospital and they werlike oh, it's psychosomatic, there's nothing wrong with you. >> reporter: it her young niece started going through the same thing that she did some detective work. >> she was exhibiting the same symptoms, i said there's no way i'm letting her go through that. >> reporter: she identified a rare inherited condition known as man on fire syndrome. >> i was like, oh, my god, this is the first thing i ever read that actually sounds li what we have. >> reporter: genetic testing confirmed her suspicions. her two daughters have now developed it as well. as they separately dealt with their medical mysteries, what they didn't know was that scientists have been searching

for them for years. scientists like dr. steven waxman. >> we were searching for rare experiments of nature. >> reporter: waxman and his team treating pain, potential new driven by the discov w rare gen. their conditions are caused by mutations in the same gene, nav 1.7. >> it's like a volume knob on pain signaling. you turn it up, they'll be shouting when they should be whispering. turn it down, they don't make any noise, they don't send pain signals. >> reporter: now half a dozen drug companies are working on medicine targeting nav 1.7, trying to mimic pete's genes in the drug. >> we all feel a sense of urgency. this opioid crisis is really, we're living it right now. this is not something that we're anticipating. are potentially years away from hitting the market. and they must go through rigorous safety and efficacy testing and clinical trials. but researchers say they hold the promise of delivering pain

relief to millions of people. without the side effects, including addiction, of opioids. for "nightly business rep coming up, tesla unveils a new electric semi truck and roadster. but the company is facing a we want to remind you about a special program we're putting together on retirement on thanksgiving. we will explore the retirement crisis in america different ways you can fund your future. we want to know how you're saving and some of the challenges you're facing. tell us by logging on to nbr.com. click on "contact us."

you can post a comment on our facebook page or on twitter. if you have a question for our personal finance e-mail a short video to nbrmail@cnbc.com. amazon has been quietly going after truck drivers. the company has designed an app to help delivery drivers get in and out of the warehouses faster. the app is called relay. it's amazon's first attempt to automate the truck delivery process which relies on paperwork and is prone to errors. roughly 80% of cargo in the u.s. is transported by truck. tesla, the automaker, says it will revolutionize the trucking industry with an electric semi tractor trailer. fans of elon musk love it. skeptics point out tesla is still struggling to build its latest model and make money. phil lebeau is in awu hawthorn,

california. >> reporter: tesla says this is the future of trucking. all electric semis that go up to 500 miles fully charged and cost 20% less to operate than comparable diesel rigs. >> from day one, having a tesla semi will be a diesel truck on economics. day one. and this is a worst case scenario. >> reporter: trucking giant j.b. hunt says it will reserve multiple tesla semis. other trucking companies may do the same, interigued by tesla's new take, with touchscreens replacing standard instrument panels. while the tesla semi was the headline before tonight's unveiling, the real star is this beauty, the new tesla roadster. with a ridiculously fast zero to 60 time of 1.9 seconds, the all-electric roadster is expected to have a range of 620 miles. >> you'll be able to travel from

l.a. to san francisco and back at highway speed without rech. [ cheers and applaus] but the point of doing this is to just give the hard core smackdown to gasoline cars. >> reporter: tesla fans love the idea of a super fast sports car. but many are waiting and wondering when tesla will straighten out production problems that have slowed deliveries of the company's newest car, the model 3. >> at some point he's got to deliver those before he can, you know, convince everyone he's going to be able to deliver things lik trucks that have to deliver things for businesses and have to be reliable. >> reporter: tesla knows customers will remain loyal as the company plans for a future with electric cars and trucks. phil lebeau, "nightly business hawthorn, california. walmart says it plans to be among the first companies to pilot tesla's all electric semi

heavy duty truck. it ordered 15 of them in the hopes it will help the retailer meet its long term sustainability goals. walmart added it has a long history of testing out new technology. j.b. hunt, as phil mentioned, also reserved multiple vehicles for use on the west coast, sending shares of truck makers lower today. >> it will be fascinating to watch. that does it for us tonight on "nightly business re sue herera. thanks for joining us. >> and thanks from me as well, i'm tyler mathisen. have a great weekend.

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