>> announcer: this is "nightly business with tyler mathisen and sue herera. wow! what a powerful rally. the dow closes above 24,000 for the first time as investors pile on the wall street bull. tax reform momentum. the republican tax plan gains a supporter, pushing forward what could be the biggest revamp of america's tax code since the reagan era. unsafe toys? consumer advocat raise concerns about popular items just in time for the holidays. those stories and more tonight on "nightly business repor for thursday, nove good evening, everyone, and welcome. the world's most recognizable stock index had one of its best days of the year. the dow powered through 24,000,

passing yet another milestone in a year that has been full of them. in fact this is the fifth 1,000-point move in the blue chip index this year, the first time that's ever happened. investors' enthusiasm has been driven by the prospect for tax reform. strong corporate earnings, and a growing global economy. the dow jones industrial aver advanced 331 points today to 24,272. the nasdaq added 49. and the s&p 500 was up 21. and on this last day of november, the dow logged its longest streak of monthly gains in more than 20 years. bob pisani has more on the dow's run through 24,000. >> reporter: it was another banner day for the stock market. stocks roared higher on this final day of november with the dow smashing through the 24,000 mark to another high. the dow had its best day of the year. buying picked up steam early in the day when senator john mccain

said he would vote to support the senate's tax bill, boosting its chance of passing. small cap stocks would benefit the most from a tax base. the dow is a price-weighted index so higher priced stocks have a bigger influence on the dow's movement. that was the case again with the dow moving from 23 to 24,000. so higher priced stocks like unitedhealth, boeing, 3m, boeing, and apple distributed to the gains, accou more than 600 points in the dow's 1,000-point gain. health care, industrials, retail, technology industries were all represented. the one exception, goldman sachs contributed just about 20 points to the dow's gain. still, everybody's happy. for "nightly business repor i'm bob pisani at the new york stock exchange. as bob just mentioned, the brightening prospects of a major

tax cut especially for corporations contributed mightily to today's rally. every vote counts senate, of course. today the bill picked up a key one from arizona's senator john mccain. ylan mui is covering today's development from capitol hill. ylan, where do things stand as of right now? >> reporter: tyler, debate is still handing on the senate floor but this bill does appear to be gaining momentum, especially as senator john mccain has said that he'll be a supporter of this proposal. he put out a statement saying this legislation isn't perfect but he does believe it brings relief to american families. now, there could be one new wrench in the republicans' plans, that is a new government analysis that shows the tax bill would only generate an additional $407 billion in revenue over the next decade. and that is not going to be enough to cover the $1.4 trillion cost of the republican tax bill.

and that could also prove to be a problem for someone like se of tennessee. he's a fiscal hawk who has been on the fence on this bill. he's been trying to work on a compromise that would lessen the blow to the deficit. there are two other senators who are undecided, ron johnson of wisconsin and susan collins of maine. even these senators say they are still at the negotiating table. and republicans are still hoping to turn them to a yes. back over to you. >> ylan, thank you very much. ylan mui on capitol hill for a late night. as you just heard, the s&p hit an intraday record. the dow closed at a high and the senate is edging closer to passing that tax reform bill. but what does all this mean for investors? where we expect the markets to go from here? here to talk about that is kevin coran from washington crossing advisers, good to see you, kevin. >> good to be here, sue. >> it seems as if the market is kind of priced for perfection. they're convinced tax reform is

going through. the economy is going to keep pushing forward. corporate earnings will be great. that to me seems a little dangerous at this point. and we've had milestones that we've never seen before in this market. how do you feel about it? >> well, it's true, there is a point where valuations matter. but in the short run, the market has been focused on the improving growth outlook really that began a year, year and a half ago. add to that prospects for a fiscal push vis-à-vis a tax plan coming through, and you can see why there is some optimism here that's helping to sustain the momentum for the market. but you're absolutely right, we're looking at very high valuations in several markets. and if you look at where we go from here, maybe those valuations begin to weigh on returns. >> yeah, you know, stocks feel like bitcoin to me. they're knocking off thousand point markers every other day. but bitcoin has had a turn. let's move to next year, kevin. i wonder what your forecast is

for corporate profit growth. because that's really what underlies, doesn't i >> yeah, in the long run, that is really the thing you have to focus on. we're looking for healthy returns in terms growth in the s&p 500 earnings per share figure. maybe around 5, 6% range, driven mostly by top line growth. we are seeing better investment spending globally, capital spending is picking up. that all helps profits. but multiples are already fairly high. so you're right, earnings do have to carry the day here. it really has to be about the top line, because profit margins are already fairly full. >> you, you know, have to put money to work in this market. are you still finding opportunities? be valuations are very high. an >> we're finding fewer opportunities, say, than we did years ago for higher rates of return. the return profile has clearly come down as the valuations have lifted and reflected all of this

good news. however, you still have to invest money. when you look around at other places to money, maybe long term treasury bonds, corporate bond spreads are fairly tight. cash returns are getting a little bit higher, given the rate increases by the fed. but they're still relatively low. so we have to pull the money out in quality sectors like health care, like consumers. and we like to see companies with very healthy balance sheets. >> because i always look on the bright side, kevin, what happens if this tax bill doesn't happen? how much vulnerability is there in stock prices? >> just look at what happened today. we got some good news about perhaps it moving forward, and the market jumped. so you would have to imagine that if there was a stumbling block here, and that was taken away, you could see some significant volatility on the downside if it doesn't go through. >> and does the fed matter in this whole scenario to the market? we had confirmation heari for the new fed chief. the economy is getting better. there's a lot of talk that we

will see three increases in the new year. is wall street paying any attention to the fed at this point? >> well, the market is not expecting much by way of rapid rate increases from here. but the fed has been fairly aggressive over the last year or so, despite some very dovish talk from janet yellen. the hand-off from janet yellen to mr. powell seems to be so far a seamless one. but of course the fed matters. if they got very tight, very quickly with rates, the market would certainly take notice. >> kevin, thanks so much. kevin coran with washington crossing advisers. the federal government will run out of money in late march or early april. that's unless the debt ceiling is raised. the debt ceiling currently expired december 9th. the congressional budget office said today that if the debt limit remains unchanged, the ability to borrow using extraordinary measures will be exhausted by this spring. if that occurs, the government could potentially default on its debt obligations.

there are also reports tonight that the house of s is working on a bill to extend the funding of the government until december 22nd. that would help avert a government shutdown next week and give the chamber more time to negotiate with democrats on a longer term funding plan. the world's largest oil producers have agreed to extend production cuts through next year. the price of domestic crude was little changed, but the decision may signal that opec is still concerned about oversupply in the market. steve sedgwick is in vienna >> reporter: after the talk of contention and splits in the ranks, what we had is a continuation of the policy of opec and nonopec allies, including russia, the largest oil producer on the planet, beyond the end of the first quarter 2018, to the whole of 2018. that means 1.8 million barrels a day of oil will be taken off the table for that entire period. and they're hoping that will continue to stabilize the market

and get down inventories of the global levels which have been way above the five-year average. they want to get that down by another 140 million barrels before they declare success in their policy. they're very happy with the current price. they're not even worried about the advent of larger volumes of shale going onto the market. they will be monitoring very aggressively their progress on how much progress they're making over the next six to seven months. in fact there wl be a review of the progress made on june 21st, that's the next scheduled vienna meeting of opec. and their nonopec allies. in fact russia and saudi took great pains today to say there was no difference between them, no light between t and their views were perfectly aligned, despite contention that russia was looking for some form of exit strategy. here in vienna, with the oil price at above $63 a barrel, it seems it's smiles all around. steve sedgwick, "nightly business r vienna. ahead, why some in the

health care industry the head of the centers for medicare and medicaid said that agency is considering ways to curb costs for pricing new medications. in an interview with reuters, seema verna said they're considering extending payment for expensive drugs over a longer time frame and whether to reimburse for a drug based on the condition it's approved for. the health care industry is under a lot of pressure to keep

those drug prices down. industry leaders are meeting in new york this week. that's where we fi >> reporter: drug pricing was top of mind today at the forbes health care summit, a gathering in new york of industry executives, doctors, and researchers. >> it's hard to justify drug price increases. if you get a medicine and the medicine makes an impact in patients and you pricing the drug appropriately and where it ought to be priced, what's the rational for increasing the prev the pledge is to keep want price increases no higher than inflation. one drug, for a rare genetic disease that affects only 50,000 people in the world, these kind of drugs are often priced at

hundreds of thousands of dollars a year. another factor is the potential entrance of amazon into the market. >> they're looking at every market they're in and try to evaluate things. >> reporter: express scripts is among companies whose stocks have been pressured by speculation about amazon. but its ceo says they see the tech giant as a partpartner, no competitor. >> the point is to help the patient navigate the system, all things we've built a business over 30 years to do. >> reporter: everyone acknowledges the health ca indu is changing. companies are combining, including a potential deal between cvs and health insurer aetna. and everybody is looking for ways to adapt. i'm meg terrell in new york. late today, there were reports that amazon has held preliminary talks with makers of generic drugs about its potential entry into the

pharmacy business. as first reported by cnbc, the talks had been with mylan and a unity of novartis. amazon's plans are not yet clear but may be about the company taking a role in drug purchasing, competing against drug distributors. shares of mylan got a lift on the news in afte showes trading. kroger's heavy discounting leads to higher sales. the supermarket giant reported stronger than expected earnings as promotions brought more customers into its stores. the company said sales were especially strong on black friday. kroger sees that momentum continuing. it is forecasting upbeat results for the holiday period. shares rose 6% to $25.86. same-store sales fell for the 24th executive quarter at seri but the struggling retailer said a smaller footprint and focus on

stores that only sold appliances and mattresses could help financial performance. shares initially rose following the news but lost those gains, closing down 3% to $4.08. barnes & noble, on the other hand, saw its loss widen as fewer customers made purchases. the bookstore chain experimented with selling toys and games to improve results, but said that move didn't resonate with shoppers. the company, which also reported a drop in same-store sales, said it would redirect its focus back to books. shares fell more than 11% to $6.90. the arts and crafts store michaels said its quarterly results were hurt by hurricanes. nonetheless the company did manage to grow sales, saying it's seeing solid momentum. the company reported a rise in earnings and said it's confident it will deliver strong results holiday season. shares climbed 11% to $21.60. last night we told you nokia was said to be in talks to buy juniper networks at a deal price

of about $16 billion. nokia has since denied those reports. shares of juniper slipped nearly 6% on the news to $27.76. nokia shares were off a penny to $5.01. after the bell, cosmetics retailer ulta reported a rise in profits at same-store sales as customers spent more in-store and online. despite the sales growth, investors weren't impressed with the company's weaker margins and ulta's shares trickled down like runny mascara in the regular bitcoin lost over a fifth of its value in the past 24 hours. the controversial crypto currency slid to about 9,000 today after hitting a record yesterday above 11,000. but despite the volatility, curiosity about bitcoin is growing. and so are the ways that you can use it. we told you about the real

estate ts that took place using bitcoin, just a couple. but now, as diane a olick repor, you can also use it to pay the rent. >> reporter: if you thought paying the rent on an app was new, here's something newer. pay your rent on an app with bitcoin. >> bitcoin is pretty big, but i don't know. >> reporter: it's big and getting bigger. that's why one real estate tech company, managego, is getting ahead of demand. >> it's happening. and it's disruptive. and it's different. and we're the leader in this. and managego is here now and in the future we'll look back and we'll say, you know what, look at all the people that are paying their rent with bitcoin. >> reporter: brooklyn-based managego is a tech platform that offers landlords and tenants mobile pay, rent applications, and maintenance scheduling. now it's adding bitcoin to the mix. the renter pays online or on the app using bitcoin, then managego converts that to dollars through coinbase, a digital broker.

then the landlord gets the payment in dollars. bitcoin is extremely volatile. so you lock in the value at the time of the payment. >> there could be a different way of paying. but i don't know. i don't know if i trust it completely. f it so far.there >> i will are have a good plan. i already pay, it's automatically deducted from my bank account. >> reporter: but like other new technology, that could change on a dime. or a coin. probably starting with a very specific type of renter. >> to somebody that maybe is in tech, somebody that's in finance, somebody that just sees it as very exciting, they got in, and it makes it real, that they actually could pay their rent with bitcoin. >> reporter: the developer of this new building says it hasn't had any request for bitcoin payment, and they have over 70,000 apartment units in their portfolio. that said, the ceo said he's already heard about this and isn't closing the door on any option that might make renting

more convenient. diana olick in washington. for those of you who are looking at perhaps a more traditional way to fund your home, mortgage rates moved lower in the past week. freddie mac reports that the average rate on the 30-year fixed slipped to 3.9%. anything below 4% is considered historically low. coming up, why there may be some trouble in toy land this here's a look at what to watch for tomorrow.

as we reported earlier, the senate is inching closer to voting on tax reform. if it doesn't happen tonight, it might happen tomorrow. new data will be released on how much new construction took place in october. and a look at how many cars were bought in november with the release of auto sales. that's what to watch for on friday. the apple watch got its first fda approved medical accessory. the agency okay'd an ekg monitor for the device, which lets apple watch wearers check their heart activity with an embedded sensor that can flag abnormal heart rhyt if you have young kids, i bet they have a list of toys they want for the holidays. but are some of the most popular toys safe? andrea day tells us that consumer advocates have concerns. >> i'm listening to you. >> reporter: that voice is a stranger talking to through a doll. it's just a demo. but the public interest research group is concerned that my friend kayla could double as a

spy. >> if a stranger is within distance of the bluetooth connection, they can actually listen in on your child. they can talk to your child. >> reporter: the interactive doll is already banned by german regulators. and the group says kayla is just the beginning. >> we're seeing more of these internet of things, toys, coming onto the market. >> reporter: genesis toys which makes my friend kayla did not respond to our request for comment. according to the toy industry trade group there have been no reported incidents for the doll. but at least one consumer interest group has filed a complaint with the federal trade comm which regulates online safety. >> the toy safety is the toy industry's number one priority. >> reporter: the cr product safety com or cpsc regulates toys. >> the cpsc is looking at the internet of things, what does it mean for the safety of the toy

and security. >> reporter: another hot toy on the agency's radar, fidget spinners found for sale at target but loaded with lead. according to tests by cpsc accredited labs. >> one of them had a whopping 33,000 parts per million of lead which is 330 times the legal limit for lead allowed for children's products. >> reporter: but get this, that fidget spinner is perfectly legal, because the label says 14 and above. so cpsc toy regulations don't apply. >> these fidget spinners are marketed to 12-year-olds or younger. they have to meet stringent standards for children toys. >> lead in toys is a significant health issue that is concerning particularly with younger children, they handle the toy and then their hands go in their mouth or the toy goes in their mouth. >> reporte according to the

cpsc, there were no recalls for lead in toys. the maker of the spinner tells us, quote, safety is one of our top priorities, all of our toys are comply with standards. accordin target, while these two products comply with all cpsc guidelines for fidget spinners, based on the concerns raised, we're removing them from our assortment. additionally we're working closely with our vendors to ensure all of the fidget spinners carried at target meet the cpsc's guidelines for children's products. make sure you check out the age on the label and the advice most security experts have when you connect any device to the internet, change the default password. some toys like the doll kayla don't have a password at all. that leaves the toy totally exposed. for "nightly busine investors did not need a fidget spinner today. before we go, here is another look at the rally on wall street fueled by the prospect for tax

cuts. the dow advanced 331 points to 24,272. nasdaq added 49. the s&p 500 was up 21. on this last day of november, the dow logged its longest streak of monthly gains in more than 20 years. >> unbelievable. >> unbelievable run. >> we'll see what december holds. that's "nightly business repor for tonight. i'm sue herera. we want to remind you, this is the time of year your public television stations seek your support. >> i'm tyler mathisen. we thank you for your support. have a great evening

>> this is "bbc world news america." funding of this presentation is made possible by the freeman foundation, and kovler foundation, pursuing solutions for america's neglected needs. >> planning a vacation escape that is relaxing, inviting, and exciting is a lot easier than you think. you can find it here in aruba. families, couples, and friends can all find their escape on the island with warm, sunny days, cooling trade winds, and the crystal blue caribbean sea.