this is "nightly business report," with tyler mathisen and sue herera. new highs. the s&p 500 and nasdaq close at records as four big blue chips report their quarterly results. trade tariffs. the white house slaps barriers on imported solar panels and washing machines, aimed at protecting american business. but will they? free checking? not anymore. bank of america eliminates its popular account as banks look for new ways to increase revenue. those stories and much more tonight on "nightly business report" for this tuesday, january the 23rd. good evening, everybody. i'm bill griffith in tonight for tyler mathisen. coming to you once again from the new york stocks.

hi sue. >> good to see you, bill. i'm sue herera. welcome, everybody. earnings season the is in full swing. four dow components all reported their results today. johnson & johnson, proctor & gamble, verizon, and travelers. this quarter is expected to be a strong one. analysts are forecasting profits to rise by more than 11%, potentially making this the second strongest earnings growth period since 2011. the lofty expectations come at a time when u.s. economy appears to be firing on all cylinders. today's reports have one thing in common. all of the companies had something to say about the impact of the new tax law. and these blue chip results could set the tone for thii thi the to come. johnson & johnson topped earnings and revenue estimates helped by growth in new cancer drugs and sales from its international operations. but the drug company will take a $13.5 billion charge related to the new u.s. tax law. and plans to bring back billions

of dollars from overseas immediately. j&j's tax hit is the big eggs announced in the pharmaceutical industry so far. proctor & gamble also took a charge related to tax overhaul but was able to report better than expected sales and profit. that wasn't what investors focused on, however. the world's largest consumer goods maker posted a drop in gross mother-in-laws because of higher commodity costs and investments. p and g also fell victim to intensifying competition, which led to price drops in some key units like its gillette shaving business. for verizon, it was a mixed quarter. the company missed wall street earnings expectations, but wireless revenue grew for the first time in two years. it gained subscribers, and more customers paid for high-speed sell larry internet. verizon took a charge related to the new tax law but also said the changes would increase cash flow from operations by as much as $4 billion this year.

and the ceo made it clear that workers will share in the company's success. >> we are giving 50 shares of stock to the non-executive. so 155,000 employees will get 50 shears of verizon stock. they get to ride the dividend. they get to ride the appreciation of the stock over the next two years. so that's a very positive sign the our employees. and finally, there is travelers. the wildfires in california, the most destructive in that state's history hurt the dow component's bottom line. but those wildfire losses were offis the by growth in premiums at the property and casualty insurer. as for the tax bill, the company also took a charge. the ceo says while the everyhaul helps create a more level playing field the company has a lot of ground to cover to reach its own goals. of the four dow companies that reported earnings just one traded higher n. fact the two worst performing stocks in the blue chip index today were j&j

and proctor & gamble. meantime on wall street as we mentioned the s&p and nasdaq finished at records today. netflix helped push both of those indexes higher after a 10% of its own after reporting strong earnings last night. the dow fell three points. closed at 26,210. the nasdaq added 52. and the s&p was up six points. as the market climbs the manager of the recalled would's largest hedge fund says it could go even higher. and if you are sitting on cash he says you could be making a big financial mistake. >> we are in this goldilocks period right now in which we have had a beautiful deleveraging. inflation isn't a problem. growth is good. everything is pretty good. with a big jolt of stimulation coming from the changes in tax laws and such. that is going to at the part of

the cycle, we are at the later part of the cycle. so if you look at the operating rates and you look at the gdp gap and measures, we are going to have a jolt of stimulation into that. and there is a lot of cash on the sidelines. i don't mean just investor cash. i think banks have a lot of cash. corporations have a lot of cash. so we are going to be i think inundated with cash. i think that that's going to produce a lot of stimulation. and i think perhaps a market blowoff. in other words, we are in a situation where if you are holding cash you are going to feel pretty stupid. >> ray dahlio was being interviewed at the world economic forum in davos, switzerland. it is an annual meeter of business and political leaders held in the swiss alpine town of davos. that's where andrew ross sorkin is for us tonight. >> reporter: i'm andrew ross sorkin at the world economic forum in davos, switzerland where hundreds of ceos from

around the world and 70 heads of state gather to tackle some of the biggest issues, the economy. >> the real thing we benefit by is the general economy. it's in good shape in the united states. projected to grow by 2.7% as opposed to this year in the throw twos. >> economically right now the world is expanding almost every place. and things look good and probably will continue to stay good. >> and politics. >> president trump came here, i suspect his message is going to be one that's going to be reasonably well received. you now can't expect everyone to love everything he says but i think he will have a message that is reasonably well received. >> he arrives later this week and gives close, remarks at the forum on friday. no one has an any of what he is going to say. but his america first is a

theme. >> i want him to bring everybody together. it's not about isolation but it's about integration. >> for "nightly business report," in davos, switzerland, andrew ross sorkin. >> ahead of the president's trip to davos, the american first stance that andrew mentioned was front and center in washington today when the white house slapped hefty tariffs on solar panels and washing machines. the move was designed to help american manufacturers. in an oval office ceremony president trump signed an order for steep penalties on washing machine and solar producers outside the united states. >> our companies will not be taken advantage of anymore. and our workers are going to have lots of really great jobs with products that are going to be made in the good old u.s.a. and that's what this is all about. >> reporter: effective february 7th companies like samsung and lg will pay a 20% levee on the first 1 million machines they

import. above that, 50%. a complaint by ohio-based whirlpool in may kicked off a months long investigation by the international trade commission resulting in these tariffs. goiks estimates the price tag's shoppers fee could rise between 8 and 20%. a point raised by samsung and lg who say the move hurts customers and competition. both are planning to make more appliances in the u.s. samsung says its south carolina plant has already hired 600 workers. south carolina congressman mark sanford praised the samsung investment and says the tariffs are short sight and will cost american jobs, including 7,000 in the solar industry. customers outside the u.s. will pay 30% for parts they import. that declines over time. the catalyst for these tariffs, complaints from solar world and seen eva, which declared bankruptcy in august. while those companies may

benefit, many in the industry will see costs increase. >> most of the industry is really going to struggle with this increased cost. they are going to try to figure out, are there still customers that want to buy solar if it's more expensive? are they still going to need as many inverters, as many racking systems? as much wiring? if not, people are going to get laid off. >> president trump searched for industries where he could implement tariffs he promised on the campaign trail. today's move to be a precurse or for harsher action in year two. for "nightly business report," in washington. >> by the way in response to those tariff, shares of whirlpool got a lift today, rising more than 3%. do these new tariffs accomplish what they were set out to do, revive and protect u.s. manufacturers? joining us to talk about that is chad brown, a senior fellow at peterson constitute for international economics. and a co-host of peterson's

trade talks pod cast. welcome. >> thanks for having me. >> you say these tariffs are unlikely to accomplish much that is economically positive. tell me more about that? >> well, i think if we look at solar panel tariffs, for example, you know, there may be a handful of manufacturing jobs that are sustained by those sorts of tariffs and the protection from imports. but it's going to hurt many more jobs in the solar distribution and installation industry. so the more expensive solar panels are going to mean less demand from consumers, less of these things being put on your roofs and fewer jobs by the folks who would do all that active. it's not clear it is a win for the u.s. economy. >> the globalists will tell you globalization is inevitable. capital goes where it can get the best return on its money no matter where it is in the world. do you think the president has a point had he he says we have

been too generous, we haven't done a good job protecting our jobs with some of the trade deals we signed in the past. >> no, i would disagree with that. i think the president is focused very narrowly on a number of industries that the united states isn't really producing effectively in anymore. but at the same time the united states has experienced considerable growth and expansion in other sectors, the services area of the economy n the internet area of the economy. even in the areas of advanced manufacturing that the president really hasn't talked about at all. so i think the president's trade policy is really just singularly focused on the industries of say 30 or 40 years ago. >> what does it mean for relations between the u.s. and some of its trading partners such as asia, among others? >> i think that's the really big unknown to come out of the announcements yesterday. what's going to be the trading partner response? president trump, with his america first policy, has had -- you know, there has been a lot

of protectionist rhetoric. are they going to interpret these as they should be interpreted. these are kind of normal trade policy actions that any administration might take. are they going to react normally or are they going to overreact and want to retaliate. another big question is these just the first types of these actions that we have seen out of the trump administration or can we expect to see more of these types of trade barriers going forward? that would really be worrisome. >> the white house has said other industries are welcome to come to them and make requests for future import tariffs. who do you think that might be? who is ripe for making those kinds of requests in your view? >> well, what's interesting right now is the trump administration faced a number of decisions about whether to impose protection. the ones it made yesterday are the lowe's controversial. over the next couple of -- the least controversial. over the next couple of weeks it's going to make decisions on whether imports of steel and aluminum should receive protection.

they are under a different law. they are alleging it is a threat to national security. they are also looking at whether imports from china, china's theft of intellectual property should be sub to trade barriers or other kind of retaliation as well. so there is a number of very controversial trade policy decisions that the trump administration has to make over the next couple of weeks as well that are going to be key. >> jochad, thank you so much. elsewhere, kimberly-clark is closing or selling about ten of its manufacturing facilities around the country. it said today that it is cutting as many as 5,500 jobs worldwide in an evident to cut costs in the face of sluggish sales. the maker of huggie's and kleenex said competition is driving down price force personal care products. and low birth rates are also cutti cutting demand for things like diapers. it is time to look at some of today's upgrades and down

grades. energy an stanley downgrading hp saying while they still have the ability to create shareholder value there are no near term catalysts for that stock. the firm kept its price target at $25 a share. hp shares were off four cents at 23.81. but morgan stanley feels better will hewlett packard enterprises, upgrading hpe. the price target was raised to $19 from 14. how let packard hit an all-time high. >> it raised apple's rating. they closed up 4 cents to $177.04 diction's sporting goods was upgraded. the analyst says there are signs

that same store sales trends at the rt spoing retailer improved primarily to the recent cold weather. shares of kick's up about 1% on the day as a result. while you are looking for free checking accounts, the banks are looking for new ways to make money. a bit earlier in the program we reported that verizon is giving its employees shares of restricted stock. fellow dow component disney is also going to give back to its employees, with a $1,000 bonis. the company says that 125,000 workers are eligible for the extra cash. disney will also make an initial investment of $50 million in a new education program designed

to cover tuition costs for hourly employees. and dow component jp morgan is raising hourly rates for its work force as well. they are adding jobs and opening 400 new branches in new locations around the country. the bank says that tax breaks and reduced regulations made the clangs possible. jp morgan reported it will increase small business lending 20% over the next years. 2018 is off to a hot start. according the data compiled by bloomberg, the value of personers has totaled $150 billion three weeks into the new year. that is the highest since the tech deal craze of 2000. many say tax cuts, rising stoc s markets and rising economies are

giving precedence to higher acquisitions. tonight's market foes us. despite reporting a rise in fuel costs the airline after the bell says more expensive fares and last-minute ticket purchases helped them deliver a profit beat. revenue also topped wall street expectations. united couldn'tmental shares were initially higher in after-hours but then sold off. they ended the regular session up 1% to $77.97 also after the bell, texas instruments said unexpected expenses stemming from the new tax legislation caused its earnings to slip as the technology maker in the latest quarter. still those results along with revenue were in line with analyst's stilts. shares fell in after-hours but finished the regular day up fractionally to $119.89. >> and ta makers matel and hasbro saw their shares jump today. no immediate reason as to why though.

it has been reported in the last several months that hasbro approached matel about a potential merger. both companies declined to comment on today's stock of mo. matel's stocks up 10%. and hasbro rose by 4% to $94.56. >> the railroad operator norfolk southern is upping its quarterly dividend to 72 cents a share. the annual yield on the stock just under 2%. shares of norfolk southern rose marginally. regional bank fifth third said it would raise the minimum hourly wage and pay out $1,000 bonuses to the majority of employees thanks to that new tax law. the legislation also helped fifth third report a rise in profits, which beat expectations. revenue also improved. shares of fifth third were up 15 cents. $15.32. the financial services company state street reported a drop in

profit that said it was caused by structuring costs to digitally connect all of its system. they said it's well positions for growth this year. shares were up 3% to $112.18. bank of america is eliminating its free checking account option that does not require account holders to maintain a minimum balance. that news has caused an uproar among some customers who have now launched an on line petition which has already garnered thousands of signatures urging the bank to trop this new account maintenance requirement. let's broaden this out and talk about the service fees banks are charging customers even as interest rates and presumably improve their profit outlook. kimberly palmer is a. >> abouting expert at nerd wallet. thank you for joining us. >> thanks for having me. >> banks started introducing these fees about a decade ago when interest rates fell and there went their profitability.

now rates are going to be rising presumably with the fed raising rates this year. but we are still getting knew fees. why do you think that? >> banks are of course interested in maximizing their profitability. we are seeing one way for them to do that of course is by raising fees. we have really seen across the board fees going up. and it is a challenge for consumers. on average now consumers pay over $100 on checking account fees alone. and of course for some people, they are paying even more than that. and it can really strain people's budgets. >> it kind of reminds me of the airlines. it started with, you know, baggage fees. then it went to, you know, if you want this seat, you have to pay more. and they have been able to get away with that. it seems as though consumers don't have much of a choice. what can they do if they disagree with bank of america or other banks that are doing this? >> well, this is actually a great time to shop around for a different bank because if you feel like you are paying too much in fees, you are not

satisfied with the service you are getting then you do have the power to shop around. it's easier than ever to comparison shop on line. banks are competing in other ways. we are not necessarily seeing fees going down but they are competing by raising interest rates, other offers and incentives to open new accounts. especially at on line only banks. you are often seeing no fees or low fees. credit yoouns unions are another great place to look. this is another great reminder to consumers to shop around so you feel satisfied where you are putting your money and you don't feel like you are overpaying in fees. >> b of a's chief financial officer said they are trying to balance the interests of their customers with their shareholders. i wonder with the kind of response that some customers have already made -- i mentioned that online petition. at last count it had more than 46,000 signatures on line there. is that the kind of pressure that you think a bank would respond to or not? >> absolutely. we have seen in the past that kind of grassroots pressure work. i mean, it is -- it is a lot of power that consumers hold to

really raise attention to this issue. so it really can help to raise your voice. of course nothing is more powerful than voting with where you put your money. so if you are not satisfied with your bank, put your money elsewhere. >> indeed. kimberly palmer from nerd vault thank you for joining us. >> thank you. coming up, the $31 billion surprise hidden in the government funding bill. here's a look at what to watch for tomorrow testimony dow components general electric and united technologies are slated

to report their earnings. president trump and other members of his administration had head to davos switzerland to attend that world economic forum annual meeting. and a look at how many existing single-family homes were sold during december. and that is what to watch for tomorrow. well, the number of people coming down with the flu continues to climb according to the centers for disease control and prevention, transmission is now the most intense it has been since 2009. now during that year, a new strain of the flu, to which no one had immunity was spreading globally. as we have been reporting, the rise in the flu this season is cost being $9 billion in lost productivity. montana has become the first state to set its own rules for the internet. that state is barring telecom companies from receiving state contracts if they interfere with internet traffic. the move is intended to protect so-called net knew traltd. the governor's executive order comes after the fcc rolled back

rules that more tightly regulated internet service providers. he urged other governors to do the same. yesterday we reported on the short term government funding bill that was passed by congress and keeps the government up and running at least a few more weeks. but there was a surprise inside. we have details from washington. >> the motion is agreed to. >> reporter: when congress voted to end the government shutdown, it also voted to hand a big win to the health care industry. tucked inside the federal spending bill was a special provision rolling back $31 billion in affordable care act taxes. the cadillac tax on pricey insurance plans will now take effect in 2022 instead of 2020, an annual fee on insurance providers will be suspended for 2019. and an excise tax on medical device is now lifted until the end of next year. that's a huge relief for john, the ceo of gold medical. his company is best known for making defibrillators at its

headquarters just outside of boston. >> there has been broad bipartisan consensus that the medical device tax is poor public policy. >> reporter: the medical device tax went into effect this month after a two-year moratorium. before that, he said, it cost his company $10 million, money that he would have spent making his products work even faster. >> every minute that a patient is in cardiac arrest without being defib ri lated, their chances of survival decline by ten percentage points. time to therapy, both cpr and a shock is critical. >> reporter: but the politics around the affordable care act taxes remain perilous. fiscal hawks in washington aren't happy that the bill to reopen the federal government also included billions of dollars in tax breaks for businesses. there are certainly some tax cuts that can grow the economy but not so much as to pay for themselves. but the ones that were kind of snuck into this continuing resolution really aren't going to do anything significant for

economic growth. not even close, except for possibly damage it because the higher debt you have, the lower your economic growth is. all of these taxes will kick back in within just a few years. so businesses like this may have won this round but both sides know they will be back at the bargaining table again soon. for "nightly business report," elan muy n washington. late tonight, the senate approved president trump's pick to lead the fed. jerome powell will begin in his term at chairman next month. that will do it for "nightly business report" tonight. i'm sue herera. thank you for joining us. >> i'm bill griffith. have a great evening, everybody. we'll see you tomorrow.

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