report" with ter mathisen and sue herera. still on edge. after days of intense volatility, a relative calm fell on wall street. but could a key economic report tomo bow bringk the big moves? >> takeover talk. walgreen's reportedly eyes a major drug distributor to phenomenon off new threats. it's a hyper competitive fast consolidating industry. r> $1 trillion and climbing. a neweport shows the mounting costs of the opioid epidemic. those stories and more tonight on "nightly business report" for tuesday, february 13th good evening, everyone, and welcome. an odd feeling hung ovel w street today. odd because it felt quiet. even more odd perhaps because at one point b thee chip dow

index was off triple digits. bu compared to what we've been seeing lately it hardly . register some say investors took a much neededhe breafter the recent bout of heavy volatility. whatever the cause it was the third consecutive sessionf gains. the dow jones industrial average closed higher by 39 points. the nasdaq added 31. and the s&p 500 rose about seven. but as bob pisani reports, both the bulls and the bears are trying to figure out what might happen next. >> the dow moved in a 280-point range from today's high tolo yet compared to the last two weeks it's quiet. amazing. are things finally startg to settle down? volume today was well below the recent average. the s 500 trade three times normal volume much olast week. what a titanic week it was. now that the dow rorecouped ughly 40% of its losses from february 1st, the big debate is what happens next? the bulls would argue the

correction was technical and there was no fundamental driver behind it they say earnings are growing and the global economic backdrop is 10678d that's true. many investors were forced to lighten up their stock during the chaos last weekut the bears say the are ofry happened far too quickly and it's only seven days old. it started with a fundamental concern, fear of f inflationm higher wages. remember that. citi group ace euphoria is the underlying culprit invading the market. he says veflt roors sort of itching to b here. one thing is certn. those who argue that it was a response the betr jobs and wage growth they are going to be watching tomorrow's read on inflation very, very carefully. for "nightly i'm babb pisani at the new yor stock exchange. could that report determine the directiont of the mar

tomorrow and in days forward. wood, theg us, steven chief market strategy at russel investments. how closely will you be be watching the consumer price index number tomorrow morning as a confirmation of what we saw in theobs report a couple of weeks ago? >> i think very closely. the spark that setme the f a number of trading segs back was an inflation report. and the basic underlying idea is that the economy is doing well. now that we've got stimulus come in not only from the tax cuts but there could be infrastructure spending and there is repatriation of foreign earnings that have been sitting abroad. when we look at the fundamentals in the united states we can subtract off howhe federal reserve will act. what got the market nervouss e federal reserve has been accommodating f a long while. but if they think the inflation and the growth environment is very good they might move quicker and higher. >> there is also tf unknown what the new fed chief is going to do with the board, what his

attitude islan ion and things like that. that's another layer, i guess, of uncertainty. >> i think so. i think what we ar t going get is initially there will be a smoother transition. i thin l a of e stated policies are the same under powell asyellen. i think you can expect the policy response, evwould be ver very similar. so inflation reports is going to be certain. >> that number that comes out tomorrow, for you, what would be the goldilocks number, not too hot, not too cold, and what would be the one that would make you go oh? >> i think if we have a report that's above 2 fundraise and the internal components of a 2%, 2.2 or 2.3, which i don't think it will be. but if it were in the solid 2% plus and t internals say to the federal reserve this is n

going the disappear any time soon. to theha extent wages are increasing the fed is going to see that as a sign of inflation beginning to brew. >> it's usually wage growth that leads to higher ilation down the road of steven thank you for your explanationni t, we appreciate it. >> thank you. the new chairman of the federal reserve is watching the market's ups and downs today. powell says the central bank will remain alert to any risks to the stability of the financial market. he said that his goal is to normalize policies in a way that will extend the recove. >> and the federal reserve bank of new york reported that household debt rose for the 14th straight quarter in t three months of last year totaling a record of more than $13 trillion mostly different by an increase in mortgage debt, which remains below, however, si prerec levels. whilst most economists are

not concerned about the rise in the level ofonsumer tent a top intelligence official is warning that the.s. national debt is unsustainable. the director of national intelligence told lawmakers it represents a threat to our economic security. >> the failure to address our long term fiscal situation has increased the national debt to over $20 trillion and growing. this situation is unsustainable, as i think we all know, and represents a dire threat to our economic andna nat security. >> the statement comes one day after the white housett sub a budget that adds to the deficit. >> and that budget proposal submitted yesterday includes a plan to make over part of the federal food staff program. the idea is to replace food stamps with actualoxes of food. the government estimates it could save billions of dollars this way but how would it work? ylan mui takes look. >> reporter: the white house wants to radically reshape america's social safety net by

reacing someood stamps with an actualox of food that's delivered right to your door. currently over 16 million low income households receive $90 a month from the governmenthe to pay for food. under this new program about half of that money would bey replaced an america's harvest box shipped straight from uncle m. this box would include non-perishable items cereal, pasta, canned meat, and peanut butter. the program ict proje to save the government so billion over the next decade. the white house directr budget director compared it to blue apron and calls it an innovative idea. on capitol hill today he defended theproposal. >> we do some trevania i think newdeas on things like food stamps and the farm bill, other mandatory spend. there are good ideas out there in this budget that theou legislature take up to get real long term sarveings. >> the agriculture secretary

promised tha the food would all be homegrown by american farmers and producers, and it wou be worth just as much as house hole are receiving now. but washington is the republican leaders of the agriculture committeesre in co pushed back against any cuts to food programs. the grocery industry is also against it warning that delivering government food boxes would be inefficient. staty dean of the center f policy priorities worries the end results would be fewer benefits for the people that need tm the most. >> i don't think that snap participants are spendin 40 to 50% of their benefit on pasta, powdered milk, and can a. what they were talking about putting in the box doesn't ak re what i eat or what i think snap participants are eating and has enormous administrati costs. >> reporter: for right now, america's harvest box is still half baked. for "ghtly business report," i'm ylan mui in washington.

it is time to take a look at some of today's uggs and disneyland. jp morganas downgraded at keefe about rhea and woods. the firm says the pullba in the stock price created an opportunity to buy what it calls a best in class stock. the analyst has $127 price target on thestock. shares rose fractionally to $112.433m upgraded to buy from hold at deutsche bank. the s firms the economy will accelerate 3ms earnings. shares up were up 1%. beeser home upgraded to yut pachl at wedge bush. the firm says t stockese decline is overdone. the analyst set a $22 price target there. shares of beeser rose 4 cent to $15.95. and quest diagnose knicks

upgrated from outperform to neutral at credit suisse. the price target raised to $118. quest up $2. it finished the at $101.39. still ahead, why two health care heavyweights may want to tie the knot. the ceo of apple down played the possibility that the company might issue a special dividend. at its annual share holer meeting tim cook says he's not a fan them when asked if he would issue one following the recent changes to the tax code but he did say the board is a committe ual increases in its regular dividend.

amazon reportedly expanding into the medical supplies business. the on line retailer is looking to establish a marketplace where hospitals could stock up on supplies for emergency rooms, operating rooms, outpatient filtsd. the report rippled through parts of the medical friday supply industryoday sending stocks like mckesson lower. >> shares of cardinal health and mckesson came under pressure from a report that walgreen's i in talks to buy distributor amary sourcebergen. the report sent shares of amiri sourcebergen up 9%. bertha comes has more on what a potential tie up might look like. >> reporter: walgreen's already one stake in the company, of three major u.s. wholesale drugt distributors. but now the drugstore chain is talking about buys its supplier outright, according to the "wall street journal." alysts say the move could help

walgreen's drive down costs. >> i'm nott' sure nearly as transformative as other transactions in health carert b nly something where you would formalize what has already sort of been put into place. >> reporter: it wouldn't be as transformative as cbs's deal to buy insurer aetna the bring together pharmacy and health benefits and affordable retail clinics under one company. in this case, walgreen's would be put in chargef its drug supply complain while fending off the threat of amazon a its new health venture with berkshire hathawayp ndrgan aimed at cutting costs. >> the supply chain in health care is really now up for grabs. init's clear that amazon is going to get into business. if you look at the deal now with jp morga anderkshire hathaway. and they are a great master of disrupting supply chain and

disintermediatiating it. >> walgreen's was blocked on acquiring re aid pharmacies on anti-trust grounds. it's not clear i will buy amary source but if it does it could impact independent drugstores still, it would come as businesses the government are training to rein health costs. >> to keep the deal m efficient. >> a deal could costs in the system saving money for large ployer and governmen health plans. but ultimately walgreen's may have to make the case that those savings would actually benefite cons at the end of the line who are grappling with high-p out-ket costs. better that comes, "nightly business report," new york. strong international demand nder armour. at and that is where we begin tonight's market focus. the athletic apparel maker said strength in i don't have seas markets helpedny the com

return to growth and deliver results that topped kpltations. under armour forecast sales this year the rise at a low single digit pere rate. shares up 17% to $16.70. >> pepsico also said strong demonstrated overseas offset weak innocence the north american marketd and s they would raise the dividend by 15% to $3.71. the company says it is remaining andettiven a crowded market. >> we are ampling 3.5% revenue growth. approximately 1.5 of that has been come from if you think about pepsico's revenue growth compared to mt consumer products companies and food and beverage companies we have been exceedi by 1.56%. >> shares up to $112.14. t martin marietta reported better than expected earnings thanks t the new taxlaw. the company, also helped by

pricing improvements sayshe u.s. is in the midst of a on tiple year construc recovery the stock was up 2.5% to $18.41 and hgnc entered into a partnership with a chinese pharmaceutical outfit which will invest $300 million in gnc and move and sell their products in china. the small cap stock saw b gains, up 18% to $4.95. one of xerox is suing that company attempting to block its pz wered merger with japan's fudg film. the shareholder called the deal flawed lend adding it undervalues zeier ok. xerox said the hergeer is in the best interests of the company and its shareholders. the shares were off 2% to 29.17. met life quarterly profit fell 30% in the reap quarter because of changes to the u.s. tax law and a charge for failing to pay some workers pension.

the company previously reported that the sec was looking into at matter. the stock was volatility. it finished the regular season up to $145.20. >> stipulate lay has a new o. the taco bell officer will move to shipt ity. finished down to $251.33. >> five of the largest opioid manufacturers paid patient advocacy groups mps millions of dollars to promote the use of the painkillers. the senate investigationin examined thecial ties two ten companies and financial groups between 2012 and 2017. according to the report, purdue pharma, and depo med downplayed the risk of addiction and lobbied against restrictions on

overprescription. >> the growing opioid crisit has c the united states $1 trillion since 2001. that's according to new analysis from the researchirm al terra. the company expects it to keep growing fiscalidd anional $500 billion to be spent on the issue through 2020.o hereiscuss the report's finding is their codirector o sustainable health spending strategies. anni, welcome. nice to have youhere. >> thank you. thank you. >> it is a very toby sobering report to say the least. se of the questions i have, among many who bears the cost of all of these costs? >> yes. these costs are borne by individuals and their families, an employers, and by t taxpayers through wha we are paying for services such as police and emergency response. and the loss in tax revenues. so, really, across theboard.

but what we find, interestingly, is the majority of thee costs estimate are borne by individuals in the private sector in the form of the lost productivity and the lost wages from both people dying prematurely of opioid overdoses and the lost productivity of those who are living with addiction. >> so how fas is the cost curve steepening? >> how fast is it steepening? >> what we saw between 2016 and 17, we are estimate being a 20% increase. back in 20001, we eimate the cost to the u.s. of the epidemic was about $30 bslion. by 207 n the same year's dollars, 2016 dollars, we estimate $115 billion. and it's been accelerating. so every year it seems to be growing faster and faster. and unfortunately the deathsre

from opioidsrowing faster and faster. wereu know, ty and i talking before we started the show. what about the cost of treatment? b because it c extremely costly. >> yeah. >> is that factored into these cost estimates? or is that a completely sarate cost? >> for the most part it is a separate cost because wet we trying to do is show that if you are looking at the value of investments in preventing opioid addiction, and in helping those who are suffering fro addiction, you want to know what the value of that investment would . so you want to know what we are already paying, what it's costing us today. we do include in those costs some health care costs, though. so costs of people in the emergency room suffering from an overdose, andhe associated hospitals costs. as well as costs of increas in conditions like hiv and hepatitis that are a rul of this epidemic. but these burdens then should be

weighed against the costs of treatment, as you said. >> all right as we wrap it up i'm just gng to list quickly that you things recommend that lawmakers should focus on, prevention, treatment, and recovery. anni turner, thank you so much for joining us we appreciate. >> it thank you. coming up, why the business jet market is taking off. >> those who buy business jets tmas the new tax law a chr gift. why? we'll explain when "nightly business report" returns. thane street is feeling pretty good according to a new survey. across theess owners country say this is the best

time in decades to expand and hire. the monthly report from the national federation of independent b iness also puts the level of optimism near records following the passage of the tax law. n a tight labor market, some employers are having a hard time finding qualified workers. and that is especially true when it comes to law enforcement, where demand for new officers is quite gh. kate rogers traveled to houton to rep on where the jobs are. >> you have got to go thextra step and maybe shake a hand or maybe just say good morning. and i think thatoes long ta. >> reporter: jason was born and raised in houston. after serving in the army reserves post 9/11, he decided to answer the call of s vice in his hometown, as a patrolman with the houston police department. in >> i love se and i love giving back. and so i wanted to do that at the city level. that's why i joined the police department. >> reporter: but his department says it's short a many as 2,000 officers for the city's current

rwpulation. >> it can be olming pause you want to do your part and want to do what you caou but are only one person. >> reporter: the department says a lack of funding for new hires and overtime coupled with high-profile police involved shootings have made it a challenge. hpd has been deploying officers strategically and changing itsr uitment technique, allowing shorter academies for those with prior experience and touching base with high schools and junior colleges in order to recruit people to apply. >> in order get people with the character the history, the education, the work history, the psychological mind-set we have got to go through a lot of people in order to get the pest of the best. >> reporter: atlanta, philadelphia and san jose -- a number of police departments across the country are losing manpower, in part because the

economy is improving. it recnt is correspondingly more difficult when the nature is ieroving beca of the nature of the benefits and pay that the private sectoranoffer. >> reporter: many offer incentives like tuition reimbursement, signing bonus and retooling policies o prior experimental drug use for new hires. >> be the change you want to see. if you think things can be different, come on and join the rachks. >> reporter: for "nightly business report," i'm kate rogers in housten, s. to the private jet market now, which is once again taking off. entrepreneurs, corporate executives and those who arewe off are sparking a resurgence in demand for business jets both old and new.u for that y can thank both the growing economy and that new tax law. phil la boo is in st. petersburg, florida, for us tonight.

>> reportess mark succe a ceo who belves in flying himself on business trips.ay these d he's piloting an embraer phenom 100 jet bought for $1.7 million late last year, after the new tax law was passed. >> this kind of came as a smat eift. i was already in process of doing the prebuy on this plane when i read through the tax law, and i thought, hey, 100% bonus appreciation on new and used aircraft? well, merry christmas. >> reporter: the change in the tax law is significant. what was once a 50 write oef for the cost of a preowned jet used for business isow a 100% deduction. >> marcus is not the only jetne using the new tax law to justify buying a pricier set of in fact, brokers who buy and sell used business jets say the new depreciation tax break has sparked a wave of interest they haven't seenn. years

jet aviva, whichuys and sells used business jets has seen sales plunge. >> people are not worried about the values being reduced nearly as much. >> reporter: in corporate america, they are seeg a rise in capitals expenditureor major purchases like business jets. >> people are looking at tax reform and feeling a if they have more to spend. >> reporter: a welme sign for the private jet market whichas faced turbulence since the recession, finally gainings altitude thao buyers looking to take off in their own jet. phil lebeau, "nightly business rert," st. peters bergburg, florida. et take another look at the ta on wall street. the dow closed higher by 39

points. third straight day of gains. the nasdaq added 31. the s&p 500 rose about seven. tomorrow a key inflation report is due out. that is oneo watch i could move the market. >> which is will you will have to come watch "nightly business report" tomorrow. that does it for us. i'm sue herera. thank you for joining us. >> thanks from me as well. i'm tyler mathisen. a have great evening, everybody. we'll see you tomorrow.

>> this is "bbc world news america." funding of this presentation is made possible by the f foundation, and kovler foundation, pursuing solutions for america's glected 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 da cooling trade winds, and the crystal blue caribbean sea. nstop flights are available from most major airports.