. >> announcer: this is "nighory business r with bill griffeth and sue herera. bank slump, investors hoped profit reports would give the sector ali , but today that was not the case. big test. can mcdonald's dor bette job of containing a possible parasite outbreak than rival ipotle did. behind the wheels, what astin martin is doing to find new growth while maintaining exclusivity. those stories and morenionight ontly business report" for friday, july 13th. we do bid you a good evening, everybody. stocks did fin the week higher, but it could hav even better if it hadn't been for the financial sector. three big banks all kicked off earnings season today, investors

ha hopes that the results would be enough to snap that sector out of its recent slump. but that doesn't happen. wells fargo missed expectations, and desetter than expected earnings from jpmorgan and citi, investors apparently were convinced that business should have been better. it pressured all three stocks in trading today. leslie picker has m te onhe disappointing d for banks. >> reporter: three of the largest bank -- jpmorgan, citigroup and wells fargo -- receiving mixed reception from investors today after reporting the secd quarter earnings. wells fargo's numbers demonstrate it's stillou climbi from the years-long scandal over fake accounts that were opened so employees could meet sales targets. the revenue and profitability declined during the quarries, the numbers showed particular ak weness from mortgage banks thanks to higher interest rates. citigroup s weakness i their consumer banking side with little to no growth in the branded credit card unit and

services. the firm saw a bit more strength from the business it does withl corporents in terms of ending and helping large investors trade equities. >> jpmorgan's results were a bit more of a brightspot. the firm posted record revenue and profit and growth in nearly very metric reported s ceo jamie dimon touted what he sees an a strong environment for banking. he says consumers and their company versus money to spend and people are building houses, all of which are positive for jpmorgan and the industry as a whole. >> consumes confidence very high, albeit off the highs, probably because of some of the -- if you're looking for es poth there's not a lot of things and growth is acsell r5i9ing. >> reporter: both dimon and citi's chief financial officer ls thatseparate media c the trade war has only tangentially affected the businesses, because it creates

uncertainties for companies.nk f america, morgan stanley and goldman sachs rept next week, for "nightly business report,"'m leslie picker. the s&p 500 had its best close since february. the strength came from the tech sector with amazon, facebook and microsoft all hitti new hides, the dow roses 94 points to 25,019, the nasdaqose two and s&p 500 added three. for the week all the majors indeere higher. one of the worst performing dow components today was johnson & johnson. a jury hit the company with a $4.7 billion fine, which included 5 a million in compensatory damages we told you about yestisday. verdict was in favor of 22 women and their families who said they developed ovarian cancers a result of uses j & j's talc products, which it denies.

that send the stock down more than 1%. meg tirrell has the details. >> reporter: it's the biggest verdict i yet overthe safety of the talc baby itpowder. facing more than 9,000 lawsuits it sells bab powder with talc and also with cornstarch. while natural talc can contain besto asbestos, all products have been if the asbestos-frees since -- the american cancer s the data on talc powder and cancer a at risk and ifhere is an increased risk, it's likely to be very small. >> thet courts haven't cau up to the science. this isn't the first time that's happened in the history of american -- the legal system. successfully appealed a number of verdicts, including a $417er millionct last year in los angeles. that was the largest until this

week. j & j plans to appeal this verdict as well. a attorney for the plaintiff says they should stop sellidu the p or put a warning. j & j's attorney says it wouldn't be appropriate to put a warning on a product that doesn't causecancer. shares of mcdonald's were lower after health experts say they're asking a possibility link between the salads and an intestinal parasite. today the stock was off a fraction, the questn for investor says will mcdonald's be able to contain the damage better than which i.lay did? indicateer rogs takes a look. >> reporter: more t 200 people have been hit with a foodborne illness possibly links to salads at mcdonald's erestaurants. llinois and iowa departments of health are currently investigating a potential connection.

it is in a statement, mcdonald's sa, out ofn abundance of caution, we decided to voluntary stop sellingalads that impacted restaurants until we can switch to anotheretce blend supplier, we are in the process of removing existing sala blend from identified restaurant and distribution centers, which includesy approximat3,000 of our u.s. restaurants primarily located in the edwest. company has been in the midst of a turnaround under the ceo took the helm in 2015. earnings last quarter beat expectations, luring customers in with value promotions and menu innovations, including fresh beef. but foodborne illness can be a challenge for national chains. ok for further than cwapotle who plagued for years before bringing on a new regaining public trust. >> it also appears that mcdonald's has identified the batch of lettuce affected here, taken the steps to remove it from the restaurants and the

supply chain. as a long we don't see any other situations pop up, and the company can effectively communicate what happened and put in place prevent tiff measures, think t company will at least have somewhat of a more mild impact than,sa a chipotle. >> the illnesses potentially presenting a any test for ther mcdonald's and the ceo who -- for "nightly business report," i'm kate rogers in new york city. the papa john's fallout is intensifies. today the pizza chain said it would remove founderohn schgnatter's face from the promotional world, and the sports world is, the yankees are suspending its relationship. the texas rangers haveuspended their marketing deal, and the university of louisville is dropping papam john's from the sports stadium. papa john's founder resigned as chairman on wednesday, hours after he apologized for using a racial slur during a conference call. the justice department

,ppeal of at&t's acquisition of time warn quote, changes nothing. so says at&t's ceo randall stevenson who added that the mergers is closed and tha at&t owns time warner. >> the merits of the case have been tried, 25 million of pages and testimony in an extensive trial and an extensive at the enof the day we feel like the law is on our side. we think the appellate court will look at it on thef merits the law. >> but shares fell in trading today, raymondts james cut rating to neutral, telling clients the doj appeal is a negative catalyst for the stock. the federal reserve is he downplaying impact of trade wars on the economy. in its seannual report to congress which would be delivered next week, the centr bank says the economic activity is solid and the labor market is strengthening. the report did note some lingering concerns and said the

ent path of man tear policy is enough to handle any trade issues thatarise. trade fears did hit consumer sentiment. o the universit michigan survey fell to a six-month low on rising fears of an all-out trade war. the biggest concerns with bye - despite the decline. confidence overall remains historically high, thanks to steady job mpowth. t prices unexpectedly fell lastmonth, the index sipped 0.4% in june thanks te ecline in the cost of imported oil and natural gas. economists sayp the d was likely temporary, given the y tariffs rea imposed by the trump administration. tariffs and the threat of o newnes could impact activity at the nation's busiest port. that is where aditi roy is for

us tonight.he >> reporter:ort of los angeles is the busiest. china is the biggest trading partner. st year alone about $145 billion worth of goods subtled between the two largest economies through this entry point, which makes the port of l.a. on the front lines of the trade war. >> most of the folks we-hop with costco, walmart, lowe's home depot. >> reporter: gene seroka is the executive director. hes says ironically there appears to be an increase of imports, rushing orders in before tariffs are imposed. he also says one theef tariff they could down impact 15% of goods moving through here, and put at risk 240,000 jobs nationally. as a result, he wants the president to rethinkra his strategy. >> we fully support fair trade

and investment rul to make our u.s. companies competitive, but let's go about this where we have a level of certainly and we can continue to pump thrgh all this great cargo in the supply chain that is so important to our y's economic. >> stephen chung is the president of l.a.'s world traer cent he says since trade tensions have epted he's been calling from executives around the country who are worried about tariffs. chung says since halfhe exports come you through here end in other parts of the country, it isn't jt a loc problem. we have over 350,000 manufacturing jobs right heth. e products get exported soternationally. hen the tariffs are hitting, it will impact the way we can export. it's more than just trading lo gistens. >> reporter: he says not knowing what will happen next is the hardest part. >> i think the uncertainly doesn't play well in our --

>> repter: retailers including walmart, target and costco are importing a lot of goods from ppina as demand ramps up for the back-to-school sg season. i'm aditi roy at the port of los angeles. time to look at some of today's upgrades and downgrades. we be with blackrock. shares were upgraded to outperform. the annualest says the world's largest asseter manager d a premium valuation because of its leadership position. price target there now $590 shares rose a fraction to 507 period of time 09. corpas upgraded to buy from merrill lynch. th analyst cites increased momentum that should tun through ason.ack-to-school sales the stock rose 1% to $84.84. domino's pizza price targets was raise the at open haimer.

that firm is predicting growthre in comp s sales. rating aremainst outperform. it rose to 1.40. still ahead, a news conference, tea and protests. that defined the presidential visit with one of our closest economic allies. president trump is reportedly considering selling a sale of oil from the reserve. the president has reptedly expressed frustration at the rise in oil and gas prices. domestic crude settled at about $71 a barrel.

the idprt's controversial visit to the uk included a news conference today with prime minister theresa may, and tea with queen elizabeth. l while protesters filled the rreets. wilford frost is in london for us tonight. >> reporter: it's been a roller coaster few days for the president in the united kingdom. the bigin question c into the isit was he willing to offer a free trade deal once brexit hasd happen. late last night a bombshell interview to"the sun" seemed to be the answer was no, and then iticized the priminister, and today he softened his osition. s ty thing i ask of theresa is makell you are we can trade, with no restrictions. we want to trade with the uk and the uk wants to trade with us. we're by far their biggest

trading partne we hav just a tremendous opportunity to double, iple, quad triple that. >> there would be no limit to thetr possibility of doine deals around the rest of the world once we leave the european union on the basis of the agreements that we have made here at checkers and i put forward. >> reporter: so trump and may now seem to agree. whether or not theresa may can convince her own party for her plan remains to be seen. the president then wen to have tea withhe queen. she has an abundance of wisdom and respect. she also has impartiality. the phsident is the 12t president to meet the queen. there have been seven republicans, five democrats. she does not take sides. it is that mixture ofce independnd respect that she will have used to try and get heressage across to the president fromer prime minister theresa may.

now, that positive development only tells half of the story. the other half is protests and there was a record turnover in the uk forga protests ast a visiting leader. the protests were addressed as ll by the leader of the op i suppose labor pty jeremy corbin, who thanked the attendees for their hope in unity and prosperity. the president is inot land for the weekend. he's there for a golf holiday, andn heads to he singi f z -- to helsinki, and ahead of that meeting with vladimir putin, robert mueller charged 12 russian intelligence officers. the 11ounseled indictment includes charges of conspiracy, money launders and attempts to brea into state election boards. amazon sends shockwaves

through another sector. that is where we begin tonight's market focus. amazon already manages cloud computing data centers, now the website the information reports that the mme-ce giant is looking to create its own network switches. al zone rose nearly 1%. but t news sent shares of networking company falling on the fears of amazon's potential entry into the space. xerox is reportedly considering selling the debt-ridden leasing unit to makee itself m attractive. reuters said nearly $4 billion if it sells that division responsible for lending money to prospective customers. xerox has been exploring options after it ended the sale of fuji film. xerox rose a fraction. >> info sys reported a less

than expected rise in profits and weaker sales growth in the financial services division. the company did say that demand remains strong and expect to -- but shares did fall nearly 3% to $19.42 in today's trade. northrop grumman's ceo says he plans to step down from his role january 1st of next year. bush does remain as chairman, though, through july of next year. charles of northrop grumman were down a fraction. this week's market monitor i finding opportunity in the u.s., and recommending etfs that he says pay a good the last time he was on in january, he picked the ishares technology etf, which is up 7%. the van guard total worldx stocs ins down 15%. joining us once again is john merrill chi information

office, nice to see you, welcome back. befoe get to the new picks that you have, i'd like to address the vanguard total world stock index, which is down 15% and the vanguard emerging market index, which is lower by 10%, do you still hosd did you add to the positions on the decline? where do you stand? >> first, i don't think the vew erful is down 15%, probably wn closer 5% from when i was on last time. to answer your question ly dire we have reduced our international holdings by about 20%, but i do still own a big position in the veu. that comes back to the one theme i brought which is domestic over international. the corporate tax reform just

totally upended the global growth that we had going into this year, that we assumed would continue going into 2018. u.s. corporations areery fortunate, they've had a cash windfalley bringing m back from offshore, and they can use this money for new investment, for expansion, and this is an advantage that foreign competitors simply adopt have. that's overwhelming the market here. >> forgive me, john, you didn't see the tax reform package would give american companies that kind ofdvtage? that was the whole idea behind those tax cuts. >> that's a good point, bill. we knew a right as wentered e year, we did lower to neutralur international -- which at the end of last year

had been overweight e,ut i guess, yes, we missed the magnitude of the change and how it will ripple through the foreig markets. we knew it would be an advantage to domestic ocks, we didn't realize until maybe february, march, just how thiwould take away from some of the foreign competitors. let's look at what you're recommending for us this time around ultra-safe income, you say? now you can get almost a -- that's onlybout 35asis points from what you get on a ten-year treasury, for a heck of a lot less risk. short-term at the part of the treasury market as

the sweet spot for risk and reward. >> the other two, just in the interest of time, you're looking at a master limited partnership from jpmorgan and thereit index from van guard. clearly looking for income down the road, but you're conventioned that rates will not go up that much down the road. why? as well, just like we have experienced the two years, the fed has been raising short-term rates, but intermediate and long-term rates have been sluggish. we believe that's because there's a lot of big factors that are affecting inflation and interest rates, forces like a hi demogr, the transparency brought on by the internet. right nowe have more aggregate debt that has to be serviced. that puts enormous pressure ons.

ra >> on that note, john, thank you again.ining us for more on john's pic, head to nbr.com. it is the brand driven by james bond. now astin martins include a future with more model and potentia investors, that story is coming up on "nightly business report. 1 . ultra-luxury auto sales are on p for another record year. one brand in demandsts martin. in fact the company that builds the cars driven by james bond has posted record, and setting the stage for a potential ipo.

ph lebeau has more. >> reporter: astin martin is on a roll. the british automaker known for ultra-luxury performance model like the db-11 is enjoying a surge in demand as it expands its lineup rolling out seven new modere >> w going through a huge renaissance, naturally seeing a significant irease in the value of the company and obviously myhareholders are pretty pleased about that. >> reporter: from the first ride in a royal wedding to a tricked-out cars, to a unique ad campaign with tom brady, astin martin has always hadnt p of cachet. what it's lacked has bee consistent growth under the ceo, that is changing. sales topped 5,000 vehicles for the first time in a decade.

revenue topped a billion for the first time ever. acity martin is steadily expanding its lineup. >> that expansion will require heavy investments, which was astin marting is weighing a ipo. c >> it's a very atrachive time. stock markets are at high multiples. there's an enormous amount of capital. >> at atrackedive as it is, it comes with a huge question mark -- how much will it be hurt by trade disputes that could at tens of thousands to the cars beingted from england. >> there isn't a natural competitor fors our c in the u.s., so if you want an astin martin, you will buy one, almost irresp tive of theprice. >> astin marti looking to

double sales why protecting its air of exclusivity. phil lebeau, hayden,en and. the last blockbuster , standi there soon will be just one standing, in bend, oregon. two other stores in alask are set to closen sunday. the general manager credits the longevity t the store in oregon is their amazing loyal customers. that doest for tonight. i'm sue herera. >> and i'm bill griffeth. have a good weekend. see you monday.

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