this is nightsly business report with bill griffith and sue herera. >> abc's of earnings, the bar was high, and alphabet blew past it,oving its value ever closer to $1 trillion. >> moving upn thearket for a bigger home? why it may make financial sense to also keep the old on >> less is more. does working four days a week instead of fiveak m you a more productive employee. >> good evening, everyone, and lcome. alphabet is the first of the big tech companies to report earnings a it did not disappoint. esogle's parent company easily surpassed estim thanks to

strong sales of onlining advertisements and a decline in costs. alphabet earned 11.75 aar the estimate was for a profit of 9.59. revenue climbed 20% to more than $32 llion. investors sents sres higher. >> a big number that investors make a b line for in alphabet's report, google properties, that came at a $23.3 billion, a jump of ri26%, kessler of raymond t ames sayshat's important, because that reflects the growth of search and youtube, the core higher margin drivers of the business. tack or what google pays as distribution ptners came in at $3 billion. a smaller increase relative to recent quarters. for nightly business report, josh lipton, san frannisco. >> j us now to talk more about alphabet's earnings, and

what he's expecting from other big tech names when they report later this week. daniel is senior tech analyst. >> google, alphabet, is a far flung company, where did you findstrength, what d you like about this report? >> i think wt was notable is that there was strength across a variety of areas. you -- tube was strong, we're seeing the company makeraction in initiatives like the google cloud platform, when you put all thattogether the company has built a series of platforms that we think will enable them to drive solidevenue growth over the next few years. we liked it overall. >> the t other companies we're going to be watching closely are facebook and aman many you mentioned that the fact that for google there was gains basically in a lot ofifferent areas of the company. do you expect the same types of results for facebook and a positive result? >> weo expect solid revenue

growth from facebook and we expect them on theirng ear call to spend time talking about how they're trying to improve safeguards around data, andiv y that is an issue that all these companies face. >> the other stock wementioned, amazon. you either love it or you hate it. you want it to turn a profit finally at some point. boy, it sure is getting into a number of areas in retail these days. what are you expecting from them this time around? >> we expect to see solid refrn new growth. and what we'll be looki for is really to gain additional insight into amazon web services which is their cloud platform, and also some of theirewer initiatives, like advertising. amazon is -- i think many of us appreciate is an incredibly disruptive company. we'll look, besides forhe data to get a little more insight on

some of the newer elements of their strategy later this week. >> one of the things that amazon has had toh deal w and has created some volatility in its stock is the discussion o possible antitrust issues. sometime it's being tweeted out by the president, sometimes it's mentioned by wall street analysts and the like, do you expect any of that to be addressed. and do you view that t for company if indeed that discussion goes a little further? >> i think that amazon and frankly all of these companies are going to be facing a lot moren the way of scrutiny and regulation over the next several years. that's as much a function of their size. and they're playing a large impact on the community. what we've seenrom amazon in this example is that they're really trying to get ahead of some of these issues and doing their best to attack them head on

we think if they continue to innovate, execute and building a robust platform over the next several years, they can continud ve interest inhe future. the nasdaq closed at a cord, and that was before the results were released. the dow jones industrial average fell 30 points to 25.44. the nasdaq added 21 and the s&p a0 was up 5. the nasdaq may be ecord. where does the bull market stand? >> this week marks six months since ocks hit a record high. what might get it ying again.

the s&p 500 remains 2% below the january record. most corrections within bull markets are fully recoupedssn time, but the prolonged sideways action in recent months may stay more about the january peak than about the underlying strength of the market. stocks had rushed to a 7% gain in less than 4 weeks in january. the perfo for the year has been perfectly respectable.is ight not seem all that impressive given the corporate profit growth in the first half of the year.t flatter stock prices have made the market appear far less expensive the s&p's valuation back in line with the five-year average. it's not unusu for stocks to

stall. there was a similar pattern of grudging gains and frequent pull backs in the market back in 2014. also a midterm election year, that followed a powerful rally the year before. >> a few big concerns specific to the current moment continue to restrain the market despite stellar sults. raise prices and sap ceo confidence. the federal reserve seems intent on lifting interest rates well into next year, on top of20 hikes sinc. cere are nagging worries that the economicle is nearing a later stage. the later part of the cycle can last years. it's hard to find many leadingr indicaf recession that suggest a downturn is imminent even as the boost from tax cuts received. all of which indicate the bulle mas showing some wear andbu tearhas not seen its ultimate peek just yet. >> and then there's housing which is clearly a key party.f

the econ it may be starting to stumble. a new report out this morning said existing home sales fell 4.6% in june. it's third straight monthly decline. for those whoeant to m up to a bigger home, it's becomin increasingly difficult to find something affordable. there's one strategy that's popular. more and more diana olick tells us what it is. >> liz is already feeling right at home in p her newlace in suburban maryland. she and her husband didn't want to leave the city, but finding a larger house in t d.c. forir growing family was just too wpensive. even this home a challenge. >> we bid on four housesnd two of them went kind of crazy. into crazy bidding wars. >> in order to afford the bigger home, they needed to rent out the home they already owned in

an increasingly trendy neighborhood on capitol hill. >> i made aprdsheet and ran all the different options. we stay in d.c., we rent out, it made the most financial sense for us to keep our house in d.c., rent it out and buyhere. >> home prices hit yet another record high in june, according to the national association of realto, and the supply of homes for sale continues to lows.near record part of that is because investors scooped up homes, turning aboon 5 milli of them into new single family rentals. demand for homes t own and rent is stillg very stron as the largest generation marriage and family. >> of course, not everyone can on a a down payment second home. there are low downpayment options. it may be getting easier now to get a second mortgage, especially as interest rates rsrise and len are looking for more business. >> they're looking at the

possibility of making more loans and prior, say several years ago,uring the depths of the housing crisis, they would have been strict. but now the lreking at the rental income as a mitigating factor for carrying two mo agages. >> beiandlord does mean additional responsibility. >> having an umbrella polic is a really good idea. make sure you're covered e. insurancew i do think living in the house and really knowing it, and making sure it's in good shape before you leave and rent it out is one of the best things you can do. >> the last thing you want as a new homeowner is old problems. gus joinss now to discuss his outlook for the housing market. welcome back, gus, great to see you again. >> what do you make of where we stand right now in the housing market. it certainly is ang fascina phenomenon from an economic

standpoint, with the declineusn g sales for the last couple months. is it a sign that the marketspe ed and is going down or >>owing down. i think it's an indication that the market is slowing down, inventories have been tight, so that'sstrained home sales, we saw sales fall in june, particularly in the southwend , where markets have been tighter, i think now that ventories are rising again, there are more homes for salein that will brbuyers in the earket. we need h builders to build more homes, especially for the first time buyer. we need more homeowners who plan to sell to put the houses on the market. so we get more inventory o there, is that going to happen? what's it going to te down the road? >> we are starting to see more ventories on the existing side, and we're also starting to see improvements and supplythn new home site. there are constraints in home construction.

there's the shortage of construction workers. i think we're s ing price gaines of about 5 or 6% a year, that's going to lead to more hepeople putting homes on the market. and so we'll eventually see supply catch up to demand. >> what about the interest rate idenomenon, we see interest rates pick up pretty decidedly in today's tradiio se and that will translate into higher m atgage rate we at the level of interest rates on mortgages, the 30 year traditional mortgages, where it ll slow down demand. or maybe not yet? >> you know, i think that the higher mortgage rates that we've seen over the past couplye s, have weighed slightly on demand. that being said, there's a lot positives for housing demand. we have good job growth, rising incomes. we have better access to credit, and so i think you put it all together. the higher mortgage rates are t of a head wind, i think the's good tailinds for the housing market, i suspect we'll

see s increase over the second half of this year. >> gus, thank you so much. >> time to take a lk at som of today's upgrades and down grades, we begin with pap john's, which was downgraded do sell from whole to steven nicholas. the analyst sites a toxic culture ahe company that could hurt the prospects for a turnaround or buyout. papa john's said its board had adopted a shareholder rights plan that would act against any move by its founder to take the ttage. price tar now, $38, shares dropped by 9% today to 46.56. general electric was downgraded to hold from buy. the analysts saying ge may continue to struggle to meet the low end of18 its earnings guidance. the firm calls the outlook for ge's power business bleak. the stock dropped about 1% today

to 12.99. wall greens was downgraded to underperform. wallgreens is poorly positioned in market price care.il morris was downgraded to hold from buy. the analysts there cites concerns over reduced risk products which are primarily smokeless tobacco products. the price target is 0. the stock fell 1% to 83.22. still ahead, the road map for fee at chrysler as a new ceo takes over. mexico wants to reach a

nafta deal with the white house by the end of august. president trump hinted something cod be coming soon. >> we're talking to mexico on nafta, and i thinkoie're to have something worked out. the newfi president, ter person, i spoke to him at length on a idcall, a great job, a tremendous vote. they have a lot of confidence i them. we're talking to them about doing something very dramatic, very positive foroth countries. >> the dollar fell against the mexican peso when those comments were made this afternoon. whirlpool was one of the first companies to get caught up in a trade spat, which is why night's quarterly results are being closely watched. he price maker earned $3.20 a share. revenue fell to below $5 billion. the dock took a hit in initial after hours trading as costs for the company climb.

contessa brewer takes a look at the issues tha company is facing. >> whirlpool is blaming its disappointing performance in europe, the middle east and africa. it's promising to t action to improve operational execution, it lowered its full year guidance. the second quarter earnings shows whirlpool struggling i spite of the 20% tariff. whirlpool felt korean makers were taking them to the cleaners and pressed washington for more protection. the 20% tariffs announced in january wer among the first the terrupt administration slapped on imports. whirlpool added 200 employees to its factory in ohio. lg announced i would hide prices of its washington machines by roughly $50. customers started seeing climb across the board. up 20% according to theureau

of labor statistics. and the biggest monthly increases we've seen since the agency started keeping track. irlpool told investors it's paying more for raw materials. in part because of tariffs on steel and aluminum. analysts may press the ceo to explain how the trade war has imbasketed his business. fo nightly business report, i'm contessa brewer. hasbro gets aift from marvel toy sales. that's where we begin tonight's focus. the t maker reported a the results still came in ahead of wall street's lower expectations. they were helped by strengthening the coany's entertainment and licensing division as well as strong

demand for marvel and babe laid branded products. hasbro said tt pla move some of its production out of china due to the ongoing tariff fight. shares jumped 12% today making it the best performing stock in the s&p 500 today. then there's the other company, revenues camen strongerhan expected. halliburton production ramped up in the u.s., but the beat was overshadowed by concerns that demand i slowing for halliburton's services in the primmian basin. shares fell to 41.54, making it the worst perfoing stockn the s&p today. higher selling prices helped egg producer cal main's demise. the company warned that the market may see additional pricin pressures due to excess supply. shares were off 2% to44.95. health care servi s

provider said it has agreed to be bought and taken private byl ap global management. the price tag nearly $6 million. life point will merge with another hospital company which wi expand its operations. life point health rose 35% to 64.90. illinois tool works said the stronger dollar would hurt marg rorgins. the industrialcts maker also missed quarterly expectations. the shares were off 36%. after the bell, td ameritrade said that cost cutnd higher trading revenues helped to offset a decline in new client asts. the shares wereaf volatile in r hours, but they finished the regular session up nearly 3% to 59.06. the long time ceo of fiat/chrysler and ferrari has been replaced.

his health rapidly deteriorated over the past week. shares of both were lower as the automakers now face questions about their futures with new leaders behind the wheel. >> with his b trademarkck sweater and a maverick style that took chrysler from bankruptcy to grown, his pla was a huge ccess. the news that he will not be returning to work is a kick in the gut for a company that he led for almost a decade. sergeo taut us to think differently and to have the courage to change. ten in unconventional ways. often acting with a sense responsibility for the companies and their people. ihink it's har to name any other ceo in any other industry that's compiled his record over

the last 10 or 15 years. >> fca's new ceo, a long time lieunant who turned jeep into the most profitable part of the business. >> jeep's global sales skyrocketed to almost1.4 million vehicles last year, and he's long been considered an err akparent for the ceo job. >> anyoneg over for a position that sergeo filled has incredible expectations upon them. sergeo is iconic, both in the industry throughout italy, throughout can dark really on a global basis. >> while fee at chrysler's future appears clear cut, it may be a bumpi road for ferrari. he brought the luxury brd public. ferrari board membe cam larry

takes the rains. he may know the luxury automaker, will he havehe same magic touch as marcione. he was not a perfectceo. and not everything he tried panned out. fiat compact cars never really caught on here in the united states. still, he leaves fca in far better shape than when he took over. phil lebeau night business report, chicago. coming up, why a ekur-day workould be good for business. could a four-day workweek be in your future? it new zealand firm tried out for two months.

and it resulted in what they said was greater productivity, lower stress levels, improved life balance and higher engageme levels, a by working just one fewer day a week. is it in our futurnd will it make us more productive. mark, good to seeyou,hanks for joining us tonight. >> i was reading today, it was in 1940 the five-day workweek was manda in the united states, before then, six days -- >> this have gone pretty well since then. >> here we are 78 years later, are we efficient enough to move to a four-day workweek? >> companies are measuring the output of the workersather than the amount of time we put on the clock. we may see a lot more of this in the future. >> does it come down to what the employee wants in terk of w life balance?pe ing on what part of the country live in.

it c a cost more for housi things like that. jobs.us on 100 k plus we see at the higher end of the workforce. what people feel drives them is the ability to be contributing to something they believe in. the more companies are able t put t onus on workers. to -- you have to produce whatever amount of time it takes you to produce. 're not goi to watch the clock, the more powerful they're going to be. >> i would think it would be more -- it would be better in the technology industry, it makes more sense there than in manufacturing. i read it was the forward motor company in 1926 one of the first companies to introduce the five-day workweek. could this wor for all industries? >> it's a measurablebusiness, where it's very clear that the

output of the white collar workforce should be x units of whatever it is producing. it's pretty easy to measure how manyills or estates you handled this week. the more you can msure the output and weigh what people do in a week, the less you need to mandate the amount of time they spend a clock about what's your gut feeling as to how receptive most employers are to the concept? >> everybody feels -- i think a lot of employers feel that at first this is just going to reduce my output, my productivity. in a similar vein, remote work has become a big part of the workforce over the last 5r 10 years, we're starting to see whole companies move to being woremote forces, because they put in place, technology and

systems that allow them tome ure the output. and i i? as long as employers feel comfortable they can measure the output of their employees, the more comfortable they'll fl with being more flexible on the time they do it.k, >> mppreciate your time tonight. thank you. here's a final look at the day on wl street. the dow jones fill 13 points. the s&p 500 was up 5. that will do it for us tonight. >> welcome back, by the way. >> thank you, good to be back.e' >> here all five days this week. >> aive days. >> see you tomorrow.

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