this is "nightly business report" with bill griffith and sue herera. pumping out profits. that's what corporate america is doing and investors like it. >> farm aid. the trump administration is giving o billions dollars in emergency money toic amers heartland to ease the trade war pain. >> show me the money, but if you win the half a billion dollar mega millions jackpot, there are a few things y need to do first. those stories and more tonight on "nightly businesspo " for tuesday, july 24th. and we do bid you good evenineverybody, and welcome. investors so far like what they're seeing this earnings season. profits are up,evenues are generally stronger than expected so investor sentiment is high and that's puttingra july on to be the best month for the dow

and the s&p since january. today the industrial average rallie 197 points to 25,2441. e nasdaq fell a point after hitting a new intraday high &pearlier. the added 13, but as companies report their quarterly results, they areo a identifying some developing headwinds. bob pisani expins. >> earnings season is in full swing a so far the numbers are still strong. second-quarter earnings are expected to jump more an 20%. those are outstanding number, but the outlook is lookingle a li less rosy for a handful of companies. so tre are three key headwinds in particular that are plaguing some reports. higher interest rate, a stronger dollar and of course, all of this trade war uncertainty that's leading, in some ca hs, toher cost. illinois tooleorks, they mak industrial equipment like engineer fasteners. they talked about currency

issues and inflationary challenges y whirlpool, all know them. big manufacturer of home appliances like refrigerators and washing machines. they suffered a big earnings miss and they cut their fu -year outlook blaming in part, stronger dollar, a rise in steel costs as well as some weakness in europe. the ceo, markisher said the u.s. steel costs in particular have reached unexplainableve , that's a quote. whirlpool had originally been a big supporter of stricter trade controls for its own industry to combatompetition from rivals like lg andamsung and n they're feeling the effects of higher input costs due to some of the teariffs. kimberly-cla too cited weaker foreign currencies, stronger dollar and significant inflation like raw materials like pulp is a key component in many of itst ue products. harley davidson, this is another

on they posted six straight fees and they, too, warned about thea potential im of new european union auto tariffs on their profitrg s, and finally, avery dennison, they make labeling products and stationary kinds of things and they started rolling out price increaons with respse to rising commodity costs andaterials like paper and residents used for adhesive. the direct impact so far is modest,ut it doe paint a broader picture of macro uncertainty. for "nightly business report," i'm bob pisani at the n york stock exchange. >> nick reich joins us now to talk more about corporate earnings and the potential at headwinds ome companies and industries are facing. he is the ceo of the earnings scout. welcome. nice to have you with us, nick. >> thanks for having me. >> bob pisani talks about some of those headwinds including the tariffs, but you mak the point that basically the tariff issue is very company-specific, and that right nt's not

affecting the economy and the market overall. >> that's correct. they're industry specific and the overall impact of tariffs right now to the overall economy is immaterial, b if you're in the crosshairs of aluminum, stee autos and t farmer, you're impacted greatly, but thv all impact right now and the net-net of the overall economy is not material at all to the s&p 500. >> how many quarters do we need to go before it becomes material. >> at some point it somewhat feels li comes about tariffs, but if it goes on much longerri it won't , t? >> that's absolutely right. >> there are some companies that have been struggling before any announcement of a tariff that will use that as an excuse this earnings season we've seen a little bit of that and weas ed the declining for one or two years. again, before the tariffs. >> when it escalates, if it becomes immaterial, then we'll

have a problem and the analysts wall street are not factoring in escalation into the estimates right now. the price has been depressed this year because what we have is e fabbousnings right now and if it wasn't for the tariffs talk and the tensions, this would be a rip roaring year for the market. >> what about those currency issues? the number of companies are citing the currency issue and it seems that the currency for then muionals really has become an issue. >> it has for some and we've seen that. the overall aggregate is 2% or 3% have hit the earnings growth. take it to the bank and tha will occur, but the strong dollar does persist and on the multinationals, that is a bit of d issue and it's not just the tariffs and the emerging markets suffer because of the rising dollar.

companies that do business in there will suffer at the margin because the expectationneed to be tempered for their businesses in emerging markets. so the dollar does play an pact in the role there and don't expect the profitability e of thosesee s companies struggle. >> thank you so much. appreciate it. nick race with earnings scout. . thank y >> by the way, the best-performing stock in the dow today was united technologies following a strong earnings report and an upbeat outlook. it was one of th three widely held bluelchips thatsed quarterly results and the other was 3m and veron. >> a trio of dow components were among the earniepsts that kept traders and investors busy today. first up, united technologies and the aerospace and systems company posted better than expected profits and sales and forecastd the profi thanks in part to better demand for parts and services and airlines. ceo greg hayes is keeping a close eye on possible, longer term effects on trade and tariff

policy. >> we're actually not seeing the full pact of the steel and aluminum tariffs and it's how long those are staceng in p i think if you think about next year, you can see a much bigger impact from all of these tariffs and plus potentially highe steel and aluminum tariffs as well as the copper input costs, d we've got a lot of work to do to try to offset that. the industrial company 3m was a more positive storyhe after maker of scotch tape to knee braces to commercial filters also posted better-than-expected profits and sales. 3m benefited from theeroad ra of products like safety and graphics as well as health care, but it d trim the upper end of the full-year profit outlook. the company also toldnalysts that it does see a large impact from the tariffs, and it's prepared if tear ofs aexpand. finally, was there verizon. the telecom and internet media company had a beat onan profits

sales, but they missed analyst expectations. verizon als said it lost 37,000 fios video subscrirs which is more than it lost the same period last year and it did add to the internet. customers it's day two of the busiest earnings week of the season, among the dowpo cnts left to report this week, boeing, coca-cola and visa tomorrow, mcdonald's and intel on thursday and chevron and exxon mobil and merck on f. for "nightly business report," i'm dominic chu. >> eli lilly continued the trend with the strong quarterly performance. e drugmaker outpaced both profit and revenue estimates hich made it one of the best-performing stocks in the s&p 500 today. >> nick dorell took a look at what drove earnings results. >> it was a better than expected second quarter for eli lilly ich based on the results, helping to drive sales wereme

cines for diabetes and e lipta for cancer and cialis for men's health. theddrugmaker s it doesn't intend to raise its prices for the rest of the year. that follows other pricing pledges from pfizer, merck and novartis. the trump administration laid out of blueprint to lower druge prn early may. >> today my administration is launching the mostep sweg action in history to lower the price ofio presc drugs for the american people. it and ltle changed until the president called pfizer earlier this month, prompting theo company reverse planned price hikes. the rest of the industry has since started showing more restraint. volume-driven strategy and we have new medicines that can make a profound difference for patients and that's what we're doing. since the blue print was announced, we have not changed any prices in the u.s. and as we're saying today our guidance doesn't include u.s. priceer changes ei

>> it plans to pursue the initial public offering for the health business and elanco, it gerated 13% of lilly's revenue in 2017 or $3 billion. analysts applauded the move with the success. that stock has almost tripled since it began separately from pfizer five a yearsgo. for "nightly business report," i'm meg terrell. >> time to take a look at today's upgrades andowngrades. we begin today with nucor which was upgrade fromei sectort at key bank capital markets and the analyst there cites the prospect for infrastructure spending. price target $77 and it rose to $67.82. apple increased to $232 to morg stanley. ahead of the earnings out next the service c business which is a big focus for investors right now. the rating remains overweight.

the stock rose a fraction today to 193 even. >> morgan stanley hiked its price target on ahabet to 13.25 following the earnings report last night. theuarterly results suggests there is still a lot more growth ahead. the ratingemains overweight and the stock rose 4% to 1258.15. coverage of eog resource was started as a buy rating at mizuho. it is called the applel of the industry. the price target is $173, and the stock gained 2% to $125.62. still ahead, why the white house is sending billions of dollars in emergency aid to farmers. ♪ the department of

ns to give now p $12 billion to farmers and ranchers hurt by tariffs imposed on u.s. products. it is shorts term relief, but it could ease the blow of the trade fight. kay kayla tauschy hashe details. >> farmers are feeling theas he u.s. tariffs are met with retaliation in america's heartland. president trump said the end result will be better deals with trading partners. > we're making tremendous progress they're all coming and they don't want to have the tariffs put on them. they're all coming to see us and the farmers will be theiggest beneficiaries. just be a little patient. >> to buy that patience, the department of agriculture put2 together a illion fund, temporary aid that will be paid directly tors farhose crops like soybeans plummet in price and buying surplus in other crops like fruits and nuts where markets dry up up. usda called it a short-term bridge to offset immediate

financia stress from market disruption. the farm groups and republican lawmakers didn't buy it. >> havg talked to a lot of farmers over the weekend, i got the same refrain whichur i'm se you've heard a lot which is wee want tr not aid. >> nebraska senator ben sasse lled the fundbailouts saying this trade war is cutting the legs out from under farmers and the white house's plan is to spend $12 million on gold crutches. the aiarican soybean asson called for a longer term plan that includes removing harmful tariffs. >> there are still a lot of unanswered questions about how the aistance will work and how long it will last and they'll work all of that out in we next weeks with the first payments expected to go out around lab day. for nightly business report i'm kayla tausche in washington. >> word helped lift shares of farm-related compani today and companies like deere, caterpillar and agco which in theory could benefit if farmers continue to benefit on tractors

and other gear and the meat industry is also bracing for the effects ofariffs which could add to the surplus. aditi roy reports from san francisco. >> at marina meats in san francisco, the butchers here say the prices they pay for bee and pork haven't changed much this year despite the increasing supply of meat. >> sonoma county to everywhere in the proximity of 200 miles. >> some analyst the rising amount of u.s. beef and pork sitting in cold storage could mean trouble ahead for farmers and meat companies. meat that doesn't go to retailers, restaurants or export rkets end up in freezers. the latest usda monthly numbers show total pounds of stored beef were up 8% yr over year. frozen pork is up slightly from

lastr. y analysts say the numbers are not record setting, but big and g. forbod >> we're definitely expecting inventories to continue to increase and we're expecting a huge increase in production this fall, record high. >> the a aunt of meat cold storage has been building in part because of low feed prices ich is a major cost for eroducers, but demand has also been on the ris especially from export markets. analysts say meatce pors have increased production to fulfill the growing needs, but eventually ballooning supply outpaced demand and now with trade tariffs and exports to china and mexico. some analysts say it's just a matter of time bore the rising supply of frozen protein will eat into profits of meat dumps. >> as it stands today, you would expect prices to drop especially for products impacted by the tariffs. >> price drops could hurt

farmers which is why today the trump administration announced plans to offer up to $12 billion in aid to farmers hit by tarrives on their goods. >> still, some predict consumers coulbe the big winners especially if thefs tar stay in place for the year. >> you could see lower cost, f example, this thanksgiving and christmas. >> the effects of tariffs take time and some analysts say don't expect to see cheap meat at your soon.arket any time for "nightly business report," i'm aditi roy, san francisco.io >>n raises its full-year earnings outlook and that is where we begin tonight's market focus. >> aft reporting a stronger than expected quarter driven by higher sales of itsuscle sease treatment and the biotech company hiked its profit guidce for 2018 and it said its revised forecast reflections its confidence in itspi product line especially its experimental alzheimer's program and biogen finished up 4% to

72.84. glaxosmithkline said its experimental drug 2 treatment for hiv proved to be just as effective as treating the virus as the standard therapy made up of three drugs. as a result, glaxo says it's planning to approve the two-drug protocol this year. shares are up a fraction to $41.21. health insurer senteen that strong membership goals for the affordable care act helpedal ov results beat analyst expectations. it's optimisti about enrollment rates in 2019, as well and so that it plans further expansion in those aca a marketsnd it's raising its full-year outlook for revenue, and still shares fell 4.5% to $132, but we should point out it's been up more than 60% in the past year. jetblue's adjusted earnings expected tter than even as higher fuel costs ate into results, but revenue missed

estimates and the company warned it's planning to trim growth in the second half of 2018 as fuel costs surge. shares fell 10% to $17.79. also, after the bell, at&t reported a faster than expected rise in new subscribers. that growth t helped company deliver a profit beat and revenue did miss expectations, but the company is hiking its full-year earnings forecast. investors focused on the revue miss after hours and they finished the regular day up 2% to $31.68. house republicansalled for permanent tax cuts for thdividuals and small business owners. plan expands savings plan for 529 for college savings and some retirement accounts and establishes tax breaks for start-up companies, as well. this broad framework so far isb being d tax reform 2.0. senator warren said if she could, she would like to see the already past the republican tax cuts rolled back and she

explained up in an interview with john harwood. >> here's how i look atge b and taxes that are a part of this and a lot ofeople think they're just numbers and they're not and they're the expression of our values and the values that the republican party the taxut are giving it away to the richest americans and the biggests corporati that then let everyone else pick uphe crumbs and i don't think that's the right way to think about it. h what's tooh? >> it's not about -- that's what negotiations are all about. >> 50%io oly too much? >> there was a time in a very prosperous america,men aca that was growing a middle class and an america in which working families were doing better generation aft generation after generation where the top marginal re was well above

50%. >> 90%. that'shtxactly r >> but for me, the heart of the question is that you've got to ask, what constitutes a fair nomy. in this e right. >> and look, it depends in part on what the economy is, and it also depends -- >> it doesn't strike you as obviously, no, th90%. 's ridiculous. it can't be that. >> 90% sounds pretty shockingly gh, but what i'm trying to get at is that it's not about negotiating a numbe specific. >> senator warren also told john that she believes in marketsfund tioning economy, but only fair markets and markets wit rules. >> ivanka trump announced today that she is shutting down her fashion brand. the president's daughter and white house adviser said she was making the move so she could focus more on her move in washington, d.c., and she has alsote repy been frustrated by restrictions aimed at avoiding conflicts of interest. some department storesike

nordstrom and hudson bay have also dropped her line because of poor sales. the company currently has 18 employees. >> coming up, if you h the mega millions jackpot, there are a few things you need to do first. ♪ ♪ >> pepperidge farm has recalled four different kinds of goldfish crackers over concerns of possible salmonella contamblation. the p could be connected to whey powder used in seasoning in four different flavors. no illnesses have bepnted and no other pepperidge farm products are subject to the t recall as follows a similar step taken by kellogg's over some types of ritz crackers and honey smacks cereals.

>> a new report shows a sharp decline in home sales in southern california. a cording according to c dropped by 12% more than a year ago, but prices rose toleecord ls and the median price paid for all southern california homes sold in je hit a record $536,000. one reason why this report is being closely watch side because california, in the past, has been a predictor in the country. >> the mega j millionskpot stands at half a billion dollars. that's the fifth largest pri in t game's history. the drawing is tonight, but i ngte to tell you this, the odds of win are slim at one in 302 million, but that's not stopping people from buying tickets and dreaming about hitting it big. >> $512 million, that'snt big am of money. t. i could do a lot with t buy a house. >> if i win, hasta la vista,

baby, i'mut of here. >> so what's the first thing you should do if you do hit theck jat -- i should say when you hit the jackpot. >> the president ofea titush management joins us with tips. >> the first thing i always heard when you win a jackpot or get some sort of a win faurl, first thing is to do is nothing, right? >> yeah, bil the first thing you want to do is stay calm. the second thing you want to do is sign thatir ticket and foremost. you want to make sure youyo put name on the back of that ticket, fill it out and make sure it's yours and it's your own. so a third is probably to stay iet, just to your inner circle for that immediate time period. not to run out a and buy bunch of houses and cars and that kind of thing. >> right. >> i wou assume that time when you stay calm would also give you thehance to p together a team, right? if you win that amount of money you're going to need some help. >> oh, absolutely. you're definitely going to need

a team of advisors and this is where you wt to veteople out to make sure they're trufrtsted advisers and make sure they're right for you to help you with the long legacy of wealth transfer that you have that will happen. >> the big debate always is d you take the lump sum up front or do you take the annuity over the number of years? >> great question, bill. >> yeah, so from a personal control standpoint some people might say to take the payments ov a period of time. if you do a calculation and come back at it, youye proba better off taking the lump sum from that perspective, but it does depend on you and your thoughts and goals and remember, ents, do take the pa they're for 30 years. so that lump sum could grow at a much larger rate over piod of time and could leave the next generation with siggive nifican

more. >> a lot of people tha i we've hearthe past that win large lottery award, they end up spending it or giving it away or not setting r up theht kind of trusts so that other parts of the family or generations late still h some of that wealth. >> sue, i'ven s first hand. i've seen people buyings relatind cousins cars and not so much houses, but cars and trucks and the like, and i've seen 12, 15 million squandered away. it can happen. it happens over time and all of a sudden you wake upay one and say what do do i? it isan so impo to have a team of trusted advisers tond undershe situation you're in. while it may seem so overwhelming thathis amount of wealth that you have, you look at the celebrities overof a perd ime that have gone through large amounts of money. >> did you buy a ticket? >> i do -- iid. i bought a ticket on my way

here, bill. >> good luck. >> with titus wealth management tonight. >> if he's not available again, 'll know why. he won. all right. before we go, let's take a look at the final day on wall street. the dow rallied 197oints to 29,241. the nasdaq a hew intraday high and the s&p 500 added 13. i got my ticket. you got your ticket and even if we win, we'llee h tomorrow. we hope you win. s at's the "nightly busin report" for tonight. i'm sue herera. >> i'm billh. griff good luck. see you tomorrow.

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