report" with bill griffeth a sue herera. >> high gear. the economyrows at its fastest pace in four years. some say it c expand even faster. >> black eye. cbs, alleged misconduct by ceo moonves, a man considered a titan in the broadcast business. open house,f onee most visible marketing tools in real estate is getting its first makeover in more than a century. those stories and more on "nightly business report" for friday july 27. >> and d we bid you a good friday evening, everybody. welcome. in case you haven't noticed the economy is firing on all cylinders right now.

a new report said second quarte growth came in at 4.1% nearly double the first quarter's rate d the strongest pace we've seen since 2014 consumer spending bounced back, business investment picked up. now invest issues are wondering if the economy entered a newra of faster growth. steve liesman >> 4.1% for the second quarter, the best number in four years, barely an hour after it was released preside trump took a victory lap on the south lawn. >> these numbers are very, very sustainable. this isn't a on.time sh i happen to think we're going to do extraordinarilyell in our next report next quarter. i think it's going to be outstanding. >> some observers concur these strong numbers can keep growing. gdp shows strong growth in consum spending and business investment along with government especially byn defense outlays. there's also a bump from trade

that som economists come from foreign buyers purchasing products before tariffs drove up their price. >> what i was looking for, how that of this number w going to be so yybeans of the trade stuf how much sugary stuff we saw that in trade numbers. >> fewer economists think the economy caneep doi laps at 4% rate. for "nightly business report" i'mteveliesman. >> let's turn to joe for more on the economy, chief enomist with rsm. good to see you, joe. welcome back. >> good to see you. >> i guess this is the question, is twts type of g sustainable? >> not at 4.1% it's not. economy ing to see the grow just under 3% for probably the next quarter orwo. we'll pick up in the last quarter of the year and finish above 3% for the entire year of 2018. you know what the best news was about this, the way consumption picked up it's very clear talt

indivi at the lower end of the income ladder are beginning to end some. we're starting to see classic business cycle dynamics and this is good news. it's been a long time since the economy has grown like this. everybody should enjoy it. tight labor market helps in that area but we are just this week we heard from a number of companies that talked about cigherts related to the tariffs that we're seeing being imposed right that's going to take a toll at some point in consumption. don't you think? >>well, that's right. so later this year, early 2019, you're going to see the impact of a trade conflict. in fact you saw counter-intuitive impact in today's number. one of the reasons the growth was so strong a full 1% point contribution primarily chinese mopping up every commodity they could before the trade conflict commenced. >> so where does this put the fed at this point? we do f have anoth meeting coming up next week. if growth is that hot, do they

have to be more aggressive? or if it's going to cool down, can they stand pat? what do you think? >> they have to watch what going on in policy world around trade conflict. tthere's in need pick up the pace. two rate hikes 25 basis points this year e isirely appropriate. three, next year. when we get to the middle of next year in june, that's when the fed is going to have to make a difficult decision how long do they want to keepikhe rate campaign in place. >> inflation. there?o you see >> well, consumer price index is sitting around 2.9%. i expect it to rise a little bit and ease back to just around to 2.8. inflation is going to, but if the trade conflict accelerates we want to revisit that forecast. you're going to be looking at much higher inflation in 2019. >> a lot of people pointing to the tariff situation, if it goes on for a long mtime, thatht be one of the tipping points

that brings that recession word back into play. would you agree with that or not? >> well, quoting the r word is a bit premature from my point of view. but the steel and aluminum tariffs in place right now, for every one job i it createsthe steel and aluminum industry, lose five in other industries. th s isething that we'll want to watch with respect to growth because, you know, it's been over seven decades since we've had a true trade war. given integration of global supply and value change, it's difficult to accurately measure how this particular trade conflict is going to impact our new globalized economy. >> joe, thank you so much. joe with m. bill. on wall street the strong report on the economy was not enough to offset an decline technology shares, dow component intel fell sharply today, dow re than 8% following that disappointing earnings report we told you about lastgh twitter shares fell even more,

down more than 20% today after it reported decline in active users. more on that. dow owfell, nasdaq 114 today, s&p lost 18. for the week ts dow the big winner up about 1 1/2% while the nasdaq was down 1%. >> a climb in the price of oil in the second quarter wasn't enough to drive earnings at two world's largest oil producers. dow components exxonvr and c both reported disappointing profits but for different reasons. jackie deangelis explains. >> the big three energy companies reported this morning and t results were mixed leaving a murky picture on wall street on what to expect next. exxon and chevron missed, the bar was high and it wasn't met. exxon blamed on refinery intenance cost, downstream business. its capital expenditure surged but those costs not offset. the company said oil prices

alone would boost earnings by billion dollars. >> this is planned maintenance. it goes in peaks and troughs. we take turnarounds on refineries. they come every several years. we just had a peak in the second quarter. a large amount, several refineries down. of course you get double mpact whrefineries are down. first of all you lose the volume. at these strong margins it's big eaings. spend lot of operating eximnse. >> meae chevron said profits doubled from a year ago but also saw weakness in refining. interest expenses had a higher impact than previous quarrs. even though the country said it would start returning cash to shareholdersuy andg back stock, its shares saw a drop as all. >> for anles to appling comparison underlying first and second quarter by $500 million. higher prices and higher ti

prices at $5 a barrel. upstream did not fully capture increase in global oil prices largely due to portfolio mixed effect around wti differential. >> phillips led theacker earlier in the week. higher oil and natural gas prices helpful during the quarter as oil was hovering close to $70 a barrel. the company bumped capitalnd exures a sign they are strong, raised production expectation. whenxxon and chevron are down they take the sector wit them the issue going forward if higher oil prices weren't the answ for oil this quarter, what will happen in august when seasonal prices dip and the environment isn't as favorabl analysts bracing for big oil to continue to struggle. even more a questions bp agreed to buy $10.5 in shell from bhp. a good time to sell ath a h

price but will that investment pay off in the near term for bp. for "nightly business report" i'm jackie deangelis. fellow dow component merck topped forecast an raised in particular that helped power that drug giant's profits. meg has ttot sry for us. >> reporter: a big drir of merck's strong quarter, theca er drug keytruda, sales rose to $1.7 billion. first approved in 2014, the medicine is nowle fda ced to treat nine different kinds of cancer from lungs to lymphoma to melanoma. it was for that cancer it was famously used to treat for jr presidenmy carter and credited in 2015 with helping shrink i tumors his brain. >> this week they didn't find any cancer at all. keytruda ist p of the new wave of cancer treatment known as immunotherapy. some cancer cells have the ability to hide from immune system.

bristol-myers unveiled cancer cells so defensesan tack. merck and bristol-myers have been locked in head-to-head battle for immunotherapy na nce. for theeyirst timeuda posted higher sales. >> we think they are very similar. however, keytruda was able to show very strong efficacy in lungcancer. again, one of the largest indications in oncology and that really pushed keytruda ahead. > while keytruda has improved outcomes in many different kinds of i cancer, hasn't work in any clinical trial. it doesn't work for every patient. in a trial 300 patients with advanced noncell lung cancer. 45% of those taking keytruda saw their tumors shrink compared to 28% on chemotherapy. like any medicine it doesn't come without side effects. t s case the concern immune system may attack other parts of the body such as organs. of ruda carries a price tag more than $12,000 a month or as much as $150,000 a ar. for merck the drug has been such

a success wall wonders if the giant could be too dependent for growthud sees key going to sales of $15 billion a year by r2022. "nightly business report," i'm meg terrell. >> as you know by now, it was a a very busy week for earnings. as boban p reports a few key issues have emerge >> we're just past halfway point for second quarter earnings. al trends already coming into focus. even with high-profile misses from the likes of facebook earnings and revenues from second quarter are higher than the ted and estimates for third quarter are holding up and that is good news. earnings growth isunning above 22% and revenues up almost 9%. there's several subtrends that are apparent so far. first, companies missing the numbersgely because of higher cost are mostly those companies exposed to the steel and aluminum tariffs like general motors or whirlpool.

second, there's a split between those who can afford to raise prices due to higher cost and thoseho can't, like colgate and palmolive who worthed this morning. those who can't face margin erosion. e.at's a pr third not all the same, some companies provided higher guidance. that's a good thing but not enough to impress investors. look at northrop grumman. the dollar an issue, many companies with larges opera overseas, coca-cola, general motors, they mention the dollar strength as a potential headwind. finally growing concerns,fi immediate p might take a hit from higher regulatory cost particularly in europe where new data protection regations are w in effect. this is an issue for facebook, an issue for alabet, spotify and for twitter. while everybody is focused on tariffs, it's the tax cuts that really matter. that's one of the things powering the markets. the bottom line, the overall mark is holding up well because of revenue growth, tax cuts, and no cut to earnings in

the third and fourth quarter. "nightly business repor i'm bob pisani at the business exchange. >> it's time to t a look at upgrades and down grades right now. alysts at just about every wall street bank and brokerage issued a report on amazon today. many hiked their price targets including jpmorgan which upped its target to $2200 on that stock. the analyst citn ama significant profit growth we saw in the second quarter following that earngs report last night. the rating remains at overweight. today'shares closed at 1817.20, up half a percent. meanwhile intel downgraded by a couple firms including citi which cut neutral to buy. host of margin head win after intel's disappointing earnings report. price target $50, finished down in today's trade.

>> down to market perform from outperform at bmo capital markets. the analyst cites problems with the cloud bus following the company's disappointing revenue and margin guidance. pre target is $27, today juniper dropped $2 o2618. mattel upgraded to neutral from underperform at d.a. davidson. the analyst cites possibili takeover of mattel. the price target is $14. mattel lost a couple of pennies to close at $15.58. still ahead cbs's board investigates the crond th-- ceod the stock drops. -- ceo and the stock drops. ceo and the stock drops. ceo and the stock drops. ceo and the stock drops. cbs shareholders got a surprise today, a report released by new yorker a little sexual misconduct byeo les

moonves, credited with helping make cbs a t juggerna. cbs said all allegations of misconduct are to be taken seriously. cbs committed to investigating claims that violate the company's clear policies in that regard, end quote. the shares tumbled. julia boorstin with aat loo why thereaction was sharp and steep. >> the investigation into les moonves comes as theny is in the midst with legal battle with viacom control shareholder and national amusements. after she advocated for mbination of the two companies, cbs led by moonves sued for a dividend to dramatically lower the stake to prevent merger. no right for national voting control. investigatiews o into moonves, which could threaten his leadership, viacom

ares moved higher and cbs shares moved lower on the perception that cbs's boa investigation could threaten moonves's leadership of cbs making it morey l that a c merger betweenbs and viacom happened. moonves lauded for his leadership of cbs since it split fromiam back on january 1st, 2006. in that 12 1/2 years moonves bucked expectations cbs would be the slower growingf the companies, diversifying from advertising and growing feeds from cable providers and digital revenues. cbs shares have surged since in contrast viacom shares are in the red ovet t same period as networks struggled with eclining ratings and ad revenue. the studio suffered a number of years without massive breakout hits. >> not only is les moonves one ld the last school hollywood moguls, he's one of the closely identified ceo of his company of all media companies. he is cbs and cbss les

moonves. for there to be any change at that company, if he leaves or moted or whateverhappens, that would be gigantic for cbs. >> if the claims turn out to have y rit, tuld expect moonves to be forced to step down, warning viacom shareholders would not reap a substantial premi and, quote, the effect on cbs as as busin would be somewhat shattering with several other key executives likely leaving. now it's not just les moonves's future that hangsn the balance but that of cbs and viacom shareholders as well. for "nightly business report" i'm julia boorstin in los angeles. disney gets green lightro shareholders providing 20th century fox assets. that's where we gin, tonight's market focus. shareholders of both companies voted to approve the $71 billion deal that gives disney control over fox's entertainment m properties aority stake in sky. the approval comes after months of uncertainty with disney and comcast at one point engaging in

a bidding war whichnded when comcast declined to top disney's last offer. shares ofne d wildfire off a fraction to 112.62,0th century fox off slightly to 4515. charter communications may be in jeopardy havingt's agreement with time-warner cable pulled. the commission voted to revoke the approval of that 2016 deal alleging that charter did not make good on its promise to expand high-speed broadband network access in new york. charter also risks losing its authorization to operate ithe state. shares of charter fell fractionally to 28629. twitter's earnings may have matched estimates and revenue was a beat but all the focus wat on t decline in monthly active users. the social media l platformt 1 million users in the quarter and said that it expects additiona declines awell. the company attributed the drop to new privacy i regulations

europe and to its efforts to clean up the atform. 's also forecasting a weaker than expected profit for the current quarter. twitter shares plunging20 today to $34.12. >> good year tire topped earnings expectations and said tt gained market share this p quarter. the tiremaker also said higher material cost and strong dollar would cost operating income for the year to come inower than initially thought. investors didn't seem to care. they sent the shares up more than9% to 2315. a rise in sales for drugs helped earnings t expectations. the company raised its full year guidance but that news was overshadowed by concerns that the company's key arthritis treatment is experiencing slower sales owth. off 3% to >>$90.56. now to weekly market monitor looking at stocks he says are the nuts and bolts of economic

recovery that also provides stability in the current market. this is h a first time a market monitor. he's been with us before, president and portfolio manager at jewel financial. welcome back. thanks for joining us. >> thank you. it's great to be hereit >> we begin a company that literally makes nuts and for the economy, faasenel. >> youd ope with a great phrase. if you want to open withinn economy gr 4.1% you make the company with the nuts a bolts. this is growth at a reasonable price. they are growing the business and theot market is yet pricing it at a level out of reach. in addition the company had some increasing ways of their sales there, moving to on sis. locati

actually, get this, operating vending machines that disburse these nuts and bolts for customers. in addition the stock yields about 2.75% in a health dividend, attractive balance sheet, a great compyny. >> steelics is your next pick. you say it also has a healthy balance sheet, strong top and bottom line growth. we've heard a lot about steel and tariffs. are they susceptible or vulnerable to a of that? >> they are. there's no question about that. i don't think thathould scare our audience. the rising steel prices are those ly going to impact that buy steel for their products a then have to pass that on. steel dynamics is the seller of that steel. they are benefactor of a rise in steel price. whether that comes from tariffs

or trade disagreements or economicdemand, the company edoubled itsnings per share and won't get too crazy infancy numbers here, butheare only selling it 10 times forward earnings. v that'sy, very cheap for a company that has just recently doubled their earnings per share this year. >> tinally your stability play we mentioned, that's pfizer. why that company? well, you've got to have some sleeping well atht n stocks in your portfolio. as you know, we're very actually concerned about this market in the short to intermediate term. i think defense is key. pfizer is a freight defensive play. as with allto of ours tonight, the stock is not expensive. far as the valuation, which is very important, it's irregardless of price, we want to look at valuation. here is what's key about pfizer. with aery, very attractive balance sheet, the company is

yielding 3.65% in a dividend and has a very stocked pipeline for future growth. so this is a great defensive name to get good income and u probabide appreciation over time. >> very good. clint, good to see yo have a great weekend. >> you, too. >> to read more about his picks, head to our website at nbr.com. coming up,on ccting the for sale sign to the digital world. one of the oldest staples selling real estate is about to get a major makeover to bring it into the digital age. here is the story from

washington. >> reporter: it is the most visible, most effective and most mundane marketing tool in all of real estate, the for sale sign. it hasn't changed in over a century until now. >> so the main thing about the sign it's connected, intelligent, illuminating. >> yes, is a new sign, it lights up. compass brokerage, a new kid on the real estate block is disrupting the old sign with high-tech interactive smart model soon tbe available to all of its approximately 5,000 agents. >> we wanted to really consider creating the ecosystemke that it powerful, which is a combination of data and softwar and hardware that can help really deliver something of value for our agents and their clients. >> the sign will light up when anything comes within a 20oot radius. if you have the compass app on yourhone it will send you a notification about the property and connect you witthe compass agent.

the sign can direct potential buyers to the house through the luze app. >>ooth technology and motion sensors. we see the sign as a part of a nnected ecosystem of devices managing the sale of homes in the further. everything fm open house to digital lockboxes. >> the sign is definitelyng disruphe industry but will it disrupt neighbors especially if it starts lighting up0 at 3 a.m. given all the expensive technology in the sign, it could be more likely to get stolen. >> we don't believe that the gns will be stolen. you can customize these various boards. he did add agents who will pay about $500 for each one will also have insurance on them. the risk is perhaps a small price to pay for a big upgrade that is clearly a sign of the times. for "nightly business report," i' diana olick in washington. s> to read more about that real

estaten makeover, head to our website, nbr.com. beforegoe one last look at the day on wall street, capping off a very w busyk of earnings, dow fell 76, nasdaq biggest hit today, down 11 4 with technology stocks sharply. nasdaq was down 1%, s&p up. >> we did it. we got thrgh the ek. that's "nightly business report," i'm sue herera. thanks for joining us. >> i'm bill griffeth w have aderful weekend. we'll see you again on monday.

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