this is "nightly business report" with bill griffit and sue♪erera. ♪ ♪ apple makes hiftsry. today it became the first publicly traded american company to be valued at $1trillion. place your bets, vegas bookings are down at some b hotels is this just a blip on sin city's rad? >> lemon squeeze. ridiculous-breaki ridicus record-breaking temperatures are pushing husher. nightlyess report for thursday august 2 rnd. and we bid you good eveningb evy, and welcome. the race to $1 trillion finally has a wner. apple today became the first publicly listed u.s. company to achieve a total market value of $1 trillion.

that number, by the way is the result of multiplying the stock's price by the number of shares outstanding. the mileston underscores the device maker's longtime growth and highlights its role not just in the technology industry, but also in our everyday lives. apple's stock today was up about 3% to close at079. the company's shares have risen more than 20% this year, getting an extra boost on thursday after porting better than expected earnings and revenue. >> apple is not the first dow component to make valuation history, and it won't be the last, but bob pani takes a look now at the companies that came before it. >> apple's spark t$1 trillion is the first to sky high valuation. the runner-up, of urse, is the company that has its hands in virtually every industry and i'm talking about amazon. the oney, co was u.s. steel all of the way back in 1901

right at the start of the 20th century when the demand for raw materials paved the way for that company's success. the race for the first $10 billion company was ateally tigh one. general motors became the first to cost $10 billion in 195 dupont, at&t and standard oil were noteh fard. after that, the first company to hit 100 w billion ibm and that was in 1987. the first to hit 500 billion? software gnt microsoft. that was 1999 right on the brink of the dotcom bust. they're ahead of the contenders. apple was the sixth firm to hit the $500 billion mark and that was in 2012 after the likes ofe xonmobil, microsoft and intel, all ofhich had fallen well below that mark by the time apple got there.by he time, it's worth noting that facebook and amazon only had $500 million last year along wi chinese communications

giant ten cent and that's the first asian tech firm to reach the valuation. keeping track for those numbersn for "nightly bs report" i'm bobat pisanhe new york stock exchange. >> an efls nwas not the first t1 trillion. petro china hit that and it was worth less than $260 billion. >> on wall street, apple's climb was not enough to give the market overall a big lift. it was concerned with that kept a lid on the gain. the dow jones industrialverage fell seven points to 25,326. the nasdaq added the s&p 500 was up 13. it is still unclear where trite relations china are headed, but there appears to be some movent on trade with mexico. a delegation from that company arrived in washington today to discuss changes to nafta where the focus has been on teching points like autos and possible wage hike, but there clearly is

no deal yet. mexico's economy minister was quoted as saying e fall into place or nothing will fall into place. >> now that smer is half way over we thought it would be a good time for our viewers to take a closer look at their portfolio and make sure it's well positioned for the fal joining us to offer insights is mark luccini at montgomer scott. good to see you. welcome back. >> thank you, sue. can't believe how fast summer is going. as we approach the fall, what are the keyou issues thate looking at and that viewers should pay attenon to if y do need to reposition that portfolio? sue, for us, of course, are we going to continue to see the same strength in the u.s. economy that we've seen in the fit half of the yea and that's an unambiguous g our view that we've seen this inertia carried through 2019 and that's the part of corporate assets overall. secondly, of course, is moving past earnings season and

we have the void of new formation and the next fed meeting in september and they're likely to hike rates and in addition,o th we're coming closer to the midterm elections and the iranian sanction are being re-imposed and there are still some geopolitical and outrht political domestic political issues lurking out there that i think will bel potentnd mines for investors and you have to watch for how things evolve, but t between now an i think the environment for stocks by way of corporatects for earnings remains very good. >> okay. let's unpack some oft. t the iranian sanctions, the possibility and that theoretically would push energy prices higher. you like energys then, right? >> we do, bill and not just because of that. ink it's an asymmetrical outcome that we projecthat the risk for oil prices to go higher as a consequence of iranian retaliatory actions and perhaps the oil production of venezuela. think oil prices remain elevated just because the oil

supply demand imbalanceng til toward supply is likely to keep prices elevated which should be profitable and therefore for particularly exploration and production companies who are t seeing f major integrateds and they should stand to benefit from the stent. >> let's take a look at your top picks and one of them is in the area. pioneer natural resources and you've just mentioned the reasons why y like that, but also you like pnc bank and microsoft. why? >> absolutely, sue. >> domestic economic are supportive for general business activity, particularly lending in the commercial and industrial space. pnc is kind of anpp tier super regional bank that benefits from some capital market activity and more principally commercial, generale banking activity which of the rise in interest rates on the short end continue to provide a cushion for the net interest margins and as for microsoft, the company' done very well-being picked up with the rally and technology stocks,

giving back here and nonetheless, as businesses continue to spend and we saw great oumbers coming of the second quarter gdp report that showed business investment up over 7% on an annualized basis, software and technology tends to be the disproportionate sbeneficiary of businesnding on productivity and so we think that's a winner. >> excellent, that's winner, mark. thank you so much. mark with janet montgomery scott. >> you're welcome. >> aheadf another employment report. another report out this morning showed so-called jobless inching higher and still clinging to a 45-year low. the number of workers filing for new applications for unemployment benefits rose by 1,000 last week and a small omincrease. ects still say this is the strongest labor market the u.s. has seen in decades. tomorrow's monthly jobs report is expected a show rise of 190,000 non-farm payrolls and for the tunemployment rat come in at 3.9%. the gaming business in las vegas remains in focus.

fsterday it was because what caesar's entertainment said about its outlook for the strip. today it was mgm's turn. the company warned of waning demand at the lasas v casinos, tighter margins and admits both earnings and reven estimates for the current quarter. the stock traded lowermost of the day. it rose a bit going into the closing bell. >> so is las vegas experiencing a bump i road or is there something else going? >> joining us tonight, dan peltier is a reporte for the travel website skifft. thanks for joining us tonight. >> thank for havinge, bill. >> vegas has changed its spot so many times over the dec the gaming mecca, a family destination for conventioneers and outright tourists. what's moving the needle for vegas aight now how healthy are things? >> what i've noticed in recent months is that convention business is really doingas onomically well year to date and even later last year. it's growing double digits and that's really what's key for las

vegas right now leisure travel in general is down9% in recent months as well as last year, but the convention business is soahang ands really what's most important. convention goers and business travelers spend more, they're more valuable and that's a great sign for vas and what's driving them right now. >> so wooe seen the stock of mgm and caesar's fall in the last couple of dots and a of volatility. are the issues they're talking specificyour opinion, to those companies and the rest of the strip and the rest of the city is pretty healthy? >> that's right. i think it' verypecific to caesar's and mgm. i mean, withcaesar's they're coming off of bankruptcy, escaping that and mgm, unfortunately had that horrific shooting last year, so i think those twoma aes and other hotel, resorts and casinos have this border and we'll see a

rebound as the year continues each for the t companies. >> sports betting. the supreme court said it's okay now. soany states a adopting it right it could be argued that that will dilute the interest in vegas as a gaming mecca. you don't agree with that, though, why? >> bill, i don't because when you think about it, where else in theorld can you g the iconic, time-tested, full experience that vegas offers?re ly nowhere. you have tribal casinos in californiag try to challenge nevada and reno and gas, but really, they don't have what vegas has. there's eve arguments. -- i've heard that the stocks and gaming still continue to flow through vegas that's where all of the knowledge is and all of the books are. vegas is still the center of the universe for gaming. >> we'll know this fall when foot. ll season gets under way >> exactly. >> dan peltier with skifft, thanks for joining us today. >> thank you. it is time to take a look a

today'upgrades and downgrades. niek was given an overweight rating in new cov at morgan stanley. nike is positioned to active wear market. the price target is $88 and the stock rose more than 1% to $78.65. tesla was upgraded to outperform from oppenheimer following its earnings rept we told you about last night. margins st cites gross for the model 3 and says that average selling prices remain stable and elevated. e price target is $385. shares soared 16% to $349.54. mining company freeport-mcmoran was upgraded to neutral outperform at bank of america merrill lynch. the analyst cited the stock's valuation and a better outlook for copper pces. the price target $17. despite the upgrade the stock closed down 1% at $15.43. wendy's was dowraded to neutral from the equity

research. the analyst cited the channel checked that its been doing and expectations for same-store sales and wendy's is scheduled to report earnings nex week. the stock fell about a fraction today to $16.65. still ahead, fees fight. why it's costing less and less to invest. ♪ ♪ ♪ ♪ cbs reported better-than-expected earnings and revenue in the second quarterhanks to growth in its streaming services and higher ad sales. the result, however, were, of course, overshadowed by the recent sexual harassment allegationsgainst ceo les moonves which, it turns out, were not addressed conference call. despite the better-than-expected

result, shares fell in extended urs trading tonight. julia boorstin joins us now from los angeles. the earnings call was much business as usual. is that what was expected? >> well, the earnings call was very much business as usual. the company's head of investor relation opened uphe call by saying that because of pending litigation there would be no comment on anything but the quarterly results because les moves had responded to the allegations that were reported in the new yorker article with a comment,any people including myself thought that he would make some sort of comment on the earnings call, but it was perhaps the surprise t myself and others it was all business as usual. >> and what did he say? how is business for cbs right now? well, cbs' earnings per share grew 6% and the revenue grew 6% and it was a hair stronger than expectations and moonves focused mostntf his comon the company's digital growth. the fact that they're growing their over the top direc to

consumer streaming services, cbs all access and showtime ott, stronger than expected. a lot of focus on how he's helped growhe company and built the company to be prepared for the digital future and again, no reference to either of those allegations o sual misconduct or the pending litigation with sherry dstone. >> julia boorstin in los angeles. thanks, jul. stronger dandelps dow dupont beat expectations and that's where we begin tonight's market focus. the chemicals producer saidce higher pand the rise in sales for feeds and insecticides helped drive its earnings. not everything in the report was good news, though. dow and dupont said higher costs and industry headwinds as a result of trade tensions would cause shares to slow any they were down 2% to $66.44. etna's decision t exit the affordable health care health insurance exchanges led to a

drop in overall cost. the sales helpatike said i exence. es in check. shares of etna were up a fraction to $187.05. gross margins came under pressure over at clorox as that company faced higher commodity costs. clort did say does not expect margins to deteriorate further. it isorecasting flat or modestly higher margins for fiscal 2019. that guidance came after the company topped profit expectations, but missed on sales. the shares climbed 6% to $142.44. kellogg also said its marginsot hit, but for a different reason. the maker of frosted flakes said that lower prices and increased spending on marketing and transportation i what hurt its results, but the company topped analyst expectations due to the gles chips and the waffles. shares ros a fraction to $69.88.

they struck a deal with alibaba. starbucks saw outperformance in the region slowy recentl and it expects this new collaboration to give the business anxt jolt. most of the growth of transactions in china's coming from our new store growth. ive, yes, we did have a neg 2% same-store sales comp last iarter, but you know, if what look at what we're doing here with alibaba and the digital flywel and enabling delivery, this is like rocket fuel for the digital flywheel in china and this will be an accelerator for our business, no doubt. >>ha starbuckss fell a fraction today to $51.68 shares of alibaba were down 1% tond$182.60. >> wireless speaker company sonos made its market debut on the nasdaq today the big one, the company priced its ipo at $15 a share andel th was its earlier target range of 17 to 19. competition is intense in that

business, but sonos said it partners with its competitors and executives say it is the strategy that i working. ? now what we're doing is riding the wave of streaming and pan door and apple music has been fantastic, and nobody thought we could put off all of the ompetitive services on one platform. >> we have amazon alexa and google a sisterant coming later this year. >> shares spiked32into $91. somes working. >> a growing number of investors are using etfs as a way to put money into the market and they're relatively easy to understand and they're cheap. as bob pisani reports they're gettin even less expensive. >> seven months into the year and etf investments have been strong and not like 2017, $178 billion flowed into the etf

business in the first seven months of the year and that's a respectable 7% increase and that's higher than last year when 280 billion came in f duri thst serve months. it was due to the hiccup in volatility that we had in february remember that? while u.s. equity continues at 53 billion, that's a respectable number, the investors haven't given up their fixed income. a large part of that, though, was high yield and that's not surprising and think about it. the primary risk in high yield is not interest rate risk. it's credit risk and with the u.s. economy so strong, credit's holding up ver well and in-flows aren't the hot topic in the etfu business. yonow what is? it's the fees and they just keep ng. many platforms don't offer commission trading under certain commissions a fidelity and vanguard, for example, but they've also beenropping. the average etf fee in the major platform has dropped 25% in a few years and it's even lower at

vanguard and now the lower cost index funds are starting to cannibalize each other and where is thi all going? before too long, we will see a zero fee etf. zero. that will be a loss leader that will sell people h value services. this is great news for consumers and it's making the consumer investing advice business a lot tougher. shares of many big names like federated, franklin and mason, they're down more than 20% this year. for "nightly business report," i'm bob pisani at the new york stock exchange. >> bob rosen blublum joins us t ta more and what he means for you and he's the director of exchange-traded funds at cfra. it's great to have you he, todd. welcome back. >> we posed the question in our meetings whether this is a race to the bottom in this particular part of the financial services industry. what do you think?

>> yeah, we're there. fidelity offering a zero fund ths will launch tomorrow big deal. the asset management industry has not wanted to break the seal and they've done so and if you're a mutual fund fan you cae get for fnd if you want other product, the fees come down sharply at fidelity the same wayor it has other firms which is great for investors. >> because there is the move anr has been a number of years now toward passive investing, indexnvesting as opposed to active management. what happens to active management now? >> well, we think they really need to differentiate emselves. one, we hope to see fees coming down for actively managed mutual funds. you really need to price yourself against a zero or near-zero benchmark that's out there and you need to justify why you're different based on the holdings inside the portfolio and what makestu your fund unique and not just based on its tracknd record a fees, but ased on its what's inside that portfolio.

>> it seems to me it's also about grabbing market share and how big the footprintty is. fide has a big footprint and vanguard has a big footprint is that what this game is ultimately about? >> yeah. so it would be great to continur to gat assets for new products. what we're reathy seeing i goal to retain existing assets on the fidelity ptform and on other brokerage platforms and to rs able to provide additional services to custo outside of that zero fee product. so fidelity has really been the first to do that. we would expect to see additional pricing coming down across the index mutual fund there's a lot of products out there that charge way too much money for investors when they can get something for a lot less. >> i'm skeptical enough to ask if i'm getting nothing am i gettg my money's worth. omething ying for somewhere. there is no free lunch. >> no free lunch, but if you want a low-cost d that holds amazon and coca-cola

as well as some small and midcap companies and you can get that for zero from fidely and vanguard and schwab in the mutual fund world and from i shares and staee s and other firms in the etf world. you can get that. you tust have decide if that's all you want. if you're in the door you have to stay in the door times. >> very true. weai todd, thank you very much. todd rosenblum with cfra research. >> coming up, when a heat wave gives you lemons. ♪ ♪ the trump administration is proposing a rollback of federal ems standard. the white house wants to freeze a rule mandating that automakers make cars more fuel efficient. the rule sets a showdown for the

state of california which wou supersede that state owe own strict emissions rules which ha been in place for a long time. >> fiat chrysler is recalling more than 1 million ram pickup trucks. thautomaker wants to fix a defect that could result in the tail gate while moving. there haven't been injuries or accidents connected to the defect. a longtime staple of the american mall has filed for bankruptcy again. brooksne, famous for its massage chairs and gadgets that we didn't know we needed, plans to close all 100 of it remaining mall stores. this is the company's second bankruptcy filing in.our yea the plan now is to keep its website up and running along with some airport outlets as it looks for a buyer. and finally tonight, a heat wave in california is causing that state's lemon harvest to finish on a sour note. a decline in supply is driving prices up, squeezing the

co rumer. aditi has the story for us from california. >> the green lemons growing on the trees at underwood family farms right now appear right on schedule for harvest next year, 'tt just a few weeks ago the trees wer as giving. >> and the hot spell hit and that's really impacted our season. >> an unforgiving heat wave here through venturaty co with temperatures as high as 120 aygrees. citrus officials it knocked down up to 15% of the region's lemon crop at the tail end of th harvest. craig underwood has been growing lemons for 50 years and says he lost about half the f was still on trees. >> fruit that was still not pickel, if it wasw it fell on the ground. if it was small it also fell on the ground. >> as lemons dropped, prices soared. he shortage when mexico, chile and argentina reported their own supply issues had driven up on

wholesale lem prices more than 60% since the beginning of june. industry watchers say prices are the highest they've seen in a decade. now customers are getting squeezed. >> this one87 was cents and it seems like a lot. >> retailers have been hiking prices or simply removing lemons from storelv s and that's left lemon lovers sour. >> i notice there aren't as many in the stores and they don't seem to be as good of bquality. >> looks can be deceiving. this one ismall and shriveled on the outside, but on the inside -- j tastest fine. >> still one major distributor sent o a twe encouraging customers to switch to lime, but that's proven to be a touchy subject. >> i'd use a lime. >> if you want a lemon buy a lemon. if you want a lime buy a lime. >> we must be adaptable. >> for the lemon purests and elief is several week away and

prices are expected to go down in september or october when the hregion's nextvest will take place. for "nightly business report," i'm aditi roy, californiae beforego, let's take a look at the look at wall street, apple hit a trillion dollar al market today. nasdaq added 95. technology strong, s&p up 1 points today. and that will it do it for us i'm sue herera. thank you very much for joining us. >> i'm bill griffith. have a wonderful evening. we'll see you ♪ ♪ >

>is is "bbc world news america." >> funding of this presentation is made possible byda the freeman foon, kovler foundation, pursuing solutions for americs neglected needs, d purepoint financial. >> how do we shape our tomorrow? it starts with a vision. we see its ial form in our mind, and then we begin to chisel. we strip away everything that stands in the way to reveal new possibilities. at purepoint financial, weave

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