this is "nightly business report" with sue herera and bill griffith. making miss. disney's earnings and revenue come in below expectations even though strong growth in several key areas were shown. what now for the widely held dow component? u-turn. tesla's elon musk says he's thinking oaking the automaker private and that sends investors on a wild ride. >> and bad bread? the major indices are closing in on all-timehs h again, but is the rally broad enough to keep the bull running? all that and much more tonight y for "nightly business report" for this tuesday august the 7th. >> already. good evening, everyone and welcome. stocks rise and inch closer to all-time highs.

we'll have more on that in just a bit, but there was big news from a pair of big names today. we'll start with disney. earnings that were off the mark. the company did come in belowev earnings andue estimates, but it also had strong growth in studio, parks and broadcast units. here are the numbers. disney earned $1.87 cents a share. that is an 8-cent miss and revenue was a little light and still $18 million for the quarter. shares initially fell sharply bd then rebounded. juliarstin has the key takeaway for investors. e> disney fell short of analyst expectations on th top and bottom line, and every vision, but consumer products with its studio division growing revenue by 20% on the strength ofge avenrs, infinity and incredibles 2. two examplesth of e success of disney's acquisition, and pixar. bob iger focusing on the next acquisition, fox saying we're more enthusiastic about the f

acquisition than ever and confident in our ability to fully leverage these assets.le the cab networks are still a weak spot. it is dropping by 5% which is a bit worse than expected. for "nightly business report" i' julia boorstin in los angeles. >> let's turn to bill snead on all ofthis. he is a longtime shareholder of disney and a big proponent of a company even though there have been questions for the years with espn and the cable com bonens which again showeds weakness time around. you sort of dismiss that as noise.>> why? ell, first of all, they're a manager of a variety of brands and so what happens, just like when you run a good stock portfolio, there are cer yin stoc own that are doing well temporarily and some that aren't doing as well and you just want to have a great majority doing well all of theve time and the done that, and remember these -- this stock

was under tremendousressure during this battle for these fox assets and people were wondering if netflix and other futuristic competitors were going to put them outf business or something. so it's, you know, they made 18% more than last year in a year that's been one of trialul and trion. >> right. >> so is wall street's reaction in the after hours when we said it dipped and then came back after bob iger did the conference call. was that an overreaction? >> well, we would - possibly, but here's how we look at it. disney, you know, is a companyt warren buffett said the biggest regret in his career was he owned it a long time ago and he sold it. so there's maybe 20 companies at literally are part of americana and literally ownhe hearts and minds of a vast majority of people in the united stes and around the world and this stock trades at a

significant discount to the othean cos, the nikes and the starbucks' and those kind of companies. the microsofts, right? so it trades at, say, a 25% discount to those all because of the fears of streaming, over tp and the netflix world putting themf outbusiness. >> i don't think they'll put them out of business, but clearly bob iger has made it clear that over the top video streaming is very important to the future of this company. they are setting itthp. 're pricing it and they're getting it ready to take on the likes ofli ne what do you think it will do for disney >> well, lifthistory tells us a little bit about this. people thought theas vcr going to mess them up and people thought cable was going toess them up. content is always king, and they have the best manufacturing process for creating brands and content and then they're also

veryar astutein hunters for underperforming brands in content and that shouldn't hange much regardless of what the technology delivery system is. >> are y -- are you, very quickly, bill, are you happy with the way they've tried to turn espn around? mr. iger says there's more to be done. >> there , but demographics play a big part in the slowdo in espn and that is i'm 60. there are more 60-year-olds than there are 45-year-olds. 45-year-old men are the bread mnd butter, there just aren't as many of t as there was ten years ago. that will pick up in another ten be s and no one wil worrying about espn. >> sleep well, bill snead wit snead capital management. thanks for joining us again tonight. >> thank you. > the other big name making news today is tesla. ceo elon musk creat quite a stir with a series of tweets saying he's, quote, considering taking tesla private at $420. musk said no decision has been made yet, b added the current

investors could hold on to their posions through special fund the $420heir shares mark. by the way, this would be the history.uyout in shares of tesla were already on the rise on the report that saudi arabia took a $2 billion heake in company, but then were haltedwi fol musk's tweet. they eventually reopened fo gowing 11%. that? >> and that better than 10% move in tesla helped spur theto nasd its sixth straight day of gains. overall stocks rose as investor stayed focused on corporate earnings and the major indices just continue to inch closer to all-time highs. the dow today up 1 points to 25,628. the nasdaq added he24, s&p tacked on eight points today. >> as of the close today, the nasdaq and the s&p are within 1% of historic the dow stands about 3.5% away, all capable of breaking through

on any givenay bob pisani takes us on a ride to the top. >> the markets are knocking on the door of historic highs once again. e s&p 500 is less than 1% from the record high. how does he get here? the market has been moving on a powerful combination and the earnings story is going strong forthe second half of the y and for the third and fourth quarter, we're still looking at gains of more than 20% for the third and fourth quarter. those are big numbers. second, a small group of wmpanies like general motors andrlpool have fallen victim to these tariff issues. the vas majority of companies continue to see very little impact from the trade wars. third, there's been a tidal wave of buybacks announced this year. the companies are flushed with cash and it's a record $750 billion of buyback that's been announced so ldfar. n sachs is expecting $1 trillion by the end of the year and that's a jump of 50% from

last year and ale alone has bought back more than $40 billion in stock this year.o there's a a market rotation under way despite the narrow rally. the market's n been entirely dominated by technology. when tech falters traders buy other factors and we've seen defensiv value like healthcare and banks and especially consumer staplesn that have b strong in the last month. finally, the u.s. continues to show signs of strength in its economy and the gdp growth isin g to be well over 3% for the rest of 2018. so the big question now is what will it take to get the s&p 500 over the finish line? we're really close. for "nightly business report," i'm bob pisani at the new york stock exchange. >> and the qn surrounding the market any time new highs are that close. is there enough support to keep the rally going? mike santoli takes a look. >> the major stock indexes are poised to return to record highs lasting more than six months ago, and one criticism of the

rally remains popular. is this true? or is the climb broad enough to support further upside to new record highs? there is some truth to the argument that the largest tech ock such as apple, amazon, alphabet and netflix has driven much of the market's gain. roughly half of the increase of the&p 500 index has valued this grier comes from those four stocks alone and the technology sector as a wle is up more than 16% compared to the s&p 500's 7% rise, but it's not true that those winners can explored pervasive weakness. majority of the stock are all down for the yore and each of the 500 stock has the same influence is up norly 5% for 2018. >> more than twice asany large stocks are up more than 28%, and it has to advance some 10%. while investors have become more

elective than in last year's inclusive surge for the fast-growing technology giant, it is not clear that the mart is skewed toward a small handful of winners at the expense of the majorityckf stos. the reason investors do focus closely on the breakdown of market breadth is that major market pea are often preceded by an extreme narrowing of the market holding up the indexes as the average stock suffers. with the bull market that began in 2009 set to become the longest on record it makes sense to focus o these patterns and so far, at least, the rally seems just broad enough to fend off the bears. for "nightly business report," i'm meek santoli. >> so what will it take tothet market to the next level? scott kuby, chief investment offir at the carson group joins us now to talk about that, and i want to pick up on what mike kind of mentioned right at the end and that's the broadening out of the market becauseou also think that that's important. >> yeah. we've seen really great

leadership in a small number of stocks and i don't think -- it may get us to n highs and it won't get us a strong return over the rest of the year and we think we need a bader participation which has lagged growth stocks by a wide margiwe aw that in july where value stocks outperformed growth stocks by about a percent depending on the index you use and that's a positive sign goi into the second half. >> assuming we are in the late portion of the cycle here for this market. the value is the place where people often loond you're telling us to look for this particular value etf tonight, ght? >> yeah. one of the etfs we really like is theha is core value etf and the ticker is iusd and there are a number of etfs outd there the value stocks with cheap relative to growth on a valuation basis, but also some of the sector allocations towarc fils and energy look to us to be really attractive in the we think stage and

the sectors will outperform in the second half of the year and in 2019. >> you also are dabbling in the energy sector national oil well and the ticker symbol is nov and you would also be looking at that. >> yeah. that's an interesting story and tional oil well i the supplier to lot of the oil well manufacturers and while we've seen a sustained rally in oil and it's caused manufacturers to buian more well hopefully order more equipment and as the supplier to them, that lateycle stage is really very positive for them and they also supply a lot to offshore drillers and tt's become much more competitive and we've seen the overall shale producti and we've run into troubles allowing oil prices to stay long for a long time. >> quickly, scott, you talk about the financials and if are in a late cycle and usually inflation will start to pick up and you'r looking at a tips spdr here, as well, right? >> yeah. i think this has had great risk

reduction characteristics for two risks that faced the market. first, if the econo continues to stay strong, we have the risk of inflation picking up quite a bit, and so having inflation protection makes a lot. of sen the other is if we have the tariffs goes through and that only raises ccesumer p we may be in a situation where great interest rates may stay about the same and the overall real rates would fall and that would beos especiallyive for tips and that's one of the reasons why we like them as a low-risk portion in your portfolio. >> scott, thank you very much. scott kuby is with the carson group. bi? >> sewhere, job openings in the u.s.ea hovered record highs in june and labor demand and they were unchanged in june at 6.7 million. the all-time high was 6.8 million in april and the downside, the hiring rate slipped slightly. >> last week's employment repor7 showed00 jobs created in july and you can tack those on

to the milons that were created over the past decade ani under two pnts and one a democrat and both take credit for the number of jobs created and exactly who or what is actually responsible? steve liesman takes a look. how much do presidents have to do with job creation? prident trump and president obama, sometimes not much at all. over president trump, counting the 20 months starting after trump's election november 2016. so in the prior 20 months of the obama administration from april 2015 to novembe 2016, 4.. million jobs were created or a stronger 215,000 a month. so strong job growth continue der trump that began under obama and trump has done well to keep it going defying expectation was economistsld th it wlow because of a lack of workers. 400,000 manufacturing jobs have been added under trump compared to just 21,000 for the 20 months

under obama. that's a sign t's preside focus on manufacturing might be bearing some fruit, but it's also mining an logging jobs which have grown by nearly 90,000 under trump, but fell by almost200,000 under obama. this could be the result of policy to deregate the industry ands economiy spurring production now versus oil pr oes, underma and there are some places where the trend underbama continued with trump. along with professional and services and along with indication and health d care. so't have anything to do with presidents, more jobs were created under obama than trump and the big part of that difference local and state hiring over whi presidents have little control and there are positive trends in the job market all of whi most presidents will entirely take credit for and theyil be as they've always been, just

partially rid. for "nightly business report," i'm steve liesman. >> time to take a look at upgrades and downgrades. we begin with argus, cutting its rating o cbs from buy to hold. the analysts noting significant risk to the suaabout s allegati if moonves were to be fired the fight with op its the redstone family to merge cbs tth via com and argus believes if they we merge it would be a negative for shareholders. ares of cbs closed at 53.22, up a fraction today. seaworld w upgraded at mcquarry from underweight to hold following t mpany's strong earnings report. mcquarry said that seaworld's management is executing well and attendancerowth in the first half of the year was impressive. the price target was raised from $10 to $26 and today's seaworld shares closed at $25.58, up arly 4%. wynn resorts was cut in

gus from buy to hold o concerns of gaming revenue growth in macao and it also lowered its earnings outlook for th this year and next when shares climbed just a fractio to 123.29. and merrill lynch lowered its rating from zillow from buy to neutral citing concerns over the business model shift over the purchase of mortgage lenders of america. the analysts say that could hurt zillow's profits and it couldwe lor from 60 to 70. it closed down 49.40 down 16%. coming up, trying to contain what has rncome cali's largest wildfire ever. ♪ ♪ i firefighters california continue to battle what has

turned into that state's largest fire in i history. eight major blazes are ravaging california's ldscape and have caused seven deaths and thousands of evacuations. aditi r joins us tonight fromfo ukaya, caia. >> that's right, we are at the staging area for theno mendo complex fire. it is, as you mentioned, the largest wildfire in californist y, nearly the size of the city of los angeles and it is growing at unprecedented rate. it's combined of two fires, tri ver fire and the ranch fire and it is thee bigger of wo and it is more than 240,000 acres and just more than 20% contained. 11,300 structures are reatened. 75 homes and businesses destroyed and 13,000 people have been ordered to evacuate. an additional 8,000 have been advised to do so. fire officials tell us the weather conditions combined with

the remote location of the flames make it an especially tough fire fight. >> it's been a challen for us to get our crews in there because it's in a mountain range and a ridgetop, and so we're still currently trying to get a good,ive containment line in those areas. >> there's nearly 4,000 firefighters here on scene and they have dped more than 100 million gallons of fire retard apartment, sue, a massive show of manpower and resources. >> indeed. thank you souc mh. aditi roy tonight. bill? >> profitsscisappointed. ery communications and that is where we begin tonight's market focus. the entertainment giant said restructuring costs tied to its recent acquisition of scriptsk netw caused it to decline at a faster than expected clip and revenu was a beat helped by higher sales in the company's international networks and sharesow closed 1% to $55.25.

>>airy producer dean foods did report a loss and did see sales inch ahead of expectation and it slashed earnings outlookor the whole year citing inflation pressures and growing competition from private labels and shares plunged by 15% to $8.04. more bad news from papa's jo after the closing bell, the lined acrossales d the u.s. stores causing earnings to come up short. papa john'sees more pain ahead and it cut its outlook for the full year. the founder recently stepped down after apologizing for using a racial slur during the conference call. shares fell in the after hours and finished the regular down 3% to $41.07. it reported a decline on the number of active daily users and despite usinghe estimate, social media company beat expectations which it said was helped by strong performance in

its ad business and saudi prince alwaleed bin talal saidbo he ht a 2% stake in the company. shares nationally jumped in the extendednession and t fell back. they ended the regular day up 13.12.percent to well, things were slowly getting become to normal today after beijing financial district was locked down amidpr ests. the catalyst was a meltdown ins chpeer to peer lending market. euni eunice jungs ere to shed light on the growing crisis. >> it was business as usual in beijing's financial district today afteryesterday's police crackdown oner prote organizers say thousands of people g thered outsidehe banking regulator's office. hundreds of police stopped the demonstration. the protesters were angry about money they lost in appear to peer lendingre industry. in china it is very difficult for ordinary people it get loans from mainstream banks so the whole industry of peer to

peer lending has emerged where investors who have money to lend areed connecto people who need capital to start businesses or just to buy something. this g industry haswn quickly over the past few years thanks to the high returns. about 8% to 12%pa cd to less than 3% at most traditional bank, but because of title regulatory, some of the lenders have startednao fail. in c public protests aren't common, but it is common for investors who lose moneyo expect t government to bail them out and that is what the protesterski were s yesterday. the troubles are far from over. they're concerned that the t p won't be in the success are sector. one router manufacturer and one nvenience store chain reported financials associated with p to p investment and thatould pose a headache for beijing which is struggling have a rising debt and the risk associated with it.

coming up, a $54 billion merger faces resistance from within. ♪ ♪ cigna's proposed $54 billion deal to buy expresscrts is running into resistance from its highest profile investor. billionaire activist investor carl icahn wrote a letter to buy the pharmacy benefitsanager. cigna responded by saying that mr. icahn's view does not represent those ofgn s other shareholders. bertha coombs has been following lee drama for us. carl icahn c cigna's megade megadeal a $60 billion folly. the activist investor when has taken a stake in cigna is urging

others to vote against the deale arguing that insurers paying a 50% premium for express scripts at a time when the pharmacy management business model is under siege from regulators to the secretary o health and others who have been critic of confidential rebate agreements which allow the pbms to secure discounts from drugmakers. icuen also a that amazon's entrance into the pharmacy business recently acquiring pill pa will also dermine the deal. in his letter icahn warns purchasing express scripts will be one of the worst blunders in corporate history, up there with the time warner-aol fiasco and general ectric valued destruction. icahn believed cigna would be better off building its own pharmacy unit and returning cash to customers. does she argue said it would be

better for cigna to build a pharmacy with enough scale and integrating benefits is what will help insure and pbm defend on rebates and against new entrants like azon who will only have one piece of the puzzle for now. in response to icahn, a spokesman for express scripts said we believe that we are well positioned for growth and remain confident in the deal, noting that they raised their guidance in t recent earnings report. cigna declined to comment on the icahn letter and the ceo c expressedfident the deal would get done on last week's earnings conference call. icahn also suggested that the only reason who has reason to support the deal ails own express scripts. he is the largest stake hder in both firms and he's declined to comment on the letter. the sharehold vote is scheduled for august 24th. shareholder advisory services

are likely to weigh in on the vote later this week.in for "nightly bs report," i'm bertha coombs. >> before we go,a here i look at the final numbers for wall street. the dow was a big winner,cl bing 126 points to 25,628. the nasdaq rose 23. the s&p 500 gained 8. and that does it for us tonight. herera. thanks for watching and happy birthday. >> oh, thank you very much. yes, i'measuring my age now in ce bius. that wou 16. happy sweet 16. i'm bill griffith. have a great evening. ro'll see you tom ♪ ♪ >> this is bbc world news

america. funding of this presentation is made possible by the freeman foundation. ticovert foun. iopursuing sol for america's neglected needs. financialint >> how do we shape our tomorro it startwith a vision. we see t minds and we begin to chisel.

wetr