♪ ♪ this is "nightly business report" with sue herera and bill griffith. times of nervousness. stocks fell today on concerns that trade tensions and trouble in emerging markets could slow the global economy. back in style, macy's trounces expectations and says sales are looking up this year, but e that wasnugh for investors. door to door. when g drivers don'tto the dealer to fix a deadly defect, honda takes the dealer to you.th e stories and more tonight on "nightly business report" for wednesday, august the 15th. >> good evening, everyone and welcome. a wild wednesday on wall street. stocks fell broadly as trade tensions persist and investors

grow afrngz about a potential slowdown in global growth, it shows issues that have bee simmering in the market for months now have not gone away. the dow jones industrial average fell 137 pois to 25,162. it had been down more than 300 points midday. the nasdaq was off 96 and the s&p 500 was down 21. bob pisani takes a look at the major issues facing the market. stocks posted their biggest one-day drop since late june. what's going on here? let's call it a double whammy. first there's ccerns that there's a minor crisis in turkey could spread to other countries. at its part, it was a country with a lot of debt and much of it was denominated in dollars and it's keepingnterest rates way too low to continue to stoke growth. the second issue is slower global growth in general and the chinese stocks are 20% behind the highs they hit and it's due to concerns about a slower

economy over there in general. toy investor were spooked at the open when they missed earnings expectations and reported its first net profit decline in a decade. chinese tech companies aren't expected to see profit decline. that doesn't happen and much of it is due to a clampdown in games sales 40% of the revenue sales. they all closed lower today. alibaba had its worst trading day since 2016. the combined contagion fears with slower growth and then throw in a strong dollar. that's a recipe for a sell-off innd commodities commodity stocks and oil names and eog and apache and the metals companies like alcoand freeport mcmorran were all down i'm bob pisani at the new york stock exchange. >> as bob mentioned, turkey's currency crisis and tensions with the u.s. continued to influencehe market and in fact, today, it was turkey's turn to impose heavy tariffs on u.s. goods.

kayla tausche has those details for us. >> turkey is doubling down on the trade dispute with sshington. itatest salvo, doubling tariffs on imports of u.s. products including cars, alcohol, tobacco, cosmetics, ri and coa turkey says it's responding to a deliberate attack by the u.s. with tariffs on turkish steel raised 50% as of monday. earlier this week, turkish president erdogan said that was an e act ofnomic war. the tensions have dropped a steep drop in ther lira o the last week. white house press secretary sarah sanders says that's not the fault of the u.s. >> turkey's economic problems, ong-term a part of a trend, and something of its own making and not the result of any actiats the united has taken. >> president trump said tariffs wo tweeting our country was built on tariffs and tariffs are ing to great, new trade deals and talks are ongoing ded no new t deals have been ratified and the chamber of

commerce agree tariffs have helped and they threaten both country's economic interts and lled on the two governments to address their differences through dialogue rather than the unilateral application of tensions and boycotts and the white house says sanctions may be relaxed, and says tariffsn metals won't be rolled back because of national security concerns. for "nightly business report," i'm kayla tausche in washington. >> let's turn now to mark pulie kets and whathe m he's seen ahead for stocks and he's senior equity strategistt bank of america merrill lynch. it's nice to have you here. >> thanks for having me. >> tell me what your reaction is to not only what has happened today in the market, but the past couple of days. is this decisive turning point in the bull market? or do you think it's a bump in the road? >> sure. i think this is an amalgamation

of what you've seen. every major economy has started to see a big pickup in growths and that reflected in equity markets around the world with very powerful returns across the world. this year, the sto haseen a little bit different. you started seeing pockets of weakss around the world while u.s. growth has been accelerating and on top ofhat concerns around trade tensions and the stronger dollar. in my mind, that explains why the u.s. stock market has been continuing to accelerate and has been outperforming other markets around the world this year. >> you have to admit there are signs of wear and tear in our own market. this week we had retailers reporting, home depot, a stell report on monday and macy's, both of those stocks being hit rather hard by wall street and there was an analyst suggestion that that sig will nahs that there was a peak in a very important part o our economy right now. what do you think? >> sure. what i think isuite interesting is we had stellar results in the first quarter of

this year. 20% year-over-year grow and we saw 8% revenue growth and thens sus on wall street thought that would be the peak of growth and what we've seen thisuarter so far is we've seen an acceleration of growth to 25% on earnings growth. we've seen revenue growth at 10%. so it's not all tax reform. we're seeing top line gwth and that to me comes as a big surprise that every consensus stock that we've seen a deceleration, and on average it's been 4%te bthan consensus expectations and we're seeing something that's quite interesting is we haven't seen stocks that have beat on expectations and almost two years now and you're starting to see stocks being rewarded again. so i think rolling up your sleeves and doing your homework is starting to pay off again. on top of that, i would say the management guidance that we've en has been fairly optimistic, as well. you're not seeing trade yet and

you're seeing an absolfe explosion capital expenditures. they're which to me is a sign that corp the ras a corporates are optimist being. >> mark pullierf bankf america merrill lynch. bill? >> the treasury department is inureasing economic pre north korea now adding new sanctions on companies likech a and russia for violating trade rtrictions with pyongyang and steve mnuchin said there will be consequences for violating sanctions until there is full, verified denuclearization of north korea. >> the white house is preparing to expand its buy america rules to include government infrastructure projects. according to cnbc, the newiv exec order is nearing completion. the added rules will apply to roadways and broadband. federal agencies have raised concerns aut the cost and the legality related to that

program. or> new r on the economy today showed that the second quarter productivity was the strongest in three years. according the labor department the measure of hourly output per worker rose at a 2.9% annualized rate. labor costs increased according to modest wag inflation. a separate report showed manufacturing activity in the new york area remained rust. the august reading rose to a 10-montherhigh, as a maf fact, and industrial production edged up in july, but those gains were capped by weakness in the mining and utili sectors. >> a separate report showed sentimentmong homebuilders fell to its lowest point in almost a year. according to the national association of homebuilders, affordability is becoming a bigger concern. separately, mortgage refinancing has t dropped to lowest level since 2000 as the interest rates rise. retail sales rose .5% in july thanks to strong high hiring and riw unemployment.

>> and thats us to macy's which i mentioned earlier reported strong quarterly across the board earnings this morning and the retailer's results topped earnings and revenue expectations for the year. however, the stock sold offf because profit taking after a run-up and in part over concerns about sales growth. courtney reagan digs deeper into macy's results >> macy's surprised investors in the second quarter and the biggest surprise coming from the comparable sales which were expect to drop, but instead the department store posted a gain, marking three straight arters ofrowth. the retailer said the rest of the year looks good which points to the potential for a strong fourth quarter. itsost important of the year and some investors wonder if the strength willontinue. >> comparisons get tougher from here. i think there are a rot of investors who are locking in those gains worrying about what will happen in the third and fourth quarters when that'

really what started a year ago. >> the macy's ceo said the strategy and a strong economy drove sales which improved through the quarter. the retailer's online sales logged the 36th straight quarter of double-digit growth and gwinnett said he was most he excited about progress in the stores where there were more transactions and subsequent foot traffic. with malls seeing fewer shoppers than in the past, mayesy's h been reworking the store strategy to fewer discounts and fewer fashion, coupled with a stronger consmer and i working to sell more at full price. the department store has been adng outlet areas to some of its stores balledkstage which macy's said is increasing the amount of time spent in the store and the amount of money spent at checkout. still, amazon is becoming a bigger competitor grabbing more and more apparel sales and on itrack to be thebe the online growing seller. >> and they're still at risk to

go to amazon and we will continue to have that playut. >> tha means expectations are getting higher and the holiday season is just arod the corner. for "nightly business report," i'm out m reagan. >> time to take a look at some of today's upgrades and nvidia got a double upgrade from wells fargo, lifting it from outperform. it reflects the long-term positionn gaming, data centers and autonomous vehicles. the price target is $315. nvidia reports earnings tomorrow. nevertheless, the stock fell 1% to 259.08. chipotle was upgraded to overweht from equal weight at morgan stanley. chipotle's turnaround is working and sees the stock surging 20%. the price target is $600. shares close tup 6% 525.89. buyhasbro was upgraded to from neutral with mkm partners.

investors should anticipate a nkterial recovery in the next two years t to the company's toy line expansion. the price target now $115. that stock was up a fraction today to 98.71. western digital was downgraded market perform from outperform at cowen. the analyst cited competitive pricing in the industry and a cost structure that was not as efficient as those of its rivals. price target $70. that stock fell more than 1% to >> prices are on the rise. so what can you do to protect your portfolio from inflation? ♪ome possible aners coming up. ♪ ♪

senator elizabeth warren wants to see companies and ceos more accountable tomployees and during an interview with mad money's jim cramer, the senator said she's introduced legislation which r woulduire corporations with more than $1 enue to in annual r obtain a federal charter. that charter would then obligate all directors to consider the interests of all skeholders. >> we have seen, over the past 25 year extraction of about $7 rillion of investment in america's companies. that's not how we build a long-term future. so i have asa pro to deal with, and my proposal says let's get a little accountable under the system. >> it includes proposals thatng include put employees on the board of directors, as well. >> a cryptocurre hy investor sued at&t for more than $200

llion. michael turpin, alleges fraud and gross negligenceco in ection with the theft of digital currency tokens from his personal cell phone account valued at $24 million. in the lawsuit he said at&t was his service provider and that the company's employees actively operate with hackers. >> at&t disputes the allegations. >> meanwhile, the new ceo of verizon says its digital media unit called oath is not for sale. during a cnbc interview hans called oath an important piece of verizon strategy. he also emphasized the top priority of the wireless is building out a faster 5g network. >> we are the head of the gam verizon is first, and we are actually doing this on their proprietary software. comingglobal software is at the end of the year and you start rolling them out and then you need devices, cheap sets and

ou need to be a little bit the standing and it will take some time. onhe took over as ceo just august 1st. shares of the dow component rose in today'sng tra session. sue? >> fellow dow component cisco reported solid quarterly results in in the cybersecurity business. it issued an upbeat outlook. cents a e earns 70 share and that's better than expectations and revenue rose 6% to $12.8 billion. investors liked what they saw sending the stock higher i initial after-hours trading. josh lipton has the one key keaway from cisco's quarter. >> infrastructure platforms, revenue and cisco's latest quarter jumped 7% to $7.44 billion and that was better than expected.r pi jaffray's jim fish said that number was critical and referred to cisco'sore business and related to switching and routing and fish

emphasized the product backlog of 6 billion, a big acceleration, nearly 40% from last year, he says. for "nightly business report," i'm josh lipton, sfrancisco. a major spirits cpany is betting big on cannabis-infused drinks and that's where we begin tonight's market focus. constellation brands is investing $4 billion in canopy growth impea grow growth, the biggest wager to date. constellation, which owns corona and other beer and wine brands has been dealing with a recent decline i beer consumption. shares fell 6% today to 208.27. meanwhile, the hedge fund owned by the ceo of sears is offering to buy the kenmore appliance brand from the retair for $400 million. kenmore is considered one of the cash-strapped departmenst e's last remaining valuable brands and it's no secret that sears has struggled for years with the

shrinking sales and it's been forced to sell off other popular aiands just to cash. the stock which is now a small cap fell 13% today to $1.59. fd it was a disappointing quarter performance food group which missed earnings and revenue expectations and provided a downbeat outlook. uee food distribution blamed rising labor andcosts and executives say they do not expect those fuel expenses to go more an 10% soon. today to $33.60. warren bnfett loaded up shares of apple and goldman sachs in the second quarter. according to regulatory filings released late yesterday, buffett's berkshire hathaway e ded man 12 million shares of the iphone ker, making berkshire apple's biggest shareholders. it added more than 2 million shares to its holdings and the positions are as of the end of june. shares of apple rose today to

210.24. goldman fell to 229.25. the sec has reportedly served tesla with aubpoena just days after ceo elon musk tweeted that he was considering taking the company private and that financing wasecured. the subpoena was first reported by "the new york times," shares dropped 2.5% to $338.69. kleenex and huggies are about to get more expensive. kimberly-clark is raising prices among most of its products to combattyigher commo costs. it's risen 60%, and that'sne according to estimate and consumers will start to see the higher prices in the first quarter of this year and the first quarter of next. shares popped to $116.46. >> and the move by kimberly-clark follows price increases by other consumer companies like procter & gamble. those costsre intensifying because of the ongoing trade

tensions with canada and with ina. so if rising prices continue to be a part of a bigger trend. how do you inflation protect your portfolio. joining with us some ideas tonight. ken mahoney, the president of mahoney asset management. >> as inflation goes up, rates go up and important for bond holdings and you advocate oating rate funds. the american beacon floated away. >> so it keeps adjusting its arates the portfolio manager keeps up with that. so you don't have the basic 3% and losing 4% or 5% and we've seen the last few years, and w thatn the best floating rate funds. >> do you have decent income and it's a 5% dividend and in fact, if inflation is increasing and commodity prices and we heard procter & gamble passing on to their prices a company that will be higher rates for bondholders that are lookingme r

in and we'll start looking for floating rates in the portfolio. >> you also say some of the big banks you might want to loo at and you point out j.p. morgan, but as interest rates go up, the dinks make more money. jamie n, the ceo and the concerned j.p. morgan has 2% and it's the earnings per share and jamie dimon, the ceo of j.p. morgan, and invest and that to me is j.p. morgan. >> health care is a classic, defensive play. >> yes. >> in most cases and you picked unitedheale'care. >> and are all weather type of stocksnd whether we go through a session which i hope is not in the cards, that's a ayn stock. it 2% dividend and also has great management and they could al, hint, hint, raise the earnings per share versus what they're paying out to shareholders. >> that sector, though, nafht r night we seem to be doing stories how health care isal changing andng about the

pharmacy benefit managers or the insurance companies.re yo not worried about investing in that particular sector right now or is the united sector unique? >> if you look at the report, and they guided higher. so the companies le j.p. morgan i just mentioned or any of those types of companies, see what they just reported and what they're saying and both are positive. >> ken mahoney, always good see you. thanks for joining us tonight. >> coming up, honda's new pit crew. >> why are automakers like honda going door to door f tohgs recalled vehicles? i'm phil lebeau in miami and i'll have th coming inon "nightly business report." ♪ ♪ ♪

and here's a look at what to watch for tomorrow. walmart will report earnings. and jc penney and nordstrom also report their quarterly results and housing starts are out. it is a keyeport because home construction has not been increasing as much as the mart needs. that's what to watch for on thursday. uber is still a long way from turning a profit each as its quarterly loss narrows. the ride hailing company lost $880 million in the second quarter and renueose as the company pulled back on promotions. uber has plans to go public next year and it's had toeal with corporate scandals and it faces pushback fromie clike new york. believe it or not, it's been first a decade since t recall for potentially deadly air bags was issued and today

llions of those vehicles remain on the road. that has the federal govnment warning owners of countless models to check if they're driving a recalled car that has notfieen d, but one automaker is doing something different. it's going door to door, hunting for those owners in order to replace tho faulty parts. phil lebeau is in miami tonight. >> garcia is one of the lucky ones. honda going door to door in miami, with a civic had a defective and potentially deadly defect. >> i had the vehicle aiary ago and i wasdt aware that it recall on it. i came to find out when the young lady knocked on my door and notified me that the car had a recall. >> she's not alone. millionsre unaware their car is under recall despite high-profile stories ofin drive

killed byroec mi exploding air bags that s metal and nearly every automaker recalling and fixing millions of vehicle, chsler, honda, ford, toyota and other automakers still have millions mor need new air bags so some like honda are scanning license plates r plates around the country to see if the vehicle c r bealled and repaired. >> these are extraordinary measures done by companies that are desperate because they know it's dropped for many years and this problem should have been resolved more than a decade ago. >> we did recall since we gotrm inion from them. so i think we acted appropriately andn hindsight, we wish we had more and we wish information at the time to act earlier. >> part of the problem is of these vehicles have been sold numerous times. automakers often lack up-to-date information on the vehicle's exact location. and other times, owners ignore a

recall notice they get in the mail. >> it sounds that simple, but it really isn't because especially if you get a lot. i wish you could see my mailbox. you get a lot of junkail so it's ease toe ignore the big, flashy cards that looks like it's junk mail. >> after a quick check by honda. eric latrell's 2004 civic is clear, good news, but scores of other vehicles with potentially deadly air bags remain on the road. phil lebeau, "nightly business report," miami, florida. >> finally tonight, the highest-paying jobs in america. glass door, a job in recruiting website has analyzed salary reports submitted by employees and median and base salaries from across the country. most of the ghest-paid jobs are in the health care industry. fgdzs topped the list with a salary of $109,000. pharmacy managers at $146,000 utand rounding the top three,

pharmacists with a median base,0 salary of $1. before we go, here's a look at the final numbers for wall. the dow fell dlaen 7 point, but it had been down more than ou30 midday. the nasdaq was off 96 and the s&p 500 was down 21. and tort will do it us tonight on "nightly business report." i'm sue herera. thanks for joining us >> i'm bill griffith. have a great evening. we'll see you tomorrow. ♪ ♪

>> this is "bbc world news america. >> funding of this presentation is made possible by the freeman foundation, kovler foundation, pursuing solutions for america's neglected needs,d repoint financial. >> how do we shape our tomorrow? it starts with a vision.ts we see ideal form in our we see its ideal form in our mind, and then we begin to

chisel. we strip away everything that