♪ ♪ this is "nightly biness report" with bill griffith and sue herera. stocks surged. the dow has its biggest one-day gain since april thanks to upbeat earnings and renewed trade talks between the u.s. and china. >> walmart delivers. amazon is put on notice as the world's largest retailer reports a surge in digital sales and posts its best revenue growth in more than a decade. 401(k) millionaires. ther are a record number of them, but what happens if the market turns? those stories and more on "nightly business report" for thursday, august 16th. and we do bid you good evening, everybody, and welcome. what a differee a day makes. stocks rallied across the board today on word that the u.s. and a will restart their trade talks later this month, adding

to the upbeat mood, those solid results from dow components walmart this morning and from cisco which we told last night. you mix it all together and you have a recipe for a big rally today. theus dow iials advanced 396 points just off their highs of the day to 25,958 and the nasdaq gained 32 and the s&p addedb 22. pisani has more on today's big gains. >>urkey took a backseat today as traders focused on chinand on trade. the dow surged nearly 400 points du it was the best gain since april and believe it or not, it was one of i worst days yesterday. s&p futures rose overnight into thursday morning on headlines that china and the unite rstates mightew trade talks. national economic council director larry kudlow later confirmed thesein headl and the stocks saw an additional boost in the middle of the day when it wasrm ced that a chinese delegation was planning to head to washington next week.

>> the markets had a very stronc on to the headlines indicate that concerns over china slowing down is a big ver of stocks and anything that will lessen those concerns like a removal of trade tensions will move stocks up. boeing and tcaterpillar, companies who get a large share of revenues from outside the united statest saw a b during the trading day and boeing also benefitted from an upgrade from broker ubs. other dowrs win include cisco and walmart, both were higher on excellent earning results. walmart had its best trading day sincer novem of 2017 nearly a year ago. >> bob joins us now from the new york stock exchange. nice tie, by theay. we started the week out with concerns about turkey and the turkish financi crisis and the market sold off and then there were concerns about retailers, macy's and home depot even though they had good numbers and a sell-off and today, a rally with talk of grade with china. this market has a very short-term mery, doesn't it?

>> it does, but there is an oval theme here and that is that the mark clearly moves the most whenever you're dealing with strong dollar issues and when you're dealing with trade and you're dealing with weakness in ths, global mark particularly weakness in china. so look at monday, down esday, y up day, wednesday, down day. what ties these days together is the market tends to be down on days when there are global growth concerns and strong dollar issues and tends to rise when the global growth concerns lessen and that's exactly what happened today. the whole turkey issue is definitely, you mentioned that and it's definitely out there. so far wit othe exception a few little sectors in the u.s. economy it's mostly been anna internat event. the china slowing stories is a big story and anything that ameliorates china's slowing like prospects for a trade agreement will lift the markets like today. >> bob pisani at the new york stock exchangor >> thanks staying late for us, bob. >> always good to be with you,

ll. >> as we just mentioned, the market got a lift on those hopes with a trade truce between the u.s. and china. th follows a standoff between the two countries that saw riffs levied on billions of todays worth of goods and the white house gave us a glimpse into the strategy for those stocks. kayla tausche picks up the story from washington. >> more than two months since their last face to face, economic officials from beijing head to washington next week with more tariffs on tap as soon as thursday unless talks reach anotherruce. china's vice ministers of commerce and finance accepting a nvu.s.ation to meet with the undersecretary of the treasury, signaling lower-level talks than the two nations held before. white house economic adviser larry s kudlowgested the u.s. would havehe upper hand. >> business investment is collapsing in china according to the numbers.du industrial p has fallen and now it's plateauing at a low level. people are selling the currency. there may somebody

and mostly, i think investors are moving out of china because they don't like the economy and they're coming to the usa because they like our economy. i'm not a china expert, although i'm bonin up as fast as i can. i would just say right now their economy looks terrible. >> it is unclear what prompted the u.s. to re-engage china. secretarph ste mnuchin said china would need to make a seriousroposal of its own. >> i've made perfectly clear that any time china is to seriously negotiate and we're talking about a commitment to reduce the bilateral trade deficit as well as the dea with technology issues forced venture, and we're available any time. >> part of the white house' strategy, notch deals with allies and have them join the fiint aga china's unfair trade practices and officials are in mexico hammeng out nafta details. >> and they keep engaging and try to do things and we cannot

guarantee. >> after broad deal with the chief in july, they would hold detailed talks on monday. >> they'vear provided at boost, and no threat as formidable against china and it would drag it out past the midterm elections and they're ng hoif not a deal, at least a temporary delay. for "nightly businessreport," i'm kayla tausche in washington. we mentioned boeing's strong performance today and the best performer among the dow components was walmart and the world's largest retailer saw sales rise sharply as consumers spent more on just about everything. walmart upped its profit and revenue outlook and shares soared more than 9%. courtney reagan takes a look now at what's driving walmart's growth. >> walrt's multibillion-dollar, multi-year investments into the store's website and employees is paying off. the big box retailer reporting

another strong quarter, marking the 16th straight quarter of u.s. comparable sales gains and 15th q straightrter of increasing store traffic. u.s. comparable sales are the strongest in a decade thanks to the big rise in grocery sales. u.s. e-commerce sales also grew 40%, but the costfunning the business is high. walmart says this year's losses will be hire thgher than last h >> spend a lot of money to reinvent this business and to reinvent the way the customer spends their e-commerce landscape and walmart isng increa solidifying their position in the industry and 40% growth is fantastic and it's below what we saw late last year and against difficult comparisons. >> walmart's u.s. ceo says expanded online grocery options like order online and pick up in store and delivery is accou troising new shoppers and increasing the receipts for rea shoppers. >> the real story at bricks plus

clicks, the seismic shift in retail using physicalssets to their advantage. in terms of curbside pickup, the delivery to 40% of the country in grocery. >> while investors cheered today's result, there are some cost headwinds that walmart would have to be the rest of the year. higher fuel prices are increalng the ret are's transportation costs and suppliers like toilet paper and paper towelmaker kimberly-clark are raising their prices to offset higher raw material co s, but walmart says it will continue to work with its suppsers to keep priow for shoppers, part of its plan to keep returns high for investo b. for "nightiness report," i'm courtney reagan. cisco was also a top gainer today fnglowing ear which we told you about last night. today cisco's ceo said the company was benefitting from innovation and t growing global economy. >> it's a combination of two things i said ohe call yesterday when i was asked about

this. we clearly have created a great deal of innovation and momentum with the solutions that our customers are looking for and at the same time we have the benefit o what we'een from a very strong economy around the world. >> the stockaw gains today of nearly 3%. time to take a a lookt some of today's upgrades and downgrades, and we begin tonight with lulumon which was upgraded to buy from hold at argus. the analyst cites strong brand recognition and abopportunity to expand overseas especially in china. the price target now $150. shares rose 2% to $129.47oday. courtney mentioned kimberly-clark. they were upgraded to neutral frunderweight at morgan stanley and the analyst cited the potential for the recent price increases to take hold which we reported on yesterday. the price target $114. that stock gained 1.5% to 118.26. and breyer wasupgraded to

equal weight at morgan stanley. the alyst expects improved results and the recent sell-off n the stock makes it attractive. the price target is $23.50. the shares re 4% to 1a38. astrazen was downgraded to hold from buy at jefferies. it is now fairly valued aic the target is 39.46. the stock closed below thatt level 37.96. is the housing marke starting to favor buyers? some areas just might be showing f it. we'll tell you where coming ♪ ♪ ♪ ♪ ♪

♪ p >>sident trump is calling on the justice department to sue the makers ofpioids. duri a cabinet meeting in washington today mr. trump asked attorney general jeff s asions to bri federal lawsuit against certain companies that supply opioids to hospitals. several states already have filed similar lawsuits which the justice department has backed, but the thought is that a separate federal suit would escalate the government's efforts to combat the growing drug epidemic. separately, therump administration is also proposing that thest pharmaceutical in cut production of the six most abused opioids by 10% next year. home construction in july was significantly weaker than expected. housing starts rose .9% from the prior month, but economists were looking for growth of more than 8%. some say the myth could signal fewer homes o the market in the coming months potentially exacerbating the limited supofy homes already available for

sale. and softness in therk housi may finally be giving buyers the edge over sellers. diana olick explains. buyer's ot quite a market yet, but the tide is finally turning. home price gains are shrinking and sellers are starting to come back down to earth. o 14% all listings in june had seen a price cut and that's up from aecent low of just under 12% at the end of 2016 according to a new report from zillow. in addition, price growth is flowing in nearly half of the 35 largest metropolitanke m. rising mortgage rates combined with several years of a price jump hit affordability hard despite very strong demand especially from millennials. there is a limit to what people can pay especially with a still tight lending environment. all real estate is, of course, loo,l. in san di 20% of all listings had a price cut in june, up from 12% year ago. in seattle, which continues to be theth hottest market i

nation, 12% of all listings had a cut, the largest share in nearly four years. l.a., chicago and even new york city are also seeing jumps in the share of sellers cutting prices. cities that were not as i hot the last couple of years, however, are seeing fewer price cuts and those include san antonio, phoenix, philadelphia and houston. prices have been so strong because of a critical shortage of homes for sale. supply is increasing slightly, but not enough and thenatest read housing starts from the homebuilders was not encouraging. lir "nightly business report," i'm diana in washington. new developments this evening on tesla a its ceo elon musk. the sec is reportedlyig inveing whether mr. musk tweeted about taking the company private in an effort to hurt short sellers. phil lebeau is intohicago ght. what are the details? what are they going to be looking at? >> this is according to a rept of the wall street journal. three questions are in mind for the sec when it comes to. tes

the first one which you mention side what was elon musk's when he sent out the tweet saying funding ist secured $420. was he trying to hurt short sellers and it's one thing to be active and you want the company to go long if you're a ceo and it's another thing and it might be market manipulation if you were trying to send out a message in order to hurt a specific investor. along thosehe lines, sec also wants to know a couple of other things,one, what wa the communication between elon musk and the board of directors and was there any details about the funding secured, the possibility of going p and were any of those details shared with members of the board prior to him sending out those tweets. so those are some of theon quesand like any investigation it may broaden out and go in a different direction over time, but we're really starting to s the sec focus on this question of intent and the facts surrounding when elon musk sent out that tweet and the possibility of taking tesla private.

>> quickly, phil, they'll pit the board members against mr. musk because they'll be askingh how muchknew about the funding. >> right. >> -- since the tweet, right? >> right. the facts should be easy to fin out fairly quickly and keep in mind, bill, there is a long tweet trail from elon musk when it comes to his feelings about short sellers for the stock. >> indeed there is. phil, thank you so much. phil lebeau for us tonight in chicago. bill? elsewhere, the losses spiral for jcpenney and that's where we begin tonight's market focus. the struggling department store chain repord a wider quarterly loss and it expects to report a loss for the full year as the discount's purchase to get rid of excess inventory. remember marvin ellison left last may to run lowe's home improvemen centers. has aren't been replaced yet. of its lost a quarter

market value falling 27% to $1.76. that is an historic low. chinese intnet retailer j.d.com messed earnings andst revenueates for the second quarter even though sales rose more than 30% and that was wel below the peak growth rate of 60% registered back in 2015. e company is part owned, you may know, by tenent and walmart. shares were off more than 1% to $31.97. star board value has reportedly taken a5.8% stake in semantic.o accordinthe wall street journal," it is pushing for operational changes to improve the cybersecurity softwaremaker's profit margins. they rose 4% on the news to $19.41. the fda has approved the first generic versif the epipen. the drug is made by teva pharmaceutics and the approval comes right before the back to school season when epipen sales typically rise and amid reports

of shortages by the medicine. they did not say when the generic version might become available. shares rose 7 force $24.11. after the bell, nordstroms earnings beat second-quarter expectations. same-store sales were up 1%. earlier this yr the retailer called off its plans to go private. shares speaked more than 10% on the earnings report after finishing the regular session up 1% t 52.28. the same cannot be said for shares of nvidia which came under pressure after the close when the chipmaker beat estimates and its revenue guidance was lower than expected. that sent shares lower by 5%. they closed the rdoular session $1.64 to 257.44. >> here's some positiver news those saving for retirement. the number of 401(k) million airs is now at a record.

a new report from fidelity says 168,000 of their accounts have balances of at least seven figures, that's up more than 40% from a year earlier, a big rise, and a rising stock market gets most of the credit, think, for the nest egg milestone and more goodne , a separate report from united income shows folks already inem rett are now on average, wealthier than any previous generation. but accordi to bankrate.com, older millennials are the most stressed of any age group, more than 77%, in fact, say theyose sleep over things like money and work. so how are millennials and others who are not in the 401(k) millionaire club faring and what hippens if bull market ends? amanda dixon, analyst at bankrate.com joins us to talk about that. welcome amanda, nice to ha. you he >> thanks for having me. >> this market has been a gift fin many cases those saving for retirement.

why do you think millennialsre stressed out not just about money, but also thinks like work. millennials are so stressed because they're in a transitional stagen life and they're trying to advance in their careers and become financially stable and this is happening at a time when wages are stagnant and a lot of them are starting familiestand they ave a lot on their plates. >> it's critical when you identify that they're theer o millennials, age 29 to 37. these are young people who came of age during the financial crisis ten years ago and they rememberthat, don't they? >> absolutely. a lot of these millennials, they remember when their parents struggled financially and so a lot of them have that smindset they try to improve their own livesial >> are you finding or did your research find that they are actively investing in the stock market to either save for o retireme build up that nest egg and are they, do you think, emotionally prepared if this market turns?

>> what we've seen in our other research is surprisingly, about 41% of millennials don't have any retirement savings at all and when it comes tog, invest a lot of millennials choose cash. so that could be problematic for them moving forward in the future. >> so i guess the traditional advice that boomers got when we were thaage still stands today to try and save as much as you can and keep it invested for the long term, i guess. that's still the caseight? >> absolutely. ressively to start a saving for retirement especially if you want to retire at an earlier age and it doesn't hurt as soon as possible even if you have student debt. >> are you finding or did youra re find because wages have been starting to edge up a little bit that they are able to save a little bit extra or is inflyion eating a at that? >> right. what we're seeings that wages

are stagnant and people are struggling to save money. >> amanda, thank you so much fon g us tonight. >> thanks for having me. >> amanda dixon is with bankrate.com. the world today has been mourning the passing of the queen ofha soul. ar franklin was truly a legend in the music b her theme was global and she paved the way for a number of other female artists. she sold more than 75 million records worldwide during her career. she won 18 ammys. she was the first woman inducted into the rock 'n' roll hal of fa and she had 112 singles land on the billboard charts, that's the most of any female singer. according to some reports she was worth $60 million. she was also known to donate generously to organizations arnd the city of derigtroit, an easter seals. rhe died this morning from

pancreatic cant the age of 76. ♪ ♪ ♪ new york university is doing something no medical school has done before. it will make tuition free for all medical stuesnts regar of their financial situation. schoolffials are concerned that rising costs and increased student debt areusng new doctors into other high-paying fields. nyu has raised $550 million of the 600 million needed to fund that tuition bforever. >>t buy is buying a health tech company that focuses on older americans.

the electronics retailer is paying $800 million to acquire great call. this company has emergency response services to more than 900,000 pain subscribers and this is best buy's largest acquisition ever. shares of best buy rose in today's session. >> amazon reportedly wants to she up the movie theater business. there are reports that the e-commerce cpany is looking to buy landmark theaters which, according to its website, is the largest domestic movie chain focused on independent films. acco ing tobloomberg, no final decision has been made and the talks could still fall apart. speaking of amazon, that could make the short lis for candidates of the $5 billion second headquarters even shorter. the company has told the 20 finalist cities at it would be making a second cut and that cut could come scsoon. t cohn reports now from anotherf the cities hoping to be on that list. that would be los angeles.

♪ >> it's the home of hollywood, glitz, glamour and, yes, as l.a.'s mayor, a serious world-class business environment. >> it is not the third largest economy of any city in the world,yofter t and we graduate more engineers of any city around,t' whether logistics and the creative capital and international traded yohink los angeles offers something very different than almost every city in americ >> amazon is the only amazon timist on the west coast, buck th conventional wisdom that the company wants to expand far from its existing headquarters in seattle, but the company hashat said only that it wants a metro area with a million people, a stable, business-friendly environment, a place that can attract talent d creative thinking on locations. if there's one thing l.a.'s got is creativity. >> the moment i heard about it i said los angeles. >> city council memr bob

blumenfield is pushing the san fernando v fernando valley, once the hose of an ace plant. >> they're being looking for brains? come to los angeles. we've g them ande've got the educatedor wkforce. >> l.a. does have one of the highest concentrations of tech workers in the country, and no state has more hher education institutions than california, but it's also expensive notoriously bureaucratic. california is in the midst of a housing crisis even without 50,000 new amazonee empl >> and there are those freeways. >> still, los angeles is apparently staying away from the kind of multibillion incentives that some of the others arean - if so, it's a wise strategy according to critics who say amazon is banking on politicians who will donying to win. >> they overestimate what the w benefil be and

particularly the city that hits the most is thene that overestimated what the benefits are. >> amazon isn't saying anything. bui building up suspense, a very hollywood tng tdo. scott cohn, los angeles. before we go, here is a final look at th numbersn wall street. the dow advanced 396 points and the nasdaq gaine32 and the s&p 500 added 22. and that will do it for us tonight. i'm sue haherera. s for joining us. >> i'm bill griffith. have a good evening. we'll see you torrow. ♪ ♪

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