hi ts is "nightly business report" with sue herera and bill griffith new strategy, now that the ever,arket is the longest it may be time for you to reassess your investments. rolling the dice, why mgm is opening a casino in a city not known for its glitz and glam. cra i the armor. new numbers show the wildly popular video game fortnite may have peaked. thosetories and more tonight on "nightly business rept for thursday, august 23rd. good evening, everyone. welcome. bill griffith is off tonight. longest entered t bull market in history with trepidation. after as drifted lower new round of tariffs went into effect and many market watchers tried to figure out what might

come next. today the dow jones industrial averageell 76 points to 25 points to 25,656 and the nasdaq dropped ten and the s&p 500 gave back four. b so with thl market now being the longest in u.s. history, are there some changes that you should be making to your investment portfolio. here is chad morganlander and the portfolio manager at washington crossing advisers. good to see youagain, chad. >> thanks for having me, sue. >> do you, first of all, set the stage. longest bull market in history. do you think there is more upside? >> i do think that there is much more upside, but one has to be somewhat more circumspect about their investments at this point ine. so overall, we think that on an annual basis for the next several years, you can see roughly 6% total return, but nonetheless, it's far below what the historical average has been for the s&p 500?

now there are somef kind crosscurrents in the market right now especially surrounding trade. so far we've seen volatility, but the market has not paid as omuch attention what's going on in washington as one might think, but do you think that there is a new type of risk in this market? do investors need to reassess what the risk tolerance is? >> well, they do have to observe it and be somewhat concern because large multinationals here in the united states have an embedded eectation of growth because they will be selling to international partners, and i.e., china and if you start to reduce those expectations, valuations cou be somewhat hurt here in the united states. >> so if you were ad a long-term investor, i would d assumeersification would be high on the list. >> how else would you rebalancen or reposin this market? >> well, because you've had this great bull r over the last 12

years, we would advise investoro ntially to move up the quality spectrum and get more balanced within one's portfolio and do more o less a 60-40, and 60 equity n40% fixed income in cash and one also has to keep in mind that cash is starting to return 2 to 2.25% if you buy a cd or money market cund. soh is now becoming much more of a competitive asset class, unlike it was, 18 to 24 months ago t andhat may as well have total returns in the s&p. >> chad, thank you so much. >> chad with washington crossing advisers. as we mentioned trade issues put investors in cstant move today. the white house, as expected has a fresh round of tariffs and $16 billn worth of chinese

imports. that sent shares of caterpillin and b lower, both of which are viewed as bellwethersn global trade. separately, a chinese delegation met with treasury officials f a second day of talks which could lead to additional talks a bit later this year. >> top business leaders are concerned about changes to the country's immigrationie polic members of the business roundtable sent a letter to the department of homeland security saying some changes are,quote, causing considerable anxiety, end quote for thousands of their employees. the letter also suggested that thewtnation's economic g and competitiveness could be threatened. member of the business roundtable include apple's tim cook, and ibm's ennyrametti and pepsi's indra. >> sales expected to hit a nine-month low and were hit especially hard in the northeast. while sales fell the commerce orts that the median price of a new house rose

to more th $328,000 in july. meantime, the average rate on a 30-year fixed rate mortgag fell to 4.15% last week and its third we of declines. central bankers are watching that housing market very closely as they meet for their annual gathering in jackson hole, wyoming and that's not the only thing under discussion. steve liesman takes a look atwh at's on the mind of some of the world's influential policymakers. ♪ ♪ as u.s. central bankers meet beneath the grand teeton mountains at thennual retreat in jackson hole, wyoming, comments that officials a uncomfortable addressing. >> i'm not going to get into that. i would say this, though. our j at the fed is to make decisions on monetary policy and supervision without regard to politicalonsiderations or

political influence and i'm confident we'll ctinue to do that. > we'rhat they're not uncomfortable talking about on. >> businesses that have some part of the supply chain that they think could get disrupted are raisingut questions a uncertainty in terms of their own investment. ce way i think of it is to watch thisefully and to try to judge how much uncertainty is flowing through to that can cause people to pull back on investment and ultimately slow the trajectory of growth. >> after interest rate policy, officitts seem com to a rate hike in september and likely another one in december each though the president said it shoulp trade administrations by keeping rates lower and that would keep a lid on ther' dol appreciation and that doesn't at the moment seem to factor into fed thinking. >> i think we ought to raise rates to get to a neutral l wel an ought to be raising rates three or four times over the months.e to 12 as for growth, kaplan sees it

taling this year, but off in the years ahead as fiscal stimulus winds down, they see it edge to the potential growth rate of 2% and they'll keep an eye on tariffs and taxes and overseas developments justs surely as while they're in jackson and they'll keep an eye on the ever-looming tetons is.e for ightly business report, i'm steve liesman. the advisory group, thet anal cites the retailer's strong second-quarter results. the price target is $100. the shares rose to $86.71. deckers was upgraded to neutral from negative at susquehanna. the analyst cites improving trends for the ugg brand and the price target is $104 and the stock gained% to $121.48. mattress company temper seely was upgraded to overweight fromt sector weightey bank. the analyst cites the potential for market share gains and the price target is 75.

the stock rose a fraction to 57.05. still ahead, a new casino in a place you might not expect. mgm resorts bets big on history in springfield, massachusssts. i'm con brewer. stillly ahead on "night business report" will b this big pay off for the casino ♪ ♪ ♪ ♪ ♪ the treasury department today issued new regulations to

enforce the capn state and local tax deductions, a cap that was part of the tax bill signed into law last year. some states have tried toha circumvent law by allowing taxpayers to make donations to public educationthnd services. charitable donations are not suect to the same cap. today's move by the treasury blocks that a new casino is about to open its doors, not in las vegas or atlantic city, but rather in massachusetts. mgm's new project will be the first resort to open in that state and as contess brewer reports fromd, springfiel a big effort was made to make sure it blends in. ♪ ♪ the casino glistens with glitz and glamour. mgm springfield isonructed of multiple historic buildings covering three city$9 blocks. 60 million project is the first of its kind for this

company to takeuch full advantage of existing architecture. >> we hadn opportunity her to dig deep into the archives. this doesn't happen often and we didn't want to squander that opportunity. >> inside, bits of springfield's history are onan display. antec bank vault, sports memorabilia and an indian motorcycle which were manufactured here. ouide the casino fits seamlessly into the old architecture. >> i'm getting notes and we have been in years. it looks great. >> in 2011 tornadoes tore through town, damaging a third of springfield. >> people have been displaced, and i really felt that we had to at least try. we'rees as a company when we're faced with big challenges. >> the mayor says mg will be the biggest taxpayer with $25nn million ally in taxes and he says the casino is a catalyst, drawing other new development, boosting attendance toe

attractions the dr. seuss museum and the basketball hall of fame, and ongering a ce of fortune for hard scrabble entrepreneurs. >> we were working very hard and just trying to make the ends meet. >> it's been a tough go for rebecca morijian ever since her dad died more than a decade ago and s runs a dry cleaning business her great-grandfather starte now she's landed an mgm contract to clean the employs' uniforms. >> now our goals have shifted into possibly owing. >> a hired 12 new workers adding to the four she already employed. >> even as springfield opened its doors, mgm is facing stiff coetition fromasinos in connecticut, new york, new jersey and soon fromhu masstts itself. no problem, mgm predicts it will draw in the casino crowds by blending the old and the new. >> i feel like we've gotten to a point where people will feel inspired by being here. >> as the city of fewer than

200,000 residents gets ready f a surge of 15,000 visitors on opening weekend, the uber drivers and restauranteur, the car dealers and thele dryers look with optimism on a new city even previous generations would recognize. >> my dad would be so proud. >> he would be so excited. >> across this historic new england city, a sense that lady luck may have returned to town. in sprid, massachusetts, contessa brewer, nightly business report. mcdonald's faces another food scare and that's where we begin tonight's market focus. the new york department of health is investigating weather breakfast sandwics caused more than 22 customers to fall ill. e franchisee has since closed the store and sent the foo items for testing and the news comes after customers in 15 states became infected withhe parasite after eating mcdonald's salads. shares were up to $159.05.

honeywell cited strong sales momentum. the aerospace s parts makerd it would receive $3 billion in one-time dividends from i anned spin-off of three business units. it will use that money to buy back stock and reduce debt. thehares rose 1% to $157.91. the chinese e-commerce company alibaba repord a 60% increase in sales a year earlier, but it warned that a $3 billion investment in a newly formed division would hurt the near-term. the shares finished down 3% to $172.23. and the meat producer hormel topped the quarterly sales expectations, butut its outlook for the year on tariff concerns. the company said levs on pork, steel and aluminum would cut its annual profit by as much as 6 cents per share and that warning sent hormel shares dn 3% to $37.33. sears iser closing ano6

stores. the move is an attempt to stem losses. the troubled retaile already closed more than 100 stores this year alone. shares of sears which is now a small-cap stock were off nearly 6% to $1.11. midterm elections are approaching and they could spell uncertainty for the markets. joining us to tal about what could lie ahead for stocks is jeff bush, partner at the washington update. good to see you, jeff. e back. >> thank you for having me. >> let's set the stage if we could. the fourth quarter traditionally, how does it fare for the market and is it different this year given some of the disruptions from washington? >> well, the fourth quarter generally is a good time for the market and there's no doubt about that, and what's unique in this mid-term cycle versus previous midterm cycles is you have a bifurcation between the perceived and pro-business friendly replican donald trump platform and the platform that the democrats are moving to which isbe perceived t a little less business friendly.

things like medicare for all and so forth. so i do believe there'sbe goingo bit of a challenge or a softening effect through the fourth qrter of this year especially if the democrats take the majority in the house iner novef this year. >> that's what i was going to say, is that the key to howrk ts might perform if we do see changes in the house and/ the senate? >> i do believe, i think what would surprise thearkets more is if democrats did take control of the senate, but i think it's fairly well baked in that the democrats have a good chance at taking back the house. the reality is the d ocrats can'enact that agenda with a republican senate so it really is mh more of softening effect rather than a true, big impactor the marke in my opinion. >> gridlock, usually the market likes that, but you kn, others say it's not going to be true gridlock. it's hard to know. >> true. this type of gridlock is different because of the political energyn the united states right now, the extremes of both parties and any time

you're dling with extreme element on other side of the political spectrum and headline volatility and you took the words right out of my mouth. do we expect not a dramatic softening and at least more volatility especially around the trade issue? >> i think there will definitely be more volatility in the marketplace if the democrats take control of the house and if the democrats do take control of the senate, as well on a simple majority basis and that will amplify the volatility, as well. trade is a wild card in the sense that it is theew pur of the president more than congress, so the president will really have a lotf say in that trade space. if the president and the republicans lose the house that we'll see the president double down on his trade efforts because it area that he has a lot of control in. >> all right. we will see.ff thank you so much. jeff bush with the washington update. >> we've been repting extensively on the impact tariffs are having on businesses ross the country.

some are benefiting from them, others areto not. ght, kate rogers takes us to pottstown,re pennsylvania w one manufacturer is realizing that the tariffs, he hopes h wod heis company are actually hurting. ♪ ♪ when president trump firstd anno plans to levy import riffs on aluminum and steel the american keg company was hopeful. >> we had high hopes that it was going to impact our business io a way. >> the pottstown, pennsylvania-based manrer produces kegs made entirely of domestic stainle steel. small business found out it was on the bad end of the ripple effect of the trump administration's ongoing trade war. with steel tariffs in place, demand for the steel increasing the price of the steel this mpany uses by 20%. >> the prices still shot up the roof. theab avaity and the lead times to get it from the mill

had mean, it was looking pretty grim. it affected our whole process and the amount of people -- it's had aretty dramatic effect on our company. >> what's more, imported finished kegs from china are about $20 less than the ones the company makes here. >> we just slowly watched the price of domesti go up and up. so we had to, in turn, raise our pricing to keep our margins up a little bit and while this is happening, there's still zero po dollar tariffs on finished port kegs coming into the country and it was just widening the gap between our price and theirs. >> as a result, theompany lost 20% of its business and had tor cut pction in half, leading to significant layoffs.t >> hit home pretty hard. i hired every single one of our employees and we had to lay over a trd of them off. >> and running three shifts and this place used to be packe

of the time and people had decent jobs and people who had an income tha they can cou on. one day you're giving someone a chance at employment a the next day you're telling them they don't have a job anyre. >> pau zacher was in washington this week, testifying in support of the additional tariffs on $200 billion worthf chinese goods. particularly on imported kegs fromha china tare pouring into the country, tariff-free. it's those import kegs taking business away from domestic companies like american keg. for no it's a waiting game to see how these tariffs shake out an whether they'll level t playing field for companies here at home. for "nightly business report," pennsylvania. pottstown, >> to read more on this business owner's story,ed this our website, mbr.com. coming up, new game plan. it's the hottest video game of the summer starting to cool off? ♪ ♪ ♪

the democratic national committee ss a suspected hack attempt was a false alarm. yesterday we told you that the dnc stopped an attempted breach of a voterda database. officials say they now believe it to be nothing more than a simulated fishing test. the number of lawsuits against the weed killer round up are mounting. there the owner of monsanto which makes that product says 8,000 legal complaints were filed as of the end of july. th follows a legal decision that ordered monsanto li pay $290 m in damages to a school groundskeeper for not warning him about the potential cancer risk of using that spray. > america' largest grocery

chai is ditching plastic. kroger plans to phase out single-use plastic bags. kroger orders 6 billion bags a year. its goal is to become a fully sustainable business with zero waste by the year 2025. the company says the decision is in response to edback from its customers. well, if y have teen or a tween like i do, chances are they are playing fortnite. as we reported the game seemingly became an overnight t, but fortnite's fast rise may be starting to slow. julia boorstin has the details. >> fo bnite haseen g aing phenomenon since launching last fall, popping $1 billion in in-game revenue as of may and with fortnite's explosive revenue growth slowing dramatically, the dats suggest that the game's peak may b the high, it grew 2% from june to july and that'sown from over a 32% revenue growth between march and april and 71% growth between

february a march. the polygon co-founder said the trend might reverse when kids are back in school and the social appeal of the game kicks back in. >> think kids are away and traveling vacation, what have you. fortnite is a social game and it doesn't get a lot of that press, but kids bring all of their phones together and play together. y 're not having that environment, but once the school year starts i think you will see more of an uptick. >> other bad newsor fortnite, according to twitch metrics, after dom nighting viewing forf the first h of the year, fortnite just today lost the top spot on games like twitch. fortnite calling behind the game.e we'll see if slowing growth continues. for now the question is whether there's fortnite fatigue and players are moving to other games of battle royale where this games are saturated. another trend is what does it mean to embrace the multi-player

battle royale mode that fortnite popularized. on theeels of fortnite's success,on activisi new call of duty arehioth launcng in october with multi-player modes similar to fortnite. polygon says although ea and activision's games are different, it' still smart move. >> the difference is fortnite is free and it makes a big difference for people getting those downloads and getting people playing. i think those games haveto need ave those modes to be competitive in this space. >> fortnite will have a lasting impact on gaming and games grew % year to date according to mpd research and that's attributed in part to fortnite bringing more kidsnto gaming. for "nightly business report" i'm julia boorstin in los angeles. finallyonight as college students head off to school the job sea website has ranked career prospects and here a some of the top-ranked subjects. accounting more than 90% of

the majors are employed and the industry is expected to expand. busihess management, study says that degree can help secure a job in many fies including human resources and consultin c chemistry, teer points to that industry's high-paying job. that does it for "nightly business report "tonight. i'm sue hes ra. thise time of year your public television station seeks your support. we thank you ve a great evening. we'll see you tomorrow. ♪ ♪ ♪ ♪

steves: it's no surprise that sevilla is also famous for letting loose in vibrant festivals and we're here for the biggest of all, thapril fair. for seven days each april, it seems much of sevilla is packed into its vast fairgrounds. the fair feels friendly, spontaneous, very real. the andalusian,assion for horses flamenco... [ castanets clacking ] ...and sherry is clear. riders are ramrod straight. colorfulid clad señoritas ridesaddle, and everyone's drinking sherry spritzers. women sport outlandish dresses that would l bk clownish all alone, somehow brilliant here en masse. over a thousand private party tents, or casetas, line the lanes. each striped tent is a private party zone of a family, club,

to get in, you need to know someone in the group, or make friends quickly. concepción's well connected, and, a we're in. concepcionmy caseta. steves: ths your caseta? concepcion: this is my ceta. okay? steves: because of this exclivity, it has a real family-affair feeling. veeveryone seems to know eone in what seems like a thousand wedding parties being celebrated l at the same time. in what seems like a thousand wedding parties

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