report" with sue herrera and bill griffeth. >> record run. the nasdaq climbs to levels never seen thbefore. s&p 500 breaks briefly above 2,900 for the fir. time ev and that has investors wondering, now what? >> shoppingspree. confidence is up, spending is strong, and that could bode bell for the retail sector in the ea months hitting a wall. home prices are rising by less and less and buyers are paying attention. those stories and more tonight on "nightly business report" for tuesday, august 28th. good evening, everyone, and welcome. bill griffeth is off tonight. stocks edged just slightly higher, but it was enough to add to their records.

the nasdaq closed at an all-time high for the third straight session. the s&p 500 fluctuated throughout the day, briefly breaking through 2,900 before pulling back. here are the closing numbers for you. the dow jones industrial average added 14 points to 26,064. the nasdaq was up 12 and the s&p 500 gained a frtion. andith stocks at these lofty levels, what comes next? well, mike santoli takes a look. >> reporter: summer is ending, corporate earnings season is teetering out after several mont of struggle and recoveries. in other words, wall street has reached a now what moment, as trade talks come to a head and a sequentia consequential election season dawns. in decades past, when the s&p 500 has nosed t its first new high in at least six months, as it did in recent days, the index was higher one year later more e

than 90% of time. the s&p is now up about 8% nd year-to-date when it's gained between 5 and 10% in years past, the remainder of the year has tended to carry a bit harg still o average. one big question, thou, is whether this market is hinting th that it has use up much of the good news that the economy and the corporate sector are generating. big company earnings are up more than 20% this year, if the broad market has appreciated only half as much. this despite thet fact t bond yields have remained unexpectedly low, and companiess have beenring cash through dividends and stock buybacks in record amounts. and when unemployment and consumer confidence reaches the kind of strong levels y see now, this is why the outlook for 2019 will become so important as we summer gives to fall. for now, profit f forecasts ext year are holding up unusually well, indicating further expected growth of close to 10%. historically, the month of september tends to be a choppy and unrewarding one for stocks

and midterm election years have been known to exacerbate those jitters, but these are broad tendencies rather than a reliable seasonal script. in some bways, it coul a positive that there's so much talk of the end of this cycle right now. it says that investors and commentators of healthynd skepticism muted expectations, even as there are few clear signs of an imminent downturn or an end to this era of corporate prosperity. forghtly business report," i'm mike santoli. the canadian foreign minister arrived in washington to start tradecuions with the u.s. one day after the white house announced significant progress with mexico. the canadian prime minister, justin trudeau, says he's wcouraged by progress being made, particularln it comes to issues surrounding the autoortive se >> our team is right now in washington, digging into the progress made and looking a what the next steps are. we will engage in a positive and constructive way, we always have been, and look forward to ultimately signing a deal, as

long as it is good for canada and goods for middle cl canadians. >> treasury secretary steve mnuchind that sentiment, saying he's confident that a deal can be reached. >> i don't anticipate there's going to be a lot oftsticking po i think that ambassador lig lighthizer has done a terrific job over the last years, we've made a lot of progress with canada, and hopefully they'll come onboard. if not, we'llitove forward mexico. this is a great move forward with trade. >> the trilateral trade pact known as nafta was ratified back in >>94. thousands of miles away, a pipeline company finds itself cing millions of dollars in extra costs, as it finds itself stuck in the middle of a trade fight. leslie picker has s thetory from grand falls, texas. >> reporter: this is plains all-americ pipe yard in grand

falls, texas. the76-foot pipes are stored here before they're welded together and placed underground. it's the makings of a pipeline that will transport crude from the oil-rich permian basin to corpus christi where it will be refine but take a closer look, and you'll see a stamp that says, made in greece. the y pipes see here were ordered from a greek steel mill in december. by the timhese pipes reached u.s. shores a few weeks ago, plains was already on the ok for the25% steel tariff. that added an extra $40 million in expenses for this project. plains all-american, a $20 billion pipeline operator, filed for an exemption from the tariffs. it's one of tens of thousands of applications that american companies have submitted, seeking relief. the company sai it should not have to pay tariffs on steel that was purchased before the tariffs went into effect. plains aelo said the ste they needed was specialized and could not be manufactured domestically. plains heard laston that its

exemption request was denied. >> certainly, theoc exemption s can be a lot more transparent. and it's that arbitrariness to the exemptions process that we see as the biggestht failing r now. >> reporter: the commerce department told msncnbc that it policy does not all grandfathering of pre-existing contracts. additionally, the administration said that plains' exclusionts requeceived five objections from domestic steel manufacturers, which said they have the abili to make the steel that plains needed. critics of the tariffs and the process of exemption itsel say e penalties could create unintended consequences that risk dermining current and future oil and gas projects. >> economic growth can be fueled by infrastructure. and in order to have that infrastructure, we need steel. so without some change to the tariff policy, we'oing to have what amounts to a 25% tax on american energy infrastructure.

that can derail the advances that we've made with the american energy revolution. >> for nowplains will continue constructing its 1.1 billion pipeline, using greek ee and about $40 million less on the balance sheet. forne "nightly bu report," i'm leslie picker, grand falls, texas. consumer ceafidence is according tigh, the conference board, american olds are optimistic abou their job prospects and rising incomes are making them feel better about the economy. in theory, when consumers feel intter, they spend more, and that spe accounts for about two-thirds of economic activity. so usually when the economy improves, people do, indeed, spd more money on things that are not necessarily essential. today we got a pee int that so-called discretionary spending, when tiffany released its earnings. the upscale jeweler topped quarterly profit and estimates and raised its full-year profit forecast. the company cited strong demand

in both the u.s. and china. it also said it was able to attract both affluent a price-conscious shoppers. spending at best buy may also be cred discretionary, since you may not need that tv right now, but you really one. the retailer reported better than expected earnings and revenue, but its outlook was not as strong as wall street had hoped, and that sent the strong courtney reagan has more on the state of business at best buy. >>eporter: best buy put up a solid quarter with comparable sales increasing for the sixth straight time.ia apes and entertainment sales particularly strong. but it wasn't a perfect quarter. e retailer's online sales growth is slowing. this quartes 10ncrease marks the lowest growth rate in more than three years. still, best buy says it's gaining share online in consumer electronics,s even a the category and best buy's ordering, pickup, and shipping options mature. best buy has doubled its online sales in five years, making up 15% of total sales.

the consumer electronics seller also giving a weaker-than-expected profit forecastos it continues invest in its supply chain and delivery speed. but many analysts are focusing onaiow far the rr has come and the potential it has ahead. >> best buy'srowing online, they're growing in store, their product availabilitys really good. they're benefiting from a very environment, mer some strong interest in the products that they sell. >> a few years ago, the worldt thought buy t was goingo debt amazoned. best buy has been a very positive story for us for the last four or fiv years, at least. it's an example of what can happen to brick and mortar when th unlock those stores and really double down on the stomer experience. >> reporter: serving the tstomer and making it easier to connect technolog consumers' lives is a key part of best buy's strategy going forwuyd. best b continues to grow with free in-home adviser programs and expd i total tech support membership. the retailer also justea purchad t call. it's a company that makess de for aging consumers thaty

allows famembers to connect with caregivers and access n.dical informat experts expect that total consumer electronic sales will rein steady, so innovating beyond just selling gadgets is key for best buy's growth. for "nightly business report," i'm courtney reagan. and it was a blowout court for dfw. the company reported record earnings and revenue and raised its full-year guidance. the discount shoeai retailer sd its results were helped by the launch of its reward program, both its traffic to stores and its website. the stock soared 20%, its biggest one-day gain ever. so with consumer con adence discretionary spending solid, what is ahead for the retail orse oliver chen is the senior retail analyst at keown and company he joins us now to talk about that. good to see you again, oliver. welcome>>back. hanks for having me, sue. good evening. >> you make the point tha is the best consumer environment you've probably ever seen,gh >> yeah, we are very excited

about what we're seeing. what's happening is low unemployment, wage growth, a hague dmeree of con confidence, the customer is back and it's showing up in numbers at a walma target, the top line is very strong. that being said, this is a very changed consumer environment, given the threat of amazon, given the rise of digital and mobile, and given the rise of social media. so it's a different kind of consumer, but underpinning this is an exceptionally strong consumer, low employment, rising wages. that's a nice placebe to >> it certainly is. what i was struck by is the fact that high-end luxury did for example, tiffany. but also, the discounters did pretty well, too. >> yeah, we continue to have that thesis. we c it the bow tie thesis. we like what's happening at the high enwe lso like stocks which play in value, such as costco and the off-pricer. so the tiany's, the sotheby's, those are great stocks thatdi we're recomm. also, the low end, as customers

look for great value. so we have a strong high-end consumer and we have a consumer looking for exceptional pricing, exceptional promotions, and that's a bifurcation that's happening with ourtock selection, as well as the economy. >> i want to ask you about back-to-school season, but we just showed tiffany's stock. you have an outperform on kffany's. it id of expensive, when you look at the metrics for the stock. why do you still like it? >> we are excited about what tiffany's is doing. we think the blue boxing wi, be icon, they're renovating their stores, they're innovating product, they're also implementing digital changes, as wellke as well as mng and really marketing and creating products for a new generation of customers, millennials and generation "z." so we've seen really tremendous product innovation from tiffany t. there's a new tiffany true collection coming out and paper flowers. s we've alsn increased use of social media, the tiffany caf with experiential retail and they're renovating their

flagship so a lot's working here and we think the momentum will continue. and that's a global iconic brand, which will show lots of sustainable growth, given the nature of the brand, given the gifting potential, and giv the strength of the high-end consumer, as well. >> what are you expectingol for theay season coming and also back-to-school, quickly? i waha to note you also ike kohl's and you also like walmar >> yeah, we're excited about kohl's because they have a nice active assortment. what's happening in the consumer is a focus on health and wellness, the casualization of america, and thinking about clothes that outfit that lifestyle. kohl's is doing very well. they ao have al an industry-leading loyalty program. we think loyalty programs and using data is the future of retail. and they're shrinking their stores, such that they're contributing floor space to other people. that's a nice story for kohl's in terms of what we see for the back half. >> oliver, nice to talk to you, as always. thanks so much for joining us. >> thank you foraving me. >> oliver chen with keown and company. it's time to take a look at some of toda as upgrad

downgrades. applied materials was cut to neutral from buy at bank of america, merrill lynch. the analyst cites concerns over chip-making equipment growth. $49.price target is the stock fell a fraction to $43.40. fellowship chip makers xilinx was upgraded from outperform to neutral. the analyst tesre c recent contract wins for the company. the stock is $90. it rose more than $20 to 76.99. estee lauder was upgraded at morgan stanley. the pricearget is $160. the stock was up more than 1% to $14 $140.09. coming up sunshine, beach, and amazon? >> i'm scott cohn at another potential site for amazon's covete $5 billion second headquarters. this is miami, a city that has a lot going fittor it and a particular connection to

amazon's founder. we'll tell you what that is, coming up on "nightly business report." t rise in home prices is slowing. today, we got another weaker re on the real estate market. and while that may be bad news for home sellers, it is potentially good news for home buyers. diana olick h re. >> reporter: home prices are and rising, but by less less. in june, prices nationally rose 6.2% year over year, accordi to the much-watched s&p case-shiller price index. that is down from the 6.4% gain in may. prices usual lag sales and sales have been falling for most of this year.

the problem has been a chronic lack of supply. builders are not keeping up with demand, especially on the low end of the housing market. demand is strong that for a while, prices had nowhere to go but up, until now. affordability is becoming a much bigger issue, especially as rising mortgage rates are alsot ng their toll. the rate on the popular 30-year fixed mortgage rose from around 4% at the start of this year to just over 4.5%now. that directly affects housing affoeability. >> halue appreciation has slowed, but it's still triple its historic pace, three times the rate of wage growth. it's still a seller's market. it will ctinue being a seller's market unless there's some dramatic shifts in inventory or a rapid increase in mortgage rates. >> home price gains are still wquite strong in the westre someplaces are leanest. las vegas, seattle, and san francisco continue to lead the pack in pris. ga the midwest and northeast are seeing smaller home price increases, a values there weren't quite as hot to begin,

and more supply is comg on the market. washington, d.c., chicago, and new york city showed the three slowest annual price gains among the nation's 20 largest cities. prices are highly unlike to star falling in most markets. demand and the economy areto ju strong. the gains, however, will likely shrink until more affordable supply comes on to the market. forss "nightly busieport," i'm diana olick in washington. >> yum chinaeportedly rejects a buyout offer, and that's where we begin tonight's market focus. "the wall street journal" says the restaurant offn turned d a proposal from a group of investors that valued the company at more than $17 billion. the investor group was led by hillhouse capital a also included the private equity firm kkr. yum china share re nearly 4% to $37.17. in its first earnings report since returning to the public market, discounted warehouse chn b.j.'ssa who saw

same-store sales and earnings grow at a stronger-than-expected pace. the compa say that it was helped by an increase in meership fees and they raised their full-year outlook. haynes celestialsd toprofit estimations, but it missed sales estimates and warned tent the cuquarter isn't shaping up to be a success. the company said intensifying competition would cause revenue to declineslightly. anares fell more than 6% to of 26.77. campbell's soup is reportedly not interested in selling itself. the "new york post" says the soup maker plans to announce the results of a month-long strategic review soon. if campbell'sot chooses to find a buyer, a proxy fight could ensue with activist investor dan loeb, who has been urging the company to sell itself to improve financial perfor fnce. the sharished down 2% to 39.83. well, 20 cities have made their best pitches to be the home of azon's $5 billion second headquarters.

but only one of thoseinalists can boast a particular personal connection with the company's f bezos. could it be enough to seal the deal? scott cohn's tour of the contenders takes him to miami tonight. >> reporter: miami's got style, and it's got similaritulate sym. it also has palmetto high school, whose 1982 valedictorian was none other than the future founder of amazon, jeff bezos. local boosters sayhat can't hurt. >> at least he has some knowledge of what miami is all about. we look fward to refreshing that, by showing what the new miami is. >> reporter: today's miami is a transportation hub, a key priority for amazon. the region has an eensive rail network, three international airports, a gateway to latin america, where amazon is trying to expand.bl among the pos sites, the mixed use miami world center

project, already und construction. >> we are becoming actually a technology center here, and we're transforming miami.re we our great culture and a great lace tolive, great weather, and also, obviously, a really beautiful, beautiful place. >> florida has low taxes, relatily business friendly regulations, the economy is strong. but the state also has some weaknesses that could put a crimp in miami's style. >> reporter: amazon says it wants a location that can attract and retain top tech talent, but high school test scores in florida are among the worst in the nation. and the state has the lowest concentration of tec workers among the 20 finalists. it to worry, local boosters say. >>s more than just what's here right now. it's what the future holds for miami and how fast we can build a talent pipeline that would meet amazon's requirements. >> reporter: that could depend on florida's notoriously fickle politics, even thougys amazon sat wants a stable environment. but miami says it can deliver and convinced jeff bezos thatu n go home again."nightly busin,

scott cohn, miami. >>omoming up, the cpanies in line for a potential political ad windfall. >> president trump has called google's search platform rigged and accused it of suppressing positive views about his presidency and conservative views. >> they better be careful, because you can't that to people. you can't do it -- we have literally thousands and thousands of complaints coming in. and you just can't do that. so i think that ggle and twitter and facebook,re they're ly treading on very, very

troubled territory and they have to be careful. it's not fair to large portions of the population. >> white house economic adviser larry kudlow said the trump administration is, quote, taking a look at imposing regulations on google. in response,oogle said that when users type queries into the goal isearch bar, our to make sure they receive the most relevant answers in a matterse of nds. search is not used to set a political agenda ande don't bias our results towards any political ideology. that's a quote. google shares fell a fraction in trading today. in an unprecedented move, i facebo removing several accounts of myanmar's military ficials to prevent the spread of what it calls hate and si ormation, after reviewing the content. this is the first time facebook has bannea country's military or political leaders. and according to the company, the bans cannot be appealed. meantime, twitter has suspended about 500 more

accounts for violating company policy for what it calls coornated manipulation. the company suspended 280 counts last week. most oe which w from iraq. twitter did not give a untry of origin for the latest suspensions. both facebook and twitter's actionmi follow a s of tech companies last week, where discussions centered on ways to protect their platforms during the upcoming midterm elections. and ahead of those midterm ections, political ad spending is ramping up. billionsf llars are expected to be shelled out across local it have, cable channels, and digital platforms. julia nborss following the money for us tonight. >> the midterm elections are just under two months away. >> we've got to bring new ideas, fresh thinking, andhange the direction of this country. >> i flew 89 combat missions as a u.s. marine and my 90th mission is running for congress. >> reporter: that means billions of dollars will be shelled out for ads across television and digital platforms to help those fighting for gubernatorial,

house, and senate seats. analysts s the local parent companies stand to benefit the most from this area's increased spending during the midterms. >> next looks like they're going to have outsizedveesults rela to expectations. i think gray will do particularly well. sinclair. nexstar and sinclair have the best political footprints followed by gray where there are toss-up races. >> toss-up races make investing in ads all the more importhyt, which isotal political ad spending is expected to reach nearly $4 billion this year. that's about $1 billion more than during the 2014 midterms, accoing to kantar media. spending on local tv ads is expected to grow14% to $2.4 billion, while political spenng on cable channels expected to grow 42% to $850mi ion. but the biggest jump in political ad spend is on digit platforms, expected to be up by

140% this year to some$600 million. as digital platforms and election manipulation remain in focus meve than er, facebook is launching a new archive of all political ads purchased and who paid for them. but even with the surge in digital advertising, kernos says he does not expect that growth spending,lize tv which remains king. >> the vast majority of political spend is still being spent on traditional media and local television in particular. it'seen prove to be the most effective medium and i think it will continue to be. >>he question remains whether facebook and twitter's challenges with foreign interfeence and f news will drive advertisers to spend on digital platforms with on professially-generated content, such as hulu or news sites. for "nightly business report," i'm jewella boorstin in los angeles. >> and finally tonight, faa inhwartz is m a return. the store that shut its fifth

avenue doors in 2015 plans to reopen in rockefeller center this november. t a california firm acquired that store in 2016 and says the location will make the store as much about the experience as it is about the shopping. tjust in time f holidays. before we go, let's take a look at the final day's numbers all street. the dow added 14 points, the nasdaq was up 12 to a record. and the s&p 500 gained a fraction, which was also a record. and that isnitly business report" for tonight. i'm sue herrera. thanks for joining us. have w great evening all see you right back here tomorrow.

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