♪ ♪ this is "nightly business report" with sue herera and bill ♪ ♪ stiimbing. the nasdaq and s&p 500 push further into recordrr ory, but even as stocks rise, retirement account balances still have a ways to go. >> oh, canada. officials say trade talks are progressing and there's one industry this has a lot at stake. >> rising risks. extreme weather isvahanging the e of homes and the face of neighborhoods. our continuing series heads to miami tonight on "nightly business f report"or wednesday, august 29th. good evening, everyone. and welcome, i'm tyler math son in tonight for bill griffith. >> and i'm sue herera. thanks so much for joining us. wall street is in rallye. m the s&p 500 and the nasdaq

closed at new highks to a gain in technology shares. in fact, the nasdaq is on track for its best august in 18 years. a strong report on economic growth aloh optimism over trade put investors in a buying mood. today the dow jones industrial average added 60 points to 26,124. the nasdaq was up 79 or about 1% and the s&p 500 gaine 16 points. ls and more now on trade. canadian offic are in washington tonight working toward a revamped free trade agreement and both sides doppear optimistic now that an agreement can be reached ahead of a friday deadline. eamon javers has the deils. >> president trump expressed confidence that canada will join the agreement alreadyammered out with mexico. >> we'll see whether or not canada gets into it or we'll do something separately or we won't do anything which is okay, >> canada's prime minister cynthia friedman spent the day dehind closed-door meetings and

feels optimistic progressing can made this week. >> among the sticking point, the u.s. wants greater access to the dairy experts and canadian farmers oppos. that and the u and mexico agree tec whattene w rules to challenge trade policies. these have been used by canada in disagreements over dairy, software, lumber and commerciala air biz puts. justin trudeau says he'll fight o protect his country' interest. >> my government and i will stand up to defend supply management and defend our dairy farmers. that is something that we have been very, very clear.l >> a final ds far from finished. congress would have to approve ouany deal as legislators in canada and mexico. for night business report. i'm eamon javers at the white house. no industry has more at stake from any shift in trade policy than the automotive

sector and that is because of the 17 million vehicles sold in the u.s. last year, a largeio po of them were made in mexico and canada. here tbo talk more the potential impact on the sector is michelle krebs executive analyst at cox automotive. welcome. nice to have you here tonight. >> thanks >> it's hard to know exactly what the complete impact will be because we don't kw all of the details. that uncertainty must be very unnerving to the automakers. >> yes. uncertainty is not the auto dustry's friend. the auto industry is a very ng-lead business. right now automakers are planning for the vehicles and where they'll be produced four years from now so tlly r would like to know what the rules of the game will be. >> one of the rules in the agreement between the united states and mexico is that 40% to 45% of the content of any car that is sold in the --ad in the zone has to be made by a worker earni $16 an hour. that is higher than the wages

are right now. how much is that going to increase the cost of vehicles for u.s. consumers? >> well, we don't know how much, but we certainly know that this agreement will increase the price of vehicles. with production costs in mexico higher because of the wages and because of some vehiclesbe won' ble to meet the content rule and that will go of the car and that probably will be passed along to the american consumers. >> does that mean less caret sold and many more cars get leased because it's cheaper? >> not necessarily. lease rates have gone up higher than auto tloans, butt brings up another factor. interest rates have been risin and that h increased the cost of a vehicle, too. >> so 75% of the auto content must be made in the unid states or mexico of these cars under that deal? i presume that that, too, is going to rse costs for automakers and that they will pass along those costs to

american. consume >> well, right, and we've already seen the costs have gon up because of the aluminum and steel tariffs that have gone infft. for right now the automakers have pretty much absorbed that and notassed it along to consumers, but we think,ev tually with the pressure wall street about profit margins and cash flow, eventually that will have to be passed along to th consumer. >> and do you have any gauge as to when that might b if people are out there thinks i don' awant to buy new car because the tariffs will take effect it may take a while for it to trickle downe to ttom line. >> we have seen used car prices go up because people are thinking oh, p thece of new cars will go up and we'll go for ased c and that's increased demand at a time ofr y we tip edgily see them go down. >> michelle, thank you so much. michelle krebs with cox auto

mottive. >> it's spoeded to start emergency aid for filmers, and $6on will be available after labor day. the department of agriculture has authorized a totalup oo $12 billion in relief to u.s. growers. >> the tariffs on top of the low commodity prices already was kind of a double whammy, but no, there's no ability to make farmers whole in this regard and we just try to calculate the mitigationffts based on the tariff disruption there for farmers. >> the secretary added thatrm s would rather have trade deals than a bailout and that the agreement with mexico is a start. the economy logged its best performance in nearly four years. economic growth for quarter came in a bit stronger than initially. report gross domestic product for the april through june period increased at a 4.2% annualized rate thanks to an uptick in business a spendin a decline in petroleum imports.

that same report showed that corporate profits rose 16% and that is the a largestual gain in six years. >> pending home sales fell for the seventh straight month. the decline in ctracts to buy previously owned homes dropped .7% in july. i find that buyers are balking at higher prices and a lack of options on the market. oras we've been rng home values have been climbing at roughly double the pace of average wage growth. >> it is time to te a look at some of today's upgrades and downgrades. morgan stanley hiked itsrice target on amazon to 500, the highest on wall street. at that price, amazon would have a $1.2 trillion market valuation. the firm maintains its overweight rating on the stock. the shares rose 3% to $1998.10. and that same morgan stanley analyst raised his price target on alphabet to $1,515, also the highest on wall street. th analyst cites waymo's

leadership to develop driverless cars. it could rise 20% over the nt 12 months. the stock was up 1.5% to 1,264.65. square is being called the best new idea and highest convicti name in thin tech by guggenheim. ast analyst there for higher subscription revenue for square. the price t the stock upto 685.70. kansas city southern to market perform at cowan. the analyst cites the preliminary trade agreement between the u.s. and mexico saying 50% of the company's business comes from the mexican market. the price$1 target no. the stock rose almost 1% to $119.45. still ahead, yet summer was a hot one for the airline sector. ♪ ♪

♪ ford's credit rating w downgraded a notch above junk by moody's. the ratings agency warned that its rating could be cut further if the automaker doesn't make clear progress on its turnaround plan. ford faces weakening profit margs in north america a softer business in china and losses in south america and europe. >> the rally in stocks has been broad and some say thearket is firing on all cylinders and that's not necessarily translating into more savings for retirement. bob pisani, explains. >> the markets are at n highs. how is your retirement fund doing? the good news is the val of retirement funds has risen and bothidelity and vanguard has reported that the average retirement fund has rose in the last year.

the average 401(k) in their system was worth $104,000 and the second up 6% from a year ago. the ira, the balance increased to $106,900 ask me companies are using out enrollments in retirement accounts an that's helping investors save more. here's the bad news. we're still not saving nearly enough. the average 401(k) account for 65 andlder is $209,984 and that sounds like a pretty good number and it is, it's polled higher by a small number of super savers and high-income earnings. the median balance is what you want. half have more and half have less and here the median balance among those years and older is a measly $64,011. average that out over 20 years and most live into their 80snd that's not a lot to pull out on a yearly basis. 000 or 4,000 a year?

why are the savings so low? because many don't contribute the full amount the out to contribute? indeed, many don't participate at all. it's incredible and only 72% of eligible employees are enrolled in the voluntary savings program according to vanguard, given most provide a matching contribution andt's like passing on free money. investors cannot wait and he a rising market can bail them out. we need it savelyore. for "nigusiness report," i'm bob pisani at the new york stock exchange. >> so how can you amass more on your 401(k) retirement? i guess the two critical things here, reid, are to start young as young as youbl pos can and never miss a year and number two, to p obviously inasmuch as you can at least to get the full company match. >> yes. if there is a match, yes. absolutely.

>> a lot of people are just maybe uncertain what a 401(k) plan is and investing in general. we encourage people to start small. the journey of a thousand steps starts with one step. start with 1%. if you really need that start 1%. what we encourage people every six months increase that by 1% in five years you'll be at 10%. you modify that thing to remember is the money you're deferring, only 75% of that comes out of your paycheck because you're not taxed on that money. what about choosing the investment itself. some people find that quite daunting. >> it can be. >> if your employer offers say target datfund, would you recommend just deferring to that if you don't feel like you have, you know, the knowledge of the market to pick anoth type of investment? >> absolutely. target date funds have become more popular and not everyone has thecun or knowledge to

be confident in investment and targets arete b if you're young and inexperienced. what is a target datd? f me's a globally allocated, diversified inve in one vehicle. the management of the company is taking care of rebalaing and everything. you've got cash. you've got bonds and you've got go ahead. >> finish it off, i'm sorry. >> the target date comes from the idea that it will be a target date with a year. you want to target that fund generally close to the year when you turn 65,uthat's just a guideline. as you get older you still want to be aggressive and targethe year that matches ten years after your retirement age and you maiain the aggressive and moderatal caution. we did key on it earlier is to take away the companyatch. n it's huge. youer want to leave the table. the first 3%, you get 100% match. the next 2% you get a 50% match.

so if you put away 5%, getting a 4% match that's 9% savings rate which is almost double theal nativerage and the 4% they're giving you is like an 80% guaranteed rern. >> not to throw you a question by any me, but do you find that people tend to pay more hetention to their retirement and savings in an up market? i mean, we've seen records made wall street. or do they worry about it more in a down market and pay more attention to it? >> i think the problem that we see and we consu on plans with people is that there's just a understandingf and a lack of knowledge. they don't trust the markets. they don't understand so ucation is a b thing. that's why we encourage people, take the small steps. start with 1% and increase it regularly and pick a target date fund and take advantage of that match. after you get some experience the knowledge will come and you get morenf ent, but the fact is it's just theeneral lack of

understanding the knowledge. >> we appreciate you time. >> thank you. dick's sporting goods is blaming -- using the blame game fo its weak quarternd that's where we begin tonight's market focus. the retailer is pointing fingers at underarmour saying weak sales of the brand weighed on same-store sales and the company is hopeful headwinds will ease and it raised its full-year profit forecast andne eless, the shares fell 2% to 35.60.ge underaveur dipped early in the day and reversed course and it finished higher. the clothing retailer express rerting a surprise rise in same-store sales and better than expected earnings. the company cited strong e-commerce sales and lifted its full-year forecast. none t nonetheless, the shares were off a fraction to $9.93 and sales at american eagle's and its namesake brand rose in the eecent quarter, but the posit momentum may not last. the retailer warned sales are expected to cool and that could

cause profits to come in below expectations. shares of american eagle fell 6 to $25.50. sue carnival beat wall's financial targets as they gave a lift to its results. a customer responding well to the fall season product lineup. shares of shoe carnival, the small-cap stock ran up 13% to $41.74. a rise in iernational sales helped movado at a faster an expected clip. the watchmaker recently acquired itvia burton brand a continues to perform very well. movado raising the 2018 profit and sales outlook, but it seemed investors wanted more. shares fell arply, as you see there, finishing the day down 15% at $41.80. the glaucoma treatment company glauco has a rival device. it faces reduced competition for

eye stents. shares of glaucos soared to $42.86 and novartis down a fraction at $83.67. after the bell, sales force surpsed analyst estimate, but gave disappointing earnings guidance for the crent quarter. shares were initially lower in the extended session, but finished the rularrading day up 1% at $154.80. watch this one tomorrow. >> as temperatures soar heading into labor day so arehe fortunes of the airlines. many of the stocks have risenth 10% i last month. phil lebeau explains why a very busy holidayl weekend wilap a summer surge for the industry. >> if it svems likeone is flying somewhere this summer, that's because carriers areor seeing me passengersng get onboard. in fact, u.s. airlines expect a record number of people to fly in the week wrapped around labor

day. >> we are clearly hitting a thace on demand where it's very strong. airlines are very upbeat about connued strong, economic growth and household iome are at all-time highs and we're optimistic about the future. >> ohatimism is due not only to tum recordr of people flying in the u.s. and the type of passenger buying tickets. airlines are seeing more near-term bookings and those te to be business travelers, who on average, pay more than >>isure flyers. think what's happening is closing booking trends and demand is really strengthening for the group, and i think investors are really starting zero in on that. >> spirit, delta, united and nearly every airline have seen its stocks august elrally,d in part by a moderation in jet fuel prices. >> also remember carriers are being more cautious about adding more seats and planes in the

air. add it all up and you see why investors are optimistic airlines are poised to fly even highm here. phil lebeau, nightly business chicago. >> from planes to another subject phil covers cars. someood news finally for drivers. gaces are expected to drop soon. according to aaa the national price for a gallon of gasoline will likely average $2.70 this fall and that is 14 cents less than current prices. the automotive association is citing relatively stable oil prices in gust, a seasonal switch over to winter blend and an anticipated decline in consumer demand. coming up, hurricanes have been an integral part of miami's history, but rising fees may define its future. next, the installment of our rising risks serie♪ is next. ♪ ♪

♪ me than a dozen human rights groups are urging google not to offer censored internet search in china. this amid reports that the company is planning to provide such a service. in a letter to google's ceo the groups asked the company to explain how it plans to safeguard users from censorship and surveillance. amazon responds to senator bernie sanders' accusations of poor working conditions in its fulfillment centers calling the claims inaccurate and misleading. in a blog post amazon said it ked senator sanders and his team to tour one of the centers and to date h s has nn one. the senator has been saying thad amazs not pay its lower level employees a fair wage and he recently issued a call for amazon employees to share their experiences. as we move into hurricane season once again, morgan stanley did an analysis of the

sects that are most impacted. there are the obvious beneficiaries like home depot and lowe's which typically see a sales boost as people repair property, but on the other end of the spectrum there are surprise. tccording to the report, pv, had, the par company of calvin klein and tommy hill figure plans to be negatively impacted because nearly a quarter ofts stores are located in hurricane-prone areas and thee same is true, by way, of dunkin' donuts. >> remember hurricane irma?l it took a t on miami last year even without a direct hit. s changed real estate developmentategies and reshaping local economies. diana olick has the latest stallment on her continuing series "rising risks." ♪ ♪ this $25 million water-front home is the epitome of miami beach paradise, but it is paradise at a price. because rising tides andxt increasinglyme storms may

already be lowering its val. in fact, this home just five miles inland in miami's little haiti could actually be a better investment according to a controversial new study. >> what we see here is the theory of clite gentrification. harvard university's jesse keenan tracks the values of more than 100,000 single-family homes across miamioing back 45 years, and in a published study coined the term climate gentrification. >> so you're saying home prices areallreadyng 10% because of climate>> change? 10% to where they would have been had their not been clima change. evidence, he says, that climate changes authoring home values both on the coast and inland. >> what we found is the higher elevation properties are essentially worth more now increasingly and will be worth more likely in the future? because multiple predictions like this o from climate central are dire. the ocean overtaking vast swaths of miami in just the next few

decades, precisely, keenan ur argues why climate gentrification, displacing low-income residents in high-valuation neighborhoods is already happening in little haiti. fabiola is a real estate investor and community activist inhe area. >> all of the community sees is just new people buying up , propertiaising the property values and property taxes, pricing them out. >> on the street, most of the homes are valued around $100,000, but this home renovated by an investor is listed for sale at $559,000. its value has almost doubled in the last three years and the neighborhood around it is upgrading as well. >> you hav longtime commercial tenants who have been here for 10, 15, 20 years and new investors and developers no longer want their rent checks. why? because now they're vereping it. >> part of what's behind the gentrification here is just the current trend toward urbanism,

but it also scenes like this from last year, miami narrowly missinit a direct from hurricane irma. valuable new properties in the heart of its growing downtown were under water. >> i would say water for a firm like ours is becoming a decisionmaker as it relates to strategiesor investment. >> miami nive david martin is president of terra group, a commercial and residential developer. he just finished a luxury waterfront condo and is building more next door. f claims these towers will help protect miamim water. >> we looked at areas that are on the beach and along the coast and we sayow can we fortify these buildings? how can we cree incremental ax revenues from these areas along the beach or along the coast and start reinvesting that incremental tax dollar into the infrastructure in order to make those neighborhoods resilient. >> i mimy esting $200 million into resilience,

installing pump stations and upgrading its infrastructure. miami beach is on track to spend twice that, raising sidewalks and sea walls. the money ns coming fromew bonds, voters raising their own property taxes to protectheir property, but martin is also starting a new project here on much highe ground, a $162 million residential and commercial development on five acres adjoining a metro rail station. >> are yououedging bets? >> i think there are opportunities both areas. >> because while values a rising up here, demand is still high on the coast. real estate agent danny hertzberg doesn't really buy the climate jept climate gentrification thesis, but his clients are more wary of risipl water. >> p are focused on new construction, homes because with the newnode they're higher elevation. that's been a change. i don't think people will give up t beauty of living on the water. >> for nightly business report,

i'm diana olick in ami. >> to read more on diana's story on climate change a real tate in miami specifically, head to nbr.com. >> before we go, let's take iother final look at the day on wall street awas a happy one. the dow added 60 pin thes to 26,124. the nasdaq up 79 about 1% to a record and the s&p 500 also gained 16, and that, too, was a record. all of the way around. >> that will do it for us. us.ks for joining i'm sue herera. >> i'm tyler matheson. we'll see you right back here tomorrow night.

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