this is "nightly business report" with sue herera and bill griffith. september surprise, august was good to investors, but when the calendar turns, history says things could get a bit rocky. >> no deal yet. a dramatic day of trade negotiations between the u.s. and canada. leaves critical economic relationships. >> and location, location, anymore., not why real estate millennials is all aut the pets. those stories and more on "nightly business report" for friday august 31st. and good evening, everyone. i'm tyler matheson in tfoight bill griffith. >> i'm sue herera. welcome, everybody. well, stock sizzled in august avoiding the summer doldrums. this mon we saw the bull

market become the longest in history. the s&p 500 and the nasdaq hit records and in wafact, thi the nasdaq's best august in 18 years, but theinal trading day of the month saw a flat finish for the major averages. the dow jones industrial average fell 2 points to 25,964. the nasdaq was up 21 and the s&p 500 ros a fraction. for the month, the nasdaq was the big winn, b now we enter september, a month that's not always friendly to investors. mike santol>>has more. eptember has a well-earned reputation as a tough time for the stock market, but the month doesn't live up to its file every year for under all conditions. 1950, september is the weakest month for stock returns for the slight loss on average and more years down than up, counting just mid-term election years, the history i similarly skewed to the downside. the cause of this turbulence ofu er's end is not entirely clear, but some of the causes are worth consiecring.

in des past, the blame centered on mutual fund managers gressively selling the losing october ead of the fiscal year end, but this factor has diminished with the significance of mutual funds in the markets and the move of many fiscal years to december. another more recentt, culpo slash corporate profit forecast in september after the summer slowdown and revised growth expectations. this factor is far more relevant when companies are struggling than in an earnings boom like the one wve seen th year, and it's worth noting that september's downside bias for avocks is also most pronounced when stocksbeen weaker through the summer. in fact, when the s&p 500 index has been up from april through august as is the case this year, september has averaged a healthy gain. in stronger years, too,ven a wobbly september has tended not to touch off a slide throughfo e th quarter. over the past 20 years when the s&p has been up 5% forhe year to date by labor day, the final four months of the year have

been higher every time by more than an additional 5% on average. >> given that the index is headed into labor day 2018, up by more than 8%. the onset ofte ser this year might seem a bit less fearsome for investors. for nightly business report i'm santoli. let's talk about what might be ahead for stocks with the chief investment strategist at nevine. good to have you with us. you point out throughout the summer whenever there's been bad news or worrisome things for the market it has beenoueracted by good news and good earnings and good news about the economy and gdp growing 4.2%. in september there may be a little bit of a vacuum of good news to offset whatever bad news we that's your point, right? >> yes, tyler, thanks for having me. ifou look back at march and june as comparable periods those were months wh we weren't getting corporate earnings data because itom in in the first

couple of months in the quarter. now that we'reot going to have pretty healthy rises in corporate profit, something else ll fill thatvacuum, whether it's news about trade and whether it's something geopolitically and tha tends to be much less friendly for equity markets. >> also the fed is widely expected to make itsex move on interest rates as we go into this fall. what impact mighahave on the market if any at all because it's been pretty telegraphed by the fed that they will continue hi raise rates. >> we if the fed wasn't going to raise rates in september, weldhought they w say that to the markets already and in all likelihoode'll get a rate hike in september and what is the fed going to say around that rate hike and they revive that for growth or inflation and that account factor that in for the markets and that tells us something about what they think the next couple of qrters will hol for what they might do with rate hikes and if they change that outlook at all, they'll say we'll be hiking rates more than

last quarter and that could be a market impact, as well. >> are we bracing for a sell-off inus september or for more volatility in september? >> i think just more volatility rather than a more market sell-o. still think economic fundamentals are quite strong in the united states are the solid in the united states and you have a prospect of an october in brazil and and that could create volatility in latin america and the emerging markets. argentina raised interest rates overnight to 60% to fight flation and the perceptions that they have following currency themselves. so there are lots of other sources of risk and without reliable, steady good news coming in on the corporate profits it's likely that that bad news will start to impact markets on as, day-to-day basi but we don't think that's the start of a longer term ssell-off. >> where is a long-term investor trying to take cover to weather the volatity that

u're expecting? >> i still think secular growth stocks are the number one place to be in the united states. we're looking at the health care sector, consumerio discrry stocks. we still believe that that story has room to run although th ra valuations have become more expensive and we're looking for room to buy emerging markets anp there's beenlback with their currencies and we're looking for ways to take risks in a prudent way that isn taking too much additional em risk in the portfolio, but when something falls this much without a drop in fundamentals, typically it's a buying portunity for investor who have a long-term outlook. >> brian, have a great long weekend. brayan is with nevine. >> thanks again. >> there was nothing straightforward about the trade talks between the u.s. and canada. the negotiations were tense and there were surprises and in the end, no agreement was reached between the u.s. and its biggest rating partner. the negotiations broke off midday seemingly abruptly and

then came word that the discussions will pick up again ne wk. eamon javers is covering the us.y for it's like a professional ping-pong game. >> run through the events of today. >> there was a wild one today and there was intrigue in the weernoon and ultimately, landed at the end of the day friday with no deal, but they do have an agreent to continue talking between the canadian and the u.s. side here in washington, staing, we are told, on wednesday of next week. we also have this bizarre moment where some off-the-record comments tt the president h made in the oval office to bloomberg news were leaked to a canadian furp. those comments apparently embarrassing to the u.s. side. the president having s d in those off-the-record comments that he wasn't going to make conc asions at all he didn't want to say that publicly because he didn't want to agree to aeal and he didn't want to embarrass the canadian side. at the end of theea day we from chrystia freeland, a top

negotiator working in wasdngton he was asked about the big personalities involved in all of this and here's what she said. >> how can you possibly negotiate with a guy like donald ump who says he's wanot going to give any ground. how can you possibly negotiate with somebody like that. >> my negotiating party isor ambasslighthouser and he's brought good will and good faith to the table. as i also said it will take flexibility on all sides to get to a deal in the end. or the president today he was in north carolina and he laid out some of the consequences potentially for canada if we don't get a deal. here's what he said. >> if we don't mak w a dealh canada, that's just fine, but we'll see how it all works out. i say affectionately we'll just coming tariff those cars in. that's a lot of money coming into the coffers of the united states. >> so, sue, the presi

down a tariff threat to canadian automobiles. big, a big one, a important sector in canada and the negotiators are sensitive about the fate o their autoworkers in all of this. now the question is what happens. the u.s. said thetr adminion has officially notified congress that they're beginning this so-called 90-day clock here to renegotiate nafta and they're not sure if canada will number that deal or out of that deal wh the time comes for something to be signed here in washington, d.c., sue. >> it was veryti inter. chrystia freeland is an extraordinarily adroit carrier of jouavalistsg been a journalist. at one point she was asked does she think the u.s. was negotiating in good faith and there was an unmistakably long pause there. later in the day she seemed to go out of her way to sayyes, the u.s. was negotiating in good faith. >> that might indicate the tensions throughout tday. everything was disrupted this afternoon when w saw that leak

of the off-the-record comment that they made to bloomberg news reporters whether they came from that administration or from some other mechanism and it ended up in a cadian newspaper and it caused a lot of attention to be paid to what was going in washington today. a real hiccup at the end of this tense negotiation and nowe're told they'll punt it until next week. >> eamonjavers, thank y so much, reporting from the white house tonight. >> ford has canceled plans to import a new crossover vehicle from its plant in china. the automaker cites import tariffs that were put into effect last month. the vehicle was expected to replace the ford focus in the u.s. late nexar but the company now says the economics no longer make sense following a 25% tariff. >> themp administration is considering linking capital gains taxes to inflation. now that means the taxpayers could adjus the initial value of an asset for inflation when

selling it, pentially reducing the amount of capital gains tax they would nd to pay. such a move is tantamount to a tax cut for the rich. a similar measure was considered by george h.w. bush, but it was ultimately dropped. the presidentts to ease retirement account rules and h signed an executive order that mould require how minimum distributions f01(k) plans and iras are calculated for people older than 70.5. he also wants to make it easier for small business owners to grep together to prov workers with retirement plans. the white house says high costs cueently discour employers from offering the 401(k) accounts. ft coke is a coffee fix. the dow component is buyin the british coffee chain costa for $5 billion making this coke's biggest brans acquisition in history, but the deal issi r questions and shares of coke fell in trading today. sarah eisen has more on coke's

push into cappuccino. >> coffee is hotnd growing faster than drinks, 6% globally and that is whatoke is after ask it's the retail side of this ield that's raise something question costa has 4,000 stores across 30 countries. it's number one in the uk. so i asked coca-cola ceo james quincy why retail? it's not coca-cola's business or expertise. said, clearly part of the coffee strategy is having stores because they build business and the brand. we are buying a great management team that knows what it's doing in retail and clearly not our core competence, he admits and along wi roasting coffee, what we're bringing. we are bringing global scale and include format of the beverage provider. in the u.s., heay ss they don't want to go toe to toe opening

coffee shops and it's coca-cola's relations with food service and big business. >> beans and bods that they sell in grocery stores. the hotes bever are growing much, much faster, a i guess why they're trying to diversify nd this. i don't understa why they had to buy something. ondon't understand why they had to spend $5 to do it. >> according to jefferies, almost 70% of coke's volumes are sparkle beverage e that's coke, diet coke, sprite, lower growth beverages and that's why coke is ramping up theio portf in higher growth area, sparkle water, tea, coffee. remember, it took s bigke in body armor just a few weeks ago. that was also the logic behind pepsico's recent $3 billion deal for soda stream less than two weeks ago. in fact, these are the biggest deals for both beverage

companies in years showing they're getting aggressive when it comes toro pursuingh and following where the consumer is gog. for "nightly business report" i'marah eisen in new york. time to talk a look at the upgrades and downgrades. electronic arts was downgraded to neutral from buy. the analyst cites the holiday games expected to be release. the price target now $126 and the stock fell $ 2% 3.46. the same analyst at bank of america merrill lynch, busy day for him her cut t rating on activision blizzard to neutral from buy. the analystites increased competition from the popular video game fortnite. ry popular in my house. the price target now 77. the stock fell 2% to 72.10. lululemon's price target was a raised to $1 share at cowen. the analyst cites the company't sales mom and international expansion following its earnings report yesterday. the firm's ring on t stock is outperform.

the stock rose 13% to $154.93. vmware was added to the top cks list at oppenheimer and it's upbeat on the plano execute on its price strategy. the stockell just a fracts.n to $153.tw >> ready, set, hike. the nfl doubles down on its digiltrategy to offset the persistent decline in tv rating. ♪ ♪ ♪ consumer sentiment edged higher this month according to the late report from the university of michigan. consumers upbeat about the job prospects anduture incomes though there is growing concern about rising prices and higher interest rates. >> it is time n for our weekly market monitor who has a list of

stocks that he says are bargain and may also benefit from inflation. joining us is barry james, president and portfolio manager with james investment research. always good to see you,arry. welcome. >> great to be with you. >> let's get right to your cks. you're going basic materials for the first one and you like louisiana-pacific. why? >> well, just from the inflatiot dpoint, we finally hit the fed's target of 2% and we're seeing ls of businesses and the producers saying that prices are rising. so that should help out iner ti prices. they have a specialty product called oriented strand and it's d in all kinds of construction and furniture. the company is cheap and it'sea ask it has very good and growing earnings and the price has been in an uptrend and a pullback rently and tha makes it more attractive and hopefully

it can hold up well if we get this inflation. >> i love it when you say oriented strand. >> let's go to basic materials, sticking to bake materials for $20. steeamics tiptoeing into the steel area. >> that's right. i know it may sound a little dull compared to all of the technology world, but it's really, really cheap and really making money and all these negotiations on tariffs kind of has the price toress just a little bit. it has been helped, i think, bu5 of its sales are in the united states, so it's not affected as much by exports or anything of that nature. so it's doing real well, and i think it's got a good future. >> precious metals next on the list and we have a couple of picks for us. first the eaund the eld. >> two exchange-tdsded f and as we look at that, gold has

year.nothing this it's been buried in the bins of igno and that's generally the case when the dollar is very strong. however, when we see the dollar, if it does start to get a little bit weaker then that should be go for gold and the fact that it's ignored it provides a good ngfety net. >> how are you get ready for the fall, bauery, in terms of portfolio management very quickly. >> yeah. we see that there are near-term potential risks and it is so strong and there's a song investors are singing. if loving you is wrong i don't want to be right and so they keep putting money back in and yoha even see with warren buffett. >> his indicator says t market is really expensive and he's in there buying and that's kind of where everybody's at. have a great, long weekend, good to see you as always. >> the investment research and

to read more of barry's picks, big lots shares take a slide and that's where we begin the market focus and the discount retailer missed earnings and revenue rstimates. >> they had hig transportation and fuel costs which offset stronger same-store sales and full-year guidance and shares fell 3% to 43.05. hca health care said it would buy non-profit hospital system mission health for 1.5 billion. it put additional hospitals ra under the cor umbrella andh hca healt care up 2% on the section to 134.11. >> united continental fees in response to highe fuel costs. the airline said customers can expect to see an increase in ban fees routes to and from north america and the caribbean and central america. united will now charge $30 for the first checked bag and that's up from5 bucks a this follows a similar move by

jetblue. shares ofos united a fraction to $87.42 and investors had their fst chance to react to american outdoor brands, stronger than expected quarterly report which was out after the bellay yeste the parent company of smith & wesson said increased promotions and stronr demand for its new products hped its results and shares took off rising 43% to 14.03. >> football season kicks off next week and the pro season after a tough 2017 season when viewership fell nearly 12%. now the nfl has come up wit new strategy it hives will g a much-needed boost to ratings. julia boorstin has the details. after relying on tv as the o cornerstonf its strategy, the nfl is doublng down digital enabling fooall fans to live stream all in-market and prime time games from any mobile device. fl streaming deals verizon

willenable 400 million phones and tablets to rise for free and the 100onillion ver phone subscribers who were live last year and the games will be available on verizon's s propertih as aol and yahoo and the nfl app and amazon and its twitch service will stream 11 thursday night games. >> our fst goal in digital distribution is just reach and to get to people who may not be in front of a television. i think it remains to be seen if it will drive people back tovi teon. when we do know is when people watch nfl games on smaller ureens, it'sally a stopgap to get to a bigger screen and they want to watch on a bigger screen possible. >> and the nfl hoping to reach a generation of mobile first millennials to get them excited and to transition some of the additionaln viewers to watch tv. the question is whether the strategy helps turn around rtings after last season and nfles declined 12% and the

2016 ratings fell 8% from the prior year. the focus here is not to compensate ad revenue. it is up this year and it's more about continuing to increase the reach of nfl football for anyone who is living exclusively in a digital world. >> to boost engagement, the nfl is working to make ads less intrusive and expanding formats last year including fewer breaks and shongds on a split screen and showing more six-second spots. we'll see how thesees cha impact next thursday's ratings. for "nightly business report," i'm julia boorstin in los angeles. coming up, real estate's new best friend. ♪ ♪

♪ ♪ remember jeff skilling? let me remind you. the former enron ceo release from prison. skilling sentenced to 20 years for his role in one of the biggest corporate fraud cases in history. enron went bankrupt and it was legest in u.s. history. skilling's sentence was reduced to 14 years and he was relocated to a halfway house. >> there are many things toer conshen buying a home. price and location top the llet, but more mials are making decisions based on the needs of their pets. yep, you heard that right. diana olick explains. >> 31-year-old jessica evans lives in washington, d.c. with lucy and kasper. she calls them her fur children. >> i want to have kids one day

i'm not at that point in my life and a lot of millennials are in at same boat, but you still enjoy having something to take care of. >> and taking care of lucy ande kasper buying this house. >> i love living in the downtown area in and it was great. it was very convenient and i didn't have house work and theo thing that was missing was my dog's happiness. >> and she is far from alone. 73% of millennials currently own a pet according to the arican pet products association. that's more than any other demographic and ain who 89% of millennials who bought homes so far this year own a pet according to realtor.com. that has millennials putting their pets' nee front and center in real estate decisions. 79% of pet-owning homebuyers who closed this year said they would pass up an otherwise perfect home if it didn't meet the needs of their pets according to retor.com's survey. jessica knows this firsthand because she's also a real estate agent.

>> they basically want a yard. they really want se outdoor space and that does sometimes mean people moving out of the city even though they'd love to stay in the the challenge of having a lot of stairs can be difficult for people with older pets. having a place to wash your pet a big deal. the proximity to dog-friendly places i you don't have a car and you have a dog and walking to the petsmart or pet store, and that's a big deal. once they buy a home, millennials will put a lot of money into it to upgrade it for their pets. jessica did. >> probably $12,000 on it. >> that $12,000 paid for a higher fence, a pet door and even a renovated basement bathroom. >> i wanted to have -- i wanted her to have her own shower so i ewouldn't have to clean m after washing her in it. >> after all, pets are people, too. >> my dogs do not have their own shower. there's no way.

to read more about diana's story on ourwebsite, you can go to nbr.com. >> and before we go, let's take a final look at the d w onl street. the dow was down 22 points and the nasdaq wasp 21 and that will buy some pet food and the s&p 500 rose a fracmoon. for theh, there you see it, the big winner, look at the nasdaq up nearly 6%. >> i hope my dogs weren't watching that repor >> they'll want that upgraded downstair >> unbelievable. >> have a great weekend, will you? >> and youth too. ks for joining us. i'm sue herera. >> i'm tyler matheson and we'll see you monday for a special labor day edition of "nightly business report."

>> this is "c world news america." >> funding of this presentation is made possible b the freeman foundation, kovler foundation, pursuing solutions for america's neglected needs, and purepoint financial.>> ow do we shape our tomorrow? it starts with a vision. i we see ideal form in our mind, and then we begin to chisel. we strip away everything that