♪ ♪ >> this is "nightly business report" with sue herera and bill griffith. ♪ ♪ investorsdo it, but might think nike just blew it by featuring a controversial athlete in its new ad campaign. here come the boos. wall street's first outlk for 2019 is here and it just might please investors, picking up speed. auto dealers are busy especially if they're selling large suvs and trucks. >> those stories and more tonight on "nightly business report" for tuesday, september 4th. >>en good g, everyone and welcome. bill griffith is off tonight. stocksell on the first d of september trading and we'll have more on that in a minute, but we'll begin tonight with one of the biggest drags on the market today, nike. the shares came under pressure

after thar sport a company signed a multi-year deal with formerfl quarterback colin kaepernick and the next face of nike's 30th anniversary ad campaign and what makes this unusual is the conoversy surrounding kaepernick who took a knee during theio nl anthem in 2016 and nike's longstanding business relationshipith the national football league. shares are nike a up in trading today. sarah eisen has more. >> consumer companies usually try hard to stay out of politics and controversy, but nike just firmly planted itsel at the nter of the culture wars. just days before the launch of football season nike included colin kaepernick in the 30th campaign of just do it. his fe appearing on some west coast billboards and across social media. sources say nike doesn't plan to have him on sses some are reporting, but you could see

clothing product extensions of this ad. the backlash was fierce. boycot nike hash tag was trending all across social media and the stock took a hit, but will it really impact nike's business and speaking to folksh insidecompany, i can tell you that the refresh of this just do it campaign is aimedly squat millennials. nike is trying to communicate what they think is an inspirational message to a younger generation. that's why it featus other fighters across sports like lacy baker, a skateboarder who hasok through gender barriers and shaquem who is an amputee and kaepernick was the only story people were talking about. here are fac behind nike's calculation. two-thirds of nike's wearers are under the age of 34 years old. 45% of its consumers were under 25 years old and there's proof that colin kaepernick and his marketable. last may the nfl controversy was

flaring and despite the fact aethatrnick wasn't on his team, his jersey was in the top 20 sales of players according to nfl.com ahead of cam newton and adrianteon, but no doubt in a polarized country, there say risk here that nik is taking. kaepernick is the face of the protest of the national anthem that president trump has railed against. kaepernick is embroiled for collusion to keep him out of the league. no comment from nfl on nike's move, but the company did just sign a long-termh deal we nfl to outfit the nfl players on the field through028. so it could compliment that relationship and make it a bit more awkward. for "nightly business report," i' sara eisen in new york. >> and the president is now weighing in. in an interview wi the conservative dal conservati daily caller the president said nike was sending, a quote, terrible message and the deal is what this country is all about. so, what happens when a company

like nike starts wading into politics? could the move have a long-lasting negative impact on the brand or not? hexp tore that is dean crutchfeld, he's the brand and crisis management expert with dean crutchfeld and associates. always nice to see you. >> good to be here. >> yeah weigh in on this. what do you think of nike's move. >> he earned $3 million of free advertising is it smart marketg or a dumbdecision? to me this isn't about getting involved in polics and this is about getting involved in a politicallyensitive issue. they're not saying they're democrat or republican, but kaepernick is face of the just do it campaign. is this a positive for nike? i believe it is. >> longer tomoow, but short term expect some waves which we're seeing. >> exactly. millennials is the market they want. they don't want a 60-year-old buying a pair of sneakers. they want a 16-year-old buying a

pair of sneakers, that's clearly it, but also as you look at research, 37 of millennials were against the kneeling of the nfl and it was a sense that the issuh millennials and here ate thing. the younger generation tend to be more open minded and a more flexible and therefore, i think nike knows that this message can resonate across the millennial appetite with this type of marketing. >> how do they handle the pushback? do they say nothing? dohey come out and double down on the campaign? they doubled down. basically, you have to communicate why you're doing this, and what's the strategy behind it. what's your intent behind it and why you're so confident that it's something that sits well with your brand. i think brands are alldbout brurpose and nike is clearly saying we have a brand purpose and these types of individuals exemplify what makes nike great. so i think at end of the day there is some down side. there are going to be peoplecu ing out socks and burning

shoe, but what we will see over the next few days and the next few as it rolls out is a huge groundswell of support for the thmpaign and the reason why nike has don campaign, but this is the test market and we're in iq4. christma coming. why people voted with their feet. this isn't the first time that nike has taken a risk when tiger woods was mired controversy and political controversy and personal controversy. they backed him. >> that's nike style, it's very much about its brand message and i don't want tgo on abo brand, but for nike it's such a powerful, awesome brand that we all want to know and to me it's adiut brand bu and staying relevant in the market and it's about staying valid in the maset and thisomething that's very relevant in terms of it standing in the marketplace. gine that have to i they on u did research on what

the impact might be and expected a stock market reaction and what do you say to those thae when dips the campaign and apologize? i think there's no apology needed here and it's a politicallysi sve issue and even trump himself has backed that up and this is our country. speech andedom of that is what this is about as well and nike is on to something here and it' on t something that's powerful as a platform and it will continue going rward and there are lots of other players bringing into the mix. it's a robust campaign that's got a lot of legs and there will abe lot of play time. >> dean, as always, thank you so much. >>ean crutchfeld with dean crutchfeld associates. >> amazon made history today becoming the second publicly traded u.s. company to ever revalued at $1 million. its shares were tradi before pulling back a bit and it took the online retailer 169 trading

days to grow from $168 billi inanuary to 1 trillion today. apple was the first company to hit the miltone last month. amazon's shares grwent up 1%. it was not enough to lift the broader market. stocks start september with small losses as investors returr to in the long weekend concerned about trade between the u.s. and its key partners. we'll have more on that in just a moment and today the dow jones industrial average fell 12 points to 25,952. the nasdaq was down 18, and the s&p 500 declined a little bit later in the program we'll talk to one prominentarket watch who is looking past the next few months and says next year will be good one for investors. oil prices sawodomet gains in today's session, as it churns through the gulf of mexico. the tropical storm forced offshore oil producers to cut production and there are some concerns thateferies could be impacted.

the national hurricane center said the storm wil likely be upgraded to a hurricane by the time the eye reached landfall near the louisiana-misssippi border. domestic crude settled just under $70 aarl. >> on the eve of the u.s. and canada resuming trade talks, canadian prime minister justin trudeau said that he k alwayw that the discussions would be long and involved, but he also said,quote, no nafta is better than a bad. naf elon has a look at some of the sticking points between the u.s. and its key trading partners. >> the pdsident cance a labor day outing. instead, staying at thee white hous to make phone calls on trade a othernternational issues. >> meanwhile canadian prime minister justin trudeau had calls with labor leaders over the weekend and one of the big sticking points in the talk and it provides dairy farmers. the u.s. wants more access to the market. the u.s. already heavily

subsidizes its own agricultural sector. it launched a trade mitigation package and particularly those includes an, and it the process for settling disputs in the countries and whether this agree hnt shoulde the end date and the administration has three days to produce the textof an agreement countries and the president esn't appear to be budging from the hard line with canada. he tweeted over the holiday weekend that there was no political necessity to keeping cadand nafta. >> these are artificial and at the same time with president trump he appears to willing to do anything and everything including, you know, massive retaliatory tariffs on its allies and i think negotiators need to be mindful of the power of the clock and get things done while they have the opportunity to do so. >> several influential republicans have warned that canada must be a part of any deal and it's congress that gets the final vote on the agreement.

for "nightly business report," i'm elan muish in gton. >> construction spending rhodes slightly in july led by an increase in home building with the publicly funded building of schools and highways. chonomists w construction spending grossly because growth helped support the expansionf the broader economy creating jobs both directly and indirectly. meantime manufacring activity unexpectedly held its highest level in 14. yea according to the institute of supply management, sales of factory made products and output and employment all increased last month, but manufacturers have expressed concerns about cour pre due to rising wages and the impact of tariffs. the auto industry heads into the fall coming off another strong mth o sales as auto showrooms remain

advertising giant wpp warns of squeezed margins and that's where we begin tonight's market focus.me wpp's northcan business was a source of pain as major clients spent less on traditional advertising, causing a key measure of revenue to the company said it was unhappy with the quarter and as a result it plans to launch a strategic review andnvest in restructuring the business. wpp said thateg str comes with the price of weaker 2018 margins. shares of wpp fell nearly 8% to $76.22. >> shares of dunkin brands moved higher on peck is slaspeculatio. coca-cola may have its sights set onn for a potential

deal. on friday, we told you coca-cola inked a $5 billion deal to buy a british coffee chain. shares of dunkin brands rose 4% to76 6. after the bell enterprise software company koopa software said a rise in subscription sales helpedue overall rev grow. the company turned a profit. it landed a deal with the workforce management firm to expand its services. shares were initially higher after hours and they also ended the regession up a fraction to $72 even. so after the bell the cloud raisede company workday its full-year outlook for subscription revenue and its quarterly profit came up short and shares fell after hours and inished the regular day up 1% to 156.69 and aheadf a 52-week high. our market guest tonight is bullish on the marke and one of the first who is predicting it double-d gains for stocks next year.

joining us is the chief u.s. equit strategist credit suisse. good to see you, jonathan. >> good toee you. welcome. >> what will drive markets higher. earnings are good, certainly, but there are those who are in saying it's ge frosty out there. why do you think we have considerably higher to go? i think there are a number of sales here and not only is the economy strong, b the likelihood that the business cycle is going ctinue that's the most important sdming omethd by and large if you don't have a recession and you find the stock market meaningfullyigher and that is the key. on top of that you have an economy whichs in really solid shape and corporate profits are terrific with u.s.pa ces just delivering really good profit growth. >> so let's talk about your targets. they're being called bold and bullish and that certainly is appropriate. you see $33.50 on the s&p 500

and the bader bas index. that's about 15% from current levels. >> right. >> and it's about 1% a month which is the way ithike tk about it and obviously there's volatility on that and that's more or less ine line with trend with what we've seen in the last several years and what i'm saying here is i've wanted to put this forecast out in 2019 out when i did is the trend that we've see is likely to continue and i want people to basically move their focus notn what ll happen this month and the next, but will happen to the next one year to 18 mths and that's a pretty positive view. >> yeah. you do say that the next 16 months might be a littley tri in some markets. how so? what are the risks? >> i think that's key. it's the phrase that people on wall street like to use that the markets climb a wall of worry and it needs something to fret

about in order toropel i forward. what do we have? the federal reserve is tightening interest rates and that's something that has people concerned. i we havelation beginning to pick up which is very typicte n the cycle and we're in the ninth year of the business cycle and that has peopleco erned and mid-term elections and that's going to look at and then you have the issue of trade disputes. the rea question,re is these going to derail what we have right now and and the answer i no. on that note,n jonatha golup, jonathan is with credit suisse. >> college athletes had their day in court and it's all about the money. ♪ ♪ ♪ ♪ ♪ ♪

>> here's a look at what to watch for tomorrow. new m data for theth of august will tell us whether the trade gap continued toe widen from previous month and speaking of trade we reported earlier that canada and the u.s.ilresume their trade talks and executives from facebook and twitter will head to capitol hill to testify before committees on the misuse of their services by foreign operations. n at is what to watch for wednesday. investors put nearly $1 billion into fidelit investments to zero-fee index funds during the first month in operation. experts call the number impressive as we reported the zero-cost funds were the latest salvo in the ongoing price war among assetnganagers. rd, black rock and charles schwab have all been cutting fees on t investmentst attract mostly retail investors.

>> pizza hut is the new official pizza of the nfl. that agreement wasle smonths ago after the nfl and rival papa john's ended their relationship. hutpresident of the pizza said the deal is a perfect fit and is hopeful it will elevate the brand's sp. >> we have big expectations of the nfl partnership and primarily, we want t elevate the fan experience and get customers really, really excited about bringing the nfl and pizza pgether. >> forza hut, football season is a strong time for sales. thes company h its new relationship with the nfl will make those sales even stronger. and speak of sports, college sports is aio multibidollar business as you probably know, and today college athletes are challenging the industry with a lawsuit questioning the ncaa's power to limit their compensation. eric is covering this story for us. good to see you, eric. >> quick break ground on why they brought the lawsuit.

it's two different college athletes that indidually sue the ncaa and it's a broader class action lawsuit and today was the first day of the real trial and the students are saying that the, in c limits every scholarship. so every school it's paying --? whatever you want to calm it. >> regardlessas specific athlete's talent. right. wehould be able to get more thanned brought limit. >> they want so-called op market. >> exactly. >> how would that work?th what doe actually mean? >> one version is every school can pay you whatever they want to pay you or every conference could agree. theseen schoo in the big ten, these ten schools in the eac-10. whatever conferet is, and i know it's not ten anymore and whatever the schools can make it al agree. in our conference you can take lifetime medicals benefd graduate school tuition and you can get straight cash and get

whatever you want as long as all of the schools agree as opposed to right now where that's it. >> that is the ncaa's fans. do you see any softening inth . obviously they'reoing to court about it. the ncaa's stance is you're not employees andnt these are stu athletes and these are colleges and not companies and it's pro-competitiv to keep it this way and it would be anti-competitive to make it a free marketn this case because it would disrupt the current process. >> i'll take the other side of that being a football buff. >> which school? >> notre dame. >> independent. >> that's right. >> so take a look at coach's salaries regardless of which team you're talking about. the enormous amount of money that comes in from college football. some would say that the athletes basically bring in all of those people,ring in all that money to the college.

look, the best athletes go to the best schools. they go to th notre dames because they've got the big coach salaries and the big stadium financing and the great facilities. and the >> the tv, the tv games. >> they've got all of the money anyway, so they're going regardless ofai getting so even if you paid them the best best s would get t student anyway. you could make the argument that they areayg. thanks so much. >> that will do it for us tonight. herera. thanks for joining us. have a great evening. see you tomorrow.

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