this is "nightly business rt re with sue herrera and bill griffith. >> trade and tech, two things that have mattered to the market. but a third issue is taking shape that could make it harder foim stocks to hit all highs. florence bringing with it hechby rain dangerous storm surge. >> the amount of money available for home own hs to tap reached a record $6 trillion. those stories and much more tonight on ightly business report" good evening everyone and welcome. investors were reminded once again what mattered most to the rket, trade. stocks took a dip when reportss

aced that the trump wanted to move ahead with his threat to impose tariffs on $300 billion worth of chinese imports. that remained the focus, even as they kept an eye on the guilty plea by former campaign chairman, paul manafort.e dow jones industrial average rose eight points. the nasdaq fell three and the sp 500 -- >> we started the d with markets just below historic were it looked like we going to get there until more tariff stories hit the wire. he was telling advisors to proceed with his reat, on top of the 50 billion already in effect. this hasbecome a fact of life for stk and tariff watchers. markets moved up when trade isputes look like they'

getting resolved and they get worse when it looks like more tariffs are come canning when market leade like semiuncan ducters like apple or social media stock falters, the market falters because so many momentum players are in that space. there are signs it may be s.tting tougher for the markets to push the new after being market leaders earlier the year,anks have done nothing for months. the difference is the two-year treasury and longer data like the 10-year have been flat or declining, making it tougher for banks to make money. the other iome for banks is loans has been oddly enemic. ewat's a bought of a problem. at theork stock exchange. >> and interestingly thearket has gradually taken on a more defsive tone.

here whether that's sending a message to investors. >> the major stock indexers are on record highs. and yet a close can look belo the indexes show as pronounced defensive tone to the market this summer, creating a bit of confusion over the market's message. since june the leading s&p 500 sectors typically do well in slow economy or when investors are seeking stability. and with the lowest hirs oracle volatility has out performed by seven percentage points over the past three months. the interpretation va this patteres. while defensive leadership is often a charactersic of a mket nearing a peek and downturn, there are few signs to support this scenario. perhaps it simply reflects that 10-year treasury bond yields

efell a bit. global markets have also been weak, in part on trade war fears and the strong u.s. dollar. this could have pushed investors to less aggressive sectors too. the question is whether this has been a simple interlude,ith whilav as industrial sectorsor a pull back. in the past week the u.s. dolla has dipped. trrs the 10-year treasury is makingnother run and global equity markets have endured sharp rebounds. many key trade issues remain unresolved. t butre's at least a chance they'll take another turn on of nse as the year enters this final quarter. >> tropical storm florence is poun deadly force.nas with though down graded, it remain as huge and sw moving storm.

estimates range from aboutbi $5 ion to 9 billion. we have two reports. in myrtle beach, south carolina. bu we begin with jackdy angelus bhoo spent the day in the hurricane winds and rain in carolina beach, north carolina. >> reporter: it took some time for hurricane florence to arrive on the coast ofin north car but making her way here this morning around 7:15 a.m., she came with a fury. >> you're going to have a hard time finng a north carolinaa nerks that won't be effected in some kind of way. >> reporter: in some places gusts measuring close to 100 miles per hour. unrelenting rain and deadly flash flooding. like the small city of newburn, north carolina flanked by two rivers, battered by torrential pour. somef roads under 10-feet water.

with 200 already moved to safety, 150 residents stranded in cars, atticnd roofs desperately waiting for emergency rtrespauntders to es them to shelter. >> i've never been so e terrifi ire life. it was terrifying just wonderin at's going on and where the water's going to go and how we're going to get out and if we were going to get tiapped in the c have to go on the roof. >> reporter: downed power lines causing massive outages. offi als say restoration cou take weeks. by late friday afternoon the rection of florence's winds were shifting away from newburn and heading south. but just how long hurricane florence will linger and how much damage it will cause has many fearing is yet to come. for "nightly business recarolina

business report, north carolina. >> continues our coverage from myrtle beach. >> reporter: the effects of urricane florence arrive hours after it first makes land fall here in myrtle beach, north carolina. with flash flood warnings and warnings about storm surge. the rain incessant. the national weather service says it'marathon, not sprint. tropical wind force conditions through saturday. severe storms and rain through sunday and rivers aren't expect to crest until tuesday. porous if they crest at between 18 and 24 feet there's a possibilityhey could flood i 95 and everyone near those rivers would be in danger. tourism accounts for $21 billion in south carolina. one outf every 10 jobs depends

on thoseom visitors king here and spend thing dollars. so how quick it gets back up and operating a the severe weather will be crucial to the economic livelihood of this place. they're depending oon the dunes to help from the storm surge. the question is how bad will itf get and how long? in myrtle beach, south carolina, >> to the economy. whereresales posted the -- they edged up .1% in august following a surge in. they say spending overall is still strong. as you know we've been marking the 10th anniversary o the financial crisis all this week and a lot has changedia finay and economically over the last decade, especially in the housing market back then prices cratered and drpaults

rose s. they're once again reaping the rewards of rising home values. >> reporter: as home values ntinue to rise, so does the amount of home equity available for home owners to tap. u.s. home owners were sitting on over $6 trillion of tapable home equity. it's the amount most lders will allow borrowers to tap out. they gaid $636 billion in the first half of 2018, pushing the total amount to nearly three times as much equity as in 2012. home own oer k can gnaw now it get to cash -- on average,at about $138,000. home owners with drew about 65

billion collectively in the second quarter of this year, the as down frum from a year ago. it's not increasing as much as one might imagine given the potential wind fall. part of theso r is home owners today remember what happened to the hecsingd a decade ago and have no desire to treat their homes like atms. i'm in washington. and to read more about home owner equity, you can head to our website. and both took a beating 10 years ag but have people changed the way they save for their later years? president of a subsidiary of p pack glad stone bank joins tuse talk about that.yo griet se from your perspective what would you say is t biggest change in how people approach their

retirement>> savings? think the biggest change is they're much more realistic about how they make their decisions. theeality is they've lived through it one time. they recognize there are no guarantees and they really focus on making a difference for themselves. they save more, take less risk. really look att the longer term means to them and the fact that they don't want to revisit what happened in 2008.>> know people notoriously are sometimes too conservative in their retirement accounts overall. they don't put enough equity in there. but even now you realize the value of cas after what we went through 10 years ago, right? >> absolutely. that was one of our ahawes is cash can be really important to help people sleep at night and

to cushion the shock downturns. you have to make sure you that cash reserve set aside. >> also you say investors are worried about the roll ba. of regulati why? >> i think aot of investers believe that was t real reason for the crisis in 2008. was the rol back -- too much roll back of federal regulation. so they' not as worried about the ups and downs in the market as they are about approaching o something happening that could take us back to that. >>ee we've itemizing all week things that could cause the financial crisis -- another financial crisis to return. and this is something investors deal with all the time. but your message is stay t course can, keep a strategy in place no matter what's going on, right? >> absolutely. it it's critical that you hav an

overall target, asset allocation, diversification. those magic words to make sure that you stay in line with your longerm goals. >> what are you hearing from your clien about how they feel about thisarket? >> a lot of people -- you have two sides. you have the side tt has flipped the switch instead of think thing world's falling y apart, t think the market's going to go up forever. they want to increase risk. zhou the flip side are the people that say sooner or later the other shoe is going to drop. they are a m little concerned and want to make sure they have the cash reserve they need are a little mtie conser in their investing strategy. >> on that note, to see you again. >> time to take a look at some of today's upgrades and down

grades. we begin with costco. out perform at wells fargo. after a strong run, the analyst t ere says this may be as good as it gets for thaock. price target $235 and that's where the stock essentially closed at $235.38 and dunk brands, they say the coffee and chain turn around is reflected in that price. the stock fell 2% to $74.27. >> thes-corpas upgraded to out perform. the analysts sites that there operating m vans.that company's the target is $106. the stock fell a fraction to $91.17. and it was upgraded from city. they sthiet potential for margin and earnings expansion. the price target is 40 and it

rose fractionally t $45.27 >> still ahead investing in reale state without buying a home.mo our marketor will show you how. e overnor of massachusetts has declared a state of emergency followi dozens of explosions outside of boston which killed one person and caused thousands to be evacuated from communities. there are reports i was due to over pressurization of a gas main runy columbia gas a subsidiary of nigh source. that sent shares of noit source lower.

>> ups wants to make more money on its shipping and that's where we begin tonight's market focus. company's on shipments between businesses. that seems to be more profitable gment for them. a part of a over hall that focuses on technology. >> we're looking for technology to be the fuel to this because there's so opportunities we ecan modernize andexver the four years or so. and put the benefits will be coming throughout that entire process. >> ups shares were up half a percent to 120. they saw global demands slow for itmachine last month. weaker revenue growth for world de sales. but momentum here in north america did remain in tact.

amc entertainment says it has received a $600 million investment from silver lake partners. they will also appoint a newer meo the movie theater operator's board. they're going tose the deals to buy back shares owned by the current majority share holder, the chinese conglomerate. they were to 1980. >> the owner of victoria secret doors ofas close thing the luxury retailer this january after 123 years of business. due to disappoin.ng sales gr l-brand says it will focus now on its brands with greater potential. they rose 5%. same-store sales improved to dave and buster helping over earnings to top -- shares

finished up nearly 8% to $62.05 and revlon shares got lift after pearlman bought 20,000 shares. the value was over $400,000. they 8% to 2285. >> he connues to find opportunities in real estate investment. this month he liked at that time regency centers,ot of which has risen about 4% invitation homes which is about 5% higmer over that the portfolio manager returns to us tonight. good to seyou. thanks for joining us tonight. let me start with one of oyour picks this time around. simon property group, famous for their retail holding in malls and outlet centers.

they've been closing, malls have en closing. how risky is this investment right now? >> well, our thesis is actuly the rebounded in performance in 2018 because the reality ishat retail is not all going to go get shut down and so bricks and mortar store have turned.ar thessound investments. this is high quality portfolio gional malls and that should persist in an environment where ers are choosey bout their locations. >> some say prolojis. >> they own about 750 million square feet ofarehouse space where it's been really boo you get a broad industrial portfolio of footage but a some is last touch and that should be good.hi >> fin your thought.

>> and they also completed the a acquisition arge rival. so thatar should benefit holders as well. >> you're sticking with vacation homes. this was famously started by the black stone group. they bought o o a lot the homes under water and rented them out. is this still a viable business for you right now? w yep. we're still stickih this pick. intation owns 82,000 homes in fast growing markets in the united states. the are areas where house hold formation has out paced the national average but there hasn't beene enough of affordable housings been built. >> talk to me about interests raich are edging higher. how does that effect your picks as it continues to take awayod accoion? >> so the fed's raising rates because the economy's doing

well. we're approaching fullme empl and they're concerned about inflation. as the economy does well, the buildings are full and the landlords have pricing. two f you do havefl ion, construction cost cans going up and so that curtai the competitive supplyin cinto the marketplace. i think that's a misunderstood dynamic. >> good to see you again. thanks for joining us tonight. >> great. thanks for having me. >> and you can read more about his picks on our website, nbr.com. >> i'm kate rogers in twins burg, ohio. we'll tell youhy there's a huge labor shortage and what ie comp like this are doing to fill the gap.

even though amazon is in the news a lot, we don't often hear from its founder a ceo but last yearbezos described what it's like to be the world's wealthiest man. >> i would ruchher if they said inventor, jeff bezos, father jeff bezos. those things are much more meaningful to me. if you look at the financial success of amazon, thetock. i own 16% of amazon. amazon's worth roughly a trillion dollars. that means what weave built over 20 years, we have built $840 billion of wealth for other people. >> as you know shares amazon

have been on a tremendous run, advancing about 68% since january 31st. companies are going to new lengths to find workers and that's not anasy task, especially in the manufacturing sector, which is not only in s.ed of employees, but highly skilled employee in twinsburgh, ohio. >> reporter: modern manufacturing is sleek, clean and tenology driven. nowhere is that truer than the rockwell automation plant in twins burg, ohio. they build automation park from everyone to ford toifieser. finding skilled workers can be a challenge. >> we can bring people in with no skills, develop them to have certification allow them to grow in their career. >> reporter: despite the

technology and reliance on machines, they need people to run them and looking to hire nearly 150 million workers in manufacturing. >> people are in fact our most valuable asset and sot's people working in close concert with technology but still using what people do best, using theie inity and their decision making skills to be able to add additional productivity on top of the basic technology. >> reporter: although there's ongeing trade negotiations, since the great recession more than 1 million have been hired in manufacturing roles but an additional 500,000 workers are still needed. companies a companies aan cos are competing by offering generous benefits on day one. filling those jobs isn't just an issue here at rockwell but industry wide.

it's been one of the t three issues, the need of a skilled work forcehe and need to round that skilled need and not being able to findhe workers has been top three concerns for the last seven years. >> reporter: once companies find the right employees, t nyd constant training to keep up with changing technology. >> making sure we provide new emoyees with t job they came on fweerd ard to do b soon after to beable to provide them with the crossin train their jobs a doable. but we have emplee whose are flexible and willing to learn new skills so that they can have long-term careers with organization. >> reporter: that makes for more than just a job for teen lead taylor williams. ea that means a lot to me. they taught mership skills, time management skills

rid collaboration. >> reporter: twins, ohio. and one final look at the day on wall street. not much movement. the dow rose just 8 points. the nasdaq fell three. the s&p eked out a gain to make it five straight up days this week. >> that will do it for this nightly edition of "nightly business report." >> have a great weekend. see you next monday. ♪

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