this is "nightly business reffrt" with bill grih and sue herera. trade pfight. thsident is widely expected to make good on his promise o more tariffs on imports of chinese goods and investors are getting nervous.ac getting to business. commerce in the carolinas slows to a crawl as flood waters rise and infrastructure is put to the test. media baron. the ceo of salesforce buysga "te ne" becoming the latest tech billionaire to expand his reach far beyondic sil valley. thoseri sto and much more tonight onss "nightly busi report" for this monday, september 17th. and we do bid you a good evenin everybody. the $200 billion tariff threat on imports of chinese goods may be close to becoming a reality.

the white house isd expec to make that announcement this evening which would escalate tensions between the world' largest economies. ylan mui is following the story. what do we know? >> reporr: bill, we're expecting the announcement to come at any moment. they have already put out a statement that appears to reveal some details of the plan includin 10% tariffs that would take effect on september 24th. now that does match some of the reporting that we've done earlier. the group is saying they going to stifle innovation and question whether they arega >> which companies are going to be hurt the most? usually it's the boeings and caterpillars but what about now with the additional tariffs? >> it's incredibly broad based. they feel some 6,000 comments from a industr from individuals on the impact of these tariffs. companies like dell, intel,

apple warrant about the potential impact on some of the products they use to make their goods. you're also hearing retailers like office depot and sears saying that they might have to raise consumer prices. then, of course, manufacturers like cummings and owens corning, they're also sayinghat their supply chains will be disrupted. so the size of thea tariffs that this is veryad b based and almost every industry will be affected. >> ylan, china has vowed to retaliate so where does this leave negotiations between the u.s. and china? >> reporter: sue,od earlier white house economic advisor larry kudlow said presdent trump not satisfied with the state of the talks with china so far, however, he said they remain at the negotiating table. they were waiting for china to comek and discuss these issues with them, however, one senior administration official saying that though the administration is unified,hina has been off of it.

>> ylan mui in washington. long night. thanks. into the close amid those increasing trade tensions. steep lossesn some of the biggest tech companies also dragged down the broader market. the dow jones industrial fell to 26,692. the nasdaq was the hardest hit. it dropped 114 points and the s&p 500 was down 16. and technology stocks are among the biggest laggards during today's down day in the market but, you know, the sector has cleareen leading this bull market higher over the past so.ade or and small caps, which are up 10% this year alone, have aayo a role as well. in fact, some say that group is even more attractive right now given these rising trade tensions globally. gary bradshaw is with usgh to he's portfolio manager. he's joines to talk to us about it. i know you are very much value oriented even with gains

we've seen over the last decade in the small caps. you still feel thaty are of value -- present value right now because of the trade tensions, right? >> well, you're right, bill. the small caps are domestic, but more importantly, they put up fabulous earnings this last quarter. earnings forhe russell 2000, the stocks that it reported have been up 48% this year -- or, excuse me thisuarter that we're in right now and we expect the third quarter for them to be up 36%. >> okay. >> so earnings are drivingsm th l cans at the hodges funds we love the small caps. they traded about 22 times nt year's earnings. growing the way they're growing, we don't think that's too expensive. they're domestic so tariffs don't affect themoo much and we think they'll continue to shine. ni you gave us some names of some of the com that you like and you also make the point there are simply fewer companies that are publicly traded right now so it's kind of a

supply/demand type of thing. one of the stocks you like is ollie's bargain outlet which sounds like a lot of fun to me. why do you like it? >> it's a great retailer, sue. ollie's, they arep a d discount, treasure hunt experience retailer, but they're only ita 22s and they have 250 stores today. we think they could grow to 950 stores. no debt. same store sales up 4. and so a lot of growth in front of this company. they're coming to texas next year. we love that. but there's just a wide variety for them to continue to grow and the consumer loves them because they're hunting for bargains. they're treasure hunting and we like ollie's for theext two or three years. we think it can be a great stock. >> you also like diamondback energy. no i'm curious, do you like

better than you like some of the energy giants in this country'sr wh going on with this? is it a cheap stock? >> we like the small cap energy plays. we recently had the rsv come in and hodges get bought out by concho resources. diondback just bough out a smaller company and they're going to gw cash flow, earnings, production greater than 50% in the permean basin. they're a premiere oil company and we just think they're going to continue t put up positive numbers going forward even with the -- >> i want to sneak in your last pick. is it pronounced conns? conns is based down in the houston area. there's 114. they're a retailer that is primary innd appliances consumer electronics. there's 115 of them.

they're growing them. they just beat the quarter for the ninth quarter in a row, and we think the stock's cheap, sue. they should earn two fifty this year, three fifty next, and on a $35 stock we think we could look out andt could be a $50 stock over the next 18, 24 months. >> very good. very good to see you again. gary bradshaw with hodges capital joining us on the small caps tonight. well, the intensity of florence may be gone, but the carolinas face a new threat. it is flooding. rising wat damaged infrastructure, closed roads and it left the city ofil wngton completely inaccessible for a period of time and shut off power to residents and businesses, something duke energy is working to restore. >>bout 1/3 of our customers here in the carolinas lost power. we serve abo 4 million homes and businesses and with 1.4 eellion customers having impacted, we're pleased with the restoration progress that we've been able to make so far,

especial under such challenging conditions. >> and amid those challenging coitions efforts are underway, as you might imagine, to get business back up and running in that region. contessa brewer is near dillon, south carolina, for us tonight. >> reporter: convoysf power trucks exit off i-95. the interstate closures. then tractor trailers through tiny historic towns. line lumbering down main street. marion clark is leading a group to respond to a train derailment but navigation is ale nge. >> like road closure, you have to wiggle and zig and zag to get around. >> reporter: more than 100ajor roads in north carolina are . clos >> know how to make a u-turn? >> yeah. >> reporter: a real disaster trying to move daster recovery resources into the areas. >> the challenge is monitoring the roadways. water levels are rising inre

certain and going down in others. even though people think there's only two inchesf wat on the roadway, it's hard t tell if the under bed was washed away or part of the roadway was washed away. >> reporter: the economic powerhouse of carolina, the pt of charleston, is moving cargo once again as is the port in georgetown. after sending 6,000 employees home last tuesday, boeing restarted operations with the thirteenth third shift las night. norfolk southern still has rail lines out due t washouts and downed trees and csx had the train derail and it's rerouting others around flood areas. amtrak uses those lines too and shut down passenger service n, irely south of washing d.c. airports up and down the carolina coast line are putting passengers back on to planes with the exception of wilmington and jacksonville, north carolina, plagued by ncellations and a threat to commerce and commodities isn't over. >> the farmers wl be in a lot

of trouble. >> more than 12,000 farms in south carolina are assessing wind damage and watching f flooding that could crush the harvest and soyoneans and co >> the crops can't hold this amount of water for a long period of time. >> is there anything you can do to protect it at ts point? >> pray. >> reporter: the rivers are running at flood stage. many of them won't crest until later this week so the danger is not over, and the difficulty persists moving people andsu lies into the disaster zone. near dillon, south carolina, contessa brewer, "nightlt. business rep from flooding to business disruptions, the economic impact of hurricane florence is now starting to be tallied. steve liesman has more. >> reporter: as the flood waters from hurricane florence continue to rise, so do the costs, in lives lost, homes an communitier hed and tens of billions of economic damage. not expected to crest until tomorrow.

istoric levels will continue to rise and lift the cost of the storm. >> one inc in a home can cause $25,000 worth of damage so what we're seeing here is going to certainly be an extreme event amd policyholders are going to have a lot ofe when they get back to their homes. >> reporter: while charlotte is the biggestity to be hit, it's the 17th largest where harvey hit houston. the weather effects in florence were so widesprea that jpmorgan suggests the way to think of it is the fgdp both states of north and south carolina and that's bigger than houston, smaller than new york which was hit by sandy. it will cause deep pain in the local andnal economies but rarely have much lasting impact on the broader economy. some damages areade up through building and rekoupg spending. hundreds of thousands of cars were rd in hurricane harvey. that prompted a massive rebound

in the sales of cars but they trailed off to a more normal level. other data, hours worked can b distorted. making it difficult for policy makers to suss out the storm. there are ofets and the broader economy tends to absorb the shock especially with growth surging but that's cold comfort by those whose lives wereit inundated the storm surge. and a bit later in our broadcast, a closer look at flood insurance and how t spo gaps in your coverage. in the meantime, it's time to take a lookt some of today's upgrades and downgrades. american express was upgraded t erweight from equal weight from stevens. the analyst says the company is successfullyar monetizing its network. price target $131. it fell to $109.20. master card was raised to buy at goldman sachs. they cited t potenti gain

market share in europe and also opportunities in the biness to business segment. price target $250, that price fell to $216.47. lululemon's performance was raed to outperform. the positive momentum should continue through the second half of this yearnd well into next year. the price target is $200. the stock rose 1% to $155.38. >> twitter's price target was lowered from 21 t23 at moffitt nathanson. the firm i maintains sell rating. the stock fell 4% to 8.86. still ahead, what fedex's results released tonight say about the health of the global economy.

the head of the intearational mon fund says the outlook for the global economy has deteriorated. christine lagarde citesrade tensions and points to signs that growth has peaked in s advanced economies. she described the imf's outlook this way. >> clouds on the horizon have not become lighter but darker. >> many now expect the imf to revise the forecast lower for global growth next month. and certainly one company considered a bellwether for global growth is fed ex. obviously the more packages that are shipped in theory the bter the economy. tonight the company reported results.arterly fedex earned $3.46 a share. that was 35 cents below expectations though. revenue was up 11% from a year agoo about $17 billion but investors were concerned about

expenses, and that sen stock initially lower in after hours trading tonight. leslie picker has more on fed ex's results. >> reporter: fedex is seen as a bellwether f the economy as well as the forthcoming earnings season. because of t ps theyce bets for and against the stock ahead of their quarterly po. while the stocks sold off in after hours trading, analysts mpy the y's forecast is what investors should be paying attention to. fedex raised its guidance 1 by cents to 17.20 to $17.80. much of that range surpassed expectations of $17.32. some sol on earnings missing expresseds and they continued confidence in the economy and ability to execute. the company also says that the tax reform has benefitted their ability to pay their workers more. for "nightly busimss report" leslie picker. let's turn to donald

broughton and what the numbers may be telling us about the health of the global he is managing partner at broughton capital. welcome. nice to have you tonight. >> pleasure to be here. >> even though wall street may be a little disappointed with some of the components of the earnings report, you make the point tha this is the quintessential american company in the right place at the right time, correct? >> absolutely. absolutely. you know, everything -- time you order something from amazon or any other etailor, odds are fedex will be one deliver it. what's interesting in this quarter is not only washe volume of express u.s. and globally up 5%, but the average weight per package was up 6%, which means people are paying to express shipven heavier items. that's a bullish sign for the economy. >> but their expenses have been ecing up, and for both fedex and ups, elly as we get closer to the holiday shopping season,

both havetruggled to keep up with the incredible number of packages that are sent ding the holidays and they try and beef up every year even more. isn't that a headwindth for ? >> well, it's a headwind, but i don't think it's quite fai to characterize it as struggles. coasistently over the five or six years fedex has madese ice standards and ups has failed to make service fedex has made a very, very aggressive multi-billion dollar, multi-year investment in technology, in expanded sortation, oug tee mated sortation. more fuel efficient equipment, you name it across the board and that's paid off to meet thesu e of volume and they've been able to book better >> we talked a lot in the program tonight aut trade tensions and the chairman of fedex and ceo fred smith is warning against protectionist

trade policies. how vulnerable are they to a potential trade war or the tariffsin that are levied? >> there's nothing in the current volume that suggests that all t saber-rattling about tariffs has produced any real chan, any material change in trade. however, the ceo andnd f of fed ex is exactly right, that a trade war would be detrimental to everyone'sno e and detrimental to everyone's prosperi. i think he's both correct and it's just the right thing to do to be very vocal about why it would hurt everyone.ex fend just globally the economy. >> on that note, we'll leave it there, don. don broughton with broughton capital. sales disappoi oracle. the enterprise software giant topped profit estimates that said weaker growth causedve

e to miss the mark. the company also announced a $12 billion stock buy bacwe as . shares initially fell in after hours trading. it finished the regular session down a tick at$49.18. the department of justice has given the green light to cigna's $52 billion acquisitions of exp scripts. the company said they now expect that deal to close by ohe end the year. cigna shares rose by1% shares of express scripts were higher by t4%. >> treatment intended to revent migraines has now won approval from thefda. the therapy is viewed as a crucialource of revenue in the generic drug maker's turn around. the shares were un more t 2.5% to $23.43. the cloud software company nutanex saw it come under pressure after google sd they

would launch a rifle service. shares of nutanex plunged 11 to $46.43. alphabet shares were off 1.5% to $1,159.83. curity software company semantexas gotten a deal to add more members to the board. they will selectn ditional member after the company's board meeting. the shares fell 1% to 1980. ou hurricane florence result of course in billions of dollars of insured losses according to the consumer on of america. most of those losses will be filed under the national flood insurance b program, many residents in affected areas are not adequately insured and at, as usual, has homeowners across the country wondering if they have enough coverage. sharon epp eperepperson is here

about flood insurance. this reminds me of earthquake insurance in california. even if you can get it, it's expensive, isn't it? >> very expensive. and a lot of people are not adequately insured. ederation of america believes that one in four families in north carolina who have flood damage and two f out ofe of those who are in south carolina who have flood damage do not have adequate flood damage to cover any of their losses. l they'rking at potentially 100,000 claims for flood insurance. talking about $7 bilhe cost of that. >> right. >> then when you look at insurance claimsor wind damage, there could be over 70,000 of those claims at a cost of $3 billion or more. >> now flood insurance is different from homeowner's insurance. a lot of people also mistakenly think they're covered for a flood under homeowner's insurance and that's not the case. >> that's not the case. that's a big mistake. even if you have a homeowner's policy because you have a mortgage, you areed not cov for flood damage. you may be covered for wind

amage, but you also may have a deductible that's higher than you expect for that but it will cover something like a tree falling on your h because of that damage. with flood insurance though, that is something ahat is federal program and that is something that you get through the national floodnsurance program and when you're looking at that you want to get it from an insurance agent. that sells and the average annual premium is 600, $700,000. you have to renew for every year. people think they have to be in a high risk zone to get that flood insurance or need that flo insurance. >> if you don't have it do you rely on fema? >> here's what's veryto importa know. 1 inch of flood water can result damage. 0 of >> oh, my goodness. >> and some people who do not live in a hh risk area, i'm not saying the woman sitting across from oe isn't one them, but she is. you don't have to live in a high risk area. you need to find out what youri potential could be if you're in a low or moderate

area, it's important to get flood insurance and contact the insuranc o agent and findut about it. >> sharon epperson joining us tonight. coming up, "time magazine" finds us at the center of the new philanthropy "me magazine" enters a new era. the storied publication was sold and the new owner is well known to invesrs and heavy weight in silicon valley. robert frank has the details. >> reporter: it is the new philanthropy. tech billionaires buying upme story prina names, not just for profits but for influence and preserving big names in .journali salesforce ceo mark benioff

saying he and his wife lynn are buying "time magazine" for $190 million. it will not be part of salesforce and they promise not to be part of the editorial decision. he's worth $6 billion. he tweeted, the power of time has always been in the unique story telling of the people and issues that affect us all. we a have deep respect for the organization and are honored to be stewards of this iconic brand. it was a big price at a time when printre publications fading fast. the seller was meredith corporation which last year took over time, inc., for point be point 8 billion and has since put up "time" magazine, money, "sports illustrated" for sale. the deals for the other magazines are in the future. the new breed of press barons is less like citizen kane.

the wife of steve jobs took over the atlantic magazine last year and added reporters and bureaus as part of what it calls a radical expansion. the washington post has been thriving after amazon ceo jeff bezos bought it in 2013 for $250 billion. dr. patrick sun chun bough the "l.a. times" this year. as bezos said when he took over "the post," quote, we're not trying to mak money, we think this is important. they want a bigger voice. benioff has shied away from criticizing the president b he supports liberal policies when it comes to gay rights and gender. equali this could make him more of a target for the president. president trump has criticized time for negive coverage but praised the magazine in 2016 when they named him person of the year. for "nightly business report," i'm robert frank. before we go, a quick update on our top story etonight. hite house has released

details of the new tariffs on chinese impororth approximately $200 billion. the tariffs willto into eff september 24th. the rate will start at 10% and go up to 25% by the end of the year. about 300 product categories were removed from the original list. the administration says it remains open to negotiations with china. we'll see if they answer these now. >> ongoing story. that does it for "nightly business report." i'm sue herera. thanks for joining us. >> i'm bill griffeth. have a, wonderful eveni everybody. we'll see you tomorrow.

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