>> announcer: this is nightlyne busi report with bill griffeth andue herera. getting close. the do you nears a n high as investors sentiment rises and trade concerns take a back seat. bringing up sales, it's not even autumn yet but already forecasts for holiday speeing spreading cheer. smoking hot, money is pouring into the marijuana stocks. but will today's hype be tomorrow's buzz kill? those stories and more ton on nightly business report for wednesday, september 19th. and we do bid you goo evenineverybody. and welcome. after two days of decent gains, the dow finds itself close to all-time highs. the financial sector led the way higher todayetting a lift from the continued rice in interest

rates. tech stocks did n participate in the rally. giants like microsoft and amazoe traded here are the closing numbers for this day. the dowy advanced 158 points to close at 26405. the ndaq fell by 6. the s&p added 3. mike santelli looks at the dow's move toward new highs. >> it's a sign that investors are coming to termsith the impact of the tariff wars. or simply believe the u.s. economy and american companies are strong eitugh totand any trade pressures. after a riffly two-day rally the dow jones industrial average pulled within one% of the all-time high of 26616 set eight ago.hs the latest stage of the advance has been led by shares of global and industrial stocks such as boeing andatpillar exactly the ones considered most vulnerable on the chinese tariffs. the record high on the broader helped in recent gains by the

huge tech stock, the dow was the index hardestest hit by ongoing worries over the effect of trade skirmishes on u.s. manufacturing exports. analyst see only a potential drag on orderings and earnings as a result of the $200 maiion in chinese kborpts official this week. stock markets in asia unzed indicating that they already priced in the tariff rtiks. me a rapid rise in treys treasury yields, another factoro that seemedpook the markets earlier andontributed to the 10% correction in february is linewise taken in stride. the 10-year yield climbed above 3% this week as the federal reserve prepares to lift r interees next week and perhaps again in december. this relief rally supporting owes a lot to the consistently strong u.s. ecomic data and continued expect aches foss are 20% earnings growth for a third quarnr. the questor investors now, as the dow nears a full

recovery, is whether the economic tail winds carry the market into 2019 as the effect of the u.s. tax cut wanes and interest rates march high are. let's turn to the bull and ht for r guests ton opposing views on this market. jason is the head of america's asset allocation at ubs gltbal management. he says the market has more room to r o. th bear is the at vilry and company and who sees risks ahe for t market. welcome nice to have you with us. jason, i think mike santelli eresting points at the end of the report, rising ratest valuatiot seem kind of rich by many, many standards. y do you think that the mathematic has more room to run? >> it'suite simple it comes down to economic fundamentals. as youto alluded the growth in u.s. is solid, the moment ultimate is solid. no reason to expect that to

diminish a time soon. without sign of recession 12 ion risks in the next months it's hard to see the bull market ending. it may not go high as quickly but the fundamentals are supportive. >> lamar bank of america said the great deal bull is dead, that we should expect a bear att some p and in part because the fed is raising rates. there is that long-held feeling that the fed lowering rates over the last decade is responsible for the gatrally. now that they are reversing course, the stock market has t do the same. does that have a feeling of the same that you have for in bear market right now coming do you feel? >> sure. i do think that's one of the catalysts that we are concerned about. if you look at the fact that over the last several years what we have seen as investors fleeing bonds because therenos ield there. and buying these high dividend paying stocks. in fact making some of these very sleepy, slow-growth stocks while they outperform the faster growing peers.

and for a while you know that -- fr our perspective tha didn't make sense. but you know if you are sitting money rying to make some for your retirement and you -- the treasurie p areing 2% you got to find the yield somewhere. i think we are a little concerned that there is a real reversal oheed trade and people move back to bonds. >> jason one of the things you watch is the bull market monitor which is correlated to economic expansio there are those who would push back on that and say if you look at history just because the economy is good doesn't always mean that the stock market is going to be good. what's your response to that. >> it's true that therr ation between economic growth and the stock market is low on a year to year basis. but if youre worried abo the bull market ending or bear market starting t it's hard have that happen unless there is recession opinion at economic fundamentals indicate that's not case. growth is good and likely to continue. sing interest rates are a concern but by historical measures and relative to stesngth of the economy int

rates are lie roe and the fed raises rates and that will become a concern. the is a concern late nextier and probably 2020 there is room to continue onefore those become material risks for the bull market. >> what would you buy he, jason? what's taking us higher? >> so the performance i think is interesting. financials did well. tech didn't. we've been of the view thatle value stocks should perform well in the environment of good growth rising rates and inflation. if this continues, and if the fear that kind of growth slowdown because of trade concerns haveted that should be an environment that would support value stocks likefi ncials, like energy, that's one area we would like to buy. >> i guess the same the other side of the coin for you, lamar, how would you hedge the b if indeed we are going into a more negative cycle for e stock market? >> so there is -- there is denitely securities you can buy individual names like we buy individual stocks that might actually perform better in a rising interest rate

environment. one of the ones we've been buying is progressive.it that's ation where rising interest rates actually help them to dor betith their invested assets. so there are securities where you can -- where you can ge nature the risk zwrasen lamar thk you for joining us for the >>ll/bear debate tonight. bill? elsewhere in other news today the head of the chamber of commerce said today that the white house can still avoid an all-out global trade war at this point. the business group called it the biggest threat facing the economy right now. and it's urging the administration to sale a trilateral nafta deal and make progress wh europe and its trade issues. it also wants the u.s. to with china rather than resorting to trade retaliation. but the relationship between the u.s. and china may already be starting to sour. in an interview with the chinese publication alibaba jack ma backed down from a promise to bring 1 million jobs to the u.s., siting the ongoing trade n

conflicts bet the u.s. and china. ma said, quote, the promise was made on the premises o friendly u.s./china ptnership and rational trade recommendations. the premises no longer exists today. and so our promise can't be lfilled, end quote. and in fact today china's cond in command had words with o about the rice of protectionism in some parts of the world. yunis yoon is in beijing for us tonight. premiere r: kpl's spoke at the world economic forum in the port city today he didn't directly address the escalating trade war with the united states or even mention president trump's name. instead, he referenced concerns of rising protectionism and repeated china's promises to open up the economy a give foreign investors fair treatment. on the currency, lei said china wouldn't actively weaken the yuan to help exporters or gauge in competitive currency

devaluation but keep it stable. what waslso missing in the speech was recognition of china's contribution to the risesing protectionismth i don' ink trading partners. the stayed media had a strident response saying china will outlast the tariff war emerge ronger and not afraid of president trump's what theyxt called ereme measures. one commentary in the communist party people's dailyrgued that president trump's trade action doesn't necessarily impede a' ch own economic agenda. the people's daily said china will instead use the trade dispute as an opportunity toac re imports, promote localization, or develop export-oriented advanced manucturing. what often gets lost in who wins or lose as trade war is that a big part of mc's made in china 2025 strategy isel to d home-grown technologies so china foreign less on technology and other industries. so that's what the he is piece is thighlighting,t mccould be better off in the long run because it wants to develop its

own technologies of the future. for nightly business report, beijing. in the meantime trade tal with canada resumed in washington. talks that u.s. officials wants to see completed by the end of the month. elon muy has more. >> reporter: top trade foernls from the u.s. and canada are back in washington hoping to nail down a deal on nafta.da ca's foreign minister told reporters that the talks have been constructive but more work needs to be done. >> we are a countryhat is good at finding compromises. lyd that's a challenge our negotiators certa demonstrate. at the same time, our core objective today -- andenhis has he case from the ding -- is to defend the national interests. hat is what we are going to continue today. >> october 1st is the deadline for negotiators to produce the written text of a formal deal and it's unclear if they will

ll that off if they don't reach an agreement in principal which by the end of the we can.n the dea is designed to give congress plenty of time to review the deal. lawmakers must vote to accept any trade agreement. and some are getting antsy. congressman steve scalise a member of gop leadership warned lawmakers will not short circuit andopen and transparent accountable process. if negotiators can't reach a deal, he said, congress willic have no c but to consider other options. but when it comes to china, congress is taking a back seat p as president turns up the heat with new tariffs on the country's exports. d nearly aen bills have been introduced over the past few months to rein in president trump's trade powersir by reg more consultation with congress. none of those bills have gotten very far, however, leaving one republican senator saying, he feels like a helpless bystander. for nightly business report, washington. >> time to look now at some of the upgrades and downgrades.

starting with int the price target was cut to 50 from $56 at morgan stanley. the analyst siting ongoing delays at one of the company'ss proc. but the firm did maintain its equal weight on theeq stock. l rating shares of the dow component up 5 cents to $46.15. guggenheim raisedcehe p target on netflix to $420 from 360. analyst cited the growth opportunity in ind in particular. the firm maintained its buy rating. stocks however felio a fra to 366.96 today. and etrade wasedupgr to buy from hold at jefferiys the analyst says thats etrade a takeover candidate. he says the valuation is a o. attractive price target, $65. that stock rose more than 3% today to $55.78. and still ahd, why retailers have $era 1 trillion reasons to rejoice this who will tai season.

european regulators want to know more about how amazon uses its data. the competition commissioner launched a preliminary look whether amazon uses information from small retailers to help increase its own sales. >> it is very early data. and this anti-trust investigation into amazon's business practices. we are gathering information on e have sentand quite a number of questionnarres tot participants in order to understand this issuen full. >> the european union recently fined alphabet's google for allegedly abusing the dominance of its search engine and droid

erating systems to favor its services. the decision googlepe s. meanwhile amazon will take a larger chuck of the digital ad grket. accordo a new study the company is on track to be number 3 in that category behind google and facebook. amazon is projected toake in more than $4.5 billion in digital ad revenue thankst to ng organic growth and accounting changes. and amazon may be one of the many winners this holiday shopping season as consumers get ready to open up wallets. courtney reagan breaks down the spending forecast. >> reporter: less t 100 days to go until christmas a it's looking like a joly season for retail pl various forecasts from retail consultant gup predict holiday sales grown between 3 and 5.5%. deloin estimates a t of $1.1 trillion. online sales expectsed to grow 16 and 22% with ecommerce making

up as mh as 20% of holiday spending. the forecasts are robust compared to the historical average and because it representsolid growth on top of last year's strong season. e economists calculating the forecasts say strong consumer sentimt, low unemployment and stable savings rates are overpowering risks for now. but a significant decline in the stock market or a higher prices from new tariffs could change the outlooks from being as ros as santa's cheeks. more nightly business repor courtney reagan. let's turn to deloit for more on the holiday spendingre st, the u.s. retail leader with his firm's retail andpr distributiontice, rod thanks for joining us. >> thanks for having plea. >> you're a popular guy with the forecast here. you know, we talked in the past bling to ailers scr find a way to go after amazon with the onl epractice. but i guess they've found a balance and they are getting

good demand this year. that's the message you put out today, right. >> absolutely. we hope so. if youdaook at the fntals with the savings rate up, stable, we believe it's going t really translate into a great holiday season. >> are there risks to that? i mean there is a lot going on in washington. we have a possible trade warhi with. does the consumer basically put that aside and they' good about the economy and they continue to spend? >> yeah, i think the consumer has gottensed to a lot of the noise coming out of washington. as a result the consumer looks at their own pocketbook. understands where they are and they use that as a gauge to determin how much they are spending. we think the zurm will continue to be excited about the holiday. >> are their categories you like, whether apparel or technology or whatever it is? >> you know, there is a couple i think this that usuallyo well in the up economy. luxury does well as an overall grouping. jewelry et cetera ticked up. technologyinly if we have

new innovations do well in the season. everybody wants to buy apparelr for whateeason over the holidays. all the considerings will do well. >> you ow, one of thhings i've noticed, because i do this every year, i wait take a lo and the have to express the gift for christmas. but a lot of the retailers it seems to me have gotten very good at anticipating people like me, the last minuteshopper. and that helps their bottom line >> itdoes. and being able to shorten the windows fps delivery h the ability to meet the demand. i like you find myself rambling at the last minute. being able to meet the promised ship dates are important to maku sureet it by the holiday. >> whether be winners what about losers anybody you think will lag or struggle. >> if you don't have very specific value proposition for the consumer you are always goingo struggle. what we find is that when you have unique product,istinctive product or if trading on price, both ends of the spectrums have

done well. 's the businesses that are stuck in the middle that don't have the identity thattruggle over the holiday. >> rod, good to see you i would say to both you and sue it's never too early to start shopping. >>othoung. >> it every year. profits stall at the used car seller copart. and that's where we begin tonight's market focus. the online auction company toppedevenue estimates but said the disaping earnings were due to costs associated with the hurricane harvey. copart said it spent nrly $80 million on temporary storage facilities over-the-wages and employee lodging. the shares skidded to 55.58. goldman sachs is reportedly nearing a deal to sell theimon ach which sells complex investment products. the "wall streetal" says a number of rival banks including jp morgan and wells fargo are indvance talks with goldman about making investments in that business. shares oos goldman sachs nearly 3% to 235.58.

drug maker crisp therapeutics says it's planning to offer $200 million worth of common stock in a new public offering and as often happens the news of a secondary offerin initially sent sharps lower in the extended session tonight. it also finished the regular session down about 2% at 51.89. and then after the bell, soware company red hat said a rice in subscription revenue helped revenue earnings top expectations total sales missed estimates but the company gave weaker than expected guidance for the q currentrter and shares fell in the after hours. finishing the regular day up a fraction to 143.16. and the stock of the day, had to be canadian marijuana company tilray. shares of most of the cannabis-related stocks hav been on a tare lately anyway. but today it was crazy. ading in tilray had to be halted five different times during the regularsession, all

do you to tremendous volatility. when all said andto done the finished up another 38% to4. . and since the initial publication offering just back on july 19th, shares of tilray e up more than 1,000%. it's gothi using because it's estimated the marijuana industry on a global scale could be worth nearly $60 billion in less hand a decade. corona mack are consequence installation brands invested billions and coca-cola says it's watching the market for drink infused with cb the non-cycle active component in marijuana. so should investors consideg gett in on the action? troy dayton joins us now to scuss that the cofounder of the arc view group. roy, welcome nice to have you here. what a day to have you here. >> thanks for having me. yeah what a day. >> tell me where you think we are with the cannabis industry, specifically the stocks, bus

bill and i both saw the.com bule. and itreminds me of that, frankly. >> yeah, i mean, people are clearly very excited about the cannabis industry and the peckormance of the s over the last few days. and past few months really shows that. but the prices of the companies, bananas, there is no way that that's going to stand over time. thateingsaid, there are real fundamentals to this market. it's growing at a 26% compoundr annualh rate over the next five years. and people lov cannabis, and they are exited, the public opinion is moving vy far in favor of legalization. and there is a lot of hope for additional policy reform. and so over time i think people willw into these -- companies will grow into the valuations. but there is going to be a lot of volatility along the way. >> the policy reform you are referrang to,bis is still illegal at the federal level. still.some state

here in the united states. that's a major headwind for this industry, right? >> absolutely. it's part of what makes itst so integ to see all the stocks raising so much,t becaus a of that money can't get into the u.s. right now. and so i think there is a lot of excitement and thinking that policy changes are going to happen. and i sure hope all the people making so much money on the stocks are going to use some of itonate to the legalization effort, because right now theren are still mil of people that wake up every day in fear of their government for the lawl we're all trying to make as much money. but i think the real opportunity right now is in private companies. so the public stocks are s overvalued at the moment, the opportunity is really gettingom into thenies before they go public. >> and is that. >> that's what we focus on. >> very ickly, that the way that corporate america should play it? because if you are a publicly traded company, buying into an

industry tha, as bill mentioned federally, is illegal that's a dicey proposition. should they g to private companies? >> absolutely. private or public, you still le have the saml issues to deal with. and that's why so many companiee ooking at canada and other countries passing laws as a place to begir investing in ancillary companies, you know you see compani like scott's miracle grow doing agricultural technologyornd these of things. businesses growing with the industry. >> no pun intended. okay. thank you veryoy much. dayton with ark view. >> thas for having me. >> coming up, the cost of the cleanup.

the global poverty rate has fall ton a record low. the world bank says the proportion of people living below the poverty line has fallen to 10%. but, the world bank also warned at the pace of poverty reduction has slowed. the world bank has a goal of reducing the poverty rate to 3% by the year 2030. president trump flew to north carolina today where he toured the damage from hurricane florence. he assessed the response and promised to help those displaced. re >> hurricane fe was one of the most powerful storms ever to hit the carolina one of the most powerful and devastating storms ho our country. to the families who are lost loved ones america grievous with you. and our hearts break for you. god bless y. >> the president also predicted a costly cleanup. wh wh is under wayh a focus on getting back into homes and businesses back up and rning.

seema mody is in hard hit newbern, north carolina, for us tonight. >> reporter: the hurricane has passed but the flooding and d wateage is wreaking havoc across the carolinas. here in newbern, population of 30,000, over 4,000 been damaged or destroyed. >> i don't have flood oem -- oem owners insurance, we're on our way. >> som h people lostes completely. and i just got moderate damage to mine. >>newbern's conference center a jerner has suffered damage prompting local officiag to brn extra help to expedite repairs. >> the biggest problem w wh moisturen it's on the ground it rises up and damages other parts of the ilding. right now we are stabilizing the environment getting the wet material out that wean. and getting ready to be rebuilt after we leave. >> reporter: complicating the recovery efforts, access to power. over 200,000 residents are

dealing with power outages. and duke energy says most of the power will be restored by next dnesday. >> we're almost ready for you, okay. >> for those without power still and a place to stay aid groups like operatiin ble provide food and supplies, in partnership with home depot as well as generous donations coming in from nearby states. nbased early estimates florence could inflict as much2 as billion in damages and the longer the recovery takes, the greater the economic hit on this region. cnbc business news, seemamody, newbern, north carolina. >> that's it for us. >> good night. see you tomorrow.

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