>> announcer: this is nightly business report with sue herera and bill griffeth. dow powers higher. c the bluep logged the 15th record close of the year. auto packet, honda and general motors teae up to cre a new generation of driverless cars instead of going it alone. hack attack, layers of security are meant to provide extra protection when you log on. but a former hacker says that's not the case. those stories and more tonight and nightly business report for wednesday, october 3. and good evening, everyone. and welcome. the dow jones indusial average pushed further into record territory. investors cheered a solid economy and rising optimism. not only did stocks rise but

bond yields did as well o well. the yield on the 10-year treasury at a 7-year high that allped lift the finan sector. dow jones industrial average rose 54 points to 26828. and theasdaq climbed 25 and the s&p 500 tacked on two. but even with t dow at a roared not everything is rising. what's dly tells us working and what's not for investors. >> judging by the headline indexes, the stock market is running hot. the dow jones industrial average and s&p 500 are up 9% so far this year. yet below the surface, the indexes have have cooled. b russel the russell 2000 index are down 4%, aeriod when the s&p gained better than 1%. and bank stocks long seen as a betgt have been weak. the stock is off by 4% the past the month and down 4% for the

year even after the rally wednesday.t some strategote the number of stocks making new 52-week lows has often been exceeding those hitting fresh highs even on tais when the mainndexes e positive. this pattern is clear but what it means is open to question. traditional wall street wisdom holds the broader the rally, thg st and more lasting it should be. but smallav stocks lagged for long stretches in this and other bull markets without the entir market hitting a rough patch and while bank stocks can decline without hurtit the mar there is no requirement they need to lead the way. some argue that the mixed performance is about the waning of the trade war fears. less worry over h friction allowed multiple nationals to gain at the expense of maller domestics in recent weeks. whatever the root cause, this behavior isf typical market in the later phase of an economic cycle. as investors emphasize the companies that can sustain growth for years to come.l n all investors are becoming more selective without

fleeing stocksat entirely. not necessarily a trend to worry about at least not yet for nightly business, i'm mike santelli. by the way, thatomositive ec news that sue alouded to came from the rip roaring labor market. the private payroll company says that employers added 230,000io more pos in september, well ahead of expectations. job gains werepread acros industries with the services sector leading the way and as big increases came despite disruptions that were expected from hurcecane flor on friday, of course, the government will issue its own monthly employment report. the u.s. economy is set to look good quote for some time. that's the outlook fro the president of the chicago fed who expressed optimism ove the job market and inflation. >> fundamentals are very stront labor mar is doing terrific. unemployment is below is, which really something. payroll employment has been over 200,00per month for many

months, which is really really good showing. and inflation is up to 2%. i spent quite a long time indicating that i think inflation needs to get up to 2%. and here we are. >> and while mr. evans is mfortable with rate hike this year, the headf the iladelphia fed says he would like to see the bank tame its time kit citing tame inflation. seems like nothing stops oes prrom moving higher. the government today reported the largest weekly build in domestic crude inventories in more than a yea but even that seemingly bearish news failed to push the price lower. it settled above $76 a barrel today another 4-year high. but yet there are question base whether thepward climb continues. geoff cutmore is in mos the russian energy week conference. >> reporter: the hotre speculatn at this russian energy week event is whether saudi arabia

and russia already have a tacit agreement to increase output. inevitably, if sanctions are imposed on iran by the u.s. as much in november, as a million barrels a day of oil could come off the market. possibly even more. so the question that has been driving oil prices gher, how would that gap in output be filled? here is also the question of who is to blame for prices at a 4-year high. president trump says it's opec ripping off the world whilst the quarty energy minisr saying no. >> it's not trying th manipulate provides. it's trying to bring the market to balance. >> reporter: for the te being russians and opec play cards very close to their cst.

but, nobody wants to see oil at $100 a barrel. not even them. whilst they may make more profit in the short term it willoledo to demand druks over the longer term. this is geoff cutmore in mosco for nightly business report. and with oil prices at the levels what does that mean for the energy stocks? matt malye joins us with answers good to see you matt welcome back to the program. you think it is time -- a good time to move to the energ stocks. obviously prices are high. but what else are you looking ? >> well, i think the key is that the energy stocks not only aret high, i think they stay high. now they may -- crude had a run so it may take a breather and pull back slightly. but i thinkhat's creating an opportunity. and the reason why i think oil sts up iswofold. number one, you have --

everybody is talking about opec. and president trump says opec has to pick uproduction. the prom is they haven't -- they haven't updated their production facilities, their capabilities over the lastecade like the united states has. even if they wanted to they can't pick up the produion the y they used to in the past. so i just don't think that's going to be a big t issue. technical side, of course we have the oil is brokenut of its sideways range it had been in a long time. the commodities traders invented technical analysis. that's bullish too. you have the fundamental andea technicalns to like it. >> when you talk about the stocks you might want to invest in, people will think of the the the giantsexxonmobil, chevr so forth. but you are looking at small are be better for m leverage as the market goes higher. who are you thinking of and why. >> as you mentioned eon and chevron they're good because they pay a nice divend. and they're also highly weighted in the etf but i like theot

rs. because with oil breaking out it took off once it broke out of se range. an we a couple of stocks like apache oil, meritingenl, the enron oil and gas. eog. they are at 2018 highs. if they can break out further at gives the same momentum we have seen in the underwill lying commodity. crude -- the energy stocks have been lagging crude oil by quite abit. if they can break out it's etracking momentum. it could be posit for the entire sector. >> one thing we have seen so far this yearn energy i volatility. so what might derail thepwd trajectory of oil prices and then obviously the stocks? >> well, i mean, you can have -- i guess the biggest thing of course would be if we had someoftening in the situation with iran. if they can come back onei with production that's a significant impact to the price of oil. but,ou know, the one thing i

like about the situation is that these energy stocks do exactly what they did last summer when they lagged behind the price of the commodity or the price of crude oil. >> right. >> a couple of weeks later they rallied. i think that's what with see in the coming months. >> quickly before wet you go, i assume you're not throwing darts at all energstocks. who might be the laggards in the capturing. >>ike you said, it's momentum play and a confidence. if you don't have confidence in them -- somes of the sto are already rallying like those i mentioned. but they haven't broken. you have stocks like neighbors, mcdermott and weatherford international they've been in downward sloping trend. it's dead money. i don't necessari say sell or bearish. but i don't think they have the upside ashe mothers have. >> matt, thanks. >> thank you. time to look now at many the upgrades and downgrades. beginning with nike, downdra gred from hold to buy at hsbc,

the analyst cited the valuation ing the huge 60% run up over the past year. the pris target at $92. shares of nike fell to 82.50. oracle downfrayed graded to to inline from. the anast says lack of this any catalyst keeps it from pushing high are. the price target at $53. the stock fell 1% to 49.75. michael cores was upgraded to buy from neutral over a citi. the analyst sites steady earnings and the recently acquisition of ver sacha. the price target is $79. shares rose 3% to 68.08. and temper sealy upgraded to neutral from sell, at ubs, the analyst says the company could benefit from a potential mattress firm bankruptcy. the provides target is $56.to 10e rose more than to $53.66. hail ahead, the road ahead,

ow long before highways are full of self-driving cars? the national retail pr federation is forecasting holiday seasons for tailer. says it expects to sales to increase4. compared to last year to a total of $720. the figure by the way excludes cars, gas and snding at restaurants. >> senator bernie sanders wants to break up large financial companies. he says their size exposes the economy to too muc risk. the vermont independent introduced a bill requi financial company that has a total exposure of greater than 3% of gross domestic product to split up. that would include jp morgan

goldman sachs and berkshire hagertiway among source. >>ouesterday we told amundsonen surprised everybody by raising the minimum wage it pacers woro $15 an hour. last night ceo jeff bezos explained why. >> thinkg about inrying to decide do we want to change? we realized we made a decision, well you can offer compensation or you can decide to lead. and as soon as we framedt that way, we're like, let's decide to ad. >> that'great. >> i think people will follow. >> mr. bezos made t comments ter receiving the spirit of service award organized by the partnership for public service honoring people making a difference through work. >> general motors and honda team up to build a new car. but not just any car. itself driving and sold around the world. the reaction was med. shares of gm rose. while honda's stock fell. phil lebeau tells us why the auto giants do it together

instead of on their own. >> reporter: general motorshe world's second largest auto maker is joining force was honda. technically honda i investing just under $3 billion and taking a small ske in gm subsidiary cruise. ers will the auto m develop and build an autonomous vehicle. this is a partial image of what that vehicle might look like when it's finally sold around the world at some point i the future. >> what we are doing is designing a purpose built vehicle fully autonomous zploid in a shared network for theon transportaf passengers, transportation of other things. so we see a huge a opportunity and flexibility coming out of this. r: with practically every auto maker and many tech firms working on self-driving cars, why did honda approach gm about making a deal? mainly because cruis and its development of self-driving cars

is viewed in the auto and tech industries as being at the forefront of putting autonomous vehicles on the road. way mow as fleet logged more miles and will be available fe thublic to use later this ar. but cruise is not far behind. gm plans commercial service of self-driving cruise cars by the1 enof >> we will deploy when we deliver the level of safety we think is necessary to have the technology deployed in a driverless environment on the road and as soon as we are ready to do that we'll be doing it. >> theoace develop self-driving vehicles is just starting. but it will heat up over the next three to five years. when robo taxis autonomous delivery vans and self-driving cars will be moreomn. phil lebeau, nightly business report, chicago. >> and rebecca lynn lynn joins to us talk more about the developments in theo efforts develop these self-driving cars, thexecutive analyst at kelly

blue book. good to see you rebecca. >> thanks for having me on. k what do you th of the latest development with gm and honda? we have some self-driving features on cars, the emergency breeing, the development to you in your lane and so forth. but this takes it really quite a bit further down the road, doesn't it, this development. >> it takes it very, ver far down the road, no pun intended. it's really looking at what the society of automotive engineers or sae calls level 5. what that means is you will have this vehicle that doesn't have a steering wheel and doesn'tave pedals or anything it's really a pod you just get in and it brings y to your destination. this is quite a long way off. in widespread use. but it's exciting to see this kind of collaboration between honda and general motors. >> i was really fascinated by

how many levels you told us there were. are that's level 5, where we now? as bill mentioned we have the lane change issue and things like that. but. >> right. >> where does that put us. >> so whatou'll find too is that most cars on the road today are level zero or one. wh th meanst at level zero are the older cars that don't even have cruisetr c. cruise is things like control, break -- detecting brakingms sys level 2 is where we get more and more new cars. that's where you have lane depart yur warning. you have -- well like in the honda accord your hands on are ine stewe'll wheel if you drift the car moves back for you or take the curve for you. it's a very unsettling feeling. but they will. and you'll alsof course have self-parking cars. so we are starting to get more and more whatl we c level 2.

>> i know you are not a stock picker we didn't bring you here to pick stocks for people. >> good. >> what are the companies that are sort of becoming the leaders in not only theel cars thes but the technology that will go into the cars that you can think of? >> right, well this is interesting because it wouldn't necessarily be a traditional car company leading the charge pch google or alphabet division called way mow headed by john who used to be the head ofda h america. waymo is well ahead especially in the pod scenario situation. but also a couple of years ago ford motor company invted $1.0 billion in argoai designed to get the artificial intelligence that the vehicles require. so it's coming from all different sources. which is why we see some strange bed fellows like honda and general motors. >> rebecca with kelly blue book.

it's fascinating. thanks for joining us. >> thank you. margins come under pressure at acute brands where we begin tonight's market focuses. the lighting manufacturers topped quarterly profit and sales estimates. but saidtsigher c across the board hurt margins. the company pointed to wage inflation, the impact from tariffs and risin freight rates. shares plunged 13% to 135.01. the mining company peabo energy h reportedly engaged in talks to buy columbia based drummond international for as much as $4.5 billion. the wall street a "wall street journal" says a potential transaction would involve peabody taking a807% stake in the coal exporter. shares of peabody energy rose a fraction to 36.05. higher home praises help lan ar top wall street earning expectations. h thee builder painted to a duller picket for the current quarter. ut kulgt delivery and forecasts

citing impact from hurricane florence and a woker industry conditions. the shares were off 1% to 46.24. elsewhere, upwork, an online marketplace that connects freelancer witcl nts, they began the first day of trading today on the nasdaq. the compariced its ipo at $15 a share. above the eected range. up work executives candidly admit that goingot public was just to raise money but also to get more eyes on thees bus the company said a big change in the workforce is helping its business model. we seenethe ma ready for us and we are ready for the market. we have been preparing for this for many years. there is a big hhiftpening in the workforce today. the baby boomers are less likely to be freelancer. the minimal yams, theargest generation in the workfalce almost h a million are freelancing today for what with he do make sense for them. it's a successful debut, t stock up 40% on the first day of

trade at 21.18 after the bell ton specialpy software cloudera said it anned to merge with horton works, an all stock transaction worth over $5 billion. under the deal cloudera areholders own about 60% of the combined company and cloudera ceo's ceo will serve as chief executive. shares of cloudera were higher in after hours end of the regular day up 1% at 17.08. hortonwork shares also initially high ner the extended session fi ushing the regular sessi 2% at 21.88. also after the bell, tonight barnes and noble says it's launching a strategic review. the book store chain said there are several parties interested in buying the business, including company founder and chairman. shares were higher in the after down ession but finishe more than 1% at 5.46. coming up, y keepingr online accounts safe so hackers

don't stand a chance. len north korea may have s hundreds of millions of dollars by hacking banks. according toec theity firm fire eye, the country has been omputerating the systems of financial companies around the world since 2014. the attac are described as highly sophisticated, and have spanned 11 countries. fire eye says the group is still active and posinglo al threat. by now you have probably logged into the email orr social media or onlin bank account and you've bnl prompted to createco step to verify the identity. called two factor.

authenticati and it's an extra layer of security that more and more companies use t protect customer accounts. but it turns out hackers have already figured out a way to by pass that feature. andrea day explains. >> reporter: username, password, and now for extra security two factor authentication. typicallyod a special sent to the smartphone. enter it in and you are good to >>go, right. by enabling two facr authentication you can't relax. >> meet kevin once one of the fbi's most wanted hackers. now the chief hacking officer at cybersecurity firm nova 4. >> even though you use the two factor authentication, a smart t attacker could access. >> it could open up yournt personal accs or business files to crienals. and h is the scarey part. >> the tool t actually pull the attacks off is public. could download the tool and carry out the attacks. >> nova force ceo stew

showerman. e> it happens as we speak. >> says they attack banks onso al engineering where hackers take advantage of human behavior to get ydo t something like click on a link. >> social engineering if you do it right,an be used to get into almost anything. >> and in this case, even your two factor authenon won't keep them out. here is how it works. mitt nick says t bad guys start by sending you a phoney email that looks like the real deal. it's called fishers in this it'i from linke saying a fan wants to connect. he clicks the link a connected to the real linked in page. now linked in basically brought up a message that i have to enter my two factor code. >> the code is sent to a device. >> you a now i got the message. >> he enters the code. >> and now i'm logged in. >> but now the bad guyog can in to. here is how. before he was directed to linked in it is secretly went through

the hackers sver. where it left what's call a cooke, a bunch of info abo mitt nic like his username and password and all hackers need to get in. when i hit refresh i'm magicalli loggedo the victim's account without using the username or sboord or two factor code. >> learn to spot the phoney emails and never click on a link unless you are 100% sure. >> it's l notked in that's vulnerable. it's the user it's a security flaw withn. a hu >> look closely at our demo, the email came from an fake dom not linked in but llnked.c. >> which people initially might not even realize. >> linked in tells us, quote, we take these types ofeports seriously. and have a number of of technical measures in place to protect o members. when we detect this type of activity we worko quickly remove it and prevent future recurens. wege strongly encouembers to report any messages or postings

they believe are scams. companies like google and others now have tools to try and prevent it. it's called a security key. and here is h it works. director of product management mark risher. >>he securityey stores its own password. and requires the site to prove it's legitimate before releasing the password and getting you signed in. >> while they made strides he sayshere are still ope areas. >> it's not ubiquitous by a long shot. but we are encouraged to see more and more sites and apps and more hardware manufacturers come online and make the producut. >> the sns may be one step slower. but the pros say you need to pay a role and pay close attention to everything you enter even with the special code. for nightly business report, i'm andrea day. finally tonight forbes isou with the annual list of the 400 richest americans ft the fi time since 1994 there is a new number one. amazon's jeff bezos tops the

list with a net weather of roughly $160 billion, about double what it was a year ago. ll gates loses the crown. now at number two worth $97 billion. rounding out the top three is warren buffett at 88 billion. and the minimum net weather join the very exclusive club hit an all-time high of 2.1 billion dallas. not bad. >> how nice for them. >> how nice. that will do it for us tonight i'm sue herera. >> i'm bill griffeth. have a great evening, everybowe. l see you tomorrow.

>> this is "bbc world news america." >> funding of this presentation is made possible by the freeman foundation,ko aner foundation, pursuing solutions for america's neglected needs. >> how do we shape our tomorrow? m starts with a vision. we see its ideal f our mind, and then we begin to chis. wetrip away everything tha stands in the way to reveal new possibilities. at purepoint fancial, we have