this is "nightly business report" with bill griffeth and sue herera. >> the market cannot seem to find its footing after last week's row, making it difficult to find out what might come next. new challenge, rising tensions between the u.s. andar saudia are adding another element of uncertainty for investors. and the death of sears, the store was once a part ofhe fabric of america, and now it's bankrupt. those stories is much moregh to on "nightly business report" for this monday, october 15th. and we do bid you good evening, everybody. welcome. sue is off tonight. invests may have started tweak hoping for a bounce back in stocks's after last we selloff, but they didn't get it today. the marke struggled all day

moving betweens gains and losses, looking for some kind of direction. technologies shares fellagain. and key concerns like rising bond deals and trade w issuese still very much in the mix. but investors today were also thrown another curveball, geopolitical risk due the tensions between the u.s. and saudi arabia. first, the closing numbee dow da 25,250. the nasdaq was down almost a percent, almost 66 points and the s&p lost by 16. m wh come next for sfoks. >> stocks falling more than 4% in a week, leading big tech stocks even workings. the question entering thelf secd f october is whether the path ofta least rese from here is up and down. it was prompted in large part by and e in interest rates profits by industrial companies.

in the weakness shows the high momentum growth stocks that carried them for the year. this one issue complicating aushz of a quick rebound. the major indexes late last week looked stretched to the downside as they did in february, around the time the market began to stage a slow recovery% from the drop from january's peak. but the s&p 500's failu to ay above the january high for more than a few weeks is adding to concern that investors are collectively bracing for a slowdown in earnings and profit growth heading into 2019. october is known for higher volatility, but also from market bottoms that often set up a strong finish to a year. this is particularly true in midterm election years. all of this raises the stakes for corrate earning season. can can another quarter of strong growth of 20% soothe investors' fears, or will the market fixate on highers interet

rand rising costs? the next few weeks will help answer these questions. fortl "nibusiness report," i'm mike san toll. geopolitical risk is always in the market to some extent, but today tharisk was heig heightened as tensions between the u.s. and saudi arabia flared over the disappearancepond ible murder of journalist jamal khas rggi. there arorts tonight that saudi arabia is preparing to admit that khashoggi was killed as a result of an interrogation gone wrong it is an issue being closely watched not just by the energy markets as clearly saudi arabia is one of the rld's largest oil producers, but also by corpote america since raytheon, dow chemical and weatherford among others all do business in that country. hadly gamble isor in riyadh fs tonight. >> reporter: u.s. secretary of state mikpompeo is on route to riyadh as relations between the united states and saudi arabia reached a critical point over

the disappearance and possible death of saudi journalist jkhal hoggi. the move came as reaudiyadh prod severe pun was involved in his zmeerns and even death. >> there's a lot at stake and maybe especially so because this man was are rter. you'll be surprised to hear me say that. there's something really rrible and disgusting about that, if that were the case. so we're going to have to see. we're going to get to the bottom of it, and there will be severe punishment. >> the saudi government broke almost t weeks of silence on sunday in a statement denying involvement and threatening retaliatory measures if sanctions were leveled against it. the king announced an internal investigation would took place, as well as a joint saudi/turkish inspection of the consulate. outside the white house president trump said t saudi king was firmly denyingis h government's involvement and

raising the possibility that rogue killers were somehow involved. firmly denied any knowledge of it. he didn't really know. odon't want to get i his mind, but it sounded to me like maybe these could have been rogue killers. who knows? we're gng to try getting to the bottom of it very soon, but his was a flat deny >> reporter: meanwhile the list of prominent international business leaders wholan to boycott saudi's second investment summit next week is growing with jpmorgan, j.p. diamond, larry fink and steveha sman now joining the list. for "nightly business report," i'm addly gamble. the market is also having economic consequences around the globe, mainly brexit.th exit from the european union grounded to a halt after the eu and u.k. failed to reach an agreement on a key issue.

as steve reports from west faminister, the deadline i approaching. >> reporter: brexitro break h at the start of the week appeared to have been bashed. the world's med had been prepared for an announcement from the eund the.k. government within 24 hours to say that a key breakberough had made. but over the weekend that inpears not to be the case. what has been the ticking point is a backstop for the is northern irish border. northern ireland part of the united kingdom. the irish republic, part of the eu. to create a softborder, a nonhard border has alwayseen one of the key issues and one which appeared too hard to achieve at this moment. this is may with the customs union during the transition period with the eu. the eu with northern ireland potentially to be in that.

that is something that will not pass with her backers in the northern irish assembly, incipally, the deck,u. at the moment it appears to be a sticking point for brexit. what does it mean for the torturous negotiations of brexit in only time will isstill. s steve sedgwick in west minister. christina hooper join us now. good to see you again, that you know for joining. let's start withar saudi ia. clearly oil market is something people think about. a lot of analysts have gotten ahead of themselves thinking if there are u.s. sanctions against saudi arabia, maybe we could have anotheril embargo, and sharply higher oil prices. that. start with is that possible do you think? >> that's certainly a possibility. we heard from saudi arabia this weekend making something of a

validate threatg suggest they would retaliate more in a harder fashion than actually the sanctions against them. and also alluding to the fact at they do play an important role in the global economy, and that seemed to be suggesting specifically the ability to embargo oil. so that takes us back to the horrors of the 1970s with thato embargo. >> which some of us remember well. the other part of the story,e crown pri salman has wanted to diversify the economy it's also now dependent on the oil market. he was in the united states trying to rebuild relationships with various corporate ceos, those companies i'm sure are watchingmehese devels very carefully right now. >> absolutely. we've already seen a number of executives pull out of the big economic forum that wasoing to be held in saudi arabia soon.

so clearly corporate executives are watching closely because what attracted investment to t attracted , w these partnerships was mohammad bin salman's commitment to reforms. that's what was so attractive. >> that will be interesting to see how that plays out. now to brexit. boy, we've gone back and forth, positive, negative, positive, negative. what happened? you've g theeu summit coming up later this week which is ade ne to reach a decision on brexit. what happens if they don'eahave a trade wise, do you think? >> first of all, i wld say it it looks like that they will not have a deal, that afterti neions this weekend went awry, it seems we will not van outline of an agreement for the eu summit this week. certainly that could change, but that seems tbe theore likely scenario, and that, then, impacts the time line because ideally we would have had at this eu summit an agreement on

the outline than working towards finalizing that deal before the eu summit in november. now it could be thease that the november summit is devoted to coming up with o what ki a relationship and what could happen if there is a no-deal brexit. >> we remember quickly here, a trying to ge sense for individual investors what to expect if there's nodeal. we know the last time they voted in favorf brexit a few years ago, markets sold off sharply. what happens this time if anything? >> i think there c vola. i don't k we se as sharp a selloff as we saw during brexit because we'reoming to that realization that a no-deal brexit is a very likelyoutcome. so i would expect more vomg volatility. this is contributing to theai other inceies that are impacting markets right now. >> thank you for you insights again tonight. >> thank you. here in the united states

the annual bget deficit has risen to the highest level in six years. the office of management and budget said today the dfoicit the last fiscal year hit $780 tbilliot's a 17% rise from a year ago. spending increased acrosnu a er of areas including defense, medicaid, security, and disaster relief. at the same time revenue rose onlyue slightlyo the tax cuts for corporations and most individuals. it's time to take a look at some of today's upgrades and downgrades. we begin with shares ofd' mcdon that was upgraded to outperform from inline at every core isi. the company's more defensive business model that can wi stand persistent market volatility. mcdonald's shares were down a tick today to $163.67. ralph lauren was upuated at jpmorgan.

pr etarget, $150. ralph lauren shares rose 4% to $126.51. lululemon's leadership team was called best in class. price target $176, shares rose a fraction today to $144.46. still ahead the retailer that changed the way americans shop weren't his its next chapter, bankruptcy. enter ente . create a $33 billion military technology giant.e

it would bec the country's sixth largest defense contractor and the market clearly approved of the deal. today's announcement resulted in both stocks trading sharplygh . walmart is hoping to grow sales with its latest e-commerce deal. the nation's largest retailer said iwas buying online luggage ray bare necessities for unclosed amount. the portfolio already includes jeb.com. ow from the nation's largest retailer to one that used to be.ba led department store sears holdings filed for bankruptcy today just before a $134 million debt payment was due. b sears hn struggling for years to increase customer traffic and stem a decline in sales. not at all whatbe might hav expected back when that company was the king of retail. the original amazon. >> reporter: nephew icons reached the heights that sears once knew. >> sears row buck when i was

growing up was the big deal. it's very sad what happened. >> it first sold watches in the late 19th century. later its catalog sold pretty much any household itemnkou could tof, and in 1906 it became the first retailero trade stock at the new york stock exchange. brick and mortar stores began to appear in the 1920s, and sears started popular brands like craftsman power tools, die-hard batteries anden k moore home appliances. it gave at us satisfaction guaranteed or your money back policy. in 1973 it opened the sears tower in chicago, then the world's tallest building. later it sold it in e 1990s. in the 1980s sears bought coldwell brarng and all state, creating the sears financial network, which spawned the discover credit card. it had an early retail website in t 1990s, but it failed to

keep up with amazon or the other big box retailers like walmart, which replaced sears as the nation's largest retailer in 1990. years after its 2005 merger with kmarthen eddy lamb pert took over. analyses had saying bankruptcy was inevitable. >> there never was a sategy that would have been viable given the way lamb pert chose to run the buioness. the n that there's been some turnaround or some transformation in place is just plain bogus. >> the steep decline at series incles cutting employees from 300,000 to about 70,000. it once had over 4,000 stores, now just 700 with plans to close 142 of those by the end of the year. it's lost more than $11 billion since it's last pfitable year in 2010. >> by the way eelectrichrow

lucks says it homes to semiappliances at sears but it cannot rule out a material hit in its u.s. operations. because separately whirlpool said it expects to see limited impact to its business since it now just has a very small txposure to sears. proains at bank of america were i don't ever shadowed by loan growth. the bank topped wall street estimates and reported a 30% increase in profit, butoc investorsed instead on the underlying business which showed that loan growth lagged its rivals and fees from advising des actuallyfell. shares themselves fell nearly 2% to $27.92. charles schwabng reported ear better than expected. ofits sored by 50%. management fees fell as ceresult of a par in the industry and that caused shares to fall

to $47.64. meanwhile investor car icon lofd he holds an 8% stake in dvmt. thatcks dell's investment in vm ware. icon said that dell was trying to buy shares at bargt basement prices and during a phone interview he did not mince words. >> i don't think dell is worth t ry much. i doink dell is worth anywhere near when he says it is but they have continued to manipulate the machinery. >> shares of dell technology rose a fraction to $95 today. rucking and transportation company topped earnings estimates but came up short on revenue. k35e7b9 said m thes was due to rising y rising labor costs. shares were votel in the afterhours tonight and finished

e regular session up 2% to $111.53. it's been a big year for tflix shoulders. the stock has been a market leader, up 75% sincegihe ing of the year. it has started to falter over the past few months. and that's one of the reasons why there is a lot at stake when the company reports its results tomoow. julia boorstin tellspes what to . >> tying with hbo thanks to "the cro crown." netflix reported disappointing subscriber numbers. thcompany projected it wil add 5 million subscribers total with 4.3 million of them coming from overseas. >> they missed the quota and missed the guidance as well. if theymi would haved again, i think investors would take a

negative view of the stock giving the highle mult >> reporter: netflix shares are still up 75% year to date, far outperforming the other stocks. the competitive hendscape of the r big question in focus when the ceo hosts his quarterlily or video call trow afternoon, especially with amazon increasing its content and at&t working to launch its own streaming service. >> i think the biggest threat is u have companies like disney and amazon really looking to nd spend a lot more to compete to remain competitive with netflix it will force netflix to spend more money. >> action! >> reporter: netflix has spent $8 million on content. we'll see how much more it says it will spend next year ont contlus marketing to lure in viewers. for "nightly business repbot," i'm julistin in los angele still ahead, ready to rage?

how one entrepreneur turned frustration into a business. s verizond it suffered unprecedented equipment damage from hurricane micha today, that's a hampering the efforts to restore mile servicen that area. it is working around the clock to get its network back up and running, but fiber damage does remain a challenge. separately, in california extreme weather conditions, big winds, have prompted l utility pg&e to take the unprecedented step of shutting off power to thousands of customers ahead ofe time to reduc the risk of wildfires that could be sparked by utility lines that might be damaged in those heavy winds. very interesting.

casino stocks fell on a report that the revenue operations iner macaw hurt by a typhoon and by trade tensions. wynnnd las vegas sands closed lower on that report. there are concerned abo the impact of interest rates will have here in the u.s., just one of many head winds the industry faces. we take a look at the fu.re of gaming >> reporter: as gaming stocks declined, rising interes lrates got of the blame. but in las vegas as 26,000 gaming a insidersended the most important conference of the year, they were looking for a silver lining. the ceo of national gaming says the impact was after lunchly an 7erreaction. of our debt is fixed, so we think the concerns act rising interest rates at least from a national standpoint are way overstated because most of our leverage operations are notns

ive to race. >> reporter: that's not trueor cesar's where three-quarters of its balance is td to floating race. >> what we're seeing now especially in the last 18 to 24 months is a lot of industry consolidatio we're seeing a lot of the smaller companies being acquired, and so i thinkoue going to see fewer publicly traded gaming companies but much larger on scale and much larger rewards programs because of the increased scale as well. >> reporr: the future possibilities with skill-based games and augmented realitys also wowing the crowd on the casino floor as a way of attract gago younger demographic. >> if we can make the overall experience more engaging, more immercysive, then it becomes a deeperie expe and we think augmented reality is play a powerful role in that. >> with the supreme court decision clearing the way for states to legalize sports gambling, it's a hot topic, w creatis to get into the hands of betters.

>> what erie seeing with a lot of new products are applications that will allow the sports better toager within a game. >> reporter: though analysts tend to temper expectations for big profits on sports gambling, gaming insiders are trading it like a jackpotn. the gaming association expects it to be a $10 billion w for the industry. forpo "nightly business ," i'm con tessa brewer. new jersey brought in a $184 million in wagers during the month of septemr, doubling the amount brought in before august and quadrupled s t in july. you may know that new jersey was one of the first states to legalize sports betting following the supreme court case that con tessa just mentioned. ry we nally, here's a s can all relate to. you have one of those days where you just want to smash something out of rage or maybe just for fun? well, now you can. eric chemi introduces us to the wrecking club.

♪ >> reporter: there's new business in town, the premise -- breaking stuff. people are spending money to come to places like the wrecking club in new york city to letr t theige and have a good time. >> y got dishes, laptops, monitors, you get printers,t yo tvs, you get furniture. and you can just -- we set up a room for you and you can just go nuea. >> are youdy to break stuff? >> i'm ready. >> the founder is a former contact. he quit his day job, sold his car, and invested all his life sa. ngs to start this busine >> a couple house rules. >> reporter: he says he's never been happier. >> i endp doing more accounting work now and spreadsheets more now. but the numbers mean more. you know, the work means more.

>> reporter: and business is >> we have a package that starts at 25 bucks and then we have paages that start around $250. the differences are how many people are in thero , how long the session is for, what stuff comes in the room. >> reporter: from family that and bachelor parties and first dates, the concept has caught on quickly. >> we set up the. room what they do with that room is up to them. it's there time. >> reporter: one of the bilgs challenges of running a b iness likethis, the junk. surprisingly difficult to source mass quantities of electronics and furniture that don't contain toxic chemicals. >> supply is hard. supply is difficult to get. especiallyan in qutity and at a price that work supply is difficult. >> reporter:th froe network of third-party vendo i checked out the wrecking clubi firsthand.

mit i was a little nervous. >> i'm okay. i don't need to break anymore stuff. >>eporter: for "nightly business report," i'm eric chemi in new york. finall some s news to report tonight. a tighten in the tech world has died paul allen the cofounder of microsoft has passed away at the age of 65 from nonhostage nens limb foe ma. that's "nightly bu report" for tonight. i'm bill griffeth. thank you so much for watching. have a good evening. see yotomorrow.

>> this is "bbc world news america." >> funding of this presentation is made possible by the freeman foundation, and kovler foundation, pursuing solutions for america's neglected needs. >> this fall, it's a season of revelation, for the choice of america's favorite novel. quick the hundred books we want people to take a look at. hope and to get people to fall in love with novels again. >> from the secret lives of the