>> announcer: this is nightly business report, with sue herera and bill griffeth. profit power. earnings from some of the biggt blue chips send the dow soaring more than 500 points. orange the knew green. and netflix is seeing plenty of it. crushing earnings estimates and sending one of the best performing stocks this year even higher. options. medicare open enrollment is under way with some insurers ofrpg benefits to help keep you out of the hospital. those stories and more tonight on nightly business report for this tuesday, october the 16th. um-hum. ell good evening, everyone and welcome. wall street was firmly in rally mode today. the gainsd, were breen in

everything from technology to financials. and the rise was sharp, thanks to strong quarterly results from some of the largest.s. companies, including united health care, johnson & johnson and goldman sachs. we'll have me on tho results shortly. but first the closing numbers for you on a stron day f the dow. it advanced 547s poi to 25798. the nasdaq added 214. that's a gai of nearly 3%. and the s&p 50059 up and the positive earnings news continued after the bell tonight when netflix, which h been one of the best performing stock this is year blew past rnings estimates and added more subscribers than expected. th streaming service earned 89 cents a a are, 21 bette than estimates. revenue up 24% to $34 billion and not surprising the stock took off in initial after hours trading. julia boorts isn't outside

netflix headquarterin loss gat ohs, california. >> the big surprise in netflix, suers are growing faster than expected and continue to outpace projectns in the fourth quarter. adding 7 millionn subscribers the third quarter, 2 million more than the companies own projections. and the fourth quarter netflix says it expects to add 9.4 million new subscribers. more than the 7.6 million alysts anticipated. in the letter to shareholders they say they underforecasted eye with strong markets across markets including asia. pointingo the bred/8 of local programming and content from the company's own film and tv studio. the reducing thean cos reliance on outside studioen os and giving nonflixol over the content. but it was results from united health care, johnson &

tjohnson and goldman sact helped proposal the dow and the broader market today. and what really got investors in a buy mgd was their upbeat outlooks. a wave mergers deals proposaled goldman sachs to a big thir quarter. beating estimates and both higher than aea ago. investment banking revenues rose 10 frers a year earlier. but as lloyd blank fine hands offo the new ceo david solomon this month. on thn is focus ds consumer banking business, to find growth moving forward. >> quarter of the employees are technology engineers. there is a big digital push heri at the, a lot of it happening on a consumer side, the welt management side, viously not historical goldman businesses. so i think that's where the is going to be growth. >> johnson & johnson satisfies consumer sales, the best in two years are driving growth right now. up 6% from a yearearlier. >> we relaunch the iconic baby

franise brands, it's much more receptive to the needs of millennial moms and dads. and pharmaceuticals, i can't san gh about that division for us. >> saless johnson & joh fon treatmen cancer jumped 36%. j. and j. also raised guidance for the year. the nation's largest health shurpser united health group beat earnings forecasts. rosing 12% from a year and profits up 28% in a year. the company says prospect are good for continued growth of the medicare advantage health plans and pharmacy benefits managerer opt up rx. and all s thrcks rose sharply in trading with united health care the top perfotoing dow today. up more than 4.5%. but it was a different story for ibm which late today reported weaker than expected revenue. big blue's bottom line earnings were better than expected came in at $3.42 a share but revenue

declined the recent quarter to a little over $18 billion. and that's what investors chose to focusn on initial after hours trading tonight. josh lipton has more for us now. the. $4.19 billion. that's how much revenue ibm's global business services segment generated in the quarter. that's an important division that includes services like the company's consultinggroup, cfra david holt and ibm bull says he liked what he saw there, that the segment showed promising signs ofon stabilizati in the quarter. he was disappointed he says by the lack of overall revenue growth for the cpany in constant currenty for nightly bu jness reporth lipton. wal-mart's profit will be hit by the largest acquisition ever. the retailer lowered t earnings target for this year and next following the purchase of the indian ecommerce company flip cart. wal-mart purchased flip cart for $16 billion and set out the time

that it was a long-term investment in a fast growing market but could depress eaings in the near term. nonetheless shares rose two 2%. overall wall street's expectations bar mab set high for the earnings season. and so far for the most part companies are surpassing it. bob pisani explains wh c risints are front and center for investors about but revenue growth could be the answ companies look for to kpat the high ert cost corps america is facing. earnings season has begun so far the early signs looking better than they were expected out of 0% companies reporting 9 a o beaten earnings with earnings growth at 25%. according to the earnings scout. above expect assignings. but the key to the market upwar momentum may nb revenue not earnings why because higher costsithout higher revenues will lead to margin erosion. and that can be a rally quill o ll are.

you don't want that. but the revenue steadily improved as the economy strengthens. venue growthistorically averages 3% to 5% process. now estimates of 7% to 8% the next few quarters making a the coany as job he is year with revenue growth in the 7% or 8% nge an increase in costs of say, 2% for higher wages or interest rates, can be absorbed. last week's market action tells us that investorsre clearly worried about a sudden spurt in interest rates. bank of americayn merrill leaked the global fund manager survey saying the biggest fear for money managers is the trade war but rate hikes are a close second. the bottom line is this. if we continue to get restraining and steady revenue growth it means the economy is still in good shape a tax cuts are working. that should be help offset higher rate concerns. for nightly business report, i'm bob pisani at the new york stock exchinge. >> a stu report on the

labor market tonight. where there are now more job t openingsn ever. the latest labor department survey shows million available positions in august. a reflection of an historically tight lab market. the number of available jobs outnumbers peoe actually looking for work by more than 900,000. that's the biggest gap on record. and economists say the new reading could pressure more companies to raise wages to attract employees. all right. time to look at some of today's upgrades and ground grades we begin with shares of tap evidentiary the parent company of brands like coach and kate spade upgraded to buy from hold at need a ham, the analyst there cited valuation after a recently double digit decline in the stock price. the new tarringno i$50 tap evidentiary shares rose more than 3% today to 44.47. cracker barrel was upgraded to outperform from market perform at the advisory group. the analyst expects the

restaurant chain comparable sales kmer traffic and earnings to improve. price target $175 ander cra barrel shares finished up 3% to 157.28 today. and sim and techas undered to market perform from underaeken process. they say m is not fall much even though it faces challenges the shares rose more than 4% today to $20 the.66. still aheadors off drilling the answer to high oil price sns we'll take you o an exclusive tour of shell's largest floating oil rig in the gulf of mexico.

a new report today that said the china continued to trim treasury holdings in august by nearly $6 billion. this is the fourthonth of declines. it now stands as the lowest level since july of last year. bond traders are watching kaifrl to see if china isntentionally reducing the holdings because of the trade war with the u.s. but most do not think the reduction is meaningful enough yet. president trump aim a at the federal reserve again calling the central bank his biggest threat because he believes it's raising interestt too quickly. in an interview the president added he is quote not so happy with some of the people he appointed to the federal reserve other than chairman powell. and the federal government

late yesterday said it wants to force drug tors disclose prices for prescription medicines in television commer health and human services secretary alex azar said that making the pricing transparent might force drug makers to slow future increases. and he said this by the way would apply to all brand name medicines covered by medicare and medicaid. >> we think you have a right to know not just when you you have the tv add what it ought to cost but at the point of prining when you are there with the doctor we need to get thels t so the doctor knows the not just the list price but under what you alth care plan you pay for that medicine as well as the competing medicinesoc ther might prescribe. you can have a more engaged, competitive discussion right there at the point the scrip is written. >> the drug industry objected to this proposal. medicare enrollment is currently under way. and this year some private insurers offering a new option designed to keep you out of the

hospital. bertha coombs explains. mr. rivera has had his share of hospital stays which were in a word. >> lousy. >> when he developed a serious infection he was relievedhe doctors offered to hospitalize him at home. >> how are you feeling today. >> pretty -- very tired. >> a nurse administered his ieatment just like the hospital but better. >> manuel's daughter says. >> they have the luxury of a one-on-one. >> they were able to do their jobs like at a fuller capacity instead of having all the other patientsaround. >> and manuel could actually sleep. >> you can go to bedhe you want. an not so many people walking around making noise. >> the mount sinai ceo says the home program resulted in 25% savings on average and they show re cmissions were in half. >> we found patients were happier, costs were lower.

outcomes were better. and the patient satisfaction was higher. so on eve metric we measured this was a betteray to deliver care. >> but the pilot program was funded by a centers for medicare and medicaid grant and funding ran out. insuring selling the private medicaredvantage plans have signed on to cover the hospital at home program srting in 2019. but the federal government's traditionalic me program isn't there yet. >> i think the concern might be whereas at mount sinai might be able to do this easil not every hospital may have the resources or operational expertise to do it. >> p pt of theblem is that under tradition medicare, hospital and outpatient services are billed differently. and cmst's seema firma noted that mode carehe lax authorization to provide for that coverage. but still they given them more

flexibility to provide more home care implementle bifurcates for things like housekeeping darrick services and caregiver support >> it depends on type of care you request. but it can easily run into the tens ofhousands of dars. to the extent the medicare advantage plan can offer and help cover services that could be a fancial benefit to some people. >> analysts say the insurers are rolling out the options slowly for 2019 appear will likely ramp up offerings next year to help more seniors likeanl stay healthy at home. for nightly business report, i'm bertha coombs. and health care will know doubt be one of the issues on minds of the voters goi to polls next month. and this year the recently enacted tax ruts cuts hvie ha an impact in close midterm raelss. ylan muy is in downers grove illinois. chicago, s suburb of politics at a cross roads. for more than a decade this area

ephas beensented by republican congressman peter ross come now he struggles to hold his seat. few people thought the race could be this close. he was one of the chiefar itects of the gop tax law. he says in places like mining company vulgen materials to create jobs, boost wages and invest in new equipment. the economy is so hot business owners tell him the biggest challenge is finding enough workers. >> that isthore. tax law is about growth. and what the other side of the aisle decided was they are all about the politics of redistribution. >> but the gop getting overhood shadowed by president trump and the congressman is falling behindlsn the polo a political newcomer sean casten. casten used to run his own energy company. he decided to get into politics after trump was elected. an he has turn the tax cuts intof a line attacks. >> you are not supposed to be running huge deficit sees when

unemployment is at lows and we're in a nine-year economic boom. and we're at that point because we put fue on the fire of a booming economy. >> aflun wel educated swing districts across the country will be critical in determining which pty controls the house. there is only three weeks left to go until election day. candidates doesn't have much time to make their case. for nightly business report, i'm ylan muy in downers grove, illinoissi a congral vote on the new trade deal between the u.s. canada and mexico will not happen this year. senate majorities leader mcich mcconneld procedural issues under trade promotion authority certain steps have to be taken before a trade deal can be sent to capitol hill. that leaves the issue in the hands of the next congress liefrmgts the world's largest asset manager reports a loss in asset revenue that's where we begin. the blackrock's revenue totaled

3.ion for the quarter, less than wall street expected. the company said that the missu was in to an acceleration in investor outflows. h>> we sawe movement from clients, a lot of children. it was just i think the markets are showing that. but investors are confused. but overall because of expense i disc, how we navigated our revenues were up 18% in the aden business and the technology business. overall it was a good quarter. but i was disappointed in our nett flows. very explainable by some large derisking. >> bckrock shares fell 4% today to $408 even. and morgan stanley a profit rose 20% in the recent quarter, easily topping analyst estimates. result were helped by a strong economy and revenue gains across its major business units

including investment banking. morgan stanley shares mosee tan 5% today to 45.94. and sales tommen os weaker than expected underscoring increased competition for food delivery these days. the company has stepped up its efrts to better compete with third party delivery companies like grub hub and uber eats. and doo dash. and earnings for the recent quarter did top estimates. e still wasn'ugh though. domino shares fell nearly 5% on the bigp day to 259.63. granger says tariffsrond imports china are expected to increase costs by 2%. the industrial supply company is considering raisi prices and finding alternative sources for its products to offset the higher prices. ww front ranger reported a decline in profit and weaker than expected revenue in the most recent quarter. the shares fell nearly 12% to 280.01.

poefz isew yor reporteding that billionaire investor carl icahn has taken a stake in dollar tree. it was unclear whether icahn plans to push for management or strategy changes at the company. doll tree shares popped 6% on the report to finish at $86.50. and united continental beat analyst enings estimates appear boosted the 2018 forecast for the third time this year. the company said its results were helped by added flights in the hubs in chicago, denver and houston. the stock rose in initial after hours trang after rising more than 2% in the regular sessio>> tensions out of iran and saudi arabia drove oil prices ig slightlyr today. the price of domestic crude settled around $7 but as prices rise so too are the investments made in offshore drilli, because it's the very same investments that could help keep oil prices in check. brians sullivan i on a shell rig

in the gulf of mexico off of the new orleans coast for us tonight. >> we got a rare andxc broadcastingsive opportunity to be on one of the biggest platform in thed,wo the shell ofrpis in the mars field 130 miles out of the gulf of mexico. new orleans is that way. and this is a fascinating world because as a ceo of told us. everythingbout the deep water gulf, the well headbout 3,000 feet down tha way is bignd expensive process. a platform like this, over $1.0 billion. shell has a new one rolling out next year, investing 3 billion over the next five years. and aftri the of oil collapsed a number of years ago, the whole deep wat offshore industry really had two options get smarter about covers or go and the head of shell's global deep water operations told us they broughthe price from a barrel of crude from $75 on their cost way down to about $4ee today we've able to bring

the costs down by anywhere from 45 to 55%. whoa you look at an activity today is won't screen in for anything more than a $40 break even price processon verage we are running just moment$30 a >> the price above 70 and costs around 40 can invest in more projects and they ar doing that. 3 billion over five years. what do they get? the platform like the limp us is about 100,000 barrels a day a little portion goes to the government. 21% impose to the partner bp overall this platform produces roughly 2 million gallons of gasoline for your car eayry.s and the profitability comes as up, investmen come become. looking off in the distance over latform that is a looks like this. but in the middle that's a drilling rig. they are drilling for a new well and then a platform kd ever like this will ultimately go on top it. now, of course, there is something else that this industry faces. that is safety concerns.

after the bm mccondue disaster and lever liv were mass and the oil stril, the industry shut down for the better part of two years. we asked shell about that. and they said that the safety and technology especially around that well hea has gotten a lot better. >> the industry tas improve dealing and the blowout preventers that sit on the sea floor that prevent these things from happening. we have cre organizations like the marine oil containment co that can come in and cap these wells if anything happened. but we are focused on making sure something like that nevern happens ag >> the industry is working through safety concerns as well as bringing costs down. of course the trump administration has been very sportive of the offshore oil and gas drillingustry. we see how long that lasts. if oil stays high, the vestments will come to the gulf of mexico if the price of oil turne south look for new investments like this to slow down as well. a lot of jobs reliant on platikrms out here just this one. for nightly business report, i'm

brian sullivan, off new orleans, louisiana. and coming up,e the l and philanthropy of a silicon valley legend. wall street banks are reportedly telling ubter could be valued at as much as $120 billion if it goes publi next year. at that level it would give the ride hailing company a shot at being t biggest initial public

offering on record. that figure isn higher t the valuations of ford, general motors and cysler combined. and according to the "wall street journal" it's twice as high as the valuation uber achieved during a fund raising round two months ago. facebook is facing a new lawsuit. according to a complaint filed by some advertisers, the social media company knew of problems witheo the v consumption metrics for more than a year before it disclosed them back in 2016. the lawsuit alleges that facebook engaged in unfair business practices and significantly overstated the amount of time that users spent watching video ads. the business world today has been mourning the passing last night of microsoft cofounder paul w allen suck coupled to cancer at the age of 65. e made his mark as a ilanthropist and entrepreneur after leaving microsoft in the

'80s. robert frank looks at his achievements. >> it was 1975 and a 22-year-old paul allen and 19-year-old bill gates wrote a programming language for the altair computer later becoming microsoft ast inled in 90% of the computers in the 90s. allen left the company after eight years to bamgts hodgkin's sease and channelled his frrn into media quips, space exploration, dwefrmgla the seate union district and buying the seattle seahawks and trail blazers. he gave more than $2 billion to charity and his estate is likely toive even more having signed the gates buffett giving pledge plannio donate most of his $20 billion frrn. and vulcan, inc, holding his investments will pass to his sister jodie. but shi has said she may not be interested in owning teams.

some of his personal troe trophies the 4149 yacht octopus and fleet of jets and 1plus mansions scattered from mercer to london and brance cou sold would the proceeds going to charity. for nightly business rert, robert frank. all right one more look at the big rally on wall street today. thanks to the better than expected earnings, the dow advanced 547 points. e nasdaq added 214. the s&p was up 59. >> and that will do it for us ton. i'm sue her aire thanks for joining us. i'm bill griffeth. have a great evening. y se tomorrow.

"bbc world news america." fundin of this presentation e made possi the freeman foundation, kovler foundation, pursuing solutions for america's neglected needs. >> wow. thats unbelievable. >> ♪