>> announcerhis is nightly business report with bill griffeth and sue herera. staying the course. the federal reserve hints at more rate hikes ahead. contributing to another volatile day on wall street. toy story, some of the world's largesttaers are making a play this holiday season for the $11 billion hole left by foist r us. >> are you feeling lucky? well there is more than this illion up for grabs week as lottery fever grips the nation. those stories andn more nightly business report for wednesday, october 17th. and we do bid you good evening, everybody and welcom was the selloff that wasn't. when the opening bell rang this morning stocks fell sharply. just like that half of yesterdas gains were erased. however the intense selling

didn't lass. stocks climbed back. even after the release of the minutes from the recently hawkish federal reserve meeting, stocks held steady. so after some oh bouncing around here is where things settled out for this day at least. the indus fial averagel by 91 points. we're now at 25706. it has been down more than 300 today.at one time nasdaq fell by just 2 points. the s&p off a fraction. hundreds of companies in the s&p 500 have not been participating in this bull look at this. there are 239 stocks down 20% or more from the all-time closing 159 are down at least 30% from all-time highs. 107 down at least 40% from their highs. and 66 a down at least 50% from highs. well with fewer stocks taking the major indexes to rarj highs what is it signaling about the market? joining us to a talkut that smiek gibbs, managing director

strategy atefrmt raymond james. welcome, mike. on the surface thes statist just rattled off, it doesn't sound very positive. no, you you are right. you sometimes need to look beneath the surface to see how strong it is. don't think the ample investor understands the fact that the s&p 500 can fool them from time to time. and the s&p 500, 50 stocks make up 52% of the p dailyce move. that's why it's so important to monitor the data that yough ght and that's to get a pulse of really what's happening in the stock thmarket. 's what's happening with the average stock out there. so i think it's important to monitor that because what have we are seeing today. >> but here is the point we get to as a market rall the more stocks you have participating, the more sustainable that ral is. but when you have fewer and fewer stocks parting as the market continues higher which is what the numbe

suggest. eventually the rat rally peters out. do you agree or not. >> i do agree. it's a gauge we monitor from the strategy area. and i'll highlight for instance if gou back and look at 2aw4, 2015 weomething happen in the small cap stocks. the index was barely off the high process. but you are seeing a huge percentage town 20% or more eventually the index went through a decline before findino the b in 2016. that's why it's so important to monitor what's goingn. and what what we see today is something we pay attention to. but i do caution you that it'e not w to focus on one indicator alone. and you must focus on the entire array of indicators. we do think tha factthe economy is strong, earnings continue to be strong, we continue to be bullish on the market appear and by what about the pullback? we are paying attention to the hilight. and if it stabilizes and runs to

a new high other 12 months which we think it can. if it remains at a high level of stocks that are down it a problem down the road. >> you answered my next question kind of, which is toake it actionable for the viewers, if you have view efewer stocks participating in the upsurge of the market as a long-term investor what do you do? you mention you buy the dip. but for the average investor out there, what should they be doing? >> yeah, no, it' agree a great point, sue. the average investor should not be overly consume with t data we are throwing out there. they should be aware of it. and if they e working with an adviser, most of the advise are looking at this data in conjunction with others, which i mentned before. the caution in focusing on one data point. the investor should be aware of this. the investor should look at their total portfolio, assess what's happening in the overall economy and t where earnings extreme of the stock market because that makes it go higher,

and if it continues strong which it is today. >> righ >> then i think what we are seeing as far as underneath the surface wil correct itself and fix itself. >> mike gibbs, thank you very much. mike with raymond jas, bill. elsewhere, the federal reserve as we have been report something the target of growingb criticism the president over the pace of the recent interest rate increases. t the minutes of the fed's last meeting released today show thatak policyers intend to stay the course. steve liesman reports tonight for us from the federal reserve in washingn. >> reporter: when fed officials raise rates in september by a quarter point mutes of the meeting showed they suggested there was more rate hike work to do inhe months ahead. they showed that most of enemy thought further rate hik ep needed even after the 2.25% range in a number of felt they might have to act to slow the economy, that is levy quote modestly

restrictive rate in order to slow the economyucown and rede the risk of overheating or overshooting on the 2% inflation arget. behindll this were optimistic viewsn the economy. fomc members saw strong growth and some stronger than anticipated along with low unemployment. they said part of the strength came from the effects of fiscal stimulus. but some saw of the effects of the the stim laws wearing offer in coming years and there was concern about the trade disputes with weaker overseas growth. there was also worries that the financial troubles in some emerging markets could spread to other countries. overall, fed officials, though, thethe risks as balanced to economy and said on the up side maybe that fisk the stiullus work out better than forecast. for nightly buness, i'm steve liesman in washington. homemade building activitd dropore than than expected housing starts fell 5% last month. the biggest decline in the south

which accounts for theulk of home building. mortgagey total application volume fell 7% in the recent week as rates rose to near 8-year high. housing stocks were all lower in today's session. well, when it comes to a ayssible trade deal with china, president trump that the two countries are just not yet ready to start talking dagain. an that sentiment wasto echoed y by the commerce secretary. >> i don't know that i'd call it a continued impasse. we are where we are, and in any negotiation there are ups and downs. there are hiatus and more active periods. so it appears as though we may be in something of aw. hiatus by the way, late today, the treasury department declined to lal china a currency manipulator. that's a title that has been threatened but not used since 1994. the report released today says that no major trading partner

met t cite to be designated as intentionally manipulating its currency. but chi was put on a watch list along with a number of other countries. farmers acr this country are feeling the impact of the trade war with china. soybeans in particular have seen prices plummet. and now there is a glut of gin on the market. ylan muy is in fronting port, indiana. >> harvest is in full swing on ke's farm. he expects a big haul this year. and he is not alone. here in frankfort and across the matterland farmers are pducing more soybeans than before. over 4.5 buberls were expected this year. >> i thought we had a good crop and it was growing well. o> soybean production is expected t hit a record high asd derops off because of the trade wars. soybeans are the untry's top agricultural export with, total attention 22 billion last year, more than double the a corn

exports. and china is the biggest foreign buyer. but over the summer it hit the industry with a 25% tariff. now mike is facing a glut of grain. >> best case scenario wou that we have profitable talks with china. but in tariffs retaliation behind us. >> here at the at siel o ner filling up fast with extra supply. not only soybeans but corn. th got hit too. >> farmers with available storage are storying more, especially soybeans than typically. >> to make room. kokomo cleaned out an unused building, leased extra space and mo 2 billion buberls under the tarp. >> we have gone to extraordinary means to com up with space to be able to handle this crop. >> farmers typical str to store at least part of the harvest. but stock piles are at an all-time high. about an hour away from komo

brent bible has 90,000 bushls of soybea stored on his farm. >> it's tough to get everything in anprocess. elevators are running out of room. terminal rts running out of room. >> if all goes well theos sil could be cleared out by spring. and farmers could turn a profit by selling grainn at a lower price. the government also promised up to $12 billion in aid process. but if the trade war goes on uch longer, he fierce chinese demand for u.s. soybeans could disappear for good. >> personally, i think we have lost the share. but there are opportunities here. there are oer placeshat on this earth that consume soybeans and corn. and we need to investigate and work with those people that -- that are a potential market for us. >> on the efarm, h springs eternal. for nightly business report, i'm ylan muy in fronting fortunate, indiana. >> well the u.s. is once again

the rld's most competitive economy. this is the first time the u.s. has reached the top spot on that list in a decade. the world economic forum compiles this listing of countries based on things like workforce diversity, press freedom, labor rights and disruptive busin cses. singapore in number two. germany r tnded outhe top three. it's time to look at some of today's upgrades and downgrades. home depot and lowes gund grade the at credit swoos. the they are concern kwern about afford obltd on home prices. the pri target on home depot was $204. the target on lowes is 111. home depot fell 4% lowes off 3. netflix was ground graded at key bank-one day after the belowout earnings. analyst s fes need stronger revenue growth not is just

subscribergrowth. it's 377 target. on the back of theuarterly port the stock is higher to 364 pft 70 pch arican airlines, delta and united continentalle were upgraded to buy from hold at deutsche bank. the analyst cites theueer years ability to manage fuel costs. the firmon noted str passenger demand in the u.s. and the trans-atlantic markets. shares of american, delta and united were all higher. still ahead, why the u.s. watche the green rush in canada. employees at u.s. steel are set to get the bigest pay r in years. 14% p over a 4-yeariod. all the result of a new deal

negotiated with the company. some also sayse it's bec of the white house's clamp down on steel imports which helpedli to steel prices in the u.s. the agreement still needs to be ratified by the company's 16,000 workers around the country. >> canada today became only the second country in the world to legalize recreational marijuana. but the closely watched move north of the border failed to inspire investors. pot stocks like cronos, tilray, canopy growth and aurora cannabis sold off in trading today. dedra bosas in st. en john's newland tonight. >> 5, 4, 3, 2, 1. >> as the clock struckidnight? st. john's history was made. >> recreational marijuana became legal in canada. all day starting on the east coast and moving west with the sun similar scenes of

celebration played out as prime minister justinrudeau makes good on his 2015 campaign promise. the first sale went to ian power in new finland who said it's his dream to be the first person to buy the first legal cannabis in ktd. >> i never thought it would be . le and then when it started rolling about ten years ago, i've helped people to get medical marijuana. i'm happy for cannabis users across the not just me. but people wanting to have a safe recreational past time and for m research for cannabis in the future. >> other countries that are moving slower toward easing marijuana laws like the u.s.re watching the rollout csely. uce linton, ceo of canopy growth, canada's largest pot company says regulators from europe to south america are using canadian regulations as a blueprint. >> what they say isasanada the best set of rules. we're taking them and turn them

into a portuguese language or platform and the plaorm is der the best. canopy is the leader in that. and we have this global thing happening at an unbelievable rate. >> the store has already solte of thousands of dollars worth of legal pot on day one. but that's just a drop in the bucket. andhat's expecte to be a $5 billion industry by 2020. that could pro electrocutive for the canadian gover the country's private sector. losers could be players in thea ican cannabis industry where marijuan remains federally illegal. but there are still many f unknownsor the now legal market in canada from the enforcement of regulations to supply shortages and online sales and canada will have to contend with the questions on a global stage as the grand cannabis experiment plays out. for nightly business report, dedra bosa. st. john's canada. a food fight at campbelle soup where begin the market focus. the company's err heirs members

of the doren family are taking a standing against activist third point. dan lobe had been aushing to ou 12 pems of the board of directors during the november meeting. he has also called for the sale of the company. third point said it's not surprised by the dorance family resistance to allsthat. k fell 5% today to $36.32. casino mogul tillman fertitta approached crease ars tertainment about a merger. it's unclear whether it will entertain the offer. it sent the shares of cease ars to $10.21. a and winnebago revenues exceedside 2 billion for the first tim in thecompany's history last quarter. the results released were better than expected thanks to strong demand for some products but on the conference call the ceo told analysts it's facin higher material and labor costs. >> the cost impact of the

tariffs on the rv and marine industries havnbeen real and some cases are ongoing with the new rounds of tariffs imposed against china. really just now beginning to impact our fancials. >> winnebago stock gained 4.5% to $33.20. now drengs is no consider systemically important. it removed the label freeing enemy from rigorous oversight by the federal reserve. prugh contention says it's w pleasedith the decision. the stock was up to 99.70. general electric reportedly beat out simons to landra an power contract according to the financial times. the deal to supply power toco tt try is worth about $15 billion. 9 cents to se $12.19. and the aluminum producer alcoa report better than expected earnings thanks to a rise in the price of the metal. the company announced a share

repurchase of $200 million. the stock rose in initial after hours trading extending gains from the regular session. during the last full yearn business, back in 2016, toys "r" us bught in $11 billion in revenue. now that's -- now that the toy icon is gone, a slough of big players are vying for a piece of the sales. target and wal-mart are t just two of the many familiar names that recently announced plans to expand the instory and online toyer ogs. joining to us handicap which companies may win, lose as they tr to win this category, lind aire bolton wiser is senior search analyst with d.a. davidson covering consumer product companies. thanks for joining us. >> thank you. >> there is a scramble going on right now. >> yes, absolutel abou 15% share of the u.s. toy retail market up for grabs. all the b retailers are making plans to try to grab some of that share. wal-mart, target, amazon all

ha special initiatives they have announced to put more emphasis on the toy ytegory. >> t each have different plans or initiatives as you mentioned torab market share. which one do you think might be the most effective? and how are they going to fai agains amazon? i think eachink -- of them is going to be able to you know gain their fair share. you know wal-mart in particular is stepping up t anding to be a more experiencing type of retailer the way toys "r" us was and they are having instore events leading up to the holidays. amazon reportedly will have a ecial cattle og and distribute at whole foods markets. target has expanded hot toy list and expanded number of skews they carry for the holidays. they all have plans in place. >> there is a thought whenoys "r" us went under that maybe some of the market share just disappeare and won't come back.

in other words we won't see all of the sales that toys r used to enjoy going tony of the new competitors. what do you think? >> well, no, i think that, you s whathe demand for toys it is. and in the united states right now the toy retail market isow g healthily in the mid-single digits. soem consumers willd the toys and purchase them regardle of how many outlets are out there selling the toys. i do think that -- that the market once we get past this ansition period will remain very healthy. >> that's the retail side of it. what about companies producing the toys? who is best positioned do iu think for upcoming holiday season between the a hasbut ro and mattel and the like. >> the larr companies with the otwer brands like nerve and barbie and wheels these are going to be featured by the hot retailers thiay hol

the larger toy companies can benefit. some of the t smaller companies relied on toys "r" us to distribute and sell products those are theha oneis might suffer here. and some of those quite frankly wo wt survive. l it's going to be a very interesting holiday shopping season. we'll see how it plays out linda bolton wise we are d.a. davidson. thanks for joining us. >> you're welcome. coming iup, anustry taking off. >> business jets rows once again in demand. why is the industry soaring to new heights? i'm pl lebeau. that story coming up on nightly business report. onegindustry that's s in the economy right now, corporate jets. jet ct the business business is finally getting a lift after a decade of trying to clear out the problems csed by

the great recession of the past decade. industryeaders recently met in orlando, florida. and that'sre w we find phil lebeau tonight. >> reporter: they are big, high-price and very much in demand. corporate jets from small ones ewselling for a million dollars to a big boy going for tens ofmillions. they are once again hot sell clearly the global economy is very strong right now, particularly the u.s. and business aviat tends to follow the economy. so this is a particularly good time that we're seeing t for aviation industry. >> after business jet sales losa altituecade ago, the recovery has been slose mainly bec lot of used planes held down demand for new ones. that's no longer the case. the the the 600 jet is atracking heavy interest. >> we have sales for the prade

six-and 500 and seeing momentum for existing skpers and news custom coming to the brand especially the corporate flight departments. >> the corporate tax cuts and deregulation under therump administration convinced more companies it's time for a new jet. the lest models can fly further with more connectivity and features attracting a wider arra of buyers. >> there's been individual buyers, private companies, mall companies, large companies. i think everybody benefits from at. i think you'll see that the next couple years. >> historically this is a boom ant industry. with jet makers overbuilding in good years but this time industry leaders believe it will be different. confidence they c keep the business jet business soaring for years to come. phil lebeau, nightly business report, . orlando, flori and a private jet could be yours if you win the megamillions jackpot. now the second biggest in u.s. lottery history. now com wne thath power ball and the payout could exceed$1

billion this week. of course if somebodys. franknd hol is in ten fly, new jersey where the lottery fever runs hot. >> reporter: more than a billion reasons to play the lottery. >> eachf one these tickets could potentially change my life. >> gary is playing to win a hoping to hit it big. >> i try to tell ople, someone is going to win. why not me? la all around the country people areng megamillions and power ball. >> michael palmer, picking six numbers and hoping for onee of ne-digit jackpots. >> you have to give yourself the opportunity to win. >> bhe powerl drawing for $345 million on wednesday night. megamillions on friday. it now has a $900 million jackpo with a potential to grow to a billion dollars. >> with the pot being as big as it is, you obviously you want to give yourself a chance maybe

multiple cennces dng how much money you got in your pocket. >> thank you. >> these dayshe chances of winning big money are actually slim. both the megamillions and power ball changed formulas to increase jackpots and attct players. that comes with longer odds. >> random. random. just random >> that's stacey bailey's strategy. lottery officials say about 90% of the big winners do it the same way. >> it's taking a long time to figure out what to do with the cash. >> larry says he plays for fun with coworkers. >> what are the plans you actually win. >> depends how much wein. i won $8. >> can't do much with that. that'she upside of the new formulas new winners for smaller price prizes. . but most have the same big dreams. nightly business report, frank holland, in ten fly, new jersey. finally tonight a familiar face or bird is retiring.

big bird is retiring after 507 years. carroll spiny says he tomorrow is the last day he oscar the grouch. spiny has been praised for talent and gens and breathing life into two popular puppets. we wish him well. >>d. a look at the day on wall street. dow fell 91 points, had been down more than 300. nasdaq down 2. s&p off a fraction. this that does it for us tonight. thanks for joining us. >> i'ml b griffeth. see you tomorrow. >> good luck in the ylottery. . space.

bbc world news funding of the presentation is y the freeman b foundation. foundation, pursuing solutions for america's neglected needs. >> had fall it's the seas of revelations. >>loe want people to take a at.