angles this is nightly business report with sue herera and bill griffeth. bounceback, wall street rebounds from yesterday's steep decline. but can this rally hold? attention turns to tech. alphabet abamazon and intel, key drivers of this marketthally year are out with their earnings. and the results could set thene toor tomorrow. the hunt for y yield while may be able to find it in some rather pricingplaces. those stories and more ton on nightly business report for thursd, october 25th. good evening, everyone and welcome.bi griffeth is off tonight. what a difference a day makes. stocks surged after yesterday's steep slide. pushing the dow and s&p 500 back in the positive terriry your for the year.

upbeat earnings report calmed nerves for today. and the focus onuarterly reports put issues like rising interest rates and global growth back on the back burner. here are closing numbers for from wall street. the dow jones industrial average rallied 401 to 24984. the nasdaq advanced by 209 and the s&p 500 added 49. so is today's move to be believed? or is it just arm short- bounce? we are joined from kneela richardson, investmentte stst at edward jones. good to see you as always kneela welcome. >> greato be here. thank you. >> let's start with what you make of the boceback we saw today. >> well, i think that bounceback as you callor itthan a bounceback. i think it really is to bebe eved. what what we are seeing across the corporate secretarier is really strong earnings. earlier ithe week the market really got caught up in the trees for the forest you looked at trees instead of forest.

and what the market is concerned out is thr issues, trafrs higher interest rates and slowe global growth. they focused on a few high profile nameshat indicated higher costs going forward. but this is inonxt of really strong earnings. and really strong growth. and so we believe that a combination of solid growth and solid economic f damentals means that the overall outlook for investments is very stro. >> do you think, though, the volatility we have seen this past couple of weeks now -- and especially in yesterday's trading session, do you think that's here to stay. >> it's here to stay. and you know it's normal. and -- i know it feels we're not used to it. last year the market went through the entire yea with never seeing a decline or a selloff more than 3%. but the truth of the matter is this type ofil voly is part of normal investment cycles. and especiay as we get to the

later stage of the bull market we can can expect to see more ebbs and flows. prices go up and down but the trend is still positive. >> you believe we are still in the bull market trend but where would we fall in the cycle?at >> we are with in the late stages, in a position where the bull m rket has beenning the increase in share price year after year has been running f ten years and so we are starting to see the signs of aging. but the aging does not mean decline it means volatility, a turn to normal volatility as the fed returns to normal interest rate policy. as we get t more normal financial conditions. that means that we expect 20% earnings growth this year more than 20% and double digits next year we will still s retur even in the late cycle. >> we have to leave it there, kneela. thank you very much. kneel aif richardson with edwa well investors hope that

intel keeps the rally going tomorrow. because late i do the dow componenni the es revenue and estimates on strong demand for kmips in data centers intel earned 1.40 a share easily beating expectation o 1.15. revenue rose 19% to $19billion. and investors also cheered the upbeat guidance sending the stock higher in initial after hours trading. john fort that is the details? a solid beat came in a billion dolls above expectations. he reason why the p.c., the good oldp.c. keeps on going. p.c.s and dusa centeriness usiness forward where a lot of people in the industry and some could argue intel itsel left that business for dead. we have to see how far they can ride it. apparently into next year. for nightly busins report. john fortt. >> and now to amazon turning in

a record profit and blew past earnings estimates but sales not as strong a hoped and neither was amundsonen's outlook for the holida quarter. the company earned shh 5.75 a share. estimates were there 3.14. revenue of $56 billion up from last year but less than expected. and tt sent the stock sharply lower in h initial afterrs trading. has morea >> the main things investor focus on is amazon's outlook for th holiday quarter. usually a blockbuster run for the ecommerce giant, amazon's guidance failedo impress the street. brian osalsky said they anticipate a strong holiday ason and everything is ready to roll. analysts are getting nervous aboutg costs, particularly wage inflation as amazon raises minimum wage for workers in north america and as that faces potentially higher shipping costs from u.s. postal services. amazon's other hike rose cloud

computing advertising and subscription services, they performed as analyst expected. and the company notched another quarter of record profit. noe focus is squarely on the holiday sales. for nightly business report, i'm dedra bosa, vancouver, canada. >>'s goog parent alphabet reported a rise in profit but slow growth in revenue. the company saw sales from advertisingisusiness revenue from the cloud unit also grew but not as fast as in previous quarters. the report comes at a time when google teals with a growing backlash from regulators over privacy. the results caused the stock to dip in initial ter-hours trading. and as all the earnings roll in some market watchers are ying to figure out what might be in store for next year. bob pisani takes a look. >> reporter:he stock market is a voting machine on next year's earnin for the the moment it's doubtful that they can deliver on earning growth and 10% and revenue growth of 6%. why is that?

because the macropicture is more complicated and frankly more confusing. six months ago we were dealing with a strong u.s. economy taxc and less regulation. and frankly in the much else. now, the picture is much more complicated. with china slowing, tariffs, the feg hikin too aggressively but also a host of smaller issuesol like strongr higher labor costs higher raw material costs, a populist government in italy and the possible isolation of saudi arabia. however, the main macroccerns are very obvious. china slowing and the fed hiking tooheggressively are main issues that everyone is believes a glass is half empty. how much less, the bulls think the growth is 7o 10% in 2019. the market seems to be telegrachg that's unlikely. the s&p 500 is trading at 15 times 2019 rnings. it was 16.5 a month ago. is a the multiple reflection of the price investors are willing to pay for a future stream of earnings this multiple is telegraphing that the market believes earnings

might be lower nan anticipated next year. intsz of maybe 10% earnings growth, the market seems to anticipating growth of roughly half that that's a big haircut esr nightly bus report, bob pisani at the new york stock exchange. it's time to look at some of today's upgrades and wnades. tesla upfwraded to outform to peer perform at which will of research the analyst siting the free tasch cash flow and focused on cost and capital fishesty. as we reported yesterday tesla reported a profit for the recent quarter. rice target is $410. the stock rose 9% to 314.86. hilton upgraded are from buy to neutral at b riley fbr, the analyst cing the pullback and calls it an attractive entry point. the target is $85 up more than 5.5% to 67.5 a. ups downgraded from neutral to buy at maile leverage.

the analyst cites the deterioration of marlanaens in the third quarter. e price target is $116. the stock fell a fraction to $107.82. and still ahea talk of trafrs is springing up in new sprays from the federal reserve. president trump proposing sweeping changes to medicare drug pricing wanting to make some prescription drug prices more comparable to what they cost in other countries. >> we are taking aim at the lobal free loading that forces american consumers to subcyize in foreign countries through

higher prices in our country. the world rea the benefits of american genius and innovation while american citizen and especially our great seniors who are hit the hardest pick t up tab. but no longer. the regulation would set up an international pricing index that would be used as a reference point to set prices for p drugsd for through medicare part dp and the president as you kno very critical of the federal y.serve interest rate pol today, the central bank vice chair said more rate hikes are warranted. in his first major policy speech since beingeated at the fed. richard claritia said the strength of economy broadly and the job market in particular has surprised him. >> based onea myng of the accumulating evidence, i believe that trend growth in the economy may well be faster and the structure rate of unemployment lower than i would have naught several years ago. >> claritia's view of monetary the datauld change if

shifts and inflation turns lower. tariffngoncerns are slo up in the fed surveys just yesterday the beige book mp described thet of the trade war on america's farmers, somethinge have been reporting on from different parts of the country. adee dee roy has the details. >> farmers across the country feel the pain of tariffs, according to the fed' latest beige book. soybeans appear to be especially hard h. the chicago fed reporting farmers see a notable drop in chinese purchases of u.s. soybeans, following an increase in chinese tariffs. the minneapolised also reporting that worldwide demand for soybeans has fallen. dramatical and as demand falls, so does the nrice. soybean futures pace for their worst year since 2015. analysts don't expect relief in the near future. >> the supplie huge and no where else to go with the future prices but to go down. >> the beige book remarks also

align with the latest usda data on soybeans last week the agency reported that since september 1st u.s. shipments are down 97% from one year ago. th hardestit areas are along the mississippi river. columbia river and pujt sound. this after china cancelled 180,000 metric tons of soybeans exports for m theketing year. >> i think the announcement of the cancellationo of exports china is like the last nail in the coffin that we are going to bee sitting her and maybe a little b lower until the end of the year. >> dairy farmers are also struggling president trump in ng the in wednesday tel crowd the new nafta agreement helps u.s. dairy farmer bymo ng bar years to the canadian market. >> now as you kw the canadian market which was not open is now open. go do well. >> his comments come one day after the national milk

producers federatioent this letter tore agricul sonny purdue asking for trade aid and siting studieds say dairy farmers los more than $1.0 billion because of the trafrs. dramaically higher than the more than $200 million of federal aid to dairy farmers from the administration as a result of but earlier this month agriculture secretary sonny purdue told reuters the $12 billion to u.s. farmers could shrink after the new nafta agreement was negotiated. other crops also seem to befe ed by trade tariffs. the san francisco fed says wheat and fruit grors inashington state are also seeing a slight decrease in demand because of tariffs troubles. for nightly business report. adidi roy, san francisco. cancer drug sales powered quarterly ses forerck and bristle myers squib. that's where we begin the market focus. the better tn expected third

quarter profit and raised the 2018 earnings forecast thanks t revenue from the immunoon college distribution. america raised the dividend but the mix. bristle mrs squib gained 1%. investors remainkeical about boijen alzheimers dru one analyst says the data released was thin and suggested the treatment may onlyork in patients with a specific genetic variation. other equalled the latest daft kufrz ppghe shares were down 1%. american airlines gave an upbeat outlook for profit margins forecasting an additional$1 billion in revenue next year. but in the current quarter the carrier said high fuel costs cut into profits. >> this run up in the last, you know, 10, 11 months of nearly s doubling, tha volatility and falling off in the last we can. it's definitely volatile. but it's not for to us try and

predict where it goes. we need to make suret's one of the large cost components when the cost of production goes up we need to make sure we are being able to pass that alon >> shares of american airlines popped more than% to 3237. hershey plans to raise prices. the company will start charging more for chocolate as higher costs eat io profit margins food makers have squernlly fed record shipping costs as well as rising ingredient costs. hershey shares off nearly 5% to 102.84. comcast reported a z rise in prit the broad bantd business more than offset a decline in cable tv subscribers. ant ceoaid comcast sky deal makes a lot of strategic sse. >> sky does look a lot like comcast nbc universal. that subscription model that market leadship, in re brand is better than any media brand in the u.s. or communications brand.

they are a products company and they have greet leadership. we are going to drive a company so unique and now global. >> come of the cast, the parent company of cnbc which produce this is program, saw its shares finish up 5% to 35.84. and twitter's earning better than expected thanks to increase in adnu re the social media company reported a decline in monthly active users but had previously warned that its efforts to remove fake accounts would likely have this effect. but the company says it's having success atracking new users. we see lotsf opportuni to grow dau. that's the best way to measure whet dr weve usage of twitter at a daily utility growing 90 peppers the past quarter. eight quarters in a roe it's grown. and between the product yochlts over the couple years and all the opportunity we see to the serviceimprove >> see lots of ways to drive dau growth. and twitter shares jumped

15% to31.80. well investors on the the hunt for yield may be basking in the recent stock market selloff. until recently dividend paying stocks had been underperforming the highec flying names but things reversed and now investors look fory. saf we are joined by portfolio manager at point view wmelth mana to discuss where you may be able to find some of that. good to see you john welcome back. >> thank you. >> it's hard to see people are basking in the lloff. but this is the first time in a long time that we have seen interest rates move decidedly higher and stay higher. >> right in this environment where we had quantitative or money printing where the federal reserve kept interest rates low soan long howtimes have we discussed investors looking for yield with, grabbing anywhere for income. now with the selloff and nterest rates rising yield is abundant it's easier to find than at any point in the pasten years. >> and you worked up names for us-on say some of these all have

a little bit of hair on them meaning there may b issues within the company they are working to resolve. one of the companies is ford. and the big question that analysts have been asking is whether or not the dividend yield ond is safe. why would you put money in ford right now? >> well, ford is really a good total return p you get a 7% plus dividend yield. the company reported earnings yesterday. much better thanexctation. but it is the valuation is so aw, the bar is so low for company like ford that they just really have to step over it don't have to jump over t beat expectations that's the why looks attractive. >> some of the other names on the list include at&t, gm, invesco andouthern company. >> um-hum. >> gm, i'm interested in that beca pe gm has beenforming better than ford certainly. why do you like that auto space so much? >> we, again, they are cyclicale companies. s. kpee doing well.

5% dividend yield upon a high quality company like general mortgagors gm has a stake in lyft, the competitor to uber >> that's the tech side of. >> tech side of it. i do think that's an option that's not being fully priced in for the stock. and i think you know with the yield at the current valuation i think gm is a good stock. >> what about investors who may be retired or not comrtable putting money in stocks right now in a big wat what p of the yield curve would you like, the bontd market. >> if you go into fixed income, i don't think you have to streh too far to pick up yield. you don't have to go out, 10, 15 yearso pick income. you can go out three to five years. bonds aed r or better and you get a 3% to 4% return taking on much risk. >> on that note johnnk tou so much. we appreciate it. and coming up if you looking for a reliable car she tried to say, you may want to avoid buying american. >

altriia is pulling vaping products off the shelves.co the tob giant says it plans to stop sell the devices until the fda approves them orsh the ld have of teens becoming addicted to ecigarettes is addressed. altriia said it would refrain from selling products with any flavor other than tobacco, mint

ormenthol, the fda recently targeted the ecigarette makers ging them to pu measuring in place to prevent teen vaping. ford is recalling nearly 1.5 million focus vehicles on concern that is a flaw in the fuel system could cause theen ne to stall. this recall applies to focus model between 2012 and 2018. with two-litter four cylinder they are strucking owners to keep the tanks half full until the issue is repaired. if you rp in the market for a new car you want to see this. consumer reports latest survey calls iueoion the rely ability of many new models, particularly those made by u.s. auto makers. so which companies came out on top and which lagged fill lebeau breaks it down. >> reporter: the show rooms may look the same but the cars and trucks we buy are quickly changing creating n problems for owners. consumer reports which has rank

the mostst and lea reliable auto ands forears says the latest study finds domestic vehicles are average at best. ford leads the list but overall su.s. auto m are struggling. especially when it comes to advanced transmission and turbo charged engine. >> announcer: the domestics faired worse than they have in years. because of many new introductions and the addition of new technologies. >> of the 29 auto brands evaluated by the owners tesla comes in third to last. in part because new software and hardware additions to the model s are not working ass owner expected. anwhile, tesla's newest vehicle, the model 3 has a higher reliability rating because it's not a complex. overall toyota and the luxury line lexus are once again ranked as the the the most reliable modelsn why consumer reports says they are conservative approach to making big changes under tod ho means fewer things go wrong. >> the tesla modland 3 up to

this point has been a simpleca now they are starting to deliver cars with all-wheel drive. they are talking abo adding the air suspension to it. this is a performance model hopefully they maintain the reliability the of vehicle as the complexities increase. >> consumer reports new cars and trucks have strong reliability. e issue is when makers push to make the models more advanced with new technologies. features car buyers love when they work as promised. phil lebeau. nightly business report, chicago. > finally tonight not only are cars going high-tech but so are bank and it may mean robots will one day be a main stay at the local branch. leslie picker recently attended the money 2020 conference in las vegas. >> come talk to me. >> meet pepper. she is a robot created by

softbank, a conseerj of sorts for the banking industry to help customers figure out tasks le depositing checks or opening accounts. the london based bank hsbc thinks pepper is a answer to servicio and next gener technology for the branches. >> it's incredible the feedback and we are learning this is history. no one has done this in a us bank branch. we are learning --ughsbc bro pepper to the money 2020 event in las vegas that gathers together hundreds in the financial technology industry to discus future of money. i decided to take pepper for a test ride to see she could do. pepper tell me about credit cards. >> whether you are looking for ashback promotions low introductory apr or capital bifurcates hsbc offersie a v of credit cards to meet your adds needs. e or tap one of the options on the screen to learn more. >> cash rewards.

>> would you like to learn more about plooirgt for the cashs rewa master card. >> tech link. i just got it. >> when you hear the word robot, you mayhink job replacement. but hsbc insisteds that pepper isn't replacing any jobs. she is augmenting tse tha exist by handling the more mundane tasks. hsbc says pepper ensures customer privacy. >> there is zero customer data. zero personal ide information. and pepper is not asking for it not storing it not recording. >> each pepper costs about $25,000. an investment that hsbc says they recoup the just three hours after installing her at their flagship location in new york this summer. the firm says she has brought in more foot traffic and those customers have signed up for credit cards checking accounts and other revenue generating products f the company. but pepper's not all business. she loves to show off her moves.

tell jokes. >> what do you call an alligatorer detective. >> i don't know, pepper. >> an investigator. >> and eve take a selfie. >> regardless of the gimmicky side hsbc is eng banking on pepper even if she just hel someone crack a pile. for nightly business report, leslie ecker. >> her is a look at the final numbers from wall street. the dow raled 401 points. the nasdaqvapsed by 209 and the s&p 500 added 49.th does it for us tonight. thanks for joining us tonight. i'm sue herera. we'll see you tomorrow

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