this is nightly business report with sue herera and bil griffeth dramatic finish. the market surges as the bulls gain control ofet wall st at least for today. statusbo update. fa marks one of the most kief periods in its history with a big earnings beat. but weaker revenue and slowing growth rates. electric shock. e.'s dividend runs out of power. regulatorso widen probe i accounting and the stock falls to a multi-year low. those storiesh and muc more tonight on nightly business report forhis esday, october the 30th. good evening, everyone. and welcome. what a finish. stock rallied all day long and then surged into the closing bell. money flowed into sectors

punished recent pushing tech stocks higher as well as materials, energyr real estate. today's gains follow the big move lower yesterday. an month of swings that left vestor was whiplash. the dow jones industrial average soareds 431 poi to 24874. the nasdaq was up 111 and the 41. gained and while the gains today were welcome, would investors perhaps prefer to see a bigger pullback before heading higher. mike soonlt y tackles the request he. >> the brutal selloff has cut the sell i don't have by 100% and led to index dlines on 18 of the past 23 days. now traders are waiting for a wash out wn a persistent market decline accelerates to a indiscriminate selling accompanied by panic. such a surge ofns de

precedes a rally and even a lasting market bottom. the trouble wit a washout is there is no agreed upon metric for iefgt one. not every steep decline necessarily gets t to dramatic stampede of the herd away from stocks. but some of the markings of the washout include more than 90% of all stocks declines on heavyni valet com by a rush to treasuries dropping the yield sharpl a surge in volatility dks in thw ne high above 30 in above pcent peaks in the tos. a recentlytern of half hearted rallies shortly before the market closesrented the market from reaching the extremes. that's not to say the market needs to fall that much farther ner t short term to fll fully exhaust the the fright.ld the it c correct with a few days of calm. but ironically aol bottom sometimes requires the market action suggests that the trade

remembers frayed the bottom is no not in sight frmgt facebook is the last of the so-called fang stocks toeport the latest quarter. the others who recorded amazon abnetflix and google parent alf bet. the social media giant results took on greater importance given the issue it has been dealing with like privacy data breeches and electio interference. after the bell tonight facebook easily beat profit expectations earning $1.76 a share when wall street's expectations were for $1.47. revenue up 33% from a year ago to 13t billion but ts slightly less than expected. you have volatility in the after hours. the stock initially fell and then moved higher. julia boorstin has more on ok face results. the growth of facebook's user base is slowing. gt the social mediant is still fwroeing its profits faster than expected. facebook growing earnings per share by 11% instead of nearlyl

8% d analysts anticipated. facebook grou the daus by 9% from the year earlier while moll users grew 10% but down fromdi 11 guaran greeting of both groups a quarter ago. mark zuckerberg looking to shift the conversation away from the core service and slowdown to the apps. saying 2 billion people use one of the messaging servicesvery day. saying they are building the best messaging and stories and there are huge opportuniti in video. and commerce as well. dow component coke on a health kick. higherales of sugar free sodas and vitamin water helped top itvenues and earnings estimates. and bend from higher prices and that benefitted the is to being price rising 2.5%. sarah eisen with the details. >> reporter: a beat for coke and sowt of the best g we have seen in the entire consumer

staples industry. organic growth which is the industry metric up 6%. why? coke is growing eecially coke zero sugar growing double sugar. dooit coke i resonating with millennials after declines thanks to newvo flars and slimmer packages. sparkling water and smart water continues to do well. those are some highlights. and it really was a global story of strength. andhat's been a moreom difficult ec environment around the world. >> clearly as we have gone throyeh the , the headwinds have got a little tougher. the macros around the world are perhaps sof a little, particularly in some of the emerging markets and comin into q 3. and we have seen that affect us in t exchange rate obviously being in over 200 countries we bring money fm around t world back to u.s. dollars. and that's gone against expectations and turned to more of a headwind in the second hf of the year. >> the strong dollar s ved off

points of coke's profits. but the take away, the company urimplemented a around under ceo james quincy spinng off bottlers, focusing on benches growing. ndfocusing on b doing better around the world and simplifying the business. he made some big deals during the quarter buying both hosta coffee and investing in body armor, a o pacef deal making he says will nott necessarily rep itself in other quarters. but that's what makes coca-cola a standout in a little to no-guswth iy of benches products.ousehold much lippen g. also realizing the fruits of a turn around. and another dwo component. pfizer reported mixed quarter. revenue fell short and the company narrowed the full-year forecast. pfizerriitedng pressure on

medicines along with increased generic drug competition and the stock fell a fraction on the big up day today. and then there is generaltr el. the embattled conglomerate slashed the dividend to next to nothing and regulators expanded the probe into its accouing. in aft reporting quarterly results that came in below expectations. the pile of bad news pressured that stock send going down more th 8% to just about $10 a share. morgan brennan has more. >> reporter: it was anotherk kitchen s quarter for general electric as the company slashed the dividend for theesecond time in than a year. the move came as the industrial gianturtruggled to around with a new ceo 30 days on the job. >> i know there is renew speculation on our future strategic direction. the strategy we announced on june 26th to create a more focus the portfolio that sets up the businesses to win and strengthening our balanceheet isoday the right plan going

forward. >> that strategy involvesng spenff health care and exiting oil and gas over the next few years. larry kul t use run dan a her where he had strong returns for he plans for a bigger plan in 2019. but today started the process with twohanges. the restructuring of the power business which continuing to suffer and overshadow better performing unit like aerospace.t and also draft cut to the quarterly dividend from 12 cents down to a penny. many on wall street expected that cut. but given ge ave longstandin reputation for reliable payout the move speaks to their cash crunch >> a large percentage of the shares are owned by retired employees. and individuals. and those folks, a lothe of were relying on the dividend.ee although i aith the decision to eliminate the dividend because they certainly ed that extraash for restructuring and dealing with

liabilities like y know a dramatically underfunded pension. >> but today's results left more questions than answers. since g.e. didn't update guidance butro discloseder investigations into the accounting practices a as the s.e.c. and justice department probe several multibillion-dolclr charges ing one today for the power business. for nightly business, morgan presentnn b at the new york stock exchange exchange. time to look at some of today's esupgrnd downgrades. we begin with nordstrom upgraded to outperform from neutral at wedbush. the analyst cited potential for revenue and gross margin npansion over thet several years for the retailer. price target $75. in order stro strom finished up 66.90. nvidia upgraded to overgraegt from neutral at jp morgan. citing the recent underperformance and sees stronger longtime growth ahead.

the price shares rose to 203 even today. and also with jp morgan shares of jet blue upgraded to overweight from neutral. the analyst sites the values calling it the cheapest of the domesticth airlines. price target is 20. jet blue shares soared% to 17.08. that same analyst downgraded southwest to underweight from neral. the analyst says the stock prices stalled out. the price target is $52. shares rose 2% to 49.15. coming up, the one concern that many republicans, democrats ead independents share as they get to cast votes in next week's midterm election. >>

former federal reserve jail janet yellen made comments on the enomy speaking at the schwab impact conference. she said she is concerned the economy couoverheat and that a couple of more interest rates increasesssre ney. she also said that the market volatility reflects the uncertainty surrounding the groebl outlook right now. the home ownership rate edged higher in the thirdte qu this as younger buyers entered the housing market the first time. according tohe census bureau, the totals share of american household thatwn o home ifrmgd upo 64.4%. separately home prices rose 5.8% in august compared to a year ago and that is t according the kay schiller home price index. that is the first time in a year

that the index has come in below 6%. well with the midterm earthquakes just a week away, the is one issue investors across the political spectrum will be thinking about going into the voting booths. us what it is. >> come on down you are the next voter. >> it's one thing that voters hfrom b political parties agree on. concern over the rising nat debt. that's the upshot of a new poll by the non-partisan peterson foundation. republicans, dhbts democrats or independt roughly 3/4s say the zet a factor in who they support in the next midterm elections. >> wenow the debt affects the economy, affects their way of life and incomes. and they want washington to do more about it. >> the foundation has lcag ed on lawmakers to rein in ng spen the deficit balloon today $$759 billion over the past year jump of 17%. next year forecast to you hit a

trillion dollars. but not everyone sees trouble on the horizon. >> people have heard for decades that large budget deficits are bad for the economy and yet the economy is doing quite well. i mean the unemployment rate is at an almost 50-year lowet we have the large budget deficit. it's hard to convince people it's that big of a problem. >> president trump is asking his cabinet to cut costs. >> i would like you to come back with a 5% cut can be get rid of the fat. getid of the waste. and i'm sure you can do it. i'm sure everybody at this table can do it. it will have a huge impact. >> but both republicans and democrat are floating proatsals ould come with big price tags. trump wants a 10% t cut for middle class household. corey booker wants to give every child a $1,000 savings account. and kamala hair sis calling for a tax credit up to $6,000 per

household. the cost anstated $3 trillion. >> the problem is sometimes campaign promises do becomere ity. and so to the extent elected leaders run elections and try to win with making pmises that we can't afford, that's dangerous. >> what doll voters r want to see? peterson says it's politicians reduci the deficit by reaching across the aisle. for nightly busines, repo ylan muy in washington. what does the market want to see from the mid-terms? jeff bush is back with us. he is a partner at the washinoion update and he us now with his thoughts. good to see you back with us, jeff, welcome. thank you, sue. >> you make the point in your opinion the markets have priced in a democratic house win. if that is the case, what has thearket not priced in right now? what might surprise the market a bit? >> well think there are two potential surprises, one the republicans would maintain e.ntrol of the ho and i think we would see an immediate relief rally. at some point the market will

remember that there are systemic issues to deal with, rising interest rates, the tariffus dion, trade wars and the like. which will tamphat rally down a little bit. >> clearly the economy is in good shape, jeff. unemployment, grow, you nam it. does that resonate with voters right now in your view? in other words does the president have coat tails that extend into the house andgn sene camp this season. >> where the coat tails exist they existg very l coat tails. the problem is those coat tails are not universally across t country. which is common for a president in hisirst midterm election. in texas, for example, i think those coat tails exist. we saw interesting polling today that showed th 8 % of texans believe the president is doing the rht thing and following the right policies. and you have to believe that's going to be very beneficial to ted cruz and the republicans and the house in texas. >> you have made the point you said when you talked to people and you go out and talk to

institutions that depending on the outcome of the mid- trms that president will find himself at a cross roads. what do you mean by that? how do you think he reas to it? >> well, that's exactly what we are talking about. the president after the election at some point he has to face the fact thate is at a cross roads, assuming democrats take the house. he has a choice at that point. he can double down on the republican all-base strategy he used the last two years or he could pivot to a 1996 bill clintonesque type of return and try to get something done. if he goes the dection of trying to get something done, i think the most likely candidate would be an infrastructure program under the guys of a jobs al. if heoes the all-base republican strategy that's wherd he doubln on tariffs, ramp up the discussion around immigration, because tarif and ade are the one area president trump has a tremendous amount of authority. >> however, if the hou goes

back to the democrats what do you think that does to his strategy on trade and tariffs d so forth. >> again the president has a lot of authority on tariffs and so forth. he can continue down that road. that's why i believe if he goes the all-base republican strategy we could see a redoubling of the president's efforts in that space. we are we could see trimming of the president's agenda would be tax reform. thhe's off table at the moment the democrats win the house and are install in january. >> jeff, thank you so much. we appreciate it. jeff bush with the washington update. >> thank you. >> well some market watchers say the esident's comments late last night that he expects a great deal with china on trade may have contributed in some way to the market rally. but the chinese officials were not pleased after the reports. yesterday that the white house wa considering an additional round of tariffs on chinese goods. eunice yun has the reaction for

us from beijing. >> reporter: china dismissed talk of more talk of tariffsre fromdent trump today. the foreign ministry says the u.s. noise won't intimidate ina reports said the trump administration would impose trafrs o china if talks between president trump and xi at the g20 resulted i nothing. the announcement could come as early as december and would cover the rest of the chinese go ns that are currently subject to tax and about $260 billion worth or so. more tariffs would put greater pressure on american companies a recently survey by the american chamber of commerce in china found 64% of u.s. companies polled were considering relocating production lines to outside of china because the trade war was hurting profits. the foreign ministry reacted to the u.s. commerce department export band on a chinese chip maker saying china hope the u.s. would do more to enhance trust rather than damage it. the ate-backed firm has been

accused by u.s. based micron technology of stealing secrets. but under the ban then' company be able to source important xenoens from u.s. su liers. the commerce department said the decision was made on national security grounds. and that is adding to a growing feeling in china circles that the real goal of the trump adminiration is going beyond rease and instead is to d america's depend on china. for nightly business report, i'm eunice yun in beijing. under armour's turn around takes hold. that's where we begin the market focus tonight. the athletic wear make are toed earnings and revenue earnings and raised outlook for the year. the company attribute the skrong quarter to rice in sales overseas and few promotions. under armour shares jumped more than 24% to $20.97. americans are swiping their master cards a lot. the r companyorted stronger than expected earnings and revenue for ter third qua

thanks to higher consumer spending. master card shares were off more th 1% to 187.73. profits a at bp hit fie-year high. erpgs for the quarter more than doubled and were bolstered by stronger oilce p and cost cuts. the company says production during the first nine months the year rose thanks to the tapping of new oil fields. shares of bp rose 3% to 42.21. aetna repord the profit of a billion dollars in the third quarter on growth in thedi re and medicaid health plans. the company saw the membership roles royce as well pl aetna waste better than expected results arrived as the company nears the completion of its b takeov cvs. shares rose 1% today to $197.65. tap evidentiary turned into a strong quarter thanks to the increase in demand for coach and kate spade handbags. the company plans to pull vrpt from department stores and cut back on flash sales as a way to

maintain exclusivity. and the ceo today said he believes the trade war with china is manageable. >> today, in fact, between three and 4% of our hdbags come from china. so we don't see a great impact fromny duties. and we indeed today announced that all of ourmpact this year, the 10% duty on travel goods from september to december, which could become 25% stting from january, have been embedded in our guidance. ll well, despite the good news shares of tap evidentiary fell 1% on this day to $30.42. and chesapeake is buyin wild horse resource development for $4 billion. the compa says the acquisition will significantly boost oil produc hon. chesapea historically focused on natural gas production. investors didn't seem do like thl though. they sent shares lower by 12% to $3.27. coming up, amazon's search

for a second home. >> amazon and nashville can they make beautiful music? i'm scott kohn and we loo at how nashville stacks up on ghtly business report. >> waymo has become the first company approved to test autonomous vehicles without safety drivers on public roads in until now, california has

required those vehicles to have a safety operator in the driver's seat.mi the p gives waymo a leg up on competitors like cruise which testing self-driving vehicles in frist. waymo is own by google. apple ceo tim to be cook was in brooklyn, new york to unveil a number of new products. >> it's time for a new mack book air. one -- one that cakes the mac book air experience even further in the areas mostnt impor to our cuomers. and of course what we all want in a mac book air is a retina display [ cheers and applause ] >> the mac book's new design is notewortause it had gone relatively unchanged sinceco010. thany released a revamped mac mini and an upgraded pair of

ipad pro tablets, all new devices have higher starting prices. have combinedad billion.venues of $45 amazon is still promising a decision this year on where it will locate its $5 billion second headquarters. heading into the time two months of the year, speculation is heirling among 20 finalist cities. scott cohn has been visiting al ofthem. and tonight he reports for us from nashville, tennertee. >>re: in music city usa they're convinced nashville strikes the perfect chord. >> we have the lowest taxes and lowest debt per capita in the country. and people realize that we value business here. >> it's a catchy tune. the tennessee economy by a solid 2.5% last year, above the national a with job growth among the best in the nation. despite that cost of living is a bargain among the lowest in any

big cy in the country. and in a place where countless people sought fame ty think amazon and the 50,000 workers it plans to hire can find exactly what they need here. >> they are looking for friendly, open, looking for opportunity. >> there are some sour notes. tech talent is one of amazon's top priorities. butewer than 5% of tennessee employees work in tech. the lowest concentration of any of the finalists. attracting more talent could be a challenge. nashville is wrestling with crime and health carend in one of america's fattest cities. commutes are getting longer as the city fwroes but voters just reject add new mass transit package. no shortage concerns about the growing pains hq 2 would cause in someone of the mallest finalist citie >> they realize wherever they go they are having a huge impact and they wanto make sure they thought it out. >> nashville hasn't gotten much buzz in the speculation about hq 2 but in thend that might mot

matter. just being named a finalist has brought atttion to an unsunk hero in the economic development world. rslittle bit of stardom in a city where s are made. for nightly business report, i'h scott in nashville. before he go, a look at the final day on wall street. a rly day with a the dow soaring 431oints. nasdaq up 111, the s&p gained 41. >> let's see what tomorrow holds. that will do it for us tonight i'm sue hera. >> i'm bill griffeth hopefully it's not a trick or treat. >> exactly. >> have a great evening. see you tomorrow.

>> this is "bbc world news erica." > funding of this presentation is made possible by the freeman tion, kovler foundation, pursuing solutions for a erica's neglected needs. >> this fall it's season of revelation. from the choice of america's favorite novel. >> ware hoping to get people to fall in love with novels again. >> to the fate of a hero's love. >> i'mtill here.