this is "nightly business report" with sue herrera and bill griffith. >> focus on fundmentals. the dow rises ahead of the midterm elections. it's not politics thator inves paid attention to. >> red hot. businesses cannot find enough workers to fill jobs. will the labor market cool on its own or will the fed end the party? >>siplit de. why amazon's new second headquarters could end up being a tale of two cities. athose stories more tonight on "nightly business report" for this monday, november 5th. >>en good g, everyone. the bulls and bears were out in force on the eve of the midterm elections. it wasn't because americans head to the polls tomorrow but rather it was because investors were focused on a number of fundamental issues within the

market. the bulls led theader market higher while the bears trapped the tech sector and pushed that group lower. the dow jones industrial average rose to 25,461. the nasdaq fell 28 and the s&p 500 was up 15. bob pisani takes a closer look at today's mix market. >> reporter: stocks rallied ahead of election day. the dow soaring triple digits. a reports are azz about what the mid terms could mean for stocks. the market moves today were tied to any specific election concerns. y fundamentals still vch front and center. the bigger story is the federal reserve's slated to meet later thiseek and what officials decide to do in b. interest rates. the fed will keep looking to the data and remain sensitive to the pace of economic growth both in the jobs market and beyond.er in owords, not hiking too . aggressively oil is perhaps the big driver of today's market rally, and they

jumped after preand post sanctions. the dow went ahead after apple shares. there was wake of the quarterly earnings report on thursday. amid reports of a possible slowdown in the demand for the iphone 10 r model. president trump also said he was considering looking into anti-trust violations against majo tech firms like facebook, alphabetd google and that put pressure on the nasdaq which fel back into correction territory, down 10% from recent highs. for "nightly business report," i'm bob pisani at the new york stock exchange. >> so what do the mid terms mea for the market? we break down the possible scenarios. the most expensi election in american history takes place tomorrow. the general consensus among washington watchers and wall street strategists is that tak democrats control of the house while the senate remains controlled by the republicans. a dividedcongress. a less likely scenario is that

republicans retain control of both houses of congress which is the current situation and a very unlikely scenario would see the democrats somehow win control of both the house and the senate. under the likely scenario of a split congress, history points to market gains ahead even if there is shorter ter volatility around the election itself. that's because a gridlock congress may be unlikely to push through any kind of major legislation which could allow businesses the freedom to operate without fearf major regulatory lhange. sectore health care and defense could see up side with no ability to change the current statefrug prices or defense spending. if republicansotomehow keep chambers, it could be very short term bullish for stocks given the prospect for more tax cuts, government spending, and less potential regulation. perhaps a good environment for retailers. tough questio remain over the budget deficit and they will be more pronounced.

if by some chance democrats manage to win both houses, there is a possibility for more regulation that could hurt, say, the banks andru the companies. but at this point, all of those projections are just speculation h while tomorrow's bio ele will have an impact on how certain investors react, manyll experts saintain that this is a shorter term issue that shouldn't affect one' long term investing plans and that issues likede global t are far more important to the health of the overall market and global economy. for nightly business report, i'm dominick chu. according to market watch, nce 1946, there are 18 midterm elections and after every sgle one, stocks were trading higher 12 months later. did the election results matter? you decide. during the 72 years, we have seen every possible political combination of parties controlling thehite house and th chambers of congress. as bob pisani tech stocks did come under pressure today. comments from the president were

in focus. in a video interview with axios reporters, president trump said his i administratio considering anti-trust action against some of the major tech companies. >> what about a monopoly? >> you do.e i h so many people saying that. but it certainly something that we have looked at. >> would you ever break them up? >> they we talking about this years ago. they were actually talking about this se subject, monopoly years ago. long before i was in office. >> you t mnk you'll be the to do it? >> a lot of people thought it was going to happen. and then i guess a previous administration stopped it from happening. >> you're in charge now. >> i'm in charge. i am definitely in charge. anta we are cly looking at it. >> ts is apntitrust. >> for amazon? >> for all three. >> we have been reporting that increased regulation is a risk for the tech secr. today amazon, google's parent company alphabet and all traded lower. now to trade rumbles which,

of course, have been on going concern for the markets. president trump said today thatt china isested in reaching some sort of an agreement but that he will only move if it's a fair deal. the leaders of the two rld's largest economies are expected to meet at that g-20 summit in argentina at the end of this month. mean tiltime, china's presi wants to convince the his country is shifting from being a global exporter to an importing power house. we report tonight from a trade expo in shanghai. >> reporter: president ping wants to convince the rest of the world that china buy more of their stuff. that expo in shanghai, one of presidentxi's pet projects, he said that china would make the necessary changeso that chinese consumers could become even more important to the global economy. that means promises for further t riff cuts, greater mar access, a tougher stance on ipr violators and creating what he described as a first class

fvironment foreign businesses. the problem is that he didn't get specific on even one issue, nor did he address the u.s. trade war directly. that had left many diplomats and executives here with a sense of deja vu. widespread frustration that the chinese government despite the promises is not opening up in the way that businesses feel it's fair. the tmp administration did not send a delegation here and there are only a few global ceos. at the same time, some chinese business leaders are getting frustrated by the rhetoric out of the white house. and ma is here in shanghai he described the trade war as the most stupid thing on the planet. some belntve that preside xi could be saving his offers for the next possibleeeting with president trump at the g-20 summit later this month. but so far there is no sign that china is gng to cave into the u.s. if anything, president xi doubled dow today. he described china as an ocean that survived 5,000 years of

storms. and hented out that china is still around. for nightly business report, i'm in shanghai. >> a new analysis of thern gont data put together by a coalition of business groups arows howfs are affecting american industries so far and where they're being felt. here are the details. >> reporter: president trump's trade wars with costing money.ses b they slapped tariffs on steel and aluminum, chinese imports are getting hit too. 's all part of trump'sush to rewrite bad trade deals. but it's also raising costs for american companies. $1.4 billion. that's a new estimate of how much businessesaiin trump tariffs in september alone. >> we need to show american leadership, we need to build the right kind of coaliti and tariffs are the wrong way to do this. they just simply impose cts on american business, farmers and consumers.

they're attack t -- they're a. that could sway the midterm elections tomorrow. red states, where republicans are hoping to get a win are feeling plenty of pain. take indiana. th tariffs costs businesses there an extra $30 million in september. nearly four times what they paid last year. in miouri, itas $14 million, west virginia paid an extra tw$ million. some state are getting hit bys countrietrike back against the u.s. north dakota, an important agricultural state, it sells lots of soy beans to china. ports there plunged an estimated 94%. th a trumpinistration says the short term pain will be worth the longai term of better trade deals and an end to chinese malpractice. >> we can use the tariffs as leave r leverata. they're cly not hurting the economy. the economy is doing really well. so now is the time to usegehat levend that's what we're encouraging the trump administration to do right now.

>> reporter: there is hope that tensions with our trading partners will ease over the next few months. but untilthen, the cost of tariffs keeps adding up. for nightly business report in washington. u.s. sanctions on iranian ctl kicked in today. the sns are part of the white house's effort to sirb iran's m and nuclear programs and to weaken the influence in the middle east. zbl >> every regime h a oice. this he can do a 180-degree turn and act like country or see the economy crumble. we hope a new agreement with iran is possible. but until iran makes changes in the 12 ways that i listed in may, we'll be nrelentless i exerting pressure on the regime. >> reporter: iran, however, remains defiant saying it will break with the sanctions and contue to sell oil abroad. the u.s. did grant eight countries temporary waivers, allowing them to keep buying oil from iran and the presidentd today s he wants to impose

the sanctions gradually. after rising earlier in the day and then falling back a bit, the price of domestic crude dipped four cents extending a five-day slump. time to take a look at some of today'supgrades and down grades. we begin tonight with a bob mentioned earlier apple's rating cut to neutral from buy at selatt securities. the analyst cited lower expectations for iphone production and shipments. price target now $200. that stock fell now 2.5% today $201.59. n netflix's stock was rated a buy. price target $406. the stock rose 2% today to $315.44. chevron was upgraded to outperformrom neutral at

credit sw credit suisse. they say the execution and potential for free cash flow. the price target is $138. the stock gained more than 3.5% to $118.94. starbucks was upgraded to buy from neutral at mizzou hostti secu. the analyst says the company's earnings growth is set to accelerate. the price target is $75. the stock rose just a fraction $64.48. still ahead, an industry divided. the san francisco ballot initiative thas pitting companies and technology against each other.

the services sector expanded as economic gro remains strong. according to the , almostacturing surv every major service industry expandedast mont the only one to show a decline is education. the biggest complaints wer around the uncertainty create by workersffs and lack of to fill jobs. >> the restaurant industry in particular is feeling the effects o our tight labor market. >> reporter: restaurant companies are feeling the squeeze of a tight labor market. on earnings calls this season, companies across ther secaid they're hiking wages to attract workers but some are still facing a shortage in industrymp where eyee retention is difficult. at dunkin' donuts david hoffman said staffing is theis franche's number one challenge adding it's reflection of a strong econom to offset the challenges,

they're focusing on building and maintaining a culture that draws workers in and offers flexibility. the strong economy meanspe more ople are ordering pizza which is good for business. >> have a good day. >> thank you. >> the d deliververs already working hard are extremely busy giving them an opportunity to make more money. meanwhile, shake shack sai mid increases and he said in a competitive environment, on demand jobs in the gig economy have begun to compete with nal restaurant jobs which is a challenge when hiring. one exception, starbucks. the coffee giant isn currently struggling to find workers. the chief operating officer told cnbc. starbucks is known for they comp culture and employee >> it's not just the restaurant business feeling the effects of a tight labor market.

the need for workers is going through the broader economy. steve liesman has the details. remember the song feeling hot, hot, hot. that is the best way to describe today's job anmarket. economists don't break out in a song. but 250,000 jobs created in october and the low 3.7% unemployment rate is about some exuberant language. goldman sachs writes in a research report labor market tightness is moving to levels rarely seen in post w history at the national level. it expects unemployment to fall to 3%. >> we saw an unemployment rate s recently that the lowest since 1969. of course, i1969 was our locker. the next thing that happened is unemployment went right back up. so i don't know if we can stay at this level of heat for very long.

>> reporter: how hot is the job market? a broad measure of labor slack that is extra workers out there, it counts the unemployed, the marginally attached to the labor force and those worki part me because they can't find full time work. at 12.1 miion or 7.4%, that's around the lowest since 2006re mber the fed funds rate around there was 5.25% compared to around 2.25% now. bottom line, there aren't a lot of bodies out there to fill vacant jobs. that raises the question with whether the job market will cool of its own accord or if the fed is going to have tond the party. goldman sachs wrote, "the economy really needs to slow to avoid dangerous overheating." >> i wouldn't call it a stronge omy. i sexual call it an exuberant e. we have to maybe end the party a litt bit. >> reporter: they would tlik avoid slamming on the brakes too hard. if inflation breaks out because of the hot, hot, hot jobs

market, well they may find themselves having to hike, hike, hike. i'm steve liesman. > ceos are buying stock and that's where we begin tonight's markets. fo general electric's recently appointed chairman and ceo larry kulp bo kulp bought $2 million of his company's shar t. it happene day before they closed at the lowest price in a decade and a regulat shows that ibm's ceo bought $3 llion worth of her company's shares. it comes a week after ibm announced the purchasef red hat for $34 billion. shares of those companies, ibm rose nearly 4% today to $120.06. shares of ge were down a tick to $928. food services business cisco reported weake than expected profit in sales in the most recent quarter. costsmpany said that the are outpacing the price increases that it was able to customers. a tight labor market and a rise in overtime pay are contributing

to those higher costs. cisco shares finished down 9% today to $64.56. and results of a new clinical trial show that eli lilly's top selling diabetes drug reduced the risk of heart attack a stro in people with type 2 diabetes. the company did not detail the magnitude of the risk reduction but executives did say that they plan to release the full results of that large scale clinical trial inune. eli lilly shares rose 3% to $110.14 today. verizon is restructuring the business lines based on the types of customers served. the three groups will be ns er, business, and verizon media group. this is one of the first major organizational changes under the new ceo. verizon shares were up 1% to 7.21. berkshire hathaway's profit doubled in the recent quarter. they reported earnings over the

week and said it's insurance business benefitted from lower aixes. an and ceo warren buffett repurchased about $900 million in stock in the third quarter. shares at berkshire hathaway class a popped 5% to more than $323,000. and after the bell, marriott international reported better than expected profits but the total sales came up short. and that sent the stock initially lower in after hours. it also finished the regular day down a fraction t $120.68. voters ico san francomorrow are going to the polls voting on a ballot measure that has divided the tech industry and urred debate over the issue of carpet responsibility. we have more. >> reporter: it's one of the most serious issues con fronting san francisco. the growing number of people living on the streets. san francisco currently has 7500 homeless ople, 1,000 more than it had just five years ago.no

proposition c aims to solve the problem by taxing businesses in san francisco. up to 1.5% depending on how muc money the company makes. by doing so, the measure would double the cityes hom budget. >> we have a humanitarian crisis of epic proportions. >> reporter: the ceo of sales force, the city's largest private employer he's one of the most val pro po proponents of prop c. sales force would have to pay about $11 million in taxes the fi>>t year. hese numbers are really immaterial against the cost of homelessness today. that isloor our ees who don't feel safe on the streets or don't feel safe in the bar stations, they don't feel safe walking to work, that is a much grter cost tha the financial numbers. and any ceo who says thats t financial number is too big or unfair or unbalancedsn't looking into the homeless themselves and understanding we have a s veryious situation.

this is a crisis. >> reporter: together sales force and others have contributed nearly $8 million supporting the campaign. but a number of companies have bank rolled the opposition including stripe, visa, lyft, charles schwabotnd marri international. the san francisco chamber of commerce says the tax would prevent companies from moving to the city. one of the most outspoken critic of the measure is square and twitter's ceo. he got into a twitter debate on the issue with benioff. he said squareould have to pay an extra $20 million from the tax the first year since theas e classifies financial companies differently in ies.ware comp but he counters that's a small oprice to pay t solve what he calls a crisis of inaction. >> i strongly believe that business is the greatest platform for ange. d that businesses can not be extracted from the cities that they do business in. >> reporter: as far as how he explains his support of the measure to investors, he says

the proposal does make business sense because the rise of homelessness impacts the company's ability to recruit talent which is a challenge for herenesses for "nightly business report," san francisco. coming up, the pt thickens. why amazon may be ready to crown not one but two winners for the second headquarters location. >> gas prices have been for the fourth straight week. the average price of a gallon of gas is6. $2 the lowest level since april. and while it's cheaper than six months ago, today's national average is cents higher from a year ago.

get ready to pay more for ur package that's are shipped by fedex. the delivery giant said today that customers will be facing higher shipping rates starting in january. transportation costs are pressuring results. raise for fedex express and fedex ground wil rise by nearly 5%. fedex freight prices will climb nearly 6%. shares of fedex finished up a fraction today to $222.61. amazon meanwhile is offering free spping with no minimums during the holiday season. it is the first time that the e- commerce giant oered the service for nonprime members. amazon said the deal, however, expires once the company can no longer promise deliveries in time f christmas with the free shipping option. >> it turns out amazon may not be eyeing one location for its second headquarters but two. nbc news and "the wall street journal" are reportit after more than a year of

deliberations, the e-commerce giant decided to split itsso alled hq 2 between two cities. with 25,000 e bloyees to hired in each location. amazon is said to be in final discussions with officials in w york, dallas, and northern virginia. and that's where we find our scott cohen tonight. >> the arlington, virhonia neighb known as crystal city holes cle city holds clear advtages for amazon, the airport and the nation's capital. the pentagon is rig next door. a big amazon customer. and there's already lots of o vacaice space from defense contractors that used to be here. but perhaps most important, this area has rkers, well educated workers and amazon has plans to hire 50,000 of them. >> i think i will be pretty awesome. i think it would potentially end up creating a better workforce around here. >> a source with knowledge says

amazon had a lengthy koms conf call with local officials. among the topics, a big transportaon upgrade. the decision almost rests with the ceo jeff bezos who said just lale week you c as much data as you can, you immerse yourself in that data, but then you make the decision with your heart. bezos already owns "the washington post" and he's renovating a home here. no wonder three d.c. area locations made the nals. but is there enough tech talent here? that question is why amazon may be looking at splitting hq-2 in two. and why officials in the other finalists like nashville are not giving up yet. bids. can't compa i think there's, again, i think it's a littleit of what amazon slo is looking for. do they want that larger metropolitan area or a city like inashville is that more livable. >> amazon could still change the mind. oneny official not involved in the selection weekendtweeted over the

whoever is leaking news about crystal city is not doing the community any favors. a lesson to all the finalists, thn't count your chickens until amazon delivers. for nightly business report, scott cohen, arlington, virginia here's a look at the final numbers today. the dow jones industrial average rose 190. nasdaq fell 28. s&p 500 was up 15. and that will do it for us tonight. i'm sue her airachlt thank you r joining us. >> i'm bill griffith. get out the vote tomorrow. we'll se>>you tomorrow. ep.

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