busiss report, with bill griffeth and sue herera. oil slick. prices fall more than 20% fro the most recent high as the quick and steep slide in crude intensifies. >> record profit. disney's strong results driven by studio and the park which ises. and now the company has its you eye on a digital future. location, location, location. but in this changing housing market, is buying a home still considered a good investment? those stories anduch more tonight on nightly business report for this thursday, november the 8 w. and do bid you good evening, everybody. and welcome. sue is off in case you hadn't noticed, the price of oil has been falling lately falling a lot.

domestic crude is now down more than 20% f im early october peak, putting it squarely in bear market territory. investors apparently growing concerned about rising inventories and weakening demand which c lead to a supply surplus worldwide. priced settled above $60 a barrel following a ninth straight decline. a long way from $76 a barrel. a price achieved a month ago when domtic crude hit a four-year high. may havy the industry been thrown another curve ball. reports saying ahi tank inside saudi arabia, the world's largest oil expoer, is studying the possibility of a potential breakup with opec. jing us tonight, the very busy john kilda founding partner of again capital. where do i begin? let's start with the slide. put this in context. going on. >> a market that got all bulled up like we say, bill, everybody

was onboardtr m people onboard with crude oil going to $100ma a barrel ply because of two things, strong demand foreseen but also sanctions put on iran. it was seen that the loss of thn n supply couldn't be made up, wouldn't be made up and we were facin a supply crunch of a large magnitude going into the end of the year. now wave the waivers for some countries that don't -- can't he just turn spicket excretely. >> you want to talk about kuvls to the market. trump administration went froml g maximum pressure and to really giving iran's eight biggest importers of oil waivers across the board. >> where are we going. >>head of that, bill, i have to get this in here. saudi arabia, russey, other countries boosted exports and production to fill the gap. now there is no p, now an overflow. >> how much lower do we go the do you thin

>> in kind of a drop -- the steepness of it, the swiftness of , the magnitude of it this gets the saudi's attention and russia's attention and others. they are having a technical committee meeting this weekendb in dhabi. look for over the weekend, a lot ofheric coming about stabilizing oil markets which translates from them to cutting backout put. look for saudis dialing back production and russian too to get prices up. i think we have risk on the downside price to $58. but thas it. >> first what do u.s. producer do about in? we a a big playe in this too. >> that's the problem increasingly. that's why maybe opec may be on the last legs. u.s. producers for the most part don't stop producing. you have to drive them of business. >> what about this report that saudi arabia is thinking about breaking up. with op >> increasingly that is a fractured family. theyare- t saudis are at thes

throf qatars and irans in particular. the saus put up and carried everyone over the years whenever there are cutbacks required .saudis did it. whenever need f more output the saudis did it. they have had . and there is a reordering of alliances in the middle east. saudi with vesyria, bel it or not. saudi with egypt. >> and what role does russia play in this then at some point. >> i think saudi arabia is looking to divorce opec and marry russia and let the king pin producers control the world oil market to the extent they can. >> very interesting. john kilda of again capital. ren wall stocks dragged down by lower oil prices. energy stocks tumbled. but it was a relatively quiet day after yesterday's huge rally. the dow today rose just 10 points. closing at 26191. the nasdaq fell by 39. the s&p was down 7. by the way, snappingay a three

win streak. now to earnings, disney reported record profit and revenue for the year and easily topped quarter estimates anks to studio and theme park businesses. the enttainment conglomerate earned $1.4 a share, $14 cents better than he had evidence. revenue up to $14 billion. sending the stock higher in initial after hours trading in eving. adidi roy has more on disney's quarter on the ceo's strategy. >> disy announcing fourth quarter earnings. and the company had strong numbers in the studio the studio revenues coming in at 2.15 billion versus estimates of 1.78 billion. that's a 50% increase year over year. rosney says that gh was fueled by, quote, exceptional performance of blarngt, "star wars," the last jedi, aconventioner infinity war and incredibles ii. bob iger said thcompany is

investing substantially in original content. >> we are winning ourselves third party listening which has started so the product appears on our service and not third party services. we are investing substantially in original content, against what wille all of the brands but makingstar wars" series and marvel series, and certainly disney series a pixar and original movies as well. and then thousandsf hours of library product. >> disney is also making a big investment on director to consteer offering to com with netflix and amazon. but iger said it's premature to say whether they would acquire the 40%f hulu is doesn't own. and now to china with where the trade war with the u.s. has had investors and businesses on edge. but for snack food giant it

appears business as usual. >> a trade war dominates a debate between the u.s. and china. but to better understand what'su at stake should try a spicy chicken other owe cook with i'm currently at the lab that's behind it. and the compa has been experimenting with flavors to indicator to chinese activates, including spi chicken, wasabi or sea weed. like so many america acompanies th not moving stuff in and out of the country but localized operations. the china chief told me that olped the company do a tremendous amount business here despite the trade war. >> we are seen as a multinational effort but also a company rooted into -- in china. obviously we like openness, as a multinational. and we like free trade as much as anyone. t i would not say it has

influenced us a lot. here.e our sales people we have our factories here. we have our r & d center here. we make and bake for chinsa >> he id china generates $1.0 billion in sales for the company here and is one of the fastest growing markets. china is becoming increasingly important. part of that is thanks to the other owe cookie. outside of the u.s. the chinese ea mother of them than anyone. the china chief told me to come up with this particular cookie researchers were thinking about flavors popular in china. apparently that is savor as well as spicy. because of the localization, he said that the company was able to move this product into the market withinour months which he described as china speed. for nightly business report, i'm eunice yunn sujo sfla spicy chicken other owe hmm time to look at upgrades and downgrades. beginning with dean foods downgraded from hold to buy at

the company turn around is said to take longer than anticipated. price target $6. falling half a% to 5.95. square downgraded to neutral from positive. they c citedcerns of the vote position. and price target $77. dropping 9%. closing at 75.23. archer daniels midland upgraded to buy from hol at argue as. citing strong performance in the oileeds appear nutrition divisions. price tart is now $53 process that stock rose half a% to 48.57. ill ahead the rise of dna testing and some of the controversial issues involved.

today's jobless claimsrt reas another reminder of how hot our job market is. new applications for unemploymenty benefits fell 1,000 last week remaining near a 45-year low as you know strong job growth led to a 3.7% unemployment rate, the lowest since president '60s below the definition of full employment. the they approved keeping the benchmark rate unchanged. the decision at the fed unanimous but a few things of note in the central bank statement. steve liesman has details from

washington. >> the federal reserve kept interest rates unchangedn the november meeting, in the range of 2 to 2.25% but signaling the rates will rice. the market has taken that to mean another quarter point hike in the fed funds rate comes in does. market priced that probability in excess of 80%. the fed had positive words about the u.s. economy. noting the labor market strengthened, the economic activity rising at a electronic rate and the unemployment rate declinednd household something also growing strongly. but they took note that business investment h moderated from its prior rapid pace. the fed continues to see inflation near the 2% target, all of thiseads up a potentially fraught december meeting for the fed wherexp marketst the hike. but president trump complained the fed is moving too fast to slowdown the economy and undoing the effects of the tax cutso eed the economy up. fed officials though argue that the current rate is roe enough

to keep stimulating economic growth given the high rate of growth and the low level of unemployment. officials say the policy rate should be neutral if a bit above. but those are questions for december into 2019. for tnovember fed took a pause. for nightly business report, steve liesman in washington. >> well, there are now only six weeks left until the end of the year. we have the midterm elections, the majority of earnings reports and today's fed meeting out of theay. what will be the catalyst for the markets next move? joining us is liz young is senior investment strategist at bny melon thanks >> great to be here. >> you look at trade to begin with. after the midterm we wonder what happens with the tariff active with china. >> trade is probably the biggest catalyst threw the end of the year. it can be a escalation or escalation. and what we look at particularly with chinas on

through the end of the year. there is a chance towards the end of november that som is struck. we don't expect that to be the case. soe're actually expecting that trade continues to produce volatility in the markets as we go through the next few months here. >> and we see inflation as thent number poi here that you want to make. andhat is tied to trade to a great deal because the tariffs. >> right. >> mean increased prices, mean inflation among other things, right. >> right. there are a couple of different things about inflation important to look at. when we went through 3 earnings season, inflation started to tick through some of the company earnings in that they signalled trade started to increase input costs andul they 't absorb all the costs themselves so they'd have to push it on consumers. u that drive inflation. then we obviously have wage growth that came in at 3.1 this month. that's been bron out o the range. it was kind of in the high a 2% rangong time. a 3.1 number is high. wage growth issihe m piece

of inflation we've been looking for. upward pressureill set expectations high are for inflation next year. >> then of course what the fed does about that. everybody expect something a rate increase in december. whater about a that do you think. >> right in so in december it's baked in we have a rate increase. if they don't d it in december, actually i think the market would react negatively because they wou that there might be some cracks forming. next year it becomes a lot les certain. the fed signals that it's going to be about three times. m thket is maybe expecting three times. we actually wouldn't see them doing it more than two, especially if we have more market volatility. >> all righ >> what everybody i think wants them to do is react with market volatility and take a pause. >> and very quickly, finally a wild card in there the brexit otalks, continuing drag on here. we all remember what the markets did when they voted for brexit a few years ago. what about now? >> lyeah, it'sg in the tooth. the whole conversation is.

there is a chance they are having an emergency summit in november know. there is a chance they will stroik a deal there. we hope the brexit piece becomes less of ail vol environment. unfortunately that's the last piece we think affects the markets. it be nice if they struck a deal in brexit. there is a lot of other overhanging risks and question marks affecting markets more. >> liz young with bny melon thanks for jnkning us. >> tyou. elsewhere cardinal health post as five fold increase in profits. and that's where we begin the maet focus tonight. the health care services company said the growth was led byts pharmaceutical business, even as the generic drug marketecomes more competitive. cardinal health topped earnings and revenue expectations. that stock rose more than 4. to 56.13. ressed helpedr top expect as the stro accidentica. the ceo says he expects robust

growth. the pipeline is expanding and he expects operatin maro rice as well. the stock gaining 3.5% to $40.65. l brands is forecasting a higher third quarter profit. the company says the upbeat outlook is driven by a performance at bath and body works stores. it also expects same sto sales to rice above expectations. stock advanced 6% today to $36.96. and after the bellizctivision rd issued a weak holiday forecast for both revenue and profit. of the company's recently released call of duty black ops four weren't at strong as analysts hoped. the video game publisher reported results for the recent quarter that missed estimates. that sent the stock lower in initial after hou trading tonight. now to an issue near and deero my heart. genetics, a growing number of people want to learn more about genetic history and the rice of direct t consumer dna testing

kits is making it easier for them to do so. 23 and me with, one of thle ading companies in the business, recently hel an eventn new york city and meg tyrrell went to check it out foror us. >> repter: new yorker deborah wants to learn more about her where she came from. >> my background is splendid i had. i'm curus as to what my full background, my ancestry is. >> an instagram post about an event for 23 and me caught her attention. the company just onem of now offering direct to consumer genetic testsar in at exploding in recent years. 23 and me opened up a pop up new york city to explain the informationuthey give a everything from how you sleep to how your body processes caffeine with to gluten, lack toes, to even how the muscles work. a >> it' example of the category's massive increase in advertising. up 63% in the first half of he year. driven by the largest companies,

23 and me and ancestry. the market for consumer genetic testsop could$6 billion according to ever core isi but some experts a the growth and promising supplied or explicit about what sots accomplish. >> the benefit for cancer carrier testing, these are solid. unfortunately we got all the other -- you know 90% of the field is essentially very questionable. >> one independent company promiseso improve kid'socr kills. others offer guidance for weight loss and fitness. >> it's difficult for the average consumer who is uninitiated to ferret out which ones are a of value which ones are really workingless. >> helix, whose platform includes wellness tests from partnersus f on diet and nutrition sates it offerings thoroughly and don't make t claims. dpoit the concerns there is optimism for the future of genetic testing. >> all the things we've hoped

evenly many years, it's getting actualized. it's just been a delay in gettinthere. >> for deborah dedlani it's aboutst curi >> now i have seen a medical side i'm serious about that too. i probably w look into getting a kit. >> she will be one of millions who does. for nightly business report, i'm meg tyrrell. coming up, a house divided is buyingll a home s considered one of the best investments you can make?

here is what to watch for tomorrow. the producer provides index will be giving inves a key read on inflation. the head of the new york fed is expected to speak on america's workforce and a strong economy. and sticking with the economy investors will get an early look at consumer sentiment for the month of november. that's what we are watching for on friday. well, ford has made an investment inc an elect scooter start-up. the auto maker is spending $40 millioas part of the strategy to provide options for customers who need to travel only a mile two to a destination. the start-up id cal spin. and its scooters are currently in 13 u.s. cities and campu be, detroit, denver and coral gables, florida. mortgage rates rose this wee the highest level in nearlygh years. freddy mac said the average rate on a 30-year fixed rate edged hyper to 4.94%.

last year at this time the average rate was 3.9%. mortgage rates have been rising along with theld y on the 10-year treasury note which has steadily been climbing this year. certainly the rice in mortgage rates is something that potentias home buy need to consider. and as dianack oli reports it's just up one of the headwinds keeping some on the sidelines. >> higher home prices and rising interest rates impacted affndd ability moderated demand for homes process. that from the chairman of one of th nation's largest home builders dr horton in the earnthgs release. 's clearly behind the drop in conmer sentiment in-housing, hitting thele lowes vel in a year in october according to a monthly sfri from fanmy mae. attitudes towards buyin sell be weakened despite strong confidence in the economy. potential buyers said they are worried about risingates and worried that home prices are so sot they have no where to go but down. uying today may not be the best investment at least in the

short-term. it's ironic because the past few years rising home values have made owning a home iredibly lecturive. and currently more than a quarter of all propertie wh a monreal are equity rich. that is the home is worth at least twice the amount of the mortga. that's the most since adam data solutions started tracking this in 2013. and for investors in bltder stocks, november to february is considered the hope trade ic histly. that is buy early and take advantage of a potentially strong spring housingart. we'll see if that holds up given housing's weakness rig now. for nightly business report, diana olick in washington. >> let's turn to susan wachter to talk about whether it's a good investment. she is a professor of finance at the pennsylvania school of business. thank you for joining us tonight. >> pleasure to be here. >> your short answer is yes. it's still a good investment, right? >> it's still a good investment if it's notes an ient.

if you plan to move to stay, it's aen protection against hikes and price hikes. and despite the fact that the market is slowing, we are still seeing rent and price hikes. >> but whorere is w come from. it's not so much a business idea as it is a philosophicalne. omers and gen xors it's part of the dream. millennials are. dit they're more inclined to be mobile. they like to rent rathethan buy. i know i'm generalizing but that's been the scouting report generation. how does that affect this housing market do you think? >> well, millennials have been slow to buy, absolutely. but their aspirngss are to they want to be home owners. they have been mobile. they e not as mobile as would like to be. but they want to be ready to take the job and get to the markethere it's too pricey to own a home but maybe renting in the short run. but tns aspiratre absolutely to own. in fact we should see the

ownership rate edge up as millennials get for the age where they settle down. when you settle down buyinme a s still the way to go. >> they're saded with a lot of student debt, which is a hamper for them preponderates aresi right now. i mean, i'm -- the first mortgage i took outn 1982 was 16.5/8%. but not for thosesed to 2nd 3% in the last decade. what role will interest rates play inhe housing market. >> right now interest rates they've risen over 100 points. but still low. but mortgage rates could go higher. if they go another 100 basis ld be a problem for housing prices. as i said housing prices are not declining. the rate of increase isce rating. it's a time if you want to protect yourself that that's a way to go if you are going to be a community for the long run.

mortgage rates in fact -- because they're increasing, are going teep people in their homes longer ashey -- they have their locked in with low mortgage rates. is is actually going to contribute to inventory scarcity, which will contribute to upward pressure and pris sfloog susan wachter with the horton school of business thank >> thank you. >> final look at the day on wall street. nothing like yesterday with that monsters rally. the indexes were little changed on wall street. but it was oil prices that got most of the attention settling just above do$6 from the peak about a month ago. finally i wasn't here last night for a good reason.am this prohich you may know is america's longest running evening biness broadcast was awarded the top public television program award for 2018 by american public television.

the wyard was given to onlypr threrams this year. so it is a great honor for the nightly business report team members both in front of and behind the camera we were in baltimore yesterday along with wour with our executive producer accepting the award fro american public television and president kringt in fenneman. and without there is no award. that is nightly business report for tonight. i'm bill griffeth. sue is o vacation i case you are wondering she will be back on monday. have a greatevening, everybody. see you tomorrow.

>> this is "bbc world news america. funding of this presentation is made possible by the freeman foundation, and kovler foundatiosuing solutions for america's neglected needs. >> this fall, it is a season of revelaons, from the choice of america's favorite novel. >> it's 100 books we want peop to take a look at. we are hoping to get people to fall in love with novels again. >> to the fate of a hero's love. >> i'm still here. >> and i. >> from the secret lives of the most amazing cats to new