businessreport, with sue herera and bi griffeth. triple threat. stocks try to sge rebound but apple, the banks and brexit push the market lower and keep investors in check. priceum hikes. co inflation posted the biggest rise in nine months but unclear what might happen next. safe b? pg&e admits it could be in financial trouble if it's found liable for one california wildfire. are utilities a lot riskier than they once were. those stories and more ton on nightly business report for wednesday, november 1. and good evening, everyone. and welcome. it happened twicen as many days. the major averages attempted bound but failed.

stocks opened higher today and yesterday but the gains n did hold. and stocks fell because of a number of pressure points. first, apple. the lgest u.s. publicly traded company fell on a number of analysts dogrades. it's flirting with bear market territory. meaning it's about0% off from its most recent high. it suffered a ls of more than 200 billion in market cap in that time. the stock now lower for 5 straight sessions. and then there is the s bankingtor and the threat today from washington, a potential regulation. that sent names like jp morgan citi and goldman sachs lower. finally there is brexit. the dramatic day indo l that left investors guessing on the outcome for hours. combine it all and you h a wn day for stocks. the industrial average fell 205 pinpoints, more than a 500-point swing at 2508, the fourth the straight decline and losing

streak in thrnt . the nasdaq off by 64. the s&p slid by 20. bob pisani has more from the new york stock exchange. >> another day and another early rly that fizzled throughout the session, the dow falling more than50 points at one point ending well off lows. tech and financial stocks l losses in the action. apple tumbled another 3% amid a whirlwind of production concerns and analyst downgrades, weight on other tech names. kor vo, an a.m. supplier. the into bear market territory down 20% from the highs riding a five-day losing strategic. regulatory risk could be a new curve ball for the market as if we don't have enoh toorry about. max even waters said easing banking regulations would come to an end when she takes the helm as the headth o financials services committee. wank stocks sold off on the remarks. and the rest of thearket coming down. goldman sachs, citigroup, also.

do others took a hit. we did get help after 2:00 p.m. stern time. saying the there is a brexital when you got technology and financials, the two biggest sectors? the s&p down, it's hard for the markets to hold up. for nightlyusiness report, bob pisani new york stock exchange. >> and there are concerns in the the market about global growth and the lates data are showing some strains. economic output in both japan and germany contracted the third quarter. separately, consumer spending in china hit the lowest pace in five months. and bank lending in that country also fell. and just yesterday opec cut the forecast for global economic growth for theext year saying the slowdown has become more accented >> americans pay more for a lot of things. consumer inflation rose last month abat the fastest pace in

mine nine months. you can bet federal reserve policy makers are paying attention. steve liesman has the details. >> reporter: used car prices and the green that goes into them kboin to fuel inflation i october. but could it all be short lived? the government reported the inflation up 0.3% take out food and e and prices rose a healthy 2.2%. but the headline number coul decline with the recent fall in oil and gasoline prices and the strength of che dollar w makes imports less expensive. still most economists thinkfe t keeps hiking at the current inflation level. >> energy provides have come down. gas prices falls. that takes the steam out of top line inflation. but distracting from the upset and downs and food prices underlying core inflation skrermts. labor market tight. wage growth picking pup the tariffs, the expect higher inflapgs. >> meanwhile economists with

solid economic momentum supported byiscal stimulus coupled with increasing import tariffs and firm's greating pricing power we foresee a fed rate hike before the end of the year. we look for three three next year a wild card is how companies deal with rising prices. cnbc rfrtd the earnings called said inflation was b mentioned 33% of company compared to the 109-year average of 26% a sign it's a bigge factor. wages and material costs and heriffs were the leading reasons cited for h prices. companies as diverse as kelloggs, ppg, o'reilly automotive and fortune brands f wereced to deal with inflation rises. others boosted productivity to geduce costs and some companies couldn't avoid tak it to earnings. companies could get relieve from lower fuel prices but the problems of tariffs and higher

wages don't l tk likelgo away soon. for nightly business report, steve liesman. oil provides rebounded today recovering ever so slightly from the record 12-day losing strategic. but some veteran traders are stunned by the dramatic selling ays.ecent today domestic crude settled around $56 a barrel and then late today a new report showed inside in inventories whichd highlighhe ongoing oversupply concerns that have been playing that mart. but it' a very different story for natural gas prices which have been rallying dramatic che. the drivers there have been cold weather forecasts and concernht about t supplies. nat gas hit a four-ye high and prices up 40% since the beginning of nember. a california utility is in focus as the fires in the state rage on. pg&e wardson that it could faces quotnificant liability in the event that its equipment is found to have caused the deadly

blaze. shares plunged 21% in today's trading. and they've been just about cut inalf the past week. adidi royheollowing story from san francisco. >> reporter: amid california's deadly wildfires, there is new scrutiny on californi utility companies. in a new s.e.c. filingg&e reports if the utility is held responsible for the campfire which is the deadliestnd most destructive fire in california history, the cost of the damage would exceed its insurance coverage. shares plummeted upon the news. moody's said in a note this woke that the magnitude of the fire destruction leads to us believe the potential liabilities could be material f pg&e. in the last five days pg&e shares dropped 4 and shares of edison international which own southern california edin which could be held liable in the woolsey fire,re down 22% in the last five days.

both utilities reported malfunctions to regulators which started shortly before the fires began. pg&e has already been held liable for 17 northerli rnia fires last year. in regulatory filings, pg&e says it took a 2.5 billion non-cash charge for 14 of the fires. the company's cash position is currently under industry averages. in a stateme pg&e says it will cooperate with the investigations and that the cause of the campfire hasn't been determined. for nightly business report, adidi roy, san francisco. and it's not just the wildfires raging in california. utilities have been playinged by hurricanes in the east, amongoes in the midwes other natural and man made disasters. so are utility stocks riskier than they used to be in joining us tonight travis miller, the morning trategist at star. thanks for joining us tonight. >> good evening. thank you. >> utilities used to be seen as stable investments.

then ce deregulation. and now we have the natural disasters that seem to playing the companies morend more lately. what do you mak of all this. >> yeah, from hurricanes to obviously the situation out in california, to tornadoes, to loods, we have seen a lot of natural disasters affecting utilities. it just empsizes that utilities can be a risky place to play on an operational basist butt does differ on an investment basis. we think investors s aware of the risks. >> you have to do homework perhaps in a d ferent way than you used to about utilities and really look at where they are te lo what the exposure is. if it's a parent company what utilities they may own,correct. >> yes, correct. it's very important for investors to do due diligence and absolutely not just assess the regulory risk but also the operational risk, perhaps even the natural disaster risk. all of the risks that you would typically associate wit an

investment but also utilities you have to assess another level of risk as well. >> what do you make of what pg&e is going through right now? they don't even pay a dividend. they suspended that last year you can't look athem for yield. and now the stock is cut in half g&re. >> is definitely in a tough spot. not oem do they have theli ilities outstanding but when you look at where the stock has gone, the fact theyon't pay a dividend, you have had a huge outflow most likely in utilities, the typical utilities investors and that's adding to the downturnn e stock price. >> what -- what utility stocks do you think are aittle bit more immune to some of the bevents mother nature we have talked about in the segment? what names. do you li >> sure. we see a couple. one they are going to be assified in the high operational category, the category where management teams ar d very goodn onenergy is

one of those we like. we also see some value in the high yielding names. so you look at yields above 4% with again dpin on, duke energy, ppl, the names they have less of the natal disaster risk, good management teams and certainly good income properties for the utility investors. >> travis miller withni m star again thanks for joining us ton. >> sure, shanks. >> timeo look at upgrades and downgradesd kellogg groraded from neutral to overbreathe the jp morgan .analyst says the day did little to bolster confidence in the earnings turn around. the price target is $66. the shares fell about 1.5% to 2.46. teneco was downgraded at morgan the stanley. citing increasingly uncertain voirmt for auto suppliers. the price target is $30 but the stock rose to $33.86. conagra ground graded to underrp

perform from underperform at bernstein they said growth in the frozen foods appearances to run out of steam. e provides target is $31. the stock fell 7% to 32.64. >> still ahead areap small due for big gains or big pains? hoovers growth slowed in the recentuarter and its losses reached nearly $1.0 billion. some analysts attributed

sloweding to uber recent moves to food delivery, bikes and scooters. the ride sharing pioneer is still scheduled for a highly anticipated ipo next year which some bankers say could value the company at $120 billion. nearly double the last reported private valuation of $62 billion. >> a better than expectedep earnings rt from cisco could potentially set the tone for tomoow. theow component earned 75 cents a share, 3ents better than estimates. cisco logged another quarter of revenue growth up 7% from a year ago to $13 billion and investors were upbeat senng shares hig ner initial after hours trading. josh lipton focuses in on cisco's quarterly results. >> case cisco investors pay close attention to the infrastructure platform segment which rose 10% to a better than expected 7.6 billion. that's thes compan core networking offering, related to

switching and routing. piper jaffrey jim fish that's important because it's it shows the core on psmises business alive and well and that accounts for the bulk of their business. afisho notes that deferred revenue was down in the quarter. but he says thas likely due to new accounting changes. for nightly businesseport i'm josh lipton in frist. >>emacy's profits w stronger than expected. the retailer said more customers made purchases on smartphoning the total revenue grou but shy ar wall street's expectations. that miss atly sent shares down by 7% today. e points ofhere w strength do you agree the quarter, thereere also are of weakness. and courtney reagan reports for tonight. macy's momentum continues. the department store reporting growth on comparable sales for the fourth quarter and the expects the streak to continue into the holiday sson. the quarter got stronger in both sales and foot traffic as the weather gotr. col and macy's online sales grew

doubleigits for the 37th quarter. as the retailer rains in discounts a to dree degree, the many consumer keeps buying. macies upping the forecast excting sales and earnings to strengthen further into the fourther qua macy ceo told me he thinks the retailer will beat the last year's hiday season growth sales rate which is when the winning streak began. he says the back drop for consumer pending is good. confidence is strong.in the.com bs is humming and our penetration is higher in the fourth quarter if. for stores we are going into tha fourther in a healthy place with momentum. vit some analysts and investors aren't ced the winning streak continues. >> they are investing in stores after a few years of investing in eco and the stores seem to move along and getting sequentially better as we go and they expect them tget better in the fourth quarter. a nice job with that. but the market looksst t and says is this as good as it gets. >> there are head wednesday.

macy's says sales to nurpists weative weakening through the year plus costs are on the rise. >> comparisons a tougher. and you have the larger picture volatility out there, whether it's housing, rising costs of doing business, which are wages and freight. >> whilemacy's c is confident about the consumer and his company's place on holiday shopping lifts, a week before thanksgiving and black friday, others say, show me. for nightly business report, i'm courtney reagan. spending surnls at a cannabis company that's where we begin t market focus tonight. canadian firm canopy growth ramped up spending ahead of the legalization of recreational to meeta in an effort demand and fend off competition but it resulted in a wider than expected quart.ly lo and that resulted in a decline in shares they fell 10% to se.30. canada g topped profit estimates in the quarter as direct to consumer revenue more than doubled. and that prompted the luxury

winter coat maker to raise the full year forecast. the company says it's now in a strong position ahead of the peak selli season. shares rose 10% t 64.45. merck's black buster ketrud met the goal of cancer trial. they plan to present the results at a meeting. it's the top selling druor the company and has been approved to treat several forms cancer. the shares fell a fracture slun to >> survey monkey reported a 24% increase in revenue during the first quarter as a publicly traded company .online survey development company cited strong sales toen enterprise and projected incrementally higher revenue the fourth quarter as well. shares popped by 13% to 12.77. snap says that the department much justice isga invesng its initial public offering. late yesterday snapchat's parent company said regulators are

examining whether it potentially misleading cleemsn march of 2017 filing. snap shares fell more than 3% to $68 and berkshire hathaway says it's taken position in jp morgan chase and oracle. the conglomerate owns about 35 million shares of jp morgan valuing thatnvestment at $4 billion and more than 40 million oracle shares which a valued at about $2 billion. all three companies saw the l shares finiser in today's session. >> well, it has been a wild ride for smaap stocks this year. the russell 2000 an iex of small cap companies is in correction territory. it's down about2%ver the past three months. and it's raising concerns of moree canness ahead. chris retires letter, coportfolioag m of needham small cap growth fundit joins us his take. >> thank you for having me. >> what is your take?

the small caps are a little bit less liquid than larger stocks if you are a long term investor you are still bullish on the secretarier >> bullish on america.nk we t small caps are great place to be longtime. we are going throu a bit of a cycle now. the economy is we believe going er some a little bit a really great earnings that we saw earlier in the year where they were benefitting from the tax overhaul, cash repatriation. but we annualize the benefits. and we coulew see st of an earnings recession not an economic recession. but for p a stockker that's a great opportunity. great are volatility coming back into t marketplace as the federal reserve is raising rates anf kind taking stimulus out of the market. but that's where thes opportunitegin to occur for folks like us. >> it's a biggroup, obviously the small caps. are there sectors that you like more than others? or do you have to do this on aa

co by company basis? >> well, you really have to do it on a company by compa basis as a stock picker like ourselves. however we like to spend i lot of tim the technology area where there is technological moets that companies built for services and products which are defendable on a global basis. clearly a lot of small caps in this market are doing -- having a li fle bit more impactm the global trade as opposed to 15 or 20 years ago when they weren't as global. but in this market, you know, g those withd technological moets should do well. >> and you gave us twoames that you like, ultratraan c and photo tronices. i stum they have good moets. >> they do. both in the semi cap equipment space, which we think is coming to the bottomf its cycle here. it's been correcting the last six to nine months. we think there is great opportunity. the valuations are in good spots. and long-term they aressential

in the manufacturing of semi conductors which again are also having a difficult time right now but are beginning -- are always a bigger part of our ec omy, whether it's automotive, industrial, hand sets, those trends are not going away longe term. investorsor long-term it's time to due diligence. >> all right and buy on the dip perhaps. thank you chris. coming up, we're talking turkey. with inflation picking up, will ing aditional thanksg dinner have an unconventional pric tag?

here a look what to watch for. downt kpoe wal-mart will report earnings. investors will want to see what the largest retailer expects from the holiday shopping season. the release of retail sales overall will tell us if d consumers ope their wallets last month. the fed's vice chair will appear before the senate banking can mmittee to testify on banking regulation. a busy day on thursday. the u.s. postal service reported a loss for the 12th straight year. the agency said an increase in ts s and transportation c outpaced revenue growth. and costs tied to the postal rvices pension and health care obligations were a headwind. in an attempt to stem the losseu tors approved the agency's request for price increases. the price o a forever stamp will rise from 50 cents to 55

cents. lue jean maker levi strauss is reported planning an initial public offering. cnbc repor the 145-year-old company is seeking to raise as much as $800 million it could go public the first quarter next wore. the maker of jeans is hoping t many make the gu with a valuation of about $5 billion. theompany went public for a short period back in 1971. >> few people recently applied for mortgages as increased volatility in the stock market may have bee the culprits keeping potential home buyers on the sidelines. mortgage application fell 3% compared with the previous week. but vole down 22% compared to the same period last year. well c withsumer inflation seeing the biggest gain in nine months what does that mean for next woke's thanksgivg dinner you ask. will shoppers face sticker

shock. jane wells did a little digging to find out. >> the american b farmeau federation every year comes out with the cost to feed ten people for thanksgivin last year they said it was like $49. really? were you able to feed ten people on thanksgiving for under $50. have ydo ever been able to that? this year we took matters into our hands and did our price checks across the country from coast to coast. here is what's interesting. even t iughlation is up, we found that the cost of most of what you see he isctually less than it was a year ago. let's start over with the turkey. the turkey is about the same as it was a year ago place provides all theis. average a 16 pound turkey is costs you $24. g you but everythin else is lease. green beans are less. potatoes are less. cran berries are less. milk prices down 10%. even sweet potato prices are lower. this surprised us because were co hurricane florence damage in north carolina on weet potato farms we thoug

that means sweet potato prices go up. but the usda says the prices are down retail 30% from a year ago. perhaps los in one place were made one a bumper crop somewhere else. some things cost more. pumpkin pie elk if you plea 19% and eggs up 15%. organic prices are trending down. cept organ potatoes way up. for comparison on turkey.ke conventional t like i said about $24 for 16 pound if you go organic twi that. actually more than twice that. $-$56. sfor nightly busin report, jane wells in los angeles, happy thanksgiving. >> to you too, jane. and finally ton like thanksgiving will be the busiest ever for air trial are deavel. a airline t group projects 30.5 million will travel o u.s. airlines during the 12 day holiday window.

that's up for 29 million busiest travel day, the sunday after november 25th. >> and before we go another final look on the day -- another volatile day on the dow. down 205. longest losing streak in tleep months. the nasdaq down 64. s&p down 20. >> stay tuned for tomorrow, right. >> see what happens. >> that does it for us tonight. m sue herera. thanks for joining us. >> i'm bill griffeth. have a wonderful evening.ee we'llou tomorrow.

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