>> announcer: this is "nightly business report" with bill griffeth and sue herera. interest rates are sti low by historical standards and remain just below the range of estimates of that level that would be neutral for the economy. >> the fed chief seems to snal a significant significant in the central bank thinking resulting in a powerful ral on wall street. battle of the blue chips. microsoft is closeta to ovng apple as the world's most valuable company. all the result of a remarkable reinvention. and pushing into pickups. jeep adds fue to the already hot brand with a truck design today look like no other. those stores and much more tonight on nightly business report for this wednesday, novemberhe 28th.

and we bid you good evening everybody. sue is off tonight. what a wednesday, though. th dow soared by 600 points the biggest gain in eightonths and second best day of the year. with today as rally, the dow and s&p erased declines after investors cheered remarks from the head of the federal teserve abou pace of future interest rate hikes which we will get to. re are closing numbers today with the dow advancing 617 points, back above 25,000. the nasdaq added 208 pinpoints. that's a nearly 3% gain and the up 61. bob pisani has more on the fed driven ral pry from the new york stock exchange. >> stocks in full on rally mode on the heels of federal reserve jay powell's comments about the deconomy. the and s&p are positive for the month of novemberll and three averages notched the third day of gains. the big take away that the chair said the rates are near neutral

and the fed is not on a preset policy path. d reassured investors the fed doesn't seegerous excesses in the stock market. the action remarks pushed stocks high are. led by software names and buzz over microsoft boming the most valuable companies. the the materials and industrials taking betting.tr andger dollar. the consumer skrergsary in the green not only thankso fang stocks like amazon and netflix but retailers like stores and gas. the markets reacted to powell's the comments and now they are weigh up to t waking up to the fed that the the fed is cautious. >> what exact did jerome powell say that sparked the rally and of this magnitude steve liesmanigs into that for

us. >> jerome poum igniting a powerful market rally saying the fed is not on a preset course to raise rates and the fed j ist below the range of neutral estimates. that's the rate that neither slows more speeds up the economy. >> interest rates are still low by historical standards and remain just below the range of estimates of that level that would be neutral for the economy. that is neither speeding up naurp slowing down grhath. >> all t suggest attention the fed has some but not a lot of work to do. he added rates remain low by storical standards and affirms the plan to gradually raise uttes with less certainty than the past. >> i liken it walki into a room full of furnish trurn tur and suddenly the lights go out. you lowdo -on go a little bit less quickly and feel your way more. that's the naugh you feel your way more. under uncertainty you beca ful. that's what we are doing with monetary policy for some time, moving gry in a way as a

way of keeping knows risks at bay. >> markets were certain about w they felt about the remarks. stocks smot up bond yoelds and dollar shot down. and powell main maintained upbeat view. >> the up up employment rate is 3.7% a 49 year low and many other measures are o at near historic bests. inflation is near the 2% target. and t kissimmee growing at an annual rate of 3%,bo well most estimates of the longer run trend. >> you could call this a relief rally. relief the fed is not hell bent on raising rates no matter thee omic outlook, though acknowledgement that rates are going up from here. or nightly business report, steveliesman. >> do mr. powell's comments thing reflect a shift in at the central bank or not and or the es it mean markets and the economy? joining us tonight michael fa, the cht money management firm farr miller and washington.

thanks for joining us tonight. >> pleasure, bill great to be here. >> a lot of debate whether under the criticism of the president recent did the fed chair blink? is this a game changer for markets and economy? what do you think. >> you know, bill, a little bit. i think steve liesman said it, what the market hrd washat the fed is not hell bent on raising rates. that they are going to do the what jay powell has said he was going to do all along, which is be data dependent. i think that data dependency, walking through the dark room full of >> right. >> is reassuring to markets. >> now, is this dsh doeshs it have you rethinking your i don't know what you've been doing with the market lately. butay clearly t wall street changed their thinking about the market. it seemed like a green light went on. at about for you? >> you know, i continue to think probably the risk tra of the fang stocks is something that's over with.

think the shift we have seen to value is going to be with us a long time. the prospect to 2 growth rate next year and following year make me thing we need to focus on balance sheets than the momentum stocks. >> going into the speech, the feeling was we were defingeely ing a rate increase in december. next year the feeling has gone from four rate increases down ty two, now one. does it matter to you how many they raise rates from here? >> it matters to me that -- yeah,bi little bill, yes. bus if we get three more that u takes to a 3% fed funds rate that pushes the mortgage rate up around 6%. that could be too fast. i'm encouraged the fed is going to be data pendent. u know, we haven't seen bull markets die of old agav mostbeen filled by the overly aggressive fed. and that's what scared wall street. i think that has us feeling

better tonight. >> and with all of this said and done today with the huge rally here, what do you expect for the rest of the year? is the the santa clause rally upon us or not. >> art cashin mass said you could look for the scene clause picture milk carten because he is mia. i think this brightens the chances of a santa clause rally. present comments from the fed statement when they go ahead and raise rates in be along the same lines and i think markets will take encouragement. and yes i expect markets to finish higher on t >> art cashin the long-term trader of the dean of the traders. michael farr of farr and washington thank you. >> thank you. conomic growth remained strong in the third quarter. this morning we learned the gross domestic product grew at 3.5% rate as expected. the report pointed to moderately

stronger business spending and corporate profits. but a lite biteaker consumer spending. ro was the second reading on the third quarterh rate. but a new report out on the housing market shows thatrnhat of the economy is not holding up as well. an it's especially soft among the home builders. diana oli explains. > reporter: sales much newly built homes in october dropped lowest level in 2 1/2 years as led become uyers p in the new normal ofs rising mortgage rates and sky high prices. >> i think the rapidity of the increase in-housing costs given the level of price inflation on top of what's been a quick move in mortgage rates is making it difficult for buyers. >> the median price was down 3% compared to aear ago. that may be builders trying to respond to rising rates or maybo the m homes selling mass

shifted to lower price msels. toda buyers have new math to factor. mortgage interest rates arcull tage point high are than a year ago. builders have struggled to offer entry level homes as the cost for land, labor and materials rise. >> the reality is land -- lands have been incredibly high. anything from permitting to development fees, and then labor has been a persistent challenge. those thingsbe hav the main drivers. >> there now appears to be a glut of newly built home for sales the highest numbe of unsold since 2009, this after two years of a housing shortage and still tight supply of existing homes for sale. builders have been reporting slower traffic through showrooms and dropped expects for sales over the next six months. the only bright side to the h ih supply it could bring down provides a bit a well chill has buyers auilders head in the slow winter months. for nightly business report. diana olick in >>washington.

time to look at upgrades and downgrades. we begin with shares of you know yn pacific upgraded to buy from hold at deutsche bank. the analyst expect the railroadt operator to m o post the at least $3 billion in profit improvements.rg price now $-175. the shares rose 3% to 151.9. whil pool is downgraded to neutral from outperform at credit suisse with the analyst says the pipelineses appears to be reflected in the stock price already. the price target oow $125. whil shares rose though along with the rest of the market to 126.22. and american airlines was p giv anitive rating in new coverage at one analyst saying the airline has strength in the overall rket. price target, 47. shares rose more than 1.5% to 38.94. still ahead a 1-2 punch for the nation's soybean farmers.

investigators are now looking at possible maintenance mistakes that may ve played a role in that fatal lion air jet crash last month. initial findings point to possible errors by mechanics working upon a malfunctioning nsor just before the floit. the report says the plane was somehow approd for use even though the flight control system experienced issues on past trips. the findings at this point would seem to exonerate thejet's manufacturer boeing and shares rose as a result in today's trade. microsoft, wow, close to ng overtahe most valuable

company crowned from apple. a position the g softwarent held years ago. at times in week microsoft' market valuation briefly exceeded apple's. but at the close today it was just below. microsoft's market cap came in at 852 billion. you can see it's 6 billion lower than apple. but i does underscore renewed ongth in microsoft after a stretch when the stock was considered dead money. but that change when the new ceo came in.h he p the company in new direction was a focus on the cloud andewer technologies like augmented reality. and with microsoft now a business model for reinventing itself, are there other companies out there that could do the same? david deets is back with us. tresident and chief investm strategist at welt viewpoint management. thank you. thank you,bill. >> a breath taking reinvention for microsoft, right. >> absolutely.

it was a monopoly but the legacy server client model started to cmo age, asse transition to mobile, to the cloud. and it kind of lost the which. but thehange in management. reinvig ratewood collaboration and moved toed the cloud and came up with officeu65 allowing o keep the data on-site or up in the cloud as you wish. >> we have to ask, who else does the same thing? who are you looking at as possible reinvention candidates right now. >> that's the holy grail. we have three candidates. ibm, general electric and the proctor & gamble. i start with general electric they have the best opportunity. like microsoft they have a new leader. larry kulp with s allar record. he is going to reinvig rate.th have world class divisions,

aviation, health care pch it's a qution in our vie of winnowing out of deadwood and allowing investors to highlight there. course it's one 12th of price of microsoft, in terms of market cap that's one. >> i. ginni rometty has been trying to turn it zbloorndma the a great acquisition with red hat catapulting them i the cloud. gina rometty has been the ceo longer than nadalla. in 201 they are making $20 a share. she owns the dismal performance. so is she the right person. >> proctor & gamble, quickly, they've been the subject of of a lot of sharehoer revolts and things trying to get them to reinvent themselves as well. >> they've mad a great start. they are at 101 brand down to 6 65.

ner leveraging the huge scale. h theie purchasing power. but at the same time allowing various divisions to get closer to the consumer. interestingly, they have allowed neon pelts on the board he is putting their feet to the fi a. we see the a great hold for investors looking for a turn around in leading the consumer product space. >> the activist shareholders have a big role. david is with point view welt management. elsewhere tiffany loses lufrt. that'shere we begin tonight's market focus. the luxury jeweler reported disappointing revenue and same store snges. ci week are weak demand from onina who spent less in the u.s. andkong and shares fell 12% to 92.54, the worst day since 2015. l.m. smucker missed earnings estimates as w and cut the sales and profit forecast for the year. citing increase in competition which says forced it to cut prices on things like coffee ant

jiff pea butt are and smars dropped on the otherwise big up day. dick's sporting goods reported drop in revenue from a year ago and the fifer straight qua decline in same store sales. the retailer said it face the challenges selling electronic devices and struggling with the gun business as well process despite the decline the company raised the outloo a the stock rose 2.5% to 37 tt $26. kmik os reported disappointing revenue, blaming the weak sales as brand itself. the ceo says the store has plans to shift the strategy and change the produ offerings. it also announced the depart yur of its brand president. small cap stock plummeted by 34% today to $4.79. and tobago giant alt treeia is taking a significant stake in

ecigarette maker juul. the deal is not imminent. juul which launched in 2015 is at $15 billion quickly becomg a leader in the ecigarette mechanic. alt triia closed higher at 54.95. now to trade and harsh words from the ceo of deere. he says the trade war could have a lasting impact on t farmers and agriculture sector something his company sees firsthand. >> in the lonr term the issue we worry most about is that as china buys soybeans from brazil or whoever, structurally, countries like brazil will bring more land inroductionquicker. as a result of that we end up with the oversupply for a longer period of time which means that the pain that the u.s. farmer feels now will go on for a longer period of time you have like the grain embargo in the 80s. >> for the soybean farmers it's

not just trade. wouldn't you know they have bad weather and rotting cropss a result. adidi roy is in vil plat, louisiana. >> this spring richard planted 1,700 acres of soybeans on his farm. but come harvest time rainis poundedrops for days on end, damaging much of his crop. nearby grain elevators alreadyf lled up to near capacity because of the chinese tariffs on u.s. soybeans wouldn't accept his soybeans because they were too damaged. >> it's ati eal roller coaster. >> in the enthe fourth generati farmer was forced to let 60% of the crop rot in the field. >> ifme the cial elevators up river had no room to store it we could harvest it but no place trucks.the so we had to leave it out in the field. >> but bad weather is only one problem facing farmers across the u.s.

u.s. soybe farmers usually export a quarter of the crop to china. that market has disappeared.us the glutd prices down from $9.84in a bushel dur planting to $8.60 at harvest. >> for in this operation itself we probably have about $8.50, $8.209 a bushel tied into making the crop. after discount we are selling it for 6.50 a bushel. >> as a result he will lose $300,000 this year and can't store the crop because the grain elevators are full and the cp o damaged. to make matters worse many farmers can't access the trump administration aid to ease the tariff impact because they are not eligible for the dollars if the crops in the ground. >> we had no exports because of the effects of some negotiations. knowsffects carried back into the field. >> to ease the loss louisianare

esentative ralph abraham just introduced a bill which would allow farmers with unharvested crop to access trade aid. this farmer says that's a good idea but argues for longstaing reli farmers need enduring trade relationships. >> we have to do things as a country and nation to protect and things -- and mai being sustainable for years to come. and frayed agreements are one of the things. >> it's not just farmers here in the south hurting. a new fed rept shows that farm brumtsys are on the rise in the upper midwest. for nightly business report, aidy roy, vil plat, louisiana. >> and still eeahead, drives into new territory.or >> rr: jeep, red hot with suvs is getting into the pickup business. is the new jeep pickup look like? i'm phi lebeau in los angeles. we'll show you coming up on "nightly business report."

we have an update now to a story that we have been following. a former insis executive pled uilty as port of an opioi investigation. the drug marker former vice president of sales is the highest level execuve to admit to wrong doing in a scheme to bribe doctors to prescribe powerful medications. in pleading guilty he entered into a deal t cperate with prosecutors and could become a trialtness in an upcoming including the company's founder. well with pickup sales surging,ut more brands want to sell new trucks. the latest is jeep. but jeep's new vehicle is not exactly t typical looking pickup. phil lebea has more.

>> reporter: jeep, one of the hottest brands in the u.s. is heating up the battle to win over pickup buyers. the new jeep gladiater which looks like an suv with a short pickup bed has a decidedly different appearance by design. >> you got 42 brands and 308 place out there if you don't stand for sometng you sta for nothing and you compete as a commodity. you can't do that. we haveo have a positioning. the brand has to stand out and wee vehicle lines have to stand out. hink this breaks the mold. >> jeep's resurgence in america is due in large part to the visif former ceo sergio ioned anne who env world with more people wanting suvs. th sparked a boom in jeep sales over the last decade. bw the company is trying to stent the jeepnd with a pickup truck geared for a different type of pickup buyer. >> the left out buyer is nice to have truck tire, doesn use it for day to day utility,

doesn't need it for employment or anything. somebody that likes to have a bed, likes to tow things recreationly. doing things they had t like to do rather than things they need to do. >> while americans love pickup trucks they are incredibly brand loyal which is why the chevy silverado and many f 150 are top selling for decades. >> truck buyersre looking for certain things we made sure we deliver for every one of these and everything jep has. we give you everything you want and more. the open air freedom that onlyi jeep can you. >> jeep's gladiator rolls into the showrooms next year few edict it's a serious threat to the established brands, there is no doubt jeep is looking to shake up the truck world. phil lebeau, nightly business, los angeles. finally, tonight the fearless girl statue is no longer steering down the wall street bowl.

the sculpture was moved reinstalled in front of the new york stock exchanges by the ended of the year in it's place is an outline of the. footpri the marker was left so visitors can stand in her place and .plenty already a before we go let's look at the final day. powerful rally. dow advancing 617 points, the nasdaq up 208 and the s&p 500 up 61. that is the nightly business report foronight. i'm bill griffeth. thank you for watching. we want to remind you this is the time of yhar your public tfrgs station does seek your support. and we do appreciate that support. have a great evening. e you tomorrow.

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