>> announcer: this is nightly business report with sue herera and bill griffeth. head spinning market. stocks rebound after a steep selloff. the key questions remain about i es, interest rates and trade. seismic shift. a big change under t way in market. and long-term investors are trying to figure out what to make of it all and what to do about it. >> delayed decion what didn't happen at the meeting of global oil producer and why it may elevate russia onhe t world oil stage. those stories and more ton on ay thur december 6th. good evening, everyone. d welcome bill griffeth is off tonight. the drama on wall street was kicked up a notchtoday. stocks staged a late-day come

bask after being down sharply most of the day. trade and interest rate concerns dominated until report in the "wall street journal" said the fed may be shifting its way of thinking. and the buyers stepped right in. the dow jones industrial averagh fi the day down 79 points to 24947. but it had been down more than 700 pointed midday. the nasdaq rose 29 and the s&p 500 fel. but as bob pisani reports, the markets may not be out of the woods just t. >> reporter: the markets bottomed this morning right at the november lows, dn 700 points andli raled six hundred. a positive you bounce offer oh of deeplyoversold conditions. the they say the fed is within shouting disnce of neutral. christine lagarde saysr the f of global slowdown are overdone and. towards the close the wagz ran a edory saying the f officials are less positive how far and

fast the central bank needs to go. all of these comments were helpful bringing the markets off lows. but the rally looks tentative even with the dow down 1,500 points in two tais at the ls. buying seems muted. there is good reason to be cautious still. foul the markets have had big worries, most are not resolved. the he had raising rates aggressively isooking less likely. that's good news. that's one, though. but worries about a global oil glut haven't been resolved by ce recent o meetings. we have had tariffs and trade wars. ey're worse with the arrest of huawei cfo in canada. and despite what lagarde says the economic slowed isn't making it hard toigure out 2019 earnings estimates. the debate on the street is simple. do we want a good jobs report or bad jobs report foam? bad jobs report will only get the people screaming that there is an economic slowdown already under way. but a bad jobs report will also decrease the chances of more fed

hikes. that would remove am primele obsto a bottom. good news. so what do we really want? we don't for nightly which is, i'm bob pisani at the new yorkantock ex. >> and earlier today another federal reserve official said the outlook for t economy has grown cloudy. and he too isrging patience. >> i think at this stage you are hearing me be much more cautious and counsel patience. i think there is more uncertainty,lobal growth is decelerating. i'm seeingntest-rate sensitive sectors showing weakness. i want too soon what to make o it. but i think one of the key tools we have as central bank is patience. and i think we ought to use tool. >> the market has not lowered the probability of interest rate crease when the central bank policy makers meet later this month. t that long ago a december rate hike was a virtual certainty. what can investo expect from the fed, the economy and rates?

we'll talk more aut that now with craig dismunok a chief economists at vining sparks. >> good evening, sioux. >> welcome. despite what we heard you expect the fed to continuse to r rates for this month, correct? >> i do. i expt they'll hiken december. and i think where you get some question about it willome in 2019 and what they do then. >> now, which do you think that they will go ahead and rai rates, given the background of what we have seen today? trade concerns and inflation and theike. sure, well remember the fed has to look at a very big picture. we tend to get caught up in the daily movem t. we see stocks down 800 points in a day. and we think is this a purng point or whatnot? the fed has to look at the big picture, unployment still at 73.7. wage growth at the highest level of the cyc and the economy growing faster

than what they thi is sustainable longer term. when you look at that picture they want to tighten policy. but it's time for them to be s more efficient kaplan said. >> the market is worried. but main street may not be. sten to what we heard from jamie dimon. ear is what he had to say about theconomy and the consumer. >> we still have a strong american economy. you see the ceos say the order books are good. balance sheet is good. wages good, unemployment. may hit 3.3% that's good. >> all of the ceoss we talk and say things feel good in the u.s. >> we believ the consumers in good shape. we hear the news. we have the same c you guys talk about all the time. but as it relates to the skeerm are consumer we're in good shape. >> you know, soye craigll i'm struck by the disconnect between what weear from knows

major ceos and what the market anticipates. are they looking ahead,hings are good now but maybe not in the future. >> i think they are focus specifically on the consumer. when you look at the consumer, the consumer is in great shape. debt dpoint, wage growth, et cetera. the bigger challenges right now come from external factors, the slowing global growth, the risk that business investment remains slow because of the fear ofs. trade tari these are factors that could affect the consumer and especially you start to see stock prices fall as a result of that, that a couldect consumer confidence. right now the consumer is in great shape. i agree with the ceos. but if you see things slow down that could change quickly. >> we do have key economic report out which will, as bob pini so aptly put it either disappoint some empeople and cite some people because it may influence where the fed goes with this.

what are you looking for tomorrow? >> we're looking for fair job growth. we've had better than expected job growth all year. weobxpect growth around 170,000. the big key is if avera hourly earnings rise before the 3.. however it hasn't proven inflationary yesterday. a little bit ust below the target. and so i think neck be patient. but if you see wage growth really ramp up that makes it more difficult for them np li. >> craig, thank you. appreciate it. >> thank you. well the fed may have lifted stocks off the ws. but investors will rattle most of the day by trade. an concerns about the emerging economic cold war between the world's you two largest economies. as bob mentioned earlier tensions between the u.s. and china escalated when it was learned a top chinese tech executive was arrested in canada at the request of the u.s.

governme . euniceune has more. weimany see the arrest at h krof as i can'tle. meng winning z isn't just any seener executive. she is the founder's daughter. most believe the trumpra adminion did this on purpose to pressure the chinese as the two sides head into negotiations. and expert known to be close to the commerce ministryis posted take on social media, saying the arrest show that is china shouldn't expect the u.s. keep its word and instead be fully prepared for a long-term confrontation. the chinese government has expressed outrage over the arrest the embassy in canada called it a serious violation of human rights. and the foreign ministry demanded her immedia release. huawei put out a statement about her saying the company has been provided very little information regarding charges and is not aware of any wrongdoing by miss meng. some american business executives tol me that if this

is a pressure tactic it could back fir they say that president xi jinping isn't going to want to appearweak. they worry about tit-for-tat treatment and that the negotiations between the two sides is going to get that much harder. for nightly business report. i'm euniceune in beiging. >> will the trade tensions between the u.s. and canadrs ge from here and what that might that mean for revestors? we joined by john rutleese chief ient officer. do you think a an escalation. >> i do.he like person who was just speaking, you know, my eyebrows are raised overthis, specifics of this thing. arrested at the time she and xi and trump were having dinner buenos aires. she was arreste saturday. and the hearing not until tomorrow. the storyndas kept wraps until today. this has politickings written

all over it. the chinese -- xi --ou know, her father is an f.o.x., friend of xi. and friends of xi. xiill lose face in china if they don't do something to smack us back for thist it's alm guaranteed to do that. >> all right. >> what i would worry about is u.s. busines people in china. >> and what do you mean by that? obviouy there are number of very large scale companies that -- that do business in china, have relationships with chinese companies there. what might the chinese d and what do you mean by you'd be worried about personnel. >> well, the people have talked about how we are in a good trade position because we can tax alm of their exports to us and they can'tut tariffs on so much of ours. that's baloney. u.s. companies have a huge presence in china. they are actually in china producing products for chinese middle class consumers. and those companies are subject to all sorts of what i would

call messing around by government officials. anywhere from permits to run the smoke stacks to open their doors, you name it. u.s. business leaders in china have complained about treatment the last two years. and this is going to make that rse. bu they are going to do something visible to make sure that we don't -- this doe't happen accidentally. >> what about if you are a long-term investor and you may hold some of those companies that do business in china?ou thatave just referred to? what do you do? >> well, i think wheou see days like today where the prices collapse, i'm a buyer of that today at the bottom. which companies, i don't own very many chinese companies. i own someba a. no huawei. t u.s. s&p earnings are just about half offshore. and a large chunk isn china or greater china. one way or the other.

so our earnings here are very vulnerable to things happening in china. >> all right.nk john, tou very much. john rutledge >> a pleasure. >> we often use boeing shares as a measure of trade representations with china. today the ceo explained why china is so foreign to his company. >> what you see is local volatility again in the market because of some trade uncertainty. and we're hopeful coming out of the g20 summit we are on a path to fining a trade agreement with china that's productive for both the u.s. and china.it an important marketplace for us. if you think about aerospace it's an $8.19 trillion marketplace the next ten years. the world needs about 40,000 new commercial airplanes over the next 20 years and 7,700 of those are in china. it's the fastest growing market. very important to us. >> from frayed to oil. prices fell today over growing

concerns that the world's major producers will not reach agreement to reduce .outp domestic crude dropped more than 2.5% to settle at $51 a barrel process. as brian sullivan reports from vienna the drop was due to an unusual move by members of opec to delay their pduction decision. >> the build something clearing out. and the podium behind us remains empty here at opec headquarters in austria because what waspe ed to happen did not. the first time in many, many meetings opec ended their day without aem press annout regarding a production cut. what the oil cartel was expected to do was come and make a deal to cut oil production to provide a floor and firm up prices. oil pavces fallen in november the most in a decade. either because any couldn't reach a deal or more likely waiting for russia to arrive tomorrow. opec ended the day thursda with no deal. the question is this. not only how much will they cut, but how the cuts are distrssuted acll the different opec

members and what is russia's role? it's largely expected that opec will come up with a number, probably one1. omillion barrels of oil but knelled like russia to agree to that deal. russia is not a oc member but one of the world's biggest producers. cehas outsized influ on where the price of soil is globally. we will gather back here in vienna tomorrow when the russians come in hopefully opec reaches aileal. russia bless the deal as well and perhaps vladimir putin becomes more powerful on the glob oil stage. for nightly business report, en rian sufficitly be owen, vienna, australia. >> time to look at upgrades and downgrades. facebook rating cut to hold from boyt stifle niklas. the analyst cites concerns the compans management team created too many adversaries, including politicians, regulators, consumers and employees. the priceart is $150. sharps rose more than 1%13 to

63. macies was downgraded to under weight from neutral at atlantic equities. the analy says expectations are too high and questions the retailer's ability to delner better t expected earnings and sales. ele price target is $28. the stock a fraction to 32.37. activision blird was upgraded to overweight from neutral at jp morgan citing opportunity in the stock. price target is $66 smars rose to 415. stillead, the rise in stock market volatility is not opping car buyers from borrowing record amounts for a new ride.

a number of reports today gave investors some new insight into the economy well start with trade. the deficit hit a 150er high in october. this as soybean exports fell ans impo of consumer goods rose. factory orders recorded the biggest drop in aear in okay. that report showed softness in business spending and also decline in demand for a range of goods. andro private payrollh slowed in november. according to adp, the economy added 179,000 privater sec jobs, which was below expectations. economists say, hover, a slowing is not out of the ordinary given the tightness of the labor market. in washington, tech ives visited the white house to discuss emerging technologies. among those in attendance waps oracle and microsoft and google pichai.nd the meeting focused on the industries of the future like 5 g, robotics and artificial

intelligence. also i washington, general motors ceo mary barra was there with meeting with lawmakers who wanted to know more about the ge areructuring plans. after the meeting barra explained why the company is closing plants and laying offs. work >> the industry transforming. it's important for general motors to make necessary but incredibly difficult changes to make sure that we can b in a leadership position so generally motors to provide job jobs, mafacturing and leadership in the transportation industry as we move forward. >> she met today with michigan lawmakers and spoke with two senators fro ohio yesterday. fiat chrysler plans to open a new the plant d inroit. the company will manufacture jeep suvs and has chosen a site reportedly. the facility will be the first w auto assembly line to open in detroit in 27 years. though there are concerns

about the outcome for the economy we report pts of th economy remain strong. including auto borrowing. new data sutws monthly loan payments are higher than ever, a growing numbers people borrowing at least $50,000 for a new vehicle. phil lebeau reports. >> reporter: americs growing love affair with bigger trucks, vs and crossovers means we are buying more vehicle was higherk st prices. so, we're bo borrowing more and spending more each month, repaying those loans. in the third quarter, the average auto loan hit aor r of just under $31,000. with theay average monthlynt for a new vehicle climbing to an all-time high of $530. and the average used vehiclelo payment also hit a1. record at $ >> if you've been out of the market for five or six years, then these numbers can be rprising but for the average consumer who seems to come back

into the market every, you know, 35, 36 months, they'rehatill higherwhat they saw previously. and they're certainly not going down. >> one reason car s pricesy high is because demand remains robust. auto sales are on pace to top 17 million a fourth straight ar, the best stretch of sales ever in the u.s. so auto makers can and will r charge hig prices. especially for hot models like pickups and suvs with the latest features and technology which explains why experian says one out of five borrowers is taking out a loan for at least >> they don't represent a huge portion of the market. but they ar definitely the area we see the most growth, the loan amounts nar over 5and even over $70,000. you know, small portion butly defini growing. >> who is borrowing 50 or $60,000 to buy a new vehicle?

those with prime or superprime credit the high end of the credit market. it's also one of the fastest growing parts of the auto loan industry. by comparisons loans to those with the poorest credit scores have dropped to an 11-year low. lebea nightly business report, chicago. si net loses sparkle. the jewelry retailer reported a wider quarterly loss impaired to a year ago. that overshadowed the company's better than expected outcome for key sales metric. shares plunged. coggers profit margin pinched as it ramped up online investments to better compete with amazon. but investors focused on better than expected revenue and earning in the recent quarter. $29.56. after the bell, alta beauty said it picked up market share across

major considerings this quarter, stronger than expected profits. but the cost mekt retailer gave lower gui and the shares ended lower. they ended the regular day up a fraction. after t bell, lulu lemon gave a weaker than expected quarterly outlook. the solid quarter. both earnings and revenue grew above expectations helped by increa in same sto sales. shares were volatile in the after hours but they finished the regular day down more than 1.5% to $131.44. coming up, there appears to be a massive shift happening in the market. and it cou change the strategy of long-term investors. oo

here a at what to watch for tomorrow. as we reported, the governmenta re its monthly employment report. wage growth and its implications fornflation will be in focus. a number of fed officials are expected to speak on the economy. the business round table is scheduled to relea its ceo economic outlook satvey. to watch for on friday. the government will avoid a partial shut down for the next twoweeks. congress approved a temporary spending bill providing funding to several feral agencies through december 21st. impasseakers remain at over whether to fund the president's $5 billion border wall. atic leaders are expected to meet with president trump next week to discuss tha funding. mortgage rates continue to fall in we can as increased volatility in the market sent investors into the safe havens

like government bonds. freddie mac said the average rate on b thechmark 30-year fell to 4.75% a two-month low. nthere has clearly b a massive shift in the market some call it seismic. stocks swingin wildly the past few days and weeks. but what does that mean for long-term investors? tonight we are joined by karen murphy, chief investment officer at united capital. >> thanks for having me. >> what do you see behind the shift? because clearly things are changin and different less t a month ago. >> the market is grappling with a couple of different issues at have been brewingor some time. but have reached a head at the same time.ke and we have t about both. number one is trade wars. so we have had saber rattling a number of months. actual tariffs in place for a nuwher of months. you look at actual dollar value relative to economic activity, it's fairly small. so the bigger risk with continued trade wars is the

impact on overall company activity. so once you start to haveeos y putting off building the next factory or not hiring the next worker, that's where you start to see the knock on impact and theative impact overall on the economy from trade wars. so as predent trump and xi are meeting, the stakes for the meetings go higher. the other one we have talked about, which i the federal reserve. >> um-hum. >> the fed has been raising rates forea number of now. they've been very slow and methodical about it. none of that is a surprise. but as rates ratchetp we have seen expectations for global growth coming as to those two things, they are reaching a bit of a tipping point where the mars concerned that the fed is pushing too hard. >> right. so what is the long-term investor supposed to do that wall of in? because we are hearing positive comments from ceoavs that their -- you know, their finger on main street on the pulse of

the economy. if you you are a long-term investor how do you hdle the volatility and the shift we see in the market? >> so injury the most important thing i to remember as you said, the economy is actually fairly strong right no it's definitely decelerated over the last couple of months. but even looking intoth 2019, w k companies are growing earnings. wages are continuing to increase. so though there are warning signs flashing we don't see the prospective019 growth changing that much. the other thung i would say is 2017e saw volatility very, very low. >> right. >> 2018 volatility has ticked up. >> indeed. >> that larming but it doesn't mean you change the strategy. it's important to stay focused on the longest, not reacting to each of the headlines month a day to day basis. >> you are recommend health care and insurance, kara,hank you for joining us. kara murphy. >> thank you. before we go a look at final numbers from wall street. a roll till session. theow down 79 points to 24947.

the nasdaq rose 29. the&p 500ell 4. and that will will do it for "night tonight i'm sue herera. thanks for joining us. have a great evenin everyone. and we'll see you tomorrow.

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