business report" with sue herera and bill griffeth. >> dizzying day. the dow swinging more than 500 points as volatility conenuing tohe new normal on wall street. >> the last timehu chuck you it down. >> no, no. >> and then you went -- i don't know what to do what you did. >> oval office showdown. the president and democratic leadership have a very public, very heated spat over how your taxpayer dollars should be spent. >> switching gears. ford a reviv discontinued model with the hope that a smaller pickup truck will drive big sales. those stoes and much more tonight on "nightly business report" for this tuesday, december the 11h.

good evening, everyone. and welcome. well, if you're trying to figure out why the market is behaving the way it is, you probably have a big headache by now. was another day of sharp rallies and sudden selloffs with the fight between the bulls and bears resulting in stomach turning volatility. reports on trade and the possibility of improved relations between the u.s. and china sent stocks higher. but they didn't stay there. and by thend of the trading session the dow jones industrial average fell3 points after swinging more than 500. the nasdaq was up 1and the s&p 500 was off a fraction. so if the market has been acting confused lately it may be because it is. bob pisani explains. > reporter: an early rally fizzled out by late morning whippi out a gain in one fell swood. a midday rally ended slighy down. the markets have a new problem. investors are indecisive a positive trade talk is starting

to run a course as a market mover. look what happened. stocks opened as president trump said watch for announcement on china and trade. lasting for an hour. but the market lost the gains before 11:00 a.m. eastern and took a decisive the downturn after on camera slash with the house majority leader and chuck schumer. the d.c. drama did nothing to ngnvince investors any positive legislation inclu infrastructure spending might come in the next two years. but the rally lost steam before that meeting. big industrial names like caterpillar and boeinglat. energy stocks. bank stocks, tech stocks. what's going on? many traders now believe the constant stream of tweets on positiveotrade ntions is no longer having the magical effect it had a few weeks ago. the trade story is starting to take a chlorer toll.

th markets are going, wait a minute we he had heard this before. this time, we need to see results. for "nightly business report" i' business pisani at the new york stock exchange. >> as bob menoned investors breathed a sigh of relief when it was reported that the u.s. and china were talking again about trade. eunice yun has the details on the call between the world's two largest economies. >> reporter: china reaffirmed that trade talks the u.s. are on. in a brief statement on its website, the commerce minoriist confirmed the cal between liu he and robert lighthizer and treasury secretary steven mnuchin. they sd they out lined ways to push forward the time table and road map for the next stage of economicnd trade cultations. the phone call sent a signal to

ma thahey want to prevent the trade talks from getting sidetracked by the outrage over the arrest of the huawei cfo. even though the chinese haveot linked the two events. separately the foreign minister the reiterated to state tv importance of the u.s. and mcworking together to overcome trade differences saying if mcand the united states are antagonistic then there are no winners. another sign that china wants the trade war to end. vice premiere, liu he, the chiee negoti for the chinese is expected to head to washington after the new year. there are also reports tonight that china has reportedly agreed to reduce tariffs on erican auto imports to 15% from 40%. cha had raised tariffs on u.s. autos as part of a tit-for-tat d exchange ofies earlier this year. according to the "wall street journal" it's not clear when the

change would take effect but washington is pushing beijing to ke it start as soon as possible. and that lifted the shares of the maj auto makers gm, fiat chrysler >> now to washington and the remarkable oechl office meeting that played out onational television. the president was there with mike pence, along with congressional democratic leaders chuk schumer and nancy pelosi. on the agenda funding a border wall and a potential government sh down. as eamon javers reports no one could have predicted what happened next. >> for the first time since democrats won control of the house of representatives back in november speaker of the house designate nancy posi with her senate counterpassport chuck schumer cam to the white house to negotiate with president trump on keeping the government open but things went badlyrom the beginning starting with the moment in which ploels suggesteh any shut downwould be his fault. >> injury the american people recognize thatt we m keep

government open. but a shut down is is not worthg anyt and that we should not have a trump shut down. did you say trump -- >> you have a white house. you have thesenate. you have the house of representatives. you have the votes. you should pass dsh zbosh as all sides continued to argue past each other even disagreeing on some funnmental facts the debate, we had this moment in seemed todemocrats lure the president into suggesting that he would accept the political blame for any government shut down that happened. >> yes. if we don'tet what we want one way or the other whether it's through you, through a, milita through anything you want to call, i will shut down the government. >> o >> and i am proud. i'll tell what you. i am proud to shut down the vernment for border security, chuck. because the people of in country don't want criminals and people that have lots of problems and drugs pouring in our country. i will take the mantle. i will be the one to shut it

down. i'm n blaming blami you. the last time you shut it down it didn't work. i will take the mantle of shutting down. i'm going to shut it down for border security. >> you suldn't shut idown. >> where did that leave things? as of now a shut downlooms after december 21st. democrats have offered 1.6 billion krars in funding for border security generally but not the specifically for president trump's wall. the president would like $5 billion t funding fort wall. as of now, both sides are atn impasse. for "nightly business report" eamon javers at the white house. heated political discussions are also taking place across the atlantic. one after british prime minister theresa may delayed a brexit vote due to lack of support, her government faces the possibility of a no confidence vote led by the oppositionto party. y may spent the day lobbying european leadners a bid to save the british deal to exit the european union but german leader angela merkel

ruled out further moerkss o did the heathe european commission. thng united m is set to leave in march which could affect the global econy. >> back at home a gauge of inflation rose slightly last month. the producer price index measuring the priceusesses receive that was up 0.1% in november slowing down from october's 0.6% begin pch process and increase in the cost of services was offset by a decline in energy prices. but overall prices are up 2.5% compared to last year this time. and market watchers aren'tc just wg inflation but also rising corporate debt levels. bond invtor jeff gundlach recently talk about it and jp morgan noted the economic risk due to the increase. and in an interview last night former fed chair janet yellen added her name to the list. >> corporate indebtedness is now quite high. and i think it's a danger that if there is something else that

causes a downturn that high levels of corporate leverage could pro long the downturn and in to lots of bankruptcies the non-financial correspondent secretarier >> compani today carry a $9 trillion debt load compared to 4.9 trillion in 2007. that could being bee a heada for corporations should interest rates continue to rise. so why are corporate debt levels rising? it i it something investors should be concerned about yet? joining us colin martin, the director of fixed income strategy at charles schwab thanks for joining us. >> thanks for having me. >> why has corporate debt gone up as much as it has in the the last decade are you nervous yet. >> we are n nervous yet. risks are growing but for now ner relatively well contained. we have seen the huge debt in corporate debt outstandin because of the low interest

environment. corporations issued more debt at historically low interest rates. but the risk is at s the debt needs to be repaid at some point and refinanced and likely at higher interest rates now that rates have risen not just for treasury markets but for corporations. >> f i the averageestor watching this program, it's important toelhem, why? >> it poses a risk specifically for correspondent bond investors. the questionil arises the corporations be able to pay me back, pay that bond but it also has broughter risks for the economy and other markets as as the amount of debt outstanding rises and interest expenses rise, that takes away potential money that can be invested elsewhere in capital ending, wages, compensation. it really can have spillover effects on the economy as a whole. >> when will you get nervous? what will you watch for w to sa thare getting to a level you get sweaty palms. >> looking at corporate profitability, the level of credit rating downgrades.

and oil. for corporate profitability remains strong but as the calendar turns kpashzs overyear over year it will get m more difficult bus we have seen the tax effect. we focus on credit rating downgrades in the corporate market you have the investment grade and high-yield market. knows are credit rating like a score a consumer has based on rrowing levels. a big risk is the achlgt triple b rated bonds,he lowest running of the investment grade market. if we see them downgrade today k territory r j that poses a risk for the broad market. >> why oil. >> a big chunk of th high-yield market is aloindicated in ten gy sector, issuers as the price of oil comes down that impactlo cash therefore the ability of the corporations to repay their debts as they come due. >> so some things to be mindful of not there yet. >> not yet. >> colinartin from charles schwab. good to see. >> you thank you stloo. it's time to look at upgrades and .downgrad

pfizer downgraded to neutral from overweight at jp morgan.s citing concever the loss of exclusivity of one of its key pains. treatme the price target is $46. shares of the dow component fell to 44.01. at&t was upgraded to buy from neutral at cit citing positive trends around the wireless business. she pris target is $34. nonetheless shaell a fraction to 29.70. and cvs was initiated with outperform in new coverage at link. siting optimism around the acquisition of aetna. the price target is $100. and shares rose t 73.41. >> still ahead a silicon valley giant testifies op capitol hill for the first time amid growing distrust among some lawmakers.

the ceo of google today told lawmakers on capitol hill that his company has no pla foss launch a search engine in china. sundari pic would only describe the program as an internal google project which critics say if launched in that country would knowingly be subject to state censership pichai made the comments during his first ever congressional testimony that focused on data privacy and potential bias in its search results. ylan muymo has . >> sundar pichai testified for three and a half straight hours before t house committee, defending the company against accusations against political a bi denied that a crowds

est competition and mishan user data. >> protecting the privacy and security of users is long an essential part of our mission. we have invested enormous work over thech years to brince, transparency and control to users. these values are built into every product we make. >> some lawmakers weren't sold demand being answers on exactly what data google collects and what happens to >> does google through this phone know that i have moved here andoved over to the left? it's either yes or no? >> not by defaultay there be a google service which you've opted in to use. >> so google knows that "i" moving over there? it's not a trick.questi you know you make $100 million a year. you ought to be able t answer that question. >> there were tough questions on china. where google had beenat contemg doing business. pichai said the talks were part of limited dnternalcussions and for new they're on hold. >> right now we have no plans to

launch in china. we don't have a search product there. our core mission is to provide users access to information. and getting access to information is important human right. so we are always compelled ross the world to try hard to provide that inf-mation. andut right now there are no plans to launch search in china. >> pichai framed google as an american successtory. referenced his personal journey as an indian immigrant w turned ceo. and he said he is thankful for the freedom and opportunities that heas received. for "nightly business report" ylan muy. in washingt >> and from one big company to another. coke has its work cut out for it just like many other packaged goods companies. the downt compo has older brands that need to stay fresh. and if sass era as sarah eisen reports from atlanta, management team has a new wistrategy that it hopes ll do just that.

sn this i't the coca-cola we grew ur un the new leadership of james quincey the ceo and to a toon soon to be chairman in april. the company has gone down a the tells the story. fair live with milk. new productse body armor and new products like simply light juices moving away from soda and the core coca-colar app coca-cola and diet coke. wall street is embracing tte st. >> i think you saw out of the summer it became a little softer as w got into september. and so we did see a litdee ine in september. again, 2019 i think is uncertain. you know,f you have lots forecasts out there, whether the u.s. or globally saying there is growth next year. maybe not as much as 2018. a little bit slower but still growth. stil growth in u.s., still growth in the global economy. we think the consumers will have

the money. and so we are bullish on our an >> and that diversefy indication is a key.da consumption in the u.s. has been declining every year since 2002. that's onlyicking up pace. it's coming at the expense of the rise and bottled water, juices, teas, and coffees, all places coca-cola is going. which represents a major cultural shift for this 132-year-old company. that once only focused on brand coke. >> refocusing on the consumer production has had a wonderful effe the flagship brand coca-cola. it's leading the growth equatn around the world this year. secondly i think we have been more disciplined abo how we invest and innovate in the newer categories. i think we have learned many lessons from arounhe world over the last number of years. and with some of c thenges that have taken place in leadership in key positions, i think we have got the -- both

the capability and focus to pursue the new opportunities sfl there is also the macroeconomic environment getting more challenging. rising political uncertaety. tr wars, all cause the dollar to strengthen which cuts into the profitability at coca-cola which cuts owe gets most of its business overseas. the u.s. consumer has alsop softened the last few months. all of this is why quincey says he is focused on what he can control, namely diversifying the product portfolio, technology and personalization building that into beverage experience. all in an effort to attract younger consumers. for "nightly business report," m sarah eisen in atlanta. >> dsw puts a best foot ford where we begin the market focus. the shoe retailerd repor better than expected earnings revenue and comparable store sales and raised full-ier guidance. tttributing the strong results in p to the rollout of the kids shoe department. shares jumped by 8% today to $25

and a penny. cvs shareholders elected amp re 11-member board at the company annual meeting today. the new board's firstl task w ceoo decide whether former less moonves should receive a $120 million sevatance package he meeting they adjourned without discussion of the investigation into sexual misconduct claims against moonves. cbs shares fell 3%o 48.24. and wpp is embacking on a major restructuring. the world's bgest advertising agency plans to cut thousands of jobs andhut or merge almost many 200 offices. e decisio comes plonts after the disparate you are yur of the founder and ceo. shares of wpp climbed to 52.38. we told you yesterday that thousands of verizon workerless agreed to voluntary buyouts today we know how much it costs hee dow component. the company saysrice tag

could be about $2 billion. and it will be recorded in the fourth quarter. it will take a $4 billion charge related to the oath media business. verizon shares rose 1% to 58.85. biotech portola pharma said its treatment for bledding which is approved in the u.s. will be reviewed by europeanrefficials beeing given the green lightly. officials are seeking additional information regarding the mpany's marketing applications. investors were disappointed and nt the shares lower by more than 6% to and after the bell american eagle reported another quarter of same store sales growth. but it wasn't good enough to top wa's revenue expectations. the clothing retailer also gave disappointing guidance for the current quarter. f shares initiall in the after hours and it finished the regular day down 2.5% to $$19.03. health care could be in for major changes in the new year.

accordin to a newreport, the industry is making a big push to goit d. bertha cumulus has the details. >> reporter: for years health care has been playing catch-up with other businesses when it comes t technology. but in 2019 the health industry is investing more in artificial intelligence robotics and mobile tech. s >> we pharma spending a lot of investment dollars iny digitaupscaling the r & d portfolios and trying to find better faster ways to to get drugs to market. >> researchers from consulting problem pwc say the fda is. poised to approve new digital technologyompanies from drug makers partnered with tech nextier. just this woke a new treatment app by there puttic and novartis sand oz unit which augments treatment for opioid abuse with support. then there are entrants like amazon already dominating the digital world. ramping up pill pack and new

venture with jp morgan and berkshire ahathway. apple rolling out more health features on the iphone and watch lik the new heart rhythm and monitor beth positioning to be central health care players. >> apple engineers has bee publicly reported are working on trying to figure out if they can use the watch to measure blood pressure. if that were to occur or ifhe an mobile technology provider could do that, that would be revolutionary. >> cvsealtherged with aetna wants to ruchlgize consumer health care with things like digital health records that make care easier to access at pharmacies and providing doctors and nurses on demandvailable online. >> we're excited tosz the new pralgt models come out to help drive better costs afford ability within the health care economy. but a lot of focus on drug pricing. >> the verdict is out on how quickly the new options can deliver on lowering costs for consumerers. but washington will be a b

factor in drug pricing in 2019. the tru administration's first proposals to lower medicare drug costs are expected to be mid-year. around the analysts expect more drug regulation to follow. "rghtly business report" i'm bertha moombs, new york. >> ford peace move to are rev up sales. >> the ranger is back and who buys in mid-size pickup in i'm phil lebeau we take you for a test drive with the new ranger t coming up on"nightly business we reported earlier that ford shares got a lift today on reports that china may cut the

imports.n u.s. auto well ford is also hoping to get urn of lift from a r its smaller pickup, the ranger. phil lebeau as youak saw t us to southern california for a ride in ford's newest old truck. >> reporter: the ranger rides again. ford's newest model is a mid--size pickup geared to capitalize on growing demand a smaller, sportier truck. >> these vehicles serve a lot of functional purposes out there. but there is also enough kind of disposable income and prosperity that people are buying for lifestyle reasons, fun on the weekends, tow toys. >> the mid-size is gearedthoward lifestyle buyer people who want to take it off road which is why fordui the ranger for extreme diechgt conditions. >> the ranger may be rugged enough for off roading but bigger challenge is taking on other mid-size pickuping like

the popular chevy colorado or the gladiator, the jeep pickup coming out in isripg. >> thi crowded market. a lot of great product out there. ford will get a certain amount of volume simply because the brand and history. outthey might have missed some additional volume they could have had a few years ago if they camer. earl >> as the ceo jim hack et wrestles with the possibility of cutting jres and ructuring ford, the auto maker will lean trucks.strength in ford's best selling f series should spark interest in the ranger. being slightly smaller and arting at just under $26,000 will attract buyers looking for a pickup and the new trails that mmay lead t down. hil lebeau, "nightly business report" outside sdiego, california. well this probably comes as no surprise. a record numr of americans are expected to fly in holiday season. industry trade group airlines for america projects near lip 46

million passengers will travel on u.s. airlines between 2 decemberth and january 6th. and in each of the last five years the industry has toppeds the previ year's record. before we go, a final look at the day o wal street. another day, a little volatility. the dow swinging 500 points fell 53 points at the close. the nasdaq roseth 11. s&p off a fraction today. keep an eye on situation in the . >> absolutely. >> more tomorrow. >> and we will have that for you. that isnitly business report" for tonight. i'm sue her aif thanks for joining us. >> i'm bill griffeth. have ani great e. we'll see you tomorrow.

>> america."c world news funding of this presentation is made possible by the freeman foundation, and kovler foundation, pursuing solutions for america's neglected needs. >> this fall, it is a season of revelations, from the choice of america's favorite novel. >> it's 100 books we want people to take a look at. we are hoping to get people to f ll in love with novels again. >> to the fate ohero's love. >> i'm still here. >> and i. >> from the secret l of the

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