>> announcer: this is "nightly business report" with sue herera and bill griffh.>> bold and bears. petitionsism isnt running ram but is the growing negative sentiment a good sign for the market. >> calling a bottom? aongtime ge bear says the worst is over for the stock and shares embarked on a song rally. closing the gap, why women and mprority enteurs have a hard time raising money for their businesses. and what's being done about it. those stories and much moret tonigh on "nightly business report" for this thursday, december t 13th. good evening, everyone. and stocks took a breather today from the recent volatility. the mket flipped between gains and losses. and the bulls and bears struggled f control.

on one side was optimism over improves trade rel the u.s. and china. on the other concerns about a global economic slowdown. and by the close it was kind of a mixed finish. the dow jonesl industrverage rose 70 points to 24597. e nasdaq fell 27. and the s&p 500 was down aon frac bob pisani takes a look at some positive and neginive force the market right now. >> we kicked off with a rally og y 200 points but there wasn't a lot of boying volume behind it. by late morning the f rallyed fast. the market have been very si inde recently. investors weighing pros and cons with new headlines emerging. there is n market hfs nchgts floating around. the big smu is global growth slowing next year butow much. it's touch for experts to model earnings in 2019 without knowing the extent of the global but then you have president trump's potential legal problems. we saw the markets take a leg down on the reports that national eninquire err it helped

facility hush payments to a playboy model amgd to have an affair with president trump in order to prevent her story from influencingleheion. today the european central bank made it clear it will begin to wind down the easy money policy next yyear, likfter the summer. but there is a lot of market positives that are out there. our own central bank, the federal reserv isignaling fewer rate hikes in the new year. i think that's important. then we have opec reaching a deal on production covets. finally tariff talks are ongoind e have seen real signs of china trade relief in the past we can. including the move to resume u.s. soyan purchases. the overall tone is a bit more positive than it's in a while. finally the latest investor sentiment out from the american association of individual investors shows the down attude is at the highest level in five years. that bearishness signal as short--term mket bottom.

for nightly business report i'm bob pisani. >> andri levitt joins to us talkbout the sentiment. good to see you. welcome back. >> thank you. >> i learned long ago it's dangerou to pick a bottom in the market. but tha high a pessimistic number suggests that' one of the traditional benchmarks of a bottom in the market. what do you think is going >> i think that's a good sign. we have had a natural correction in the markets andme sen got weak. a lot of that around policy uncertainty. we are seein some improvements. we are not all the way there. but it is good news that the fed seems to be backing down. opec seems to have put a bottom in oil prices.d we n see more clarity on trade. it looks like incremental steps. all oft should set up for a better time in the broad equity market. >> you would disagree those who say, you know, we need another 10 to 15% to the

downside to market t equalize and prices to become fairly valued. >> no, i don't think we need another 10% to 15% decline in the markets. correspondent earnings are go the global economy is reasonably good. inflation is generally benine around the world and valuations were t not thatt excessive. you bring multipling down some in theticorrs. and earnings looks good given where the tax cuts left earnings. and it's not b a back drop for equities. i don't think we need a leg down. but as you know the market tries to sense what's going on n nine months dhe road. fnd there are high profile investors, the j gundlach to name one. feels we are heading to a recession b2020. >> i don't think we head to a recession by 2020. what i think is important is that the u.s. economy is slowing. that's not a bad thing. 2018 was a year of very good growth in the united states. but tough policy. higher interest rates and taxes.

and 2019 in our mind is going to be a swer growth environment but a better policy virmt. that actually shapes upo be a better time for markets. in order for there to be a recession by 2020 you would need to see pretty high inflation in the united states, a fed that's significantly raising interest rates, another significant leg of dollar strength. and given how benign the inflation back drop is and the d is pointing towards a tadual rate tightening cycle, i find it hard believe that there is to be a recession in 2020. >> very brian levitt with oppenheimer funds. thanks forhaoining us. >> you. >> well the decline in both market and economic sentiment did show up in the most recent cnbc all america survey. but as steve lightsman reports that's not stopping people from spending. >> reporter: america's plan to spend record amounts or the holiday this year even though their views of the economy fel restrainingly from record levels.

the cnbc all america economic survey foundoliday spending plans topped $1,000 for the first time inhe 129-year history of the survey. rising to a record $1,100 with gains spread across income age and regional groups. the survey of 800 americans nationwide is a margin of error of plus or minus 3.5%. spondents reported the hirer spending plans are results of higher incomes, showing rising wages and better employment in the economic data mean more and maybe more expense every presents under the tree. yet the survey also found that views on the economy fell the most in the survey's history. the assessmt of the current state of the economy dropped a record 8 points on a quarter to quarter basis with half of public saying the economyce is ent or good. and the percentage saying the economy will improve in the next year fell 5 points. both numbersem however rn at relatively high levels. it might reflect a sense the economy has slowed or can't prove much more fro here. the recent selloff in the stock

market dampened american views on the outlook for equities abimpressed overall economic the message from the survey is clear. santa's sleigh will bewi laiden overflowing bags of presents this christmas but next year a little bit lighter. nightly business report" steve liesman. the concerns over global growth came into focus i europe. as bob pisani mentioned, the european central brackeen cut the growth target for the region amid increasing uncertainty. >> there is surrounding the euro area outlook can still be assessed as broadly balanced. however, the balance of risk is mong to the downside, owing to the peistens of uncertainties related to geopolitical fa the threat of protectionist, vulnerability in emerging markets and financial market volatility. >> now along thoseline the

ecb decided to end the historic stimulus p put in place during the financial crisis decades ago. interestingly it plans to keep the k interest rate unchanged at least through the summer of next year c andplicating mattersfare the european economy is the uncertainty created by brexit. that topic dominated the eu summit in brussels where the british prime minister lobbied european leaders to support her brexit program, something thatn eds to be approved by her paiament to prevent a chaotic exit dpr bloc process. as reported t british prime minister survived a no confidence vote but uncertainty around her brexit plan remains. back here in the u.s.s jobllaims dropped back to near 49-year lows. the number of americans filing mer unempl benefits fell last week by 27,000 to a sundayly adjusted number of 206,000. economists say that the fightening labor market increases the probability the federal reserve will hike

interest rates when it meets next wk. a report on import prices today reinforces the notion that inflation remains muted. the release showed a drop of 1.6% last month. more than expected. and it was the biggest decline since .mid-20 this report follows weak overall iadings on producer and consumerlation that we told you about earlier this week. time for a look at some of downgradesgrades and beginning with shares of proctor and gamble, upgraded to buy from neutral at bank of america merrill lynch. the analyst there believes the stock's recent momentum is ai suble. price target now $108. the shares rose more than 2.5% to near a 52-week high at $96.49. >> fellow dow xenoen coke downgraded from neutral to buy at ubs. the analyst says the many changes that the company's raising the risk for coke's growth ictargets. target now $51 and the

shares rose nonetheless to $49.47. marvel tech w upgraded to buy from neutral at citi, the analyst sees the margin expansion at the company. the shares rose 15%o $15.65. general electric was upgraded to neutral from underweight at jp morgan. the analyst removed the shock from the short idea focus lis saying g.e.'s challenges are better understood. the pris target which is $6 which despite the upgrade is the lowest on wall street. shares gained% to $7.20. morgan brennan takes a closer look now at this call and g.e.'s latest restructuring move. >> wall street's biggest bear called a bottom on g.e. shares. jp morgan analyst grading g.e. to neutral from underweight but keeping the $6 price target the same. upgrade is significant. since the analyst was the first to call g.e. into question. downgrading the name n may of

2016 when it was still a $30 stock. since then predictions proved largely right much to the chagrin of longtime shareholders. according to the analyst the key to the story in our view is the outcome of the knowns unkno in near term which are better understood and around which debate is more balanced. as opposed to to being overlooked by most bulls in the past. still, he does believe the beleaguers manufacturer may have to sell new shares to raise cash. even though new ceoarry kulp says last month that wouldn't be necessary given plans to sellf up to $20 billion in azbleets as jood won wooden be saidamsz basketball coach be quick but don't hurry. i think that's the minds have. we look at health care for example, a tremendous franchise. we talked in june about an ipo where we take of19.9he proceeds as cash. we have flexibility and options there. >> whi the upgrade moved the

suffolk g.e. announced news as well processle planning to create a new independent company olly owned by g.e. for industrial internet of things software. the stand ane subsidiary will rdt a new ceo, new equity structure and bf directors. housing the digital technologieo that g.e.e spent billions betting would become its future. but the news after t cutbacks in the digital business adds more clarity to the mpany's long-term plans as yet mother management team continues the difficult process of turning the american behemoth around. for "nightly busimss report" morgan brennan at the new york stock exchange. and still ahead, what's being done to close the funding gap for women entrepreneurs.

> there are reports tonight that federal prosecutors are investigating whether presidents trum inaugural committee misspent money. according to dow jones, the criminal probe is in itsarly stages and it's examining whether some of the committee's toponors gave money in exchange for access to the incoming trumpdministration. e probe arose out of materials seized as part of the investation into the president's former lawyer, michael cohen. the president took aim at general motors. time do yoe a fox television interview where he said the auto maker would not be treated well. his comments in response to gm's recent edition to cut about 15,000 jobs and close plants. >> tell me a couple of weeks before chrisas she is close attention in ohio and michigan, not acceptable to me. and she is either going to on fast or somebody else is going to go in. but general motors is not goin to be treated well. >> the president made the

comments midday and that's about the same time that the stock starte drifting lower. >> renault board says the that carlos ghosn is remaining as thn chai and ceo. ghosn is under arrest in japan derstating ly compensation. he has since been ousted from enault's partner's nissan and mitsubishi. renault says its own internal probe found no wrongdoing by mr. ghosn in france. hiscostco earnings afternoon are have youed by some as early glimpse in the holiday shopping season. as electrically pick ert tells us the quarter was disappointing. >> costco glipgar in aftert trading after missing wall street estimates on both the tod ottom line. earnings came in about 1 cent below analystxpectations and revenue missed by a half billion dollars. the miss in subsequent stock price declins revertrength in kostka of shares, up about 20% over the last year.

costco had been beating expectations onomparable sales reporting, nearly 9% in november, far better thanre st. but the company has been struggling with international pansion and lower margins on gasoline. for "nightlbusiness report," leslie picker. >> delta revenue may lose altitude. that's where we begin the market focus. investors are growing concern the slowing global economies will limit the airline but the ceo says he expects the current strong demand to continue into 2019. >> this will be the fourth year in a row this year we make $5 billionit of pr returning 14% return on capital back to the investors. and it's going to stand the tt of time. who can do that through the cycle? delta ha a great lead. >> apparently the comments were not enough for investors sending 53.55.ck lower by 5% to sienna reported the strongest earning in sales growth in years.

he networking systems company expects 20% profit growth next year. the board alsod authori a new buyback program of up $500 million. and shares rose more than 8% to $34.91. meanwhile underharmer ceo is company e case for the turn around. yesterday we told you the add leisure apparel maker cut financial targets. today the ceo says he has a plan to regain momentum, especially in the north american market. >> we sa becoming a global brand we have to do that in the largest mark. north america is essential for that. we want to do that through innovation. thugh energynd excitement things like stephen curry the new six he gave last night in toronto. the hover upgrade we have. innovation will be the name of the the financial metrics are a by-product of what we do to make sure we deliver to t consumer. >> investors wrrnt exactly convinced ons. t the stock fell 5% to 18.77.

thet justice departmas ended an investigation into sea world's respoe to a 2013 documentary that was critical of the company. the justice department did not take any actstn aga the company. earlier this year, sea world agreed to a $4 million penalty to settle charges it misledin stors. nonetheless the shares down a fraction to 27.56. after the bell adobe said a rice in subscriptions for cloud softwareelped total revenue rise above expectation. the gains helped net income grow but not at the pace wall street hoped for. and so shares were volume nil after hours trading. ending the regular day up 1%o 248.08. certainly one of the biggest obstacles to starting a busins is money. and for women it's especially chlenging since only a small portion of venture capital funding goes t female founded start-ups. but as julia boorstin reports aere is a you go big push to

change thatnd close the gender gap. >> at frrn's most powerful quill women next gen conference the spotlights on the value for diversity por everin dollar sted start updated generated by women generated double the revenue that male start-ups did. according to a study. despite thet financial argum for diversity 17% of start-ups in the u.s. had a woman founder and two% of vc funding with went to female found zbleers we have a long way to go to get to parity. but we are seeing ahift in the conversation. and more people talking about, one, not only funding female founders but also thinking about who are the funders around the table? ande have more of this conversation, more emphasis on that. >> half the investments in the last fund including glosssier andaily harch were female led companies. >> it wasn't the mandate to

invest in women. but she said she may have seen opportunities her male counterparts didn't. one reason such a small percent of the vc funding goes to is that 9% are women and 3/4s of u.s. firms don't have a female partners. >> new organizations are tackling in issue. all reyes fuses on women in vc as funders and foundersers. while hashtag angels helps educate vc in start-ups on the value of bringing in women perspective early and investing in diverse teams. >> our little cottage indmatry up of small firms are highlighting the importance of diversity. are finally getting it. and for that i am he can state. we ho make sure as an industry that those women and diverse hiresre not looked at as diverse hires. they are incredibly productive and high-perform and equal members of the team.

>> she says there is a direct correlation between higher returns. two of the last three funds are top performing. driving optimism the vc gender gap will coalesce as people understand that diversity is good for business. for "nightly business report" julia boorstin in danali point, rnia. and a new report from morgan stanley show that is there is a big gap in the investments women and minority entrepreneurs receive. so here to ta more about the finding it carla harris morgan stanleyice chairman and head of global welt management and multicurle client strategy. good to see you carla thanks for having me, sue. >> what do you think is behind the results of this? is it simply we're not at thta e, women entrepreneurs and venture capitalistsre not at the table you believe where they should be. >> that has a lot to do with it. t frankly the ren we saw what we did as you just articulated

there is not that much capital flowing to women or people of color in the past. as you know that has been a very closed ecosystem. so unless you know somebody who is a vc you had a hard time getting in the door. if you got in the door there was some bs because there was a ack of experience among tho around the table making the decision. >> and along those lines, carla, it's about relationships. even i you gain relationships that are important to gaining the funding. i keep hearing the bar is higher for women and people of color than it would be otherwise. is that true. >> our r tort foundt. thanks for mentioning that. it was clearly the condence issue was one cited ashi som that they needed to see. the asset aloindicators needed to see more in women and people of color. and also an implication that somehowhe founders needed to bring a business that had been significantly derisked. so o conclusion washat there was a perception in the

marketplace that there was extraoinary risk associated with businesses that were founded by women and people of color. and that is a huge misperception which is one of the reasons that we wante tto put report out there to call that out. >> but you've also brought some companies and entrepreneurs and some venture capitalists inhouse. >> as. >> to t work around that particular problem. >> absolutely. and i willell that you our experience has been terrific. and ifact it has proven out that there is not extraordinary risk associated with these entrepreneurs. to give you quickly a snap shot our first class five or five. one mpany was brought seven weeks after being accepted in the accelerator another one was purchased. aed third significantly raisedn more money t they had intended when they came in. andou ah did a successful ico raise. the fifth went on toer a wonderful accelerator that focuses just on women, the hertz

lab and invested more money than wedid. >> tooin a phrase, if you can't join them, beat them. that's how that works. >> exactly right. carla, thanks so much. appreciate it. >> thank you to both of you very much. >> carla hair whi morgan stanley. coming up, the new space race reaches new heights. the boy scouts of america f may fil bankruptcy as it faces growing legal costs tied to lawsuits alleging sexual abuse of boys within the organization. the "wall street journal" says executives have hiredm a law f to assist with a potential chapter 11 filing. now such a move which potentially would allow the boy

executes to pause lawsuit giving it opportunity to settle with victims who resued. >> mortgage rates have fall ton the loafest level in three month. the mortgage giant freddy mac says the avera on a 0-year fixed rate pel. but the rat are still higher from where they were a year ago. apple is expandi the footprint. the tech company plans to build a $1.0 billion campuaustin, texas. its third in that city. that a will createut 5,000 jobs. and the company isn't stopping there. it says it's opening three new office noticeseattle, san diego and culver city, california. an expanding operations in many more cities across the country. speaking of california, the utility regulators there have proposed taxing text messages. the group says that the revenue would help fund greater access to telecom services for lower income residents in the state. but it's unclear how far this proposal will get because the

new ruling by the fcc classifies text messaging as an information service rather than a telecom service which means the messages may not be subject to the utility agencies authority. >> ranhard s the space tour imts company successfully flu its spaceship unity more than 50 miles above the mojave desert piloted by two members. reaching a speez of mach 2.9 nearly three times the speed of sound. after the space craft goes through extensive tests bransen says he g hopes toe others the once in a latest opportunityel tr to space. >> i would hope that somewhere -- sometime in the middle of next year i'll be going up and then quite soon after that the public will go up. and we're building here in the mojave, two new space ships. so in the not tao distantuture

we have three space ships operating from newholm x going up. >> start saving. tickets are $250,000 apiece. >> a long a as he goes first i'm okay with that. >> look at the final day on wall street. not as much volt tilt dow up 70 po nasdaq down 27 and the s&p down a taction. >> t is "nightly business report" for tonight. i'm sue herera. thanks for joining us. >> i'm g billffeth. have a great evening. see you tomorrow.

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