this is "nightly business report" with bill griffe and sue herera. >> wait and see, that's what investors seem tos be doing they look for more clarity on .two big issu shutdown talks and trade. act surprised as filers calculate their taxes, some say it's not what they expected. >> aging in place. more older americans are doing it, but it's complicating things otential home buyers. those stories and more tonight on "nightly business report" for monday, february 1 >> we do bid you a good eveninl and e. investors spent much of the day watching and waiting, they anxiously watched the government shdown meetings in washington, and those discussions on trade in yijing, and t waited for new developments on both.

with enings season winding down and theed on hold, the government spending battle and trade talks are the two most important events for the market. after all of the watching and waiting, there's still only fog, and that resulted in a mixed finish for stocks today. the dow fell just 53 ints, never strayed far from unchanged. the nasdaq rose nine. the s&p added just two. so let's begin tonight with .e shutdo lawmakers from both parties met this afternoon, after reportshe overeekend that budget negotiations have stalled. remember, the deadline to fd rts of the government is this friday. the sticking point remains border security. if then president doesn't s a deal into law by the deadline, llparts of the government shut down again. covering the story for us from oupitol hill. good to see elan. where do things stand at this hour? e, reporter: well, the negotiations have going on through the evening, as you mentioned the top two

republicans and the top two democrats on the shutdownco ittee did meet this afternoon to restart some of the discussions. they came out of the meeting, at least democrats did sounding fairly optimistic. democrats have offered to pay more money for physical barriers in exchange for limiting the number of the detention beds use the for immigration enforcement. republicans called that a poison pill and nstarter in negotiations. we will see if they're able to break through the latest logjam. >> what are the federal workers tell you now? they've been through what was once the lodgest shutwn in u.s. history? >> they're certainly not very happy. what we heardoday was workers saying they want lawmakers to reach a deal. they want to make sure the federal government s open however, it has to happen. we saw workers fanning out across capitol hill to take the messag to lawmakers, folks at bureau of prison, folks who work for flight attendant unions all had same message.

they've been through this once before. 24e don't want toe through it again. >> thank you. now to trade preparations an are under way ahead o important meeting later this week between high-level officials between the two worldness largest economies. those meetings are taking place in beijingnd that's where we find eunice yoon tonight. t >> the trak are under way in beijingingut d level officials have arrived and setting the stage for bob light highser and steven minute unusual shin. the talks about last all week. we should have a better deal if a deal is in the cards by march 1st. the big question is, will the chinese make mceor cions on issues important to the u.s., subsidies for technology transfers. they haven't moved much. they don't want the outsideon pressure, csider industrial

poli too important to be bought. if the u.s. squeezes china enough economically, beijing wi come to the table. we got some data which show the consumer isn't so confident here. sales are slowing pace. the sales are a gauge of the chinese consumer, china's equivalent to christmas shopping. and that could put pressure on the negotiators on the chinese side. for "nightly business re eunice in beijing. >> the trade talks i china, shutdown negotiations in washington and inflation data out later in the week. all could potentially be events for the new market in the trading week. senior portfolio adviser to talk with us this week ahead. good to see you, as always. >> good to be >> i listed which you think is going to beottially the most market moving? >> it's got to beau trade, b

it's the biggest issue. it's been a lingering issue for the global economy and the financial markets for most the last year. i have to finger trade as being the biggest potential worry. but all of the others the d shutdos have implications because it pushes up against the debt ceiling. later in the month confronted with brexit. there are a lot ofvent that could move the market one way or the other. >> you would think after the long shutdown and the implications for the economy they would find a way to aitid we are hearing it's possible they sign another continuing resolution and t kick can down the road. >> yeah. the market also has been rallying into this. so, with all of the events it seems as ifethe ma expressing the idea cooler heads will of course these are thorny issues taken one at a time. the debt ceiling and the he shutdown, potential shutdown, is among the thorniest. we'll have to see how it goes.

but it has a big impact on market psychology. >> what abdata? we had t big fed meeting where get the like we won't rate hikes the market had been factoring in before the new year. how impornt is the data. >> the data's very important. the fed gave in on the idea that the econy's overheating and has folded into a much more dovish fed, and the outlook has been r interest rate increases. if we got, for example, ination date that was to run hot, that might put pressure on the fed to cnde backaise rates again. that could be a problem. yes the fed is paying close attention to the data that comes out on inflation or retail sales and consumer confidence in the neck several days. >> we have highlighted on this program in the past the consumer staple sector which was highly regarded over the summer as defensiv move, defensive sector

move. th the rally in january, a lot of people were moving away from the densive sectors. you still like consumer statements. >> yes. we have a bo rom ter we've constructed that measures changes in the economy and ts financial marnd from a yearing awe began to see it decline in the baromet and followed that. so that -- our best indhiators at point are suggesting that we still need to be somewhat cautious. we've not seen a -- consequently the consumer, a more steady part of the economy or utilities, to us, seem attractive. >> thank you. kevin is with washington crossing advisers. exchange-traded funds, believe it or not, have been around since 1993 but only in the past five years their popularity has grown exponentially with more than $3.3 trillion in assets under management. it's no surprise influential

investment managers are attending the annual gatheng of the industry. as bob pisani reports a few key themes are emerging. he's in hollywood, florida, tonight. >> i'm here at the 12th annual inside etnf ence, the biggest etf conference in the world where rough 2500 investment professionals are gathered to talk about the most important trend i2019. chief among them, concerns about a global growth slowdown. it's the number one topic here. the head of the new york stock exchange says that optimism about growth in the u.s. will help outweigh the slowdowns in rope and the nation. >> you mentioned, when he was out there, it was aparntsds there was a little more optimism from some of the u.s. t ceosn the european ceos and there's a lot of issues unfoldin so h they unfold and how quickly they unfold will contribute to what the growth looks like.

>> many downgraded forecast for growth, one key player says a recession is not imminent. we upgred our risk f recession in 2019 because of policy uncertainty from0%o 35%. we see the risk rising as we go into 2020 as we expect it to be 40%, 50% chance of recession in 2020. >> i sath down w the investing legend paul jones looking to make a big push in another theme looking to make traction, socially responsible investing. >> since 2000, 9 of corporate profits have gone to shareholders. ri's the fogt tote negative of what the an public thinks a just company should do. they've got a big disconnect between what the american public thinks and what corrate boardrooms and c-suite are doing. >> the american public strongly supports the principles of socially responsible investing which includes fair pay for workers, reducing pollution and

creating and maintainingjobs. that's all a far cry from the old mantra that the sole purpose of a corporation is to maximize return for shareholders. for "nightly business report," i'm bob pisani in hollywood, florida. >> it is time to take a look at today's upgrades and downgrades. hold. upgrade to buy from the analysts cites improving dend forlectric vehicles. the stock rose more than 2%, ni 312.847 electarts upgraded to buy from neutral, as bank of america merrill the analyst cites positive recession of ea's new game, which we told you about last week. the game is considered aival to for the knight. the stock fell ray fraction to 97.24. i've vis budget upgraded from buy to sell at goldman

sachs. citing bone fits from that come from the ctaving efforts. price target $35 and the stock rose more than 7% to 278.58. invidia downgrade. the semiconductor company is facing severe challenges to growth. price target 175 and that stock fell another 1% to $146.45. coming up -- miking a comeback. stocks kicked out of the dow and rebounding strong. we'll tell which ones and why this tends to happen. vey l today, amazon is

buying a wi-fi start-up called aero to help customers better connect smart home devices. amazon has been push into the smart home business. it says this deal will help f define theure of home. social media company reddit isow valued at $3 billion, following its latest funding round. which raised $300 million. t reddit plans use that investment to i prove the website andncrease digital ad sale. reddit calls it self-the front pang of internet has 330ve milln acsers. you know about the dog of the dow. what about the dowsa dis? these are companies like at&t, general electric, general motors once highly regarded components of the dow jones industrial average but arelonger. and while most of them were down sharply in 2018, they have done very well, so far, in 2019.

and can that last? joining us, chief strategist at bell point asset management. >> thanks r having me. >> give credit torr s. they ran a story like this over the weekend. what's taken out ofdohe what happens on wall street? >> it's a washout. to be fair,hen dow jones takes a stock out of the index, a lot of the bad news is pridin. in ge's case, it's down 80% from the highs of 2000. a lot of settlers are gone. when the f indexds kick it out, you have a bigs. p what happens in the following year, any good news is enough to drive the shares higher. in some cases like ge, it was pretty >> it has been dramatic. what about at&t? >> you know, at&t's probably the least of them all. marginally this year, less than

the market. on that -- i'm not that excited about at&t. it has a great dividend, free made low but historicall a lot of bad acquisitions. one in particular, directv an enormously -- proved to be enormously unprofitable cice for them. i think they'll end -- this wild be loo at a big -- >> general motors had a very different journ from thether two companies we mentioned. they went into bankruptcy with a financial krcrisis and reissued stock. it's been sideway since they came out 2011 but you like the company. i think yous own sha this one. >> true, we own shares of thi company. it's the one like. mary bower gets it. i like the ceo. i like the management team. what she unrstands is right now over 80 million new cars produced annually in the world. we're moving into another world.

we're not going to need that. it's not an efficient use of capital. the average automobile sits unused 23 hours out of every y. we need a different plan. what's starting to happen, we're moving into a new society, an uber-like world. cars of future will be on the road longer and we'll need less of them. they're retrenching, making footprint small somewhere reducing capacity. i think it'srt a very s move on their part. >> there we are we three of the dow's dinosaurs. thanks for joining us. >> thanks for having me. invtors cheered norfolk southe southe new strategy. the railroad operator said e atges are being m company that will result in an increase in productivfiy, ency and sales growth. the ceo says lower costs will help it deliver stronger margins are aiming more revenue growth

at compound annual rate of 5% through 2021. up 3% today to 176.95. restaurant brands better than expect the earnings. the ceo says the company's focus on technology, delivery, kiosks and itsobile app started to pay offarhe pent company of burger king and tim hortons raised its dividend. the shares rose more than 1.5% to 63.72, touched a 52-week high during the session as el. activision blizzard is planning to cut hundreds of jobs. bloomberg says activision, which makesulhe p games call of duty and war craft, is facing slowing sales and increase the competitlan. the offs expected tuesday when the company reports earnings said to be aimed at lifting profit and centralizing operation's activion shares fell more than 7.5% today to close at $40.11. they hit one-year low during the

session. morgan stanley buying on capital. a company that prepares stock plans for start-ups. price tag nearly $1 billion. and the deal gives morgan increased exposure to potentiala gement. shares dropped more than 1.5% today to $40.21. >> drugmaker sanofi and regeneron slashing the price of the drug by 60%. thegi ol price tag of $14,000 a year will be cut down to just over $5800 a year. the outf pocket costs for medicare part-d patients will be between $25 and $150 per month. amgen made aacimilar move in october.

sanofi down a fraction 42.43. ample mgem was off a kick at 185.79. a rise in profit in the fourth quarter. the online et indication company says subscriber count grew by more than 30%. as a result, it's increasing revenue guidance for this year. that sent the stock higher in initial after-hours trading this evening. finished the regular session up 1% to>>34.80. used to be older americans would sell homes and downsize e kids moved out. today an increasing number are aoosing in place having an impact on home buyers of all ages. >> reporter: 64-year-old lewis is busy building a elevatoro i his small maryland home. >> i took the middle line between the up and lower level and opened the shaft which i put a lift in ho these can be

aging in place house. >> reporter: he plans to grow d in h current neighborhood as look as he can and he is not alone. >> people love their s.ho it's their chief investment. they love the control they get in their own house the. >> reporter: estimat on1.6 million homes in a housing mket in critical need of more homes for sales. that's the same n number of singsle family and multifamily housing units built each year. stalemate. a you can't get enough housing for the couples that want to put their kids in good public school systems. >> jane fairweather sees the problem every not enough lifting for the high demand of moveam upy buyers. it's not just home owne, others have no choice. >> for some people, there's nothing affordable to move to, so they've decide we have to

stay here. >> reporter: given how pricey the market is, in some cases the math works in favor of staying put. >> if they have to stand another million dollars in order to get e quarter of the safe, the house looksab reason. and the maintenance looks reasonable. >> reporter: the trend is likely to grow especially as more homes are renovated to make it possible. he lowered a kitchen counter so he could sit and cook and moved switches to make it possible. you planned out for everything? >> i hope i planned out for quite a bit. >> to read more about the aging in place trend, you can head to our website, nbr.com. coming up, should the rich pay more in tacks? it's a hot topic in washington and it's

>> as we all know, it's tax filing season and no one wants an unpleasant surprise but that's what some earlyha filers been getting. sharon epperson is explaining what is happening a maybe how to avoid the same scenario next year. whatroe heard the irs the average refund is smaller than last year. d> it is smaller. we've tal about the tax law changes and impact that could have on your taxes. another big change was a change to withholding tables. so people we not having as much tax withheld. it's not that they're paying more tax, but they may be and play not have had enough withheld and that's why they're seeing impact on therefund they expected or maybe even owe. the difference ist. signific look at what -- >> whoa, that is! >> the average refu end of

february 1stst, the first week to turn into theax return, looking at 18,000, a lit -- sorry, 1800, a little bit more. either number showing the first week in february last year. but the average refund overail last year over 2800. it's a big difference in what people are getting back. > which taxpayers, make segment, is most likely abbe affected? the ones underwithheld and did not pay enough throughout the year and have the withholdiob m. those are people who itemize and i not have dependents, people who live a high tax state. and people who have unreimbursed business expenses because so many of thosetezed or lited in terms of s are no being deducted and claimed. that's a big change for >> what do you do to make sure this doesn't happen next year?

>> now what? this is what you need to do. what you need do, withholding calculator and irs.gov, it's helpful. have your pay stub, tax return, you have the accurate information to fill in and see what it says in terms of what your withholding should be.oe if it's't say that on the w4, go to the employer, change that w4 form, make sure you're in a better place for 2019 than you were for 2018. the's nothing you can do now to dial it back. if you didn't have the right withholding tax taken out but you can make the change for 2019. >> it's levearly in the year. >> it's ely in the ar, exactly. >> sharon epperson, thank you. not only are taxes on everybody's minds but so are tax rates especially lawmakers are talking about hiking them on the

wealthy. >> reporter: newpo pls for taxing the wealthy are called treme,l, socialist and even by some democrats. the plan's be have some precedent in american history. representative discussing a top income rate of the high as 70% was almost twice the current top tax rate. currents say her plan and similars from warren and sanders threaten economic growt and investment. tax rates matter a lot. when you get a lower rate, economic se the ta growth ensues and benefits go tr the poor, minies and disenfranchised. but america hn s higher rates before. the to tax rate was between% 70 and 91%. bern sanders' estate tax would lower the exemption from 11.4 million to 3.5 million r

would mark aurn to 2009 vels. but some say taxes on estates edand wealth are toe equality. the rates are historic lig low. lower than for the 40 years after the second world war. and as a member of the 1%, .1%, i can tell you, i can afford higher taxes and it would mak my life better. which may help explain. >> reporter: majorityf mericans support tax on wealthy. supporting increasing top tax rate to 70%. a fox news poll found a mority of republicans even backed higher tacks on those making more than 10 million. what none ofcathe. idates mention the the top 1% pay the highest share of income taxes in history, close to 40%. for "nightly business report," robert fran before we go, one final look at day on wall street.

aa wait see day with markets very much focusedn the trade talks going on in beijing and potential shdown talks in washington beginning right now, as a matter of fact. the dow fl 53 points. the nasdaq up nine. and the s&p up almost two points today. nd on that note, that will do it for "nightly business report." i'm sue hethra. ks for joining us. >> i'm bill griffeth. have a great evening. see you tomo.

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