this ihtly business re with bill griffeth and sue herera. >> fee of missing out, the stock market is having the best start of the year in decades but i dot swea if you missed it. hands on health care. your local drutore may soon get a makeover making it less like a retailer and more like a wellness center. deep in debt, the u.s. government owes a record amount of money as do american households. those stories and more tonight on "nightly businesseport" for dnesday, february 13th. and we do bid you a good evening.e. welc yesterday's rally in the stock market continued today as wall street still monitors the progress of the spending bill in washington ntdesigned to pre another government shutdown and those trade talks taking place

in beijing. the sense is that if a deal is n reached bethe u.s. and china without any more tariff increases, that would reduce about growth and perhaps allow the rallies to continue whichd today. the dow gained about 117 points back to 25,543. the nasdaqe was up fnd the s&p gained eight. and we'll have more on the ra u.s./china talks in a moment. but we begin tonight with a closer look at the sharp market rally that we havear seen so in 2019. at how far the major indexes have come in such a short perio of time. just since the lows of december sdth, the dow and the s&p are up nearly 14%, the has gained >> and thats leading some to ?ear that they hav jeremy siegel, finance professor at the university of pennsylv wharton's school of business joins us to talk about that. good to be here, sue. >> i guess that's the question.

have they missed yt? what ar expectations as we go further into this year? >> w christmas eve se on december 24th. i think we all wished my god, we could have gotten the great bargains. i think we have seen -- as you said 15, 16%. i mean, we have seen a big u is se i behinow. odo think we'll have an upward tilt to the end the year, but it's not going to be a runaway. i don't,hink people say my god, i have to get in. otherwise i'll miss a big rally. >> you know, i think it was john templeton who said sell the absolute top of a arket, you'll never buy the absolute bottom o market. you might as well say in the market and eliminates thisi fea of m out. what do you think about that? >> oh, i mean, i have been advocating that for years. i mean, if we let our emotions take hold of ul

h g to buy at the top wh co. plan long term. by the way, i think long term values are thereis -- certainly as alunded as it was last december but it isn't over overvalued. certainly don't shy away from the market as a result of this rall but i don't think you have to go head over tail end and say oh, my god, it's going to be another 10, 15, 20%. i think it has struggled. they have this year's earnings that are certainly not anything like year's. and we still have of course trade and, you know, political considerations coming in front of us. >> and tint hea risk could create a lot of volatility. i mean, we have already seen that happen, but we're coming up once againgainst another deadline and the trade talks are inching closer to an agreemt. but we c yeah. i think -- i think the market is 90% certain that there's goi to be an agreement. and i think they're righe we'll

see a pop. but it won't annormous pop. i expect a five or six point rally in a few days and then worries into the market. in other words, it woulde very shocked if we -- if trump imposed 25% tariff and we head into the trade war i'm afraid we'll so a bear market. but we will see a pop on a settlement. of course we have to expect that trump had talked about maybe we'll delay the march 1st deadline so we have to be upward f >> on that note, jeremy siegel, thank you so much. jeremy is with the wharton scho the trade talks and today there were encouraging signals from both sides about theon negotia back we go to beijing to >> the south china morning posts the among con newspaper is

quoting sources as saying that president xi jinping plansme to et with steve mnuchin and lighthizer on friday as a goodwill gestu for the trade talks. mnuchin and lighthizer are here to meet on thursday and on friday and tod mnuchin told reporters that he hopes that the wou productive. "the walstreet jou" is reporting that the negotiators are focused on drafting a framework of an agreement that can be signed by presidents trump and xi at a possible summit and it' not cle how much they can narrow their differences. the market cheered the rallies on extending the deadline and the chinese would welcome an extension. st deadline was said to be a hard deadline and then the chinese could keep on talking and some american busing

i'm eunice eu in beijing. and now to brexit. fordrieportedly told thesh if a deal is notth reached at would provide britain with a smooth exit from the european union. with the deadline to reach a deal fast approaches we look at where things stand. >> so theresa may, time and parliament repeatedly proved to be part of the samearoxical equation. so the less time she has, the more challengesarliament provides. with an exponentially increasing threat fro allies and enemies alike. >> the htdling of bre has been costly, symbolic andbe delitely evasive. >> and then it's slightly six weeks before britain hits a two-year deadline with the departure from europe and she claims she wants to use th tact.

it was a month ago that may suffer commons >>defeat. he no's have it. >> but it coursed through the fiscal veins and inus con to function as a form of life support. after two weeks of talks here in stminster, in brussels, in belfast and in dublin the prime minister has acknowledged she needs more time to find a negotiating break through. that apparent lack of progress d accusations rompte from her political opponents. >> this ishe height of arrogance from a government set on running the clock down. just 44 days from a no deal scario, the prime ministe is hamstrung by her own party. >> and her approach at thees europeans ave some upp determined view from london. theresa may has

asked for some more time to get a deal with brussels. >> so far though, brussels refuses to budge f the position it took up many, many months ago. tomorrow will bring yet another brexit debate and voting and in a sign of the mathematical nundrum may faces, some of her conservatives are again threatening to rebel against london. back here, cisco reported cyber secity pected resul businesses. the company said it earned 73 cents a share. that was one cent better than estimates and revenue rose to more than12 billion. cisco also increased the dividend, sending the stock higher in initial after-hours trading. this earnings season is e h good. mostly. minic chu explains. >> it is almost over.

nearly three quarters of all s&p 500 companies have reported their rults so far and so far it's been a generally good story. according to datarom refinitiv, 71% of companies have beaten average analyst estimates for earnings and 62% he beaten the average revenue estimate for analysts as well. that has some experts feeling good about the health ofco orate america. >> we are predicting that growth to be at leas 2.5% which is better than most. i think people are surprised. >> if every company left reports earnings in line with analyst expectations the s&p 500 will see nearly 17% earnings growth and around 6% revenue growth that's the good news. the bad news is last quarter was so good it will be tough to top this year. i think we'll have negative year over year earning growth. part is unfair because we had the steroid induced year last

year which was crazy because of the tax reform. >> we are seeing some signing of increasingly pessimism. the wall s analysts were predicting that the earnings growth in 2019 would be solidly positive and fast forward to today and thererecting a slight earnings decline. it could make for a more wh volatile marke the next for "nightly business report," i'm dominic chu. time to take a look at the upgrades and d shreport was upgraded with the analyst citing an improved outlookoropper prices and it's now $14 and that stock rose nearly 7% to $12.29. lattice semiconductor was upgraded from positive to neutral at susquehanna. they cited the better tn pected quarterly guidance which it issued last night and ran counter to the weaker environment we have been seeing for semiconductor stocks.ge price t for lattice isan11

that rose 29% today. still ahead, hitting the gas. >> why is bmw gearing up for a big2019? i'm bill lebeau in california. johnson & johnson is buying or us health, and that pushes into the robotics market. they have a robot used by surgeons remotely and the focus is on lung cancer and respirator procedures.

the shares of j&j rose today. cvs is starting to use the merger with aetna to chang the definitihe of the drugstore and it calls healthhubs offering more servicesnd health focused products. bertha coombs takes us to >> more than half of the new cvs healthhub concept store is devoted to health care. with more space for many clinic services and walkers, as well as a wellness studio. where customers like jacqueline hanes comes in for yoga classes and they get advice. p >> they havegrhe. i think that dietitian wouldou meet withor free and so she's teaching me about my blood pressure. because i have hyper tension. >> along with the dietitianal t hub was a respiratory

therapist and treating sleep apnea. >> apnea is one of the respiratory therapist u and the nurses collaborating we can screen and pro masks and machines and teach people how to use them. so closing that loo around a condition that a lot of americans have. >> cvs isn't the only one experimenting with o han health care. cigna, united health and humana reach out overon the to members who have hyperten manage their care. or send in help at home after a patient has been eddischa from the hospital. sometimes in njunction with walgreens on some programs, but cvs is trying to bring all of the here at the new healthhub, cvs is reaching out to the insured aetna members with

hyper tension and heart disease to come into the store for health coaching services. >> w pleasantly urprised at how many of our pharmacy customers when offered the dietitian services that have said yes. >> more than half like jacqueline have act on new health changes. >> it's one stop shopping for my healthe official consultation are free. executives admit's early days and they're trying to figure out just how to get the mix right. for "nightly business report," i'm bertha coombs in spring, texas. and to read more about cvs' healthhubs and what others are doing, you can head to our website. read about it at nbr.com. hilton is raising prices and that's where weni begin t's market focus. the hotel operator is charging more forms r and that helped the company report better than expected quarterly pro. hilton cited healthy demand for

travel thoh it pointed to the decelerati per room this year oncerns over global $79.37. dish network missed the expectations but the revenuesme in above forecast. the operator lost more than 300,000 subscribers thanks in part to carriage disputes with hbo and univision. it fell below 10 million for the first time in 15 years and shares plunged more than 7.5% to $28.86. teva pharmaceuticals posted weaker than expected fourth quarter earnings anded c competition from generic drugs for its blockbusterle multiple sis drug. teva shares plummeted over 7.5% to $17.63. t-mobile and sprint executives were on capitol hill today answering questions from

lawmakers about their proposed $26 billion merger. th o ceof t-mobile defende the get together saying it will not hurt concerns or jobs. >> the outcome of this mger t i in supply in the form of eight times the capacity that our network will make available. it will bring in 87% decline in the price per gig of data and jobs will go up. this is dramatically different. >> and shares of both companies fell a fraction in today's trading. and late today, aig reported a quarterly loss which was below the profit that analyst had been looking for. the company cited catastrophe losses along with volatility in both the enity and the credit market. aig also announced a $billion stock buy back program. sharesere initially lower in after hours trading, but finished u a fraction at $44.18. bmw plans to ramp up

production at the u.s. plant to keep up with the growing appetite for luxury suvs. in fact, they expecto build a near record number of vehles including the newest model, the x-7. phil lebeau reports tonigh >> it's bigger moreluxurious, it's better, this is t h golden age h end suvs. bmw's all new x-7 hit show rooms next month as the strong economy adds touvhe upscales. >> if you look at the suv market in total, suv market is growing andwi g and growing on the premium side. it's now 50, nearly 60% now. >> luxury suv sales have picked up speed, tnks in part to the mercedes gls. newer and refreshed entries like the lincoln navigatorbe wil added competition for bmw's biggest suv. bandwidth really thatev

arge seater there's really about ten vehicles that .his bmw competes wi obviously this is where a lot of profit margins are made and i think that's why they're looking to enter this t.segmen >> the x-7 will be built at the bmw plant in south car wh production is expected to climb this year to near record levels. for bmw and other european automakers buiing popular suvs here in the u.sis critical to their success. especially as the white housela considers spping tariffs or higher costs on luxury sedans imported from plants ineeurope. a mhat would hurt sales. >> am i concerned about it, yes, i am. because it will have an impact. tar go up it's not good for the consumer or our dealer network or the economy in >>tot. arnhardt believes that america's appetite for new vehicles remains strong.we ome news for the x-7 rolling in to show rooms next month and

entering a crowded luxury suv market where buyers are willing pay more than $50,000. phil lebeau, "nightly business report," thermal, california. and those higher prices means that americans are taking out bigger car loans. speaking of that, theeb word was in the news, first the treasury department sa our nation's federal debt level surpassed $22 trillion for t the firste and then the federal reserve bank of new york reported that more than 7n mill americans are behind on their car payments by at least 90 days. finally, a new s vey from bank rate.com found that roughly a third of americans have o in savings. joining us now to talk about the implications of all of this for the economy, joe bruce willis is back with us. he's chief economist from rsm. welcome back. >> thank you. >> do any of the numbers make your palms wesweat? >> , the fact that we have got people falling more than 90

days behind on their loans for auto loa does cause some concern. i'm not too worried about the natial debt. ght now that's not a problem. nor should it be our concn. >> but longer term is it going to be an issue for the u.s. espe tally given interest rate environment that we find ourselves in? >> all right, so if we continue in this low interest rate environment it's not going to be concern. we have learned a lot about debt and deficit dynamics over the past 30 years primarily to watching japan. we don't want to go ere, but should we see a resetting of interest rates back to what won mightder their natural level, then it would be a bank rate talked about today at we're a third of americans have higher credit card debt than savings? it's happened in the past. this i debt than we can manage. are we there yet do you thin >> there'swo things, one

that's classic late cycl and tw different ecomies and one is along the coast aligned with tech, digital. scientific, liteenry. life ss and the other is more traditional. that's the traditional economy, that's where the problem is. that's where you see the middle that stokes a lotf social and policy tensions around the country. >> if i can turn you t back to car loan issue because it's essential for people to have transportion to work. so if indeed they're falling that far behind on their c loans, what are the implications through conomy and a traditional bank lending. >> all right, so we're not going to have any financial systemic problems because of delinquencies. and these are made by nonbank lenders and two, other 25% of business cycle have been sub prime variety. so this isn't something that's largely going to be unexpected but when you see people fall

behi like that, that's a sign that your economy is slowing. we are slowing backro tod 1.8% which is a long term trend. that's where we'll be here in. this ye >> all right. we're not at a crisis always good to see you and thanks for joining us tonight. >> thank you. and coming up, farmers plow ahead despite facing >> oh, sure, the farm show, it's all fun and games. but we're about a year into the trade and tariff war and the question really is for farmers and equipmenter m -- what's the real impact? do they have a tough road to hoe? we'll have that coming up.

here's what we'reatching morrow. retail sales for december will finally be releasedt' a month late because of the partial government shutdown. the producer price index will give the investors a look at inflation pressures in the economy rightndow coca-cola releases the quarterly results that's what we're wonching for thursday. google plans to expand intoa ne ohio, texas and nebraska and it will spend $13 billion this year to do so. in a blog post the ceo said the new locations will be both data centers and offices. this is the first timeav google will infrastructure locations in those states. virginia and expanding its new york camp,. we it's been quite a year for the agriculture industry as we have been reporting. farmers across the country find

themselves cght in the middle of the u.s./china trade war. something that both -- that isi both posive and negative. and as jane wells reports now it was the big topic of conversation at this year's world nrn cali. >> it is the large and it's a good place to take farming's financial temperature nely a year into the trade and tariff wars. >> the processors won't take any more milk and the beef is not worth as much as it's used to be. it's tough. >> yep, large parts of the farm economy have taken a hit but it's not all bad. mean more an exports at home to feed american livestock. >> it's helped us a bit on thep side. >> exports of fresh oranges have plummeted an estimated 80% because of chinese tariffs s cheaper prices for pular lunar americans.

30, 40% in recent wee versus where they were at the same time last year. >> so what does this mean for makers?t these machines cost more due to tariffs on imported steel. yet, u.s. tractor sales were up over 5% in january is. >> the decision they have to make is after the buying boom his is the time they woul start to replace equipment. will they? well, they'r >> honestly, the age of the c.s. andadian vehicle parts, the age of the machinery on the farms, it's a a point where the farmer is needing to replace. >> even wso, deere downgraded to neutral by bank of america over concern inart about trade. yet, once again, most farmers appear to be sticking by the i think in the end when de with things play out it will be better for everybody. it had to be done, tngs

couldn't go on the way they were. jane wells.>l here's a final look at the numbers. e nasdaq was up five and t s&p 500 gained eight. and that'll do it for "nightly business report" tonight. i'm sue herera. thanks foroining us. >> i'm bill griffeth. have a

♪ announcer: this is "bbc world ws, america." >> funding of this presentation is made possible by -- the freeman foundation. and kovler foundation, pursuing solutions foamerica's neglected needs. >> wow. that is unbelievable. ♪