>> announcer: this is "nightly business report" with bill griffeth and sue her 8 great. stocks power higher leaving the dow posting its eight-week gain since 2009. highev trade talks conclude in beijing but will pick up next week in washington. there's a lot at stake for american business. turn-around stories, our market monitor has a list stocks that are switching strategies and could climb as much as 20% in a year. those stories and much more tonight on "nightly business report" for this friday, br and we do bid you a good evening, everybody, and welcome. it was a tgif kind of day, wall street where stocks soared on continued hopes

for a u.s./china trade deal and on no government shutdown. e dow and the nasdaq have now turned in eight straight weeks of gains. in fact today's rally helped the tech-centric nasdaqea exit market territory, meaning it is no longer 20% below its most recent high. actually the enthusiasm for stocks was pretty bro based today. the energy sector was higher on a rise in oil prices. c bank sharembed as well, just to name two strong sectors. by the close, the dow had gained 443 points to 25,883 now. the nasdaq added 45, the s&p was up 29. and small caps alsoaw big gains. that group represented by the russell 2000 is now up 10% from its most recent low. d for the week, all of the major averages had very good gains. dominic chu witnessed all today at the new oa>> stocksd higher fueled by high hopes for u.s./china trade talks that are now

scheduled to take place again in washington, d.c., next week. both the dow and the nasdaq are riding impressive eight-week winning streaks for the first time since november of 2017. also worthha notingthe dow is now less than 5% away from record highs that i hit back on october 3rd. traders continue to talk about thiss a headline-driven market so the optimism is cautious. trame sensitive were all firmly in the green with boeing hitting another all-time high during the trading session. bank stocks alsoo getting a from news that warren buffer it's berkshire hathaway added tk in big names like jpmorgan and bank of america during the market downturn last one stock sitting out the rally, notably apple. redlow dow component in th for much of the day. this comes after the latest round of filings show berkshire hathaway trimmed its holdings by 1% or 3 million shares. the stock market will be closed on monday for president's day and reopen for regular trading on tuesday. for "nightly business report,"

i'm dominic chu at the stock exchange. so will we see a continuation of this rely when arket does reopen next week? joining us to talk about that is joe duran. good to see you again, joe, welcome back. >> hi, sue, how are you? >> we're good. the question is how good is this you are still bullish? >> yeah. it's hard to not feel lik it's doing quite well. i think last year at the end of the year we had an immense overreaction to light trading lume. the sellers overwhelming the market, especially that week before the chrtmas holidays. and we've now recovered all of that december weakness and the small cap and across the board really. we're also seeing much stronger international mark, which is encouraging as well, so a lfe to good about. the fed is clearly now a friend again and not a foe and it looks like evenf we don't get a resolution with china, there'sh clearly eno momentum to

extend the expansion of tariffs that would have kicked inn a week. so there's very little to be concerned about. global gwth is still a bit of a concern but it looks pretty good to us. >> but global growth i o a bit concern. just in the last week or so we've been hearing anecdotal stories from various comnies who ar affected by the global growth story. i think of coca-cola a pepsi which both said profits will be very hard to come by this year. hasbro and mattel guiding lower for this year. appl finding a slowdown, especially in china. i mean those are just five t companies, by're very important in the consumer sector, and they're talkingow wn right now. >> yeah, they have to, of course, because it is slowing down. the interest rates reflect that. you see interest rates remarkably lowiven the recovery we've had and that's really becau germany has basically gone through a recession. i think ty're 0. away from calling it a recession. china definitely slowed down. w

andt you see is the small caps -- >> why won't that have an impact on t s u.s.ck market then, do you think? >> well, because what you're seeing is these low interest rates eventuallyreate more stimulus around the world. and the u.s. is buttressing the slowdown in the rest of the world. i think what you're seeing theef stock marketct is that if china tariffs get resolved, if the rest of the wor can start turning the corner and the u.s. leads it, smallre caps telling you the u.s. is in great shape and not a lot to be concerned ou again, while it doesn't mean that it's not going to be bumpy, there's a lot to be relativelys opti about, especially if the emerging markets continue to do well. all it takes really is for the dollar to be stable. it was running up last year and that's stabilized a little as well. >> joe, thank you. joe duran. now to the trade talks that have been the focus of investors all week. the president today said that he wants a deal that's good for both the u.s. and china, and he

added that he still plans to meet with china's president xi at some he made those comments after two days of high-level negotiations in beijing that wrapped up. that's where we find eunice yoon again tonight. >> treasury secretary stevenuc n and trade representative rort lighthizer are on their way back to the united states aftes their two d of talks here in beijing. the two capped off their visit with a meeting with president xi jinping. according to state media, president xi said the trade negotiations wouldontinue in washington next week and the two sides had made important step-by-step progress. secretary mnuchin had also tweeted out the conversations here were productive. the twoe sides w reportedly focusing on hammering out a memorandum of understanding that could act as a framework for a meeting between presidents trump and xi as early as next month. but before anyone gets too excited, the iack chatter that the twoides are still at a stalemate. the chinese are more focused on narrowing the trade gap with

biggn purchases of ameri goods, such as chips, but there's been little progress in some of the thornier issues such as state subsidies. presiden said china is willing to adopt a cooperative approacho resolve and promote an agreement acceptable to both sides. however, cooperation requires certain principles. that line is being intereted th china has its own bottom line. for "nightly business rert," i'm eunice yoon in beijing. the cost of imported goods into the u.s. fell in january for the third strait month. the index slid after even steeper slides in december and wevember. oil prices played a role as did the price of some consumer and industrial goods. economists say that is more evidence ofwaning inflation pressures within the economy. industrial production f fl in janua the first time in eight months. according to the latest report from the federal reserve, a large part of that decline was

the result of a decline in production of autos and auto parts. economists say that that dip suggests factory activity in the cool.s starting to a partial government shutdown has been averted. sthe president t afternoon signed the spending bill into law that congress passed sterday. but the president also declared a national emergency at the herder, as a way to secure the funding that wants for a wall. aim on jav is at the white the whitea ouse says asult of today's action there's going to be abo $8 billion in spending on a border wall. starting with yesterday's spending bill that was passed in the house and senate, that's .3 billion from congressional appropriations. fe white house will tap into $600 millionm treasury's drug forfeiture fund. an additional $2.5 billion from the department of defense's drug interdiction program. $3.6 billions the chunk o money that the president has

access to as a result of thisti al emergency declaration. that comes from the department of defense's military construction tdget. president would like to get this spending going as soon as possible given that he says there is an emergency at the southernborder, but he also acknowledges there could be legal action ahead. >> i'll sighe final papers as soon as i get into the ovalof ce, and we will have a national emergency and we will then beued and they will sue us in the ninth circuit, even s though iuldn't be there, and we will possibly get a bad ruling an tn we'll get another bad ruling and then we'll end up in the supreme court and hopefully we'll get a fair shake and we'll win in the supreme court. >> the president there predictingong legal battle ahead. democrats seizing on one of the comments tntt the presi made in the rose garden in which they say he suggested that this isn't an emergency at all. >> i could do the wall over a longer period of time. i di't need to do this. but i'd rather do it much

faster. and i don't have to do it for the election, i've already l do of wall for the election. 2020. and the onl reason we're up here talking about this is becaus electionan because they to try and win an election which it looks like they're notoing to be able to do. >> reporter: democrats arguingy that saying "i didn't need to do this" the president is in essence admitting that there's not really an emergency at the southern border. the president making the case, though, this is absolutely ar nece the one thing that both sides seem to agree on is that there will be lal action going forward. democrats in a joint statementhi today called an unlawful power grab by a disappointed president. for "nightly business report," i'm eamon javers at the white house. time t a take a loo some of today's upgrades and downgrades. in fact they're all .downgrad dow component coke was downgraded from neutral to buy at citi. the analyst cited the wea guidance and also the currency

headwinds they prce. e target $50 a share. the stock fell a fraction to $45.24. general dynamics was cut to neutral fromfooutp at credit suisse. the analyst cited increasing competitive threats ince aeros and i.t., which hurts the outlook for growth for that company. the price target $184. the stock ros more than 1.5% to $175.24. >> aig was cut to hold from buy at argus search. the analyst cited aig's higher than normalhe catastr losses. the firm also reports to consistent underperformance lately. shares rose more than 5% today to $42.32. still ahead, regulators are ramping up pressure on some of the nation's biggest tec

credit rating agency moody's said today that amazon's decision not touild a second headquarters in new york city is a negative for the city. moody's says that while new york's economic fundamentals do remain strong, other firms seeking government incentives may no longer now considebi the apple as a good place to locate their business. regulators are reportedly close to hitting w facebookh a record fine over the way it handles user data. this c as silicon valley more generally faces increased scrutiny from lawmakers over privacy violations. julia boorstin takes a closer look. >> tde federal t commission and facebook are negotiating what would be the agency's t- largeser fine in the billions of dollars. this acoring to "the washington

post." in march the c began probing facebook after analytica scandal which revealed users' data was inappropriately facebook's 2011 settlement with charges that it deceived consumers. it could draw fines up to user. per >> this company has well over 40 billion in cash, so to pay a $3, $4, $5 billion fine i don't ink would -- i don't think would be an iue for the company fundamentally or for the stock frankly. >> but this comes as the government accountability office recommends the passage of a federal internet privacy law and issued a report that found over the last ten years, most of the companiesons against did not include fines. facebook issuing atatement saying it's cooperating with officials in the u.s., uk and beyond, but this comes amid growing calls to regulate the

tech giants. >> we need to put some digital rules of the road into law then it compeople's privacy. >> senator amy klobuchar is r makingulating data privacy a centerpiece of her presidential run. e's among the 15 democratic senators who introduced the data privacy act in november. meanwhile inca fornia, governor gavin newsom this week introducing an unheard of proposal that could have big companies's for tech bottom lines. >> so i've asked my team to develop aroposal for a new data dividend for californians because we recognize your data has value and it belongs to you. >> with so much potential regulation, an analyst says facebook's investment to protect consumers and prepare for regulation is weighing on returns. >> all across the board this business i less profitable than it was two years ago. i don't think it will regain those profit levels that it had

in the past. >> calls to protect consumerac privacy s across the aisle. marco rubio introducing the american data dissemination bill last month. some analysts warn governmentgu tion and possible censorship of site content could become moreurdensome in coming years. for "nightly business report," i'm julia boorstin in los angeles. well, it wasn't exactly a fun friday for shares of mattel and that's where we begin tonight's mark focus. the toy maker says its sales this year are going to be flat and gross sales for the first quarter will decline. just last week p mattelted a surprise fourth quarter profit on strong demand for its barbie dolls and the stock took off. that strength isng now b overshadowed by weakness in its thomas the train and america girl franchises. mattel's shares today plunged 18% to $13.82. meanwhile, pepsi says that its future growth is goi come at a cost. the company said today it expects profits to decline as it

increases investment in some of its key businesses. pepsi reported earnings that were in line with expectations and the chief financial officer says the company is focused on what consumers want. >> we're going to go where the consumer wants to go because we know there's natural tailwinds and consumption of the types of products that we create and we brand ande distribute. we have all these great canobilities. we we're on trend with consumers. if consumers are moving to spo kling, we're going that, whether it's in a can like bubbly or whether it's make at home like our sodastream business. we do see a ton of opportunity beverages.n >> shares rose about 3% today to $115.91. deere's earnings missed estimates but revenue beat forecasts as the world's largest tracurr maker was by slowing trade with china and by higher raw materials costs. deere reaffirmed its full-year guidance as itqu seesment sales growing and optimism that a trade deal with china can ber hed.

shares fell more than 2% today to $158.99. household products maker newell brands was hit with higher costs following toys "r" us going the company beat earnings estimates but missed on revenue. they also issued a downbeatoo ou for the year and that sent shares lower, down 21% to $17.16. electronic arts is reportedly in talks with the chinese videopaame c tencent to bring the new hit game apex legends to china. they distribute two similar games in china,ncluding fortnite. apex legends reached 25 million s earlier this week. ea shares rose 1.5% to $106.84. the cannabis company canopy growth said revenue surged nearly 0% in its first quarter since canada legalized recreational marijuana in

october. xpo logistics reported disappointing earnings last night but it was what the ceo said on the analyst conference call this morning that investors focused on. the company said its biggest customer, which is believed to be amazon, c back on business with xpo by two-thirds. xpo says the reduction could lead to a decline in 2019 revenue. as we've reported, amazon is building out its own network of distribution and delivery centers. xpo shares were off nearl 13% to $51.97. fedex and eu.p.s. w also lower. now to our weekly marke monitor. he likes companies that he says are transforming their businesses into faster growing entities and he says names that he likes can grow between 15% and 20% over the next 12 months. this is his first time with us as a market monitor. david is portfolio manager. welcome back. >> thank you. thank you for having me.

>> theseturn-arounds, let's talk first about baxter. they have had a rough couple of years in the stock market. a new ceo, but you think he can turn things around, yes? >> yeah, yeah. so he was, if you remember back a few years ago he was the ceo of vian. now he's coming to baxter and changing the management team, buansforming the ness, innovating. and so we think baxter is the leading company in home dialysis and many products for hospitals so we think it can go 15%, 20% from here. >> next on the list is oracle which made some news late this afternoon by upping its share repurchase prograik you it because you think it's kind of been left behind,r but tre basically some big initiatives that will allow it to continue to grow. >> right, that's correct. they have been the underdog company for many years and now they're innovating in the cloud.

they have an autonomous database which is secure and they have an opportunity to transition their clients to the cloud, similar to the microsoft story. now in the application business, this is back office, solions for cloud,ot they're doing of things on finance, hr, and so when you take those thing together, we think they can grow and the stock can do very well in the next 1 months. >> and your third pick this week, people may not think of it as a turn-around but it's exxonmobil. i was surprised that it's been five years since this company hit an all-ti high. it's been trending lower since that time. obviously ceo darren woods has his hands full. what do you think he has to do to tur things around? >> he's turning around the upstream business. nowhey're doing lots of investments in many areas around the world. so we think they're d of innovation, they're lowering the cost of production, so we like it here. they have great opportunities. while you wait, you get a 4.5% dividend yield. so we think they have a very

good chance too higher from here. >> we'll see how they do from here. david, thanks for joinin. have a good weekend. >> thank you.om g up, riding the wave, but the boating industry faces some choppy wa here's a look at what we're watching. next week is a short week because of the holiday. tuesdayalmart reports earnings. wedn iday we'll get a peeko the fed's thinking with the release of the minutes of its

most recent meeting. and then on friday a number of fed officials will be speaking about the economy. w that's whare watching next week. eddie telampert will down as chairman of sears. the decision follows lampertsnd edge fund winning control of the retailer in a bankruptcy court. but lampert will remain chairfon of the tra hold co which now controls all of the assets of sears holdings. lampert says that his resignation from ears is not the result of any disagreement with the compa board or its erations. the commercial shipping and trucking industries give us a good sensef how theconomy is doing, and recreational boat sales do too. they are considered a leading economic indicator because they are purchased with discretionary income, which is verve sensi economically. the health of the economy is usually the focus of the major international boat show in miami, but this year, as frank lland reports, it took on a different tone wit a focus on trade and tariffs.

on display at the progressive ts miami international boat show. >> this boat is an incredibly rsatile boat. >> reporter: it's the biggest in the u.s. and a bigger deal this year. many boat makers hope domestic shows like ts one in miami where they generally make about 50% of their annual revenue will make up for the international sales they are not making due to retaliatory tariffs. >> it has had an effect on my business. 30% plus of our business was overseas shipments to canada, mexico, eu, china. and sin theariffs were enacted, it's essentially dropped to nothing. >> what room a we in right now? >> reporter: rob is the president of marquee yachts. with a strong showing in miami and a strong economy,e lieves domestic sales could exceed the 4% growth forecasted this year, but says that still will not be enough. >> we've been able to subsidize some of it with the american growth.

but the american economy is not growing fast enough to suck all of that loss. and so what will happen entually over time, we'll be forced to layoff some of our workforce. >> reporter: about three-quarters of u.s. boat exports are sold to the eu, canada, mexico and china. the retaliatory tariffs in response to the 232 taefrs on steel and aluminum enacted by the trump administration last week. brunswick boats, the largestpu icly traded boat maker and owner of the america and boston whaler brands expect the tariffs to reduce their 2019pretax earnings by as much as $22 million. that's about 6% of this same number last year. >> if the retaliatory tariffs long as the domestic market remains strong and is growing, we'll weather it. f we hit a bump in the road, it will mean layoffs. >> reporter: looking for new sources of growth, many boat makers are trying to attract millenials.

right now thewn average boat is 58 years old. >> millenials loving this kind of boat. >> reporter: joan maxwell,prhe esident ofsregulator, say reversing that trending is her top priority. >> we can touch anything we want to do here and run the boat roz it . >> repor peopl can fish, water skir just cruise. >> lean back, enjoy yourself. >>eporter: it's about % less expensive than their average model. >> this will bring us more buyers, so it's a longer term view. the short-term view is sell everything you've got at the highest margins that you can, but this is a longer term view. >> reporter: for "nieptly businesst," i'm frank holland in miami. before we go, here's a look at the final numbers from wall street. the dow gaine443 points. the nasdaq added f45. the s&p 500 was up 29. for the week all the major averages posted solid gains. the dow and the nasdaq wereup,

as we said, for eight straight weeks. >> but we're at a point now where t brokerage houses are starting to disagree on the future of the stock market. goldman sacks is tentative in seeing future growth for the stock market, at least in the short term, while jpmorganth se rally continuing into the springtime. so we'll see how things go. we have all the retail earnings coming up next week. >> and that's what makes the market, right? that will do it for us ttlight on "nibusine" i'm sue herera. thanks for joining us. >> i'm bill griffeth. have a great weekend. we'll see you again on monday. it's presidents day. we have a special edition of "nightly business report" .

>> this is "bbc world news america." funding of this presentation is made possible by the freeman foundation, and kovler foundation, pursuing solutionfor america's neglected needs. >> wow, that is unbelievable. ♪ >> i'm flying! ♪cu >> stay ous.

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