♪ this is "nightly business report" with tyler mathisen and sue herera. ♪ big problems for big tech. the justice department is opening a broad antitrust revi, adding a new threat for silicon valley's most dominant companies. coke and a smile. demand is up for its name sake drink, the outlook bright and the sock closes at a record. home sweet home. amazon is getting intol the r estate business through a new partnership which it hopes will change the way people buy real estate. those stories and more tonight on "nightly business report" for tuesday, jy 23rd. and we bid you a good evening, everybody. welcome. so trade, earnings and the fed. it haseen a constant theme for tall street this year, and today

it was trade t lifted investor optimism. reports say that the u.s. and china will meet face-to-face next week in beijing. nlks have b stalled since may, so even just the idea that the two sides areen talking was interpreted as progress. the major averages rallied as result to near record levels. the dow industrial average was up 177 points to 27,349. nasdaq was up 47, the s&p added 20. kaylatouche starts us off in washington tonight. >> u.s. and china is expected to negotiate first time since the ay20. sourceshe talks will take place between the start of congressional recess this friday and china's august 1st holiday. the tal are looking for compromise on two fronts. president trump wants china to buy agricultural products in exchange for relaxing a business ban on huawei. longer term, the white house will dial tariffs back if china

codifies any legal into law.ou recently white officials signalled even though president trump is inclined toward a deal, teat latter making this legally binding could take several months. those officialsave tried t shift the focus on to the new nafta in the meantime. for "nightly businesseport", i'm kayla tausche in washington. a big story for the market tomorrow will be the justice department broad antitrust review into big tech tohe determineer it is stifling competition. he announcement was made late toda the review is focused on international search, social media and retail services, and it pressured the stocks of facebook, amazon, google in initial after hours trading. ylan mui is t coverin story for us from washington. what are the implications here? >> reporter: --

horizonclouds on the for big tech. washington. thanks. but it wasn't just trade that lifted investor sentiment

but stronger-than-expected earnings as well. take coke. the dow component raid its revenue thanks to sale of its name sake soda, making it the best performing stock on the blew chip index. sara eisen digs in. >> coca-cola surprised wall street with more growth. 6% organic revenue growth, thet strongest has been in a while, and it was built on a healthy mix of higher volum and tier pricing. coca-cola saw strength aroundwo the d, especially in emerging markets, and in asia. what is driving it? well, coke is saying that it has been doing better marketing like the new promo with "stranger things" and its new coke and also new innovations like just released coca-cola orange l vanilla, whi the charge. james quincy says it is part of a long-term story for better growth for the company. a >> i think it sign that the transformation of the business being more consumer centric,

more innovatn and marketing led and being faster and more nimble with our bottling partners on executing. >> reporter: coke zero sugar continues to grow double digits for the seventh quarter in a row. >> it is some dire coke consumers coming over, some of the people are going from cokea hey want to balance things out. they maybe have a coke, a cokes cl and a coke zero sugar, so coming from coke, and from other categories. >> reporter: other new innovations, costa coffeedy red to drink, a new coffee drink with 30% less sugar. she also launched a new energy drin called coke energy and coke with coffee. innovation is a big part of the new growth story at coca-cola and rival pepsi, you have seen it play out in the snack division with frito-lay,paut both ces do have new, ener jettergetic ceos.

i'mne "nightly bu report" i'm sarah icing. united technologyas blew p earnings forecast. ength tech is citing s in the aerospace market, especially when i comes to maintenance parts and services. that sent that stock higher into today's session. >> it was a different story though for travelers. the dow component missed wall street profit estimates in part because of weather-related losses. rong windnd hail storms led to an increase in claims which caused underwriting gai to slow. that sent the stock down more than ar1%. sone of the biggest surprises this earnings season has been the guidance. as bob pisani reports, it is not as bad as many feared. >> remember a month ago when bears were warning that big global corporations would lower second half guidance due to the global slowdown and the trade wars? well, it is still early. only about 20% of the s&p has

reported but earnings armageddon is not upon us. for the moment it looks like we dodged an earnings recession, two straightuarters of negative growth and surprising up byte beat guidance from companies including united technology, lockheed marter, kimberly-clark a consumer staples and biogen and health. ca coca-cola ceo james kwins he summed it up well. he told us, we saw some clouds on the horizon but the storm never arrived. in other words nol meltdown like so many were becausing for. sti bracing for. still, a lot of concerns, many over the stronger dollar and the overall cost. th limfered the global forecast saying that the risk remains to the down side. we wl g a big test when caterpillar reports. theyold off big time in may when tariff issues heated up. remember, caterpillar gets about hquarter of sales from asia and

businessas been slow there recenty . for "nighsiness report", i'm bob pisani at the new york stock exchange. investors are betting on an interest rate cut when federal reserve policymakers mee next week. many consider it an insurance a cut to serve a buffer against potential weakness. that got us thinking about the impact of such a move and so we asked steve liesman to tak a look. >> with the federal reserve about to cut interest rates at the end of t month, many are asking the question what will a quarter point rate cut accomplish. fed chairman jerome powell has a list of worries that cutting rates are supposed to address. >> we think that uncertainty around trade polico and a global growth, it is not -- it policy.ll down to trade >> right. >> there's something going on with growth around the world, particularly around >>nufacturing and investment and trade. ut some are concerned that fedate cuts won't address those issues. companies just got a huge tax cu interest rates, they're already low. skeptics argue if a ceo is worried about the effects of a trade war, a quarter point rate

cut won't prompt corporate o spendi hiring. >> i don't think the cost of borrowing is a constraint on activity these days, particularly if you are looking at the economy, the real weakness borinesses, the little guys are hardly any problem getting access to credit. it is not the cost of borrowing. >> right. >> if you c rates further, it is hardly going to really boost growth. >> and s farow interest rates haven't helped address the fed's problem of notts hitting 2% inflation target. core inflation remained belowhe target while fed maintained an easy policy for a lost of the yearsen inflation has eased a bit since the fed began raising rates. remember, the fed was still easy, that is below its neutral interest rate for a lot of the time that it was raising rates. so what would be the upsid of a rate cut? perhaps somewhat lower rates for consumer, home and auto loans. by cutting rates the fed will bring u.s. rates more in with the low levels in europe and japan. >> u.s. yields are hher. the dollar is at roughly a

30-year high on a trade-weighted basis. i think you could make annt arguhat bank lending has slowed, housing has slowed, some of thentest rate sensitive parts of the economy have slowed. whether it is an insurance cut orra recalng the policy stance, i think you can make a couple of different stories to justify cuts. >> a rate cut will show that the fed is more sious about at least working to hit its inflation target. most important, a rate cut will avoid a potential sell-off from a market that expects a cut, whether it believes the cut will dony good or not. for "nightly business report", i'm steve liesman. we all woke up to the this morning that the economic future of the united kingdom now will be dven by bor johnson, who becomes the uk's next prime minister tomrow. duriis victory speech today, he repeated his pledge to pull thek out of the european union by the end of october with or without a formal deal. villa marx reports tonight from london. >> reporter: a journalist and litician, a mayor turned

foreign secretary. to s johnson hoped one day find a way into the top job. never afraid to throw his weight around, a fan of drama, both ancient and modern, with decades of eye-catching appearances on the national stage. and perhaps his mostc drama entry will be here at 10 downing street on wednesday afternoon when herosses the threshold as the united kingdom's new leader. no national election required, johnson relied instead on the support of fewer than 100,000 party members. >> boris johnson is elected as a leader of the conservative and unionist party. >> as party leader and prime minister will replace theresa may. she like david cameron before her felt forced to resign thanks to britain's complex relationship with the european union. the effort to change tt dynamic through brexit will soubtly defense a johnson government for mon or years if he lasts that long. he acknowledged the huge challenges he faces as a pivotal

moment in modern british history, but said he was undaunted. >> we are going to energize the country. we are going to get brexit done. we're going to take advantapp of thetunities that it will bring in a new spirit of can , d we are once again going to believe in ourselves and what we can achieve. >> the uk, he insists, will depart in 100 ys, do or die, come what may, and that insistence concerns investors and businesses in britain. the government's own independent forecasting body has proo dikted a no-deal brexi s will the economy shrink 2%, unemployment rise 5%, and house prices tumble 10%. while johnson and his supporters began to lebrate, europe has issued a by-now familiar warning. >> a no-dealar brexit, brexit would be a tragedy for a sides, not just for the united kingdom. i'm not one of thoseng sa oh, god, they're going to suffer. we are all going to suffer if it happens.

>> the reception in washington sligly rmer, president trump tweeting johnson would be great. but that will provide littlee r to those british voters opposed to brexit and to boris johnson. it will do nothing to change the parliamentary and electoral arithmetic that will undoubtedly constrain this politian who so often felt free to play a character of his own choosing. for "nightly business report", i'm villa marx in london, england. still ahead, the justice department has its sights set on big tech. ♪ ♪ ♪

♪ the doj review is happening just as the tech giants find themselves under increased scrutiny from washington lawmakers, so it may also come as no surprise that those same companies are pouring a lot of money int lobbying those very lawmakers. aditi roy has the detailor >> repter: amazon spent more on lobbying last quarter than any other tech mpany, more than $4 million. at stake for the online retailer? its cloud division, amazon web services, is locked in a fierce battle with microsoft over the pentagon's $10 billion contract. the tech giant isn't alone. dwclosure filings show amazon and facebook set quarterly records on ltbying sp in april through june. alphabet, which outspent every other u.s. company on lobbying

last yeare c in third at around $3 million, followed microsoft and qualcomm. those numbers across big tech have been increasing over the last decade. ten years ago they were spending tens of thousands of dollars. now they're spending tens of millions of dollars. >> rorter: they're spenting so much because they're now facing government scrutiny on multiple fronts, data security, internet privacy and competition. >> the reason we designed l bray in such a way that facebook will only be one amongof hundre members among the libre association and have no privilege means you will have trust facebook and understand -- >> mr. marx, excuse me, you know better than that. you know only facebook has access to 2 billion people. to say that you are just one of many is simply not true. after people's data and private messages have been stolen and sold, after you let russian bots try to throw the 2016 election with no contrition, i mig add.

>> reporter: as tech firms dole out as much if not more than traditional spenders like boeing and at&t, it is ulear if the money i helpful in influencing lawmak as. >> if y just playing an inside game, you spend more and more on lobbyists and you have diminishing returns. to expect i to work i think is unrealistic. >> while the amount the companies are spending on lobbying is small compared to large cash hordes, they're gnificant in the political lobbying market and experts expect the numberso stay relatively high. for "nightly business report", i'm aditi roy, san francisco. more earnings now. chipotle reported better than expected profits, fuelled by inrystments in deli advertising and, most importantly, its digital iferations. that helped its quarterly same-store sales which is a key metr the casual dining industry, and investors cheered,

sending the stock higher initial after hours trading this weekend. kate rogers has the one key takeaway in chotle's results. chipotle reporting a strong quarter. all eyes once again are on s digiales which grew 99.1% and accounted for more than 18% of sales for the quarter. it is the second quarter in a row where growth was this strong. q1 saw the sales gross 100%. it has been a mancz focus for brian niccols who took over last year, testing out chipoeanes for digital orders and offering food promotions. they have chipotle rewards that is continuing to build on the digital platform. since he has taken the helm that stock hit new all-timeighs and increased over 130%. for "nightly business report", i'm kate rogers. higher customer spending leads to strong numbers as visa. that's where we begin tonight's market focus. after the bell, the world's largest payment processor postet

bettn expected earnings as profits rose by a third thanks to that customer spending and higher fees. visa also raised itsr full-y revenue outlook. shares were volatile in the after hours trading and closed the regular session up a fraction to 180.90. after the bell, texas instruments beat estimates even with a global slowdown in demand for micro chips. the company warned that slowdown could persist as chip manufacturers are caught in the middle of the u.s./china dispute. shares rose initially in after a hours tradi closed the regular session up more than 1% to 120.07. has borough topped ethimates ks to increased demand for avengers end game items. the toy maker saw strong sales from its traditional brands like monopoly and play dough. separately,has borougbr plans t its reliance on toy production from china because of ongoing u.s. and china trade

disputes. shares soared 10%o 119.31. harley-davidson had mixed results beating earnings targets but revenue fell short because w sales of the signature motorcycles. as a result the company cut its outlook for motorcycle shipments but shares rose to 36.4. jet blue reported better than revenue.earnings and the airline sees capacity rising for the full year. it is the fifth straight quarter that jet blueas beaten estimates. shares up more than 1.5% today to 19.28. sherwin williams turned in a mixed report. the pat maker topped estimates but came in shy on revenue. the company reaffirmed the full-year guidance. shares role to 490.23.es pulte h topped the growth margins but the ceomaxpected

dend to pick up at the second half of the year because of lower mortgage rates. it wasn't enough t to lift stock though. that fell more than 8% today to 9. >> those lower mortgage rates were not enough to get potentiau rs off the sidelines. sales of previously-owned homes fell in june, as high home prices and low inventory offset any benefit of lower rates. existing home sales were down 1.7%, much lower than expected, and thisey is the season for the housing market because roughly 40% of theyear's sales take place in march through june. amazon is getting into the real estate business now. the company's joining forcesea with estate brokerage firm realag. word of thet partnership s real ag soars soarihares soarin. diane olick has more on the new venture. >> repter: it was a critical move for real ag, the nation's

largest residential real estate brokerage company, facing tough competitign. they went partnering with the biggest online retailer in the world, amazon. potential home buyers now can go through amazon's turn key portal to a rea ag page where they enter information about what they want anare then connected with a real ag brand agent including coldwell banker, senturynd 21, sotheby's corcoran. they then step back in with up to $5,000 wor of free services like painting, cleaning, hanging your tv as well as p the home installed by amazon after the closing. >> your package comes with a curated suite of smartome products. >> like a ring video doorbell. >> reporter: it is a strategyde gned to boost sales for both amazon and real ag. >> t we need involve the consumer experience with the transaction. thut program is not just a helping people get into the

right house with a great agent, but it is about havinge then power of amazon's home services and a fully-equipped smart home be ready for them when they're ready to move in. >> alexa, turn on the tv. >> ok f. >> reporte amazon, the benefit for now is to boost sales of its smart home products like alexa as well as its relatively n home services platform. a year ago it partnered with one of the nation's largest homebuilders, lennar, putting soducts in its mod in a show-and-sale strategy. of course, the n partnership has some speculating it is amazon's first foray into putting them on its site. >> we never had that conversation with amazon. >> reporter: it launches in 15 major markets including l.a., san francisco, chicago, dallas and d.c. i'm diana olick in washington. coming up, closing the gap. what some companies are doing to get moreomen into the male-dominated cybersecurity

industry. ♪ ♪ ♪ we've reported extensively on the gender gap in the workplace, especially in the tech indust but it is even greater in the cybersecurity sector. thats apsomething defense companies are trying to close. kayla tausche is back with us

tonight, this time from the pentagon. ♪ >> all right. now we'rer. working toget >> mariah kenny didn't always want to be a cybersecurity expert. >> taught a course ony cybersecurnd so i took that. super interesting. i only understood half of it. >> she works at crowdstrike, the company hired byc the democ party to play defense against russia. she graduated in may with a degree in computer science andv led the uity of virginia to win two cyber contests. the competent is sponsored by r raytheon and federal agencies. the winners get face time with tential employers. it is part of a growing effort by companies and the government to woo new workers, especially women which make up 19% of an industry long viewed as geeks and men. >> wedn i sta my career, i clearly remember an individual, one of the male seniors saying, don't worry, you are going to get married and start a family

at somehi point and won't be important to you. >> reporter: s.e. miller is the deputy chief information officer at the pentagon. part of her job, luring the best minds awayrom silicon valley. >> if it is about money, obviously wepe can't c. but if it is about mission, focused o what we do for the nation and also aenchant to serve, we win every time. >> reporter: that pitch hit home for florida senior claire syler. >> the problems that we fe in cybersecurity have real-world consequences, so the difference between not solving a problem cybersecurity and solving it is thifference between millions of people have their data leaked out or having their data be protected. >> reporter: there are roughly half a milli cybersecurity bs currently open in the u.s. 5,000 of those here at thede nse department where miller says a diverse set of perspectives wl help thwart a wider varty of threats.

for "nightly business report", i'm kayla tausche t at pentagon. and before we go, one final look at the day onwi wall stree word that the u.s. and china would resume trade talks next week in beijing. that sent stocks higher and earnings from the likes coca-cola also helped. the dow up 177 points. the nasdaq was up 47. the s&p added 20. and that does it fores "nightly bus report" tonight. i'm sue herera. thanks for joining us. >> i'm bill griffeth. have great evening. see you tomorrow. ♪ ♪ ♪

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