. ♪ this is "nightly business report" with sue herera and bill griffeth. ♪ what a week. stocks cap a volatile and norve-wracking stretch with big games. w investors want to know what happens next. raise the roof. mortgage rates are low, builders should be ecstatic, but it is not working outhat way for the housing market. roadshow. it is a big weekend forlassic cars and the auction block is about to hit top speed. those stories and much more tonight on "nightly business report" for friday, august 16. good evenin everyone. welcome. bill has the evening off. take a deep breh. the weekend is here and the stomach-turning week is finally over. the good news for long-term investors is that it finished

with gains. wall street was upbeat and the bond market calm, unlike the prior days which were wild. ononday stocks dropped 380 points as investors feared annes cattle -- an escalation of the trade war. about day stocks poppe the same amount. on wednesday it fell 800 points, the worst decline of the year. today the bulls cameac the dow rallied 326 points to 25,886. the nasdaq was up 129, and the 41.500 added but today's gains were not enough to lift the major averages for the week. dominic chu explains what was behind today's rise. >> stos staged rebound today and it was a confluence of events pushingar thets higher including talks of war, economic stimulus, upbeat traders.from the stock market has been taking cues from the bond market all week and today global yields

bounced back on reports that germany plans to put in place a stimulus plan that moved bund yields off lows which in turn moved u.s. yield off lows. bank of america ceo brian moynihan adding to the optimism. he says he see no underlying signals of recession. consumer spending is going strong compared to 2018 and the situation in hong kong is ovrious but doesn't pose a big threat. trade talks, there's no question it has been a wild week and a wild month for stock market investors. in fact, the average dow trading range so far in augusteeas 473 points, but the biggest headlines dominating the ttention continue to be tariff talks and global interest rate policy, and that will continue. r "nightly business report", i'm dominic chu at the newchork stock ge. so what happens next and should investors expect more volatility in the days and weeks ahead. joining us is kenny lcari,

manager. good to see you. >> a pleasure to see you. >> you say investors should not panic? >> right. we have this con time the market seems to go through one of the hissy fits, right? so the last thing that long-term investor should do is make an emotional decision. typically you me emotional decision when you see days like we've had, which is exactly the wrong time to do it. take a step back. see what is going listen to the conversation. understand whether or not fundamentally the story really changed or whether or not these are just issues that, you know, we continued to talk about. in fact, they're just issues we've continued to talk about. there's nhing new that happened this week other than that small inversion of the yield curve on whatever day it was, wednesday, which created this panic in the which created the big sell-off. >> right. >> for the most part a long-term instor should do just that. they should look at their portfolio, the should see the names they like. they should take advantage of some of the pricen dislocation some of the great names that they have. >> you made the point to me

earlier that you think this volatility is going to continue well into the fall. >> well, i think -- august and september tend to be volatile months just because of the time of the year and what happens. nyou know,t week we have -- there's not a lot of data coming out next week, but there is jackson hole, which is that big, you know, brew ha. >> fed meeting. >> fed meeting at jackson hole, so they will beki t about broad monetary policy. then you move tto cseptember and you start to have the fall nervousness as mutual funds start tod, rebo as they get ready for year-end. you tend to have volatility around that. that being said, don't get frightened by the volatility, but you should take as a long-term investor, you a shoul taantage of the opportunity it creates. >> you also made the point that president xi has a big event coming up. >> right. >> it is the founding the people's democratic republic. t>> right. t comes in october. >> right. >> and you don't think there will be much progress on trade, which has been a driving factor

in the market. >> that's right. and will continue to be a driving factor in the the reason i think that is because president xi does not want to t appear be forced at this time in not only their history but kind ohat is going on in that country to make a deal or to come to the table ear to have been forced to come to the table to me a deal with the united states. so therefore i think they're going to work, you know, kind of diligently at pushing it off. they're gting to have a m in september. that was part of the reason the market rallied again today, alked about that meeting okay. but in reality i don't think you are going to see much of a deal until we get into >> all right.mber. so fasten the seatbelts. thanks, kenny. kenny polcari. all right. we learned today that president trump reached out to ceos of some of wall strees biggest banks earlier in the week as the market started to fall, and he asked them for their thougs on the economy and trade. one of the driving forces, as you know, behind the market's big swings. kayla tausche is in washington

tonight. >> as t dow dropped hundreds of points wednesday, executives of three top u.s. banks found themselves on the phone with president trump in an impromptu 20e conversation that followed a previously scheduled regulatory meeting. they discussed the economy, the fed and trade. ceo told the president they agreed china was a problem, but said the w uncertainty hurting business confidence and investment. he was receptive to that argument, one person familiar with the call said, but reiterated he likes after delaying some of those tariffs this week, trump acknowledged for the first time that consumers could end up paying. >> the tariffs have really bitten into ina. they haven't bitten into us at all, except for the reporters that want to make it look tt y, but they don't understand what's happening. the tariffs, we've taken in close to 60 billion dollars in tariff money, and the consumera has not for it. now, at some point they may have to pay something. >> reporter: tensions china remain high as it conducts military exercises on the hong

kong border and slams u.s. arm sales totaiwan. president trump says he has a phone call scheduled with china's president xi, and in the past it has been those e-on-one negotiations that have improved relations. for "nightly business report", i'm ca i'm kayla t a new report on housing shows that home building fell for a third straight month. housing starts for july dropped 4%, but a rise in permits offered a glimmer of hope for the market since they are considered an indicator of what's to come. diana olick has more on the mixed signals being sent. >> reporter: homebuilders should be ecstatic. mortgage rates are near aree-year lows just keep falling. the average rate on the 30-year fixed was or last fall, now it is heading towardsil 3.5%. builders say they are seeing more demand, single family housing starts aren't exactly soaring. they rose just 2% annually in july. usually starts rise as rates fall, but that has not been the

case. the two fell together for much of this year, only di verging ih last few months. kb homes ceo jeff metzger have always maintained over the years that consumer confidence means more than rates to the home buying dnsision. er confidence in housing hit a record high in july according to ath m fannie mae survey, but overall consumer confidence fell in august according to the university of michan survey, which noted consumers concluded following the fed's lead tha they m need to adopt a precautionary spending outlook in anticipation of a potential recession. still, others think the rate drop willake for a much stronger fall housing market. >> for every 25 basis point decline in the mortgage rate, that's equivalent to about 3% cut in the price of the home.e right now h prices are down for the consumer more than 10%, so it makes it much more affordable. i think today the housing market is responding to that lower rate. e are seeing very good activity, especially at the low end of the market.

>> reporter: but the low end of the market is where suppl is leanest. prices are rising fastest and buyers have the least wiggle room in their wallets. if the economy falters those buyers likely will pull back first. for "nighy business report", i'm diana olick in washington. in hos mixed picture is not the only part of the economy that doesn't make much sense these days. as steve liesman reports, there nve a number of economic conundrumstors are trying to navigate. >> if you are not confused you gy not be pay attention. fed investors are trying to define the u.s. economy battling through numerous cross currents. there is weak global growth but u.s. ec growth around 2%. rapidly falling bonds suggest a recession may be coming in the years ahead. finally, robust consumer standing but a manufacturing sector that may be in recession. even the titans of wall street disagree.

here is what fund manager rli said about the outlook. >> recessions are inevitable, the only question is when. do you see one coming? >> yes, i think that in the next two years, let's say prior to the next ection, there's probably a 40% chance of a recessio i think that you're seeing this around the world. >> not so, say david rubenstein, founder of the private equity tgiant, carlyle group. >> the u.s. economy is in pretty good state. we're notn highland, but there's no doubt as economies in europe and asia glow down and into recession we can't completely avoid that. at the moment i don't see a recession in the imminent future. >> even today the data is sending mixedignals. consumer confidence plunged to the lowest level of the year due to a small drop in america's perception of the current tuation and a big drop in what is expected for the future. fed chairman jerome powell said he takes market signals seriously when figuring out where to set interest rates and probably will be cutting in the coming months. in figing out how much he will

be navigating the cross current of low global bond yields and the dangers o t ade war against economic data showing strong consumer spending, low unemployment and decent u.s. growth. rough waters toilot a ship in as rough waters as the u.s. ecveomy. i'm steiesman for "nightly business report." it is time to look at today's upgrades and down grades. tjx, the parent company of tj max, marshals and home gools was upgraded from buy tool at loup capital. the analyst cites market share gains at thexpense of department and specialty stores. the price target is $60. it rose 2% to 51.39. brinker, the parent company of chili's and other casual dining restaurants was upgraded from overweight to equal weight. the analyst expects the growth of 2% to hold. therice target is $48. it rose to 38.46. merck was w initiath out

perform rating in new coverage. potentialt cites the for expanded uses for cancer drug keytruda. the shares gained 2% to 85.06. still ahead, why the presidential candidates are getting an early start, talking about your money. ♪ the ceo of hong ng's flag ship airline has resigned. the head of cathay pacific stepped down amid this week's

protests at the main airport, ich is one of the world's busiest. the airline stock fell sharply and it came under pssure from chinese authorities to rein in employees. they were supporting pro democracy protesters. today the protests were peaceful, but concerns remain amonghe business and investment community. here is brian sullivan. ♪ >> reporter: this political unrest, if you want to call it that, over the last couple of months and more rallies are expected this weekend, has disrupted the u.s. financialet ma we have seen our markets on evenly and wedge and we have seen asian markets decline except the last couple of days. we have spoken to members of the financial markets and said, will enes like this dissuade investors, ceo compa heads or public offerings in the center of asia? e investment banker told us today,espite protests one thing that the hong kong market has going for it is a history o

relative company stability. >> it's had very few failures of major listed chinese companies here, which means that duenc dili that is done in hong kong is done with understanding of how cna operates. whereas, uk, the u.s. in particular, singapore and even frank forwa frankford is littered with failed chinese ipos. r: that stability that has taken place over years and even decades may come into question if we continue to see scenes like this, peaceful as they are, and companies, executives and workers decide there may bece better p for their capital for their companies and even for their families. reporting from hong kong for "nightly business report", brian sullivan. we're still more than a year from the next presidential ti elec, but already candidates are talking about your money. >> the bottom line is -- i know you like me and this room is a ve fest, i know that, but you have no choice but to vote for because your 401(k)s, down

the tubes, everything will be down the tubes. so whether you love me or hate me, you got to vote f me. >> and the president "snl" the onthe -- isn't thonly o taking m at your pockets. democrats are as well. let's turn to john harwood in washington. good to see you. >> reporter: hey, su >> given the week we just had, a lot of people are wondering how strong the u.s. economy is and hasedt chang the 2020 campaign for the president? >> reporter: i think it has begun to change it, sue. that was an unusual statement from the president after a week of stock market vcaatility to himself as the protector of people's 401(k)s. but, really, the campaign so far has been mostly fought out on cultural grounds, who is an american, the whole questions of identity, immigration, white voters feeling a apprehensiv immigrants feeling under siege. now this is sfting to more toward an economic terrain because all of a sudden for the first time in a long time people

are feeling a little bit more vulnerable. that's gsng to change t dialogue going forward. >> and does it -- will the president's campaign be able to adjust to that? >> reporter: well, they're going to have to. the president has been more comfortable discussing cultuesl isnd trying to rouse his those llar base with cultural messages, but he's got a different problem on his handh that hen't been used to so far. so far the - cultura the culture wars have alienated some voters who are happy with the economy. now the president's got to wort about t happening in reverse, that is people who like his messages aut migration, for example, but all of a sudden have a new sense ofil vulnery on the economy. the president has been pretty stable in the polls, but does it drive some people away from him? they have to figure out how to answer that question. >> let's turn to the democratic candidates, and there are many of them certainly at this point. at do they need to do to take advantage of what is happening in the economy? >> reporter: interesting cross currents, sue,em on theratic

side. for joe biden, who is the familiar front-runner, i think the more uneasy people feel the better it is for him. he's a familiar, stable character, especially for the african-american voters tha he dominating right now, even though there are two african-americans in the race. its a challenge i think for izabeth warrennd bernie sanders who have the most radical economic positions. do those become mor sca to people as they're in a situation. and kamala harris, whos probably the candidate below the top three to come up, she hasn't relyefined her economic position goes fully. does she go for more safety as she has done on health care compared to sanders and warren or does she go for the fences? she will be sketching out her economic positions in more detail in the comingks w >> john harwood in washington. thanks, john. >> reporter: you bet. >> appreciate it. well, the trade war hits deere's bottom line and that's where w begin tonight's market focus. the heavy equipment maker missed

earnin a revenue estimates with the company citing farmers dela purchases because of uncertainty with the export market. deere lowed its full-year guidance but the stock rose 4% to 1.43. revlon is reviewing options that may include putting itself up for sale. bloomberg said the company retained advis gs fromd mcsax for potential sale of parts or all of i.t. business. they are going through financial struggles and facing increased competition in the iustry. th shares rose more than 9% to 16.77. the fda approved a new drug to treat rheumatoid arthritis with a cost of nearly $60,000 a year. the approval comes as it faces increased competition for humira, its blockbuster treatment for the same condition. it rose more than 2% to 64.43. palo altoxe networkstive vice president of worldwide

sales is stepping down after t spendiee years with the cybersecurity company. palo alto says arc s for his replacement is under way. shares dropped more tn 7% to 199.27. well, if you look beyond trade and the economic headlines, there are stocks that may be worth owning. our market monitor says he has found some. joining us is sandy villere, portfolio manager of thevillery balance fun wit about 2 billion dollars under management. sandy, good to see you. >> thanks for having me back, su >> you are looking for opportunity for stocks at more reasonable prices, correct? >> that's wha i do, exactly, yeah. >> let's start with your first pick, and that is teleflex. it is a medical device maker. why do you like it? >> well, i think it is somewhat recession proof as well. it is a pure play medal device ompany, and founded in about 1943 these guys have a long history. they've got a really exciting product called euro lift of all

of their products, but this one they just raised the target to where it is going to grow from 30% up to 35%. it is aery untapped market and there's about 12,000 interventionalst urolo around and only on 2200 platforms. we like thiss property and t company. it is one we would buy in any dips or volatility in the market. >> now, we are staying inhe medical device field. avia med is your next pick. you think you could get about 26% return, looking out about 12 months. that would be one reason why you like it, but whatng is g to drive that return? >> yes. so avia med has a pemporaryp called the impella. differentterviewed heart surgeons they tell us it gives them a bridge to decision where you can p in a temporary pump and sort of decide what exactly to do. a lot ofimes patients are leaving with their native heart without having to do invasive heart surgery. so it is one thatos has a no competition with over 350 patents, 500 million i

no debt.d we love the balance sheet. we think it will be a good one, and it trades at a very cheap 7.5 times enterprise value. we like this one a lot. >> it is a less expensive heart pump, is it noal it is a play for the medical industry. >> yes, that's a great point. this is roughly speaking about 25,000 dollars when you compare it to more permanent heart pump that's about $100,000. so a very reasonable -- a very reasonable device and something that is getting good reimbursement from cms as well. >> let's finish up with conductor. why lo you like that one? >> this is notmo one of th dee defensive companies because it has exposure. it is a semi conductor company so it has exposure to the trade war, et cetera. it is reasonable 9imes earnings. it has 5g buildout that will be occurring over the next three to five years and i think will be a big deal. also, on a iphones as we electric vehicles, they're

getting more and more dollars of content onhese devices in electric vehicles as they go. so i think it will be a big winner and i see 30% upside, $22, $23 a share if they can trade at a 12 multiple on $1.80 in earnings. ike this one a lot. three ideas to go into the weekend with. sandy, thanks so much. appreciate it. >> thanks for having me, sue. >> sandy villere with villery and company. coming up, a peek at some of the world as more unique and classic cars. >> the big guns of car collecting here at pebble beach. coming up, we will show you the most famous movie car in the word, 007's db5. ♪

♪ here is a look at what to watch for next week. on tuesday, home depot reports its earnings, givingnvtors new information on the health of housing and the consumer. on wednesday, we'll find out if lower mortgage rates helped increase the sales of existing homes. also on wednesday, the federal reserve releases the minutes of its last meeting, and that's what to watch for next week. car lovers rejoice. some of the rarest and coolest collectibles are on display at america's mos prestigious car show, but as with most things, the market for c issic cars changing.ks robert frank k the tires in monterey, california. >> reporter: it is the woodstock for wealthy wheel heads. nearly $400 million worth of cars expected to sell here in monterey and pebble beach this weekend.

so far, the classic carke m seems to be powering through wall street swings and the global slowdown. collectors say they hunt certain cars for years, and when one comes up for sale they pouncef regardlesshe stock market. >> there's an emotional component and i'm a collector. you know, if i really want something i will find a way to get it. not utstupidly, outweigh the other factors but we all find a way ultimately. >> so some of the big guys, they say, you know what, this is my e chance to get the car and they'll step up to pend the money to get it. >> the most expensive car to sell this week is actually a race between two cars. the first is this 1939 porsche type 64. this is the first car to actually wear the porsche name. it could sell for over $20 neck in neck with that is the 1994 mclaren f1. this c retailed for $800,000 back in the mid 1990s. this car today will sell between

$21 million and $23 million which is why jay leno said his mclaren f1 is the best investment he has ever made. >> i bought my mclaren f1 in 1999 lor $800,000, and thet offer i got it was $17,500,000 and one just sold for $22 million. >> the market for big ol multi-millionr ferraris and porsches has cooled a bit, but millennrel collectors driving a boom in lower priced vintage trucks, suvs and fr wheelers, like this ford bronco sellingp $80,000. two movie cars are making cameos this weekend. james bond's silver 1965 db5 made famous in "gold finger" sold last night at rm sotheby's for nearly $6.5 million. mecum auction has the ferris replica of ari, a the one used in the

it is expect to fetch over $200,000. as the ferris buehler once said, it is so choice,f you have the means i highly recommend picking one up. for "nightly business report", i'm robernk in monterey, california. and before we go, here is a look rather at the day's final numbers from wall street. the dow rallied 306 points. the nasdaq was up 129 and the s&p 500 added 41. but forhe week, the major averages were all lower. that is "nightly business report" for tonight. i'm sue herera. thanks for watching. have a great weekend. we'll see you right back here on monday. ♪ ♪

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