♪ this is "nightly business report" with bill griffeth and sue herera. ♪ september to remember? august was one to forget as investors figure out their best strategy for the weeks andmo hs ahead. on the front lin the country's busie port is even busier just day o ahead the implementation of new tariffs on chineseimports. > and turning your closet into cash. one company is set eveningut to reinvent the storage ra industry, connectingpl peoe whop have extra space withhose who have extra stf. those stories and much more tonight on "nightly business report" for friday august 30th. and we bid you a good evening, everybody, and welcome. e is off tonight. august is in the books now and v

long-termtors a probably just happy to move on. it was the second worst month of the year for the markets. volatility came roaring back. trade tensions and recession signals from the bond market headline the period, and after four weeks of big ups and downs, inblstors today were to catch their breath a bit as we head into thehe holiday weekend. he dow rose 41 points today to ose at 26,403. the nasdaq was down 10. for the month, all of the major averages were lower. l what w september bring? mike santoli starts us off tonight from the new york stock exchange. ug>> the month oft has lived up to its reputation for volatility, and now comes september, which has similarly tended to be a challenging month over the 90 years september has been the weakest month for stock market turns, but the s&p 500 down slightly more than half of all years and the average return from all years a negative 1%. this certainly implies seasonal

portions present a headwind for a market that pulled back from the late july peak. it is important to recognize calendar patterns are rarely an indication of performance. relentlyownward pressure on bond yields, growing questions about whether the trade war is snuffing out global growth and a stock market that retai rd most of the gains for the year despite corporate profits riding near the flat line.st set agahe cloudy growth and trade outlook, bulls will below five-year average and d ocks look relatively inexpensive all else being equal. investor sentiment turned cautious, and intense demand for down side protection in recent week goes. wall street is getting itself against growth threat and confidence has waned. can the federal reserve do anything t ease investor fears

and support expansion for the rate cut in a few weeks? that's one of the questions that lie ahead in september. fo "nightly business report" i'm mike santolit the new york stock exchange. let's turn to luke lloyd for a look ahead how you might want to position your portfolio heading into the new month.he is an investment strategist at strategic well alth partners. thank you for joining us. >> thank you for having me. >> what weaw was what we saw in previous months where defensive sectors were out performers as wall street rushes to the safety of those sectors, especially the bond market as well. what are you exptations? do youndee the t continues into september? >> right. so the whole month of august was aoleryile month like you said, and there's a couple of reasons for that. trump has been tweetin a lot. jay powell had the meeting where they spoke and the g summit. we expect the volatility to stay becacae, first of all, there's weak international data right now and the u.schina trade war is still going on. that being said, we think it

will stick around asel i know u.s. elections are still out a year out, but at the all of that lingering around there still will be volatility in the markets. >> i see. you're saying get defensive here, utilities, reach, the sensitive sectors that benefitted from the record l interest rates. but at some point when does it become what we would call a crowded trade and not as much safety? what do you think? >> i think we are actually pretty close to that. utilities reach, staples, they are all expensive from a valuation standpoint. people are trying to chase yield. we're trying to position ourselves defensively in other sectors like tech. for example, we really like o softwar semis. software provides reoccurring revenues and high -- they provide a lot of profi in regards to hardware like semi conductors they provi margins, productivity and producing. we don't have producing in a recessionary scenario. it c c typically provide p some

type of back draw and we lik software over semis. >> right. >> you really get defensive in other individual sectors maybe other than reach, staples and s. utilit >> the fed, clearly there's a debate going on even among the bank presidentnd the governors about whether they should, in fact, cut rates. you had the former president of the new york fed with thatnt versial op-ed piece this week saying they shouldn't cut rates, among others who said the same thing. what are youron expecta from the fed? what if they don't cut this time around? >> so they actually have ain me on september 18th, and we will be highing that closely. the market right now is pricing quarter o a percent cut in the interest rate. so that being said, we think the federal reserve will maintain in line with expectations, because we really don't tnk they're going to over deliver or under deliver. so we really think they will intain that posture and deliver what the market expects. >> all right. well, here we go. we will see wha happens.

luke lloyd w wh strategic wealth partners. ks for joipang us tonight. >> thanks for having me. the new tariffs are set to kine in on c iorts this weekend, and chinese officials are still hoping that the u.s. t will callm off. the concern among investor, as you know, is that the trade dispute will intensify further an a hurt economiesround the world. eunice ju eunice use h eunice yoon has more fromg beij tonight. >> reporter: twoepays until new tariffs kick in, on sunday a little afteridnight eastern standard time the u.s. will impose aarf on chinese goods. chcha will add an extra tax on its first75 billion dollars of goods including soy beans. they said they hoped the u.s. would show sincerity, which is china's way of urging the u.s. call off the tariffs. they said the trade teams have been maintaining effective

communicatio y meanwhile, tn is headed for first month since 1994 and authorities are getting nervous about capital flight. the nikkei newspaper is reporting regulators put more restrictions onanks for yuan currency conversion and real estate delopers access to foreign currency bonds. for "nightly business report", i'm eune yoon in beijing. >> many of the items affected by the new tariffs are consumer goods, this like smart tches, televisions and shoes.or a largeon of the goods come into the u.s. through the port of los angeles. ne wells is there at the nation's busiestnave port to sur the scene. ♪ >> reporter: this really is america's gateway to asia, and s want tw you what we have going on here at the port of los angeles. th ship came in f ina, but this ship is in fm korea, and that shipver there is in from vietnam. so you are seeg how the supply chain the changing, but we are starting to see another issue here. so many containers are comg in

as retailers tried to front load merchandise for the holidays ahead of the new tariffs that the pt is starting to get clogged like it was a year ago when they were tryingg to beat the fir set of tariffs. warehouse space in southern california, now thecy vacate is below 2%. they will run out of space to put everything. here is why they did this. when the president first announced the new set of tariffs, retailers to get everything in they could before the holidays. think of the dooruster tvs for black friday. in an 11-day period herehis month stevef ferrera ocean audit said 260,000 tvs from i fchinnto this port and the port of long beachr.ext doo he called it a surprising surge. even though the president later delayed the tariffs on tvs until december, well, these ships were already at sea. but t port is also telling us that unless things change, starting sunday 98 of the stuff coming in from china will be tariffed. we are talking 164 billion

dollods worth of go and the fastest growing ctainer traffic here right now are empties, because we're stillff importing srom china. the number of containers coming in full and leampng is up 20% in a year. for "nightly business report",e i'm jlls at the port of los angeles in san pedro. a new report this morning pointed to a big dip in consumer the university of michigan surveyed -- recorded its biggest monthly drop since 2012. it cited increased uncertainty about the outlook for the economy forhe ongoing trade tensions between the u.s. andin cha. time to take a look at some of today's upgrades and downgrades. we begin wh shares of ulta, downgraded by a umr of firms today including wells fargo which cut the rating on the stock to market perform from out perform. th analyst cited the highly competitive cosmetics industry andlowingrends. remember, last night ulta reported disappoinanng earnings lowered guidance for the

rest of the year. the new price tget is $235, but the stock today lost 30% of its value,ow to 237.73. abercrombie and fitch was upgraded to hold from sell at deutsche bank. the analyst said that the company's decliling marginsre now reflected in its guidance shall and tt price target is now $14. the stock rose 1% today to 14.62. >>ea still why netflix, is streaming powerhouse, debuting some of its original movies in theaters first. ♪ ♪ ♪

hurricane dorian continues to strengthen as it heads it is expected to make landfall late monday or early tuesday, and if it itays on current course it could potentially be the strongest hurricane to strike florida's east coast since andrew back i 1992. analysts say that the damage to crops in the rion could be significant, specifically citrus, sug cane and peanut production. earlier this week we told you about p aposal that purdue pharma was pursuing to settle opioid claims. today the "wall street journal" said that it is getting a mixed reaction from various states. some attorneys general say c th thh portion of that offer is not highnoh. the family which owns purdue pharma offered between 10 and 12 billion dollars over a number of year. separately allergan confirm it is planning to pay $5 million to get out of an upcoming federal opioid trial in october. that settlement is between the ugmaker and two ohio counties.

more than a dozen other companies tugh remain as united airlines said today 737 maxnes just in time for s the busy holiday travel rush. the airlines new date to bring that plane b back this is now december 19h, provided that the faa says the maxs has been fixe and is safe to fly. phil lebeau has detail >> reporter: united's move pushing back the return of r th 737 max gives the airline a little more breathing room to schedule flights for the beleaguered plane. it would fly max by early tained november. now it has moved the return date back to december 19t shortly before when southwest plans to fly the max, while american still targets earlyem nr. boeing says it is making progress validating and tweaking software upgrades for the flight control system of the max. that system a primary factor in the crashes of two max planes

that killed 346 people. in march the faa and other regulators around the world grounded the max. now a o panel those regulators says it expects to issue its report on the 737 max in the ming weeks. the new head of the faa, steven dixon, says he won't let the grou uing be ltedil he's convinced the plane is safe to fly again. boei ceo dennis muilenburg says that could happen as soon as october. if the max is back before the it will be rush, welcome news for united and other airlines that need morees plann order to meet the trong demand of people flying. but how many ose travelers will balk at getting back on a 737 maxin a that could make the return of this plane bumpy one regardless of when it happens. phil lebeau, "nightly business report", ccago. camell soup heats up in thei sales, that is. tonight'sre we begin market focus with the company

reporting better than expected earnings thanks to s demand for its soup and snack brands like gold fish and kettle potato chips. campbell has been selling noncore brands recently so it and it seems to be w wking.s, that stock nearly jumped 4% day to $45 even. big lots reported better than expected second quaer profits, making it the latest discount retailer to pt a solid quarter. the company also said it should be able to withsta tariff-related head wipds thwin come its way. the stock was up 3% to 22.75. china's government announced it will exempt tes models from the company's purchase tax. it could reduce the cost of the car. no reason was given for the decision. tesla has invested heavia in china, which is the world's largest automobile market. shares were up nearly ay2% t to 225.61. >> activist invest georgian au partners has taken a 10% stake

in blooming planned jana called the dining restaurants shares under valued. jana plans to suggest a possible sale, divesture with board nagement. they rose 7% to 18.04. comcast is reptedly opping lion's gates premium channel stars from the bundle at the end of the year. the decision was first reported by the information. the deal currently is in place and set to expiren four months. lion's gate declined almost 5% today to 9. 44.26.t was up a frack htion to we must mention comcast is the parent company of cnbc which produces this prograr the sumox office was not as hot this year as in the past, but analysts ay busines could heat up this fall even as the weather cools down. julia boorstin is in los angeles. >> reporter: despite a few

megahits this summer like "lion ki" "avengers end game" and ""toy story 4"." it has been a disappointed season. the year-to-date box office is down 6.5% from last year, putting three key themes in focus this fall. rst, disney is expected t i continue tote dominate. afr drawing over 36%f domestic ticket sal this year with five of the top six movies, including "avengers end game" and "lion king." coming up, "star wars: the rise of skywalker" and others are expected to build on the franchise's success. >> disney is adept at taking all of their brands, looking at the best parts of thebe brands, reimagining, rebooting, creating franchises and bringing in tons of audiences around the world. >> how are you, frank? is is jimmy hoffa. >> second, they will puten vies in theaters including

rtin cor mart f putting thesems on the big screen less than a mon before they're available for streaming and only in limited release after netflix failed to strike deals with the big theater chains. the strategy is not about selling tickets but chasing coscars for big-name filmmaker and for proting the exclusive subscriber numbers declined last quarter. with s filmsh as ford versus ferrari zooming into theaters, the third theme to watch the performance of non-franchise new par disney considered thes value of investing in this kind of stand-alonem. f >> successful non-franchise films are hard to find because audience seemingly gravitating towards the tried-and-ue brands, the franchises, the reboots, the things they know and love, and steeri clear most of the timom

original content. >> reporter: while sony as "little women" and a mr. rogers biopic starring tom hanks will kind of oscar bait. with disney and universal together controlling over half of the box office, we will see how the smaller studios hold up and whether they could g snapped up. for "nightly business report", i'm julia boorstin in los angeles. time for ourke weekly m monitor who has three names in the financial ser swriss indust -- services industry they like because they have pricing power. we welcome dev cantasaria.an for joining us tonight. welcome. >> thanks for having me. >> we start withair isaac, t famousker symbol, fico. they do credit reports and things. $50 five years ago, $350 today. do you think there still more growth to go i guess? we do. the company has a virtual

monopoly on conser credit scores, mortgages, auto loans, credit cards, and, you know, over the last couple of years they instituted special price increases. last year it was rtgages, this year it is auto loans and they will roll it out to other areas in fheure. they also instituted general price increases every year above the rate of. inflati they still represent a very small portion of the overall credit decisio amount. so we think there's plenty of room to grow on pricing for thin co >> and then the second one is moody's. a lot of the charts look similar as it happens. it has had great growth rate over the last several years as well. why do you like moody's? moody's is a natural duopoly with s&p&p global. they rate 90% of the debt in the world, and you could think of them as toll collectors. when someone needs to issue debt, you have to go throu moody's and s&p, they collect a small piece of the transaction. there's a lot of debt that will be issued and refinanced overe next ten years. so they have tremendous pricing

they increased prices annually above te of inflation for many years and still represent a small portion of the overall debt issuance cost. we think it will have future. t >> you like these companies in duopolies. re is another example, visa you like, but the main competitor would be mastercard i guess. do you like visa v instead of mastercard or do youike both necessarily? >> we like them both and we own them both. you know, they ctrol virtually every payment transaction in the world. they take a small piece of every credit andar debit transaction, and given the trend tords electronic payments, they had robust growth in the. pa we think that that can continue into the foreseble future, y know, despite disruptive technology. visa remains at dp of the f chain. we think as long as there aren't government controls, pricing contro on debit and credit card transactions visa has a very long path of strong, organic growth going forward.ng >> w>>h valle forge capital

management, thanks again for joining us tonight. >> thank you for having me. and coming up, one person's clutter is another person's opportunity. ♪ >> is thi someone's attic or a cash cow? i'll explain coming up on "nightly business report". ♪ ♪ ♪ got stuff? everybody does. in our homes and takes up space, and now a new comp iy thinks has a solution. it is taking on extra clutter and matching i with extra space. diana olick has the story from atlanta tonight. >> reporter: they in every attic there is hidden treasure, but now there is hidden profit, and not just in the attic.

hywhere youe extra space in andan around your home. thanks to the shad economy and a new company neighbor, people who have extra space are connecting online with people who have extratuff. so you can store your stuff in someone else's house inste of renting a pricier storage unit. barely two years old, neighbor, which charges users a h afee, seen 500% annual growth according to its ceo. and it is going international. >> it is not just garages and basemes and driveways. we'll have people put up barns, artheir old and they'll store s classic cars in their barn. we have people put up even small spaces. in university towns we will have t ande put up a clo students will store two or three boxesn their closet. >> exactly what the cohen family is doing in their atlanta home. they rented out a corner of their attic to aollege student, and she brought her extratuff. they're also going to rent their

extr parking space. >> we're not looking to rent out an rv with somebody's abnb in their rv or living in it. there's a limit. >> yes. >> there's limit we draw the line, i draw the line. >> homeowners are allowed to inspect anything they store, and neighbor insures them up to 2 million dollars if the stuff somehow hurts the house. >> weit defy wouldn't have like fireworks. >> weapons. >> anything likeal that. chem >> explosives or animals or humans. ac reporter: and for those renting the spe, it is a lot cheape than the big public companies because homeowners have less overhead. like, what haul or one of the bigger self-storage places are charging and then went below that, butanted to keep it somewhat comparable. >> reporter: there a six self-storage reach and the sector is very strong, but you have to wonder is tois to do to did to hospitality. irbnb

>> currently there are more storage facilities the united states than starbucks, mcdonald's, walmart, home depot, domino'sizza and costcos mbined. it is a massive industry we are trying to disrupt. >> it seems so far there's plenty of space for this disrupter in thepace. for "nightly businescereport" i'm diana olick in orlando. nally, the business of tennis, the industry is preparing for tariff hit this weekend. tariff.balls are subject to a rackets will be increased in december. sport itself and some amateur players are finding high-tech ways to improve their game. e here isc chemy. ♪ >> reporter: these division 1 tennis players spend a lot of time practicin at t typical-looking tennis court in new jersey,, b high-tech video

with data analysis is changing the way future pros are learning the gaga. >> you can't really see all of the little details that -- with the h eye that you can with a camera around technology stuff. at's when details show up. >> you can sw it down and really see where you're making gmistakes or los power. >> the court sends teaching program is owned by one of novac's coaches and it is a camera sysms bas on israeli air force technology. >> when you make t correction your ball is faster or slower or more spin. >> the a technology maden immediate difference for me, showing exactly what i was doing wrong, like dropping my left arm rather than keeping it up to stabilize the bal it goes beyond tennis, too. with sports biomecnics looking for anylaws or asymmetries in the player's mental reaction time and physical per fofrm answer.>> if you are a better a the science behind athleticism says you will have reduced injuries and a longer career.

>> i feel every generation gets better partially because of technology gets better. >> reporter: for "nightly business report", i'm eric chemy in tennis line, new jersey. >> before we go a finalook a the dn wall street as we close out august. the dow rose 41s. poi the nasdaq was down about 10, the s&p uless than two. for the month all of the major averages were lower. that is "nightly busiorss report" tonight. i'm bill griffeth. thanks for watching. have a great long weekend.e we'll back here monday for a special edition of "nightly business report". see you then. ♪ ♪

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