this is "nightly business report" with sue herrera and bill gffeth. d l or no deal? stocks rally aer the u.s. and china say trade talks are on for october, but is an agreement possible this time around? > solid summer in the showrooms. americans are buying up new rs, and they're willing to shell out a near record amount of money to get them. where is the beef? that's what cattle ranchers are asking about the growing fake me movement. those stories and much more tonight on "nightly business report" for thursday, september 5th. >> good evening, everyone, and aslcome. wall street in rally mode, and it was all because of trade. the stage is set for a new round of negotiati between the u.s.

and china next month. investors view that meeng as a sign of progress in the conflict between the world's two economic superpowers and that eventually it will be resolved. trade developments hav moved the market both higher and lower inin recent weeks. today, stocks rose along withst ins' sentiment. the dow jones industrial average rose 372 points to 26,728. the nasdaq was up 139, and the s&p 500 added 38. seema mody was following all of the action from theoc new york exchange. >> reporter: for the second straight day, easing global tensions sparked alobal rally. stocks jumped on hopes that the u.s. and china will come to terms on trade. officials from the two countries now plan on resuming high-level trade talks in october. triple digits close i c best two-day rally in three months. a wide range of stocks participated in the rally -- technology, consumer discretionary, industrial stocks like 3m and caterpillar that do business in china, p ps a number of retailers that sourceuc pr and sell their products in china also got a lift, but

trade optimism can be short lived, as we've seen in the past, and that's why wall street strategists are remaining cautious.but for now, investors warming up to the idea that tensions are de-escalating between china and the u.s. tomorrow, traders turn their attention to the august jobs report, which may give some guidance on what the federal reserve will do in its next licy meeting. economists project 150,000 jobs were added in the month of august. for "nightly business report," seema mody. >> but whiut wall street breathed a sigh of relief over trade today, at least, there is stl a lot of work to be done in washington ahead of those talks when they areo begin i the next several weeks. aye month javers hasve been ng this for us all the while at the whofer. eamon is wittous ght. what is the mood at the white house and are they trying to seovide guidance on these talks yet? >> reporter: yeah, bill, they're not really providing guidance. they're taking sort of a wait-and-see approach here at the white house. the idea is, they'reoing to see if the chinese bring anything to the table, and you

notice that the two statements that weot on wednesday evening -- one fromin beijing, e from washington -li weretly different. the chinese side said d there woulinitely be talks in october. the u.s. side said there would be talks at the deputy level in septemnd then they would move up to the ministeriif level hey made good progress in those early round of talks, so no guarantee here of really high-level talks in october coming fm the u.s. side, bill. >> so, who else is the president talking to and hearing from on this? >> reporter: well, we had an , interesting visitor to the white house today, gm ceo mary barra was here. the white house not reading out what was in that conversation between the two leaders, but presumly, president trump a mary barra talked a little bit about china and trade, given that gm has such a big presence in china and a global supply chain. the president having the opportunity today now to hear from of america's biggest ceos. >> eamon javers at tte w house forte us. thanks. >> reporter: you bet. >> as we mentioned, the trade news lifard thet today,

but can you trust the rally? we're joined right now by larry adam, chief investment officer at raymond james. larry, welcome. nice to have you here. >> thanks for having me, sue. >> that is the question. i mean, investorsave really been whip-sawed with every headline on trade. how do you feel broadly speaking abt the move that we saw in the market today and whether >> reporter: well, i do think it's sustainable because i think by the end of this ye, we'll be back at record highs, and i think that will continue into next year. but i think the biggest part of the story, as you just mentioned, is that investors a need to have plan. and if you think back just over the last couple of weeks, if you'd have gotten out at the wrong times when wee w actually down because of the fears of a recession or fears of trade tensions, you wouldn't have experienced thi't most recent rally, so sticking to a plan is very important. >> what should that plan include, though? agree, you know, you don't want to try and time this market and get out at the wrong time. however, what do you invest in?

lately, the defensive issues haveueeen the strongest i this market. clearly, people are looking for safety in this market even a they look for long-term growth, right?>> eporte well, that is true. at what's happening tonight with the nfl and the 100-year celebration, you know, i'm going to borrow a reference at offense tends to put fans in the seats, but defense wins championships. and if u look at our strategy, it tends to be a little bit more defensive, meaning that i like u.s. equities over international equities, i like large-cap companies in theted states, est over small-cap equities. and then in the fixed income bonds over the more risky high-yield bonds. so that's how we're positioned right now. >> and what about the fele what if any, do you think the fed will play in this market? >> i think the fed will have a very important job in this market, meaning, i think everybody wants to talk about whether or not it's one cut, two

cuts, three cuts or more. i think the more imp story is can they cut enough times for this expansion to continue? and i think that they will b d able t that, and that's why we're more bullish on the equity markets going forward. >> you'll like the u.s. market, but what if we don't see a breakthrough i in the next month or so? what if the tariffs do continue to a go up they hamper the growth rate of u.s. companies, especially those big large caps that youe l rht now? do you start to rethink it at some point? >> we would start t reconsid that, because if you do see those tariffs go into their full amount, you're talking about earnings growth being driven down lower by about 6% or 7%, so you're right, that uld have a .eaningfulpa however, i still think that those t giffs are notng to be fully implemented. i think that they will be stponed. the president knows that it's very importanto our economy for tho to be postponed. so, i just have a feeling that

they're going to be put into ne year, or at least postponed indefinitely, a that will help e markets to rally. >> larry adam with raymond james. larry, thank you very ch. >> thank you.>> a resolution to the trade war between the u.s. and china cannot come fast enough for some lesser-known retailers because, as courtney reagan reports now, the tense economic relationship with china isnt turning a big challenge for many smaller lltailers. >> reporter: the trade war hurts businesses of all sizes, large retailers like walmart ane home depot hhe ability to adapt. it's harder for smaller and more 98% of u.s. retail companies employ 50 people or less, which means 40% of retail employees -- 11.5 million people -- work for small retail companies, according t to national retail federation. >> this is united lightwear. it's a larger, private company, employs a little more than 1,000 people with $500 million in annual revenue.

it designs,manufacturers, and licenses leear and accessories for brands including puma, champion, and echers. united legwear manufacturers in a number of countries, but china's its biggest market making 270 million pairs of >> we've moved from a model of being proactive and strategic as aompany in the last 18 months a being much more defensive and protectionistic. it's caused us to disrupt our cash flow,ur distribution center, operations, as well as our planning and forecasting forward because of the sporadic and radical changes that are constantly happening now between mr. trump and the chinese government. >> reporter: gold metal international is an accessories, gloves, hats and scarves wholesaler with $60 million in annual revenue and 50 employees. and although it manufacturers in ten countries, i china a significant portion of its

sourcing. >> this is a famil business. we're third generation. my son is actually overseas in utheast asia at themoment, and he has been f heree years. he got married three years ago. he is having --hey're expectingnheir first child cember, and the government'she trying to put us out of >> reporter: carlton's is a store in rehoboth sbeach,ling men's and women's wear from tommy bahama and patagonia and employs 50 people with revenues of $30 million. the co-owner says a 15% tarifff will increase his prices up to 25%, in order to maintain the company's profit margin percentags. percenta he expectsigher prices will lower the amount he sells, but krause is also worried about the larger impact tariffs could have on the consumer. >> my cons per's having to more at the grocery stores, at you know, the hardware stores, cetera, and then coming in here with less dollars tos and to b something that costs

more. i'm concerned about not only my business but my next door neighbor andnd others down our,m quote,ain street. and you know, the vitality of our community hingesn the success of our businesses. >> reporter: all three testified at the u.s. trade hearings in washington, d.c., asking theon administrati to reconsider its tariff licy. for "nightly business report," i'm courtney reagan in nework city. ome new reports on the economy added to the optimism today. sthe servi sector expanded at a faster-than--tpected pace in august, driven by a rise in business activity a new orders. the report gives investors a sense of business conditions for things like restaurants, banks, and consulting firms, and the services secr accounts for more than two-thirds of u.s. economic activity and it's been expanding for 115 months. and the. oth new repor this morning said that private compmpies in august added the st jobs in four months. according to adp, payrolls grew by 195,000, ave t estimates

of 140,000. many of th00 new jobs were in te ucation and healt services fields. adp is the largest processor of paychecks for thousands of companies and for millions of and then rrow, as we mentioned earlier, we are going to get the government's monthly bs report, and it comes at a time when there are plenty of questions about the health of th labor market. brian levet is global markets us to talk about that right han. that is sort of the cornerstone of our enomy -- asong as the job market stays good, then consumers continue to consume and the economy remains strong. so, tom yrow is another good indication of how we're doing right dnow. what are your expectations, >> yeah, i expect we'll see a solid number. i mean, there was nothing inas e adp report that was particularli sung, so this is an economy that's producing close to a couple hundred thousan jobs a usmonth, and that's consistent with a very sound you look at jobless claims that we got this week as ll, very

in line with where they have been. so, so far, the job market's u holdin quite nicely. some of the thingslyou'll see in that adp report is the hours worked have gone down a bit, and that toe is part of this larger picture of trade uncertainty, which has been somewhat hurtful to business investment and is slowing -- to business sentiment and slowing business investme i suspect we'll get greater clarityrom the ainistration on trade, but we'll see. >> youknow, one of the things at we've noticed is that we get downwar revisions frequently in the past, i think, three government jobs reports. does that indicate, perhaps, a >> no, wouldn't call it a dent in the jobs picture yet, but i think it's part of ath larger narrative of businesses havingha time making new hires or putting together investment plplans when they s don't know the rules of the game. so, 2019 has been this story of

better clarity from the fed, still uncertainty from the trump administration with regards to trade, so you would expect to hosee that up in some of the numbers. we've seen it in manufacturing, we're seeing it a bit injobs. the good news is, we talked about earlier,he service economy remains in good shape. i believe that everything we're seng is abo this uncertainty policy uncertainty's near its highest level that it gets. i suspect with the fed easing pocy and with the administration hopefully providing greater clarity, we should start to see a better picture in manufacturing and a better story coming out of business sentiment. >> quickly, you mentioned the business investment, and that's econy right now.laggas in this at some point, if that trend continues, doesn that eventually hit hiring as well? >> yeah, and i think -- so, you're starting to see some hints of it, but you know, remember, there was nothing inherently wrong with.s the economy. in fact, the u.s. economy was om

very f irfooting, so what's derailed us here is policy uncertainto wch has led a strength of a dollar, which has hu business sentiment, whi has slowed inves that narrative can start to shift, even if china and the united states just simply agreed to continue talking, t agree continue meeting. i believe that you would see that nartive starto change. >> bri lovett with invesco, thanks for joining us. >> you bet. time to look at some of today's upgrades and downgrades. comcast was upgraded to out oppenheimer. perform at the analyst says 2020 is setting up to be a strong year. the price tart is $54. the stock rose about 2% to $46.41. comcast is the parent company of cnbc, which produces this program. match group was graded to buy from hold at suntrust robinson humphrey. the analyst cites positive traffic on its app and revenue

trends.t the price tars $106. that's the highest on wall street. but the stock fell 4.5% to $81.74 after facebook launched its owdating service. coverage of general electric was initioded with an equal weight rating, and morgan stanley, the analyst did cite nty about some of thece company's business, despite progress on costs, cash flow, and debt reduction. price target now at $10. that stock rose a penny today to $8.81. and lyft was initiated with a buy rating at deutsche bank. the analyst there cited an improving competiti a environmen a clear path to improved profitability through lower subsidies and higher prices. price target $70. that stock rose a fraction to sell at $46.40. still ahead, why ranchers are having a c over the rise of fake meat. i'm jane wells in wie yoela, mo ana, where cattle ranche have a beef with plant-based

alternatives. coming up, why ranchers remain bullish on the meat market. ♪ the u.s. government is reportedly moving to blo california's vehicle emissions rules. according to reuters, the plan would revoke the state's authority to s its own vehicle greenhouse gas standards. anl administration officays that proposal would ensure single, national level for fuel economy standards. california accounts for about 12% ofrican vehicle sales. and despite concerns about the economy slowing, auto sales in august actually increased slightly, and buyers are spending more than ever at dealerships. phil lebeau has more.

to be a ser: this is turning out id summer in showrooms around the country. pick-ups, suvs, andcrossover utility vehicles continue to bring inbuyers. in fact, the auto wsite edmunds sayshe averarice paid for a new f vehicle in augt topped $37,000, close to a record high. the strong job market and high consumernc confi explain why americans are more than willing to take out bigger auto loans. new data from experian shows the average customer borrowed more than $32,000 in the second quarter with the average monthly payment hitting a record high of $550. the typthal loan now stretches out close to six years ve kept assembly lines running at fairly stron clips.il sales for 2019 will likely be down slightlyompared to previous years, demand is still strong, and that's filtering down to the used car lots.

slew of models have come off lease and are being snapped up by dealers who know there are plenty of people looking foror three or four-year-old model with lle e. typically, auto sales slow in september and october before picking up at the end of the year but this year, many in the auto indtry believe we could see a str around the country. phil lebeau, "nightly business repo," chicago. macy's looks to save big, and that's where we begin tod tonight's "market focus." the retailer is t aimin save up to $550illion by cutting discounts and gearing more targeted promotions to consumers. macy's also said tha it will be testing self checut lanes and devices in nmodernized for its staff to help improve efficiency. the shares rose about 3% to $15.31. g3 apparel posted mixed results, topping earnings estimates but falling short on sales. the ceo cited strong performance in its wholesale business b

did say that the retailer would mitigate the impact of e to additional tariffs. the stock spiked more than26% to $23.84. telecommunications equipment american sales andh in its north networking platform business, and that helped the company beat expectations. but sienna said its fourth-quarter gross margins wat expect to be lower than the third quarter, and that sent the sharesesown nearly 4% to $39.62. snet jewelers raised full-year guidance after easily beating analyst expectations. the jewelry retailer reported a smaller-than-expted drop in its erce platform.nd a rise in shares rose almost 27% today to $13.97. after he bell, lululemonon beat expecta as the apparel retailer saw a rise in same-sto salesnd itsonline business. shares initially rose in after-hours trading this

evening. they closed the regular session up more than 4%ha at $188.4 and the fake meat business is expanding asha grocery kroger announced plans to roll out its own plant-sed burger patties and other products, and tyson foods is investing in ang plant-based shrimp company now that makes the shellfish out of seaweed, soy protein and natur flavors. tyson introduced plant-based ago.ken nuggets a few months kroger rose a fraction to $24.83, while tyson fell a fraction to $85.26. but the fake meat n movemen going over well with the nation's ranchers. the beef industry is tryingreo fi out how to keep its market share from slipping.ro jane wells is outside wyo, montana. family has been raising cattle for five generations across montan and wyoming i some of country in ut america. >> all i ever wanted to be was a

cowboy. >> reporter: but cattle ranchers are facing a rival with a, ot of momentke meat made from plants. t mpanies like beyond m aren't much much a threat yet with revenuesf $240 million this year compared to a national beef herd worth an eimated $67 billion, but ranchers are taking notice, and they have a few beefs. >> we are not against scnce. we are not against people we jt want to make sure we're on a level and even playing field where everybody goes by the same regulatio and the same rules. -- eporter: beef numbe e meat industry is regulated stringently by the usda, but plant-based products are regulated by the fda. but if fake meat burgers cannot be eaten raw and have to be refrigerated just like meat, kevin cokester of the national beef association thinks they should be regulatedme by . >> we want to have the same inspection processes and have the consumer and public confident that those products

are r:fe. >> reporeef number two -- claims that plant-based meat use a fraction of the land to produce t same amount of protein as cattle. brett crosby says all land is not created equal. >> 90% of the land grazed by cattle has no oer productive use. >> reporter: then there's the callover whether you can fake meat meat. 13 states, including montana, have psed laws or resolutions about labelling,ll saying you can'tng call somet meat unless it comes off an animal. but perhaps the greatest long-term concern could be meat made in a lab, actual meat, not pltit-based sutes. who nds an animal? have you tried a plant-based meat? >> i'v tried them all. yes, i have. >> are you kidding me? k no. >> reporter: kidding or not, the buzz right now is all about fake meat, and the beef industry does not want to be left in the dust. for "nigh jane wells on the crow indian reservation in southern montana>

and coming up, what the national football league is doing to keep fans a hood its 100th season kicks off. walgreens and eecvsre the latest companies to change their firearm policies. the stores will no longer allow shoppers to openly carryar fi. earlier this week, kroger made a similar announcement, as didar wa which also said it would no longer sell ammunition for assault-style weapons. so, are you ready for some footonll? this se the pressure is on the national football league to as julia boorstin reports, it's banking on nnnovations to attract new fans.

>> reporter: when the season kicks off tonight, the big question is whethere the l can continue last year's ratings growth, which followedse two onsf decline. and it's not just young stars and high-powered matchups that make the nfl optimisbout the season ahead. >> we're trying to make the game keepinteresting to people's attention. we're addressing the ad breaks. we're tryinin to t e fewew breaksn the game, making sure that there's less down time between football plays. >> reporter:his year, the nfl will enable fans to watch in-market games through their local team's as well as through the nfl and yahoo apps. with only about 3% of game viewership streamed digitally, the league says it thinks that leaves plenty of room torow with audiences where they are. and toraw younger viewers, the nfl just partnered with tick-tock, oneti of the most popular apps among teens to share highlights, behind-the-scenes footage and memes. >> we're almt indifferent to where you consume the game. we'd like you to consume the game. and we also uand the media environment's much more

compet'sive. if there game on sunday afternoon that isn't as close as u would like it to be, you are one click away from netflix, you are one click away from yoyoutu, u are one click away from anything. we wanto make sure we're providing digital alternatives for you for wherever you want to watch. >> reporter: now power players are watching viewing trends as they evaluate the r tvhts that become available after the 2021-2022 seas , expected to draw as much as $60 billion up from $42 billion for the last nine-year >>deal. i think the nfl has done a good job in putting premium i matchu premium time slots to garner a larger audience, which in returh will generate a better performance for their advertisers and allow them to charge more for those advertisers to advertise on those spefic games. >> and it's not just tv rights in .play directv's deal for nfl direct ticket expires after next season and the nfl wants to offer a digital option as well, which

could draw interest from espn plus or chamazon, w is about to start streamingts third season of 11 thursday nig games. we'll see if it or other tech iants double down on mor rights. for "nightly business report," i'm julia boorstis.in los ange before we go, here's a look at the day's f talumrs from wall street. the w rose 372 points. nasdaq was up 139. and that did it for "nightly business report" tonight. i'm sue herera. >> i'm billriffeth. see yotomorrow eveveng.

woman: this is "bbc world news america." is made possible the freeman foundation; by judy ter blum-kovler foundation, pursuing solutions for america's neglected needs; and by contributions to this pbs station from viewers like you. thank you. jane: this is "bbc world news