this is nightly business report. >> volatile streh, the third arter saw trade clashes and recession signals tha highs. how smaller companies are helping regulators understand just how dominant big tech can be. finding fincial aid. have college bound kids do you? it's time to fill out a key form if you want to receive any assistance. those stories and muchore tonight on nightly business report for monday september 30th. good evening, everyone, and welcome. well it may be the start of the week but it's the end o month, and the end of the third quarter. a period that was defined by

trade tensions recession concerns interest rate worries and nowolitical drama. despite it all, stocks stayed steady. let's run through the numbers. today on the last day of the quarter, the dow jones rose 96 points to 26,916. the nasdaq added 59 5 the s&p 500 was up 14. for the month, all of the major averages were higher. and for the quarter, the tow and the s&p were up, but the nasdaq dipped slightly. now comes october, a month that historically is volatile. and the next big hurdle earngs. >> for the third quarter officially out of the way, the markets are still on track to end the year strong. investors are going to be fixated on the next big catalyst and that is earnings. this next great earning recession fear that dominated the first quarter and the fear that companies would lower earnings expectations in the

second half of the year because of the tariffs and trade wars none of this has ever come to pass. earnings have heldel steady and remain roughly flattish for the second quarter, second quarter. now the third quarter, showing a gain of less than 4%. that's a big improvement i over the last three quarters. >> the two biggest issues that would earn the needle in earnings are unresolvso. the first is trajectory of t tde talks are we going to get more or less tariffs in the t fourth quarter and the federal reserve, are they on hold when it comes to rates or are they not on hold? while there's been no wholesale attempts to lower earnings in a big way, we see a couple troubling trendsre emerging. 13 of those 14 companies have had their estimates for the fourth quarter come down. that's a high percentage. north of 90%, it's been very notable downward from some

important bellwethers. they're seeing big downward positions even in the third quarter. estimates have come down 20% for this as a group since july because excessive production of oil is keeping oil prices low. that's somethingo keep an eye on as well. for nightly business report, i'm bo posani at the new york stock exchange. >> joining us now, chief investmentfficer at janney, montgomery scott. >> certainly no shortage of things to talk about, as we look at what is the most volatile month of the year for wall street. what's your outlook? bob says flattish earnings are coming our way. what do you think? >>y, that companies tend to guianies a little bit lower and the beat ratio comes in around 75% plus or minu which generally mns that over the course of the earnings season earnings tend to trend

higher than original estimates. right now, the negative 3% level looks daunting. i think investors are going to start to look towar fourth quarter in 2020 earnings estimates, so much of that is going to be predicated on conditions. globally as a relates to trade as well as growth. >> given that this earnings season w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w

w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w wnow, even as ener a prices start to come down again right here. >> one would have to be a pretty hard contrarian to wade into energy stocks at thisjuncture. they've done nothing but disappoint here so far thi f year. that said fromth a valuation perspective, there's two deviations so far this year that would suggest to us perhaps they're bombed out o sufficiently. particularly if investors bome more confint that elevated energy prices or a geoolitical risk premium as a consequence of the attack on the saudi arabians until they could lead to higher prices in the future. >> how much of what you just laid out for us do you think is already in the market there is a lot of headline risk as bill mentioned earlier in the market. do earning trump that or not? >> frankly, sue, i think it'ss

the macro economic issues that trump earnings at this juncture. we've kwn for some time that earnings were going to face some comparisons, because 2018 earnings were so strong. we're seeing t base of that fade in the fourth quarter of this year and for all oor 2020. if we would get a resolution or at least some perm nance to the na and the u.s. and we dedetect growth. that could be enough in the absence of third quarter earnings improving to be thempro driver for stock prices going into the end of the year. >> mark always good to see you. thanks for joining us. >> part of the aren't market traded higher today was because wof slightly positive economic news out of china and optimism out of trade talks. in a statement over the weekend, the treasury departmenttmaid the white house is not considering blocking chinese companies fm

listing shares on u.s. stock exchanges. as you may recall that report was one of the reasons why stocks fell on friday. and the chinese government had something to say about ibo here's eunice eun in beijing. the foreign ministry criticized reports that the trump administration could be limiting u.s. investments into chinese firms by saying that any decoupling of china and the u.s. would harm both sides and cause instability in global markets. analysts say it's not clear how damaging those restrictions uld be in any case. foreignnvestors generally play a small role in domestic stock naet has been trying to make its markets more attractive. separately china posted more data that surprised the up side. analysts say the stronger orders were likely due to seasonal factors, possible front loading and government stimulus. the numbers came one day before china celebrates the founding

anniversary, expect the military hardware parade and an address by president ping. investors will be looking for any clues on his speech in china's policy in the west elsewhere, senate majority leader mitch mcconnell said he hopes the u.s. and china do reach an agreement on trade sometime soon. because he said the trade war has hit america's heartland especially hard. >> it's been very tough on american agriculture. and a you know my party is very deeply based in rural america and small town america. so i h president can get a good outcome here the chinese have been stealing our intellectual property and not playing by the rules for a long time. i admire what he's trying to do i hope we can get aet conclusion of this sometime soon. because ral america really needs it. >> $19.5 billion in u.s. farm goods were exported to china in

2017 that figure fello about 9 billion last year after agriculture products were made more expensive by tariffs. senator mcconnell said farmers would benefit if congress passed the new nast tafta, which is called usmca. the centralbank's acmmodative stance is a good one. but more cuts could be needed. charles evans considers himself open minded when it comes to policy. and said getting the fed's inflat n rate of 2% has been a challenge over the last six months. oil prices fell sharply today on reports that saudi has fully restored its production capacity following those drone attacks on those facilities earlier in the month. the attacks had knocked out more than 5 million barrels a day of saudi crude. price of domestic crude her in the u.s. settled at a one month low. boeing plans to sharpen its

focus on safety following the grounding of its 737 max plane. the announcement comes as the company enters a critical time of year. phil lebeau has been following u the story for us all along. boeing ceo is increasing safety protocols. how significant are the moves? >> the moves are significant considering the facthat what boeing has gone through has exposed a lot of flaws in the process of developing and building aircraft. the fact that they're going to be taking aak gater focus, and people can step up if they see a safety issue, that's going to g help in the future it can't get worse than it has been for boeing. keep in mind this comes as people continue to question what was being done as they developed the 737 max. the most recent report over the weekend is that this was a plane that as they built theilitary version of it it had safeguards that were not applied to the commercial version. it's just one more case where people.

and y can bet they'll bring this up when they question dennis mullenberg in washington, d.c.. >>his is the start of the fourth quarter. boeing hoped the 737 max could return to service. yes, no? >> they have a lot of hurdles they have to clear. they have to do a recertification flight i get no indication that's going to be happening any time soon. en they have to ask for the regular t lighters to approve the max going back into service. then they have to prepare all these grounded max planes. just can't flip a switch. that's going to take anywhere from 20 to 40 days. a lot of things have to appen if the max is going to fly by the end of the year. >> you're a busy guy these days. you have a huge strike on your radar? >> they're still talking. re everyone says they're making progress. i get no sense we'll see a deal

coming any time soon. the uaw workers have been without work they've been two weeks without work they missed a paycheck on friday. they're now eligible for strike payments from the uaw. that am coulds out to 250 a week as they start too get those this week. that will help a little bit. that's nothing compared to what you're making if you're on the assembly line. >> indeed. it's interesting gm shares have not suffered over this time frame. why is that do you think? >> if we see inventory drop off, especially for pickup trucks, you would see the stock suffer.the >> phil lebeau thanks as always phil. >> you bet. >> time to take a look at today's upgrades and down grades. shares of bed bath and beyond were outperformed. the analyst cited the potential for earnings to stabilize over the next couple years. stock price target now, $16, shares rose 7 1/2% today to

10.64. united health care and humana were downgraded to outperformed. that analyst cited uncertainty nt and future impact on health ca policies. the stocks moved in opposite directions today, united health rose, humana was down. apple's price target was hiked to $265 at jpmorgan. the analyst seized sentiment on the stock, they have an overweight rating on the stock, the stock was up 2% to $223.97. newe brands was upgraded. the company is on the verge of a turnaround. the price target is $25. and the shares gained more than 2 1/2% to 1872. still 18ahead, bernie sanders has a plan to tax corporations and address the pay gap between ceo's and workers.

we work has pulled its ipo. the start-up formally announced it intended to go public last month. it revealed big losses and a nfusing corporate structure. then came weak demand f f its ts stock. last week weworks co-founder and ceo stepped down and gave up his voting power in the prhe ipo has been shelved. forever 21 has fed for bankruptcy. the fashion retailer that hel

popularize fast fashion has filed for chapter 11 protection. they would cease operation in 40 cea countries and close up to 178 stores here in the u.s. forever 21 plans to continue to operate its website and simplify its operations while going through the bankruptcy process. the store was not able t keep up with the shifting taste of younger consumers. a judge today dismissed a lawsuit brought by four states that challenged a provision of the 2017 tax law that capped state and local tax deductions. thethudge reaffirmed that act. under the constitution he said the states did not show the cap constrains their decision making process. senator bernie sanders has outlined a new tax plan that targets corporations. the aim is to narrow the gap between what they pay their top executives and what they pay their workers. robert frank has the details..

>> bernie sanders announcing it is time to send a message to corporate america. if you do not end your greed and corruption, we will end it for tiyou. the tax would apply to companies worth more than $100 million. where the ceo pay is at least 50 times thesedian salaryf the workers. it's a sliding scale with a half a percent tax. sanders said it would raise abou $150 billion a year. now, the companies that would be hardest hit are mostly in retail banking and restaurant chains since they have large workforces of lower paid workers or they hav operations in developing countries. mcdonald's would pay an additional $110 million in taxes last year under the plan while

walmart would have had to pay an attentional 800 mill jpmorgan chase would have paid $1 billion more in taxes. some of the other companieses with large p gaps include chipotle coca-cola, dollar tree kohl's and the gap. the plan is more political tn practical. >> there's a difference between campaigning and governing. ceo pay. i think as a practical aspect.ract >> the taxes made possible by recent sec rule. that requires companies to disclose the pay gap. there are no set rulesor how es companies have to calculate the median pay. like any tax, companies would probably find ways around it. for nightly business report i'm robert frank. four industries dropped the hammer and that's where we

begin tonight. thanks to lower costs in north america, the company missed on revenue due to sluggish sales. investors seem to be focusing on that bottom line number. the shares dropped 16% to 56.64. an extreme drop in egg prices hurt the egg producers sal which led s a bigger loss than wall street expected. egg prices have dropped by as much as 40% in the past year due mainly to an over supply that started in early 2018. calmain stock dropped to 39.96. seattle genets says a bladder cancerbl screening test showed a 70% survival rate when combined with keytruda. shares rose more than 12%.

>> wall greens is joining cbs. the fda continues itsts review after an online pharmacy cited w levels of a chemical that uld cause cancer. cvs and wall greens shares rose. sanofi was up a fraction. antitrust investors are worried google may have an urn fair advantage. the house sent a letter earlier in the month asking google if it would collecthe data from any commercial progresses. the shares fell a fraction to 1,221 1,221.14. google is not the only company under scrutiny these days. as regulators investigate their dominance, they're calli smaller companies to better understand how much power the

big ones hold. >> technically by appearing in this interview, we can get in a lot of trouble. >> this is another one of my favorite guys. this is shlomo the animals, a construction toy called brain flakes even kick boards. where did he sell all of this? >> in 2018 98% of our revenue ca from amazon. >> in a post on medium that gives amazon nenormous power over his buness. and ultimately harm's consumers. >> if we're caught selling our products for less. we sell theml on amazam amazon will actually suppress our listings in amazon search which tremendously hurt sale. what do we do? we end up raising prices on our other marketplaces to match amazon. >> that caught the aention of

the ftc an investigator reached out and hart spent an hour on the phone with him. >> it's hard to fin f someone who's willing to speak t up about an issue when it comes to amazon people are afraid to speak publicly. >> regulators appear to be casting a wide net. they've reached out to snap in the case against facebook. the sourc tells us the justice department has sent a subpoena to duck, duck, go. other google rivals like trip adviser and yelp say they' t nally being heard after trying r years to get the attention of u.s. regulators. >> it can't be one squeaky wheel raising this issue. it has to be lots of players who are talking about these issues in order to spur the government to take action. >> google says its services help create more choice not limit it. amazon did not respond to our request for comment. for heart, speaking out publicly violates his contract with amazon. and means he could end up suspended from the dplatform.

>> going into chrichmas, we're going to hit over a million dollarsr at least get really close to it in inventory. what h pens to the business if we can't sell i november and be december? we're a toy seller what are we going to do with that inventory? it's going to be a long haul from that point on if we were to get in trouble. coming up it's time to start thinkingbout college financial aid. a confusing process, but it doesn't have to be. california's governor has

signed into law, legislation thatllows college athletes to be paid. they.an now sign endorsement deals androfit from their name image and likeness. analysts say it could transform the economics of college sports. the ncaa which is the governing body of college sports strictly prohibits athletes from profiting in anyway. many expect the new law to be challenged in court. the fall semester may have just begun. but for college bound high school seniors and their parents, now is the time to figure out the next school year. startingtomorrow you can start applying for student loans and grants. sharon epperson joins us to talk about this. >> state aid, private

institution aid. when you look back at 2018 statistics $122 billion in aid was awarded because people filled out this form to about nearly 13 million students and 6,000 colleges participated. there are a lot of schools that are participating in this. a lot of students participating in this and their families the key ishe whether they're going to fill out the application, it's when they fill it out. that's going to be key. >> when do they start? >> tomorrow. october first. the earlier you start, you may be more likely to get aid. don't wait until your child gets into the school you have to figure out how to pay for it before the acceptance coe this is work study and loans. you want to make sure you fill that out. >> and because states and private institutions are using

the form. >> what do you need to bring with you as you're filling out that form. >> make sure you have your 2018 tax return. that's the one we'ring looing at. yo don't need an i.d. so you can go on to the department of education website. and a record of your assets and bank and brokerage statements. know your retirement accounts will not be counted for financial aid. >> h is information really used or processed to determine how much aid you can get. >> they use it to figure out your family contribution. and the key there is t make su that you include your assets as well as your childs to know your assets are not counted as much as your childs. it's not the same as if you're putting all that money in your kids name. i'm s g'md that's past me now. >> you can hold my hand. >> we're holding eachh other's hands. >> we are. >> thank you. always good to see you.

here's a look at the final numbers on wall street the dow rose 96 the nasdaq added 59. for the month, all of the major averages were higher. and as for the quarter, the dowhe and the s s 500 up but the nasdaq dipped slightly. that is nightly business report or tonight. i'm sue herera. >> i'm bill griffith. have a great evening, see you tomorrow.

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