♪ this is "nightly business report" withgr bilfeth and sue herera. >> stocks rally. earnings season gets off to a good start. d that's put investo in ying mood. health prognosis. medicare is the fastest growing part of the health insurance market atd hel united health easily top expect aches. >> beasts and boosts. j&j quarter better than expected headaches.o strong despite legal those stories and much more o nightlyt business rep for tuesday, october 15th. >> which bid you good evening abeverybody well. wall street's focus was on fundamentals today. yes there was some positiv news on trade and on the uk's efforts to leave e theopean union. but what really put investors in

buying mood was earnings, especially solid results from banks and health care companies. and that sent the broader market higher toey. dow jones industrial average was up 237 point we're back above 27,000. nasdaq up 100. the s&p added 2 2 itb pisani at the new york stock exchangea look at the ral. >> >> the dow up more than 300 npoints at the high. earnings spread optimism ona t chade front. all contributed to gains. first earnings jp morgan reported strong earnings. with you mostrn importantly the consumer sideas str with good growth in loans, deposits and credit cards. the c c jamie dimon reiterated that saying the consumerhe remas thy with growth and wages zbiend combined with spending and strong balance sheets and low unployment. united health powered the dow higher after a beat on earnings d guidance. and positive compensates from european union negotiators on

the prospect of a brexit deal that lifted markets. we kno a brexit deal would be worth sometng but it's hard to quantify. the federal reserve did sit a hard no deal brexit as a risk. a little bit of warm and fuz f feelinm china on the trade talks. the global times editor i said the friday meeting did represent a breakthrough in that boepgt sides have a strong will to achieve a deal. the global times germly considered a mouthpiece for the communist party. for "nightly business report," bob miss if he it at the new york stock exchange. a numbeof other banks reported g earnings fordman sachs it was as mixed quaer. profits fell more than expected hit by aloown in deal making while revenue topped forecasts. coumer banksing powered citi profits. the bank reportedter than expected earnings thanks to growth in credit cardnit and increase in digital deposits. and wells fargo misd third quarter profit estimates, as mortgage income sank.

eee bank has working to improve image and operating under heavy regulatory scrutiny. shares of all three banks finished the day higher. let's turn to bill stone for more analysis on bankerank earnings chief investment at alvines ient and advisory bill good to see you again. >> thankme to the con and we hear how they help the reilers and banksel now as aren't they. >> exactly, i mea it's the thing we talk about theu. overa economy. it's really the consumer keeping things together, because manufacturing is you know -- you guably in a recession. seeing a lot of the similar things on the banking side,as n uch m demand from the business side. but the consume see to have no real cracks in it yet. >> you know, wells fargo is kind of a se issue. they've had issues that they've been dealing withor some time. but i you put wells fargo aside, most of the major banks ha someretty solid results in investment banking, and also in some cases trading as well.

>> that's true. i mean, you know, the investment babyings was pretty good. there are specifics like goldman sachs dn't do as much mergers and skigss business but still ranked number one. i want moresike that busin didn't have a big quarter. you're right they did a decent job onenn theal for those involved in the capital markets as well. zblos you have favorites in this group right now? >> you know most of it's interesting. just happens to be we do like jp morg quite a bit. you're talki it looks very inexpensive. certainly has apo broad folio. and then you also get a dividend say waiting or whatever you want to say and looks very i secure. ink actually a lot of the names we talked about. we do like goemd despite the transitory issues in earnis this quarter. >> could the fly in the ointment be be the trade situation in i based so the international

economy may not impact them quite as much ast would otherwise. but what about trade?>> yeah, i mean citi has moree international exposur we liks that as wel happens to be. but the interesting thing is y y are right. the more the iss is trabl and global economy if you see a slowdo and that weighs on the u.s. economy, that could be the fly in thent oint we have some sort of recession that kicks in, that's certainly hurting the banks. we think ner in a better exalt position it's not the severity gyou saw in theat recession. but that's kind of the worry that i think is probably holding them back. we don't think there is a recession imminent. so i think to do think there is attractive nips. >> quickly it doesn't help the fed is cutting interest rates right now either, does it. >> that's the hard part. the yld curve is very did -- you know, the difference what they get deposits and lend out has a small differential which is what the make extra money

on. that's part of theeadwinds you'd have to say for the banks. >> bill stone with alvin havestment advisorys for joining us. >> thank you. a solid quarter for johnson & johnson. the company rorte better than expected earnings and raised full-year forecast. despite being embroiled in legal fights. the quarterly results sent the st more than 1% in trading. meg tyrrell hass. the deta >> third quarter results that blue away wall street expectations offer investors in johnson & johnson a brief respite from a onslaught of legal headlines. sales and earngs topping timates of alystselped to buy jen j&j frmzle and despite zpiel the best knownrands likee tylenol and band aid were in >> w see gat momentum for the baffle the year we think that 2020uts us into >> even as the stock rose analysts noting the overhang of

litigation. assi june 30th&j faced lawsuit from more than 100,000 plaintiffs over everything froi to talc powders to hip replacement systems andultiple jen. judge drugs. the company was hit with a $8 billion punitive damages over the drug risperadol a legal experts they expect will be overkurnd. in august they lott the state of elbow case in the role oh in the opioid crisis and ordered to pay $57 2he company c reached a $20 million with two ohio accounts to avoid the first federal opioid idtrial, scheduled to stt next woke in a major question settlement can be reached among all plaintiffs and defendants in opioid litigation. >> our drugs were less than 1% outstanding opioids. all we want to make sure that it's in proportion. but where it makes is sen for all stake hoermds we will look bor a zmmt. >> what j & j reputation

as it takes on legal battle sns it's something cfo joeolf say they watch close glow i. >> most dpierd list we're in top 20 we alwaysspire for number one that's what the kbaes are motivated by. engaged to do, so we monitor th closel and i can say we are still -- the expects expectations around our can company are still the same and we're continuing to doe that and focus. >> with w j & j stock tailing trailing the s&p by more thange5 percenoints wall street seems not so sure. for nightly business report, i'm meg tirrell. >> we should point out tt $$572 million judgment that meg mentioned against the company has just been reduced. the judge conceded this afternoon that there was a $107 million calculation error. he said that will be the last time i use that calculator. i and the a report tonight also that they -- the three major drug clikters

mckesson and cardinal heth and bergen are in talks t to pay $1 billion to is settle opioid litigationve j&j is inv in discussions to kibet ney. manufacturing activity in the new york area picked up in october as optimism over business conditions improved. hiw orders showing small increase as didltlt which just recently hit its lowest early three years. and the international monetary fund food is predicting global economic growth will slow 2008 financial crisis.ince it now sees 3% growth overallfo the global economy. 2.4% for the u.s. and 6.1% in china. acrdg to the group, a sharper than expected slowdown in international trade is affecting manufacturing and investments. one factor are the rising trades barrind the continuing trade tensions but

couple of other factors which is kind of country specific factors and eece paging market and developing economies and structural forces which is low prodtivityrowth. aging demographic and advanced econy. these three are possible. >> the imf add to doould darken more if tradeor tensions remain unresolved. largest economy show it faces a numb of challenges.ge eunice yuan in beijing >> more evidence of a weak producer prices fell in september by their fastest pace in three years. two to sluggish demand and falling energy and raw material costs. most analysts believe china will roll out further stimulus as t early as month. consumer prices spikedpy the mostly because of pork.ars china a pig population down 41% of africanwine fever.

the pork shortage pushing up prices of all protein here. the foreign mindtry s today that china would accelerate the purchase of u.s. agricultura products. but the state media has still barely mentioned0he billion purchase pledge that came out of the trade talks. the communist party papered the global times referreth t purchase but as as tense of billions of dollars and pointed out tha the purchase could be fully achieved as long as the twsides continue to maintain an and expand consensus. in other words beijing fales the purchases are still the bargaining chip and will hold back even though it needs the food. for nightly business report, eunice you know. time to look at upgrades and downgrades. begin with shares o lowe upgraded from overweight from neutral asset piper jaffray the analyst citing lowerarj mortgage rates. price srget $130. thck up 1.5% to 112.42.

d bath and beyond was upkbraded tooegt weight from sector weight and key bank. the merchandisingnd operations that he is expectsed to bring. the price target now$18 despite that upgrade though the stock fell more than 2% to a 11.99. >> blumen brands downgraded to hold from buy at daich bank wab the the analyst citing the l overall lr casual dining dustry niepow price target,, e stock fell to 179 ho 17.97. democratic hopefuls take the debate stage tonight, the economy will be in the spotlight. ♪ ♪

♪ there are reports that general motors and the uaw is closing in on an agrment ending the 30-day labor strike. while a final has not been announced, it's within widely t reportt the auto maker and union have agreed to terms on most issues. the strike has cost the auto maker an estimated $2 billion. united health group topped earnings estimates they raised the 2019 forecast and offer a glimpse intoext year's well. the largest u.s. health surer said it's raising the long-term earnings kbroegt target to between 13% and 16% in part medicare business.h in the the results are a relief to investors. hee been concerned about increased scrutiny in washington. over health care costs. shares of the company climbed 8% making it the best performing stock in the dow

medicare is a business big not just for united healt group about but other private you arers as well and many expand organizes. bertha coombs look athat some call a hot market. >> guy penny has been on his wife's health insurance for years but now he is turning 65. >> people come out of woodwork to >>contact. ou the sacramento hair stylist has been deluged with medicare plan offers. he is leans toward a med i gap supplemental plan but isn't sure. a little scary. you wonder whether or not you get theest for you, you know. becausehere is so many different ones. >> with 10,000 baby boomers a day aging into medicare. it's becomingec the fastest kbroeing segment of theme healt insurance market. >> the health administers expects medicare advantage plan growth could top 10% nextier prompting insurers to respond. >> cvsealth aetna unit moving

to more than 260 new markets. united health ca will add 100 new hedges and humana more than 2 dozen. the trump administration has given insurers dpraeter medicare advantage plans with additional benefits that go yond traditional med i gap coverage. ranging from free gym memberships vision and dental to help with home care. >> there is more alternative. and there are more benefits. it's a net positive if you get but the also more confusion and a little bit more stress for the senior trying to get them into the right plan. >>or insurers those all in one plans can be lucrative if they can cope members healthier and avoid costly hospital stays. that's the goal of medicare advantage up starts like oscar and global health funded by google ventures and global health backeaac d.c. firm. >> there seems to be a lot of potential value for the venture capital capital companies. when you think about it they

invest inhese insurance plans for seniors rather than investing in other types of products, likebiotech or health care technology. >emocrat hoechls bernie sanders and elizabeth warren have called for banning all privatensurers. but an nbc/wall street journal poll found 56% of voters oppose the ideva >> p plans have a very lebron james wall uhe current address medicare system. >> and boomers like guy penny like the optionssven if i hard to make a choice. >> what helps out is the fact that i kno next year at this time i could change it if i didn't like it. >> med kirnnual enrollment t for 2020 rhrough december 7th. for nightly business rtre berth acoombs. >> for those look at you ta medicare confron coverage now the time to make decisions for nextier. sharon epperson joins us what you need to mow for the medicare opennrollment period and how can you save money. you reported in the past that the average couple retiring this year is expected to a pay about

$285,000 in health care related costs over the time of their retirement. even if you do quali for med sir. so what determiow much you're going to spend here? >> reallyhat determines how much you spend on health care is how healthy you are. it see to make sense if you have a krnic illness, multiplee prescriptions that you must take this is going t increase the amount you spend. now is the time to figure out how much you may have to spend in retirement if you are not alreadyif retire the. ou are retired chaes whas changed sno? how has the health status changed fromast year that may sbangt you want a different choins choice f medicare. depending how old you are if you are not 65 as pointed out you have to pay for this with a own.ur insurance plan you need to figure that out a the retirement income, the high are that is the higher premiums keep that in mind for original medicare in particar. >> as we menti this is ope enrollment time where you can make changes if your coverage. and maybe your prescription dg plan as he will. but what are the different

dicare optionst te out there at this point. >> this alphabet soup is what sicks people because there are so many different parts. we start with the hospital visits. that is part a. and that is free from the vernmena. in the ori medicare. part b is outpatient visits. you mth have a m premium you will for that. and then medicare vant advantage as berth adesibed is a managed care plan the are various ones from private insurers to compare on medicare.gov toee which is best. part d is for prescription drugs and that again is what you really need to be looking at now during open enrollment to see if there are chaes a c if you canan lower the premiums that you pay fo that coverage. if you need some type much implemene insurance a med i gap policy can help there. but many people say let me see if i can look at medicare advantage zpl i don't know if thnse is anr. between the co-pays and the premiums and all and auto out of pocketxpenses how do you try and lower your o costs? >> well, do some of the things you do in the insurance plan.

look at the network make sure it's in network ifou do the medicare advantage plan. think now about contributing to an hs pretaxoney goes in use formaker expensexphat is may not be covered by medicare. at's something to consider if your spouse is not yet retired anre they can put the money in the hsa for. >> you sharon epperson good to see you thank you. >> thank you. >> the assets nearing $7 trillion where we again the asset management firm receiv about $85 billion in new money in the latest quarter. as the company topped wall street expectations. the blackrock saw investors shift money to the fixed income funds and cash managemt units. shares up more than 2% to 444.45. sharls e schwab toppimates thanks to higher trading value and growth in the asset management and administers fees but onlineroker said it is still concerned about a global trade and a st economic outlook. schwab rose more than 5% to 39.74. abbott lov is buying back

an additional $3 billion worth of shares. separatelyhe company said it's team up with tandem diabetes care. explore new ways to improve diabetes management options. the shaors rosethan 2.5% 81.98. >> canadian companyecorded mix results. it turned in a profit when wall street expected a loss. but revenue came in below expectations. afria refied theull year outlook. and shares rose morthan 24 peart 5artoday pifrmgts then after the bell tonight united t airlinped estimates but revenue fell issues short. the airline experienced flight reductions to hong kong and mcin the latest quarter. but united was ae to raise its full-year outlook. initially shares ricing in the after hours trading on top of the closing regular session they were up about 1% to 87.88. >> democrat presidential hopefuls take the stage in ohio

for a debate. economic issuesxpected to be a major focus. john harwood inil westerlun covering the story tonight. how do we expect thent f nners joe biden and elizabeth elrren to difference thes on the economy. >> well, it is a new situation in the race now that warn is cofront runner with joe biden. it's a classic center versus left matctcp between the two front runners. and it's built largelyround theundamental changes that elizabeth warren wants in american capitalism. break up b ch. new rules for corporation. we taxes i would expect her to make let case that those are sensible changes. joe bidden's point of view is that they're not practical, that they combo too far but he also of course has other tothry this this debate tonight and that is to make a forceful p response tsident trump over the attacks that trump has been making on him and his son hunter. joe biden will makeas the that that shows the president of

the united states is scared of me i'm the best ableo take h out in 2020. >> bernie andreas is eheected to be tonight. what role will he play in the campaign now with his healthe issues and is -- he has been a differentiatorbe with eli wheren on far left as well. >> it's an important moment for bernie sanders to try to show he is back in the race, that he can perform with vigor and energy at 78 years old, having had a heart attack. but it's interesting that the way he t chose contrast himself in the last few day was warren is to say she is a capitalist, i am not that may help him hold his base h which been dwinining. but injury it's also beneficialy to warren because she can portray herself as in the middle between bernie sanders on the left and joe biden in the center. >> very quickly can any of the others break through on theom ec side of things on the arguments there? >>hey're already troying. pete buttigieg has an ad up todayftoing elizabeth

warren and medicare for all for the issue that bertha coombs raised ment a a that it would get rid with private insurance. kamala harris differentiated frerz the front runneayg she embraced med kir for all she wants to preserve ae ror privateensurers look for that a a contrast. >> thank you so much. john harwood in westville, tifr. and coming u next chapter, a popular video game goes dark but now we know why. ♪ ♪

f ially todaywas a gaming cliff-hanger. the wildly porp fortnite, suddenly went black on sds sunday, leaving the 250 plion playyers arp the world wondering what happened but iles been c up. >> here is josh lipton. >> fortnite fans can breathe a sigh of relief. as the pgame'ste company dhat owns the mash hit has now formally launchehapter 2 of the game. fortnite boast 250 million registered playern and raked i an estimated li $2.4on in revenue last ear.more than any other single title. fortnite is free to play. but makes money when game esper purchase digital items like weapon o weapons. fortnite had been donn since sunday. players trying to enter the game simply saw this. a blank screen with a a blackle but this was no error analysts

say. instead, tdy emphasi that this was a bold marketing strategy. designed to i generaterest and excitement about in new version. the decision tohut down the game cost epic an estimated $7 million a day in lost revenue but also sparked a ton o at a time when there are signs that interest could be ebing. piper jaffray in recently survey of teenagers foundy 37% said t played fortnite, down from 53% from the spring. though demand can fluctuate depending on seasonality and wh games are popar at the moment. still, analysts say if chapter 2 rejuvenate intert.it and pose p challenge to rival games like electronic arts a apexegendings. fortnite's porpt could slow momentum for the latest iterition a of cull of duty launching next we can opinion for nightly business report,

josh lipton, san francisco chlts before we g a another look at the numbers on wall street. the dow rose 237 points to close back above 27,000. the nasdaq up 100 and the s&p 500 added 29. and that is "nightly business report" for tonight. i'm shoe sue herera thank for joining us. >> i'm bill griffeth. have a great evening. see u tomorrow. ♪ ♪ ♪

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