♪ >> announcer: this is "nightly business report" with sue herera and billriffeth. double whammy. bad news for boeing and johnson & johnson drag stocks lowso and take the dow with them. >> piece p of the action schwab wants to off fractions of shares to investors does it make sense for you. >> the hunt for yield this week's monitor has a trio of namel he think h do wel in the lo interest rate world. those stories and more on "nightlyusiness report" for friday, october 18th. good evening, everyone. and welcome.ca it a dow downer. stocks sold off today after negative news from a pair of dow components dragged things lower.

the loss on the dow trying reported by and comprised mostly of boeing and johnson & johnson. first the final numbers. dow lost 25 a to 26770, the nasdaq dropped 67. netflix a big looser there. and the s&p 500 dropped s dropp 11. j&j dropped 6% after the company recall a single lot ofaby powder after an fda test found traces of asbestos. the one things got going south, boeing, fell 7 peppers after routerse rereuters rorpted the company misled the f.a.a. about the grounded 737 max. what happened, here, philsu >> reporter: we are talking about the former chief technical pilot at boeing. and emails which we have copies and instant messages we have copies of those both sent by the f.a.a. to congressional committees looking into the 737

max. we're n readi all of them. but in november of 2016here are two instant message nas certainly raises eyebrows on pitol hill in termsca of what the former chief technical pilot had to say. he writes a coworker, oh, shocker alert. mcas. remember mcas is the flight control system at the heart of the issues with the 737 max. mcas is now active down to m2. it's running rampant inhe sim on me. the sim meaning the simulator. again they're in the process of workin the software for mcas. this is the development face. a couple of messages later. he writes the coworke l id to the regulator then he puts in parent these he is unknowingly. we reached out to the pilot for mark fort ner. davi gearinger asidesde said if u read the chat it's obvious there was no lie. the simulator was not reading

right and had f to beed to flyly like the real plane markeace career at air force, boeing, was about safety he uld never put anyone in an unsafe plane. all of in couple weeks before dennis muilenburg, the ceo off boeing will testify in front of a senate committee and house committee on capitol hill. you can bet the messages and emails he will be asked about those. >>ut what the f.a.a. is upset about, phil is that boeing apparently uncovered the messages months ago. >> right. >> and only gave them to the f.a.a. yesterday. >> right and if all revolved around the question of boeing did sharehe these with department of justice which is conducting a criminaln investigat of both boeing as well as the department of transportation and faa. the question becomes should boeing have relsed these to everyone? or was boeing acting at the behest of the department of justice? that's unclear at this point.

p yeah. >> but certainlyple are looking at this and saying, what did they know and when didhey know it. >> ectly phil, thank you so much. il lebeau in chicago for us. the biggest gain ner the dow s coca-cola. the beverage company beat expectations thanks to a bounceback in soda demand especiallyor the coke zero sugar brand shares ropes almost 2% on the day dominic chew nn theumbers for us. >> for coca-co less i more at least when it comes to calories. the linon-alcoho beverage giant reported earnings on friday that matchednalyst estimates but sales were better than expected due inon part to sr sales of low to no calorie drinks. as well as growth in drinks and small are can sizes. something coca-cola ceo james quincy highlighted duringig the company's earnings call with analysts. >> in addition to great marketing campaigns, consumer centric innovation has been a key factor, especially over the last few years.

in includes smaller pack packages suchuc mini cans growing at a rate of more than 15% year to date in the u.s. it includes lower and no calorie befrpgs that helponsumers moderate sugar intake. >> more broadlyak speing in re key products showed modt gains with positive performance during the quarter in rk spaling soft drinks. juice berry and plant based beverages. water and sports transition and teas andfe c. the broad base strength is part of the reason is raised ea fullforecast for organic sales growth, growth that doesn't factor in currency exchangees rat or the effect of acquisitions. the key for coca-cola is whether por not it keeps the moment up. it will rely on the kohl routeo ofcola energy, the company's first branded energy as well as coca-cola ps coffee, a premix beverage of the iconic coala and coffee rolled out in 20 mamaets globally. investors will be watching

closely to see if those results can help the stock catch up wih competitor pepsico which has outperformed coca-colala so farn 2019 as well as or the past 12 months. for nightly business report i'm domiasc chew. night steve liesman told us the federal reserve is contemplating pausing interest ratets. a lot of that depends on economic data but nowteve tells us the fed will watching corporate earnings and wha the tell us. >> the fed has a data problem. it's meeting innder two weeks but several critical economic report like the jobs report and closely watch surveys of manufacturing and services doesn't come out until after the d issues its decision. what's the fed to do? in this case it might want to watch corporate earnings more closely than normal. next week is the pk of earnings season with more than a quarter of the s&p 500 seto report. earnings from household names like ford, lacaterp mcdonald's and amazon can help

the fed aner tu key questions first has the u.s. consumer remained strong dmiepd the broader economic slowdown and second is the trade war hurting companies and leang investment cut back. businesses fixed investment has slowedce notably s last year. exports are contracting year over year basis. an indicators of manufacturing activity are weakening. global growth estimates continue to be marked down and global disinflationary pressures cloud the outlook for u.s. inflation. >> fed vice clair clarida said they're makingee decisionsng by meeting. there is some chance the fed pausing i cutting rates after the oober meeting or cuts rates one por time. compounding the trouble president trump and xi could meetn chile two weeks after the fed to hashut trade and the outcome is uncertain. earning case provide help but there is no help in figuring out

what t t wo presidents decide on trade. that's arguably the most critical issue affecting the outlk wherehe fed should set rates. for nightly business report, i'm eve liesman. >> the trade issues that steve referred to seemed to haven thatountry mace economic activity ce in below expectations for the third quarter. continuing a slowdown that we have seen there this year. eunice yuann beijing on what it means. repare for chinese policy makers to roll out more stilus and do it soir. quarter gdp missed at 6% because of weak demand overseas at home. w the trade war l also weighing on factory output. september data showed a rebound but sluish demand a uncertainty over the trade deal threaten the outlook. even the stasks bureau sounded gownward pre a complex d serious situation and rise in external uncertainties. the bureau said chi p to front load special local government bonds earmarked for 2020o this year to kee

china's economy steady in the fourth quarter. despite the weak data, china looks let's less willing to make concessionsn a trade de. course sourpss close to the trade talks told mona it could includnges to ipr and the financncl sector since the chinesms see these ref as extension to existing chinese policy but officials rps exiting committing to specific targets on agricultural purchases. and apple ceo tim cook is in town featu on state tv today attendingin university event with vice president. china. to the china school events.comes he met with thehief of the rket regulator where the regulator said the two discussed expanding invgtmen inhina. the visit comes about a week after apple was criticized by stat media for an app that allows hong kong protest tors track police. ape has pulled the app. for nightly business report, eunice yua in beijing. on anotherfr trade t, tariffs on european goods went

into effect today. and one sector bracing for impact imported specialty foods. as raheln sullivaells us shoppers could see the grocery bills go up in time for holidays. >> reporter: startin today the feherty premium food s itemsuch as french wines and italian cheeses could come at an additional premium. european produce like sisle yan clementon tysons skdish oil and scottish cookies. >> this isn'tious gourmet foods that's expensive and appealing for the 1percenters. >> t tarfs are 10% for . european planes and 25% for agricultural goods and following a decision in early october when theorld trade organization granted the u.s. permiion to tax annuallyn $7.5 billorth of european goods. this is after it found the european union providedllegal subsidies to airbus.

the tariff nowrm forcing g grocers to question how much this they can eyebrow absorb and pass oo the consumer. >> we have to look hard at all the items and tak it on a cost by cost basis. we're hopeful that the suppliers appear the distributors and all those guys will help pull back a >> for customers at king's food market in new jersey, the reaction isix. some say they would be willing to pay 25% more for the favorite imported. r this would be about $3 others say not so much and would probably purchase the imported products less often >> depending on location. but maybe not as ofte >> probably would because that's what i like and maybe we save someplacmeelse. >> i probably would pay a little more but not a lot more. >> in statement u.s. trade representativeobert lighthizer says europe has been providing subsidy a tosbus that has seriously injured or workers

later adding we expect into negotiation was the european union aimim at resolving resolving thi thu? issue in a way befitting americanntorkers butil the agreement is reached the tariffs are likely to remain. for its part. airbus claims the u.s. also provides subsidies to boeing. it too c has lodged a lplaint with the wto which says it hopes to rule on that early next year. .eu also said it's prepared to slap its own retaliatory tarif and american goods. for "nightly business report," rahel solomon. >> kmarlschwab announced this week it's allowing its customers to buy and sell o fractions shares a strategy designed to attract younger investors more a familiar with stocks like apple orr amazon or chipotle th high prices. joining us tooal t about what this means for individualor inven and for the brokerage industry andrews jones is the ceo of the planninin fir asset wealth. thanks for joining us tonight.

>> great to be here thank yoot >> you're fan of this for individual investors. why? >> sonk it's an interesting innovation for annt invest product. it's kind of cool for people to be able to own a share or par a hare of a company like berkshire hathaway, largely inaccessible to most americans. but by and large, the vast majority of consumers really need a diversified portfolio and any shouldn't have atr concion in any one particular equity. and so i thinkt's an interesting move by schwab. but i think it's lebron jamesly meaning lets for the vast majority of consumers. also, i think there is another point which is important to make which is that it's possible to -- to have this sort of actional exposure currently through exchange traded funds. and so that -- tft sort mechanism already exists. >> you know, there are those also critical of this type o a move. because any say it stcourages ins who should be

long-term invested to buy and sell shares and its you know even the pros have a hard time finding the right inpoint and out point and could be detrimental to financial health. >> yeah, i think for the vast majority of oonsumers it really needs to start with thinking about your long-term financial goals and taking a more planning cent restrict approach and then figuring out the i make sense.nv and so, again, for most folks, dayrading or trading in and time horizon is really not supportive of their longer term gels. again, i alwayhink that consumers should come back to planning first and then figure outnv whattments make sense to support the long-term marine. >> but to be fair charles schwab is saying what they're trying to do is broaden the net to reach those people who would otherwise not feel like they uld afford to invest in companies that

they're familiar with as i said before like amazonr any of the phang stocks out there that they use the products they want to boy thewhtocks. about that? >> yeah, that's -- i t'snk th fair sort of a marketing approach. i woul again, go back to the argument that you already have exposure to the stocket through s. it's not the same as logging into the schwab account andse ng the apple ticker symbol in the portfolio. but you can have a broadly diversified portfolio and still have access to allheocks. >> understood. andrews jones witit asswealth. thank you for joining us tonight. >> thank you. usiness news from the world tonight. oracle coceo mark hurd has died. he went on medical leave five weeks ago due to unspecified health reasons. he was also ceo at humiliate packard from 2005 to 2010. his tenure there was defined by alsoeveral scandals. doubled bu prior to hp he was the c of

atm and cash registerompany ncr he became coceo at oracl in 2017 where he revamped for the cloud era and became oracle as most visible leader. mark hurd was 62. ♪ ♪ ♪ ♪ o prices dippe 20 cents today as that slowdown in the chinese economy raised concerns about demand, especially here in this country as well. but one area related to oil that's generally overlooked by many investors b sn as a

powerful stealth rally lately, the oil tanker business. the rates charged to charter the tankers have surged. but why? andan can it continue? brian sullivan takes a look. >> reporter: it's rlly been an incredible story and incredible run for the shipping s stocks. in the last cple of weeks the rates to charter giant oil tanker ships haveone as one ship broker put it to me, insanesa the biggest ships are known alunorig at cc very large crude carriers.a month ago you could charter e for 25,000 to 28,000 per day. right now that same ship could cost yout the low end $125,000 per day o more. why is this hng?mp. two reasons. number one, you haveve higher insurance costs due to recent attacks in the straits of hormuz. but the second isig thest reason, sanctions.

trump adminision slapped sanctions on six chinese companies including costco operating onef o biggest oil tanker pleats in the world. ship esper will a aid nearlyny ship that's recently done business in venezuela. blacklt.t a black gold as charter rates spiked. the shipping company stocks started steaming. look at the returns on the stocks this month. nordic american tanker doubled. tk tanker up 50%. jeffrey's analysts think the stocks may have come too far too fast but there are some lesser still sees that they value in. hose include diamond s shipping, international seeways, euro nav a skorp owe tankers. the question is how long can it last anderill shi keep paying? everybody we have spoken with says that unless i the a major shift by the trump administration to ease up on iran it could be a long time. because the oil buyers and the product to market.o get their

one broker i spoke with told me of a job he recently fixed between the arabian gulf and india at the eivalent of $385,000 per day. it was 25 to 28,000 per dayust a month ago. for "nightly business report," i'm brian sullivan. american expresstr seesg results. that's where with he begin tonight's market focus. the credit card issuer topped speck achesriven by card holder spending more andnd payi more of their bal american express also reaffirmed its guidance but the cfo says the company is seeing quote, signgn of caution in commercial spending. shares fell nearly 2% to 116.76. caterpillar was downgraded by morgan stanley as the bank sees signs of increasing downdownside cat he is construction and energy and transportation businesses. morgan staey also believes the construction equipment maker peaked in -- market p pked year but wil eventually tail off next year.

caterpillar fel a sprak fwrak shun to 130.71. >> the parent company of kty secret l-grounds downdwraded to under perform from neutral by credit sweez swees to the season.s outlack forhe holiday credit suisse lowered are price process.for gap and macy l grand dropped 10% while gap and macy's fell 4%. increase in i refed fuel products and liquid petroleum gas shipments to mexico helped kansas city southern top profit ations. but the railway comnyai admitted that it had been affectedy the general motors strike because of fewer vehicle shipments. but shares rose more than 7%14 today to25. >> time the weekly market monitor with names of dividend paying stocks you mayant to consider your portfolio in thise interest r environment. joining us, bob phillips manage era manin director and

partner atarson welt. >> nice to have you here. >> thank you, sue. >> you say divend payers are the cheapest versus non-payers in 15 and maksco i your first pick why. >> they have that done a great job of cutting out high cost businesses the lastive years or so.ey ave great tailwind with great demographic and housing starts pickingp with housing formation getting larger going rward. >> texas instruments, i mean, semi conductor industry in many parts had some headwinds in the last few years. but ibus tough to see that into this here. it's a good ride retina it. >> it has, and they're a cash flow machine. i think the free cash flow close to 40% of 4sales. and they've done an incredible job given that cash flow bk to stock hoermds throu increasing dividends and stock buy backs. the number of outstanding shares close to 49% since 2004 with

buybacks. >> jp morgan is a stock you recommended a year ago. the dividen have increased steadily since then. >> they have and i think they'll keepha doing t going forward, sue. you know it's a global bank. and i think that the strongest of the glol banks was the as the overseas ban pull back jp morgan has opportunity to expa. people a concerned and fatherful banks in the low interest ratesnvironmentut that increase years going d and forward. >> i>>s not just a dividenden payer you are looking for it'nda divirower that you like, right. >> absolutely, bill. i think the -- in this world be, the question is where does the cash flow in the future comefr ? tip dle high dividend stocks aren'tiv increasing those. they tend to be risky. you want companies that have an ability to grow sales have a desire to give te cash back to sto homders through dividends and/or buybacks.

and also have strong balance sheets. bob phillips with carson wealth. thanks so much have a great weekend. >> thank you. and up next, the b business reason that streaming companies want releases on the big screen. first. ♪ ♪ and finally tonight, another first for apple. the company is a releasing movie in theaters today. on the streaming service.able but apple isn't alone.in julia boorstells us why the battle for streaming is starting in the theaters. >> here you are. enjoy. >> m nie theaters are the

barmgd for the streaming giants. to draw sscribers and content creators. because you need movies on the big screen to qualify for. awar apple's major documentary elephant queen opens today in ten cities in u.s. and uk before included in apple tv plus november 1st launch the film drawing arrive which apple assured a highlight to proposals in the new service. this is one of three apple releases in fal followed by indy feature hala ii november and drama, the bank ner december. amazon is release be five films and netflixt0 films, the m er in the key fall season. >> the streamers are doing theatrical releases becauseh thy are h profile title, engaging audiences they have a popab and ity to stand out in the marketing clutter. they'll drive a big audience. >> perhaps the most high profile of the films is netflix's the ar irishman fromtin scorescy.

on november 1st, the same day as apple tv plus launching netflix offers the drama in independent theaters before streaming at the d o the month. none of the fil. will stream the same day they launch in theate. netflix theatrical windows are less than a month pch none of the theater chains dmoanding a thh window run the films. apple for now is also doing limited releases. amazon is the outliar doing three traditional releases ts fall including for honey boy. giving knows films access to the big theater chains while amazon does limited releases for short including the aeronaught. >> amazon has a different opinion on that. they've already froro what i'm seen there is a willingness to rk with apple andwo amazon with the theatrical exhibiters. >> one thing theav streamers he in common is the hope too captue awards and critical acclaim to promote their t services subscribers and top talent who

don't want work lost in a crush of content online. for nightly business report, i'm julia boorst in los angeles. and before we go, one final look at the day on wall street. minus signs for the dow mainly because of johnson & johnson and boeing, down 255 points. nasdaq down 67.li indemnitys the big looser there. she s&p dropped by 11. and that "nightly business repo" for tonight. i'm bill griffeth thanks for watching. >> i'm sue herera. have a great weekend we'll see you monday. ♪ ♪ ♪ ♪ ♪

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