. this is "nightly business report" with bill griffeth and sue herera. gwing skepticism. boeing's 737 max crisis seems to be gting worse and the stock nce resilient is coming under pressure. last-minute deal. a settlement was reached just before aajor opioid trial was set to begin but the story is far from over. backyard bungalows. second homes arein cro up in yards across america and some homeowners are reaping the financial rewards. those stories and more on monday, october 21st. for good evening, everyone. bill has the evening off. boeing shareholders are getting use to rough days, but thete two have been doozies.

the stock is down abo 10% during that time. enough for any investor to take notice. today it fell almost amid mounding questions over the company's 73 max. it was a one year ago when their lionane crash in indonesia followed a few months later byat another crash and then the grounding worldwide of boeing's most popular jetliner. tonight pressure mounts as investors try to figure out if new revelations will return its date to service. here's phil lebeau. ng reporter: there's gro skepticism the 737 max will be back in the air before the end of the year which remains t guidance of dennis muilenburg. release ofnd emails a test messages from a boeing pilot suggesting he may he misled regulators while the max was in development has analyst questioning if the faa will slow down thef process flyin

again. credit suisse downgraded them and ubs downgraded boeing writin we think af pushout the return to service could c increase the likelihood of a pause on the 737 max production system. meanwhile, boeing is wrestling with a crisis that seems to be getting worse. h then youe the theater of crisis management which is like an episode of succession whe everybody is sitting aroundfi ring who goes on tv and does the interview and who goes before congress because whoever is public endsp losing their t job. >> reporter: analysts are openly speculating about the future of ceo dennis muilenburg and questions about kevinwh mcallisr runs the commercial airplane division. boeing says there are no plans to replace either executive even as the max remainsarked and the company's stock slump close to a three-moh low.

still, some believe with global demand for air travel continuing to grow,oeing will eventually come through thisrisis with enty of orders including many for the revamped max. >>hi would view almost as a buying opportunity that you would then hold and keep for the long ter given the dynamic of the business. >> reporter: we'll get a sense of boeing's outlook and exactly how much the737 max grounding has cost the company when rerts q3 earnings on wednesday. that's also when analysts from wall street will hear fm ceo dennis muilenburg for the first time in a couple of week phil lebeau, "nightly business report," chicago. so let's tn now to ivan ne ff to talk more about boeing under pressure and if you should own the stock. hes the chief investment officer and director of research with tigres research partners. welcome back. >> thank you. >> we shouldote you are bullish longer term on boeing. >> very much.

let's look a little shorter gh term th there are a number of key hurdles that the company has to overco overcome, not the smallest of which isn appearing capit hill. what do you think happens to boeing stock? >> i think itay be under pressure through this process and it could be under pressure into the end of the year as people who have losses sell it tond book '18. i'm sorry, 2019 bounces back in 2020nd i think that they should get close to getting the this affects very large consistency of stakeholders that include boeinin employees, boeig shareholders, boeing customers, the customers andhaholders of the airlines and the suppliers. this has been very damaging to the airline industry a to the consumer because it has caused a big increase in cost of flights.

>> what do yoo expect happen to management or what do you think as you analyze this company should happen to e current management? >> overall you want to buyood companies when they're having a hard time or a bad time. that's why i thi there's a buying opportunity here. as phil lebeau said, thery indus so capacity constrained they need the planes. this has taken very long and i ink a lot of what's going on now is a lot o i people at boeig trying to cover themselves by saying, i told you there was a problem, you didn't listen to me. that'sausing a lot of these emls and messages that are surfacing. however, i think that one of the keys of managing a crisis is get in front of it andt fix as fast as possible. >> you expect more volatility as we see boeing have tog naviglae this scape. you have a pretty bullish forecast for the stock six months from inow. think within six months

that the plane -- the max goes back into servic the stock share. obably be above $450 a ou also like it for the dividend which we -- >> yes. >> -- should note they maintained today? >> yes. i think any company that has a vidend of over 2% with a ten-year treasury at 1.5% and the average yield on the s&p 500 at just below 2% so any company that has a good dividend and over the years a significant amount of total return from companies have come fm their dividends. ivan fineseff, thank you so much. good to see you again. >> thank you. >> the chief investment officer and director of research with tigress financial paners. even if you don't own share of boeinoutright, you might own them in a fund. according to morningstar the biggest holders are the vanguard total stock market index,an ard 500 index investor and american funds washington mutual. the decline in boeing shares capped broader market gains

today, but the major indexes did move higher to stahi busy earnings week. and they're closing in on record owlevels. the jones industrial average rose 57 points to 2627. the nasdaq was up 73 and the s&p 500 added 20. so what might it take for the market to continue to rally and reach those new highs? mike santoli identifies three things.e >> reporter: with the stock marketro emerging a late summer slump and stalling for weeks short of its record highs, bulls and bears agree on the basics. has slowed and the fed will likely cut rates again this month. possibility of aourth quarter rally now hinges on three crucial debates involtng cre markets, crowd psychology and calendar patterns. the bond market was at the center of augustecession scare wi the ten year treasury yield plunging towards record lows but e marketor corporate debt never signaled muchhconcern. something it does as economic stress builds.

investors have continuednu to demand rativelyodest extra yields from companies even riskier ones.ch irm credit decisions tend to support equity values giving them the chance to issue and refinance debt. should they trust this? crowd sentiment has remained quite suued despite the s&p 500 recovering to whin 1% of th july levels. investor survey, stock funsu an measures of equity exposure by professional trade all show persistent skepticism. this tends to be a bul factor leaving investors more open to positive news than negative surprises so is the crowd correct this time in its pessimism? d the calendar is about to rn friendly again. we had october through decemr it's one of the strongest stretches oghthe year thrt history. the positive seasonal forces did not arrive last year s whencks had a rare fourth quarter collapse losing as much as 20% by late december. still, one year ago there was much talk of aou likelyh

quarter rally while this year pectations are much more mud. so investors must now ask what are the chances a traditional year end up side bias failed to take hold two years y in a row? ghtly business report," i'm mike santoli. an 11th hour dealvert for now at least. the first federal trial related to the opioid crisis. the settlement sent shares of the nation's three biggest drug distributors lower. teva shares gained on word of a deal with fourtates though estions remain about that. meg tirrell went to clevelandrto on the happenings inside the crthouse but instead has the story of what happened outside. >> reporter: the jury was selected, theourtroom packed, but just minutes before the rst federal trial over thena on's opioid crisis was set to begin this morning, woror cae of a settlement. the trial was off. ut it's more of delay than a reprieve.four defens, three big

distributors and teva reached a settlement with the t ohio counties that were plaintiffs in this trial. it's worth $260illion and adds to the $6 million settlements already reached with four other drug makers. but more than 2,000 cases against drug companies remain brought by cities, counties, tive american ibes, states and others. work towards a broad settlement was underway late last week and over the weekend and this afternoon the state attorneys general leading those talks said they had reached a broadettlement framework with five companies it includes $18 billion inio cashr 18 years from the three drug distributors. $4 billion cash or two t three years from johnson & johnson as well asrovision of o $23 billion worth o addiction treatment drugs fromm teva. but the cities and counties haven't signed on. part of the issue is $18 billion over 18 years from the i distributo too little and too slow. >> you take $1 billion and

spread out over this country, thes counties were slated if you make an assumption they would have y gotte know, a few hundred thousand dollars a year. that's not going to help us. we need the money up front. gotbe t more money. >> reporter: there a more than a dozen drug companies, distributors named in the itsu they claimed pharma companies deceptively marketed it and that detributors and pharmacies reached enormous profit from failing t monitor and report suspicious activity. as part of the settlement the companies admit no wrongdoing and as work continues towards a prodder settlement, for the counties in ohio the deals means immediate funds towards fighting the crisis. >> we've got the problems now. people are suffering now. ople are dying now. we have to deal with these issues now so the fact that we were able to get t money in a short time frame is very helpful and tt's one of the motivations for settling. >> reporter: the next trials aren't scheduled until next year and unless cities and states can come together on a broader

agreement,hese piece-by-piece deals may be community'sest hope for rehoef for "nightly business report," i'm meg i tirrellncleveland. it is time to take a look at some of today's upgrades and downgrades. ibm was downgraded to neutral from buy at ubs. the analyst expects theompany to have trouble sustaining mid sing digit revenue growth given the pressures facing the legacy businesses. the pricearget is $140. the stock fell1% to 132.58. ebay was wnaded to hold from buy at deutsche bank. e stock is expected to be range bound. the pce tget is $42. the stock was up 1% to $39.26. apple's pricearget was hiked to $280 at raymondjames, which is the highest on wall street. the analyst says 5g, apple's biggest opportunity and raised the iphone saleses estim the firm hth an outperform rating. the shares rose to 1.5% to

$240.51. now to britin's exit from the european union or brexit. tonight a new twist in the ongoing drama. willem marks is in london. >> reporter: when british pri minister boris johnson leftin dostreet this weekend, it was to join lawmakers for their first saturday session in 37 years. in the hope of finally resolving an historic stabbedoff. >> this i the second deal and th fou vote 3 1/2 years after the nation voted for brexit. and during those years friendships he been strained, families t divided and attention of this house consumed by a single issue that has at times felt incapable o resolution. >> reporter: tens of thousands of tanti-brexi protestors pounded the pavement around westminster palace while the man who championed the campaign

pressed them to soothe this >> it is now so urg ut for us to move on and to build a new relationship with our friends in the e.u. on the basis of a new deal, a deal that can heal the >> reporter: the re from opposition lawmakers, notco iliatory but critical. >> he h renegotiated the withdrawal agreement and met even worse. >> reporter: even as while allies from northern ireland planned the british to leave withhe inconsistencies. >> please reconsider the fact that we must leave a onene natin together. >> reporter: but the most fellow conservative. me from a >> despite my support, do not believe it is responsible to put the nation at risk by makg that threat. >> reporter: former party representative said it's

possible until they all partner. >> wethan be secure i knowedge that the u u. will have requested an extension night which, if granted, can be used if and tthe extent necessary and only the extint necessary to prevent a no deal exit. >> order. >> reporter: johnson said he e would rather dead in a ditch than ask brussels for another delay. >> the ayes to the right. 322. the noso e left, 306. so the ayes have it. the ayes have it. >> reporter: the vote on saturday left him little legal alternative. the government sought a second vote. thaker of the house of commons insisted monday afternoon that to allow a up or down vote on boris johnson's brexit deal would deorderly and repetitive. they already debated and voted on the ect same plan just 48 hours earlier. while the e.u. conties to

watch and wait, the u.k. government must now attempt another parliamentary approach to win approval for johnson's deal. for "nightly business report," i'm willem marks in london,an en s sll ahead, why this week will see the intersection of earnings, trade and the economy. there was somee optimismver trade.hina the upbeat sentiment came fro beijing. eunice yoon has more. >> repter: china is sending a positive signal on the trade talks. over theeend vice premiere

was china's chief negotiator made a rare public speech on the talks suggesting progress. at a tech event he said china-u.s. have made substantial progress in many aspects and laid an importa progress for a phe o agreement. china is willing to work in concert with the u.s. to address the concerns. it sounds like standard lines but the state media descriptions are not. the glolol times described the remarks as beijing's most clear and authoritative o progress. state media blog closely watched by trade experts saidli's comments say they are proaching a phase one agreement. the official press have been managing expectations down and now the tone slightly optimistic that an agreement can be reached. that optimism helps support the chinese stock marke which largely shrugged off a surprise decision. th pboc left the new benchmark, the lpr, i unchanged october.

someso analysts believe this mes policyakers are cautious about loosening policy because of the high debt here. with the economy eslowing, most expect rates to drop further by the end of the ye. for "nightly business report," i'm eunice yoon im beijing. this week we may find out how those trade tensions have impacted the industrial sector whencaterpillar, united technologies and 3m report earnings. that group is often viewed as a barometer of the global economy which is why investors will be paying close attention. seema mody has more. >> reporter: it's all about demand. other industrial firms have a enjoyed strong sales for many yeys, but as t global economy slows down, that may start to change while a slowdown in china has been evident for a couple of quarters, data on the u.s. economy has raised concerns and a e loomingect on profits and capital spending. economists are blaming the trade war and a softening agricultural sector. reports show farmers are holding

back on purchases of big ticket items like tractors and other el farmed equipment due to the uncertain at this around trade and whether they will receive support from the government in 2020. as worries grow, analysts are bringing down their expectations. morgan stanley dograded the stocks saying the construction equipment market peekedth while oil and mining continues to weaken. it's not just cat perfect pillar. third quart has them lower from 6% in early july to just 0.9% today.that has some invest away from the space altogether. >> i agr is cheap. it's cheap for a reason. when i look at a lot of the macr indicators, oecd, lean economic indicators have rolled ovth. i prefer sectors more so an industrial. 're defensivelyonposi. until those indicatorsiz stabile, i'd avoid industrials. >> reporter: other investors se oprtunit >> i think you have to think about industrials as being the

canary in the coal mine for really all of next year. oit's onethe only portions of the s&p 500 where we're expecting positive earnings this season. the s&p is really weighed pretty heavily down. >> reporter: as big manufacturers report earnings,a olders will be listening for any commentary regarding the potential between the u.s. and china over tde whether that's a sentiment. for "nightly business report," i'm seema mody at the new york stock exchange. halliburton sees more cost cuts coming. the oil field services company is t looking combat slow demand from its north american shale drilling whi helped cause a decline in expected revenue. halliburton d d match the earnings estimates. it rose to 61$1 cody is exploring options and possibly selling its beay products brand such as clarol, a wend lpi in an effort to pay down debt. severa we part of the beauty

unit earlier in the year. shares of cody rose about 13.5% $11.48. shares of alexeon rose today after the fda approved the coany's altamira drug. the new n approval will help trn pa with abnormal blood clhs in their kidney blood vessels. the shares rose t .$1 microsoft and humana will be teaming up in a multi-year deal. microsoft will sve as humana's preferred cloud provider and ill provide artificial intelligence to the health insurer to help improve care options for the memberof micr shares were up a fraction to $138.43. humana shares were down ao fraction $287.15. after the bl t.d. ameritrade reported better than expected results. th see next year's full revenue above aestimates. despit the company previously saying the elimination of

trading commissions would put a debt in first quarter results. shar initially rose in after hours trading after closing the regular son up more than 2% to $37.65. comg up, small house are big business for homeowners and builders. here's a look at what to watch for tomorrow. dow components mcdonald's, p&g, travelers and united technologies all reporin ea. existing home sales for september will show whether lowerortgage res entice buyers. opening statements are expected in exxon'stexo clima change tri

and that is what to watch for on tuesy. the world's millionaires now wealth according to a new study there are nearl 47 million millionaires with a combined worth of $158 illion. the u.s. leads the world in totaumber creating 675,000 new millionaires t over past year. china added 158,000. well, forget she sheds a he sheds, more homeowners are building real second homes in b eirard and reaping the dianalick has our >>story. eporter: lisa and chris recently tore down their garage and built a second homen its place. >> we lived in it for ten i mons while we renovat our main house and we loved it. r >>orter: and they love the ntal income it generates even more. >> so the accessory dwelling unit, you know,ort of nc

movement,e producing, yes. so, you know, you can live in an area that's very nice and nerate come. >> reporter: as states and local municipalities rel zoning la, more homeowners with extra backyard space are building small auxiliary dwelling units avus eitr for family members or to use as income hoperties. that meansuge growth for prefab avu. a bay area builder w built and installed about 100 avus this year and could expand to at least 1500 next yea and possibly even 3,000. as for pricing, the mnt commo product at prefab is a 288 square foothi home goes for about $105,000 installed. >>renquiries split probably 50/50 from people who are oking to address housing for holy members, whether it's adult childrenre struggling to survive or it's, you know, a senior family member

who's weighing this against the cost of doing assisted living. and then we have other people o are looking for the rental income. >> reporter: while zeing rules hanging as cities try to create more affordable housing, there are still t roadblocks greater growth in the avu industry, especially when it comes t costs. >> avu is still really for the most part an affluent homeowner producteing that you have to have cash on hand to take this on. until we really solve some of the financing issues outan ther in this space, we're really not going to tap into a larger portion of this market and expand into, you know, a whole different heowner profile. >> reporter: there is also local push back in some cmunities as homeowners fear an influx of renters could lower property values and change the dynamic of the neighborhood. the puhalas were definitely sensitive to that. >> before we built it we talked to all of our surrounding neighbors and sent them the plans. doing and we're goingo be

using it for family and friends, mayent it short term and everybody was on the same page andan reaice throughout the entire process. >> reporter: and after it was ev finished,al neighbors came by to check it out and see if it might work in theirs. backya for "ghtly business report," i'm diana olick in washington. >>before we go, here's another look attoday's final numbers on wall street. the dow rose 57, the nasdaq was up 73 and the s&p 500 added 20. that isy "nighsiness re rt" for tonight. i'm sue herera. thanks for joining us. we'll see you tomorrow. wo

man: this is "bbc world news america." is made possible by... the freeman foundation; by judy and peter blum-kovler foundation, pursuing solutions for oramerica's neglected needs; and by contributions to this pbs station from viewers le you. thank you. laura: this is "bbc world news america." reporting from washington, i am laura trevelyan.