be ♪ this isbu "nightlness report" with sue herera and bill griffeth. ny♪ s apple. revenue at the company rises even as sales of the flagslap iphone decline. reassuring investors for now. >> w would need to see a significant move up in infla'son th persistent before we raise rates to address inflation concerns. the feduts interest rates for the third this time year but it was the outlook foruture rate hikes that sent the s&p 500 to the 15th record close of 2019. lawmakers slammed the ceo of boeing. this time f his $30 million salary. those stories and more tonight on "nightly business report"or wednesday, october 30th.

welcome bill has the evenive off. following comments from the fed chief. we'll have more on that in just a moment. but we begin tonight with apple. the trillion dollarompany reported earnings and reven fie phone sales declined and overall profit fell from a year ag the company said its all important holiday quarter could potentially beast beatast year growth and could surpass the record $88 billion in revenue hit in 2017. the stock widelyid held by investor in everything from mutual funds to etfs to retirement accounts rose in initial after hoursng tradi josh lipton las more on the quarter from appleineadquarter cupertino, california. >> apple no longs breaks out how many iphones they sell quarter in and out. but they break out iphone renew, better than expected at 33.4 billion in the quarter and

also looking at closer to $32.4 billion. iphone revenue down 9% but that wa sequential improvement. ceo tim cook telling me in an interview that of the three new iphone the1, 11 pro and 11 pro max it's the 11 the best seller. remember that's a successor to the 14r0 xrp beyond the bread and butter iphone enterprise. investors make a bee line to services segment, jumping 1% to a betterhan expected for nightly business report, josh lipton, cupertino, california. daniel flaks joins us more to talk about the earnings beat at apple. at from newberger berman nice to have you here. >> graez great to seyou sue >>he outlook of tim cook was quite bullish. do you think it signals he managed to transform the company from reliance strictly oh on

iphone sales. >> sue, i think it's showing the broadening of revenue drivers. the iphone franchise remains healthy. what's most important in the recent launchf he iphone 11 was the $50 price cut driving demand. you have batteries lasting longer, a upgrade to the camera isperson. the services business remains the healthy. then you have opportunitiesn wearables where the company is really just getting going is. >> i you had to look at the stock for a long-term investor, a lot of people feel as though the stock is expensive. it certainly is performing well. but it may be a little expensive. what dyou think of the stock? >> sue, we think the stock is attractive ove thepl next c years because you have in company innovating on multiple onts. an ultimately it's about dlaefrg differentiated products and services. you have of course have apple's new tv offering coming out in november. and so weike the story here over the next two years. cook terms of what mr. said about transforming the

company, he has a lot of coetitio as you just pointed out going into the streaming space and the like.u how do ink apple is >> i think the way they are n? approaching it is really to come up with curated content. e company from what i can tell is not trying to be all things to all people. i think the conte creation and working with luminaries such as oprahnd steven selberg give apple a spot to make a difference over the nt couple years. when we think about the story, i think content has the abilityo strengthen the ecosystem appear really helel add value to apple custster lives. >> on that note, so,he iphone sales decline, is that at all worrisome or did you factor that in. >> we expected the iphone to decline. recall, of course, in the prior year the iphone sales were very strong. >> um-hum. >> looking out oveve the next2 18 months we expect the iphone business to return to

growth. at's driven by of course very strong product lineup and at the end of next year w wshould have a 5g iphone cominin out which could also help sales. >> w will see. daniel, thanks so much. aniel flax with knew rker berman >> thank you. to the other big story t ts evening, the fed. the central bank lowered interest rates again, and pointed to a possible halt on fuher rate cut but the fed chief did more than . he also hinted about when the next rate hike might come. that helped lift the stock markete dow jones industrial average rose 115 pnts to 27186. the nasdaq added 27. and the s&p00 up 9 a all-time high. steve liesman has mor from washington. the federal reserve met market expectations and cut interest rates by a quarter its third cut this year. the new range in the overnight lending rate is 1 to 1.75%. but fed chaman jome powell

signalled the rate cutting excise is likely over for now. >> we t the current stance of policy is likely to remain likely to remain appropriate as long as incoming information abou the economy is broadly consistent with our outlook which is a positive one of labor market, andlation strong moving close to 2%. >> concerns over the o trade wa and global economic weakness were behind the c now. but powell suggested the fed had provided a lot of help to the ecomy and that seems like enough. in its statement the fed dropped the critiasl p from prior announcements acting as been the signal to mathematics in rate cuts were copping. that's gone. intsz the fed says it will assess the appropriate path of the funds rate meaning the if sed on hold for a while. what would it t take for fed it to resume cutting? powell said the economic data would have to ce ineaker than the fed expects? powell also provided positive news to markets byuggesting the fed is far from potentially hiking interest rates. >> i think w n wouldd to see

a really significant move up in before we wouldonsider raising rates to address inflation concerns. >> there were t two dissent the same by fed bank presidents who didn't want to cut rates. but psumably aere three r cuts and new a fed on hold, the ommittee might be less divided no for nightly business report, steve liesman, washsgton. liet's turn to brian nick for more analysis on the fed and imarket, chiefestment strategist a at new vine. thanks foreing here. nks for having me, sue. what did you make of what the fed did and what the chief said today. >> i think what he said was much chlorke clearer than the statement. we had to wait f about a half hour to becomomcrystal clear that the fed intends for this to be theast rateut for the moment and they're moving into december with more optimism that some of the polic risks that had beene bothering h mitigated on trade, potentially on brexit. they don't think continuing to cut rates is continuing to be necessary for the economy to

grow where it grew during the third quarter backup that's the fed's forecast for next year and our forecast as ll. >> so the trade situation, though, still seems to be somewhat more fluid than certainly the market would like it t. is that the biggest risk for the fed n? >>? the short-term absolutely. there are still tariffs set to go ibeo effect on dec 15th. th october 15 tariffs were cancelled. i think when powell talked autng mitigaisk i think he was mainly are referring to the october 15th tariffs that could have gone into tffect butled as part of the ongoing negotiations between the u.s. and chi. butem if those dr 15th tariffs move forward, it seems likely they'll be dad as par of thengoing negotiations but if they go into effect, that's somethinghat i think would potentially bother the fed. unfortunately their meeting is december 11th. thent tariffs go fegt effect on december 15th. they have a time problem with fi aring out what's happeni the end of the year. >> and also, the brexit situation, granted, things are

still fluid there. but they do seem to haveen le. how would you rate that in terms of a risk for the market, the econom and the fed? >> it's still a risk but much lowerauhan it was b the risks of the uk crashing out of the eu with no deal in place and the border would be treated how taxation would work that seems liket's gone from the likely outcome to less likely outcomes. there isle anion again december 12th, the fo cht mc meeting. the fomc won't have an ia with uk politics but it may feeler benowing regardless of the a second referendum end up have potentially with no brexit or a deal that's now more solid between the eu and l uk muchs disruptive to global financial markets. that was one reason why you see interest move up in because there is risk taking on off the table with brexit. >> but beware of decemkr i thou hear you saying that. >> a lot can go wrong in

december. >> ah, clkt. brian nick with new vine. thanks very much. >> thanks. job broegt at private businesses picked up in october. according to adp employers adde0 12positions last month, that is slightly above expectations. education, health services ando trantion all saw job gains while manufacturing, construction and miningaw job losses. a separate report showed the economy great annualized rate of 1.9% in the third quart. banks to continue consumer spending offsetting a decline in business investment. r the was slightly better than expected. the ceo of boeing was back on citolill today. dennis mulan rk answered questions from a house panel over the troubled 737 max. and in second day of testimony was was juste as h as the senate hearing was yesterday. phil lebeau in washiton for us following the stor good evening, phil. what did you make of the testimony a today? whut the -- go ahead. >> sue i was going to say more o

pointed todayd two issues. e the compensation he receives and whether or not he should waive the compensation andlso should he even remain as ceo of the company. >> is anybody at boeing taking a cut or working for free to try to rectify this problem like the japanese would do? congressman, myoard will kulkt conduct a comprehensive review. 'r you're saying y not giving up any compensation at all continuing to worknd make $30 million a year? after this horrific two cidents that caused all these people relatives to go be, to disappear, to die? you're not taking a cut in pay at all? >> aga our board will make those determineses. >> you're not accountablelehen you're saying the board is accountable. >> my intent is to see this through. i think that's part of my responsibility. >> mr. mulan rk if you had an ounce of integrity you would know the right thing to do is to step down. >> you're the captain of this ship. a culture of negligence anden incomp or corruption starts at the top and starts

with you. you padded your personal finances by putting profit over safety. and now 346 people, including 8 ericans are dead. on yr watch. today you said you made mistakes and are accountable. >> in the hearing we in a chance to catch up with dennis ilenburg and i asked him does he plan tolatick with the company or give back compensation here is what he had tosay. you had more more than one in representativeg you are not the person you should resign. >>np understand knows is phil and i respect them. but again my focus here is on taking responsibility, owning it with,e know what we need to fix. we're making those chaes. we're going to continue to gete betts a company and i remain resolute on the responsibility. >> wilve you wai compensation this year. >> phil, again, compensation is a decision that my board will make. and they'll do as comprehensive review. >> by the way, dennis mulan 's

compensation typically decided by the board of directors ofs boeingr as a bonus, s that would likely happen early next year in februar or march. >> there were also queions phil about the plane itself. and possible return to service by the end of the year. boeing has beenredicting that. but what are the possibilities of that? > i think that there is stila chanld that c happen. and the people we talk about part of the process think it could happen. but keep i mind the last two days have been brutal for boeing andhe f.a.a. facing pressure not to be pushing the plane back into service too quickly. >> phil lebeau in wanting for us font. thanks, pl as alys. >> you bet. it's time to look at some of the upgrades and dorogrades. nord downgraded to sell from neutral at ubs. the analyst says a weakay hol shopping season, tariffs and e-kmerps disruptions are likely to pressure earnings. the price targed$30 the stock fell $5% today to 35.21.

xerox downfwraded from under weight to narlt at jp morgan a 7ng the valuation after run up this year. the price target $31. he sharesel a fraction to 34.12.biogen upgraded to outpro market from market fireman. they say the experimental alsz heimers drug that itlans to submit for approval. the price t $370 shares up a fracture to. 299. well facebook users don't appear to be phased by the political pressure facing the social media company. it reported better than expected earnings and revenue and saw user base grow. that sent the stock higher inl initia after hours trading. julia boorstin has the details.r >> rr: the key takewa a from phone number earnings the social giant fing on all cylinders. beating expectations across the board. drawin advertisers and using despite the regulatory concerns about the compa and investment

in protecting the platform. the key metric of facebook success, average revue peruser. the number grew to 7.26. this that's more than 20 cents better than analyst consensus expectations and. and perhaps most notify notable the nototy most valuable user i ba u.s. and canada. stagnating over the last two years. in t third quarter facebook grew daily active usenersu. the and canada and grew the monthly active users by 3 million. showing users aren't bothered by negative headlines. julia boorstbusiness report, twitter laid late today says it's banning all political advertising from its service. saying that advertising on social media offersel unfair l of targeting compared to other mediums. and as you m know the majority much money spent on political ads in u.s. goes to television ads. still ahead as the wildfires rn insurance companies are reassessing their risk.

♪ ♪ ♪ ♪ ♪ ♪ ♪ chile is calling off the no asia-pacific ec cooperation summit that it was scheduled to host next month. that is the same meeting where president trump and chins president xi were planning to meet to discuss a possible 1 trade deal. the cancellation comes amid

the white house says it's here. awaiting information on a new location for the summi and that it's looking forward to finalizing the deal with china within the same time frame. word of the cancellation sent the chilean etf lower in today'' trading sessisi. and now to california where broke out north of los angeles. the fire is burning neerp the ronana reagan presideial library whi mab evacuated for thest te ever a a extreme red flag warning was in effect in southern .californ wind gusts could reach 807-mile-per-hour making the fire harder to contain. the wildfires are also putting a lot of attention on the insutrnce indus so we asked contessa brewer to do some digging. >> for insurance compa des the costoing business in california is goingp. the industry has paid out almosi $25on for wildfires in california the last two years. d actuarial firm millman wildfires season alone wiped out

more than 10 years of underwriting profi for companies that write home owner policies in california. insurersre trying to make the numbers work. hiking premiums and lowering exposure. the state insurance commissioner says 340,000 rural home owners had policies dropped in four years. last year, non-renewal increed 6% statewide.e. but in fire prone nevada county in the foot hls of the sierra nevada mountains there was a 38% increase in dropped policies. and these numbers don include the aftermath of the campfire in paradise, the deadliest wildfire in california history, about 30,000 people lost homes and $8.4 billion in insured l lses were reported to the california dp much insurance. today was,he ceo of chubb insurance evan w greenbu asked about the exposure to the california wildfires. he said, quote, i'm just

concerned, did we measure the exposure correctly? and did w chargee a proper price for taking theisk? for knows whoho have see iurers drop policies, it's often difficult to find a new policy and almost impossie e to find at affordable rates. anotheray the insurance companies are tryingo minimize risk is to reduce the risk of homes catching fire. with the nation's largest private firefightering company, wildfire defense systems. the company deploys teams of certified firefighters to go house to house and mitigate risk pb installinin portable sprinklers laying down flier blocking gel. removing fuel f f embers. right now the company has 55 gines at kincade and getty fires. usaa says it provides the service to all members in the 15 wildfire prone states it serves and service provided at no additional c one more way insurers have trying to lower thin 1/3 own risk.

re "nightly bubuness report" consequencea ewer. general electric showsre progress we begin the market folk. ge posted better than expected are earnings and revenue as the company focusings on the balance eet and paying down debt. the conglomerate raised the full year cash flow outlooknd says it sees signs of trouble power unit stabilizing. the shares responded rising 1.5% to 10.11. tupperware missed estimates as both profit andevue fell. eve company cited slowing demand in several key markets. tupperware also lowered the full-yearuidance and shared punished hitting a 52-week low and losing more than a third of the valueo close at 10.16. mckessoosd mixed results as the drug distributors beat analyst revenue forecasts thanks to price increases on branded drugsru and distributio of specialty drugs. elbut the company short on earnings estimates due to settlements in the opioid relatedases. the key, though, may have been a

drop in operating margi which signals pring pressures in that industry continue. the shares lid slid more than 8% to 136.79. and reporting of a the bell,ft reported better than expected revenue thanks to an increase in users who also spent more per ride. h the rideling company also raised guidance for the year. t shares were volatile in initialfter hours trading. and they closed the regular session up just a fraction to 44.11. also after the bell, starbucks topped wamz revenue expectations. iven by an increas in u.s. and worldwide same store sales. it also saw strong demand for loyalty program and n delivery options. shares initially rose in after hours trading, clcling the regular session up a fraction shun to 84.19. coming up, did juul knowingly ship contaminated pods? that's what a lawsuit is alleging.

♪ ♪ ♪ s ♪ ♪ ♪ ♪ injuries hbo m is entering the increasingly crowded streaming industry later than its rivalst and higher price. th service will debut in may of next year. and cost $14.99 per month. at&t owns hbo with cnn qb turner broadcasting and warner brothers which it acquired with the $85

billion purchase muchs time warner. according to warner media ceo its nt is justne of advantages. >> we go forward on this people aren'tustaying content for content sake. they're buying content because it's associated with other produc and services. toffer marketplace incentives s to have vio, or it's at&t choosing to put great value witd tv or broad band associatewood it. those with other reasons to come into the product as we. >> shares of at up slightly in today's session. challenges are mounting for juul. the best selling e-cigarette center of a lawsuit that athe includes some pretty serious accusations. frank holland has kmore. >> reporter: this whistle-blower lawsui claims that juul knowingly sold 1 million contaminated nick teen pods earlier this year. accuseding the ceo of putting profit over the health and saerty of cust now according to the lawsuit

when the whistle-blower voived concerns potentially unsafe pods, burns said to m. >> half ourustomers are drunk and vaping likehomofo the blanc knows the quality of the pods. th lawsuit was brought by t senior former vice president of finance claims he was terminated in march for confronting managent. the lawsuit claims the contamination was a direct result of juul trying to make up up for revenue lott by removing flavored pods from stores and maintain the company's valuation. in november of last jearl announced it would only sell flavored pods online and in response to teen vaping concerns lawsuit juulinted mint pods ase menthol to avoid classifying them as a flavor and pressured a supplier to increase production of manipulate allegedly leading to the contamination. the lawsuit also alleged mr. bradshaw was instructed to contaminated pods while some

still sold to the consumers. the lawsuit filed on the samts day rep surfaced that the cfo is leaching the company in lawsuit. dan a her is accusf knowing that contaminated pods were being sold. juul issued a stateinnt this mo saying mr. bradshawaw claims are baseless. was terminated in march 2009 leadership qualiti the monstrate role. thee ails can concerning safety issues with juu products are equally meritless and we already investigated the underlying manufacturing issud determined the product met all applicable specifications. mr. brad issue shaw's attorney responded to that that s stement that a large number o pods with manufacturing issues were shipped to cusmers although internally executives repeatedly rmed it as contamination. if the product met all applicable specifications, then why did juul instruct mr. bradshaw to obtain a il multon dollar refund from the supplier?

we reached out to tobacco giant altria last yea prpg purchasing a 35% stake in juul for nearly the company declined to comment but will likely faceni quest during the earnings call on thursday. for "nightly business ranort," holland new york city. >> before we go another look at the final numbers on wall street. e dow rose 115 points. the nasdaq added 27. and the s&p 500 was up 9 to another all-time high. and that is "nightly bu fness report tonight. i'm sue herera. thank you for joining us. have a great evening andnge'll see you tomorrow.♪ ♪ ♪ ♪