♪ >> announcer: this is "nightly business report" with sue herera and bill griffeth. rollback rally. word of potential easing of tariffs between mcand the u.s. and dow and s&p t finally new records. >> mighty mouse disney fires on all cylindersn the latest quarter. can the streaming service days away. >> home buyer hesitation, why more people feel the need to hold off on buying that newme ho all that and more tonight on "nightly business report" for thursdayovember 7th. good evening, everyone. and lcome. it was another record day for stocks. the catalyst, word that the two largest economies wrapped up in trade war have agreed tooll back existing tariffs. th market may have interpreted

that news as meaning the u.s. and china a closer to finalizing phase one of a trade deal. eunice yuaneinjing for us tonight. ♪ >> reporter: china says the two sides hav agreed in principle to roll back some of the existing tariffs in phases. the commerce ministry said the negotiators have been discussing this the past two weeks. and the ministry said that for a phase one agreement to bed reacome of the additional tariffs have to go. beijing wants the tariffs lifted at the same time by the same amount. how much could be negotiated. and a spokesperson said the time and place of a deal signing has yets to be decided. and after the remar the state media has been laser focused on the point that if tariffs are not removed there is no deal. at's been one of beijing's kor demands. the papers also efrpzed that tariffs need to be lifted simultaneously and indication to the chinese that china and the

u.s. are considered equals. perhaps the way to make it easier for the trump administration to meet beijing demands chinese autjarities ed ne people today, including one with a suspended death sentence for smuggling opioid fentanyl into the united stat. china's narcotic kmipgs worked with u.s. law enforcement in what beijing says is the first such collaboration. the talk is that president trump could use the outcome as political cover to lift tariffs easing criticism that he is cang to beijing and is a sign this could have been a calculated move with the trade talks in mind, the commission says theecion was made in accordance with the consensus reacd between president xi and president trump. forep "nightly businesst," eunice yuan in beijing. >> there was a report late in the dayna the plan to rl back tariffs faces strong internal and that no final decision has been made. but that wasn't enough to derail stocks today. the dow rose another 182 points,

now at76. nasdaq rose 23. and did hit an intrdayigh. the s&p added eight points at the close for a record there. bob pisani has more on the day's action. >> stocks continue the record run on wall street but ended well off the session highs. the markets rallied out of the gate on word that the u.s. and china would roll back tariffs in phases and another leg higher when sources inside the trump te administration rted that same report. now, by the close -- this is the problem. stocks slipped on ate r report saying the plan faces fiercenternal opposithin in the house and no final decision made. out tariffs.tough it is figuring big breakout, the trade sensitive sectors fueled the record run. 52 week highs in industrial stocks material stocks a financia technology stocks. bank stocks in particular rode the rally to new highs because of the spike in bond ieelds. thes on the u.s. 10-year

treasury note spiked to the highest level since august, the biggest move in basis points since after the 2016 election. on the flipside defensive sess rate sensitive utilities consumer staple lagged. that's been the story all november. home building stocks in particular. lennar poulty dr horton sank 2 to 4%. home builds having a stellar year. the yield move cou be a big deal for the markets because it might signal a further shift out of bonds back to stocks. putting some real ls under this rally. we'll see. for nightly business repor bob pisani at the new york stock lchange. with thench of the streaming service days away disney's quarterly results topped wall street estimates thanks to the box office success of theion king and more growth at theme parks. earning beat expectations by 12 cents a s are. he big number. company's revenue rose 34

peppers to $19 billion disney initially rose more than 4% followg the news.bo julistin has the key take >> while beating expectations across the brody, the biggest take away from my exclusive interview with bob iger is what's ahead for tan cos stream business. with disney plus launching tuesday. iger announcing that disney plus has distribution partners to help expand potential reach. >> we have distribution deals with a number of different entities. we aree pleased to annou today a deal with amazon. we have deals with apple. deals with samsung, microsoft, with lg, google. so significant, significant progress in terms of distribution deals. band amazonng the latest one. >> iger also announcing that premium cable channel fx will have a presence on hulu creating a destination on hulo from the

fx cable network and originals from fx creators. iger says that will add value to hulu driving subscriber growth. he wldn't give any updates on subscriber for disney plusreut they pleased with testing and ready to launch. let's turn to dave hagerre r n disney's earnings beat. seni medium nlt a a at edward jones. >> good afternoon. >> clearly a good year especially at the box office. continueink they can this momentum? >> well, certainly the company has been having great year at the box office and it looks like the current quarter is going to continue that with the new addition of the "star wars" movies coming out. aus we have the frozen 2 sequel coming out well. in the near term we'll see strength in the studios. then it's a question of other parts of the business such as

the parksonnuing to grow and then even the media business staying relatively steady in the near term. >> what about parks? because they did report really sod results in their parks business and have been raising ticket prices. so they clear will i have pricing power. >> yes, they certainly do appear to have pricing power. and we expect the could be some uplift in attendance especially here in the u.s. with the "star wars" galaxy edge attractions have roll out both in california and in florda. here is still more to come on that. the companyald about california has a larger area that attraction opening up next month. and then disney world in florida mass the same happening in january. so we feel likehat shoul help drive additional growth. it sounds like some people havdi been h off on visiting the attractions until they're really fully opened. >> right. and a lot riding on disneylus.

it's a money looser to begin how soon do ink before it starts to contribute to their top and bottom line? >> it looks like it will really be several years before that starts actually to contribute on e bottom line. certainly from a top line plus we expect will start ey contributing pretty quickly. ethe company looks lt's getting a running start with the relationship with verizon. and then, you know, come march they'll start rolling o more countries and europe. and, you know, the revenue ramp up should occur qckly but there is a lot of expense associated with the investment in content and inetting the business up and running. so it will be severalreears bee expect it to contribute to the bottom line. >> dave hager with edward jones. again thanks for joining us tonight, dave. h> thank you. and w disney's new streaming service, disney plus days away from joining the long

list of other subscription current bl or should you ep the unbundle? that's the question. lyr senior media and entertainment a at cfar research joins us to talk about that. >> thanks, sue, good afternoon. >> you say that the bottom line is bundling is not going away. why? >> i think it's hard to you know kind of imagine a scenario where you know the traditional bundle as we know it today is going away, just simply because it's hard to repel kait that reaming offerings.h the what you are likely to see is consumers becoming more and more selective and focusing on those most.ces that they watch the and also keep in mind that most of the offings today we have are actually not offering live television. a lot of on demand content, et cetera. you have a hybrid services like

hulu. i think you are seeg more and more, you know, kind of shift towards these newer offerings, but notri neces fully replicate the traditional bundle. >> reed hayesings the netflix of ceo made of a interesting point at the deal book conferencebo a asked all the competition out there in streaming and otherwise. and here is what he said. listen to this. >> people subscribe to a couple ofervices the way they subscribe to news services. but in terms of tim that's the real competition. streaming war is you know apple and disney is not breaking out revenue for thevi s. you'll hear some subscribers numbers but y can bundle things in so the real measurement is time. how do consumers vote with evengs? and do they end up watching what mix of all services. >> we focus so much on price and whether people want to unbundle because of the high price of

bundling at this point. but will peopleug have e time to watch all that they can subscribe to?es he m a good point, don't you think. >> he does. i'm sure he was making a lot of sense. you know, time is always going to be a constraint. but i don't think that with the pricing that we have seen for some of the services -- i think it reallyffords theto consumer ption the tokind of pick and choose and mix it up. we can foresee people subscribing from four to six offeringsnd sell significantly where the price of a traditional bundle is today. what they get ihe ability to in some ways create the own synthetic bundle. >> um-hum. >> but they're also able to significantly save from what they're paying today. a lot of those trends are also secular, broadand growth and international markets as well. that's why you see a lot of companies looking internationally where the trends

are just -- >> from what we s now which companies do you think will be the winners? and which have more challenges? >> sue, i think the way we like to frame this streaming wars is not necessarily pying o in one big battle. we see potential winners and losers across variousronts where we see for example subscription video on demand where disney is a play as well as netflix. we pick tm in that category. the sports of course disney is going to be very formidable. and then you have oer wares like hardware and the streaming hub like roku and even comcast playing in the advertising space. and might be a player as well.it going to be compartmentalized streaming wars is what we like to think about that. >> tuna thank you very much. tuna hamobi w cfra research. >> thank you. >> coming up home buyer confidence is buckling. we're telling youhy more

people think this might not be the time to by a hom ♪ ♪ ♪ ♪ shares of toyota climbed to a 4-ye high as the japanes auto maker post-ed better than expected quarterly earnings. more importantly, unlike other japanese auto makers toyota is not cutting profit phoutlook. lebeau tells us why. >> with americans driving more pickups and suvs these are tricky times for japanese auto makers who sell a sable number of cars. but toyota has been able to ride out the shifting tastes of americans thanks to a full lineup ofrucks and suv helping the auto maker post better than

expect earnings for the recent quarter with global revenue rising almost 5%. more importantly, toyota n has lowered its full-year profit forecast as have other aut makers. meanwhile toyota is partnering with china's byd, which makes electric karps and buses. thewo firms working on developing ev. while toyota pioered hybrid cars with the iprius has not been a leader in pure electric vehicles. as tesla has grown sales with a plant in china about to start production, toyota ceo aki toyota is pushing his company to be more aggressive on electric vehicles. meanwhile toyota is looking to in thes pickup sales u.s. with a new plant about to begin production in mexico. that will provide toyota dea irs he the u.s. with more tacoma pickups looking to increase sales of trucks in this country."n

ightly business report," chicago. no celebrati for party city. and that's where we begin night's market focus. retailers results missed on profits and sales and cut the full-year forecast a second time this year. party cy also siting helium shortages and fewer halloween shoppers in a stores major headwinds. and look at that. thirds of the value today ending in $2 even all-time low. aw strong growthn chinaelping them top estimates. the company said it's raising prices t help offset rising costs from tariffs on chinese imports. shares spiked more th 14.5% to 115.67. and teva pharmaceutical posted mixed results topng revenue forecasts but slightly missed earnings. the drug maker raised the lower end of the full-yearec fts. separately the ceo said today that the opioid rel aed

litigatiinst teva could be resolved by the end of the year. shares rose more than 4. to 8.47. holdings used to be called price line. reported better than expected earnings but came up shy on revenue. sharesere volatile in after hours trading. closing the regular session down more tn 8% to 18.49.93. also after the bell. activa bonzzar posted results beating estimates thank to the launc of call of duty games. but they see the revenue in the holiday quarter below estimates due to increased competion from online and free to play games. shares were volatile after hours. enclose closing the regulation regular session down more than 3%. gap's ceo art peck stepping down. the board's current non-executive chairman will take over the reins of the company for the time being. separately gap says comparable sales were down in the third

quarter. gati shares ily fell sharply following the after hours news. they close the regular session up nearly 2% to 18.06. and zillow's revenue topped expectations driven by the real estate website selling more homes and growth in advertising platform. shares initially rose after hours trading. but closed the regular session down a fraction to 33.44. >> meanwhile mortgage rates moved higher as the bond market off. more bad news for home buyers heo are already losing confidence in t housing mechanic. diana olick has more. >> reporter: demand for house something strong. but a shrinking share of americans think now is theight time to buy. that according a a new survey from fannie mae, finding 21% of people said now is the time to sign on the line. down from 28% in september. why? point in survey. of another data fewer people say their household income is higher than it was a just 16%.

down from 21% in september. afford ality is front and center and getting worse. >> the main source of the affordability problem is the lack of sbroe-level housing because boomers are not moving. gen xors are not moving. ey are building for move up buye >> it's lack of supply. >> home prices turned hot ner the last month due to the severe shortage of homes for sale. the realtors reported a 3% annual drop in inventory at the end of september. but therop is farore upon the low end of the market. for homes priced between one hundred and $200,000 it's down 13% om a year ago, the range where most first time buyers live. >> our data on first-time home buyers showing they are the most conservative in terms of sharen ofe dedicated to housing of several generations. >> mortgage rates should help but ticked back up in september

and jumped again today. current buyers have very little wiggle room in thend wallets a even small rate moves mart not only in e affordability but the qualifying for a mortgage fewer people think the rates go down further according to the and adding to the supply pressure fewer people think now is a goodime to sel too. that's why more are staying in homes longer, five years longer than they were a decade ago t an longer they stay, the less homes there are for sale. for nightly business report, diana olick in washington. let's turn to darrel fr weather talking about the housing market and if you should buy now or waiting until spring. darrel is chief economist at redfin. thanks for joining us tonight. >> thanks for having me. >> affordability is the biggest issue fatesing the housing relief coming in tha regard ee into the new >>year. ell 2019, buyers have a lot of challenges out there when it

comeso afford abili preponderates came down and and the market slowed a bit which gaves a better taheton 2018 ob 2017 fewer bidding wars. but the underlying problem is still prices. >> and what about mortgage rates? we saw them tick up tod. but historically they're sti low. but consumers seem to be extremely sensitive to those smallri ions. >> mortgage rates are low from a historical perspective.y any time t tick up or down it does impact how much you pay every month. but most buyers are looking for a home in their price range where they can afford the downpayment. and that matter more than just the monthly mortgage payment changing by a few dollars. >> supply is of course a big issue. home builders have been retict about building new homes. but i was reading the first time in a while home building contbebuted to gdp n in our economy. that has to provide some hope, doesn't it? do you think that's the beginning of a trend?

>> that's right, home builders pay attentioneso int rates too appear opinion and when they come down they can afford to build more. ufrmt we have a really big housing shortage here in the u.s. that's evearr in places like california and other expensive coastal i think it's going to be a long time before building really puts a dent in home affordability. >> so what's your take for those who are sitting there saying well, i don't know, is this a god time to go out and buy a house? or should i wait for thell traditio stronger spring selling season? >> it really depends on theal pers situation. i think right now it is a good time to buy a home. compared tonextier. there might be even more competition prices might be even higher. i wouldn't advise anyone to wait thinking that they're getting a better deal latern. with this housing market be a and the lack of supply of homes, i only see price going up. >> darrell fair weather with re fin. thank yo joining us. >> thank you.

up next, how about a o nice co koof are coffee without the coffee. >> coffee comes in a lot of forms. hot, cold, flavored but have you without coffe beans. made i'm in kate rodgers in seattle and tonight o "nightly business report" we tell you how and w one start-up is doing just that. ♪ ♪ finally tonight, the coffee industry has a sustainability problem. most is grown in certain latitudes aroun the rld. and potential climb change is forcing farms to continually move higher with where there is less land. but one company set out to solve

that problem by taking t bean out of your morning cup of joe. kait rogers in saelts to see what the buzz is all about. >> coffee, it's a ritual for many. the brewing, ttaste, smell, but one seattle start-up says it figured out how to make a great cup of coffee bout without the bean called molecular coffee if you wonhy you're not alone. >> many don't like the taste of coffee. lot of people add cream and sugar to coffee because they don't like the taste. one reason we thought let's make a better tasting cup of coffee. but really what's driving us is the whole deforestation and the long-term viability of coffee. >>om based in seattle not far from the starbucks in pike's place market was founded by these friends from the tech start-up and consumer package goods world the two say they're coffee lovers but know that coffee

production as it stands today may not be sustainable. most of it's grown in certain latitudes and climate changece will f farms to continually move higher where there is less land is a so they reverse enneered t coffee bean making it materials from including sun flower seed husks and watermelon seeds. >> they are normally discarded by farmers. we find compounds in the ingredients to use to contribute body and the mouth feel of coffee. we're taking upcycled ingredients and naturally derived sustainable ingredients and use tha as the base for the coffee. >> yes it does have could have even. >> ge it a ell. >> the project began on kick starter raising $25,000. then the venture capital world came in with .6illion from horizon vept yurs backer of impossible foods. and among atomo adviser is ceo of soilant making plant

based male replacement. >> this is not fad it's here to stay. because we have to do it, finding disruptive solutions to the issues that we're facing om a sustainability a stoimt. >> they plan to ship the first starter investors this january as it continues working to get the coffee grounds right for ho. br they say the cold brew should be >> we had tout the product to r. the test here in seattle up against another leadiold brew. >> which one did you like better. >> this one. >> i like this one better. >> and the people liked it. seven out of ten chose atomo. >> amazing. >> i like that. really good. >> can i finish. >> yes, please. >> as it turns out maybe the perfect cup of joe doesn't need a bean process. for nightly business report," kait rogs. >> some of the staff tried it and said it was sweeter but not sure you need to call it coffee if you're not using coffee beans. >> call ithi som else. >> something else we'll come one

a name. >>y he. >> before we go a look at thefi l numbers on wall street, the dow rose 182 points to a record 27674. the nasdaq rose 23. s&p 500 addedec eight for ad close as well. on that note we have to get a cup of coffee. i'm sue herera. >> or something else. >> or something else. >> i'm bill griffeth. haveng great eve see you tomorrow. ♪ ♪ ♪

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