this is nightly business report with bill griffith and sue herera. >> the great rotation. thearket rally is not being by en by any one sector but many often conflicting groups. thatpe doesn't hvery often. less is more, a new study in a some heart surgeries are not needed. leading to questions about a multibillion dollar market. the electric pony, why ford isttaching the iconic mtang name to an all electric suv. those stories and more for monday november 18th. good evening, everyone. sue is off tonight. for the dow, the s&p and the

nasdaq once again there was a decided lack of volatility. at the close, they had very modest gains. it was enough. the dow rose 39 points. thisas not just another record powered by stks. this shows some strength in unexpected places. that could mean new opportunities for invests. >> another quiet run today. led by real estate staples. it's been a solid day. pushing sectors to new highs. not only is the market cap

rate but the equ rated vergsz of that index is also at new highs. it carried thead b index higher. the gains are more broad based. thatoo really news, investors love that. the fact is, value and growth stocks are hit new highs at the same time. that's a little unusual. value stocks, things like bank stocks. beyond that, a defensive cyclical names are hitting new highs. alth care, nal highs, right g with cyclical like technology and communication services. you s? it seems like every time one sector falters, another its play. and much of that optimism has been fueled by positive trade headlines. maybe global growth is btoming out. how long can the so called perfect rotation continue? weon't know, but eoy it.

for nightly bess report, i'm b pisani. >> one area of the market where earn vesters are putting mtoey ork are those value stock how long can that rally last. brian good tsee you again.e >> you'r skeptical about this ralue led y, why? >> typically value needs a catalyst to outperform on a persistent basis,al thi rally is the result of very weak economic activity in the summer and a market that had gotten very bearish and even inverted the yield curve, what you're seeing is a rovy rates up, the yield curve normalizing, you should expect value t w dol in that type of environment. beyond that, you need aat lift. that would usually be the united states moving higher to a sustained level of groeblg. i think we're normalizing back

toward trend and in a more trend growth envi inment, would call that slow growth world, investors tend to favor true growth assets. >> the industrials andhe financials and some others you'reg maybe be careful with those right now? >> it's not that they won't 3er form well, they'll perform fine, it's just whether growth i going to outperform value. leadership is likely to revert back to the more growth oriented partsf the market. to unlock value, i would think you would need better growth, whh means rates up silg significantly.we're in an envir ates backed up from very dire levels. the yield curve has steepened a little bit, in order to really like value, you would have to think that trend continues. that's going to favor true

growth assets. >> if memory serves, value stocks tend to do well near the end of a market cycle. do you think that's what's going on here? >> no, i think value would do well at thdepths of a cession into the recovery. this is not that you've hadck growth s run for a while. and the market cap breaks and the more value oriented parts of wee market do , this is a recovery off a pretty weak level in the summer this is not the ends of the cycle. if anything, i think this cycle ll go on for far longer than most people expect. owth is reason will. the feds easing, i don't think the cycle i ending any time soon. this is a value driven recovery from pretty rough levels in the summer in order for value to to a h sustainable level ofget growth. >> very good >> thanks for joining us. >> wall street strategists are starting to put out their

recast for next year. credit suisse put a target on the s&p 5 for next year. that's a 10% raise for where that index stands today. we've seen the index so farhis year. foreral years now, wall street and silicon valley have been obsessed with companies that stir things up. someld guard companies that wod seem to be vulnerable to disrtion are defying expectations. mike takes a look now at these companies that aretanding strong. >> we can call them the undisrupted champions of wall street, a small group of s has persuaded wall street they have a sturdy plan toeet the future. their stock prices have outrun the s&p 500 over the past year, investors have endowed them with

aua von premium of the broad market between 40 and 50%. this group includes walmart, nike and starcks. the com shares are up 14% for t s 500 index. valuation premiums of up to 50%. the reason,to inv have determin that the companies have successfully adapted to the digital world while keeping a firmold on their customers loyalties. disney was an instantcc s, walmart is taking market share with online ordering.ni has done so well, that it quit selling through amazon and starbucks has figured out online ordering itself. the questionnow, have investors cowded a bit too eagerly into these popular blps.

nike and starbucksre several perfect below their respective highs. they will be willing to give investors the benefit of the dow. >> first thing this ing, jerome powell metust the white to discuss economic issues, they talked about trade, growth, employment trends and inflation. as you well know, the two have been at odds over the directi of monetary policy, the president described this morning's meeti g asd and cordial. and afterwards, the central bank issued a statement saying theo commentse president were consistent with his remarks to congress last . >> here in the united states the stock market h been encouraged about the ongoinal tradeks with china. in beijing, there's a growing sense that getting a deal done will not be easy.>>

a deal can be reached this a government sou told me that people were troubled when president trump said there was no agreement on phasing out tariffs. e chinese side felt they had an agreement in principle. there continues to be disagreeme on basic points of the deal too. the u.s. is pushing for scific commitments on agricultural purchases. it feels the move could alienate other trading partners. people here are unclr of president trump's political standing. because of the possible peachment and t election only a year away. the chinese will continue to negotiate. there's a big push to prioritize china cut the short term funding rate for the first time in four years. analysts expect the central bank to cut itse rat on wednesday. time to take a loo at some

of today's upgrades and downgrades. we begin withs sha of sherwen williams who were downgraded. that after a 50% runup this year. that stock fell 1% t today 5 586.01. morgan stanley cited the company's growth outlook. price target $180. and trip adviser was upgraded to market performed the analyst cited a potential recovery in that company's online search metrics. shares rose 1 1/2%o 31.61. a large study which includes some of the mostigorous research to de -- did they

really need heart surgery? >> for millions ofpl p with a condition known as stable heart sease, the medical wisdom on treatment may be less is more. routine intervention with stents about the same as drug therapy and good health habits alone, in prevents events like heart attacks. the trial included about 5,000 patients with stable heart disease. to find those wh blocked arteries that aren't causing an immediate issue. associate chi of interventional cardiology. >> these patients may have chest discomfort when they go outside, walk up hills. when they shovel their snow, et cetera. this is a reliable symptom that happens when they exert themselves. >> for those paents, the trial results can help guide

conversations wis. their doct >> whe one is told they have a 60% or 70% blockage in their heart. they get concerned, they want the blockage to go away.f partur role is to reassure those patients and say even though that 60% blockage is there, and yes while i do have a therapy that i can give you that can make that -- reduce that blockage to zero, it's not going to change anything for you. >> interventions like stents omfort leviate chest di on wall street investors closely watch the results to see if the market fortents continues to grow. >> it's an overall positive some investors were concerned the study caused worse outcomes. in stead there were situations where they showed a bene

>>ed big positive. and i think that will continue to drive an gina. >> stents still have an important role for patients. those that have chest pain that doesn't go away after a f minutes may be having a heart nftack. it provides moremation to guide treatment. still ahead, why stockpickers are still struggling this . ♪ senate majority leader mitch

mcconnell said the white house has signaled to him their woul shutdown at the end of the week. the measure would flance fede agencies through december 20th. the house votes o that billrr to, mcconnell is condent it would pass in the senate and that the president would sign it into law. the money spent on sports bettingere in the u.s. could be triple by that of the u.k. by 2023. analysts are forecasting growth $12 billion. theeportec citedd football betting in new jersey last moarh. a se report from jeffries looked at gaming in macau andem said nr is shaping up to be a more difficult month because of the protests in hong kong. in the year and a half since the supreme court cleared the way for sports betting in the states, other than in nevada. a growing number of states have

legalize sports gambling those states are learning the real driver is placed by putting bets in the palm of yourhand. >> walk into a sports book and you'll see players laying down bets. more and more, they're skipping the line and wagering right on their mobil phones. >> it's convenient, fun and there's a lot more you can do on your phone. >> a lot of betting takes place within the game, who will score the next touchdown, jump shot or home run. the seven states now offering mobi sports gambling are working to maximize revenue. both in handle and in taxes collected for state and local govern. >> right here in nevada we do about 70% of our handle in s mobil, and thaspite the fact that we have 113 retail locations in nevadan andther

states that theroportion is higher. >> mobil sports betting increases biness for online casinos. forcing players to plunk down money on slots. in new jersey, the casino business doubled aftrt s gambling was offered on mobil phones. mobil could bring in80% of gaming revenues in the future. >> anything thatpl drives p to the mobil, they can see a host of options, things they can do.and they get interested in i. >> there's a lot of competition for those eyeballs, casinos, offering big bucks to re in new customers. th app makers and tech wizards are crucial in easy to use platform companies are looking for an anything to put the odds in their favor

>> an estimated $150 billion was bet illegally before the supreme court decision. since then, $11 billion has been bet legally. the convenience of mobilaming makes it easier to compete againstho illegal and offshore operators. >> the reality is, srtsbe ing is happening today, it's happening on people's phones. they're using illeg sites. if you don't offer a competitive mobil product in a estate, peopl aren't going to change their behavior. the sports leagues and media companies are hoping the move to mobil will boost their bottom lines as well. says no to xerox. that's where we begin tonight's market focus voting unanimously t rej the buyout offer saying it was too low. and not in theest independent of its shareholders hp fel a

fraction.while xerox was up a t mobil said today that john leather is going to step down on apl 30th next year. leather will remain on the coany's boar t mobil says the move is part of its previouslyd determi succession plan. kodi is taking aol conng steak until kylie jenner'snd make-upkin care business. they're paying $600 million for a 51% stake, which means that jenner's 4-year-old company is already worth $1.2 billion. kodi is looking to t int her large social media subscribers. 19 is going down as another bad year forstockpicke

stockpickers only three of the top 20 active mutualunds in the u.s. are beating the market this year are youetter off investing in passively managed index funds or not? >> good to see you again, welcome back. >> good to be with you. >> theunds continue to strugg. it's not just because they're picking the wrong stocks, thehe have fees involved, so they have to perform even better than those indexn' funds, they? >> that's right. the average mutual fund charges about 1% for its fee, which is the index which is free. you can getanard or i shares for just pennies on the dollar. actively managed fods have perform even better. we have a strong market. we're up more than 20%.

many of these mutual funds are doing well, they're just not doing well enough. >> i know those three funds that are doing better than the market theirname.he word growth in as we've already established growth, this has been a growth market here. what role does any activ managed portfolio play in someone's portfolio these days? >> more investors have managed mutual fundses. we're sing index base, they're gaining share, but it is still a smaller part of the portfolio, most of our viewers are in actively managed mutual funds that are underperforming that broader benchmark. >> i've often maintained the actively managed fundsng are g to underperform an up market, they're the place you may want to be in a down market where

index funds have no place to hide? >> that's correct. they can take advantage when i ther volatility in the marketplace, they stand a better chance. the data is mixed as to whether or not they do well in the fourth quartert we j had in 2018, we didn't see that outperformance like we had hoped for. >> maybe a blend of active and passive f the typical portfolio these days? >> if'r y looking at strategies, aive managemt has struggled. bond portfolios, we've seen more success you can combine active and passive together in one portfolio. todd, thanks for joining us tonight. >> thank you. comg up, ford's electric horsepower. >> this is the newanustang. yes, it's an suv. an electric suv. what's behind the mustang mak-e?

that's coming up on nightly business report. emirates airlines has ordered 50 planes from airbus. the jets ordered are the a-350s, whichrates says wilxi give them flity in terms of range. arou airbus executive was asked whether his company has benefited from the grounding of boeing 737 max.

>> it does not benef anyone in this industry, the least of which would b airbus. it's a tragedy, it's an issue if we're going to resolve, but it is not good for t competitors to see problems on any one particular airplane. >> experts expect orders for both airbus and boeing to be smaller this year than in past years. finallyfo tonight. believes the mustang is ready to go electric. the automaker h t p iconic mustang name on the company's first all electric suv. wer and have the horse the appeal to be a game changer for that company? phil lebeau is in los angeles for us tonight. >> this iso pony car, but it is the all new, all electric suv the mustang mak-e. a name ford's chairman resisted

when the team first approached them about calling it a muss taj. ep the produ evolving the performancend styling of it. there was a point where i finally realized, this is an amazing cle, and yes it's worthy of the mustang pony. >> withge a r of 300 miles fu47 charged, an miles after a 10 minute quick charge, fos beliehe mak-e has the ability to help its dismalelectric car. ford hasn't sold a single pure electric car this year. truth is, electric models like the style and appeal of tesla's. while other recently introduced models have recently failednn t cot with buyers, which isre why many a wondering if the mak-e will finally be the e.d.

that challenges tesla. >> i think it really needs a shake-up, tesla' proven these people want utility, they want an environmentally friendly car. i think ford has proved that, you can d a this at pretty affordable price point. >> will mustang fans care that this electric suv bears little resemblance to the pony car? maybe. bu ford needs the horses in its stable to remind americans it does more than sell pickup trucks. >> the heart of the company is on trial here, because weave get this right, because our mustang share performance just keeps getting better and better, we're the number one sports car in the world with mustang, and this wasta imp not to disrupt the state of that. >> the mak-e rolls out late next year with a base pricetarting $44,000. competitive with tesla's model

y. the ev race is starting to heat up. phil lebeau, nightly business report, los angeles. before we go, a final look at theay onl wstreet, modest gains for all three major averages, enough to put them in record territory. the dow up 31, the nasdaq gaing 9 points and the s&p up 1. that is "nightly business report" f tonight, i'm bill griffi griffith, thank you for watching as always. have a great evening. see .

narrator: funding for this presentation is made possible by... woman: babbel, a language app that teaches real life conversations in a new language, like spanish, french, german, italian and more. babbel's 10 to 15 minute lessons are available as an app or online. more information on babbel.com. narrator: funding was also provided by... the freeman foundation. by judy and per blum-kovler foundation. pursuingerolutions for a's neglected needs. and by contributions to this pbs station from viewers like you, thank you. woman: and now, bbc world news.