♪ ♪ this is nightly business report, w sh herera and bill griffin. >> win streak snapped. stocks log their first down week in more than a month asco trade erns linger on wall street. >> critical shortage -- the supply of homes for sale is falling across the country. and it may only get worse come the spring season. >> gb and go -- annt investigatio a brazen crime that's hurting retailers' ofits. those stories and much more tonight on us"nightlyess report" for friday november 22. >> good evening. everyone and welcome. lasted. was fun while it the major indices fell this week for the first time in more than a month.li coing signals on the pros progress of trade negotiations

betweenhe u.s. and china dampened investor sentiment. the markets re after chinese president xi called for better communication between beijinggt and wash. the dow jones industrial average was up 109 points. the nasdaq added 13 and the s&p 500 rose 6. but it wasn'tnough to lift the indices for the week. >> first thing this morning, there was a headline from "the wall street journal" that got just abouteverybody's attention. it read -- bridgewater bets big on market drop. now bridgewater associates is the world's largest hedge fund with about $150 billion under manaorment. the r said the fund had purchased roughly $1 billion worth of put options, a bet that would, a bet that the market would go down. around middabridgewater rest.er ray dalio put ito it's wrong, i want to make it

clear that we don't havech any et that the stock market will fall. "the wall stre journal" said e arti made it clear that the trade wasn't a bearish bet the market but h rather age against exposure to the equity markets. it's the word hedge weant to focus on. the stock market is close to all-time highs. should you hedge your portfolio? maybe you already are. and don't realize it.in jo us tonight is five-star nd manager thomas um. president and ceo of the plum balanced fund. tom, welcome. what about this idea? hedge funds tend t make very concentrated bets. so they need to hedge often. t wha about the average investor out there? should they consciously hedge their portfolio? >> i think you should aays be hedged, bill. always the possibility that the market could go down. so you have to prepared for that but the way that most of us prepare is by having a balance

ourportfolio. balance makes sense for your life, for your dietor your exercise. it makes sense for your balance the risk and the return potential. >> what is the besto way to that for the individual investor? funds?you it through mutual do you do you do it through etf's?yo what d recommend? >> well sue and bill, when you two were babes in arms, when the show started, "nightlys busin report" 40 years ago, the s&p 500 was under $100. now it's 31 times higher. in 40 years. so you think about that. the market generally goes up. but theayhat you can moderate that volatility, because it does go down. sometimes for a lot longer than we'd like to tolerate. what you need to do is just h ge d balance. and if you do that, i don't think that you have to worry about having some type of exotic hedges.

hedges are insurance and they cost a lot of money to protect you fro something that probably overprotects you. >> there's a word we use oen en we talk about investing portfolios. and that is, diversification. when you thi about it. that is the way you hedge your poifrt many times, right? >>right. and diversification includes money market, includesixed income. it includes stocks and it includes the types of stock th you own. that diversification is by the best hedge you can have. because some people occasionally are pretty good at predicting when a marke will go down, they don't get back in. having an actual balance in your portfolio, where you cantaeel comfe that you've got the risk tolerances, your own our individual needs, your cash flow. your problems that you might have paying b or not paying

bills. >> thanks to thomas plum with the five-star plum balanced fund tonight. ed to economy now,nd the consumer sentiment. whichigame inr than expected in november. the university of michigan's index climbed to levels not see. since ju economists attributed it to higher household wealth, loweri rest rates and an easing of concerns over trade tensions. a separate report showed that manufacturing activity in the mid-atlantic region picked up in november. firms said they were generally optimistic about the future. > in washington, president trump met with vaping industry executives today, and with public health officials, they all clashed on what should be donebout the rising use of e-cigarettes among teens. amon rsja reports. >> it ended up being a argument session as pro and anti-vaping sides clashed in fesnt of the

ent of the united states. giving him an opportunity to hear all sides of theebate as he makes up mind on where he wants to land on banning flavored e-cigaretses. if he wo do that or not. the surprise guest in the room toroy, mitt ey, the republican senator from utah, romney taking the ant argument, saying to him, it didn't matter if employees and companies lost jobs. moremportantly are that they save children. said we're taking these products off the market, juul said. the adults have access todu menthol ps through juul. they have tobacco flavored products. but p out cotton candy flavor and what is it, unicorn poop flavor? this is kid products. we have to put the kids firs >> this is originally billed as a private session at the white house. it was goingo be behind closed doors. inead the president brought cameras in. you could see in real-time, both

sides appeal to the president personally. trying to persuade him on an issue that's brand new in the american political discourse. it matters so deeply to so many acss thecountry. the pro vaping side arguing that michael bloomberg, the former new york city mayor is financing anti-vapingnddvocacy efforts therefore, the president should be skeptical of that. because bloomberg might be running again him as a democrat in 20 for the presiden . on the othnd, you had health care advocates, arguing ultimately that this is something the president gott riack in september. when he put out his initial proposal. he should stick to that. because he was right the first time around. both sides making an argument. theresident not committing to anything in specific here at the white house today. for nightly business report, at the white house. >> also in shington, new proposals put forth on affording a housing.al senator k hs and representative maxine waters introduced a bill that calls for investing more than $100 billion in thingsike afforble

housing rental units and aging public housing. both senator harris and ongresswoman waters are fro california. certainly the need for housing is an issue all across the countr demand is strong, but supply is critically low and getting lower. and a diana lipper reports, the declines are worse in some surprising places. f>> the supply homes for sale is falling across the nation. asan d soars as attractive mortgage rates pull buyers off the sidelines. at the end of october. inventory fell to a 3.9-nth supply. that's how long it would sell all of the nearly two million homes for sale at the current sales pace. a healthy market balanceduy betweens and sellers, is considered to be a six-mosuh ly. >> what we did see over the past 18 months was some inventory rise, because there w reduced activity on the demand side, more recently with lower interest rates we have people coming back into the houng market ahat pulled down inventory even lower.

>> all real estate is local and some markets are seeing supply falling more dmatically and it's not just the california market. seattle, phoenix,nc nati, pittsburgh, st. louis, kansas city and d.c. all down double-digit rcentages in supply compared to a year ago. part of that is affordability, especially in the midwest and in other places it's jobs, like re in d.c. where tech is booming and amazon is moving in. the supply is worse on the low end, down over 6% from a year ago for homes priced between and 250,000. according to the realtors, supply is down 15% for homes priced below 100,000. in the move-up market, supply is rising. but barely. a at around 1% annually. >> in the current environme where cos are higher for labor, lumber and lots. you're not going to seeuilders edge in that much into the lower end of the market. a of thisn the fall when supplies usually rise. only get worse come spring. for nightly business report, i'm

diana olich in washington. > time to look at some upgrades and downgrades. uber was upgrade dodd buy from hold. bd analyst cites improvement in e core business, the prices target$34. the stock rose a fraction to 29.56. l brands was upgraded to inline. the analysts cites the company's recent earnings report. the price target is $18. the shares were up more than 4.5% to 18.01. it was supposed to be a big moment for tesla. ceo elon musk unveiled his s company' highly anticipated all-electric pickup truck. but the cybertck's deb was not exactly a smaing success. and the stock fell more than 6% in today's seion. phil lebeau has more. >> talk about a wil ride. tesla's bertruck looked like something out of a syfyvi

it's ceo elon musk's vision of become. kup trucks should >> trucks have been the same for a very long time. like 100 years. trucks have been basically the wed to try something different. >> oh, it's different. including a body made of ainless steel. and windows tesla says are shatterpro. even thoug a demonstration on o. >> , well maybe that was a little too hard. >> overall, the cybertruck's debut left many >> i kind of view it as a disaster in terms of other laun events, in terms o what we saw with the cracked glass, just from an optical perspective. >> the u.s. pickup markes the most profitable and important segment in the world for the big three, which is why they'veed poillions into building truck brands that have the most loyal customs. peat buyers are a primary reason ford, gm and fiat chrysler dominate the pickup market. but they're also working to

develop their own electric pickups. nothe big three start-ups like lordstown motors and ribeon will soon come out with ev trucks of their own. which is whyieany bve tesla, sswith so much suc building electric cars, could break the big three's stranglehold on pickups, but after seeing the cybertruck, some analysts think it will be no moreic than a model. >> this is more of a brand-building event than anythi else. elon has played way too much minecraft over the last several that's what allows him to connect with the kids out there. tesla plans to start selling the cybertruck in late 2021. with models priced between 40 and $70,000. as elon musk rolls out a new image for theri an pickup truck. report,chicago.ghtly business still ahead, an investigation into a brazen ticrime that's h retailers' profits. ♪ ♪

the fcc vote dodd blockel americanom companies from using federal funds to buy huawei equipment. the cmission designated huawei as a national security risk. huawei, a chinese telecom giant, called the order quote unlawful and it asked the fcc to rethink it's profoundly mistaken order. stealing not a new crime of course. but it is becoming more and more expensive for retailers. in fact retail crime losses are

at an all-time high rht now according to the national retail federation. earlier this week.me depot said its profits were industry code word for theft among other things. so the company gave u exclusive access to seeht how it fs a ver-ending battle against stealing. courtney reagan has our investation. grab and go. >> you're watching brazen retail theft. this affec our so sure they won't get caught that some even get aggressive when stopped. this surveillance video from home depot shows. most likely these people are items for their o use. who steal instead it's a bigger problem known as organized retailwicrim. th criminals working together to steal for profit. home depot's jamie born investigate the theft. it srts with boosters. >> a booer is somebody that is basically professional shop lifter, they're doing it for

profit. notust forersonal use. >> are they jus guessing what items are in mand? do theynow it from history? i know that i can sell a lot of -- drills. >> there are manyio loc out there, tha are giving lists to the boosters. >> they'reing lists, they're part of the crime, too,re they not? >> absolutely. locations was this pawn shop. the manager was charged with selling stolen property. the case is ongoing. r next stop is ray. born and his tea helped wcen law enfornt served a search warrant on this utah home. >> we provide them the value of the merchandise. stolen power drills and other he wasarrested.ok. law enforcement seized a pallet ll of items from the home. they wer brought to this wa house. it may look like home depot, but this is actually a evidence

room. inside, is over $1 million worth of stolen products. seized from a raid of seven pawp >> well actually see on the inside of a pawn shop. they'll say lowe's and home depot price, 129.99r price, 79.99. >> chris walden is a special agent with utah attorney general's office. >> how is it that second-hand merchants are selling it for leha tn what a big box retailer like lowe's can even buy the product for? >> they found the answer in these sting operations. >> sell them. >> this is undercover vide of lawnforcement selling items that seem stolen. to those p shops. the case led to a new utah law that makes it harder for pawn shops to buy unopened inproduct. >> we passed the new law, it seems like it's getting better we seenr a shift o to e-commerce. >> we saw confiscated during the raid. here theyere for sale on

facebook. organized retail crime is growing. and costs the industry nearly $800,000 for every $1 billion in sales. a hit in the last three quarters becae of higher shrink or loss of goods. which includes organized retail crime. >> we don't comment on our particular numbers, we are seeing shrinkage rates rise across the country. >> scott glen isrg in c of asset protection for home depot. >> organized retail crime drives other crimes. it drives drugs, it drives guns. it drives human trafficking. i think the opioid and drug epidemic is a piece of it. >> why should consumers care that this is happening? >> we've been very good about not raising prices as a result of our shrink equation. but if it gets t a point where we cannot continue to do business this way, ultimately we'll have to pass it along. >> for nigly businessreport, i'm courtney reagan in sutt lake city, . foot locker gets tripped up

heading into the holidays where we begin tonight's market focus. the sporting goods retailer topped wall street expectations thanks to a rise in comparable sales. but foot lockerk gave a w outlook for the holiday season due to struggles and expanding its apparel unit. the shares dropped 3% to 40.25. j.m. smucker's ses missed expectations in part due to a decline in pet foosi ss. the company beat earnings estimates but lowered full-year foescast. sh still rose about 4% to 108.40. uarterly results at the apparel retailer buckle topped in same-store sales. to a the compa also saw growth in online sales, the shares rose nearly 20% to 26.71. an increase in sneaker demand and its strongest rise in comp ses since 2013 helped the sporting goods company . raised guidance, shareslimbed

14.5% as a result to 28.69 today. and income tax software company intuit reported better-than-expected results, driven by growth in small nesiness traffic on but the maker of turbo tax and quick books maintainedts full-year revenue forecast. that is below analysts' expectations. intuit fell more than 4% to 259.81. it is time for our weekly maet monitor, who has names of companie he says will depend their particularndustries over the next year and les on the ups and downs of trade news, joining us is chris dorderro. the chief investment officer at regent atlantic good to s you again. this is a narrative that is somewhat refreshing because it seems as though we're, we're basically chained to the trade war and the narratives that we've heard from it. but you decided to smooth out the ups and downs a little bit. >> i wantedo look for some stocks, put stocks in the thrtfolio that aren't so dependant o trade war and

also will do well in sort of low growth economy. and that's what i think we're likg gly going to get over the next year or so. the economy is skimmingal g. we're not going to have strong growth. choiceright your first is royal dutch shell. >> royal dutch because it pays a handsome dividend. dividend.tter than a 6% one of the lowest-cost oil producers, so it's a greatba ain and a good income vehicle to add to portfolios. >> you chose a utility, another classic company that seemed to be insulated from the trade wars. exelon. a good dividend. why did you pick this one? >> so exelon has low-cost of pruction but more importantly is one of the cleanest producers out there. slates into a lot of appeal for its stock. and also i think it has the best positi for thefuture. >> you picked a retailer next,

and it's key at this time of year. holiday season. and they had a very good earnings report the other day as well. while else do you like targ? >> like target because one, i think that retailers will do better this holiday season. think g we've finalten to the point where we've all experienced that, that hey, your gift just didn't make it in time and i'm sorry about it. but you know, it didn't get delivered. and so there's some tangible ability there and think target is in a good place to benefit from that. in this holiday season. >> so many individual investors these days are in index funds, they're in exchange-traded funds. so their exposure to the market is more broad than what you're suggesting here and they are subject to the o vagariethe trade wars going on now. what's your outlook for the market here? >> so i think we had a stron year, i thinkco themy is definitely slowing. so we're not going to see anything like we saw thi year and what we see going forward is that i think a pivot more into

stocks that are more of value focus. more smaller cap. m indexing andket capitalization has led for a long time. and i think we're possibly at ap inflectint where we see that change going forward. >> and interest rates very quickly? yota expect them to steady now? >> i think they're going to stay steady. the fedsoing to wait to see what happens. but i don't see any big movements up or down. >> chris, thanks so much. >> chris cordarrel joining us with regis atlantic. comingp can disney's "frozen" heat up a chilly box office?

stub hubive nation a others were asked to provide documents explaining how tickets are allocated, how fees are de rmined. and whether tickets might be placed exclusively on the secondarymarket. the committee says it's looking into what it calls potentily unfair andti dec practices. finally tonight, this is a expected to big weend for disney and a big weekend for the hollywood box office. "frozen ii" makes its debut and expectatnsre for a warm reception. julia boston has details. >> theonequel to the secd biggest animated movie of all me is expected to bring in as much as $120 million the domestic box office this weekend. bolstered by positivereviews. if it breaks $100 million, it

would be the first animatede mo to do so outside the summer season. and "frozen ii" is expected to become disney's sixth movie to top $1 billion this year. >> disney's legacy is animation and their brand coupled with something like "frozen" a story like that, they created a new classic back in 2013. with "frozen." it seemsike only disney is able to really do that. because the legacy of the brand coupled with gre content that really appeals to families. and that's been tir bread a butter since the inception of the company. >> "frozen" fans paying $25 a ticket for a special pajama party showing at disney's el captain theater at 10:00 a.m. in hollywood. many wearing all variety of gear to eat breakfast a meetnna and elsa. >> it's been six years since the iginal, but as you can tell, for an early screening, fans art turningn droves. which is a testament to disney's

act to take an original idea and turn it into a franchise, product sales and content for the theme parks, but also success at the box offi. which disney is dominating this year. blockbuster hit.s could use a total domestic ticket sales are down more than 6% fro the same period in 2018. and the november box office so far isown 27% from last year. the big question is whether the growth of streaming services, apple tv plus and disney plus both launched earer this h. mont have been keeping people at home and puttingreure on the box office. >> unicorn. ice cream.ca le. >> if "frozen ii" is a hit it could not only revive the box office, but also drive subscribers to disney plus, which has the first"frozen" film and will get the second one next year. for b"nightlyiness report" i'm julia borsten los anges. let's look at the day on wall street. the dow was up oi109s to

27,875. the nasdaq added 1 t and s&p 500 rose 6. the major averages were all lower for the week, and that snapped a string of gains. it was also a wee that saw the stock market hit new highs. and that's us"nightlyess report" for tonight i'm sue herera. thanks for joining us. >> i'm bill griffith. have a great weekend. see you .

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