♪>> announcer: this is "nightly business report" with bill erera.th and sue ♪ trade driven rally. the s&p 500 and the ndaq closed a records after the u.s. reaches a phase 1 trade deal in principle with china. new opportunities. will trade deals open up more investment ideas for those looking for new places to grow their money? location, location, location. pennsylvania $150 million fixer-upper that just became the most expensive los angeles home ever sold. those stories andore ton on "nightly business re for thursday, december 12th. and we do bid you good evening, everybody. and welcome. it's the headline that investors have been waiting for. a phase 1-trade deal between the

u.s. and china has reportey been agreed to in principle pending president trump's stocks initially rose sharply. but the rally moderate add bit in part because investors were waiting for details late in the day. but it s still enougho send the s&p 500 and the nasdaq composite to new records. the dow itself gained 220 points r a $28132. the nasq up 63. the s&p rose by 26. and we'll more on the market action in just a moment. but we begin tonight at the white house where kayla tausche has been covering the day's developments. kayla, what do we know about the deal so far? >> well thisevening, bill we are still awaiting the official word from the white house and e office of the u.s. trade representative. what we know is that theg negotiateam of trade and economic advisers met with president trump today f roughly an hour. and that last week that people in presented to china an olive branch of sorts that would see the tariffs set for sunday

delays and previous rounds of tariffs curtailed significantly. happened in the intervening days and what the deal presented to the president todays. also whether the president signed off on that. my sources say president trump wanted to china to commit to a higher dollar fure of agriculturals purchases to before committing to roll back tariffs. >> kayla, you outlined some of the questions. but what are theio que still remaining unanswered >> the questions, sue are what happens to the tariffs otap for this weekend? what happens to the tariffs put in place previously for thoseie comp that have been paying those tariffsir when t imports arrived at the border here? then the question of how much has china committed to buy in u.s. goods, wther far products or natural gas, or manufactured goods? and then what is the path from here? is this the end of trade talks with china as we know it for now? or is there a path to continue tord a phase 2 and phase 3 of

some of the thornier come. ecal property issso >> much more work to be done at this point. kayla tausche at the white thanks for joining us tonight. that tradeews certainly lifted sentiments on wall anreet. and pis watched it unfold from the new york stock exchange. >> reporter: stocks stad a somewhat measuredally on thursday in light of the buzz markets got a jump after president trump tweeted he was close to a big deal with china adding they want it and so do we. reports came a in 2:30 eastern say the two sides reached a phase 1 deal a bit more comprehensive ahead of the loomg sunday tariff deadline. financials materials, retail, industrials allose. we s new highs in big industrials like illinois tool works andck stanley b and decker. tech names roared higher. microsoft and apple new high process p highs. semi conductor hit new highs.

the biggest breakout was the banks. bod yields spike throughout the session. it i group and fifth third d sit appear key corpse to new highs. crude oil prices climbed after opec forecast a supply deficit next year. spliet allhe optimism of getting the 11th hour deal done key questions remain. we'll see. we fet the answers if. . for "nightly business report" i'm bob pisani at the new york stock exchange. >> john trainer talks about a investment opportunities that the trade deal might create. chief investmentfficert people's united advisers. john, good to see you again welcome back. >> thank you. >> bob itemized some of the sectors benefitting today. is that where you look? or are there other opportunities you could see now we see some progress on trade? the most encouraging aspect he talked about on the rally was e rally i financials.

financials are really -- the guide dog for the markets. when we talkith the clients we say keep you eye on financials they give you a sense of where the markets and the economys going. we believehis continues and it it setp for a positive start to the new year. the financials ar key and great to see them moving. >> you like microsoft bause of the export potential it has if indeed in gets signed on the dotted line. >> that's right. the technology stocks have done well this year. but if you thinkt about w we just talked about the trade has been about intellectual sy property and technology ansfer. so if there is a lessening in trade tensions that wl flo through to technology stocks. we think they will do well again next year.

>> i don't want to get ahead of ourselves. bu defensive issues have been pretty popular for obvious asons as we had the trade uncertainty. but as things proess here do you start to see to look to more growth categories once again? >> well, i'd say what we're looking at a more economically cyclical, economically sensitive companie still want companies that are growing revenues and growing the top line. es want to see good revenue growth, good s growth, good earnings growths. but we think we're seeing more of that come from the let's say the economically sensitive stocks rather than the very defensive consumer shares that have done well. so while t overall averages could stay fairly stable nt nkyear, we t you see some big movement in the underlying stocks. esere are good opportunio make money next year. >> very quickly, john, there are couple of stocks that have been beaten down through the whole two-year trade war, the

poster child has been deere in the agricultural secretary. but also the farmer who aren't been a guying much would you step into that name. >> hadighy equity team yesterday, today we talked about deere, that that's not a stock we own.e butsaid, boy, the seeds so to say to coin a phrase, the seeds of opportunity are definitely being planted with deerel and we defin see if we see good agricultural exports ifa ch steps you purchases that could flow through zbliefrmgtso o see you again, again thanks. thank you. >> also in washington tonight, congressional negotiators have reached a deal in principle to fund the government. the tentative agreement would aver a shutdown and total about details were not announced. but it's expected to pass the house nend week. fou've been looking for signs that inflation is

building i the economy, you still didn't get it today. the producer price index which is a measure of theholesale prices that businesses receive for goods and services, unchange in nstember when econo expected a slight rise. a separate report sho a jump in number of americans filing for unemployment benefits jobless claims as they're known rose by 49,000 to 252,000, the whghest level in more than two years. e the number may get your attention it does typically happen in this period following thangiving and it usually levels out over the next few weeks. a new survey shows that the majority of chief financial officers expect their companies head count to decrease over the next 12 months. and according t the cnbc global cfo council survey, north he america was only onee of three regions where the majori of respondents expected a reduction. can we expect more job losses in the next year?

join to us andrew amberlin, chief economist at glass door. andrew, welcome. nice to have you here. >> thank you. >> we're usually talking about on the show about a historically tight labor market.es the surveyts took me a bit by surprise. what did you make of i ? ink you put it up to economic uncertainty. i did. on the surface they are surprising because all we hear from employers is what a strong job market it is and how much difficulty they have hiring. but below the surface, it's consistent with what we see at glass door for job postings. we see job postings for big companies with 5,000 or more employees down from a year ago about six%. something is going on below the surface. >> what do you think it is. >> well you mentied uncertainty. it's not just uncertainty about trade which is helping get resolved because of today's possible deal, there is also an upcoming presidential election. there is also uncertainty about

fed policy. and there is all sorts of uncertainty about aer bro global slowdown. uncertainty is like cptenite for cfos who like to plan ahead. and that's theain factor behind this. >> there are different wayto did you get a hint from the rticular survey as to whether we were talking j cuts or ayght cfos go about it in a different >> well, i think it's very unlikely we will seeut job optimistic abouthe overall e economy. however, they might be sitting on their hands when it comes to new hires added on. the first thing you see companies do is slow down job postings rather than lay people off. because that's just -- laying people off throws away the company's most important ass. mpanies are reltant to do so. so i think that's likely to be what we will see them doing, is

dialing back slightly and part of in might be a response to profits we have seen. we have reports about weak profits. a great way to shore it up is labor costs. >> which sectors do you think are most vulnerable to job sloweden. >> manufacturing unquestionablya is already i recession. i think oil and gas is a big question mark. it depends orices. the strong sectors on glass door, health care professional services and tech leisure and hospitality. economy today. rs carrying the >> on that note, andrew chambeinith glass door thank you smuch. >> thank yos and iime to look at some of today's upgrades and downgr aes. there weot of upgrades as it happens today. upgraded to buy f neutral at c ubs. the analyst predicts a 2020 rebound for that company, including better earnings growth and better free cash flow. ed by aviation and health care divisions.

price target now $14. the stock rose 4% to 11.44 today. home depot edupgro outperform from neutral at credit suisse. the analyst citing the investment strategy in digital operations and delivery, among other things. price target now $235. that stock up 4 cen to 212.04. and starbucks upgraded are fromt ov-weight to neutral at jp morgan citing sales moment number u.s. and china. the price target $94. thre s rose 1.5% to 88.25 li f1. >> charles schwab upgraded to buy from neutral. citing the acquisition of tz amerd trade and marginsrowths. the stock rose about 3% to 51.07. kroeger upgraded to out perform from in line at ever core iss citing kbrofgt same store sales a price target is

33. the stock gained fraction to 28.20. >> still ahead a tough stretching for boeing and took a few more blows today. ♪ ♪ ♪ there is a lot of news on boeing tonight. as first reported by cnbc, the company is now delaying plans to reach record production rate of 57, 737 planes by the end of next year. eing says it will reach the rate in april much 2021. shares fell a% in the trading

session. >> american airlines is the pushingack the date it expects the 737 max to return to service looking at april 7t wh. thld make it more than a year now that the jet has been grounded and translates to roughly 50,000 american flights cancelle due to the groundingov that period. and in other developments boeing agree to pay an undisclosed amount of pony to southwest airlines f the carrier being unable to fly the 737 max. boeing helps the settlement will improve a strained relationship with one of its oldest and most toportant crs. phil lebeau in atlantanight. ♪ >> reporter: southwest airlines will soon get pai for being unable toly the 34 boein 737 max jets that have been grounded since march. boeing will pay southwest an undisclosed a aunt with imtimated $125 million from the settlement uely going to southwest employees. the money will reimburse

southwest for losing a chunk of the fleet for mostf the year. it could also help improve boeing standing with southwest. in october the air sne ceod he was fed up with the continued delays in fixing the max. >>'ve been very r. we are not happy about our situation. you know, we put -- we put our future i the hands of boeing and the max, and we ar grounded 's boei settlement announced hours before ceo dennis muenburg met with the faa dmrp steve dickson who says the max will not be recertified this year. the faa says dickson and muilenburg ded a realistic time line for getting the max back in the air. hien it returns, airlines like delta do notnk the addition of dozens of max planes will have a major impact on air fares in the.s. delta which does not fly the max hopes the plane's return helps boeing get back to the business of developing new planes and

technology. boeing focus ds on development and technology in the new frontiers of innovation that right now unfortunately they are paralyzed to be able to get after. >> ed bastion says delta would be interesting in buying boeing planes cplementing the ones it currently frys. doesn't have a need for the 737 max but perhaps a new boeine at some point in the future cld be a possibility for delta. phil lebeau, repo," atlanta. ss >> so would you get on a 737 max? that question part of a new survey showing passengers are the plane.about the safety according to the survey by bank ofri a merril lynch many say they would be hesitant to fly it even after deemed se by regulators. nearly two thirds of respondents said they would wait six months before gettingnen the p or never fly it at all. oracle reported earlangs today. and while its profit topped wall street estimates r enue fell

short. the company said growth in the cloud services and in its license support unit failed to traditional softw business. that sent the stock initially lower in after hours trading. results. onoras m on oracle's >> oracle is investing to become a bigger player in cloudak computingg on companies from amazon to salesforce. investors are on the lookout for more iheight into how effort is going. one company to watch the crowd services and license support division, the largest division, including crowd revenue as well as maintenance fees for traditional software, their revenue came in at $6.8 billion. just in line with ctexions. most analyst rate oracle a hold right now, nearly 70%. jmp patrick wall raven staying on the sidelines saying the company nee to show it can before he is comfortable d clip recommending the shares. . for "nightly business report" josh lipton, san francisco

a financial software company rings up gains in the debut an that's where we begin the market advocacy tonight. the com is called bill.com, no relatnship but gone trading to do at the new york stock exchange selling software services to small appear medium payment processing. as the ceo described it during an interview today, they helped businesses get rid of the mess that runs the back fice. >> my focus has always been the ze of the market. 81,000 businesses using our platform today, 6 million businesses across thery feeding help. if i have an opportunity to drive more, i know when you talk to the customers they get on the platform andou tell how much time it saves. they make better decisions. if that's true i want to serve everybody. >> shares were initial hi priced at $22 closing at 35.5 a gain of 61%. a mixed quarter for sienna, the optle networking components

company missed earnings estimate but topped revents forec the firm said that it had three individual customers at eachac unted for more than a 10% of the revenue in that quarter. the stock had a healthy gai of 20% to 42.62. and the world's biggest publicly traded company got bigger today. saudi aramco now worth more than $2 trin. achieving theua von sought by crown prince bin salman. the government owns the majority of the aramco. began trading only yesterday. and shares up anotherda 4lus% to close at equivalent of 36.80. >> constellation brands is deal to sell.eviously announced many of the lower priced wine and spirit brands talornia wine giant e and jgallo federal regulators raised sompetitive concerns about the deal. constellation will sell fewer brands reducing the value of the deal from 1.7 to $1.1 billion.

thetock down 1% to 179>9. broadcom now expects full-year t 2020 revenue come in above wall street estimates. citing strong demands for the chips as the 5g technology continues to be rolledut. the stock was volatile in after hours, closing the regular session up more than 2% to 327.80. and costco reported lower than expected qevrterlyue dragged down by a slowdown in e-commerce warehouse. the digital sales grew more than 5%. but it rose more than 2 in the previous quarter. the stock was volatile in initial after hours trading. closing the regular sessionp a fraction to 297.34. google, facebook and twitter oversight of the platforms rove because regulators in washington have been discussg ways of making changes that could hold youtube and facebook liable for

the content they host. julia boorstin has more. >> reporter: youtube strengthening the anti-harris harassment policies rhlts removing videos that insult based on race, gender or sexual orientationulpen on private people attack or public figures. threats to inc veiled ban on threats or explicit.yo ube content creatorers say they brush up the harassmente policy will suspended from the partn program and will not profit from ads. e company saying it expects to remove more comments fornt harassan the 16 million it pulled down last your. these changes sparked protests on twitter wit hhtag youtube is o party. the toprend on twitter in the u.s. today and ranked fourth worldwide. complaints that youadbe gone both too far and not far enough. >> in comes as facebook gives an update on the plans to put

controveial decisionsbout how it places content in the hands of a third party. facebook pledging $130 million to fund the global oversight board. an independent organization that aims to be like a supreme court, to rule onwo whatent is acceptable on the platform. the facebook delayed the appointment of board members but says they are eager to see the sersight board tepe and hear cases next year. andrp twitter ceo jack tweeted about now he is creating a research team to create open source standards for social media platforms. doorsy's vision a for universal standard acrs social media aims to help with enforcing restrictions on hate speech and abuse a reduc recommendations for outrageous these announcements from twitter, facebook and youtube come amid growing scrutiny from washington just this week attorney general william barr said the jmetice depart is exploring recommending possible changes to the communicationsecency ac,

shielding the tech giants from liability for the content they host. fornightly business report" i'm julia boorstin in los angeles. coming up, a recordeal estate deal with a story straight out of hollywood. ♪ ♪ it is no secret that more investors are putting money into etfs. total assets have been growing at a fairly consistent annual rate of 25% from 770,000,000,010 years ago and at that rate a new report from bank o america says that market could hit more than trillion by thend of next year. and $50 triion by 2030.

finally tonight, this house may look a littleia fam after all back in the 1960s it was the home of e champ et family in the classic series the beverly hillbillies. but today it has a new total, theost expensive los angeles home ever sold. here is robert franke. >> reporter: lauchlen murdoch estate sold by t estate of the late jerry perrencio the ceo of uni vision. 's a bit of a fixer-upper valued for land and location. the "wall street journal" reportg that lauchlen is now the buy her of the most expensive home sold in california and the second most expensive spold in the it has a 25,000 square foot main home, 11 bedrooms, 18 bathrooms. built in the 30s and overhauled

in the 80s. a 5700 guest mouse a foot pool and motor por dpor cars. there were milons aspen on gardens and adjacent properties. my favorite part, few secret tumbles one from theain house to the fool and other toat the pr garden. of ronald and nancy reagan next door. this is the third property in year in the l.a. area to trade at $100 million or more. although t broader luxur market in l.a. is still suffering from an oversupply of s. like the other six murdoch off spri lauchlen is flush with cash after the sale of fox to disney. the t murdoch familst sale of thatstate was $12 billion each getting about $2 billion. disn shares up 30% since the

deal closed. assuming they tooal stock lauchlen's stock has grown bip $600 millionig in the past months enough to buy four chartwells and sll have enough lef over to fill the motor court. for "nightly business report," mere a look at the final number from from wall street. the dow gained 220 points. nasdaq up 63. s&p 500 rose 26. and that does it for "nightly business report" tonight i'm sua he thanks for joining us. >> i'm bill griffeth. have a great evening. see you tomorrow. ♪ ♪

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