>> announcer: this is "nightly business report" with bill griffeth and sue herera. record finish, the major closing at a-time highs ashe bulls stay in control on wall street. triion dollar deal, the house approves a massive spending bill that some are calling a big win for business. and deliveryars. fedex cuts profit forecasts for next year as compeeation up and demand for faster service intensifies. those stories and much more tonight on "nightly business report" fortuesday, december and do bid you good evening, everybody and welcome. sue is off tonight. investors have been in a god mood lately and continued today. stocks made new highs again as

wall street welcome better than expected reports on the economy and more progress o trade. and once again, the gains may have bee slight, but it was stillood enough for more records. the dow a tayrages just a feign of 31 points to 28267. nasdaq rose about 9 and the s&p added just one point but closed higher a fifth straight session, the longest win streak in a month. bob pisani starts us off tonight from the new yorkck s exchange. stocks back in record ralmo s&p 500 and ow nasdaq closing at new highs the bare 30th record close of the year for the s&p. what's fueling theal rly no major headlines today but the bulls sck with the story o more clarity heading into the end of the year and particularly into 2020. interest doesn't appear to be a recession in sight in the u.s.e omy. that's the most important. look at the data toda instrial production rebounded

innovember. auto production picd u after a nationwide strike ended at jern motors. housing startslso jumped last month with single family construction hitting it ten-year highs mortgage rates booing buhaier confidence sending home improvement like lowes to all-time highs. bond yields spiked on the reporter. bank of america, city citi, goldman sachs. along with regional banks like key corp. elsewhere the market stakes comfort in knowing of the partial trade truce kicking in ahead of the holiday, supportive for sto but the global growth picture is a a little bit murky especially after reports that boeing could be looking to cut or halt production ofed embat max jets. that's ripping illing through the global supply chain and hitting general electric, saffron a spirit aerosystems contributing to the jet. for "nightly business report,"

bob pisani at the new york stock exchange. bob just mentioned some of e things working in the market's favor. and tonight there is one more. another major headwind has been lifted by lawmakers in washington and it include as gift for business. ylan mui reports from capitol hill. >> the house passed a $1.4 trillion spending deal fully funding the government and avert anoer government shutdown through the end of the fiscal year. american peopl that we would fight for every day americans consistent with our for the pele agenda. >> the legislation passed in two parts, with strong support from both sides of the aisle. the package of bills heads to as well before sending it to it president trump's desk. >> all of the president's priorities are in the bill. the two bills. our members, republican members arextrely happy with

provisions both related to taxes and spending. >> the legislation includes some big wins for business, notably, the permanent repeal of the healthare taxes in the affordable care act. the cadillac taxig and cost employer sponsored health carec me device ties and annual fee on health insureser are gone adding up to tax reductions o more than $370 billion. the bill rethorized the export import bank for seven years extend a tax break for craft brewers and distillers for a year. ace raise the legal age tor buying tock products to 21. bu a major criticism is the price tag. >> if you want to grade the fiscal situati you get a gentleman's as a best. big problems are not being dealt with passed to short-term issues keeping the government open. not dealing with the long-term issue of rising debt. >> all earning the nickname

christmas trees with something fo everyone. from "nightly business report" ylan mui in washington. >> and the federal reserve in neutral mode and the boss of the boston fed backed that. says he sees no reason to lower interest rates next year unless there is materialhange in t kpeep. he said right now is a good time to patiently assess conditions. during the time meeti of 2019 last week, the fed kept interest rates steady after cutng the three times this year. and then there is theob market which of course has been a key driver of this economy. and today we learned n theber unexpectedly.gs rose-on according to theabor department there were more than 7 million opening in november. the number o manufacturingon posi posted also rose in that time. as as we mentioned the real estate market seems to be perking up in time for the

greer. housing starts measuring new home construction rose morthan expected in november pap. and building permits signaling how much conruction is in the pipeline even better. diana olick rounds up the lest numbers. >> reporter: with builder confidence at a 20-year high it comes aso surprise that housing starts and permits are so strong. single family starts were the driver up to a 10-month high. build resist sponing to strong demand and a severe shorng of existing homes for sales. starts strongest in the west and south where build resist busy. >> single familyg build permits indicators of future construction jumped to the highest level since 2007 boding we had into the graer andhe usually busy spring sson which actually starts in late february. builders are banking on low mortgage rat driving demand. starts slower at the beginning of the year when rates were a full percentage point high are than they are now. >> while the novemr numbe

were strong overall single family home construction is likely to u end flat compared to a year ago because builders only picked up production o at e enthe summer. washington irmgt a reported last night boeing has decided now to temporarily halt production of the 737 max plane. hundreds of suppliers will be affected by that.is and i expected to ripple through the economy because boeing is one of the rgcountry' t manufacturing exporters. as one economist said it's hard to find another single company that could he the same type of impact.ev liesman has more. it may be hard to imagine but economists estimate that borg's decision to halt pruction of the 737 max can lower overall u.s. economic grirth in the quarter and maybe do so measurably. the negative affects they estimate could be large are than lastyear's government shutdown. forecasters of jp morgan and oxfo economicay the production halt could shave a lf point off off the fir quarter growth. the problem is the first quarter

outlook looked weak. now it could come closer to 1% instead 1.6. making it one of the week weakest quarters in years. growth is expected to rebound when it returns. but when it happens is an open question. >> at this point we face a situation where you a going to have probably about 450 aircraft in inventory because boeing will finish producing currently the aircraft in process now. the international still have to act. and while we assume that europe might be relatively soon after the united states, who knows when the chinese and other major markets may look tollbviously in line. >> for now boeing said it won't lay off the 12,000 worker building the max. but if the stoppage drands on suppliers might find it tough to hold the line on jobs and eventually boeing could as well. for "nightly buness report," m steve liesman. by the way, today's southwest airlines said it's going to once a delay the return of the 737 max to its fleet now until mid-april at the

earliest. the airline pnnviously p to reintroduce it in march. southwest operates more boeing 737 max planes than any other defect carrier. last week american airlines returned the plane from its schedule until april 7th. >> limeo time t look at the upgrades and downgrades beginning with len that are tonight downgraded to sector perform from outperform at pic l markets. the analyst there citing the stock valuation after a 45% run up so far this year. that stock fell 1.5% to 57.21. johnson & johnson upgraded to overweight from equal weight in really all divisions. growth farm aire miss as well as the consumernd segment medical devices unit. the shares ros 1% to 143.56. mron technology was upgraded again today. this time to an outperform f ratim neutral at we had

bush, the analyst citing better pricing and expected acceleration in droand hout 2020. price target, $65, the stock rose a fraction to 53 even today. stilld,ah fedex warns of another hit to profits as amazon bemes an ea bigger player in delivery. ♪ ♪ ♪ late today, fedex cut its earnings torgt target the fourth time this year. youight think the rise of e-commerce would be good for the shipping giant. but all the competition and the increase in volume has meant

higher costts so profiell in the most recent quarter along with revenue. and that sent the stock lower in initial after hours trading tonight. erik chemy has more. it was a disappointing quarter for fedex. fred smithnowledging in the release that the fiscal 2020 is a year of continued significant allenges and changes. the compa missed on the top and bottom lines, citing weak global economiio conditns, increased fedex groun costs, lower yielding services more competitive pricing environment and late holiday shopping season. looking ahead, the company is reducinguidance to reflect lower than expected revenue and higher than expected expenses. fedex is also implementing reductions to global express air network and restricting hiring. all the help improved productivity and match competitive with demand. they are matching international flights to reflect reduce the global air freight demand.

fedex isesting for 2019.ve means amazon and ptsmise. of next day free delivery is a big reason why the shipping industry is bng reshaped. companies investing billions of dollars togethertems to customers a lot sooner.e our fra holland went to kent, washington, to talk to t i personn charge of making that happen. >> reporter: amazon sees the blou vans as more than a way to offer freeer one-day delivy to more than 10 million products. >> they are an important first impress impression on the last mile delivery for amazon. >> marie is top adviser to jeff bezosen a global head of delivery experience. amazon is projected to see the volume it delivers increased by 50% next year becoming a rival to o-time partner fedex and current partner ups. >> after moving to o-day this year we have seen acceleration

in both revenue and you know it growth. >> the company has even the fleet of vans grow 150% from ju of sue whent w starth 20,000 vans. but the men and women literally the driving fce of amazon's free't one-day delivery don work for the tech giant. drivers work for independean cos handling theajority of prime deliveries. >> you couldn't ask for ana betr ment team i work with at amazon. >> chris lily is a formerrmy captain who owns 60 vans and has deliver in seattle. he i sayss a lifetime opportunity and a challenge >> with any challenge a y have alongs you provide the right quipped, purpose, mind mindset. anything is muchable. and my driver provides it. and if they don't they provide feedback. >> these delivery stations where the drivers pick up the package. amazon increased these by 36% in 2019 part of an estimated $3bi

ion spent on free one-day. in north america, 100 warehouses known as fulfillments,cent 125,000 works and 200,000 robots all a key part f of makinge one-day a reality. >> and expect to see more of the blue vans on the roa amazon delivers about half of what you buy onhe site now. expected to increase to 70% next year. franke holland, kent, washington. n competition in the fiercen thet mile when theen pack annual hits the front porch. that's where the game is won and lost. and joining us tonight withis assessment of the competition and who the likely winners and losers will be donald braaten, the managing partner at braaten capital. welcome back. >> always good to see. >> you and i wou add to tha retailers like target and wal-mart who now have their own customers coming to peck up the

items at the store after they've ordered online. they cover the last mile a well. that really is where the competition is right isn't it? and yeah used to be that the last mile wasn your back seat of your or your trunk. it's a return to thatn some ways. >> who are the winners likely to be? amazon is clearly sparking the competition with all the money they are spending right now. but, you know, o there areers that played this game well as well. what do you think? well amazon certainly is grabbing the headline right now. but it'stant to step back and look at the chess game that's being played here. don't overlook the fact that fedex droppedismen a a customer. >> right. >> iuess jeff bezos didn't get the memo that head been broken up wit and so we had petty

announcements today that third party surrenders are prohibited from using fedex. news slash they broke up with you don't want to do business with youhe kicked a billion dollars revenue to the curb because they wrbt weren't making month oh own on it to begin with process. . procs you look what they are doing ner building strategic partnership was wal-mart, wahl freens strong competitors amazon who are partnering with fedex. one. two, here is what i understand. fedex is d the grounivery business is the lowest cost provider of that service per ckage with the fastest service. if amazons successful asset penetrating thatmarketplace at all who is going to hurt? the highest cost provider with the worstservice, the post office first. and then ups, the second high heest cost provider with worth servicehan fedex nan and

that's how that plays out. >> but you have to admit is suffering, the stock coming down. this has been a challenging time for them according to fred smith. >> oh, absolutely. without a doubt,ill you are absolutely right. but the inability to produce financial returns in the last fo quarters for fedex mab driven by severe declines in air freight volumes in asia, europe, we're now seeing on year over year basis negative on top of negative volumes in those marketplaces, a direct result of the tariffs and the ongoing trade warro destroygerity in economy after economy after economy. that's a difuerent i >> all right. >> and that's really a headwind to them. >> veryood. donald brought within broten capital management thanks for joining ustonight, don. >> always pleasure, bill. >> you bet stw. in the meantime of an becutive chak upat bed bath

andedond where we begin the market focus. the ceo h is is hee goods retailer shaking up the inner sickle replacingr six sen executives. mark triten says the move will extreme line decisioaking and bring fresh perspective t changing consumer trends. shares rose more than 11% at 16.88 today. eli lilly issued an upbeat k, outlhe drug maker expects key drugs like treatments for diabetes and aips tochlt so receive a boost and any launch any increased the quarterly dividend by is a%. that stock up 2% to but a different foreunilever, the produ company says it'ses the latest sales target due to slowing growth in north america and other challenges in key markets. the company plans to cut sost.

and theck tropd to 59.28. navi starp poefrpted mixed results posting profit expectation but fell short of the we have knew forecasts and issued a downbeat outlook for next year citing lower demand and supply construction complaints. shares fell to 28.97. all this week we are getting ady for investing in the new year by bringing back familiar market monitor guests.s tonight's gue like the large dividend paying costs. last time on in septemberhe recommended microsoft which has risen 11% since that time. she liked palo alto networks up 8% and broadcom which is1% higher. nancy tangler is back with us gh to of course chief investment management thanks for joining us. >> you too bill thanks for having me. >> we are talking dividend you started wh united technology they have a good dividend. >> it's about a y%ld.

the company announced acquisition of raytheon. investors didn't like the news but we tnk it's improving the balance sheet. and decrease risk in the company by increasing exposure to aerospace. we -- this is a ceo who is -- has been very good at quisitions, rockwell included, raising the dividend handily every year. and you'r -- investors are getting carrier on on theis next year. theyet two additional holdings. you are sticking with broadcom. lastime up 11% and you are staying with it. why? >> this is anoth ceo y just don't want to bet against hoktan did the computer associates acquisition that had investors up i arms. yet he is paying out 50% of free cash flow, raised the dividend 23% this year making the announcement and grown the dividend at 50 plus% the past five years. i dot need a lot to go right

or with a 4% yoeld in this nmpany. it isy of the sweet spots and with trade tensions easing i think this is anvlacetors will be glad they were two, >> finally, the current king of all media, i guesey di which really i not known for its dividend. only 1.2% but you can't argue with the totals return you get right now. >> yes and growing at 8% a year, bill. the 10 million subscribers on day one was a important milestone to hit. but te thinky will hit the target of 60 to 907,000,0 years out. impacting margins materially because they are not paying for target with ch the don't have like netflix does every year to the tune of 3 billion in net nfrpgt cash flow we pliek itor the theme park and movies. bob iger is regreat. weticking with the

holdings. >> the ceo is a important component. >> absolutely. >> nancy tangl. thanks, nancy. good yo see. thanks, bill. >> and coming up wh farmers they have a growing appetite for more peas. >> we're talking whirled peas in montana. cattle country, also cop top producer for a key producer for a replacement for meat. why aren't american pea farmers making money? s that's coming rt here is what we are watching for tomorrow. of course in politics the full house of representative scheduled to vote on the two articles of impeachment. mber of federal reserve officials are scheduled to be speaking on the economy.

and t housing wartl be in focus once again with the release of weekly mortgage applications. that's what we watch for on wednesday. ford saidngoday it's g to be adding 3,000 new jobs at two detroit area factories next year. investing $1.5 billion to build new pickup trucks csuv, elect and autonomous vehicle. the plants in deer borne and the detroit suburb of wain. in the meantime coffee futures prices saw the biggest in since 2015. brazil, the world's largest coffee producer is fing a spli shortage because of draut conditions. happeningme thing is in other south american countries as consumption remai strong right now. finally tonight, american pea farmers are hoping for better days. during the trade war with china they lost key export markets and prices dropped as a result. but now there may be new hopeo thanthe plant-basedn

prot crazy. as you saw, jane wells is in flaxville, montana, tonight. >> i actually le this. i love i being out the middle of the no where. >> paul is a fourth generation montana farmer and air force veteran at the center of america's protein debate. he grows peas in a state better knownfare beef. >> in the kind of friction between beef growe and pea growers on things like beyond meat. >> america's pea farmers on a tare. production up 40% from a year ago and acre rambling grown 400% er 25 years. but peas prices are not good. >> trading under 10 cents a pound to the grower, which is really below the cost of production right now. >> w. >> tim mcgrevie says the peas are split between domestic and foreign markets. most u.s. peas out of the the

country but the two largest countriesndia and mcslapped on exports and tariffs and collapsed. >> we are down 300 metric tons from in demand from the two largest suppliers that is hard makp. >> the hope is is that places in farmers in montana dhad decide to plant domestic companies like beyond meat will make up for the demand overseas. >> these are yellow peas treated. >> paul canning bought specialty peas from purest foods who has o $$100 milln investment in ka caringle to beefp resources and asking them to us a these part of the rotationy sfl t are nitro again. they make fertilizer for the next plant. >> beyond meat isn't the only customer. tyson create add pea appear beef

blend. last year in the u.s. 327 new pea protein products hit the market up from 11 a year ago. >> if this is sustained i want to get in on the ground floor. >> canning t hopes hype around the protein as grown sustainable is alsosustainable. for "nightly business report," le, way wells, flaxv montana. and once again, it was a record close for major averages today, the dow up 31. that was enough. nasdaq rose 9. s&p added one. that'st" "nightly business rep for tonight i'm bill griffeth. thanks for watch eg. have a greni ♪ ♪ ♪

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