♪ >>nnouncer: this is "nightly business report" with bill griffeth and sue herera. >> market milestone, the nasdaq hits 9,000 for the first time ever and the dow and s&p close at all-time highs. 'tis the f season gift returns. and in a twist, that could actually be g at for retailer sales. losing its aine, people leaving the golden state in droves. and it couldngeave a lasti mark on the world's fifth largest economy. those stories and much more ton on "nightly business report" for thursday, december 26th. and we do bid you good evening, everybody and welcome. sue is off tonight. the rise ins sto just won't quit. wall street's three major averagt closed a record highs

once again today. in fact the nasdaq broke tough 9,000 the first time ever. it now risen 11 straight sessions making it the longest win streak since july of9. 2 's been quit a trip to the 9,000 level. the index at 325 back in 1990 before the d bubble pushed it to 5,000 for the first time by thend of th decade. then came the huge decline leading to the 200 recessio in fact it didn't get back to 5,000 until only to be hit once again by the great recession. it hit 8,000ast and today its first close above 9,000. here are the closing numbers for today with the dow u10 a points now at 28621. the nasdaq ros9 today and s&p added 16. frank holland starts us off tonight on the nasdaq record

run. the road to ntds was paved with compute chips yoga pants and lattes it's not surprising that chips are arj factor. amd seeg the biggest improvement since the nasdaq crossed the 8,000 mark in august of 2018. lam research and broadcom gaining more than 50%. consumer stocks pushing the nasdaq higher. yoga pant maker lulu lemon rising 67% since the 8,000 mark, starbucks gaining 66%. charterne communications of the biggest cable providers in the nation gaining more than 59%. theso-called fang. and microsoft had the biggest impact on the index. but they were mixed on the road to 9,000. stocks they typically gbo a t this time of year. the so-called santa claus rally. but with the nasdaq chosinging at another record, some experts believes the gai could be more than just seasonal.

for "nightly business report," frank holland. > also helping to proposal the sdaq has been apple. it's also been the bestng perfortock in the dow this year, rising about 83%. that gain has put apple on track for best year in a decade. so where do apple and the r tt tech stocks in the nasdaq go in 2020 in chris wrestler joins us now, portfolio manager with the needham growthan fund for joining us tonight. >> hey, bill, how are you. fare far and away most money managers when i ask the favorite seort's usually technology. what process for 2020? does the momentum continue, do you think. >> we are planning for a bit of a correction here in the new year. we think a lot of gains where people don't wt to take the taxable gains in 2019 might be opushing that out 2020. however, longer term we are still very bullish on technology. when we like about it is its defendable on a global basis.

where they can defend that technology. it's much much what we areng fighor against china. ip protection. ai right. >> so we r bullish and technology going into the next year. could beink that there some pullback in the early months. >> as frank holland mentione the chip stocks, they had suffered a few years. but suddenly a resurgence this year. is that one of the groups you are looking at for potential pullback next year? it would be an area. but semiconductors are great leading indicators for economic acceleration. so what we've been seeing september is a real nice run in semi cap equipment, semiconductors which gives us some confidence tt next year is still gng to be good year economically and probably an acceration inlobal economic activity. >> 5g, that's to be a big -- i would think catalyst forext year of growth for a lot of companies. that's the next generation wireless technology.

do you agree with that? or are weetting hopes t high at this point? >> i agree with that. however, i would break it down between two pieces. one is the actual infraructur make the devices which also need 5g. so as you think about mobile ones, we would expect tsee 5g built into devices. however, the infrastructure to make them work we think could take a little bit more tim and that's probably over multiple years. so 5g really has a long tail to its and it's much of what we are seeing in the semi conduct are land rig now and wehink that continues multiple years. >> chris wres letter with the rowth fds. thanks for squoing us. >> thank you. >> as we close on the end of the year and decadehere is a belief on wall street that the stocks and is secretary esper that outperform one year often underperform the following. and vice versa. but is the same true over longer periods of time? bob pisani takes a loo

>> what a decade it has been. it started out with fear. ends with historic highs. ending with a search for growth that's buy technology the ultimate growth stock have dramatically outperformed this decade u oh oh% as a group. the bottom sectors have a notable standout. energy. oil stocks have had no gainshe st decade. what's next? if history is a guide investors should avohe fallacy that the future looks lik the past. we have often noted that stoins sectors that outperform wund year uer perform the falling year it's called mean reversion it's the tendency for most investments to return to long-term anchts and happens over long periods of time . energy zurm staples tended to underperform in the necked next decade up only %. the bottom three sectors communications services technology,s financials tended to tperform u 184%. this phenomenon happened from 2000.o

technology was the best performer and the worst performers in the next decade. why does mean reversion work as an investment strategy? for the stock market two explanations. first in a capitalist system underperforming sectors ten be ruthlessly restructured until efficient. then there is the old future fallacy. humans contend to buy things going up in value creating bubbs that eventually burst. for "nightly business report," bob pisani at the new yorkan stk ex. bob just mentioned the nergy secretary esper lost decade. in theier ahead the industrybe faces a numof cllenges still. brian sullivan has hour 2020bo pl. >> stagnant oil prices, heavy corporate dead lotes and enviroentally conscious investors slammed the energy industry in 2019. al this, the u.s. preached a major milestone. becoming a net exporter of crowp androleum processed for a full month their time in 70 years. all this as the race for for another kind ever element, the rare earth minerals just began

to heat up here is what to watch for i energy i 2020. first a wavef bankruptcies. unless oil prices rise, the astray and iestors may endure a number of reresistings. .m many cnies struggling with huge debts. ilt up when oil prices where a were rising unless oil jumps in price wall street is undl to let companies refinance or extend obligations. second internation resources is sift. venezuela luss control much citgo. after years of courtroomes bat between a hedge fund and the government of venezuela theat finale likely comes in 2020 and it's possible the courtsule against venezuela allowing sit go to be seized auctioned off and boughty an american company or companies. and third, the race fore rar earth minerals full throttle. if you want build of an environment license active proj projt like electc car or wint turbine you need rare earth eements. thes are obscure mineralsly

lithium. others. china controls most of t world supplies for the elements butan there are projects in the works to mep the u.s. catch up. this will be the battleground to watch in 2020. for "nightl i'm brian sullivan. rob thumble joins us to talk about what lies ahead for the oil mechanic. he is a portfolio managert tortoise advisers. thanks for joining us tonight. >> anks, bill. >> actually, you i think that 2020 will mark ma return for the u.s. energy sector. what do you mean? well, as brian and others talked about, you know, the lacht decade was a bad one for the energ secretary are. but going forward we see opportunities and catalyst for the energy sectors. the biggest what brian highlighted the sus a ray exporter going forward innehe decade, 2020 and beyond there is significant opportunity for investors to capitalize on the u.s. as the u.s. becomes a large splarer ofll energy commodities t the rest of the world. >> do you see prices going

higher and who sets the prices? that still ope with the power to do that or does the u.s. astray have the power now in. >> well, going forward oil will still remain relevant. and somewhat important. but natural gas and renewable actually will be the opportunity going forward. bu t specificall your question from an oil price perspective, we have got plenty ofplays. opec is still important. but the u.s. will also play a critic role theres well. but for the energy secretary are to be successful, this is the most importantart of it. we just need stable oil prices. stable energy prices. and we think the setup is pretty strong for the next decade to have stable, consistent energy pres. which still allow the companies cash flow they are generating to grow and that's what investors will reward going forward. >> the three -- the whippers, the stocks you like nt year why tse three in particular in. >> yeah, so energy infrastructure is a placeatere tortoise we love. for a lot of reasons.

first of all, energy is esseial. and if you are going to transport energy and export more needy from the u.s. we ctre energy infrastructurend existing infraste to facilitate the export growth going forward that's happening in 20 and beyond.ik companies enterprise products that pays a dividend yield of almost 6.5%. owns critical energy have raised dividend for over a decade every single year. other companies, like williams company, once again another e 6.57% defenda gellen mid-stream. 6.5% dividend yielder.in stors from our perspective with starving for yield. the s&p 500 yields 1.9%. the 150er7 treasury reeled 1.8%. you need dividend yields as investor. and we think energy infrastructure is a great place to find that. >>y the way, quickly you mentioned natural gas, prices have floundered for a number b yearause of oversupply. do you see that ending atm some point. >> first of all natural gas is one of the most criticaloi commodities forward. we need to lower carbon

emissions globally, rights. an the playbook in the u.s. and not a lot of people know this but carbon essions in the u.s. declined in the last ten years. one of the reasons for that is because of the increased use of natural gas in the electricity sector to generate electricity. so that needs to be applied globally and it will be in the next decade. if we play the same formula in the u.s.nd globally the next decade, and eliminate coal and incrse garl gas and renewable we'll reduce carbon emissions goebelly. we think that's where gas plays a critical role. the price can stay low and that boost demand going forward. >> very good, rob thumble with tortoise advisers. thks for joining uston. >> thank you, bill. >> you bet. time to look at some of today's upgrades anddowngrades. beginning with tesla, price target raised to $3 from 270 at we had bush. the analyst citing demand for the model 3 here in the u.s. and in europe. which should helpburofitability. the firm is recommending a wait and see approac to the

stock itself it's maintaining its neutral rating right now. stock rose more than 1% today to 430.94. kiah gen was reinstatewood underperform rating at bank of r a. the analyst citing the dutch company decision to endpo tion after ending take overtalks. price target now $28. they lost 20% of the value today to close at 32.91. spectrum pharmaceutical ground graded to neutral from overweighttanter fitzgerald citing the failure of the lung cancer treatment in amid-stage trial. price target $4. capshares of that small dropped by 60% on the that news to 350. still ahead, slow and steadr stocks a slow and steady recovery. our market monitor has names to consider. and a reminder that many in international markets were closed for boxing day today.

♪ ♪ ♪ >> so thenomy now and a couple of reports on jobs and housing. first, the number of americans filing for unemploymentit ben fell by 13,000 last week to jobless claims are usually volatile around the holiday season and at the end of the year. elsewhere there was a 3.5% pullback in mortgage applications last week. mortgage rates themselves moved a tin b higher over the period. almost a 4% on average now.ha and now christmas is over, 'tis the season for returns. and there are more of them

thanks to the rise of e-commerce. frank holland is back with that story. ol reporter: a record $95 billion inay returns is projected for in holiday season with nearly half coming from e-commerce. the most returned items are woexpected to be men's clothin appliances and toys. . moody retail analyst charlie oshay ss the growing return culture can be a boost t tailers post-holiday sales. >> it's a win for retailer if they get you in the store to return something because they get a bite at th apple retailers need to leverage that opportunity. >> according to the sfri fro xpo will goes 9% return to bricks and mortar return impaired to 30%f online. and amazon announced free returns on millions of items this holiday season. the tech giant gets me than a third of all online sales. ups says it expects the peak day for online returns to be january

2nd. when 1.9 million packages be sen back. a 26% increase over lastear. knows returns also have at growing cor retailers. cbe estimate retailers lose $5 billion per year because of inefficient logistics handling tuturns. the return cul it's a key part of the evolving e-commerce landscape that oppenheimer analyst brian nagle says it's shifting to attractin customers to brick and mortar stories. >> motivate reilers talk about buy online pick up in store representing 50% of the online sales. the consumer going oine purchasing the prd brod b t gointhe store and picking it up. they have online returnsance b increasi 50% or more next year while brick and mortar dreturns expec to increase low single digits. urmpanies like ups and fedex handling many r are expected to see a big boost in the volumes and in re revenues. for "nibusiness report,"

frank holland. >> amazon said today it had a record breaking holiday season and sharps have seen solid this year. but the stock is also doing something it hasn't done if years. deedra bosa looks at what's next forne of 2019's most talked about companies. >> amazon has beennef the best performing stocks of the last decade. but it could end the strea on a more lackluster note. this year amazon is t on track underperform the benchmark s&p 500. for theirst time since 2014. back then, the company was under pressure for iack of profit and falling operating margin. this time around wall street is more gofrgi ofhe investment year. shares have returned nearly 20% so far.re and many predictin theor ground wk has been laid for a bigger breakout next year. >> because it's i anestment year for amazon. and the stock never outperforms when the re in investmenyear. but it does tend to outperform the year after in investment t'

year because t when you see the benefits. >> except this time could be different. amazon is facing new risks and the crack are showing as it heads to 2020. including declining dominance in e-commerce and cloud, rising competition, anti-trust concerns and an uncertain regulatoryn environmentn election year. there is also growing concerns out the safety a quality of its marketplace. amazon has been one of the past decades most rewarding bets. it's far from guarant to do can do it over the next ten years. "nightly business report," leedra bosa, san francisco. paypal wil lack for take overwatch targets next year. that's where we begin the market focus. the company's chief financial officers tellsst the "wallet journal" there are opportunities in the payment sector tarring future deals in the t 1 billion $3 billion range. shares rose a fraction to 109.75.

tiffany said overall holiday sales increased rising 1 to 3% globally from early november through christmas eve thetock rose 3 cents to 133.6.va i p equity firm kkr is buying overdrive a digital platform helping high braers and schools deliver digital content. value of the deal was not disclosed. the stock was up a fraction to 29.28 toda accepted e f the da prufl application for a breast cancer extremist. the medicine is for treatment advanc form of the disease. shares gained more than 5.5% to 21 pft 67. all this week we are getting you ready for the newear bringing back familiar market monitors. tonight's guest has all weather stocks he says will protect your portfolio during a slow, steady economy. last time he was on m as aket monitor was in july of 18. he recommendedan em, up 23 peppers over that time. apple up 51%. and google parent alphabet is up

14% since he recommended thpei andy capis back with us director at research of region atlantic good to see you again welcome gawk. >> thank you. >> van guard reit the etf slow and stead. >> i calling it the roll stone recover when you think they are out and not turning more they announce another fare well tower ifou in that recovery even the stones aren't slowing down they're not hitting as many cities as they used to. whathat means is growth is going to be there. but it's going to be slower. and what i've identified are three investment ideas i think are doing well in that slowut steady growth environment. >> and you feel real estate does well in the latter stas of a recovery. >> exactly. >> that's why you like this. >> because when the economy gets mature things slow down you care about underlying cash flows and the stability of those. that where the r l estate matters. it's basically the ultimate subscription model locd in for a year. if it's like a skmergs leisure

locked in ten year o a lo predict ability, a lot of stability. appear it tends to be a sector that doehe best when economy is mature and going more slowly. >> i guess it's no surprise then if you go f stability you like a utility. and you havehosen on in this case w do you like it. >> i liket because their geographery focusing op the upper northeast a low carbon emitter which is becoming more important as people focus more al environme social and governance principles idtifying investments forfohe poo. >> finally, i'm not sure i would think of at&t these days when i think stability. yeah, back in the day, yes. but now they are transforming themselves into the media company with a lot of right now. >> it's precisely because of the transformation i think they are a good bet but for f a stable ow economy. they have gone from being a stodgy old telecom with a which areless unit and that was

they had to horizontally integrated >> yes. ompany. >> they own hbo and time warner, the pipes that get to that the distinction, the customer. they can really build on this. one they can consolidateay off some of the debtt they used to acquire time warner. numberwo, they ca go into a subscription model like netflix like with hbo max and hboo. it's a good tupt to stabilize the business model and diversify an be a good bet pu for the slow but steady economy. >> happy new year. and coming up, leaving paradise why california is losing a generation of wage earners. ♪ ♪

♪ ♪ the federal govt is taking another step to try a integrate the use of commercialt drones intonal aerospace. the faa is proposing a rule that would require most drones operating in the u.s. to be equipped with remoteg track technology. the regulators says it expects all drones to be in compliance within three years of finalizing that rule. finally tonight, california as you m know is the rld's fichgt largest economy. but a growing number of residents are packing up and moving out. jane wells tells woo are why the golden state seems to be losing its shine. >> california used to be the place where everyone dreamed of going. now people dream of leaving. >> my economic situation there was not great. >> sydney mulkey is a 0-year-old

educator from oakland who was livingston with her grandmother to make ends meet. >> at one point i was working three jobs. and i was just really tired. so that was kind of the last straw. >> so she moved to portland oregon where she got the same job for more pay and able to bua a-new townhouse. >> daniel and scott are los angeles gna he was whoicked up and moved to nashville we've been here six months. in the s months we have had six friends of ours six couples relocate to the same area also. >> these are not isolated examples. the u.s. census bureau saysia califoad a net loss of 190,000 people last year. that's still a relatively small number. but it's a growing trend. >> people have this image of all the old people who are frustrated leaving. but a oually thes who are leaving are family age people, people0 to 54, that group. that's the group that's leaving.

>> for the for the yinrs movg to nashville allowed them save for retirement scott don't have to work 807 hour they traded in the t small house for a larger house on 7 acres inclung a building for their business. >> property taxes in california were $7,200 a year. and our property tes here are $2,800 a year. californian out of could have national implications. ecetate's unique culture much innovation tookes to build and of the abouted the country. attracting the best and priet are brightest from around the world. that's not easily recreated somewhere else. >> there is substitute for californiaes when somebody m from california to dallas, they may live a better life. will they have the same impact they would have had they been in california? i'm not sure. >> but do these millennials miss california. >> i think leaching o family was the hardest part. >> yeah, i do. especially on days like today

when it's rainy and gloomynd very dark at 7:30 in the morning. >> but california's gre weather may no longer be enough. for "nightly business report" jane wells, los angeles. >> and before we go, a final look at the record closes and wall street today, the dow up 105. nasdaq above 9,000 the first time ever appear the s&p rose by 16. that's "nightly business report" for tonight, i'm bill griffeth. thanks for watching. have a great evening.. see you tomorr ♪ ♪ ♪

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