♪ >> announcer: this is "nightly business report" with bill iffeth and sue herera. > newrecords. the dow and s&p crossed at all-time highs as the rly rolls on into years end. private bush. california is considere the capital of tech world and a to set a new standarrn for in privacy. ringing in the new year. art carbon is considered age on wall street, a fixture on the new york stock exchange.h tonight shares predictions for 2020.e thos stores and much more tonight on "nightly business report" for friday, december 27th. and we do bid you good evening, everybody. and sue is off tonight. every year brings new found optitism. that snt arrived early on

wall street. that's clear. the dow clod at a fresh record today. the s&p eeked out an all-time p high,ting it on track for the best year in two dades. today the d gained another 23 points. now at 28645. the nasdaq slipped a bit its peak but still above 9,000. and the s&p rose byce 11 s. and it nachd its fifth straight week of gainsow much of the focus this ek has been on the technology sector with the nasdaq breaking through 9,000fare the first tim yesterday. we told you which stocks helped power to that level. tonight dominic chu looks at the stocks that could take it high sfleer stocks like microsof facebook, apple and n individually have pushed the ds nasdaq to outperform over the major indices. if the bullish trends in markets continuing into 202 which nasdaq stocks are expected to do the heavy lifting? since the nasdaq is a market valt weightedde the biggest

companies have most influence over performance. among t biggest names with market values of at least 100 billion, a handful are expected to producet double-di gains. according to data compiled by fact set eight stock fit the bill. among them netflix where the average analyst target price imply as 0% gain. netflix will be navigating an increasingly competitive media landscape with a slough of streing video service going head to head with it in the coming months. semiconductor maker qualcomm has an average analystce p imply as gain of 12% thanks to 5g wireless technology. social media company fischer could rise by 15% if analyst projections are correct. payment services company could stee a gain of 17% in the coming year per the analyst estimates. and then there is amazon.com. analysts say the online retailer could rise by 17% next year as

well coming off the record holiday shopping season while growth slows at the amazon westbolod services computing division it's one of the biggest players in the industry. if tke bull m does manage to find more room to run in 2020, those could be among the stocks helping to push the nasdaq towards the next 10,000 mark. for "nightly business report," i'm dominic u. let turn to crk contend toll talk about the record setting market and what he sees in the new year. president and ceo of his own investment and welt management firm. thank thank you for joining us tonight. >> thank you for having me on this evening. it's an horp. >> i hear you're cautious into the new year qb yes. ell t markets moved a long way over a short period of time. especially this fourthquarter. and there's been great divergence between thed growth value stocks. so i think people need to be cautious. look at the opportunity to rebalance the portfolio. >> yeah, i mean, you're old school clearly.

your advice is just don't target the indices, look for companies that have of a goodvalue, and have a good product. is that the idea? >> that's the idea. and i think sometimes it's good to know kind of where not the only a few of the stocks represent 50% of the s&p 500. yeah. we saw concentrated portfolio. >> what do you like right now. >> well, we like. >> -- there's been great divergence for he value in growth stakes. we lake taylor morris homes. we like things likeleer, the component maker of cars. and also i like the logistics and the -- the xpo logistics and warner, the trucking companies. i think all the companies are tradg 10 times or less cash

flow. i think there is great opportunities there. >> now, our old friend marty swag is the coiner of the phrase don't fight theed. youubscriber to that but the fed isn't in the way next year.a they've a said they don't plan t to anything with interest rates. >>hat's correct. jerome powell says we'll have low gdp growth, low interest rates, low unemployment. i think we need to to be cautious. that go, go paying the premium for the greg stocks we need worry about and focusn fundamentals of just buying good stocks. clark kendall with kendall capital, again thanks for joining us.ha y new year. >> happy new year. >> now with tech still in focus it turns outec ther could be a beneficiary of the trade deal with mexico and canada. ylanui took closer look at the agreement and tells us what she found. >> the usmca is the first trade agreemht w an entire chapter

devoted to digital trade. es it e tech industry h will be a framework for future deals. >> digital trade andtr physical e are important in the modern economy. and we want to make sure that trade rules, rules perlting the free flow of goods across bordersnclude digital goods as well. >> the usmca includes a commitment to never impose tariffs on information as it moves between countries. the also probits the u.s mexico and canada from mandating where the information should be stored. in provision is critical for oud service provide providers like amazon but ao think about connected wind turbans or smart fridays. companieshat's essentially to making sure they operate seamlessly. >> it's important to remember that every iustry is the technology industry. this is an important agreement for the tech sector but also important for customers of the tech sector whether agriculture, medicine, education orp fisncial service all industries benefit from the b crossder flow of data. >>eshlgd to a government analysis, the deal is projected

to boost the economy by removing uncertainty for businesses. companies know the rules of the ro won't change. and that confidence could raise gdch by as s 1.2% and create 589,000 jobs. but there was some last minute controversy over safeguards for social media companies. under theag ement, canada and mexico have to grant online platforms legal immunity from user posts. similar to a provision in u.s. law known as section 230.pe houseer nancy pelosi was initially opposed to including that language in the deal. but eventually she had to back down. >> i mean, i lost. he had 230 in the agreement, which is in my vw the wrong way to go. it's a real gift to big tech. >> a victory for the he can industry in the house. u.s. mca passwood broad partisan support. the senate is now expected to take it up in t new year. for "nightly business report," ylan mui washington.

>> now trade with china was arguably one of the biggest issues for the market in the 2019 and even though progress made, there is still a lot ofbe work tone in the new year. our beijing correspondent eunice yauhen spoke to the eerts and is predictions for 2020. >>estors will have a lot to watch for in china in 2020. first, while a phase 1 deal is expected to be signed in january, trade negotianons betwhe u.s. and china will continue as the u.s. presential election approaches. there will likely be uncertainty over what major american tech companies are allowed to sell to the chinese and whether chinese tech firms will be blocked from doing meaningful business in the u.s. second, china's economy will remain in focus. as leaders look for ways to manage the country's lowest growth in decades. policy makers have indicated they prefer to stabilize the slowdown rather than use policy to reverse it. and third, unrest in hong kong looks set to stay a sore point for the chinese leadership in

2020. how beijing handles the relationship will impact china's stanng in the world and the aattractiveness of hong kong as a globalinancial center. andin fore family rentals really took off deatnd. means gig feigns for the companies behind millions of rental propertie diana olick explains. >> in today's tight and pricey housing market, mor potential buyers are remaining renters. and turning to single family rental homes. stocks of the major reits behind the properties like black stone invitatiomes and american homes for rent are way up year to date. and companies that help investors buy and sell rental homes likeoof stock are seeing explosive growth. >> being able to transaccurate buying and selling homes online isowerful where you cou squeeze out friction annan cost and pain around a buying selling homes doing it at a much

wer st. >> roof stock laufrmd three years ago but just surpassed $2 billion in rental property transactions and helped facilitate sales for invitation the number of sellers on the site has i freased td from last year. >> you could come to us with say $5,000 and by a share of a rental home up to if you have 50 oh million and you're a large institution and want to put that to work or sell apoarge folio we can kaiter to that as well. >> a new index launched this month shows both current leasing and expected leasihe over next six months at very strong levels. the occupcy rate at a solid 96%. and builders are also turning to market. putting up some of the first rental only communities like this one in san antonio from ah bigames like lennar are getting in the the game. the rental mket is benefitting from a severe shortage of existing homes for senes.

mials aging are looking for mores space and neigorhoods with good skills. as it's harder to find or afford homes, the rental market reaps the rewards process . for "nightly business report" diana olick. >> still ahead, california about to enact unprecedented privacy protections on the intert and uld be a blueprint for others. ♪ ♪ regulatory e many changes coming in the new year,

firms in california are sk wling to complh the state's new privacy law which aims to reshape the rules of th internet when it comes to your data. nine wells isn los angeles. >> reporter: calif often tries to set national policy from the west coast, wheth it's auto emission standards or clean energy, or how to classify workers in the gig starting january 1st, it sets a new standard for swrnt privacy. >> know that you're going to have far more control and choice when it comes to your personal information than you've ever had.is s a law that's really unprecedented in the united states. >> by january 1st, companies doing busess in california haveo make it clear on the home pages in this state what they do with customer data. they'll also have to be a button there so ctomers can opt out of policies and have to make it clear how you can findhe out data they have on you. violators face fines and lawsuits. many organizations are not going to be ready.

>> reporter: csultant andrew shack stead say some companies may not realize they have to comply. der the law any business with $25 millionn revenue or holding data on at least 50,000 customers or makes half the revenue selling customer data has t obey the law. the business doesn't have to be based in california. you have to have at least one customer here. it's createdd mini boom for the compliance industry. >> there is governmental figures that placeosts at about $50,000 for compliance. all the way up to $2 million for compliance for the one law. >> companies have been sending out emails warng californians that changes are at hand. google is preparinge to cha when and how it sends out personalized ads. microsoft t plans use california's law as a blueprint for its national privacy policy. but facebook is reportedly pushing back on what ito has disclose. suggesting that under the letter of the law, it's technically not

selling customer information. just sharing it. finally, what if president trump who has feuded with california over other policie decides to step in on this one? >> do not undermine theability for us in califnia to prote consumers over the internet. and do everything you can to improve on what california is already doing. as t tech capital of the world tries to protect its cizens from much of its own business model. for "nightly business report," jane ll los angeles. a different california law is pushing for more diversity on corporate boards which has historally beenominated by men. the regulation mandates that public companies havet least one female board member by the end of the year. and as julia boorstin reports, happening. >> reporter: the space in the board room is indeegi ch. this year the percentage of first-time directors female is 57% up from 42% in 2017

according to spencer stewart. one organizaon helping female directors, the board list, matching company was qualified female board that organization tells us it sends out corp. severance for female directo more than tripled to 300 in 2019 and not just in california the boorpd list says it sees the california law having a halo efct across the country. the halo isng exten beyond gernd. diversity is in focus. the percentage of first time directors that are minorities is 31% of up 10% from 2017. thanks to new appointments women comprise 26% of all directors, up from 16% back inhe year 2009. some analysts raisedoncerns o overboarding, the ideas that directors could be stretched too thin with too many board sets. ris was mitigated by proxy advisers, asset mig tions such as vanguard and companies

placing limits onboard commitments. ctor of s&p 500 companies serve on two boards on average and that numbers unchaed over the last fiveyears. for "ghtly business report" julia boorstin. and one of the biggest s both facing busines big and small right now is the possibility of being hacked. as criminals become more sophisticated, the oddsf a data breach rise. and that has meant mor money spent to protect corporate networks. but some firms are doing it in a different way. here is kate rooney. >> reporter: goldman sachs, capital one a the u.s. military pay hack tors bak into the systems and find palaus before criminals do it's called a bug bounty problem most big tech company have the programs. start up oacker connects a network of white hat hackers to fortune 500 and government attention attention as. the hackers get paid for finding vulnerabilities. >> we're allies, not sketchy

people in their mom's basements out there to cause damage. >> according to ibm, the average cost of a data breach i the u.s. is 8.2. milli hacker 1 ceo martin mecosba say s are at risk because of the pay off financial data. >> neighborhood watch.e we c to your house look for ways to break in. if we can we tell you we don't breain. >> the company isin bec a popular bet for investors backed buy are by microsoft, facebook and marc ben i don't have forig ly business report," kate rooney. michael's names new esident and ceo where we begin the market focused with the arts appear craft retail areci anno that ashley buchanan will be takin the reins in the newear. buchanan comes from wal-mart where she was a long-term senior executive. and wall street cheered the move. michael's shares jumped 33% to v $8 . another executive is leaving boeing, the aerospace company

long sometime general council michael lud is retiring next we can. he was appointed in the spring to lead the legal strategy and to be an adviser t the board after the second 737 max crash which led to drowneding. that sto up a fraction shun to 330.14. comcast is in discussions to buy video strming company zoomo. the financial terms of theeal were not released. comcast own streaming service peack is set to launch in spring. the shares rose today. a reminder comcast is the parapet companyvef nbc ual producing in program. tesla is set to deliver t model 3 cars from the shanghai facility on monday. fantastic the first 15 commerce to receiveil thembe tesla employees. the electric auto maker has agreements now with chinese lenders to borrow more than $1.0 billion as it ramps up production in the country. shares of tesla fell a fraction,

40.38 spotify bans political advertisements on the music streaming platform next year as he election startsts up. the company says the change will apply to the original and exclusive podcasts. shares of spotify up a fraction today to 153.17. all this week we've been getteag you for the new year with a week of market monitors.st tonight's gets on the consumern 2020. she has three nameshat s says could above the from stronger consumer spending. we welcome vikty fernandez, chief market strategistot as mark global investments pmt thanks for joining us tonight. >> my pleasurebill. >> you choose some brand names. first apple. a lot of skepticism on apple the last few years. slower iphone sales. innovation. slow start to apple plus, the streaming service yet it sets at an all-time high. you like it going into the new year be, yes. >> we dnd like itought it

in the portfolio the last few weeks. i think there is a lot of g momentng forward. like you said a lot based on the consumer. yes, the phones have not don as well as people had expected but we've got air pods selli out everywhere with the new 5g service coming then phones should sell better. and really the services will continue to do well. slow plus was off to a start but they'll be building on that. we hear apple is in talks with mgm, the palk 12 to bring on sportsre so i think ts advantages for the stock going forward. >> amazon is are your second pick. a lot of skepticism about this company for yearsing a well. when were they turning a profit? admittedly this stock went sideways essentially the last 18 months way do you like this into the new year. >> well and that's one of the reasons, bill, right. we have seen the stock move higher and high are it has gone sideways pulling back a little bit lately. but we are seeing changes in amazon. yes they have the cloud

busiboss. ht whole foods, into the food business. one of the most expensive costs for online shoppers has been delivery. least for the company, right? target and wal-mart and all those companies are paying a lot of money to do same day or next had-day shipping. and now amazon i looking to build out their own delivery service. we think that going forward that can help the stock price. >> finally, electronic payments, ry popular these days especially with millennials. a lot of businesses getting into that area. but master card is your choice in the paymentsarea, why? >> it really is. when you look atll of the online things we have going on, it's not just the online shopping like at azon we spoke about. but it's payments, online payments happening. people do itir for t bills, subscription services all of that is growing. behind all that on the backside has to be a credit card. master card has a great balance sheet, good carbon the balance sheet ande see them doing well as the consumer continuing to be

strong in 2020. >> vikty fernandez with cross mart global investments. thanks f joining us. >> same to you. >> and coming up he is known as the dean of wall street. and tonight art cashin shares his prediction foss 2020. ♪ ♪ ♪ >> art cashin h been a main stay on the floor of the new york stock exchange more than half atu c. first started there back in 1964. many consir the director of

floor operations for ubs to be a institution by himself. a reassuring voice during booms and busts his opinions are sought after high pressure. his analysis so valued. as 2019 comes to a close our bob pisani asked him what he sees in the year ahead. >> we sat down with art cashin at this steak house to chat about 2020. his first prediction despite a strong u.s. economy tre will be no fed rat hikes in 2020. hike.olutely no rate because i think the fed is somewhat intimidated by the rket. and the market, if anything, thinks the fed is ahead ofn itself higherates. >> prediction 2, the market win streak will continue. the broader indexesp all in 2020. >> eight outf nine times that we have had an up year like we had this year, it's followed by another decent up year, not

quite as strong. but notably strong and so i'll go with history. >> prediction threbe stocks may up, but there will be sevodal pe of volatility, particularly in january, march and july. >> in late january, we'll get to see if there is going to be a brexit and how that johnson got a sweeping move i parliament. and will he in fact push through a no-deal brexit? that could make the markets very volatile and jumpy. the next thing will be the u.s. electi that will only be a contributor to volatilityhene begin to get a handle on who the democratic nomee will be. so tha to me gives two yard sticks. number one, early march when we will get supertuesday and one third of the u.s. populous will vote. and we'll get to find out where bloomberg's strategy is, who

looks to be the leader. has anybody locked it up? if no then it could be a brokered convention. and that dat would be in the middle of july when t convention will be. for "nightly business report," bob pisani. beforee go, ak final l at the day on wall street. morerecords, the dow and s&p at all-ti highs. nasdaq slipped from the peak but still remained above 9,000. &pin fact the notched the fifth straight week of gains. finally before we go we have news to share with you. after nearly seven years and more than 1700 broadcasts tonight's episode ofnightly business report" produced by cnbc will be our last. it been an amazing journey for sue and me, and for tyler mathisen and suzie gear aifr before. nbr was createdly binda o'brien who i happen to know is watching with great pride tonight. it's been an horp for all of us both in front of and behind the

camera to bring you the most important business and economic news every ni we want to thank everyone in the public television community for their support. but most ofl, we couldn't have done this without you, the viewer. so from all of us at nbr weu thank ery much. i'm bill griffeth. to close things out i gladly defer to thean who for many years was synonymous with this program, the laet grate are great paul kangas. >> wishingll of you, the best of goodbyes. ♪ ♪

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