. this is "nightly business report" with tyler mathison. >> founded by jim cramer, "the street.com is an independent source for stock market analysis. cramer's action alerts plus service is home to his multimillion-dollar portfolio. can you learn more at thestreet.com/nvr. rally returns, the s&p closes in record territory. the nasdaq is at a 13-year high. leaving many investors wondering if the stock market's rocky january start is the rear-view mirror. union votes, some amazon workers vote on whether to unionize. but could this small group have big repercussions for the company? and ceo of the year,

morningstar's pick for the top chief executive is a turn-around expert whose stock has more than double over the past two years. and tyler will introduce you to him. we have all that and more tonight on nightly business report for wednesday, january 15th. good evening, tyler will be along later. well, stocks are on a roll. another triple-digit gain today for the dow blue chips and the s&p 500 and the dow transportation index all rose to fresh all-time highs. and the nasdaq closed at its highest level in more than 13 years. it looks like stocks have shaken off the stumbling start to the new year. they got a big lift this morning, from bank of america earnings. the bank's profits shot up eight-fold from a year ago. also helping? a big surprise boost in manufacturing and a world bank forecast calling for a stronger growth outlook not only for the u.s., but the global economy as well. on wall street today, the dow jumped 108 points, the nasdaq

was up 31 and the s&p added nine points. john manly joins us, chief equity strategist at wells fargo funds management. john, is this really a turn-around? and if so, what happened? why the change in sentiment? >> i think it is a turn-around. i'm not sure it went down all that much. when you consider. but i think what's happening is we're starting to get information, we're starting to get data on what's been going on and the profit numbers are good. think it's going to be a theme throughout most of the year. >> we've been hearing from many market strategists saying that fundamentals really count this year. so we got some good earnings news these past few days if we continue to get good earnings news and some good economic news, what does it mean in terms of the outlook for the stock market this year? >> it should be positive. i think the federal reserve is committed to not tightening for a while. they want to make absolutely sure that the economy is coming back. they want a higher burden of proof than the market going to

require. >> we've ha target of 2,000 on the s&p for a year and a half. >> we're close to that number right now. >> that's a very good point. think that's an easy target. i think we may raise it as it goes on. you have very modest assumptions to get you there. i think we can probably exceed them. one of the things you have to think about when you get, when you look at the market going into the new year, if you get the sign right. if it's plus or minus, let the actual numbers work themselves out. i think the fact is that people should be buying stocks because there's profits to be made this year. >> this is a complicated and confusing time for many investors coming off of a fabulous 2013. what kinds of do's and don't's should investors do? with their portfolio and with their money? >> i think the proper thing is to ask yourself the right questions. i think the first question is do i own enough stock. do i own enough exposure to the stock market to take care of myself and my family over a period of time? i think stocks are ultimately going to outperform i think they

may outperform this year. and then you have to ask yourself, is, what's holding me back? what am i scared of? is everyone else scared of that? are these things already in the marketplace sni think you can't look back, you have to look forward. and you have to accept what's on your plate. and i think what's on the plate is still very appetizing. >> in terms of more specific strategies what kinds of stocks are we talking about? big stocks? small stocks? u.s. stocks, nonu.s. snoks. >> i don't dislike any of them. i think large stocks are a good place for individual investors to go. i think the u.s. is a great place to be. i actually think in some respects europe may be better at the margin. it's been cheap for a reason, that reason is going away. i think the european economy is beginning to recover after being in a real slump for a while. i think they have some control over their destiny. i think we can see everything you mentioned do well. i would probably favor big.

and if i had to choose between the two, which i really wouldn't. i think europe may outperform the u.s. >> why do you think that? >> i think at the margin, the change in europe could be greater. obviously when you go offshore you're not as familiar. maybe you need to get assistance as far as picking the stocks and picking the areas. think europe was turning, it was a rather quaint recession and in the terms it was old-fashioned. they chose to have it and i think they've chosen not to have it any more. regardless i think europe is coming out of its funk. >> john, thanks a lot, great information. john manly of wells fargo funds management. pay-back time at apple. the tech giant will refund more than $32 million to consumers settling a complaint by the federal trade commission that it charged parents for costly mobile apps that kids were buying without permission from their parents. ftc chairman edith ramirez explained how the hidden charges added up. >> the ftc alleges that apple failed to tell parents that when they entered their apple

password, they were authorizing a charge for a virtual item to be used in the app as well as opening a 15-minute window during which their child could make unlimited additional purchases without further action by the parent. >> apple will be also required to change its billing practices to make sure parents give the okay before getting charged for those in-app fees. meanwhile, apple is gearing up to hit it big in the world's largest smartphone market. starting this friday, apple iphones will be sold at china mobile stores for the first time ever. we sat down with the heads of both companies. the chiefs of apple and china mobile are gearing up for a big day on friday, when the iphone will be a available to chinese customers at china mobile stores. >> it's a watershed day for apple. it's a huge announcement. >> up until now, iphones were only sold at its rivals, limiting apple's market share. after a long courtship, the tech

titan sealed the deal last december. china mobile will get phones encouraging customers to use the high-speed data network. apple will gain access to the chinese company's vast network of more than 760 million subscribers. >> i'm so honored to be doing business with chairman xi and china mobile. they have the largest network, we're incredibly impressed with them. we have deep respect for them. and have had from the very first discussion that we've had together. we see this as bringing the world's best smartphone to the very largest and now the fastest network in china. >> many analysts believe that apple needed to brokary deal with china mobile to compete further in the fast-growing handset market where low-cost smartphones are gaining ground. tim cook isn't concerned and neither is china mobile's chairman. >> mr. xi, you now use an

iphone? >> translator: good question, i used a cell phone of other brands, but now i switched ton an iphone. i'm thankful to tim cook, this morning he gave me one of the first iphones made for china mobile. and it's gold. >> china mobile's chairman said the company had millions of preorders, even though the pricing of the phones is slightly higher than the company's rivals. for nightly business report, i'm eunice in beijing. lawmakering took a big step towards passing a federal spending bill. the house passed the more than $1 trillion bipartisan bill that will fund the government through the end of september. that bill will go to the senate where it's expected to pass as soon as thursday. the economic outlook is positive and the u.s. economy continued to growed a a moderate pace, that's the message from the federal reserve's late earth beige book survey of conditions around the nation over the past six weeks. now some regions reported a

pick-up in growth thanks to more consumer spending and a jump in factory activity. as mentioned at the top of the program, u.s. factories have been busy, especially in new york state. the empire state manufacturing index rose to the highest level in two years in the month of december. new orders, shipments and even hiring all increased. well, the white house is betting big on even more u.s. manufacturing. president obama was in raleigh, north carolina today, to announce a new public/private manufacturing hub to be developed there. the goal is to bring more research and tech jobs to the u.s. >> we've made progress. and that's what i mean when i say this can be a break-through year for americans. the pieces are all there. to start bringing back more of the jobs that we've lost over the past decade. you know, a lot of companies around the world are starting to talk about bringing jobs back to the united states. bringing jobs back to places like north carolina.

>> $70 million in federal funding has been earmarked for manufacturers in the raleigh area to make high-powered computer chips. there could be some big changes coming to amazon.com. for the first time ever in the u.s., a group of amazon employees are voting to unionize. there's only 30 of them voting at an amazon warehouse in delaware, but those equipment maintenance and repair technicians could become the e-tailers first labor union members, afl-cio's head richard trumka says there's a reason why amazon's workers want to unionize. >> a lot of it has to do with rules, they jerk people around on vacation, don't let people have adequate vacation. they don't give them the adequate respect that they deserve. and so they wanted a union. hopefully we'll get it for them. it will be the beginning of organizing amazon so we can make it a stronger, better company. >> well amazon issued a statement about the vote in part. it said medium pay inside our

fulfillment centers is 30% higher than that of people who work in traditional retail stores. amazon also said the top priority of our fulfillment center network is safety. it's safer to work in the amazon fulfillment network than in a department store. john fort has been following the story and joins us now. it's very fascinating story. so let's say they have the vote. how do you think that's all going to play out and what does it mean for amazon? >> it's unclear, suzy. both amazon and the union have said they're not sure which way it's going to go. it comes down to about 30 workers, we're not sure which way they're going to vote. we'll get the results late at night. but this is important because the union has said based on this, they want to unionize the rest of the warehouse, not just those 30, but more than 1,000 other workers move on to the rest of amazon's network this is a company that's grown gangbusters over the years, from over 20,000 workers in 2008, to nearly 90,000 as of the end of 2012.

we'll know how many they have now as of the end of this month. >> you heard the statement from amazon, sounding like we pay everybody well, we're safe workplace, why is it that these workers want to unionize? is it wages? is it something else? >> well the union says it's really not so much about wages. it is about vacation. it is about flexibility on the job. about breaks, things like that. they want to have the ones who are pushing for this, a little bit more of a cohesive voice. >> you know amazon is growing gangbusters, going into all of these new areas. as this expands, is the union issue going to keep coming back? >> i think it will. because they're moving into more traditional areas that are more traditionally unionized. we hear all this talk about the grocery business, we note they're expanding that in san francisco and some other areas. you look at a company like safeway that does grocery for a living. 80% of their workforce is union, you look at costco, 10% of theirs is costco is known to treat its workers really well.

it's got about 15,000 teamsters work he is, they tend to treat the rest of their yawn workers, cover them under the same bargaining rights that they negotiate with the unions. so how amazon acts from here, win or lose, is going to be really important to how much flexibility they have with their work force. >> and it may set the tone for other retailers like costco, walmart to follow. >> they've been trying to get more representation at costco. but the workers by and large don't seem to want it. >> i'm sure you're going to continue following this. thanks so much, john fort. still ahead, two dow components, goldman sachs and american express report earnings tomorrow. why are some expecting one report to be stronger than the other?

it's been a big week for bank earnings, tomorrow we get two more, dow component's goldman sachs and american express. we have a preview of what to expect. >> the third quarter expected to be an up one for profits at american express. a down one for profits at goldman sachs. american express's winning recipe mixing expense controls with steady spending by its affluent client base according to one analyst. >> i think three things, myself as well as most investors will be looking at will be spend volumes, cost control and credit performance on tomorrow's print. >> client spending, seen rising 7.5% last quarter with, annex seen delivering on its promise of capping expense growth at 3%. net of the efforts expected to be a 12% rise in the company's fourth quarter profits, once you account for charges that am ex

took in the same quarter. revenue growing to $8.6 billion. like american express, steven chewback said the key to how goldman sachs handles expenses in the fourth quarter, specifically compensation expenses. >> we believe there will be leverage in the fourth quarter consistent what with what we've seen. >> meaning that the amount the investment bank puts aside to pay employee revenue. goldman will have expectations for a 28% decline in fourth quarter profits. behind the flood in net income, a lackluster performer by a unit generating 45% of goldman's revenue. the business trades bonds, currencies and commodities. it was the firm's weak spot in the third quarter, weakness wall street expects spilled over into the fourth. for "nightly business report" i'm mary thompson. >> we begin's tonight market focus with a major restructuring

announcement for jcpenney. the struggling retailer said it will cut around 2,000 jobs and close 33 underperforming stores. it's all in an effort to save about $65 million a year. shares fell in after-hours trading, they were up 1% in the regular session to $7 a share. big management news at yahoo also after the bell. the company's chief operating officer is leaving, effective tomorrow. the news came out according to a filing with the securities and exchange commission. he gave no reason for his abrupt departure. he was brought in by the ceo two years ago. ahead of the news, shares fell slightly today to $41 and change. aetna raised the full-year revenue outlook by $1 billion, saying private medicare sign-ups are better than expected. the insurer expects revenue to come in at $54 billion. but aetna's stock still fell a bit to $71.40. and csx corporation said the

quarterly profits fell 4%. the railroad operator blamed the miss on a sharp decline in coal hauling. that mapped a jump in volume from strong shipments of chemicals, autos and agricultural products, shares dropped in after-hours trading but rose 1% in the regular session to $29.23. the transportation sector is one of the indicators of economic and market growth in fact as mentioned earlier, the dow transportation index hit a new high today. now, one rail that's had success is canadian pacific. and today, its chief executive, hunter harrison, was honored as ceo of the year by investment research firm morningstar, our own tyler mathison sat down with harrison in chicago. >> i guess my first question for you is how is business? >> business is good. we just completed pretty successful year that we'll be reporting in a week or so. and but business levels have been surprisingly good for us.

>> you know, in your business, the railroad business, you have a unique perch for judging the health of the overall economy. do you a lot of intermodal truck things, consumer products, you care ray lot of fertilizer, you care ray lot of coal. you care ray lot of oil. how is the economy doing and how do you think it's going to fare in 2014 overall? >> well, some would argue that i'm not qualified to answer that question. but i think that, i think i see more positives than negatives. i think if we get over this issue about crude particularly in canada and now north dakota, and i think given that we're about to move forward with the consumer confidence, i think that's going to just push us right over the top. and get the economy rolling again. and i think there's some positive numbers coming out of. if you look at housing starts. if you look at some of the projected sales in the auto industry and we're just i think right at the top of the hill.

if we can push the last little bit over, there's some momentum there. >> the little engine that could? >> absolutely. >> you care ray lot of timber. you mentioned crude there are a lot of people who were worried about the transportation of crude. particularly the heavy crudes from balkan and the oil sands. on the nation's rail structure. how worried should they be? and is the infrastructure, the cars, the tracks, which haven't been improved all that much over the years, is it up to the task from a safety standpoint? >> well that's a big question. number one, i think it's clearly in my view, we have been kind of an outlier here with the industry, the 111 tank cars that you hear so much about, if i was calling the shots would be stop tomorrow. they're not ready, they're not equipped. for the commodity as i see it. they've been controversial for over two decades now. so number one. that needs to change. i think from a track

infrastructure standpoint. much better than people givet credit for. i think we're looking beyond the toughest issue. and if you look and investigate a lot of these accidents, it comes down to human behavior. but that's not the politically correct thing to talk whether change people's behavior. so we tend to follow back on let's do some more regs. what makes you think people are going to live up to more regs? it's not a case of regulatory. >> it's often human accountability. you came in in the summer of 2012. as part of a turn-around team at your railroad led by the active investor bill ackman who brought you in. it is has been a remarkable turn-around. last year, you stock was up 39%. 2012, it was up 58%. what is the toughest part about engineering a turn-around and what has been the toughest part at your company, and where are you in that process?

the eighth inning, the fifth inning? where? >> clearly a change in people's view. change in the culture, when an organization is not successful and this company, it kind of lost its way. and you got to get it back and turn it back in a different direction. it cause as lot of change with requires people to change. people resist change. so that's the biggest challenge that we've had. but at the same time when you can make that happen, it's the biggest rewards for you. where are we in the ball baghdad? we're probably in the early innings. that's why i see there's a lot of runway left. >> what more do you have to do? you've cut workforce, you've cut locomotives. you've gotten rid of some train stock. what's left? >> there's more left in each one of those backcourts. we're spending a lot of money on improving the infrastructure with longer sidings that can accommodate longer trains.

clearly now we've positioned ourselves that we can take advantage of the service offering we put together. so we can gain market share, start to grow the business, that's pretty exciting. so there's no one area that, that we're out of opportunities there. a lot of runway ahead of us, people tend to think when the company has a run like we've had, it's over. that's what we thought with each turn-around. what do they do next? i've never been in a situation where one of these turn-around stories, where we say it's over. there's nothing else to do let's sit back and rest on our laurels, that's not the case. >> congratulations on a job well done and as a reward to your ceo of the year. >> to find out who morningstar chose its ceo of the year, go to our website, nbr.com. coming up, as hackers attack, companies are spending big money to protect themselves. so which firms are positioned to cash in on the strong demand for

security that's next. the impact of the target security breach is growing. the 110 million debit and credit card customer who is had their data and personal information stolen at target may not be the only victims of the retailer's data breach. according to a press report, companies that helped target process payments could face millions of dollars in fines and cost related to the hack attack. including a slew of consumer lawsuits and penalties from visa and mastercard. target's data breach has sparked a big demand for greater security from other retailers.

josh lithen takes a look at little-known companies that are poised to make big gains by taking on hackers. >> hackers are making headlines, massive credit card breaches at target and neiman marcus have retailers on edge. the president of saks is calling the target hack attack a quote air force one emergency for the retail industry. chief information officers are nervous. they're ready to spend more on cybersecurity. morgan stanley in a new survey of cios, finds that network security is high priority in 2014. cios expect an average of 8% growth in security this year. >> all of the indicators -- >> keith weiss at morgan stanley says hackers can do a lot of damage. by stealing everything from a company's intellectual property to its customers' personal information. >> cybersecurity in particular has been a top priority for cios for the past several years. the main reason is the threat

environment out there is one getting worse. and two, quickly evolving. and that the threats are getting worse. and what those threats actually are is a changing, change in dynamic. so cios are spending a lot of time trying to stay ahead of the threat environment. >> the question for investors, which companies are best positioned to capitalize on the stronger demand for security. weiss says one of his top picks is fortnet. given the stronger demand for security. he says it's going to get more business this year. dan ives with fbr is sticking with fireeye. he said it will move higher as it takes share from intel's mcafee. and webbush is bullish on info blocks, which offer as product that prevents malicious software from spreading through a company. singh says info blocks could get a boost when companied to announce new products in late february. the problem of hacking isn't

going away. so these are potentially strong investments for the future as cios do their best to prevent hacking. that's "nightly business report" for tonight, thanks for watching, have a great evening and we'll see you back here tomorrow night. >> announcer: "nightly business report" has been brought to you in part by -- >> founded by jim cramer, the street.com is an independent source for stock market analysis. cramer's action alerts plus service is home to his multimillion-dollar portfolio. can you learn more at thestreet.com/nbr. ♪ ♪

% hello. and welcome to this is us. we're at history san jose time stands still. this living history exhibit is one to san jose most interesting historic buildings. we're going to take you into them. the first school built in the state. the old steven's ranch fruit barn and working print shop. we'll also visit with former member of franklin roosevelt -- did you notice they camped here? stick around we're going to have some fun.