this is "nightly business " wh tyler mathisen and sue herera. stunning setback. the house torpedos a key trade-related bill and a step to granting the preside negotiating power but the fight is far from over. > triple digit decline. stocks end the week with a sharp slide and there are three things that could do that even more ne week. drowning in debt a surprising number of homeowners still owe more on their mortgages than their homes are worth, even as home values rise across the country. all that and more tonight on "nightly busin" for friday june 12th. >> good evening, everyone. i'm sharon epperson in for sue herera. and good evening from me, tyler mathisen.

a triple digit decline on wall street. more on that in a moment. we begin with a big defeat for the white house, the key bill to push expanded trade negotiating authority has been rejected by the house and his own party. a last-minute trip to capitol hill was not enough. in the end, the vote was an astonishing 302-126 on a portion of the legislation that helps workers lose their jobs because of imports. that leaves the president's fast-track authority in limbo, which would give the administrati the ability to wrap up negotiations on the transpacific partner a massive free trade deal affecting 40% of the global economy. john harwood tells us what happened today and what's next. >> this was a very big defeat for president obama and republican leaders in the house and senate. they needed this package to go

through as a whole in order to advance the president's trade agenda and clearway from the transpacific trade partnership deal that they hoped to negotiate dozen nations later this year a conclude and get it enactednto law. the rebellion by democrats sunk the portion of the package, the trade adjustment assistance. tpa itself got a majority. if republicans are able to bring the trade adjustment assistance back for another vote they can, in fact move forward but it's goin to require another vote or changing that package and getting the senate to pass as well which is more difficult. the more likely thing to happen is that the house is going to try another vote perhaps next week and see if they can wran wran p initiated by lab unions for the free trade deal that they want and president oba wants. for "nightly business r"

m john harwood in washington. >> the white house called today's trade vote a pcedural snafu and said it's important for republicans and democrats to come together on that tre adjustment assistance. it is clear that the debate over trade is far fm over. hampton pearson takes a look at who is on either side of this controversial piece of legislation and what they have at ste. >> reporter: today was a big win for big labor. organized union leaders say they are focused in the millions of manufacturing jobs lost over the last decade to china and other low wage economies was a key factor in congress stalling key legislation tied to the transpacific partne >> this is the beginning of a new look at our economy. there is a clear choice that was made today between workers and their rights and their needs and their family and community and a sense of corporate entitlement around the country. >> when the votes were counted, the worker subsidy

mease was overwhelmingly. >>he the nays are 302. the motiond enco 40% of the global economy and about one-thir of all of the global trade. the biggest upside for the american economy, a chance to open up asian markets to american agriculture, the pharmaceutic industry as well as high-neck and a knowledge-based econo where there is a strong competitive advantage. all part of a bottom line to overall u.s. trade. >> we le in a global economy and recognize that and need to make sure we remain as innovative as we can but sort of a global marketplace and breakdown those barriers and walls, trade is part of that. >> repor the house did vote to green light the authority for the president to negotiate what could be the biggest regional trade deal in american history. in the meantime both big

business now digging in for a battle that is far from over. for "nightly bm hampton pearson in washington. > on wall street a triple digit decline as concerns over greece cn stocks. the dow jones industrial average fell 140 points to 17,898 back below 18. the nasdaq dropped 31 and s&p 500 lost 14 points. despite today's big move all three of those indexes barely budged for the week to moving up a little the nasdaq lower. next week could be different. bob pisani of the new york stock exchange has the three things that investors like you need to watch. >> reporter: investors escape with little damage this week but things may get more volatile next week. here's three events that may move stocks. first and more important, the federal reserve can lose its two-day meeting on wednesday. no one is expected to raise rates at this meeting or really even in july but most are expecting them to lay the

groundwork for a september rate hike. the trick to do that is without causing a sudden spike in interest rates. many believe the fed will likely announ a one and done policy where they raise rates once in september and then hold off for the rest of the year. we get housing starts o tuesday. they hit a seven-year high in april and we'll be below that for may but anything close to that enforces the idea that the housing market has recovered from its spring slump. next friday is the quarterly expiration of stock and index futures. despite concerns about rate hikes, traders have notet panicked and there is market volatility. the fed meeting may make them change their mind. for "nightly business rep bobisani at the new york stock exchange. our guest tonight says there's something else investors should be watching next week that could drive trading during the entire second quarter. he's chief global investment

strategist at charles schwab. jeff thanks for being here. >> my pleasure. >> does this have to do with preannouncemen it does. we're heading into the last quarter and that often is confession season as companies confess maybe what might be dragging down the results during the quarter. the good news is though it looks like the big drags on first-quarter earnings faded in the second quarter. we're not seeing the same moves in the dollar or oil. that could be the results for q2 could be better than q1 guidance when they last spoke to us. >> are there any companies or sectors that we ought to be on special watch for? >> well we definitely want to watch some of the multinationals particularly in the industry and technology are exporting a lot, perhaps into europe as we loo at those economies beginning to recover here in the second quarter and also the movements in the dollar certainly acting as maybe a negative to some of these companies but most likely with the economic recovery

maybe seeing themselves pick up. there's a balance between those two factors, something we want to watch closely. >> what about watching overseas? should we be concerned about greece or is there anything to pay close attention to? >> greece is certainly something to watch and creates volatility. overseas may be the mers tbreak in south korea and ot in the asian region that's weighing on the airline stocks as well as those outbreaks continue. but it looks like they may have this contained now and if that seems to be the case over the next few weeks you may see a rebound in those indices. >> i know you'll be watching the fed as well as all investors will be next we. jeff from charles schwab, thank you. > consumers are feeling better about the economy, according to a university of michigan survey. sentiment rebound and beat expectations in early june. the comes despite higher gasoline prices. the biggest increase sense 2012. the pro producer price index

measures the wholesale prices that businesses get for goods and services increased .5% last month. >> anoth key pillar of the economy, housing. as home prices rise more and more borrowers are coming up from their being underwater on their mortgages and regaining the home equity they lost during the crash. but the problem is far from over and one of the reasons there are so few homes available to buy today. diana olick reports. >> r david and heather littlejohn just loved building their rural oregon home back in 2005. but even then they considered it a starter home. when we talked to them two years ago, they were deeply underwater on their mortgage but hopeful they could dig their way out. today, with their third littlejohn knocking at the door they are still stuck. we caught up with them on skype. >> i did not expect to be here. our original plan was three to five years in this home and we have since converted dave's

office to a nursery which we figure you know will help us get through the next couple of years. but we're still hoping to move. >> reporte nearly 8 million borrowers are still underwater. that's a little more than 15% with a home mortgage. a vast improvement over las year but still about half of those borrowers are deeply under water, ot least 20% more on the loans than the current value of the home. with home price gains expected to moderate these borrowers could remain under water for many years to come. and that throws a real wrench into the housing cycle, especially whe it comes to starter homes like the littlejohn. those are the homes that attract first-time home buyers and because so many homeowners are under water, it makes it hard to sell their home to new buyers and supply the demand for the people on the next rung of the ladder. >> there's great bargains that

we'd like to move into but still since we haven't developed any equity in our own situation, we're going to have to produce the equity in some other fashion. whi their home ha appreciated, they were so far under that coming up could take a few more years. in the meantime they are aggressively saving and considering paying into the mortgage in order to get out of the house. for "nightly business r i'm diana olick in washington. still ahead, our market monitor says forget stocks. investors should own mutual funds instead and he'll tell us which ones he likes right n

there may be another showdown in congress. as we told you yesterday, export/import charter expires at the end of the month. big american businesses like boeing and caterpillar extend loan guarantees to foreign customers but benefits many customers in the gulf region. >> reporter: they are among the wealthiest countries in the world. when it comes to doing business they are not above hunting for a bargain. with a population set to skyrocket 40%, the economic forum predicts the middle east and north africa will need to invest over a year in infrastructure just to keep up. and that's good news or could be for some of america's biggest private employers. companies in sdi arabia the uae and turkey top the list of beneficiaries of the controversial export/import

bank. taxpayer money has helped subsidize the purchase of everything from nuclear reactors to commercial aircraft. with africa accounting for 13% of the total xm trade financing between 2010 and 2014. now as the 80-year-old program gets set to expire critics are ramping up the rhetoric claiming that the multibillion dollar profit for companies like boeing and ge don't necessarily mean bigger benefits for employees or taxpayers. but with billions of dollars in mega projects up for grabs, supporters say it will be a shame for u.s. companies to miss out on the action. fo" in london i'm dley gamble. wall street had a big appetite for wing stop and that's where we begin tonight's market focus. i'm hungry. the dallas-based restaurant chain valued the company at nearly $1 billion. shares were priced at $19 a piece on all of the wings that you can eat.

the stock closed at 39.59. that's an increase of 61% on the day. fedex will book a pretax charge of $2 billion. they say it will make it easier to gauge planned performance. shares are off a fraction from 183 to 163. jack dorsey spoke today about the departure of dick costalo. we always had a talk about the next step of the company and we do that to make sure we're putting the company first. we did not want to interrupt the momentum. if anything we want to amplify it because we're extremely excited about the products and new initiatives to come. >> and shares were a few cents higher at $35.90. bob evans is considering either converting to a real estate investment trust or otherwise

known as reit and they will make a decision within the next few months. shares were up 3% on the news. >> big shares for eli lilly. big move in a short period of ti for a big pharmaceutical company. there you see it. many say it has to do with the experimental alzheimer's drug. >> reporter: alzheimer's disease has been a particularly challenging area for the pharmaceutic indus with drugs failing in the late stages of trials. this disease affects more than 5 million americans so excitement has been increasing around experimental drugs. >> it had what i would say is a

checkered past. failed to hit the primary end points. >> despite the setback in 2012 lilly identified a group of patients for whom the drug appears toe working. >> they considered to be mild and moderate alzheimer's patients. they appear to be responding better than patients who have had the disease for a long period of time. the inanapolis drugmaker is focusing on that patient group in clinical trials. the key study expected to report results late next year but could provide updates on how it is doing ahead of a conference in july. the excitement follows a run-up earlier this year for biogen a competitor. th both target the part of the brain associated with alzheimer's disease, unlike currently approved medicines that symptoms with limited effects. that helps drive newly public biotech company shares to almost

double yesterday in the first day of trading. the company now has a market value of almost $3 billion. morningstar analyst estimates the drug if successful could draw $2 billion in annual revenue, likely priced at $10,000 a year. it will have to get through the last stages of testing first and may not hit the market until late 2017. the movement in the stock price y reflect too much optimism and another medicine for cholesterol will work. >> both of the drugs are a little bit more on the risky side. swing for the fences and a lot of times you strike out. >> repor with alzheimer's cases expected to triple by 2050 without new treatment, they are all hoping for a hit. for "nightly business r" i'm meg terrell. 11%f children have attention deficit disorder according to the centers for

disease control. billions of dollars are spent each year to treat the disorder. dina has this story. >> go ahead and put it in your hand. this should go behind your ears. >> am i the red guy or purple guy? >> you're the purple guy. >> reporte this was created by anntrepreneur and it is meant to help people with adhd. exercises like this could help improve concentration levels. >> the more you concentrate, the higher it will jump. so we have a video exercise if which you will see a movie that is controlled by your conclevels. >> rep the more you concentrate, the brighter the screen becomes. same with volume here. ♪ >> it shows the progress of the user. >> wha inspired you to do this? >> both msister and brother have been diagnosed with adhd and started taking adhd

medication which has the most annoying side effects starting from headaches to loss of appetite. even with the potential side effects associated with adhd medications, it's a multibillion dollar market for drugmakers. >> if you can deal with adhd. >> reporte neurofeedback but there are skeptics about how far the technology can go. >> there's not a lot of information available. no parent wants to ge their child a medication. >> reporter: still, this entrepreneur hopes this device will train people to focus without taking medicine. >> we gather a team of desibers and enginee and people who have come from the medical field in order to create this. >> for "nightly busine new york. tonight's market monitor says buy the manager, not the

fund ktfact he trademarked that fact. ups down 3% and visa up 17%. let's hope he does as well this week. jim lowell let's start with a quick thought on what y see for the markets over the next six months. >> i think we're going to see a lot of near term volatility. this is a market that is broenpr to whatever the fed may or may not do. i think investors need to get used to a lot more volatility and into that mix, games typically are made especially if you're a good long-term investor or investing in long-term investing. >> are there certain mutual funds that you could invest in that will help to alleviate some of that volatility? what are some of your favorites right now? >> so i would say my hat trickk effects

would be fidelity international gro and fidelity japan smaller companies. i don't only invest with fidelity funds but i like those three in particular. the managers behind each of them has stellar track records not just in up records but in downdrafts and losing less will allow the measures to climb out of a hole versus an index fund or etf. in particular i like the u.s. mega cap space because it's still relatively undervald, especi compared do our mid- and small cap areas here at home in large measure due to the fact that their revenues arrived from the markets which are weaker than our own. across the pone is just a perfect trouble spot. that's great news for a manager with international growth that has a long-term track record of going in, turning over the stones finding the rubies in the rubble and helps me sidestep equivalent to our s&p 500 which

says success at 15-year highs almost e think that's overvalued. they are not vulnerable to currency and exports and if you know what you are doing, there are over 1,000 companies in the japan marketplace which under 13. less than 200 in our own russell 2,000. jim, i've known your work for a long time. to be absolutely clear with the viewers, you specialize or at least these picks are fidelity picks. it's independent of fidelity adviser or something like that. >> it's called fidelit investor and it's been out and about for over 15 years, top-ranked and that is one of my expertises. i also have been writing about exchange traded funds since 1996 a long time before anybody even thought they were the best mousetrap in town. >> jim, thank you very much. appreciate it and appreciate

your time this week. have a great weekend. >> thank you, you too. koch coming up one industry is having a hard time finding a bank to do business with. there may have been second government data breach. the associated press is reporting that hackers linked to china gained access to sensitive background informa submitted by intelligence and military personnel seeking security clearances. >> well, entrepreneurs are launching legal marijuana businesses at record rates in

many states. but like any growing industry the pot business is seeing its share of growing pains. and one of the biggest hurdles is finding a bank to do business with. kate rogers talks to one entrepreneur that i attempting to overcome that challenge. >> despite continued progress in the fight to legalize marijuana for both medicinal and recreational use, the drug is still illegal on a federal level. this means entrepreneurs looking to cash in on the budding business model struggle to establish relationships with the banking community. it's a battle andrew deangelo knows too well. >> we're on our 15th bank or so right now. once you go through that experience that many times, you sort of learn how to improve the way in which you establish these relationships with banks. >> reporter: deangelo and his brother run a medicinal discpensary in oakland, california and they've been in

businessor nearly a decade and managed to form two relationships wit banks, one a credit union and the other a regional. but he knows that at any me those partnerships may disappea instead of going through the trouble of establishing a legitimate paper trail for their clients, they'll just not do business with anybody in the sector because it's just easier for them. >> repor they deal with a lot of cannabis and cash. in fact, i'm holding nearly three pounds of marijuana here which is worth about $9,000. one of the things that makes harborside a standout in this community, they ha employed a ton of safe practices. things as simple as properly counting cash goes a long way with banks. >> it's really about watching and counting over and over again and making sure that people -- when there are shortages, if they are shortages, we do a further investigation. harborside

has an extensive security measures with vaults upon vaults. they have more than 40 cameras and even with these measures deangelo knows that his banking relationships are fragile, subject to change with cultural and political shifts. for "nightly business r in oakland california i'm kate rogers. and that's "nightly business " for tonight. i'm sharon epperson. thanks so much for watching. and i'm tyler mathisen. thanks from me as well. we hope to see you right back .

♪ it's all right, it's okay ♪ ♪ doesn't really matter if you're old and gray ♪ ♪ it's all right, i say, it's okay ♪ ♪ listen to what i say ♪ ♪ it's all right, doing fine ♪ ♪ doesn't really matter if the sun don't shine ♪ ♪ it's all right, i say, it's okay ♪ ♪ we're getting to the end of the day ♪