this is nightly business reporth tyler matheson and sue herera. >> stall speed. the growth of the wind extended in >> crude realities. profits drop sharply at two of the world's largest oil producers as low crude prices challenge big oil. >> big promise, the much hype mart phone not so smart after all? >> good evening, everyone and welcome. the s&p 500 hit an intraday high, but closes just shy of one. when it comes to the economy, there was the economy expanded much less than forecast in the second quarter. surprising investors who were

expecting a pick up following the weak start to the year. the commerce department reported a 1.2% rise in gross domestic product. the broadest measure of goods an services produce nd the nation. estimates were the for 2.6% and dprout for the first quarter was revised lower, raising questions about the pace of the 7-year-old economic recovery and what the fed might do next. steve liesman has our story. in the heat of summer, washington got a blast of cold economic air on the economy. the government reported tepid growth in the second quarter of 1.2%, more than half of what economists expected. the report showed the prior two quarters were weaker than thought and it raised worries that the economy could be slowing down. curiously, consumer spending did well with business investments that kept growth down. >> consumer rs the economy. that's the piece that matters. that's flektive of strong payrolls and resilient wage,

that's companies continue to give money back to shar. not willing to make that investment and -- >> has declined for three quarters antd some believe it on gets worse from here. from lean greene u.s. lighting tech and equipment spending, some point to a shash decline in inventory. they say companies might need to keep destocking th so inventory building could help future growth. they also believe government spending growth will help rebound. the weak growth to rule out additional tightening from federal reserve. >> the odds are going to play some 50% and move a quarter point in december, but i think in so much as international factors, brexit, what's happen ng the bank of japan, so i think the fed is going to be more cautious.

>> a word of call your revisiion. growth numbers could be revised to be as little as zero or as much as 2.5%, but for now, investors have to think more about a weaker 1% economy than a 2% economy. i'm stev >> what does today's report subject about the health of the economy? jim khan joins us now. jim, welcome. good to have you with us. does today's number which is probably i would characterize it as worrisome, suggest that the slipping into the territory or that monitory policy, the fed, low interest rates have lost their p >> let's be honest. today's report was clearly disappointing. growth that's up 2%. in this economy ap see. but if quu weather look at

underlying factors related to very unique now b it's almost like brexit never happened, but if you were a ceo sitting there in early june making a de whether or not to build a plant, invest in more productivity, whatever it might be that ewe need to grow your business, brexit didn't make that decision. now, on the flip side, you might say are we reaching stall speed. at which the economy is going to plunlg a recession? if you look at consumer spend, it was up 4%, which means that the consumers are starting to feel the ben. in the country is up 4.7%. they're starting to feel the benefit of some wages. people are feeli little bit better about prospects. gl what do we do with this report? is it like the fluke in the

unemployme figures we got this year? do you put that aside given what you laid out with brexit? econo expansion?this >> well, oi wish it was it was that easy. i think we need to reset engs peckations for gdp it should go about 3% in the u.s. but if you look at the decade, in new workers enenters the workforce grew about 2.1% per year. means that productivity in order to get back to that 3% number has to inkrecrease by 1. productivity growth, new workers entering the workforce, i think we should be happy if the growing at 1.26%. we have to look forward to the

third quarter and ask if the inventory burn o was suff and we don't see a pick up, we should worry. if we do, then i think we're probably on a pace for continued strong growth. >> all right, i didn't mean, thank you very much. jim khan, chief investment officer with wealth enhancement group and later in the program, given the strong consumer spending compo of the gdp report, our market monitor has some consumer related stock picks. speaking of the consume r, consumer sent sho that higher earning americans see britain's exit from the european union as cause for concern. the report noted that global uncertainties as well as the presidential election will keep some cautious. >> on this last trading day of jue pront of gain, but for the day, stocks like the economy didn't move much. here are the closing numbers. blue chip dow index off 24 at

18,432. nasdaq rose to its highest level this year and the 500 was up three just shy of a record. for the month, nasdaq was the big winner of more than 6 f%, but recently, stocks have been traded in a narrow range and as bob pisani reports, august has the po >> august is traditionally poor for the stock market. the worst since 19876789 usually on light volume and low volatility unless there's a crisis. there was last august. there was one in august 2011 when the greek government debt crisis happened. then there's the election. an uncon vengal candidate in the form of donald trump. his problem. no incumbent running. according to merrill lynch since 1928, a drop in average of 2.8% in presidential election years that don't include an incumbent

seeking re-election, but in years president is up, average runs of 12.6%. why? the theory is that incumbents tend to obsess over market a l f these old trards salts are not working. sell in may, go away. that's not up 5% since the start w have may. >> new cancer and hepati treatments helped merck host an increase in second quarter revenue. merck has been trying to grow sales with new medicines after several years off setting a loss of some of its treatments to generic competition. earnings and revenue topped wall street expectations and shares managed to finish the session up slightly. >> oil prices steady today after

a week long sell off. domestic crude settled up, but for the month, it's on crude is down sharply 17%. it is those low oil prices in fact, exxon mobil reported its smallest profit since '99. chevron rose. jackie deangeles has more on big oil's big miss. zpl the main issue for exxon mobil and other energy companies this quarter was international growth and continued low commodity prices even though crude got a slight bounce in the second quarter. the ceo is said the industry environment is volatile and the company is focusing on cost co. refining did help the bottom line even though margins were skeezed and the company will maintain its dividend. chevron earnings were a few

cents chece also, the company maintained its payout of more than a dollar, but the energy majors have been cautious, signal iling a of the street. >> we remember what happened last year. fourth quarter and this year, first quarter. where demand bas and oil wasn't being used. oil's a seasonal market. once it ends, demand drives up. if you continue with the supply the way it is, you're going to 30 cos cuts are generally a positive in calling time, but there comes a point where only so much can be done and analysts are questioning how sustainable. cash flow is tight and oil pr e appears tor murky for the energy industry with crude prices falling into a technical bear market territory, meaning they're down 20% from their june high, there could be a rough road ahead.

>> still ahead, some of the hottest stocks of the sizzl >> the network of hillary clinton's campaign was reportedly hacked according to reuters, this is part of a broad cyber attack on democratic it also follows two other hacks. one on the democratic fund raising committee for candidates house of representatives and other, the democratic national committee. zblncht the tech sector led the market thi landon dowdy tells us which stocks are sizzling.

>> summer is time for investors to set it and forget it, but there are some stocks that sizzled kurg the summer month, specifically in the tech sector. out of the the ten in the s&p 500, tech is up the most. jumping 8%. it's been a top performing sector, but on average, techlands in fourth place on the list, so what specific stocks are sizzling? sea gate is up more than 40%. thanks to positive dwins earlier this monlt on a heels of a restruct technology and ebay bo up 31%. linear stocks have turned around this year after the firm received a bid for about $15 billion. and as for ebay, the company reporting earnings last week of very positive same store sales an an solid guidance. after strong results from amazon, facebook and google, the ek tor may get hotter.

>> hr deliveries are revenues at ups and that is where we begin tonight's market focus. >> the world's largest package delivery company beat sales. the company also reiterated its earnings guidance for the full year. shares of ups rose fractionally to 108.10. profit was cut in half at phillips 66. the energy company said a gas glut, but earnings still managed to beat expeck tases. revenue fell burke came in shy of estimates. t sh cents to 76.06. strong demand for strucks and suvs h, but that wasn't enough to beat estimates. the auto retailer did report profit that was bert than ek pechted, so shares were up more than 2% to 53.35. cigna posted profits for the quarter bel expectations.

the company cited weakness in its group disability and life decision. shares fell though 5% to 128.96. >> weaker sales dragged down profit and r at bloomenbrand. its revenue did come in light. the company issued guidance for the year that was below forecast. shared 17.98. board of directors said it will recommend sh apruf the sweeten takeover over from anhe. the bid was for m shares up 2%. shares of series therapeutics said it's drug intended to treat an intestinal diso.

it will work with the food and drug administration to make modifications to the treatment. shares down 59% to 10.94 and several private equity firms may be exploring a buyout of company hewlett-packard enterprise. this according to the website, the information. a potential deal could be worth more than 40 billion. hewlett-packard declined to comment, but shares rose 20%. and now, to our market monitor who likes stocks that he says should benefit from riser consumer spending. when he was on in october of 2015, we recommended disney, which is down l% depot, up 124% health care, which is 23% hire. here's john trainer, the chief investment officer at united bank wealth management. good to see you, john, welcome back. >> thank you. >> let's get to your stock picks. disney. it's had some rough going, however, but i was just at

disney. people were certainly spending. you still like the stock. >> absolutely. we want to be exposed to the consumer. but what we really like about disney is content. if you look at netflix, hulu, these new delivery technologies, they need content and that's what disney does. stumbled because of concern about eric spn, which is a real concern. something we're watching peopl turning off the cable box and going somewhere else in when they go somewhere else, they want that content, so we we think this is a great t n tw. you say a price of $60 i months. >> it's a fairly conservative love to be surprised on the upside. what microsoft is doing is i don't know if it's appreciated by a lot of investor, they are dramatically changing their business revenue model, moving away from a release of software, where they get a big rush of

funds to a more awe knewtive to the cloud.y move the it's a graed move for them. we think that could lead to pe multiple expansion if they become more and more successful, so that shift in revenues to the cloud is going to have a big impact on microsoft. >> you also like starbucks with a target of $61 and you're looking at their long-term potential here, specifically as relates to china. >> krek. if you look at their earnings report, they dd on u.s. comps. but china, they were a little over 7%, so they had a very good report from our standpoint on the . plus they're exand, they've got the mobile app where you can order through your foin to get your order set, your latty set before you get there. y was perhaps john a

surprisingly good month in light of the brexit vote, what do you see between now and election day, august, september, october. >> you're correct. july was a very good month and what we liked about it was it was much more of a risk on type market. where people focused on those companies that are growing earnings. it wasn't driven by the defensive stocks. the utilities and telecoms, so it was a structure of the market rise. it was very, very helpful. what we think we're going to be focusing on between now and especially you tal august earli the gdp number this morning and we libed it. the initial number wt good, but if you look at final demand, it was about 2.4%. you're going to have employment number next b wie. the more investors focus on the economy, i watched both conventions and i can tell you, the election, it's

going to be exciting. it's going confu for investors. you bet. >> indeed. thank you so much. have a great weeke peop e promgs of the nart home was bill big and cool and high-tech, but the reality is something here's a look at what to watch for next week. monthly auto sales out f tuesda components report earnings. pfizer and proctor and gamble pbl. the biggest release comes friday with july's employment report. investors lpt to see if the bounceback we saw in the last

report has held and that's what to watch for next week. >> start ups are settling down just north of california. portland oregon is fast becoming an entrepreneurial hub for health and fitness companies and lies of course in the shadows of nike's headquarters. kate rogers is in portla >> while the u.s. men's gy a the international in rio, one start up in portland is helpin. >> wearable technologies created custom wearables for team usa to do more than just count steps. these devices study the quality of each step analyze the day to to enhance performance. >> we can capture the gymnast running up to a vault and so we can look at and characterize their wod di movement, so looking at efficiencies.

so are we trying to improve their speed, let's look at efficiencies or trying to improve their rotations, let eat look at their form. technolog made portland a great pl ho loca resources like the portland state university business accelerator where the start up is based, have helped give portland's ecosystem away. dpl ther of highly qualified, highly educated people who are available now and we're seeing more and more availability of money here. >> venture capital funding in oregon hit a five-year high in 2015 according to dow jones venture source, proving investors aren't shying away from good ideas outside of new york and san francisco. more broadly, the portland metro was ranked a top five location for small businesses in 2015 according to data from the cough e thriving here in portland with

nike, adidas and columbia sport s wear calling the area home likee g tt boxing and noticing a problem among female fighters. the gear didn't fit properly. >> community i'm passionate about and these women deserve their ath let czyz k deverves respect tnd way to get to this point is by saying you deserve products just as good as men's. >> he took that message nationwide in 2015, first on kick starter and now on the web and in a handful of local gyms. t also a really strong community of fostering local artie sans and busines comradery as well as the work life balance. >> one thing's for sure. portland tart ups aren't trying

to find their way out of the sili anytime soon. i'm kate rogers in portland, oregon. >> to read more about portland's tart up, head to our website. make your homer of tech high-tech allowing you to controt with your phone or communicate with your refridger, but is it really smart or just hype? >> smart fridge and echo promise to save time and increas around. but there are real challenges. as we learned when we tested out the august block's new int gags. which is supposed to make it ea. >> first, you instahl the august smart blocks and wi-fi bridge needed to make the conduction. next, set up your amazon echo

with the e then you give the commands alexa, tell august to lock my wi-fi is work, your door should look. that's how it should part in th it wasn't so seamless. after several tries, it fintly worked. >> august checked the door and it was locked. august ceo jason ring w johnson told us that the company decided to integrate with amazon's echo based on customer feedback. >> the challenges if you have to use an app for every device, smart lock or thermostat or lights, it's bit cumbersome. it's allowing people to use their voice. i think our customers and people using these tech ap that. >> in order to take full advantage of this technology, it will cost you. the amazon echo will run you about $180. and then add in the cost of the

august smart lock and the wi-fi bridge for a grand total of $460. according to juniper research, the smart home market could reach $71 billion by 2018 up from $33 billion in 2013, but a number of roadblocks still stand in the way including security, hacking concerns, frustration over the insulation process and cost. t some say obstacles represent a barrier to mass market adoption of smart home tech. >> practically speaking,s it's really difficult for people to integrate it right now. you've got all kinds of different technical standards. products that inexpensive maybe one at a time, but when you add them up, the ones you need for your home, makes the entire exercise for expensive and frankly, a lot of questions of is this worth my money any way? so, it's a very tough time right now r if smart home. for a t living up to th

long time. >> one solution is to rely on big servers like at&t to bundle and install the technology for you, which would take the guess work out of bringing the technology into your home. >> or you could just use a key. just a thought. all right. that does it for nightly business report tonight. thanks for joining us. >> thanks from me as well. have a great weekend, everybody and we'll see you here on

♪ it's all right, it's okay ♪ doesn't really matter if you're old and grey ♪ ♪ it's all right i say it's okay ♪ ♪ listen to what i say ♪ it's all right, we're 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 ♪ ( reporters clamoring ) all right! okay, i will make a statement if i can just hear myself think. i'm delighted that the tribunal has reached this verdict. this judgment represents an opportunity for all organizations to shatter glass ceilings. there is no room for sexism in the workplace, no room for sexism in any place in 2014.