s ♪ this is "nightly business " with tyler mathisen and sue herera. what rate worries? investors shrug off concerns over a potential interest rate rise, sending the dow up triple digits. here we go again, with home prices rising steadily and near record peaks. some are starting to get worried about the dreaded "b" word, bubble. and space race. the big money backing to push the envelope and get to where no man has gone before. all that and more for monday, august 29th. good evening, everyone and welcome. i'm sue herera. tyler mathisen is off this evening. as alfred e. neuman of "mad" magazine fame used to say, what, me worry?

that's what investors seem to be saying as there was no fear of the fed, at least not today. some of the pros on wall street said the market was reassessing whether the federal reserve will raise interest rates as early as next month. as a result, stocks closed higher with financials leading the way. the dow jones industrial average rose 107 points to 18,502. the nasdaq climbed 13, and the s&p 500 added 11. this bull market is more than seven years old and with stocks flirting with record levels, there is always a camp concerned with the pullback and naturally the bull carved thinking this is just getting. mike santoli has a look into when the market is anything less. >> with stocks near record highs and bonds holding up well, is there anything more in coming years? on the surface, it might seem stocks are due for a pause since february that's capped off a fine five-year run. the late summer of 2011, the

european debt crisis sent stocks reeling, the standard & poor's has learned ab average of 16% poor year, well above the historical average and a relatively high valuation compared to corporate earnings. all else being equal, buying stocks tends to produce sub par gains in the future. standard portfolio of 60% stocks and 40% bonds has gained more than 10% annually over the past five years. both stock and bond markets supported by low interest rates around the world anchored by central banks trying to promote growth. with the fed looking to lift rates again and stocks already sitting on impressive gains, it's fair to ask whether investors should race for a rougher ride from here. some market watchers insist the bull market is not quite as old and vulnerable as feared. stocks only begin making new highs for this cycle in 2013,

they point out, which perhaps is when a new long-running market advance truly began. and equity returns over the past decade at around 7% per year have been relatively modest. of many long-running markets of the past built up far heftier gains by the time they expired. perhaps investors should acknowledge a distance already traveled by keeping their expectations muted. that way any dramatic up side from here would come as a pleasant surprise. more like a gift than a debt repaid. for "nightly business report, i'm mike san totalliiy at the nw york stock exchange. >> consumer spending, the biggest source of economic growth rose in july, matching expectations. and the feds preferred inflation indicator, the pce price index ticked up last month and it's up more than 1.5% over the past 12 months. the fed uses this gauge as one of the tools to help it determine whether or not to raise interest r but low interest rates have been a contributing factor in

the housing recovery. but with the steady rise in prices and some markets passing their previous peaks, diana olick tells us some are wondering if we're in a new bubble. >> ten years ago last month, home prices hit their peak of the housing boom, and we all know what happened after values dropped for six years by the most in history, but somehow we are almost back where we were. >> the pace of appreciation and the pace of achieving the new peak, that definitely was achieved more quickly than we would have expecte the reasons that we think that has happened now is the continued aggressive stance by the fed to keep rates low. >> june marked four straight years of national home price appreciation with prices up 33% from that bottom in 2012. a new report from black knight financial services put the average home price in june at

$265,000. that is within just 1.1% of a new record high. >> during the housing boom and is bust, there was this industry-wide mistake of loose credit over building. euphoria, irrational exuberance in the housing market and buying a bet that prices would increase. that's not the market we're in now. what we're seeing is a more timid market, restrained market and i would argue too restrained. prices today being driven by a severe lack of supply for homes for sale in addition to low rates. of the nation's 40 largest cities, 14 have seen home prices cross to new highs. some argue we're not in a bubble, because housing is still historically affordable. but it's only affordable if you can qualify for the low interest rates out there today >> right now it takes pristine credit to qualify for one of these great rates that are out there in the market today. it also requires a hefty down payment and while yes, there are

some lower down payment programs out there, coming up with cash in this environment for some people is tough. >> precisely why first time home buyers are still such a small share of the market. affordability is in the eye of the mortgage holder. diana olick, washington. home prices on the rise and some housing markets reachesing of those levels not seen since contribution 2006 are we in a new housing bubble? ralph, as i understand it, you don't think we're in a bubble. >> i don't think we're in a bubble. and primarily for two reasons. one, we're not overlending and two we're not over building. the home ownership rate hit a 50-year low so i think it's hard to make the argument we're in a opener-occupied bubble and two, we're not building a lot of housing. the number of housing starts is still about 20% below average. on top of that, existing inventory is low.

and that's what is keeping prices. >> maybe also because we hear some of those stats just last week where the average price of a home in san jose is $1 million, the median, the average price. does that skew the perception of people who are looking at the housing mark? >> certainly does. you know, there are certainly -- these outliers like san francisco and san jose where it's going to cost $2 million bucks to get a home but a lot of other affordable places in the u.s. took at places like toe leada, dayton, home buyers have to spend about 15 or 20% of their income to buy a home. so the tale of two housing markets with the mos expensive and the least expensive still relatively affordable. >> yeah. what about the interest rate scenario, ralph? lending is still relatively tight, unless you, as we saw in diana's piece have really good credit. but if interest rates start to edge up, as many in the market

think they will do, sooner rather than later now, what will the impact be on housing? >> you know, it's going to take a series of consecutive interest rate increases in order to impact mortgage rates. mortgage rates are only loosely tied to the fed rate. in fact, they're more tied to the ten-year bond, after investors -- the reason why interest rates actually went down because of brexit, because investors are flocking to the ten-year bond. you know, if the fed does increase, three, four, five months in a row, yeah, we might see some pickup of mortgage rates. but that's unlikely. and on top of that, consumers are really more concerned about finding home and saving up for a down payment, and third on that list is interest rates. so we really don't think there is going to be much of an impact on the housing market, unless it's a series of strong increases by the fed. >> unless the fed gets really aggressive. okay we'll leave it there. ralph mclaughlin.

in an effort to combat the spread of the zika virus, the food and drug admini has given emergency approval for swiss drug maker roche's diagnostic test. the test can be used to screen patients with zika symptoms. so far there have been more than 2,500 cases reported in the u.s. and another 9,000 in u.s. territories. mylan says it will offer a generic version of its epipen allergy treatment for half the price. it is the latest move for the company following the outcry over the drug's rising cost. meg terrell has more. >> reporter: when the price of mylan's epipen skyrocketed more than five fold in a decade, many called the lack of competition a main driver. today a generic competitor emerged, but it's made by mylan itself. the company announced it's introducing a so-called authorized generic version of the epipen. it's an identical product at half the price. it's not unusual for drug companies to introduce their own generics when they anticipate

competition to a brand name drug. but what's unique in this situation is that there is no generic competitor. israelly drug maker testifia was rejected earlier this year. analysts say this move may have been driven more by political pressure on mylan than financial decisions. the company's initial response last week offering co-pay assistance to patients but not lowering the price didn't satisfy critics. investors of mylan hope this step may take some of the pressure off the company by lowering costs for consumers. >> i think this is a clever move in the part of mylan but it is a move that's going to provide a lot of assistance to some consumers, particularly those paying the full list price to those underinsured. >> reporter: but the impact of the move isn't yet clear. while some estimate it could cut epipen revenue by 25%, american enterprise institutes dr. scott gottlieb said it's possible the generic epipen will actually benefit milan. for one, it could draw more

revenue. mylan says after discounts and fees taken by pharmacy benefits managers and distributors, it brings in about $274 on every two-pack of branded epipen off a list price of more than $600. what analysts want to know now is, how much of the $300 generic list price will mylan keep? the company declined to comment but it may also be helped in other ways. >> the way this is going to benefit mylan in the long run, it's probably going to allow them to lock in more market share, and it could take some pressure off the fda approved generic drug. >> reporter: where mylan may be hurt is in its obtain to continue further raise the price of epipens. but if the government scrutiny is any indication, that wasn't likely to happen anyway. today saw yet another congressional inquiry, the house oversight committee sent a letter to heather bresch, asking for more information on epipen price increases. for "nightly business report, i' meg terrell. come up, a golf legend's drive to help underprivileged kids around the wo

a federal appeals court has thrown out a government lawsuit against at&t, accusing the telecom company of failing to inform customers that they're unlimited data plans could have slower internet speeds if certain levels were reached. that practice is known as throttling. the federal trade commission sued at&t in 2014, saying throttling was deceptive. the company could still face a fine from the federal communications commission. >> meantime, at&t announcing a big deal with hbo, and it's another example of how traditional television is changing. julia boorstin takes a look.

>> reporter: when at&t launches its upcoming directv now streaming service, consumers will be able to get live hbo and espn and other channels on their phones at a fraction of the price of a traditional tv bundle. directv service scheduled to launch in the fourth quarter will have over 100 channels and will work as an app with no set top box or long-term commitment required. the com hasn't announced the cost, but a source says it will be priced in the same range as hulu's upcoming streaming service, expected to start at around $35 a month. time warner's hbo is directv now's second big content deal, earlier this month, announcing the inclusion of all of disney's major networks. >> it's always important to have anchor content and present something that's very consumer-friendly that e consumer finds great value in, so having high-profile content like hbo which obviously has home to all these hits and sports is a really big thing for

directv. >> r at&t could bundle directv now with its mobile service to tap into demand, particularly from cord-cutters among it's 130 million wireless customers. the offering will accelerate the subscriber growth. disney ceo bob iger saying his company will earn as much from directv's service as it did from from from a additional packages. >> there is no difference if a customer decides to disconnect or cancel their current service and migrate over into directv's case to the over the top service, which is primarily an internet-provided service than there is no disadvantage to us. >> reporter: when directv now launches, it will prove new competition for the higher-cost traditiol cable bundles, as well as for older-cost skinny packages. >> i think it will compete with dish's sling it tv on the other end and comcast on the upper end

and to some extent, hulu, netflix and some of the other over the top services you're seeing. perhaps even something like a showtime that's a little more niche. >> rep it seems they are excited to have them included in the packages, to earn money from consumers on whatever platform they're watching. julia boorstin in los angeles. walking away from the takeover of hershey's. the maker of oreo cookies has ended talks with hershey's regarding a potential acquisition, adding it was disappointed with the outcome. hershey's rejected the $23 billion bid back in june. mond lease was down to 3304 and rose following news but the really reaction was at hershey's, which saw its shares plunge in the extended session after finishing the regular day up margin antito 1167.

valiant find itself in yet another legal battle, sued today by people who bought its medications, alleging they were overcharged because of the company's ties to the troubled mail-order pharmacy, philador. the plaintiffs are seeking con tensetory and triple damages. shares fell nearly 2% to $30.25. american airlines said its president, j. scott kirby, is stepping down to join united continental in the same capacity. american's chief operating officer, robert icum will take over as president. shares up 8 cents to 46.95. shares of american fell to 36.17. citing rising competition and concerns, action i don't know capital management gave netflix a sell rating at a price target of $80. the firm also said diminishing pricing power and uptick in content costs will be a headwind for netflix, potentially

impacting subscriber growth. shares down just a fraction to 97.30. building materials company usg corporation will sell its product distribution business to abc supply for more than $6.5 million. that deal will allow usg to trim debt and shift its focus to manufacturing. the company also said it will consider offering dividend payments once again. shares rose more than 6.5% to 29.93. and after a three-year long investigation, the european commission is expected to rule tomorrow that apple received illegal state aid from ireland. that's according to multiple reports. if the tech giant's tax arrangements with that country are found to be illegal, apple could face a hefty tax penalty. shares were down 12 cents to 6 golf made its first appearance in the recently cdc olympics for the first time in more than a sen decree. and now golf legend hopes to use

that renewed excitement to benefit children's charities around the world. dom chu has more from new york. >> reporter: the summer may be drawing to a close, but that doesn't mean the game of golf is showing any signs of slowing do. with the olympics just barely in the rear-view mirror, some of the best players in the world are gathering just north of new york city in this year's barronburg gary player invitational. th event hosted by gary player, and benefits charities around the world geared toward the education of underprivileged youth. through his foundation's golf and charity events, he's raised $62 million to date, and has a goal of reaching $100 million by the year 2025. >> if i was running the pga, i would insist or ask my players, two players from every state to go along twice a year to a school of your choice, and talk to the kids and show these kids

what great efforts these golfers are. >> reporte they are hoping to raise more funds for worthy causes and with golf taking the world stage at this year's olympic games in rio, some of the greatest players in the history of t game are calling olympic golf a huge success. >> at first, i wasn't very much of in favor of the golf in the olympics. what changed my mind is the number of people who came out and watched it there in rio. they only have 20,000 golfers in rio and they had 15,000 people come out and watch golf in rio in the olympics. so if that's any indication of what golf in the olympics has done for the inspiration of people to at least follow golf, you know, i think it's a very big plus. >> reporter: now the attention turns to whether golf can keep up the momentum. we've got the ryder cup coming up this fall, which happens every two years, and the best american golfers versus the best european golfers and it's all about bringing more people to the game, especially the female golfers. >> i'm such a big fan of the ladies' golf. i cannot tell you. watching them play in the

olympics, i was astounded at how well they played. >> reporter: the bottom line is that the game needs more golfers hitting drives and sinking putts, regardless of skill level and the hope is that as the world of golf grows, so will the funds for charities around the world. for "nightly business report," i'm dominic chu, bedford hills, new york. next month marks the 50th anniversary of "star trek" but some are pushing the boundaries of the final frontier. that's coming up. traffic deaths in the u.s. rose more than 7% last year, the biggest one-year increase in half a century. the national highway traffic 35,000 people died on ays more roadways nationwide in 2015, and

that job growth and low gas prices have contributed to more drivers on the road. new rules by the faa for the use of commercial drones go into if he could today. the new rules make it easier for companies to use small drones, but there are plenty of restrictions. witht a waiver from the government, the vehicles have to weigh less than 55 pounds, fly no higher than 400 feet or faster than 100 miles per hour and can only be operated during the day. the new rules could generate more than $82 billion for the economy and create more than 100,000 jobs over the next decade. six people are back from mars. well, sort. their year-long simulation of life on mars is over. the crew members are part of nasa's fourth hawaii space exploration analog and simulation, better known as high seas. they spent the past year living on the rugged slope of hawaii's man alowa volume containa, the

longest-ever nasa mission to understand how a year-long deep space mission could affect astronauts. a finally tonight, space is garnering a lot of interest from billionaires trying to push the boundaries of exploration. space upstarts are developing new technologies at warp speed and doing it cheaper than ever. so all week, we're looking at the people and companies driving "mission space." today jane wells is in space port america, new mexico. >> reporter: in the middle of nowhere, new mexico, is a $220 million bet that the commercial space age will be profitable. >> this place is space port america, new mexico, planet earth and our zip code is 876543210. >> r spa port america is a vast 27-square-mile state taxpayer-pounded facility which has been operated for three years and done over two dozen

launches but still waiting for its biggest customers to lift off. this is where richard branson wants to launch tourists to the edge of space for virgin ga lackic, something he thought would happen by 2009 but it hasn't and a fatal test crash in california in 2014 has pushed everything back. spacex has also moved in but its launch pad is quiet. >> virgin has not done a launch or spacex. neither has gotten to the point yet. >> reporter: too soon? >> i don't think we were too soon, because we have done 28 vertical launches so far. >> reporter: yet in the last year, there has been remarkable positive momentum, elon musk's spacex has experienced a stunning record of successes, especially in recovering boosters which the company considers key to bringing down the cost of space. the space port is operating a de deficit but hopes to be cash flow positive in two years. it illustrates how difficult it has been to deliver on the promise of space travel.

it's been a case of two launches forward, one crash back. jeff bezos has had similar success in a series of tests in texas. musk, bezos, branson and others with deep pockets are patient and well-funded. and for the space port sprouting up in training, hoping to provide the necessary infrastructure, patience will also be . for "nightly business report," jane wells, space port america, new mexico. >> that's "nightly business " for tonight. we want to remind you, this is the time of year your public television stations seeks your support. thank you. we'll see

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