>> we're certain to see triple digit oil prices again and of course geopolitical risk, weather, winter all of that conspiring at the moment to bring prices higher. >> susie: higher as in $100 a barrel. oil prices inch closer toward triple digits. why prices are rising when demand is falling. and stocks surge after italy and greece move closer to new governments and getting their financial problems under control. it's "nightly business report" for veterans day, november 11. this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by:

this program is made possible this program is made ssible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt >> susie: good evening, everyone.. oil prices are creeping up toward $100 a barrel. this is the first time since summer, tom, that prices have spiked this high. >> tom: just a few weeks ago, susie, oil was in the $70 range. but with supplies declining, prices are going up. in new york trading, december

crude futures jumped $1.21 today closing at $98.99. they climbed as high at $99 earlier in the session. >> susie: rising oil prices means rising prices at the gas pump. jeannie yurman looks at what's behind these price moves. >> reporter: forecasts for world oil demand are coming down and yet the price of oil remains relatively high near $100 a barrel. so where's the disconnect? analysts say it's a classic case of supply and demand. in this case, supply is tight. half a dozen countries have experienced supply disruptions in the past year and their output is still below normal, knocking a million barrels a day out of production. oil trader ray carbone says the mood in the trading pits is bullish. >> while global demand forecasts may be going down the oil market is fundamentally tight. we have some dwindling supplies especially in the north seas and we have potential demand there in the marketplace.

>> reporter: and more countries, like china, are consuming oil adding to price pressures. since the lows in october, light sweet crude has soared 27.5% from $75.87 to close just under $99 in friday's session. some experts, however, believe psychology and speculation are playing the larger role in driving up crude. they note that oil traded around $140 a barrel during the financial crisis and there was no shortage in supplies. >> obviously the people who are making bets up or down are basing this on fears and expectation and concerns. so if they bet that there will be some disruptions in the middle east or west africa they make the bet that that will impact psychology at least if not the physical supply. >> reporter: either way, high oil prices takes a big bite out of consumer spending in the form of heating costs and higher gas prices. economist estimate that every 50-cent increase in pump prices

takes $50 a month out of the consumer's wallet. or, a $70 billion hit to the economy just before the holidays when retailers need customers to spend. oil analysts do not expect crude to back down anytime soon. many expect it to hover near the hundred dollar mark for the next several months. americans, especially people in the east may catch a break this winter at least on heating oil costs. n.o.a.a., the national oceanic atmospheric administration predicts a 50/50 chance of above average temperatures. and the farmer's almanac sees an even greater chance of a warmer than usual winter. jeanne yurman, "nightly business report," new york. >> tom: as oil prices move close to $100 a barrel, it will still be several more years before energy from canadian oil sands may be piped into the u.s. the state department this week delayed construction of the keystone x-l pipeline as it reviews its route through an environmentally sensitive area in nebraska.

andrew schneider reports from our bureau at houston p.b.s. >> its proposed keystone x-l pipeline would be used to transport crude oil 1700 miles from canadaa all-- alberta tar sands to the gulf coast of texas. at peak capacity the pipeline would transport more than 800,000 barrels per day. trans-canada the pipeline's builder, estimates the construction of the pipeline alone would create more than 20,000 manufacturing and construction jobs, and inject $20 billion in new spending into the u.s. economy. supporters contend the steady supply of crude oil would also be a boon to u.s. energy security. environmental groups argue it carries a high risk of water pollution. they note that trans-canada's keystone 1 pipeline has already spilled more than a dozen times. project opponents also say that refining tar sand was generate more air pollution than conventional oil, producing larger volumes of night genocide and sulfur dioxide. if approved by year end the

pipeline was expected to go into operation by early 2013. the latest delay could push back that date by at least a year. >> andrew joins us now from houston. andrew, you mentioned 209,000 jobs that could be in the pipeline-- the 20,000 jobs that could be in the pipeline what does it mean for the jobs now that the pipeline is on hold. are the jobs on hold? >> well, what it means is that at least in the houston area things will continue to go on as they have been. the main concern here was in terms of adding new jobs. >> tom: what about the picture of energy security. this was seen as a more secure source of oil and energy for the united states. again works this pipeline, without this secure source what does it mean for u.s. energy supplies? >> well, it means that we continue to be dependent upon the variety of potentially more volatile sources. over the past several years hugo chavez in venezuela has occasionally threatened to cut off supplies to the u.s.

that hasn't happened yet but there's still concerns that he might at some point in the future. we still get a considerable amount of oil from mexico but their reserves are starting to slow down in production. and of course we have seen upsets in or disruptions in supply over the past year just based on what has been going on in the middle east and north africa. >> tom: this is a different type of oil obviously coming from canada down to refinery row where you are at. is the industry ready, would it be ready to refine this oil in3w to gasoline and other products? >> well, they certainly claim they are. mean their main concern at this point, again, is to have a more stable supply. they don't seem quite as concerned about the quality of the oil, just making sure that they get it on as regular a basis as possible. >> tom: so if this canadian oil sands energy doesn't come to the u.s., where does it g who is the buyer?

>> well, potentially china. over the last several years they have been doing as much as they possibly can in order to lock up their own supplies of dependable, not only oil but any other number of commodities. and they have expressed an interest in canadian crude. so possibly this could wind up going overseas. oil is a fungible commodity and just because it doesn't go directly to u.s., it could wind up going somewhere else in the world market. >> tom: andrew, we appreciate the insight, thanks for sharing it with us. andrew schneider with us from houston 3 pbs. >> susie: here on wall street, stocks ended a wild week on a strong note. investors bought up stocks thanks to progress in europe's financial situation. also boosting confidence: news that italy approved some critical economic reforms. that brought down italian bond yields. earlier in the week, they hit their highest level since the euro was introduced in 1999. today's rally pushed the major stock averages into the black for the year:

the dow surged nearly 260 points, the nasdaq added 53 and the s&p 500 up 24. as for volume, lighter on the big board with 895 million shares trading hands, 1.6 billion shares on the nasdaq. despite this week's wild swings, the dow finished the week up 170 points or 1%. the nasdaq was slightly lower for the week: off a fraction. the s&p 500 rose more than ten points, a gain of less than 1%. still ahead, market monitor eugene peroni says don't be fooled by the day-to-day volatility, the market is improving gradually. >> tom: bankrupt trading company m.f. global fired its entire workforce today. more than 1,000 people were left jobless. the move is part of the company's liquidation. up to 200 employees will be re- hired to assist with the wind- down process. federal regulators and other authorities are investigating $633 million reported to be missing from its clients' accounts.

>> susie: this is the time of year that high school seniors across the country are applying for college. but they may be in the dark about the true cost of their education and how much they will have to pay back later. students and consumer advocates say colleges are not doing enough to help them understand the real price of a higher education. sylvia hall reports. >> reporter: for most college hopefuls, whether they've been accepted to a school is very clear. what's not always as clear is how to pay for it. samantha catchot, a student at the university of mobile, says her education is costing her much more than she expected. >> they don't tell you how much school's going to cost when you start. so i'd tell people to do your research because it's a lot more expensive than you think. >> reporter: colleges award financial aid by sending each student a letter that usually estimates the total cost of

attendance. it also lists that student's financial aid options including scholarships grants and student loans. but experts say the letters aren't always as clear-cut as they seem. >> the financial aid is confusing, inaccurate, difficult to compare, and that means that the families are being asked to choose among several colleges based on information that isn't accurate, isn't comparable, and may actually change by the time they enroll. >> reporter: financial aid expert mark kantrowitz says some of the letters use unfamiliar acronyms. look at this one: four different student loans are listed, but only one uses the word "loan." this one mentions "alternative financing" but doesn't say what that means. >> the information they get from schools sometimes, you need a magnifying glass and a dictionary and sometimes a financial advisor and a laywer to really figure it all out. >> reporter: the consumer financial protection bureau and the department of education are crafting a new way to show

students how much they'll pay for college. it would list loans and scholarships separately and estimate a student's monthly loan payments after graduation. >> we need to make sure that people know what they're getting into before they sign up for mountains of debt. >> reporter: justin draeger advocates for financial aid administrators and says the draft is a good start. but, he says regulators should be careful about what disclosures they require of schools. he says his experience has shown that disclosing more information about financial aid could make a complicated process even more confusing. >> what we need to do now is focus in on the key elements of what should be disclosed to each student and parent as they try to decide what's the right institution for them. and then not inhibit schools from experimenting with innovative ways of delivering that information to students. >> reporter: catchot says if she had more information, she may have done things differently. >> if i would have seen that in the beginning, i would have worked a lot harder to find other funding than student loans. >> reporter: as this generation of students graduates from college, they'rwalking away with nearly a trillion dollars in total student loan debt.

you can hear their frustration at occupy wall street protests across the country. while many people say they wouldn't give back their college degrees, they would liked to have known the cost before they started. sylvia hall, "nightly business report," washington. >> susie: viacom, the parent company of mtv and nickelodeon is leaving the big board and moving its stock listing to the nasdaq. the change is effective december first. viacom's class a shares will trade under the symbol v.i.a. class-b shares will be under v.i.a.b. viacom is the first nyse company to move to nasdaq this year. 11 firms have left the nasdaq to move here. >> susie: spec of the number 11, 11-11-11 was a lucky day on wall street. i nice robust rally to end friday. >> tom: you called it awhile week when doing the market recap. it certainly was and it looked like we could end the week really on a down note, especially earlier in the week.

but nice buying two sessions in a row, we wind up on this friday evening. so let's roll with tonight's market focus. >> tom: a veteran's day rally for stocks with the bond market closed for the holiday. a sense of stabilization developing in europe helped improve the appetite for stocks. the s&p 500 saw a nice bounce today, jumping almost 2%. here are the past 30 sessions. the index has pushed up close to the high off the october rally. leading the market today: consumer stocks. the consumer discretionary sector gained 2.5% followed by the economically sensitive sectors, industrials and materials up more than 2% each. last night's earnings from disney fueled the consumer sector. disney led the dow industrials as well gaining almost 6%. volume more than doubled with the stock closing at its highest price since its august sell-off. stronger pricing on advertising

and better business at its movie studio helped disney's earnings last quarter. all 30 dow stocks were higher. the second best was caterpillar in the industrial sector. cat jumped 4.25%, bringing it back to its october higher. cat is bringing some jobs to north america from japan. it hasn't decided where it will build a new facility, but will by the end of the year. u.s. stocks took their cue from earnings and europe. with new political leaders in italy and greece, some relief buying took place in european

country exchange traded funds. the italian fund gained 4%. spain rallied 3.5%. and france was up 3.75%. for once, the financial sector was not a leader nor a laggard, but e-trade financial weighed on the sector. shares slid four percent on heavy volume. the online broker had been looking at strategic options, but now says it will continue with its current business plan. with the prospects of a sale diminished, the share price did too. losing almost 3 quarters shareholders were surprised and dissaspointed

>> copper rebrowning nicely with some selling. copper almost 3% rally today. silver added better than almost 2%. gold did hit just shy of 1800 an ounce during the session it closed at 1788, still that's up better than 1.5% on the session. and that is tonight's market focus.

>> susie: e.m.i. group-- the home of the beatles, coldplay and katy perry has been split in two parts, bringing in more than $4 billion for citigroup. the recording division has been sold to vivendi's universal music group for about $2 billion. sony is buying the publishing division in charge of song writing copyrights for another $2 billion. the agreements still need regulatory approval in both the u.s. and europe. >> susie: let's take a look at what's coming up next week: our friday market monitor is erik ristuben, chief investment officer of client strategies at russell investments. on the economic calendar: the october reports on producer prices, consumer prices and housing starts are released. and a flurry of retailers report quarterly earnings: j.c. penney, home depot, lowes, target and wal-mart. auto-safety regulators are scrutinizing the safety of lithium-ion batteries that power plug-in electric vehicles. the national highway traffic safety administration says the

investigation was sparked after a chevy volt caught fire weeks after a crash test. the agency said the test damaged the vehicle's battery. general motors blames the fire on a lack of safety protocols. >> tom: video game fans answered the call of duty in record numbers this week. "call of duty: modern warfare three" is the fastest selling video game of all time. $400 million in sales in its first 24 hours in stores. that's more than six million units. it's the second big boost for the sluggish video game market. a competing shooter game from electronic arts called "battlefield 3" sold five million units in its first week in stores last month.

the market has now regained much of what it lost earlier this month over worries about europe and the u.s. economies. that's why tonight's market monitor calls it a resilient stock market. eugene peroni is portfolio manager at advisors asset management. he's with us from philadelphia. >> thanks, tom, nice to be back here. >> tom: so resilient this market is. but is it sustainable? is the buying sustainable through the end of the year into 2012? >> i think that it is i mean it's not to say that we're to the have mstly told by the

improving behavior and structure technically of so many individual stocks representing the leadership. >> tom: i want to ask you about the technicals in a secondment but fundamentally we're at the end of the another earnings quarter and we're doing the outlook, of course, not fourth quarter and some of those earnings growth estimates are coming down in the fourth quarter for the fundamentals. does that concern you? >> not greatly. i think the most important that the stock market is how do the earnings compare to street expectations. because the market is always anticipates or wants to anticipate when it's in its best form. so even though the earnings forecast might be coming down, if earnings actually exceed what wall street is expecting then i think that is positive for the outlook. >> tom: it is a game of expectations played every 90 days certainly. you mentioned technicals. we want to look at a 12 month chart of the do you industrials which has been-- dow industrials. with the move we have seen

in the past couple of sessions we are close to that 200-day moving average. why is that an important space to watch? >> well for one thing it indicates that the stock market has been able to not only regain its compose heuer but to regain levels where it was in very early august before the big decline where and when the focus was on greece. now of course on italy. so for the market to have, you know, ceainly been faced with all the challenges, mostly from europe and to have done this well, i think speaks volumes about what the potential outlook can be on the upside. >> tom: generally speaking dow buy the market above 200-day moving average, sell it if it drops below it? >> no, that's not the way we operate. we don't operate with trend lines. we do look at individual charts for each stock that we follow. but we also look at money flow, we look at relative strength which is based on concentrations of attractive individual stocks of a particular sector. >> paul: with that-- . >> tom: with that in mind you brought a menu beginning with alliance data systems, big strong chart, trending nicely upward.

this is a marketing and works with customer loyalty programs. over 100, what dow expect out of ads? any stock that months. so we like this stock. we like the sector as well. >> tom: car bo ceramics is in the energy space, crr the ticker makes a product using the fracturing project which saul the rage in oil exploration and production. again, nice sharp rally over the course of the past six weeks or so. what makes you like this bun? >> well, again, the sector is very attractive. this one has shown very good relative behavior to the sector. but i would also point out that this is a time to really be looking at stocks that have been trending higher, not ones that are still trying to get off the bottom so this represent its leadership in a strong sector energy. >> you're trying to put new money to work where old money has already gone at this point. heico with airplane avionics

is one. that is right close to its new 52-week high and you're not scared of buying the new high, are you? >> at a time when there's so much discussion about the possibility of big budget cuts for defense, some saying it could be a trillion dollars in coming years, the aerospace defense looks good especially the mid cap players heico being one of those components. >> last time we saw you was in the springtime, you had three picks back then, down about 150%, amazon.com up better than 7%. and then a pharma company edwards life sciences down 20%. dow lie any of this trio? >> i do. and i would say that each of them represent holes here. given my optimistic outlook, my positive outlook for the stock market, i think that these will be participants on the upside. >> tom: he's an optimist. how about disclosures, do you or the fund have position in these? >> these are held in the investment trust in separately managed accounts that i manage but i don't hold them individually. but i do hold them

through-- investment trust. >> tom: it's great to hear your optimism again tonight, eugene peroni, our friday market mondayer with advisors asset manager. >> susie: and finally, on this lucky 11-11-11, many people are betting on a dollar and a dream. ticket buyers put all their ones in a row and lottery ticket sales exploded this week. if you haven't purchased a ticket yet, you're probably out of luck. lotteries cap sales of certain number combinations. it's also a busy day to say i do with wedding chapels in las vegas preparing for what could be record setting day. tom, numerologists say the number 11 is one of insight and illumination. >> susie: i hope you had an insightful and illuminating day. >> tom: certainly the program was, you as well. that is nightly business report for this friday, the 11th day on the 11th month, november 11th. time's tom hudson. happy veteran's weekend. good night, have a good weekend. few, sus . >> susie: good night. have a great weekend. hope to see all of you again

monday night "nightly business report" is made possible by: this program was made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org