>> this is n.b.r. >> tom: good evening. i'm tom hudson. the 19th time is the charm, european leaders meet for a 19th time, finally agreeing to new measures to help fix the region's debt crisis. >> susie: i'm susie gharib. u.s. markets soar, on word of that deal in europe, the dow jumps 277 points. >> tom: our look at the foodie craze continues, with food trucks. how these mobile restaurants are driving the latest trends in gourmet food. >> susie: that and more tonight on "n.b.r." >> susie: a huge stock market rally today, after european leaders surprised investors with a new plan of big financial reforms. as europeans wrapped up a two- day summit, they called the deal

quote a "breakthrough." the key reforms: a banking union for the euro-zone, and a more liberal bailout fund, to support the region's troubled countries. investors had low expectations from this 19th summit, but the news sparked buying in the u.s. and markets around the world. the dow surged 277 points or a little over 2%, the nasdaq added 85, and the s&p up 33. europeans still have many details to work out. the question now is whether the measures are enough. >> susie: by the end of the year, european leaders hope to have a single banking regulator in place. it's a big change from the current system, where 17 nations watch over their own banks. european leaders also agreed in principal that they will lend directly to banks. that would relieve the pressure on individual governments to come up with billions of dollars to shore up their banks. it's a move that could reduce borrowing costs for spain and other countries with deeply troubled banking systems.

>> they are coming up with a much stronger and more compelling case for a banking authority that will help not just the spanish banks, but the banking sector in all the countries. >> susie: european leaders also took a step back from austerity. they softened calls to slash government spending and set aside $150 billion for stimulus projects like employment programs. analysts are cautiously optimistic that europe is picking up the pace of reform. >> now, there are a lot of details that could blow up, but it's going to be very embarrassing and harmful if the leaders back away. i don't think they will. compromises will be reached. this will get done. >> reporter: still ahead, i'm suzanne pratt in new york. progress in europe yesterday resulted in a hefty rally on wall street today. "nightly business report"

is brought to you by: captioning sponsored by wpbt >> tom: it was a fitting end to a quarter that was dominated by european headlines. the dow posted in best month of the year, the nasdaq, and s&p had their best day for 2012. still, the major averages all lost ground in the second quarter: the dow down 2.5%; the nasdaq fell 5%; and the s&p 500 dropped 3.3%. but can today's optimism last now that there's hope for europe. suzanne pratt reports. >> reporter: european leaders have kicked the can down the road 18 times, holding 18 summits that resulted in little progress. this time, however, investors feel is different, with concrete steps being taken to avoid a

financial meltdown. part of today's bounce was technical in nature, traders reversing bets that the summit would result in more failure. still, veteran floor trader art cashin said there's no question investors were caught off guard by the results of the 19th summit. >> the expectation level for this summit was so low going in that if they left without punching each other, we probably would have had a rally. to have something that was almost concrete turned into a big deal. >> reporter: it also turned into big gains for gold and for oil prices. traders in the energy pits are betting help for europe will remove a major drag on global economic growth. but investors dumped treasuries today, pushing the yield on the ten-year higher. with progress coming across the pond, demand for safe-haven investments decreased. still, many investors are already wondering whether the increases in stocks and

commodities are sustainable. some believe the rallies will hold as long as germany continues to support the eurozone's plans to help its troubled banks. others predict more bumpiness for equity investors in the coming months for three reasons. >> at the very top of my list is the uncertainty from europe. even though they took an important step yesterday, we're going to continue to see more headlines from europe. the second one is the upcoming election and the fiscal cliff. and the third thing is just general uncertainty. >> reporter: the bumpiness could start as early as next week. the holiday will result in low volume. friday's employment report could mean big headlines and big swings. suzanne pratt, "n.b.r.," new york. >> a nasty sell-off. despite that, charles schwab says investors are pretty confident. a new june survey shows 38% of

schwab investors are extremely confident. just 17% have aspects in cash. and 45% said it's a good time to invest in the market. schwab ceo walt bettinger joins us. walt, nice to have you on the program. today was obviously a positive day for investors. but step back and tell us a little bit about the mood of investors these days. >> i certainly will. thank you, susie, and thanks for the invitation. what we're hearing from investors, you can summarize in two themes. the first is a lack of confidence. even though there's a percentage of investors who feel great about the market, the majority of investors look at what the market has done in recent times and are nervous, uncomfortable, and not quite sure as to the steps they should take. the second theme we're hearing from investors is they are tremendously focused on risk management. they want to make sure that the investments that they make protect them from a downside

standpoint. there's just been so much volatility. look at what's going on. we had a great start to 2012, and then a brutal spring, and then i think june was one of the best junes we've had in years. so that volatility has made investors very conscious of how to manage the risk in their portfolio. >> susie: and what is the source of the anxiety? is it some of the economic reports that we've been getting about the u.s. economy that are weaker than expected like the michigan consumer report which shows weakness? is it the problems in europe? what is it that is holding back investors? >> susie, i think it's all around us. it's fiscal uncertainty. it's political uncertainty. it's slowing in china. issues in europe. it's pretty much everywhere an investor looks. now that said, with all of that uncertainty, as you indicated there are 4 out of 10 who feel very kftd. in many cases it's darkest before the dawn for investors.

so they see the uncertainty all around them. they understand it creates opportunity. but we're awash in uncertainty at this point in time for almost every investor. >> we're at the halfway point of the year. how do you expect the markets to move over six months and how do you think investors are going to respond to the market atmosphere? >> well, it's very tough to predict a short term time horizon like the next six months. normally in presidential election years, things tend to slow quite a bit throughout the summer, and into the fall, and then maybe pick up as the election gets near and people begin to prognosticate on who will be the winner in the election. but i think what ourp advice to our clients is, taking that same long term approach. not worrying so much about what's going to happen in the next 30, 6090 days, but building a strategy for the long haul that is consistent

with the level of risk that you, as an investor are comfortable taking. and then tuning out so much of the noise that goes on on a day to day basis and sticking with that strategy. >> susie: really hard to do, but very good advice. walt, thanks so much for coming on the program. walter bettinger, ceo of charles schwab. >> thanks, susie. >> tom: today was the first full day for businesses of all sizes to know for certain they have to plan for the health care reform law. while the supreme court's

clears up some of the unknowns, the effect on costs remains uncertain. alex soto sees all sides of the health care debate. he's c.e.o. of an independent insurance agency, finding health insurance for companies and individuals. he supplies his 65 employees with health coverage, and soto serves on the board of directors of a non-profit children's hospital. we spoke with him at his mmi agency this afternoon.

>> they narrow a little bit, because the economy turns around, and we will be, in fact, my, has shown positive froegt this past year. modest single digit, but for the first time on the income side. the expense side, this year, our renewal, january 1 went up 11%, the year before, 18.5%. so that's going to come down quite a bit more. >> tom: you work with a lot of small businesses. are they looking at serious consideration of not offering health insurance, and just taking it? >> i was with a client who says we're spending close to $10,000 per employee on health insurance. that may be on the higher end, but it's certainly between 6 and $10,000. if the penalty is substantially less, and we simply can't afford to

continue paying it, we may very well consider paying the penalty, and in turn the employees loose. it would be a shame. >> tom: art, what does your experience tell you that the workers will experience in health surance premiums the year after the mandate? >> i suspect that we're going to have an increase. >> will they outstrip inflation by a fact offer of say two or a little bit more, and we're going to have increases. we're going to have increases. it's a pleasure. >> susie: also in washington, two important bills were passed by congress. the first, will keep interest rates on government backed student loans from doubling on sunday. those rates could have climbed to nearly 7%. the senate also approved a $120 dollar highway bill, renewing federal funding for federal

transportation projects for the next two years. the house has already approved the measure and now it goes to president obama for his signature. >> susie: bernie madoff's younger brother peter is finally talking. after three and a half years of silence, the younger madoff admitted today to his role in his brothers crime. peter madoff was the chief compliance officer at the firm. today he told the court he was "deeply ashamed" of his actions. still he insisted that he didn't know about the scheme until his brother told him in december of 2008. peter madoff will serve ten years in prison, and he's agreed

to forfeit $143 billion. >> tom: a big finish to the week, and to the quarter with broad-based stock and commodity buying on the heels of progress in europe in dealing with its growing debt troubles. the s&p 500 was strong from the opening bell, thanks to the news out of europe. the index finished with a flourish, closing on its high of the day. volume jumped at quarter end-- almost 1.1 billion moved on the big board; just under two billion on the nasdaq. thanks to today's rally, the major indices finish the week in the green: the dow industrials finished up 1.9%; the nasdaq gained 1.5% on the week, and the s&p 500 is 2% higher tonight compared to a week ago. all ten major stock sectors found buyers, moving higher, with the biggest gains in growth sectors and those tied to the global economy. technology and industrials sectors gained 3.3% each. the energy sector popped 3.1%.

optimism out of europe also helped push commodities higher, led by a big jump in oil prices. oil shot up 9.4%, settling at $84.96 per barrel. metals were moving up. silver gained a 5.1%, finishing at $27.58 an ounce. and gold seted just above $1,600 an ounce, 3.5%. the market had some bad news to fight back from research in motion. the maker of blackberry mobile devices lost money last quarter for the first time in more than seven years, and it delayed its release of its newest device until after the holiday season. all that sent shares tumbling hard, down 19%. this is its lowest price since 2003. the company continues struggling against the iphone and android- enabled devices. shares have lost three-quarters of their value in the past year.

shares of ford also threatened today's market after the company disclosed steeper than expected losses in europe, asia and south america. shares fell 5%, close to its low last fall. big deals in the brewery business involving the parent company of budweiser. it will take full control of mexican brewer grupo modelo. it's a $20 billion deal with anheuser busch-inbev, getting the maker of corona beer, among other labels. the market likes the deal, bidding anheuser-busch shares up almost 8% to an all-time high. the deal expands what is already the world's largest beer maker. beverage distributor constellation brands has a deal of its own, buying from grupo modelo the rest of a joint venture the two have to import and sell corona and other grupo modelo brands in the u.s. constellation is paying $1.9 billion. constellation jumped big, up 24.4% to a five-year high. up across the board for the five most actively traded exchange

traded funds. the emerging markets fund led the group with a 4.4% increase. and that's tonight's "market focus." >> tom: the first half of the year ended with a bang, and if history is an guide, the second half should see new highs for the year. sam stovall is the chief equity strategist at s&p capital i.q. >> let's talk about the second quarter here. despite today's gain, the s&p 500 is down 3%.

that's unusual considering the strong rally we had in the first quarter, isn't it? >> it's a bit unusual. when you go back to world war ii, typically the second quarter is pretty good. but i decided to go back to 1900 because a lot of the most recent years have reminded investors of the 1930s. and going back more than a hundred years, the second quarter is usually down. so in a sense, what we saw was typically what we normally see. >> tom: using history, what are the odds that the s&p 500 could see new highs before the end of the year? >> history says, but does not guarantee that about 80 plus percent of the time, the market posts its high of the career in the second half, and cent% of thseventy percent of t that's in the fourth quarter. and once the presidential election is over, so is the uncertainty, and investors pile back into stocks. >> tom: there's going to be a lot of politicking in the

third quarter. how could that impact the election? >> sometimes the stock market can be its own voting machine. history again says that since 1900, whenever the market has risen from july 31st through october 31st, the incumbent has been re-elected 80% of the time. whenever the market has fallen in that time frame, the incumbent was replaced 88% of the time. so look to the stock market performances, and you'll get an idea as to whether it's romney or obama. >> tom: vote early and often. back at the end of the first quarter you had a couple of seblgtors to watch including industrials and technology, and consumer discretionary, all moving down across the board in line with the market. i want to get focused on one idea you've got going forward for the third quarter and remains consumer discretionary stock. xly to illustrate this. what makes you confident constuerms are going to spenld

on things they want and not need? >> consumer discretionary cyclical sector going back in history, typically we find that the third quarter since 1900 is the best during an election year, up 5% on average. consumers could continue their spending because of very low interest rates, because of oil prices coming down, and also because these stocks are u.s. centric. so if investors are worried about what's happening overseas they'll stick close to home. >> tom: and you're defensive as l sticking with the staples and things we need. a bit of a hedge sk, this etf is close to a 12 month high. >> when the going gets tough, the tough get going, eating, smoking and drinking. consumer staples do well. high dividend yield, and a defensive characteristic. >> tom: you're not giving up on growth. looking altd xlk, the ticker symbol for the technology etf. is this global play?

>> it's also a weak third quarter play that could represent a nice buying opportunity for investors. the group is trading at a 5% discount to the s&p 500. we see good earnings growth, and an awful lot of new products introduced. >> tom: how about disclosures do you have a position in the fund? >> i do not. >> sam stovall wrapping up the first half and looking forward to the second half. >> susie: as our look at the foodie craze rolls on, we jump on board one of the hottest trends in gourmet food: food trucks. with far lower start-up costs than traditional sit-down restaurants, many chefs are striking out on their own, on wheels. but we're not talking hot dogs and ice cream, instead, think haute cuisine on paper plates. erika miller dishes on what's next for these meals on wheels. >> early in the morning, and time to make the dough. after all the mixing and

kneading is done. the waffle dough gets turn into another kind of dough. seven days a week, 14 hours a day. the truck sells treats around new york city. it took four years, but the business is finally profitable. >> we do a lot of parties and barmitzvahs, and all that stuff. the things you don't see is a significant part of the business. >> mobile food has grown in popularity the past few years. there's an estimated 3 million food strucks in the u.s., and an additional 5 million food carts. >> i think it's delicious. it's the first thing we ate whene got into new york city, and i have no regrets. >> this is great. it's like combining the best part of dinner and breakfast. you get coleslaw and a waffle, it's fantastic. >> food trucks are more than a lucrative business. they're also a way to try out a food concept before opening a bricks and mortar loc. >> before opening the seattle diner, henderson honed his

menu to a fleet of food trucks. >> you're interacting with the guests. it's right there. we hand them a burger and frys and we see their reaction right there. >> that strategy also gave him time to build up a fan base and establish his reputation as a chef. >> we had close to 800 fans on facebook, and another ax*ilt,00 8,000 on twitter. and we were able to open down the line. >> opening the first retail location this fall. >> the waffles -- and then overhere on this side, you put the topings on the waffles, strawberries, ba nanas, whip cream, chocolate. and over here, the ice cream. >> and even though a store has higher operating costs it goes through. >> i think it's fantastic for people to come to the store and really relax in the environment without the craziness of the streets of new york. >> and they will open in other

locations around the nation in the next few years. erika miller, nbr, new york. >> tom: next week on the program. the foodie craze continues, how savyier customers are changing the restaurant business. several retailers report their june sales figures next week. and it's the report wall street's waiting for, the june employment numbers are out friday. we'll find out how many jobs were added to u.s. payrolls this month. >> susie: it doesn't matter what business you're in, it's always important to take good care of your customers. this week lou's been thinking about the difference between customer service and hospitality. here's author and educator lou heckler. >> i'd like to think i have a little in common with danny meyer. meyer is the operator of a number of wildly successful restaurantsuch as gramercy tavern and shake shack. in his book, "setting the table," he writes that he focuses not on traditional customer service, but rather on hospitality. i love the distinction. he says customer service is a one-way proposition; hospitality is always two-way.

i learn what your needs are, and then i go about trying to match my service with your needs. when i was asked by my colleagues to coach others, i wondered how to go about it? i have worked from a home office since 1980. if people came there, would that seem professional? as it turns out, the fact that my wife and i host clients in our home is now one of the biggest reasons people come. hosting is somewhat of a lost art. in your businesses, do your customers feel hosted? do the people who work for you? maybe its time to re-focus your attention from customer service and put more emphasis on hospitality. i'm lou heckler. >> tom: that's it for the broadcast on friday night. >> susie: good night tom. have a great weekend everyone. we'll see you online at: www.nbr.com and back here on monday. "nightly business report" is brought to you by:

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