grab the headlines, another triple digit gain today but the

real action lately has been in the bond market, and the question now is what do you do if treasuries are a big part of your portfolio? >> they are back, home repossessions on the rise but if the housing market is recovering, why are more people being forced out? >> you have to pay $25 to see the next iron man, and you're probably only going to have to pay $7 to see lincoln. >> steven spielberg and george lucas, two men who know a thing or two about the summer blockbuster say big changes are coming to hollywood and as he indicated that will cost you. that and more for nightly business report for thursday, june 13th. a good day for stocks thanks to good data about the u.s. economy. they shrugged off news about a selloff in japan's stock market and focused on upbeat developments here in the u.s. retail sales rose 6/10ths of a

%. fewer americans filed applications for unemployment benefits, it fell by 12,000 to a new five-year and news inspired stock buying and we'll have more on that in just a moment. by the closing bell the dow jumped almost 200 points ending above the crucial level and the snp rose by nearly 24 points. even bonds rallied today, despite disappointing demand for the government auction of u.s. treasury, yield on the ten-year note fell to 2.15% on hopes that the federal research will continue stimulating the economy by buying bonds. >> so what is going on with bonds? sure they did rally today but returns on bonds and etfs fell in may between 2 to 3% for most of them and some tumbled by as much as 8%.

robert, good to have you with us, an awful lot of bond fund and etf investors are very surprised, they don't know what to do. this is the kind of market they haven't seen in a long time. what do you tell them? >> volatility has certainly picked up in the markets. since the beginning of may we had a 50 or 60 basis point sell off in ten-year rates. as far as we're concerned, that's not necessarily as a result of moderate economic growth but also jittierness on investors thinked fed tapering will not go as smoothly. right now we peaked at about 220. we have seen a rally right now, but certainly, we've reset to a higher rate level. >> you know, robert, so many people have said that we're in a new period in terms of how we look at bond invest mments vers

stock. in the paper today it said bonds take a beating. the new york time said they think a fed pull back is real and saying treasuries are a ponzi market. a lot of negative news about bonds and yet, investors still are holding on to their bonds. when do you see that big shift going to happen? >> we saw a big shift in may and june with the out flows in the taxable fixed income market and out flows. we didn't see the inflow into equities that would suggest to me that most average investors are getting a little defensive and that's probably warranted here. i mean, i think our forecast for the end of the year is roughly two and a half to 260 on the ten-year so we can see rates rise more.

that would be commencing with a faster paced economic growth and remember that usually seasonally we see a bit of a low here. i imagine the market is repriced but could stabilize until the fourth quarter of this year. ink investors should play the fixed income market defensively here. >> that's what i wanted to lead you to, robert, and you're starting to go there. if you see interest rates at 2.5%, 2.6% at the end of the year what does that translate to with someone in a ten-year duration in their bond with principle loss and how do i take cover? if i want to avoid loss, what should i do? what is the defensive strategy? >> you can see another, you know, talk about principle loss you can see another percent or two of losses on a market value base and certainly, when yields are this low that doesn't make for a good total return so at least within the context of the fixed income market, i think

shortening duration here probably makes sense. when you think about the fact that the market priced an earlier move by the fed second half of 2014, we would probably think of that as a moderately low event. remember, the market is extremely jittery about how the fed may have an exit strategy and had a knock on effect with credit spreads as well. >> we'll hear more from the fed next week. >> thank you. the supreme court today deciding who can own the rights to the fundamental building blocks of life. the decision that human genes isolated outside of the body cannot be pat tenned. bert bertha coombs has more. >> the test is what alerted angelina jolie she had a high

risk of. the supreme court struck it down. they said dna is part of nature and not patent i celigible. they call it a win for invasion. >> it's going to allow smaller companies and sicientists to develop new tests without fear of reprize l from mononotary public lee and -- monopoly. >> they said we believe the court appropriately upheld our claims on cdna and ensure strong property protection for a test. a test which represents 75% of

myriad'sish shups. play ton to welcome a one and two test this year. >> there will be other lab tomorrowries that will offer tests, and i think all the lab tomorrs will test a much larger number of genes that can also confir inherited risk of breast and ovarian cancer. >> bill quark says the test set as high bar. >> you want to know what those mutations mean. having that database, it will be difficult to argue that a $800 test will be equivalent. >> the door is open for other genetics testing and advocates say ultimately that's a big win for patients.

we begin tonight's market focus with a 1.5 billion-dollar deal. gwinnett is buying bilo to make it the fourth largest owner reaching a third of households. this is another step in the company's transformation. they really sored on the news. they closed to $26.60 and belo rallied to $13.77. well dupont says the profit will fall more than expected setting a wet spring in north america and europe that hit the agriculturing business. they ended a fraction at 53.88. elih lily out with positive news for arthritis sufferers. the experimental drug was effective in reducing painful symptoms associated with rule

to -- art r arthritis and cody failed to impress on the new york stock exchange today. the perfume maker which includes calvin kline, chole and more, concerns are too dependent on u.s. and european markets may have capped investor enthusiasm. shares finished to $17.36. rising home prices are a good thing for everyone, right? not always, as values are going higher banks are working through late payments faster, they repossess and turn their losses faster around. >> hi, michelle, how are you? >> good. >> michelle mcnair is not behind on her mortgage yet but at the end of her financial rope. >> i'm hoping to get my mortgage

mou modified, the interest rate to go down and principle balance to go down and playing with numbers myself, if that could happen it would be in a more affordable state for me. >> otherwise, she says she will default on the loan and possibly lose her maryland home. but michelle's timing isn't great. new foreclosure filings in maryland are up 200% from a year ago after years of delays from new state foreclosure laws. >> the surge is really a result of banks getting their systems back into place after years of having a moratorium on foreclosures. >> nationally banks had been modifying loans more aggressively under a legal settlement last year but they have fulfilled commitments and ramping up foreclosure and home priepss are rising faster than expected up over 12% from a year ago, due to low supplies of homes for sale. >> that gives the banks more

incentive to go ahead and foreclose because they can turn around, sell them quickly and for a price that's higher than what they would have been able to sell a year ago. >> overall foreclosure activity is down from a year ago, bank repossessi repossession, it's dramatic. supply situation, we have in the market now but it will also ease the big price gain as it rises to meet demand. >> for more on bank repossessions go to our website nbr.com. still to come, why travelers may be in for a summer of discontent at the airport and first a look at the does today.

ebay's pal pay services wants people to install the online payment system instead and making it worth the while. marry thompson has more. >> that is the sound of money, a sound online payments giant papal wants to quiet, if not silence by lowering the volume of cash payments. >> so ultimately, it's about trying to effect the transaction between the consumer and marchant that's valuable but doesn't require a whole change of how you do business. >> papal's vice president hill ferguson is leading the push

into the brick and mortar world with a new point of sell technology called papal here. it lets marchants of all sizes accept cash, credit and debit payments made by the millions of clients over mobile phones and computers. the challenge to give up something old for new. papal is offering to wave $20,000 in transaction fees for the first 10,000 merchants who convert. ebay isn't alone. square and groupon is also looking to cash in. cash is still popular accounting for half of all transactions in 2010 but that's down from 80% in 1960. they earn a transaction fee for each service. it means revenue. papal here could mean the same for small businesses like a restaurant. cutting time taken to make

change or write a receipt and giving the merchant more time to make another sale. >> my lunch hour customers can place their orders when they are a couple blocks away and come straight to the line and grab it and go and not have to mess with cash in that transaction. that's a big benefit for me as a service operator. >> an added benefit of papal here, it creates a client history of purchases and preferences, cash payments don't giving the merchant a chance to service the client like a king without the cash. i'm marry thompson. >> one day before presidential elections in iran google says the g mail service there is hacked. it had to block a massive fishing campaign that sent company e-mails to tens of thousands of iran customers in what they believe is an attempt to influence the outcome of the election. the u.s. government recently eased up on tough economic sanctions against that country.

they are allowing american companies to sell devices in iran in hopes of empowering citizens to speak out against the government, similar to the arab spring uprising. michelle has more. >> u.s. companies can sell a host of communications products to iran citizens without getting permission, cell phones, modems, satellite dishes, laptops and tablets and software. >> the most impact will be on software updates for phones. iranians complain the sanctions prevented them from updating apps so they were using older and slower versions of fwtwitte and facebook. this will empower the people at a time when the government is trying to stifle their access to one another and outside

information. supporters of iran's movement are skeptical this move will make any difference in giving iranian's any freedom. >> i think the problem in iran is not that people need phones or don't have phones or don't have technology, the problem is that the regime monitors, you know, all their tivities because they control the communications networks and it uses equipment and surveillance to monitor people. >> in 2009, the victory was disputed leading to large protests and violence in the streets of tyran. for nightly business report, i'm michelle cabrera. >> back in the u.s., apple is reportedly considering coming out with a cheaper iphone later this year retailing for $99 along with two other bigger screens. the reason, to combat strong sells of less expensive models and ones with larger screens from rival samsung. apple for now, declined to comment. and new government figures

show that nearly one in four flights were late in april. the department of transportation says 2% of domestic flights were cancelled double the rate from the prior april. the airlines put the blame on furloughs of air traffic controllers and bad weather. here is another headache for travelers, getting through u.s. customs is taking more time. sometimes hours. what's the problem? scott mccartney is tracking it. why is this happening now? >> there is an increase in international travel and no increase at all at -- for customs and border protection officers at airports. so you have a shortage of officers, very long lines, extreme waits, people missing connections and just a big mess. >> scott, in today's wall street journal you describe three-hour waits when people have gotten off ten 17-hour flights from overseas.

they are waiting to go through the line. where are the worst lines and why? >> certainly at peak times, miami is sort of ground zero for this problem. the airport had to take an auditorium and put 1,000 cots in there for people stranded overnight because they missed connections because of the three-hour lines. new york, jfk is bad but we've seen waits double at dallas at different times of the day, an hour average wait in san francisco. so it's all over the country, and, you know, the basic -- in the spring what we saw were waits that really were summer-like but this started last summer with increases and sometimes because cbc, not paying over time for those peak periods this spring and some of it is just the -- they essentially had a freeze on officers for three years and a

lot more travelers. >> and you just raised a point i was going to ask about see quester, you add more staff because the federal government is cutting back on jobs or is this something else? >> no, this certainly started long by sequestration and miami complaining they aren't getting over time, they aren't getting additional officers at peak periods, and that's a real problem. cbt dealt with it by making cuts elsewhere. part of the problem is airlines schedule haves spread out so they have busy periods in the early morning or late at night, so that hurt the peak periods but also cbp said they held back on over time in anticipation of the summer. so they haven't spent the dollars this spring stockpiling for summer and hope that helps. >> i'm assuming this is bad for

u.s. citizens and probably worse for non-u.s. citizens but you described programs that can help you get around or mitigate long lines. what are they and what do they cost, and how do you sign up for them? >> you're exactly right, tyler. there are longer lines for non-u.s. citizens. it hurts visitors to the united states more than u.s. citizens. the best -- really the best government program going is called global entry, it's a trusted traveler program for u.s. citizens. you pay $100. you have to go through a background check, go for an interview with a cbt officer but once you're in the program, you by pass the lines you walk up to a kiosk, answer the question, put your fingerprints on the screen, get a receipt and you're on your way. it's a terrific program and gets you into ts a's precheck program so you get expedited screening at tsa check points, as well.

you can apply online. there are actually long waits for interviews because these long lines have produced a lot of interest in the program. >> sounds good to me. i'm about to sign up. global reentry. thank you so much. >> good to be with you. and coming up on the program, two of the biggest names in hollywood are prode predicting a major script rewrite in the business. we'll hear from steven spielberg and george lucas next. first get a check on commodities, currencies and treasuries. a big victory for the triumph. you may remember the triumph, the ship that broke down in the gulf stranding passengers at sea for several days. it's been cleaned up, fixed up

and back in service setting sail from galveston, texas this morning and carnival says the triumph's first two cruises are already sold out. finally tonight, how much would you pay to go to the movies? julia talked to steven spielberg and george lucas about the future of hollywood and they say you're going to pay a whole lot more. >> steven spielberg and george lucas predict upheaval in the movie business. >> there will be an implosion or melt down. there will be an implosion where three or four, maybe even a half dozen of these mega budgeted movies will go crashing into the ground and change it again. >> steven spielberg compared it with the 2008 stock market crash saying the industry will come back stronger by different. >> eventually there is going to be a price variance for -- you're going to have to pay $25 to see the next iron man, and you're probably only going to

have to pay $7 to see lincoln. i mean, there is going -- that is going to be in the future, as well. >> they will sit in the theaters for a year just like a broadway show does and that's going to be what we call the movie business, but everything else is going to look more like cable television on tvo. what you end up with is fewer theaters, bigger theaters with a lot of nice things going to the movies will cost you 50 bucks, maybe $100. >> like it costs today. >> they predict a shift towards the living room where nearly all content will be available on demand three things like microsoft one there is a live action show based on halo which john says will tap into new technology. >> having the ability to use a controllerer, touch a piece of glass whether your phone or tablet.

those things working together simultaneously will change the tool box. >> with so many new tools they stress the importance of film makers focussing on the story. as for george lucas'st famous stories he says it's at good hands at disney. >> i think they got the right idea beyond what anybody else is trying. they are the only company that brought in smaller, more boutique companies that are focused on a particular thing, and are very good at it. rather than trying to be everything for everybody. >> for nightly business report i'm julia in los angeles. >> would you pay $150 to go to the movies? >> no, i can't imagine and the only movies i go to because i have a 7-year-old are talking animals and certainly, not for those. >> i remember paying a dollar for a movie and when he were shocked when it hit $10 and got to $12. maybe we will adjust to 25 -- >> steven spielberg said it

would take a crashing -- >> stay tuned. that's nightly business report for tonight. thank you for watching i'm susie gharib. >> i'm tyler mathisen, thanks from me as well. log on to nbr.com for more. we'll see you back here tomorrow night.

hello there. welcome to "newsline." it's friday, june 14th. i'm catherine kobayashi in tokyo. intelligence analysts have been working for months to determine whether chemical weapons have been used in the syrian civil war. u.s. president barack obama wanted conclusive proof. now analysts say government forces he