just how nervous is the stock market? put the words bernanke and taper in an article, a 191 point dow

gain turns into a white knuckle ride for investors. price of your prescriptions. the supreme court hands down a ruling on generic drugs that touches the medicine cabinets and wallets of most americans. cashing out, texas tells older americans they can sell their life insurance policies to pay for long term care. do the risks outweigh the rewards? all that tonight on nightly business record for monday june 17. confusion and volatility in the stock market today. and once again it has to do with the federal reserve. and what policy makers will decide to do when they meet tomorrow in washington. stocks opened sharply higher on hopes that ben bernanke would reassure investors about the fed's plans for scaling back on economic stimulus. by midday, things seemingly changed on a report from robin harding. he's the economic's editor. he suggested the fed would start

tapering its bond purchases at this week's meeting. stocks sold off. wiping out triple digit gains. later, tweets from that same writer confused and encouraged investors. glad people are reading my fed preview. i've been in the september taper camp for a while, and i'd stick with that. adding, people need to chill out. the fed does not leak anything to any journalist to steer markets. especially during blackouts. and so markets reverse course as investors turn confidence and snapped up shares. by the close, the dow rose 109 points. the nasdaq was up 128. the s&p added 12. it's been called pay for delay in some of the nations pharmaceutical giants have been doing it for years, costing consumers millions. a ruling today may change the way drug makers do business. hampton pearson has our story. >> the supreme court says profit sharing settlements where brand

name drug manufacturers pay their competitors to delay the availability of cheaper generic drugs can be settled in federal court. the ftc claims the settlements cost son assumers $3.5 billion a year in the form of higher drug prices. a statement reads, the supreme court's decision is a significant victory for american consumers, taxpayers and free markets. and from congressman henry waxman, the architect of the law paving the way for these settlements. i will continue to vigilantly watch to ensure the patent settlements are procompetitive and proconsumer in the future. >> the high court case focuses on an ftc challenge to a multimillion dollar deal made by the pharmaceutical firm to extend a patent for its popular drug androgel, which raises testosterone levels in men. the court's ruling places an

additional and unnecessary administrative burden on our industry. legal experts say today's ruling raises the bar for both sides. >> the supreme court certainly didn't put out a road map that's showing that the ftc is going to win all these cases. if there's arguments, well, is this payment so large that some inference should be drawn from it? what's large? they have to win on those kinds of issues. >> the supreme court hoped that these agreements aren't necessarily unlawful. but it's better than being out of court entirely. >> now, thanks to the supreme court, the federal trade commission has more ammunition to challenge so-called pay for delay deals on a case by case basis. for nightly business report, i'm hampton pearson in washington. president obama joined g 8 he leaders from the world's largest industrialized nations at the start of a two-day sum t summit. steve has more from northern

ireland on the kickoff of the meeting today. >> reporter: leaders representing half of the $72 trillion global economy are meeting to discuss a whole array of issues. that set by the agenda of david cameron. key nations such as the united states, russia and japan are all here to discuss trade issues, there are great hopes of a trade deal between europe and the united states that could be worth up to $100 billion in the united states. we're going to be talking about tax avoidance issues which could have ramifications for companies such as amazon and google. those companies say we are abiding by the laws of those countries. elsewhere the whole syrian issue overriding a lot of talks. there's a big dispute between president putin of russia and

the rest of the g8 nations about what to do. president obama said to me earlier today, the talks had been excellent between himself and russia. there appears to be an opinion about how to resolve this crisis. for nightly business report, i'm steve sedgwick. >> in another bit of international diplomacy. the european union is likely to approve the plan without any conditions. the $10 billion deal would combine the owner of the new york stock exchange with the ice, the atlanta based company that not only regulates stock exchanges and trading platforms, but has a few of them, plus stock clearinghouses. a nervous day in the oil markets today. due to rising tensions in the middle east. crude topped a nine month high before ending the day flat. traders are concerned that the worsening civil war in syria, iran's plans to send troops into that complex, and the unrest in

istanbul could disrupt oil supplies out of that region. in the end, july crude futures lost 8 cents to $97.77. the united kingdom has been hit with its own spying scandal. during the 2009 g-20 summit, information was gathered by hacking phones and e-mail. and using satellites to eavesdrop on conversations. the fallout continues here at home over reports that our own national security agency has been spying on u.s. citizens. the leaker who broke the story, edward snowden is talking again. we have more from washington. this story keeps on growing, what's the latest? >> reporter: it's pretty stunning. edward snowden may be on the run from the united states. he was last spotted in hong kong, but he was able to take some time out of his busy schedule to give an online chat to the guardian newspaper today. and in that chat, he had a range

of things to say, including he's disappointed in some of the media coverage focusing on him, rather than his revelations. he also has something to say about the technology companies that are involved here, and how they responded. take a look at this statement from snowden earlier today about the tech companies. he said their denials went through several revisions and it became more and more clear they were misleading and including identical specific language across companies. he also had some thoughts here on his own possible next steps. he said, all i can say right now is the u.s. government is not going to be able to cover this up by jailing or murdering me. truth is coming, and it cannot be stopped. and guys, i have to tell you, the companies themselves all put out new information within the past 24 hours or, so all of them saying, they've gone to the u.s. government and asked for permission to release more details of how often they're getting some of these intelligence requests. and what they've said, they've been forced to bundle all this together, both law enforcement

and intelligence requests. here's some numbers from the companies. for the sixth month ending december 31, 2012, facebook saying they got between 9,000 and 10,000 requests for information from u.s. government entities. microsoft also over that same time frame saying it's received between 6 and 7,000 requests and apple saying, between 4 and 5,000 requests to that company from december 1st, 2012 to may 31st, 2013. the companies saying they would like to put a little more disclosure out there on exactly what they're turning over to the u.s. government. but they're being forced by the government to combine things like law enforcement requests to go after search for missing children, and things that are more in line with the nsa whistle blower and what he had been saying as well. >> this is a complicated situation. on the one hand you're dealing with secret information. trade information, and on the other hand, transparency issues,

so should tech companies be granted legal immunity in order to participate into all of these programs? >> yeah, that's been one of the keys here, the tech companies themselves and u.s. officials say they would like to have thes these companies to have some immunity. others who are critics of that say, wait a second, if that happens, individuals are going to have no recourse if their information is leak ed. >> thousands of requests to each of these companies. each of those individual requests must be covering thousands of phone records or thousands of e-mails or posts. am i not right about that? >> yeah, presumably we're talking about a lot of information that's being turned over. how much of this is being done in a national security or intelligence context, or how much is done in an old fashioned law enforcement context where they're looking for a mugger or criminal or something like that,

also interesting to me, that facebook seemed to have the highest number here, obviously the value of facebook in terms of who knows who, and who's in touch with who, is pretty enormous for intelligence. >> thank you very much. still ahead, selling your life insurance to pay for long term care. texas is encouraging older americans to do just that. but is it a smart move? first, a look at some stocks that hit all time highs today. massive recall now expanded to nearly half a million suvs. general motors says it needs to

fix an electrical short that could cause a fire even when the vehicle is not in use. the suvs being recalled include the 2006 chevy trailblazer and the gmc envoy xl. for model year 2007, the trailblazer and envoy again as well as the buick kinnear. for more details go to our website. there were no recalls at the start of the paris air show today. boeing showed off its 787 dream liner, despite the jet being grounded for four months earlier this year. airbus unveiled its new 380 jumbo jet. the show was all about business. as aircraft makers took in billions of dollars worth of orders for new planes. phil lebeau was there, and filed this report. >> here's the paris air show, a lot of attention being given to the battle between boeing and airbus, when it comes to supremacy and wide bodied

planes. boeing has long dominated the market, it has about 6 o% of that market, with the first flight of the a-350 here in france on friday. a lot of people are questioning, how much can the a-350 help airbus cut into boeing's lead? the ceo of airbus tells us, he believes they can get at least half the wide body market. >> we will get at least 50% of the market of 6,000 aircraft over the next 20 years. our family is in better position. and we have three members. the biggest one will go into service in 2017, forces boeing to launch the greater version of its own. so i think that the battle will be tough, i have a lot of respect for our competitors, we'll no longer be alone. >> boeing is not sitting still when it comes to wide bodies. it will be announcing the launch of the 787-dx.

this is the largest version of the dream liner. boeing ceo says there's plenty of interest already for this large dream liner. here's his assessment of the battle between boeing and airbus when it comes to wide bodies. >> boeing is competing with a broad product line. 787s and up above the 787s, the triple 67s, and airbus is with some new products that they're bringing to the market, trying to sort of find a position in between us at the high end and the low end. it's going to be an interesting fight. >> we're seeing growth in the largest commercial airplanes and optimism about wide bodies that we haven't seen in a number of years. >> that's the story from here, at the paris air show, phil lebeau, nightly business report. no matter what plane you're flying, there's one airline that proving loyalty to your favorite carrier can last forever. jet blue announced today preb members of its frequent flyer program will be able to earn and keep points that will never expire, even if you haven't

flown on the airline in years. for the first time in seven years, the majority of u.s. home builders are more optimistic about new home sales. rising home prices, more customer traffic. also lifted home builder sentiment by the most in a single month since 2002. home builder shares benefited from that rise in sentiment today. pulte homes, toll brothers each gained more than 2%. a new wrinkle in the deal to buy smithfield foods. the world's largest pork producer, for nearly $5 billion. regulatory authorities work on whether to okay the deal. one of smithfield's largest shareholders says the company would be worth a lot more if it was sold off piece by piece. or maybe slice by slice. an investor estimates the company could be worth nearly 11 billion if it was split up and divided into divisions like hog production, international pork

sales and others. shares of smithfield were up nearly a percent higher today. lots of stocks hitting new 52 week highs, thanks to that broad based market rally we told you about. cisco led the dow stocks a day ahead of its analyst conference call with deutche bank tomorrow. the company will talk about new trends in router software as mobil video use explodes. cisco shares hit their highest level in nearly three years. $24.70. gaining more than 2.5%. lockheed martin also hitting a new high. s&p also sighting lockheed's ability to generate free cashflow even as u.s. defense spending declines. lockheed shares rose slightly. at the other end of the curve, tarot shares drop. the firm is facing a softer marketplace for construction and

materials handling. stock tumbles to $29.29. and johnson & johnson will pay up to a billion for aragon pharma and its experimental prostate cancer treatment. medovation has an approved cancer treatment. johnson & johnson was up almost 1% to finish at $85.63. and aetna will stop selling health policies to individual consumers in california at the end of this year. the health insurance giant announced the move today as the golden state gears up for the launch of a new state health care exchange through president obama's affordable care act. aetna will offer health coverage to employers, and medicare recipients there. individual policyholders will have to find coverage else whereby the end of december. lawmakers in several states

are encouraging elderly residents to sell their life insurance. giving up death pen fits to pay for long term care. rick perry of texas signs a law to allow medicaid officials to tell people they can sell their death benefits to pay for long term care. there are similar bills in several other states. and our guest likes the bill. under these proposals, what would happen is, you would sell your right or your beneficiaries right to a death pen fit to a third party, a settlement company of some sort, but you would take a discount, wouldn't you, on the amount of cash you would receive for giving up that right. and how much would that discount

typically be? >> that depends, that's right. you defined it properly. the issue, if you keep in mind for a moment. these are people that are running out of money to pay for their long term care, this is something of a last resort, either by themselves or perhaps their children who are helping to pay for their long term illnesses and are also running out of money to be able to do so. the idea of a death pen fit is less important to them than the amount they can get up front. even though the companies that put this together are extracting a rather healthy fee, the fact is, the money that the client winds up with is something that they desperately need, and so that's something that will probably have to be worked out if those fees are fair. i think on balance, the idea is good, it helps the consumer get access to cash they might not have normally had. >> any rest rifts to this stra? any unintended consequences. >> the main one, it goes to the issue of full disclosure, the person needs to know they'll no

longer have that death pen fit they're leaving for their family. if the children are involved and the parents make these decisions together, i think that's the only down side i can see, i've seen these situations where i would just recommend that someone pay an independent third party to review this, preferably a certified financial planner that has a fiduciary responsibility to their client to make sure this is in their best interest. assuming it passes that test, i don't see a lot of down side. >> if i have a $100,000 death benefit and i want to sell that death pen fit to a third party, how much would i be likely to receive? >> the numbers are all over the ranch, it's not a formula. and that's one of the areas where i think as this gains more acceptance, you'll see it more regimented in that fashion. but it could be anywhere from 35 to $65,000 depending on the company that's doing it. >> texas governor is going to sign this into law.

there are a couple other states looking into this, what is your sense of how many states are going to adopt this. is this going to be standard operating procedure going-forward? >> i think it will, and the reason being is, all of these states are under the same medicaid crisis, right? the big issue for their legislation, their governors is how do we take some of that expense off the taxpayers of the state and over to the private sector. and this serves that purpose. i think it's going to do -- surprisingly well in many states as they look at it, of course, there may be some legal challenges. the insurance industry probably won't like this on balance. but in general, i think you'll see more and more states accept it. also, keep in mind that the idea of long term care insurance has been getting harder and harder to get over the last few years. the big name companies have frankly exited the business. the large companies that we all know the names of have decided that that business is not profitable. so there are less choices out there, and it's become more

expensive. alternatives have be selected and i think this is one of them. >> very quickly, if i hold on to that life insurance policy, does that preclude me from getting coverage under medicaid for these long term care costs? >> that's one of the issues, tyler. to your point that's what these bills are trying to do, in effect, is keep people from dropping those policies to qualify for medicaid, and in fact burdening the system more. >> thank you very much. >> still ahead on the program, netflix strikes its largest content deal ever with dreamworks. betting on a new and lucrative fan base. a check on commodities, treasuries and currencies.

the battle over smart phones, to the battle for your living room. netflix the best performing stock made its biggest content deal yet with dreamworks. why netflix is betting big with kids. >> dreamworks animation on board, netflix is making a push into exclusive kids content. dream works animation will give netflix 300 hours of new shows starting in 2014, they will be based on shrek and kung fu panda plus rocky & bullwinkle and casper the friendly coast. the content will be available to

all of netflix's subscribers. they pulled popular shows like dora the explorer off of netflix. >> they got rid of viacom to make space for this dreamworks deal. who picked up viacom? amazon. netflix does not have the power to go against amazon. >> nickelodeon shows were available elsewhere with restrictions on when they could be streamed. the ceo said he was fed up with the limits on how and when they could be streamed. >> some shows come out a window and some shows come on, that's a windowing system hollywood has. we are doing our best, because

we know the consumer wants to be able to get everything and rely on it. we're working toward that. >> becoming a true television studio, rather than licensing its characters to other tv producers. this will help diversify its recommemnants away from a few f. it will be worth hundreds of millions of dollars over time. >> you can also read about netflix's new deal with dream works on our website. finally tonight, google has settled a class action lawsuit by shareholders, clearing the way for the company to issue a batch of new nonvoting stock called class c shares. google shares rose more than a% today to $886. that's nightly business report for tonight. thanks for watching. >> have a great evening, everyone, we hope to see you back here tomorrow night.