. this is "nightly business report" with tyler mathisen and susie gharib. >> world focus, the european central bank cuts interest rates, nato leaders meet to talk global hot spots. what will it talk for markets to pay attention? >> different paths. europe is cutting rates, the u.s. is gearing up to hike them. what happens when europe and the u.s. move in different directions? >> and ready to pop? a look at some of the stocks analysts think can rise 20%. we have that and"nightly busine thursday, september 4th. good evening, everyone. welcome. thanks for joining us. stocks edged a little lower into the close today, but things didn't start that way. the dow and the s&p many 500 both hit record intra day highs

driven by a big jolt. who is that? who what is that? head of europe's central bank and today in frankfort, he took steps that electrified markets in europe and for a time here in the united states. he slashed interest rates to fresh record lows, nearly zero percent and announced some federal research-like bond buying stimulus measures to boost the struggling economy, but the droggy jolt faded. unemployment claims and private play roles were weaker than expected. the dow down eight and nasdaq lower by ten and s&p off by three. the dollar rose as the eros fell to a one-year low dipping below $1.30 for the first time in a year. >> despite the sell off on wall street. the stock markets are hovering near historic highs. the american economy is growing,

and the u.s. federal reserve is not only pulling back from the stimulus measures, but talking about raising interest rates. in europe, things are different. the central bank there is trying to avoid a recession and pumping money into the financial system to stimulate growth. steve liesman has more on two continue innoce economies. >> reporter:r marke de by announcing measures to stimulate the european economies. the eros plunged by 1.5% as it was announced to buy bonds to lower interest rates and cut the central bank's own interest rates lowering from 0.15% to .5% and cutting to a negative .2%. negative rate? banks have to pay to keep eroses on deposit. more could be on the way. if the current round of stimulus

doesn't do enough to reverse the contin continent flagging growth. >> should it become necessary to address the period of low inflation, the governing counsel is unanimous in the commitment to using additional unconvince l instruments within the mandate. >> reporter: all this in stark contrast to janet yellen who is a report on the service sector was practically near boom-time levels. unemployment insurance claims are low and wall street is expecting another strong jobs report tomorrow for the month of august. while the two central banks move in different directions, the policies could be complementary while yellen eases back, he is pushing on the throttle, potentially reducing the pain of a fed course reversal. while yellen will take action that could raise interest rates, he is taking action to lower them and had a powerful effect on not just european rates, some

of which are below 1% for ten-year bonds but also on u.s. rates. while a weaker eros will challenge u.s. companies like exporters whose products could be less competitive in dollars versus eroses, a st23cr economy will help the u.s. the downside could come down the road if yellen needs to raise rates but the ecb's actions make it difficult for her to do so. that's a problem for another time. the immediate issue is europe and avoiding another recession. for "nightly business report", i'm steve liesman. europe's economic challenges are one thing. national security threats are quite another. and today in wails, president obama met to discuss what to do about russia and whether the moves in ukraine will mean more sanctions, or maybe even for defense spending. middle east was on the agenda, too, more from wails. >> reporter: the first day of the nato summit is coming to a

close in wails and workers are working to find a consensus what to do about russian aggression in ukraine. this is gal von newsed for the last several weeks include whag is happening in ukraine and the islamic state and many european leaders worried about it and they understand as this movement spreads out of iraq out of syria, targets will be in europe and the united states, as well. certainly a top priority for leaders gathered here. another big top pick is defense spending. we've seen european leaders committing today to a resolution. they say that in ten years time, all of them will be committing 2% of their gdp to military spending to the defense of the nato alliance, into their countries but a non-binding resolution. we'll have to wait and see if that comes to fruition. in terms of nato, we have to see what they will do about the islamic threat. many options on the table but no clear cut strategy or plan, as

well. in terms of dealing with mr. put putin's territory, that comes down to the fact the european leaders that i speak to and nato leaders are telling me they want to use soft power and diplomacy and don't think a military solution will work. tough questions for leaders here at the nato summit. one day down, one to go. for night "nightly business rep i'm hadley gamble in wails. how important is it for u.s. stocks and is it time for u.s. investors to pay attention to trouble spots around the globe? joining us to talk about this, chief market strategist and president of the group a political research firm. thanks for joining us. just to kick off the conversation, i'd like you to take a listen to the views of two top investors over the past couple of days and then like to get your reaction. take a listen. >> what i've been doing over the last week or so is reducing my

exposure and moving a portion of my portfolio to t bills, not because i think anything is going to happen tomorrow but because i don't understand how you can have so much chaos in the world and still have prices going up every day. >> do you remember another time where there were more issues going around around the world all at the same time? any one of which could overnight turn into a major disaster? you want to talk about issues? you want to talk about gaza? you want to talk about the ukraine. >> so art, let me begin with you. do you feel the same way as these two guys? >> well, it's interesting. i do. i think, you know, there is as much concern on a geopolitical front as there has been in the 25 years i've been in the business. that said, you know, we have to rationalize that. you look at each individual crisis and say what does that

mean to the domestic and global economy and what type of effect does it have? it's hard to drive yourself to worst-case scenarios but often times you do that and luckily, none of the situations we've been faced with have gotten to that point. so my feeling is, you know, there is a credible possibility that the global community puts a lot of pressure on russia. that continues. and russia backs down on this. at some junction tour we heard that at the beginning of the week. that would be the first and foremost, the most major of the concerns and certainly help the european economy. europe is most adversely affected by the sanctions on russia. the way i look at it, hopefully, the global geopolitical conflicts remain local and get resolved without turning into major disasters. >> ian, the world is always a dangerous place. i guess sometimes more so than others. how would you weigh the risks in the world today as risks to my money and my portfolio? >> certainly, in terms of

timing, the largest this year is russia and ukraine, but it's much -- as art said, the risks -- i don't believe it's going to get resolved, at all, but i also don't believe it will go globally. those are two different things. one of the reasons americans are pretty prepared to shrug this off, they are prepared to shrug it offi8x politically. despite everything we've seen, there is interest to truly engage to try to stop the russians. nobody believes the president's policy will do that. it affects russia, ukraine and the europeans more than the united states. after the 2008 financial crisis, a lot of people8'añ believed th the united states was the cleanest dirty shirt. that was true economically but it's even more true gee -- gio politically.

it's syria, it's ukraine and russia, the man fold conflicts all of which are connected and affect a heck of a lot more other countries in the world than they do the united states sandwiched in between remarkably unstable canada and mexico. and so i think that's really the issue here. >> you know, art, some people are saying and we've heard this from a lot of wall street market strategists is that u.s. investors can withstand any of this turbulence. is there a point where that argument doesn't hold its water? >> well, susie, that's a great question and ian brings up a great point. you really look at this situation and then try to ascertain what that means to you. it's not as though we're isolated from the global economy and we certainly aren't, but what effect any one of the concerns that he just brought up and listened are going to directly effect the p and e

ratio or the u.s. economy and the growth rate for the balance? so as we look at that, there are certainly reactions that could happen. the biggest concern i would have right now is as a result of sanctions put on russia, you're seeing the european economy slow down. it was slowing down before this happened and getting worse because of sanctions. what has to happen is aggressive monetary policy. the effect on that will be something like a stronger dollar, weaker eros and that could have an impact on investments. so you might need to make sector rotations decisions and things affected by the reactions to some of these. in terms of being isolated from some of this, to a certain extend, there is isolation, global, geopolitical conflicts, affect locally. >> let me ask susie's question to you, ian. what would it take for american investors to react to overseas?

event would take us from hey, it doesn't affect us much to hey, this really does affect us? >> four quick things i would point on. one if we get a severe recession, the consequences, that is going to knock on all the trade of the united states with europe. you can only take so much despite what droggy is doing. likelihood of an iran comprehensive nuclear deal getting done has gone down because of the distraction of the u.s. away from iran, so the iranians don't believe we can get it done and willingness of countries like russia to interfere in that. oil prices going to swing higher as a consequence, that certainly affects us. third, god forbid isis attacks on american shores, can't really do much to hedge about that in advance but afterwards clearly would have a very significant impact on the u.s. economy. the most significant impact on the u.s. economy is the one no one is talking about, china is

actually engaged in historic economic transformation which means -- and it may or may not work and if it doesn't, the potential, not only for slow down but more importantly, the ability for american corporations to do well and make money is a real risk for us a very fascinating point. this conversation is interesting. we'll have to leave it there. thank you so much. ian bremer and art hogan. thanks to the rate cut, the dollar strengthened and helped move oil prices lower. oil priced in dollars when the buck bulks up, west texas intermediate down 8% and turn the weakest sector in the s&p today, energy as a result oil companies hit exxon, chevron, all lower. that may mean good news at the gas pumps because of those falling oil prices along with a seasonable drop in demand, aaa predicts gasoline prices could decline by 10 cents or as much as 20 cents a gallon nationwide by the end of october as long as

there are no hurricanes or other major supply disruptions. the national average right now, $3. $3.43. may have been tough getting a burger today at lunch. fast food workers in more than 100 u.s. cities took to the streets today or staged sit ins calling for better working conditions and a $15 an hour minimum wage. coming up, the big cap stock analysts think have the most room to run over the next 18 months. that's next. u.s. postal service is slashing shipping rates by nearly 60% on certain priority mail packages just in time for the holiday season looking to take away business from fedex

and ups. they are launching a trial to deliver groceries in san francisco through amazon's fresh unit. home depot is still investigating whether it was a victim of a massive hack attack and the customer credit card data was stolen from the 2200 u.s. stores. while the chain works with the u.s. secret service on the potential breach, it says it will activate computer chip enabled checkout terminals at all stores by the end of this year to make sales more secure. you need to hunt for stocks with major upside potential, analysts as they so often do insist there are plenty out there but you have to know how and where to look. dominic chu has more. >> reporter: investors looking for stocks that could pop, look to the opinions of those who know a company opinions use pri to what a price will be over the next year to 18 months.

price targets will be helpful looking to invest within an lips -- analyst research. >> if i look and they have the same idea and thought process, i may take that into consideration on my trading strategies. >> among the large cap stocks in the s&p 500 there are a hand full that have price targets at least 20% above where the stocks currently trade today. the company with the highest price target on average is delta airlines. every analyst has a buy rating on the company. the stock is volatile but analysts say it could be poised to go up by 32%. >> it's a very attractive u.s. airline industry and beyond that, delta has made some attractive investments and i think they are just starting to benefit from. we expect them to continue to do well and generate a lot of cash and return cash. >> reporter: another popular stock is luxury retailer michael kors. there is an average $103 price

target 32% above the current price and after the shrlew of recalls, gm is taking a hit this year but analysts remain bullish with a target 26% higher than today. while analysts opinions are important for investors, some wall street pros say to look beyond the price target when investing in stocks. >> in this day in age with the internet, you can get any information that an analyst can come up with quickly. everything is out there. no advantage to having an analyst report in front of you. >> analysts are one part of the picture on wall street and while they may not always be right or wrong, they do provide a base for some investors to form opinions. for "nightly business report", i'm dominic chu from the new york stock exchange. a new court ruling on the 2010 gulf oil spill rocked shares of bp and that's where we begin the market focus. a judge found the giant grossly

negligent in the deep water horizon disaster. the decision opens the company to the possibility to as much as $18 billion in fines. bp says it will appeal the decision. shares tumbled 6% to $44.89, their worst day in over three years. profits soared as the home builder delivered more homes and margins strengthened but revenues came in below estimates. despite , shares rose to $4.25. electrolux may buy ge. it looks like it is close to selling. ge shares edged up a fraction to $25.96. nordstrom touched a new high after the retailer authorized a stock buy back program of up to $1 billion. this adds onto the more than $320 million left in its existing program. the stock was up 1% to $70.43

closing below the record. verizon has hiked the quarterly dividend. the 4% increase will bring the payout to 55 cent as share payable on november 3rd. despite that, shares were down a fraction to 49.7 2. we have a mattress merger, mattress firm, yes, that's the name is buying sleep train for $425 million. that's an effort to expand the presence on the west coast and mattress firm reported better than expected first quarter profit. investors will sleep better tonight. shares up 10% to $62.69. verifone up with results. the company raised the first full-year revenue forecast encouraged by the device that can accept chip embedded credit cards. shares popped to $35.05 and mobile eye reported sharply

higher revenue one month after going public on strong demand. the company makes cameras used to avoid car crashes. still, shares down today 3.5% to $45.37. auto makers are still revved up on delivering strong sales in august. but that wasn't the case for all vehicles last month. according to automotive research company edmonds.com, sales of electric and hybrid cars stalled grabbing 3.6% of the market. one electric car maker is betting on powerful sales of tesla and today the company will unveil plans to build a brand-new $5 billion lithium battery factory in nevada and that's where we find phil lebeau with more on today's announcement. phil, good evening. why nevada for this factory? >> well, tyler, look at this strictly from a manufacturing and logistics perspective. the factory will be outside of

reno along i- 80, four hours to the west you have the plant in california. logistically, they can build the batteries here. they will build this factory in congestion with panasonic, the only active lithium mine in the united states is in nevada and there is a rail line there. let's say they capture lightning in a bottle and want to ship out to asia, well, that rail line goes to the port of oakland. this makes perfect sense in terms of what tesla is trying to do and nevada will come and step forward with plenty of incentives. >> right. does it make sense for nevada? how much will it cost to stay and is it pun well-spend? what are you hearing? >> the incentive package will be between 400 million and $500 million. everybody says look, we'll get it done eventually. you don't have these many opportunities, susie, to land a

manufacturing plant to bring 650$6500 jobs. is a half billion a lot? you bet. it's not very often you can bring 6500 manufacturing jobs into one area and that's why nevada believes this will be money well spent. >> this is a $5 billion investment, $5 billion. that means you got to sell a lot of electric cars. what is the demand for those cars, those teslas never takes off? will they consider selling those batteries to other vendors? >> yes, yes and that's the whole idea. these batteries are not strictly for tesla. they will be for other electric vehicles. they will be using the energy that they create or develop within this giga factory to sell to energy companies. there is a component being used for energy. yes, some are calling this a moon shot but tesla believes there will be demand. >> phil lebeau from nevada tonight. and coming up on the program, it's the time of year many fans can't wait for, the kick off of football season.

we'll go inside to the big business of the nfl. google is about to make a lot of parents happy after reaching a settlement with the federal trade commission. it's refunding at least $19 million to settle charges it unfairly billed parents for app purchases made by children without an okay from mom or dad. kids bought goods while playing a popular game. from video games to the gridiron, the 2014 season kicks off tonight with a super bowl champion seahawks hosting the

green bay packers in seattle. julia boorstin is there with a look at the biggest most valuable entertainment property in american business. >> reporter: 205 million people tuned into nfl games this past season, more than any other sports or entertainment by far so is tv facing more competition and advertisers more options? broadcasters are increasingly looking to the nfl. >> there is no other content that they can put on television now that will guarantee ratings like nfl football, and in this day in age, that's very hard to do. >> cbs snapping up the rights to eight thursday night games for $275 million, deliver the ratings to advertisers and boost post football frprogramming, leaving nfl analysts into shows. look for a boomer a size on blue blood and phil simms in a guest spot and nbc leveraging the fact

they are airing the super bowl have more ads. growing the return on this investment of over a billion dollars as part of the nine-year nfl teal. direct tv is getting ready to pay for more the rights for sunday ticket closing in on a deal for an annual price tag reported at $1.4 billion. the nfl is doing it's part to drive the games and the ratings. the league's nfl now app offers the largest video with customized staff on teams and players and plus access to the locker room and game highlights and all the technology and info isn't just for fans at home but also those in stands across the country. stadiums are investing to upgrade wi-fi and technology to access the latest stats and custom maps to help with everything from bathroom lines and ordering concessions to instant replays.k blq looking to differentiate the experience from the coach at home. the nfl is working to keep fans

and advertisers feeling like the investment is paying off. for "nightly business report", i'm julia boorstin in seattle. >> another football season is here. and that will do it for "nightly business report" for tonight. i'm tyler mathisen. thanks for watching. >> and we want to wish you a very happy birthday. >> thank you very much. >> i hope you have good plans for tonight. >> i do. we have a lovely evening planned. thank you, all. >> have a great evening and we'll see you back here tomorrow night. ♪

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