this is "nightly business hen alerts h tyler mathisen and plus. with jim cramer and fellow portfolio manager stephanie link k p and insights. you can learn more at the st >> land of confusion. over the outlook for interest rates and the federal reserve may have further muddied the path ahead when it released the mi in the bull's-eye. shares of target rally on upbeat earnings just ahead of the y season. can the new ceo bring back the target of year's past? the next bat what the president will tell the nation tomorrow and what it could all mean for business.

all that and more tonight on "nightly busines good evening. confusion and uncertainty, that was the mood of investors after revealed anxiety among policymakers on inflation targets, concerns about weakness e and inevitable nomy, impacti interest rate hikes without ratt. add it up and stocks barely budgeted t nasdaq was down 26 and the s&p lost three points. steve gleason has more o >> reporter: within minutes of the release of the minutes of the fed's october meeting, stocks shot higher. minutes later, they shot lower. that kind of volatility is perhaps emblematic over increasing confusion ovey and f. showing that the bank has much

work to do to figure out how to alk with mark markets. but it also discussed inflation being too low. and concern that it won't hit its 2% inflation target qu and worried about global economic weakness. factors that will lead markets to put off the timing of rate hikes. >> i think they're struggling with the gap between what the market expects and what they something that they won't be able to address because clearly they're saying it depends on the data and the more they say that, the more the market expects a different thing. >> that gap between is between where the market believes interest rates will be in the coming years and where the fed thinks it will be. the market continues to believe in lower rates than the central bankers. gap that puzzles market participan >> i think it's going to be very hard for the fed to raise interest rates much as they'd like to find a reason and the

ability to find do so. i think the rates willy thvery, very level i would say for the ball opeance of '15. i don't see where they can raise short rates. >> reporte most economists disagree. a rate hike in the summer of next year and judged by the minutes you'd be forgiven to be confused over the central bank policy. the experts are only sure the rates will be low, but can't say for how long. the fed isn't the only central bank concerned about inflation or maybe the lack of it and monetary policy that may be too loose. a warning today from the bank of japan just days after that economy enter recession. is raising questions now about prime minister shinzo abe's fiscal policies and whether japan's economy can turn around. >> reporter: the central bank governor the bank japan said

today that the central bank will continue on its easing monetary policy until japan reaches 2% inflation. the bank of japan governor said it's 1% and it could slip below the figure in the near term. he is under pressure for the moves he's made most recently the additional stimulus he's added into the system, particularlyt delayed a sales tax hike. when this grand expert to try the rev up the japanese econ la year, it was supposed to take to a three pronged approach. the second element was monetarying easying with japan . since the tax hike is delayed the government has put that fiscal reform process on the back burner. so it raises the specter of the

of japan that it might be monetizing the debt. a lo ecos we ha spoken to throughout the day suggests if they need to continue to issue more debt to finance the economic recovery, there could be pressure on japan's credit rating, sovereign debt rating, possibly eveno e s. that would make it difficult for japanese government to finance the debts which is extremely large. that's for more analysis on all of this, we turn now to john sylvia, chief economist at wells fargo securities. here, the debate from o continues on what's next for interest rates. as you read between the lines of this latest fed report, as well as new developments since then with japan for example, what's well, i think you're right to focus on confusion, becae clearly, when the fed was

talking about deflation being less than they had expected that was a mark. then second element of cost is the fed recent ja minutes or the fed meeting was held. and both cases, it suggested that interest rates will in fact be lower for a longer period of time than what the market had once again, suggested that there's a difference betwe the fed is right now on interest , if you have inflation that is running below wh it would seem an odd time at all to raise interest rates at all. sources in one of our stories said that -- who thinks i agree with you, tyler.t rate when the fed emphasized the inflation expe and i think it

told a lot of people that if the fed were to hike rates it would what we're looking at nowst is again this situation where fed is giving us new information, it's creating some confusion in the marketplace. but it certainly does delay any interest rate increase. >> let's just step aside from interest rates for a moment. how would you describe the health of the economy? we see the unemployment rate is coming down. sure there's this inflation issue but how would you describe how the economy doing right now? >> the domestic economy doing okay. the challenge for as you might suspect is when we look at overall growth, thra. our exports are going to be much g that then generally ex

fed is unlikely as tyler has suggested -- the fed is unlikely to be raising rates any time soon. >> are you worried as some are about falling oil prices or as a well, unfortunately, tyler, in this short run historically, falling oil prices have been a d what has been a very strong energy engine in terms of destruction, building, drilling activity in the united states for the last for the american consumer by the short run, a big shock to the energy sector. that tends to be a negative, tyler, for the overall u.s. economy. >> john, i know you're an economist and not a market strategist, but you have views on the stock market. what do you think is the outlook on the stock market given this confusio is that when the fed is talking

about perhaps below trend economic growth, less than expected inflation, that's telling us that the pa than wha generally expected. generally, that's going to be a little tougher for the market going forward. the equity market going forward. >> all right, john, thanks so much for joining us. we really ap yo susie. credit card data breach sent shoppers and investors scurrying. a new ceo turned the retailer around with sales and profits both raising in the last quarter. surged nearly 7.5%. and we spoke to the ceo about the all important holiday shopping season. >> reporter: so far so good for target under first 99 days with new ceo brian cornell. the big box retailor beat both

the retailer and wall street estimates. but with black frida cornell is staying conservative when it comes to his outlook for the all important holiday season. >> we are eight days way from the starts the holid season. we'll have to we're optimistic. our team's fired up about the holidays but i think we have to be cautious right now. it's still early. >> the holiday season will be critically important for target's struggling canadian business. th unacceptable. >> right now we're very focused but i will tell you, we're not happy with performance. we're not happy as we sit here today. we weren't happy with the third quarter. we have to improve store by sto well target says surveys indicate consumers have move th announced 11 months ago, the

retailer is still tallying the cost whichsu the target cachet of years past. for cornell that means meeting delivering great products at price points cautious consumers want. for "nightly business report," i'm courtney reagan in minneapolis. another major retailer also posting better than expected earnings today. the nation's number two home improvement chain reported a 17% jump in quarterly profits with sales up 5%. thanks to a modest rebound in 6% today, closing at an all-time high. >> but also out today a minor setback in the aforementioned housing market. in october, new home construction fell nearly 3% last month on lower demand for new apartment buildi demand for single family homes was higher and permits for

future construction jumped up as well. a new kicker trader on the new york stock exchange for the paramount group. this is the office building owner. it's the biggest initial public stk offering ever for a u.s. real estate investment trust. paramount had a strong trading debut. shares rose 4% to $18.18. a solid gain after pricing shares last night at $17.50 each. barely six years after the financial crisis and two years after superstorm sandy, manhattan real estate and commercial residential is booming again. it seems sky high and sky high prices have no limit in new york city. but is it too mu, too fast? we spoke with sop >> reporter: the manhattan skyline is morphing by the minute. both commercial and residential

towers, lining unlike needles through the island's historic tandem. and prices are rising >> prices is a story of supply and demand. >> reporter: and on park avenue, the tallest residential tower says there is plenty of demand. >> the location, the architecture and interior finishes of the building are found by the market to be extremely attractive. >> reporter: 432 joins 157 and soon 520 park avenue luxury condo towers with huge price tags. 520 developed will list for a record $130 million. contrary to popular be the -- buyers are not the main target. >> based on the past, roughly three-quarters of the buyers are

domestic, 25% overseas. i'm hoping one of the two groups will be buying it nextor major gather heard in manhattan at a conference by nyu. the goal? help students navigat york city. the lesson thi resilient. >> there's so much money chasing the decision is what does the future look like? should i take >> depends where you are, what your tax situation is and what your long term plans are. >> reporter: ross the mega developer behind hudson yard the largest new project in manhattan's history is not concerned about oversupply for his offi the projects may be new, but the driver is not. it's the economy. new tech adding to the improving financial industry and the migration back to the city by both older boomers and younger millennials.

supply and demand it's as simple as that. fo i'm diana olick in new york. why the business community will be paying close attention a senate panel report finds three major banks exploited the commodity marks. found that gol sachs, morgan stanley and j.p. morgan manipulated prices and gained trading advantages by the banks were stockpiling. wells fargo bank is looking

to help out certain customers who are feeling crushed under the weight of too much student loan debt. nation's private lender has agreed to review cases and will modify the loan debt, even lowering the interest rates based on income. president obama will speak to the nation in a primetime address thursday night. announcing a plan to use his executive power to fix the nation's immigration issues. and setting up a big fight with republic john harwood joins us from washington. what a busy week it has been, . what exactly is the executive action? >> reporter: we don't know all the details, but we believe what the president is going to do is d dreamer kids that he signed a people meeting certain criteria would have their deportation defer and would be able to work in the meantime. they get a legal status for a temporary period of time.

he'll extend that to probably family members of people who are eitht -- if the family mens are not citizens they'd get that pro depending on how you define it. could be up to 5 million people. >> how is this going to go over in congress? >> well, house speaker john boehner came out today and he call obama. republicans agreed that they believe this is beyond his presidential authority and in fact pre beyond the ability of the president to do this. he has been considering this and e tomorrow in a speech and also on friday when he's going to travel to las vegas. >> what does the public think? >> well, the public does not like this.ll an saying they don't want

the president to act unilaterally even thought a pat to citizenship for the people in the long term if congress acts. you have a 55% majority of whites and hispanics are even split. only 43% say they executive action while 55% of whites say they oppose it. >> all right, john harwood, wel be watching tomorrow night. demand for office supplies picked up, helping staples post results at the -- that beat analyst estimates that's where we begin the market focus. even though it topped wall street's consensus, third quarter sales at staples did fall as it accept -- accelerates plans to close underperforming stores and spark sales growth online. investors focused on the positive though. shares rose 9% to $13.92. jm smuckers sales were hurt by the weak coffee business. it increased the coffee prices which caused consumers to buy other brands. but its profit rose from the same quarter last year as

margins widened and as it lowered overall costs and expenses. still, shares were off slightly to $101.66. a cloudy forecast sent shares of salesforce.com after the closing bell. they predicted it would come in below analyst expectations and that forecast overshadowed results that beat estimates. you can see the shares tumbled after hours during regular trading though, shares were off 2% to $61 and change. well, williams & sonoma rose higher after they logged better than expected third quarter profits. its fourth quarter outlook was below the street outlooks though. st spiked after the announcement. dow a the close little to finish at $69.42. shares of cliffs natural took a hit on a report that it might

have to close a mine in it revealed that three big steel makers were in talks to invest. the company is looking to narrow the focus to five iron ore mines. this as prices fall. shares down about 20% for cliffs today to $8.17. big fall t jetblue fares got a list as it's adding fees and cutting leg room as it looks to improve the financial performance. this leaves southwest as if only big u.s. airline that offe b shares rose 4% to $13.24. the first of the big auto shows opened in los angeles. showing off the latest high-tech, and ultra luxurious models. >> reporter: in a city where the newest high end models are fighting to turn heads >> very important to have that kind of draw, glitz, excitement,

call it what ever you want. but it's really important. >> reporter: the los angeles auto show has long been the place that ultra luxury cars like the bentley grand convertible make their worldwide debut. thd explorer there are a slew of new crossovers and suvs promising versatility and buyers fuel economy want right now, because they're fuel eco room for the family. >> reporter: with industry sales at their highest pace in eight years, car buyers are increasingly looki like toyota, the first mass market hydrogen cell vehicle. meanwhile, bmw believes incorporating the music streaming service spotify into the newest models will give drivers more options behind the

wheel. >> it's a logical step to put cert c was io the car. spotify is one of them. they can download the music them. >> reporter: in all more than 60 new models will make either their worldwide or north american debuts here in los angeles. and many will be in show rooms next year. that's when we'll find out if they live up to the promise of their red carpet rollouts here in tinseltown. phil lebeau, los angeles. coming up, forget spreadsheets, nu crunching, fidelity wantspo virtual reality to investing. a push back coming over a

massive pay and stock package proposed for the microsoft ceo. iss and influenti adviser to institutional investors recommends shareholders vote no on the $60 million compensation plan calling it a mega grant. none of the shares vest until 2019. so ves until 2021. finally tonight, what if y using 3-d technology to construct and build a simulated t mirrors a real portfolio. kayla tausche shows us how one is trying to m fidelity investments thinks so. the company has been building stock city to bring your portfolio to life in a city skyline. health care stocks in one neighborhood, banks in another, the building size measured by stock pr

the result, bank of america a low-lying office park while tesla looks like a soaring skyscraper. they build the software which is still in beta form, but vice president hadley stern says it could be common place in the coming years. >> five years from now, there could be a technology much more smaller and mainstream that, yes, it will be to our customers' benefit, all of our benefit. competing and playing may be an option. but maybe even visualizing in far customers s the answer have raved about that visualization. compared to a simple g feedback as they keep building the project whic since then, facebook has acquired oculus for $2 billion to get the v r products closer to the shelves. a ceo said in an earlier

interview a forth coming headset will be coming out. >> you will see a new microsoft, other companies will charge inning to. >> a spokesperson said more than 180,000 have bought access to oculus and developers platforms since it has been released. google glass, the pebble and now the apple launch, where wall street and tech meet, fidelity wants to be on the front lines. >> as the technology improves, as it ge smaller, as it maybe morphs into something else we think it's worth investing a little bit of our time to understand for our' benefit how this could help them. >> reporter: a virtual portfolio it's fidelity's first step. i'm kayla tausche in new york. >> to read more, go to our website at nbr. and that is "nightly business report" for t susie gh.

thank you for watching. >> i'm going to wear one of the head tomorrow. m tyler mathisen. have a great evening, everybody. we expect you back here tomorrow night. r >> the street.com and action alerts first. with jim cramer and stephanie link sharing their investment strategies, market insights and stock picks. learn more at the street.com/nbr.

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