darren gersh will have more about the fed and banks in a moment. the dow rose almost 84 points, the nasdaq added seven and the s&p 500 was up five. as for trading volume, almost two billion shares moved on the big board over 2.5 billion on the nasdaq. an f.d.a. panel says removing menthol cigarettes from the u.s. market would make americans healthier. but the panel did not recommend a ban. menthol flavor attracts younger smokers and makes it harder to quit smoking. and it's popular: about a third of u.s. cigarette sales are menthols. we'll have more on how the decision played out on tobacco stocks in market focus. a wisconsin judge has put on hold a law stripping collective bargaining rights from the state's public workers. the judge wants to review a challenge to the law before it takes effect. still ahead, when it comes to highly skilled jobs, companies say its not easy finding talent. we look at one solution. >> tom: remember bank dividends? they're back. the federal reserve has given some of the nation's biggest banks the okay to pay investors

darren gersh, "nightly business report," washington. >> susie: bad news for java lovers: the cost of coffee beans has jolted higher this year. many large chains like starbucks have been able to absorb the higher prices, but not so at smaller retailers. erika miller visited one new york city coffee store today to see if even higher prices are are percolating. >> reporter: for many americans, coffee breaks are a daily ritual. >> i'm a coffee freak. i like the taste. it's not just the caffeine. >> reporter: it's a habit that is becoming more expensive at oren's daily roast and other coffee stores nationwide. c.e.o. oren bloostein has had to raise prices twice in the last six months. >> for a cup of coffee, we raised between five cents for, say, a drip and ten cents for an espresso beverage. the beans, 75 cents to a dollar. >> reporter: part of the reason the price of coffee is going up is more consumers are drinking it, thanks to an improving global economy. at the same time, coffee supplies worldwide are the lowest on record. so, coffee futures are at a 34- year high, closing in on $3

darren gersh, "nightly business report," washington. >> tom: here's what we're watching for next week: our friday market monitor guest is richard steinberg, president, steinberg global asset management. next week: federal reserve policy makers hold a one-day meeting on interest rates. monday, made in the usa. we'll meet one designer trying to bring u.s. made clothes back in fashion. >> susie: an update today from boeing on its long-delayed 787 dreamliner. it's estimated time of arrival is the fall of this year. the 787 has been in development since 2004. it's the first major airliner to be built of carbon composites and offers greater fuel efficiency, flight range and passenger comfort. but a machinists strike, supplier shortages and a parts problem have thrown a monkey wrench into the production schedule. >> tom: meantime, american airlines latest fare hike has lost altitude. the carrier has given up its move to boost prices by ten dollars on domestic round trip tickets. the price increase had been in effect for only two days. american changed its mind after other carriers declined t

as darren gersh reports, the issue comes as the s.e.c. is asking congress for more money to police wall street. >> reporter: the man at the center of today's hearing declined to testify today. former s.e.c. general counsel david becker inherited money from his mother that had been invested with bernie madoff. becker disclosed that fact, but was still allowed to make recommendations about which madoff victims should be allowed to file compensation claims. darrell issa, the chairman of the house oversight committee, called that a mistake. >> i believe, as we look further into the becker matter, we're going to find the s.e.c. failed to have the highest level of care so that public confidence could be maintained. >> reporter: becker told s.e.c. chairman mary schapiro about the investment, and she said she expected becker would disclose the matter to an s.e.c. compliance officer, which he did. >> i did not... because the account was closed years before, i did not think that the account of a long-deceased relative would raise the issue of a con

as darren gersh reports, the earthquake in japan has shown the world just how vulnerable some links in that supply chain can be. >> reporter: whether it's a tablet, a mobile phone, or a digital camera, if it has a memory, your gadget's supply chain probably winds through japan's earthquake zone. plants producing as much as 25% of the world's silicon wafers, especially wafers used to make memory chips, were damaged in the quake. to get by, many chip makers are now relying on their inventory of wafers. that should buy the industry some time, says i.h.s. isuppli's dale ford. >> if it's going to take them more than, say, three weeks to restore that production and that supply, we could start to feel the pinch in the ability to meet the demand in the supply chain. >> reporter: concern over short supplies has already driven the prices of some memory chips up 10%. and shin-etsu and other japanese producers of silicon wafers have provided little information about their status and conditions on the ground. >> usually, you have to build these facilities where you have a stable, strong supply of p

as darren gersh reports, nuclear utilities are not likely to pay it. >> reporter: under japanese law, power companies operating nuclear reactors are responsible for any damage, except in case of a grave natural disaster of an exceptional character. wharton professor howard k urx nreuther expects the massive earthquake and tsunami will be considered a grave natural disaster relieving tokyo electric power the utility and ge the company that built the crippled reactors from liability. >> i think in general from what i understand from the law in japan, the utilities or the plant operators are not really liable for all that much money. and they may not be liable for anything with respect to it ist is an exceptional disaster. so in some sense it will be up to the japanese government which means the japanese tax pay ares in some sense that will have to pay for this. >> reporter: the experience in japan is reigniting a debate in the united states over liability for nuclear accidents. first passed in the 1950s, the price anderson act now caps the u.s. nuclear industry's financial risk at $12.6

darren gersh looks at an industry whose future is now in doubt. >> reporter: at a white house briefing today, regulators would not say whether u.s. nuclear plants could withstand the kind of massive earthquake that has crippled japanese reactors, though they insisted u.s. plants are safe. safe enough, white house spokesman jay carney said, to continue counting on nuclear energy for a growing share of our electricity needs. >> we view nuclear energy as a very important component of the overall portfolio we're trying to build for a clean energy future. >> reporter: but as millions watch reactor buildings exploding and japanese children being tested for radiation, environmentalists like damon moglen says that's not the conclusion the american people will draw. >> i think that what people are really seeing right now is the true cost of nuclear power is that even if they work lots of the time, sometimes they don't. and when they don't, the implications are too horrific to even consider. >> reporter: the nuclear energy institute, which speaks for the industry, considers judgments like that p

darren gersh, "nightly business report." >> susie: speaking of the fed, one of the fed's most candid policymakers is retiring: kansas city federal reserve bank president thomas hoenig. he will leave his post in october after nearly for decades at the central bank. hoenig is known for arguing against the fed's low interest rate policy warning about the risks of inflation. >> susie: heading off to weekend >> tom: stocks ended the week by continuing their recent climb even as trading volume remained light. it was the best week for the major indices in more than a month. the dow industrials rose 3.1% since last friday, thanks to the steady gains since mid-week. the nasdaq added 3.8%, putting in the best performance among the trio. and the s&p 500 rallied 2.7%. the lowest of the three, but still, it was the best week for the s&p 500 since early february. the leading sector this week and today was energy. the energy select e.t.f. added almost 1% today. oil prices remain over $105 per barrel and natural gas rallied. nat gas hit a six-week high. as prices have heated up, energy stocks have t

darren gersh reports. >> reporter: democrats and republicans are now just a few billion dollars apart in negotiations over this year's $1 trillion-plus federal budget. but senate majority leader harry reid says agreement hasn't been reached, because republican leaders face a revolt from the right. >> they seem to be afraid to anger a small, extreme minority in their party that's willing to shut down the government, put the economy at risk of killing at least 700,000 jobs. >> reporter: house speaker john boehner says democrats are more serious about politics than deficit reduction. >> today the democrats got their marching orders about how to try to depict us. we've done our work. instead of them issuing marching orders, maybe they should do is get to work and actually pass a plan. >> reporter: both republicans and democrats say they don't want to shut down the government, but that can't be ruled out when government funding runs out on april 8. it is possible congress will keep adding one week or two week extensions of the deadline, trimming spending a few billion dollars each time. fo

darren gersh, "nightly business report," washington. >> tom: here are the stories in tonight's "n.b.r. newswheel." stocks moved higher; the dow rose 9 points, the nasdaq was up 11, and the s&p 500 gained two. big board trading volume tapered off from yesterday's pace to about one billion shares while nasdaq volume fell below two billion shares. it was another spike in oil prices. april crude futures surged almost 3% to $102.23 a barrel on new fighting in libya. it's oil's highest close in more than two years. and president obama signed a two-week stop-gap funding measure into law. it keeps the federal government running. he urged republican and democratic lawmakers to negotiate a new budget with his chief of staff and the vice president. still ahead, with oil prices over $100 a barrel, "street critique" guest hilary kramer takes a second look at alternative energy stocks. and how would you like to save 50 grand? tips in tonight's "money file." >> susie: another dose of good news today from the auto world, a day after detroit's big three reported strong february sales. autonation, the

darren gersh, "nightly business report," washington, d.c. >> susie: tomorrow, march first, could be a big pay day for investors. our market guest says since january of 2010, the s&p 500 has been up consistently on the first trading day of the month. he calculates if you take out those first-day profits, the s&p would be up only 2.3% over the past 14 months versus the real gain of 19%. joining us now, rick bensignor, chief market strategist at dalman rose, the new york investment firm. you had, rick, nice to you have on the program. >> thanks for having me. >> susie: all right, so this is a very interesting trend. tell us why it's happening and how can investors take advantage of it? >> well there are two things to look at. one is just looking over the last 14 months, the fact that you said that the market is up 19%. but if you take away the first day of 9 month t is only up 2.3% so something is driving the market at the beginning of the month it is most likely some indication that the retail investor has come back into the market over the last year or so. if you think about the money

darren gersh, "nightly business report," washington. >> susie: now that we have a better idea of how bernanke and fed policymakers are dealing with inflation and interest rates, how are central bankers in europe handling these complicated economic issues-- the same way or differently? as erika miller reports, the answer could impact the global economy. >> reporter: whether you are in europe or in the u.s., there's almost no question inflation is creeping higher. the question for central banks is whether to take steps to restrain it. unrest in libya has caused energy prices to skyrocket, and if the trend continues, it could push up prices for other goods and services. the federal reserve is taking the threat in stride, as fed chairman ben bernake told lawmakers today. >> the most likely outcome is that the recent rise in commodity prices will lead to, at most, a temporary and relatively modest increase in u.s. consumer price inflation. >> reporter: the u.s. central bank has less pressure to raise rates than its european counterparts because its mandate is different. the fed is suppose

and as darren gersh reports, it may also change the way wireless companies do business. >> reporter: to really understand what's driving the future of telecom, you need to appreciate the difference between smartphones and what analysts like dan hayes call dumb pipes. >> the fear among the network service providers is that they are being relegated to being dumb pipes, where all they are doing is providing connectivity for voice calls and connectivity to the internet and all the value is being taken by companies like google or applications providers who are really making the money. >> reporter: applications like google voice or apple's ichat threaten to replace traditional landline telephones altogether. telecom giants like at&t and verizon have tried to design their own apps, but hayes says they've mostly failed. so they are now trying new services instead-- phones that control home d.v.r.s and let you watch your favorite shows on the road. the goal, says tech strategist bill whyman, is to create new products as the telecomm companies roll out higher speed, mobile broadband networks.

darren gersh reports. >> reporter: apple isn't saying how much it relies on japanese suppliers in the earthquake zone to churn out ipads and iphones, and that's why technology reporter james rogers says investors are left guessing how the world's largest tech company will cope with any supply disruptions. >> and that makes it tough when investors are looking at apple and apple-related stocks. maybe the terrible events in japan will show just how much apple depends on this country, and i think there's only one way we're going to find that out, and that's if there are problems in the supply chain as we move forward. >> reporter: so why not drop the secrecy and tell the world a little more about what's in your products? experts say apple is tight- lipped for two reasons. first, that's a way to keep suppliers on their toes. and second, a closely guarded supply chain helps apple create drama around it's product launches, says professor steven melnyk, an expert in operations and supply chains. >> if your supply chain isn't secure, if your competition knows what you're going to do, if the me

darren gersh, "nightly business report," washington. >> suzanne: hey, tom, pretty quiet day here at the exchange today as investors are kind of waiting on the sidelines for all these numbers that are coming out later this week, you know, the big one on friday. >> tom: yeah, lots of economic data still to come here this week no doubt about if suzanne, maybe that is why we saw a little lighter volume overall. and just some smaller moves for the major indices. let's get ebb updated with tonight's market focus. >> tom: some small gains to begin the week were erased in the final 20 minutes of the trading day. we begin with today's trading of the s&p 500. here's what the entire day looked at. it opened just below 1,314. the modest gains earlier came on the stronger consumer spending and income data, but the buying disappeared in just before the closing bell. close at the lows of the day. where was the strength? telecom was the strongest sector, thanks in-part to at&t. shares led the dow industrials with this almost 2% gain. it was a week ago that at&t announced its intention to buy t-mobile.

washington bureau chief darren gersh talked with shaun donovan, secretary of housing and urban development. darren began by asking donovan if the housing market is facing a double dip. >> there's though question that we've had some discurrenting numbness the last couple weeks on sales. i think a couple things we should remember here. first of all, the most important thing we can do to get housing in a full recovery is to get the economy back on track and to create jobs. so all that we've done to focus on jobs, to create new jobs, the million and a half new jobs that have been created over the last year is critical as a foundation. beyond that, we have to get the number of foreclosures down. we actually have made significant progress there. foreclosures, people entering foreclosures are down 30 to 40% over where they were a year ago. and one of the things we believe strongly is that we have to clear the uncertainty in the housing market, and that's why the discussions that we've been having to try to settle all of the problems that we saw with the servicers, so-called robo signing, false af

this afternoon, darren gersh spoke with chief operating officer michael rencheck. he began by asking what lessons have been learned from the crisis in japan. >> we'll now take a look at what has happened in japan, not only from the aspects of the earthquake and the tsunami, but also from the response. factoring those lessons learned and how we practice our operations and how our regulations are set up and structure toured here in the united states. >> reporter: is the lesson though that something was wrong with the technology, the way it was manufactured was wrong or that the utility operated it poorly? >> no, let me start from there. bottom line is the technology worked as it was designed to work. when the earthquake happened the plants naturally tripped off line, responding to the earthquake and the systems responded appropriately. when the tsunami arrived, the tsunami ended up flooding some of the electrical buildings, the on site emergency power buildings, and it also knocked off site power out of service. so what you saw for the operators do based on their tra

andrea stone is washington correspondent for aol news, te-milla bay a freelance journalist and darren gershhe nightly business report on pbs. how about a warm applause for all of them. [applause] >> npr usually delivers the news. but in recent months the media organization has been making news itself. last october, npr's decision to cut ties with juan williams infuriated conservative whose accused npr of left-leaning bias. now npr is in the news again because some in congress are working to eliminate federal funding for public broadcasting wiping out federal financial support would be a blow to local member stations and destabilizing for npr itself which celebrates its 40th anniversary on the air next month. this federal funding battle is not the first crisis that the npr president and ceo vivian schiller has faced. when she came to npr in january, 2009, the u.s. economy was unravel as we all know painful well. companies were slashing jobs, the stock market was plunging and consumers were hunkering down. schiller had to her start her npr career just as corporate underwriting was shriveling