. >> i'm erika miller in new york. still ahead, i'll show you the hottest toys your kids may be asking for this holiday season. >> it's been four years since bank of america bought merrill lynch. today, b of a agreed to bay $2.4 billion to settle an investor lawsuit. shareholders claimed bank of america hit facts of the buyouts such as losses of merrill lynch and billions of dollars in bonuses. they settled to eliminate the uncertainty, burden, and expense of further litigation." this doesn't end legal problems for bank of america. it still faces lawsuit for mortgages of countrywide which they bought. >> they will say, this is a huge settlement by all standards and what about other settlements. are they going to be so anxious to get rid of them that they'll settle out for big numbers and you can only do some of the settlement. >> the settlement will be covered by money bank of america has set aside and there's an additional $1.9 billion in charges coming. leading the third quarter charges of will 3.5 billion, and that

. >> reporter: i'm erika miller in new york. coming up, we'll hear from italian prime minister mario monti on the future of the euro. is italy better off with the euro or without? there was a time not so long ago the blackberry device was a korpts status sim bon then came itsix phone and android system. after the closing bell research in motion reported it lost money for the third quarter in a row. but it lost a lot less money than feared. losses were 27 cents per share, that's about 20 cents less than analysts estimate. and perhaps most encouraging after months of delays the company said its newest blackberry device is still on track now to launch in the first quarter of the year. colin gill sis with us, senior technology analyst at bgc financial, he joins us from that firmment dow agree, results not as bad as feared? >> absolutely. its company lives to fight another day. when you look at the results, there were several glimmers of positive notes you could take away including an increase in the cash position and an increase in

. >> reporter: i'm erika miller in new york. coming up, i'll take you back stage to meet nanette lepore, whose designs will soon be coming to a mass market retailer. >> susie: a big change for the dow today as stocks extended their fed rally. kraft foods is being dropped from the dow jones industrial average, we'll have more on the changes in a moment. the blue chip average closed at its highest level since december of 2007. the dow rose 53 points, the nasdaq added 28, and the s&p up nearly six. the major averages gained ground for the second week in a row. the dow in with the biggest weekly pop, up over 2%. back to that big change for the dow 30, kraft is out and united healthcare is in, reflecting the growing role of healthcare in the economy. it's the first change to the industrial average's roster in three years. today's move comes as kraft prepares to split its business into two parts. the global snack maker is spinning off its north american grocery brands into a separate publicly traded company. >> we had to do something

erika miller reports from new york. >> reporter: in a predictable ritual, apple fans camped out overnight to get their hands on the new iphone 5. many are loyal apple fans, eager to upgrade: what features are you most excited about? >> the screen-- the larger screen, the camera, i'm interested to see what that looks like once i start to take pictures and things like that. >> reporter: some came at the behest of their kids. >> i balked at first because their phones are perfectly good. and they work perfectly well. and it was only because my son is turning 12 that he gets a phone that year. so we decided to upgrade the whole family. >> reporter: unfortunately, she could only get two of the four phones she wanted. >> the 32 megabytes in black and white are sold out. they're gone! >> reporter: but for all the hype, apple was still advertising the older 4-s version its store today. the company is also facing backlash against its new map app. the software replaces google maps and websites have already sprung up mocking apple's innacuracies. but that controversy didn't seem to hinder sales today

as erika miller reports, that forecast is not just bad news for transportation companies, fedex's gloomierutlook casts a shadow over just about every industry. >> reporter: fedex is no ordinary stock. the company delivers packages to over 220 countries, reaching 95% of global g.d.p. >> fedex has a good view into every aspect of the global economy, and what they are saying is that it's slow everywhere. >> reporter: fedex is also watched closely because it has an unusual fiscal year. it wrapped up its first quarter on august 31. so today's report gives one of the first readings on business conditions during the summer. fedex chief fred smith delivered the bad news. >> while fedex ground and fedex freight improved their profitability in the first quarter, the slowdown in the global economy and global trade constrained revenue growth at fedex express and affected overall earnings. >> reporter: fedex also lowered its 2013 g.d.p. forecasts. it now expects u.s. economic growth will be under 2% next year. globally, it sees g.d.p. growth at 2.7%. economists say that may be optimistic. >> things cou

erika miller takes a closer look behind the numbers and gives us a status report on the housing recovery. >> reporter: when it comes to real estate, august is typically a slow month, but the latest housing data suggests there was strong momentum heading into the fall. the median price for a home resale surged to $187,400 during the month. that's up nearly 10% from a year ago-- the biggest year-over-year price increase since the housing boom went bust. that wasn't the only encouraging sign. distressed properties are declining as a percentage of total sales. 22% of sales in august were foreclosures and short sales. a year ago, the level was 31%. record low mortgage rates get some of the credit for encouraging home buying. >> definitely, they are helping at the margin. obviously, that's helping to hold the refinance activity. but also to move the mortgage market. >> reporter: the housing market appears to be gaining traction, even as the economy loses momentum. but there are still plenty of hurdles that will keep the real estate from recovering quickly. one is tight lending standards. banks

erika miller, nbr, new york. >> tom: another warning today about the threat of the fiscal cliff. credit ratings agency moody's said today keeping the u.s.a.'s triple-a credit rating hinges on getting a deal in congress to cut the nation's massive debt load. if budget negotiations lead to specific policies cutting the ratio of federal debt to gross domestic spending, then moody's says it will affirm the country's triple-a credit rating and change its outlook on u.s. debt back to "stable." if there's no deal to avoid the automatic spending cuts and tax increases, moody's said it will be forced to slash ratings. the warning did not hurt demand for government i.o.u.s. the treasury department had record demand for three-year notes auctioned off today. the federal reserve also has talked about the risks to the economy presented by the fiscal cliff. the central bank's policy makers begin a two day meeting tomorrow, not about the fiscal cliff, but rather monetary policy. one change expected to be discussed is whether the fed should promise to keep interest rates low into 2015. here's the

erika miller takes a closer look at whether the new iphone will be fruitful for apple. >> reporter: this is the new device that could upset the apple cart in the smartphone industry. apple c.e.o. tim cook unveiled the iphone 5 in san francisco. and it has new features designed to fend off competition from rival android phones. >> it is an absolute jewel. it is the most beautiful product we have ever made bar none. >> reporter: now the nitty gritty: the phone is made entirely of glass and aluminum. so it's 18% thinner, and 20% lighter than the last version. it has a larger four inch screen, and a faster data connection. >> the apps on the phone constantly communicate with the network. so if the connection is slow, the phone will be slower. with these faster data connections, people will find that using their phone-- the phone itself will be more responsive. >> reporter: for customers who sign two-year service contracts, the phone will range from $199 to $399. so where does the iphone 5 fall short of the hype? >> you've heard of this ewallet functionality-- using your phone to pay at the r

erika miller, "n.b.r.," new york. >> reporter: this is darren gersh. the president cast the august jobs report as another positive step on the long road towards recovery. >> today, we learned that after losing 800,000 jobs a month when i took office, business once again added jobs for the 30th month in a row, a total of more than 4.6 million jobs. >> reporter: the turnaround was dramatic, but measured against the number of jobs lost in the great recession, the president's policies have only gotten the nation part of the way back to normal. >> a recovery package that was only ever intended to generate around three million jobs when you are fighting something that is going to make you lose eight million jobs, that's just not enough. >> reporter: the administration argues the president would have done more, but he got no help from republicans in congress. >> the president has been focused on taking steps to strengthen the economy, to strengthen job growth, he's worked with congress to do this, he has asked congress for more assistance to help the economy,

." >> reporter: i'm erika miller in new york. still ahead, i'll look at how the outcome of the presidential election could impact gold prices. i'll interview gold trader anthony neglia. >> tom: european markets tumbled as greek workers called a 24 hour strike to protest new austerity measures. over 50,000 people gathered to protest new salary and pension cuts, near the parliament building in athens, and some of the protests erupted into violence. on wall street: the dow fell 44 points, the nasdaq lost 24, and the s&p down eight points. >> tom: radio shack shook up its executive ranks today, as the troubled retailer looks to survive in an increasingly crowded market place. >> for the first time ever save $5 on our original pocket realistic weather radio, now on sale at radio shack stores only $10.95. >> tom: today, weather is a just a click away on a smart-phone. after little more than a year as c.e.o., james gooch is out, leaving the company and giving up his seat on radio shack's board of directors. the decision was called mutua