. >> intel shares got an initial bump higher in late-day trading, morgan brennan has more, morgan you know our question, what is the one take-away you see from intel's earnings? >> yes, a good question, the investors were really watching intel's numbers very closely, because not only does it kick off numbers for the sector, intel is the biggest chip maker in the world. in the past week we've seen a dramatic selloff in the chip stocks after another semiconductor company, micro chip warned about the collection coming from the entire industry, intel said no, that is not the case, intel is forecasting sales that are higher than analysts' current expectations. what is even more interesting, intel's stronger numbers are tied to a rebound in demand for personal computers which have suffered over the past several years with the advent of apple's ipad. seeing the strong demand even in the current quarter for those chips. that is a relative positive commentary about intel's chips but also something that is like live going to push the entire semiconductor group higher tomorrow. and also potentia

for "nightly business report," i'm morgan brennan in new york city. >> shares of the beverage giant bubbled up. they fizzled out and had to. pepsico raising the earnings, and the quarterly profit, beating wall street expectations. the company says the smack sales which include brands like frito lay, pepsico has been urged by an activist investor to spin off the snack beverage. shares ended at 93.57. endo international buying the pharmaceuticals for more than $2 and a half billion. they value it at a 12% premium. it was a rough day for endo, 6% lower at 66.78, axiliiom up. and kendra buying gentiva who provides home health and hospice services. shares of both companies ending higher. kendra finishing at 20.75. gentiva up to 19.49. >>> allergan, the maker of botox says it is under-valued, it has been reported that allergan raised the bid. shares closed at 187.55 apiece. amazon, the 800-pound guerilla wanting to open the first brick and mortar store. opening in manhattan across from the empire straight building. the store would also reportedly function as a mini warehouse with limited inventor

for "nightly business report," i'm morgan brennan. >>> we begin the market focus tonight with sfoopfizer announca buyback, this is in addition to what is remaining on the current buyback program which works out a little over a billion dollars. on top of that, the drug maker will return more crash to shareholders, payable in december. shares spiked when the news came out after the bell, the stock up 1% closing at 28.60. >>> an improving housing market, home builder's third quarter profit and revenue topped estimates thanks to improving economy and higher selling profits. it hiked the quarterly dividend to 8 cents a share and announced a plan to raise its share buyback program by $750 million. shares popped almost 2% to 19.51. >>> eli lily is one company to didn't participate. the earnings plunged almost 60% hurt by special charges and generic competition for the depression drug. the company is still optimistic when it comes to the u.s. but the ceo says that europe is another story. >> i thinky. europe is a bit mo of a challenge as the economy sort of remains stuck in many countries in eur

morgan brennan joins us with more on the earnings. what, morgan, is the big tiake away? >> we see this, something we've talked about on this program played out in the results but i think one of the more surprising take aways is the upstream business, it's mining operations, the production of aluminum. we saw a really strong beat in this earnings report and interesting because we've seen aluminum production hit so hard in the recession and it's really flounders since then for alcoa and other aluminum makers and we saw the strongest performance for the primary medals segment since before the downturn and i think at a time when investors are worrying about slowing growth in china, europe teetering on the edge of recession to see stronger output for actual aluminum production is a very promising stat especially in light of the fact the company reiterated the 7% global growth demand outlook for aluminum. >> they have been sticking to that number. >> they have been. it's promising. >> thanks very much. morgan brennan reporting. >>> the 18-month turn around at j.c. penney hitti

morgan brennan joins us now with the one big take-away from the numbers. >> well, it is paid clicks, the number you just mentioned and the fact we see google's core growth continue to slow down. how do you measure that, it's paid clicks, 17% increase versus last year, analysts expected it to be a 23% increase, in recent quarters we saw that number as high as 30% so that is why you are seeing the stock move lower in after hours. the one brave spot is the cost per click, the revenue brought in on those clicks actually only declined 2%, analysts expected a decline of 4% which is closer to what we've seen in recent quarters. even though that was a negative number that was the one bright spot. >> very quick, what is a paid click? >> so you're talking about the total number of advertising clicks, what people are clicking on when they go to google. >> they're hitting the ads, seeing the ads. >> and that is google's core business, we talk about drones -- but that is it. >> morgan, thank you very much, morgan brennan. >>> here is another story over at goldman sachs which reported blowout earn

morgan brennan has more from lafayette, indiana. >> what are some of the products you are making here? >> so what this plant does is make aerospace product going into commercial airplanes, military airplanes and other defense applications. and this plant is particular, makes the most advanced aluminum lithium alloy. >> this is alcoa's brand-new lithium facility, the biggest in the world. the plant will generate 44 million pounds of the lightweight super strong alloy in years, also to be used for aerospace. parts will be managed for boeing and air stream, and the partner with alcoa for a brand-new invention. >> what we did over seven years of development with whitney, just a technical collaboration, we created a fan blade that changed the game, lighter than titanium, cheaper than titanium. >> aerospace is a high growth, high space margin business. the back log means the business will last a long time. but perhaps most importantly it is not a revenue stream hurt by the weak aluminum prices that hit alcoa and its competitors so hard since the recession. >> if you can be on the cutting ed

more than morgan brennan. >> reporter: it was a solid quarter for united parcel services, boosted by u.s. consumer and business demand as well as strong growth in asia. but the bigger focus was on something else. the plan for holiday peak season. >> on our front because of e commerce and the volume we get we expect an 11% increase in shipments in the month of december. so we'll be very busy this year. >> reporter: that projection comes on the heels of fedex nearly 9% forecast. the national retail federation expects heavy holiday spending withdrawic on-line shopping. that puts pressure on the shippers, last year, an estimated 2 million packages missed christmas after an on-line spike in shopping. that resulted in higher costs, and eroded consumer confidence, none less than ups, but analysts have higher hopes for the company this year. >> ups struggled a bit more than fedex last year, it is rare to see this company stumble, that is true we expect high performance from ups and they routine listen deliver. it compares to about 7% margins with fedex, so still ups is a strong leader. >> re

morgan brennan has a look. it has been a rough month, with the cap down 10% from the july high. investors have watched the group closely because they are seen as an indicator for the broader market. but this week, the index saw something of a rally, out-performing the dow jones and the s&p 500 in what was a very difficult week for stocks, some experts say this could be the start of a new trend, for small caps, possibly for the markets. >> we've seen the bottom in that we're going to have a pretty good fourth quarter in terms of performance. the goal is to get back to at least break even for a first cap performance on a year to year basic. >> small caps with 300 million to $200 billion, the high momentum tends to experience bigger swings in the larger blue chip stocks, but unlike the companies on the dow the small caps drive more than 80% of their revenue on average from the u.s., so are more insulated from currency and stronger dollar. analysts say small caps look expensive for the rest of the year but the recent sell-off makes them for fairly valued. as investors worry about th

morgan brennan joins us from the nasdaq with a closer look at this key sector. morgan, just start off by telling us that, they've fallen. why have the semiconductor stocks fallen so much since their height in september? >> it's a great question. semiconductors has dropped dramatically over the last month but we've seen the lion's share of those losses in the past week alone. this is on the back of micro clip technologies, one of the smaller semiconductor stocks in this space relatively speaking. a $9 billion market capitalization. the company coming out last thursday and warning on revenue for the third quarter citing weaker demand in china and the ceo saying the overall industry is on track for a correction, on track for a pullback, that has sent all the chipmakers down in response to that including intel that's down another 1% today, down 8% in the past week. investors will be watching that very closely because of those comments last week. >> morgan, why should investors watch semiconductors as opposed to any other industry. >> we're talking about the chips tha

morgan brennan is here with that story and cnbc business news. od morning. well, futures are pointing higher this morning after investors are sorting through a plethora of company's quarter earnings report and keeping a close eye on that price of crude oil. an average price of a gallon of gasoline $3.04. ford will cut the price of its focus electric model and that is in addition to the $4,000 that they slashed last year. due to that dropping price at the pump. making it more difficult to persuade buyers to purchase electric cars. once again, the company lexus and toyota brands lead the survey and mazda join the top ten and buick was the only american brand to crack that top ten list. back to you. >> morgan brennan, thanks. >>> a cool start this morning, but not as cold as yesterday. we do have some clouds over the city, but no sign of rain. not today anyway. right now it's 51 degrees at 5:25. first alert traffic reporter jillian mele is watching the roads. how are we doing out there, jillian? >> not too bad. a live look at 95 right at girard avenu

morgan brennan has more for the company. >> reporter: it's the company known for ski balls, cocktails and a mountain of nachos, the ceo, steven king, says there is room for more. >> the sales are strong kind of leading the way in casual dining. the margins are better and the pipeline for new store growth is on track. >> dave and busters is across the u.s. and canada breaking this business down into two parts, dining, food and alcohol, and amusement parks, these games account for more than 50% of the company's $636 million in revenues and helps to offset the volatile commodity prices associated with the restaurant and is much less expensive to run. although most analysts have not yet officially begin covering the stock, many say it will fall under the casual dining. and the amusement segment will mean access to movie parks and themes as well. >> most of them are serving food, primarily. there is not much entertainment within the restaurant space in terms of dine in and flow of entertainment. so dave and buster's is fairly unique in that standpoint. >> even so they're going through duri

>> number one. >> reporter: for "nightly business report," i'm morgan brennan. in cleveland, ohio. >>> and that is "nightly business report" for tonight, thank you for joining us. i'm susie gharib. >>> cleveland's own susie gharib. i'm tyler mathisen, have a great evening, we'll see you tomorrow. >>> "nightly business report" has been brought to you in part by the street.com featuring stephanie link who shares her investment strategies, stock picks and market insights with action alerts, plus, the multi-million dollar portfolio she manages with jim cramer. you can learn more at the street.com sla >>> announcer: the following kqed production was produced in high definition. ♪ >> must have soup! >> the pancake is to die for! >> it was a gut-bomb, but i liked it. >> i actually fantasized in private moments about the food i had. >> i didn't like it. >> you didn't like it? >> dining here makes me feel rich. >> and what about dessert? pecan pie? sweet potato pie?

>> number one. >> reporter: for "nightly business report," i'm morgan brennan. in cleveland, ohio. >>> and that is "nightly business report" for tonight, thank you for joining us. i'm susie gharib. >>> cleveland's own susie gharib. i'm tyler mathisen, have a great evening, we'll see you tomorrow. >>> "nightly business report" has been brought to you in part by the street.com featuring stephanie link who shares her investment strategies, stock picks and market insights with action alerts, plus, the multi-million dollar portfolio she manages with jim cramer. you can learn more at the street.com sla >explore new worlds and new ideas for programs like this. made available for everyone through contributions to your pbs station from viewers like you - thank you. >>next, rock legend ronnie spector and jon "bowzer" bowman bring your favorite rock, pop and doo wop memories back to the stage in an all new "my music" pbs special. ♪ won't you please - be my little baby - ♪ ♪ step by step, i fell in love with you - ♪ ♪ i wonder, wonder who wrote the book of love? ♪ ♪ only yo

for "nightly business report" i'm morgan brennan. >>> some good news for toyota which reaffirmed its position as the world leader in auto sales. they sold 3 mrs more than a year ago and beat out volkswagen and general motors for that title. >>> consumer reports magazine is out with its annual list of the most and least reliable new cars. here they are. the top spots the scion and the lexus and the lexus es-300-h hybrid. the bottom of the list, the ford fiesta and the mercedes-benz cla 250. the biggest problem this year, infotainment systems and incar electronics that don't function properly. all those bugs and glitches you get when you have too many electronics. >> the three of the top were all toyota brands, which toyota leading the top selling car. >> good time for toyota, after a long time. that's "nightly business report." thanks for watching. i'm susie gharib. >> i'm tyler mathisen. we'll see you right back here tomorrow. >>> "nightly business report" has been brought to you in part by -- >> thestreet.com. featuring stephanie link who shares her investment strategies, stock pick

>> number one. >> reporter: for "nightly business report," i'm morgan brennan. in cleveland, ohio. >>> and that is "nightly business report" for tonight, thank you for joining us. i'm susie gharib. >>> cleveland's own susie gharib. i'm tyler mathisen, have a great evening, we'll see you tomorrow. >>> "nightly business report" has been brought to you in part by the street.com featuring stephanie link who shares her investment strategies, stock picks and market insights with action alerts, plus, the multi-million dollar portfolio she manages with jim cramer. you can learn more at the street.com sla >> this is "bbc world news." >> funding of this presentation is made possible by the freeman foundation, newman's own foundation, giving all profits to charity and pursuing the common good for , kovler foundation, and union bank. >> for 150 years, we have believed a commercial bank owes its clients strength, stability, security. so we believe in keeping lending standards high, capital ratios high, credit ratings high.

morgan brennan takes a closer look at what's driving the slowdown and how it's getting rid of one of its struggling divisions. >> ibm has been struggling to reinvent itself as it shifts away from hardware to newer higher growth industries like cloud computing. but today's quarterly earnings did little to assure investors that the transition is going to plan. big blue's profit and revenue sharply missed analysts' expectations. thanks to slowing sales in hardware and services. the company also announced it's scrapping its five-year plan to grow profit, an ambitious goal that was supposed to be realized next year. >> ibm, unfortunately, is saddled with two-thirds of their business that's incumbent. very difficult to make that pace of change at a pace that investors will be happy with. this will be a story we'll probably be talking about for a while. >> the report marks the tenth straight quarterly drop in revenue for ibm. but the company announced it's shedding another hardware business, micro electronics or its semiconductor manufacturing operations. in an unusual deal that will pay ch