nice to see you again. >> thank you, tom. >> tom: the stocks were able to fight off the european worries, and then the unemployment rate, and why go defensive at all? >> the time to go risk was in august when evaluations were low and investors were worried about a double dip in the economy. now that you've had a big rally in stocks and the expectations were higher, i think it is a good time to be prudent. as you know, most of our clients, as far as very risk adverse. now is a time to look at income, pull in the horns a little and take some profits, and not chase stocks with undo high risk. >> tom: what about evaluation in the fixed income space. we've seen bond yields move up. why not going defensive there? >> i think as interest rates go up, which is a possibility here because the fed is artificially pressing interest rates lower -- you know, there is more risk in bonds, and the reward potential is very low. so actually in our managed accounts, we have less exposure in fixed income than any time in our history. >> tom: so record low in terms of exposure to bonds. do you expect a rally t

tom, why, you ask? a lack of consumer confidence amid high unemployment, and many people already have at least one flat panel t.v. i don't even want to tell you how many i have in my household. >> tom: sometimes one is enough. it all goes back to supply and demand. >> suzanne: absolutely. that's "nightly business report" wednesday, december 8th -- >> tom: i'm tom hudson, thank you for joining us. and we hope to see you right back here tomorrow night. "nightly business report" is made possible by: captioning ]abt captioned by media access group at wgbh access.wgbh.org >> more information about investing is available in "nightly business report's" video "how wall street works". to order this dvd, call 1-800- play-pbs or visit online at shoppbs.org. >> be more. pbs.

tom, president obama signed today the sweeping tax bill into law. >> tom: susie, the signing came just a day after the house of representatives voted in favor of the $858 billion bill. the president said this is relief that's going to help families pay their bills. >> over the course of 2011, 155 million workers will receive tax relief from the new payroll tax cut included in this bill, about $1,000 for the average family. this is real money that's going to make a real difference in people's lives. >> susie: meanwhile, the incoming house speaker john boehner says he's glad congress extended the bush tax cuts. but he still doesn't think the bill will be enough to jump-start the economy. he says americans will continue to be uncertain about growing their businesses, until the government makes the tax cuts permanent. so while he voted for the legislation, boehner says congress still has lots to do. >> it's a good first step, but if we actually want to help get our economy back on track and to begin creating jobs, we need to end the job killing spending binge, we need to cut spending signi

good night, everyone, and good night to you, too, tom. >> tom: good night, susie. i'm tom hudson.good night, everyone. we hope to see all of you again tomorrow night. "nightly business report" is made possible by: this program is made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org >> be more.

i'm tom hudson. good night everyone. you too, susie. >> susie: goodnight tom. i'm susie gharib, we'll see all of you again tomorrow evening. "nightly business report" is made possible by: this program was made possible by contributions to your pbs station from viewers like you. captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org >> more information about investing is available in "nightly business report's" video. to order this dvd, call 1-800- play-pbs or visit online at shoppbs.org. >> be more. pbs.

, tom, it is nice to be here. >> tom: what makes you so optmistic about the economy? >> we're entering the new year with g.d.p. at a record and corporate profits as a record. we see strength across a broad number of industries. all industries, outside of housing and construction, showing improvement. >> tom: is the recovery sustainable, however, if the government and federal reserve support begins to wind down or even is lessened in the next year? >> i'm not worried about this. this is a $14 trillion economy. once the momentum starts, it is going to be hard to stop. i don't really worry about the withdrawal of stimulus because, you know what? it means the patients leaving the hospital. it means the economy will be self-sufficient. if the economy is not doing well, believe me, berbernardo bern is going that to be there supporting it. >> tom: early in the program we detailed the interest. what's the category g.e. >> continued broadening in the economic recovery. this is a stock that was $6010 year60 ten years ago. and the stock is 17. you get industrial businesses, heal

this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by: this program is made possible by contributions to your pbs station from viewers like you. captioning sponsored by wpbt >> tom: good evening and thanks for watching. susie gharib is off tonight, and she's missing out on an historic storm in the eastern section of the country. snow, snow and more snow. the massive storm stranded travelers, closed roads and made it impossible for people to get to work-- or the mall. all three new york city-area airports have been closed all day. just now starting to reopen. nearly 1,000 flights there were cancelled today, and passengers are expected to be stranded for days. one airline analyst predicts the storm and its aftermath could end up costing the airlines alone as much as $100 million. 30 inches of snow has fallen in some places, and for already cash-strapped municipalities this storm is bad news. in new york city, for example, storm cleanup generally costs the city $1 million per inch of snow. but,

i'm tom hudson. good night everyone. you too, susie. >> susie: goodnight tom. i'm susie gharib, we'll see all of you again tomorrow evening. "nightly business report" is made possible by: this program was made possible by contributions to your pbs station from viewers like you. captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org >> more information about investing is available in "nightly business report's" video. to order this dvd, call 1-800- play-pbs or visit online at shoppbs.org. >> be more. pbs. >> so, ah, your seat good? got the mirrors all adjusted? you can see everything ok? just stay off the freeways, all right? i don't want you going out on those yet. and leave your phone in your purse, i don't want you texting. >> daddy... ok! ok, here you go. be careful. >> thanks dad. >> and call me--but not while you're driving. we knew this day was coming. that's why we bought a subaru.

and tom, this could be the beginning of a long legal battle. >> tom: susie, it was the individual mandate part of the law that was declared unconstitutional. that's the requirement that citizens buy health insurance beginning in 2014, or pay a penalty. virginia's attorney general challenged that part of the law and today u.s. district judge henry hudson became the first judge to rule against the law. but he refused to put the entire law on hold while it faces legal challenges. >> susie: meanwhile, thehite house said today, it's confident the health care law is constitutional. it's believed that the u.s. supreme court will ultimately end up settling the issue. what does all this mean for businesses, and you? joining us now? mary agnes carey, she's senior correspondent for kaiser health news, a national health care news service. hi, mary agnes. >> hi there. >> susie: so what do you think, will this ruling be upheld? could it become the law of the land? >> well, we've have to see. there are certainly a lot of argument on both sides. the administration would point out and they did point out t

. >> tom: we talk with the top boss at u.p.s. who heard from the president today about getting corporate cash into the economy. you're watching "nightly business report" for wednesday, december 15. this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by: this program is made possible by contributions to your pbs station from viewers like you. captioning sponsored by wpbt >> susie: good evening everyone. the senate passed the tax cut bill today. now it's up to the house of reesentatives to vote on it. >> tom: they could vote as early as tomorrow. the legislation would extend bush era tax cuts for two years for all americans. it would also cut the employee's share of payroll taxes for one year. the idea is to kick start the economy. >> susie: president obama also called on top american business leaders for help. meeting in washington today with 20 c.e.o.s, including american express, general electric and google. the president asked them to hire more, and to spend some of the

tom, the president spoke moments -- some time this evening tentative deal with republicans. >> tom: susie, here's what we know so far. the deal would extend the tax cuts for two years for everyone, including the wealthy. it also renews the estate tax, hitting estates valued at over $5 million with a 35% tax. the deal also renews recently expired federal jobless benefits for 13 months. >> susie: darren gersh is following this story and joins us now from our washington bureau. darren, tell us what else you are hearing about this deal. >> well, first of all i think we should say right off the bad that this could go a long way towards relieving some of the uncertainty that people have been complaining about in the economy's, small businesspeople, other businesspeople when they make their clan plans. now one of the new and interesting points in this is that there is a payroll tax holiday for employees. that's the first 2%, 2 percentage points of the payroll tax which would boost hiring, the white house would hope, and so as an example for somebody making up to 40,000 dollars, we don't know whe

happy new year. >> thank you, and to you too, tom. >> tom: let's start with the overall market prediction. a year ago you thought the sp would be up about 3%. it's up 13% so far. next year you think the sp will hit 1400, that would be a 10% jump from tonight's close. what's the fuel? >> the fuel is that the united states economy is healing. maybe not healthy, but it's healing fast enough that assets are starting to transfer into equitys and we're also seeing a safety play from the rest of the world, especially europe, that's looking for a more risk-free bet. >> tom: that means you also think that bond prices will move down, thus fueling interest rates moving higher. right now the 10-year yielding just over 3%. you think that will climb to 4%. and you see oil prices in the triple digit range and we are less than $10 away from that tonight. so $100 oil, could it go higher? >> oil can certainly move higher. there's insatiable appetite across the emerging markets,es china, for example where they've become a net imimportanter of cole, for example. >> tom: and you like china when it comes to en

and have a happy holiday, tom. >> tom: you as well, suzanne, i'm tom hudson, thanks for joining us. happy holidays, eve "nightly business report" is made possible by: >> investing takes perspective it comes from navigating up and down markets for 60 years, spotting opportunities at home and abroad. global investing from franklin templeton investments, gain from our perspective. >> and by exxon mobile. this program was made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org >> more information about >> more information about investing is available in nbr's video, how to invest in mutual funds. to order this dvd call 1-800-play pbs or visit on-line at