TYLER MATHISEN, NIGHTLY BUSINESS REPORT ANCHOR: Emergency funding.
The European Central Bank extends a financial lifeline to Greece, taking pressure of the country`s banks, at least for now.
SUE HERERA, NIGHTLY BUSINESS REPORT ANCHOR: Heavy-duty changes. The government moves to slash truck emissions, but at what cost to the industry?
MATHISEN: Market monitor. Why our guest tonight is making a big bet on small caps in what some consider one of the market`s riskier sectors.
All that and more tonight on NIGHTLY BUSINESS REPORT for Friday, June 19th.
HERERA: Good evening, everyone, and welcome.
A triple-digit decline to end the week, we`ll have more on that in just a moment.
But we begin tonight with the critical weekend for one of the market`s biggest concerns, Greece. The European Central Bank increased emergency lending to that country`s banks. The move came on reports that a growing number of savers in Greece began withdrawing their deposits as the standoff between Greece and its lenders over a debt agreement drags on, and it could all come to a head when Eurozone leaders come together Monday for an emergency meeting.
Michelle Caruso-Cabrera has more now from Athens.
MICHELLE CARUSO-CABRERA, NIGHTLY BUSINESS REPORT CORRESPONDENT:
Greece and its creditors remain at an impasse when it comes to negotiations for a deal that would unlock 7 billion euros worth of bailout money for the country.
In the meantime, as those negotiations stall, the country`s banks are under very intense pressure. “Reuters” reports that yesterday and today, more than 2 billion euros have been withdrawn from the Greek banks.
The ECB, the European Central Bank, had to step in for the second time this week and get more liquidity to the Greek banks. That essentially means that Greece will still be able to withdraw cash from ATMs over the weekend and probably through Monday as well.
But there`s going to be another decision from the ECB about whether or not they`re going to continue supplying cash to the system, because they too are waiting to see a deal. If no deal gets done, if Greece ultimately leaves the euro, the European Central Bank would be on the hook for more than 100 billion euros.
So, they`re in a difficult situation. They`re waiting to see the outcome of the big summit on Monday night, where all the European leaders get together to discuss what can be done if anything.
The president of the group calling for that summit, Donald Tusk, said today that Monday night`s meeting isn`t about coming up with a solution.
In a very ominous video statement, he said Monday`s meeting is about everyone being clear that they understand the consequences of their decisions.
DONALD TUSK, EUROPEAN COUNCIL PRESIDENT: The game of chicken needs to end, and so does the blame game. Because this is not a game and that there`s no time for any games.
CARUSO-CABRERA: Time is running out because we`re only 11 days away from June 30th. That`s the day that Greece has to repay the International Monetary Fund, the IMF, more than 1.5 billion euros. They say they`re not going to pay it back unless there`s a deal.
That`s also the day that their bailout agreement officially expires, and as a result, there some legal implications there which could force the ECB to officially cut off the banks.
It`s becoming a very critical time for Greece and Monday could be pivotal.
For NIGHTLY BUSINESS REPORT, Michelle Caruso-Cabrera, Athens, Greece.
MATHISEN: Meantime, Greek Prime Minister Alexis Tsipras isn`t in Athens. He`s in Russia, where today he addressed the economic forum hosted by President Putin, who also had a lot to say about the state of Russia`s economy.
Geoff Cutmore has more now from Saint Petersburg.
GEOFF CUTMORE, NIGHTLY BUSINESS REPORT CORRESPONDENT: There were a couple of key messages that President Putin wanted to put across in his speech, one is the Russians are finding other ways of working around the sanctions, with things like import substitution. And the other message was, this is an economy where you can still come into business.
VLADIMIR PUTIN, RUSSIAN PRESIDENT: Russia is open for the world. We are open for economic scientific and humanitarian interaction. We are open for contacts (ph) with the civil society representatives and businesses from all over the world.
CUTMORE: In spite of the ongoing crisis involving Greek debt negotiations, Prime Minister Alexis Tsipras shared the stage with President Putin, and use the opportunity just to remind the E.U. why the organization was set up in the first place.
ALEXIS TSIPRAS, GREEK PRIME MINISTER: European Union should go back to its initial principles of solidarity, justice and social justice, insuring strict economic measures will lead us nowhere, the so-called problem of Greece is not just Greece problem, it is the problem of the whole European Union.
CUTMORE: Apart from those comments about the E.U. working together, Alexis Tsipras was short on criticism and said very little that might jeopardize a debt deal for the Greeks.
President Putin said very little also that might be perceived as saber-rattling and a response to the current escalation up of sanctions.
This is Geoff Cutmore for NIGHTLY BUSINESS REPORT in Saint Petersburg, Russia.
HERERA: On Wall Street, the major indices ended near their lows of the day, with the Dow posting a triple-digit loss amid concerns about Greece.
The Dow Jones Industrial Average fell almost 100 points to close at 18,015. The NASDAQ off by about 16 points and the S&P 500 shed 11.
Despite that, all three averages were higher for the week with the S&P and the NASDAQ turning in their best performance since April.
MATHISEN: Well, the president the San Francisco Fed says a rate hike will likely happen this year. But he wants to see stronger signs of inflation before he goes for it. John Williams, the first official to speak publicly since the Central Bank`s policy meeting earlier this week, says he`s in wait-and-see mode.
(BEGIN VIDEO CLIP)
JOHN WILLIAMS, SAN FRANCISCO FED PRESIDENT: With the economy reaching full strength, we should start seeing signs that underlying inflation trends are coming back up.
But so far, that`s just a forecast. It`s not a reality. In that regard, the recent inflation readings to my mind are just OK. OK is a very technical term. But I have yet to see convincing signs that the underlying trend in inflation has really bottomed out and poised to move back to a 2 percent goal.
(END VIDEO CLIP)
MATHISEN: Williams also said he is seeing solid improvement in the labor market as wage growth starts to rise.
HERERA: A big day for IPOs is setting up an even bigger week ahead.
Investors snatched up shares of Brazilian steakhouse chain Fogo De Chao in its debut. This is one of many recent restaurant IPOs that Wall Street has cheered. The CEO says his success can be attributed to a winning formula.
(BEGIN VIDEO CLIP)
LARRY JOHNSON, FOGO DE CHAO CEO: This is a big day for the company and I think it just shows that when you bring out a unique differentiated concept, when you perfect it, when you take it to different markets and the public response, you know, the result is what we`re seeing today. So, we`re excited.
(END VIDEO CLIP)
HERERA: Meantime, Mindbody got off to a disappointing start. That company, which makes software for wellness firms, spas, and beauty salons fell on its first day of trading. The CEO, though, says he`s not worried about the disappointing open.
(BEGIN VIDEO CLIP)
RICK STOLLMEYER, MINDBODY CEO: We`re not going to get distracted by other noise in the stock market. You know, our focus right now is continuing to grow the business around the world. We`re the leading platform for the health and wellness industry services. We`re really happy where business is going right now, and it`s a great time for us to go public.
(END VIDEO CLIP)
HERERA: By the close, shares a Fogo De Chao soared nearly 29 percent, while Mindbody was of 17 percent.
And that`s really just the start. Next week promises to be a big one for new issues as well.
Bob Pisani has more from the New York Stock Exchange.
BOB PISANI, NIGHTLY BUSINESS REPORT CORRESPONDENT: The IPO market is finally starting to get going. Next week will be the biggest week of the year. Roughly 14 companies are slated to go public and will likely raise north up to $2 billion.
Why is the market finally starting to heat up? The single most important factor is positive returns for investors. With the overall market still relatively healthy, IPOs have also done well. The Renaissance Capital IPO ETF, that`s a basket of 60 recent IPOs, is approaching its April historic high.
Others are pushing to go public now before the Fed raises rates and market volatility increases.
What`s impressive about next week`s crop of IPOs is the bread of the offerings. There`s something for everyone. The biggest feel the week will be TransUnion, a giant credit analysis company with a $650 million offering. That`s one of the biggest for the year.
Another interesting firm is Milacron Holdings, which makes plastics processing equipment. I can`t remember the last time I saw an IPO for a company that`s in the capital equipment space. Not surprisingly, there are three Cloud computing companies, as well as for health care firms, including two biotechs.
And finally, there`s a surprise. Three energy-related companies
including CNX Coal, a coal company with a 10 percent yield. Also on the docket in the coming weeks is SunGard, an accounting and software firm with
$2.8 billion in sales. And Blue Buffalo, they`re the largest maker of all natural dog and cat food.
All right. Go ahead laugh about all natural pet food, but the company has nearly $1 billion in sales. They filed nine days ago, which means they have a shot going public in the next few weeks.
For NIGHTLY BUSINESS REPORT, I`m Bob Pisani at the New York Stock Exchange.
MATHISEN: And here to talk more about the markets and his stock picks is this week`s market monitor.
Last time he was on in March, his picks were Pure Funds, a cybersecurity, up 20 percent. How about that? JD.com which has gained 15 percent, and Calavo Growers (NASDAQ:CVGW), which is 6 percent higher.
Chris Bertelsen, chief investment officer at Global Financial Private Bank.
Chris, I want you to just repeat that performance. Promise me you`ll be able to do that when we get to your stock picks.
Let`s start though, by the way — welcome, first of all.
CHRIS BERTELSEN, GLOBAL FINANCIAL PRIVATE CAPITAL CIO: Thank you.
MATHISEN: Let`s start, by the way, with what you`ll be watching in the markets next week. I assume it will be Greece. The sooner we can stop talking about as far as I`m concerned, the better. But we must think about it.
BERTELSEN: Absolutely. Obviously, for the bears, if Russia came with a whole bunch of cash, it would be a good for the bears. And the bulls will love it if they have a deal that they can push it further down the road.
My view is that if the bears come, you want to buy Europe maybe about a week or two after the bad news is out.
HERERA: What would you do, domestically, Chris? Let`s go through some of te stock picks that you have.
ALPS Medical. You did so well with your previous picks, why do you like this one?
BERTELSEN: Well, I think it`s certainly a hot area, the biotech area. The biggest problem with biotechs, when an individual investor goes out is, how do they know which is the right one? I mean, do you go by it`s Seattle Genetics (NASDAQ:SGEN) or Blue Bird Bio, or whatever, now, they come to face three and they failed, and the next moment you know, whoops, you lose all your money.
This spreads it out evenly, and that`s the advantage of an ETF in such a hit-or-miss type of a situation. But it`s a hot area, and I think that they have lots of emerging names, and it`s a great way to play it.
You don`t get burned if one fails and you get good upside if this whole area moves forward.
MATHISEN: Your second pick is PerkinElmer (NYSE:PKI), an online company. I think of it as kind of biotech for chickens.
BERTELSEN: Excellent. Yes, there`s no question. They`re a toolmaker. What they`re trying to do is improve the efficiency of biotech companies. So, they`re not, although they`re tied to the entire industry, they don`t have the volatility in variability that goes with it, and certainly, their human health area is on fire because everybody wants to in essence start biotech and derive from it, there from their tools, processes that work.
HERERA: Let`s go on to your last pick, which is Astec Industries (NASDAQ:ASTE). And it`s — you say it`s going to benefit from the rebuilding the infrastructure. What exactly do they do and why do you like them?
BERTELSEN: Absolutely. I like them because this is a political bet.
When you see both sides of the aisle, talk possibly about something you really have to, procure is up. They all want to have infrastructure rebuilds in the U.S., even the Long Island Espresso will get its bottles filled if they indeed vote for what this company does, which is aggregates, cements, and it`s really big for ports and rail yards and particularly for roads.
So, I think you`re going to see that particularly with an election year coming up next year, that there`ll be a big push towards using what this company produces.
MATHISEN: As we get into July, earnings begin. What are you looking for their quickly, Chris?
BERTELSEN: I think that we`re going to see for the first time some stumbles. I don`t know whether everything`s going to be like Oracle (NASDAQ:ORCL), or maybe even like Red Hat (NYSE:RHT), the good and the bad.
But I think that you`re going to see the potential for a correction, where the bubble boys and the weak hand get flushed out. And again, it will be an opportunity to buy.
MATHISEN: All right. The bubble boys and the weak hands. Have a happy Father`s Day, Chris. Chris Bertelsen, Global Financial Private Bank.
BERTELSEN: Thank you, Tyler.
HERERA: And still ahead, crackdown. The tough new rules the EPA is proposing for the trucking industry.
MATHISEN: Repealing the Affordable Care Act would cost the government hundreds of billions of dollars. That according to the Congressional Budget Office, a new report out today found that repealing the president`s health care law would increase deficits by more than $350 billion over 10 years. But the report also show that the number would be much less if economic growth effects like a slightly larger workforce participation rate are considered, this part of a formula.
HERERA: Unemployment rates rose in half of all states last month.
The Labor Department says the rates were driven higher rather by people looking for work who didn`t immediately find jobs. Rates fell in nine states and in Washington D.C. They were unchanged in 16. Nebraska has the lowest unemployment rate at 2.6 percent, West Virginia, the highest at 7.2 percent.
MATHISEN: Federal regulators unveiled new proposed standards for big trucks today. The goal is to cut carbon emissions and lower fuel costs by the next decade. But some industry officials are concerned.
Morgan Brennan has our story.
MORGAN BRENNAN, NIGHTLY BUSINESS REPORT CORRESPONDENT (voice-over):
The Obama administration introduced tougher mileage standards for trucks in its latest move to curb carbon pollution. The long-awaited proposal from the Environmental Protection Agency and the National Highway Traffic Safety Administration will apply to semi trucks, buses, large pickups and vans manufactured from 2021 through 2027.
Regulators say trucks make up less than 5 percent of vehicles on the road, yet account for 20 percent carbon emissions. The EPA estimates the new guidelines could reduce one billion tons of greenhouse gases, save about 1.8 billion barrels of oil and cut fuel costs by $170 billion over the lifetime of these new trucks.
The guidelines aim to make future trucks 40 percent more fuel efficient than those currently on the road. Experts say the changes may be expensive to implement but long-term should be offset by fuel savings.
DONALD BROUGHTON, AVONDALE PARTNERS MANAGING DIRECTOR: What`s really key is that it`s a holistic approach and at the whole truck becomes more efficient overtime. That`s it much more sane way to approach the rules, as opposed to simply making it solely the responsibility of the trailer, or solely the responsibility the truck or the engine.
BRENNAN: Initial industry response was mixed, as some engine manufacturers warned it will require pricey new technology. The EPA has estimated it could cost $10,000 to $12,000 per truck.
But the trucking industry`s trade group, the American Trucking Association, said it supports the aims at the standards though the key will be timing, to make sure the changes can be simply implemented.
So, which companies will best be able to meet the new guidelines?
BROUGHTON: Companies that are willing to keep in new fleet, have a balance sheet be able to buy a new truck to take advantage of that more efficient designs as they come about. So, companies like a Werner Enterprises (NASDAQ:WERN), Knight Transportation (NYSE:KNX), Covenant Transportation, or Swift Transportation.
BRENNAN: The proposed guidelines now enter period of public comment, and then a final version of the rules will be released next year.
For NIGHTLY BUSINESS REPORT, I`m Morgan Brennan.
HERERA: Shares of KB Home (NYSE:KBH) spring on an earnings beat, and that`s where we begin tonight`s “Market Focus”.
An increase in demand helped the home builder top analyst estimates on both the top and bottom lines. The number of homes the company delivered climbed and the average selling price advanced. Shares rose 9
1/2 percent to $16.37.
Hershey cut its 2015 forecast as sales growth in China did not meet its estimates. The chocolate maker also announced that it will cut 300 jobs and other costs because of the slowdown. Shares were off 3 1/2 percent to $89.04.
CarMax (NYSE:KMX) also disappointed investors today. The company reported slightly weaker-than-expected sales growth, though profit met estimates. This as used car sales have slowed, while new car sales continue to surge. The stock was off nearly 4 percent to $69.27.
MATHISEN: Teva has increased its stake in Mylan (NASDAQ:MYL), so that it can legally challenge Mylan`s rejection of its takeover offer.
Mylan (NASDAQ:MYL) rebuffed a $40 billion bid from Teva back in April, saying that it undervalues the company and it continued with its own hostile bid for Perrigo (NASDAQ:PRGO). Teva fell a fraction today to $60.
Mylan (NASDAQ:MYL) was off by more than 1 percent to $71.62.
China has rejected Gilead Sciences (NASDAQ:GILD) patent application for its costly hepatitis C drug. The drug called Sovaldi has become controversial, as it costs $1,000 a pill. Shares were off $1.41 to $119.80.
And Post Holdings, known for its cereals, among other things, lowered its estimates of the impact of the bird flu outbreak on its egg supply.
This follows a new round of testing of its chicken flock. Shares were almost 5 percent higher post today to $52.03.
HERERA: Tiger Woods has been in the rough, and it`s been rough.
Today at the U.S. Open, he finished 16 over par. This after he shot an unheard-of 85 two weeks ago, leaving many to wonder whether his professional career is over.
So, if Tiger can`t be a winner on the course, is his business a loser?
Here to discuss that is Dean Crutchfield. He`s the brand expert with his own firm Dean Crutchfield Associates.
Nice to see, Dean. Welcome to have you here.
DEAN CRUTCHFIELD, DEAN CRUTCHFIELD ASSOCIATES: Nice to be back.
Nice to be back.
HERERA: I guess that is the question. If he`s not doing well on the golf course, which he was certainly is not doing right now, how is that going to impact is business, how detrimental is it too to the tiger brand and business?
CRUTCHFIELD: Well, it`s certainly, you know, have some risking, and it was certainly has some detrimental impact on his franchises, where his reputation.
But let`s be honest here. He`s the greatest name in golf. He`s one of the greatest names in sport, and he`s one of the greatest names across millions of homes from the Americas, to Europe, to Asia. They know what he`s accomplished here. He is iconic in terms of his success.
MATHISEN: But if he`s not winning and he`s playing poorly as he certainly did yesterday when he shot an 80, it was a mess, and 85 two weeks ago, are people going to want to use his clubs, his gear, his golf balls?
CRUTCHFIELD: Well, I think we`re poor performance today doesn`t determine poor performance tomorrow, but obviously, it`s a game of sport.
Sometimes you`re on, sometimes you`re off, but it does seem to be a little bit a growing trend, which would be a concern for some of the major sponsors that want to see, you know, Tiger Woods on best performance, so do his fans and so do customers of his products.
But, nonetheless, we still have to recognize the accomplishment that he`s made in his career. You know, he is the name golf, and he still is that name, and he`s got a pedestal that it`s going to be very hard for someone to take it away.
HERERA: You make the point of integrity versus credibility, and perhaps he has lost some integrity because a previous situations. But you still say his credibility remains pretty much untouched.
CRUTCHFIELD: I think so. I think if you look at a lot of the — you know, the Lance (NASDAQ:LNCE) Armstrongs, the Adrian Petersons, you know they got no integrity and no credibility, or at least raise questions on their sport. This is not the case at Tiger Woods. He has that credibility he owns that credibility, it`s hard to take it away.
But this performance problem will crack the veneer.
MATHISEN: Well, did will do you think he will remain the a major brand after his playing days are over, the way Arnold Palmer has, the way Jack Nicklaus has? Not many have done that.
CRUTCHFIELD: No. I think it`s pretty obvious the Tiger Woods has that equity in his name and his brand. I think that therefore he gives in the sense that he has an assured success in the businesses that he reaches to and does investments with.
I think the no one can guarantee anything, but this is Tiger Woods we`re talking about. He`s a phenomena. He`s a titan of sport. So, I think that that equity put into other businesses as he looks to, you know, grow by diversifying his portfolio of investments in something that can assure his success based on the name that he`s earned over the years that he`s led the sport.
HERERA: Uh-huh. All right. Dean, we`ll leave it there. Thank you so much for joining us again.
CRUTCHFIELD: Thank you.
HERERA: Dean Crutchfield with Sterling Brands.
MATHISEN: All right. Coming up, all in the family meet three generations from the same family who all started very different businesses.
MATHISEN: Here`s what to watch next week: the final reading on first-quarter GDP, the all-inclusive measure of economic activity. All eyes — yes, all eyes — will be on Greece as an emergency summit will be held Monday to discuss the deteriorating situation in that indebted country. And we`ve got lots of housing data, lots, lots, lots, including existing and new home sales.
And that folks is what to watch next week.
HERERA: Born to be a businessman. While some say there`s an entrepreneurial gene that you either have or you don`t. So, ahead of Father`s Day weekend, Kate Rogers (NYSE:ROG) talk to three generations of entrepreneurs from the same family about three very different businesses that they started.
VICTOR LEVY, ENTREPRENEUR: I don`t know, maybe it was in my blood.
KATE ROGERS, NIGHTLY BUSINESS REPORT CORRESPONDENT: Ninety-one-year- old maker Victor Levi is talking about running his own business. And with his family`s track record, he may be onto something about entrepreneurial DNA.
Both his son Paul and grandson Eric went on to launch their own companies following in his footsteps.
In 1956, Victor his brother Bernard launched Counterparts, making women skirts and eventually pants to keep up with the changing times.
It grew into a $100 million business and were selling across the country in major retailers like Macy`s (NYSE:M).
V. LEVY: We had the best pants in the city. We had buyers crying where they couldn`t get delivery.
ROGERS: Must be some good pants, huh?
V. LEVY: Yes.
ROGERS: So, Paul, did you grow up watching your father as an entrepreneur and having takeaways from that?
PAUL LEVY, ENTREPRENEUR: My dad took me to work right away and actually wanted me to see what it was like to actually, you know, earn a paycheck, be your own boss, but learn from the bottom up.
ROGERS: From there, Paul went on to open his own company Leisure Park, a 12,000 square-foot gaming facility in Times Square in the 1990s.
For a decade, they hosted birthday parties and laser tag games in their arena, drawing celebrities from Michael J. Fox to Brad Pitt.
P. LEVY: We were voted the number one place in New York City for children`s birthday parties in our first year of business.
ROGERS: Victor`s company, Counterparts, eventually folded in 1990 due to increase competition overseas, and laser tag closed after a 10-year run because of a shift to online gaming.
But the Levy entrepreneurial streak continues with grandson Eric who`s 28, now taking a crack at being his own boss. He launched his startup Your Neighborhood in 2012.
It`s a Yelp style platform that helps provide real estate data for New York City and the five boroughs.
Do you think it`s in your genes you have some type of entrepreneurship bug?
ERIC LEVY, ENTREPRENEUR: Sure, based on my father and grandfather having their own businesses, I know I want to do with myself at some point.
I thought that base on I guess the family track record, I have a good chance to doing it and being able to be successful at it, too.
ROGERS: Victor, what do you think about your son and now your grandson, you know, following in your footsteps?
V. LEVY: Nice being at your own. He`s on his own, what he`s doing is him like (INAUDIBLE) as far as I`m concerned.
ROGERS: For NIGHTLY BUSINESS REPORT, I`m Kate Rogers (NYSE:ROG).
MATHISEN: And we end tonight`s program on a somber note. Ralph Roberts, the founder of Comcast (NASDAQ:CMCSA) (NYSE:CCS), died last night at the age of 95. Roberts founded Comcast (NASDAQ:CMCSA) (NYSE:CCS) when he bought a small cable system in Tupelo, Mississippi, back in 1963. He grew the company into what is today — the nation`s largest video high- speed Internet and phone provider to residential customers. Comcast
(NASDAQ:CMCSA) (NYSE:CCS) is the parent company of CNBC, which produces this program. His son Brian now serves as Comcast`s chairman and CEO, a family affair there as well.
A humble man, a quiet philanthropist.
HERERA: No, but a very generous man in so many different ways, and he will really be greatly missed.
MATHISEN: Indeed, he will.
HERERA: That does it for NIGHTLY BUSINESS REPORT for tonight. I`m Sue Herrera. Thanks for joining us. Have a great Father`s Day.
MATHISEN: Thank you, Sue, and to everyone out there, the same.
I`m Tyler Mathisen. Have a great weekend. Good Father`s Day. We`ll see you on Monday.
Nightly Business Report transcripts and video are available on-line post broadcast at http://nbr.com. The program is transcribed by CQRC Transcriptions, LLC. Updates may be posted at a later date. The views of our guests and commentators are their own and do not necessarily represent the views of Nightly Business Report, or CNBC, Inc. Information presented on Nightly Business Report is not and should not be considered as investment advice. (c) 2015 CNBC, Inc.