ANNOUNCER: This is NIGHTLY BUSINESS REPORT with Bill Griffeth and Sue Herera.
BILL GRIFFETH, NIGHTLY BUSINESS REPORT ANCHOR: Economic Test. New reports show the consumer is strong but businesses are pulling back, and that could cloud the outlook for growth.
RAHEL SOLOMON, NIGHTLY BUSINESS REPORT ANCHOR: Tug-of-war. Johnson & Johnson (NYSE:JNJ) sees profits spike but investors latched on with the growing number of lawsuits, and that push the stock lower.
GRIFFETH: Netflix (NASDAQ:NFLX) effect. It has not only changed the way we watch TV but also the way companies advertise.
Those stories and much more tonight on NIGHTLY BUSINESS REPORT for Tuesday, July 16th.
SOLOMON: And good evening, everyone. I`m Rahel Solomon, in tonight for Sue Herera.
GRIFFETH: And I`m Bill Griffeth. We certainly welcome you aboard.
SOLOMON: Thank you.
GRIFFETH: Let`s get to this tonight, shall we?
You know, for a while the stock and bond markets have been focused on three things, trade, the Fed and corporate earnings. And today, all three issues collided.
First, President Trump revealed that the U.S. and China still have a long way to go before the two countries reach a trade deal, and he warned once again that he`s ready to slap tariffs on another $325 billion of Chinese goods. Second, a new report said that retail sales increased more than expected in June, an indication that the consumer is strong. That could change the calculus for the Fed and the likelihood of rate cuts this year. And third, earnings reports released so far have shown that consumer spending is strong, but business spending is slowing down.
New reports like these can often change a long-held outlook for growth, so we asked Steve Liesman to put together a real-time assessment of the economy. And that`s where we start tonight.
STEVE LIESMAN, NIGHTLY BUSINESS REPORT CORRESPONDENT: While everyone seems to be expecting the economic party to wind down or even end, no one seems to have the told the U.S. consumer. The government reported June retail sales today up a strong 0.4 percent, beating expectations on the street. Consumers spent less money on gasoline but plowed the savings into clothing and furniture purchases. Auto sales also did well and Internet sellers did a brisk business, seemingly at the expense of department stores.
All of this shored up views on the second quarter with the CNBC rapid update with the median of tracking estimates for GDP on Wall Street, running at 1.8 percent, a slowdown from 3 percent of the first quarter but well above the worst fears that accompanied the beginning of the quarter and right about trend growth.
Still Fed Chairman Jerome Powell in a speech Tuesday continued to telegraph a rate cut coming from the Fed, as did Chicago Fed President Charlie Evans. In a CNBC interview, Evans said he was concerned about slowing global growth, the trade war and inflation running below the Fed`s 2 percent target.
CHARLES EVANS, CHICAGO FED PRESIDENT: With the most recent nervousness, I`ll just say, you know, I think that a little more accommodation would be more helpful for ensuring that we confidently get to and above 2 percent. I really think 2.25 or a little more would be appropriate for our economy and monetary policy. At this point into the economic cycle, we are, you know, 10 years into an expansion, and if we are going to be above 2 percent during this cycle, you think this be about right.
LIESMAN: So, consumers have enjoyed strong job growth and decent wage growth. And now, they are likely to get a cut soon from the Fed. It doesn`t seem like the party, that is the economic expansion, is ending any time soon.
For NIGHTLY BUSINESS REPORT, I`m Steve Liesman in Chicago.
SOLOMON: So what happens when consumer spending is strong and business spending starts to soften?
Mark Zandi is the chief economist at Moody`s (NYSE:MCO) Analytics.
Mark, thanks for being with us this evening.
MARK ZANDI, CHIEF ECONOMIST, MOODY`S ANALYTICS: Good to be here.
SOLOMON: How — how do you explain the disconnect between the strong retail spending and the consumer spending — and the business spending, excuse me?
ZANDI: Right. Well, businesses are nervous. Business sentiment is way off from where it was this time last year and that`s because of the president`s trade war. That has made — it has unnerved businesses around the world.
You know, pick your survey. The Duke University runs a survey of CFOs here in the United States. Two-thirds of those survey respondents say we`re going to have a recession by the end of 2020.
So businesses are just very nervous about the trade war, but as a result of that, they`re pulling back on their investment but they have not pulled back on their — their payrolls, their hiring. They`re still adding to jobs. Unemployment is still low, and that`s what consumers care about, that they have a job and unemployment is low. So, consumers are fine just as long as businesses don`t cut hiring.
GRIFFETH: Right. I mean, we see here that you call the economy fragile, but it depends on which sector of the economy you are looking at. So, again, what`s the Fed going to do with this? Does this mean fewer rate cuts if we`re going to get any this year?
ZANDI: I think the Fed will cut rates. I think the economy broadly, you add it all up, the positives and the negatives, it is still fragile. I mean, Steve was talking about 1.8 percent GDP growth. That`s probably below the economy`s potential.
So, what that means if we stay here very long, job growth will slow to the point unemployment will start to rise and unnerve consumers and that will be the fodder for recession. So, I think the Federal Reserve desperately wants to avoid that, once you get growth back up above 2 percent. So, that means that they`re going to cut interest rates and they`re going to keep cutting rates as long as this trade war is going on and as long as growth is below potential.
SOLOMON: Mark, is it possible to know what is a better indicator of the economy? Is the consumer right or are businesses right?
ZANDI: Well, generally, business confidence, if you go back and look at history and look at recessions over the last, say, since World War II, the last ten recessions, a business confidence tends to lead consumer confidence.
So businesses, you know, they`re much more sensitive. They`re on the ground. They`re buying and selling. You know, they`re changing their prices. They have a real feel for what is happening.
And so, business — once business sentiment starts to go and they start to pull back, if they ultimately curtail their hiring and unemployment starts to rise, then consumers follow. Actually, the most interesting is it is investors that go first, then businesses and finally the consumer. The consumer is last to figure it out and lose faith in the economy and the recession ensues.
SOLOMON: Until then, the consumer continues to spend.
All right. Mark Zandi with Moody`s Analytics, thank you. We appreciate it.
ZANDI: Thank you.
GRIFFETH: To Wall Street now where stocks pulled back from those record levels we saw yesterday in part because of those trade comments from President Trump that we told you about earlier in the program. The Dow Industrial Average fell just 23 points. We`re at 27,335. Nasdaq was down 35. The S&P was lower by 10.
The push and pull in the market today was driven largely by earnings. Three of the nations biggest banks topped profit expectations, but investor reaction to those results from Goldman Sachs (NYSE:GS), J.P. Morgan and Wells Fargo (NYSE:WFC) was mixed.
GRIFFETH: Goldman Sachs (NYSE:GS) shares were up because its growing loan business pushed net interest income up by almost 40 percent. That business however is threatened by trade tensions and the possibility of interest rate cuts. Goldman`s profits and revenue both topped estimates, but both down from a year ago. Profits fell by 6 percent.
Consumer businesses were relatively strong at J.P. Morgan Chase, too. Profits from loans, up 7 percent, were a big reason the bank`s overall second quarter profit jumped by 16 percent, but — and it is a big but — interest race were on hold, which means loan growth slowed and any interest rate cut by the Fed will put even more pressure on the bank`s loan portfolio.
Wells Fargo`s profit was up even more, about 20 percent from a year ago, but revenue was flat and like J.P. Morgan Chase, net interest margins fell. That`s the difference between the amount of the loan and the amount of interest that the loan brings in. Margins are down, in part because homeowners are refinancing again, making their mortgages less profitable for banks.
GRIFFETH: And tomorrow, we`ll get quarterly results from Bank of America (NYSE:BAC), U.S. Bancorp (NYSE:USB) and PNC Financial Services.
SOLOMON: The grounding of Boeing (NYSE:BA) 737 MAX did not have a big impact on United`s bottom line. The carrier reported better than expected profit and revenue, that was thanks to stronger travel demand and higher fares. It also raised the low end of its profit forecast for the year. Taking a look at the stock, it rose slightly in initial after hours trading.
Phil LeBeau joins us from Chicago.
Phil, good to have you.
So, the grounding of the 737 MAX did not affect the carrier in the most recent quarter, but what about looking forward? What about future quarters?
PHIL LEBEAU, NIGHTLY BUSINESS REPORT CORRESPONDENT: Great question, Rahel. We don`t know. And we don`t know the exact impact of not having the max in the second quarter had on the results for United Airlines. They`re not breaking those out, nor will they say the expected impact for all of 2019.
But one interesting note did come out in the earnings release. The company has agreed to buy 19 used Boeing (NYSE:BA) 737-700 airplanes with some of the deliveries starting in December. Why is this important? It is important because they may not have the MAX back until the end of this year, and even then some people are saying, look, it may not be until early next year, but they have capacity growth planned. They want to make sure they have the seats in place for that
GRIFFETH: I like to see them kicking the tires on those things.
GRIFFETH: United is seeing strong demand here in the U.S. What about international routes right now, Phil?
LEBEAU: That`s a good question. They don`t talk about it specifically in the earnings release. We`ll have a chance to talk with CEO Oscar Munoz tomorrow morning and that`s going to be one of the primary questions. We heard from other airline executives that they have seen what they term as softness, particularly in Asia or around China with all of the trade tensions that have been developed.
Now, that doesn`t mean that it is falling off of a cliff in terms of demand, but it is an area that`s going to get a lot of question not only from us in the media but also from analysts when they talk with CEO Oscar Munoz tomorrow.
SOLOMON: OK, Phil. We know you certainly will ask. Thank you.
Phil LeBeau in Chicago for us.
GRIFFETH: Elsewhere, Dow component Johnson & Johnson (NYSE:JNJ) reported better than expected earnings and increased its guidance, but that wasn`t enough to push the stock higher.
Meg Tirrell explains why.
MEG TIRRELL, NIGHTLY BUSINESS REPORT CORRESPONDENT: Johnson & Johnson (NYSE:JNJ) is the world`s largest health care company. It sells everything from prescription drugs to bandage, to tools for hip and knee replacement. And in the second quarter, its profit and sales beat Wall Street`s expectations.
The stock fell. That may be because investor`s focus is elsewhere, legal battles around baby powder and opioid pain killers.
JARED HOLZ, JEFFERIES HEALTH-CARE STRATEGIST: It is still pretty difficult for investors to understand the implications of some of the legal liabilities that they may face with respect to talc and also with opioids.
TIRRELL: Closing arguments took place yesterday in a case in Oklahoma where state attorneys claim Johnson & Johnson (NYSE:JNJ) contributed to the opioid crisis.
UNIDENTIFIED MALE: The defense blamed everyone, everyone except themselves for causing this crisis.
TIRRELL: A decision from the judge is expected later this summer.
In an interview this morning, J&J`s chief financial officer disputed the claims.
JOSEPH WOLK, JOHNSON & JOHNSON CFO: We readily admit there`s an opioid epidemic that needs to be solved by many parties and has to be multi-factor in terms of the solution set. But here, the facts don`t align to these claims that the state is making.
TIRRELL: J&J`s stock fell on a report the Justice Department has opened a criminal investigation into whether the company lied to the public about the risk of asbestos in its talcum products, going back to the 1970s.
WOLK: We are complying fully and cooperating fully with the Department of Justice. It is an astute organization. I`m sure once they go through the facts, they will come to the same conclusions that the company acted responsibly and the product is safe.
TIRRELL: But the uncertainty leaves investors unsure, said Jefferies healthcare strategist Jared Holz. That makes the stock that once considered a defensive, steady investment less so.
HOLZ: The quarter netting everything out, very much in line. I think the legal overhang is the conversation in terms of buying or selling the stock into the second half.
TIRRELL: Today anyway, investors sold.
For NIGHTLY BUSINESS REPORT, I`m Meg Tirrell.
SOLOMON: As we`ve been reporting, one of the biggest concerns for the market is the slowing global economy and that`s starting to show up in the results from industrial companies.
Bob Pisani is at the New York Stock Exchange.
BOB PISANI, NIGHTLY BUSINESS REPORT CORRESPONDENT: Earnings season is officially under way and while still in the early innings, there are some signs that the global industrial economy is a big slower.
Just look at harmful of companies who reported in the last few days. So, tonight, Arrow Electronics (NYSE:ARW) which makes electronic components and semiconductors, they preannounced weaker earnings for the second quarter. They cited deteriorating demand conditions, particularly from Asia, and an inventory correction.
We heard similar sentiments from companies last week. Another semiconductor company, Vishay, pre-announced June sales well below expectations. They also noted an inventory corrections and pricing pressure. Also Fastenal (NASDAQ:FAST), which makes tools, motors, fasteners, they sell to a number of big multinational companies around the globe. They also reported lower revenues and lower gross margins last week. They blamed higher costs largely related to trade wars and tariffs.
Finally, BASF. This is the world`s biggest chemical company. They also lowered guidance last week. They cited the trade conflicts, weak global industrial production growth and a broader downturn in the global automotive industry.
So, beyond just the corporate speak, Federal Reserve Chair Jay Powell also echoed global growth concerns. Today in a speech, he acknowledged weakness in the manufacturing sector.
He said: The manufacturing sector has been weak since the beginning of the year, in part weighed down by the softer business spending, weaker growth in global economy and concern about trade tensions.
Now, we`ll see whether the story remains the same for other semiconductors and industrial names, including manufacturing giant Honeywell and chip maker Taiwan Semiconductor. Both of those will report results on Thursday.
For NIGHTLY BUSINESS REPORT, I`m Bob Pisani at the New York Stock Exchange.
GRIFFETH: Oil prices fell today after President Trump signaled progress with Iran and said that he was not looking for regime change in that country. During a meeting of his cabinet at the White House, Secretary of State Mike Pompeo said that Tehran was prepared to negotiate on its missile program, and those comments pointed to an easing of tensions which then sent oil prices down by about 3 percent in today`s session.
SOLOMON: And time now to take a look at some of today`s “Upgrades and Downgrades”.
Dow component Home Depot (NYSE:HD) was downgraded to hold from buy at Gabelli. The analyst cites the stock`s valuation. The firm also notes that the current stock price reflects above market growth over the next three years. The stock fell a fraction to $217.26.
Parker Hannifin meantime was downgraded from sell to neutral at Goldman Sachs (NYSE:GS). The analyst cites a slowdown in the industrial sector, and also a constrained balance sheet. The price target is $150. Now, despite the downgrade, the stock rose about 2 percent to $171.04.
GRIFFETH: And still ahead, in the hot seat. Lawmakers come down hard on a sector that has helped drive this market higher.
SOLOMON: And it was a rough day for big tech on Capitol Hill. Facebook (NASDAQ:FB), Google (NASDAQ:GOOG), Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) all found themes the target of lawmakers who, as you know, are increasing the pressure on some of the nation`s most prominent companies.
Ylan Mui was there.
YLAN MUI, NIGHTLY BUSINESS REPORT CORRESPONDENT: First up was Facebook (NASDAQ:FB) testifying before the Senate Banking Committee on its new cryptocurrency called Libra. Senators on both sides of the aisle pressed Facebook (NASDAQ:FB) on exactly how it would work, who would regulate it and how Facebook (NASDAQ:FB) plans to make money from it.
Republican Senator John Kennedy accused Facebook (NASDAQ:FB) of trying to control the money supply while Democratic Senator Sherrod Brown compared the company to a toddler playing with matches. But ultimately, lawmakers said their concerns come down to trust.
SEN. BOB MENENDEZ (D-NJ): Trust is something you earn and Facebook (NASDAQ:FB) certainly hasn`t earned it.
SEN. JON TESTER (D-MT): What — what kind of faith do we have in Libra?
SEN. JOHN KENNEDY (R-LA): Can we agree that a banker should be trustworthy?
SEN. MARTHA MCSALLY (R-AZ): I don`t want to get into the technical stuff. I am talking about the trust issue.
SEN. SHERROD BROWN (D-OH): Mr. Chairman, I wish we could trust Facebook (NASDAQ:FB). It is pretty clear there`s almost nobody in this committee that does.
MUI: Facebook (NASDAQ:FB) executive David Marcus (NYSE:MCS) defended his company`s record. He said Libra will not compete with retail banks or central banks and that it would not share information with Facebook (NASDAQ:FB). Instead, he pledged to work hand in hand with authorities.
DAVID MARCUS, FACEBOOK VP MESSAGING PRODUCTS: Getting this right means addressing these concerns in full and ensuring that there`s proper regulatory oversight for this project.
MUI: Over in the House, the spotlight was not just on Facebook (NASDAQ:FB), but also Google (NASDAQ:GOOG), Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) as officials from all four companies testified before the House Judiciary Committee. The focus of that hearing was on innovation and entrepreneurship, and whether big tech companies are not only squashing the competition but keeping new players from getting into the market all together.
REP. DAVID CICILLINE (D-RI): In other words, this hearing isn`t just about the companies before us today. It is about ensuring that we have the conditions for the next Google (NASDAQ:GOOG), the next Amazon (NASDAQ:AMZN), the next Facebook (NASDAQ:FB), and the next Apple (NASDAQ:AAPL) to grow and prosper.
MUI: The companies argue that they actually encourage innovation, not stifle it. And they say they face intense competition for their products here at home and around the world. The one thing these hearings made clear is that the battle between big tech and Washington is far from over.
For NIGHTLY BUSINESS REPORT, I`m Ylan Mui in Washington.
GRIFFETH: So when all is said and done, what kind of regulations and/or restrictions are we likely to see imposed on these tech giants?
Joining us is John Freeman. He`s technology analyst at CFRA Research.
John, good to see you. Thanks for joining us tonight.
JOHN FREEMAN, CFRA RESEARCH TECH ANALYST: Bill, thank you for having me.
GRIFFETH: You think it will be modest to use that term. What do you think is going to happen? Describe it.
FREEMAN: Yes. I think the first sort of effort will be modest. There will be some sort of oversight I think is the most likely outcome.
But the scary thing is that they are writing legislation — or, you know, they`re considering writing new legislation specifically for social networks. So, this is not as much an antitrust issue, a classic sort of antitrust issue as it is, you know, curtailing the political power and influence that particularly Facebook (NASDAQ:FB) has, because I think that Facebook (NASDAQ:FB) really has kind of, you know, separated from the pack in terms of the scrutiny that legislators have on them.
SOLOMON: And would you say that other players in this space are watching sort of how Facebook (NASDAQ:FB) reacts? Because as you said, it does seem like regulators are honing in on Facebook (NASDAQ:FB) specifically.
FREEMAN: Yes, I think they`re watching, but I think the thing about Facebook (NASDAQ:FB) is it is relatively new to the lobbying game. Google (NASDAQ:GOOG), apple, even Amazon (NASDAQ:AMZN) have been doing it a little bit longer, and I think they`re a little bit better at it.
I think the Libra announcement, just the timing of it, you know, now you`re going to give, you know, nefarious actors the ability to manipulate the next election anonymously with money that, you know, they don`t have to launder. You can see the political engine getting under there that way.
So, I think that`s one of the reasons why Facebook (NASDAQ:FB) has sort of more scrutiny on it.
GRIFFETH: Now, we all know that these kinds of companies — you know, the companies that have been at the forefront of technology, cutting-edge technology for the last several years, have been leading this market higher. Now they`re getting this scrutiny from Washington.
GRIFFETH: Does that cap that growth do you think?
FREEMAN: Well, I think every — I think for Facebook (NASDAQ:FB), I think it is built in or, you know, the light — some sort of light regulation is built in. I think it is maybe even built in a little bit for Google (NASDAQ:GOOG) as well, but perhaps not the more disastrous outcome for, say, example rewriting the 1996 Communications Decency Act, which means that both Google (NASDAQ:GOOG) and Facebook (NASDAQ:FB) would actually have to be responsible.
They could be liable for, you know — they could be liable for libel. They would have to be responsible for their content, which wouldn`t be practical. But, you know, that`s kind of he sort of worst case scenario. Most of the investors I talk with have kind of built that in, but they are concerned about regulations. That`s the questions that come out, is mostly about regulation with Facebook (NASDAQ:FB) and Google (NASDAQ:GOOG) right now.
GRIFFETH: Indeed. John Freeman with CFRA Research — again, thanks for joining us tonight.
FREEMAN: Bill, thank you. Take care.
SOLOMON: Charles Schwab beats the street and that`s where we begin tonight`s “Market Focus”.
The discount broker was helped by nearly 400,000 new customer accounts last quarter. The firm now has now 12 million active accounts. The rose up more than 3 percent to $41.63.
And in an SEC filing, KeyCorp (NYSE:KEY) said it discovered fraud that could cost it $90 million. The bank said the fraudulent activity involved one of its business customers and it happened at the start of the third quarter. The company believes it was an isolated incident and says it`s working with law enforcement. KeyCorp (NYSE:KEY) fell more than 1 percent to $17.38.
CBS (NYSE:CBS) and Viacom (NYSE:VIA) reportedly set a deadline to agree on a merger. CNBC says the media companies have settled on August 8th, also on that day, both CBS (NYSE:CBS) and Viacom (NYSE:VIA) will report second quarter earnings. CBS (NYSE:CBS) rose a fraction to $53.51. Viacom (NYSE:VIA) fell more than 1 percent to $35.72.
GRIFFETH: Canadian Specific topped analyst estimates. thanks to an increase in oil, chemicals and plastic shipments. The railroad operator also lowered its costs for the quarter. The stock rose nearly 4 percent today to $246.27.
Domino`s reported the slowest same-store sales they`ve seen in three years as it expands its store base and faces increased competition from food delivery services. The company has increased the number of locations as a way to compete with those companies. But analysts say the expansion may be cannibalizing sales at existing locations, so shares fell more than 8 percent today to $246.54.
And after the bell, CSX (NYSE:CSX) reported lower than expected earnings and revenue. The company saw an increase in its merchandise shipments like vehicles and apparel, but that was offset by declines in its container shipments. Shares initially dropped in after hours trading tonight, but they did close the regular session up more than 1 percent to $79.55.
And late today, the Department of Justice asked an appeals court to pause its antitrust ruling against Qualcomm (NASDAQ:QCOM). About one month ago, you might recall a judge ruled that Qualcomm (NASDAQ:QCOM) illegally suppressed competition in the market for smartphone chips. Shares rose in initial after hours trading on news. It closed the regulation session at $75.67.
SOLOMON: And coming up, no ads, no problem. Companies are using a different marketing strategy to target binge watchers.
SOLOMON: IKEA is shutting down its one American factory. The company plans to move operations to Europe due to raw material costs that it says are higher here in the U.S. IKEA says shifting the work to Europe and importing the goods will make its furniture in North America more affordable. The Danville, Virginia plant employs 300 workers.
GRIFFETH: Netflix (NASDAQ:NFLX) reports earnings tomorrow, but tonight, we`re going to take a look at how this company has changed the way we watch TV and the way companies advertise.
Here is Julia Boorstin.
JULIA BOORSTIN, NIGHTLY BUSINESS REPORT CORRESPONDENT: Netflix`s roughly 150 million subscribers bingeing with no commercial breaks has pushed advertisers to find new ways to reach viewers glued to ad-free platforms. One example is new Coke. Its featured in Netflix`s original series “Stranger Things”. With Coca-Cola (NYSE:KO) bringing back limited edition Coke cans for sale, turning the company`s infamous failure into a new marketing opportunity.
The streamer says none of the many brands mentioned in “Stranger Things” are paid for but they offer Netflix (NASDAQ:NFLX) valuable promotion.
TOM MEYER, THE MARKETING ARM PRESIDENT OF ENTERTAINMENT: In today`s world, the streamers have adopted the old movie, you know, technique and are working directly with brands who get product placement integration, but then they also promote the show in advertising, on digital, on their social channels, et cetera. So that`s building an audience for the show and that`s what the streamers want.
BOORSTIN: Promotional partnerships also happen off screen. For “Stranger Things”, Baskin Robbins created eight flavors and collectible containers tied to the show, for its largest partnership and its first with the streaming platform.
And it`s not just Netflix (NASDAQ:NFLX). Hulu is paid to feature Miller Coors beer in 10 episodes of its “Into the Dark” series. Hulu says brand integrations work better than 30-second spots in the platform, delivering a nearly 90 percent increase in purchase intent among viewers and a 75 percent increase in brand awareness.
And to break through the clutter, some big brands are returning to the original TV ad model, paying to produce shows and documentaries in an effort to reach consumers with content rather than the ads that interrupt it. Procter & Gamble (NYSE:PG) is sponsoring a National Geographic TV series on efforts to combat extreme poverty, looking to align its products with efforts for good.
NANCY SMITH, ANALYTIC PARTNERS CEO: Brands like P&G and others are going to benefit from having those. It is expensive, and that`s really where the challenge comes in is, is the expense not too high, such that the return is achievable?
BOORSTIN: Johnson & Johnson (NYSE:JNJ) financed a documentary about nurses in the early days of the AIDS epidemic. The brand hoping for a halo effect from the film`s message of compassion and rave reviews.
For NIGHTLY BUSINESS REPORT, I`m Julia Boorstin in Los Angeles.
SOLOMON: And before we go, let`s take a final look at the day on Wall Street. The Dow fell 23 points, the Nasdaq was down 35, and the S&P 500 was lower by 10.
And that is NIGHTLY BUSINESS REPORT for tonight. I`m Rahel Solomon. Thanks for watching.
GRIFFETH: I`m Bill Griffeth. Have a great evening. See you tomorrow.
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