Transcript: Nightly Business Report – August 26, 2019

ANNOUNCER:  This is NIGHTLY BUSINESS REPORT with Sue Herera and Bill Griffeth.


BILL GRIFFETH, NIGHTLY BUSINESS REPORT ANCHOR:  Triple-digit rebound. President Trump says China wants to return to the negotiating table even as  another round of tariffs loom large.  


SUE HERERA, NIGHTLY BUSINESS REPORT ANCHOR:  Landmark decision.  An  Oklahoma judge finds J&J helped fuel the state`s opioid crisis, and it  could have implications for other cases yet to come.  


GRIFFETH:  Streaming strategy.  Disney`s taking a different approach than  Netflix (NASDAQ:NFLX), it`s betting on the power of its brands.  
Those stories and much more tonight on NIGHTLY BUSINESS REPORT for Monday,  August 26th. 


HERERA:  Good evening, everyone, and welcome.  
There was a change in tone and a change in the direction of the stock  market.  President Trump struck a more conciliatory note at a meeting of  world leaders at the Group of 7 Summit in France, and there was a softening  of rhetoric when it comes to trade between the U.S. and China.  It was a  shift from just a few days ago when Beijing imposed new levies on U.S.  goods and then the White House increased tariffs on Chinese goods.  
As we reported Friday, the president also told U.S. companies doing  business in China to relocate.  So just the notion of a de-escalation in  trade tensions sent stocks higher.  The Dow Jones Industrial Average rose  269 points to 25,898.  The Nasdaq was up 101 and the S&P 500 added 31.  
Eamon Javers reports tonight from the G7 in France.  
(BEGIN VIDEOTAPE)


EAMON JAVERS, NIGHTLY BUSINESS REPORT CORRESPONDENT:  President Trump lit a  fire under financial markets early Monday morning announcing the Chinese  had been in touch with U.S. negotiators.  


DONALD TRUMP, PRESIDENT OF THE UNITED STATES:  I got calls and very, very  good calls, very productive calls.  They mean business.  They want to be  able to make a deal.


JAVERS:  That was enough to send futures soaring in the United States,  although the traveling White House staff were unable to provide any details  of the calls the president cited.  At the same time, Trump insisted the  U.S. has the advantage over China.  

TRUMP:  Maybe I`m wrong but I think we`re probably in a stronger position  now to do a deal, a fair deal for everybody.  And so, we`re having very  meaningful calls.  


JAVERS:  Throughout the day, the president and the world leaders sought to  present a united front to the world one year after the last G7 in Canada  ended in a spate of angry tweets and insults.  


TRUMP:  If there was any word for this particular meeting of seven very  important countries, it was unity.  I think most important of all, we got  along great.  


JAVERS:  Also in France, the U.S. struck a trade agreement in principle  with Japan and leaders said they made progress to resolve a dispute over  France`s new law to tax digital services.  


President Trump declined to say a retaliatory attacks on French wine was  off the table and he continued to hold open the possibility of tariffs on  European automobiles.  But the most revealing moment came when the  president was asked if he was causing the volatility in world markets with  his rapid-fire changes.  


TRUMP:  Sorry.  It`s the way I negotiate.  It`s the way I negotiate.  It`s  done very well for me over the years.  And it`s doing even better for the  country.  


JAVERS:  The countries here were unable to agree on the traditional joint  communique, but France said the seven advanced economies were committed to  global economic stability.  
For NIGHTLY BUSINESS REPORT, I`m Eamon Javers in Saint-Jean-de-Luz, France.  
(END VIDEOTAPE)


GRIFFETH:  And as Eamon reported, the president referred to those phone  calls between the U.S. and China, but Beijing had a different story to  tell.  
Eunice Yoon has that for us.  
(BEGIN VIDEOTAPE)


EUNICE YOON, NIGHTLY BUSINESS REPORT CORRESPONDENT:  China`s foreign  ministry said it is not aware of any weekend phone calls between the trade  negotiators and had not heard of a call by China to restart trade talks.   That said, China`s chief negotiator, Vice Premier Liu He, did indicate  earlier in the day that China would be willing to resolve the trade dispute  if negotiations were calm.  


Whether there was a phone call, there are reasons not to get overly  excited.  The expectation had been the two sides would hold talks next  month.  There`s also a feeling here that China is becoming more hard line.   The way it was explained to me is that Chinese officials are worried about  the economic impact of the trade war, but they`re even more concerned about  rapidly introducing reforms under U.S. supervision the way the Trump  administration wants.  


Politically, the economic fallout would be dangerous, I`m told the  appearance that China could be forced into making changes by an outside  power would be intolerable.  So even if they are talking, the tactic would  be not to openly confront the United States but to engage and wait for a  better moment to get the best outcome for China.  
For NIGHTLY BUSINESS REPORT, I`m Eunice Yoon in Beijing.
(END VIDEOTAPE)


HERERA:  And those trade tensions between the U.S. and China have some  investors looking for safe havens from all the recent stock market  volatility.  But are areas like gold and bonds as safe as they once were?  
Hugh Johnson, chairman and chief investment officer of his own money  management firm, Hugh Johnson Advisors, joins us now.  
Good to see you, Hugh.


HUGH JOHNSON, HUGH JOHNSON ADVISORS CHAIRMAN & CIO:  Nice to be with you,  sue.  


HERERA:  So a lot of people do look to the bond market perhaps as a safe  haven, but we have record d low interest rates.  And you maintain that gold  is not necessarily a safe haven either?  


JOHNSON:  Yes, the problem, of course, is there`s an old expression in our  business called, you know, is that there`s no solutions, there are only  trade options.  So you could go to the bond market, money market, mutual  funds, up to a 30-year treasury.  Your money might be safe but the returns  there are not very attractive or not very appealing, talking about 1.5  percent to, say, 2.5 percent at best.  


So that`s a real problem.  And then, of course, when you look at what we  call a traditional safe haven like gold, it`s not as though the price of  gold doesn`t also trade up and down or there`s volatility associated with  it.  And you know, Sue, going into a bear market that might be accompanied  by a recession, if that is the case, gold does serve as a good safe haven,  it does outperform the market.  


But quite frankly, coming out of a bear market that`s accompanied by a  recession, there`s no need or anybody`s — nobody`s looking for a safe  haven.  And the case for inflation is all but eliminated.  So, gold  performs poorly under those conditions.  So the point is there`s volatility  associated with that traditional safe haven called gold.  


GRIFFETH:  There are sectors of the stock market where people have been  going to find refuge away from volatility.  I think of utilities.  I think  of health care.  I think of, you know, some of those industries that are  not as affected by trade with China.  
But they`ve become, as we like to say, crowded trades.  So, how safe really  are they right now?  


JOHNSON:  You know, that`s right.  Everybody`s a little bit worried that  that`s been played too much.  In other words, the traditional so-called  defensive safe sectors, and you mention health care, you mention utilities,  I would add consumer staples to that list.  
GRIFFETH:  Right.


JOHNSON:  They`ve had a real run to the upside.  So you wonder if there`s  anything left.  But the point is, is that I hear from a lot of clients that  they`re very worried about the volatility.  They can`t sleep at night.  If  you can`t sleep at night, think about reducing your allocation to equities.  
If you can`t sleep at night, start to shift towards safer sectors like  utilities and consumer staples.  And probably, Bill, you know, the most  important thing is to think about dividend strategies.  


HERERA:  OK.
JOHNSON:  Buy stocks with good dividends.  
HERERA:  Hugh Johnson with Hugh Johnson Advisors, thanks, Hugh.  
JOHNSON:  You`re welcome.


GRIFFETH:  Now, despite the rise in the stock market today, the threat of  new tariffs is still very real.  And that could create a bigger headache  for some of the key sectors of the U.S. economy.  So, tonight, we`re going  to look at the potential impact on three of those sectors — retail, autos,  and technology.  
We begin with the retail sector which has a lot of exposure to the world`s  second-largest economy.  
Here`s Courtney Reagan.  
(BEGIN VIDEOTAPE)


COURTNEY REAGAN, NIGHTLY BUSINESS REPORT CORRESPONDENT:  Much of the focus  of this quarter`s retail reports has been the impact of tariffs on goods  made in China.  Companies from Home Depot (NYSE:HD) to Kohl`s have talked  about strategies to mitigate the higher costs from tariffs.  Well, no  retailer is so far in favor of the tariffs, most are figuring out how to  lessen the impact so that profit is protected for investors and prices are  stable for shoppers.  


But that was when tariffs ranged from 10 percent to 25 percent.  Now  they`re 15 percent to 30 percent.  And President Trump told U.S. companies  to pull production out of China altogether.  


The National Retail Federation said, quote: It`s impossible for businesses  to plan for the future in this type of environment.  The administration`s  approach clearly isn`t working.  The answer isn`t more taxes on American  businesses and consumers.  Where does this end?  


But distributors and retailers of America said there is zero doubt shoe  prices will rise, hurting poor families the most.  This uncertainty may  directly plunge us into a recession where we shed thousands of American  footwear jobs.  


Quote: The United States has created record expansion built on a confident  and empowered consumer.  A protracted and costly trade war is the one thing  that can shatter consumer confidence and ground this economic high.  That  from the retail industry leaders association.  


Even as retail has moved manufacturing out of China over the past decade,  more U.S.-sold shoes and clothes are still made there than anywhere else.   Prior to Friday`s escalation, Nordstrom`s CFO had said the tariff impact  would be, quote, relatively immaterial, and Urban Outfitter CEO said he is,  quote, reasonably confident that the effect will not be too great.  


Macy`s (NYSE:M) CEO said he was working on solutions to manage a 10 percent  tariff on merchandise including clothing and shoes without raising prices.   But if that goes up to 25 percent, the path is unknown.  It`s not clear  what the plan is now for Macy`s (NYSE:M) and other retailers.  
For NIGHTLY BUSINESS REPORT, I`m Courtney Reagan.
(END VIDEOTAPE)


GRIFFETH:  For the U.S. auto industry, China represents its largest market  in the world which is why a resolution to the trade war with China would  bring a sense of stability and clarity to that sector.  
Phil LeBeau has more.  
(BEGIN VIDEOTAPE)


PHIL LEBEAU, NIGHTLY BUSINESS REPORT CORRESPONDENT:  The car business in  China is slowing down.  And you can see it in showrooms.  In fact, as that  country`s economy has pulled back, auto sales that surged over the last two  decades have fallen for 13 straight months.  


That`s hurt automakers like GM, which has several plants in China, and sold  3.6 million vehicles there last year.  Last quarter its China profits fell  by more than 50 percent.  


Now with President Trump and China`s President Xi threatening to raise  tariffs again, automakers are preparing for the fallout.  Take Tesla.  One  report out of China says the automaker will raise prices later this week in  response to China once again lifting tariffs on American-made cars.  Tesla  will be able to avoid those tariffs when the starts building the Model 3 in  China.  


CEO Elon Musk broke ground on Tesla`s shanghai plant earlier this year and  says it should be up and running in a few months.  Meanwhile, SUVs from BMW  and Mercedes built in the southeastern U.S. and shipped to China would also  be hit by higher tariffs.  


The uncertainty that swirls around the China auto market shows no sign of  slowing down.  Especially with the U.S./China trade war flaring up again.   Meaning an industry that was counting on China to rev up profits has  shifted gears and must accept slower growth in the future.  
Phil LeBeau, NIGHTLY BUSINESS REPORT, Chicago.  
(END VIDEOTAPE)


GRIFFETH:  And then there`s the technology industry, arguably one of the  most influential sectors in the markets because of its weighting in the S&P  500.  
Josh Lipton looks at the potential fallout.  
(BEGIN VIDEOTAPE)


JOSH LIPTON, NIGHTLY BUSINESS REPORT CORRESPONDENT:  Many tech companies  count on China as an important market and depart of their supply chains.  


Take the semiconductor industry.  It does a lot of business in China.   According to one estimate, there are some companies in that sector  generating more than half of their revenue in that country.  And don`t  forget Apple (NASDAQ:AAPL).  China represents an estimated 12 percent of  its sales.  It`s also where the company assembles many of its products like  iPhones and iPads.  


There`s a big date coming up for apple, September 1st, when its wearables  like the watch and air pods could get hit with a 15 percent tariff.  
Given these trade tensions, some analysts think a smart bet for tech  investors could be stick with those companies that don`t have exposure to  China.  


MARK MAHANEY, RBC CAPITAL MARKETS:  Our top two picks, Netflix  (NASDAQ:NFLX) and Facebook (NASDAQ:FB), have zero exposure to China.  So,  we like these stocks.  We don`t think they`ll be impacted by trade  tensions.  


LIPTON:  And there`s one thing most experts agree on, that the increase and  uncertainty is making it even trickier to navigate this critical sector.  
For NIGHTLY BUSINESS REPORT, I`m Josh Lipton, San Francisco.  
(END VIDEOTAPE)


HERERA:  It is time to take a look at some of today`s “Upgrades and  Downgrades”.  
Lyft was upgraded to buy from neutral at Guggenheim.  The analyst cites  factors including rising fares and expects the ride hailing company to be  profitable by 2021, two years sooner than his previous estimate.  The price  target is $60.  The stock gained 4 percent to $51.21. 

 
Dish was upgraded to strong buy from market perform at Raymond James.  The  analyst says the company is well-positioned whether it stays as a paid TV  service only or expands into 5G wireless.  The price target is $44.  The  stock was up about 4 percent to $32.26.  


Foot Locker was downgraded to neutral from positive at Susquehanna.  The  analyst said the company`s outlook is still too optimistic.  Price target  $39.  The stock finished the trading session up almost 5 percent, though,  and — on the trading day.  


GRIFFETH:  Still ahead, a judge rules against Johnson & Johnson (NYSE:JNJ)  in an opioid lawsuit.  So, why is the decision a relief to shareholders?  
(MUSIC)


HERERA:  A legal ruling against Johnson & Johnson (NYSE:JNJ).  In a  landmark case, an Oklahoma judge said the company helped fuel that state`s  opioid crisis and ordered it to pay the state about $570 million.  This is  the first trial in the U.S. seeking to hold a drugmaker accountable for the  opioid epidemic.  The stock rose in initial after-hours trading, probably  because Wall Street was expecting the monetary penalty to be much higher.  


Meg Tirrell is at the courthouse in Norman, Oklahoma, for us.  
So, Meg, what can you tell us about this particular decision?  


MEG TIRRELL, NIGHTLY BUSINESS REPORT CORRESPONDENT:  Well, Sue, this is an  incredibly closely watched decision, both by the public and Wall Street.   Analysts had said that J&J could have been on the hook for $1 billion to $2  billion here and when the verdict came down, or the judge`s decision came  down at $572 million, that may be why you`re seeing stocks rise.  


Attorney General Mike Hunter directed his comments directly to the CEO of  Johnson & Johnson (NYSE:JNJ) after the decision came down.  Take a listen.  
(BEGIN VIDEO CLIP)


MIKE HUNTER, OKLAHOMA ATTORNEY GENERAL:  Johnson & Johnson (NYSE:JNJ) is a  member of the Business Roundtable.  And I`m asking the CEO of Johnson &  Johnson (NYSE:JNJ), Alex Gorsky, to put his money where his mouth is and  get out his checkbook.  
(END VIDEO CLIP)


TIRRELL:  Now, J&J said in a statement directly after the decision that it  will appeal this decision and that it`s going to seek to stay the order  that it pay $572 million throughout that appeals process, which it expects  to take through 2021.  Now, there is other litigation that is about to  start potentially in the fall involving Johnson & Johnson (NYSE:JNJ) and  more than a dozen other companies.  J&J said this outcome should have no  bearing on those cases and said in those cases, it is open to all sorts of  outcomes including potentially a settlement.  


Now about this case, we talked with J&J Attorney Sabrina strong directly  following the decision.  
(BEGIN VIDEO CLIP)


SABRINA STRONG, JOHNSON & JOHNSON ATTORNEY:  Our position on this is that  the decision is flawed.  There`s no basis for liability against the  company, whether you`re looking at the law or looking at the facts.  
(END VIDEO CLIP)


TIRRELL:  So a momentous decision today here in Oklahoma, but not at all  the end of the opioid litigation.  
Guys, back to you.


HERERA:  Indeed.  Meg Tirrell in Oklahoma City — Meg, thank you.  
GRIFFETH:  Joining us to talk about what this really means for the rest of  the pharmaceutical industry, Chris Meekins is back with us.  He`s health  care policy analyst at Raymond James.  
Chris, good to see you.  Thanks for joining us tonight.  


CHRIS MEEKINS, HEALTHCARE POLICY ANALYST, RAYMOND JAMES:  Thanks, Bill.


GRIFFETH:  So they were found liable but the judge, Wall Street was  expecting a penalty of maybe $1 billion to $2 billion, it was only $572  million, something of a surprise there.  
What impact is all of this going to have on future litigation that Meg was  referring to, do you think?  


MEEKINS:  Yes, so the state was asking for $17 billion.  Generally, the  street thought it would be $1 billion to $2 billion.  It ended up being  about half that, at $500 million.  So, I think from a broader perspective,  while Johnson & Johnson (NYSE:JNJ) may want not to tell what`s going to  happen in future litigation, there`s no question people are watching this.   And I think it could result in maybe a lower settlement than what some  people were thinking in the other cases in Ohio.  


HERERA:  What about the issue of settlement which Meg brought up as well?   We saw Purdue settle, we saw Teva settle, might we see more of that rather  than future litigation?  


MEEKINS:  Yes, I think generally speaking the companies are going to look  for a way to settle.  In addition, one of the benefits of settling is that  you won`t necessarily have to pay all that cash up front.  There are  multiple different mechanisms in the funding of a potential superfund to  look at ways to fund opioid treatments going forward in states across the country.  


HERERA:  There is a very, very large case that will be heard in New Jersey  where they`ve consolidated so many of the lawsuits against the  pharmaceutical companies on this.  The judge has hoped that the companies  will be able to find a settlement before this thing goes to trial.  What do  you think is going to happen there?  I mean, that really gets down to the  heart of the issue for this.  


MEEKINS:  Yes, I think the ruling in Oklahoma really benefits both sides to  pursue a settlement.  So companies know that they probably are going to be  held liable based on the Oklahoma ruling.  And from a city, county, state  government side, they may not be able to get as much money as they were  planning.  So, whether you`re a pharmaceutical manufacturer like Teva,  Purdue, Johnson & Johnson (NYSE:JNJ), or a distributor like McKesson  (NYSE:MCK), or AmerisourceBergen (NYSE:ABC), that`s really a part of these  lawsuits, you`re going to look for a way to structure a settlement to  really put this behind you, to really stop that overhang on the stock.  


HERERA:  In terms of the monetary damages that were demanded of J&J today,  it was as bill mentioned lower than what the street was looking for.  Does  that change the math for some of the future litigation or future  settlements?  


MEEKINS:  I think it does.  I think it may bring it down a hair.  But  you`re still looking at more than 1,500 lawsuits across the country  involving cities, counties, and states.  So while Oklahoma was one of 50  states, there`s still going to be a large amount of money.  
So, for example, the drug distributors, we anticipate you could see them  being hit for north of $20 billion among all the distributors in what a  settlement could look like.  


GRIFFETH:  Chris Meekins with Raymond James — thanks for joining us  tonight.  
MEEKINS:  Thanks so much, Bill.


HERERA:  Bristol-Myers moves closer to buying Celgene (NASDAQ:CELG).   That`s where we begin tonight`s “Market Focus”.
Celgene (NASDAQ:CELG) is selling a psoriasis drug called Otezla to Amgen  (NASDAQ:AMGN) for over $13 billion in cash.  The company`s hope the sale  will address antitrust concerns related to the $74 billion proposed merger  between Bristol-Myers and Celgene (NASDAQ:CELG).  Amgen (NASDAQ:AMGN),  Celgene (NASDAQ:CELG), and Bristol-Myers were all up more than 3 percent in  today`s session.  


Drugmaker Zogenix (NASDAQ:ZGNX) is buying privately held bio pharmaceutical  Modis Therapeutics for $250 million.  Modis focuses on developing drugs for  rare genetic diseases.  The deal is expected to close in September.   Zogenix (NASDAQ:ZGNX) shares slid more than 8 percent to $45.79.  


And in another merger, PDC Energy has agreed to combine forces with fellow  energy producer SRC energy in a deal valued at more than $1.5 billion.  PDC  hopes that acquisition will bolster its free cash flow.  PDC shares rose  more than 17 percent to $29.65.  While SRC Energy shares jumped more than  12 percent to $4.65.  


GRIFFETH:  Mail management company Pitney Bowes (NYSE:PBI) is selling its  software solutions unit to data company Syncsort for $700 million.  Pitney  Bowes (NYSE:PBI) says the sale will allow it to focus on shipping, mailing,  and related financial services, and also help reduce its debt load.  The  stock dropped more than 8 percent today to $3.31.  


KFC is the latest fast food chain to test a Beyond Meat product.  This  time, it`s a plant-based chicken.  The beyond fried chicken menu item is  going to be test marketed at one KFC store in Atlanta this week.  If the  response is positive, the item will be rolled out to other stores.  Beyond  Meat shares rose more than 5 percent to $155.13.  


HERERA: Coming up, Disney (NYSE:DIS) streaming service hasn`t launched yet  but analysts say it already has an advantage over others.  
(MUSIC)


HERERA:  There was one major economic report released today, and that was  durable goods.  The Commerce Department says orders for long-lasting items  rose 2.1 percent in July.  That`s the second straight monthly gain and  better than economists had predicted.  Within the report, a measure of  investment spending also picked up.  


GRIFFETH:  Gasoline prices are still falling.  The average price of a  gallon of regular now is $2.66, that`s 8 cents lower than it was two weeks  ago.  And according to the survey, it`s 25 cents lower than we were paying  last year.  The highest average price in the nation right now is $3.57 in  Honolulu; lowest, $2.07 in Baton Rouge, Louisiana.  


HERERA:  Disney (NYSE:DIS) has been a big winner at the box office this  summer and it hopes to be the big winner this fall when it launches its  streaming service called Disney (NYSE:DIS) Plus.  Over the weekend, Disney  (NYSE:DIS) gave a few more details on how it plans to compete in the very  crowded streaming space.  
Julia Boorstin has more for us tonight.  
(BEGIN VIDEOTAPE)


JULIA BOORSTIN, NIGHTLY BUSINESS REPORT CORRESPONDENT:  Disney (NYSE:DIS)  giving a look at its annual D23 Convention and how Disney (NYSE:DIS) Plus  aims to apply the same blockbuster approach to streaming as it has to  successfully dominate the box office.  We`ll have far fewer original shows  than Netflix (NASDAQ:NFLX) does, but Disney`s focusing on the big brands  with big budgets that could stick up from the streaming clutter.  


Disney (NYSE:DIS) debuting a trailer for on “Star Wars” spinoff series,  “The Mandalorian”, drawing over 13 million views on YouTube in two days.   It`s one of eight new shows to debut on the service on November 12th.   Disney (NYSE:DIS) also revealed a new trailer for “Star Wars: The Rise of  Skywalker” opening in December, reminding fans Disney (NYSE:DIS) Plus will  be the exclusive streaming home for all of Disney`s upcoming movies  including “Captain Marvel”, the day of the streaming services launch.  


BRETT HARRISS, G. RESEARCH ANALYST:  Their content is distinct because it  lives within these established franchises.  So, “The Mandalorian”, for  example, looks like it`s going to be a very high-quality series, but it`s  set within the “Star Wars” universe which already has a very, very large  fan base built into it.  


BOORSTIN:  Disney (NYSE:DIS) also announcing more details about Disney  (NYSE:DIS) Plus, that show the media giant`s strategy to appeal to  consumers in the face of so many streaming alternatives, including Netflix  (NASDAQ:NFLX), with even more coming from Apple (NASDAQ:AAPL), AT&T  (NYSE:T), and NBC Universal (NYSE:UVV).  Disney (NYSE:DIS) Plus` standard  $7 plan or $13 bundle with ESPN Plus and Hulu will include up to seven user  profiles and four streams at the same time.  And it will include streaming  in 4K and HD.  


To compare, Netflix (NASDAQ:NFLX) charges $16 for 4K and four streams.   Now, unlike Netflix (NASDAQ:NFLX), Disney (NYSE:DIS) plans to release new  episodes of its originals weekly, rather than dropping them all at once.   Disney (NYSE:DIS) indicating it will continue to mine its deep library as  well as Fox`s, with its “Simpsons” movie, as well as a spinoff for Disney  (NYSE:DIS) Plus in the works.  


HARRISS:  Disney (NYSE:DIS) is going to be incredibly competitive with  Netflix (NASDAQ:NFLX), both from a content perspective and specifically  from a pricing perspective, based off of the announcement we`ve seen so  far.  What it means for Netflix (NASDAQ:NFLX) is life is going to get much  more competitive for them.  


BOORSTIN:  As Disney (NYSE:DIS) gets closer to launching its streaming  service, the incumbent in streaming, Netflix (NASDAQ:NFLX), has been  struggling.  Its shares have lost 20 percent since its earnings in mid- July.  While Disney (NYSE:DIS) shares are down 7 percent over that same  period.  Netflix (NASDAQ:NFLX) is facing growing concerns about its  declining U.S. subscriber base in the face of heightened competition from  Disney (NYSE:DIS) and others.  


For NIGHTLY BUSINESS REPORT, I`m Julia Boorstin in Los Angeles.  
(END VIDEOTAPE)


HERERA:  Before we go, here`s another look at the day`s final numbers from  Wall Street.  The Dow rose 269.  The Nasdaq was up 101.  The S&P 500 added  31.  


And  that is NIGHTLY BUSINESS REPORT tonight.  I`m Sue Herera.  Thanks for  joining us.


GRIFFETH:  I`m Bill Griffeth.  Have a great evening, everybody.  We`ll see  you tomorrow.  


END
Nightly Business Report transcripts and video are available on-line post  broadcast at http://nbr.com. The program is transcribed by ASC Services II  Media, 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) 2019 CNBC, Inc.


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