Transcript: Nightly Business Report – November 8, 2016

NBR-ThumANNOUNCER: This is NIGHTLY BUSINESS REPORT with Tyler Mathisen and Sue

are a lot of them. And no matter who wins the White House, the next president will have a long list of                                                                             things to do.

Blue collar blues. Why many in the heartland are thinking about jobs when
they head to the polls.

America`s bullhorn. Social media played a big role during the presidential
campaign. And it`s pulling out all the stops to get people`s attention

Those stories and more tonight on NIGHTLY BUSINESS REPORT for Tuesday,
November 8th.

Good evening, everyone. I`m Sue Herera. Tyler Mathisen is on assignment

Election Day is here, finally. And today, stocks climbed, extending the
rally from yesterday, which saw the biggest gains in eight months. It
wasn`t just stocks, bond yields also rose as did the price of oil. And the
Mexican peso, seen as sensitive to the election outcome. It strengthened
against the dollar.

Americans went to polls to vote for the next of the United States in what
has been a contentious campaign season. Hillary Clinton cast her vote this
morning in Chappaqua, New York. Donald Trump in New York City.

And by the close, Wall Street, Dow Jones Industrial Average gained 73
points to 18,332, the NASDAQ added 27, and the S&P 500 rose 8.

But no matter who wins the White House, the next president faces a number
of economic challenges, including slow growth, rising income inequality,
jobs moving overseas and a growing deficit.

Andrew Friedman, principal at the Washington Update joins us to talk about

Good to see you, Andrew. Welcome.


HERERA: Let`s start first of all, we`re going to go with each candidate
individually. Let`s start with Mrs. Clinton. She may be working with a
difficult or recalcitrant Congress. What do you think she`s going to be
able to get done?

FRIEDMAN: Well, you`re right. At a minimum, she`s facing a House that is
Republican and as you say, recalcitrant. They`re not going to want to
necessarily implement her programs. And that makes it harder, because a
lot of her programs for the economy, additional social spending and things
like that, won`t happen.

But I think there are three areas where we might see some progress. One is
an infrastructure program, providing jobs to try to repair the nation`s
infrastructure. The second is perhaps repatriation of overseas earnings
from multinational companies. As you know, we have $2 trillion of earnings
overseas that can`t be brought back without a 35 percent tax. And there`s
some idea, maybe we can lower that tax rate and get that money back.

So, I think those are two areas. The third is trade. While the TPP, the
Trans Pacific Partnership, is probably dead, I do think the House
leadership is pro-trade, as is Clinton.

HERERA: Right.

FRIEDMAN: So I think that might be an area of agreement.

HERERA: Where will she not be able to make progress? I know she`s calling
for a higher minimum wage.


HERERA: Student loan relief and a number of other issues that Congress, at
least publicly, has kind of pushed back on.

FRIEDMAN: Yes. Those are perfect examples. Congress is concerned about
the deficit. At least the Republicans are. And her programs cost a lot of
money — government-sponsored education, government-sponsored child care,
student loan relief, higher minimum wage. I think those will run into
headwinds in the House and won`t happen.

HERERA: Let`s move to Mr. Trump.

Defense spending has been on the list. Tax cuts have been on the list, and
he`ll be dealing with, we presume, a much more agreeable and favorable
congressional structure.

FRIEDMAN: Exactly. I assume that what the Senate will go the way of the
White House. So, Trump would be facing a Republican Congress, which would
be only too happy to cut taxes and increase spending on defense. So I
think that is one thing that could initially perhaps help the economy.

What would hurt the economy are his trade proposals. He has an American
first proposal. He wants to impose a high tariff on exported goods. Our
trading partners will retaliate. And that means exports will plunge from
the U.S. and consumer prices will rise, because we don`t have foreign

I think the other concern about a Trump presidency, and this happens with
the Clinton presidency, too, is they`re not addressing the final economic
point you raise, which is the deficit. Under either president, the deficit
goes up. Under Trump, I think it explodes. And you end up with so much
debt, you have to wonder if we don`t see a recurrence of some of the debt
problems we saw a number of years ago.

HERERA: Now, if Mr. Trump wins, as I said, he has more favorable
congressional structure, we assume at this point. But if Mrs. Clinton
wins, how does she then get anything done?

FRIEDMAN: Well, if she can`t get things through Congress, and I don`t
think she will, by and large, then she`s going to resort to the use of
executive order, and regulation. The same way President Obama has. And
then you`ll see, I think, her picking and choosing various sectors that
could have trouble, financial services with more enforcement and an
expansion of Dodd/Frank. Pharmaceutical companies, because she wants to go
after drug prices. Fossil (NASDAQ:FOSL) fuel, she doesn`t want to have
drilling on federal lands.

So there, I think it`s kind of a picking and choosing of industries that
she wants to unilaterally change.

HERERA: Andrew, always a pleasure. Thank you very much for joining us

FRIEDMAN: Thank you, Sue. I appreciate it.

HERERA: Andrew Friedman with the Washington Update.

Economic and money issues top of mind as Americans across the country cast
their vote. Tonight, our reporters are covering the topics important to
you, your money and business. From the gaming industry in Nevada to
Arizona`s propositions, the influential millennial vote in Colorado, and
manufacturing jobs in Indiana.

But we begin with Diana Olick, who spoke to retirees about entitlements in
Delray Beach, Florida.


ball don`t mix — at least not at the kings point retirement community in
Delray Beach.

ELLEN KORELITZ, SENIOR VOTER: There`s been a lot of political discussions
on the bench as we wait to come in the game. Once you`re on the court, all
bets off.

OLICK: Three of this mixed doubles group are Clinton supporters. One is
for Trump.

JAMES DARST, SENIOR VOTER: I think he addressed the issues that are
important to me.

OLICK: But the issues are more varied in this community than you might

KORELITZ: Well, I Googled how they stand on all of the important issues to
me and Social Security was certainly one of the issues. Health care was
certainly one of the issues. Women`s rights certainly one of the issues.

OLICK: Out on the golf course, Judy Herman and fellow player, Evelyn
Workman, told us it was very hard to get past the nastiness to find the

JUDY HERMAN, SENIOR VOTER: I had to consider the personality and the
things that had been on the air about Donald Trump and the things he had
said. I voted for the lesser of the evils, basically. I did not care for
Hillary. I think she has a lot of baggage also. But I felt I had to vote
for her.

OLICK: When specifically asked about issues usually important to seniors,
she did express concern.

J. HERMAN: I`m 73, and I think that a lot of people my age who are still
active adults going out and doing things all day still depend on some of
those programs. Medicare is a big program.

OLICK: Judy`s husband, a veteran, who worked for the Army for 35 years,
was equally concerned for the future of his seven grandchildren, but also
worried about America`s place in a changing world economy.

DICK HERMAN, SENIOR VOTER: Russia seems to be doing what it feels like.
China is moving into a whole new mode. We don`t have any really naval
presence in the China Sea. So, we`re losing respect all over the world.

OLICK: The one issue that came up over and over among seniors here was
honesty. The hope being that honesty in the White House is not too old

For NIGHTLY BUSINESS REPORT, I`m Diana Olick in Delray Beach, Florida.


HERERA: Next, we head to Terre Haute, Indiana, and Phil LeBeau.


Baesler`s Market in Terre Haute, Indiana, wound its way through two aisles
as folks waited 45 minutes to an hour to cast a ballot.

UNIDENTIFIED FEMALE: I voted for Trump, because the thought of having him
president is less scary than having Hillary as president.

UNIDENTIFIED MALE: I voted for Hillary Clinton, because I just don`t think
Donald Trump is ready to be in office yet as president. Just don`t think –
– I know she`s kind of crooked, but my best choice right there.

LEBEAU: For most of the people here in Terre Haute, whether they waited in
line to vote on election day, or if they voted in advance, their number one
concern is picking a president who will get the economy growing at a faster
clip, because in this area, there`s a sense that Terre Haute is not seeing
the benefits as the rest of the country when it comes to the economy.

GARY MORRIS, CLABBER GIRL CEO: Everybody wants prosperity. And so, when
they`re going to vote, I think that`s what they`re voting for. They want
something dramatic to happen that`s going to change so that they can have
some prosperity.

LEBEAU: Terre Haute, like many smaller cities in the Midwest, has the blue
collar blues. While manufacturers were hiring as the area came out of the
recession, job growth has plateaued in recent years. At the same time, the
average weekly income for Vigo County trails the rest of the state and is
well below the national average. Trends many here believe Donald Trump can
reverse with his plans to change America`s trade agreements.

If Trump wins this county, it raises the question of whether he wins the
presidency. That`s because this county has been carried by the eventual
winner of the national election, all but two times since 1888. But some
wonder if that trend ends this year.

Vigo County correctly identifying the presidential election victor every
year will fail this year, as Trump will probably win the county and Hillary
Clinton will probably win the national race.

LEBEAU: Whoever wins, Terre Haute is hoping they bring a boost to an
economy trying to catch up with the rest of the country.

Phil LeBeau, NIGHTLY BUSINESS REPORT, Terre Haute, Indiana.


HERERA: Kayla Tausche is in Boulder, Colorado.


Colorado, more than two-thirds of ballots are cast by mail.

UNIDENTIFIED MALE: I voted in my room, mail order ballot. So I just
filled it all out and dropped it off.

TAUSCHE: Some 2.2 million votes counted as of Election Day. The two
candidates taking decidedly different approaches here. Trump on offense.

extremely well. You do know.

TAUSCHE: Visiting the state personally 13 times this fall. Clinton
playing defense, relying on ad spending by super PACs and high-profile
surrogates in the home stretch.

AL GORE, FORMER U.S. VICE PRESIDENT: You live in a state that is right on
the edge. The election is going to be decided by the turnout tomorrow, by
the margin here in Boulder. By the number of you who agree to go out and
convince others to go to the polls.

TAUSCHE: Turnout by millennials, especially Hispanic millennials, will be
closely watched.

EMILY SHERIDAN: I think that we make up the biggest voting block now as
millennials and I think that will be the legacy of this election is that
millennials` voices were heard. And we decided the path that we wanted
this country to go in.

TAUSCHE: In both Colorado and the rest of the country, millennials are now
a third of eligible voters on par with baby boomers. Yet half don`t
affiliate with a political party.

who are not that happy with Trump or Clinton are easily attracted, I think,
by Johnson and Stein, and so we see probably in Colorado, those numbers
will be a little bit higher than what you see in other states.

TAUSCHE: Take college Republican vice president Justine Sanders.

Evan McMullin. Personally, I think he represented conservative values.

TAUSCHE: No Republican has won the White House without the Centennial
State since 1908. This year, a new generation could decide that outcome.

For NIGHTLY BUSINESS REPORT, I`m Kayla Tausche, Boulder, Colorado.


HERERA: Contessa Brewer in Phoenix is looking at the state`s key


the polls today to elect a president, to decide whether to reelect Senator
John McCain and to choose whether adults should be able to buy and use pot
legally. At dispensaries like this one in Tucson, people can purchase
medical marijuana, but Proposition 205 would regulate marijuana like
alcohol, and it would levy a 15 percent tax on the purchase with the
proceeds going to schools and public health. But opponents are not

trying to play up is, you know, this could harm the public. This could
lead to harder drug use. This could not stop the underground market, and,
in fact, could make the underground market more dangerous.

BREWER: Last year, the Border Patrol seized 800,000 pounds of marijuana in
Arizona, but doesn`t see Prop 205 changing much for the drug cartels
because they focus on moving heroin and meth across the border. The most
recent poll from “The Arizona Republic” shows 50 percent support for
legalizing recreational use, 42 percent opposed, 8 percent undecided.

SANCHEZ: Both sides say it could be days until we know the outcome of this

BREWER: Another proposition on the Arizona ballot would guarantee sick
time and raise the minimum wage from 8:05 an hour to $10, increasing to $12
an hour by 2020.

UNIDENTIFIED FEMALE: I think we should raise the minimum wage. People
need to be hard-working and they need to be paid more money.

BREWER: The Arizona Chamber of Commerce launched a campaign called Protect
Arizona Jobs. Polls show 56 percent of Arizonans support raising the
minimum wage.

For NIGHTLY BUSINESS REPORT, Contessa Brewer, Phoenix, Arizona.


HERERA: And to Las Vegas, where Jane Wells is talking to casinos` CEOs.


be more susceptible than Las Vegas. When people feel good, they visit.
When they feel bad, they don`t. And while you cannot bet on the
presidential election in Sin City, Vegas CEOs are weighing their White
House odds.

JIM MURREN, MGM RESORTS CHAIRMAN: I hope after tomorrow, we won`t have to
talk about Donald Trump.

PHIL RUFFIN, TREASURE ISLAND OWNER: He`s a negotiator, first class
negotiator, best I`ve ever seen.

WELLS: Rarely has there been so much dissention in a presidential campaign
among the executives who rule the Strip. Here`s how it breaks down. The
head of MGM Resorts (NYSE:MGM) is a life-long Republican who is backing
Hillary Clinton.

MURREN: Donald Trump has alienated every trading partner we have.
Secretary Clinton will work with our trading partners.

RUFFIN: Hello. My name is Phil Ruffin.

WELLS: Phil Ruffin is also a Republican and all in for Trump. He owns
Treasure Island and is also partner in Trump`s Las Vegas Hotel.

RUFFIN: When he says he can bring back jobs, Jane, you`re talking about if
he lowers the tax, the 15 percent on corporations, they won`t leave.

WELLS: But the biggest spender on the Strip is Sheldon Adelson, head of
the Las Vegas Sands (NYSE:LVS), which owns the Venetian. He also happens
to be the richest man in Las Vegas with an estimated net worth of $32
billion. Adelson and his wife have reportedly put up $35 million for anti-
Clinton super PACs, but not directly in support of Donald Trump. Though
the Vegas newspaper he owns the Republican candidate.

And, finally, there`s Steve Wynn.


WELLS: Wynn is the lone Democrat in the group though he has railed against
the Obama administration.

WYNN: Donald calls and asks what I think. Very often, I`ll answer him.
But Donald Trump is his own adviser.

WELLS: Wynn wouldn`t guess who will win the White House, and as for his
own desires, he is the one CEO in Las Vegas playing his cards close to the



HERERA: Still ahead, pharmacy fight. CVS (NYSE:CVS) warns it`s feeling
the heat of increased competition and its stock tumbles.


HERERA: Some positive news on the labor market. The rate of layoffs in
the country fell to a record low, as the number of job openings rise.
According to the Labor Department, there were nearly 5.5 million job
openings in September, a sign that companies are willing to hire, despite a
slow-growing economy.

And about 3 million people quit their jobs, another positive sign. Workers
tend to quit only when they bet a better offer or think they can find a
better job.

As Americans head to the polls, one Federal Reserve official is urging
lawmakers to approve investment projects. Chicago Fed president, Charles
Evans, said with interest rates low, investments in things like
infrastructure could increase productivity. When it comes to the economy,
Evans added that he`s concerned about inflation, while he is comfortable
with hiking interest rates in December and any hike thereafter should be
very gradual.

The competition to fill your prescriptions is heating up. And that`s
hurting CVS (NYSE:CVS) Health, which today said prescription growth is
slowing, and its profits will be hurt next year. Shares of the biggest
U.S. drugstore chain tumbled more than 11 percent in today`s trading

Bertha Coombs has more on CVS`s challenges.


had an advantage over competitors. Its Caremark division handled pharmacy
benefits for large employees and insurers and it also profited from its
retail pharmacies filling prescriptions. But with concerns over high drug
costs, competition in the drug supply chain is getting tougher, says
analyst Ross Muken.

ROSS MUKEN, EVERCORE ISI: The more challenging environment is causing a
fight for share and that`s what`s harming profits here.

COOMBS: Analysts at Leerink Partners say competitors are giving CVS
(NYSE:CVS) a taste of its own medicine, with restrictive pharmacy
prescription networks. Walgreens paired with CVS (NYSE:CVS) rivals on
large contracts, including one with the Defense Department`s health plan
where it will be the preferred retail pharmacy, leaving CVS (NYSE:CVS) out
of network.

CEO Larry Merlo told analysts that will result in a big drop in
prescription volumes next year.

LARRY MERLO, CVS (NYSE:CVS) CEO: In total, we believe these network
actions will result in more than 40 million retail prescriptions, shifting
out of our stores on an annualized basis.

COOMBS: The competition was then the drug supply chain heated up as
consumers and employers are feeling the pain of rising drug costs. Drug
wholesalers like AmerisourceBergen (NYSE:ABC) are cutting prices to gain
market share. PBMs are now doing the same, with profit margins shrinking.
The question is, for how long?

MUKEN: You can`t, you know, give up so much price that it`s — you can`t
earn a return, because then you can`t continue to offer the consumer what
they need for their daily needs.

COOMBS: CVS (NYSE:CVS) says it will unveil the steps it`s taking to deal
with the loss of the major contracts at its analysts` day next month. But
after lowering its earnings outlook for 2017, CVS (NYSE:CVS) shares closed
at a two-year low.



HERERA: Valeant`s new management warns that its outlook is not very good
and that is where we begin tonight`s “Market Focus”.

The drug maker cut its full-year profit and sales guidance amid an increase
in generic competition. The company`s finance chief says there could still
be more surprises as the company struggles to get back on track following a
drug pricing and accounting scandal. The shares today were punished. They
fell basically more than 21 percent to finish at $14.98.

Pharmaceutical company Endo is facing increased competition and pricing
pressures in its generic drug business, and the newly appointed CEO said
the trends are likely to continue. The warning overshadowed the firm`s
better than expected results. Shares fell nearly 7.5 percent to $14.51.

Steel maker ArcelorMittal (NYSE:MT) turned a profit in the latest quarter
with results being helped by higher iron ore prices and demand from the
auto sector. The company warned though that profitability will lag in the
current quarter as well as of higher coal prices, because coal is one of
the ingredients needed to make steel. Shares fell 6 percent to $6.38.

And investors had their first channels to react to Hertz`s global
disappointing quarterly results. The rental car company also cut its
outlook for the year, citing higher costs and lower rental volume. Shares
plunged 22 percent to $27.70.

And online home goods retailer, Wayfair, saw its sales surge past analyst
expectations as an uptick in customers helped results. The company also
posted a smaller than expected loss that gave down beat sales guidance for
the current quarters. Shares were off 4 percent to $32.26.

Well, throughout the political season, social media has proven a support
group and a bullhorn for Americans. And in the final days of the election,
social platforms like Facebook (NASDAQ:FB), Snapchat and Twitter pulled out
all the stops to capture the attention of their users.

Julia Boorstin has more on social media`s election strategy.


cooler provided a respite a source of information and a place for debate.
And on Election Day, Facebook (NASDAQ:FB), Snapchat and Twitter are pulling
out all the stops to be a destination for conversation and advertising.

MARK ZUCKERBERG, FACEBOOK CEO: During the primaries in September, we also
added a register vote link at the top our Facebook (NASDAQ:FB) app that we
estimate helped more than 2 million people register to vote. Some who are
registering for the first time. Facebook (NASDAQ:FB) really is the new
town hall and we`re proud of the role that we played in enabling dialogue
in increasing civic engagement.

BOORSTIN: Facebook (NASDAQ:FB) is offering a range of tools to help its
users get directions to polling places, info on voting requirements,
candidates and issues, plus a prompt to invite friends to vote. Facebook`s
targeting capabilities are an advantage. The company is seeing a surge in
political ad dollars, particularly in competitive markets where TV
inventory is scarce.

Snapchat is also embracing the election with go vote bit emojis geofilters
to remind people to vote and live stories featuring election results,
speeches and analysis. Snapchat is also rolling out a range of political
ads including this one for Clinton that ran yesterday. And while today,
Trump is running this geo filter.

A range of down ballot candidates are also turning to Snapchat ads to reach
younger users. And Twitter featuring a reminder to vote in enabling users
to sign up for direct messengers from @gov about local senate and federal
races. Reporting a large uptick in ad spending focused on key swing

Over 1 billion tweets have been sent about the election since the debates
began last year. Twitter saying this participation benefits the democratic
process. The conversation also benefits Twitter and the other social
platforms as they compete for users as well as ad dollars, the attention

For NIGHTLY BUSINESS REPORT, I`m Julia Boorstin in Los Angeles.


HERERA: Coming up, in their own words. Small businesses are the backbone
of the American economy. Well, tonight, they share their thoughts on this


HERERA: The presidential election drove uncertainty among small business
owners to a 42-year high. While uncertainty may be growing, so is their
optimism. According to the latest report from the National Federation of
Independent Business, optimism reached its best level of the year. It`s
the smallest U.S. businesses create the most American jobs and account for
just about half of economic output.

And a number of small business owners shared with our cameras their
thoughts on the election and each of the candidates.


SHERRY WUEBBEN, ST. JOSEPH EQUIPMENT: I have made up my mind and I plan on
supporting Donald Trump. Having the business background I think is
something I view as important right now. I think the politicians have been
there long enough. When you`re in business, you have to make the payroll.
You have to pay your bills and you have to have a good relationship with
your bank. In this case, the American taxpayers have become the bank.

Clinton. I think she has proven over the years that she has the stature
and the willingness to work across the aisle to get thing done. I am
actually very scared by the potential presidency of Donald Trump.

BAKE SHAFFER: The libertarian platform appeals to me. It is less
government is better government. After the last ten years of seeing how
much government has grown, I could not agree with that concept more.

JEFF WASDEN, PROFORMANCE APPAREL: I will be voting for Donald Trump.

Not only the business acumen. I think he has an understanding of what
impacts business and hopefully providing some relief in the tax code and
regulatory space I think will do business owners here in Colorado better
than the plans put forth by Hillary Clinton.


HERERA: Here`s another look at how the major averages closed on this
Election Day before we go. The Dow gained 73 points. The NASDAQ added 27
and the S&P 500 rose 8.

Ad that will do it for NIGHTLY BUSINESS REPORT for tonight. I`m Sue
Herera. Thanks for joining me. Have a great evening. We`ll see you


Nightly Business Report transcripts and video are available on-line post
broadcast at 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) 2016 CNBC, Inc.


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