Sue is off tonight. Today stocks moved higher, sharplyigher on a familiar theme, trade. Chinese officials were quoted at sayiy wanted to resolve the current trade conflict in the u. S. In a wacalm manner. Some took it as a sign that the Chinese Government will not retaliate against the latest round of tariffs and the bulls ran with it on wall street. The dow was up 26 points to 26,362. The nasdaq added 116 and s the gained 36. As bob pisani reports, this rally does not have the certainty of some reporter the rally rolls on. Stocks ended yterdays gains ater chinese officials s positive tone for u. S. china trade talks. K man for Chinas Ministry of commerce said they are willing to solve it with a calm attitude. It comes three days before the next round of tariffs are slated to go into eect. That happened before theap a opg be stocks were higher throughout the day. Tradeheavy industrials like boeing and caterpillar were up. Tech names like alibaba were up. These are names withi the cyclical sectors which weredl beaten up this month. On the flip side defensive consumer groupsike utilities, lagging for a change. Y were many believe todays rally may be tentave at best. The market is stuck because traders cant figure out what the earnings outlook is for the next six months with the trade uncertainty and economy in europe and china. Therein lies the problem. Llies like we arein s today feel fragile because nobody knows how the trade wars areo going t end and how it willpo impact cte americas bottom line. For nightly Business Report, im bob pisani at the nex york stockange. Meanwhile, a new report out this morning said the u. S. Of 2 in the second quarter. Quarter, but it was pretty much in line with earlier estimates sr the second. Strong Consumer Spending helped offset a decline in business spending. A separate report showed the number of americans filingg applications for unemployment rose 4,000 to a seasonally hejusted 215,000 for week, a sign the labor market is still very strong right now. Pending hom sales, which are signed contracts to buy existing homes, they reversed despite lower Mortgage Rates. Diana olick explains what is behind those weaker numbers. Reporter home buyers i july were not so eager to make a deal. Pending home sales, which measure signed contracts for existing homes, fell 2. 5 in july compared with june according to the National Association of realtors. They wer also slightly lower than july of last year. This came after strong gains in may and june. Lower Mortgage Rates may have helped end the sprin season on a high note as they began falling at the start of may, but they did tick slightly higher in july before turning lower again in august. Todays buyers especially on the low end where demand is strongest, are most sensitive ts the sma moves in rates. The reason behind falling rates, which is concern over the economy, also doesnt help. Theres more activity right now than think thereould have been if Mortgage Rates had stayed high, but there is aof l uncertainty in the economy right now. People are worried about the recession. Thats showing up in Consumer Sentiment data and it might be holding back what would have been a larger surge i demama. Reporter pending home sales fell across the nation, but most steeply in the west where home prices are highest. Rates in august could help lili the market, but there are too few homes for sale. New listings are down according to ournd data, eventually wit more buyers out there and fewer lisngs buyers will be competing for home and we will see morbiding wars. Reporter morbiding wars will mean higr prices, yet again not what the market needs asil affordy is stretched to the limit. For nightly Business Report, im dianagtlick in wash. Our countrys trade deficit with the rest of the world their rowed in july from the prior month. According to the Commerce Department exports picked up, led by consumer goods and automobiles, whilemports fell on a decline in capital good sales. Economists say that the lower deficit is a positive though for the Third Quarter gross domesc product numbers. When it comes to trade and the trade war specifically, we have heard from a numbe of business groups who are urging the white house to postpone new tariffs or cancel them all together. Thats not what one Business Owner i california wants. He petitioning the preside for more tariffs. Ylan muay has the story from manhattan beach, california. Reporter the california beaches are the epicenter of american surf ndculture, a president trumps trade war with china is making big waves here. Surfboards are on the list ofoo chinese g that will be hit by the next round of tariffs. They start taking effect on september 1st, and one legendary board maker tells me hes totally stoked about it. Im a proponent for as high as possiblet because then becomes competitive for me. Reporter Dennis Jarvis is a former pro surfer and founder of spider surf. His worhop is not far from the beach and he makes boards for celebrities likeeanu reeves and taylor swift. At i peak in the 1990s, his shop was churning out 15,000 boards a year, h signature on every one now he only does about 1,000, as the market is flooded withr cheaoards from overeras. It is a business that you to chase it, and whats ontinue happening is because of the low cost of the imports these g as th trying to make a living doing what they love, they no longer have the rack space to be able to sit on a retail store. Reporter the industry estimates onethird of surfboards sold in americadere ma overseas. Government data sho the u. S. Imported more than 900,000 surfboards last year, most of them from china. Overall, the surfing industry is against the tariffs. In aetter tote the trump administration, its trade group warned that tariffsill lead to higher prices, lower sales and lost jobs. D so we agree that a new trade agreement is to our industrys benefit, but at the end of the day throwing tariffs on all of these goods to achieve a balanced trade agreement, we dot agreeit that. Reporter jarvis will feel the pain from the new tariffs as well. In addition to his workshop, he runs three r ailre sto out here that sell clothes, gear and, yes, even chise surfboards. He said this f iht not about personal gain but preserving a way of life. The surfboard is the nucleus of so many factors. You take in skateboarding, derived from a surfboard. Snowboarding, derived from a surfboard. Music, beach boy when you change the nucleus, what will happen to the rest of the industry . Te rep jarvis started a petition to take the tiffs on surfboards all the way up to 720 . He said e has100 domestic board makers behind him, thousands of customerignatures and he has built a custom make america gre surfboard in hopes of getting the president s attention. I dont have the answers, i am trying tohe shake tree to see what falls o a find people tt are compassionate about people losing their lively hoods and having to leave towns to find work reporter im ylan mui, in manhattan beach,california. The question being asked right now is how will the probe impact upcoming trade talks with the big three automakers. As phil lebeau reports, the contract is up in two weeks. Reporter when uar presiden gary jones marked the symbolic start of contract w talksh automakers by shaking hands with the leaders ofgm,fiat chrysler and ford, he said the negotiations would be all about getting more for members. But the fbis expanded investigation of corruption at the uaw is now hovering over these talks, especially after fbi agentss raided gary jones home looking for information about corruption a the union. Over the last two years seven people including former uaw leaders have been convicted of receiving payoffs from vendors of training pgrams. After the fbi raid, the union issued a statement sayi, the uaw will continue to cooperate with the government in its investigation as we have been doing throughout. But with more uaw leaders being questioned about corruption,bo will it impact how Union Members respond to contract offers . Many rank and file members are frustrated with the big three. Gm workers in particular are not happy the automer idled plants the u. S. While billing the newla chevy bzer at a plant in mexico. Its been more than 20 years since the last extended strike by the uaw, and few of the workers who walked the picket tine back then are s on the Assembly Line today. But whether they are old or new, uaw members believe they should get more from the big three. The u. S. Is the most profitable partf the automakers global operations. But Auto Executives are quick to point out they already share some of theh profits w uaw members every year, and they warn if labor a costs ris the auto market overall slows down, then there could be smaller Profit Sharing checks in the future. Phil y lebeau, nighsiness report, chicago. F still ahead, theres a gamechanging w people with disabilities to save. So why are o few taking vantage of it . Best buy is the latest company now to e ress concern about the trade war with china. The Electronics Retailer this morning reported earnings that were better thanpe ed, but revenu revenues were a bit light and theompany lowered the annual sales forecast, sending the stock lower on a big up da it turne out to be the worst performing stock in the s p 500 as a matter of fact tay. Courtney reagan has dails for us. Reporter it was a mixed quarter for best buy under new ceo corey barry withty uncerta surrounding tariffs and Consumer Sentiment, weighing on the reps of the year and beyond. They grew comparable sales for tenth straight quarter, just not as much as expected. Profit foreca lowered the ear expectation for sale. 60 sourcing from china means it adds a lot of uncertainty to the situaon, particularly for 2020. This tariff uncertainty is going to weigh on 20 even more so than it is going to weigh on the burth quarter of this year. Reporter besuy ceo reiterated seval times on the Earnings Call that just because 60 of its goods are subject to tariffs, mitigation strategies and the companys negotiation power will make the overall impact, q substantially. Ess. Our teams are doing excellent woit withation strategies, and at the same time were already seeing a lot of our vendors make some movesomndove considerably some of the product. Current we talk about o p currcent of cost. We think next year the percent of cost could be more like 40 . Reporter some vendors are moving manufacturing, b others areth changing the products themselves to lower costs. One such vendor is lab. 100 of the products are made in china. It is workingo manage the higher costs from tariffs with some creative solutions. Were trying to findays that we can both trim cost to ensure t u. S. Consumer doesnt t doesnt get burned as so if you think about it, all of the j lab products come with chargile that is threefeet long. Can we trim that charging cable to one foot . Reporter in aition to the riff concerns, best buy expects the gaming category to continue to beoft through the year. It was one of the weaker categories this quarter. But not all analysts are concerned about best buys ability to succeed. I feel like this happens every r time theyort earnings. For my perspective it is a buying opportunity. Im pounding theable with both fists. It is a company with a lon r trackord of under promising and over delivering. Reporter while theres a lot of uncertainty ahead with how tariffs could change the consumer outcome, the ultimate outcome is difcult to forecast. For nightly Business Report, im courtney reagan. Y you would think that tariffs stores like dr general and dollar tree because of their slimmer profit margins, but turns out tts not necessarily the case. Both discount retailers reported faster than expected rise in samestore sales and both raised theiruidance. Dollar general surged more than it the best performing stock in the s p 500 today. After a 4 pop at the open,e dollar t trended lower through the day and closed down about 2 . The song sales from the Dollar Stores coupled with strong numbers recently from larger retailers like walmart and target just drive home that ddle class consumers have money and they are spending it. But f how long . Joining us you saw michael lasel and courtney reagans report and he is back with us now, the retail analyst at ubs. Michael, thanks for joining us tonight. Good evening. Thanks for having me. I a thinkut target ceo sang he thinks it is the best seen, but macys ceo warned tham cos have no appetite for higher costs, and if the tariffs looming out there were going to mean higher cost what happe to the middle class Consumer Spending so much right now . Yes, there will be some pressure from all of therice increases with the tariffs, and it will come at an time because it wil hit around the peak of the holidays. I think we have yet to see the full burden of the tariffs come the next cou of weeks given n to hit store shelves. Will start that will impact how the prices that we as consumers see over the holiday. What are the dollar store doing right now that brings people in . Better than doing some of the others right now . Bill, what they do well is they offer very effective prices. So compelling, low prices in nt conven easytonavigate formats. We are all as consumers time ho starved, and stores are relatively easy to get in and out. And when you can couple that with getting good deals, thats what theyre doing quite well. I is showing up in their growth, and it turn making them good stocks to own. And how do you rank them whe you consider the big box retailers that are also doing well right now . We heard great numbers from target and from walmart, to name a couple as well. Yes, we have buys on dolla general and dollar tree. We like these stocks right here, especially over a multi year time horizon. What they have as an advantage that other big box retailers nt have is theyre still opening stores. In the case of dollar general, theyre opening 6 to new stores per year. Theyre coupling that with samestore sales growth and returning cash back tool sharrs to drive double digit earnings growth. That makeses it a very compelli investment athis level. Dollar tree is also opening stores, b some of its businesses are in the midst of a transformation. Like they fam dollar had underperformed for a while and it is starting to get better. We thi t thatts going to make a compelling investment as well. Michael laser with ubs. Thank you again. Thank you very muou. You bet. Thanks. Abercrombie a fitch feels the pain of the china trade tensions ahats where we begin tonights focus with the Apparel Company reporting a decline in revenue and lowering fullyear forecast. To protect from new, tarif abercrombie is looking to cut the amount ofoods sourced from china. Shares slid from 14 todayo 14. 45. It was all around good news for burlington. That apparel retailer topped wall street earnings and retail estimates. Burlington says it has not beee y affected by tariffs because only 6 of total ses are from imported goods. Improve thath company w new ventures which includes the acquisition ofkumoto gup and itsndxpansion of the canadianai the shoe company. 5. Was up 15 today to 15. 50. After thelt ball beauty reported weaker than expected earnings in revenue. The company lowered its fullyear outlook citing broadn head in the u. S. Cosmetics industry right now. Shares dropped in initial after hoays trading t it clo cd the regular session though up more than to 337. 45. As we all know saving money is a challenge for many americans. It makes it even hazarder for those with a disability. There is a program that could help families who face this financial dilemma. Sharon epperson is i lincoln, massachusetts for us t ight. Rain or she, brians hard at work, caring for his friends at berryfield farm i massachusetts. The 25 year old who has autism is feeding horses and h bank account. He works three jobs and saves er 1,000 aonth with ane goal in mind. Im saving my money for to buy the farm. Im going to name the pharmacy going to be the little patch of heaven. Es moneyter as he s to buy his own farm, brian and his parents are also hoping he will have eugh money to pay for daytoday expenses down the. Together, theyre putting money away in a special savings vehihie designed for people with n able ities called account. It was a bit of a game change for folks because for so long you were told you cant save, dont have any orassets. Rr until able accounts were created in 2014, individuals with disabilities had to have less than 2,000 of savings in their name to qualify for federal programs lik medicaid, supplemental security income and other services. Sable accou removed that cap, allowing those with special needs and their families tos contribute up to 15,000 a year in an able accountnd still receive benefits. This gives usore elbow room and gives brian the ability to savennd to p and to do what he needs to do to take care of himself,eust like every else has to. Reporter few who qualify ara taking adv of the accounts. The able Resource Center estimates 8 Million People are eligible forse accounts, yet as of juneust under46,000 were opened. Financial advisor charles mossimo says many dont know about the accounts or understand how they wwork. H an able account, if you go over the 100,000 maximum contribution y will start to lose your governmentalenefits. So you really have to manage that account toake suret stays under 100,000 throughout the life of the account. The great farmer. Yes. That is you. That is me. That is you. Reporter for brian, his able account gives him a chance to save for his dream, but also the reality of being able to help provideidor himself when his parentso longer can. Aheresexpression in the disabity community, oh, i can never die, i hav to be here forever. None of us will be. It empowersrian and gives him more freedom. And thats what i love about this. I hope it will help other families start thinking about it oner tn later. Reporter for nightly Business Report, im sharon eppersonn lincoln, massachusetts. Most expensive residential e listing in the u. S. Tonight we are taking you inside. Mazon is part of an Investor Group that has purchased a stake in the yes new york yankees games. The Group Includes the yankeesr and sincl badcasting. That stake was sold by disney, which agreed to sel the 22 Regional Sports networks owned by 21st ctury fox as a condition of disys acquisition of 21stry cen fox. Finally tonight, a look inside a california mansion mada us more than 50 years ago when it was the fictionalome of tvs beverlyev hillbillies. It is back in the spotlight as the most expensive residential listing i america. Reporter this ridence sits in one of l. A. s most rarified ighborhoods. This is the chartwell estate, owned by the late jerry french, an iconicovie mogul. This is first time tv cameras were iited inside. Back in 1986 the former chairman purchased t mansion. After a fiveyear gut transform transformed the ierior into a french chateau. A 40car mor court was built and above it a beautifu rose rden. Reporter theon bilre businessman filled it with antiques and made significantay modern additions. The grand ballroom is designed for entertaining. One ofer the special features o the property is with the flick of a switch it becomes a theater. Now, im not going to drop names, but on this very stage you would have alist performers arenas playing here for an intimate gathering of 100 guests. Reporter one level below is the estates massive wine cellar. It completely climate controlled and can hold 12,000 bottles of wine. Yo heard me right. 12,000 bottles. Reporter burie underneath the chateau are two tunnels, original to the homes 1935 construction. And this particular tunnel takes you to the spectacular pool and pool house. Pavarati who was a fridnd est to the estate used to stay here oven. Would come to he tunnels and practice because the acoustics are so gat. Ro figa reporter the billionaire added a giants head to the moh of one of the tunnels and a massive steelandwood sculpture sped like an oversized bird cage surrounded by private gardensri and pds filled with koi fish. In the 80s the owner bought three Neighboring Properties which expanded the estate to t han ten acres. He converted one property into a 5700quare foot g house. The other t he bulldozed to make way for a dratic private driveway and grassy helipad. A grand fountain built in the backyard is flanked by a pair of staircases, each with i own cascading waterfall. While redwood treessu arely only found in northern k california, it didnt stop the tv titan from creating a private Redwood Grove in his own backyard. Not only is there nothing like this in los angeles, i dont think theres anything like it in the country. Repor for nightly Business Report, im robert frank. Ow. Before w, a final lk at the day on wall street. The dow wasp 326 points as trade tensions appeared to ease. The nasdaq added 116. The s p was up 36. That is nightly Business Report for tonight. Im bill griffeth. Thanks for watching. See you tomorrow. Woman this is bbc world news america. Is made possible by. The freeman foundation; by judy and peter blumkovler foundation pursuing solutions for americas neglected needs; and by contributions to this pbs station from viewers like you. Thank you. Laura this is bbc world news america. Reporting from washington, i am
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