Pinp rally pushed the dow into record territory. Today a mere 6point gain did the same thing. Record highs. D s p close at but the moves didnt come easy. Stocks wavered between gains and losses. But in the end helpe c from trade optimism, earnings moment up and deeson Economic Data. Today as i mentioned the dow rose at 6 points, now mat 27681. Nasdaq up 40, the s p added 7. T in f all major amples higher for the webb. The s p finished the fifth consecutive week of gains. But the big question for investors now is can stocks move higher . As bob pisani reports, the answer my lie in the bond market. Reporter beyond the ral in the stock market we have seen a rally in bond yields. The yield on the. S. 0year treasury notariesen sharply the past seven days invenors ha seen that move in bonds since before the 2016 president ial election. Now this recent spike in yields mass pushed bank scks back into ahi leade position with regional banks like coamerica and key cor hitting highs omile utilities slumped and the much loved building stos down anywhere from 2 to 8 for onthe. But more importantly its finally given some credence to the bond bears, people who think bondrices are t high. Th big question is the how sticky is in ral in bond yields that we have seen . Well its hard to say. But if a longterm u. S. China trade deal reducing tariffs emerges. It could be sticky. The decline in bond prices could and provide fuel to give the rallyome additnal legs into the end of 2019. Now keep in mind a few key factors havelo ledl bond yields staying lower longer. Aging populations lower yields in exchange for safety. Floebl central p banks. Anicy uncertainty. The uncertainties around trade and the020 election. You have demand still outstripping supply por bonds globally. No one expects a revolution in bond price but its gotten traders buzzing about what might happen if this trend continues a little bit more or Gains Momentum into the end of the year. Like i said, thatould be a help to the stock market. Pisani at th new york stock bob exchange. New ghs in the stock market tend to come when the economy is growing but thas not case now Economic Data is shoning to slowing. Its an unusual phenomenon weli asked steveman to look into. The market surged to alltime high looks underpinned by optimistic outlook ink three ris areas, trade, growth and the fed. But some think theco optimism d be overdone. First the most important outlook is the potential for some kind of trade. That would ensure that the tariff situation economically at least doesnt get worse from here. But the market has been fooled before. And some see all the upside now priced in. The market has become much more optimistic about a trade deal and potentially tariff roll barkers so i t see risk more disappoint. Side but that could similarly with growth the market certainly when you look at earnings estimates is expecti a strong kind of rebound into next year. And for the quarter we have seen to be the lows in terms of corporate Earnings Growths. Again, i think the risks for the estimates are on the downside not upside. Econd prospect for the trade they are the bottom at the t slowdown. After the 1. 9 gain reported by the government and gdp for the thir quarter. The median forecast sees growing slowing to 1. 5 this quarr and next. But rebounds back to 2 ithe Second Quarter of 2020. And third, the back drop for all this is that Interest Rates remain low and the Federal Reserve stays on hold with a high bar to raise rate i think there is very low possibility of Interest Rates breaking out of the 1. 5 to 2. 5 for the 10year. The fed islely they learned the lesson in tightenening. Theyre on the sidelines being passive. That makes a positive bac drop for Economic Growth to continue thats good enoug for Earnings Growth to expand over the next year or two. So an optimistic outlook for pruchgt trade picture. A bounce off the bottom for sidelines created the foundation for the market to rise to alltime highs. Thethuestion is w that foundation is solid or shaky. Whether the forecasts are realistic, whether the good news for nightly business report, steve liesman. Earlier this week for the most parthere was optimism over the trade dispute between the u. S. And china. T today a noticeable change inor tone and questions. Kayla tausche has the latest from washington. The white house is hoping to have aiz deal fin with china by next we can, the original date of the apec summit a one month after President Trump and vice pm year lei hu huchlt nounced deal a said it was taking a few weeks to put in wrapg. But the stretching weeks are posture to put a preferred outcome forward. Chinaaid an agreement was reached on a scheduled roe rollback ofta ffs. Comments determined by u. S. S. Offici National Economic director larry kudlow said some tariffs would be removed. But Peter Navarro then said there was n agreement on tariffs which President Trump himself today reiterated onwais y to a fund raiser for georgia senator, david purdue. Id theyd like a roll back. Not a complete roll back because they know i wont do it. But were getting along well with china. They want to make a deal. Akfrankly they want to a deal more than i do. Im very happy right now. Were taking in billions of dolls. Im very happy. Once the deal is clinched the question is where t seenit. The white house has considered a dozen locations of varyingl politimportance and convenience for the president s schedule. Both the u. S. And china would prefer to host a signing summit on their home turf. Trump ain today suggested iowa or elsewhere in the farm belt. Even as aides this week said it when the president is in europe. For nightly business report, Kayla Tausche in washington. W and tra one of the issues we heard a lot about in earning season. But as the Third Quarter earnings season winds down what dide learn . Joining us i matt mele, the chief Market Strategist at miller taiback. Thank you, sue. From the earnings season thisy time around . Well, two things, number one it wasnt that great. It started off strong. And looked like it was going to be god. T in the earnings season they beat et expectations but they lways do because any lower them but the guidance was disappointing because it came do again looking for slighy negative groh for 4th earnings. However on the flipside you look at forward earnings a bit further out for the first and Second Quarter, the Second Quarter went from 7. 7 growth down to t7 . Not hunl decline like we saw for Fourth Quarter growth we have seen in recent months. You know, were going were still in the show mestage, especially given how much the stock market rallied. But right now its not something we want to stick a flag in the ground and say this is a fabulous earnings season zplo we are getting those mixed signals about the rollback of tariffs. But assuming that were to start happening, how would that impact the earnings down the road do you think . Well, the one problem we have wmgts is that the rollback would there is no question it i mean especially for the consumer. And theyre the most important part of the economy. But wha ds it mean for Corporate Executive sns does that really lift the uncertaintu ounding a more comprehensive deal . Im not sure that it does. So im noture theyre spending in the way that will really help the economy grow in a major way. It to be if we had a bigger deal. Broadly speaking, if you are longterm investor do you stick domestically in terms ofs innts or look overseas . I think we have to spread ourselves rabbit. The last coupl of years the u. S. Has outperformed by in a dramatic but i think now weve seen outperformance in severli areas emerge being markets, even europe over the last two or threeonths. That could continue as we move into the new year. Leave the u. S. Behind. Should but we are starting to see some bright spots in other parts of theorld. So ifou broaden the horizon youll do better20 in matt miller with miller taiback. Th matt. Thank you. Speaking of earning the gap was. Downgraded following the depart of the ceo last night and disappointing earnings, the stock fell 7 t 16. 68. Kourtney reagan looks closer at the trouble facing the once poanlar gap br it was already in a piod of transition and got more complicated. Ceo a peck istepping down. Ahead of the plan to spin out ntold navy its own public mpany in to 2020. Peck was slated to run the rest of the brands. Gap, been that republic and athleta. Bert fisherill be interim ceo. Gap, inc. Ve existed for years at peck took over as ceo in 2015 as the business started to stumble and hasnteen able to turn it around. Shoppers have more choices than and there have been a number of merchandise stumbles by gap, inc, brands including at old navy which had been the standout, though recently sales have begun to fall. Its time for a change in product. Time for a thange inught process. And also time to consider the fact thatnonstop promotions over the past several years have trained the consumer to never pay full price again. El the app retailer preannounced disappointing Third Quarter results and loweredhe fullyear forecast. Sales at gap Banana Republic and old navy all fl. The retailer said it was a challenging quarter. E cfo said macroeconomic impacts and slower traffic her results that were hampered bypduct andperating challenges. Gap planned to spin out old navy to unlock b the val its weakened. And the process costs about 1. 0 billion. Leading to a growing chor us of those thinking its best to end the planned separation. If we can save n oldy and keep it from becoming that nonstop promotional brand, there is hope for this company but injury changes need to happen in terms of product, incredibly quickly so that old navy doesnt become what the gah is, ws a low margin, nonstop promotional product. He ceo departure disappointing quarter and forecast led a number of analysts to downgrade outlooks for the company as its futures and the plan plan for the old navy spinout looks more unrtain. More nightly business report, im courtney reagan. And still ahead, spies like us when you think of linked in you probably dont think of espionage. But maybe you should. Democratic president ial p candidatee buttigieg today outlined a 1 trillion plan for Affordable Housing and child care. All part of a package of ne proposals des to benefit the middle class. His Campaign Says the programs wille paid for by reforming the way Capital Gains are taxed among the top of wealthy americans. His Campaign Provided more details about how he would lower the cost of college. Saying he would eliminate tuition at public colleges form es earning less than 00,000 and reduce the cost for those earni up to 150,000. Reportedly prepari make a late entrance into the 2020 ry democratic prirace. And that could change the current debate over wealth and taxes. Here is rert frank. Michael bloomberg would be the richest man ever to run for president. Le and w his wealth could turbo charge his campaignt could b his biggest liability in an increasingly populist democratic party. Bloomberg sending staffers to alabama to qualify for the primary theree beftodays deadline. People closeo the former mayort saying he is seriously considerin arun. Now bloombergs net worth is now 52 billion, making him the 8th richests american. Ortune comes from his 88 staken bloomberg lp, the Financial Data and news empire he cofounded i981. Now he serve as mayor of fork for 12 yeerps switching to the Republican Party for his first election an back to the democratic party. Mayor mike, as he is known in new york city has given away over 8 billion to charity mainly focused on gun control, climate change, education and health care. Now moderatre hoping bloomberg could pull the partys wealth tax and business agenda towards the krerpt. At a speech in New Hampshire earlier bloomberg said the wealth tax is pbably unconstitutional and we shouldnt bembarrassed about capitalism. He favors more evolutionary changes to the tax system and health care toeduce inequality and help those at the bottom. If you wt toolve income inequality one of the thing you have to do is you have to adjust how progressive the tax rates are. To replace the entire private system wherede Companies Pro health care for in re employees woul bankrupts for a very long time. Its just not a practical thing. Za eth warren writing to supporters last night, another example of the wealthy wanting our government and economy to only work for them. And she directed bloomberg to her billionaire wealth tax calculator which sws bloomberg paying 3 billion in wealth tax in ynder warrens plan. That billionaire class is scared and they shall b scared. For nightly business report, im robert franke. Earlier this week two former twitr gees employees were charged by the dch justice with spying for saudi arabia. The news got us wondering about other social dia companies. Eamonafters did digging and he found its not just twitter but linkedin as well. A gold mine for foreign spies. Eamon joins us with more on that. And eamon, you report linkedin as one of the biggest targets for Foreign Intelligence Service but why. Thats t question. Current and former law enforcementic ols told me linkedin is teaming with spies one of the hottest social media plafrmsorpies to go to. It has to do with what people postn there and wh first of all, what theyre posting. Its a lot of business and personal information. You put your full resume up there. All credentials where youwork,ow who you all of that is valuable information for foreign intelligence senices. And t why are you post going on linkedin . Ever oody posti linkedin is putting up information because in theory maybe down the line they want a new hher paying job,aybe more reonsibility, all of that. For an intelligence service, that means that that person may want some moy, may want representation,ay be disgruntled in their j. All of that is a thread for spies to pull t onget information. They can set up fake accounts and really pretend to be peyple e not. And draw out a lot of the information. Wow. Whats linkedin doing about this . You know, bill i talked to linkedin about this. They sf theyve been aware it for years. And working with the federal government on it. They say just in the First Six Months of e year they eliminated more than 20 million fake accounts on their site. They gave us a statement saying we actively seek out signs of state sponsored activity on the platfoak and quickly action against bad actors in order to protect members. They say ner working on this and they a aware of the problem. And they say they prioritize the saty of linkedin members participating in the site legitimately not trying to trick pele into giving over information. As we wrap up, eamon to the social media themsves have a ssibility to make sure whats being posted on the site is the tr well, that is the big qution in social media right now. Theyre all wrestling with it. You see linkedin doing it. Facebook is doing the same thing inerms of phoney and disinformation, political advertising. Thats the big question in so and its really a societywide estion. What kind of a mediawa do w to have . And what the do we want the companies to do on our behal sioux. Indeed eamon javers in washington. Thanks. You bet. Revlon sales are in need of a makeover. Thats where wet begin the mar focus with the beay products maker saying it saw north american sales slip due to declines in wellknownrantsds like almay. And Britney Spears branded frarngzs. Revlon shares plunged to 20 p 76. Despite the reporting of better than expted earnings honda cut the profit and global sales outlook. S sitionger yen and weakness in india. And plans to buy back 900 million of its own stock. The shares gained more than 3. 5 to 28. 91. Activist investor carl icahn is cutting s ake in petroleum by a third. He has been a critic of the acquisition of am dark o and advertise advised tt bored to put on t market. Shares roseo 30. 10. Outhwest around American Airlines are removing the boeing 737 maxrom flight schedules through emarch. Th airlines cited continuing uncertainty around Regulatory Approval of the jet. Southwmet aroundcan fell a fraction. Boeing shares were down to 351 even. Speaking o which tim for the weekly market monitor with three names he believes will grow between 15 and 20 over the next 18 months. This is his first for a time on nightly business report. He isevin miller the chief investmentt officer key valter funds. That thank you for havings. Proc your first pick is boeing, a gutsy call, frankly. Im curious to know why y think it will grow that much over the next 18 months. Well, the things we look at are cash flow, c whatporations do with that cash flow. We want positiv cash flow, growing cash flow. And we want to see them use that cash flow and give dividends back toeh shders. And boeing has a strong history of growing cash flow and also increasing their dividend year over year. Now, theast year as a result of what theyre in the midst of with the max jet, cash flow has kind of leveled off. But if you look atoeing back when in 2017, that stock that year was up over 90 . You look what they have for competitors, the only other competitor they have in the world, quite fraly is airbus. That gives them a good mote. Meaning another companyme cant n and take them over or move them from the position theyre in. Were going to spending money in aerospace. Theyll be part of that. They purchased an Aerospace Parts distributor can be klx recently. Thats a very high margin market. All right. So i think weve got a real Good Opportunity with them. Lets go t visa. But its also kind of an ecommerce play for you. Yeah, you know, a lot of people were were embarking on the Holiday Season. And people are doing a lot of purchases online. And either you are going to use visa, master card, american express. Well visa is broadly distributed in one of them. And its a way f investors to partake in a strong consumer as weve been seeing with the Consumer Confidence report. And what we anticipate as a strong Holiday Season without having to particularly select, you know, do i invest in walmart . Do i invest intarget, amazon . They get an indirect opportunity through that. Finly quickly if we can, home depot, is that a vote on the Housing Market . Why this one versus lowes whats the story. Housing strong dividend again, strong cash flow growth. Dividends at about 2. 4 a flation at 2. Interest rates are low. Opportunity foro people to their housing projects, Consumer Confidence is song. It just its got a probably a big are footprint than lowes. So we really like it for multiple reasons. Very good. Our market monitor this we can. Kevin miller with evaluator funds thank you for joini us. Thank you very much. Coming up a look at whats really holding back home buyers. Ew there is aarrier to entry in home ownership. And its not student loan debt. Thats just one of the Surprising New findings inti rers annual survey of who is buying homes and h. Diana olick has more. Americans are racking up more and more credit card debt. And that is now keeping some from buying houses. G said that was makt hard to save for a downpayment up from 37 the year before according to the latest annual profile of buyers from the realtors. It could be that just expenses today are so difficult for peoplendo make meet that they are putting things on credit cards that perhaps they have not typically in the past. Michelle patters is trying t get out from under her credit card debt. Almost there. Ive aost cleaned it up. Thats probably why im runt arting. Increasing debt and higher home prices are behind another striking change in the svey. Thehare of firsttime buyers purchasing homes with friends is small but it doubled in one year from 2 go 4 . D school i lived with three other women and that was fun. I thater down the road and the right place and price i would like to do that. Sll some are skeptical. On stian gordy owns a house his own. Its an interesting concept. I would like to see what happens when things dont work out legally, how do you split the assets . That wou be a problem for unmarried thcouple a growing subset is the at 9 . Husband before he was my husband with when he was my boyfriend and when he was my fiant. I think mirrors the drop in the marriage rate in the u. S. People are not necessarily embracing the institution of marriage or getting married later in life. But theyre willing t make the biggest financial purchase of their life with a partner who theyre not married to. It also mirrors the social nature of the socia generation. Something also changing, why people move. For decades the number one reason to move somewhere else was for a new job. Now suddenly the primary reason is to be closer to friends and family. For nightly business report, diana olick in washington. Finally tonight, the iconic charging bulltatue in Lower Manhattan is moving. To relocate the bull citing lan security cacerns. Ew location hasnt been announced but its expected to move closer to the new york stk exchange. And before we go, a final look at the days numbers from wall street. Where all of the major averages closed at records. S p 500 add 7. 6 nasdaq up 40 and all major indexes higher forhe week as w well. Go to go into the weekend. Indeed. That does it for us im sue herera thanks for joining us. Im bill griffeth. Have a great weekend. See you on monday. Narrator funding for this presentation is made possible by. Woman babbel, a language app that teaches real life conversations in aew language, like spanish, french, german, italian and more. Babbels 10 to 15 minute lessons are available as an app or online. More information on babbel. C. Narrator funding was also provided by. Eeman foundation. By judy and peter blumkovler foundation. Pursuing solutions for americas neglected needs. And by contributions to this pbs station from ewers like you, thank you. Woman and now, bbc world news