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prices for the very same procedure? >> on the front lines. we'll take you inside the computer lab where a cyber war is being waged against sophisticated hackers in order to protect businesses and you. we have all that and more tonight on "nightly business report" for wednesday, may 8th. good evening, everyone. tyler and i overheard some not other day will the stock market ever go down? it sure doesn't look like it. >> it never will. >> it absolutely will. we just don't know exactly when. it does seem like right now like nothing can stop wall street's bulls from pushing this market higher. in today's sessions, gains were modest, but they were enough to send the dow and the s&p 500 once again to fresh all-time closing highs. the dow was up 49 points today and the record there, 15,105 and the s&p was up by six points and helped by encouraging data on housing and on another round of strong, corporate earnings and more on those later. what does the recent run-up in the markets and rising prices for stocks mean to individual investors like you. jane wells tells us how some investors are waiting to get into the market or maybe take a little cash out. >> the markets are high and keep going higher. >> the clear outperformer was japan. >> especially today we saw you new five-year highs being hit in japan on the nikkei. >> does the individual investor believe it can last? >> i think it will continue to grow. >> it's nonsense. one of these day, it's going to crash. >> i think you will see another dip. >> many have already gone in. last quarter e trade says customers bought $1.2 billion more in stocks than they sold. td ameritrade saw a 20% jump in net new assets and charles schwab saw a 9% increase in new brokerage accounts from february to march. it seems everybody is positive. >> it does worry when everybody is positive. >> craig is an individual investor who runs a staffing company, cyber force which gives him a unique perspective on employment so he's investing in things like health care and airlines. i tend to look at things that i can feel and see, so when i just took a flight, you know, it was packed and all of these flights are packed. >> but as global markets also rise, germany just hit a new record, managers of international funds are waiting for investors to pile in, too, fidelity liked what was happening in japan and he also likes companies which cater to consumers and emerging markets. >> there are a lot of european luxury companies that get 30%, 40%, 50% that get their revenues from emerging market consumption. >> it all sounds great, but craig says a lot of regular folks have a hard time believing it. >> at this point the markets rally, but most of the people that i talk to that are regular, average joes haven't participated. either they're scare order still recovering from the last crash. ? he says the biggest challenge facing the market may not be fundamentals, but trust. for "nightly business report," jane well, los angeles. john sweeney has been busy these days talking to individual investors and reassuring them about what to do with their money. he's the executive vice president in charge of retirement and investment strategies at fidelity investments. john, the question and the dilemma, i'm sure you hear this all of the time. is it too late to get in the markets and then a pause, is it too risky to get in the markets? what do you tell your clients. >> >> right. we try to make the customer understand the role of equities in their portfolios. you remember equities are the place where you want to have inflation. you want to have consumers understand how much equity they'll have in their portfolios. >> for young investors that means they'll have almost all of their portfolios if they're saving for retirement that's 40 years in the future. a 65-year-old should probably have half of their retirement portfolio in stocks because they're trying to plan for a 30-year time horizon in which they'll live off those investments. >> but the nervousness about the markets and the direction and all that kind of stuff, there are still a lot of people who are putting money into bonds and warren buffett earlier this week was talking about investing in bonds. let's take a listen. i would like to get your reaction. >> i like owning stocks. i do not like owning bonds now. there could be conditions under which we would own bonds, but their conditions are far different than what exists now. bonds are priced artificially and that's some guy buying, are 85 billion a month and that will change at some point and when it changes people can lose a lot of noone they're in long-term bonds. >> john, is warren buffett right about it? is it too risky to be in bonds? >> he talks about the fed's $85 billion of purchase of bonds every quarter and what you have there is you have obviously been trying to stimulate the economy, and what we've been waiting for for several years now is the inflation to kick in and so we see as the fed policy continuing over long periods of time, when it will happen, how quickly it will happen and what impact it will have on rates remains to be seen. what you need to remember, though, is that bonds play an important role in a portfolio, a is a diversifier and b is balanced and you want to have the right proportion of bonds depending on your age and risk toleran tolerance. >> let's talk about depending on your age. say you're about to retire or recently retired. you mentioned a moment ago, 50% stock. how do you divide up the rest. >> so you want to think about 40% bonds and if you're worried about the prospect of bonds. they offer a different risk profile, short of duration bonds and non-u.s. bonds and all offer different risk profiles and you want to think about the mix and different types of bonds you can own in your portfolio. >> one of the things that makes investors nervous and you heard the story that jane wells did. they worry it's risky. they're worried that another shul drop and markets will plunge. i'm sure you hear this all of the time. what do you tell people? >> so remember risk. you are taking risk because you want to get a return. so when you invest in a company and you look at companies that are growing their earnings and take business risk in order to grow earnings on your behalf and you'll have to trust that the management of those companies know what you're doing. if you're buying a mutual fund is picking companies that are growing earnings and they're all expected to make sure that their earnings continue to grow and that's the place where you need take some risk so you can make sure your money is growing for you and outpacing inflation. >> what's the advice of investors in terms if they have money and they want to put it into the markets. buying a few stocks that they think are high quality stocks versus going into a mutual fund. i know fidelity runs a lot of fund, but generally speak, which way are the investors better off? >> we certainly serve investors who select their own securities and plus investors who invest in mutual funds. the question is diversification. you don't want to put your stocks in just a few names because we all know the history of companies that were once highfliers and subsequently crashed. the great thing about an actively managed fund is you have a fund manager spending every waking hour looking at those earnings statements and looking and interviewing corporate ceos, cfos and trying toic ma the best decision on your behalf. we are talking about skill, will and time. if you have the skill and you're disciplined enough to sell when the market is down and when the stock has the target price. if you are not willing to make those decisions have someone make it for you. >> john sweeney of fidelity investments. >> thanks, susie. a whole batch of earnings from corporate america to tell you about and that dominates the focus today. toyota shares h hit new 52-week highs. topping analyst estimates and its own projections. toyota expects u.s. sales to grow this year, helped by the drop in the value of the yen. shares of toyota up $119.70, up more than 3% on the day. >> earnings and revenues at news corp. also came in above estimates and the company expects to complete its split into two companies near the end of june. news corp. shares fell about a percent to $31.86 and that was in the regular session and then they surged in after-hours trading. >> activision shares hit a new 52-week high ahead of earnings report today and profits did rise 19% on the quarter on the debut of the starcraft 2 game, but guidance was cautious because of concerns about the next generation of video game consoles and fewer subscribers to its world of warcraft game. shares of activision closed at $16.26, and that is up more than 2% and then they lost ground after hours dropping more than 5% as you see on that chart. >> wendy's profits down 83% and hurt by higher food costs and increased marketing expensive. the company raised its full-year profit estimates and investors did sell off, shares falling more than 75% to close at $5.77. shares are percolating at green mountain coffee roasters and it raised guidance and announced a new five-year agreement with starbucks. that deal expands the number of starbucks product available on green mountain's keurig platform beyond north america. shares rose more than 1.5% and soared after hours adding as much as 12%. >> delta air lines is doing something it has aren't done in a decade issuing a diffident, over the next three years. delta's board approved a stock buyback program. this comes to reduce debts and profits and i talked to richard anderson and i be goin ask him about the financial performance. >> we did it with ref now performance, and extraordinary cost performance and good executining to the plan. >> one is boost your own time performance and the other is reduce the number of complaints that have been reaching the department of transportation. what are you doing operation alley to improve performance? >>. >> well, the first thing is we want to run as perfect an airline as possible. no cancellations and unless weather gives us a problem we want to run in the mid-90s with on-time performance and second, we've insent our employees to put themselves in the shoes of our customers because as our founder said, we have a responsibility over and above the price of the ticket and we have made that ring true with our employees. they're doing a phenomenal job and our customers are recognizing it. >> the story in "the wall street journal," the reason they're doing better financially is you've reduced the number of flights to a second and third-tier market. how has the reduction in the number of flights and in capacity help youed achieve better financial results. >> many of those markets were served by regional jets which are $100 a barrel fuel are uneconomic. so it's very basic. it's taking out uneconomic flying because many of those markets are what we call very thin markets. there just aren't that many passengers in those markets and once the foo-seat jet becomes n uneconomic it's imperative that we don't subsidize that flying. >> let's talk about the international business and you're about to open a new did $1.2 billion terminal in new york and you've expanded your service at laguardia. how important is the international business to you right now, obviously, a big new terminal is not something that you will amortize over just one year, but are you concerned about how vigorous the economy is in europe with respect to that new terminal? >> well, we actually plan long term for a relatively mild gdp growth around the world and we build our capacity and build our plan on that basis. at jfk, the number one carrier from new york across the transatlantic with our partners at klm and air france and alitalia. very quickly, sir richard branson, virgin, atlantic will be together in terminal 4. so we're optimistic about our positioning and it's an unrepeated position for us at jf, and we can raise that dividend one day on the deal between you and virgin atlantic. you will take a 49% stroke in it and well, woe have four levels of approval. the british government, d.o.t. and doj and we're making good progress on all four fronts and we expect to close in september. >> let's talk about one thing that has helped your revenue and hurt the traveling public in the pocketbook and that is change fees and they've been boosted industry wide from 150 to $200 for making a change. how do you justify that? >> essentially what the change fees do is prevent a situation where someone buys a ticket and then changes it over and over and over again, which in essence makes it an option on any flight, any day on any seat. we can't run the airline that way, we have to be pretty specific just like hotels are and rental car companies about wanting you to stick about your reservation. >> shares of delta hit a 52-week high today and they closed at 16 cents a share and the stock was up 57% over the past year. >> still ahead on the program, one hospital charges $320,000 for a procedure. another, $20,000 for the same procedure and we're knowing about these price swings to help drive down health care costs pop. >> first, let's look at how the international markets closed today. ♪ ♪ ♪ ♪ ♪ ♪ jeffrey skilling, the disgraced former ceo of enron struck a deal with the justice department that could get him freed from federal prison in just four years. that is ten years earlier than the sentence hand down in the 2006 conviction for fraud, conspiracy and insider trading, crimes that contributed to the energy giant in 2001. a judge has to approve the agreement at a resentencing in june. before he gets that earlier release, scott cohn has been following this story for years. tell us how this story came about, scott. >> this was a classic negotiation. remember back in 2006 when this trial took place of enron's jeff skilling and the late ken lay, the wounds from the dot com bubble were still fresh, the judge in houston sentenced him to 28 years and four months in prison and the harsh sentence, one of the harshest for white-collar crime. a court ruled that that sentence was too harsh and he should get more like 15 years and the resentencing has been on hold because skilling had a number of appeals they had to work through including going to the u.s. supreme court which sent it back to the court of appeals which still upheld the conviction. skilling upons some freed am on. he's 59 years old. the government wants to be done with this case and there's some $40 million in restitution that skilling owed to the victims and that was all tied up. the money could be distributed and skilling gets his freedom and the 19 convictions for fraud, conspiracy and insider trading stand, skilling can't appeal to them anymore. >> you know, scott, it was amazing and what was surprising to hear this decision, we've seen before other convicted, high-profile ceos not having any success in getting time off. there's allen stanford and dennis koslowski of tyco. what did skilling do that they didn't do and he got this time off? >> well, one of the issues is the case against skilling had flaws and the arc peels court mentioned that. the supreme court, as i said, kicked it back and so he had a little bit of leverage here. he was set to go to the district court and the judge who sentenced him said there was misconduct and the elite and the justice department team of prosecutors who handled this case. that would have opened up a whole new can of worm, and new appeal, pol earnly a new trial. let's get on with life. >> is it a foregone conclusion. >> it is a hurdle and remember the judge handed down the same judgment. >> he's been aware of the conference calls and he's been holding conference calls with the defense attorneys and the prosecutors. the sentencing will take place on june 21st and we'll see. >> scott cohn, thank you very much. the overhaul of the health care system has focused a bright spotlight on what hospitals charge insurers, medicare and patients who don't have any medical coverage for certain procedures and the results are startling. the data shows different hospitals often charge vastly different prices for the same procedure. hampton pearson has more on how they may impact your premiums. >> call it hospital sticker shock. first time ever government data on the huge gaps and hospital charges for the same procedures nationwide. 2011 data on what 3300 hospitals billed medicare for the most common procedures all now in a massive database that consumers can access. no comment from the hospital industry, but the obama administration says it's the kind of transparency that could be a game changer when it comes to lowering hospital costs. >> the history of the marketplace is that trance, that's certainly the hope here. >> a few xafrmels. a hip replacement calls $321,000 in an up hill facility in virginia. treating a heart attack costs $2,010 in new york, but just over $7100 at the huron medical center in michigan. the bill for gall bladder surgery topped $150,000 at a medical center in new jersey, but just over $5100 in a hospital in danville, arkansas. most patients don't get hit with the full bill because they're either paid by government or private insurance who negotiate lower payments, but those wide-ranging costs are reflected in premiums. >> the premiums track direct low is the cost of providing hair is increased and thooting a a direct impact on what they're paying consumers pay services. >> they put pressure hospitals for the costs. >> for nightly business report, i'm hampton pearson in washington. >> also on the medical front today, a new test is now available that can help distinguish between aggressive forms of prostate cancer and the less threatening once. the hope is that the test could significantly increase the number of men who would monitor their tumor. shares of genomic health, the company that makes the test rose more than 6% today. coming up, we'll take you inside a computer lab with a new war against cyber terrorism that's being wedged. >> but first, take a look now at how commodities, currencies fared today. ♪ ♪ >> on capitol hill today, computer hacking in the spotlight. a senate committee looked at the growing threat of sophisticated computer hacking attacks on corporations and government agencies, sometimes at the hands of china's military. one company in upstate new york is at the forefront of the new cyber battlefield, tracking down and stopping those violations. eamon javers has more. >> on the front lineses of the cyber war things look much different than u.s. military veterans are used to, just ask former u.s. major general. >> unlike most of my experience in the military where i had clear, technical advantage, and there are lots of us that are compared to the people that are coming at us don't have so much technical advantage. >> in the army fastbend who now oversees advanced information systems for contracting firm accelus always had the upper hand when it came to technology and manpower and in cyberspace that's not always the case. they can find themselves tangling with elite chinese army units probing every nook and crane of the u.s. defense and industrial base. >> you find you have an adversary that's adapting very, very quickly. >> that's forcing the united states to adapt quickly, too. on monday for the first time the pentagon made it clear what many in the u.s. government had discussed obliquely before. the u.s. government is being raided by hackers working for the chinese military. >> the chinese military continues to explore the role of military operations in cyberspace. >> the struggle between hackers and their targets is playing out inside defense companies and technology firms all across the country and not all of them will have the type of robust capability that you'll see here inside accelis's center. >> the analysts tore through cyber attacks to isolate and understand the constantly-evolving malware trying to penetrate their systems and for all of that, cyber security analyst says he has a grudging respect for the adversary he tangles with each day. >> what really surprises me about it is the creativity that they come at you with. it's one of those things where we will somtimes sit there and say that's really cool. evil, but cool. >> i'm eamon jafers in rome, new york. a recent report from semantics said targeted attacks were up last year. one-third of them were aimed at u.s. manufacturing and small businesses. >> and finally tonight, the number of the day for all of you sesame street fans is 121 billion. that according to the new study was the total cost of traffic congestion in america in 2011. the last year for which it was measured. it works out to $818 per commuter. so which city has the slowest of the slow jams? according to inricks of traffic information group, the winner or loser is los angeles. based on the measure, los angeles led the nation or trailed it with a traffic index of 28.8. that means it takes 28.8% more time to make a trip during peak hours than when there is no traffic. >> honolulu, this too their time, susie, the average american wasted 38 hours. that's a workweek! >> i was going to say -- >> one of the cities was bridgeport, connecticut. >> i would have said washington, d.c., the beltway traffic. >> it was number six and it's gotten worse in washington, d.c, my hometown. >> that's it for "nightly business report." >> i'm tyler matheson. that's it for me as well. have a great evening and we hope to see you back here tomorrow night. >> "nightly business report" has been brought to you by -- >> the street.com, interactive, financial multimedia tools for an ever-changing financial world. our dividend stock adviser guides and helps generate income during a period of low interest rates. helps educate sandy pgz options traders. it is a charitable trust portfolio that provides trade by trade strategies. online, mobile, social media, weir the street.com. ♪ ♪ ♪ [ chanting ] we all have a right to know if our food is gmo. narrator: we're likely to find genetically engineered foods at the ballot box and the supermarket. after nearly 20 years of eating them, questions persist. how should they be regulated? martineau: if you have nothing to hide, go ahead and label. people want to know. go ahead and tell them. narrator: how do they impact the environment? it just has one gene that's different that allows us to use a very safe and very effective herbicide. narrator: and how badly do we need them? we are telling the plant, "whenever there is drought, make more of this gene." narrator: coming up, how genetically engineered foods could shape our next meal.

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