Back. The Dow Jones Industrial average soared 320 points to 17,489. The nasdaq ros 79. And the s p 500 gained 33. And that optimism could extend into tomorrow after a trifecta of positive tech earnings from microsoft, amazon, and googles parent company, alphabet, were released late today. Lets start with alphabet. Starts with the letter a, after all. The Company Reported earnings per share of 7. 35, 14 cents better than expectations. Revenue also Beat Estimates and was 13 higher than last year. The company said the number of clicks on ads shown on its website grew more than 20 . It also announced a 5 billion buyback. That sent shares higher in initial afterhours trading. With the new Corporate Structure, shareholders may be in for some bigger changes when the Company Releases its next earnings report. And as josh lipton reports, it could bolster the case for the alphabet bulls. Reporter when google cofounder larry page explained why he created alphabet, he said one reason was to build a cleaner, more accountable company. Investors have applauded pages decision. The stock has moved higher since the Company Announced its new Corporate Structure in august. And analysts think it continues climbing higher from here. Thats because when the company next reports earnings in january it will break out the performance of its core business. That means wall street should have a better sense of how search, maps, ads, youtube, and android are performing. Financial analysts say investors will be pleasantly surprised. Investors are excited to see this because there are really two businesses within google. One their core and one these investment areas, or the noncore. Those investment areas are operating at losses. Theyre not making profits. Which is artificially suppressing the overall profits investors get to see currently. When they break the two apart, investors will be able to see that the profitability of the core is actually much higher than what weveth seen so far a hence the core is more valuable than investors see right now. Reporter when investors see that profitability the argument is that they will bid up the stock in the same way they piled into amazon after the ecommerce giant broke out the growth of its powerful cloudcomputing business. It isnt just the increased disclosure that has alphabets fans excited. They also point to Strong Revenue growth and a new cfo who is more cost conscious. The risk for alphabet when the company cause break out its Business Units in january, investors could see that those noncore Business Units are in fact even more unprofitable than they estimated. Theres also the broader risk of increasing competition for ad dollars by social media giants like facebook. Right now, though, 90 of analysts say alphabet is a buy. We could have a better sense of whether they are right when the company next reports. For nightly Business Report im josh lipton in san francisco. And now to microsoft. The tech giant and dow component easily beat wall street expectations today. Microsoft earned 67 cents a share in its most recent quarter compared with estimates of just 59 cents. Revenue for the quarter came in at 21. 7 billion. Now, that was down nearly 7 from a year ago. But the target was comparatively modest, about 21 billion. So it was a beat. Shares initially popped about 7 after hours. As for amazon, the Company Posted a surprise profit in its latest earnings report. Its second straight quarterly gain. The company citing strong sales in north america and growth in cloud computing. Amazon earning 17 cents a share. Expectations were for a loss of 13 cents. Revenue coming in at last 25. 5 billion, also topping estimates. Shares initially spiking more than 10 on the news after hours. Jon fortt tells us the key takeaway from both amazon and microsofts report. Reporter good day for seattle. Amazon and microsoft both out with earnings that beat analysts expectations on the top and bottom line. So one thing to look for in amazons report is the guidance for the important holiday quarter. Amazon at the high end guiding above analysts expectations to 36 billion in revenue. Well see where they actually come down. And then microsoft. Strong quarter from them as well. Beat on the pc line. Though the expectations were low. The one thing to look at there is the growth in cloud. Microsoftmi saying the cloud annualized run rate revenue was up 70 year over year to 8. 2 billion, keeping pace with amazon. For nightly Business Report im jon fortt. And the latest results from mcdonalds gave investors hope that the fast food chain is beginning to turn around. The companys u. S. Sales rose for the first time in two years, and investors were loving it. Sending shares up 8 to an alltime high. Mary thompson has more now on mcdonalds tasty quarter. Reporter less than a year on the job mcdonalds Ceo Steve Easterbrook making good on his promise to revive the fast food giant. Whilst were still in the early phases our turnaround plan is working. Reporter evidence of his plan to include quality, service, and to simplify mcdonalds menu reflected in the companys first increase in global samestore sales in a year and the first increase in u. S. Samestore sales in two. Easterbrook saying the momentum continues in the current quarter. Looking ahead, as we begin fourth quarter, global comparable sales are expected to be positive in all segments. Reporter behind the stronger global sales a more than 20 increase in china samestore sales. The rebound a year after supplier issues in that country cratered them. In the u. S. Its largest market the firm crediting Better Service and new items like a deluxe chicken sandwich for its higher sales. Mcdonalds profits Beat Estimates too thanks to a lower tax rate and a lower share count. And while sales improved analyst matt defrisco sees other hurdles to clear. Labor ace big issue. January 1st, 2016 you have over 20 states that are going to turn the minimum wage up higher. Certainly you have other restaurants looking for the best talent. Wageressures going to go up. Benefits are going to go up. You need to offset that. Reporter this putting added pressure on mcdonalds to keep sales growing in order to offset those higher costs. An expected driver of sales, allday breakfast introduced at the beginning of this quarter. I would say the enthusiasm that was from customers and from our teams in the restaurants are high. Its been a successful rollout. Reporter as a global firm mcdonalds sees currency headwinds taking 8 to 10 cents off its bottom line in the current quarter. Still the winds of change seem to be bringing a breath of fresh air to what had become a tired and troubled brand. For nightly Business Report im mary thompson. So is this the start of the longawaited turnaround in mcdonalds that sharltds have been waiting for . Dick bartlett with Suntrust Robinson humphrey has a buy rating on the stock with a price target of 125. Welcome. Its great to have you here, jake. And i guess with a price target like that and a buy rating you do think this is the beginning of the turnaround. Yes, i do. Theyve really set the stage here in the u. S. By improving the service and core menu items like the quarter pounder. We also have toasted buns. We have a new chicken sandwich that has been a tremendous success. Theyve really done a lot of work behind the scenes over the last year that is producing what were seeing today. Is the Customer ExperienceGetting Better . That has been a real gripe. Yes. I think the Customer Experience is Getting Better. Theres been some question about whether allday breakfast could interrupt service a little bit. But in general theyve taken items off the menu. That speeds up service. It speeds up the quality of what youre getting. So it really has improved. Theyre put a lot of work into it. They introduced the allday breakfast which you just mentioned. In their press release they did cite the fact they thought it drove foot traffic. Even though it hasnt been in place for very long, how much of a boost do you expect that to give their business as it goes into full swing . Right. So the breakfast launched in the beginning of october, which is the beginning of the fourth quarter. So we havent seen that in numbers yet. Theyre guiding for positive samestore sales in the u. S. In the fourth quarter. They didnt quantify what that would be. My estimate is 2 . Those who put a number on it, i think the breakfast adds about 1 to 2 . It really makes about flat traffic. This is all moving in the right direction. We did have negative traffic in the Third Quarter. So theres a lot more work to be done. I think the next step is really a National Value platform. Thats a 2016 story really. But that is the next step to its turnaround and what could really give it some legs. You know, i dont want to get wonky here, but youre predicting that e earningspr per share are going to go up from what you had previously said. I wonder how much of that is real profit or how much of it is driven by stock buybacks. And theyve been aggressive with it. You know, their margins because of their sales were better than expected, they did get more leverage. We had higher profits in every segment of their income statements. So each region is contributing to higher than expected profit. Its really been broadbased in the Third Quarter today, was a real broadbased recovery. Were talking about the u. S. Now, but every region was actually better than we expected. All right, jake, well leave it there. Thanks so much for joining us. Jake bartlett with Suntrust Robinson humphrey. And the fellow dow component caterpillar slashed its outlook today. The company said weak demand for equipment used in mining and oil drilling will eat into earnings for the full year. Caterpillar also reaffirming its forecast for a decrease in sales in 2016 for the fourth consecutive year. Our big markets are mining our oil business. Supplies to that market are very soft right now. We announced a major restructuring a month ago to get out in , to front of it for 2016. Were doing all we can to fortify this company to get through this very rough patch were seeing today. The stock, however, did rise because the results were pretty much in line with expectations and not worse. 3m is cutting its fullyear profit forecast and says it will shed about 1,500 jobs worldwide. The maker of scotch tape and postit notes reported a sales drop of 5 in its latest quarter. Hurt by a strong dollar and a slowing global economy. Wall street liked the idea, though, of the cost cuts, and it sent shares higher by 4 . And still ahead, a new report today shows the Housing Market is still hot. So why are some realtors worried . The number of americans filing for new unemployment claims rose slightly less than expected last week, remaining near levels not seen since late in 1973. Claims rose by 000 to a seasonally adjusted 259,000. Most economists were expecting 265,000. Now, 300,000 is the level usually tied to a strengthening labor market. Anything below that is good. And it is the 33rd straight week we have been below that mark. And theres more signs of strength in the Housing Market. Sales of existing homes in september hit their second highest monthly pace since early 2007. The National Association of realtors says sales rose nearly 5 to an annual rate of more than 5. 5 million units. But as diana olick reports, realtors are starting to get worried. Reporter september sales rounded out a Strong Spring and Summer Season for the Housing Market. The numbers are well above a year ago and price gains are still strong. The trouble is the bulk of the action is on the high end. The median home price hit 221,900 in september, but sales were strongest for homes priced above that median. Above 250k sales gained 22 from last year. But sales of homes priced below 100k, they fell. Thats because theres so little supply on the low end. Because land prices have remained elevated in this recovery, builders are having a harder time building a lowercost home. Its harder for them to do that because they cant reach the profitability levels that they need to realize in their numbers. Reporter overall the number of listings actually fell in september. It usually rises in the fall due to slower sales. The lack of cheaper homes is at least partially to blame for the drop in firsttime buyers. Theyre nowre near normal levels and even fell from a month ago. Typically, this is the time of year singles or young couples without kids make that first home purchase. Firsttime home buyer has trouble getting mortgage credit. They require a higher down payment, and its more difficult for a firsttime entry buyer to get in today than it has been it has been in three or four years because a lot of the new rules and regulations make it difficult for that buyer to qualify. Reporter realtors claim credit is easing a little bit and that could help, but if supply doesnt turn higher through the colder months things erll get tighter and tougher come spring. For nightly Business Report im diana olick in washington. Mortgage rates fell slightly this past week. According to freddie mac the average rate on a 30year mortgage ticked down to 3. 79 . The 30year has now been below 4 for three months. To europe now, where comments from European CentralBank President mario draghi helped drive stocks higher. He signaled the bank could extend its Stimulus Program beyond 2016 in an effort to increase growth and tackle weak inflation. If we were to see that the technical assumptions underlying these projections have worsened or the down side resell freezing them are materializing we may well change the size, the composition, the design of all our Monetary Policy instruments as needed. The ecbs next meeting on Monetary Policy is in december. United airlines raises its profit margin forecast, and that is where we begin tonights market focus. The airline topped analyst expectations helped by lower fuel costs. The companys acting ceo promised Better Service for travelers as he tried to reassure shareholders that united was in good hands. This following the heart attack of Ceo Oscar Munoz and the recent resignation of former ceo jeff smisek. Shares of the company up close to 3 today. They finished at 56. 05. Sticking with the airlines, southwest also benefiting from lower fuel costs. The airline reported higher revenue and record Third Quarter profit that beat expectations. Ceo gary kelly said traffic demand is also improving. The capacity that the Airline Industry offers is increasing to meet that demand. Were growing our capacity over 7 this year and will be growing 5 to 6 next year. Shares jumped over 7 today to 44. 08. Dow chemical also citing lower fuel costs as a driver for growth this quarter. The company saw its plastics business improve, mainly in europe. It is also reviewing options for its pesticide and seed segments and raising its dividend. Shares of the company up more than 5 to 49. 92. Under armour reported higher profits and a jump in quarterly revenue as the Company Expands its presence in footwear. Its core apparel business also grew helping under armour post its first ever billiondollar quarter for sale. But some investors are concerned about weakening margins. That pressured the stock, and it was down more than 5 at 93. 81. At t releasing its earnings after the bell today, beating analyst expectations. This report is the first after the Company Completed its acquisition of directv in july. The company saw subscriber growth in both its Wireless Group and its newly acquired Satellite Television business. Shares closing a percent higher for the day to 33. 96 and seeing a jump in afterhours action as well. Investors getting a chance today to react to Community Health systems earnings warning issued late yesterday. The Health Care Services provider saw a decrease in hospital admissions as well as higher payroll costs associated with hiring more physicians. Shares of the Company Getting crushed today, down over 35 to 26. 30. Shares of gnc holdings feeling the heat after the Oregon Attorney general filed suit against that company. That suit alleges that the Nutritional Supplement retailer knowingly sold products spiked with synthetic drugs. Gnc says the claims are without merit. Shares of the company falling 14 to 34. 50. And shares of Valeant Pharmaceuticals continue to come under pressure. The company said it plans to host a Conference Call to address all the recent allegations against the company. As we reported yesterday, a short seller accused valeant of fraudulent business practices. Shares down more than 7 today to 109. 87. The golden years could be rocky for many people nearing retirement. New findings in a study show that theres a veryrearge gap between the amount people need in retirement andet how much theyve actually saved. The study was conducted by blackrock, which surveyed more than 4,000 people. Sharon epperson is here with more on the findings. Sharon, what is the actual savings gap that blackrock found . Well, it might be pretty surprising to you. Whats good is that people have an idea of how much money they need. Baby boomers say they need about 45,000 a year in retirement. But what theyve actually saved would allot them only about 9,000 a year. Thats a big hole. That 149,000 they have in their nest egg is only going to amount to 9,000 a year. Its a 36,000 annual savings gap. Thats a big gap. It is. And its a huge shortfall. But is there a reason why that shortfall is there other than people perhaps not saving enough . Well, not saving enough of course is a problem but also where you save is important. Where you put that money. And a lot of people are just putting it in cash. Theyre saying were not comfortable with this market, were just going to keep it in cash, instead of knowing they should put a third of their money they think in cash. Theyre putting 65 of their holdings in cash. So because theyre not well diversified thats one of the reasons why theyre having the shortfall. And does that income gap include the money that i might collect from a pension or Social Security or is that just the amount that my savings are this is looking at your portfolio. This is looking at your portfolio. The issue is that people arent saving enough and arent being longterm savers. The majority of folks were not putting their money into longerterm investments. The majority of folks were not working with a Financial Adviser to figure out how the Social Security part and the investments that youre making on your own will Work Together and how much you really need to stay. What do you do, then . Obviously working with a Financial Adviser as scary as that may be, a lot of it is fear. A lot of it is fear and realizing that yes, you have a age youd like to retire but if you are able to retire at 65, 66, and some people maybe even 70, you are also likely to live longer. There are a lot of drugs out there that keep you healthy and keep you in the game for a lot longer than you may expect. Were talking about 10, 20, 30 years in retirement. So youre going to need a lot of money and youre going to need your money to grow. So the idea of putting that money in cash, putting that money in fixed income, that old it pays zero. Cash pays zero. It really does not work. And you need to be more aggressive. Its fear about doing that. Seems very, very risky. But its the reality. We have to wrap here. But youve often pointed out that people above 50 can take advantage of some sort of late start or catchups to 401 k s. 401 k s, for i. R. A. S. Extra 6,000 for your 401 k and extra 1,000 for your i. R. A. Put that money in, put as much money in as you can. Fantastic. Sharon epperson, appreciate it. And as we continue, coming up, game on. One companys big move to be a leader in the fastgrowing and competitive gaming industry. John malones Liberty Global is reportedly in talks to acquire cable and wireless communications. The wall street journal reports that deal could be worth more than 5 billion. Cable and wireless, which trades in london, has more than 6 million subscribers, and it offers pay television, internet, land line, and Wireless Services in the caribbean, panama, and monaco. United Auto Workers Union has approved a new labor pact with fiat chrysler. 77 of workers ratified the fouryear deal, and the agreement will now be used as a blueprint for contracts with the other automakers. The union says it will next target general motors. Activision making a big push into competitive video gaming. Otherwise known as esports. The Company Behind the call of duty franchise is creating an entire division devoted solely to this fastgrowing business. And as Julia Boorstin reports, it has a lot at stake. Lets take a look at reporter as the land grab for esports continues, video game giant Activision Blizzard is stake a claim. Announcing a new division devoted to esports. And two big hires to run it. Former ceo of espn and the nfl Network Steve borenstein will be the divisions chairman, and mike sepso, formerly president of major league gaming, will be its svp. When you look at esports, its a 600 million revenue opportunity globally. U. S. Markets very small, a little over 100 million. Most of its corporate sponsorship. You bring someone like Steve Borenstein in to think of other ways to monetize the business. Reporter this follows activisions announcement last month that its creating a worlding lea for its hit call of duty. With 3 million in prize money. Activisions blizcon event will feature the global finals for games including starcraft 2 and world of warcraft. Gamers competing for more than 4 million hds in prizes. This is just the latest bet that more consumers will want to watch people play video games. The number of esports fans is expected to grow from 116 million this year to 165 million in 2018, according to a report from new zoo. And traditional media is moving further into e sports. Last month turner and img partnered to create a new Sports League and to air the competitions on tbs. I think its a lowcost risk for someone like turner to put on some live event programming thats going to draw in a youthful audience. Thats going to be very favorable for advertisers. Its not going to cost a lot to do. And theyll see what works. Video games is a growing business. Its got a broad user base and this console cycle is off to a very good start. So i think theres a lot of reasons to be hopeful. Up until now youtube and twitch which amazon bought for a billion dollars, have been the main destinations for watching video game play. Now well see if video game giant activision and the companies that draw millions of users to traditional sports can cash in on esports as well. For nightly Business Report im Julia Boorstin in los angeles. And lets take another look. Lets just linger on todays rally on wall street, shall we . The dow rose 320 points, nearly 2 . The nasdaq gained 79, about 1 2 3 . And the s p 500 added 33. I think mcdonalds surprised a lot of people. I think it did. And you know, good for them if that turnaround so long in coming is finally here. Well see what the breakfast allday Breakfast Menu adds to it. And mario draghi helped too in europe. Oh, in europe, yeah. Easy rates for a long time to come. Thats nightly Business Report for tonight. Im sue herera. Thanks for joining us. Thanks from me as well. Im tyler mathisen. Have a great evening, everybody. We will see you back here tomorrow night. A kqed television production. Kacyra it kind of was, like, the bang that set off the night. Rogers that is the funkiest restaurant. Thomas the honeywalnut prawns will make your insides smile. [ laughter ] klugman more tortillas, please khazar what is comfort food if it isnt gluten and grease . Braff i love creme brulee. Sobel the octopus should have been, like, quadripus, because it was really small. Sbrocco and you know that when you split something, all the calories evaporate, and then theres none. Whalen thats right