In fact, stocks just logged their best month. Not just october but any month in four years. The dow and s p 500 gaining more than 8 for the month while the nasdaq surged nearly 9 1 2 . Investors attributed the big runup to mostly Solid Earnings reports and easy Monetary Policy from Central Banks around the world. As for today the Dow Jones Industrial average fell 92 points to 17,663. The nasdaq fell 20, and the s p 500 off 10. An 8 move in the dow in october is a relatively rare event, and that begs the question what now . Does this set up the market for a run into the rest of 2015 or will the rally turn into a pumpkin . Dominick chu takes a look. Reporter it may or may not be hard to believe but were now just two months away from capping off one of the more eventful years for the stock market in recent memory. And the up trend, though, could continue. According to Market Data Firm kensho, before this year theres only been four times since 1980 when the month of october has gained more than 8 . In three of those last four times the next two months have returned an average of around 4 . This year optimus believes the stage is getting set for another rally. We thought the fed would pretty much announce in september a hike. They did it by calling the China Language that they had there. We had a nice m a deal in the Health Care Space that we think puts a floor under that sector thats been a problem for the s p. So we think the outlook into the rest of the year continues to be pretty positive. Reporter what has some traders feeling better about the current environment is the leadership coming from the technology sector. Companies like Google Parent Company alphabet and social media giant facebook have been soaring. The tech sector is the largest in the s p 500 and some Money Managers are looking for opportunities there. I like Information Technology right now. Youve seen a couple of the large cap names in Information Technology have really turned the corner. The traditional license sales to a subscription business model, the nice thing about that is if you look at a microsoft or an adobe theyve passed their peak point of execution risk and i still think theres Revenue Growth ahead. Of course nothing is ever certain in the markets. There are a host of reasons why things could get derailed like uncertainty about Interest Rates here as well as a slowing economy and worries about whats happening in china. But with the Holiday Season approaching, many investors are still putting some stocks on their Holiday Shopping lists. For nightly Business Report im dominick chu. Two not so upbeat reads on the consumer today. First consumer spending. A look at how much americans spend on everything from furniture to cars. Well, it cooled in september. The Commerce Department reporting a 1 uptick. Thats the smallest gain, though, in eight months. Income growth also rose but by less than it has in four months. And a separate report from the university of michigan showed Consumer Sentiment rose in october but not by as much as expected. This as some are worried about the stock market volatility. So what can we expect from the markets for the rest of the year and where should you invest now . Lets turn to Sandy Lincoln for some answers. Hes chief Market Strategist at vemo asset management. Sandy, welcome back. Good as always to see you. What do you think . Is the market in a healthy place right now through the year end or what . Well, its certainly in a healthier place happen it was in august and september. That was a pretty rough tour. And i think a lot of it was as the intro said, a lot of it was laid at the doorstep of china and obviously the currency devaluation and that sent markets tumbling and then in september when everybody was expecting the fed to potentially raise rates they not only didnt raise rates but they doubled down on the china syndrome mentioning that as a potential drag on the economy as well and part of the reason they didnt raise rates. So with the year to date numbers into early october, tyler i think the s p was off 6 or 7 in negative territory. Now we made all that ground up as your intro set up very nicely and were up for the year with this big return we got in october. Is how much can it go higher sorry, sandy. Finish your thought. I was just going to say i think the backdrop has been that we overreacted in august and september and i think a lot of what we saw in october was sort of a reflection of the fact people recognized our economy isnt all that tied to china. So i think a lot of people made a mistake in reading the connection between us and china and i think thats part of the recovery story in october. So as we go closer to the end of the year, how much do you think is left in this upside move in the market, sandy . I wish i had a precise answer for you. That crystal balls a little cracked for everybody right now. But i think in general theres a little more up side. You know, youve got some additional tailwind here, the debt ceiling deal and a little more Government Spending thats going to come into play. Thats going to be downwind a little yet but still i think its going to be in investors minds thats a positive. Consumer sentiment pretty decent. I heard the numbers you were talking about, sue, but i think on balance the consumers pretty confident. More people are played. Maybe 3 to 4 spending in the Holiday Season. Valuations are reasonable. So youve got to be very careful on stock selections in here. But i do think there are opportunities and i think theres a better than 5050 chance that the market moves slightly higher by the end of the year. Lets talk about some of those opportunities. I know you can pick stocks. I know you can pick sectors. Why dont you give us some names of seshlths that are on your santas list. Okay. One of those names is a Company Called acuity brands. When you think lighting you think acuity brands. They have a 17 or 18 share of the Lighting Industry in north america. And theyve got all forms of lighting. They manufacture it, they design, it they distribute it. And theyre very big producers of what we call l. E. D. Lighting which is the coming of age form of lighting for both industrial and residential, actually. And its a real good profit margin business. Costs coming down. Sales are going up. This is a doubledigit revenue gainer, a doubledigit earnings gainer. Not a cheap stock, tyler. 25, 26 times forward earnings. But we think the Financial Performance really supports the name for sure. And columbia sportswear, something my kids have a lot of in their closet. Yeah. I bet. And those total up pretty quickly on the Cash Register as well. Yes, they do. We almost didnt use this name because the earn wrgz going to come out last night when we sent you the name. We hadnt seen the Earnings Results for the Third Quarter but they beat on revenue and beat on sales. And sue, thats one of the real drivers were looking for. The discrimination in the market really is looking for companies that are able to improve profit margins, sustain growth rate and sales above expectations and support earnings. And columbias doing a really nice job of that. They did beat on earnings, did beat on revenues. Margins are expanding. Theyve got a really good line. They can be a choppy stock. Dont get me wrong there. It can even be affected by the weather. But we think through it all its a pretty good name to hold in a consumeror yebted position. Sandy, thanks very much. Have a happy halloween. Thanks. Trick or treat to you guys. Sandy lincoln with bemo asset management. Big oil surprising the street today while sliding Energy Prices dealt a blow to both exxon mobil and chevron. Their results came in better than expected. That sent shares of both companies higher. And as weve been telling you, refining has been a bright spot for the Energy Sector and that proved true with both companies posting an earnings increase from that portion of their business. Still, chevron said it will slash 10 of its workforce and both firms will reduce spending. Chevron saw its revenue fall nearly 40 while exxons was cut almost in half. Shares of Valeant Pharmaceuticals under pressure today after the company cut ties with the Specialty Pharmacy philidor. It distributed some of valeants prescriptions. Yesterday pharmacy benefits manager cvs health, express scripts and a unit of United Health group all ended their relationship with philidor. Shares of valeant down about 16 today. Meg tirrell has more on the storm swirling around valeant. Reporter it was another rough day for valeant. The drug maker saying allegations about philidors activities raise additional questions about the companys business practices. It says philidor will shut down operations as soon as possible. The Specialty Pharmacy only accounts for about 6 of valeants revenue, but its contributed to an almost 40 decline in valeants stock in the last week and a half. The decision to terminate the relationship came after several pharmacy benefits managers last night said they wouldnt work with philidor anymore. Cvs caremark in particular citing noncompliance with the terms of its agreement. Specialty pharmacies have typically been used to handle more complicated drugs such as those that need special storage or dosing. More recently some Companies Including valeant have used specialty pharmacies as a way of distributing often higherpriced drugs that insurers want to dissuade patients from using before trying cheaper alternatives. Pharmacy benefits manager express scripts cited the practice of circumventing cost savings strategies as a reason for terminating its relationship with philidor. A fourhour presentation by Hedge Fund Titan bill ackman one of its largest shareholders, failed to set the stock slide. He came out in defense of the company saying he Still Believes innant and ceo mike pearson saying he still takes issue with a few things. First he said it needs to improve its customer relthss, Investor Relations and government relations. He also said valeant should have disclosed more about its relationship with with the philidor pharmacy and he expected communications and disclosures be more robust going forward. Ackman compared the situation with the that of American Express in the 1960s when a Young Investor named Warren Buffett bought the stock at a discount after a scandal drove its shares down. Ackman last week increased his stake in valeant. The drugmaker, however, still has several things on its plate. Multiple government inquiries into its drug pricing and patient assistance programs plus the threat of another report from short Zoeller Citron research. Thats the firm that sparked the controversy. Citron coming out on twitter said saying its got a new report it will release on monday. No word on what it will contain but valeants stock slumped 16 intraday heading into the weekend. For nightly Business Report im meg tirrell. Coming up, why rising Interest Rates may actually be a good thing for the Housing Market. The Federal Reserve is proposing new rules to help further prevent taxpayers from being on the hook for another bailout. The proposals goal is to work toward the end of banks being too big to fail. The rules would require six of the nations eight biggest banks to issue a total of 120 billion of longterm debt to help absorb financial losses. The banks are jpmorgan chase, citigroup, bank of america, goldman sachs, morgan stanley, bank of new york, mellon, state street, and wells fargo. The fed did not say which two of the banks were exempt. Richmond Federal Reserve president jeffrey lacquer was the lone dissenter in wednesdays decision by the central bank not to raise Interest Rates. Today lacquer said he wanted to raise rates because the economy is Strong Enough and labor markets have tightened considerably. And Mortgage Rates did move higher this week after the Federal Reserve did signal that rates could rise in december. Diana olick now on how home sales could react. Reporter home buying slowed down in september for both existing homes and new construction. Now Mortgage Rates are edging higher and could jump even more if the Federal Reserve raises rates in december. While it seems like higher rates would only hurt, the ceo of one of the nations largest builders, pulte homes, argues they could actually help. I predict that if they raise them in small increments it actually could be a catalyst for the market for people to get off the fence and jump into housing while rates are still relatively good. Reporter if Interest Rates on the 30year fixed mortgage went from 4 to 4 1 2 next year, that would raise monthly costs by about 29 for every 100,000 financed. Its not a ton, but just the fear of paying more later when you could pay less now could make potential buyers more eager to get the deal done now. It could also just make them feel better about buying. If you have Interest Rates that go up, that generally means that the Economic Conditions are improving, borrowers feel more confident about their flot life and their economic prospects through job growth and things like, that so theyre more compelled to purchase. Reporter that thesis is plausible except for the supply issue. Mortgage rates are not the biggest headwind to housing right now. Its lack of homes for sale. Lack of construction. And consequently, home prices rising far more than Interest Rates. Two years ago we were talking about sellers being locked in. They loved their mortgage and hated their house and decided to stay put. Will this mortgage increase if it happens, will that make them again hesitant to add to supply . And thats supply we desperately need in the Housing Market right now. In other words, rising rates could impact sellers more than buyers. For nightly Business Report im diana olick in washington. Shares of avi surge on earnings beat and that is where tonight we begin our earnings focus. The drugmaker hiked its outlook for the year as its profit and revenue easily topped consensus. On top of that the company increased its Quarterly Dividend to 57 cents a share. That will be payable in february. Shares rose 10 to 59. 55 making ab vi the second best performer in the s p 500. But it was the opposite story for cvs. Its profit forecast for 2016 came in below estimates, which the company is blaming on costs related to the purchase of targets pharmacies among other things. Earnings missed consensus for the first time in six quarters, which it attributes to another acquisition and generic drugs. Shares were off nearly 5 to 98. 78. An increase in sales of generic drugs helped mylan post an earnings beat. Revenue was short of the forecast but the Company Also Announced it will continue to strongly pursue its bid to buy perigo. Shares were off 3 to 44. 09. Colgates earnings were in line with consensus while revenue missed. A strong dollar weighed on the toothpaste maker. It expects full year earnings to be lower than predicted. Shares fell 4 to 66. 35. Anheuserbusch inbev saw its sayers rise despite results that missed on both the top and bottom lines. Volatile currencies w5ed on results. The company didnt hike its dividend. Shares were up 1 to 119. 33. And phillips 66 saw its earnings rise more than 30 helped by strength in its refining segment and even though revenue came in below consensus. The stock was up 3 , 89. 10 the close. Now tower market monitor who likes stocks he says will be affected by the Global Economy for years to come. It is his first time joining us for the program. He is lou piandiosi, Portfolio Manager at eaton vance, where he manages about 13 billion. Lou, welcome. Nice to have you here. Thanks for having me. So tell me how you come to the consensus that you want larger stocks that affect the Global Economy. Yeah. We look at the environment that were np therein. Theres so many crosscurrents when it comes to global economies, whats going on in emerging markets, europe, pretty stagnant growth and the u. S. Seems to be in an environment where were kind of a two steps up, one step back environment. Theres lots of uncertainty with the fed. In that kind of environment what we want to seek out is companies that are benefiting from beg picture longterm secular trends. We call them mega trends. And they populate a big part of our focused growth portfolio. And the stocks, well get to them in just a moment, but it feels to me that what youre calling for here in these stock picks are stocks that arent trading plays but forever stocks. Stocks that would be sort of cornerstones in your portfolio. Thats right. We view these companies as longterm franchises. These are the types of stocks that you dont want to trade. Thats correct. They are buy and hold, invest, build wealth over time type of stocks. You know, really we havent seen a strong growth cycle since the period of the 90s and we think theres a lot of parallels to what happened during that period of the 90s to where we are today and that huge mega trends, transformational trends are taking place and kind of flying under the radar and investors are missing it because theyre much more involved in thinking about the macro and trading positions rather than investing in these companies. So lets get to the stock picks. And well start off with facebook. Its trading at about 102 a share. Why do you like it . Facebook is a company, and ive been talking about this one for a couple of years now, when i talk about it today people say i missed the stock. And my argument is you havent missed anything. Theyll likely end this year with about 17 billion in revenues, which is pretty remarkable considering the Company Really wasnt in existence ten years ago. But as we look at that revenue base thats still less than 3 share of the 700 billion Global Advertising market. So theyre going rapidly but we still think they have the opportunity to double and triple that share over the next three, four, five years. Lets go on to choice number two which is a stock ive heard of. Its called amazon. Mmhmm. Again, amazon, we love amazon because it has a major presence in two huge secular trends. The first trend, ecommerce. Everyone knows is a retailer. Online retailer, ecommerce is growing five times traditional retail. And amazons place within that ecommerce space continues to gain share. So we love amazon as an ecommerce play but we also love it through Amazon Web Services and the shift to the cloud. This is a business that theyve given more clarity to recently and the growth in that business is remarkable. Theyre a leading player, but its still in the very early stages. And well finish one gilead. You say the business is misunderstood by wall street. How so . Yeahi think their drug for hep c has been nothing short of remarkable. Its a remarkable drug in that it actually cures the disease. To date theyve cured 600,000 patients in the United States alone and i think the street thinks that that number has peaked or their earnings have peaked over time. But we look at that total Addressable Market and see 3 to 4 million patients in the United States. An additional 2. 5 million in continental europe. And then another million or so in japan that theyre just starting to crack the surface on. So theres lots of growth in this Company Going forward. Very quick closing question. Do you think the s p 500 will be higher at the end of the year than it is now and if so by roughly how much . You know, thats not my game to call the market. We focus on companies. And the best Growth Companies that we can find. The companies i mentioned all have Earnings Growth in excess of the market. And if they can continue to do what we think they can, those companies will perform very, very well. Good stock pickers thank you. Lew, thanks for joining us. Well talk to you soon. My pleasure. Lew piantedosi with eaton vance. Up next, and i dont think lew would like to be associated with this, how ponzi schemer Bernie Madoffs impact is being felt at this years world series. I think youre right about that. Heres what to watch for next week. Another busy earnings week. The dow components reporting include visa and disney. The employment report for october is out on friday and also on the data front Motor Vehicle sales are out along with a read on International Trade and manufacturing. And thats what to watch for next week. Tonight is game 3 of the world series between the new york mets and the kansas city royals. And with the royals taking the first two games the series shifts to the big apple. The mets are going to need a big turnaround to survive this series. But that might pale compared with the financial squeeze theyve been under. Eric chermi is at citifield in queens, new york with a look at how the mets survived bernie madoff. Reporter the mets may be down 02 in the world sherz, but just being here is a huge win for a team nobody thought could get this far. The mets struggled both on and off the field for the past six years, losing games and money. A big reason team ownerships tieup with bernie madoff. When the madoff scandal broke mets owner fred wilpon realized his assets were worth a lot more than he thought. He had to borrow hundreds of millions of dollars to stay afloat and is to this day paying off settlements to the courts trustee. Behind the scenes less money meant a leaner and some say smarter approach to building a team through young talent. Finally, in 2015 it all came together led by up and coming pitching stars who make just above the leagues minimum salary. The pitching staff is young. Theyre going to get better. So thats the exciting part. Reporter the surprise turnaround has caused an economic stimulus in the region. Ticket prices are soaring. The average price for tonights game is 1,800. And tick i. Q. Says this is the most expensive world series that they have ever tracked on the secondary market. Fans are also buying merchandise in numbers bigger than anybody could have expected. We did more business in one day when they clinched the pennant than we did all of 2014 in 365 days. Despite being down 02 history is on the side of the amazins. We were down 02 in 86 and went down to boston and went down and won the first two and lost the next one there but came back and ended up being the champs. While the odds of a comeback are slim, the mets are showing the world that comebacks are what they do best. For nightly Business Report im eric chemi at citifield in queens, new york. Game 4 of the series will be tomorrow on halloween. And as for halloween, americans are expected to spend about 2. 5 billion this year on halloween candy. And for some bay area residents who havent bought their treats yet, one San FranciscoCompany Hopes to come to the rescue. Jane wells has more. Trick or treat. Reporter Homes Across America are preparing for battle stations saturday night as hordes of children invade neighborhoods in search of treats. But heres the trick. From our research 50 of all households run out of candy on halloween. [ scream ] reporter the horror. But this is 2015 and naturally a couple of young techie entrepreneurs have developed an app to solve this dilemma. Its called spoon rockets. A lowcost Meal Delivery business started two years ago in the bay area. Spoon rocket is the food button on your phone. Kind of like uber is the taxi button on your phone. Reporter and this halloween its offering to deliver bags of candy to bay area residents in 15 minutes if they run out, helping them avoid turning out the porch light early and incurring the wrath of eggthrowing teenage ghouls. Spoon rocket has prebought 8,000 worth of candy and expects to sell it all. And not just any candy. A lot of times families just have really terrible candy like tootsie rolls and dum dumz. So we decided to offer candy that kids really do want. Reporter the company says halloween wont be about making money but about marketing the business. And before you laugh that someone would actually come up with all this as a conditioner spoon rocket hopes to expand its concept of fast food delivery nationwide and has already raised 13 million in funding. Thats a neat trick and a treat. For nightly Business Report im jane wells. Spoon rocket. Thats tootsie roll on line 2. Exactly. And dumdums. Thatll do it for nightly Business Report for tonight. Have a great weekend. Happy halloween, everybody. Im tyler mathisen. Thanks for watching. And im sue herera. Have a great weekend. We will see you back here on monday. Gwen new leadership in the house. New breakthroughs on the campaign trail. But why does the Republican Party still seem at war with itself . Plus boots on the ground in syria. We discuss it all tonight on washington week. I mean, literally, the senate, what is it, a french work week . Someone convinced you that attacking me is going to help you. We cant elect somebody that doesnt know how to do the job. Gwen the republican divide on full display on the debate stage and in the house of representatives. The house is broken. Were not solving problems. Were adding to them. We are wiping the slate clean. Gwen but is this the normal drama associated with a change in leadership . I am second. Its not like terrible. But i dont like being second. Second is terrible to me. Gwen or is it a sign of things