High after stocks rallied following the Federal Reserves decision yesterday to stand pat on Interest Rates. Gold and crude also rose. Bond yields fell as did the dollar. Investors were also trying to make sense of the positive report on the labor market and also the disappointing housing numbers. So the Dow Jones Industrial ga 18,392. The nasdaq added 44 to an alltime high of 5,339. And the s p 500 was up 14. More now on that report on housing, which may be showing some new signs of weakness. Sales of existing homes in august declined unexpectedly. Down. 9 to the lowest level since february. Realtors say theres a simple reason. There just arent enough homes to buy. Diana olick has reporter doug sterling is house hunting in l. A. Im a glutton for punishm reporter but he has no illusions of an easy search. Its fierce, because inventory is low, and then you get up against more investors who have cash behind them as opposed to someone who is borrowing and doesnt have a stronger foothold and getting in the door. Reporter there a actually 10 fewer homes for sale today nationally than there were a year ago according to the realtors. That, they claim, is why sales are dropping. Perhaps the buyers are exhausted. They areot excited about the low inventory choices. And furthermore, home prices consistently are rising above peoples wages. People are getting priced out. Reporter home prices jumped 5 annual ly in august. I do find them a little disappointed that the starting point is a little higher than they would like. Its currently up 789,000. Reporter buyers are getting more savvy. Theres a lot of overpriced things out there. One thing i like to do is judge like the neighborhood, has it already become too hip and popular versus whats going to be a trending spot that might improve in cost . Reporter with prices rising so strongly, mere record low Mortgage Rates arent helping as much as they normally would. The good news is Interest Rates arent expected to rise anytime soon as some had expected. Sterling knows he has to compete. But he also recognizes there is a limit. For nightly business rep diana olick. The homebuilder lenar is buying wci communities. The price tag, about 640 million. That deal combines two of the largest builde in florida. Lenar is the countrys number two homebuilder. Wci builds luxury homes. Shares of wci shared 38 . Lenar was up slightly. The number of people filing for Unemployment Benefits fell to the lowest level since july. Initial jobless claims dropped to 252,000 last week, just modestly above the fourdecade low hit back in april. Wells fargos ceo john stumpf stepped down from the Federal Reserve advisory council. Several senators, including elizabeth warren, are asking the bacnk. Department the senators want the agency to examine whether wells fargo violated labor laws. The letter cites threats of termination and harassment. It also said wells fargo failed to pay overtime to selle and sales representatives. The letter suggests widespread exploitation of the wells fargo workforce and it deepens the banks fake account scandal. So what could a federal version into wells fargos wage and labor practices mean for the troubled bank . Michael deutsche is cofounder and partner at the new York Law Firm singer deutsche and he joins us now to discuss. Welcome, nice to have you here, michael. Good to be back. What are the implications for wells fargo here . Certainly this is an expanding problem for wells fargo, bec subject to not only the investigation that just concluded with a 185 million fine, but now there are indications that the Justice Department is looking into them as well as this recommendation from the Democratic Senators that the department of labor look into them. And certainly if wells fargo has committed the acts that the d that they may have done over some period of time, then they will have trouble because they will have violated the fair labor standards act as well as various state laws with regard to retaliati and overtime in particular. Obviously its a national bank, so do you anticipate that her states attorneys general might join in some sort of action . I think theres high likelihood of that, except if the federal Government Asks them to refrain f doing it while theyre conducting an investigation. Cey with wells fargos footprint around the entire country as well as the world, i think theres a high probability that attorneys general will be looking at this in the near future. How can they manage this . Im not on the business end of things, but certainly theyre going to have to create a very large litigation reserve for this issue as well as other issues that crop up based on these activities. I think youll see that reserve set aside in the near future. Its goi a long slog for them because this activity was taking place over a long period of time, certainly with the understanding that it was happening and senior people in the company did nothing to fix the problem over a perioof time. Weve been talking about investigations and things that, but there could be also individual lawsuits, could there not . Certainly there will be indivi lawsuits. My understanding is there are already individual lawsuits filed in california. But i think werg e beginning o. Based on the number of employees that wells fargo has, the number of people working in their branches, the number of people subject to these Sales Guidance from wells fargo, were going to see an awful lot of lawsuits, particularly if there was retaliation against people who were in a position to know that something wrong was goingn and complained about it and were either discriminated against or were discharged, which is a violation of the fair labor standaact. A lot of businesses try and get out in front of controversy and put it, you know, behind them as soon as possible. But with this many pending or possibly pending actions, it does not sound as though this is going to h resolution. Ci ies. Re to be too quick, with the number of agencies conducti investigations, including the House Banking Committee which will lead to a lot of chestbeating by politicians, and then theyll get administrators involved on a much more involved basis than they would have otherwise. Speaking as a lawyer who advises companies on cases like this, does it help if the company puts in a dramatic change of management . Does it lessen the penalties that they might get hit with . Or does it not matter at all . It could have an effect on settlements theyre making with regulators, certainly. But it will have no effect on the damages that individuals are entitled to under these various federal and state laws. If there are violations that have occurred, their statutory penalties and statutory rights that people can avail themselves of including back pay, including liquidated damages. On that note, michael, thank you very much for your insights, we appreciate it. My pleasure. Michael deutsche with singer deutsche. Microsoft and target both announced big buybacks this week, thats one of the Ways Companies return money to shareholders. But its also a way for companies to improve their earnings per share. Dominic tu explains. Reporter whenever anyone explains theyre going to spend 40 billion on anything, theyll grab headlines. Thats exactly what happened earlier this week when microsoft said theyre going to start a new program to buy back up to 40 billion of their own stock, in addition to boosting their dividend payment. Buybacks are important because its one of the Ways Companies can return money to their shareholders. One way oiously would be dividends, by which they send a check to the shareholders. Tho buy back in shares which lowers the number of shares outstanding and lifts earnings per share. Reporter according to S P Dow Jones analysts, the Top Companies are apple, general electric, and microsoft. In the 12 months ended in june, microsoft and ge had spent 16 billion each on buying back shares. Apple was by far the biggest purchaser, buying back around 37 billion during that timespan. But when it comes to which companies saw the biggest reduction in their share counts through stock buybacks, its american airlines, h r block, and quantas services. Each bought back enough stock to lower share count by at least 20 , thus helping Companies Improve earnings per share. The concept of stock buybacks has been somewhat controversial. Should companies be buying back thn stock or taking that cash and reinvesting it in the business to grow and hire more people . A big reason why companies can do these larger scale buybacks is because of how low Interest Rates are. Companies can issue debt with extraordinarily low rates and then buy back shares. It increases earnings per share, increases the return shareholders get. Reporter now that the fed has signaled that Interest Rates could stay lower for even longer, stock buy backs could contt big question is how long that run can last. For nightly business rep i still ahead, massive breach. Yahoo confirms a breach that affects 500 million accounts and da. And now to charlotte, whe a state of emergency has been declared after two nights of violence and continued protests over the Police Killing of a black man. And even as some officials urge firms to return to business as usual, a number of them told their employees to work from home today, including bank of america, wells fargo, duke energy, and united way. The nfl said in a statement that the league is planning to play sundays game between the nthers and the vikings in charlotte. To the campaign trail. Democratic president ial candidate hillary c has proposed a 65 top rate for the estate tax. This is according to an updated version of her tax plan that was released today. The 65 estate tax rate would be the highest since 1981. According to the Nonpartisan Committee for a responsible federal budget which advocates fiscal restraint, clintons updated estate tax and other new proposals would generate 260 billion over the next decade. And that same think tank analyzed both clintons and Donald Trumps tax and spending proposals and found that trumps would increase the debt 26 times more than clintons. John harwood joins us from washington. John, those are some big numbers. Exac what did the committee for a responsible federal budget find when it comes to the impact of clintons and trumps policies on debt and deficits . Reporter remember, sue, that the committee is only evaluating the bottom line, not whether its good to have bigger government or Smaller Government thats paid for. For example, for hillary clinton, they estimat that she would add a lot of spending but pay for it by raising revenue. And so on net, she would only average, according to the center, 20 billion added to the deficit every year. Donald trump, on the other hand, has proposed a massive tax cut, and because of that tax cut, they estimate that trump would add 530 billion a year to the federal deficit. You know, i assume also that there are some other surprises or details in there that the publics going to have to st through. Reporte well, exactly, sue. And it was, e surprise was the estate tax proposal you talked about. It was notnnounced by the clinton campaign. Theyve said theyre going to pay for Small Business incentives with the estate tax proposal, raising the top estate tax from 40 to 50 for estates of 10 million or more her 55 for estates at 50 million or more, and 65 for estates at 500 million or more, 1 billion for a couple. Obousl affect only a tiny number of taxpayers. Is it risky for her to do that so close to the election . Reporter i think it is, and i think thats why she didnt announce it with a lot of fanfare. On the other hand, she can come back and say, donald trump, this is the kind of proposal that would only affect people li you, and thats a fairly simple argument to make on the debate stage. How does her tax proposal compare to the estate tax specifically, to the trump proposal . R you couldnt have a sharper contrast. Highest rates since 1981 on the largest estates. Donald trump would eliminate the estate tax entirely. John, another hack, this one of a white house staffer. Reporter that hack of a white house staffer resulted in Michelle Obamas passport information being displayed on a website, dcleaks, which has been linked to russian intelligence services. You had two members of congress, democrats, call for the rusan government to stop interfering in u. S. Elections. This is something that president obama has also discussed, and cast a wary eye on, and well see whether or not that has any effect. No signs its having any effect so far, those warnings. To be continued. John, thank you very much, john harwood in washington for us tonight. Yahoo confirms possibly the largest data breach ever, affecting a half billion users. Thats where we begin our tech focus. The company confirmed a hack in late 2014 compromised the private in 500 million user yahoo thinks it was a state sponsored act. It includes names, email addresses, dates of birth, and telephone numbers. Auto zone topped enings forecasts thanks to new store openings, but revenue missed, with a 12 rise in earnings, the retailer has posted double digit growth for several quarters. Rite aid also posted better than expected earnings with sales falling a litte drugstore chain of rite aid rose two cents. Scholasticsevenue jumped 48 while its loss narrowed from a year ago. S helpe by the sales of the latest harry potter book. And elf beauty had a strong debut on wall street. The discount price Cosmetics Company opened at 17, above the range for the initial public offering. Shares of elf finished up 56 , at 26. 50. Airbnb is being value now at 30 billion. The valuation follows an 850 million fundraising round for the home rental company. The deal is reportedly designed to relieve some of the pressure to go public, giving it more funds to spend on overseas expansion. After weeks of controversy and questions about the safety of its auto pilot driver assistance technology, tesla is rolling out a new version it says will make driving handsfree even safer. But will end the question of how much control drivers should really hand over to the computers in their car . Ph has more f tesla headquarters in palo alto, california. Reporter this man loves driving his tesla in auto pilot mode where he takes his hands off the wheel. I understand the limitations of it. Li pilot of have to know what are, right . Because its still not 100 auto pilot. You still need some kind of steering. Reporter that dhange in the new version of teslas auto pilot system. In fact its increased driver warnings, with the instrument cluster lighting up and the vehicle sounding a warning when the driver needs to take control of the car. In addition, the system uses the cars radar to provide a better view of the road, so it can brake quicker and avoid collisions. The system can steer the car on highway interchanges. Teslas ceo, elon musk, says the changes will make teslas model s and model x the safest. But not everyone is buying that claim. Auto pilot is still requiring drivers to be ready to take control if theyre heading towards a collision. D that worries analysts who track auto safety. Its almost as if theyre allowing the car it drive but the human is there to back up the car. And thats really kind of a dangerous situation, because, well, quite honestly, humans arent designed that way. Reporter the federal government is pushing the development of selfdriving cars. Earlier this week it set new rules for whats expected of automakers building autonomous drive vehicles. And teslas auto pilot system remains the focus of aederal investigation follo the deh of a man driving his tesla in auto pilot mode when it crashed in florida earlier this he knowshe system isnt perfect, but he has no plans to stop using it. In fact, he believes the new auto pilot will make his daily commute in the bay area even more enjoyable. Phil lebeau, nightly business report, palo alto, california. They are a growing wave of bounty hunters. Instead of chafing down t down guys, though, theyre chasing down things that could put your personal information at risk. Andrea day has the report. Were approaching a place where this is a Sustainable Way to make a living. Reporter bounty hunters, 2016. Hacking into systems searching for bugs before the bad guys can find them. Theyre in hot demand by Companies Like apple, at t, and bitt who are willing to pay people to explosive their flaws. You should be questioning whether or not there should be this software. Reporter david baker has a Security Team in place at his company but hires on hackers on the side. The hackers he relies on are from gcrowd, which uses from around the world to explosive fraud. He can decide to use a select few or the entire crowd, made up of thousands of hackers. Theres always something that people have missed. Thats because vulnerabilities are hard to avoid. Reporter the flaws range from trivial to major, it could expose secret data or remotely take over a selfdriving car. The more impactful or severe it is, the more they get paid. Reporter its not the only bounty startup. Dozens of firms have launched their own programs. Google hasaid more than 5 million to 900 researchers. Largest pay out to date, 300,000 to a brazilian engineer who was later hired by the company. Yahoo has a relationship with thousands of hackers. Google has a bug hunter university. M. Pays student hackers in campus currency. Some firms offer their staff incentives to track down bugs. According to ellis, those same works could also be a threat. The risk of inside hacking is real for anyone. They need to be thinking of what is an insider capable of, and what controls do need to pull the in place to reduce the risk of what theyre likely to do. Reporter by now, he says hes not shocked by what hackers uncover but he warns his new clients youre about to go down the rait hole. There is almost a terrifying element to learning how vulnerable everythin is. Reporter one of the reasons why he believes its better to look outside the business for hackers is that the people who are building the software dont always think like someone who is trying to break it, like the bad guy trying to get in. Im andrea day for nig coming up, the mobile Gaming Market may be booming, but having a few top selling games does not guarant the mobile Gaming Market is growing fast. Take pokemon go, the latest game to take over mobile phones around the world. But just having a hit game isnt enough. You have to keep em coming. Jula boorstin has more. Reporter the mobile Gaming Market is booming, projected to generate 40 billion in revenue and overtake console and pc games for the this year. The maker of games like cookie jam is part of that boom. The Company Announcing a name change today a saying its on track to surpass 400 million in annual revenue this year, signs the company could be preparing to go public. Were always setting ourselves up for an ipo. But as we know the markets are volatile. Setting ourselves up means having lots of games in the top grossing charts. Reporter having a few games atop the charts isnt enough to guarantee long term success, which is why jam city is licensing a range of properties, including the cartoon franchise peanuts to help diversify its portfolio. Did e wolf, who cofounded myspace, wants to make sure his company wont be like others who didnt consistently replicate their success. You have to make sure that your franchises last for not one year or two years but ten, 20, 30 years. So our top games have been in the top grossing charts and making a lot of money and continuing to grow for three plus years. Reporter rival king digital with candy crush and other games continues to grow since its been acquired by video game giant activision. Now well see if jam city draws acquisition interest or to grow its 50 million gamers. Julia boorstin in los angeles. The department of educati is no longer recognizing the largest accreditor of for profit colleges, forcing some schools to close and jeopardizing Financial Aid for hundredsf thousands of students. The organization has come under fire for its oversight of the now defunct Corinthian Colleges and itt tech. The agency has ten days to appeal. Finally, americans will spend a record amount on halloween this year. According to National Retail federation, 8. 5 billion will be spent on candy, costumes, decorations, even greeting cards. Thats up nearly 22 from last year. Before we go, here is another look at the day on wall street. Dow gained 98 points. Nasdaq added 44 to an alltime high. S p 500 was up 14. That will do it for nightly busine for tonight. Im sue herera. Thanks for joini us. Have. Announcer a kqed television production. Sbrocco and everybody say opa together opa