Stocks today did move further into record territory if only by a little. The s p 500 and the dow eked out small gains extend the sharp rally weve seen oaf the past two weeks and this comes despite concerns about the pace of Global Economic groh today. Dow jones industrial averap 24 points. 13 to 18 irks 372. Nasdaq, x that has not hit new highs, lost 17 today. The s p 500 however did squeeze ou so, why are stocks up so m whats driving the rally . Traderng when the u. S. Has shrugged off their post brexit worries. This has happened so fast that many traders cant figure out what happened. But theres three major explanations coming from the trading community. T is that this is all about Central Banks continues to keep rating lower for longer and who can blame traders for thinking that . N japan, talk of bailouts of italian banks. More bond buying and rate cuts the u. S. Stock market is the best guy buy of any asset class. The marginal buyer looks at the low rates. Fore pouring into our markets. Then theres the third argument. The laggin performance argument. As we hit new high, trader who were short had to cover and cover fast. Theyre now underper foming an they have to buy into the rally at the top. Call it solo fear of missing out. But my favorite, several traders with this one, the pokemon rally. Its ae rally in stocks is not really being fueled by fundamentals, so nobody knows how long it will last. Whos right . You know its hard to figure out when your best sources the tell you theyre not sure whats going on. Im bob pisani at the New York Stock Exchange. Head scratching rally has someone if it is overheating and whether the rise may stall. Mike has tha its been the strongest stock market rally in years. After a nasty tumble on britains vote to leave the European Union index surged more than 7. 5 in ten trading days to a new record high. By other measures such as the percentage of all shared volume in rising stocks trk clima impr bull market of 2009, such a rare and sornlging run, ready to stall. Aside from the pitch in climate itself, often lead to a pause or pullback. Analysts are looking at a new indicators that the market has run its course. Signs of speculative activity, overconfident sentiment and bond oil action. In each area, the reasons for shortterm cautious with building, but no clear warning signs are evidence. Investor surveys show a rise in optimism toward stock, if not quite to the point of showing the bullish camp is too crowded. As for the bond in markets, treasuri are up and corporate debt markets look healthy. Oil nt highs, which could presse some stock sectors. For sure, investor expect a pause or retreat before long. Corporate earnings will need to show a sign of recovery and seasonal patterens ere to a broad Market Upturn to ae r in still higher stock prices over several months. Pretty soon. For nightly Business Report the New York Stock Exchange stock exchange. One stock making significant moves, its always a good strategy to look at your accounts and see whether they have the asset mix you want. Just like most people youve just received your quarterly statement, that makes the task simpleo it. John, welcome. Good t you know, we understand that every is different. People have different risk tolerances. They have, some have kids, dont. We want to put up some pie child supports for people in their 40s, 50s and 60s. You can respond to them. The basic thesis here is that when youre younger, you can have more exposed to the stock market. Wh, to hilt a little bit, but not totally away. I think youre right, that t i thi the key as you mentioned earlier is rebalancing what you understand your time horizons. So, if you are electing to in in the 80 to 40 stock, youre in the sweet spot of your earnings, have longer term, rebalancing to the 80 level to the market where stocks have been riding strongly. Maybe going into some bonds and staying disciplined to that approach is the key i think to lo rebalancing and if you arent fortunate enough to now be an 82 or 83 , how do you get to that mar mon basis and review every portfolio to see where we can in ton text with the marke ways. One, youbasis. The second is within the equity component to rebalance there as well. Low data, u. S. Space, high dividend yield stocks have done really, really well this year. Utilities are up 20 to date. Now, the time may be you d too skis in one sector. F utilities or adding to health care. If because stocks were at a record high, pretty high, too, but if stocks are at a record high and now, ive gotten up against or even beyond my target allocation there, what do i sell and do i sell it all at once or tiptoe out of it . You just answered the first part, which is maybe you want to sell the things that have gone up the most. The utilities, the tell comes, but do i sell at once . If the stock had become extended from a price standpoint rell ty to cash flow and earnings power, yes, you take off of there and each stock is individual to its own extent, right. Where as on the financials, the market thinks that investors are going to be lower for the interer longer and half of those spots have sold off and come at a big discount. Some people have a lot of retirement money in their 401 k or rollover ira. Some in a taxable account. Where do you rebalance first . We encourage our clients to have as much of the equity portfolio in a taxable portion of their account and as much fixed income in their iras. With a bond, you get tacked on interest income, so theres no issue. If you have all of your stocks in the tax portfolio manage your gain and losses. You dont have to sell to realize the gains. You can give shares to charitable organizations and so its a bit more flexible. Would you do your first rebalancing within the tax sheltered accounts first in the taxable accounts . At all of your accounts on the aggregated bases and to make the decision of where you are. The whole pot together. Whi account ts are appropriate. Scien point view wealth management. Economic activity across most of the country meanwhile increased at a modest pace in may and june according to the Federal Reserve beige book, a collection of economic anecdotes. Housing continues to improve. Central Bank Reported slight inflation pressures providing little evidence that prices are rising toward the feds 2 target. Oil prices fell today after a re added to concerns of a supply g glut. The Emergency Information Administration says inventories fell. Separa, a paris based sper National Energy agency warned of stockpiles. Both those repor pre prices domestic crude, dow. Now, to politics, where donald t and his family met with mike pence. This add the search enters its final phase. John harwood reports from washington and it looked like it p and his family had breakfast with pence this morning. Ting them to walk out of that house and announce the republican ticket. The all the press, cameras were ons going on is donald trump as we discussed last night, is carrying this on like an extended version of the apprentice and trying to maximize attention, maximize when he comes out and does it, which is not going to be for a couple of days. Did he meet with anyone else and does it strike you as in and virzs he took with him were his children, whom i think he wants to name vice president. Well, the people have joked about that, but those are very close add virzs to them. He cares about what ivanka and his sons think. That was a very serious move. Donald trumps also meeting with newt gingrich, another finist, talking to chris christie. In his own s goi head already, but hes going to drag this out as long as he thinks it will get attention. This is good for him. A better week than hes had in some previous weeks. As we head towards the conventions, i know youre watching the different polls. The most cent ones in the battleground states, what are they showing . Close rates. We had new nbc news wall street journal marist polls come out today. They shod in iowa, a swing state the democrats have done well in lately. Hillary clintons got just a threepoint lead. In the state of pennsylvania, litty points in that marist poll, but in different poll from quinnipiac showed a much closer race. Weve got competitive battleground situation, even though Hillary Clinton has a narrow lead nationally, this race is going to keep going and be close all the way to ou all. Thanks so much in washington. And the city of cleveland preparing for the republican nationn next week, civic leader, owners there, h e possibility of demonstration, even violence, is changing that equation. Eamon javers from clevelan cleveland is ready for its close up. The quicken loans arena known as the q is all dressed up. Center is strubed and ready. Throughout town, theyve been planting flowers, sweeping up and rolling oun ext tense political year, security is also a signific passions are running high over immigration, policing and le be Hillary Clinton. All of that gives local businesses a lot more to think about than they expected. We had actual security. 150 person department. We have secret service, home land security. Theyre expecting 50 to 75,000 people in the city, so to see the city. Its great the last two years with the cavs and co and everythings great. For one local firm, even bad news for the city co what im hoping not to happen, rioting, protesting, people not get, people, businesses, cleveland, stuff like that. It could be good for our business. On a business end, i hope it does. That would kind of give us a lot of customers. Meanwhile, across the atlantic, the United Kingdom got a new prime minister. Speaking outside 10 downing streak, teresa may said it was her mission to build a better britain. She also paid tribute to her predecessor calling him a great leader. Like cameron, she campaigned to remain in the eu, but said she will respect the will of the people. Still ahead, the risks businesses may with taking as they try to get a piece of the hottest mobile gaming cr. A legal blow to general moto judge ruled they are not protecting from ignition switch claim, reversing a bankruptry court decision. The judge said barring such Constitutional Rights too due process. Since they were not notified of the defrekt prior to the bankruptcy. Gm tried to shield itself from losses over faulty admissions. They were barred when the csx topped earnings expectations, a Third Largest u. S. Railroad oper commo prices lead tog a sharp decline in shipments and while this quarter was no different, profits did earned 47 cents a share, were for just 47 cents. It was down 11 from a year ago. The stock took off on the expected eat, which this afternoon. We have more on csxs quarter. Earnings from csx surprised the upside of the Second Quarter indicating the railroads operators plan the starting to pay off as it continues to grapple with the ongoing lower commodity price, which has resulted in increased demand from railroad operators. In the Second Quarter, volumes did decline while volumes dropped more than 30 . Longer term, they say that stronger u. S. Dollar, prices and Energy Market transition continue to challenge its fin report. Young brand raises its Profit Guidance and thats where we begin tonights market focus. Strong firstf results in china prompted the chain to lift outlook. The owner of kfc and pizza hut saw quarterly profit rise, beating expeck tase, but revenue came in light. Shares rose afterhour, but fini to 8574. Amazon says its prime day was the largest sales f. Second annual one day sales saw orders rise more than 60 compared with a year ago. 600 million. Sales be despite the numbers, share fell nearly a percent. And tampa pharmaceuticals said the plan for takeover offaler began could come at any time. The companies have po as the federal trade commission continues to review the deal. Separately, teva raised revenue guidance. Shares were up to 54. 46 while allergan rose a fraction to 241. 17. Passenger revenue down between 6 and 7 . Now, the company archliest mated a 6 to 8 decline. The Worlds Largest airline by traffic lowered Capacity Growth forecast. For the rest of the year. Shares of american lost 21 cents to 34. 45 and united will take a a charge tied to a regulatory decision, giving more take offa landing spots. United off a fraction to 45. 86 and walgreens will hike its Quarterly Dividend to 37. 50 cents a share. The yield on the stock, 1. 8 . Shares up slightly. Senator al franken is is concerned about your privacy. If youre playing that hottest game out the, pokemon go. Hes asked the Games Software developer about privacy protections amid reports it was collecting vast amounts of u wa been collected, how the data is being used and who it may be sh privacy concerns did not stop pokemon go from being the most downloaded mobile a p pp since its launch last week. There are even socme local busine lairty, but what are the risks . Any rn to dean, a b standard, this is a blockbuster run away hit for nintendo, right . Zy fantastic. The poke mania. In many board rooms for wreex, month p years to come. And this poke mann craze, how is is it impacting big and Small Businesses . Whether youre a Small Business or big, global brand, theres several things you want. Engagement with your customer whos with you. You want to connect with the customer, with respect. Reporter love and then you want them to ifrukts. Now, most brands dont get eaten out of the engagement, so poke manns trounced all three. Ive heard of some business, whether a restaurant inviting people to come in and play pokemon in the restaurant. Imagine them c do has poke pohnpei and people will come and go through the housen a tour. Are there any risks of g bumped ng with that ga into by somebody playing it. I think everybody can benefit. Why not . Its a platform. Not just a game. Its even acting like a social platform connecting players and getting them to certain locations. Marketeer ork agency orltifac s customer. But there have been rep fol areas and then robbed while at are play restaurant or another type of business. Could there be a risk here to some businesses . And how can they protect themselves . I think theres alw. That means they could be up for a legal suit, so there are theres always a dark side to a lot of businesses. I think they should note, pokemons been around since my oldest son was a little boy and now, as kids and adults playing this have you seen something get this much traction this fast . No, i dont. You look at phenomenal successes like the iphone when it launched. I think th is weve got gey ys and now, a really broad range appeal. All right, dean, thanks as always. Co up, going for a spin. The actor who is taking on the very different role now Health Care Spending in the United States will likely grow 6 a year. That is a bit faster than the past two years. The centers for medicare and Medicaid Services cite an ageing population, rising medical prices and faster economic growth. For that increase. Hes a wellknown actor whos taking on a very different type of role. Ken u reeves is adding business man to hise at he told robert fank about his newest adventure, making motorcycles. On screen, he is famous for immersing himself in every now, hes doing the same with his business. The arch Motorcycle Company. For me, riding is a kind of freedom. Reeves his partner produce hand crafted, highly customized motorcycles from their l. A. Factory. They sell for over 80,000 each and almost every piece is handmade at their shop. Looking more like jewelry than engine parts. This company was founded after he asked him to make him a custom bike in 2006. We look at that bike and it was like, thats an amazing machine. It rides amazing. Do you want to start a Motorcycle Company . Asked do you want to start a he said no. And then i said, but listen, man, were going to die. You know, were going to die, lets build someth incredible. What youve done is amazing. Uniqu arch motorcycles have become cult favorites in have been riding since he was 22 and always takes two wheels to his acting and riding are similar. Sx zbl when you come to that moment and youre on the bike and riding or come to a moment and the director says, action. Its almost like everything you are, everything that you feel or think is alive aft like you have to, youre t. For nightly Business Report, very cool. And finally tonight, the worlds most valuable sports teams. Forbes out with its annual list, this year, an American Football Team unseated a team that plays the other type of football. Number one, there they are. The dallas cowboys, americas team, worth about 4 billion. 25 more than just last year. Marks the First Time Since 2011 that a soccer club didnt take. Spains soccer team fell to second place despite seeing a 12 rise in its value to 3. 7 billion. And another soccer club, fc barcelona rounded out th at 3. 6 billion. New york yankees were fourth, which is basically what they are in the eastern conference right now. Well,s that is nightly Business Report for tonight. Thanks so much f announcer the following program contains mature content which may not be suitable for all audiences. Viewer discretion is advised. I must say, i find mr. Hereward very agreeable. Yes, so do i. Trixie were here waving cynthia off for 6 months in the mother house. We have a daughter. Julienne nurse lee has some news for us. Ive handed my notice in. Heh. Stay safe. Goodbye. Byebye goodbye female announcer funding for call the midwife is provided by contributions to your pbs stations from