But as rates rise, will the stock market rally be slowed or stopped . Malllicious activity. Shopping malls have become Fertile Ground for cell phone hackers. What you need to know to protect yourself. Those stories and more tonight on nightly Business Report for tuesday, december 13th. Good evening, everyone and welcome. Dow 20,000. Not so long ago, like for instance, in february of this year, reaching that landmark number seemed a ridiculous idea. Preposterous, even. Not any more. Today the Dow Jones Industrial average came within 50 points. Maybe tomorrow, might be not for months. But what we do know, to the roughly five weeks from the election and six from the inauguration of donald trump as president , the three major stock market indexes finished the session at alltime highs. Again. The blue chip dow index added 114 points to 19,911. Its seventh Straight Record close. Nasdaq up 51, s p 500 gained 14. And later in the program, well look at what investors should keep in mind when stocks hit these big numbers. But dont forget. Tomorrow the Federal Reserve meets for a second day, and many expect policymakers to raise Interest Rates for the first time in a year. And the path of Interest Rate increases could be a pivotal factor for the market and investors. Steve liesman tells us what some of the Top Economists and Money Managers are looking for. Big questions heading into tomorrows Federal Reserve meeting after all the changes in the markets and politically. Wall street, according to the cnbc fed survey, seeing a more aggressive fed in the years ahead when it comes to Interest Rates, and while they generally approve of the policies of president elect donald trump, they worry that the stock market may be too optimistic and trumps trade policies could hurt growth. Here are the expectations. 96 saying the fed will raise rates at the meeting tomorrow. 44 say the next rate hike is coming in may. You can see when we look at the expectations for rate hikes that its come higher. What was 1. 1 projected in november of 2017 now up to 1. 3 . They see rates rising, the fed funds rate rising to 2. 1 to 2018 and 2. 7 in 2019. The market the respondents do think the market has gotten a little bit ahead of itself. 56 saying the market is too optimistic about trumps policies. 42 saying they are realistic. And looking at what they think about trumps policies, generally positive. Three quarters say theyre positive about individual tax cuts proposed by the president elect. 89 like the deregulation thats been talked about. And 92 , they really like the business tax cuts. But looking over here, 73 have a negative view on Donald Trumps trade policy. Put it all together, and the outlook for gains in the stock market are maybe more muted as suggested by the recent gains. Respondents see a 4 rise for next year and 9 by the end of 2018. For nightly Business Report, im steve liesman. What matters even more than whether the Federal Reserve raises Interest Rates tomorrow is what the Central Bank Says about the future. And what it does in 2017. Darryl kronk, welcome. What are the odds in 2017 the Federal Reserve sees an economy growing faster than maybe anticipated, fiscal stimulus that causes the economy and deficits to expand maybe a little bit, and inflation picking up and they decide to move more aggressively than we anticipate . What are the odds of that . I still think thats a fairly low odds scenario or probability scenario. Maybe a 1 in 4. Certainly i think well hear in the press Conference Tomorrow chairman yellen say that they the fed wants to remain datadependedent. It needs to see the followthrough. Not just of the new administrations policies, but growth continuing to follow through and inflation to your point taking that next leg of up shift, tyler. What are you going to be listening for tomorrow from the fed chief, and what is the market going to be listening for . So just like was outlined earlier, we will have all eyes on their expectations for this next year. I think what you will hear from them is theyre not going to price in any reliance on fiscal policy stimulus or changes. I dont think youre going to see them price in any adjustments to trade. Theyre simply going to tell the message of remaining datadependence, sue. And they want to see the data before they make any monetary action. Has the bond market and has the currency market already done some of the feds work for it . Yes, tyler. I think the bond market has largely done a lot of the work for the fed, and is in some ways given them air cover. The twoyear treasury today closed at 1. 16 . So when you think about where shortterm rates have come, the fed is actually in theory tomorrow playing a little bit of catchup to what the bond market has already done and the strengthening dollar has done some of the work for them on tightening monetary and economic conditions. And very quickly, if indeed they do raise Interest Rates tomorrow, is that already factored in to this market that has had such dramatic moves to the up side recently . I think it is, sue. You know, the fed funds futures say its almost 100 probability they move tomorrow. I actually think the equity markets, depending on the language in the press conference, might rally off of it or continue this rally. I dont think it i dont anticipate it to be a negative event for the markets. Darryl, thank you very much for being with us. Appreciate it. My pleasure. Daryl kronk with wells fargo investment institute. Exxonmobils ceo is Donald Trumps pick to lead the state department. As we have reported yesterday, Rex Tillerson is a longtime ceo and dealmaker who has extensive business ties overseas. In a statement, mr. Trump said tillerson will, quote, promote regional stability and focus on the Core National security interests of the united states. The president elect also chose the former governor of texas, rick perry, to be the next energy secretary. In 2011, though, the department of energy was among the agencies that perry said he wanted to eliminate. The head of opec, the cartel of oil producer, said exxons Rex Tillerson will be a great asset. He made the comments days after entering into a Production Cut agreement designed to end the global glut of oil. And today Jackie Deangelis caught up with him in washington. Reporter opec secretary general barkindo is in washington today. He was ai believe to comment on president elect trumps nomination of exxonmobil ceo, Rex Tillerson for the position of secretary of state. Rex tillerson i know personally. Hes a very accomplished, be gentle man, very measured, very broad, and bringing in very wealth of experience in the corporate world. And through that experience, has built a very credible Network Across nations, across continents. He would be a great asset. Secretary of state barkindo will be in new york city tomorrow and talk about how everyone can Work Together on the progression of the energy industry. For nightly Business Report, im Jackie Deangelis, washington, d. C. And the closely watched opec deal to cut production could result in an oil deficit by the first half of next year. Thats according to the International Energy agency. Oil stockpiles will decline by about 600,000 barrels a day in the next six months. The decision to limit supply should shrink that glut that has kept prices historically low. Today domestic crude rose fractionally. Bill gates announced he was starting a 1 billion Clean Energy Tech fund. The founder of microsoft net with trump. The fund will focus on innovation to make clean energy more attractive to companies on a cost basis. And innovation is what he discussed with the president elect. We had a good conversation about innovation. How it can help in health, education, impact a foreign aid and energy, and a wideranging conversation about the power of innovation. Thank you. Gates said that innovation can drive down the cost of clean energy, and make it cheaper than socalled dirty energy. Still ahead, why this is the most wonderful time of the year for hackers. Another blow to wells fargo. The bank failed its socalled living will test for the second time. Regulators will now place restrictions on the firm until the problems are solved. Large banks must submit a living will or blueprint that regulators can follow, should the bank fail. The blueprint is designed to prevent the failure from bringing down the entire financial system, and burdenening taxpayers. Wells fargo says it is disappointed by the ruling. Small Business Optimism has skyrocketed since the election. A survey of owners shows the sharpest rise since 2009 with all of the sentiment increase coming after election day. According to the National Federation of independent business, Small Businesses like the idea of a unified republican government, and believe they will benefit from Donald Trumps plans to cut corporate taxes. Eli lilly cuts the price of its insulin drugs for some customers and thats where we begin tonights market focus. The company said it would slash the Retail Prices of its insulin prices up to 40 through a new discount program. Beginning in january, uninsured patients and those paying high deductibles will be eligible to receive those discounted medicines. The shares rose 1 to 68. 64. Quest diagnostics is investigating a data breach that compromised the personal information of 34,000 customers. The lab Testing Company said an Unauthorized Third Party hacked into the companys net would, and obtained lab results and telephone numbers. Shares were up 24 cents at 91. 9 a. Anheuser busch will sell its east european based beer brands for nearly 8 billion. Anheuser busch previously agreed to sell those assets to win Regulatory Approval for its 100 billion merger with sab miller. Shares up 1 at 105. 05. Googles parent, alphabet, is spinning off its selfdriving car project into a business called waymonth, which will operate as a standalone unit. That move could signal alphabets desire to bring autonomous driving to market and monetize its technology. Shares rose almost 1 to 815. 34. And verify i phones shares continue to rise following the companys better than expected earnings after the bell yesterday. The Payment System makerish issued guidance that came in below expectations but shares soared 8 to 17. 85. Have you shopped online lately . The answer is probably yes. And there is a growing chance you bought Something Big and bulky. And that means the companies that bring you those oversized items have to make some costly changes. Morgan brennen reports tonight from new jersey. Reporter toy cars. Bigscreen tvs. Even trampolines. Bigticket items that destiny for door steps. Online sales of these oversized goods are now growing faster than the rest of ecommerce. Fedexs Vice President of ground operations, scott burns, says these big shipments that cant fit on normal conveyor belts now comprise 10 of company volume. Its growing. I mean, hence weaning into nonconveyables. The consumer wants to ship it, theyre willing to pay for it, were willing to build capacity for it. The numbers are up year over year, continue to increase as does ecommerce does in general. They came online earlier this fall when fedex rolled out to, in part, handle these bigger, bulkier items like furniture and rugs that consumers are increasingly buying online. The facility can sort up 50,000 packages per hour. With specialized equipment that streamlines how noncon availables are processed. Historically, these items require more human handling. Take up more space on trucks and often require two or more employees to deliver. During the peak holiday season, that additional effort can have big ripple effects, as Companies Scramble to get hundreds of millions of packages delivered on time. Analysts say its a double edged sword. Its a great opportunity both on the cost as well as the profit side. You know, as i said, fedex and u. P. S. Are delighted with the depth that ecommerce has reached in the marketplace. By theyre a little bit bedevilled by the breadth. Those large items that need to be delivered and installed, the new refrigerator, put together, the bicycle, the barbecue grill, requires some expertise, and extra service. That extra service means extra fees. Both fedex and larger rival, u. P. S. , have changed the way packages are priced. The oversized shipment boon has also created opportunities for smaller logistics players with xpo logistics, transforce and privately held Pilot Freight Services competing with pricing and even throwing in Services LikeFurniture Assembly upon delivery. For nightly Business Report, im morgan brennan. But if you do decide to shop the Old Fashioned way and go to a mall, there are some precautions you should take. Because as andrea day reports, hackers are lurking. Reporter call it the holiday hustle. Hackers working overtime to get a piece of the billions spent this season. This is a great time for hackers to do busisiness. Reporter and especially vulnerable are transactions made right from your smartphone. According to the experts at sky cure, if you download certain apps on your device or connect to wifi at the mall, you could be opening up more than just your wallet. You have pictures, you have credit card information. All of this information is at risk. Reporter the mobile Security Firm ran tests at the nationiest busiest malls and found that just like some stores offer wifi, so do the criminals, creating fake wifi hot spots, waiting for you to connect. Every transaction that you are doing on your cell phone is actually going through the bad guys. Reporter on the list of the top ten riskiest malls, each had more than five fake wifi networks. The Fashion Show Mall in las vegas topped the list, with 14 bad networks. So how do you spot the bad wifi . He says criminals often put the word free in the name. We found macys free wifi in denver. We found bloomingdales free buy pie in philly. These wifi had nothing to do with those brands. These were fake wifi networks. Reporter and malicious wifi isnt the only scrooge in town. He says hackers are creating fake apps that look like the real deal. Like this one called amazon rewards. Found in thirdparty app stores not controlled by apple or google. And trying to lure you in with deals that dont actually exist. This looks exactly like amazon app. Using the real logo, but stealing information in the background and sending you to fake websites. We reached out to the businesses mentioned here. Amazon tells us, quote, we encourage customers to download content only from sources they trust. The Fashion Show Mall says it takes security very seriously. And does periodic audits of our wifi systems and did not find any suspicious public networks. To avoid malicious apps, only download apps from the official apple and google stores. And when you use wifi at the mall, any hot spot with the word free in the name is probably not a good idea. For nightly Business Report, im andrea day. Coming up, why investors get excited when the stock market indexes hit big round numbers. Heres a look at what to watch for tomorrow. As we reported, the Federal Reserve is widely expected to raise Interest Rates and fed chair janet yellen will hold a news conference. Retail sales and Producer Prices for november are due out. And Donald Trumps team hosts a summit with leaders from the tech industry, and thats what to watch for tomorrow. As the dow marches towards 20,000, some investors are looking for new stocks to buy, and increasingly difficult task in this rising market. Contessa brewer went to visit an Investment Club in warner robbins, georgia, to learn how they do it. Reporter as members of the middle georgia Investment Club file into their december meeting, they keep the small talk short and dive into some serious money business. If we hit reporter with a 264,000 portfolio, and 23 growth this year, the 11member club is factoring president elect Donald Trumps position into their own. Youre going to look at your banking industry, now that trump is going to be elected president. Youre going to look at the energy, gas, oil. And then youre going to fall away from pharmaceuticals. Both of us made comments, negative, about the pharmaceuticals. Reporter their Biggest Stock Holdings in at t, Cognizant Technology and magna international, an automotive supplier. They just dumped their stake in gilead. Other concern is with the Affordable Care act. You know, you dont know the results of what theyre going to replace it with, if theyre going to replace it with anything, okay . So theres a lot of uncertainty. Reporter in a region that relies on Robbins Air Force base for its economy, defense spending is suddenly getting more debate from the club. After Donald Trumps tweets calling out boeing and lockheed martin. He would just look at a few things like the one plane, air force one. Costs too much. I agree with that. We need to cut that. But hes going to fill up military in other ways that i think is going to more than make up for a few of the losses. Reporter the market rallies also making buying difficult. The club is sitting on 22 of its portfolio in cash. A lot of times, we walk away and there just wasnt anything to buy, because everything was overvalued. A lot of the stocks have theyre high now, hitting their peak. So you have to just watch. But theyre still good stocks out there. Reporter this Months Research focus, internet stocks, which the club doesnt own. Facebook is a buy. Reporter after much discussion, the club made a unanimous decision to buy 75 shares of facebook. What took so long . The clubs guidelines demand five years of Stock Performance to consider. And middle georgia Investment Club says its taking a long view. And now youre in it together so you know that youre going to rise together or fall together. Exactly. Exactly. Reporter no matter the new president s policies or cabinet picks, the investors here are confident and optimistic in their strategy together. For nightly Business Report, Contessa Brewer in warner robbins, georgia. And the middle georgia Investment Club has seen new interest from potential members since the election and this comes as the overall number of Investment Clubs has declined over the past decade. But as the Dow Jones Industrial average approaches the 20,000 level, some investors are getting caught up in the frenzy and the excitement of the big round milestone number. But why is that . And what should you keep in mind when stocks do hit these big numbers . Frank murtha is a doctor of psychology and co founder of market psych. Com, and joins us with some answers. Frank, welcome. Nice to have you here. Thanks very much. So what is it about the big round number that is so exciting, and its usually on the way up, not on the way down. Yeah. Thats quite true. Well, for one thing, these big round numbers like dow 20,000, they draw peoples attention. There is an awful lot of people out there who are not paying very close attention to their portfolios, but they hear, oh, dow 20,000. Maybe i ought to and have they finish that sentence can actually lead them to do something they wouldnt normally do. In addition, it conveys a sense of accomplishment. Its kind of an illusion, but it almost feels like something great has been accomplished because we have crossed this somewhat arbitrary threshold, and it also conveys a sense of completion. I think for a lot of investors looking at the stock market, especially when there is a little bit of anticipation, Something Like a milestone feels like a finish line. Right. Almost feels like youve got to you know, turn the page. A new chapter now. And its something to be aware i think we in the media are obviously a little bit complicit in this problem. We probably share some of the guilt in fanning the interest in it. What typically happens after a major milestone like 10,000 or 20,000 is hit . Do people take that sense of accomplishment and say, okay, i made 20,000, im getting out . And does the market go down . What happens . Well, the data are mixed there. I can tell you that since dow 10,000 came about, every succ s successive thousandpoint milestone after that, the market pulled back within a month. Pulled back each month a little bit after that. So it really does depend. There are so many x factors that rely just beyond the psychological reaction. So what should you do, then . What are some of the dos and dont as we approach this number . How do you analyze and keep your emotions in check . Well, sometimes it can be difficult to keep perspective, but thats what this calls us to do. Heres another number to throw out there. Dow 40,000. That sounds kind of crazy to talk about right now. But it was just six years ago during the obama administration, we were actually under 10. So we have come that far. Thats the equivalent move of going to dow 40,000 just six months from now pardon me, six years from now. So you want to bear in mind, these numbers can play a little bit of tricks on your mind. And the other thing is this. If you find yourself asking a question like, boy, if the dow gets to 20,000, i think i might want to do x, ask yourself, why is it that im not doing that right now . When were so close. Yep. Yeah. All right. Dr. Frank murtha, thank you so much. With market site. Com. And before we go, as we focus on that big tempting round number, heres another look at the dow as it inches closer to 20,000. The blue chip index added 114 points today to 19,911. 911. Hmmm. Nasdaq, theres the nasdaq. It was up 51 points. The s p 500 up 14 and three arters to finish at 22. 71. Well be their lifeline, regardless of what happens. Give us a call. All right. That will do it for nightly Business Report for tonight. Im sue herera. Thanks so much for joining us. And im tyler mathisen, thanks from me, as well. Have a great evening, everybody and we will see you back here tomorrow. Nightly Business Report has been funded in part by hss. Our value principles are patient first, and we want to deliver the highest quality care. The goal of creating and sustaining value is all about putting the patient at the center of the equation. The purpose of this organization is to help people get back to what they need and love to do. Gillian emily jane greenwoodwallace. Well thats a gobfull, for someone who only weighs six pounds, three ounces. Alan you cant call a baby that celia whatve they called it . Alan calamity jane. Kate i was so delighted when you told me youd booked this place. And then you go and book two separate rooms. Celia that bungalow we went to see when i said we were just looking; weve put in an offer. Celia maurice is dead. [light music] kate greg celia kate robbie have you slept together . Gillian john no. Caroline are you dumping me . 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