Which ones should you buy hold or sold. Detroit officially makes its case for bankruptcy, trying to get out from under a pile of debt but retirees and pensioners are trying to protect it. Good evening everyone. The tale of caterpillar and boeing set the tone today. For boeing blue skies ahead after they reported a surge of quarterly earnings, a huge backlog of orders and raised the outlook. Shares soared more than 5 . But caterpillar found itself in a hole. The Worlds Largest maker of earth moving and mine making equipment said profits plunged and cut the earnings forecast again and the stock tumbled 6. 5 . That rattled investors as they worry about growth forecast and the record stocks took a step back toward. Two reports taking a closer look at boeing and caterpillar. We begin with Jackie Deangelis and those disappointing numbers. Reporter a big earnings miss for the Worlds Largest maker of earth moving equipment, caterpillar. Pro pro profit declined almost 21 and not just profit fell shot, cats revenue declined 18 and the 2014 forecast fell plat. Mining was the challenge in the Third Quarter according to the chairman and ceo. We saw the mines really explode as india grew, china grew and Economic Growth through the big recession outside the u. S. And europe was pretty good. I think they got a little bit ahead of themselves, the markets got ahead of themselves. Reporter he said the company worked to improve operating e pit efficiency. Our budget is bulletproof. We jus need a recovery in mining, which at some point will come. Ive seen cycles off and on over my 39 years. This one is pretty acute in mining. The rest of the business is hang income there. Reporter cat announced 3,000 layoffs and warned more come could so no wonder investors are talking a pause. Im hopeful that im not going to make any forecast, bullish forecast on mining but my bet is its going to be sooner rather than later and i hope 14, 15 we start to see that. Reporter they were expecting more and for now cat has to keep digging for answers. For nightly Business Report, im Jackie Deangelis. The plants are boeing builds dreamliners, 737 and other commercial airplanes have seldom been busier. With the company on pace to deliver a Record Number of planes this year, its the commercial airplane business driving bowings soaring profits. Last quarter the company took in 22 billion, an increase of 10. 6 , thanks to more planes being delivered and yet, boeings backlog climbed to a record high. The outlook is a complete change for just nine months ago when two battery fires aboard two different 787 dreamliners growned planes and investors dropping shares to 70. Since then, boeing stock has been on a steady climb, lift in part by the dreamliner, which is fixed, flying and bringing in new orders. The backlog of dreamliners stands at 890 planes with 131 ordered this year. Boeing Building Seven dreamliners a month right now and will go to ten per month next year and the company says its boosting 87 787 production further, building 14 per month by the end of the decade. The strength of commercial airplanes is welcome news, given the pressure boeing is seeing with the defense business. While boeings defense and Space Business brought in 8 billion last quarter, the government sequester and prospect of more budget cuts, means orders for new military jets and defense projects could be limited in the future. Third quarter profits after the closing bell, at t the Telecom Giant beat wall street estimates by a penny a share. 3. 8 billion even though revenue was slightly below. At t added 363,000 new wireless subscribers but way behind Verizon Wireless that added 927,000 during the same period. The disappointing earnings from caterpillar and the mixed bag of Quarterly Results pulled down stocks and the s p 500 lost the winning streak. The s p fell eight points n. In the bond, treasury markets rise pushing the yield on the tenyear down to 2. 5 , the lowest level since july. Most of the nation breathed a sigh of relief after lawmakers solved the debt crisis and reopened the government for a few months and mutual Fund Shareholders reacted by putting money to work. The Investment Company institute says investors in u. S. Based mutual funds sent nearly 3 billion into stock funding during the weekending october 16th marking a dramatic turn around from the three previous weeks when investors pulled billions out of equities and put them into bonds. So which are the most popular stocks found in the mutual funds, the ones people owned in retirement accounts and may want to follow a little more closely . Dominic chew looks at the most widely held stocks and what makes them popular. Reporter if youre not active investor or trader, chances are have f you have a mutual fund, ira or 401 k, you have these stocks. Mutual fund data says some of these stocks are the most owned by those mutual funds, and they include names like google. Shares are up around 45 in 2013, more than doubling the return of the Dow Jones Industrial average. Then there is the king of americas big banks. Jp morgan chase has been at the center of scandals and alleged mortgage conduct but jamie diamond managed to steer them through the rough waters and the stock has risen. Chevron has been a gainer but 11 rise this year has under performed the Broader Market and a couple names that just about everyone investor is familiar with. Apple after hitting a record high of 705 in september last year, the stock steadily drifted lower, despite the rollout of new products like the iphone 5 s and 5 c. Some analysts think it could be awhile before we see the record stock gains again. The old days of seeing the big advances are probably going to be more challenge for apple going forward. A lot of that might be the law of large numbers. Reporter then general electric, ge. The industrial giant is becoming less dependent on the financing arm and more focused on enabling the growth of engineer gee and inpa structure. Some believe these types of companies will be the out performers. In particular we want to own the stock with the greatest exposure to kbroet. Investors will look to industrials as the place to be. Reporter it doesnt necessarily mean its the right stock for your portfolio so doing your homework is critical. For nightly Business Report, im dominic chu. So should some of the stocks he mentioned be in your portfolio or not . Lets ask mike chairman of holland and company. Thanks for having me. In my notes it says you see this bull market as the most comfortable bull market youve seen in a long time. What do you mean by that, and do you mean you would be comfortable yourself putting money into a broad s p 500 index fund . One correction to what i said because sometimes i mumble, most uncomfortable bull market and the reason i said uncomfortable is because people from the beginning of this in 2008 and 2009 have been skeptical of the market and thats one reason the evaluations are so low and attractive as i find them still to be, and to answer your last question, i would absolutely if someone didnt want to pick individual stocks or didnt feel competent to do that or didnt have the time, i would absolutely talk about one of the index funds like van guard or someone like that. Mike, lets talk about what dominic just reported. Apple, would you buy, sale or hold the stock trading at 525. Great question. In do ms report, i agree they have been under performer and out performer. You look at the excitement about the new iphone, the more expensive one. I just came back from china, as you know, they are foaming at the mouth to own these things. The stock really to tylers question a second ago, really is the stock is under performed because people are skeptical. Lets move on to google, buy, sale or hold . Do you like it . I love it. I love, tyler, companys whose numbers are verbs and this one is at evaluation, less extensive than it was a year ago but still, with the economy growing over 20 as large as it is and less than 25 times, earnings i i think its a steal. General electric isnt a verb, but what do you think . They repositioned a company. I think the stock is doing better and will continue to do so. I own it, as well. How about jp morgan . This has been obviously, a very troubled company, at least as far as its legal costs are concerned. Are you would you be comfortable owning that one . I am comfortable to use that word, and i do own it, and its a little reverse from where we just talked about a second ago, tyler with apple. This one, the stock has actually done reasonable well given the headlines, the 13 billion going to the government, et cetera, et cetera. The stock has been well because the market believes here the management can get through this and i think it is the class name and the class management in the industry. What about chevron, mike . Its up 11 year to date. I know its not in your portfolio but would you buy, sale or hold it . If i had to do one of the three, i would buy. I own exxon mobile. Huge on managements that perform well over a long period of time and exxon mobiles management has done extremely well and i expect them to continue to do so. I would own exxon rather than chevron. Very quick on the two stocks we quicked off the broadcast with, caterpillar and boeing. Dont any either of them but if i had to own one or the other, i would own boeing rather than cater pillar. Mike, youre becoming a verb yourself. Thank you. Chairman of holland and company. Nobody does it faster better than mike. Carl icahn is back on twitter focussing his attention on apple stock its ceo and massive stockpile of cash. Today the man that made nearly 1 billion in profits from selling half of the netflix holdings set out a cryptic tweet saying quote, just sent a letter to tim cook, pull letter will be disclosed on my website the shareholder square table, which will be launched tomorrow. Well, reports say that icons letter details approximately 2 billion investment in apple and the push to build the companys stock buy back plan to 150 billion, thats 50 billion more than the current program. Still ahead on nightly Business Report, reinventing the way smaller companys raise money and how new rules could let you own a steak just by using the internet. First, how the International Markets closed today. Early this week nbr told you about the 13 billiondollar settlement Jp Morgan Chase is working with over risky Mortgage Backed securities it sold ahead of the financial crisis, civil actions brought against by several u. S. Enforcement agencies and today we learned the bank is nearing a separate 6 billiondollar agreement with more than a dozen Institutional Investors and bond holders to settle private climbs over those same failed securities. Bank of america maybe facing some massive fines of its own. The bank was found guilty today for praud on claims related to bad mortgages sold by the country wide financial unit ahead of the financial crisis, a process the Company Called hustle. After a four week trial in new york city, a federal jury found the bank liable on one civil fraud charge and found one former country wide executive liable on the one fraud that she was pacing. Now a federal judge must decide how much to penalize bank of america. A big trial began in detroit. A federal bankruptcy judge must decide whether the city is really broke and whether the filing can move forward. State and city Officials Say there is no other alternative but City Employees and retirees who would likely see the pensions decimated say the whole process is illegal. Scott cohn has the latest from detroit. Reporter protesters turned out by the hundreds on day one of a trial thats supposed to decide if detroit gets relief from the creditors, including them. What do we want . Reporter a big part of detroits 18. 5 million in liability tips is more than 8 billion in benefits for retirees like cheryl who is being asked to pay for the misdeeds of wall street. Were not responsible. We should not pay. I live in the city of detroit. I pay taxes in the city of detroit. I own a home thats free and clear and worth nothing because of what the banks did with the po foreclosure crisis here. Reporter but the attorney taking over detroits finances insinces bankruptcy and cutting benefits is the only option. That gives us an opportunity to have a structured environment with federal Court Supervision for a comprehensive solution to very real problems. Reporter there is no denying there are real problems, a third of the residents below poverty and in some neighborhoods the abandoned homes out number the inhabited ones but the issues are much more complicated than that. To prove its eligible for bankruptcy protection the city has to show it negotiated in good faith with the creditors, the union says it doesnt and it insolvent and the city says there is a mountain of evidence of that. They say its unounce constitution l and they are using pensioners as scapegoats. Retire res making 18,000 a year, were not talking about, you know, a lot of people with a lot of money to spare. Reporter detroit doesnt have money to spare, either. If the city prevails, it could restructure its finances by spring. If not, recovery, if it ever happens, will take a whole lot longer. Scott cohn nightly Business Report, detroit. Turning to the market focus segment, we begin with defense cuts didnt hurt this Big Government contractor from reporting earnings wetter than estimates. It said quarterly profits jumped more than 8 and despite the decline for a keep band in drones and the backlog it boosted the full year forecast for earnings and revenue. The stock popped 4 to 105. 56. Higher taxes reduce profits at u. S. Airways but the airlines Third Quarter results managed to beat ex tech takes. The airline also said it will continue planning for a merger with american airlines, even as the u. S. Government attempts to block the deal. Shares dropped 2. 5 to 21. 40. And the maker of led lighting warned current thats what shareholder focused on brushing off earnings and revenues that were just about in line with expectations. Shares down almost 17 to 61. 77. The maker of glass for televisions and mobile device screens soaring on a new tieup with samsung and a 2 billiondollar buy back will take control over a joint venture with samsung, a deal it says will boost earnings immediatery. The stock soared 17 and new members and lower medical costs helped well point beat analysts expectations. It raised the outlook for this year but declined to give a forecast next year siting problems launching the new insurance plans under the president S Health Care law. One of the biggest insurers offering plans on the statebased exchanges, shares of the company fell more than 3 to 85. 48. Well point ceo one of many insurance chief executives that met with Senior Administration officials today at the white house. Also at that meeting, Embattled Health and Human Services secretary kathleen sebelius. They talked about the website and imp men takes of other probations of the Affordable Care act. Also in washington today, rules on crowd funding, a popular way entrepreneurs raise money. They sale small steaks to investors and now pell real regulators are trying to open the door to the everyday investor to finance new companies. Eamon javers joins us with a look at the new rules the government is proposal, over to you eamon. Reporter crowd fundings got attention to raise money by going on the internet and getting thousands of new investors to contribute money to the cause that saved them trouble prom going to the big banks and firms they have traditionally gone to but the fcc is worried about the new propels with fraud and scrams. So they say the new rules will under lie the overall effort here and protect investors there is a couple key caveats they put in place. No company can raise more than a Million Dollars in crowd funding and investors themselves will be limited in two key categories based on income. They said they will be limited to investing 2,000 or 5 of the annual income or net worth if they make or own under 100,000 a year. Over that, they will be allowed to invest 10 of the annual income or net worth, if whichever is greater. So a couple key caveats. The fcc is wary of fraud and abuse that might take place but want to open it up to give people an opportunity to buy legitimate companies. A lot of people are excited about this and the potential a lot of people, as you point out, worry this is send me your money over the internet and i promise to put it to work in a good way. How long before the rules will actually go into place and the mechanism wills operate . They say they are temporary proposal rules and have a whole process for actually im mea implementing them and it could be well into next year before we see companies raising money on the internet this way. Talking about mechanisms, i understand the fcc is talking about a financial entity here, calls it a funding portal. How does it work . Well, thats the new creature in this. The funding portals will be websites that start up, places where companies can post need say i have a cool idea, send me money, here are the details. They will be subject to new regulation under this. Amonojaemon javers reporting. First, how commodities, treasuries and currencies performed today. Crude oil closed at a nearly fourmonth low at 1. 44 a barrel to finish at 96. 86. Part of the reason sup pipes are up. Data showing u. S. Crude stockpiles rose after a 14week decline. And nowhere in the u. S. Is crude found in greater supply than in the shell, the massive found in rock formations underneath north dakota and fueling strong growth in construction of homes, restaurants, drilling rigs, just about everything in the town of williston, north dakota. Brian is there and has the story. Reporter when louis and clark came through here more than 200 years ago there was nothing but river but the shale oil and gas boom led to construction everywhere. And i mean everywhere. Roads, restaurants, houses and hotels are going up, filling up and selling out as fast as they can because people are coming from all over america to take part of the boom and they need a place to live and if you thought housing was expensive where you are, look at this. He bought a piece of land outside of town and now he rents trailer space and mobile homes to workers. So what does 400 square feet get you . Whats the rent . This is about 2500 to 3,000. Thats more. Way more. More than manhattan. And in an rv park. 15 miles outside of williston, north dakota. It includes electricity. Thats a bargain. Reporter Oil Field Workers are routinely pulling in 10,000 per month. 50 years ago there were only 30 wells operating in the area. Today there are more than 6,000 and that number is expected to keep growing. And its not just big publicly traded Companies Like eog, schlumberger and Continental Resources benefitting. A 3 2yearold entrepreneur began with one crane two years ago and has eight. I have one there, the value is 400,000 right now. Given the stlent of your business at 2. 5 billion, you could pay that off quickly squl yeah, they are an hourly rate machine but you can pay them off quickly here because the wheels never stop turning. You can work 24 hours a day and we do. Reporter some think it cant continue but as long as oil and gas prices dont collapse, look for the story to keep on growing. For nightly Business Report, im brian sullivan. For more on the economy, check out our website nbr. Com. Amazing that in certain pockets of the country, there is that kind of growth going on . Midland texas lowest Unemployment Rate in the country and here people making 10,000 a month on the rig. The apartments, so to speak, 3,000 . Thats a lot. Thats nightly Business Report. Im susie gharib thanks for watching. Im tyler mathisen. Have a great evening, everybody. Well see you back here tomorrow night. Nightly Business Report has been brought to you by. Thestreet. Com, interactive financial multi media tools for an ever changie financial world. The dividend stock advisor guides and helps generate income during a period of low interest rates. We are thestreet. Com