Took the market down today, sharply lower. Two stocks in particular dragged down averages. Shares of amazon. Com tumbled after disappointing earnings while visa warning of a weaker quarter ahead was the biggest decliner in the dow. It fell 3. 5 and accounted for nearly half of the blue chip index losses. Not even a boost for durable goods last month could help the markets much and at the close the dow was down 123 points closing back below 17,000. The nasdaq lost 22 points and the s p 500 was down nine. For the week, the dow ended lower, the nasdaq and the s p both ended higher. Joe duran joins us to talk about the markets and what lies ahead. Joe, welcome and good as always to have you back. As you look ahead to next week, what will have you have your eye most especially on . I think two things that are driving the markets right now, one is the obvious one, all the politics happening around the world and how they evolve and every day Something Else happens. None of it appearing to be very positive. More importantly is do we get news from the economy that suggests that the strengthening is continuing, and that the fed will become a little more proactive in cutting back its support of the economy, and that, i think, is what is really driving a lot of what is happening in the markets now. I really dont think its politics. Its really about were getting a lot of good news on the economy, on hiring, on existing purchasing of homes and youre saying well, it looks like the fed has fewer reasons to continue injecting support to the economy. So if that happens, if the fed does pull back and already has started pulling back with the bond buying, they are pulling back quantitative easing and are hinting they will raise Interest Rates sometime probably next year, if that bunch bowl gets pulled away or the juice in it is a little less combustible, what happens to stocks . I think stocks, it really depends on if they handle it well. If its done at the pace that the fed would like to do it, they will only do it when the economy is standing on its own two feet and growing by itself. They are making sure it doesnt over heat. If we get hints of inflation, which were starting to see in other parts of the world, then the fed will need to be more proactive and then the punch ball gets taken away quickly and everybodys hang over will be worth it. In an ideal scenario, the economy continues to find its legs, takes the slack out and inflation doesnt become a problem. If the inflation monster comes out here, yellen needs to be a lot more proactive and that would create problem the worst combination for stocks. Lets try and make the viewers a little money here, joe. If you had one idea that you think is a good place to put money, what would it be and if you had one thought to help me avoid trouble or losses, what would that be . The area i would want to avoid is i would be careful with any speculative debts, any debt that is longer term in nature or higher his k, economic licensetive stocks, so the risk premium for quality is very, very low. Thats not a good time to buy highyield debt or longterm debt. I would be reasonably careful in that area. And what i find interesting is you want to earn in the National Large companies. I think what youll start seeing, if we start picking up steam, that will be good for the emerging economies and large s p 100 Like Companies that have been really not doing well, industrials that are global in nature. To me thats interesting. I think europe is pretty interesting now. So you want u. S. Based companies to take advantage of that and so to me, the other area i would say is dont go to the dividend payers, go to the dividend growers. If Interest Rates stay low, thats an interesting area. Joe duran with United Capital advisors, thank you. More on the dismal day for amazon. Com. Shares tumbled nearly 10 closing at 324. 01 as investors got a chance to react to last nights earnings and they shocked wall street. They lost for more than forecast by pumping revenue into the new company but how long will investors accept this invest now profit later philosophy from ceo jeff basos. Josh lipton has more. Reporter amazons ceo jeff basos is very clear about his companys mission. Invest for the long term, measuring Company Success by market share, customers and Revenue Growth. If that comes at the expense of near term profitability, so be it. That Business Strategy was obvious in amazons latest results. Sales at the e commerce giant jumped over 20 and 19 billion but expenses surged even more as the company was spending money on faster delivery, video content and new devices like set top boxes and smart phones. That pressured spending profits. Amazon posted a wider than expected loss and forecast losses for the quarter ahead. They said we will keep investing the money. We will generate very little margins in the process but top line will continue to grow. Reporter in the past, investors acre cemented this lack of profitability because they agreed that basos vision of trying to grab as much market share as possible but amazons latest round of investments looks more ambitious and thats worrying shareholders. The current investment cycle is different than past cycles where you bill Fulfillment Centers and that would have a correlation to additional Revenue Growth down the line. In this case, were building content, tablets, phones and these investments will need to be renewed pretty much on an annual basis. Reporter amazon stock got hammered friday. Its now down some 20 this year. The company, though, doesnt seem to be in any rush to cut back on its spending. On a Conference Call with analysts, amazons cfo reiterated putting customers first is the only reliable way to create lasting value for shareholders but many arent waiting around. They want to see returns right now on this investment, problem is if basos wants to compete headtohead with tech titans like apple, google and facebook, he has to keep spending a lot of money. Josh lipton, nightly Business Report, silicon valley. The skyhigh cost and high demand for the hepatitis c medication is causing big problems for private insurers and may even be a threat to medicaid. Shares of well Care Health Plan tanked today down 20 after reporting a massive earnings miss last quarter with the cost of savolde getting much of the blame. Bertha coombs has more on how the high cost is impacting the entire health care industry. Reporter scientists hepatitis c drug is a blockbuster, netting the drug maker nearly 6 billion in sales for the First Six Months on the market but at 84,000, its causing pain for insurers and government plans like medicaid with millions of americans estimateed to have the virus. There is no question that we simply cannot afford to treat the three million, all three Million People in this country that have hepatitis c with a drug that costs between 84 and 140,000. Reporter well cares shares sank after reporting an unexpected second loss because of higher drug costs at the plant. Hepatitis c drugs were a big problem. The insurers will get reimbursed but the big question is how states will pay for what could be upwards of 55 billion for hepc drugs. I heard some states are saying they have spent more on sovaled on the First Quarter of this year than they did on all liver transplants in the past two years combined. Reporter the pharmaceutical industry maintains it not only saves lives but will result in Lower Health Care costs long term but the sticker shock is fueling the debate about Specialty Drug prices and regulation in the u. S. Since countries with National Health plans are being charged less. I think this drug is the edge of the wedge. This is the one thats going to force us to address the question of how much can we afford, how much can we pay, and are we going to put up with the prices that the providers of drugs or vaccines or devices tell us we have to pay. Reporter as one insurance executive put it, at a time when Big Pharmaceutical Companies are moving overseas to save on u. S. Taxes, how can they argue u. S. Patients should have to pay more than people in other countries for the same drugs . Bertha coombs, nightly Business Report. A sad note to report, the death of a wall street legend, bear sterns chairman and ceo alan ace greenburg passed away at 86 following a battle with cancer. He started in 1949 as a clerk working up the corporate ladder and up and up and credited with one out biggest and scrappiest banks. An avid bridge player and magician who had a deck of cards for tricks, gave up his ceo in 199 3. It was acquired by Jp Morgan Chase in 2008. An economic war of words, european nations are ratcheting up pressure on russia reaching a preliminary deal to impose wider sanctions but russia is making a move of its own raising eyebrows. Jim from nbc news has more from moscow. Reporter Vladimir Putin may if be feeling less confident today after robust sanctions. The deal would include a ban an Eu Investment and russia banks and an embargo on sales to moscow and also restrictions on the supply of key energy and technologies to russia like deep sea drilling for instance and shale Gas Technology and there may also be a war to report soon. A Protection Agency filed a lawsuit against mcdonalds in russia, believe it or not, claiming its nutritional information on packaging of the cheeseburgers and chicken burpgers is false and therefore illegal. Mcdonalds told us today it knows nothing about the claims and that everything at mcdonalds is approved by russian authorities. It looks like the golden averages, an American Icon is in the process. We begin market focus with investors going loco for shares. They made the trading debut and investors snapped them up like they were shares of chipotle or something. The restaurant raised more than 100 million in todays offering of about 7 million shares. Its under one of the great ticker symbols of all time, loco. Shares of Stanley Black and decker popped after the tool maker said the profits claimed, managed to increase sales and trim cost adding those results, the company lifted earnings outlook and the stock rose almost 7 to 90. 77. Arthritis drugs humirah beat on the top and bottom line and last week the Company Announced it is planning to buy shyer for 55 billion. Despite the earnings, shares off to 53. 18. Xerox posted mixed results with revenue coming in belowest h estimates. Investors focused on that good news and the shares of xerox up to 13. 15. Shares of Swift Transportation went the other way, after it issued a disappointing outlook and warned of a driver shortage. The Trucking Company said it was going to have to spend more on wages and training to attract additional drivers. But the ceo of riders sees the trucker shortage as an opportunity. There is a shortage of Truck Drivers, thats a great opportunity for rider because we have 6,000 commercial Truck Drivers that are employees. So we have an extensive driving recruiting network to bring drivers into rider and companies having trouble recruiting drivers will outsource that. There is clearly a shortage of drivers today. There is some Wage Inflation over the last couple years and i expect that to continue. Shares of Swift Transportation fell 18 to 21. 20 and dividend news from delta. The airline hiked the payout to 9 cents a share paid to shareholders at the end of august. Despite that, shares drifted down to 38. 06. Our market monitor guest says there are large cap stocks that are cheap in the market. Hes greg abella, chief Portfolio Manager and joins us onset tonight. Good to have you with us. Thank you. Give me your thought overall on the market quickly in a capsule. Complacent. Complacent. If i had to come up with one word. Some of the industries are extended. Were due for a healthy pull back. Its just a normal faphase of t market. There are large cap names compelling values here, id be waiving another 5 or 10 to put it to work. As you look at the market, i assume some of the reasons you like big caps is other smaller caps, you think are over stretched. Thats right. So lets start with your first pick, there is no bluer chip than exxon mobile. Exxon is a compelling value here. It got downgraded today but only down in line with the market. In fact, it was the price target that was actually lifted a little bit from that analyst who downgraded it, but, you know a half trillion dollars looks like descent value. With the pull back, i would be putting money to work in a name like exxon. Good company presumably to have as an anchor. Thats right. Lets move on to a controversial pick and thats ibm. Ibm i think is suffering a bit from lackluster Capital Spending and Information Technology in corporations. But the company is in a very interesting space. Platform as a service and infa st infrastructure trading at ten times earnings, 2. 5 dividend yield. You like this deal with apple . Yeah, i actually think they are on the right track. Im in good company, about 6. 5 of the company is owned by warren buffet, so as a value guy, i can identify with why compelling. I would probably put money to work. The third choice is prospect capital corporation. Im not familiar, tell me about it and why you like it. This is a Specialty Finance company. It lends to small and mid sized companies where banks cant participate. They lend at high rates. They pay out 90 of the income they make to shareholders as Development Companies do and as a result, it has a yield of 12 . There is risk with this 12 yield, whoa, wait a minute, thats often a danger sign. It can be, but thats not uncommon with business Development Companies to pay out those kinds of rates. The risk being the nature of the structure. The nature of the structure, a little more than the risk. And its diversified overcome pan kn overcooverco or companies. By way of disclosure, do you own any of these companies personally, does your company . My clients do. Portfolios you run for them. Correct. I would be looking to add to these names. Thank you, have a great weekend. You, too. Thats greg abella with investment partners. Atlantic city new jersey could see the fourth, fourth casino close up shop and if things werent bad enough for the seaside gambling mecca, they saw the debt downgraded by moodys. What could the latest blow mean for ac . Morgan brennan has the story. Reporter the losing Streak Continues for Atlantic City, the downgrade is yet another blow putting ac in a rare category of noninvestment grade Municipal Bonds including detroit harrisburg and puerto rico but the debt isnt at risk of default, at least not yet. With the moodys rating, it has a negative outlook, which means it can go down further in a relatively short period of time and i think they are waiting to see how the closures are going to affect the tax space. Reporter ac only has about 245 million in longterm debt, a relatively small sum compared to larger cities billions, but the risk is that things could keep getting worse. The city has long struggled with high unemployment, poverty and crime and competition caused a 45 drop in gaming revenue, the citys main source of income since 2006. This month, trump plaza warned it will likely close in september, becoming the fourth casino to close or consider closing since just the start of the year and adding insult to injury, on tuesday, robbers reportedly made off with more than 180,000 from caesars Atlantic City at gunpoint. Analysts say the downgrade presents a big hurtle for ac, which has been scrambling to reinvent itself away from glam bing. The risk is if they try to tap the Capital Markets again, they will be paying higher and higher costs and that could happen sooner than they think. Reporter thats because the on going decline caused them to seek property tax assessments. Ac owes 88 million and could owe refunds to six businesses. Thats money the city doesnt necessarily have and with bonds rating junk, cash could be more difficult which in turn could mean service cuts to things like police force and garbage cleanup and that could eventually chase even more money away. For nightly Business Report, im morgan brennan. Coming up, why comiccon is no longer just about comic strips and super heroes but big business for major media and content companies. Some good news at the grocery store, rising prices for food will level off remaining steady except for more expected increases in meat and seafood prices. The cost of pork will be particularly hard hit. Forecast to rise as much as 11 this year, thats because of a virus that killed millions of pigs. Bose is suing beats over the use of some of its noise cancelling patents in its headphones. Beats headphones with streaming Music Service will soon be owned by apple, which it agreed to acquire for 3 billion this year. The deal has not yet closed. British pay tv giant b sky b owned by murdoch will pay 9 billion in cash for two big Pay Tv Networks in europe, one in italy, one in germany. The seller is 21st century fox controlled by murdoch. The thinking is that by raising cash, murdochs fox muscles up to pay more for timewarner. Fox offer was rejected as too low this month. Media giant studio heads and about 150,000 fans are flocking to san diego for comiccon, the Character Convention and stakes are bigger than ever. Julia boorstin has more. Reporter take a look at these costumes. Fans get invested and can spread the word on twitter, facebook and youtube, thats why comiccon is so important, it allows brands to communicate to fans who have more power than ever, flocking to the event thats become pop culture ground zero. Getting my nerd on, pretty much. This is, what, my fourth year here. We always come here. I love everything. I mean, ive seen a lot of it on tv and i want to see it for myself. Reporter comiccon is a huge platform for media giants to announce and launch all sorts of content. It expands far beyond comics from marvel expected to provide details on six films to Warner Brothers comics promoting ca show. Microsoft xbox looking to build excitement for halo and digital show. Being at comic come, new ideas, and creative items, time when the brands and Companies Bring the best foot forward and unveil them in a big, grand way and its very competitive. Big advertisers are teaming up to cut through the ad clutter and reach young tech savvy consumers like these who are hard to reach through traditional means like tv advertising. Two great examples of branded stunts, pizza hut teaming up with the Ninja Turtles film to launch a 12foot tall pizza thrower and uber powering up with fx with a zip loan promoting the gotham show and uber designed cars to look like Gotham Police cars to drive visitors to san diego. They are hoping to connect with fans and turn them to their brands. Julia bar stoorstin in san dieg here is something you dont see often, thousands of workers in massachusetts rallied today, calling for the company to reinstate the ceo who was just fired by his own cousin. No word yet if this family feud is finished or if the onetime boss is or will soon be back to work. That will do it for nightly Business Report for tonight. Im tyler mathisen. Thanks for watching. Have a great week, everybody. We hope to see you back here on monday. This is bbc world news america. Funding of this presentation is made possible by the freeman foundation, newmans own foundation, giving all profits to charity and pursuing the common good for over 30 years, kovler foundation, charles and union bank. At union bank our relationship managers work hard to understand the industry you operate in. Working to nurture new ventures and help provide capital for key