this program is made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt >> tom: good evening and thanks for watching. the tax cut bill is in limbo tonight. the bill hit a snag in the house of representatives. some democrats protested terms of the package, like extending tax cuts to all americans, including those making over $250,000 a year. susie, there's still a chance there could be a vote later tonight. >> susie: tom, all this comes just two weeks before the bush- era tax cuts expire. the new package extends those tax cuts for two years, plus a payroll tax holiday for workers for a year. the senate passed the bill yesterday. >> tom: while few democrats in the house like the entire $858 billion package of cuts, more, like senator altmeir urged the house to get it done, saying congress should stay until the cuts are passed. so will those tax cuts usher in a brighter new year for you and your finances? economists are looking ahead to more job creation next year, in part, because of those tax cuts. but that all depends on whether consumers deliver as darren gersh reports. >> reporter: will they spend it or will they save it? in just a few weeks, consumers will likely vote with their wallets, confirming whether the payroll tax cut was a good idea or not. the national retail federation's rachelle bernstein expects a yes vote here. >> $100 a month, or a little more than $100 for the median income family-- i think that is real money that can go into some of those pent-up needs that they haven't been filling for about two years now. >> reporter: conventional economic wisdom is more mixed. most economists expect a healthy boost to the economy next year, but the tax foundation's scott hodge says temporary tax cuts like the payroll tax reduction have a limited impact. >> they essentially can incentivize people to buy something today, maybe a television, that they might have paid for next year. good for today's economy, but not good for tomorrow's economy. >> reporter: that's one reason hodge expects most people to pocket their extra cash or pay down debt next year. another is continued uncertainty, first over whether the payroll cut will be extended next year, and what happens to the bush tax cuts the year after that. >> either way, they're seeing a great uncertainty in their future, and that, i think, is going to have an impact on people's decisions to make these long-term investments or consumption decisions. >> reporter: but rachelle bernstein argues this temporary tax cut should pack more of a punch than the tax cuts put in place at the height of the recession. >> that came when people were so scared to death about losing their jobs, losing everything they have. the situation is not great now, but it's a little bit better. we see the consumer being a little more optimistic. >> reporter: consumer spending will be a critical signal to watch early next year. if people simply save their tax cuts, some economists worry that could contribute to the downward pressure on prices that has the economy flirting with deflation. darren gersh, "nightly business report", washington. >> susie: there's another potential boost for retailers in the works. the federal reserve proposed today a cap on the fees banks can charge stores when a customer buys something with a debit card-- 12 cents, maximum, for each transaction. that's a drop of 90%. the crackdown on these so-called "swipe" fees is part of the sweeping reforms from the dodd- frank financial reforms. the banking industry has been fighting them; they stand to lose more than $20 billion annually. banks warn that, to make up for the lost money, they might charge consumers new fees for checking accounts, deposits, and atms. >> tom: here are the stories in tonight's "n.b.r. newswheel." modest gains for wall street, but enough for the major indices to sit near two-year highs. the dow rose 41 points, the nasdaq gained 20, and the s&p 500 was up seven. the gains came on a slight drop in trading volume from yesterday's levels. an upbeat report on weekly jobless claims helped the market. the labor department says claims fell unexpectedly in the past week, down 3,000 to 420,000. but more worries about greece's fiscal shape. moody's today put that nation on notice, saying it is reviewing greece for a potential downgrade of its government debt rating. while debt troubles continue to dog several european countries, european union leaders today agreed to create a permanent crisis fund for the region. it's called the european stability mechanism, and it will ramp up in two years by taking over europe's existing bailout fund. still ahead-- more bang for the buck. we look at how japanese publishers are trying to keep consumers coming back. >> susie: more arrests today in the government's ongoing crackdown on insider trading. the fbi charged five people with peddling confidential information on several big tech companies to an expert- networking firm. an executive at that company, primary global research, was also charged. he's accused of paying over $400,000 to employees of tech companies for insider secrets. today's actions are part of a larger government probe of expert-network companies. those are the firms that connect hedge funds and other investors with industry executives and corporate consultants. former s.e.c. enforcement lawyer jacob frenkel thinks today's arrests won't be the last. >> this investigation is moving forward, and they've made more arrests since the one they made a number of weeks ago, right before thanksgiving, and will continue to do so as they pursue larger, more significant individuals within hedge funds, within corporations as their targets. >> susie: no comment today from those charged, but the u.s. attorney said the tech companies, including dell, whose secrets were traded, are cooperating in the investigation. >> tom: roche's top drug, avastin, should no longer be approved for treatment of breast cancer. today's announcement by the food and drug administration could cost roche a billion dollars in annual sales. federal health officials cited the medication's poor performance in follow-up studies, and its potential for serious side effects. doctors will still be able to prescribe avastin, but many health insurance companies will no longer pay for it. avastin was once expected to become the world's best-selling drug by 2014, but its prospects faded after it failed clinical trials for prostate and stomach cancer. >> susie: another challenge today to president obama's health care reform law. 20 states sued to get the law thrown out, calling the requirement that americans buy medical insurance or pay a fine unconstitutional. after three hours of arguments, the florida federal judge hearing the case said he would try to come to a decision as quickly as possible. florida's attorney general, bill mccollum, led today's challenge, and said he was encouraged by the judge's questions. >> and i thought the judge realized that too, when he talked for a moment about the broccoli example, when he said, you know, if congress has the right to tell you to buy an insurance policy-- in this situation, because it's for everybody's benefit-- then why wouldn't they be able to require you to buy broccoli and eat it so you don't get sick? because that too would affect economic conditions of other people, so i think he got it on that point. >> susie: on monday, a virginia federal judge ruled the individual mandate is unconstitutional. but he declined to put implementation of the health care reform law on hold. >> susie: if you still have holiday shopping to do, tomorrow might be a good day. it's free shipping day. that's when over a thousand merchants offer free shipping. erika miller talked with one web retailer to find out why the promotion is so popular. >> reporter: this petite woman is the queen of plus-size apparel. stephanie sobel is the president of onestopplus.com, a web site specializing in large sizes. the retailer is also offering extra promotions this time of year, including free shipping. the company says that's one of the best ways to lure new customers and clinch a sale. >> they'll find us, and they would love to be sure if the fit is perfect for them. free shipping kind of takes all of the question marks out. >> reporter: it's hard to miss the massive number of merchants offering free shipping promotions this holiday season. the frenzy will come to a head friday, with over a thousand retailers offering free standard shipping with delivery in time for christmas. what's new this year is an increasing number of stores offering free shipping on orders of any dollar amount. retailers know why free shipping is so appealing to their customers-- no waiting in line, no traffic, no cost. but what's free for shoppers is not free for stores. the cost of shipping comes out of their profit margins. but internet analyst brian pitz says the payoff is higher sales. >> i think customers are now differentiating, and are only purchasing when free shipping is involved. a lot of the data we see suggest 60% to 70% to 80% of carts are abandoned if free shipping is not offered at the point of check out. >> reporter: free shipping may be enticing, but retailers caution it's not the only reason for a purchase. >> it's really important to have a great selection, latest trends, great products. >> reporter: free shipping just adds an extra sparkle to holiday shopping. erika miller, "nightly business report," new york. >> susie: we had small gains in the markets today but new 5-- 52-week highs whether the do you, s&p or nasdaq, a very good day. >> tom: it was a very good die day, the highest prices in the indices since lehman brother's collapse in the fall 62008. enough buyers to push us to new highs so let's get everybody updated in tonight's "market focus" stock prices were able to climb in a broad but muted rally. oracle's earnings were in focus after the close. the business software giant saw earnings well over estimates. its traditional software business continued growing, as did its newer hardware business that came from its buyout of sun microsystems in january. one out of every five dollars in sales for oracle now comes from computer hardware like servers. oracle stock came into the report down a fraction. after the close, shares added 4% to this closing number, taking them above $31 per share for the first time in a decade. another rally after the close was seen in research in motion, the company behind the blackberry mobile device. shares were a fraction higher at the closing bell, but in electronic after-hours trading, they added 4% to this closing figure. if that holds, it would take the stock over $61 per share. here are the results coming in better than forecast. it shipped a record number of blackberry smart phones during the quarter. its revenue outlook for the current quarter also came in better than anticipated. an earnings call helped the market mood, and helped the industrial stocks sector put in the best performance. among the big sectors was fed- ex, while the earnings were less than expected. while it saw record business overseas, labor and legal charges held down profits. still, shares responded to optimism, with fed-ex raising its forecast. its c.e.o. said "we're now more bullish about the reminder of the year." it should be noted, fed-ex's fiscal year ends in may. it is worth looking at competitor u.p.s. it got a bid off of the fed-ex outlook. u.p.s. stock actually saw a bigger rally than fed-ex. this 2% jump today takes u.p.s. to its highest price since the spring of 2008. earlier, susie reported on the federal reserve's idea to cut the fee banks can charge retailers for accepting debit cards. this is the so-called interchange fee that is collected from retailers by visa and mastercard and passed on to banks. both stocks were hit with stiff sell-offs today. visa fell almost 13%, down to a four-month low. mastercard dropped 10% to a three-month low. meantime, discover financial services, which runs a different type of card network, fell 3%. quarterly profits improved, but its loan balance fell, pushing down revenues. as you're checking your list twice, check out energizer holdings, the battery maker. shares saw a pop in price and volume-- a 6% rally on twice its average pace. back in october is when the stock was at its most recent 52- week high. on the merger front, one company is taking its name out of consideration for a buyout-- hair salon chain regis. shares fell 12%, back to just above where it was trading in august when the company started looking for strategic alternatives-- in other words, a buyer. one place there is more belief of a buyout is with clothing retailer aeropostale. "the new york post" reports it has hired an investment bank, and that management wants it to remain as a public company. shares jumped 8%. finally, some big rallies in the casino business, specifically those with operations in macao, china. one of the biggest operators in macao, melco crown, added 10%. las vegas sands was up 7%, and j.p. morgan upgraded wynn resorts pointing to strong momentum in macao. and that's tonight's "market focus." >> susie: american newspapers and magazines were hit hard during the recession, but they weren't the only ones. eight of japan's leading publishing firms were in the red for the latest fiscal year. and now, the rise of e-books is a threat for traditional publishers. but as lucy craft reports, that uncertainty is leading to some unusual survival strategies in japan. >> reporter: something strange is happening, down at the bookstore. the publishing world's biggest sensation is magazines that are not just words on paper, but are hefty bundles, with elaborate freebies stuffed between the covers. >> ( translated ): this magazine sold out in just one week. >> reporter: the giveaways aren't tiny free samples, but items like luxury-icon tote bags, pouches, or beauty accessories, as painstakingly designed as the magazine articles surrounding them. face rollers and fake-fur purses have made this publisher one of industry's rare profit stories. >> ( translated ): at our company, "publishing" means anything that goes through our distribution channel. that includes not just words on paper, but any contents our readers want. so freebies seem natural to us. >> reporter: freebie-loaded issues, which often sell upwards of a million copies each, have become a necessity for fashion magazines, and are showing up in other segments, like toys and travel. >> ( translated ): magazines used to be seen as culture, rather than commerce. but now, we treat magazines as products, with a distinct marketing strategy. that's why our sales have taken off. >> reporter: takarajima denies these tactics are a defense against electronic media, but the freebies have proven one of the most successful efforts yet to keep patrons coming back to brick-and-mortar stores. the digital book market in japan is vast and thriving. but it consists almost entirely of blog-style novels and comic books written especially for cell phones. japan's 15,000 bookstores are still bracing for the mainstream shift to digital publishing. meanwhile, a new and profitable breed of bookstore is drawing the young and hip, by becoming more akin to a fashion boutique. >> ( translated ): old or new, a good book is a good book, just like vintage jeans retain their value. that's why we'll shelf a new release right next to a work by truman capote. >> reporter: classics are mixed in with new releases, carefully curated with personalized messages to guide and entertain patrons suffering information overload. >> ( translated ): it's not enough to simply line up books on the shelf, but a lot of stores do. you might as well just go to amazon. >> reporter: leveraging an intimate knowledge of its customers' tastes, this new breed of bookstore increasingly is a platform for clothing, accessories, and other merchandise, which offer higher margins than books and magazines. for a growing number of publishers and distributors, just selling printed paper is a luxury they can no longer afford. lucy craft, "nightly business report," tokyo. >> tom: here's what we're watching for tomorrow: the conference board releases its index of leading indicators for november. and despite modest economic growth and inflation worries, our "market monitor" guest remains bullish on stocks as we head into the new year. he's duncan richardson, chief investment officer at eaton vance management. >> susie: the obama administration wants to do more to protect consumer privacy online. today, it recommended creating a privacy bill of rights, and an online policy office at the commerce department. the administration is calling on help from web companies and advertisers to establish guidelines on what kinds of consumer information can be collected online. so far, both industries have resisted legislation on these kinds of rules. >> tom: another plan rolled out by the administration deals with new ways to combat asian carp in the great lakes. federal and state agencies announced $47 million in projects to deal with the invasive fish. scientists fear the four-feet long fish will disrupt the food chain. separately, a federal judge today turned down a plea from five states to close shipping locks on chicago-area waterways to prevent the carp from entering the great lakes. those states may appeal. >> susie: president obama called on some of the nation's top c.e.o.s yesterday to start investing the trillions of dollars sitting in corporate coffers. tonight's commentator has been thinking about corporate america's big piggy bank. he's justin fox, editorial director at "the harvard business review." >> the economy is still weak, but corporations are minting money. this isn't quite the outrage that it seems-- corporate profits always surge in the early stages of a recovery. businesses cut back sharply on expenses during a recession, so as soon as the economy even begins to turn, profits jump. only later come hiring and spending, which put pressure on profits, but bring stronger economic growth. at least, we hope that's coming. there is, though, something curious, maybe even outrageous, about the current level of corporate profits. corporations and their shareholders are taking home a larger share of the nation's income, after taxes, than at almost any time on record. the only years when they did even better-- 1929, just before the great depression; and 2006, just before the great recession. these near-record profits are driven by financial firms, overseas operations, and lower corporate taxes. profits here at home, outside the financial sector, actually aren't all that high by historical standards. this corporate profit picture seems to mirror what's been happening to the income distribution for individuals. the money is going to a select group at the top of the economic food chain, who are able to reap the rewards of global growth, play the financial system, and avoid taxes. you can spin this in a positive way-- these are dynamic economic times, so rewards are flowing to the dynamic and the clever. but there are a lot of negative ways you can spin it, too. i'm justin fox. >> susie: and finally, what's in a name? for a man running for local office in aurora, illinois, a whole lot. issac wilson's name will appear on the ballot next year, but there were questions because of his unusual middle name-- "count de money". wilson says "count de money" really is his middle name. his birth certificate proves it; it's not a campaign stunt. and tom, if elected, wilson says he'd gladly serve on the finance committee and "count the money". >> tom: he's lucky his middle name isn't oscar otherwise his initials would be io double u. >> what were his parents thinking. >> susie: that's "nightly business report" for thursday, december 16. i'm susie gharib. good night, everyone, and good night to you, too, tom. >> tom: good night, susie. i'm tom hudson. good night, everyone. we hope to see all of you again tomorrow night. "nightly business report" is made possible by: this program was made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org test