Koreas foreign minister says hess country has the right to shoot down strategic u. S. Bombers even if theyre not in north korean air spas. Stocks dropped sharply. The major indexes did recover some of those. The Dow Jones Industrial averag dropped 53 points to 22,296. The nasdaq was off 56, and the s p 500 was down five. Well, north korea got a lot of investor attention, so did something else. Bob pisani explains. Tensions are on the rise once again after a war of words between President Donald Trump and north Korean Leader kim jongun escalated today. North koreas foreign minister said trump has effectively declared war on the rogue nation, and that north korea now, quote, has every right to take countermeasures, including the right to shoot down u. S. Bombers even if theyre not in north korean airspace. Weve had hear similar exchange of threats now, the markets have mostly shrugged them off up until now. The gold was up. Bond yields dipped to lows, lifting real estate, defensive nails, and the vix rose to the highest level in two weeks. So its still low, around 11. Despite these moves, the bigger story lately has rotation. Theres been plenty of sector rotation in september. We saw it again today. Just take some of the dow leaders and lag guards. Chevron and exxon, who have been under pressure all year. Meanwhile, apple and unitedhealth, two of the years best performen dow components are down more than 4 . Apple is down 8 . Tech stocks are slumping today. Facebook, nvidia, as investors are taking profits off the table. Bob pisani, new york stock exchange. Tax reform as weve been reporting is another issue important to the market. This week republicans plan to outline their tax reform plan, offering the first concrete details of a proposal they hope will accelerate the economy. Congressman kevin brady says the plan will offer specifics. Were going to see details around a broader range of the simplified tax plan for families, where nine out of ten americans will be able to use a simple postcardstyle system to file their taxes and lowest rates on businesses in modern history. Ylan mui is here is here with us. Good to see yo do we knew about so far . The formal plan will be unveil on but im told to expect a 20 Corporate Tax rate as well as a 25 rate on socalled passthrough businesses, many of which are small businesses. One point that seems to be under contention, though, is what the top rate for individuals will be. The white house im told has been pushing to lower that top rate to 35 , but there is some concern that that could be seen as violating the president s pledge to focus any tax cuts on the middle class rather than on the wealthy. Speaking of tax cuts, do bev any idea how they plan to pay for tax cuts . That is literally the trillion dollar question, sue. So what representative brady has said is that they are seeking as much permanence as possibility. Thats important, because in order to ensure that tax cuts last beyond ten years, they have to find a way to pay for those tax cuts. Its likely that some of the provisions might be temporary in order to ensure that the numbers can work. You know, the republicans have really been struggling to unite around health care. Is it looking better for tax reform . Theyre taking a very different approach when it comes to tax reform. The ways and means committee, the taxwriting committee has been having a twoday retreat. The broad ever conference of how republicans will be meeting on wednesday in or to talk about this, and the president is making a speech on wednesday in indiana, so theyre doing a lot more to lay the groundwork for those discussions and to get everyone on board. We will see if it makes a difference. We will see, thank you, ylan. And a hearing on the Graham Cassidy bill was disrupted while the demonstrators were taken out of room after chairman orrin hatch repeatedly called for order. When the hearing went under pay Lindsey Graham testified, as did democratic senator masi hirono, who was recently diagnosed with stage 4 kidney cancer. My goal is to get money closer to where people live so they have a voice about the moe important thing in their life. Health care is a right. It is a right. Its not a privilege reserved for those who can afford it, but Graham Cassidy treats Health Care Like a commodity that can be bought and sold. Revisions were made to the bill over the weekend adding billions of extra dollars for some states and easing coverage requirements to win over wavering glop senators. While investors are hoping for a a burst of economic growth, but according to a new survey for business economics, most economists arent so sure. Steve liesman as the details. Were bringing it from 1 up to 4 . I think ked can go higher. I think you can go to 5 or 6 . Reporter that was candidate trump extolling the benefits of his proposed policy, but eight months into his economy, many economists dont think thats the case. Growth this year and next could be just 2. 3 . Far short of candidate and president trumps estimates. The total effect of fiscal policies, economists say they add just 0. 25 to growth. If we get a tax reform thats revenue neutral, doesnt add significantly to budget deficits and does lower Corporate Tax rates, then over the next ten years, yeah, roughly at most as quarter point even conservative economists dont see much up side. If you look at the economic, you can get to the upper bound over the long term. Its rare that something as pure as those things gets through a congress by the nature of the political process, so you start scaling back from there. Much depends on how much tax cuts boost deficits. They could end up raising Interest Rates or strengthening the glare if theyre not offset. But definite at this timeneutral tax cuts would get higher marks from economists, bud theyre unlikely to mark those up as high as 3 . For nightly Business Report, im steve liesman. The president of the new york fed says weak inflation wont last. That could lead to further Interest Rate hikes. Bill dudley is the first among fed officials for speak publicly since the decision last week to hold rates steady at least for now. Mr. Dudley believes that inflation will rise and stabilize a round of the central bangs target of around 2 over the medium term, and if it rices Mortgage Rates could follow potential reversing the rates that home buyers have enjoyed. Lower rates with stiff competition have help fueled high prices for homes. But there may be a limit to how much prices can go up. Diana olick explains why. Theres so much demand for housing, so few homes for sale, and rockbottom Mortgage Rates are only addic to the inflation, but all those factors are facing something more fundamental. Some people just cant pay that much for a house. Firsttime buyers are being priced out of the market and their share has fallen from traditional rates. We havent seen any real inventory increases in starter homes. What inventory we do see come on the market is generall above 200,000, 250,000 price point, so its an expensive market. Reporter National Price gains month to month have been coming down. In july, which was the latest read on home prices, the game compared to a year ago stabilized at 6. 2 . That annual price gain had been accelerating in every other metropolitan this year, according to black knights financial services. Historically home price versus always lagged sales, and sales have been falling for the last several months. What we saw earlier in th year is that the market was transacting about nine days faster than last year, now its down to five days, so we are seeing a narrowing of that sellers advantage. Reporter while prices are not falling, the gains are cooling, and the Competition Among buyers is starting to ease. Here in the washington, d. C. Area, where home prices had been hitting new peaks for a year, theyre not falling, down over 5 in july compared to a year ago. Realtors in this d. C. Neighborhood say theyre surprised to see the lack of a postlabor day bump. Usually both buyers and sellers get more active, but even the less pricey homes are now sitting longer for nightly Business Report, im diana olick in washington. Still ahead, this Holiday Season means shopping, and for some target workers, a big other a cyberattack at one of the big four Accounting Firms may have revealed confidential client information. Deloitte believes the hackers may have gained access through its email server. The company contacted authorities immediately after it discovered the attack and said it notified each of the very few clients impacted. A Global Investor group is calling for an independent investigation into a cyberbreach at the s. E. C. The investment compute institute our ici is also urging the regulator to delay the submission of new monthly performance data rules until it can assure investors that its systems are secure. The ici represents more thansh who told more than 20 trillion in assets. The s. E. C. Chairman believes the software fix has been successful. Target is raising the minimum hourly rage to 11 from a current rate of 10 and vows to push it even higher as the retail looks to retain and attract workers. Courtney reagan has mo. Reporter target giving its employees an early holiday gift, a raise. The big box retailer is bumping the minimum wage to 11 in october with plans to pay 15 by the end of 2020. That means all 100,000 seasonal holiday employees will start at a higher wage. Its the third time in three years that target has raised wages, it puts target above the minimum wage in 48 states, matching washington and massachusetts rates, well above the federal minimum wage of 7. 25. This is extremely good for the customer and extremely good for retailers, because it feels like they have finally gotten the message it is time to reinvest in the frontline Sales Associates. Even in an omnichina world, the frontline Sales Associate is a very important position for retailers, and i think target recognized that. Reporter target hinted at invests in its team as part of the threeyear 7 billion plan to improve its entire experience from the store to the website. The move has likely been in the plans for some time, as the big box retailer still plans to hit its profit forecast even with the higher cost of labor. But target is far from the first to announce pay raises for hourly employees. Last year walmart began a nearly 3 billion twoyear plan to bump up hourly play for its workers. New employees start at 9, then bump up to 10 after trainings, plus annual raises. Walmarts pay gets a lot of attention, but gap was the first major retailer to raise its minimum wage for store associates. At gap, old navy and banana republic. Its hard to know exactly how higher wages help increase sales for retailers, but some experts point to walmarts higher wages and its subsequent higher sales as no coincidence, suggesting happier employees are more helpful to both customers and their companies. While there are many retailers struggling, the number of store openings still outweighs those shutting. Couple that with low unemployment and high turnover, its a challenging environment to and hold on to good workers. Targets hopes to hit a bullseyes with its employees and eventually lead to happier shoppers, too. For nightly Business Report im a corti reagan. Last week we told you that t mobile and sprint were reportedly in active merger talks. Today bloom better set sprint shareholders shouldnt expect a big premium if the companies entered into a stock for stock deal. The report said sprints largest shareholder, softbank would agree to a deal that valuing the company at current market prices. Sprint shares fell. The fda has rejected Johnson JohnsonsRheumatoid Arthritis drug saying it needs more information. J j says it plans to work with that agency to win approval. Johnson johnson shares felt to 131. 17. Allergan said its launching a Share Buyback and said the chief Financial Officer would retired. Le rose. Outfront media says it was recommended to be awarded a new contract with the new york metropolitan transportation authority, the largest Public Transit authority in the u. S. The Advertising Company currently holds 9 licenses for ads in the mtas network of subways, railwayings and buses. The new deal would be for another ten years. The shares popped. After the bell, asenna posted a stronger profit. The Parent Company of ann taylor and dress barn did report a drop in samestore sales, but shares of the small cap unusually took off, and in after hours they ended a fraction to 2. 17. Preliminary ratings for sundays nfl games were down from the previous year. Thats true for nbcs prime tiism game as well as foxs afternoon matchup. But on cbs ratings were up from last years week 3 coverage. Football ratings have been in decline well before yesterdays for the value of most is not football franchises. Theyve been rising. Robert frank explains. A. Reporter televisio ratings for the nfl may be falling slightly, but the value of nfl teams continues to soar. Driven by growing number of rich corporate sponsorship deals. The 32 nfl teams you now worth a combined 100 billion, up 8 from last year, and the top ten teams are up even more. According to the forbes list, the Dallas Cowboys remain the most valuable team in americans sports worth 48 billion. Owner jerry jones creative deal making of selling tickets and sponsorships at the practice facility generated total profits of 350 million last year. The new England Patriots ranked second, now worth 3. 7 billion with the Merchandise Sales up 50 after the big super bowl comeback last year. The nfl teams maid 7. 5 billion from media and tv deals last year, about half the leagues revenue, and news platforms like amazon and verizon could add even more in the coming year. But stadiums remain the big cash cows, Miami Dolphins got a 250 naming rights deal with the hard rock u. And the falcons sayers their deal jump, after secures sponsorship for the new mercedesbenz stadium. All that explains why the team owners are billionaires. For nightly Business Report, im robert frank. Dean crutchfield joins us more about the sponsorships and he is a brand expert with his own firm. Nice to see you again, dean. Welcome back. Thanks for having me. The nfl has frequently found itself call the in the middle, whether its social issues or other issues. This latest weekend event no exception to that, but if you are a sponsor, say a nike or, you know an anheuserbusch how do you walk the line between the controversy and your customers its a great question. I think we have to we live in Interesting Times is one statement, but i think the other is we are living in a highly politicized culture, and for a lot of market deers, they dont want the brand so its a big issue on how to handle themselves. The most important thing is theres no study that shows a political stance as to brand growth. If anything it can have a negative impact, so theres no proof of that, bud most importantly no brand should be getting involved in politics. Theyre not politicians. They dont no operate on a divideandconger strategy. 24e6 built success by building common ground. You say they need a Crisis Management approach, prepare for the worst and hope for the best. Absolutely. What more can you say . Think need a great plan, need to be thinking fast right now, a clear purpose in terms of what their response will be, and they need to be bold when they do it. Thats pretty much the nuts and bolts of Crisis Management. They just need to be able to work that out. Does it matter what the crisis is . No, crisis is the same thing. You have to handle the expectations. You have to have a team in infrastructure in place for when the crisis hits. You have to put together a purposedriven plan that talks about you as a business as your brand, your purpose, not about the political climate. Then of course it needs to be bold. I think some stamtsds were made today from nike talking about the freedom of expression of the sports players in the game. So those statements are already coming out. Dean, are you surprised that we havent seen a more collaborative effort from some of these sponsors . They all sponsor, you know, pretty much the same types of events, sporting events, whether youre talking football or baseball, whether youre talking soccer, european football, im kind of surprised there isnt a more united front from them. I agree with you. Obviously there are some that wouldnt do thats correct of course with the cokes and pepsis of the world. This would not be collusion, just people of big brands having a discussion whether its the chief executive officer or the head of marketing, having a wholesome conversation about the situation and what, you know, what advice, what plans have others got in terms of their response to it. So im very surprised that that hasnt happened, but maybe you might find behind closed doors conversations have happened. On that note, dean, always a pleasure. Thank you. Dean crutchfeld. Coming up google and facebook tighten their grip on the digital ad market, but it comes as scrutiny with those companies intens s ubers ceo issued an apology to londoners today. He wrote while uber has revolutionized the way people have moved, on behalf of everyone at uber globally, i apologize for the mistakes. Londons transport authority said it would know rye new the license when it expires atd of. Uber says it plans to challe decision. Disney a planning to pull programming from the fourth largest cable provider. They are working on a new contract to replace the old one that expires. Altice says that disney is askin