And a recovery in oil prices. In fact, stocks tied to commodities rallied across the globe, and todays rally puts the s p 500 back in the green by a smidge for the year. One marketwatcher said he thinks this is the longawaited, somewhat traditional santa claus rally and that stocks were due for a bounce. By the close, the Dow Jones Industrial average rose 185 points to 17,602. The nasdaq added 44, and the s p gained 25. Oil prices recovered, ending sharply higher after an unexpected decline in crude inventories in the u. S. Opec also issued an outlook for prices, saying they were set to rise, though slowly. Domestic crude settled nearly 4 higher at 37. 50. The gains werent limited to the energy sector. Mining stocks also rallied, this on a report that china will cut its steel surplus, something thats kept prices at a decade low. If the country cuts back on production, analysts say chinas steel glut may begin to moderate in the new year. That supported a number of wellknown mining stocks, including freeportmcmoran, reno tinto, bhp bill pin and alcoa. Meanwhile, chinas Central Government said it will cut the amount of electricity generated by coalfired plants. Coal supplies roughly 75 of chinas power generation, and the governments decision could add more stress to the struggling coal industry there. Eunice yoon has more from china. Reporter mined as black gold, coal has been the lifeblood of the countrys growth. Now its industry faces an uncertain future and trucker li onping is feeling the pain. Here in shong she province, they used to earn 330 a month transporting coal, today only half that. Trucks are idled, partly because of chinas economic slowdown and for another reason. A lot of coal mines have shut down because of the Environmental Protection regulations, he says. Some other coalrelated businesses have also closed because they failed to meet the governments emission standards. At the Climate Change meeting in paris, president xi jinping reiterated his vow to rein in chinas Carbon Emissions to peak by 2030. As part of that pledge, beijing is trying to wean itself off of coal, the fuel blamed most for emissions and pollutants. Currently, china is the biggest consumer and producer of the fossil fuel. Its also the biggest emitter of greenhouse gases. China still relies very heavily on coal to power its economy, so the government here has pledged to upgrade its coalfired plants nationwide to reduce pollution by 60 by 2020. It also is embracing clean energy. Its investing big in wind, solar and nuclear technologies. Still, critics point to beijings days of hazardous smog this week as evidence that chinas addiction to coal will be hard to quit. Its a cheap and plentiful source of energy difficult to resist, they say, for a government attempting to keep the economy from falling further. Even so, trucker li is concerned about his own prospects in the industry. Living expenses are rising and i have a whole family to take care of, he says. Im thinking of going abroad to find a job as a day laborer, away from chinas coal country and its clouded future. For nightly Business Report, im eunice yoon. To the u. S. Economy and the housing market. Sales of newly built homes rose in november. The Commerce Department reports a 4. 3 gain in new home sales from the prior month, but that was less than expected. October was also revised sharply lower. Purchases of new homes have been especially uneven in recent months in the northeast and the midwest. Meantime, Mortgage Applications rose more than 7 less week, according to the Mortgage Bankers association. Refinanced applications increased 11 . The Federal Reserves Interest Rate hike probably prompted borrowers to get off the fence and act. Consumers are more optimistic about the economy. The university of michigans Consumer Sentiment index rose to its highest level since july. The gain is being attributed to lower inflation and energy prices, which bolstered real income. Orders for durable or longlasting goods flatlined in november, but that flat reading was better than the decline wall street was looking for. A key measure of Business Investment also fell in the latest sign of weak demand in the u. S. Manufacturing sector. Durable goods includes things like refrigerators, toaster ovens, washing machines, aircraft and other ill take the aircraft and other goods designed to last at least three years. Not only was the stock market hot today, but so was the temperature outside, especially on the east coast. And as Steve Liesman reports, its not just people that are adjusting to the holiday heat wave, but the economy is as well. Reporter its hard to believe the brutal blizzards and bitter cold of last winter which ground the u. S. Economy to a frozen halt have given way this christmas to recordhigh temperatures. But the bizarre balminess, with 19 states about to shatter 100yearold records, is also playing havoc with the economy, creating weather winners and weather losers. Among the hardest hit, the Department Stores and retailers who stocked all that winter clothing that no one wants. Is that a problem . Absolutely, that is hurting sales. Its causing inventories to be too high. Theres lots of issues selling outerwear and scarves and mittens and gloves and sweaters and all the things we normally get rid of this time of year. Big deal. Reporter the irony is that the good weather inclines people to go out and shop, so they could end up at the car dealer, where kicking tires is easier when the weathers warmer. Another winner, outdoor recreation, finding people biking, running and even going to the beach in december. Of course, its sent more people wielding 9 irons rather than snow shovels. Were seeing the business boom in terms of the last really six weeks of the year and whats been just absolutely crazy is whats happening in the northeast and all the way, really, over into chicago right now. Reporter long island fishing guide John Mcmurray has booked ten extra client days to pursue fish migrating off new york shores, including this atlantic bluefin he caught last week. Those gains mean deep losses for the ski resorts in the northeast, where lifts sit idle atop Green Mountains instead of white with snow. The deepest red is over the northeastern ski resorts. In fact, during the middle of december, the entire nation east of the mississippi, where 60 of the population lives, had temperatures from 2 to 20 degrees above normal. Good snow out west and lousy snow in the east has helped power bookings at vail resorts, where season pass sales are up 13 . Another industry that could benefit, homebuilding. It shuts down in some parts of the country during the coldest winter months. Warmer weather lets homebuilders pour concrete a little longer, if they can find the workers. Winter is just beginning, and it could exact a cruel and cold price for decembers warmth. Temperatures for many parts of the nation are forecast to be below average in january and february, so retailers may yet get a chance to sell those hats and gloves, though they wish they had bikes and bikinis on the shelves until then. For nightly Business Report, im Steve Liesman. The weather is also an unknown for shipping companies trying to deliver your gifts in time for the holidays. Morgan brennan now with a look at the lastminute push to get all those boxes where they need to be. Reporter despite some Service Issues earlier in the month due to largerthanexpected volume spikes around cyber monday, shipping experts say u. P. S. And fedex are on track for their best peak season performance in several years. Ship matrix estimates over 60 million packages will be delivered on Christmas Eve with just a few thousand missing that window, a big difference from the nearly 2. 5 million delayed in 2013. Ontime Service Performances has steadily increased coming into christmas. Last week, fedex was at 97. 2 for all its services, u. P. S. Was at 96. 9 , and based upon what we see for the first two, three days of this week, with the weather being very cooperative, they are both at 98 , 99 for their services. Reporter perhaps this seasons biggest winner, the u. S. Postal service, which according to ship matrix, has had the best performances with package volumes up 15 so far this holiday season, better than the uspss 10. 5 forecast last month. But all of this is not without hiccups. Startup jet. Com, which competes with amazon and costco, has been warning that it can no longer confidently guarantee delivery of certain items by christmas. And eddie bauers Customer Service line is playing a message that says the retailer has been informed by fedex that there are some issues. They are behind in processing packages into their system throughout the country. Please allow a few more days for your order tracking information to be updated. Your order will be delivered as quickly as possible. Reporter eddie bauer isnt commenting, but fedex says its network is performing as designed for forecasted volumes for major customers and that operations are running around the clock to handle any additional unforeseen demand. Chris weatherbee, a transportation analyst, says overall, fedex and u. P. S. Seem to be more assertively dictating the terms of service this time around. But as the hours count down to christmas, there are still two factors that could derail outstanding package deliveries. The first, if retailers take extra time to hand it off to the carriers, and the second, a sudden weather change in certain parts of the country, something that could become an issue as severe storms now sweep across the south. For nightly Business Report, im morgan brennan. Still ahead, will the worstperforming dow stock this year see its fortunes reversed in the next . The dogs of the dow, its a classic Investment Strategy that involves buying highyielding stocks in the blue chip index. Sometimes it works, other times it doesnt. Dominic chu tells us how the dogs of the dow in 2015 performed and identifies the new ones to watch out for in the new year. Reporter its getting close to the end of the year, and that means its the time when many incomefocused investors start to look at big dividendpaying stocks in the Dow Jones Industrial average. Now, the strategy is known as the dogs of the dow, and its fairly simple. At the end of each year, you select the ten dow stocks that have the highest dividend yield, invest an equal dollar amount in each of the stocks, hold them for a year, and then do the same thing again next year. The idea is to invest in some of the more valueoriented, largecap, blue chip stocks in the market and to try to capitalize on not just potential stock price gains but also a Dividend Payment as well. Now, according to analysts at the spoke investment group, the use of this strategy has tended to do better than the average performance of the dow itself. Between 2001 and 2014, the average total return of the dog strategy has been a gain of nearly 9 per year. Compare that to an 8 gain for the dow. Now, that same trend is playing out this year as well. The current dogs of the dow include verizon, chevron, ge, mcdonalds, pfizer, merck, caterpillar, exxonmobil, cocacola and proctor and gamble. Mcdonalds and General Electric have been two of the dows best performers this year. Meanwhile, ibm and walmart have lagged behind. So, as of now, next years dogs would kick out the ge, mcdonalds and coke shares and add sysco, ibm and walmart. Investors who use the strategy will be looking to see if some of the dogs can reverse this years losses. For nightly Business Report, im dominic chu. Well, as dominic just reported, walmart will be one of the dogs of the dow for 2016. It is also, by the way, the worstperforming stock in the blue chip index so far this year, down about 29 , as you see there. So, whats ahead for the bigbox chain . Tom lee is founder and head of his own research fund, fundstrat global advisers. Good to see you. Would you buy walmart at todays values, and how long do you expect you might need to wait to get paid if you would buy it . Yes, i would definitely buy walmart today, because one, you know, its an iconic company. I think in two years, the stock could easily rise 50 , and thats just having its pe go from 13 times to the retailers average of 18 times. You might ask, well, if youre talking two years, why would you buy the stock today . I think a couple reasons. One is, you know, its paying a great dividend yield. Thats why its a dogs of the dow. Its dividend yield is 3. 2 . Thats well above how much its bonds are paying. So, if youre looking for income, youre way off better buying the stock than the bond. And the other is, the pe could actually go up next year because the pes really based on earnings revision. And the cycle of negative earnings revisions is slowing, so theres a chance for the pe to go up next year before you start to get the earnings recovery in 20172018. I want to talk to you, tom, about some of the stock dividend yields that youre pointing out are so strong right now, even perhaps stocks becoming the new bonds, better than longterm bond yields. You say there are about 130 companies in the s p 500 where this is the case . What are some of your favorites right now going into 2016 . Yeah, well, its so funny, because i just listened to dominic talk about some of the dogs of the dow, and these are exactly the same companies. It turns out, stocks have gotten so cheap that their dividends are worth a lot more than the bond yields that theyre paying, and its the same company. It just doesnt make sense. You have to go back to like 1959 to see this. So, were at something that hasnt been seen for 40 years. Ciscos another example, caterpillar, ge, and you know, walmart. And you know, whats amazing is these are aaa like, ciscos a aaarated company. Walmarts aarated. These are rocksolid companies that are borrowing money ten years out at 2. 5 or 2. 6 , and yet, their dividend yield is over 3 . It doesnt really make sense. Its a little hard for a lot of investors to invest in a company where you dont expect Earnings Growth until 2018. Tell them i mean, you get paid to do it with the dividend yield. Right. Thats one nice part of it. Yeah. But tell them why they need to be patient. Well, its a good question. I mean, the reason earnings arent growing is, you know, walmarts investing in that omni channel, like going online, so they have a lot of businesses growing. Like, you know, if you listen to walmarts earnings, they have quite a number of categories that are growing, and walmart, remember, is a 300 billion business, so its tough to get the whole thing growing, but at a 13 pe, you have to ask yourself, you know, is it can you be patient . All right. Merry christmas, tom. Yeah, thanks. All right. Tom lees with fundstrat global advisers. Well, tyler, weve been keeping an eye on cellgene after it settled a patent dispute. Thats where we begin market focus. They reached an agreement over its flagship cancer drug with generic drugmaker natco pharma. Shares of cellgene rose nearly 10 today to 122. 07. Norfolk southern spurns another takeover bid from rival Canadian Pacific. The railroad said regulators will likely reject the merger. Canadian pacific says its disappointed with norfolks decision and will review strategic alternatives. Shares of Norfolk Southern up just shy of 1 to 86. 89. Meanwhile, shares of Canadian Pacific closed up to 128. 50. An activist investor carl icahn says he is willing to pay around 1 billion for pep boys. According to a filing, icahn is willing to pay 10 cents more per share than japans bridgestone. Bridgestone has until tomorrow evening to respond. Shares of pep boys jumping 3 today to 17. 40. The regional cable operator cablevision facing scrutiny from state and city regulators over its deal to sell to french conglomerate altisse. New york state and new york city are concerned the deal would negatively impact consumers. Shares of cablevision closing down 0. 75 to 31. 54. Investors getting their first chance today to react to a late warning yesterday from bed bath beyond. The retailer revising its thirdquarter guidance and said its fourthquarter sales will be lighter than expected. The company has seen a decrease in instore transactions as online sales rise. Shares of the retailer fell 4. 5 to 48. 97. And hyatt hotels was the target of a malware attack. The company says that as soon as it discovered the suspicious activity on its Payment Processing system, it launched an investigation, which is still ongoing. Hyatt says it has strengthened the security of its system and has notified customers. Shares of hyatt up nearly 3 on the day to 49. 36. A warning from the Inspector General for the Federal Reserve. Cording to a summary of the report, a key database at the central bank needs better Cyber Security protections and is vulnerable to being hacked. The Central Bank Holds Sensitive Information on the nations financial system. Eamon javers has been following the story from washington, and eamon, the Federal Reserve has been hacked before, but how much danger do you think there is that the fed could be hacked again . Reporter well, this is clearly a warning shot here from the Inspector General, saying that they have done some things over at the Federal Reserve to tighten up Cyber Security, but they havent done enough when it comes to this one particular Computer System called the star system. They say thats the system that processes a lot of incoming data and helps the fed actually write reports and release some of the monthly data that it puts out to the broader public to make investing decisions and all of the things that we do with that fed data. So, the question is, could a hacker get into that data, manipulate it somehow and cause some adverse outcome here for markets, for investors, or somehow profit from that . Thats something that Cyber Security experts i talked to said is actually a possibility and theyre seeing more and more sophisticated Cyber Security attacks where you have an attacker actually go in, manipulate the data, change the outcome of the data, rather than stealing it at wholesale and going out and trying to sell it like we saw in some of the earlyon cyber attacks. Now its getting a little more sophisticated and thats the cause for concern. The Inspector General only released a summary of the report, not the whole thing. Why . Reporter well, they dont want to give a road map to the bad guys, put out the details of the areas they found weaknesses in the system. They said they found six specific things they wanted tightened up and gave the recommendations to the fed. I asked the fed and they said theyve accepted the recommendations and will move on them as quickly as they can. So, clearly, there is a concern here. The fed is patching it up. But in the meantime, they dont want the bad guys to know where the weak spots are. Makes sense. Eamon javers, thank you, in washington. Reporter you bet. Coming up, what some startups are doing to tackle the big problem of sportsrelated concussions. Heres a look at what to watch tomorrow. The stock market will close early for the Christmas Eve holiday. Trading ends at 1 00 p. M. Eastern. Initial jobless claims will be released before the opening bell. And tomorrow is crunch time for lastminute shoppers. Thats whats on watch for thursday. Lastminute . Im just getting started, man the largest 100 u. S. Pension systems dropped about 5 in the years Third Quarter to 3. 2 trillion, according to the census bureau. Portfolios suffered as the market swooned in august and september. Safety regulators said theyve identified an eighth person who was killed because of a takata airbag. The national Highway Traffic Safety Administration also said it was expanding the recall of u. S. Vehicles with those defective airbags, and the agencys appointing an independent monitor to oversee compliance with the government recall. Laterweek, sony releases the movie concussion, raising awareness about the injury often associated with football. And a number of companies are working to reduce and even perhaps prevent concussions altogether. Reporter for the 1 billion settlement earlier this year with more than 20,000 former nfl players over concussions and more than 150 in the league so far this year alone, its safe to say head trauma is a major issue for the 12 billion football business. But the nfl is turning to crowdsourcing in an attempt to find the next big thing in safety and prevention of traumatic brain injury. As part of a partnership with ge and under armour, the nfl has invested more than 65 million over four years, awarding entrepreneurs cash to bring their ideas to market. Theyve received 500 entries from 19 countries and have narrowed it down to three winners for the head health challenge. Innovators like Army Research lab in adelphi, maryland, are using tethers to resist violent head motions in players before they hit the ground. Weve shown a reduction in the accelerations or the forces experienced inside the head during this backfall event. Weve reduced those forces and accelerations by half. And so, that results in a far lower likelihood of head injury, brain injury. Reporter for others like viconic, based in dearborn, michigan, the focus is instead on the turf. Theyre aiming to create safer playing fields, adding a thermal plastic urethane layer to the impact. This goes underneath the tuferz. Its a technology weve been developing. It started in automotive. The product is used on about 65 of the vehicles for head impact protection, and were taking that technology and were applying it to, certainly, Synthetic Turf and sports underlamts as well as the military for impact protection and blast protection for our soldiers and fighters. So, were taking the same technology that was successful in automotive and then applying that to sports and the military. Reporter and quanterics, based in boston, is working to take the guess work out of concussions. The nflbacked company has created the first ever blood test that can provide Early Detection moments after a hit. Quanterics has raised 44 million in funding and has an ipo on the horizon for 2016. Theyre working on portable Detection Kits that will be on the sidelines by 2017. The hope from the nfl and its partners is that through collaboration with these companies, they can help bring products and solutions to market more quickly and make the game safer sooner. For nightly Business Report, im kate rogers. And earlier this week, the National Institutes of health issued a sevenyear grant totaling about 16 million to researchers at several universities to study brain disease in former football players. And finally tonight, its going to be a very Merry Christmas for beatles fans. Starting Christmas Eve, 224 songs from the fab four will be added to nine streaming services, including spotify, apple music and amazon prime. The beatles catalog will not be exclusive to paying subscribers, it will be available to users who listen for free. And before we go tonight, others another look at the rally on wall street. It was another nice day, the Dow Jones Industrial average up to 17,602, nasdaq added 44 and the s p 500 was higher 23w56by 25. Gains driven by a rise in energy prices, domestic crude up about 4 on the day. Thats nightly Business Report for tonight. Im sharon epperson. Thanks so much for watching. And thanks from me as well. Have a great Christmas Eve eve, everyone. Well see you tomorrow. Announcemajor funding for quest is provided by. Sethi without water, life as we know it wouldnt exist. Our earths oceans, lakes, and rivers arent only cradles of biodiversity. They also play an essential role in regulating our climate, creating the oxygen we breathe, and quenching the thirst of our growing population. But the health of our waters is declining worldwide, and human activities are to blame
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