How at googles parent alphabet. The company known for its Search Engine attracted advertisers to its products, especially its mobile products, and those ads attracted valuable clicks. Alphabet earned 8. 42 a share. That is a full 38 cents better than estimates and a 24 gain over last year. Revenues rose more than 20 to 21. 5 billion in the quarter eer. Investors liked the results sending shares higher in initial afterhours trading as you see right there. Josh lipton has the one key takeaway for investors. Josh . Reporter well, tyler, 15. 4 billion. That was one big number in this report, and first the revenue generated from google website was up about 25 . Neil doshey covers alphabet and says thats important because that includes some of the main sources of revenue for this company so google. Com, youtube, mobile apps. It just shows, he says, the strength that have ad business. Ill also point out, tyler, that heading into this print there was some concern about the impact of brexit on this business. Remember, Company Generates an estimated 10 of revenue from the uk, but i did have a chat with the company when the earnin, and they tell me they are seeing no impact from brexit. At least not yet. Back to you, tyler. Josh lipton in san francisco, thanks. Amazon also powered through estimates reporting its fifth straight quarterly profit. The worlds Biggest Online retailer saw strong growth in its Cloud Business and an increase in subscriptions for its prime program. The Company Earned 1. 78 a share. Estimates were for 1. 11. Revenue rose more than 30 and come in at more a than 30 billion last quarter. As for the stocks, shares rose in an initial afterhours trading. Jon fortt has more on the results. Reporter the one number to watch in this amazon report is just plain old sales. They were strong, up 31 from a year ago. They werent expected to be up quite that much, and it was owing to more than just selling stuff in the u. S. It was also due to cloud which performed a little bit better than expected, and international which was overall stronger than north america was as amazon continues to expand and its pushing cloud now in india, also doing prime over there and talking big about its plans for the future. For nightly bus im jon fortt. And we are, as we mentioned earlier, basically halfway through earnings reporting season, and some trends are emerging. Bob pisani takes a look. Heres the good news. So far guidance has not taken a hit from brexit. Companies have been reaffirming their full forecast and thats primarily whats holding the s p 500 up, just shy of historic high. Overall earnings are still down, but they are not deteriorating. Remember, we just had four straight quarters of negative earnings, an earnings recession, and a narrative has been calling for earnings to bottom in the first quarter, gradually improve and then turn positive in the second half. Year. So far the story has held up. And companies are not only beating, but they are also beating by a wider margin. This is key because its hard for the bulls to justify these record high stock prices with the profit levels staying so low. But beyond the good news theres four key issues that could hurt the earnings equation in the second half of the year. First off, theres oil. This is a problem. Its now trading at a threemonth low. This is a big part of the earnin story since analysts were counting on crude to rebound in the second half and they may now have to bring down their estimates to reflect 40 oil. Second, the dollar has been strong recently, and that could be a problem for multinationals. Finally, theres brexit in china and both have been quiet recently. For nightly business report, im bob pisani at the new york stock exchange. And on wall street today, earnings reports failed to give stocks a bump. The major indexes were mainly range bound as Falling Oil Prices once again pressured oil shares and capped any gains. The Dow Jones Industrial average fell 15 points to 18,415 and the nasdaq added 150 and the s p 500 was up 3. As for crude, prize settled at a threemonth low, and they are flirting with bear market territory meaning they are close to 20 below their 2016 high. With stocks meantime near record highs, many investors are asking one question, is the market getting too expensive . The answer never simple. Its not simple now. Mike santolli takes a look. The value. U. S. Stock market has never been higher. Does that mean stocks are very expensive, or do record low Interest Rates make them relatively cheap . Market valuation can be viewed from several angles, and right now some analysts make the case stocks are a bargain while others insist they are a bubble. By the most traditional conservative method, stocks do appear to be pricey. Measured against recently depressed corporate profits the s p 500 inx trades at the high end of its historical range. Wall street pros, of course, tend to focus on the projected earnings which are expected to begin growing again in the second half of the year. On this basis stocks are still more expensive than their longterm average, though not by much but dont todays extremely low Interest Rates promote higher valuations as most investors have been tout. Yes and no. Low rates certainly enable stocks to reach loftier valuations as interest costs fall and investors stretch for returns. Still, buying stocks at high values tends not to produce great longterm returns, no matter where Interest Rates are at the time of purchase. There is one way though that low bond yields are directly inflating stock values by driving investors into stocks that pay decent dividends. In fact, sectors favored by dividend investors, utilities, telecom, Consumer Staples and real estate, together have the highest valuations versus those companies earnings. All other sectors combined trade at more reasonable levels, assuming current expectations for a rebound in Earnings Growth of nearly 10 comes to pass over the next few quarters. Much has to go right for investors to enjoy s gains from todays record high stock prices but have bounced back in corporate profits and could indeed make some prices appear quite fair, even if there are no objection bargain. For nightly business report, im Mike Santolli at the new york stock exchange. The rise in wealth in asset prices are raising some concerns about the vulnerability of the u. S. Economy again. The wall street journal reports that as valuations of stocks and properties swell any sudden shift in sentiment in the Financial Markets could destabilized growth. An economics reporter at the journal wrote about this and joins us now to talk about it. Great to see you again, greg. Welcome back. Great to see you again. Thank you. As i understand reading your article, we dont know that things are overvalued. Its just that they are a little bit perhaps more susceptible to to some sort of disruption. Is tha a correct read of the article . Absolutely. I mean, theres a bit of deja vu here, especially for folks like you and me who have been covering the markets for quite a few years. We had a big runup in the stock market in oat 90s and that ended badly in a mild recession followed by a big runup in the Housing Market which ended much worse with the big financial crisis. I dont want to say either of those events is necessarily on the cards, but a prerequisite to have the sort of disruptions is the kind of asset values that were seeing tailed. Now, i would hasten to add that stocks are not as overvalued as they were as the nas bubble and houses are not as overvalued as they were during the housing bubble, but they are still very highly valued based on askumgss, especially of low Interest Rates persisting. Those assumptions change, then the values also ought to change than could be very dis does a c necessarily translate into a crack in the economy . In other words, to economic growth, and a rise in unemployment and so forth . Theres theres two ways that it can hurt the economy. The first is the most straightforward is what economists call the wells effect. When a persons home value goes down or when the stock portfolio goes down and they feel less wealthy and they t to spend less. We think the relationship is for every dollar yore wealth goes you spend four cents less that year and then theres a second effect. If the increase in assets has been financed by a lot of debt, as the asset prices fall, the debts go bad, mortgages go back an cant pay back the money and banks end up failing and then can you have a financial crisis. Thats kind of what we had in 2007 and 2008. You know, tyler, weve taken so many steps since that crisis to reinforce the system against a repeat that i dont think we have to necessarily worry simply t prices are as high as they like we would have a repeat and theres stuff hidden away not its effect may not be obvious until we see a downturn in these markets. Greg, great to see you again. Thanks for having me. One. Stocks weighing on the market today was ford. Shares dropped 8 after the automaker surprised investors with a drop in profits in the Second Quarter. It was well below estimates. The company also warning theres a risk that it wont hit its fullyear Earnings Guidance and as phil lebeau reports, that has investors wondering whether the great run for automakers is nearing an end. Reporter ford is tapping the brakes after recordsetting earnings in the first quarter. The automaker saw profits slow down between april and june, partially due to weaker sales in china where local automakers have become more aggressive. But fords bottom line was also hit by higher incentives in the u. S. Where the company spent more money to sell cars and trucks. The bottom line is that weve seen a tougher pricing environment this quarter and we will face one Going Forward and with the car segment the most impact as various competitors look to protect their share. This month fords insinchts are up more than 20 , according to truecar. Com, slightliade head of big three rival Fiat Chrysler and far higher than general motors. Just last week gm posted record profits and raised its outlook for the rest of this year. Proof gms strategy of limiting production and fleet sales in order to push higher retail sales and a greater profit per vehicle is paying off, but if ford is feeling pressure to raise incentives, will that eventually force gm, chrysler and other automakers to do the same . And could that kill one of the most profitable periods the Auto Industry has ever seen . Historically this industry has not been terribly disciplined when it gets really competitive and and inventories start to climb and incentives start to climb. I think this this will be a big test in terms of how much discipline do the various companies have . Automakers say they will stay disciplined when it comes to pricing, but historically this is an industry that has struggled to keep rebates and incentives in check, especially when demand slows down, and dealers are forced to spend more to lock in buyers. For nightly business report, im phil lebeau, chicago. And volkswagen has regained the title of Worlds Largest automaker in the first half of the year. Vw sold more than 5 million vehicles. Toyota sold slightly less. Volkswagens sales this year came despite the fallout from the diesel emissions scandal. Still ahead, americans used to dream of owning a home, but a new report shows that things are changi tonight Hillary Clinton will make history, becoming the first woman to september nomination for president from a Major Political party. Before she takes the stage, she will be introduced by her daughter, chelsea. John harwood is in philadelphia. John, how is the Convention Setting the table for her big speech tonight . Reporter well, tyler, everything builds towards the last night of the convention, and what democrats have done is, first of all, tried to disqualify donald trump, paint. Him as unfit to be president and, second, allow voters to see Hillary Clinton who has been in the public stage for 25 years works many voters say they dont like, they dont trust, give them a different view of her as a person. Bill clinton told stories about her, so did michelle obama, her values, her drive, her resilience, but now shes got to make that case. And how does she do that . What do we expect her to say tonight, especially following the very compelling speeches of last night . Reporter well, aides say shes going to knit together all of those themes. Shes going to explain who she has fought for, who she will fight for as president and what her objectives are. She needs to lay out a vision for her policy agenda. Thats been a little undefined so far. You know, as you point out, john, shes been on the public stage for a quarter century and most people do know her and most people who know her what they think of her. Can she change minds . Reporter its not easy, and somebody on whom voters have such a wealth of information, hard to move the needle. However, i was talking to pollsters this afternoon who were saying two things. First of all, she has had high numbers before, when she was played it, when she was seccing is, of course, those are less partisan roles, but it shows that there is some ope her potentially, and the second thing is that the stage of a political nomination acceptance stage like debates in the fall are of a different order of magnitude and as mike murphy, a republican strategist says when you perform on the business stages you can change numbers and change how people think about you. All right, john. Thank you very much. John harwood, his last night in philadelphia. Oracle inks a deal to buy Cloud Storage company netsuite. Oracle is paying 9. 3 billion for the company, cofound by oracles executive chairrr elli netsuites largest shareholder. They will pay 109 a share, a 19 premium over yesterdays closing price. Today netsuite almost got there, adding 18 to 108. 41. Oracle was up 26 cents to 41. 19. Profits falls for the fifth straight kwarlt at conoco phillips. The Energy Company missed estimates as low commodity prize continued to hurt its results. Conoco also lowered its Capital Spending plan for the year but did say it would lift its production guidance. Rose just a fraction to 40. 26. Gnc posted another lackluster quarter as sales and profit fell. The Nutritional Supplements company also said its ceo is out. It will suspend its stock buyback and pull its fullyear guidance. Shares lost a quarter of their value today, down 25 to 10. 28. And currency headwinds took a toll on sales at colgate palmolive. The maker of personal Care Products missed expectations and profits did rise which was better than expected and colgate expects sales to fall this year in the low to midsingle digits. Shares fell a tick to 73. 75. A rise in Consumer Spending lifted profit and revenue at mastercard, that top expectations sending shares higher. Mastercard finished up 2 to 96. 01. Harley davidson cut its shipment outlook for the year. Sales fell in the latest quarter but sales were good enough to top expectations and as a result Harley Davidson shairs rose to 51 even. Expelledia saw its quarterly profits fall but its results managed to top wall street targets. Revenue did rise but sharply missed estimates. The Online Travel company also said it is looking into filing an initial Public Offering for its booking side truvago. Shares fell and ended up the session at more than 1 , at 119. 27. Revenue and profit rose at the broadcast Television Network cbs. The better than expected results were lifted by licensing deals tied to the star trek movie and fees from affiliated stations. The company also raised its Quarterly Dividend to by 20 to 18 cents a share, and increased its Stock Buyback Program to 6 billion. Shares of cbs essentially flat after hours, though there was a little dip there. It ended the day up a fraction at 54. 21. To real estate where the u. S. Homeownership rate matched the lowest level ever recorded, and that was back in 1965 when the census first started tracking homeownership. Diana olick has our report. Reporter the average cost of a house in 1965 was about 14,000. Today its about 15 miles that, but the homeownership rate is the same. 62. 9 in q2of this year, just as it was in 1965. Thats down from 59. 2 the record high in 2004. Of course, a lot has changed in the last decade or so, not just anyone can get a mortgage, and the youngest home buying cohot, the millenials, are delaying the main drivers of homeownership, that is, marriage and parenthood. They are also paying high rents which makes it harder for them to save for the down payment and one more mathematical note. Household formation is growing but all on the rental side which makes the share of owner households summarily. For nightly business report, im diana oleynik washington. The high end of the Housing Market has been a bright spot until recently, but now that source of strength appears to be fading, and there may be new pressure coming from the Treasury Department. Robert frank has more. Reporter the government dragnet used to catch criminals who use real estate to launder money just got wired. The Treasury Department is expanding a Pilot Program launched in march that targeted wealthy buyers of real estate who used llcs and Shell Companies to hide their identity. The programs started in manhattan in miami, but is now expanding to include owl of the borougs of new york city, broward and palm beach counties in florida and in california los angeles, san diego and silicon valley. Bexar, texas, but includes san antonio will luce be included. Those who use an llc to buy or sell real estate under a certain value have to disclose the true owner of the llc and their source of income. Now this only pertains to those who pay all cash, so if you get a mortgage banks are already required to under know your client rules to find identity of the buyers. Now, the overseas wealthy have been increasingly turning to real estate to hide their fortunes. Real estate tends to be a good vehicle to launder money because its very vulnerable and there are no regulations in place, until now, so someone from russia or mexico or from advance la who wanted to buy Residential Real Estate could have done so without disclosing who that person is. The treasury says 25 of the transactions in the Pilot Program were suspicious. One person made a 16 million cash withdrawal from his bank account and another moved 7 million around several south american Shell Companies. This adds to growing concerns about dark money flowing in the luxury economy, including revelations in the Panama Papers about hidden real estate in the u. S. , and the big question is just how much impact these rules will have on the Luxury Real Estate market and the market as a whole. This regulation is going to impact u. S. Real estate in that it will be so much more difficult for illicit money to come into the u. S. Reporter with Financial Markets and election uncertainty already weighing on the Real Estate Market new treasury rules will give buyers and sellers one more reason to worry. For nightly business report, im robert frank. Coming up, ambitious plan. Can japans Prime Minister grow list economy by getting more women to work . P hess a look at what to watch tomorrow. We will get the first read on Second Quarter economic growth. Dow components chevron and exxon mobile report their quarterly results, and well also find out whether consumers are feeling more optimistic when the final july sentiment figure is released, and that, folks, is what to watch friday. Japans main stock index fell overnight ahead of an expected decision by the bank of japan. Some expect the central bank to team up with the government and announce more extreme stimulus measures. Prime minist shinzo abe has been trying to reflate his economy for years and part of that plan includes increasing the number of women managers in the workforce. Akiko fujita has that part of the story for us fro reporter from vines and twins in the ceiling to a rice paddy in the lobe, Employment Company persona doesnt resemble typical corporate japan and the ceo is no ordinary japanese boss. Translator when i was a student in colleges i saw how difficult it was for women to advance in society compared to men. Even if they got fulltime jobs, there would be a big disparity in pay. Reporter that convinced n ha mbu to start this company 40 years ago, to help women find quality jobs with equal pay. Today, women make up nearly half the management here, making the company a corporate model for Prime Minister shinzo abes womenomics policy, an ambitious plan to boost the number of female maine, by 30 in four years. Translator men alone can no longer help with growth given the labor shortage. Its time for women to take on leadership roles and for companies to change their structure to support them. Reporter where did you get the idea to start a business for mom . This woman runs a Consulting Firm that helps Companies Achieve the government targets. The idea inspired by her own from us tragsz as a mother forced to quit her job at his chi. Translator the biggest hurdle was getting my familys support. They didnt understand why i would continue working away from home even while being pregnant with twins. I felt like i was back at zero the day i quit. Reporter she wasnt alone. Sou says 60 of women here quit working after having their first child. For clients like primo japan where women make up nearly threequarters of the staff, the challenge is convincing those women to return. Translator a lot of women think once they become mothers they can only work parttime jobs. They cant put in the same amount of work as fulltime employees. I dont want them to give up reporter number of women in the workforce has increased under abe, according to goldman sachs. Women make up a record 66 of the workforce now, surpassing the u. S. , but more than half those women remain in parttime or temporary jobs. Back at persona the companies retain workers by offering flexible hours for workingmothers, building a preschool inhouse and even a nail salon to create a femalefriendly environment. Still, nambu admits superficial changes arent enough to shake up this traditionally maledominated the society. The key, he says, will be changing the mindset of men and getting them to accept the contributions women can truly make in the workforce. For nightly business report, im akiko fujita in tokyo. Well keep you posted on how that goes, right . Got a demographic as the population ages. Absolutely. One of the reasons why they need more workingage women in the workforce. Is thats right. That does it for us tonight on enbrompt im sue herera. Thanks for joining us. And im tyler mathisen. Thanks from me as well. Have a great evening, everything, and well see y man its like holy mother of comfort food. Ion. Kastner throw it down. Its noodle crack. Patel you have to be ready for the heart attack on a platter. Crowell okay, im the bacon guy. Man oh, i just did a jig every time i dipped into it. Man 2 it just completely blew my mind. Woman it felt like i had a mouthful of raw vegetables and dry dough. Sbrocco oh, please. I want the Dessert First [ laughs ] i told him he had to wait
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