Disney with a drop in revenue. Investors looking at whats working and whats not at the house of the mouse. And deep divide. Why nevadas love hate relationship with its biggest land owner could have changes with the Trump Administration. Good evening. Welcome. The nasdaq cranked out a record close. The other two major indexes are within reach and many are optimistic. That stocks could head even higher if Earnings Growth is sustained and if the white house pushes through tax cuts and other stimulus. Today Dow Jones Industrial average rose to 2790. Is the s p 500 eeked out a gain as well. The rise in stocks has one Influential Hedge Fund manager concerned. The New York Times reports that he has described the margaret as having perilously high valuations. In a letter to investors, he wrote that exuberant investors have focused on the potential benefits of stimulus tax cuts white mostly ignoring America First protectionism and the erection of new trade barriers. So is the market overvalued and what should you do . Matt joins us. Welcome back. Nice to have you here. Thanks for having me. I guess that is the question. Do you feel that equity prices and valuations basically are too elevated . Well, they are certainly getting high. You look at the p. E. Ratio is 21 times earnings. Thats a concern. The cape ratio, like tenyear average of price earnings is up at 27. Near all time highs. On a trailing basis, lower near 17. The big problem is we dont know exactly what those forward earnings will look like. Were not sure how much of trumps proposals will get passed, when theyll get passed and when theyll get implemented. Have investors underestimated the rick from some of the policies like protectionism, like border adjustable tax, et cetera. I think so. Theyre pricing in perfection. The problem is, when you see, it seems like the bank stocks, they had a 30 rally just over two months. But they had been rallying since the middle of the summer up over the 50 . I think that will be pulled back to a certain degree. But it is not, lets face it. Deregularular regulating, eliza warren, who has good bully pulpit to argue from. She might be successful pushing book some of that bank regulation. So it is a little too much of what trump will succeed in getting passed. If thats the case, and there are road blocks from congress or regulations or what have you. I would assume that we might get a little more market volatility. As a long term average investor, how do you handle that . Well, i think the best thing to do, pullbacks in the market, even corrections, are not only normal but healthy. So let them, ride them out. You might want to sit back and hold back from putting new money into the market just now. And put it in if the market comes in. Everybody talks about, everybody wants to wait for the markets to pull back. Therefore it wont happen. I think kit happen because of the valuations that he talked about. And it will bring some opportunities, especially in the tech area is that the energy area. All right. On that note, thank you so much. The dow component disney, they said the revenue was weighed down by espn and its studio business. Disney did report better than expected earnings of 1. 55 a share. Revenues down 3 from aier ago to roughly 14 billion. Thats what investors focused on as shares fell initialfully afterhours trading. Julia boorstin breaks down the pluses and minuses. The real drag on both disneys earnings and revenue is consumer, the shu of new star wars products resulted. With all eyes on espn, considered a bellwether for the health of the tv bundle, it dragged on the network division. Thanks to advertising revenue and subscribers. But firing on all cylinders, the parks showing growth in the and u. S. Abroad. Thank to its new shanghai park. President trumps temporary travel ban is in a federal Appeals Court tonight. The judges will decide whether it can be reinstated or if the ban should remain on hold. Each side will have 30 minutes to make its case. As weve been reporting, the Technology Industry has been paying particularly close attention. In a nut shell, President Trumps executive order suspends travel from seven mostly muslim countries the administration deems terror incubators and the decree has spawned widespread protests. But the president continues to hold his ground. We have to have security in our country. Authorities are making three types of complaints. First that it is unlawful second, it represents bad policy ask third that it tlenls the nations economy. Just south of San Francisco lies Silicon Valley, the capital of u. S. Tech industry. In a court brief filed sunday, about 100 major Tech Companies, including google, a. M. , microsoft, intel, netflix, uber and tesla, came out against the travel restriction. They stay order harms the competitiveness of u. S. Companies and that the rules will make it far more difficult and expensive for u. S. Companies to higher some of the worlds best talent. The Leadership Group says 58 of the engineers and other high skilled employees there were born outside of the United States. But the number directly sfaektd admittedly a small fraction of that. For instance microsoft based to the north in Washington State has about 120,000 employees, 71,000 in the United States. The company says it knows of 76 employees who were citizens of the countries targeted by President Trumps oil. At alphabet, googles parent company, thousands walked out in protest. The company has said more than 100 of its 72 global workers are directly affected by the order. It is not just tech that has been impacted. The Health Care Industry wasnt part of brief but 16 of its more than 14 million workers were foreign born in 2015. Including more than half the medical scientists. Think biotech. It is unknown precisely how Many Health Care workers would be hit by the travel restrictions. One thing is certain. Silicon valley and lots of Tech Companies are up in arms over the president ial rule. Today more than 160 bioexecutives signed it. Joining us, the immigration policy analyst at the Kato Institute who is against the restrictions, and john, fellow for immigration studies. He supports President Trumps move. Gentlemen, thank you very much for joining us. Let me start with you. Why do you oppose this particular move by the Trump Administration . Well, for one thing interesting move will not increase National Security in the United States one iota. These seven countries on the ban list havent killed in a terrorist attack ever. It is unclear what the purpose is. And secondly, the Economic Impact of this order and future orders that will likely come if this is upheld will be bad for american businesses. Especially those a help and xan panned and grow. If their employees go overseas and then the president in the future puts a travel ban that prevents them pr coming back like we saw a couple weekends ago. That will cause a lot of problems for business and that will restrict ability for firms on grow in the United States and hire americans. I can see where there is an enconvenience for a lot of companies and maybe hundreds of workers employed in the United States from these seven countries. Where is the concern about National Security . I understand that the companies are aggrieved. Should they also be concerned about threats . Thats the big thing that President Trump is putting forward. America is a nation. Not just an office park, where to put a business up. And theres great concern. Were saying no terrorists have come from this yet. Where the most likely places for a terrorist to come to the United States now . And these seven countries pretty likely candidates. Six have completely dysfunctional governments and iran, the seventh, is a finder and sponsor of terrorism. So what about that . There are those in the country who feel as john does and have made that point. There are others saying, if you keep this travel ban in place, then perhaps xu paneled it to other countries. It is a slippery slope. In the order, trump wrote that he allows for more countries to be add on the list in the future for virtually any reason and expand the ban on these countries going forward. And it is important to ask that if they have made the argument, the administration, several times, that there is a National Security threat from these places, that this is sort of an imminent terror threat. Thats why they rolled it out without conferring with many of the agencies, without them checkinger to. They cant point to those threats. They cant point to a tlift has killed successfully on u. S. Soil for many of these countries. So if they are concerned about National Security, then there are lots of countries they could have looked at that are much better arguments than these seven. This is a 90 day suspension of visas from these countries to look at the procedures people come in. Do you feel as alex alluded to, that really is the companys concern here is that this is leading edge, a stocking horse for more draconian, more restrictive travel policies that could go well beyond this inconvenience for this 90day, admittedly, it could be extended, for this 90day span and it could go to such things as the h 1 B Visa Program under which many thousands of workers come in every year. I think youve hit the nail on the head. When you see the business lobbying and organizing over this particular issue, that really doesnt affect them much. Theyre posturing because they know that President Trump is going to put in place regulatory actions and executive actions and theyre trying to organize here to try on minimize or head them off. So what about that . The h 1 B Visa Program is what most of Silicon Valley and other areas of tech are concerned with. How much clout do you think theyll have, given what they can contribute to the economy, the number of people they can employ . Well, trump doesnt seem to care about economic reality. He ran the rest of his platform on a policy of wanting to deregulate energy, finance and other parts of economy. When it document immigration and trade, he wants to put in place more barriers that administration it more difficult for business to grow. To determine which firms get to hire their employees, where they get to come from, what wages they need to come from. One thing we should have learned over the last couple hundred years of economic history, when government makes these decisions for companies, for firms, for the economy, for americans, it doesnt turn out very well. And it couldnt be cheerer. This is diametrically opposed to the agenda. Thank you. The central for immigration studies. And still ahead, the long and winding road. Why gms record earnings are not enough for investors. Sears struggles are intensifying. The bonds hit new highs and the stock continues to tumble. Today shares off another 13 to another all time low. Last month sears debt was downgraded following lack luster sales and mounding losses. General motors recorded better earnings. That was not enough on impress investors. Shares of the auto maker were lower in part because of wall streets concerns about the potential impact of a border tax and how could it hurt the industry. These strange days for mary. For the second straight year, her company delivered record profit nrgs part by strong sales in clean and the u. S. The auto maker is cashing in on heavy demand for highly profitable pickups and suvs. So why is gm stock continuing on struggle . Even as the automaker the had even greater profits for 2017. One reason is President Trump. Hes met him at the white house. He is threatening on slap a border tax on vehicles made in mexico and sold in the u. S. Not only does the u. S. Ill port more autos from mexico, a good part are profitable trucks. So when investors are worried they may have to raise prices pickups or cut into profits or perhaps pay hundreds of millions of dollars to move production to the u. S. They said gm is talking with the president and waiting to see what he ultimately does with the border. There are a lot of moving pieces right now. Were at the table and also working at all levels of the administration to make sure were providing the input. While gm hobbied the Trump Administration, they do not see companies slowing down. Especially in the United States. The average vehicle topped 35,000. More than 4,000 above the industry average. Nbc Business Report. Chicago. The hand bags ask accessory says a drop in foot traffic contributed to the companys lower than expected revenue. The companys profits fell but it was enough to beat expectations by a big penny. Michael kors gave the guide yabls citing ongoing weakness in its north American Market ask shares fell to 36. 82. Cardinal health missed expectations and said results were negatively impact by lower generic prices. It beat profit forecasts. Shares finished up 2 at 77. 76. The Health Insurer said an increase in membership, its immediate he indicated business had profits. It reaffirmed its guidance through the year. The shares were up to 26 even. And the company benefited from higher sales in china of its rerefrigeration. The Company Posted lower revenue but said it had Sales Guidance for the full year. Emerson electric rose almost 4. 5 . The trade deficit narrowed in december pr the prior month for 2016. It exceeded a half trill dollars, the highest level in four years xfl ports fell faster than imports, in part because of the strong dollar. The gap is what President Trump wants to narrow as one of the ways to promote economic growth. What is allowed in as our sea ports. With cargo shipments, one of the biggest problem is what not to allow in. Andrea day talked to federal investigators on the front lines. We have to weed down and identify what gives us the most risk and prevent them pr coming into the country. At least 3,000 shipping containers arrive every day. Thats just the port of new york newark. It could be 2,000 boxes. Cargo he says that could be loaded with counterfeit goods, drugs or weapons. Is it even possible to check everything that comes in on a daily basis. We could but it would stop our economy. Long before the vessel even get close to the United States they want to stop them. The u. S. Customs and border protection. Manifest gets looked at and reviewed. Containers that are flagged come here. Most are common out of clean. Its a huge billion. 600 to 700 billion every year. The proceeds, billions of dollars, are made from these items, can go to find terrorist organizations and criminal elements throughout the world. And take look at this. The shipment just stopped in its tracks. This is all suspect of being counterfeit merchandise. Specifically, counterfeit perfume. Sure enough, what looks like chanel, versace and others. The labeling says it is made in france but it is coming from china. A clear indication that this will be counterfeit merchandise. You know it is more of a toy than a high end product. All the boxes set to go on small stores are sold online and potentially dangerous. The counterfeiters have no standard. Weve seen mercury, lead, arsenic. It can be very tough to pick out the rule from the fake. His advice . Buy directly from major retailers if the price seems too good to be true, thats a big red flag. For nightly Business Report. Coming up, a 21st century land grab . In Red Rock Canyon, nevada. Who is the biggest retailer . Well tell hue it is and how that might change coming up under President Trump. The Trump Administration has given approval. It was final easement needed to finish 4 million controversial project. Construction had been delayed after protests from native americans. And environmental activists. President trump scened an executive order that revived the im that lines completion. Missouri is the 28th right to work state. The governor signed a bill allows workers to avoid paying dues. Business have hobbied for such laws saying it makes states more tom pet i have the. Moo is the largest land owner in the United States . The answer . The United States. You. The taxpayer. The federal government owns millions of acres, most in the midwest. The debate goes back over decades. Now there is a new sheriff in town named trump and he is shaking things up. This is Red Rock Canyon area. 200,000 breath taking acres and you own it all. In fact the american taxpayer interesting federal government, owns nearly 85 of the hand area in nevada. More than any other state. Congress has begun dismanning the restrictions on the use of lands with the blessing of the white house. That hits home for people like mice reese, worried about a delicate balance. Our best state of affairs, as bad as it is, is leaving the status quo. Nevada has long had a love hate wrip its primary land lord in 2014. Tensions boiled over on the federal ranch land leased, the armed standoff lasted for weeks. Out here in the west, opinions with what to do over this land about as varied as the terrain and the interests involved. Environmentalists, ranchers, companies. With the Trump Administration, some see an opening, a way to shake things up once and for all. The nevada congressman wants to transfer millions of acres from the feds to the state. We think locals are in a better position to make those decisions regarding land use, grow, not grow, than the federal government 2,500 miles away. Can one single state that has less than 3 Million People in it really foot the bill for that . Thats a high price to pay to have our own independence. For their part, the president and his nominee for interior secretary say theyre against the idea. I am absolutely against transfer or sale of public land. But in nevada, and throughout the west, theyre bracing for change. For nightly Business Report, in Red Rock Canyon, nevada. And that is nightly Business Report for tonight. Thanks for joining us. Thanks for me as well. Have a good evening. Well see you tomorrow. Nightly Business Report has been funded in part by all it takes is a spark. One idea to take flight. The courage to seek the unknown. To innovate. To move us all forward. To explore a different perspective. At nasdaq we connect the world, its ideas, its capital, its businesses, the people who drive global economy, the future isnt tomorrow. Its right now. All it takes is a spark. Nasdaq. This is bbc world news america. Funding of this presentation is made possible by the freeman foundation, newmans own foundation, giving all profits from newmans own to charity and pursuing the common good, kovler foundation, pursuing solutions for americas neglected needs, and aruba tourism authority. Planning a vacation escape that is relaxing, inviting, and exciting is a lot easier than you think. You can find it here in aruba. Families, couples, and friends can all find their escape on the island with warm sunny days,