Right now. All that and more tonight on the nightly Business Report for thursday, october 16th. Good evening, everyone, drama, it defined wall street these past few days. And tomorrow there could be more of it following disappointing lateday results from google. Well have more on that in just a moment. But first todays drama, with stocks rebounding again with early losses before mixed and little change. Some encouraging economic reports out today helped to turn things around like a 14year low and jobless claims, a better than ever boost in productions last month and Solid Earnings from Goldman Sachs, United Health care and Delta Airlines, the dow down nearly 200 points this morning lost just 24 points by the closing bell. The nasdaq added two points and the s p rose by a fraction. The yield on the benchmark tenyear note edged below 2 again before closing above that level. Over in the oil markets, crude oil dipped below 80 a barrel this morning but closed nearly a dollar higher, lifting the Energy Prices. Bob pasani has more. What a different a day makes, well, volume today was heavy, todays activity was not nearly as frenzy as yesterdays when we saw a huge volume of sell anything trading right at the open. Now stocks did start down, but unlike yesterday the lows were right at the open. We rallied immediately then dipped after 10 a. M. Eastern time. The s p was down 27 points at its worst at 10 20 a. M. And james bullar dna somewhdbullard fed should delay. Very few believe the fed would back another round unless there is some disastrous problems in the economy, regardless, the markets moved up. The markets were stable today, and two of the other issues, weakness in europe and concerns over ebola are not close to being resolved. So nobody believes that volatility will go away. The european market, particularly greece and portugal and spain, they were notably week today with banks particularly hard hit. On ebola, there were no segments that hit the market, and costs were up today. But fear of new cases emerging are not far below the surface. For nightly Business Report, im bob pasani at the new york stock exchange. And weeks of market turmoil with fresh scores of a twoweek low. They bounced back smartly ahead of the blue chips. But what about some of the most widelyheld stock shares you may hold directly or almost certainly in some of the new funds, how have they fared . Dominic chu has more. Reporter you may be holding some of the most popular stocks in america, chances are if you have an ira, a 401 k or College Savings account that holds mutual funds you probably have exposure to these big companies. According to the market data firm, the five most popular Stock Holdings among Institutional Investors are apple, microsoft, wells fargo and Johnson Johnson, so how have these companied done during the market down draft . Well, the dow jones has fallen around 7 , the Broader Market s p has fallen by nearly 8 , during that same time span, apple, the maker of all things ipad and phone, fell 6 , microsoft, 10 , Oil Giant Exxon mobile dropping 8 , americas biggest Mortgage Lender wells fargo losing 10 , and drug and Consumer ProductsJohnson Johnson dropping by 11 . Basically, some of the most widely held stocks fell by more in the overall market, this has some wondering if there is a buyer opportunity or more to come ahead as we head to 2015. For nightly Business Report, im dominic chu. So where do stocks go from here . Our guests tonight have completely different answers to the question, Barry Banister is chief investment analyst, and jack apple, chief investment officer. Let me begin with you, barry, you have a 2300 target on the s p by year end. It is a very bullish forecast. And youre sticking with that. Tell us why. You mean, 450 points in 50 trading days . Exactly. How do we get there . Yeah, we entered this year with a flat view of 1850 for the first nine months and clearly i jumped the gun for this october which is a slippery period for the stocks. Keep in mind you have the continuing growth, the free rates, accommodating policy, a fairly bullish back drop. Look, all of that makes sense, i get it, but you have investors freaked out about ebola, about weak economies all over the world. Even though you make a lot of sense they may be too fearful to buy stocks, where is that rally going to come from . Keep in mind a lot of countries had to be dragged in to the kind of policy maneuvers that we did. For example, europe just devalued the euro, we did that with the dollar years ago. They just sampled to the qe form. The chinese still have a strict monetary policy. There is a lot of ammunition left to use. You have to keep in mind weve thrown a lot of bad news at the market. If there was a 7 to 10 , theyre not fairly bullish. You have a somewhat more dour view of what may be ahead for the market, why . What i would say is i agree with barry on the economy. I do think there are a lot of good things going on. We got low Energy Prices and jobs being created. But the problem is that market became untethered from the economy just about the time that the Federal Reserve announced qe 3 toward the beginning of 2013. And so as a result of that it is like as if the Federal Reserve is like the older brother, and the and we all have become so bombastic and aggressive because we have someone protecting us. Well, now, as paper is ending, older brother is graduating and we have to fend for ourselves. If i look at valuation, pure simple valuation, it looks like were still 20 overvalued. And the last few months have been fuelled by liquidity, and appears to be turning downward. Jack, you say youre sanguine, you say youre 20 overvalued. But if youre sanguine, do you think we might have a 20 decline . Well, i would say there are a couple of ways we can close that 20 gap. I mean, we can continue to get liquidity into the market place and have fundamental earnings and revenues catch up. I mean, granted this quarter, for example, analysts are expecting roughly 5. 5 Earnings Growth on 4. 5 revenue growth. That should be pretty achievable. If we keep chipping away like that and have stocks trade sideways we can close that valuation gap without much pain. Barry, as recently as august you were very bearish, one of the most bearish forecasters about stocks. Could you see a scenario that jack was talking about, that stocks come back down 20 . Yeah, it was kind of remarkable through august with having a flat view through the year 2018 was considered very bearish. But big up years are usually not followed by large down years. And one thing i would draw attention to is the whole concept of seasonality. The market is remarkable in the sense that the six months from november to april has historically been 30 times more rewarding on a cumulative basis than the six months, may to october. Midterms, especially second midterms and then 2015 will be the third president ial cycle year. Those returns have been twice as high as all the other years for the last 65 years. So it is pretty hard to be bullish going into the later part of this year and early 2015. All right. Well, two different views, well see how it all plays out. Barry and jack, thank you for joining us. Barry bannister, jack apelin. And more on the surprising Third Quarter earnings with google after the bell, top and bottom line misses disappointing numbers on paid clicks per add. Earnings per share were 18 short of estimates after some adjustments. Revenues topped 16 billion up from last year but just missed the more aggressive forecast. The investors didnt miss that. The shares were down initially as much as 6 after that report but they climbed back a bit as you see there since then. Morgan brennan joins us now with the one big takeaway from the numbers. Well, it is paid clicks, the number you just mentioned and the fact we see googles core growth continue to slow down. How do you measure that, its paid clicks, 17 increase versus last year, analysts expected it to be a 23 increase, in recent quarters we saw that number as high as 30 so that is why you are seeing the stock move lower in after hours. The one brave spot is the cost per click, the revenue brought in on those clicks actually only declined 2 , analysts expected a decline of 4 which is closer to what weve seen in recent quarters. Even though that was a negative number that was the one bright spot. Very quick, what is a paid click . So youre talking about the total number of advertising clicks, what people are clicking on when they go to google. Theyre hitting the ads, seeing the ads. And that is googles core business, we talk about drones but that is it. Morgan, thank you very much, morgan brennan. Here is another story over at Goldman Sachs which reported blowout earnings before the opening bell today. Profits shot up 50 to more than 2 billion thanks to a pickup in bond trading. The ceo says that an improving u. S. Economy helped the companys performance. At this point it is pretty much better in the United States and not better in very many other places. But still the United States is an important market for us and that kind of confidence is creating more transactions. If you have more mna you create more financing and securities, securities trading. But like a lot of banks over the past weeks, shares of Goldman Sachs were down 2. 5 . Also the dow component United Health care which beat forecasts on earnings per share. Revenues, though, less than expected because fewer enrollees went to the doctor last year. And the profit outlook is looking up thanks to medical costs. With that, shares of unh closed today 4 higher. Still ahead is the ebola crisis keeping travellers from flying and hitting the airlines where it hurts in bookings for future flights. A report from dallas ft. Worth airport is next. There was not the same kind of buzz you see for an iphone as apple introduced the new thinner, faster ipad air 2 tablet which also has a fingerprint id sensor instead of a pass code. Apple ceo tim cook unveiled it today, but was most excited about the apple pay, the new electronic payment system. Apple says it already signed up five apple banks. Nonetheless shares finished the day lower. One big decline in the market today was netflix. Shares of the streaming Video Service plummeting 19 today, 86 a share. Yesterday earnings were above wall streets expectations but subscriber growth disappointed and hbo announced they are entering the business. As netflix shares plummeted, the numbers were defended that most concerned investors, a shortfall is subscriber growth, 700,000 fewer than forecasts, saying it was not due to competition but a lack of big hits and a price increase in may. With a little bit higher prices you have a little bit fewer subscribers, so that is our sense of it. But we cant be 100 sure, we have so much benefit from orange q 2 and 3, but that is what we think. Daniel ernst agrees. Listen, im not going to pound the table today, they actually missed subscribers, the subscriber growth is the key to the story, but they will be fine. Hbo is key to launching the service, despite pressing on how bad the competition could be for netflix he insisted he is not concerned. You know, we compete with them like baseball and football compete. I mean, you know, people watch both, we have different shows. But if of people have to choose between the two of them will they choose hbo over netflix . No, way, they will choose netflix. That is why they are investing so much in movies, with adam sandaler and the crouching tiger debuting on the same day it hit imax theaters. It is important to give the consumers what they want, consumers, they are tired of waiting. On movies i have to wait for months and months as it does the theater. We want to provide consumers what they want. Were not antitheater. With the netflix expanding to kids programs, hastings says that movies are natural evolution. He says they have plenty of cash. In silicon valley. Another content company cutting the cord, we begin tonights focus there. Cbs is launching its own Live StreamingService Offering episodes from current shows to customers for about 6 a month but it will not stream nfl games. This service is the first of its kind in the networks, shares rose slightly to 51. 15 dollars. And shares of barbie continuing to decline, the toy makers American Girl doll business is struggling which could also be an issue for the company. Shares fell 3 to 29. 62. It was a different story for winnebago, the company saw the fiscal Fourth Quarter earnings, improving profitability. The rv maker has seen sales improve in recent quarters as it introduced new products to dealers. Despite that, shares were down a bit, 21. 60 was the close there. Shares of chesapeake soaring on news of gas assets to southwestern virginia to 5. 5 billion, one of the biggest investments ever for the company. The stock surged 17 to 20. 79. On capitol hill today, lawmakers blasted the governments response to the latest u. S. Ebola cases at a house hearing. Some even called for a travel ban from the hardesthit countries in west africa. Dr. Tom frieden, director for the u. S. Centers for Disease Control assured members of congress that the virus can be controlled. Meanwhile, Delta Airlines which has more flights from the u. S. To africa than any other u. S. Airline says there has been no impact on bookings from the ebola crisis so far. Deltas ceo Richard Anderson says he is confident that the u. S. Government and his company are handling the situation the right way. We monitor it on a daily basis and we have not seen any changes in the booking trends. The carrier says it has a lot of experience dealing with other virus and illnesses when it cleans its planes. But the case of the dallas worker traveling on a plane just a day before being diagnosed with ebola has millions of fliers questioning if they should take more precautions while theyre in the air. The cdc says that flying is safe because ebola is not an airborne virus. But fliers are not convinced. He knows that the surgical gloves and mask could seem like an overreaction to the ebola virus, but he says you cant be too cautious when youre packed in a plane with other travellers. How can they sufficiently regulate it. I was protecting myself from it. He and other travellers are worried but not panicked by the latest ebola case which involved Health Care Worker amber vinson who took a frontier flight from cleveland to dallas with an elevated temperature. The cdc gave vinson the okay to fly because she was not at a stage of being contagious. But other passengers on vinsons flight are not convinced they were safe. Was she sitting behind me . Is there a possibility that she sneezed on me . I at this point would like to hear back from the cdc, i called and did what i was told to do. Frontier took the plane vinson flew out of service, cleaned it and replaced some of the carpeting. The cdc said these extraordinary actions went beyond cdc recommendations. These steps were taken out of concern for the safety of our customers and employees. Passengers say frontier may be doing everything it can to protect them but they doubt the cdc has a handle on how the virus is spread. Im not too concerned, though, i do think the cdc is mishandling this. They didnt have a grip on this from the start. They were very slow to react on it. We will be trying to not touch anybody or get real close to anybody we dont know. There is too many people getting it theyre not containing it at all. Despite travellers having concerns about the ebola virus, airlines have not seen a drop in future bookings for future flights. Welcome news for carriers preparing for a busy Holiday Travel season. Phil lebeau, nightly Business Report, dallas. Coming up, get aggressive or stay defensive. Investment pro mike holland has your tips to suit your in investigating mood. One question hanging over every investor right now is what do i do with my money . Our next guest is a veteran investor and has suggestions no matter what your personality mood is. And he is mike holland, here with some news. Mike, i apologize for calling you a veteran, that means were old guys, lets talk a little bit. If i want to make an aggressive move here and if i think this may be the bottom of the market dive and i think better days will come where would you consider putting money . If you swing to swing for the fence, there is no place to go but the social media stocks, twitter, the Chinese Internet Companies like alibaba. This is getting in the batters box and going for the fence. You can strike out. Dont want to try this at home. You want professionals to do it. But if you really want to go for the fence, the chinese internet stocks like alibaba, for example, and the carnage today did extremely well. These are the kind of companies if you say it is the bottom it will get better this time of year. These stocks tend to do better in that environment, you make a lot of money. Mike, im a lot more cautious. If there were other investors like me that wanted to just play it safe a little bit, want some income. What would you want for their portfolio . You know in this market, susie, it is actually quite easy for the viewers. You can look at Companies Like apple, intel, exxon mobile, dont turn the dial, these companies if you put money into those four companies as opposed to putting 100 into a ten hadyear treasury you get 50 more income out of the companies than you do out of the tenyear