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tv   Nightly Business Report  PBS  June 21, 2011 1:00am-1:30am PDT

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>> susie: less worry about the greek economy for american investors. they're now turning their attention to the u.s. economy and this week's federal reserve meeting. >> i think what the federal reserve can do, in its statement, and especially at the press conference, it could reassure people that in fact the economy is not going into a double dip. >> tom: it is the last meeting before the fed finishes its $600 billion bond-buying program. what stock and bond buyers want to hear. it's "nightly business report" for monday, june 20. this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by:
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this program is made possible by contributions to your pbs station from viewers like you. captioning sponsored by wpbt >> susie: good evening everyone. stocks on wall street posted decent gains today, as investors became less anxious about greece's financial problems. european officials agreed to advance the country its next quarterly installment of bailout money. tom, investors are now focusing on this week's fed meeting. >> tom: absolute focus here, susie. fed policymakers meet tomorrow and wednesday to decide what's next for interest rates.
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>> susie: what will the fed chief say, and will it soothe the markets? erika miller reports. >> reporter: these are unsettling times for financial markets. but if there's one man who can calm nerves, it is the chairman of the federal reserve, ben bernake. if he shows strong conviction in the economic recovery wednesday, strategist stephen freedman says it could help support stock prices. >> clearly the soft patch and economic data have been one of the market drivers. and here, investors are going to try to figure out whether the fed believes this is indeed a soft patch, and the second half of the year we will see economic data strengthen. >> reporter: many americans fear the opposite as the fed ends its second quantitative easing program, dubbed qe2. but make no mistake, the markets do not want any whiff of a qe3. >> that would probably be seen as a negative signal for the
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markets, because that would be viewed as indicating that the fed perhaps has insight into weaker data than is commonly assumed as being the baseline for the economic recovery here. >> reporter: bond investors also hope to hear the recovery is gaining traction-- but not enough to boost inflation. economist milton ezrati hopes the fed will address more than just short-term price pressures. >> i'd be very pleased if bernanke and the fed were to somehow indicate their long-term plan for taking action against long-term inflation threats. they've done that in other venues. it's unlikely they'll do it in this one, but it would certainly make markets feel better. >> reporter: since april, there has been a safe-haven flight into treasuries, which has pushed the yield on the 10-year note below 3%. that's a half a percentage point drop from early april. so could there be further declines wednesday? >> the tendency there is for yields to rise because the federal reserve quells fears, which will prompt the investment
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community to unwind the flight to quality that drove down treasury yields so far in this recent period. >> reporter: but most strategists say there's little likelihood stocks will rally much on wednesday. instead, the risk is to the downside. in addition to worries about the u.s. economy, the market is focused on second-quarter earnings and economic turmoil in europe. erika miller, "nightly business report," new york. >> tom: here are the stories in tonight's n.b.r. newswheel: stocks started the week higher. the dow rose 76 points, the nasdaq was up 13 and the s&p 500 gained six. trading volume began the week with 784 million shares moving on the big board-- 1.6 billion on the nasdaq. a big win for walmart. the u.s. supreme court tossed out the nation's largest-ever employment discrimination class- action lawsuit. the court ruled a class-action suit accusing walmart of paying and promoting female employees less than their male counterparts pulled together too many cases with too little in
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common to be lumped together. the 1.5 million women involved can still pursue individual cases. another conviction in the government's crackdown on insider trading-- former consultant winifred jiau was convicted of conspiracy and securities fraud. she faces up to 20 years in prison. prosecutors claim she befriended insiders at tech companies nvidia and marvell technology, then passed company details to hedge fund managers. >> tom: still ahead, the investing style of warren buffett is more feminine than manly. author louann lofton's take on how buffett has made billions. >> susie: states can create jobs and boost economic confidence if they're business friendly. that's the upshot of a new study released by the u.s. chamber of commerce at its governors' summit. the business group says when it comes to job creation, states are where the rubber meets the road. the chamber sees four steps they can take to add jobs: downsize government, cut spending,
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modernize the tax system and eliminate excessive regulation. delaware governor jack markell says creating jobs often begins with a simple question. >> every day i wake up and say how can i make the companies in delaware more successful and best way is to go out and talk home to and ask them that very question how can i facilitate your success. >> susie: markell and his counterparts believe investing in higher education is one of the best ways to create jobs. they hope to produce graduates who are better prepared to compete in the global workplace. >> tom: since prices peaked 4.5 years ago, 7.5 million homeowners have received foreclosure warnings. over 3.5 million of those homes have been repossessed by banks. most foreclosure cases involve homeowners losing possession of their house, but one couple in florida fought back against a clogged state court system and an overwhelmed bank and won. warren and maureen nyerges bought this house in naples
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florida in 2009-- paying cash. so it was a complete surprise to them when they received a foreclosure notice from bank of america. they immediately called the bank to straighten it out, but no luck. proving they had no mortgage was much more difficult than they imagined. >> they just couldn't wrap their head around the fact that there was no mortgage. we had no business with bank of america. we made the purchase from the bank. it was paid in full. i don't understand what failure there was at the corporate level to let this happen. >> i don't know if they just didn't hear or they didn't want to hear or they didn't understand. >> i believe they heard. you'd speak with a representative and ask for their supervisor, and you'd give them the same story you gave the representative, and you would get the same response from them. "just get up to date on your mortgages." >> tom: banks and the court system are clogged with foreclosures. at the end of may, more than 912,000 homes were being
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processed for foreclosure. homebuyers may not like to hear it, but real estate attorney and author of "foreclosure nation," shari olefson, says mistakes will be made. >> part of the problem is we're so deep into this and the problems have compounded so much over the last few years. we know that it started with a huge influx of cases, much bigger than the system was ever really designed to take. that came on the tail end of about a decade of changes in the industry that actually made these cases more complicated. >> tom: back in naples, florida, maureen and warren nyerges spent six months sending letters, pleading with bank of america to dismiss their foreclosure. it eventually wound up before a judge. >> we went to court and produced our documents. we gave them our arguments. the law firm was unable to produce documents. they really didn't have answers to a lot of questions. they just kept insisting there was mortgage. >> reporter: the judge ruled in favor of the couple and awarded them $2,500 in damages for their trips back and forth to the courthouse.
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but bank of america fought paying them. the nyerges then turned to attorney todd allen. he wanted to try a novel strategy to help his clients get their money. he threatened to foreclose on bank of america by seizing the property at a local b. of a. branch. >> bank of america pushed us to this. and if that meant i'm going in to seize your chair and the desk you're sitting at and hire a moving van to move it, i'll do that to get them paid. these people were wrong and they were wronged and didn't deserve to go through this. >> a lot people thought we couldn't do this. i knew we would beat them in court, and i knew the truth would prevail. >> tom: as for the settlement from bank of america, the nyerges received their check last week. bank of america apologized for the mess, saying, "while the matter is now resolved, we're embarrassed by this chain of events and the trouble this has caused. we will improve our process to prevent these errors in the future."
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>> susie: women and warren buffett have something in common-- they're both better investors than men. so says louann lofton. she's out with a book titled "warren buffett invests like a girl: and why you should, too." and she joins us now. >> hi, susie. thank you for having me. >> susie: this is a real catchy title. so you've got our attention.
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tell us why you're comparing warren buffett and why he invests like a girl. >> well, it's all about controlling your emotions and having the proper temperament for long term success and studies show women an and warre buffett tend to be better at controlling emotions than men. >> susie: you have eight essential investing tips you say make people like warren buffett and women investors superb invests are. let's go down the list and you can explain why. at the top trade less, make more. i guess this is a long the theme of being patient. >> absolutely. warren buffett says his favorite holding period is forever. we'd all be richer for adopting it. >> susie: next rein in ove overconfidence about ego. >> it comes up how men invest versus women and he only invests
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in companies he truly knows and understands. >> susie: i guess it goes to your third point. shun r yes, we can't completely eliminate risk but all take a lessen from buffett and learn to manage safety and that's something we can all put into play. >> susie: focus on the positives of pessimism. that's complicated. >> it sounds strange but buffett gets excited when the market is scary and that's when you should be buying and it can feel scary to people but by focussing really on when times are the worse getting out there and investing you'll be better for it. >> susie: let's look at the next batch of four other research essentials. research extensively. it gets to the issue of doing your homework. >> absolutely. he is said to read five newspaper as a day and all
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investors can do for themselves. >> susie: and women do naturalry compared to men. >> yes, we go back to the over confidence question because women tend to be less confident and the do more research which works in their favor. >> susie: all right, running through the next three, ignore peer pressure and learn from mistakes. >> he sits out in omaha and doesn't care what's going on on wall street and he's willing to do things that other people aren't doing and that's something we can all do just ignore peer pressure. don't give in. >> susie: all right. the last one embrace feminine influences. >> m the men may be skeptical b take apage from buffett and you may end up richer and may be $60 billion dollars one day. >> susie: so you met with warren buffett recently and what was his reaction about being compared to let me put it this way, a girlie investor.
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>> he saw a copy of the book and hope he would understand it's a compliment and when i asked buffett if he thought he invested like a girl he said he would probably plead guilty to that. >> susie: okay. it's an interesting book they looked through and i'm sure our viewers well get interest in too. thank you for coming on the program. >> thank you for having me. i appreciate it. >> susie: we've been speaking with louann lofton on warren buffett invest like a girl and why you should too. >> tom: there were more buyers in the market thanks to more confidence in the u.s. and get you updated with tonight's market focus. the promise by european finance leaders to help greece gave u.s. investors some confidence. health care stocks were on top today. this sector is the best performing this year. here is the s&p healthcare exchange traded fund-- up 1%
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today. you can see this rally. it's up more than 11% since the beginning of the year after a tough 2010. biotech firm biogen idec led the sector today, gaining 4%. trying to break out of this downward trend. volume was double its usual pace. investment firm i.s.i. upgraded its rating to buy, expecting earnings to double within four years. biogen is awaiting drug trial data on a new mutiple-sclerosis treatment. consumer stocks also did well. toy maker mattel added almost 3%. look at this. nice rally here. shares have turned up in the past week, closing in on its 52- week high. mattel makes toys for this past weekend's winner at the movie box office, "green lantern," as well as dozens of toys for the new "cars 2" movie due out this weekend.
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expected to be a blockbuster. banking stocks were the weakest. these two were the biggest drags on the dow industrial average. bank of america and j.p. morgan each lost almost 1%. we did get confirmation of p.n.c. financial's buyout of the u.s. retail banking business from royal bank of canada. it's a $3.5 billion price tag. p.n.c. shares fell 2%. this is their lowest price of the year. in a much different industry, but also at a new low for the year? apple. yeah, look at this. shares sank 1.5% today. clearly trending lower. volume almost doubled. apple hasn't traded at $315 per share since last november. another tech leader continues sinking too, but much worse. research in motion volume tripled as the selling continues after last week's warning. look at this. this is another almost-five-year low. as we approach another earnings
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season, one warning and one upside surprise. energy driller nabors is at a five-month low, falling 2%. its guidance came in below estimates. meantime, fertilizer maker agrium pushed up its outlook thanks to stronger crop prices. agrium shares gained 4%. ag and construction equipment maker caterpillar led the dow industrials with this 2.3% rally. this is the past 90 sessions. caterpillar reported its machinery sales were up 52% over the past three months, but that's a slower growth rate than earlier this year. and that's tonight's "market focus."
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>> reporter: a $9 billion-a-year industry tries to figure out how to get back to work tomorrow. n.f.l. owners meet to talk about their lack of a labor deal with players as the season is due to start in 11 weeks. tonight's "beyond the scoreboard" looks at how important the n.f.l. is for the local television business. rick horrow is a sports business analyst and c.e.o. of horrow sports ventures. and from urbana, illinois, scott tainsky, professor at the university of illinois. beginning tomorrow. any closer to a compromise. >> one as a lawyer i can tell with confidence when he lawyers vacate the room a deal might be near and two, both sides are now talking about the specific issues they would like to see changed in order for a deal to get done.
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11 weeks before the start of the season you don't do that unless the deal is close and moving in the right direction. >> tom: you mentioned how the gold enegg is the television contract and looking at markets for the nfl and business part in other words and the majority of americans don't have a natural hometown nfl team. 59% are not in an nfl market. locatio important for the business decision and the nfl business partners. >> the nfl first off tries to create the relationship by creating a 75-mile radius around a stadium that belongs to a team and a franchise agreement and see ticket packages on direct tv where they tried to create the same emotion between fan and the league through fantasy football
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and seeing that emotional attachment. >> tom: scott, interesting dynamic. 41%, as you said, are hometown fans. 59% are not and how could you explai explain capturing the passion if most are not home-towners. >> it's hard to see the breakdown versus cities without the team and the 6 or $$6 or $7 million goes to the fox corporation and versus those that don't have teams. but certainly a lot of money is on the table and all the ten thousand to 50,000 per rating points. >> tom: it equals one percent of household viewers and looked at the top markets los angeles, orlando and sacramento and if they can get one percent more
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viewers on a thursday, sunday or monday you're talking thousands more homes and thousands more in advertising revenue. how important is game selection for the television operators. >> it's the most important decision they make. we see ratings as low as two and high of 27 with the average about nine in the cities. not showing the best game can mean ten or twelve points which means thousands of viewers and even half a million in the los angeles market. >> tom: and great stuff, scott and the l.a. market and they make decisions as to who goes there. we appreciate it. scott tainsky with the university of illinois and rick haro with sports ventures. >> susie: quart ert
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>> susie: here's what we're watching for tomorrow: existing home sales for may, along with quarterly results from barnes & noble and walgreen. the federal reserve begins a two-day meeting on interest rates. and the world's most influential bond-fund manager, bill gross, joins us to talk about what he thinks the fed will do next on interest rates and fixing the economy. expect some big changes when it comes to internet domain names. those are website endings like "dot com" or "dot net." icann, the group that oversees internet domain names, voted today to unleash a floodgate of new web addresses, sparking what could be the biggest change to the internet in nearly 30 years. icann's michele jurden calls it an important step. >> just like no one expected that dot com was going to become as big as it was. and then facebook and all the various social media stuff popped up, and who would have thought that would have ended up being as big as it was? and now i think that these new extensions are just the next evolution of the internet.
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>> susie: those new extensions will start showing up next year, but at a cost. a new domain name suffix will cost $185,000. icann will begin accepting applications for new domains beginning in january. in just six weeks, the united states will reach its debt ceiling and run out of room to borrow. the debate over boosting the ceiling has been tied to
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spending cuts, something tonight's commentator says the nation certainly needs. she's maya macguineas, president of the committee for a responsible federal budget. >> last week, we at the committee for a responsible federal budget hosted a roundtable with 40 of the nations leading budget experts and policymakers. it was an incredible crew including chairman bernanke, congressman paul ryan, gene sperling and a host of leading budget, economic and financial markets experts. much of the focus was on increasing the debt ceiling. bottom line? if we don't do it, we risk creating an unprecedented crisis in the markets and the economy. other bottom line? if we don't get off of the current budget path we are on, we will also hit a crisis. not as abruptly, but ultimately just as painfully. so is it really too difficult to agree that we have to lift the debt ceiling before, not after, the august 2 deadline and include a major plan to fix the budget, saving at least $4 trillion dollars and dealing
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with our major entitlement challenges? i sure hope not, because the alternative is clearly not pretty. i'm maya macguineas. >> tom: that's "nightly business report" for monday, june 20. i'm tom hudson. good night everyone, and good night to you too, susie. >> susie: good night tom. i'm susie gharib. good night everyone. we hope to see all of you again tomorrow night. "nightly business report" is made possible by: this program was made possible by contributions to your pbs station from viewers like you. captioning sponsored by wpbt
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captioned by media access group at wgbh >> more information about investing is available in "nightly business report's" video "how wall street works". to order this dvd, call 1-800- play-pbs or visit online at >> be more. pbs.
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