Nightly Business Report - Wednesday July 17 2013

7/28/2019 Nightly Business Report - Wednesday July 17 2013

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ANNOUNCER: This is NIGHTLY BUSINESS REPORT with Tyler Mathisen andSusie Gharib, brought to you by --

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BILL GRIFFETH, NIGHTLY BUSINESS REPORT ANCHOR: Dow deluge. IBMraised its guidance, Intel (NASDAQ:INTC) cuts its revenue forecast, and eBay(NASDAQ:EBAY) warns of headwinds ahead -- as a wave of corporate earnings reportscontinue to flood in.


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SUSIE GHARIB, NIGHTLY BUSINESS REPORT ANCHOR: Back from the brink.

Five years after the financial crisis, Bank of America (NYSE:BAC) posts blowout earnings. Isthe past finally behind the banking giants?

GRIFFETH: Bernanke speaks. And when that happens, the market usually moves, a lot.But that wasn`t the case today. Have investors finally gotten the message?

All that and more tonight on NIGHTLY BUSINESS REPORT for Wednesday, July the17th.

GHARIB: Good evening, everyone. I`m Susie Gharib, along with my colleague BillGriffeth, and Tyler will be coming on in just a few minutes.

Topping our news -- two tech titans, both Dow components, with different earning storiestonight. After the market closed, IBM reported strong quarterly earnings but Intel s numbersdisappointed.

With more on the details, Seema Mody joins us.

So, Seema, let`s start with Big Blue.

SEEMA MODY, NIGHTLY BUSINESS REPORT CORRESPONDENT: Yes, well,these are two very important read on the sector. Let`s start with Dow component IBM as itsresults are many times used by the street as a barometer for measuring IT and corporatespending, while a second quarter earnings dropped due to weakness in its hardware and servicessales, its earnings per share of $3.91 still managed to beat Wall Street expectations and that`swhy the stock is moving higher. After-hours revenue came in lower at estimates, $24.9 billion.

IBM also raised its four-year outlook. CEO Ginni Rometty says IBM delivered a strongperformance and higher value software and mainframe businesses. Rometty also says she


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expects continued improvement through the second half of the year for the Big Blue. Now, aslightly different story for Intel (NASDAQ:INTC), second quarter revenue of $12.8 billionmissed street expectations due to weakness in its PC division. Earnings at

39 cents a share, though, did come in line with analysts` consensus for semi conductors players`outlook for the current quarter came in shy of what was expected, forecasting sales of $13.5billion.

Now, over the past year, analysts have voiced their concern regarding Intel`s delayedentry into the smartphone space. Intel`s new CEO Brian Krzanich in the press release wrote he`smade it Intel`s highest priority to create the best products for the past growing ultra mobilemarket segment. He also said that personal computers will become a hybrid of the PC and thetablet. So, that will be something interesting to watch.

GHARIB: And interesting to see how investors react to all this information tomorrow.

MODY: Absolutely.

GHARIB: Seema, thanks for coming along.

GRIFFETH: Very good, Seema. Thank you.

Well, after reporting -- also reporting this evening was eBay (NASDAQ:EBAY), theonline auction company`s profits grew year over year but they were shy a penny of estimates.Revenue rose 14 percent but the CEO John Donahue also warned of headwinds in Europe and inKorea in the second half of the year. EBay also trimmed its estimates for the current quarter.

Shares dropped in after-hours on the news trading on those comments on Donahue as well.

GHARIB: And we also heard from another member of the Dow after the bell. AmericanExpress (NYSE:EXPR) (NYSE:AXP) second quarter profit rose nearly 5 percent, beatingestimates by a nickel a share, as spending by cardholders grew 7 percent.


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GRIFFETH: American Express (NYSE:EXPR) (NYSE:AXP) shares were lower, beforeits earnings came out on news the European commission is considering a plan to sharply cutlucrative debit and credit card interchange fees that are charged by companies like Visa(NYSE:V) and MasterCard (NYSE:MA).

The proposal calls for a 2/10 of 1 percent cap on all debit card transactions, and 3/10 of 1percent for consumer credit card transactions.

American Express (NYSE:EXPR) (NYSE:AXP) finished the day at $76.80.

Both MasterCard (NYSE:MA) and Visa (NYSE:V) rose.

GHARIB: On Wall Street today, investors were focused on Washington, and what BenBernanke was telling Congress about the economy. They were reassured by the Fed chairman`scomment that there`s no set timetable for pulling back on the Central Bank`s bond buyingstimulus plans. Also, boosting investor confidence, strong quarterly earnings from Bank ofAmerica (NYSE:BAC), and we`ll take a closer look at both of those stories in just a moment.

Now, despite all of that and an upbeat outlook of economic conditions around the nation,in the Federal Reserve latest Beige Book survey, stocks still posted small gains. The Dow added18 points, the NASDAQ added 11.5, the S&P up 4.5 points.

More now on today`s testimony from Fed Chairman Bernanke before the HouseFinancial Services Committee. The Fed was on message with lawmakers about when the CentralBank might begin pulling back on its asset buying plans.

Hampton Pearson has more on the chairman`s testimony.

(BEGIN VIDEOTAPE)

HAMPTON PEARSON, NIGHTLY BUSINESS REPORT CORRESPONDENT (voice-over):


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Federal Reserve Chairman Ben Bernanke told lawmakers markets are more stable now thatinvestors understand the Central Bank is in no rush to taper its bond-buying program or raise keyshort-term interest rates.

BEN BERNANKE, FEDERAL RESERVE CHAIRMAN: We are very focused on MainStreet. We`re trying to create jobs. We`re trying to make housing affordable. We`re -- our lowinterest rates have created a lot of ability to buy automobiles.

PEARSON: Persistent microphone problems in the hearing room did not stop thechairman from fine tuning that message. Monetary policymakers agree that 7 percentunemployment is a good threshold to begin thinking about tapering the bond purchases, now at$85 billion per month.

Key short term interest rates will remain at historic lows, at least as long as theunemployment rate remains well above 6.5 percent.

BERNANKE: The phrase at least as long as is a key component of the rate policyguidance. These words indicate that the specific numbers for unemployment and inflation in theguidance are thresholds, not triggers, increases in the target for the federal funds rate once theybegin are likely to be gradual.

PEARSON: The Fed is closely watching the impact of rising mortgage rates on thehousing recovery. Housing starts fell 10 percent last month.

BERNANKE: We will be watching to see if the movement in mortgage rates has anymaterial effect on housing. I mean, the main thing to see housing continue to grow, more jobs inconstruction and the like.

PEARSON: On what may be Ben Bernanke`s last monetary reports to Congress as Fedchairman, there was bipartisan praise for his service.

UNIDENTIFIED MALE: You served us very well under very, very difficultcircumstances and I appreciate your service to your country. Thank you.


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BERNANKE: Thank you.

PEARSON: His second term expires in January, Bernanke was mum with lawmakerstoday about his future plans.

(on camera): But the here and now debate over the effectiveness of the extraordinaryeconomic measures resumes tomorrow when the Fed chairman testifies before the SenateBanking Committee.

For NIGHTLY BUSINESS REPORT, I`m Hampton Pearson on Capitol Hill.

(END VIDEOTAPE)

GHARIB: Our guest tonight says Ben Bernanke finally got his message out to investorsand they are feeling calmer.

She`s Rebecca Patterson, chief investment officer at Bessemer Trust.

Rebecca, great to have you. You have now listened to Ben Bernanke give multiple formsof testimonies and speeches and everything. Now that you have this clear message, are youdoing anything different with your investment strategy?

REBECCA PATTERSON, BESSEMER TRUST CHIEF INVESTMENT OFFICER:

Actually not. We have been over weight equities. We`ve had a maximum under weightallocation to traditional government bonds, treasuries agencies. For a couple months now, we`vealways had the view that the Federal Reserve doesn`t want to do anything but be gradual.Bernanke does not want his legacy to be that he moved too fast and drove the economy into anew recession. So what Bernanke has said today and in the last week or so, really is kind ofunderscoring what we think will be a very gradual but a very real turn in the bond market.


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GRIFFETH: So let me -- let`s be clear about that. A lot of people rush to the bondmarket for safety, Rebecca, but yet bonds lost principle as yields have gone up and inanticipation of the tapering by the Fed.

Do you think that will continue?

PATTERSON: Well, I think yields will keep going up this year and in the coming years.So I do think all those investors who are the last, literally, 30 years have enjoyed bonds need tochange their expectations on what bonds can and cannot do. I think they can still help protect aportfolio of stocks selloff sharply, but in other times, they are going to be eroding value.

So, you don`t want too much of it. You want to be looking for other ways to get safety.But it is going to be a slow, gradual process.

GHARIB: You know, Ben Bernanke talked also a lot about fiscal policy, saying that it`stoo short-term oriented. So, to what extent what`s going on in Washington over the next couplemonths will be impacting what happens in the stock market over those next couple months?

PATTERSON: Oh, absolutely. You know, when I think what keeps me up at night

most, it`s not really an issue today, it`s a time frame and that time frame is September.

We have the continuing resolution that funds the U.S. government expiring in September.We have a very important Federal Reserve meeting.

They might begin tapering that month.

We might learn who Mr. Bernanke`s successor is that month, if he is going to besucceeded in January by someone.

A lot of event risk in one month, and fiscal policy will be front and center. DoesWashington use a continuing resolution and the debt ceiling further this fall to createcontroversy? Are we going to have a game of chicken like we did in summer of 2011? Or arewe going to get more bipartisanship like we saw in March this year?


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Depending how that plays out, I think that`s going to either help equity markets go higheror possibly give us a pretty ugly pull back.

So, September is going to be a critical month to watch.

GRIFFETH: Well, in the meantime, you do have to put clients` money to work. Whichway are you going? Do you go with the cyclicals, anticipating that growth, or do you staydefensive ahead of time, just in case?

PATTERSON: Well, for the moment, we`re optimistic. We`re going to give Bernankethe benefit of the doubt. There is a lot of risk around the exit from quantitative easing, but as wekeep seeing decent signs on housing, on autos, the consumers holding up despite higher taxes,Europe stabilizing somewhat, you know, we`re over weight equities, we`re over weight U.S.equities.

So, we`re riding along, but we`re staying nimble enough that if we get closer toSeptember and things aren`t looking so pretty, we can pull back at least on a temporary basis.

GHARIB: A lot of good information.

Rebecca, thank you so much for coming on the program.

PATTERSON: Thank you.

GHARIB: Rebecca Patterson, chief investment officer at Bessemer Trust.

GRIFFETH: And we all know that paying for college is not cheap, but student loan debtjust crossed a new threshold. Total outstanding federal student loan debt has now topped $1


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trillion. That according to the government s Consumer Financial Protection Bureau. And that`smore than the total outstanding debt on credit cards and car loans.

And when you add in private loans, that total debt tops $1.2 trillion.

GHARIB: Looking at some housing news today, applications for new mortgages andrefis fell again last week, down more than 2.5 percent, as higher loan rates cut into demand fornew loans.

Meanwhile, housing stats tumbled in June, down nearly 10 percent on a huge drop indemand for multifamily apartment buildings. Now, one bright spot, permits for future

construction hit a five-year high on growing demand for more single family homes.

GRIFFETH: Bank of America (NYSE:BAC), a big originator of home loans.

And today, that company posted a surge in profits. The nation`s second largest bank said higherrevenue from its trading division and lots of cost cutting helped boost its bottom line. Today`sreport pushed the stock to multi-year highs but while the earning looked was good on thesurface, the bank`s troubled past may not be completely behind it.

Kayla Tausche is with us tonight covering the story for us.

So, how different is Bank of America (NYSE:BAC) today compared to where it was? Isit in better shape financially?

KAYLA TAUSCHE, NIGHTLY BUSINESS REPORT CORRESPONDENT: It`s farhealthier, Bill, than it was several years ago, that it was even a year ago, just in this most recentquarter. Bank of America (NYSE:BAC) got

200,000 bad loans off of its books. It also shifted a billion dollars in legal reserves that it had tocover some of those loans from those reserves into its normal balance sheet.


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They had a lot of legal costs but it does look like, now, their returning capital toshareholders. They`re starting to invest in the business again and they`re meeting the regulatorycapital ratios that they need to.

This is a far healthier company.

GHARIB: But let`s talk a little bit more about some of these legal costs because they stillare still not all resolved and they have a big chunk, $8.5 billion, something like that. So, I mean,what could go wrong in that area?

TAUSCHE: Well, let`s be clear. They`ve already reserved or put aside

$8.5 billion to cover that settlement, which is from a couple of years ago.

It`s still in court now. There`s expected to be a ruling from a judge on whether that $8.5 billionis enough, whether it needs to be higher. It could go higher. That could be costly for Bank ofAmerica (NYSE:BAC). We expect a decision on that in a couple months.

But, remember, this is a bank that spent nearly $50 billion to get out of the woods with alot of these issues from the financial crisis. It spent a lot of money. The good news is it`s nearthe end. It can count on one hand the number of lawsuits that are outstanding.

That doesn`t sound like a great thing but it is for a bank with this troubled past.

GRIFFETH: That`s for sure.

Now, when you compare it to the rivals, Citi, JPMorgan (NYSE:JPM) Chase, revenuewasn`t as strong for B of A. What`s the difference there?

Why?

TAUSCHE: Bank of America (NYSE:BAC) is one of the banks that was hit the hardestby the low rate environment. We know what happened in the last two months of -- last two


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weeks, rather, of June. There was incredible volatility as people were wondering what BenBernanke and what the Federal Reserve would do with its policy.

Bank of America (NYSE:BAC), I guess, had very competitive rates on their loans, verylow rates on those loans, didn`t ever make as much in interest revenue as they had previously.

They also had some volatility in the fixed income trading side. They lost some moneythere where some of their peers actually fared better.

GHARIB: Real quick question, Brian Moynihan, who`s a CEO, he`s been under attackall these years. You know, could he turn the bank around?

Does he have support? Does he have a strategy that investors like?

TAUSCHE: He has board support. He`s built the board to a broader group of financialexecutives, with restructuring expertise, with expertise turning around a big company unwieldycompany into something that actually can be a profit machine. He`s hired a lot of people in theinvestment bank to do more deals with big corporations, when they`re ready to do them.

He`s putting more loan officers in the branches, even though they have fewer branches, hopingthat when consumers start to borrow again, they`ll borrow with Bank of America (NYSE:BAC).

GHARIB: Amazing story.

GRIFFETH: Kayla Tausche, thanks for spending part of your birthday with us tonight.

TAUSCHE: Thank you.

GRIFFETH: See you later.


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Still ahead, why a big American company that many investors own is now the target ofan influential short-seller.

But, first, a look at how the international markets closed today.

(MUSIC)

GRIFFETH: Three years after it was signed into law, the overhaul of the rules governingWall Street and the nation s biggest banks are still falling into place. And today, TreasurySecretary Jack Lew said that implementing new rules in the Dodd-Frank law is necessary toreform the nation`s financial system.

Meanwhile, Preet Bharara, U.S. attorney for the southern district of New York, hisjurisdiction does cover Wall Street, he said even the biggest banks and top executives have tofollow those rules.

(BEGIN VIDEO CLIPS)

JACK LEW, U.S. TREASURY SECRETARY: Going forward, we`ll measure theprogress in weeks and months, not in years. And much of our remaining work will be completedin the next five months. Let me repeat, by the end of this year, core elements of the Dodd-FrankAct will be substantially in place.

PRETT BHARARA, U.S. ATTORNEY FOR SOUTHERN DISTRICT OF NY: I don`tthink anybody is too big to indict. No one is too big to jail. I think -- and I`ve been saying thisfor years -- you know, there is enough moral hazard in the industry and if you give people a

blank check and you tell people that they have a "get out of jail free" card because of their size orbecause of their interconnectedness to the economy as an absolute matter, that`s a verydangerous thing. And we should never do it, and we don`t do it.

(END VIDEO CLIPS)


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GHARIB: The U.S. secretary and U.S. attorney made those comments at CNBC andInstitutional Investor "Delivering Alpha" Conference. Tonight, we want to take you inside theannual conference where top money managers and Washington insiders speak their mind.

Now in the past, comments made here have made -- have been market and stock movingand today was no different. Tyler Mathisen is at the conference and has more.

(BEGIN VIDEOTAPE)

TYLER MATHISEN, NIGHTLY BUSINESS REPORT: Thanks very much, Susie.

You know, apart from hearing from policymakers like Jack Lew or law enforcers likePreet Bharara, the real reason to come to Delivering Alpha is to hear from the world`s topinvestors and on that score, this event did not disappointment.

Leon Cooperman knocked it off and knocked it out of the park. Last year, he had 10predictions, all 10 came true.

We heard from a guy they call the "King of All Shorts", Jim Chanos.

He told us that caterpillar was the one that he is shorting now.

Also, John Paulson, the guy who they say had the greatest trade of all time.

Nelson Peltz, we call him an alpha agitator. He talked about some of his holdings.

And then, concluding the day with Carl Icahn. Take a listen.


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UNIDENTIFIED MALE: Tomorrow is the scheduled shareholder vote about Dell(NASDAQ:DELL).

TAKE ICAHN, ICAHN CAPITAL MANAGEMENT: Right.

UNIDENTIFIED MALE: What`s going to happen?

ICAHN: I`m not allowed to tell you. Let`s go onto the next one.

UNIDENTIFIED MALE: Yes, right.

(LAUGHTER)

ICAHN: I think, we`re feeling pretty -- I mean, you know, we obviously have someinsights about it and we feel pretty good. But I -- the FCC doesn`t want you to go and comment.

LEE COOPERMAN, OMEGA ADVISORS, INC: SandRidge has the potential fordoubling. And if the price of oil and gas move depreciatively lower, they can go bankrupt. So,you know, risk -- risk and reward.

JAMES CHANOS, KYNIKOS ASSOCIATES: We are shorting Caterpillar

(NYSE:CAT) Inc., iconic American company, leader in the class, but tied to the wrong productsat the wrong time in the cycle.

JOHN PAULSON, PAULSON & CO: I still feel buying a home is the best investmentany individual can ever. Affordability is at an all-time high.

It still costs less to own after tax than it does to rent, and they get locked in the rates, where thefixed rate mortgage, then you get the benefits of depreciation.


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So, if anyone bought a home last year, let`s say for $100, you put down $20. Today, thathome is worth $112, so you made $12 on a $20 investment, 60 percent return.

NELSON PELTZ, TRIAN FUND MANAGEMENT: I`m asking shareholders of Pepsiand Mondelez, get your cards and letters out and send them to the board of Pepsi and Mondelezto back these transactions because, Andrew, if the transaction is structured the way we suggest,Pepsi by 2015, our estimates say, the stock is $175. It`s $80 something today.

MATHISEN: So, Susie, all and all, "Delivering Alpha" was about ideas, news on the onehand from policymakers and folks like Preet Bharara, but ideas mostly that can help you makemoney in 2013 and beyond.

Back to you.

(END VIDEOTAPE)

GHARIB: And here is how those stocks finished the day, most were winners.

SandRidge Energy, Coke, Mondelez all closed higher, but shares of Caterpillar (NYSE:CAT)tanked on Chanos` comments and Dell (NASDAQ:DELL) was also lower.

Turning now to market focus, we begin with Yahoo (NASDAQ:YHOO).

Shares surged 10 percent today as investors zeroed in on Yahoo`s 24 percent stake in Alibaba --profits and revenue in this China-based e-commerce company are booming. So, analysts uppedtheir targets for Yahoo

(NASDAQ:YHOO) based on that performance.

Investors piled into Yahoo (NASDAQ:YHOO), betting on a big Alibaba IPO down theroad.


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Yahoo (NASDAQ:YHOO) shares traded on heavy volume, closing at $29.66 aftertouching a new six-year high.

St. Jude Medical (NYSE:STJ) was an S&P gainer despite posting lower profits. But thecompany reported better than expected sales and raised its outlook for the year. St. Jude rosemore than 5 percent, touching a new high on four times normal volume.

Several regional banks out with earnings. Bank of New York Mellon

(NYSE:BK) and M&T Bank (NYSE:MTB) each touched new highs on strong profits.

M&T profits up 49 percent on mortgage revenues, while BNY Mellon jumped 21 percent oninvestment gains and higher fees.

M&T closed at $117.94, up a fraction. But shares of Bank of New York Mellon(NYSE:BK) rose almost 2 percent, to $30.92.

GRIFFETH: Meanwhile, aircraft maker Textron (NYSE:TXT), home to Cessna and Bellhelicopters reported lower revenues, saying that business jet demand remained soft. Profits fellby 34 percent in the quarter.

Textron (NYSE:TXT) restated its outlook for the whole year as a result and said that there werestrong orders for helicopters. Shares were roughly flat on double their normal volume, closingthe day at $27.74, up a penny.

And toy maker Mattel`s profits fell by 24 percent in the quarter on sales declines andimpairment charges. Sales of Fisher-Price brands drooped and the Barbie brand continues to bein a slump. But the company did announce an increase of $500 million in its buyback program.

Shares of Mattel (NASDAQ:MAT) dropped almost 7 percent on five times its normalvolume, and closed the day at $43.16. An executive from GlaxoSmithKline may be feeling a bitoverwhelmed right now. Chinese authorities have barred that British company`s vice presidentof finance from leaving China. Officials there are investigating claims of bribery and corruptionby employees of the U.K. pharmacy giant involving doctors, hospitals, medical associations andgovernment officials in order to boost drug sales and get regulatory approvals.


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GHARIB: And coming up a little later on the program, as competition among grocerystores heats up, you`ll never guess what some are doing to get their hands on your food dollars.

But, first, let`s get a look at how commodities, treasuries and currencies performed today.

(MUSIC)

GHARIB: Grocery stores need a lot of power to keep food fresh and fresh ideas to getconsumers in the door and spending money.

With increasing competition from dollar stores and lots of giant discounters, CourtneyReagan shows us how the grocery business is fighting for your business.

(BEGIN VIDEOTAPE)

COURTNEY REAGAN, NIGHTLY BUSINESS REPORT CORRESPONDENT (voice-over):

When price no longer becomes the differentiating factor, retailers have to get creative to drivesales and grocery is no different.

Supermarket chain Safeway (NYSE:SWY) reports earnings Thursday and Wall Street isexpecting results to be largely unchanged from a year ago.

The trouble is, while everybody eats, food buying has stayed relatively constant over the pastseveral years. But the option for consumers to purchase groceries has exploded, which meanscompetition for your food dollars is only getting more aggressive.

UNIDENTIFIED FEMALE: I go for the best price -- yes, I do about three stores.


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UNIDENTIFIED FEMALE: I usually just shop around and look through the paper to seewhat deals are out.

UNIDENTIFIED MALE: Price is certainly a consideration, but selection and quality arereally important.

REAGAN: Dollar store grocery offerings alone have tripled in growth since 2000. Foran industry where the average profit margin is just 1 percent, cutting prices much further isn`t aviable option.

(on camera): That means more and more groceries are pushing innovation limits from

offering chef demonstrations in store, to localizing a store, refining private label product andinstituting technology to make help shopping trips a little bit easier. Grocery retailers are doingit all.

(voice-over): Kroger (NYSE:KR) uses technology that collects data that then analyzesshopping patterns at various times during the week. The grocery store then uses the data todetermine how many cash registers should be open during different type periods throughout theday, cutting the average wait from 4 minutes to 26 seconds.

THOM BLISCHOK, BOOZ & COMPANY CHIEF RETAIL STRATEGIST: This next10 years in grocery will be some of the most fascinating years we have ever seen, because wewill expect a complete transformation of what the grocery experience will be. We`ll expecttremendous amounts of products to be delivered at home, and we`ll expect an environmentwhich actually does benefit the consumer.

REAGANM: Although profit margins may frustrate investors, consumers will certainlybenefit from heightened competition and the resulting innovation.

For NIGHTLY BUSINESS REPORT, I`m Courtney Reagan.

(END VIDEOTAPE)


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GRIFFETH: Finally, tonight -- a great story. A Pennsylvania public relations executivewho sales auto parts on the side briefly became the richest man in the world this week, that`sbecause when Chris Reynolds opened up an e-mail statement from his PayPal, the onlinepayment system credited him more than $92 quadrillion. In case you`re wondering, that`s

92 with 15 digits after it.

PayPal admitted their mistake, kidding, then corrected his bank account back to zero andafter admitting to mix-up, PayPal offered to donate a thousand dollars to the charity of Reynolds`choice.

But you wonder, what would Reynolds have done with $92 quadrillion?

Here`s his answer.

(BEGIN VIDEO CLIP)

CHRIS REYNOLDS, CREDITED $92 QUADRILLION TO PAYPAL ACCOUNT: Iwould retire the national debt. I`m kind of a responsible guy. I feel, you know, a little bit ofguilt over the debt and then I`m going to buy the Philadelphia Phillies.

(END VIDEO CLIP)

GHARIB: So magnanimous. What would you do in $92 quadrillion?

GRIFFETH: Oh, I`d retire the national debt and buy something else, I don`t know. Itwouldn`t be the Phillies, that`s for sure.


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GHARIB: That`s NIGHTLY BUSINESS REPORT for tonight. I`m Susie Gharib.Thanks for joining us.

GRIFFETH: I`m Bill Griffeth. Have a great evening. Tyler is back tomorrow night.Have a great one. See you tomorrow.

END

Nightly Business Report transcripts and video are available on-line post broadcast athttp://nbr.com. The program is transcribed by CQRC Transcriptions, LLC. Updates may beposted at a later date. The views of our guests and commentators are their own and do not

necessarily represent the views of Nightly Business Report, or CNBC, Inc. Informationpresented on Nightly Business Report is not and should not be considered as investment advice.(c) 2013 CNBC, Inc.

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Nightly Business Report - Wednesday July 17 2013