>> announcer: this is "nightly business new risks. earnings are strong. the economy appearsolid h. but are new risks developing that investors need to watch? working overtime. the job market remains red-hot. is it on the verge of overheating? and death of a salesman. retail is facing an uncertain future. good evening, everyone. investors spent the day assessing the market some new, some not. first there's the recent slide in technology shares. the same group that led the market higher this entire year. some say the pullback is because potential tax changes. others say it could just be

typical year end selling. add to thaopolitical risk. the president made the controversial move of declaration jerusalem to be the eternal capital of israel, a dramatic shift in american foreign policy for the past few decades, sparking the world. eamon javers is at >> reporter: president trump cast the decision to recognize jerusalem as israel's capital as simply acknowledging the reality politically on the ground in jerusalem. he also said he was fulfilling a campaign promise. >> today i am delivering. i've judged this course of action to be in the best interests of the united states of america and the pursuit of peace between israel and the palestinians. this is a long overdue step to advance the peace process and to work towards a lasting agreement.

>> reporter: we're getting reaction from the region now, including this from israeli prime mini netanyah who said there will be no change in status, israel will always ensure the freedom of worship for jews, muslims and christians alike. meanwhile president president abbas with this statement, saying these reprehensible actions constitute a deliberate undermining of all peace efforts and represent a declaration that the united states has withdrawn from playing the role it has played in past decades in sponsoring the peace process. white house officials also said it could take some time to move the u.s. embassy from tel aviv where it is now to jerusalem. simply finding the location, building the facility, arranging for security, all of that could take years, they say. nonetheless, the president is directing that that process begin as soon as possible. for "nightly business repor" i'm eamon javers at the white house. and then there's tax reform. the details still have to be worked out.

but major focus points for both individuals and companies is the alternative minimum tax. ylan mui tells us where things >>r: republicans taking another step forward today on tax reform with the senate officially voting to go to conference with the house to hammer out a final version of their tax bill. one point of contention, the alternative minimum tax. experts say that keeping it in the tax bill could undermine the benefits of lower rates both for individuals and for businesses. and for households, those most affected are married couples we $300,000 and $750,000 a year. the tax policy center estimates that if the alternative minimum tax is kept, their benefits could be dialled back by $8,000. companies are also fighting hard to make sure that the tax doesn't remain in the final version of any legislation. they're saying that the problem is that the corporate rate is now 20% in the senate version of

the bill as well as the rate imposed by the alternative minimum tax. so that means if companies try to take advantage of benefits like repatriating foreign earnings or using the popular credit for research and development, their effective tax rate would fall below 20%, force that go alternative tax to kick in and putting them back at a 20% rate. so that means companies are essentially being penalized for doing what lawmakers are trying to incentivize them to do. republicans acknowledge that this is a problem. they say they want to work this out in conference committee. senate finance com chairman orrin hatch was asked by reporters today if it might be included in the final version of any bill. he said it doesn't look like it for now but you never know. for "nightly business repor" i'm ylan mui in washington. and there are late day reports that a 22% corporate tax rate is still under consideration because it would help pay for other provisions.

citigroup giving some guidance on how the proposed tax bill could impact its bottom line. citi's cfo said the bank would likely take a hit of $20 billion, most of that a one-time hit, would be a writedown of its tax asset. but over the longer term, the plan is expected to significantly lower the tax rates that banks pay. and that could lift profits. there is also a slim risk of a government shutdown. although house republicans today advanced legislation that extends government funding through december 22nd. but the president said a shutdown could happen this weekend. he added that if it does, it would be because democrats held up spending negotiations. the top house democrat, nancy pelosi, said the only person talking about a shutdown is the president. let's turn now to art hogan for more on the risks to the market. he's chief market strategist at b. riley fbr. art, good as always to see you. how do you look at the risks including why don't we start

with the new one that came in today, and that is the declaration by the president that the united states will recognize jerusalem as the capital of israel. how do you put these all into the stew and decide which ones to worry about, worry about less, or not worry about at all? >> reporter: that's a great question. and the problem with that is in all geopolitical hotspots, it's impossible to model and it's impossible to react as a market until something turns economic versus something that turns from a geopolitical hotspot into an escalation that becomes a military event. we've been working with this with north korea for the past six months. you know, they launch a missile, they test another missile, the market tries to adjust to that. but it's just impossible to model that in. it's certainly worked its way to the front burner in terms of clear and present danger. but you won't see the market trying to adjust to that until it escalates to a level of military action. i think that's true with north korea as well. >> what about the debate on capitol hill with the possible government shutdown and tax

reform? now, obviously they're still trying to work it all out. but how big a risk might some of those details be for the market? >> well, i think the government shutdown is a movie that we've seen before. there's a lot of jawboning that goes on in negotiating. at the end of the y we usually come to a resolve at the 11th hour. i think that's less of a concern. the tax plan, we've priced in some modicum of success. a failure in the tax plan or at least pushing it off into 2018 probably means we have a 5 to 8% pullback. if it succeeds, we probably have a 5 to 8% run-up in the market. so we're symmetrical in our risks around taxes right now. >> is technology really rolling over? >> no, it's not. it's three things. you want to lock in your winners. technology has clearly been the winner. the faang names are up 35 to 40% on a year to date basis. it makes sense.

there are provisions in the tax bill, especially if the corporate amt stays in there, that would be negative for them. but it would have a negative impact on what we would like those corporations to do, research and development, repatriation, and capital. it's that end of the year, if you take profits, you take them where they are. if you're going to rotate into some of the value names, which you've seen a lot of in financials and energy and industrials and some of the retail names, the technology is being used as a source of funds, right? so it's almost like it's a source of funds to make that rotation. i think that rotation is coming to its end. we probably won't be talking about this next week. >> art hogan, the man with more logos behind him than anybody i've ever seen. take your pick. art hogan, always good to see you. >> thanks so much. >> you bet. on wall street, investors appear to be in watch and wait mode. the dow jones industrial av slid 39 points to 24,140. the nasdaq was up 14. and the s&p was off a fraction,

falling for four straight sessions. the job market has been a hot part of the economy. a new report today shows hiring was solid last month, reflecting a job market firing on all cylinders. could it get too hot? steve liesman takes a look. >> reporter: job growth looks to have stayed strong in november as markets are ready for the employment report coming on friday. 195,000 jobs were created in november. the unemployment rate remains at a 17-year low, 4.1%, backing up the call from private company adp which uses its own data to forecast job growth, came in solid at 195,000 for november. some economists are worried that the economy could be on the verge of overheating because it can't mistaken this much employment without creating inflation. >> at the current rate of job growth, that's more than double the rate of growth in the labor force. underemployment continues. the unemplot rate is 4.1. we're going sub- dssub-4% by ne.

that's an economy that could overheat. >> reporter: trade and transport jobs searched by 36,000, a big seasonal factor as retailers staff up warehouses for the holidays and struggle to find truck drivers to deliver all those packages. if these strong job numbers continue, it could prompt the fed to raise rates faster especily if there are signs of inflation along with it. for "nightly business repor i'm steve liesman. out in california, officials say insurance claims for the october wildfires that ravaged that part of the state have reached $9 billion. today state officials are dealing with fires in the bel air area of los angele >> reporter: i'm on top of mulholland here. to give you an idea how much smoke is blanketing the nation's second largest city, behind me here is the newest fire which

broke out this morning. you could see from aerial pictures of it, this fire in bel air has forced the evacuation of one of the most exclusive neighborhood in los angeles, at least four homes destroyed. that number is expected to go up. and it really ruined the commute on one of the busiest freeways in the country. the 405 freeway and the sepulveda pass, a major thoroughfare, was shut down by the fire. hundreds of people were trapped. it destroyed the morning commute. there are five active fires across southern california right now, burning at least 77,000 acres, at least 185 homes have been destroyed. that number is expected to go way up. and tens of thousands of people have been evacuated. four of the five fires at last check with zero percent containment. you can see it's not too windy right now, you can tell by my hair. the wind is expected to kick way

back up tonight and last through the weekend in one of the longest santa ana events we've had here. i want to do a 180 and show you exactly what we're talking about. i have l.a b me, the city. this is the san fernando valley. this is another fire that starts to the right, the creek fire. 11,000 acres at least burned. 30 homes at least destroyed. if you pan to the left, you can just see the smoke from that fire fanning out across the san fernando valley, meeting up with smoke from another fire in santa clarita over the hills, and going far to the left into the west to meet the largest fire out in ventura county, the thomas fire. 65,000 acres, well over 150 homes destroyed. thousands displaced. no power. schools closed. air quality terrible. we're going to have to see how this plays out for the rest of the week. for "nightly business repor i'm jane wells in bel air. and still ahead, why ups is already suffering

as republicans hash out the final version of the tax bill, housing advocates say it could hurt both home prices and home ownership rates. but a top housing expert doesn't necessarily agree. and diana oleic sp >> reporter: if any knows home prices, it's professor robert shiller, co-creator of the much-watched shiller home price index, which dates back to 1988. it revolutionized how the housing market measured moves in prices. shiller says a cut to the mortgage interest deduction would not hurt prices. >> the general idea is it would push prices down. if people are rational. >> reporter: you're saying if people are rational.

>> yes. >> reporter: the questio do we use the mortgage interest deduction as our major incentive to buy a home. >> no. most people don't itemize. and so it's not big. >> reporter: shiller did, however, think that a cut to the property tax deduction would have some impact, if only to rich people. >> that is going to be substantial, a substantial hit to people who are paying a lot of property taxes. and it might be a consideration that you make before you buy this big mansion in some high property tax state. >> reporter: shiller also had a surprising view of rising mortgage rates. >> i tend to think it's not as great as you imagine. because people are people. and i don't find that historically home prices have reacted at all predictably to changes in things like interest rates. >> reporte in other words, people aren't always rational, especially when it comes to their biggest and most emotional investment, their home.

for "nightly business repor" m diana olick in washington. susan wapner joins us to talk about how the tax bill might impact the housing market and you, of course. she's a professor of real estate and finance at the university of pennsylvania's wharton school of business. welcome back, susan, nice to see you again. >> my pleasure. >> let me get you to react a little bit to what professor shiller said in diana olick's piece, because we're located in new jersey, and property taxes are high. and that's regardless of whether you buy a big home or not. they simply are higher than other parts of the country. what did you make of his take on how much the property tax deduction or the loss of that deduction would hurt home values? >> well, let me just generally say, not to differ with my friend bob too much, but i think there are enough rational people out there that all three of these potential changes will affect the housing market and not in a good way.

there's no question that at the high end, high property tax states and high priced states will take a hit. >> that would be my impression, living in a high property tax state, such as i do, because it makes the relative ability, the cash flow equation changes. and similarly, when one looks at a mortgage writeoff, you look at the aftertax cost of home ownership. both of these things -- >> absolutely. >> -- will raise that. >> and it's not just a home ownership choice. absolutely, but it's not just the home ownership choice. it's the choice of how expensive a home. >> correct. >> and how expensive a home is going to be more costly and significantly more costly for those who are in high tax brackets and cannot deduct any more a million dollar home, which in many high priced markets is not out of the ordinary, it's quite ordinary in new jersey and california.

these markets are going to be hit by the $500,000 limit in the house. no limits, stay with $1 million in the senate. lots of moving pieces here. at the same time, though, the $500,000 limit in the house and we have the property tax $10,000 limit. that's a double hit for high price and high tax states. >> all real estate is local, of course. and it will differ depending on what state a person lives in and decides to buy a home in. but as they work out these details, can you quantify how much of a hit it might be on the overall housing market? or is it too soon to tell? >> well, it's too soon, but more than that, it's very local. so it always is local with housing prices. but even more so. it's not just local, but it's hyperlocal, in a sense, because it's going to be the concentration of high price homes in some neighborhoods, together with the high taxes,

those neighborhoods will be taking the hit. and others may not. it may not be noticeable in the index, for example, but it sure will be noticeable to some. >> susan, thank you very much. we may be moving to pennsylvania. >> you're welcome, love to have you. >> susan wapner with the university of pennsylvania's wharton school of business. unitedhealth expands its reach, it will buy the kidney care company davida for just under $5 billion, adding more than 300 clinics and urgent care centers in several stays. unitedhealth is off a fraction. davida took open, shares there at $69.20. madrigal pharmaceuticals said its experimental drug for treating a chronic liver disease that could lead to liver failure or cancer performed well during a study, when compared to a

placebo. shares of the biotech company skyrocketed 88% to $87.18. speaking of taxes, h amp r block reported stronger than examined revenue gains. the company's loss was also smaller than analysts expected. shares of h aefrp rchlt popped . brown-forman says strong sales the jack daniels whiskey and tequila helped overall revenue rise. the company is raising its full year earnings forecast. shares climbed 6% to close the day at $65.85. walmart is changing its official name in an effort to shift away from its brick and mortar image. the nation's largest retailer is dropping the hyphen and the word "stores" in its corporate name to bring attention to the importance of its e-commerce business. walmart shares fell fractionally to $97.28. morgan stanley says amazon

is a threat to dental suppliers henry stein and paterson, sighting amazon's entry into the dental supply market. the e-commerce giant has been buyi ss from another manufacturer. sh of henry shine fell 9%. paterson's shares were down 4% to $34.81. home depot is launching a $15 billion share buyback program. the nation's largest home improvement chain laid out its financial goals, saying it expects total sales in fiscal 2020 to reach $15 billion. home depot's shares finished the day down 1% to $180.80. package delivery delays already? that's what ups says is happening. and it is working to fix the problet back on schedule. morgan brennan reports. >> reporter: the good news. online holiday shopping is shaping up to be strong.

the bad news? that's already causing some delivery headaches. ups experiencing some service snags as a surge of packages floods its network. those, quote, unprecedented shipping volumes causing the company to add up to two days of time in transit on some deliveries. to counter, it has shifted more employees and resources to the biggie biggest markets and expects the issue to be resolved tomorrow. it speaks to the high stakes of the month-long peak shipping season. shippers handle staggering volumes under tight deadlines. >> the issue with peak volumes is you don't know where the volumes are going to pop up. they might be correct in predicting a 10 or 20% increase on a certain day. they're just not sure if that's going to come in pittsburgh, chicago, phoenix, seattle, or miami. >> reporter: ups expects to deliver 750 million packages that holiday season. fedex anticipates up to 400 million. the challenge, predicting where

the spikes in volume will occur. for the week of cyber monday, third party service tracker ship matrix says fedex had a better record of delivering packages on time than ups. neither is commenting on the data, but fedex says it's, quote, proud of the service so far, and that the company is well positioned to meet anticipated record demand. with 18 days until christmas, it is still early. especially since both companies have spent billions to bring on extra workers, more sorting space, and new planes. preparation that's taken all year just to be able to handle the holiday rush. for "nightly business repor coming up, why your neighb car dealer may be thin

bitcoin today broke above 13,000, less than 24 hours after topping 12,000. the digital currency now has a market value in total of more than $200 billion, more than twice that of goldman sachs. but it's that value that has the former chair of the federal reserve scratching his head. >> bitcoin is really a fascinating example of how human beings create value or estimate or judge value. and it's not always rational. you cannot tell me that you can create out of nothing something which has medium of exchange value. it is not a rational currency in that sense. but that does not mean it will not trade, because as long as people believe they can sell it to somebody else or unload it on somebody else, that's all you need to create a market.

>> greenspan also compared bitcoin to colonial american currency that eventually became worthless. after decades of selling millions of cars and trucks, local independent auto dealers are wondering about the future of their industry. car sharing, autonomous drive vehicles and other new technologies have some dealers saying it's time to get out of the business. here's phil lebeau. >> rep 62 years of selling cars in southern california, darryl holter's family is shifting gears. they recently sold some of their dealerships despite near record high auto sales. why? holter thinks auto dealers may not sell or service as many vehicles as ride share companies and autonomous drive vehicles become more popular. >> i think the customers, you know, will want to go in this direction. and it will move us away from being full service automotive providers from start to finish. >> reporter: there are more than

18,000 auto dealerships in the united states. with more than half of them owned by families or small private companies. for years, they've made healthy profits, primarily by servicing cars and trucks. but a firm that tracks the industry is seeing more independent auto dealers wondering if the future will be as profitable as cars and transportation services evolve. >> more and more dealers are saying, well, at those levels, it probably is time to exit rather than roll the dice for the next generation and have them have to handle potentially a lot of changes in the future. >> reporter: while large publicly traded dealership chains have added more stores in recent years, independent dealers like mark scarpelli in pop dealerships will not go m away and are ready to change with the times. >> we talk about autonomous cars, electric trifiction,

fossil fuels, interest rates. we're in the market we know. we're looking forward. >> reporter: another factor that could be leading some long time owners to sell their dealerships is the fact that the price of an auto dealership right now is at an all-time high. on average, they're selling for just under $17 million. phil lebeau, "nightly business chicago. >> i had no idea. >> $17 million, wow. >> wow. that does it for us tonight. i'm sue herera. thanks for watching. >> thanks from me as well. have a great evening, everybody. we'll see you back here for nbr have a great eveni

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