> announcer: this "nightly business report" with bil ll griffith and sue herrerra. >> volatility. shouldnvestors expect the same in the second. movement of u.s. products as tension he escalates. >> those stories and more tonight on "nightly business report" for friday, june 29. we do bid you good friday , eveninverybody. stocks get a lift as we close out the week, the month, the a

quart the first half of this year. the market was helped by a big move higher in down component nike following that strong earnings report that we told y about last night. at its peak today, the dow was up 293 points, b that rally fizzled as the closing bell approached this afternoon. when all was said and ned the dow gained just 55 points to 7 21. the nasdaq was up six, the s&p rows by two. and for the week, the index was all lower. so a choppy six months on wall street, to say the least. we loo what defined that first half and what may lie ahead for the second. >> stocks worked their way to in modest g in the first half of 2018, but they did it the hard way.bi theest january surge in three decades gave way to a swift drop in february for the s&p 500in x. the brand market has been

recovering in achoppy fitful pattern, finishing with a bit gain of .2%. a rise in interest rates to -y mular highs. a spur in oil prices and a threat of tariffs with america's trading partners. these headwinds slowed the indexes after a very s20ong but didn't stop them. that's thanks to a pickup in ec u.s.nomic growth, strong consumer spending and record corporate profit in part due to the december tax cut package. in these opposing currents, some areas of the market have thrived while others have struggled. it means the clear leaders driving the nasdaq at nearly a 9% gain. energy came to life climbing by almost 6% and small companies lped by the haven of a trade war. on the down side, big industrial stocks suffered from the heat or de rhetoric slipping some 4%

and pressuring the dow jonestr indual average to a slim 1% loss for the first half. and capnsumer ses went to a steady percent of a steady company. deether the tr issue nears some resolution and how much economic and corporate profit growtwmight slow rd year end. history shows the midterm election years are often choppy for stocks through the summer, which is yet another complication. but with them set to rise to 20% in the coming year, wall street's polls are betting that busineus conditions are dy enough to absorb some more political noise and perhaps even two more rate hikes from the feds. for "nightly business report," i'm mike osai. >> let's talk a little more about the second half with chrisina hooper, global market strategist at invesco. good to see you, christina.

welcome back. >> good to see u. thank you. >> will the second half of the year be marked by the type of disruption and olatility that's been characteristic of the first half? >> absolutely. i thinke't's very likely going to see that because we have the same drivers in place. specifically monetary policy is being unwound. and this isn't just ordinary monetar t policy,s is experimental monetary policy. so unwinding is an experiment in and of itself. what i think is going to happen is we'll seed continue normalization of capital markets as we normalize that monetary policy. >> you also se higher prices, you see a little slower growth. is it enough that you would tl investors to start thinking about investing in traditional inflation hedges? >> traditional inflation hedges hould always be part of an investor's portfolio. so if it isn't, they should include it in there. there is a wide array of options from commodies to

nflation securitie to income-producing areas like dividends which have historically held up well in rising inflation environments. a so there ot of options to choose from. >> what about going lobally, christina? in the u.s. we expect growth to slow a little bit,r ainly, but the trajectory is still higher. what about investingutside the united states? >> well, if you were to have infested outside the u.s. the first half of this year, you would have been disappointed relative to th u.s. it's traditionally a sea of red from year to dag. but havsaid that, there are different drivers in different markets, so it makes sense well diversified. yesterday's winners may not be tomorrow's winners, so we need to hedge our bets about diversification. >> christina, thank you so much as always, christina hooper with invesco. bill? >> thndk you. >> on the last day of this first half, a new report shows inflationas in fact hit the feds' target of 2%, the first time the so-called psc index,

which is inflation gauge, first time it hit that amount in six years. it had moderation of consumer spen spending, though. a 2% growth last month. that was below expectation and consumer spending is watched becaus does account for more than two-thirds ofo u.s. ecic activity. according to the university of michigan inde americans a feeling better about the current state of the economy. but details of that report were mixed. americans expectations about the future with many citing trade and tariff concerns. >> and those trad kengtensions e ratcheted up today when canada said it was moving ahead with on tariffs u.s. products. taylor is in washington for us tonight. >> reporter: one month after ariffs were put on steal and aluminum in the u.s.,ad c

said they were striking back. >> we are acting very much on being thorough, not in anger. >> starting sunday, u.s. ketchup, candy and toilet paper as well assteal anel and alumin will see new tariffs fr politically sensitive states like pennsylvania and kentucky. this year top uls uthe u.s. tra official called it unjustified, showing blatancy for the rules. the president thinks they are warranted, but due to disdain ganization, they sa they will move to withdraw.

even larry cud lkudlow, white h advis adviser, has raised doubts. >> the world trade organization, for example, has become mpletely infeeffectual, companies don't abide by them. >> tariffs areainful now, but president trump says they're working. >> countries now re negotiating. they were never doing that. now they say, please, please, we want to negotiate. >> that strategy will be tested next weet neek the u.s. will add new fees on $33 billion of chinese ports and chinaill add new tariffs in return. they a t telling business expect those to go into effect barring any last-minute deals. i'm taylor koushi in washington.

some tariffs being onsidered by the trump administration could lead to a, quote, smaller gm. the automaker also said the xpense of tariffs risked isolating the company from the global market in may they launched an investation into wheth imported vehicles launch aid national security .thre they were down 2.5% in today's session. > mexican voters are headed to the poll this sunday for an election that could shi a political paradigm in that country, and the results could have far-reaching preliminary indications for trade and business as well here in the u.s. michelle cabrera has more for us. >> it could be manuel ladore. he's run forresident befor and he's way out ahead in the polls. he's hitorically known as a

radical leftist. sometimes he's compared to hugo chavez. this time he's much more to the center, even though he's t lleaning in his economics, right-leaning in his social policies. some in the administration had been worried about his rise to power and had tried to push for nafta to be renegotiated before th t election becausey thought it might be tougher to get a deal done with anlo in power. there is some thinking, however, that maybe it might actually be easier to get a deal done. he's ry much a nationalist and maybe the president might rctually like him a little more than the currentident of mexico. additionally, the u.s. would like mexico to raise wages. right now manufacturing jobs down there pay only $4 an hour coared to $39 an hour here in the united states, and that's why so many companies often move their businesses down,the at least their manufacturing jobs down there. anlo prettymuch agrees we should just go up. so maybe there is someplace to

find consensus there in away that previously hadn't been thought. still, there is a long way to go before the n naftaotiations are done. for ly"night business report," michelle brcra. it's time to take a look at upgrades and downgrades. walgreen's was don. they have new competition from amazon. that, the analyst says, could weigh on future earnings. the stock price is $60. the stock rose a fraction to 62. erweight maintains an rating on that stock, and it rallied to 70%, to 79.68. a different analyst c the rating of shares risen to about 19% in the last year.

nthe firm alsotes the potential for some brands to face challenges in case of a global trade war breaking out. t stockose one penny today, to $144 a a penny. the analyst at bank of america says concerns surrounding the homebuilding ector are overblown. price target $3300. that stock rows $27.24. still ahead, fire sa by the young california canabis history is offering a deep to discoun its customers.

♪ california has now passed the strictest on-line privacy law in the country. this lawmives conss sweeping control over their personal data and grants them the right to know what information companies like facebook and google are collecting on them. the law tals effekes effect in . also in california, new laws governorarning the cannabis industry take effect this weeken a. that mea lot of businesses are scrambling to sell inventorn that wt meet those requirements. a aditi roy in california. >> the lines are long because n the disc are deep. some cannabis up to 80% off. >> cdc used to be 20 to $30. green croas it over here for $5 an theig which is way better. it's not hurting my pocket.

>> reporter: the reason? tsix months after thete of california legalized recreational marijuana, new regulations are scheduled to take effect,july 1st which require all cannabis products on store shelves undergo extensive lab testing for potency. so pot growers are unloading their inventory before it becomes illegal. they slash prices as low as possible so they won't have to toss out the pot. >> there are lines going out the dooand down the sidewalk. it's like it's 4/20 every single day. >> but labs at test clinics are busy, too. >> we've seen a tenfold ncrease. >> the new testing requirements bs creating a backlog at l like steve hill in berkeley. it's one of 31 testing labs in s california, ate with over 400 licesed retailers.

chief officer daniels say he doesn't expect it to lighten up any time soon, so they're moving into a bigger building. >> sales are like a hockey stick right now, and we expect that ntinue.o cannabis is here to stay. the genie is out of the bottle, so we're moving into)every legl jurisdiction and internationally as well. >> reporter: other labs are experiencing turnaround. raed says the lab he works with is taking sev days longer to get his weed back to him, forcing him to leave inventory in quarantine while he waits for the test results. while he waits, worries. c we're going to have a lot of empty shelvesme july 1st, and we're going to do what we can to get those shelves full again as quickly as po>>ible. reporter: some in the industry worry that this latest set of regulations willdry out some of the mom and pop retailers and lead to gger, more corporate names driving

california's marijuana market. for "ghtly business report," i'm aditi roy, berkely, california. a buzzkill for the maker of corona beer an that's where we begin our market focus. profit was below expectations. freight costs coupled with a rising dollar pressured its oper ing marginsnd marketing expenses were also higher. shares sell at more than 5.5% as a resultf it. ceo deutsche bank said he remains committed to his unit aside from failing the unit's stress test. he said he is confident that the bank is on the right path. >> we see the progress. but we also are aware that more needs to be done. that is all in the plan, and e therefowe are confident we'll get over this in the next 12 months. >> deutsche bank m rosere than 1% today, to $10.62.>>

the gilliad sciences won an award for their cancer sciences. the european commissi has the final say before those medicines can be sold. novartis gained more than 3%.a gilliad ss were also higher. ebriar blew past estimates for the second straight quarter. t equipment supplier reported a rise in orders that helped tho sg demand for its rail cars. it went to from $2.50 to 75 in a year. his fund is up 14% so far this year, easily outping the broader market. we welcome back steven deniclio.

these midcaps now, i keep hearing people are expecting the small caps and the mid caps to outperform in the second half. he large caps have become too expensive. trade worries, all those things. is that what you're looking at here as well?ri >>ht. well, actually, i think the appropriate way to look at it is no much small versus mid versus large, but actually valus s growth. right now we're coming off 7 -- d this is the last day of the second quarter from a trading perspective. we're comingf seven consecutive quarters at accelerating gdp on a year over year rate. we've not had that kind of growth before. it only happened one other time since 1940.ry eving has won. we've had low volatility, high growth and anccelerating economy. while we don't think the economy is necesg,arily slowit's still going to be good. that rate of change is going to slow.go meaning we'reng to be getting better but at a slower

rate. in that environment, coupled with higher interest rates, typically growth stocks you don't need to worry about who is president, trade wars, interest rates, what's going on in government. these are companies that are creating their own innovative slu elping customers make money and improve their own. >> you gave us three picks. i don't know if i'm going to pnounce this correctly but it's a play on the electric vehicle growth. alb, albomoro? >> we are on the brink of electric vehicles. electric vehicles, with the exception of tesla,re only 1% overall new car sales in the d. wo we think that 1% will go to 10 e to 12% in th five to seven years. electric car sales globally are inp 50% 2018. you're going to need a lot of lithium.

right now there is this narrative on wall street that says lithium is oversupplied. we don't think that's the case. this is a special kind of material, not a commodity. alb the most profitable to invest in electric cars today. similar inbusiness model, you have tyler technologies and viva systems. sort of like sales force, huh? >> absolutely like sales force. the comparison beten the two is they make governments and life sciences cpanies more efficient. they make their sales profits better and more efficient. both companies have very high customer retention rates and very high recurring revenue. so again, in this volatile time, and look, 2018 is already twice as volatile as saw in 2017. you're going to need companies tha have high recurring revenue and good line of sight into growth. >> very good. steven deniclio with coupling

funds. good to see you. u. good to see and a rising in the sky is causinme to get on the ground. ♪ the president's new tax law was passed six months ago ,toda and today the irs unveiled a draft of a revamped 1040 tax form, and yes, it really ishe size of a postcard. the agencies claim that the new form will streamline the tax filing process for more than 150 million people next year. one thing, though, the irs says nearly 90% ofmericans filed on line this year.

citigroup willndref more than $300 million to credit card customers. ose customers may have been overpaying interest on their credit cards. the settlementth the consumer financial protection bureau will refund more than 1.7 million customers. earlier this year, citi d discloit had used a flawed methodology when determining which customers were eligible for a rate reduction. well, a part of toy history is now gone. the last of the remaining toys r us stores are closing their doors for good this wee as you know, the once popular toy chain filed for bankruptcy back in se and today a simple message was posted on toys r us website that read, don't ever grow up. play on. are you tired of getting stuck in traffic heading to that resort town maybe for this weekend's getaway? helicopters haeen the desired mode of transport for several years now, and they're

now swarming at rich beach towns around the country. new technolgy making it easier and cheaper to book, andat th yuld mean less headaches for residents in thears to come. robert frank is in new york for the battle brewing over helicopters. >> reporter: it's a picture perct day here in th hamptons, which means cocktail paties and noisy helicopters.ss the busineof ride sharing in the sky has exploded across the country as companies make booking a seat onpe a chop as easy as booking on uber. here in the hamptons, the pioneer. offering seats for $700 from t manhattan tohe hamptons, turning a three tofour-hour wait in traffic to quick 40-minute chopper ride. this summer a new competitor h landed. blackbird. founded by a techeuropntreprene they are more like a seat in the sky. they already he more than

100,000 people on their app and they've flown 4,000 people to the hamptons just since memorial day. we booked a flight today on blackbird and flew on a called fox trot. we are just landing in east hampton 42 minutes after takeoff from manhattan. >> we are like airbnb for flights. most private flights only have about 16% occupancy on those flights. tons of open seats. those ring together all flights for people to book. >> reporter: david said w technology could make that ride even cheaper. perhaps in ten years the ride from manhattan to east hamptonu be as low as $50. but would make traveling to retreats like this one even noisier. last summer there were more than 6,000 helicopter takeoffs and landings from thismall airport. on average that amounts to

several landings a day. >> it's loud. it's distracting. you could be on the phone. you could be eating. you could be having a meal with friends. you could be sittingn the deck just enjoying the peace and quiet in your home, and it's constantly tdisru. >> they say they're trying to buy quieter aircraft and trying toead out the traffic in the airport. but there is on one pla land in the hamptons. they are threatening to shut down the eerport in th years if things don't improve. mp to hamptonites also complained that the choppers a bringing in the riff raff that don't respect the community. but hard to imagine that someone paying $700 for a chopper ride can be considered riff raff.

before we go, let's take a look at the final day on wall street. nasdaq up 6, the s&p was up 2. it was the wost first half for the dow since 2010 by being down nearly 2%. the nasdaq had its seventh first half gain in the last eight years, and the s&p, first hah s been positive now for the last eight years. >> wow. >> pretty good. >> pretty good indeed. that will do it for us tonight. thanks for joining us. i'm sue herrera. >> i bill griffeth. have a wonderful weekend. see youy.mond ♪

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