Nightly Business Report - Wednesday July 10 2013

7/28/2019 Nightly Business Report - Wednesday July 10 2013

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

(COMMERCIAL AD)

SUSIE GHARIB, NIGHTLY BUSINESS REPORT ANCHOR: Bernanke speaks andinvestors are listening. Late today, the Federal Reserve chairman says the economy still needshis help. And his comments could have a big impact on your money.


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TYLER MATHISEN, NIGHTLY BUSINESS REPORT ANCHOR: Summer camp formoguls, Sun Valley style. It`s where mega deals get done. And tonight, we`ll take you there andtell you what`s being discussed by some of the biggest names in media and technology.

GHARIB: And back to school. Yes, it`s July, and yes, retailers are starting their sales onnotebooks and pens -- and with good reason.

We have all that and more tonight on NIGHTLY BUSINESS REPORT for Wednesday,July 10th.

MATHISEN: And good evening, everyone.

A very busy news day, especially late in the day. If you thought the market`s fascinationwith the Federal Reserve and Chairman Ben Bernanke was over, you thought wrong.

Tonight, speaking to economists in Massachusetts, the chairman says the economy stillneeds help and the data show the Feds current accommodative policy is still needed for theforeseeable feature. On that news, bonds and sock futures rose and the dollar fell.

The market also twitched slightly earlier in the day when the Fed released its minutesfrom the June meeting. Those records show a much more sharply divided Fed than previouslythought. About half the officials thought the Fed could end it`s bond purchases by the end of theyear, and the other more accommodative half basically said not so fast. Let`s see what the datasay.

Here is what Ben Bernanke had to say on that tonight.

(BEGIN VIDEO CLIP)


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BEN BERNANKE, FEDERAL RESERVE CHAIRMAN: Both sides of our mandate,both the employment side and the inflation side, are saying that we need to be moreaccommodative.

(END VIDEO CLIP)

GHARIB: On Wall Street, investors mulled over those minutes, trying to figure out whatthe Fed`s next move might be and what they might mean for interest rates.

Now, those comments from Chairman Bernanke late today that we just told you aboutwill certainly set the tone of trading tomorrow.

Ahead of that, here`s how the markets closed today: the Dow lost eight points, theNASDAQ rose 16 and the S&P 500 edged up a fraction.

But there was more action in the oil markets. Crude prices spiked to a fresh 16-monthhigh shooting up nearly $3, to $106 a barrel.

The catalyst for the move, U.S. stockpiles of oil fell more than twice the amount thatanalysts expected.

And joining us now to talk more about the next move from the Fed and the economymore generally, Glen Hubbard, dean of Columbia University`s Business School, formereconomic advisor to President George W. Bush. And Mr. Hubbard is also author of the new andgroundbreaking book, "Balance:

The Economics of Great Powers From Ancient Rome to Modern America."

Mr. Hubbard, welcome.

GLENN HUBBARD, COLUMBIA BUSINESS SCHOOL DEAN: Thank you.


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MATHISEN: There`s a lot going on here this evening. You saw the open of theprogram.

My question for you is: if you were sitting on the Fed`s governing board, the open marketcommittee, how would you have approached the discussion about continuing quantitativeeasing?

HUBBARD: Well, I certainly agree with Chairman Bernanke that the economy`srecovery is not vigorous. I don`t think that`s much in doubt.

The real question is whether quantitative easing, continuing it is going to help that much.I`m rather doubtful and I think it still leaves great risk.

On top of that, the Fed`s communication certainly lately leaves something to be desired.

GHARIB: Glenn, nice to have you on the program, especially on a night like tonight.Tell us, you say there are risks off continuing quantitative easing -- what are some of the

unintended consequences here?

HUBBARD: Well, I think some of the risks have to do with misallocating capital. Andcapital markets are having such low levels of interest rates and then the expanded balance sheetfor such a long period of time.

The other is the risk for what happens when the Fed exits, the need for more clarity onwhat an exit strategy is.

MATHISEN: Do you think quantitative easing, the bond-buying that the Fed hasengaged in, very unconventional monetary policy, do you think it`s helped really at all? Has itcreated jobs? Has it brought interest rates down, mortgage rates down? And has that helped theeconomy?


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HUBBARD: It certainly brought longer-term interest rates down. But the Fed`s ownstudies would suggest that incremental quantitative easing is unlikely to have a very large effecton the macro economy.

What the economy really needs is an improvement on business confidence that couldprobably come more from better fiscal policy than monetary policy.

GHARIB: So, there`s really not much more the Fed can do? Is that what you`re saying,the rest of it has to come from Washington?

HUBBARD: I think, really, it s the -- removing the gridlock and fiscal policy is moreimportant than what the Fed can do.

GHARIB: Well, let me -- just a second, Tyler.

MATHISEN: Sure.

GHARIB: Sorry on jump on you.

But, you know, your book is talking about financial imbalances. So -- and a lot of it hasto do, you say, over history of politics.

HUBBARD: Right.

GHARIB: So, what are the pitfalls here? It seems like we`re at an inflection point wherethis knowledge of history might be helpful.


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HUBBARD: Well, I think we are. The point that`s made in the book is that whenpolitics doesn`t keep up with economics, great powers stumble.

And in the case of the U.S., it`s the very large debt build up, and the fact that our politicalinstitutions don`t seem to be able to control it.

We do have to make some change, if we want America to remain on top of the economicpower list.

MATHISEN: Why do you think the political system not been able to keep on top of thefiscal situation? Isn`t that their job?

HUBBARD: Yes.

MATHISEN: Wasn`t that your job in part when you`re working in the White House?

HUBBARD: It`s definitely the job. The problem is that our budget rules were built for aperiod when big movements in debt were about war and peace. Now, they`re really aboutentitlements that aren`t even on the budget. We have to change our rules, our processes.

GHARIB: All right. So, I want to ask you about succession at the Fed because there`sbeen a lot of guessing of who it might be -- Larry Summers, Janet Yellen, these are the namesthat are coming up.

First of all, do you think there is going to be a change at the top of the Fed and who mightit be?

HUBBARD: Well, that`s certainly up to President Obama. I think Ben Bernanke hasdone a very good job at the Federal Reserve. If the president were to choose someone else, hecertainly has a number of very good names from which to choose. The real question for whoeverthe chairman is, is what will be his or her view of the economy, and his or her exit strategy fromthe current policy.


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MATHISEN: One very quick final question, do you think the economy will strengthenin the second half of the year or not?

HUBBARD: I don`t see markets strengthening in the second half of the year. I see acontinued muddling recovery, to be honest.

MATHISEN: Mr. Hubbard, thank you and congratulations on your book.

HUBBARD: My pleasure.

MATHISEN: Appreciate you being with us.

Glenn Hubbard is dean of Columbia University`s Business School.

GHARIB: Well, one thing the Fed keeps a very close eye on is housing.

And today, just as mortgage rates hit a two-year high, applications for new mortgages has fell by4 percent. And it`s those rising mortgage rates that s creating sticker shock for homebuyers.

Diana Olick has that story.

(BEGIN VIDEOTAPE)

DIANA OLICK, NIGHTLY BUSINESS REPORT CORRESPONDENT: At a broker`sopen house in northern Virginia -- agents are sizing up this single family home and recalculatingwhat their clients can pay now that mortgage rates are far higher than they were just six weeksago.


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RUTH GRIEL, PROSPERITY MORTGAGE: It has gotten a lot quieter, which is ashame because historically, the rates are still very low.

TIMOTHY LANDIS, CODWELL BANKER: Some people say, well, it`s going to reallycut down on business because people are now going to say, hey, I missed the boat. I`m going tohold off. I`m not going to go out and purchase.

OLICK: Mortgage rates are now a full percentage point higher than they were in earlyMay. But it`s not so much the rate which is still historically low, it`s the sharp jump.

MARK HANSON, MORTGAGE ANALYST: We had this spark happen, 45 percent

jump in mortgage rates, from 3.5 to 5, over the period of six weeks. I can find no precedent forthat. The only precedent I can find for that is the loss of the homebuyer tax credit in mid-2010.

OLICK: That stimulus which Hanson calls small compared to the government-induced 31/2 percent mortgage rate caused a huge drop off in sales of new and existing homes when itexpired. New home sales fell 38 percent in a single month in the spring of 2010.

HANSON: My biggest concern is we`re just not going to have demand anywhere

remotely close to what we had three months ago, 12 months ago, when this super Fed stimuluswas in place.

OLICK: Compounding the rate shock is sticker shock in home prices, as very tightsupply has buyers out bidding each other.

JAMAAL CAREY: I think that it s been a lot of pimped up demand from buyers who

want to buy right now, plus the rates going up that the buyers, they want to act right now.

OLICK (on camera): The question is, how long will that last? In May, we did see a rushto buy as rates started going higher. Signed contracts hit a six-year high. But that was before therecent spike and while rates at 5 percent or 6 percent are not historically high, it was the spikethat spooked the market and for consumers, 3.5 percent had become the new normal.


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For NIGHTLY BUSINESS REPORT, I`m Diana Olick in Washington.

(END VIDEOTAPE)

MATHISEN: For more on the impact of rising mortgage rates on the housing recovery,log on to our Web site, NBR.com.

GHARIB: A big set back for Apple (NASDAQ:AAPL) today. A federal judge in NewYork ruled that Apple (NASDAQ:AAPL) conspired to raise the prices of e-books. She came

down hard on Apple (NASDAQ:AAPL), saying the company not only colluded with five majorpublishing houses to take on Amazon`s lock on electronic book sales, but it masterminded thestrategy.

According to the ruling, Apple (NASDAQ:AAPL) encouraged publishers to jack up prices 50percent or more virtually overnight, as a way to break Amazon`s super low $9.99 book prices.

Apple (NASDAQ:AAPL) insists it did nothing wrong and will appeal the ruling.

MATHISEN: Apple (NASDAQ:AAPL) is also facing a ban of some of its top-sellinggadgets slated to begin on August 5th. Apple (NASDAQ:AAPL) is asking the U.S. InternationalTrade Commission to lift the ban imposed on certain iPhone and iPad models pending its appealof another case the company recent lost.

Last month, the ITC halted the future U.S. sales of iPhone 4 and iPad

2 3G in a ruling that Apple (NASDAQ:AAPL) infringed on a patent owned by rival SamsungElectronics, found in technology on those two devices.

GHARIB: The Tribune Company wants to split into two companies. It plans to separateits newspaper publishing business, which includes big dailies like "The Los Angeles Times" and"The Chicago Tribune", from its more profitable broadcasting division. It`s similar to the split atNews Corp (NASDAQ:NWS). Just last week, that media giant spun off its 21st Century Foxmovie and entertainment unit into a separately traded company.


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MATHISEN: Some of the biggest names in media and technology, sports, venturecapital, they gather out in Sun Valley, Idaho, for the annual Allen & Company Conference.That`s where some big deals have been made in the past like the Time Warner(NYSE:TWX)/AOL (NYSE:AOL) merger in 1999.

And Julia Boorstin shows us what big deals some of those participants may be workingon right now.

(BEGIN VIDEOTAPE)

JULIA BOORSTIN, NIGHTLY BUSINESS REPORT CORRESPONDENT (voice-over):

The Allen & Company Conference is nicknamed "Summer Camp for Moguls", with big nameslike News Corp`s Rupert Murdoch, Time Warner`s Jeff Bewkes, Amazon`s Jeff Bezos, evenWarren Buffet. The gathering of about 300 media and the tech CEOs, startup founders andinvestors, includes off the record panels on topics including education and cyber security.

And speakers such as Facebook (NASDAQ:FB) COO Sheryl Sandberg and IAC`s Barry

Diller. And in the halls of the lodge, everyone is talking about the economy.

RONALD OLSON, BERKSHIRE HATHAWAY DIRECTOR: My outlook on theeconomy is hopeful.

TOM STAGGS, WALT DISNEY PARKS AND RESORTS CHMN: Europe has beentough, as everybody knows, and there have been some signs of life here in the United States and

we hope that it can continue.

BOORSTIN (on camera): With Sun Valley`s track record for mega deals, now, everyoneis watching Hulu`s billion-dollar sale and all the major players are here. News Corp(NASDAQ:NWS) and Disney (NYSE:DIS) are in talks with Direct TV and Hollywood veteranPeter Chernin, as well as Time Warner (NYSE:TWX) Cable.


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DAVID ZASLAV, DISCOVERY COMMUNICATIONS PRES. & CEO: Clearly, we`regoing to see something with Hulu, because they are in play. I`d like to see Hulu get acquired bysomebody so that it creates another competitor to Netflix (NASDAQ:NFLX) and Amazon(NASDAQ:AMZN). Hulu is a great platform, very strong. The more people that want ourcontent, the better.

BOORSTIN: Since Rupert Murdoch`s News Corp (NASDAQ:NWS) is sitting on

$2.6 billion-dollar in cash and there are reports Sony`s CEO Kazuo Hirai will spin off thecompany`s entertainment division, attendees here like BET founder Robert Johnson anticipate asurge of deals.

ROBERT L. JOHNSON, RJL INDUSTRIES FOUNDER & CHMN: There is plenty ofcash out there circulating. And the question is, what s the best deal you could find in amarketplace like this? I think digital is a growth spot.

BOORSTIN: That digital growth means more digital CEOs here, like Twitter CEO DickCostolo and Jack Dorsey, Twitter`s cofounder and CEO of mobile payments company, Square.Both of which would be the next mega IPO or acquisition.

The conference also introduces media moguls to less familiar startups like Pinterest`s BenSilbermann and Nicholas Woodman, the CEO of wearables camera company, Go Pro.

With so many deep pockets, we`re watching for deals.

For NIGHTLY BUSINESS REPORT, I`m Julia Boorstin, in Sun Valley, Idaho.

(END VIDEOTAPE)

GHARIB: Still ahead, how much does the U.S. need China and China need us? We`lllook at the economic ties that bind the world`s two largest economies.


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But, first, here`s a look at the closing numbers for the international markets.

(MUSIC)

MATHISEN: A major ruling by Wall Street regulators. For the first time ever, hedgefunds will be allowed to start advertising. The Securities and Exchange Commission voted to liftthe decades long ban on hedge funds marketing, which investments they are putting their moneyinto.

GHARIB: Also in Washington, the Senate today failed to pass a plan aimed at restoringlower interest rates on subsidized student loans. One week after the inaction by the Senatecaused rates on new Stafford loans to double, the Senate voted down a measure to return rates to3.4 percent for another year.

Their hurdle: a competing plan that would link student loan rates to the benchmarkTreasury rate.

MATHISEN: Chief executive of the pork producer Smithfield Foods

(NYSE:SFD) got a grilling from members of the Senate today over the proposed acquisition ofhis company by China`s Shuanghui International.

Lawmakers wanted answers on the safety of the U.S. food supply and what foreign ownership ofthe world`s biggest pork producer would mean to workers and to the U.S.

CEO Larry Pope told the Senate subcommittee what he thinks the takeover is all about.

(BEGIN VIDEO CLIP)

LARRY POPE, SMITHFIELD FOODS CEO: This transaction is about exporting highquality meat from the U.S. to China to meet their growing demand.


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This combination will not result in any U.S. imports of food from China.

(END VIDEO CLIP)

MATHISEN: The deal would be the biggest takeover ever of a U.S.

company by a Chinese concern.

GHARIB: A troubling sign of a possible slow down in China s red hot economy today.Chinese trade data for June fell sharply. Chinese made exports fell more than 3 percentcompared with the same a month a year earlier, and imports into the Asian nation were down, as

well. Both measures were well below forecast.

MATHISEN: Meantime, the U.S. and China opening talks in Washington today at theannual strategic and economic dialogue aimed at building cooperation between the world`s twobiggest economies. Among the attendees representing the U.S.: Secretary of State John Kerry,Treasury Secretary Jack Lew and Vice President Joe Biden.

GHARIB: Maintaining an open dialogue between the U.S. and China is more important

than ever as the world`s two biggest economies increasingly rely on each other despite theirdifferences.

Eunice Yoon shows us just how much the two countries have become so closelyconnected.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Grab a handful.

UNIDENTIFIED MALE: Yes, grab us a handful, come on. Get some.


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EUNICE YOON, NIGHTLY BUSINESS REPORT CORRESPONDENT (voice-over):When the U.S. ambassador in Beijing takes time off his diplomatic duty to market importedAmerican cherries to hungry Chinese at a Sam`s Club, it`s clear -- China is important toAmerica.

GARY LOCKE, U.S. AMBASSADOR TO CHINA: More interaction between all of ourpeople at every stage, from academia to students, to scientists and policymakers, business peopleis critical.

YOON: The two largest economies depend on each other and are trying to reboot ties.Nearly a fifth of China`s exports go to the U.S. while American exports to China have jumped

nearly six-fold since Beijing joined the World Trade Organization over a decade ago.

Yet, the two do as much bickering as trading, arguing over market access, foreign policyand industrial espionage.

JON HUNTSMAN, JR., FORMER U.S. AMBASSADOR TO CHINA: When it comesto theft of the commercial intellectual property, that is a huge problem, and it is one where Chinais clearly culpable.

JIA XIUDONG, FORMER CHINA EMBASSY OFFICER IN WASHINGTON, D.C.:Many people here in China believe that the United States may like to -- may try block thedevelopment of China. So that`s why we see this kind of mistrust, a deep-seated mistrust.

YOON: Even though China is growing in strength, it relies on the U.S.

for growth, jobs and investment.

This Chinese auto parts maker sends 3/4 of its exports to America.


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(on camera): Almost all of these car parts were made for American companies and theyare shipped out every single day.

"We want more Americans to buy our products," this factory worker says. "The moreour company earns, the more money we make."

And the more American goods Chinese will be able to afford.

For NIGHTLY BUSINESS REPORT, I`m Eunice Yoon.

(END VIDEOTAPE)

GHARIB: And an American company with big business in China leads our "MarketFocus" tonight. Yum Brands (NYSE:YUM) reporting sales in China tumbles 20 percent becauseof the Avian flu scare. Yum operates KFC, Taco Bell, and Pizza Hut. The company sees thoseChina numbers turning around in the fourth quarter. Despite all of that, quarterly profits did beatanalysts` estimates. Shares of Yum have drifted lower during the trading day and then poppedslightly in after-hours trading.

Yum Brands (NYSE:YUM) closed at $72.36.

Hewlett-Packard (NYSE:HPQ) led the Dow gainers today, thanks to a new buy ratingfrom Citi Investment Research. The analyst doubled the price target to $32 a share and increasedearnings estimates, saying cost cutting will boost profits. HP jumped almost 2 percent on triplethe volume, at $25.93, setting an 18-month high.

MATHISEN: Family Dollar led the S&P 500 winners, reporting profits that topestimates, and expects full year same store sales to increase by 3 percent to 4 percent. Now,Family Dollar CEO Howard Levine said customers will continue to face financial headwinds andthat might actually help his business. Still, investors crowded into the stock, more than eighttimes normal trading volume today. Shares up more 7 percent.


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And Pharmacyclics (NASDAQ:PCYC) submits a promising lymphoma and leukemiatreatment for FDA approval. Earlier in the year, FDA granted breakthrough status to thetreatment, which should mean a quicker approval process. Johnson Research and Development,a Johnson and Johnson company, is a partner in that treatment.

Meanwhile, shares of Pharmacyclics (NASDAQ:PCYC) jumped almost 12 percent, toclose at $100.26. Johnson & Johnson (NYSE:JNJ) fractionally higher.

GHARIB: Meanwhile, investors continue to pull out money from bond funds, but thewithdrawals are slowing down. The Investment Company Institute or ICI, which tracks thenumbers, said today, $5 billion came out of bond funds last week, compared to $28 billion in theprevious week.

Here to put these numbers into perspective is Brian Reid, ICI`s chief economist.

So, Brian, do put them in prospective. And also, given what you heard from ChairmanBernanke at the top of our program, do you think investors are going to continue to withdrawmoney out of bond funds, or is this pretty much it?

BRIAN REID, ICI CHIEF ECONOMIST: Well, you know, this is a pretty typicalresponse in the part of investors to begin pull money out when interest rates begin to rise. And Ithink, you know, what Chairman Bernanke said today indicated that, you know, as the economycontinue to improve, even though they`re going to continue to have a very accommodativemonetary policy, they will continue to factor in the improving economy and future decisions.And so, I think the market is factoring that in right now.

What we`re seeing here is pretty typical of what we saw coming out of, let`s say, the1990s recession, early in 1990s, and the early 2000s, where interest rates rose, the bond fund

investors continued to pull money out over an extended period of time.

MATHISEN: There`s been a lot of talk, Brian, about the great rotation of money out ofbond funds and into equity funds. Are you seeing that or is the money that`s coming out of bondfunds just going into cash, in the money funds and sitting there waiting until investors feel moreconfident?


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REID: Yes, we`re seeing about half of it going into money fund by the looks of it. Andso, it looks like investors are kind of stepping on the sidelines. Inflows into domestic stock fundsthat are, you know, invested in companies here in the U.S. continue to have outflows last weekand what we`re seeing money coming into international equity funds, those funds have beenhaving inflows for, you know, several years now.

So, by and large, it looks like investors are kind of just stepping aside and it`s not reallytoo surprising given that we`ve had this, you know, incredible bond market rally that investors,some investors are going to step aside, even though 98 percent of the assets that are in bondfunds have stayed there through this pretty incredible run-up in interest rates.

GHARIB: Can you read all of the numbers and give us your take on investor sentiments?So, they are holding onto the cash, but what more can you tell us about how they feel aboutjumping in into some kind of investment?

REID: Yes. I think, you know, investors generally -- you know, one of the things thatstrikes me over and over again is how really resilient they are. You look at the -- you know,nearly $15 trillion we have invested in mutual funds and ETFs, the flows that we`re talking abouthere for bond funds, for equity funds, are, you know, fractions of a percent.

Sometimes, you know, they accumulate to 2 percent like they have since the end of May.

But, generally, investors are very resilient and understand that, you know, markets dofluctuate. And so, I think, you know, we ll continue to see good inflows into sectors that we hadbeen seeing for a while. I think that`s just the testament to strong investor sentiment.

GHARIB: All right. Let`s leave it there.

Brian, thank you so much. Brian Reid, chief economist at the Investment CompanyInstitute.

REID: Thank you.


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MATHISEN: And coming up, beaches, barbecues and back to school? Yes, retailers arealready starting to push deals on things like notebooks, pens, erasers, clothing and more. Andthere is a big reason why.

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

(MUSIC)

MATHISEN: And, finally, tonight, the calendar may say early July but for big retailers,

it looks like late August, or early September. Like it or not, back to school sales are alreadyhere, and according to those stores, with good reason.

Courtney Reagan has the details.

(BEGIN VIDEOTAPE)

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

While kids in some parts of the country just got out of the classroom for summer vacation, othersare heading back in a few weeks and they`ll need some new clothes and fresh school supplies.

So, the retailers are rolling out back-to-school promotions, though the 4th of Julyfireworks are hardly in the rearview mirror.

DEMO PARNEROS, STAPLES PRES.: Customers say they want an early jump on this.They want to start and do their back to school shopping several weeks before the studentsactually go back. And honestly, many parts of the country, students go back first week ofAugust, in some cases actually in late July.


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UNIDENTIFIED FEMALE: But I like coming here, though, actually because they havethe big signs that say like this is cheaper than the one next to it and it`s really actually kind ofhandy.

UNIDENTIFIED FEMALE: I`m always looking for coupons, but I usually do back toschool shopping towards the end of the school year, way before the back to school starts.

UNIDENTIFIED FEMALE: Here you can actually go online, find it and reserve it at astore and then go pick it up.

REAGAN: There is a lot at stake for back to sale. Its retail`s second most important

selling period, often setting the tone for the all- important holiday season. More than $84 billionwas spent during the seven-week period in 2012.

Due to improving economic condition and consumer confidence, ShopperTrak estimatesboth sales and foot traffic will increase this year during back to school shopping. Well, it`sinevitable that children grow and pencils wear down. Back to school isn`t always a slam dunkfor retailers.

(on camera): Shoppers don`t often care what brand of school supplies they buy. So,retailers have to compete on price, further pressuring margins. This week, Staples(NASDAQ:SPLS) is offering packs of pens, erasers and index cards for just a penny.

PARNEROS: They are traffic drivers. We want to win the customer s trip to our store.Our hope is that customers will come in, experience our stores, love the assortment, and buy alittle bit more than just those items.

REAGAN: Neon-colored supplies and clothes will be big with kids this year. An onlineprice and product comparison shopping is bigger than ever with parents.

While clothes shopping tends to happen later in the season, a number of analysts projectMacy`s (NYSE:M) will be a top destination for back to school shoppers, along with big boxretailers Walmart and Target (NYSE:TGT).


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For NIGHTLY BUSINESS REPORT, I`m Courtney Reagan in New York City.

(END VIDEOTAPE)

MATHISEN: Back to our top story, Mr. Bernanke speaking in Massachusetts thisevening, seemingly taking a more accommodative stance.

But also, based on those minutes, presiding over a more divided Fed open market committeethan we thought.

GHARIB: Big, intensive debate. And tomorrow, it would be interesting how it plays outin the market.

MATHISEN: Absolutely. Much to watch.

GHARIB: And we`ll be watching all of that.

So, join us again tomorrow night. But that`s it for NIGHTLY BUSINESS REPORTtonight. I`m Susie Gharib. Thanks for watching.

MATHISEN: And I`m Tyler Mathisen. Thanks from me as well. Have a great evening,everybody. We`ll see you back here tomorrow evening.

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 notnecessarily represent the views of Nightly Business Report, or CNBC, Inc. Information


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presented 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 10 2013

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