>> tom: as the clock counts down to christmas, retailers are counting on last minute shoppers making up for lost time. >> i really don't have any reason, except that i'm a procrastinator. >> frankly, everyone is coming out to shop at the last minute. >> tom: will the last minute crush of shoppers translate into major profits for the nation's retailers? it's "nightly business report" for friday, december 23. this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by:

captioning sponsored by wpbt >> tom: good evening and thanks for joining us. susie gharib is off tonight. merry christmas and happy holidays, congress has officially okayed the payroll tax cut. but the extension passed today lasts only through the end of february. the $33 billion two month tax cut was quickly signed into law by president obama. it means u.s. workers won't see a tax increase come january 1st on what they pay into social security. the bill also extends long term federal unemployment benefits, but also only through the end of february. and it addresses the so-called doc-fix, meaning there will be no cut in payments to doctors treating medicare patients. their fees could have been slashed by 27%. while today's measure keeps a return to the higher tax rate at bay. for now, the president urged

congress to keep working after the holidays to extend the cuts through all of next year. >> this continues to be a make- or-break moment for the middle class in this country, and we're going to have to roll up our sleeves together-- democrats and republicans-- to make sure that the economy is growing, and to make sure that jobs are created. >> tom: the president also signed into law today a $1 trillion plus 2012 spending bill. it funds the day to day budgets of ten cabinet agencies. as congress was debating the payroll tax cut in november, more americans were buying new homes. november sales jumped 1.6%. that helped boost stocks on wall street today even though trading was light ahead of the holiday. the dow rose 124 points, the nasdaq was up 19 and the s&p 500 gained 11 points. trading volume was among the lightest this year with 476 million shares moving on the big board and 970 million on the nasdaq.

despite that light volume, the major averages still racked up another strong week, the dow was up 427 points or 3.6% on the week. the nasdaq also up on the week adding 63 points or about 2.5%. the s&p 500 checked in with the best weekly gain, tacking on 3.8%. it's the final two days before christmas and last-minute shoppers are out in full force and their shopping while prices are dropping. as erika miller reports tonight, some stores have cut prices to levels usually reserved for after-christmas sales. >> reporter: if holiday spending is a little stronger than expected, retailers can thank shoppers like jaden fusia and her sister jillian. they spent $200 today alone. of all the cool things you got here today, what's your favorite? >> my favorite is the puppets.

>> reporter: and since procrastinators are under the gun, they tend to be less concerned about price. >> if its something that is unique and you want it and someone in your family would like it, we're getting it last minute or not. >> reporter: this is the make or break time for many merchants. the holiday season typically accounts for about 40% of annual sales and an even bigger percentage of profits. according to a recent poll, more than 40% of shoppers plan to buy gifts between december 21 and tomorrow. vendors at this holiday market in new york city and elsewhere have been going all out to win their business. >> it's a very short, intense period. so, we've had a lot of customers throughout the whole market. but the last week there is a push. >> reporter: some stores are cutting prices and offering extra promotions in order to clear inventory. analysts say, overall, discounts are deeper than last year. >> this year the markdowns are up to 60 or 70%, which are very high and pre-2008, it was very rare to see those before

christmas. >> reporter: some stores are even pulling all nighters. toys 'r' us is having a 12-hour marathon that will end at 10:00 p.m. christmas eve. sears, kmart, j.c. penney, macys, target, best buy and walmart are some of the chains offering extended hours at least some of their stores. all retailers-- big and small-- are hoping shoppers splurge not just on family and friends, but also on themselves. >> the more i wait, the more guilty i feel and the more i buy. like impulsively, quickly, but it's big stuff. ( laughs ) they are going to be happy with me here today. >> reporter: if the holiday season is a good one for retailers, it's good news for more than just those businesses. consumer spending makes up two thirds of economic growth. so strong spending now could spread cheer to other industries early next year. erika miller, "nightly business report," new york. >> tom: the must-have item today: the latest nike air jordan sneakers. they went on sale this morning

and demand for the $180 shoes was fierce with thousands of people around the country lining up for hours. once the doors opened, scenes like this became all too common. >> it was definitely worth the wait. >> tom: the air jordan brand brings in about $1 billion a year for nike. still ahead, think discounts are only for holiday shoppers? closed-end fund expert thomas j herzfeld has some stock funds trading at a discount. coming up with our market monitors. as we swipe our credit cards this holiday season, it is easy to forget it's real money being spent. financial education has become a school requirement in only a few states. darren gersh reports tonight on new initiatives to get kids talking about money, before they

wind up in a bind. >> reporter: the credit union where cindy jones works was set up to serve baltimore county school teachers. but jones spends most of her time talking to students. today, she's in dundalk, maryland addressing high school seniors enrolled in an economics course. but instead of talking supply and demand, she's discussing savings accounts, loans, debit cards and credit scores. >> i think it's really important to learn it early on so that as you go through your life you can learn to be a responsible money manager. >> reporter: the lecture and the class comes at a critical time for many of these students who are about to graduate. some of them also operate the credit union branch downstairs and all students are welcome to join it. but in order to be successful members, students need to learn the basics. jonelle hill listens intently and says she's already learned a lot about how to juggle holiday shopping with paying bills and

saving for college, using money she's earned at her part-time job. >> when we learned about saving money, i went, yeah, i should have been saving money. and i don't have no money in my savings account. >> reporter: maryland comptroller peter franchot says not enough high schoolers are graduating with a financial education-- an education he believes is critical. >> i tell them that it's easier to change your fingerprint than it is to change a bad credit rating. >> reporter: he's pushing to make maryland the fourth state in the country to quire financial literacy courses in high schools. franchot believes an education like this would help students avoid a lifetime of trouble. >> they get in a lot of trouble with credit card debt, they sign student loans for college that they don't understand, so they end up in a lot of personal debt problems. >> reporter: the idea has run into considerable opposition. after all, high school students already have to achieve a staggering number of

requirements to earn a degree. but teacher chris mccormick says this could be the most important information a student picks up in high school. >> i wish i had something like this. something... something to just introduce me, get me thinking about it. expose me to it basically. >> reporter: senior vinnie chesser says he would not have taken economics by choice. and if he hadn't, he would be treating this holiday season much differently. >> i would have just probably blew a bunch of money. and probably would have regretted it. >> reporter: in dundalk, the economy has been hit especially hard and school administrators say some of the students are expected to help support their families. here financial literacy training isn't just about helping children in the future, it's also helping families right now. darren gersh, "nightly business report," washington. >> tom: a little later in the program, some last minute tips on explaining the basics of giving in kids and cash. we saw a quiet day of trading ahead of the long christmas weekend.

but the buying was enough to pull the s&p 500 into positive territory for the year. let's take a look at tonight's market focus. with less than a week left in the year, the s&p 500 has been able to get back into the green year to date. first, today's activity of the index. the trade started out moving higher and caught a bigger bid around noon eastern time. the index closed at its highs of the day, up about 1%. putting today's gains on the year to date chart and the index is up a fraction since january first thanks to today's gains. today's leading sectors sort of mirrored what holiday shoppers may be after in the final days before christmas. consumer discretionary stocks and technology sectors were each up more than 1%. and the telecom service stocks were up 1%. one of the two biggest credit

card processors may be moving closer to settling lawsuits over the fees it charges stores. visa today set aside $1.6 billion to cover potential costs from the lawsuits. dozens of stores have sued both visa and mastercard, claiming the fees they charge stores to accept their cards violate anti- trust laws. visa stock rallied on the news, up almost 2%. this is a new all-time high for the stock. these lawsuits have been consolidated into one big case, which is set to go to trial next fall if there is no settlement. if there is a deal, visa would be responsible for two-thirds of it. while mastercard had no comment, its shares were up almost two percent. while visa and mastercard face lawsuits from their customers, two semiconductor makers have agreed to settle a patent fight amongst themselves. rambus has a five year patent licensing agreement with broadcom. it allows rambus the use of broadcom technology. settling the patent fight sent shares of rambus up 12%. broadcom was flat. it is a get-away friday for

millions of americans, but united continental's update on its fourth quarter did not get a jolly reception. shares fell two percent and heavier than usual volume. the drop takes u.a.l. down to a two week low. united noted it has experience higher than expected fuel costs and its revenue per seat mile-- a key metric for airlines-- is growing at its slowest pace of the year. despite the worries about united, the transportation sector is at the top of the range it has been trading in since the august sell-off. this exchange traded fund follows the dow jones transportation index. it hasn't been able to stay over $90 per share since the summer slow-down. the transportation business is considered an early indicator for the economy. the world saw plenty of natural disasters this year, from the earthquake and tsunami in japan to the midwestern tornadoes, and more recently, flooding in thailand. a company that insures insurance companies released its price tag for the high water in thailand. everest re expects to be on the book for $100 million to $125 million for the flooding in southeast asia, that wasn't a surprise to analysts and shares

rallied 4% as the losses aren't any worse. this is everest re's highest stock price this month. and that's tonight's market focus. >> tom: all this week we've been looking at companies doing well by doing good from small companies to big chains like starbucks. we'd heard how giving back can add to a company's bottom line. tonight, as we continue our series conscious capital we ask

eileen heisman c.e.o. of the national philanthropic trust about the state of charitable giving in the u.s. >> well, the end of the year is always the time that most americans think seriously about giving. and we're really at the end. we have seven days left. and americans, even with the economy and the recession going on the last few years have been enormously generous, giving as decreased a little bit. gone from $300 bill whereon to 290. but that represents a modest decrease relative to the economy which decreased significantly. so americans give generously. i think there's a fact that a lot of people don't know is that most of the gifts come from individuals and not foundations or corporations. >> tom: why don't you k with corporation profits at the highest level, and building a charitable arm in the business model, that you haven't seen a more significant growth in

corporate giving? >> corporations take care of the main mission first, which is return to shareholders, whether it's a privately or publicly held company. that's what they're supposeed to do. i think they don't start giving back sometimes until they have a comfort level that they're doing a good job with excess income and excess profits. >> tom: we've seen more companies become vocal advocates. and hour shultz of starbucks talking about raising money from a restaurant industry to do small business lending. are you sensing some companies are trying to fill in the social fabric? >> i do. there's an area called impact investing where the mission of the company acts as a social impact. and when you look at the coffee industry, and tlos all this fair trade coffee. that's the way they make a social impact while selling coffee. >> tom: for the shareholders of these companies that perhaps ar are siting on nice

profits if you're looking to give to charity is through the shares that they hold. why is that an effective way? >> it's interesting. if you've held shares more more than a year and a day, you can deduct the full market value, and not what you paid for them. and you get to donate the shares and avoid capital gains tax. so that's two really great benefit that is a lot of high net worth individuals use. >> tom: that assumes you have an idea where you'd like to make the charitable contributions. there's hundreds of impacts out there to make an impact. >> there's over a million charities in the united states. about 20% of those are ones that you hear about all the time. i say do a lot of research. go on guide star. look at the 990. go to the charity's website. talk to your friends. talk to people thaw know that

are avid charitable givers. and if you know there's private foundations, large ones, they list their grants and do a lot of veting to get on those grant lists. >> tom: 990 is the tax form they file with the irs. >> yes. >> tom: eileen heisman is the skoe of the national philanthropic trust. monday, with the markets closed in observance of the christmas holiday. we bring you our latest "women in leadership" special edition. join us for a special edition of n.b.r. we profile harvard president drew gilpin faust and learn how this historian is taking one of the world's biggest universities into the future. despite continued worries about the economy, more americans are expected to hit the highway this holiday season. it is expected that nearly 92 million americans-- about 30% of the population-- will travel at least 50 miles from home during the year-end holiday season. that's up 1.4% from a year ago

and the second highest travel volume in the past ten years. but while many will be driving, air travel will be down by 10%. more national retailers are following wal-mart's lead in pulling a suspect batch of powdered infant formula from their shelves. the move comes after a missouri newborn died of a rare bacterial infection. supervalu, walgreen, kroger and safeway have all removed the 12.5 ounce cans of enfamil newborn formula from their stores. federal health officials are still running tests on the formula.

year end discounts aren't only for retailers and auto-dealers. some specialized investment funds, known as closed end funds also tend to be discounted at year's end. thomas herzfeld is the chairman of thomas j. herzeld advisors-- a firm specializing in closed end funds. cecilia gondor is the chief investment officer. welcome back to n.b.r. >> thank you. >> thank you. >> it's great to see you, tom >> tom: why do the funds give discounts at the end of the year? >> tax selling. investors say where can i take a loss to offset gains, and if they have a loss they just sell it without looking at the valuation. >> tom: and what does it mean

discount? >> trading below the value per share. >> tom: so if you take the stocks and divide them by the number of shares you get a higher price than the share price. >> you get a dollar of stock for 85 cents. >> tom: there are some that aren't at discount at the end of the year. does that worry you? >> you're thinking of the municipal bond funds. they're overpriceed and in dangerous range. many are trading at premiums to the value. they're leveraged companys and invested in municipalities which may have troubles down the road. there's talk of a flat fax which if it doesn't come to pass 32 could be a shake out. >> tom: time to get out? >> we sold all of them reenltly. >> tom: where are you putting it? >> equity funds. they're dhaep. the average discount in the herzfeld average which is an equity average is currently over 10% versus 4% at the end

of the summer. many of the funds we're buying are 15% discount. >> tom: so discounts aren't just for retailers. cecilia give us a an idea where you're finding rich discounts. >> a couple of names are trading at 16% discounts or wider. the first one is the vertis return fund. vca. the yield is about 5.8%. the interesting thing about this fund is it had a management change, and one of the providers is remained publicly well known. >> some other closed end funds trading at narrow discounts and even premiums. so we're hoping this one will narrow as well. >> tom: and you also like adams express. abx. what do you think about this

portfolio? it has petroleum risources and apple and mcdonald'ss, pepsco, chevron, and they've been taking efforts to discount recently. they instituted a manage. payout policy where they're paying out 6% of the market price. sxwh extended a repurchase program. >> tom: a lot of investors are searching for yield. you've seen aeral nethe bond market. is there a yield that's too high when considering a closed epd fund. >> just has to be analyzed carefully which we do. a closed end fund distribution can consist of income along with short term gains and return of capital. so the components have to be analyzed. >> tom: make sure you understand it. the last time we saw you was a year ago. you liked alpine fund, aod,

and first opportunity fund. foi. both of them are down in capital price. do you still like any of them today. >> yeah. aod was for a short term trade. as are most of our recommendations. they widenalt the end of the year and narrow at the end of the year. >> tom: short term is a month or so. >> it was up in january, 8 to 10%, and we started to get out. >> the other one we like is big discount. and it's the only opportunity to buy a portfolio of hedge funds. >> of the four funds we mentioned, do you and your clients have positions? >> in all of them. >> tom: cecilia ghandour, and thomas herzfeld, we appreciate it. with the holiday retail insanity all around us, sometimes it's easy to lose touch with reality. tonight's kids and cash has a few last minute tips for

teaching your kids or grandkids the basics of gift giving. here's neale godfrey c.e.o. of the children's financial network. >> it's the perfect time of year to make sure your kids understand the importance of giving, appropriately. an overgenerous gift can indicate too much of a need for approval or control and can embarrass the receiver. or, it can signal the beginning of an unhealthy materialistic competition. you can explain to kids that parents and grandparents love all gifts the same, no matter how much is spent. a solution is to have the kids pool their resources for one gift, with everyone putting in what they can afford as a percentage of their allowance. once your children know how much they're going to spend, they can for very important gifts, like for parents or grandparents, you may want to help your kids with a matching fund. non-monetary gifts really convey the most important message. let kids be creative. cooking a special dinner for grandma or helping to put photos in albums take more thought and might be a better way to say i love you. let your children come up with their own ideas for giving just

remember, i care never comes with a price tag. i'm neale godfrey. >> tom: and finally tonight, santa and his elves are working overtime getting ready for sunday. and the risk managers at insurance broker aon say with all the craziness of the holidays, operations at the north pole can get dicey. they've issued a list of santa's biggest risks. topping the list, repetitive stress claims made by elves working the toy assembly line. valuable paper coverage because santa would be lost without his list of who's been naughty and who's been nice. supply chain interruption as north pole weather is unpredictable weather can also be a big issue on christmas eve, as santa and his reindeer 'round the globe on a very tight schedule. that's "nightly business report" for friday, december 23. i'm tom hudson. goodnight, everyone, merry christmas and we hope to see all

of you again monday. joins us for our n.b.r. special edition "women in leadership." "nightly business report" is made possible by: captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org

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