>> susie: new-home sales land in the basement, tumbling almost 17% to their lowest level on record. still, some buyers are hoping for spring. >> we're hoping that people who have been holding out on putting their homes on the market will be doing so now. >> tom: a glut of foreclosures means even lower prices for sellers, but more homes to choose from for buyers. you're watching "nightly business report" for wednesday, march 23. this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by:

this program is made possible by contributions to your pbs station from viewers like you. captioning sponsored by wpbt >> tom: good evening and thanks for joining us. new signs today the u.s. housing market still is struggling. susie, that's even as many parts of the economy are recovering. >> susie: tom, what got everyone concerned is the latest new home sales numbers. they fell to a record low. sales tumbled almost 17% in february. even lower prices couldn't bring in the buyers. the average selling price for a new home fell to $202,000. at the current sales pace, it would take almost nine months to sell all the new homes on the market. >> tom: this discouraging news comes right at the start of the spring selling season.

erika miller reports. >> reporter: instead of eating during her lunch hour, angie moncada likes to go house hunting online. she and her husband have been waiting for spring to get serious about their search. >> we want to move somewhere around the beginning of june. also it seems like things are just picking up generally, and we're hoping that people who have been holding out on putting their homes on the market will be doing so now. >> reporter: it also doesn't hurt that home prices nationwide are still falling. new homes prices are at their lowest level in seven years, with the median home costing just over $200,000. previously owned homes are at their lowest price in nine years, at $156,000. economist yelena shulyatyeva thinks home prices will continue to drop. >> we still expect housing prices to fall, probably another 5%, throughout this year and likely into next year.

we have two plus years of shadow inventory, including foreclosures, delinquencies-- and that will continue weighing heavily on housing prices. >> reporter: part of the problem is that an estimated 11 million homeowners around the country are underwater, meaning they owe more on their mortgage than the home is worth. that's about one out of every four residential mortgages. the housing market also faces another major headwind, tight lending requirements. often buyers can't qualify for the mortgage they want. >> lending standards are still tight. they eased up a little bit, but they're still tight and you have to have a good job, and you have to have the money for the down payment. it's still very hard for new home buyers to enter the market. >> reporter: historically low mortgage rates are one of the few positives for the real estate market. a 30-year fixed is still averaging below 5% nationwide. but economist michelle meyer says that's not enough to tempt

buyers. >> to me, it's a secondary factor. the most important factor is economic fundamentals. it's the labor market, if you are employed, if you believe you'll have your job a year from now or two years from now, and you feel confident about your income prospects. >> reporter: and, as angie moncada wil tell you, finances are usually just one of many factors in a homebuying decision. >> i guess our decision is bound by getting rid of the commute that i do, and also finding a great school for our son, who is going into pre-k. >> reporter: for her, real estate is more than an investment, it's a place to raise a family. erika miller, "nightly business report," new york. >> susie: here are the stories in tonight's n-b-r newswheel: stocks rose despite higher oil prices. the dow gained 67 points, the nasdaq was up 14 and the s&p 500 added three. trading volume still on the light side.

877 million shares moved on the big board, 1.7 billion on the nasdaq. oil prices continued their march higher. in new york trading, may futures rose $0.78 to more than $105 a barrel. crude is up almost 10% since the beginning of this month. federal reserve chairman ben bernanke said small and mid-size banks face "substantial challenges" in complying with new regulations from the dodd- frank financial overhaul law, but he added that the reforms are tougher on big banks because of strict requirements. $300 billion is the japanese government's first official estimate of the cost of the earthquake and tsunami. japan also said today radiation has spread beyond the area surrounding its crippled nuclear power plant. the city of tokyo says its drinking water isn't safe for infants because radiation levels are double safe limits. it's urging residents to refrain from hoarding bottled water. separately, toyota motor said it

will halt some north american production because of parts shortages in japan. it's not sure how many shifts will be down, or for how long. >> tom: still ahead, as seen with this week's big telecom deal, big buyouts are alive and well, and that has tonight's "street critique" guest buying the bankers behind the buying. hilary kramer joins us. >> susie: a very big name on the witness stand today at the raj rajaratnam insider trading trial-- lloyd blankfein, c.e.o. of goldman sachs. blankfein testified that a former board member, rajat gupta, gave rajaratnam confidential information valued at $17 million-- tips about a possible acquisition of wachovia bank and the $5 billion investment in the firm by warren buffett's berkshire hathaway. joining us now with analysis of the trial? steven feldman, a former assistant u.s. attorney in new york's securities fraud task force and now a white collar criminal defense attorney at

herrick, feinstein. >> susie: hi, steven, how are you? >> great, susie. >> susie: do you think lloyd flank the blankfine helped the government's case? >> absolutely. the government's job is to put a bunch of bricks together and try to make their case. they have the tapes plaintiff gupta allegedly giving tips, and they need a human person, a moderator who give the the information about what was really going on on the outside, outside of that phone call. and mr. blankfein with his credentials and role with a great reputation on wall street was the perfect person to strengthen that case and fill in the bricks in the wall. >> susie: blankfine said it violate the the rule, but did

it break the law? >> it looked like mr. gupta violated his duties. he hear mr. gupta had terribles important to investors and was sharing that. that would be insider trading. >> raja's lawyers are going to argue that wall street operates by sharing of information, and this this case. he's just good on getting research. do you think that argument is going to hold up after the >> mr. blankstine's testimony is going to help the case that they weren't just getting an edge on the competition, but crossed the line to especially

stealing information from goldman. goldman trusted them with important information, and he turns around and give its to his friend. that's the allegation. >> susie: now this trial has been going on three weeks now. stein, you worked on these kinds of cases before. how strong or weak do you think the case is? >> it's really hard to predict where these cases are going. the government presented its side of the case, and its job now is to put all the best evidence forward. but as a defense attorney, there's another side to the story and the dchblt hasn't had a chance to put on a case. it's not obigateed to put on a case, but it's job is to poke holes in the government, and put on its own story. it looks great for the government so far. they put together powerful efrds, butots not over until both sides have a chance to talk. and the dpft talks first.

>> susie: raja talks. do you think he'll have to take the stand to make his own case? >> it's a tough question. mr. defense attorneys are wary of putting a defendant on the stand. you just don't know what's going to happen. at the same time, a jury wants to hear fromerage a raj a. he h obligation to talk, but the jury will have questions if they never hear anything from him. you'll want to prepare. it's a hard call. >> susie: we'll see what's going to happen pretty soon. thanks steven for coming otd program. >> we've been speaking with steven feldman, a white collar criminal defense here at herrick feinstein.

>> tom: despite higher oil prices we told you about earlier, we did see stock buys come back. for the past five sessions we've been hayer. take a look. >> tom: after a weak morning, the major stock indices were able to crawl into positive territory, ending with some fractional gains. the material sector led the market, and alcoa was among the top performers today with this 3% gain. it led the dow industrials too. tonight's close brings alcoa's price to within less than a dollar of a new high. gold miner newmont popped just over 3%.

this is the past 90 sessions. hitting this low just a week it's been trending lower, hitting this low just a week ago. shares have rallied 9% off its low a week ago. fellow miner freeport mcmoran goes after both gold and silver, and copper. shares jumped 5% on heavy volume. shares had been trending lower since january, but with today's buying, they were able to break this trend of lower highs. one to watch. here's what's going on. freeport's c.e.o. said an improving u.s. economy is helping push up copper prices. copper jumped almost 3% today. silver is at its highest price since 1980, and gold closed just shy of a record high. gains were held in check by the financial sector, which was held down by bank of america. b. of a. was the biggest loser of the dow industrials, after acknowledging the federal reserve rejected its plan to increase its stock dividend. that rejection cost b. of a.

shareholders over 1.5% today. bank of america was paying out 64 cents per share per quarter before the financial crisis. currently it pays shareholders one penny a quarter. director of research at k.b.w., fred cannon, thinks b. of a. may have been too aggressive in wanting to hike its dividend for the fed's tastes. he doesn't expect much of a hike at all this year. >> we think it may be a penny or two a share. if they have a dividend this year, it's going to be something relatively deminimus-- something like citigroup did, and not at all like what we saw the significant increases we saw at j.p. morgan wells fargo and u.s. bancorp. >> reporter: those three did raise their dividends with the federal reserve's blessing. citi fell two cents. j.p. morgan was up a fraction, holding on to its recent gains since announcing its dividend hike. and u.s. bancorp slipped a penny.

again, holding on to the gains since last week announcing higher dividends. leading the financial sector was discover financial, up more than 5%. the rally takes it to a new 52- week high, and on more than three times its usual daily volume. it was helped by raising its dividend and reporting a record fiscal first quarter profit. one area of weakness within technology was specialty semiconductor makers. the drop was led by cree. it makes light-emitting diode chips. shares fell 12% as it cut its revenue outlook. fellow chip makers semileds and veeco also fell, but by much less. canadian energy company nexen --not a household name-- saw volume more than double on this drop of 8%. it operates an oilfield in the north sea. britain hiked taxes for oil producers, leading to the selloff. and watch software firm red hat tomorrow. shares were up a fraction during the regular session, but up as

much as 10% after the close. it reported record fourth- quarter billings. and that's tonight's "market focus." >> tom: despite the violence in the mid-east and disaster in japan, big buyouts are still happening. tonight's "street critique" points to this week's at&t/t- mobile deal, and the lubrizol buyout by warren buffett last week as prime examples. she's hilary kramer, editor of gamechangerstocks.com. >> buyouts are back. that has you as an investment banking to get in with goldman

sachs. what makes you like goldman, and what's the catalyst? >> goldman sachs is best of breed. the beftd talent, reaches global, and a lot of these mergers and acquisitions are cross border, emerging markets, and goldman can finance it and has a chance to do the deals. it's a great company to own for the long term. >> tom: you also like smaller investment bank, ever corps that's been at the heart of a few deals. e vx*f rx+f the ticker symbol. what's the catalyst? >> ever corps, evr. it's a smart investment bank boutique at the middle of mergers and acquisitions. a lot of people don't know about this company. you want to own the investment banks in general. these bankers are paid baseed on compensations on stock

price. whether it's goldman sachs or j.p. morgan or ever corps. they're aligned with the xwloifees who do the transactions. >> tom: so they have skin in the game? >> that's for sure. >> tom: a lot of questions about citi, hillary. john wrote in saying "several weeks ago you recommended citi in part because of low stock price. given the 10 for 1 reverse split. are you still recommending it?" you liked at 4.77. today it's 4.40. reverse split, $44. due like it in the 40s? >> i love citi group. because the large institutions like pension funds and mutual runned funds are not allowed to buy stocks under $5. can opens up a whole new world for investors, and because of the dividend, it means the mutual funds can buy into citi, and as capital improves,

citi will get to where it should k it will be a hundred dollars a share. >> tom: still bullish on citi. barbara cent this note. "what can i tell my investment club about tiva." it's a pharmaceutical maker. you recommended it in the mid-50s. tonight below $50 a share. what's the outlook. you want to own teva, the middle east unrest is a problem. it's based in israel, the stock of this and other israeli companys are depressed. >> tom: you own all four we mentioned? >> yes. >> tom: she has skin in the game. you can follow the blog, n.b.r. on pbs.org. you can email us, streetcritique@nbr.com.

or you can send us a note via twitter at my feed, @hudsonnbr, or nbr's feed. and facebook too. we'll feature some of your questions next wednesday. our guest for this evening's "street critique" is hilary kramer with gamechangerstocks.com. >> susie: here's what we're watching for tomorrow: quarterly results from best buy, conagra foods, gamestop, oracle and research in motion. we'll also see weekly jobless claims and durable goods orders for february. and our "planet forward" series features an idea that makes saving energy as simple as flipping a switch. stock buybacks were huge last year. america's biggest corporations more than doubled their share of repurchases. s&p 500 companies spent almost $300 billion dollars in 2010 buying back their own shares. that's up 117% from the $138 billion spent in 2009, when the recession ended. but despite the surge, s&p said last year's buybacks were still just half of where they were before the recession.

>> tom: portugal is a country in political limbo tonight. late today, its parliament voted to reject key cost-cutting measures. as a result, portugal's prime minister resigned. the austerity plan was designed to avoid a bailout from the european union. the uncertainty over today's vote fueled a rise in portugal's borrowing rates, just as it's attempting to cut spending. the yield on the country's 10- year bond shot up to nearly 8% and the euro extended its losses against the dollar.

>> susie: identity theft is one of the biggest fraud threats to seniors, costing billions of dollars every year, and the damages could grow as technology advances. in tonight's "money profiles," benno schmidt shows how i.d. theft can take over a victim's life, and how to fight back. >> reporter: a fitness fanatic and competitive biker, retired banker santiago iglesias loves to spend down time listening to, and reading up on, his jazz heroes. >> the miami jazz festival did a show celebrating miles. >> reporter: but the music died for iglesias recently, and his world nearly collapsed when he discovered he was a victim of identity theft. >> i felt totally violated that somebody had really taken my

good name, my good credit and had done horrendous things. >> reporter: a cyber thief stole iglesias's social security number, threatened his credit and exposed him to thousands of dollars in taxes by filing a bogus income tax return in maryland. the guy claimed full refund, and the state gave it to him. so they're coming after me for $2,600 balance due, including the tax, interest and penalty. >> reporter: iglesias isn't alone in his misery, according to the federal trade commission, last year identity theft topped the list by a wide margin of all consumer complaints nationwide. as much he enjoys the florida climate and endless bike diversions, iglesias is living in the epicenter of i.d. theft. florida tops the list for i.d. theft complaints nationwide. like me, you no doubt want to avoid becoming one of the millions of i.d. theft victims, lost souls, whose names and financial information are stolen

and used to clone paperwork and cash in. even if you are a virtual dummy when it comes to computers, you can still fight back. identity theft expert john sileo warns seniors are especially at risk. they were raised in a more trusting manner, so they have a naturally more of a tendency to listen to what people ask them to do. they don't necessarily have that skepticism about how much information they share, and we're seeing more and more damage along those lines. >> reporter: so how do you stay safe from identity thieves? be skeptical: give out as little information as possible. empty your wallet of credit cards you don't need and never carry your social security card with you. check your credit report and if you want to, lock down your credit card profiles with a pass code. if you are victimized, get help. file a complaint with the federal trade commission and report the crime to your local police department.

place a fraud alert on your credit reports. iglesais went to the f.t.c. website for advice on how to handle his problem. he then called the i.r.s. in both florida and maryland, and filed a police report. months later, his name was cleared. iglesias' credit will be restored, and he's off the hook for that tax bill. his words of wisdom? >> you have to be your own police. but this is the world we live in. we accept the credit, so we're accepting some of the risk. >> reporter: in a sense, iglesias was one of the lucky ones. some victims spend years trying to clear their names. the experts stress: be proactive, guard your identity so you don't become another face in the growing crowd of i.d. theft victims. in miami, benno schmidt, "nightly business report." >> susie: and finally, fans around the world mourn the loss of hollywood's legendary actress elizabeth taylor.

we remember her as a businesswoman and philanthropist. taylor blazed a path by becoming one of the first celebrities to develop her own line of fragrances, including "passion" and "white diamonds." those brands earned $77 million globally last year. taylor was also a pioneering aids activist. she raised more than $100 million as the co-founder of the american foundation for aids research and also launched her own aids foundation focused on patient care. tom, the 79 year old said she wanted her work in the fight against aids to be her legacy. >> tom: actress, entrepreneur, quite a lady. >> susie: a lot to remember. that's the nightly business report for march 23rd. i'm susie gharib. goodnight, everyone. >> tom: i'm tom hudson, thanks for joining us. we hope to see you back tomorrow night.

"nightly business report" is made possible by: this program was made possible by contributions to your pbs station from viewers like you. captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org