this is "nightly business report" with tyler mathisen and susie gharib brought to you in part by. >> the street.com. up to the minute stock market news and in depth analysis. our quant rating service provides objective independent ratings daily on over 4300 stocks. learn more at the street.com/nbr. when to sell? that's what many investors did and with gains of 25% this year, more of you may wonder how do i know when and what to dump from my portfolio? >> another mortgage mess, foreclosures are falling but just as things are looking up, there may be another housing crisis right around the corner. >> and phone calls on flights, the fcc will now consider rules to end a ban on in flight telephone calls.

the chairman says the move will keep pace with technology, but will flyers think otherwise. that and more tonight on "nightly business report" for thursday, december 12th. good evening. stocks sold off again today lead by another triple digit decline in the dow despite solid retail sales in november and as the house votes tonight on a bipartisan deal. many fear signs of a stronger economy with stability in washington could prompt the federal reserve to start winding down the stimulus plans this month. the dow fell 104, the nasdaq down five but closed below the 4,000 level and s&p lost six. the price of gold also got hammered falling $32 an ounce, the biggest two-day decline in two months. there is anxiety in the market the past few days and often explained people are taking profits, so you're probably wondering whether you

should be making changes to your portfolio soon. joining us now to discuss the things you should consider before doing so is jim, chairman at mark capital. good to see you. >> thank you. >> i want you to take us through the thought process of how i look at my portfolio and decide what, if anything, i want to sale because i have a nice gain in it. how do i do it? >> the first thing you look at a asset allocation. you sat down with a financial advisor or thought through a process where you want x percent in stocks and x percent in fixed income. if that's the case because stock s are up this year and bonds are down, you probably have a higher percentage in stocks than the -- than what you started the year with and what you think your asset allocation is. you have to ask yourself, do i want to ride with this? am i willing to have er ex pes sure and wait to fixed income or

rebalance and sale some stocks and buy some bonds to get myself back to where my long-term plan is and where i was in the beginning of the year. >> jim, let's take it a little bit more specific because a lot of people get very emotional about a lot of their investments, especially if they have done well and this is a year where you have a lot of gains. let's say someone came to you and say i own netflix. it's a stock up 300% or yahoo doubled. let's take best buy up 240%, let's say you have the stocks. what do you do? >> okay, well let's ga near rickly. if i didn't own this stock today, would i buy it? another way is to ask yourself, are the fundamentals what i thought they were when i bought the stock, is the evaluation as attractive as it is when i bought the stock? if your answer to any of those questions is no, then you have to sell some stock. if your answer is yes, then

you're inclined to keep it unless you want from a portfolio point of view to diminish the chances of any one particular stock dominating your portfolio. in the case of the ones that you mentioned, you know, netflix is -- it's a great conception l growth story and a growth story but in terms of valuation, there is no way to get your arms around it, so you probably should take a little bit of profit. in the case of best buy, what is attractive there is that they are selling some of the most exciting products in the marketplace with the android and apple, et cetera but on the other hand, it's a retailing and retailing is not such a great business long term and you're subjected to competitive pressures and the popularity of the products you're saling. so you go from the portfolio question to the question of how much you want any individual stock to dominate your portfolio, and finally, to the individual stock selection process. but i would be uncomfortable if

any stock were more than 10% of my portfolio. >> so look at individual shares to see how much on your portfolio they make up. if i got to that point where i sit there and go my equity portion of my portfolio expanded to 70% from a typical 60% and i want to scale it back, i look at those stocks or mutual funds and say, would i buy it again today? that's the fundamental question. at today's prices at today's values, and if the answer is no, that's on your short list to kick out, right? >> absolutely. you want to sell some of those or maybe even all, depending on how strong your negative answer is, as a way to get your portfolio back into balance in terms of stocks -- >> do you sell it all or a little piece of it? if you think hey, maybe there is little more in next flix? >> i wouldn't try to short -- i really stick with the discipline, tyleli would i buy it again today? if the answer is no, i wouldn't try to squeeze a little more out of it. i would go ahead and be

disciplined and sale. >> a few seconds left. >> yeah. >> what do you do with losers in your portfolio? >> if i buy today at this evaluation, if the news has gotten worse in the company, it's down for a reason, you probably want to take the loss. on the other hand, if the news is as good -- if fundamentals are as good and stock is down, you may want to buy a little more. >> jim, very helpful, thanks very much. turning now to health care, another setback for the affordable care act because of all the technical issues with the healthcare.gov website. the obama administration is extending its december 15th enrollment deadlines to obtain insurance by the beginning of the new year to now december 23rd. it's also asking private insurers to accept payment on new plans until midnight on december 31st and says it may consider moving the enrollment deadline again. a good sign ahead of the holiday shopping season or right not middle of it, frankly, a

sizable boost in retail sales last month. u.s. consumers bought a lot more new cars, if you were tofurnit s electronics. sales were up and that is the sharpest increase since june. with stronger retail sales in november, there was more good news in the housing recovery. total foreclosure activity saw the largest monthly drop in three years last month. rising home prices had been a huge help but rising mortgage rates have not, and that has some concerned that the healing might slow down in 2014. diana olick has more. >> reporter: the signs are good. fewer of these signs. that's because more troubled borrowers are finally finding a way out. >> because things in the economy have gotten better, the house prices, employment, interest rate, although ticking up are relatively low. >> reporter: foreclosure activity fell 15% from october to november. the steepest drop since 2010 when the robo signing scandal

brought most foreclosures to a halt temporary. newly started foreclosures fell to the lowest level since 2005. while the nation-wide averages are positive, some states like maryland are just now ramping up the cleaning up, due to big legal and judicial delays in the foreclosure process. >> the story goes back really to 2010 and the summer of 2010. maryland adopted a new foreclosure law, which required medication. >> reporter: attorney jeffrey fisher is in the middle of maryla maryland's mess. >> they have finally sort of figured out through whatever different pay up they went through, they finally figured out how to move forward in maryland. so what you're seeing now is an effort to chop into that backlog. >> reporter: new foreclosures in maryland are up 74% from a year ago and the picture isn't much better in the northeast where judges slowed the process but are plowing through past

cases. >> while the forclose sure problem becomes more local, another mortgage mess is set to strike nationally, second mortgages. specifically home equity loans of credit where so many folks were using homes as atms are starting to go bad fast. >> a lot of those have what's called an end of draw period where you can no longer draw money and instead, you have to pay the period back. >> reporter: those periods are nearly ten years and most of them were taken from 2004 and 2067. for those who reached pay back time, dell link we sees are down. another ticking time bomb just as things were looking up. and to read more about borrowers struggle to pay off home equity loans, go to nbr.com. jp morgan chase is nearing a 2 billion-dollar settlement with the justice department and regulators to end a criminal probe for allegedly turning a blind eye to bernie madoff's

massive scheme and failing to warn investors about obvious signs of fraud. scott cohn joins us with more. what do we know now? >> there is a push to get this done by the end of the year. we're not sure who is pushing hard. as you said, $2 billion, it would be about a billion or so to the justice department and another billion or so to regulators probably including the controller of the currency and treasury department and there is likely to be a deferred prosecution agreement, which is a stiff penalty for money center bank. they would basically have to agree to reforms, with the justice department continuing to hold the threat of prosecution over their heads if they don't compile. >> you know, scott, jp morgan is writing a lot of big checks recently. what exactly did they do wrong this time or allegedly? >> we should point out it's allegedly and the bank said they acted in good faith. a lot of it goes back three years, almost exactly three years to a lawsuit that the bankruptcy trustee filed, the

same allegations that jp morgan was bernie madoff's primary banker. all of the money flowed through one account, the 703 account and the bank had to know based on that. not only that, they were actually saling structured products, funds based on madoff's returns. they had to know where they were coming from and whether in fact they were real. >> now you mentioned a little bit about where the $2 billion, if it is, turns out to be $2 million will go between the currency and justice department. will victims get any of this money? >> there was a fund set up last month that would pay to the victims and not just any victims. it's victims that invested in madoff indirectly in feeder funds. people that didn't invest directly are not entitled to recoveries from the trustee. >> from city card. >> uh-huh, so they have to wait. this would give them perhaps a little lifeline. >> scott, thank you very much,

scott cohn reporting. this latest jp morgan settlement comes at the five-year anniversary of madoff's arrest. mention the name bernie madoff and it became synonymous with greed and all that was wrong in the financial crisis. now five years later, is the financial crisis over? to answer that question, jessie a senior reporter and a columnist for ""the new york times"" and won a prize for investigative reporting of the financial crisis. jessie, nice to have you on the program. >> hi, thanks for having me. >> the prevailing view seems to be that banks are in much better shape, they stabilized that the financial crisis is over from that perspective and the government is out of the bailout business. we just reported this week it no longer owns any part of general motors. we just reported housing is doing a lot better. so what is your thought on this? satisfied nationis thsatisfieis?

>> i think the financial crisis is over. the question is whether we've done enough to prevent the next financial crisis and since crisis is inevitable, the question is will it be huge and blow up the world economy? i think the answer is no, we haven't done enough. >> have we solved the problem of too big to fail, a bank that is too system to let it go? >> it was said last week in a speech we could say with a straight face we solved too big to fail. i think that -- i don't think wall street or anything observing -- >> how did you say that? >> first of all, the banks are bigger than they were going into the crisis. the second thing is that no one believes credibly that the government would have the will to resolve a big bank if it was on the brink of failure, and put -- import costs, impose

costs to shareholders possibly but bond holders know. i don't think anybody believes creditors would be -- would not be protected and the second thing is that what -- the question is what happens on day two? if some crisis hits that would hit jp morgan, what would -- it would also hit bank of america or citi group, and then they would step into save those entities or that market. >> you know, there have been so many regulations, dob frank and all that and the local rule slapped onto the banks to make them safer and stronger in the case of a financial crisis. you said everything is not done yet. what else do you think needs to be fixed? is the most important thing that yet should be done? >> they have done good things th vocal roles, a lot stronger than when it came on the scene, when it was first proposed. i think what they haven't done is solved too big to fail. they haven't gotten leverage requirements right. we don't have adequate capitol requirements for the largest

banks, and we don't have any sort of credible resolution authority, and that's the big central question. so -- and the final issue is that we don't have adequate enforcement. we have criminal violations at jp morgan allegedly, but they are about to admit it for the madoff scandal and yet, not a single person seems to have committed a crime. when banks admit labor violations or admit manipulating other markets, not a single person seems to have commit add crime in any of these cases, not a single person committed a crime in the financial crisis. i'm puzzled how that could possibly be and without that accountability, i don't think you get change. >> all right. really interesting conversation. jessie, thank you so much. >> thank you for having me. still ahead, a big day for ipos and a big year, but what is in store for 2014, especially on internet offerings?

delivering more homes and higher earnings, that's where we begin the market focus. the fourth quarter results blew away estimates, a sign the housing market is recovering and more profitability in the new year projected and sent shares higher 6% to $5.28. lululemon reported higher than expected earnings today but it put a damper on results. the apparel maker struggling since the see-through pants debacle in march, a great story of the year, said store traffic

slowed. the news was disappointing to investors.p,z-shares plunging, 11.5% to $60.39. sianna went into the minus column. the company blamed the miss on telecom customers like at&t and ver ri verizon. shares at $21.31 the close there. aetna will not reinstate plans it cancelled that did not meet affordable care standards. the ceo said it doesn't have number time to go through the regulatory processes to extend or renew the plans. last month, president obama said insurers could extend plans that didn't compile with the aca temporary after hundreds of thousands of americans found out they could not, could not hold on to their existing plans.

aetna $65.14 the close. cisco, the company cut earnings and revenue targets because of trouble in emerging markets, tightened consumer spending and lagging network equipment business. the announcement was a more detailed report of a warning cisco issued in early november. shares fell more than 1.5% to $20.51. buffalo wild wings waged a soda war today. they said starting next year they will switch from serving coke to pepsi and plans to tap into pepsi's snack business and use doritos in the menu. they have an estimated market share of 70%. all three stocks were down. pepsi fell to $81.28. coke dropped 2% to $39.21 and shares of buffalo wild wings off to $141.77. aero mark had a successful

market. they sale beer at sporting events including teams like chicago bears, aramark raised more than $700 million. here is what the ceo said about plans for that money. >> originally we'll pay down debt over time. the uses of cash will be to invest in the business. we think it helps competitiveness. we'll continue to return cash to shareholders by paying a dividend and over time, looking to buy back stock. >> the stock rose to $22.70. and hilton returned to the market today in the biggest hotel ipo in history. the sale of its shares raised more than $2.3 billion, the ceo of the world's largest hotel operator says the global out reach is what sets it apart. >> what dif remembferentiates ue value with the growth, particularly internationally, but the growth in the management franchise, where we have nearly 190,000 rooms in our pipeline, nearly 100,000 rooms under

construction and of those rooms under construction, almost 80% of them are outside the u.s. and all the parts of the world that are going so fast. >> and shares were going fast today. they jumped 7.5% to $21.50. two of the final ipos of this year and 2014 is expected to be a huge year for ipos in the tech sector, internet companies in particular. what is driving the push and what should investors look for? >> reporter: after the debut, investors should get ready for a slew of internet ipos from air b and b to gill group, pin trust to oober. the number of internet companies in the tech ipo pipeline is up 39% from last year to 320, 25 of those internet companies are valued at $1 billion or more. social tools will be more

important than ever, but don't expect companies competing directly with facebook and twitter to go public. >> a social network requires is a difficult thing to do and most folks that try will not be able to do it. but if we can leverage the social technologies to grow, you know, and sell another product or service, that is sort of the way to go. so i think social is a layer that everybody is tapping into, and so we're seeing that more and more. >> venture capital has been abun dent, so they have been able to find funding elsewhere. for the number of big internet names, have significant revenue and have been around for so long that investors and employees are eager to cash out. so who will cash in? of the vc firms, kliner perkins has backed the most ipo companies including mobile

payment startup square and intel tops the list with investments including crowd storage and sharing service boxed, but which companies make it to the new york stock exchange and nasdaq will depend not just on revenue and growth, but also on the markets. >> if the markets are general term, the window the companies may see they have closes, so i think that's probably the biggest thing. you know, i think the other thing is there is lots of money, private money for these companies, right? so the need to go public has also diminished a bit. so i think companies are choosing to wait, choosing to get the timing right. >> reporter: but for now, with twitter shares at an all time high up more than 110% from the ipo price, the market is looking ripe for the crowded pipeline. i'm julia boorstin in los angeles. coming up on "nightly business report", regulators are considering rules to let travelers talk on cell phones on flights, but is that what the

flying public wants? mexico approved a historic energy bill today. the legislation ends a 75-year monopoly by the state run industry and opens the way by private and foreign investments to explore and drill for oil and natural gas. the vote was contentious and emotional, but proponents say the bill will boost mexico's oil production and economy. despite the protest, mexico's president expects to sign the landmark legislation into law in february. if you think you've been paying too much for plane

tickets, you might be right. the global airline industry will make $13 billion in profits this year with more people flying and lower cost of jet fuel. next year they expect profits around $20 million. the fcc considered lifting the 22-year ban on the use of cell phones during flights. the chairman said new technology is making the reason for the ban obsolete. it was a split vote. two republican commissioners descended but commissioners expressed reservations about allowing phone calls during flights. >> nothing will be different on your flight tomorrow. we're seeking comments on a proposal. we'll go to a vote. all of these in favor say i. i -- >> nay, no. >> the is have it.

>> a poll shows the majority of americans who fly regularly are against allowing the in-flight calls. we spoke to some people how they feel about the possibility of cell phone calls being allowed on flights. >> many people are very loud and on knox shows when they talk on the phone. i don't think it's phone everyone else sitting in a confined area. >> it interrupts the quiet of a flight. >> it wouldn't bother me. >> i don't want to hear everybody's business, personal stuff. >> depends how long they are talking. that's why it would be annoying. if it's not loud, it's not annoying. >> districting if i'm trying to read. >> it's for relaxing purposes, not social networking. >> you can't hear what the pilot and the flight attendants are trying to tell you. >> and you can't sleep. >> i think it's an awful idea, but i think what will happen, airlines that have it will have sections of the plane where they will charge extra where you will

be allowed to sit and use your phone. >> let's hope they don't talk -- >> i don't want to be in a middle seat. >> me, either. >> that's "nightly business report", i'm susie gharib. >> thanks from me, as well. i'll leave my cell phone on the ground. have a good night. see you tomorrow. "nightly business report" has been brought to you in part by. >> thestreet.com, interactive financial multimedia tools for an ever changing financial world. our dividend stock advisor guides and helps generate income during a period of low interest rates. we are thestreet.com.

next, on "great performances," experience the voice that excited audiences the world over. [singing in italian] in the 50 years since he burst upon the scene, no one has compared to pavarotti. his is simply "a voice for the ages."