report" with tyler mathisen and susie gharib. brought to you in part by -- thestreet.com. featuring stephanie link who shares her investment strategies, stock picks and market insights with action alerts plus, the multimillion dollar portfolio she manages with jim cramer. you can learn more at thestreet.com/nbr. closing in on the end of the first quarter. what's working and what's not. and which trends have emerged that could benefit investors in the second quarter? outdoor spin. cbs's billboard unit goes public. why this old media spinoff has investors excited. market monitor. our guest tonight has a list of companies that have undergone big restructuring. and now he says their shares are ready for takeoff. all of that and more tonight on

"nightly business report" for friday, march 28th. good evening, everybody. i'm sue herera filling in for susie gharib. >> and i'm tyler mathisen. welcome, everybody. it is not over yet, but the month of march and the first quarter of the year are just about history. and so far, wall street's performance has been about as welcome as this winter's weather with the major averages swinging up and down like the temperatures but ending pretty much flat for the quarter. and it's not just here. that same halting performance has been seen in markets all over the globe. so what trends outperformed in the first quarter of this year, which didn't, and what lies ahead for the second quarter kicking off on tuesday? bob pisani takes a look from the new york stock exchange. >> reporter: it will be a choppy end to a choppy quarter. last year's first quarter everything was up 10%. this quarter will produce real winners and losers, what traders call a stock ticker's market. let's look overseas first. many traders who were buying japanese stocks like crazy last

year suddenly got clobbered this quarter. stocks had been rising there on a weak yen and japanese stimulus program. but effects of that boost has now faded. china started off very weak but has been rallying recently. the problem with china is that their growth appears to be slowing down. now, here in the u.s., gold mining stocks which were among the worst performers last year were very big gainers as were airline stocks, which rose on higher profits and on reduced capacity. but the most discussed change in the market came from new techs and social media stocks, high flyers. for example, groupon, twitter, amazon, linked in and even netflix, all of which started the year very strong, drooped in the second half of the quarter as traders became more concerned with valuations. we'll start earnings season for the first quarter in just two weeks. the kpexpectations are not very high because many companies,

particularly retailers, cut their earnings forecast due to the brutally cold winter. but there's considerable hope that activity will pick up now that the weather is finally starting to improve. for "nightly business report," i'm bob pisani at the new york stock exchange. >> joining us now to talk more about the markets and his second quarter expectations is russ kestrich, global chief investment strategy with black rock. russ, good to have you back. welcome again. >> thanks for having me. >> i want to get to one of the risks that you're concerned about in the second quarter of this year. and that is geopolitical instability. and within just the past few minutes we've gotten word that president obama and russia's president putin have had a conversation where actually mr. putin called mr. obama trying to work out a quote diplomatic resolution to the crisis in ukraine. what would a quote diplomatic resolution of this instability in that part of the world mean to the market, and what would happen if things heat up rather

than cool down? >> well, i think right now the risks are to the down side in terms of things heating up. a solution from the market's perspective means that this gets taken off the table. this is not something investors have to worry about, either in escalation of violence or an escalation of sanctions that really materially impacts the economy. the risk is not so much that things are going to blow up or get out of control in the ukraine. the problem is more that there's very little bad news discounted into the market. you've got volatility, well below the long term average. it means if you do get an unpleasant shock, that's something investors are not prepared for. >> what about if it green lights the market if they do reach some sort of diplomatic resolution? >> well, i'm not sure that's going to produce a rally. because again i don't think the market's expecting a particularly bad scenario right now. instead i think really what you need to get a catalyst for a leg up in the market is less about the international situation, less about the ukraine. it's closer to home.

as we get into the first quarter earnings season, do we see positive guidance? do we see an improvement in the economy? do we see better earnings? that to me is the necessary ingredient less so what's happening in the ukraine. >> russ, one of the stories of this first quarter has been the sort of rotation away from what we've been calling the momentum stocks, which are stocks basically that go up because they were going up. and a move toward more value, i guess, in the market. do you expect that trend to continue in the second quarter? >> i think it will. i think this is a really important point. because the fact that the market's been in trading range the last few weeks and really the whole quarter obscures the fact there are large rotations going on. we've seen a movement out of the glamour stocks into growth and value, more recently seen a move out of small cap into large and megacap. they reflect the same underlying trend. in a world where most of the mainly asset classes are close to fair value, investors are looking for bargains. i think what you're seeing now

is a rotation into parts of the market where investors see some relative value, in my opinion that's likely to continue. >> do you go more for the large caps and leave the mid caps and small caps behind this year? >> i think that investors do have a modest tilt to the large and the megacap names. a couple of reasons for that, sue. first of all, they are cheaper. they're much cheaper. but second of all, if you see what's likely to happen on the monetary side, if we do see a creep higher in rates, particularly real or inflation-adjusted rates, that is probably a bigger headwind for small and mid cap names which tend to experience more multiple compression when real rates rise than large and megacap names. so i think the larger companies are likely to be more resilient if we do see rates rise. >> russ, always great to see you. thanks for being with us. >> thanks, tyler. >> russ kostrich for black rock. it was a volatile friday to wrap up a volatile week on wall street. stocks soared higher earlier in the session before ending the session with only modest gains.

good economic data helped of course with personal income and personal spending both rising .3% in february. despite all that cold and snowy weather at the start of the month. on wall street, the dow was up as much as 150 points shortly after the open, ended 58 points higher, and higher for the week as well. the nasdaq added 4, but ended its worst week in a year and a half after a selloff nint net and biotech stocks. the s&p today adding 8 and it was pretty much flat for the week. a solid debut for cvs outdoor americas, that's the billboard giant spun off from broadcaster cbs. it began trading for the first time today. shares moved higher right out of the blocks, surging more than 5% for the session as a whole. morgan brennan now on why this so-called old media form of advertising is now attracting a lot of new money. >> reporter: ever wonder who's responsible for those billboards on the highway? they're called out of home media

companies. they own and operate billboards, airport signs, subway and bus station posters, even those neon displays you see in times square. they're considered old media companies, and today one of the industry's biggest debuted on the stock exchange. called cbs outdoor americas, the new company was spun off by its namesake, cbs corporation. the broadcast giant spinning off its outdoor advertising business to focus more heavily on content. >> the idea of splitting off the outdoor division, it was a positive for the outdoor group plus a positive for cbs. because it gives us more cash and more ability to continue to expand in the content business. >> reporter: but cbs outdoor has amassed quite the display empire. the company counts 330,000 displays across the u.s. and another 26,200 in canada and latin america. and those numbers are likely to grow. for the industry, spending on outdoor ads grew more than 4% last year. that's why analysts say it's a

good time for the so-called old media stock to go public. >> outdoor economy has picked up a little bit. so you've got a positive move in the stock price. but cbs is not going to stay in the outdoor business. they're still an investor. but their core business remains entertainment. >> reporter: so far investors seem to agree. cbs outdoor stock surging 5% in its first day of trading. a big difference between this tried and true business and the so-called new media companies that have been garnering most of the attention on wall street. compare that to king digital, the maker of popular mobile game candy crush saga gachlt when that company went public early this week it dropped 15% on its first day. advertisers still only spend about 5% of their ad budgets outside. and with a growing popularity of platforms like mobile, it's only going to become more challenging to attract those ad dollars. for "nightly business report," i'm morgan brennan on the sunset strip in west hollywood.

two blue chip dow components are going to battle. walmart is suing visa for $5 billion. the world's largest retailer alleging the payments giant is charming unreasonably high fees on purchases that walmart's shoppers make with their credit and debit cards. mary thompson has more. >> reporter: it's an expensive charge in a suit filed in arkansas, walmart claims visa illegally inflated swipe fees on credit card payments from 2004 through 2012. walmart is seeking $5 billion in damages. >> i think they're trying to get attention. >> reporter: the suit is the latest chapter that long running dispute between the nation's retailers and visa and its rival master card. for years the retailers, including walmart who pays a lower negotiated rate, maintained the two firms violating anti-trust rules by overcharging retailers. in its court filing, walmart claims visa has engaged in a conspiracy with some of the nation's largest banks to

illegally fix the interchange fees and inflate the network fees that walmart and other merchants pay on visa charge card transactions. walmart declined to comment on the suit as did visa. though it wasn't totally unexpected. walmart is one of 35 big retailers that opted out of an earlier $5.7 billion settlement with visa and master card. the retailers saying the swipe fee settlement wasn't tough enough and wouldn't prevent visa and master card from increasing swipe fees in the future. among those filing separate anti-trust suits against visa and master card, macy's, target, office depot and 15 others. walmart declined to say fit plans to file a film suit against master card, but analyst david darst whose firm is seeking investment banking business from visa, says retailers are protected. under the share structure, any litigation costs above and beyond reserves visa already set aside will be borne by the $22

billion worth of class b shares held by banks like jb morgan that used to own visa. >> the largest banks and credit card issuing banks will be the ones that actually bear the cost via their investment in visa. >> reporter: for "nightly business report," i'm mary thompson. coming up, airline stocks have been flying high, and there's one regional carrier that many are calling the new darling of wall street. see if you can guess which one. the government is demanding at least $1 billion from drugmakers for delaying generics. the federal trade commission is seeking at least that much from

big pharmaceutical companies which allegedly took steps to impede the sale of cheaper generic medicines after the patents on high-priced brand name drugs had expired. the drug companies being sued include salve, activus, previously watson pharmaceuticals, pataglads, and cefalon owned by teva. another blow to pimco, the world's largest bond fund which is still reeling from corporate defections over allegations of a hostile work environment. pimco's total return fund may not be returning very much these days. the flagship portfolio is trailing 87% of its peers so far this year. that according to morningstar. different story at the nation's big airlines, sue. among the companies that have been top performers so far this year, especially alaska airlines with shares up 24% since december. alaska air, which is breaking out of its niche of flying only in the western u.s., may be about to soar even higher.

phil lebeau has more. >> reporter: with the eskimo on the tail, alaska airlines stands out on the tarmac. and increasingly among flyers looking for a new way to the western u.s. >> i think they are efficient, friendly, and they do a pretty good job. >> from my experience this time, i like them better. other airlines. >> reporter: from its hub in seattle, alaska is rapidly expanding, adding flights to five new cities, including baltimore and tampa. this latest move today is really just about strengthening our hub in seattle and sort of playing to our strengths here. >> reporter: because it's smaller than other airlines, alaska has been willing to try new ideas for customer service. like boarding passengers from the front and back of the plane. next month passengers will be able to print out bag tags at home so they'll spend less time waiting to check luggage at the airport. alaska's also testing an app telling you wait times at

security before you get in line. >> i have four choices, literally right this moment at the seattle airport. which one is the fastest? oh, the fastest one is the one down here. i am very happy to walk down there to get the faster line. >> reporter: as alaska gets bigger, it's also facing stiffer competition. delta is expanding in seattle, and other carriers are adding flights along the pacific coast. alaska's very much a west coast airline. while they have added flights from seattle and a few other places to the east coast, ultimately it ends up touching either in seattle or portland. and they've got to figure out what to do. they're really hemmed in. >> reporter: despite potential headwind, alaska is proof airlines have room to soar even higher. phil lebeau, "nightly business report," seattle. blackberry posts a smaller than expected loss, and that's where we begin tonight's market focus. cost-cutting helped the struggling smartphonemaker's fourth quarter results but sales still missed estimates.

the company has lost a stunning $5.9 billion for its fiscal year. but ceo says a turn around is in sight. >> we need to build up the capability, both in engineering and marketing as well as in the sales force. but we're going to be very moderate. everything we talk about being able to be cash flow positive by the end of the year, fiscal year, and being profitable the next fiscal year in some quarters, it's still right on. >> reporter: nonetheless, shares fell 7% to $8.41. finish line's quarterly earnings rose 25% on stronger same-store sales. the athletic gear retailer said demand for basketball shoes helped make up for a slow down in sales of run sneakers. despite the increase, revenue came in short of estimates. still, shares were up 2% to $27.05. massachusetts is blocking the sale of zojenix's controversial but fda approved painkiller zohydro.

the state declared a public health emergency that stems from the abuse of opioids. the drugmaker criticized the move saying it unfairly restrict access to an approved drug. shares tumbled on the news. an upgrade lifted the shares of cognizent tech. morgan stanley raised from overweight to equal weight. shares were up 4.5% today to $46.69. >> our market monitor says individual stock selection is a much more significant factor in portfolio performance this year than it was in 2013 when virtually every stock in the s&p 500 and the dow went up. he's jordan posner with matrix asset advisers. welcome, jordan, nice to have you here. so what type of stocks do you find still have value? we've talked earlier to russ

kostrich. he said they're favoring the larger cap stocks. does that fit in with your portfolio selection? >> well, we're a large cap stock manager. so we're always looking for stocks within the large cap sector. what's interesting is that what we're finding most attractive are stocks in the financials, the industrials and the energy sectors. and that's because we're expecting that the general economic activity in the u.s. and actually worldwide will improve throughout the year. and these three sectors should have pretty good participation in that recovery, and the stocks we think in those sectors are pretty cheap. >> you know, jordan, it's been a kind of choppy first quarter of the year which ends on monday. is that the kind of performance volatility we've been accustomed to for the remainder of the year? >> we expect for the year you'll probably see something in terms of total return, dividends plus appreciation, in the range of 8 to 10%, which is kind of a normal historical range. but we do think that there'll be volatility throughout the year.

we would expect there to be some type of correction perhaps as much of a 10% correction at some point during the course of the year. and that's typically generated by some kind of unforeseen macro event. we would prefer to use the dips down, the downward volatility, as an opportunity to buy stocks that we think are attractive, and wouldn't necessarily chase rallies to increase in asset allocati allocation. >> in the health care sector, helogic, why? >> we're looking at companies that have the ability to improve their business internally not just sell more wingetmore widge it were. the ceo has brought in excellent operators. the businesses are real franchises. leader in mammography for women. a terrific business, throws off a lot of cash. and the company is really working to restructure itself during the course of the year. we would expect that 2014 will

be an ebb in earnings. when we look into '15 the stock is trading at around 13 times. and we think that our estimate of the intrinsic value of the company is probably something close to 30. >> your second choice is occidental petroleum. >> probably over the course of a couple of years, as a result of some management turmoil actually a fight in the upper realms of management, the ceo who's continued to be there, mr. chasten, has gone after a separation of the company, selling some assets, unlocking some of the value. when you look at the sum of the value of the parts, that's closer to 120 a share. you'll start to see actions taking place in the second half of '14 and into '15 which will unlock that value, make it become more visible. >> devin energy has had tough sledding. but you think management is making some rather aggressive moves to right that ship and

make some changes. >> absolutely. the company has historically been perceived as very oriented towards natural gas, which has been a difficult area. they've been reinvesting very heavily, getting rid of assets and reinvesting in more oily assets as it were. these assets have much higher value weigh valuations, generate more cash and have done a very good job in terms of refreshing and upgrading the asset base. that has not been reflected in the stock. >> all right. of the stocks that we mentioned do you have any disclosures to tell us? >> we own all three of these stocks for our clients. my family and i own them ourselves. >> jordan, thank you so much. great to see you again. jordan posner. when we come back, millennials and money. what makes this generation of investors so different from previous ones?

general motors is expanding its ignition switch recall to include an additional 824,000 cars. that is on top of the already recalled 1.6 million vehicles. the recall now includes all model years of the chevy cobalt, the chevy hhr, the pontiac g 5, the pontiac solstice and the saturn ion and sky. ty? sue, a big win for tesla, the electric carmaker striking a deal with new york governor andrew cuomo that will let tesla keep its existing stores in the state. ceo ilan musk has been battling a few other states that have challenged its direct to consumer tesla sales model. separately, federal safety regulators ended an

investigation into its model s sedan following some recent car fires caused by road debris, puncturing the lithium battery. the company says it will add an additional metal shield to the undercarriages of all new and previously purchased model s cars to stop foreign objects from damaging those batteries. and finally this evening, a peek into what the future of wall street might look like as some young millennial investors met at the university of dayton's rise conference discussing their investment strategies. and dominic chu was there. >> reporter: once a year, some of the brightest young investors in the country and around the world gather here for the university of dayton's student investing conference. it's known as rise, redefining investment strategy education. >> you need to be trustworthy, ethical, and responsible. >> reporter: it's here that the millennial generation comes to exchange ideas and meet some of the industry's elite personalities. >> i started with the federal

reserve right out of college. and three decades later, i had a fascinating and rewarding career with the federal reserve of. >> reporter: so what attracts these titans of wall street? they know these students have their fingers on the pulse of the market. >> i love their energy. i love getting some great ideas from them. and honestly, i'm also looking at potentially hiring a few down the road. >> reporter: what makes the next generation of investors different than the previous ones? students like nathan hague are taking a much different approach to investing than his parents or grandparents did. >> i think the older generation typically invested a lot more in the blue chips, single stocks. whereas somebody like me i'm a little more tactical. i like kind of the shorter time frame, maybe three to 12 months. i typically do a mutual fund. >> reporter: others are focused on more established and traditional old world investments like in the energy sector. anya mesa from new jersey city university is focused on picking individual stocks. >> we have hp, which is

helmeridge and payne. we cover that for a little over a year right now. we've received 116 return on our investment. it's definitely amazing. >> biotech for one reason is usually if you play it right the risk can match the reward. >> i love crowd source. it's a progressive industry. that's something that everyone needs is growing revenues. >> i really like social media because the massive potential it has. everybody's on it. there's always new acquisitions the companies are taking. it's a growing industry. i think we should take advantage of that. >> reporter: many students have a great track record, one that even the pros would be envious of. but they're trying not to rub their success in too much. as they know, mastering the markets from the market masters is just one step taking them towards their dream jobs. stay tuned, because these folks are the future of wall street. for "nightly business report," i'm dominic chu. >> looks like they have some very bright futures, too. some of those picks were great. >> meet your new boss. >> no kidding. >> we'll be working for them in

a few years. >> hopefully. >> hopefully. >> for "nightly business report" for tonight, i'm sue herera filling in for susie. >> and i'm tyler mathisen. have great weekend, everybody. we'll hope to see you back here monday night. "nightly business report" has been brought to you in part by -- >> thestreet.com. founded by jim cramer, thestreet.com is an independent source for stock market analysis. cramer's action alerts plus is home to his multimillion dollar portfolio. you can learn more at thestreet.com/nbr.

gwen: headaches and challenges in ukraine, on health care, and at the vatican. we'll cover it all tonight on "washington week." power ia is a regional that is threatening some of its immediate neighbors. not out of strength but out of weakness. gwen: gauntlet thrown. but no sign that russia is backing down as nato closes ranks, the next move is vladimir putin's. in rome the first african-american u.s. president meets with the first latin american pope. >> i don't think that his holiness envisions entering into a partnership or coalition with any political figure on any issue. his job is a little more elevated. gwen: the differences and the similati