this is "nightly busines report" with tyler mathisen sue herera. anything but dull. stocks close out the first three months of the year just about where they started, but the wild swings kept investors on edge and created some big losers and some big winners. priced out. frost is building in some houses. too optimistic is the market setting itself up for a big disappointment when the employment report comes out on friday? all that and more tonight on "nightly business report" for tuesday, march 31st. >> good evening, everyone. volatile. that describes the first quarter and the final day of trading was no different. stocks which had been lower most of the day took a late-day

dive ahead of the closing bell. some say it was end of quarter rebalancing and others say it was uncertainty surrounding the iranian nuclear talks that kept investors on edge. at the close, the dow jones industrial average dropped 200 points to 17,776. the nasdaq finished 34 points lower to 4900 and the s&p 500 fell 18 for the quarter, sue, blue chip posted first quarterly decline in a year that would be the dow. nasdaq and s&p 500 rose for the ninth consecutive time. as for the best and worst performing stocks in the s&p 500, hospira topped with a quarterly gain of 43%. the big loser on the s&p 500, san disk. off 35%. one of the biggest stories of the quarter, of course, the doll it had its strongest three months since way back in 2008 while the euro posted its worst quarter on record. now to those iran nuclear

talks. a big geopolitical undercurrent for the markets. the state said the talks between iran and six world powers go past today's self-imposed deadline and extend to tomorrow. josh erinest echoed that saying the talks would continue quote as long as the conversations are productive end quote. and as for oil, which could see additional supply of sanks on iran oo lifted dropped for a third straight section. west texas intermediate down to $47.60. brent fell 12% for the month. consumers are feeling more confident about the economy. the conference boards consumer confidence index beat estimates edging back to a 7.5 year high. one of the big reasons for the better mood is increasing optimism about the outlook and wage growth. economists say lower gas prices did play a role in that increased optimism. home values are growing. that's the good news. the bad news for homeowners is

that prices are rising at a far slower rate than a year ago. home prices increased 4.5% in the year end in january according to the s&p case shiler home price index but as home prices rise, that's leading to overheating in some markets but not all of that overheating is alike. diana olick explains. >> reporter: jennifer castillo and justin thornton are looking to buy their first home together in washington, d.c. so far, they haven't found it. what they have found is -- >> i would say sticker shots. >> reporter: tight supply in the d.c. market is leading to bidding wars. >> eight or nine offers, $100,000 over asking all cash offers from wealthy families. soy it's just difficult. to the poi it becomes unreasonable. >> repor d.c. is now overvalued by about 10% to 15% according to a new report from fitch ratings. but the values are based on

strong local fundamentals unlike some other markets. >> we don't really see as much risk in the market as we do in a place like las vegas, like phoenix. >> reporter: add riverside, california and miami to the former boom to bust market. they're overvalued due to stiff competition from investors after the housing crash. their economies are not as strong and the high prices will willing be unsustainable. as opposed to seattle, san francisco, houston, and austin which are also overvalued but supported by both growing populations and economy. >> it's the discrepancy between those places that have restricted supply investor demands pushing up prices versus those places that are really going through a general economic expansion. >> reporter: h prices in the nation's largest markets are accelerating again, seeing gains in january than december. that's partially due to tight supply but also to an improving economy and low interest rates.

plus spring. the steep price gains hurt sales but this year's demand appears to be stronger even though prices are rising at twice the pace of income. it's really a double edged sword. higher prices bring homeowners up from underwater and back into the market but they also price potential buyers especially first-time buyers out. justin and jennifer are not giving up. >> we just have to have a lot of imagination when we look at properties and see beyond what it currently looks like. >> reporter: but perhaps adjusting their wish list. for "nightly business report," i'm diana olick in washington. >> the housing market is one sector of the economy the federal reserve is watching closely and today an official said the central bank's key interest rate should be raised in june. federal reserve bank of richmond president jeffrey lacquer points to stronger job market consumer spending growth and inflation heading back towards the fed's target. he said unless inc economic reports are very weak the case

to hike rates in june are strong. the federal reserve will be paying close attention to the march employment report due out this friday. despite the fact that the markets are closed for good friday. but as steve liesman reports, are economists too upbeat about the market and could that set the market up for a big disappointment? >> reporte hopes are high on wall street for another good jobs report from main street but main street talking and is wall street not listening? growth in the first quarter slows to a crawl with lackluster consumer spending corporate profits flat lined and home building anemic. not to mention the snow that piled up in february hobbled a lot of businesses on main street in the northeast. amid all the disappointing data from february forecasters look for march to register another solid month of job growth with a gain of 248,000 jobs. leaving some of the bulls on the street to wonder if they are out over their forecasting skis. >> i just don't think job gains at this level are sustainable unless we really have a very

rapid growing economy, so yeah, there probably will be mild disapp in jobs in the next six months or so. >> reporter: the bulls believe business looks through what they call a temporary weather induced economic slowdown and kept hiring. the proof? jobless claims a measure of firing in the economy, has fallen back to a level that suggests another good jobs report. and making it difficult to be pessimistic now. over the past several months, ec underestimated job growth by 200,000 in just one report. >> the jobs report in particular has been quite strong. job growth in particular has been quite strong. and whether the number on friday is a little above or below estimates doesn't change the larger trend. >> reporter: economists will get an early signal from tomorrow's adp report where the private sector job growth of 225,000. anything below 200,000 could cue wall street to pay a little more attention to the message from main street. for "nightly business report," i'm steve liesman.

in indiana today, governor mike pence said he's open to changes to a recently signed religious freedom bill. this after the law spawned a public outcry in the local and national business communities which we reported on yesterday. mary thompson now indianapolis. >> reporter: facing growing criticism of signed, mike pence submitting tuesday it's taking its toll. >> i tough. >> reporter: change to a religious freedom law that provides legal cover for businesses to discriminate against gays and transgenders. >> i do believe moving legislation this week that would make it clear this law does gi businesses the right to deny services to anyone deemed appropriate. >> reporte clear up what he called mischaracterizations by the law fueled by national media and organizations who didn't

understand the law's intent that it protects personal freedoms. but in a speech in new york monday arnie sorenson became the latest to fault the bill calling it pure idiocy and urged to change it soon. >> the opportunity this presents is that it is so manifestly wrong that if we can get indiana not just to change its view but run for the hills quickly. hopefully we can put this kind of non-sense behind us once and for all. >> reporter: it's a sentiment shared by the chamber of commerce. representing almost 2500 companies that opposed the original bill claiming it would hurt new talent new investment and businesses to indiana. so even as lawmakers pass out cookies and flyers ensuring constituents the law would be fixed, bill hubert taking a cautious stance saying the chamber wants to see the language before endorsing the change. >> the proof is in the pudding.

that will be our attitude as well as a business organization. any solution has got to remove all doubt that individuals can be discriminated against. >> reporter: the state government promising fast action as lawmakers face a tight deadline. any addition needs to be written, approved and passed before they adjourn at the end of april. if not, the law likely goes into effect as planned and as is in june. in indianapolis i'm mary thompson for " despite the criticism from business leaders, arkansas passed its own religious freedom bill very similar to indiana. the bill cleared the legislature now heads to the governor's desk where it's expected to be signed. like the indiana law, guarantees religious freedoms that critics say could be used by individuals or businesses to veil discriminatory behavior. defenders say the bill's intent is to prevent governmental overreach and nothing more. so should companies take a stand on social issues like the

indiana religious freew or are they playing roulette with corporate reputation? jim stangle, the ceo of his own branding firm. welcome to "nightly business report." >> hi, sue, hi, tyler. good to be with you again. >> if speaking strictly business does it matter what the cause is? we saw starbucks take on race relations and now we're seeing the likes of eli lilly and marriott and other very large publicly traded companies coming out and saying that they oppose this particular move by indiana. so give me the risks versus the benefits. >> i think first on the benefits sue, i think i'm finding most high growth companies now and those that are attracting talent are really magnetic are the ones that do lean forward or most proactive on taking a point of view in social issues. frankly, their employees want to

see that and also, their customers want to see that. we're seeing that as i think a real megatrend and the millennials expect that more. on the downside the more polarizing the cause, or the issue, obviously, the more risky it is. but at the same time any stance you take on these issues whether it's in anti-discrimination, whether it's gun control, whether it's the environment, you better act on it. your behavior better be supportive of it. you need to be coherent in your actions and so that's the big one and you have to be ready for fringe groups, activists, controversy, and ready to be engaged in social media and be very conversational about the issue if you're going to take it on. >> jim, you had a long career in big business at prok terctor and gambill. laws are in indiana. why do you think business not rally to the cause in those cases the way it seems to have

this time? is it principally of timing passed at heightened interest in equality for gays? >> i think it's timing tyler. i think it's how the messaging came out of indiana. i think if they had to do it all over again they would have done it differently. i don't think they want to be near discriminatio but that's not what came out clearly also we live in a time of amplification and social media. that's a reality. i think what happened is it took on a life of its own and my guess is that it will be reviewed and scrutinized in the other states now. >> you know, the other aspect of this jim, and i'd be interested in your thoughts on this, if you're a privately held company, perhaps you don't have to engage in this type of discussion but if you're a publicly held company with published culture and, you know, rules about is done within your company, it behooves you to engage does it not?

>> absolutely sue. but actually i think whether you're private or you're public you know you have a reputation with your employees first. every ceo i talk to private, public their number one concern is attracting talent and the right kind of talent. and people today want to work for compan who have a point of view try to make the world better in some way. time my alma mater, p and g issues with mothers and children facebook takes on anti-bullying as is twitter. they take on issues some more polarizing than others but employees and customers want to see you step up and those that are stepping up are rewarded with higher growth and data supports that both the consumer data and the market share data. >> very quickly though jim, why do you think starbucks stepped back from the race together campaign to the extent they have stepped back that they announced a couple of weeks ago, quick answer please.

>> yeah tyler, i think the strategy is right for starbucks. they've taken on social issues over decades and i think the strategy on race was right. the topic was troublesome, everyone in line to get coffee want to move fast. my guess you'll see them take on this issue further but do it in forums and discussion groups coffee hours. you won't see it in the coffee line. good strategy wrong tactic. >> won't be written on the cup. >> thank you jim stangle of jim stangle company.

warren buffett's berkshire hathaway acquired two small virginia papers my home state, the company's purchase of the martinsville bolton and post adds to dozens of weeklies in ten states. the terms of the deal not disclosed. warren buffett doesn't just have eye on newspapers. in an interview today with becky quick, the oracle of omaha wants to purchase additional auto ships in the u.s. following acquisition of the privately held car dealership last year. >> this was a huge move for you to go in are you working to expand that pool are you expanding in terms of the number of auto dealerships? >> very much so. 71 81 now? yeah and we've heard from a lot of dealers, we'll hear from more i'm sure and i'd be surprised if five years from now we aren't a whole lot bigger.

>> and part owner of heinz, becky buffet asked about kraft and whether he's looking to buy other food companies. >> we would hope it would not be the last major transaction, but we'll only do transactions that are friendly. so really depends on whether there are willing sellers of a price we'd like to buy. but there is no finish line. >> and when it comes to the economy, buffet characterizes it as being extremely steady. well ibm, a buffet holding, outlines a major internet of things strategy and that's where we begin tonight's market focus. big blue announced $3 billion investment to establish a unit aimed to connect everything from a smartphone to a jet engine. its first partnership is with the weather channel. the company will move its weather data services to the ibm, yes, the ibm cloud. appropriate for the weather channel, right? shares of ibm off more than 1%

at $160.50. soon you could order an egg mcmuffin as late night snack. mcdonald's testing out all day breakfast at a few locations in the san diego area that starts in april. shares of mickey d's finished at $97.44. cable combo to tell you about. that is this. charter communications buying the fellow cable operator bright house networks in a deal valued at more than $10 billion. charter, now the fourth largest cable operator in the company, said it would beco the second largest after the deal. shares of charter rose more than 5% to $193.11. bright house is not publicly traded. >> the luxury watch maker said it would raise prices and streamline operations to offset slow growth and the strong dollar. the company said those currency head winds will continue into next year. shares popped more than 11% to $28.52. johnson controls the auto parts

maker selling global workplace solutions to cbre group for $1.5 billion. johnson wants to focus on its core automotive operations. shares of cbre rose more than 6%. johnson controls was up more than 1%. shares of diax surged in after hours trading after the biotech company had promising results with a drug that treats rare inflammatory condition successful in an early sta study. shares up more than 40% after the bell. before the close, stock off almost 2% to $16.75. >> etsy is launching road show for ipo on april 1st. choose april fool's day for that but whatever. the online crafts offers more 6 milli shares to be priced between $14 and $15. list on nasdaq under the symbol etsy. that's smart. morgan stanley jointly running the deal. who pays the biggest share

of taxes in america?l tell here's what to watch tomorrow monthly auto sales for march will come out. expected to be pretty good. world's largest retailer walmart hosting investor day. steve liesman told us earlier in the product adp's report on private sector growth out before the opening bell and that folks is what to watch tomorrow. april 15th. we all know that date. it's time to pay uncle sam. but a new report shines light on

who is paying the bigger share of taxes, individuals or corporations? hampton pearson has more. >> reporter: as the 2015 tax filing season enters the home stretch, a new congressional report shows taxes paid by individuals last year reached their biggest share of the economy since before the financial crisis and the great recession. but taxes paid by corporations are declining. here's what the joint taxation committee found. 2014 individual tax receipts total $1.4 trillion or 8.1% of gdp. meanwhile corporate taxes collected topped $320 billion just 1.9% of gdp. >> the real news is payroll taxes are back which builds off bread and butter payrolls paid by average americans and that's where you shine the economic to show up. >> reporter: the new data complicates the debate over tax reform. pro-business groups say lower

corporate taxes make american companies more competitive worldwide. those declining tax receipts however, in addition to those who say wealthy corporations should pay higher taxes. the question is could they and meet other objectives like hire those average americans and sell the products those average americans make in competitive markets overseas and grow and invest the way we like. that's the real economic debate but the number taking the value. corporations are not paying their fair share. while the tax reform debate is on hold with 16 days to go the irs says the tax filing season is going well. tax receipts expected this year to top $3 trillion. for "nightly business report," i'm hampton pearson in washington. it's tax tuesday here on "nightly business report" and tonight, we're looking at some of the more unusual tax deductions that you may be eligible for. sharon epperson joins us from

new york. thank you. >> good to be here. >> tell us the craziest tax deductions out there we're not aware of. >> if you have a dog, you can't claim a tax deduction for the fami pet but if this dog is guarding your business if you have a small business then you may be able to deduct the cost of the food and the vet bills as a business expense if it's an ordinary and necessary business expense. that's something people don't think about. the other one is swimming pool. swimming lessons generally not tax deductible but in the past the irs approved swimming pools being built for those whose doctor has prescribed having the swimming pool as a medical necessity due to some health concern. dry cleaning another expense that comes up if you're traveling for work. you may have to have your clothes dry cleaned. that could be a business expense, an ordinary necessary business expense and then cat food. you wouldn't think that's a deductible. again, for the family pet. it's probably not. but there has been an instance where a cat was actually a junk

yard cat responsible for doing guard guardi ad that area and a tax deduction to cat food as well and the one that really got me i thought, how could this be possible body oil, yes, but if you're a body builder, part of what you use for your business and your performance and for what you're doing, that in the past, has also been able to be a deductible item on one's tax return. >> sharon let's say for argument's say i have forgotten to deduct my body oil. in the recent year. how do i go about addressing this problem? >> if there are tax deductions and credits you really want to get, you can go back as far as thm them. you can file an amended return, a 1040 x form back to 2011 if you do so by april 15th. there are ways to get these tax and others you may be likely to qualify for. >> let's move to the states because some of the states have

quirky rule and laws. some can save you money. >> in new york if you have your big old cot with cream cheese and toast, that is a taxable item but if you just buy the bagel, it's not because once they cut it it's a processed food so then you'll have to pay sales tax. i found interesting was in arizona in terms of ice cubes versus ice blocks. ice cubes in mixed drinks ice blocks are taxed and then who knew you could get fresh fruit from a vending machine has never tried this but if you do in california, it's taxable if you get fresh fruit. >> coming out of a vending machine, pay tax. >> how are refunds going this year sharon? roughly the same as last year a little higher? >> roughly the same as last year around $2900 and oddly enough, same as it's been in past year. if you do direct deposit, close to $3,000 a little higher. it seems like those who ask for

direct deposit are getting more back but about 80% of those who filed so far have gotten a refund sharon epperson things i never thought i'd be able to deduct on my tax form. appreciate it very much. who knew? >> the cat food. my cat. >> there you go. that will do it for "nightly business report" for tonight. i'm sue herera. thanks for joining us. >> and thanks from me as well. i'm tyler mathisen. have a great evening and we hope to see you back here tomorrow. bring th.

the following kqed production was produced in high definition. this time on "spark" -- first, the women of "kitka" preserve and celebrate the rich vocal traditions of eastern europe. next, the mixed-media work of santa cruz artist victoria may is inspired by the intricate process of custom dressmaking. then, a look at how local artists are surviving the recession, and what we might be able learn from the historic wpa programs of the '30s. next on "spark." major support for "spark" is provided by --