this is "nightly business report" with tyler mathisen and sue herera. hard assets as stocks slump, gold shines leaving some investors to wonder if this is the year to heavy metal finds it luster again. road to a rate hike. why march is not off the table just yet for the federal reserve despite all this market volatility. one way ticket. why this lunar new year is different for some of china's m mie grant works. all that and more tonight on monday, february 8th. good evening. it was another breathless start to the week. the dow plunged 400 points mid day as investors rushed out of stocks and other risky assets.

just when it looked like things could get a lot worse, they didn't. the buyers came out of hiding. by the closing bell the dow jones industrial average was off only 177 points to 16,027. the nasdaq fell 79. the s&p 500 dropped 26. what should investor make of the late day buying? bob helps breaks things down from the new york stock exchange. >> reporter: it was another ugly day but didn't end as bad. a will the of problems started in europe with bank stocks down 9%. it's off 35% this year. there's concern about declining revenu revenues. our banks are in much better shape. that didn't stop the big u.s. banks from hitting 52. stocks did turn around mid day led by a rally in energy.

conoco and exxon ended the day in positive territory. the s&p 500 is only about 14% off its high. transports, banks, energy, material names, for example, close to 60% of the s&p 500 are down 20% or more. the markets way off the highs. the question is when is the bottom. we're still seeing a lot of stock for sell. that's twice normal. we're not seeing a lot of buyers coming in to pick up pbargains. that's not good. that did happen toward the close today. there's been no follow. they come and sell the following day. we need a lot more late day rallies like today before anyone believes that real bottom is in. for "nightly business report," i'm bob at the new york stock exchange. >> the energy sector turned at the end of the day. for most of it the group saw very heavy selling. one of the hardest hit companies

was cheasapeke. it lost half its value. bankruptcy rumors denied. it ended 33% lower. as morgan brennan reports they weren't the only energy company to come under pressure today. >> the pain is spreading and the latest to feel the effect is cheasapeke energy. they are issuing a statement saying the law firm has served as one of its counsel since 2010 and the national gas producer has no plans to pursue bankruptcy. investors jumped ship on the stock even if they maintain they can hang on. >> it's important to remember, they have a $4 billion undrawn credit facility today. we expect that to get a big haircut to 3 billion or maybe below. it's undrawn today. it can take the nearest debt

maturities and put them on the credit facilitfacility. >> shares of pipeline operators and equity in williams company also fell. it's drawing the company's merger into question. williams is a major partner of chesapeake. another name that tumbled today is lynn energy. they said it's reviewing strategic alternatives to sure up the balance sheet. all this as ratings agency cut their out look. moody's placing 120 firms under downgrade conversation. fears of widespread bankruptcy are growing. 32 north american oil d gas companies filed for bankruptcy last year including samson resources, quick sources and swift energy. there's up to a third of u.s.

producers could end up are structuring by mid 2017 if prices continue to stay this low. other names they are watching is sand ridge energy which was delisted from the new york stock exchange and put out a press release this morning say it has no formal plan but continues to review all options related to restructuring. gold is starting to shine.i vesters, they are seeing some gain. gold is up 12% making it the best performing asset of 2016 so far. we see what's behind gold's move and if the trend higher might continue. >> reporter: gold prices have gotten off to a good start in 2016. more than 10% pop due to volatility in the global equity

market. the mixture between a return to safety and optimism. it won't be as aggressive as raising rates as predicted last year. >> since the beginning of the year gold has been the darling. they are down on the year. equity markets are volatile. >> reporter: lower equity. will they have their moment in 2016. many are forecasting they could continue to run. some of theest maits as high as 1500. >> i would expect because of the volatility in the stock market and it will continue for the first half of year that investors will look to good even more so. >> reporter: there are risks that it settle down and feds find enough to stay in its

tightening. gold could lose the glitter that it gained early on. >> joining us now to talk more about gold and whether it belongs in your portfolio is the ceo of van net global. all good to see you. is it as simple as people are going into gold now because they are afraid of everything else? >> actually, i think what's driving the rally in gold this year is you have to take a step back and look at what's been happening since the global financial crisis. central banks around the world have been cutting interest rates. gold really competes with interest rates because gold doesn't pay any coupon or dividen dividends. when interest rates are negative around the world which they started being in europe last year, started in japan a couple of weeks ago. >> what is the best way to add it to your portfolio and how much of a quote, unquote typical

portfolio, what kind of exposure should they have? >> generally, we don't advise a very large investment in gold. something like 5% or so. it's meant to be a hedge to an overall portfolio over the long term. you have the risks to the financial sector now and the risk of can the fed get the economy going. does it have to go back to a qe4 kind of situation. we think this is really great time to be buying the gold and for those nervous about the recent run up, again, just take a look back at the last five years. you've seen what's happened year to date is a slight heartbeat. >> that's right. one can guy a gold fund, which invest in gold miner. you can buy the miners directly. which do you suggest? >> because i'm leaning a little

more bullish, i favor the shares. the gold shares were down almost 90% from their peaks in 2011. they've gone through a lot of pain, a lot of restructuring and what you're the energy companies being forced to do today, gold companies have been doing for the last two years. they're ahead of curve. >> you've given us two names. the symbol is aem and rand gold resources. the symbol is gold. >> those are the top holdings. why we like those companies is we like a little growth to go with our gold portfolios. rand gold has more african properties. what we like about gold companies in general is true for these companies which is their

costs are decreasing. partially because the currencies, the canadian dollar and emerging market decreasing. that's expanding. the profitability of the shares at this time in the cycle. >> thank you very much. >> happy to be here. despite the destress some maintain the federal reserve could raise interest rates. a number of things all have to fall into line for that to happen. >> to many the market deep down declines make it profit. some economists continue to insist after friday's job report that almost certainly this year. >> the dynamics we're seeing, in

the u.s. bottom after core level. the market is well behind the curve on where the feds will end up. >> among them a february payroll report on march 4th shows a low unemployment rate with strong wage gains like last month. inflation needs to be unchanged or rising. by the time the fed meets markets need to stabilize. >> i think it's a little too soon to say they are out of play. obviously, the odds of a move in march are a lot lower today than they were in december when the fed lifted off. i think they are still waiting to see if the dust clears with financial conditions and if financial conditions were to normalize between now and the march meeting and the focus

could return to the economic fundamentals, i think there's a decent chance they could still go. >> on wednesday, we'll get the first clue of what janet yellen thinks of the mess that's now the stock market this year. she hasn't spoken since december 16th when the dow was near 17,800. she's more likely to strike a more balanced tone explaining that hikes are still on the table but unlikely if the economy, as opposed to the market weakens further. still ahead, the long journey home. why the slowing chinese economy is making this lunar new year's journey painful for some. china saw its foreign

reserve levels fall to the lowest since may of 2012. that lowered the country's reserve to a little lower than $3 trillion. >> today marks the first of the china lunar new year. millions of workers travel home to be with their family. things are a bit different. eunice reports tonight from beijing. >> reporter: china is a society on the move. at no time is that more true than during lunar new year. every year hundreds of millions of chinese hop on trains, planes and buses to return home for the holiday. the largest migration of people on the planet. already in the year of monkey, millions of migrant workers have gone home because of the slowing economy. migrants say they can no longer

afford to live in a big city like beijing. both lost their jobs working at a restaurant when it ran into financial problems last september. they're waiting to receive their unpaid salary of about $1,000 each before heading back home. we have no money to buy tickets to buy gifts for our family or children. normally we spend $650 every lunar new year. i am not coming back. they're far from alone. many migrants are considering finding a new life in the country side fearing jobs won't be available to them if they return to the big city. for years migrant workers have been in backbone of china's economic growth working if factories and constructing buildings. in 2015, the migrant population fell by 5.7 million. its first drop in about three decades. with the economy growing at its weakest rate in a quarter of a century, many workers are questioning their future whether

they are in traditionally powerful industries like manufacturing or new industries that depend on chinese consumers. it's not easy to get a job in restaurant industry, she says. when i first game to beijing ten years ago i was excited with new hope. i thought i could do well in a big city. now i'm so sad and disappointed. disappointed that her chinese dream could disappear in the unpredictable year of the monkey. india is growing faster than china. the economy expanded by 7.3% in the last three months of 2015 making india the fastest growing major economy thanks to a strong manufacturing sector. china's economy grew at 6.8% during the same period. hasbro reported better tha

expected earnings and raised its dividends. they attributed sales to star w wars and jurassic world. shares of apollo education soared after they agreed to be taken private by a group of investors. apollo education is the parent of the university of phoenix. shrinking enrollment and revenue in recent years. shares of the company up 24% to 8.62. cognizant technology solutions saw its shares fall. the i.t. services provider said clients world wide were cutting back on routine tech services spending. shares fell more than 7.5% to 54.05. chipotle closed 2,000 of its stores for four hours today to schedule a meeting on the topic

of food safety. they planned to set aside up to $10 million to help local growers meet the new food safety st standards. they announced the e. coli out break was down. the company blamed charges from two of its holdings. shares of lowe's were up to 36.33. online review website yelp posted better than expected fourth quarter earnings. they announced the cfo would be stepping down. it was slated to report after due do a g bell vendor error. the stock fell more than 11% to 16.06. a suburban investment fund manager caught running a $17 million ponzi scheme is headed

to prison. his deception lasted more than nine years. andrea day has this story of crime and punishment. >> reporter: when it comes to telling lie, prosecutors say this next guy mastered the art of deception. we caught up with him on his way in to meet the judge. take a look. >> you told so many lies for so long, do you have anything honest to say to your investors now. >> i have nothing to say to you or anybody. >> reporter: meet james piester. apparently still fabricated stories when we found him heading into court to be sentenced for securities fraud. when you swindle $17 million, how do you sleep at night? >> i didn't swindle anything. >> he told us he didn't do. >> he's deluding himself. i don't think there's much genuine about him at all other than his greed. >> reporter: greed that had him living large. in this fancy long island

estate. he spent almost two decade fixing cars and managing a repair shop. according to curry, he decided to switch gears from cars forming a hedge fund luring in people he knew to invest. >> telling them that he had years and years in investment experience. none of that was true. he told at least some of them he used to be an fbi agent. that was a lie. he told other investors he worked on the floor of the chicago commodities exchange. that was also a lie. >> reporter: the reality, investigators say armed with his experience under the hood, he rented off space in this building forming north american globex. promising to invest in max of securities. he demanded 250 grand to buy in netting more than $17 million from some 74 investors. >> he's lost a ton of money. he didn't know what he was doing. >> reporter: he says the rest of the cash went to fund the lifestyle and pay off early

investors and to keep it under wraps, prosecutors say he sent out phony account statements. >> he lied to everything about the performance of the funds. he lied about how much money was in funds. >> reporter: he even brought investors over to see his house to make him think he was a huge success. >> should they have trusted him with their cash? >> absolutely not. >> reporter: almost a decade after he left the body shop, the economy collapsed. >> the game ran out. they filed reports and complaints with the fbi and is s sec. >> you must have something to tell them. >> they have heard from me. >> what do you want to say to them? >> i have no comment. >> he lie fd from the beginningo the end. in total he's paid back only

about $220,000. >> i didn't steal anything. >> he said these words, i didn't steal anything. >> well, that's just not true based on the record. it's not true based on his guilty plea and not true beige basted on what he told the judge. >> reporter: he walked into prison to begin serving his six year sentence behind bars. coming up, the controversy being caused by a classic ferrari and currency swings. here's a look at what to watch tomorrow. two dow components out with earnings. first primary of the 2016

presidential election. takes place in new hampshire. the white house releases its fiscal budget for 2017. that's what to watch tomorrow. classic cars command staggering price tags and one 1957 ferrari is no different. was it the most expensive car sold at auction or not? robert frank explains why that question is hard one to answer. >> reporter: a bright red vintage ferrari took to the stage and sold for over $35 million making it one of the most expensive cars ever auctioned. >> it's been driven by the best pilots. >> reporter: it also stirred up a little controversy. the 1957 ferrari 335s is considered one of the masterpieces of the motor world with a timeless design and racing career. many of the richest collectors came to bid pushing the total

past 32 million euros or 35 million u.s. in euro term this was the most expensive car ever auctioned. it marked a new world record. in dollar terms it falls short of the 1962 ferrari gto that sold in 2013 for 38 million. they are divided on which car should hold the poll position. the sale comes as a welcome release to the car market which has been slowing in recent months on worries about financial marks and slowing global growth. they declined to identify the buyer but sources tell me the winning bidder was bryan ross. a developer and ferrari collector in chicago. much more is known about the seller. the car was owned by pierre. the wealthy heir to a french fur

making dynasty. thai said the cars were worth 70 million euros but worth over 200 million. family is battling each other and the french government over the collection which could result in even more ferrariis coming to the auction block. fans tuned in near record numbers. nearly 112 million people watched the denver broncos beat the panthers. that made it the third most watched event in u.s. history. some advertisers scored big as well. >> reporter: hyundai first date ad was the top rated ad. it surveyed 19,000 viewers from across the country. it was followed by the weiner stampede and the doritos ult

ultrasound ad. these ads were the biggest winners of the year dominated by predictable mix. >> i don't think there was a winner there year. it was pretty safe. it was pretty vanilla. i would say that if there was a winner it would probably be one of the jeep ads. they reach for that sentimental touchdown. i think they scored with it. >> reporter: he's talking about this series take on the powerful history of jeep. the losers. >> how did he get in here? >> reporter: the pharmaceutical advertisers. a constipation drug commercial that scored at the bottom of the ad meter. perhaps the biggest was anheuser-busch. it got unpaid promotion from payton manner gieytomanning. they were worth $3.2 million. for nightly business report, julia borstin.

before we go a look at the sell off. the dow jones was off 177 points after falling 400 points mid day. the nasdaq fell 79 and the s&p 500 dropped 26. that does it for us on "nightly business report." i'm sue herera. >> i'm tyler mathisen. thanks for watching. have a great evening. we'll see you tomo.

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